Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Comcast SportsNet, Astros Square Off in Bankruptcy Court
Author: Joel R. Glucksman
Date: November 8, 2013
Key Contacts
Back
On Oct. 28th, a bankruptcy court presided over a cable channel dispute between Comcast SportsNet and local sports teams involving the fate of Comcast SportsNet Houston.
The regional sports network, which broadcasts games from the Houston Astros, Houston Rockets and Houston Dynamos, has failed to generate sufficient revenue and instead, has been dependent upon the financial support of broadcasted teams to stay afloat, according to the Houston Chronicle.
On Sep. 27, the Astros filed a motion to dismiss an involuntary Chapter 11 case filed against Comcast SportsNet and to oppose Comcast’s appeal for an interim trustee to be appointed for the company.
In a submission to U.S. Bankruptcy Judge Marvin Isgur, the Astros alleged that Comcast is using the bankruptcy in an attempt to expand its authority within the market.
“Comcast’s allegations … are a smoke screen, designed to hide what is really going on here,” the Astros said in a statement, according to the news source. “Comcast orchestrated a collusive involuntary bankruptcy filing and is attempting … to facilitate its plan to acquire the network’s assets and the Astros’ media rights without the Astros’ consent.”
Problems between Comcast and its affiliates have been well-documented since CSN Houston’s 2012 launch. Unable to secure carriage deals with cable systems such as DirecTV, Dish Network, AT&T U-verse and Suddenlink, CSN Houston is available in only 40 percent of households out of the possible 2.2 million that represent the Houston metro area, the Houston Chronicle reported.
After Comcast failed to send three monthly rights fee payments, the Astros were allegedly close to withdrawing media rights before the company filed for protection under Chapter 11 bankruptcy law.
“If this bankruptcy case goes forward, the business can survive,” wrote attorneys for Comcast. “If the case is dismissed, it will not.”
Businesses affiliated with Comcast, including National Digital Television Center, CSN California, Comcast Sports Management Services and Houston SportsNet Finance, claim that if the bankruptcy case is dismissed, it could result in the network’s collapse, as well as the loss of millions of dollars in anticipated value, Chron reported.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.