Plan to rescue sports network will keep games on Comcast Spoiler CSN Houston deal would grow network with new partnership Spoiler
So am I reading these quotes correct? It sounds like Comcast is not necessarily opposed to the reorganization plan but they want to be paid back on the $100 MM loan and they want to be compensated what they paid for the network? Or is there more to it?
I don't think we know yet how they feel about the reorganization plan. No question they want to be paid back. Perhaps they're fine with the reorg, as long as it means they get some of their cash back. ???
I hope the judge doesn't let Comast bid since they withdrew their previous bid. As far as paying back money. If the teams get paid money owed them by the Network then Comcast should get paid back for the start up loan.
Agreed...I'm fine with that, as long as it doesn't throw off the deal! This needs to be done yesterday!! And I'm with you on the Comcast bid part...I wonder how much Comcast really WANTS to bid at this point. How much they want to continue to be a part of this, generally. If they could get their money (or at least some of it) and walk, I would think that would be attractive to them, but that's just me guessing.
The plan must meet the requirements of Section 1129 in order to be confirmed. All impaired creditors must approve of the plan. If Comcast isn't being paid its entire debt, it is impaired and can sink the plan. Among other things, the judge will look at: 1. Maximizing return to creditors, and 2. A reorganization that leads to future profitability. If Comcast offers a bid that provides more money for creditors and has a plan that leads to ongoing profitability, I would think that the judge would have to give it due consideration. This is far from over.
I figured that Concast would have to get a shot at it but bidding now flies against their reason for withdrawing their previous bid.
True...but at this point, Comcast may be pot committed. By the terms of the plan, they may be divested of their ownership in the network and fact potential litigation by the Astros and the Rockets. The potential losses for Comcast may be too steep to refrain from proposing a competing plan that involves Comcast buying the network.
Any chance that they're demanding way more than they think they can get from Comcast to force negotiations to a fair midpoint?
According to the investment agreement attached to the plan, all shares are being purchased for an aggregate $1,000.00. So...no...not an exorbitant price.
But how can Comcast present a plan that is better than the Direct TV/AT&T one at this point? AT&T can state that part of their plan is to carry the channel as part of the Direct TV and AT&T U-verse packages and continue with the Comcast agreement, effectively doubling the coverage (and I would assume nearly doubling the revenue coming in). Comcast can come back with an offer to buy the network, but they can't include as part of their plan any real additional coverage deals, right? So wouldn't that make their plan inherently worse than the other? I'm just hoping this doesn't drag on.
I think they can say that after they've bought out Rockets and Astros they'll have more flexibility to go get deals with providers for carriage...but I also think you're right that they can't say their plan INHERENTLY leads to coverage the way that the AT&T/DirecTV plan would.
Is this getting much attention and should it? I assume "fraud" based on McClane misrepresentating the team/network's value? It feels like, if Crane, three years into this, is thinking he made a giant mistake... I'm just wondering if this is a possible ticket out of owning the team? That he was sold a bill of goods? (Or is this just common practice, CYA lawsuit kind of thing...?)
I wouldn't give it much attention. Crane still wants to own the team. He just likely foolishly promised some level of profitability to his shareholders based on best case scenario for the Network and hopes this suit will recover some money.
Doubling the coverage doesn't mean doubling the revenue. Remember, Comcast has the most favored nation clause in its carriage agreement with CSN. So if DirecTV and ATT only pay $1/household for coverage, then Comcast's carriage rate will drop to $1/household. Conceivably, CSN could be bringing in less money while increasing coverage. I assume that Comcast's MFN clause will be a big point of contention in the restructuring, assuming the restructuring plan goes forward.
