<blockquote class="twitter-tweet"><p>Ruth says if CSNH cut deals at same rate with DirecTV, U-verse, TW and Suddenlink, it would have neg cash flow through 2019 of nearly $200m.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394969539772817409">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet"><p>Ruth also said network could save $6 mil to $7 mil a year by cutting news department beginning in 2015.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394969714276839424">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet"><p>Comcast docs show it made a reorganization plan that would remove right of Astros or Rockets to block deals on same terms as DirecTV offer.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394971047289577473">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet"><p>Of course, we don't know what DirecTV offer was because NBC/Comcast has objected to making that number public.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394971226684129280">October 28, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
So if CSN reached same deal with other providers that they wanted to accept from DirecTV, they'd bleed cash through 2019. And that's Comcast rep saying that!!! Kill this thing, judge. There's no reorganization plan worth taking seriously if only deal you've been offered were matched by other providers would still put you in that deep of a hole.
So Comcast's reorganization plan was to force Rockets and Astros into deals with all carriers on same terms of DirecTV offer, knowing full well it would cause the partnership to bleed cash. Great plan, fellas.
I'm not clear on exactly what Comcast gets out of that. Is it just about dominating regional markets and ensuring that other providers can't have their own? I mean I assume they would be losing cash in such a deal too.
The worst part of this whole deal is CSN is doing a great job programming IMO. Houston sports have never been covered this well by anyone. Even if the 2 teams revert back to Fox, tons of good people are going to lose jobs and Houston is going to get lesser coverage. It's not just Rox and Astros fans that will miss out. There won't be Dynamo, UH, Rice, High School coverage like they are providing right now.
that's not how barron's tweet reads, maybe that's what he meant but its not clear. same deal as whom, it looks like it says if all providers sign the same deal as .............?
This is definitely true. CSN has, for the most part, great coverage (despite the cringe-worthy Texans post-game show). I watch it more than ESPN. But holy hell their business plan is whack.
They had a deal on the table with DirecTV, and Ruth is saying if they made the same deal with the other providers, they'd be in trouble.
Is this strategic? is he admitting this as a last attempt to get the judge to approve ch. 11? Makes no sense.
On the surface a very bad deal. They have a 100m loan, missed revenue for the last year and start-up operating costs to pay off so it's likely that they were going to be in the hole the first few years anyway. Not to this extent though. I'd like to see what the revenue projections were once the partnership was formed.
is the $100MM set up as a loan every year? if so there is operating cash flow and then cash flow after financing activities.
<blockquote class="twitter-tweet"><p>CSN Houston ran through $100m loan as of May 29, Ruth says. Capital call of $12 million was made to pay Astros $9.2m monthly rights fee.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/394979698750402560">October 29, 2013</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Yeah, that's insane. Comcast is basically saying CSN-H should be guaranteed to lose money, and that the Astros - the largest owner of the network - should be forced to accept that. The Astros are absolutely right to say "hell no" to that. From their perspective, it would be better to go bankrupt and have zero further losses than lock in $200MM in losses over the next several years to run a flailing network. I'm surprised the Rockets are seemingly cool with that idea.
Just curious. Don't bite my head off. Does the testimony from Comcast rep change your opinion at all regarding this mess. Crane would be beyond irresponsible to accept that deal.
Maybe somebody could shed some light on this for me...how exactly would bankruptcy help? The network would have trouble getting enough money out of carriers to make it profitable
I'd wait to hear both sides of the story. Someone has to explain to me the benefit to the Rockets staying in this deal if it is so awful for them. They would be losing $$ until 2020 too according to these witnesses.
