A hearing is scheduled for today on MSG's request for
an injunction to block the Yankees' reported deal with IMG's
TWI to create the N.Y. Sports Network, according to Ronald
Blum of the AP. As part of the deal creating the new RSN,
the Yankees would receive $838M for their TV rights in the
next ten years. The annual fee would start at $65M next
year and escalate 7% yearly to $119.5M in 2010. MSG has
sued to block the deal, claiming it violates a provision in
its current agreement that allows the network to match any
offer. An affidavit signed by former MSG President Bob
Gutkowski shows that he has sided with the team in the
dispute. Gutkowksi, who negotiated the MSG/Yankees deal in
'88, said, "At no time did I believe (nor do I now believe)
that the Yankees Partnership was somehow forbidden from
forming a new network in which the Yankees Partnership would
hold the sole, or any equity stake, and on which the
Yankees' games would be televised." MSG responded by
calling Gutkowski a "disgruntled former employee," who has
"solicited business from and provided consulting services to
the Yankees Partnership." MSG dismissed Gutkowski in '94.
MSG said it also objects to a provision making it pay for
Nets TV rights and to a clause that would force Cablevision
to give the Yankees a minimum 25% of Cablevision's net
income from all its U.S. sports networks. YankeeNets Chair
Harvey Schiller: "From a commercial standpoint, the
exclusivity agreed to by TWI may be difficult -- though not
impossible -- for an existing network with other sports team
alliances to match" (AP/ESPN.com, 7/29).
