<blockquote class="twitter-tweet"><p>Comcast attorney says original hope for CSNH profit "simply isn't attainable. ... It will not be as profitable as all parties had hoped."</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394850804554670080">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Certainly true in terms of creating an RSN. But I think they all saw dollar signs and didn't do the due diligence on coming up with the right structure and looking at contingency plans and all that. That's where the greed came in - they just jumped in because they saw a huge pool of money without thinking through the details. Nothing wrong with the core concept though - and it's worked all around the country.
<blockquote class="twitter-tweet"><p>Comcast, though, says it had offer from carrier that could be "domino effect" to lead to more "modest" profit, but Astros balked.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394851930209386496">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet"><p>Comcast, though, says it had offer from carrier that could be "domino effect" to lead to more "modest" profit, but Astros balked.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394851930209386496">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> EDIT: DAMN IT, J.R.!!!!
But the same is true of the Rockets and Comcast. They did no due diligence of what would happen if the Astros - who everyone knows value and need the media rights more than the Rockets - wouldn't agree to lesser deals. As MM said, everyone knew the Astros were for sale, so relying on McLane's word or whatnot, if that's what happened, was not smart business practice either. However you slice it, everyone shares blame in all of this.
I don't think anyone in the Rox/CSN organizations believed the Astros would tank an entire season of television. That's unprecedented in baseball where, as you said, teams need their media dollars more than basketball.
But the media rights dollars were still to be paid regardless of signing the carriage deals. So while the Astros may have not been on TV, they were still going to get paid as though they were (before CSN-H just stopped paying them). But if what you say is true and teams would never be willing to hold out, then no provider has any reason of ever paying top dollar to carry an RSN - they would know the team would cave eventually.
Has there ever been a baseball team that did this? (Sat out a season on tv) It is so severely damaging to a brand. A lot of people I know feel like baseball is dead in this city. They will never love the Astros again.
<blockquote class="twitter-tweet"><p>Comcast attorney says CSN Houston now owes Astros $18 million in unpaid rights fees.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394854498209759232">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet"><p>We just wrapped up opening statements in CSN Houston hearing. Witnesses will start shortly after 11 a.m.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394855298306801664">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
At the end of the day, the Astros won't get what they were seeking in any deal moving forward. Even if they go with DirecTv, and Comcast agrees to contract with them, Comcast will undercut whatever carriage rates anyone had on the table.
I don't know...good question. I know the TrailBlazers have had limited carriage in Portland for a long time now...like nearly 6 years I think.
It's a lot easier for an NBA team to get away with it than an MLB team. But, the Blazers have suffered.
Good question - I have no idea. I think basketball teams have had some conflicts with RSNs, but not sure about baseball. I know Kansas City and Minnesota tried to create RSNs and failed, but I don't know how that played out or if they ever were not on TV. Absilutely true - but they could still get more than they would get with the CSN-H deal if they accepted the lower carriage rates. In fact, if you believe Crane is a greedy b*stard who only cares about money, you have to believe this is true - or Crane would prefer the lower deal as opposed to walking.
