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
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
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.