Comcast Sportsnet Houston will become Root Sports Southwest

[Thundershock MN 169]

I haven't had a chance to post this here. But, it looks like the cluster-*bleep* down in Houston might be coming to an end soon.

 

Anyway, if the US Bankruptcy Court approves the reorganization plan filed earlier this month the network currently known as Comcast Sportsnet Houston will likely become Root Sports Houston. Under the investment agreement submitted as part of the reorganization plan Houston Regional Sports Network, LP (d/b/a Comcast Sportsnet Houston) will be reorganized as an LLC with DirecTV through it's DirecTV Sports Networks subsidiary holding 60% of the shares and AT&T holding the remaining 40% of shares. It is possible that Comcast (or some other entity) could submit a superior proposal. However, the Astros and Rockets are barred from soliciting bids and must use all reasonable efforts to close the current reorganization plan. Should the Astros and Rockets through HRSN receive a bona fide, unsolicited written proposal prior to the Effective Date they must notify DirecTV and AT&T of their intention to enter discussions. Should that lead to a superior proposal the Astros and Rockets through HRSN must give DirecTV and AT&T 5 business days to adjust the terms of their investment agreement before agreeing to the any alternative proposal. So, hopefully this will come to a end in short order.

 

Now if we could only see some resolution with the two other cluster-*bleep*s MLB currently has on it's hands, Sportsnet LA and MASN.

[A3N 996]

 

I haven't had a chance to post this here. But, it looks like the cluster-*bleep* down in Houston might be coming to an end soon.

 

Anyway, if the US Bankruptcy Court approves the reorganization plan filed earlier this month the network currently known as Comcast Sportsnet Houston will likely become Root Sports Houston. Under the investment agreement submitted as part of the reorganization plan Houston Regional Sports Network, LP (d/b/a Comcast Sportsnet Houston) will be reorganized as an LLC with DirecTV through it's DirecTV Sports Networks subsidiary holding 60% of the shares and AT&T holding the remaining 40% of shares. It is possible that Comcast (or some other entity) could submit a superior proposal. However, the Astros and Rockets are barred from soliciting bids and must use all reasonable efforts to close the current reorganization plan. Should the Astros and Rockets through HRSN receive a bona fide, unsolicited written proposal prior to the Effective Date they must notify DirecTV and AT&T of their intention to enter discussions. Should that lead to a superior proposal the Astros and Rockets through HRSN must give DirecTV and AT&T 5 business days to adjust the terms of their investment agreement before agreeing to the any alternative proposal. So, hopefully this will come to a end in short order.

 

Now if we could only see some resolution with the two other cluster-*bleep*s MLB currently has on it's hands, Sportsnet LA and MASN.

 

Comcast turned down a chance earlier this year to purchase CSN Houston outright. Unfortunately this venture went downhill as soon as Astros owner Jim Crane took over the team. Reports were that the Astros wanted more money from the cable/sat providers and rejected several offers that were proposed. Not to mention that Crane is suing former Astros owner Drayton Mclane.

I think one of the biggest points of contention now, that could delay any agreements is the $100+ million dollar loan that Comcast floated to start up the RSN. Comcast wants the Rockets/Astros to be on the hook for that loan (if im not mistaken), and both teams are balking.

 

Don't know how much of an interest FOX Sports had in re-acquiring the rights. There were some reports that they were sniffing around but nothing came of it. Given how bitter the relationship became between the Rockets/Astros and Comcast, I just could not have seen Comcast sticking around long term. I could be wrong, but they probably would have been better off acquiring CSN Houston outright, then swapped it to either FOX or DirecTV for one of their RSN's.

 

As for SNLA... The Dodgers deserve what they are getting. This is what happens when a team gets greedy and puts money before the fans/customers. MASN, can't say more than the blame lies with Selig. It's amusing that he is trying to silence the teams for his mistake. Everyone saw this sh*tstorm coming from a mile away, but he had to give into the demands of his buddy Peter Angelos.

[stevieboy247 42]

As far as what's gonna happen with CSN Houston, I think it makes perfect sense for DirecTV and AT&T to purchase the channel because the network, under the ownership of NBCUniversal, the Astros, and the Rockets, failed in every aspect trying to expand carriage on cable and satellite, resulting in Houston sports fans ridiculously getting screwed out of watching their home teams for the past 2 years. What this also means is that DirecTV and U-Verse will finally carry the channel. Dish Network also has a chance to carry the network, but I don't think they'll budge.

 

As far as SportsNet LA goes, even though I've been a Dodgers fan growing up, I think the blame should go to not just the Dodgers, but Time Warner Cable as well. That $8 billion dollar TV deal was a huge mistake.

[Thundershock MN 169]

Comcast turned down a chance earlier this year to purchase CSN Houston outright. Unfortunately this venture went downhill as soon as Astros owner Jim Crane took over the team. Reports were that the Astros wanted more money from the cable/sat providers and rejected several offers that were proposed. Not to mention that Crane is suing former Astros owner Drayton Mclane.

I think one of the biggest points of contention now, that could delay any agreements is the $100+ million dollar loan that Comcast floated to start up the RSN. Comcast wants the Rockets/Astros to be on the hook for that loan (if im not mistaken), and both teams are balking.

 

Don't know how much of an interest FOX Sports had in re-acquiring the rights. There were some reports that they were sniffing around but nothing came of it. Given how bitter the relationship became between the Rockets/Astros and Comcast, I just could not have seen Comcast sticking around long term. I could be wrong, but they probably would have been better off acquiring CSN Houston outright, then swapped it to either FOX or DirecTV for one of their RSN's.

 

As for SNLA... The Dodgers deserve what they are getting. This is what happens when a team gets greedy and puts money before the fans/customers. MASN, can't say more than the blame lies with Selig. It's amusing that he is trying to silence the teams for his mistake. Everyone saw this sh*tstorm coming from a mile away, but he had to give into the demands of his buddy Peter Angelos.

First, I don't believe that post-filing Comcast has really tried to acquire the network. Prior to filing they tried to buy out the Astros stake but, were obviously rebuffed. After that they alluded to the fact that they'd be interested in acquiring the network. But, according to the filings never really sat down with the Astros and Rockets when each party was made lead negotiator to hash out a deal. In fact, if you take the Astros/Rockets disclosure filing at face value it wasn't until Comcast threw in the towel that they were able to get a deal done.

From the disclosure statement: "On March 17, 2014, the Comcast Petitioning Creditors filed with the Bankruptcy Court a statement declaring that Comcast was no longer interested in acquiring the Network or its assets. Comcast Petitioning Creditors explained that 'Comcast initiated this bankruptcy proceeding in the belief that the chapter 11 process would permit the Network to reorganize, thus preserving the Network’s value and the jobs of many employees. Much has happened, however, in the nearly six months since this involuntary case was filed. In view of these developments, Comcast is no longer prepared to purchase the Network. Comcast remains open to considering any proposal by the Debtor for reorganizing the Network successfully in chapter 11, including through an auction or through further efforts to obtain additional carriage.'"

 

WRT the "Comcast loan" as best I can tell It appears it will be repaid in full. If my reading is right and the court approves the plan as proposed it looks like DTV/AT&T will assume (almost) all existing debts as part of the acquisition. The only thing that I saw that would be rejected were the media rights deals. So, the Astros/Rockets would need to work with the litigation trust to recover monies owed under the current deals. The Astros/Rockets will enter into new media rights deals as part of the plan. And, I'm willing to bet that was a mutual decision to reject the current deals.

 

And, from the disclosure statement "The Plan contemplates the creation of a litigation trust to investigate and potentially pursue claims that the Network could prosecute against Comcast Entities and/or certain of their representatives resulting from their statements that they were interested in acquiring the Network’s assets and/or relating to breaches of the Comcast Services Agreement or certain duties. So, the plan could still move forward even with pending litigation between the parties.

 

 

RE: MASN. I only see two "solutions" to that issue. Either, bankruptcy or bringing a larger media company aboard as an investor. But, no matter which road they get drug down Peter Angelos will be kicking and screaming the whole way. And, who can blame him he's got the best media rights deal this side of Ozzie and Daniel Silna.

 

RE: SportsNet LA. First, I have to say I'm still amazed at the number of people, including some within the media, that think TWC owns SNLA. Or, don't understand just how convoluted the deal really is. I agree The Dodgers have ZERO incentive to do anything now...they have their money. Although vastly different deals you'll notice a common thread between the Dodgers and Astros recent deals. Both were looking to use their new media deals to finance (or, pay down) the purchase of their respective club. One struck out and the other hit a walk-off grand slam...I'll let you guess which team is which.

[A3N 996]

 

First, I don't believe that post-filing Comcast has really tried to acquire the network. Prior to filing they tried to buy out the Astros stake but, were obviously rebuffed. After that they alluded to the fact that they'd be interested in acquiring the network. But, according to the filings never really sat down with the Astros and Rockets when each party was made lead negotiator to hash out a deal. In fact, if you take the Astros/Rockets disclosure filing at face value it wasn't until Comcast threw in the towel that they were able to get a deal done.

From the disclosure statement: "On March 17, 2014, the Comcast Petitioning Creditors filed with the Bankruptcy Court a statement declaring that Comcast was no longer interested in acquiring the Network or its assets. Comcast Petitioning Creditors explained that 'Comcast initiated this bankruptcy proceeding in the belief that the chapter 11 process would permit the Network to reorganize, thus preserving the Network’s value and the jobs of many employees. Much has happened, however, in the nearly six months since this involuntary case was filed. In view of these developments, Comcast is no longer prepared to purchase the Network. Comcast remains open to considering any proposal by the Debtor for reorganizing the Network successfully in chapter 11, including through an auction or through further efforts to obtain additional carriage.'"

 

WRT the "Comcast loan" as best I can tell It appears it will be repaid in full. If my reading is right and the court approves the plan as proposed it looks like DTV/AT&T will assume (almost) all existing debts as part of the acquisition. The only thing that I saw that would be rejected were the media rights deals. So, the Astros/Rockets would need to work with the litigation trust to recover monies owed under the current deals. The Astros/Rockets will enter into new media rights deals as part of the plan. And, I'm willing to bet that was a mutual decision to reject the current deals.

 

And, from the disclosure statement "The Plan contemplates the creation of a litigation trust to investigate and potentially pursue claims that the Network could prosecute against Comcast Entities and/or certain of their representatives resulting from their statements that they were interested in acquiring the Network’s assets and/or relating to breaches of the Comcast Services Agreement or certain duties. So, the plan could still move forward even with pending litigation between the parties.

 

 

RE: MASN. I only see two "solutions" to that issue. Either, bankruptcy or bringing a larger media company aboard as an investor. But, no matter which road they get drug down Peter Angelos will be kicking and screaming the whole way. And, who can blame him he's got the best media rights deal this side of Ozzie and Daniel Silna.

 

RE: SportsNet LA. First, I have to say I'm still amazed at the number of people, including some within the media, that think TWC owns SNLA. Or, don't understand just how convoluted the deal really is. I agree The Dodgers have ZERO incentive to do anything now...they have their money. Although vastly different deals you'll notice a common thread between the Dodgers and Astros recent deals. Both were looking to use their new media deals to finance (or, pay down) the purchase of their respective club. One struck out and the other hit a walk-off grand slam...I'll let you guess which team is which.

 

Regarding SNLA, you should see how misinformed the writers/readers of Awful Announcing are regarding the situation. I'm with you, i'm baffled as to why people think TWC owns the network when plenty of media outlets like the LA Times have mentioned consistently in their reporting that the team owns the RSN. Of course the Dodgers don't care too much, like you said, they're getting paid for the rights. In fact, short term this is helping the team via increased ticket sales (and playing good baseball). Despite the problems in Houston, I think that Comcast will be beneficial to SNLA. Comcast has deeper pockets, and might be willing to make deals with other providers (at a loss-no way they recoup the $8 billion) and at the same time satisfy the feds concerns.

 

MASN: It was mentioned last year if i'm not mistaken, that Selig appointed a commission to study the WAS/BAL tv situation. One of the early recommendations was that Angelos sell the rights to FOX Sports or CSN. Angelos said no, and this is where we are at.

[Thundershock MN 169]

Bump to update. The path has been cleared and Root Sports Southwest will make it's debut Monday.

 

And, based on the name choice for the network using "Southwest" vs. "Houston" the new owners might take a slightly more regional approach. I'm also guessing that the Astros will will get their games cleared across their entire 5 state area (including Dallas) on DirecTV as well.

[sanewsguy 509]

 

Bump to update. The path has been cleared and Root Sports Southwest will make it's debut Monday.

 

And, based on the name choice for the network using "Southwest" vs. "Houston" the new owners might take a slightly more regional approach. I'm also guessing that the Astros will will get their games cleared across their entire 5 state area (including Dallas) on DirecTV as well.

 

That article calls it "Root Sports Houston".

[Thundershock MN 169]

That article calls it "Root Sports Houston".

I know. Everyone myself included figured they would carry over "Houston" as the location identifier. However, the network went up in testing on DirecTV earlier this week on Channel 674 under the name "Root Sports Southwest." The main Root Sports website lists "Southwest" in the discription bar already. And, I found what looks to be the internal test pages for "Root Sports Southwest" here. So, that's why I'm rolling with that being the name. I meant to point this out in my last post but, for some reason didn't.

 

Anyway, the naming suggests that they might take a more regional approach even if the network will be "Houston centric." The naming gives them the ability to add other "regional" programming without it being out if place. For example, they could add Southland Conference football or FC Dallas games down the road if they choose without it looking out of place.

 

Also, Comcast is quickly scrubbing references to Comcast Sportsnet Houston today. Their social media pages were just taken down and csnhouston.com now redirects to the main comcastsportsnet.com landing page now sans references to Houston.

[Georgie56 3066]

It's live. Nothing special was shown to welcome viewers, it just went from a CSN station ID to a poker show.

 

Regardless, The Rockets and Astros can worry no more now.