I think this is the crux of the issue. At a lower carriage fee, there doesn't appear to be much in profits for CSN-H, so 45% of not-much is not-much. At that point, higher guaranteed money would be better. There are 2.2 million households in the Houston area, and since the Rockets can't be broadcast outside of a 75 mile radius, it will be difficult to get much coverage in places like San Antonio, Austin, etc. Even if you assume 3 million households, you're only starting with 125MM in total revenues at the $3.50 subscriber rate, or $90MM at $2.50. And from there, you have to pay costs to run the station and the media rights fees for the Astros, Rockets, Dynamo, etc. Comparatively, FSSW has much wider reach (including places like Austin and San Antonio), so they can charge less per subscriber and generate the same media fees - so they might be able to offer the Astros more in guaranteed media rights money.
Geoff Baker of the Seattle Times speculated that the revamped Root tv deal would be worth $90 to $100 million a year for the Mariners. Most importantly, any monies generated through their ownership stake in Root would not be subject to MLB revenue sharing.
I just realized that I have not yet said '**** COMCAST' in this thread. I don't give a damn about any of the filler that Comcast packs in around Rockets games. I just want to see Rockets games. BRING ROCKETS BACK TO FSSW. With that being said, my ballstreams account is rad. I am more than happy to steal Rockets games from Comcast. I'd be happier to just watch them on a regular TV channel though.
I don't have a copy of the contract. Obviously, the requirements for termination notice would be in the contract. I don't know whether they are required to provide a cure period or not. If not, it could simply be "we weren't paid, so under our agreement, were out of here in 30 days." That isn't a demand for payment. That is providing the reason for termination. A demand for payment would be saying "we will leave if you don't pay us x dollars." My understanding is that the Astros were gone and that is why the bankruptcy petition was filed. To stop them from leaving. That does not sound like a situation where the Astros provided them with an opportunity to cure. They were simply leaving come hell or high water.
As a Rockets fan, I wish they had left a month ago. Would've given the Rockets time to get a deal in place with someone before the start of the season. If the bankruptcy is thrown out and the Astros "leave", how exactly would that happen? Can they just simply walk away or would they have to sell their equity?
None of us have seen the contract terms, but my best guess would be that would still have their equity stake, but no decision making power. Comcast has been trying to buy the Astros' share, so negotiations there presumably would be the next option if CSN-H were to continue operating. That said, the Rockets have said that if the Astros walk, they walk too. So at that point, CSN-H goes under and everyone loses their equity stake.
Whatever dude..... Breach contract would be in the contract too.... If the Network paid, then the Astros couldn't leave.
I'm guessing that's to be expected? I wonder if the NBA is backing the Rockets position as well? If not already, the Rockets should get it in writing before tomorrow.
Never anticipated the vitriol in this thread. I'm ready for the whole thing to be over. I hope Isgur is quick with a decision that blows CSN the eff up already and gets my teams back on TV.
I'd be curious. The Astros' position matches the interests of MLB - that media rights can't be assigned by a 3rd party. I doubt the NBA would agree with the Rockets' stance that media rights can be assigned. It would take away power from the NBA. The Rockets' stance seems to be entirely based on trying to force the Astros to negotiate because it's really not in the long-term interest to have their media rights sellable by a bankruptcy trustee.
I'd be shocked if the NBA said, "yes, we agree with the Rockets. Third parties can assign away our media product all they want!" the Rockets argument is for this specific issue. it's a pragmatic response. but no pro sports league is seriously going to stand behind the proposition that their media rights can be assigned by bankruptcy trustees or any other third parties.
You don't know that and neither do I. Unless you have seen the contract, you don't know that. The contract very well could have been set up to where once 90 days of non-payment occurred, the right to leave upon notice becomes absolute. If that is how it was written, Comcast could come to the Astros now with all the money in the world and they would still have the right to leave.
I hope so too. Maybe I'm naive, but I think the Rockets could be on TV by December. Somehow, someway, they have to get the Rockets back on the air to everyone
Does anyone know what time the hearing is tomorrow? Hopefully there's some coverage from it as it's going on
I'm guessing David Barron will tweet something out. @dfbarron He's been the only one really covering it.
