Overseeing that company doesn't mean the obligation was just their own. The Rockets didn't want to pony up money either because they felt the Network was on the road to bankruptcy without it being reorganized. Like it or not, the road that this went down was part of the legal process. Not sure why you keep putting heavy empthasis on Comcast purchasing the Network. That's a shared responsibility amongst the partners to fund the operation of the Network. 46% of that responsibility lies with the Astros. The statement above says Comcast is still open to an auction or additional carriage deals.
Because running/owning sports networks IS Comcast's business. They've always been the only party that is capable of buying/owning/running the network all at once. Even if the Rockets owned 100% of the network, they'd need Comcast to run it. Comcast couldn't get viable carriage deals... they couldn't pay rights fees... and now they're ready to let their channel sink in to the abyss after holding it up in bankruptcy court limbo for 7 months.
That's the bottom line. There's only one partner to this whole thing (Comcast) who can legitimately fund it. The others just can't and most certainly won't. My best guess is that this thing is headed for the Rockets and Astros taking back their media rights...I just wish that had happened months ago. This whole bankruptcy proceeding just prolonged the inevitable, if that's the case.
Based on this "odd" ruling of the U.S. Bankruptcy Judge, I wouldn't hazzard a guess.... IF it does end up with the Astros and Rockets taking back their media rights, what a tremendous waste of time by Comcast and the Judge.
I totally agree. The filing of it was suspect..the way it was done by the parties it was filed by...the fact that it took the Rockets last minute joinder to make it even technically feasible... it was all a play to delay the Astros from walking for not being paid, imo. Now the Rockets aren't being paid, either. What a joke, if that's the way it ultimately ends up going down.
You didn't respond to the question I asked of you. I asked why you put emphasis on Comcast purchasing the Network not the mechanics of running the business. As partners the Rockets and Astros have a responsibility to fund the network too.
Judge could not foresee Comcast attempting to acquire TW and not wanting to have CSNH a part of those discussions.
That goes back to what I have said all along.... The Astros can't afford to be in the TV business and Crane made a mistake when he purchased the Astros share of the Network for 326M thinking that they could be. Getting in to a business and deciding that you can't or won't be able to live up to your financial responsibilities doesn't mean the partner who can assumes total responsibility. Not sure how Comcast not buying the teams out changes whether this belonged in bankruptcy court or not.
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Judge Isgur says he has “significant concerns” about whether the Crane-McLane-Comcast case belongs in federal court.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446021823818256384">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Isgur isn’t sure if he has “subject matter jurisdiction” to hear the case.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446023556195827712">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" data-partner="tweetdeck"><p>IHe said, however, he will rule against Astros on their argument that the case was improperly moved on procedural grounds to federal court.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446023690644246528">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Just to be clear, we're talking about the civil suit, not the bankruptcy case.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446023783745204224">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" data-partner="tweetdeck"><p>They’re talking indemnity clauses now, so things are getting a little bit outside my depth in terms of legal knowledge.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446025053293928448">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Because the Rockets and Astros would never be in a financial position to make a buyout for a channel that is projected to lose money over the next 10-20 years... nor do I think either party would ever WANT to own a channel outright in this market. Also, once the partners stop getting paid their share, what "responsibility" can you really hold them to when they're not getting what was stated in the initial agreement? If multi-zillion dollar Comcast is unwilling to take the risk... you really expect the sports teams that aren't even getting their rights fees to step up? Also, Comcast set the precedent by infusing the bailout money earlier to keep the channel on the air... when it was clear where this product was heading.
If the channel stops generating revenues to cover the rights fees, its broken. If anybody is not living up to the "financial responsibilities", it started when the rights fees stopped being paid. At that point, cutting the cord would have made a helluva lot more sense than where we are now. And Comcast chose to put it in bankruptcy court to prolong what is likely going to happen anyways... the end result is that they've all wasted 6-7 months of time where the teams could have already been on the air. THAT is the main issue... the more time this drags on, the longer the teams have to wait to get their product seen. At least with a buyout, the current employees are assured of keeping their jobs, the channel stays on the air, and the teams don't have to go into a period of limbo and renegotiate deals as the channel eventually will cease to operate.
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Court hearing is adjourned, btw. Discussion was limited to the civil case; nothing discussed on the bankruptcy case itself.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446037874266218496">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> Wow..MAY 12th <blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Lawyers will brief the court on aspects of civil case during April, and a hearing will be held May 12 on whether to return to state court.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446038684869984256">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
The judge is going to weigh this very carefully. As I have said before, he may not be able to issue a final judgment in the civil suit because of the SCOTUS ruling in Stern v. Marshall.
Any word on when the next bankruptcy hearing will be? Should be interesting to see how the change in Comcast's position affects things there.
<blockquote class="twitter-tweet" lang="en"><p>This just in: Judge Hughes invites Comcast, Astros, Rockets to informal meeting <a href="http://t.co/76DIBgJohs">http://t.co/76DIBgJohs</a></p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446117746804133888">March 19, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> Judge invites Comcast, Astros, Rockets to informal meeting Posted on March 18, 2014 | By David Barron U.S. District Judge Lynn Hughes has invited Astros owner Jim Crane, Rockets owner Leslie Alexander and Comcast executive Robert Pick to a March 28 conference to discuss the Comcast SportsNet Houston bankruptcy case. In a one-page order signed Friday and filed Tuesday, Hughes said the three principals in the troubled regional sports network were invited to “informally discuss a resolution” in his chambers. “Each may bring an aide who is outside counsel or may send a delegate who is not outside counsel in their stead – only if the delegate has meaningful authority,” Hughes added. Hughes is hearing the Astros’ appeal of a Feb. 4 order by U.S. Bankruptcy Judge Marvin Isgur that placed Houston Regional Sports Network, the partnership that owns CSN Houston, under Chapter 11 bankruptcy protection. Pick is senior vice president of corporate development for Comcast and a member of the network’s three-member board with Astros general counsel Giles Kibbe and Rockets CEO Tad Brown. The Astros own 46.5 percent of the partnership, the Rockets own 31 percent and Comcast owns 22.5 percent. The Rockets had no comment, and there was no immediate comment from the Astros or Comcast.
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Lawyers will brief the court on aspects of civil case during April, and a hearing will be held May 12 on whether to return to state court.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/446038684869984256">March 18, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
I don't think there many pro sports teams positioned to be "in the TV business" if being "in the TV business" means operating it and solely financing it. I'm not sure the Astros have avoiding living up to any financial responsibilities. Of course, neither the Rockets nor the Astros have been paid for media rights in quite some time. I'm not suggesting Comcast legally HAS to buy out...it just seems clearer now that's likely the only practical solution. My point in the post you quoted was that if Comcast isn't able to buy out or fund now...and neither Comcast, the Rockets nor the Astros are able to find alternatives (as they've been unable to do so far)...then this whole proceeding simply put off what could have happened a long time back from my perspective as a fan who wants to watch his teams play. That's particularly true if you consider Joe Joe's post yesterday showing that the mere appointment of a trustee would trigger the Astros being able to take back their rights. If that's the case, this was truly a road to nowhere, and I just find that frustrating.
