AT&T And DirecTV Present Plan To Takeover CSN Houston

Last week, we reported on the ongoing bankruptcy saga involving Comcast SportsNet Houston, the joint venture created and owned by Comcast Sports Group, the Houston Astros and the Houston Rockets. More than a year after its launch, CSN Houston hadn’t reached carriage fee deals with any cable or satellite company in the Houston area, other than Comcast. That led to financial distress and to an involuntary bankruptcy petition filed by Comcast last fall.

Last night, AT&T and DirecTV filed a plan with the bankruptcy court to assume control over CSN Houston. As part of the reorganization plan, AT&T and DirecTV will create a new limited liability company with 1,000 shares — 40 percent owned by AT&T and 60 percent owned by DirecTV. The Astros and Rockets back this plan, despite giving up their ownership interests in the regional sports network.

If the bankruptcy court approves this plan, the new RSN (likely to be branded a ROOT Sports Network like other DirecTV owned sports networks) will negotiate new rights fee agreements with the Astros and the Rockets. Under the CSN Houston agreement, the Astros were scheduled to receive $60 million annually.

We hoped you liked reading AT&T And DirecTV Present Plan To Takeover CSN Houston by Wendy Thurm!

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Wendy writes about sports and the business of sports. She's been published most recently by Vice Sports, Deadspin and NewYorker.com. You can find her work at wendythurm.pressfolios.com and follow her on Twitter @hangingsliders.

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Sizzle
Guest
Sizzle

$60 million annually, aka 1.35 times Houston’s 2014 payroll. Christ.

Iron
Guest
Iron

But it should be noted that was $60 Million annually that Houston ownership realized it was not going to see.

But I’m more interested in the situation in LA which seems to be going in the same exact direction only with much larger numbers. Contrast the Astros with the Dodger’s payroll of $235 Million and TV revenues that will come to… I’m fascinated to find out. Everyone keeps saying the Dodgers money is guaranteed, but what does that look like? How is their contract different from the Astros? Why would TWC possibly sign a guaranteed deal for 7+ billion dollars on a shaky joint venture that required the competitors to sign on to unprecedented carriage fees? That strains credulity.

It’s like a train heading toward a cliff, I can’t take my eyes off.

AA
Guest

Because the Dodgers are actually a real commodity. The Astros are a sideshow in Houston.

Iron
Guest
Iron

The Astros balance sheet makes a hell of a lot more sense right now.