<blockquote class="twitter-tweet" lang="en"><p>The Comcast affiliation agreement will be assumed, so the new network, Root Sports Houston or whatever, will be seen on Comcast Houston.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/497354604594884608">August 7, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>As of this filing, unsecured claims against the HRSN partnership totals $106.5 million.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/497355391295320064">August 7, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Disclosure statement opens up possibility that Rockets and Astros will sue Comcast over the failure of CSN Houston.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/497357837916712960">August 7, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>"Plan contemplates the creation of a litigation trust to investigate & potential pursue claims (the teams) could prosecute against Comcast."</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/497358185163145216">August 7, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>The teams apparently also are going to fight Comcast over repayment of the $100m secured loan from Comcast for startup costs.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/497358595861016576">August 7, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
I believe the coverage area was specified to at least be Texas (maybe Dallas Area excluded). If Comcast buys Time Warner, Austin for instance might not be considered a "new area", but Comcast might be considered expanding into an area already covered by the agreement provided Comcast didn't get language preventing subscribers acquired through purchases from being a part of the agreement. Really depends on the language of the agreement.
http://blog.chron.com/ultimateastros/2014/08/06/att-directv-to-take-over-comcast-sportsnet-houston/ AT&T, DirecTV to take over Comcast SportsNet Houston Posted on August 6, 2014 | By David Barron AT&T and DirecTV Sports Networks apparently will become the sole owners of the network now known as Comcast SportsNet Houston under a plan of reorganization filed late Wednesday night with federal bankruptcy court. The plan was filed about 12 hours before a 10 a.m. status conference today before U.S. Bankruptcy Judge Marvin Isgur regarding the 11-month-old Chapter 11 bankruptcy case involving the Astros-Rockets-Comcast partnership. According to an investment agreement involving AT&T, DirecTV Sports Networks, the Astros and Rockets and signed by Astros owner Jim Crane and Rockets CEO Tad Brown, the Houston Regional Sports Network partnership will be reorganized as a limited liability company with 1,000 common shares – 40 percent to AT&T, 60 percent to DirecTV Sports Networks. Those shares will represent “the totally outstanding equity interest of HRSN,” the agreement said. Accordingly, interests of HRSN owned by the teams and Comcast “shall be irrevocably canceled and terminated.” The involvement of DirecTV and AT&T as owners would indicate that DirecTV and AT&T U-verse would sign on to carry the Rockets-Astros network, helping ease the carriage crunch that has limited viewership of CSN Houston to no more than 40 percent of Houston area TV households. Comcast, however, presumably will continue to carry the network as part of its existing carriage agreement, although that element was not made clear in the documents filed Wednesday night. The reorganization plan and investment agreement submitted to the court do not include specific dollar amounts stating the value of the reorganized network. It also states that the reorganized company will enter into new media rights agreements with the Astros and Rockets, but no terms of those agreements are stated. Attorneys with Haynes and Boone, the Houston law firm appointed by the court to represent the bankrupt network partnership, presumably will outline more details today about the network’s future at today’s status conference. However, the presence of DirecTV Sports Networks as a partner in the reorganized company would lead to the conclusion that CSN Houston will become the newest Root Sports network, joining regional sports networks in Denver, Pittsburgh and Seattle owned or operated by DirecTV. While the plan has the backing of the Astros and Rockets, it does not necessarily represent the final word in what will become of CSN Houston. Competing plans, including, presumably, a counter-proposal by Comcast, could be filed within a month’s time, according to attorneys familiar with the case. Other attorneys familiar with the case estimate that winding down the bankruptcy case could take up to 70 days, although the court could reduce that time frame.
LOL. This seems just designed to piss off Comcast. I'll also be curious to see what the new media rights number is. That's been a fascinating topic of discussion here for the last year.
It might be a "are you sure you want this fight, Comcast?" shot across the bow in an attempt to discourage them from delaying this any further or fighting them on it. For a while it seemed like the Rockets were taking a position juxtaposed to the Astros...that's clearly passed us by. It seems that changed after the Rockets had their shot as lead dog at the negotiating role with carriers and saw the landscape.
It's definitely that. Comcast is going to want to fight this idea and the other parties are trying to get them to take their medicine and move on. The Rockets wanted to keep the situation in tact because the original setup was going to get them a lot more money than they would ever earn on normal media rights deals. A deal where they have no ownership in the organization is one where they make less money.
Multiple David Barron tweets in 1 statement. “The Houston Regional Sports Network, along with the Houston Astros and Houston Rockets, filed with the U.S. Bankruptcy Court in Houston a proposal to transfer ownership to a joint venture between DIRECTV and AT&T. Once the proposal is voted on by the creditors and approved by the court, DIRECTV and AT&T look forward to providing this great sports programming to Astros and Rockets fans throughout the region.”
There were 4 Comcast creditors originally. I think those 4 are out numbered by other creditors now. I would expect it to be weighted by amount owed...I would expect that the Astros and Rockets may be owed more than Comcast now.
It's likely a maneuver designed to get Comcast to cave in and approve the deal. More legal fees down the drain if they don't.... The Astros and Rockets are trying to minimize their losses on CSN H since they won't be making the pie in the sky money Crane has been holding out for.
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p><a href="https://twitter.com/getnickwright">@getnickwright</a> Comcast indeed could submit a competing reorganization plan, but it will have to wait until the court allows such plans.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/497359510466752512">August 7, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
They're also not going to be locked into horrible money losing deals for 20+ years. With the rights fees negotiation likely to account for the decreased stake in ownership, both sides are likely to be doing just fine from here on out. If only the Rockets could have been aligned with the Astros prior to the bankruptcy... at least they finally figured out who the real enemy was.
I think that's right. Other creditors have petitioned for and received payments along the way to keep the station up and running.
I think once ATT and Directv merged it made alot of sense for them to buy it because whatever the carrier fees they have to pay they get right back b/c they own 100% of the network so the favorite nation status that comcast has doesn't hurt them. They can pay what ever comcast currently pays.
In February, it was 1,044 creditors. 19 were Comcast. Astros and Rockets were the largest unsecured creditors at $27 million a piece.
No one said they were locked in from here on out to a horrible deal just not locked in to the Pie in the Sky deal...... If they get a little more in media rights than before, great, more power to them. Like the Astros didn't imply the Rockets were part of the plan to dupe them.. Save it Nick.
I said once the ATT and DTV merger came to light that they might have a huge interest since they'd have 80% of the market locked in day 1 and the usual suspects around here tried to shoot that down. If the MFN stays intact, even more reason.
