Not sure if relevant, but... The Good Phight is reporting that the Phillies are on the verge of signing a much more lucrative deal than the one they currently have in place. However, the winning bidder has not yet been revealed. The article points out that Comcast (the Phillies, Flyers and 76ers are all broadcast on CSN Philadelphia) is the dominant cable provider in the Northeast, but Fox Sports is apparently looking to acquire the broadcasting rights to a team in the Northeast. It also mentions that if Comcast is the winner:
Rockets filed: Statement of the Rockets Entities in Support of Entry of an Order for Relief Under Chapter 11. It was filed yesterday. Rockets say that the Chapter 11 will: 1. provide best means of assuring full payment of creditors; 2. realization of the owners' equity investments; 3. protection of the Network's business; and 4. satisfaction of fans' expectations of high quality sports media coverage. They say the alternative is liquidation. "The Rocket Entities have no interest in placing blame on any party as it relates to the current predicament, but the chapter 111 process provides the only suitable remedy for this problem." Tone of the pleading primarily centers around protecting the equity interests. Rockets say broadcast rights ARE assignable by a trustee...because they're governed by copyright law; not trademark law. Rockets agree with Astros that a trustee should not be appointed as it "would not be productive at this time." Go on to say that appointing a trustee is not going to result in productive negotiations between the Astros, Rockets and Comcast, defeating the very purpose of the Chapter 11 process. Rockets cite to a similar case (that was actually cited in Comcast's motion) where a trustee wasn't appointed to deal with gridlock until a year after the case was filed. Rockets suggest that: 1. instead of a trustee, the Court should appoint an officer to run day-to-day operations of CSN-H; 2. Comcast/Astros/Rocketsw engage in negotiations for one week in an attempt to reach consensus going forward; 3. the parties delay the question of whether to appoint an estate fiduciary, including a trustee, until it is absolutely necessary to preserve value of the estate. Rockets explicitly say that if the bankruptcy is dismissed...and the Astros terminate their broadcast agreement....the Rockets would terminate their own broadcast agreement with CSN, "causing the Network to implode." Goes on to say that the bankruptcy's automatic stay is the ONLY THING "presently capable of preserving the Network." Rockets do not address at all the technical deficiencies to the bankruptcy which the Astros have argued exist.
So, in all seriousness, what are the chances of the Rox being on TV for those of us without Comcast? My Uverse contract is up, and although I love them (hate their internet though, way too slow for what I pay) I'm seriously thinking about going back to Comcast. I can't even fathom not watching them for another season.
I don't know for sure. I feel like the stronger argument here is the dismissal argument. But I walk into court with what I think are killer arguments all the time, only to be shocked by a judge who isn't paying attention or reaches a conclusion for another reason. I just don't think Isgur is that kind of judge,though...and I'm sure he's diving in to this. I also just might be wrong...there may be an argument I'm missing regarding the dismissal...though it's funny that the Rockets really don't even address those issues in this statement. There are multiple grounds the Astros argue to get the judge to dismissal...any one of them could get him there. If the dismissal argument wins, both the Astros and Rockets will be looking for a new TV home, and I don't think it will take the Rockets long to find one. Their sole goal will be about getting on the air quickly on some station. My guess is Fox, just because it's up and running and there's history there. If the dismissal argument loses, I could totally see the judge doing the "split the baby" approach the Rockets are asking for....which would lead to more time in negotiation between the Rockets, Astros and Comcast. If that happens, I have no idea how long it could drag out. A while. I really feel that the best possible outcome for the fans who want to see the Rockets sooner rather than later is for the dismissal to win, tearing the scab off. That's not great financially for either of them, because they both have injected funds into this thing and the Rockets are CLEARLY trying to preserve that equity interest. The Astros have that equity interest concern as well...and their willingness to walk MIGHT be an indication that they have some assurance they'll get it somewhere else. DirecTV maybe (ROOT Network)...maybe Fox.
MadMax: Am I reading the Rockets' position correctly that they agree with neither Comcast or the Astros? They want the network to survive, but don't want a trustee appointed. Instead, they want a week of negotiations? That just seems ... odd. Also interesting that they feel the TV rights can be assigned. If that were the case, would the Astros TV rights be able to be auctioned off in the bankruptcy and used to pay off creditors? If so, I can see their plan - that threat would clearly make the Astros negotiate during that 1 week window if the Judge went along with the Rockets view. The worst thing for the Astros would be to completely lose control of their media rights.
That's right. That's how I read it too. They know their equity interest in CSN is dead if the bankruptcy goes away...so they want a bankruptcy. But the Rockets don't want a trustee assigning their broadcast rights either. That's not as big a deal to them as it is to the Astros (given the difference in importance of the cash flow from broadcast agreements in the NBA and MLB)....but they still don't want that as a resolution. And they're saying, "give us a week to see if we can figure something out." Yeah, that part struck me as really odd, too. Not entirely certain what's behind that or why they think a week of negotiations would be fruitful given the history here. And yes...the threat of the trustee assigning those media rights is important to the negotiation...they make that point explicitly. "Don't appoint a trustee..but keeping alive the bankruptcy creates the threat of a trustee...and that pending threat may produce a resolution." I'm paraphrasing there...but that's absolutely something they say explicitly.
Ballstreams FTW. Buy a device like the Roku if you don't have one. You'll have to plug an ethernet cable directly into the device for the best results.
Highly doubt the Philly-based Comcast allows the Philly teams to leave. Also don't know how much a difference what happens in Comcast-dominated Philly would make into what happens in Houston (which still has Comcast as the largest single provider, but its less than 50% of the market).
Yeah, I just could not get the guts to switch to Comcast. I called Uverse and ended up with this- U450 with 4 boxes plus the main DVR, free HD, Palladia and the highest speed internet for $139.00/Month. I also received NBA League Pass for $75.00 instead of the $189 it usually costs. They're not wanting to lose customers, so now I pray something happens so I can watch my team. In no way did I want the hassle of Comcast back in my life.
Are these types of hearings public, meaning will we get to read about all the dirty laundry between all parties, including the Astros allegedly turning down the deal last season that would have saved us all from this?
The hearing is public. But what you're hoping to hear isn't the subject of the hearing. I think if you're hoping to get the Rockets on the air throughout the city sooner rather than later, you better root for the Astros' Motion to Dismiss. I think that's the quickest route. What the Rockets are proposing is a bankruptcy with no trustee and the hope that the parties can find resolution amongst themselves...with no real good alternative if they can't. That's the longest road to resolution...longer than what Comcast is proposing and longer than what the Astros are proposing. Barron's article is framing the narrative that it's Rockets and Comcast v. the Astros. That's just not the case based on this pleading. Each party has a distinct route it's asking for.
Just curious why you think dismissal is likely to happen? It would seem to me (knowing about as much as corporate bankruptcy as I do about open surgery) to hedge on the financials of the network, information that we aren't really privy to. I do agree that I have no idea why the Rockets think one week of negotiation will help them come to terms.
Yes, I am hoping for that. I already have Comcast so that part is not an issue for me. I hope the teams stay with CSN because their product is great. Of course I hope for the full distribution so everyone can watch.
If the other half of the Rockets' request holds - that media rights can be assigned in bankruptcy - a week of negotiations might just work. Basically, the Astros would be forced to negotiate with a gun to their heads: agree to a deal or CSN-H goes bankrupt and a trustee decides the future of your media rights. In that scenario, the Astros basically have to cave.
I don't understand how anyone would think forcing the Astros to stay in the partnership is a long-term solution. it just seems like it will cause permanent ill will and they will never be able to get anything done.
I agree that it's a terrible idea to have one of the owners - the largest one at that - pissed off and an unwilling partner. But the alternative seems to be actual bankruptcy and everyone losing lots of money, so apparently the Rockets think that's even worse. This whole thing is a mess.
Because of the technicalities of bringing an involuntary bankruptcy proceeding. I don't know that it's likely, though....just what I can see from the pleadings so far.
"The whole thing is a mess" is the most accurate description....so little planning for very major contingencies that were certainly foreseeable, even if they were unlikely. The humongous difference in the important of local media dollars to the Astros as compared to the Rockets meant there was absolutely no way they would find common ground if the numbers didn't roll in high from Comcast. And when they didn't...because the bubble popped...there was no plan for that at all. No formula. No exit plan. Nothing. Just the necessity for unanimous consent for the most important component of the entire deal. The fact that the NBA said, "Sure, Rockets...go ahead and sign that deal!" is just more evidence of how much the bubble popped. Smart people (a lot smarter than me) looked this over and said, "sure!! why not??" The guys who were advisors on this deal are the smartest guys in the room nearly everywhere they go. But there's no plan to deal with this scenario...and the media rights of both teams have been subject to one another's sole vote for about a year now..and they now may be subject to wherever a U.S. Trustee assigns them to. What a mess, indeed.
The idea that the bubble popped is just wrong. The bubble didn't pop, Comcast just sold something that was never realistic to the Rockets/Astros. They looked at other providers before signing up with Comcast, but the others didn't promise them the kind of money that Comcast would. I don't want to say "HEY, I TOLD YOU SO!" but I did. Comcast has a really foul history with this stuff. It serves the teams right that they let their greed blind them into doing business with Comcast. It's just too bad we are all suffering as a result. If they had done a network that was funded by DTV, this problem wouldn't be happening.
