Believing the Yankees have "done everything possible to
subvert the 'right of last refusal'" in their recently
expired 12-year, $493.5M TV deal, MSG Networks filed court
documents last Thursday describing the one-year, $52M offer
to televise Yankee games by IMG, which MSG matched, as "a
sham, a ruse" and a "scheme," according to Richard Sandomir
of the N.Y. TIMES. MSG is "so suspicious" of the Yankees
that it matched the deal only after a measure was added
stating that NY Supreme Court Justice Barry Cozier will hold
a trial "to determine if the contract will be amended to
give MSG the right to match outside offers for Yankee rights
beyond 2001." MSG's suit charges that the one-year offer
"runs counter to its matching right," as it "insists" the
matching right gives them the right to match terms of "any
third-party offer 'commencing with' the 2001 season," not a
season beginning and ending in 2001 (N.Y. TIMES, 11/21).
SUSPICIOUS OF IMG: MSG also claims the one-year offer
"is a ruse and intended solely to hide the fact that the
Yankees Partnership is still intending to assemble" its own
TV network. Because of "large start-up costs and the
uncertainty of cable and advertising revenues," MSG states
that it "would be absurd for IMG to agree to pay the Yankees
Partnership a $52 million rights fee," unless "future
compensation and rights have secretly been promised to IMG."
MSG claims, "In short, the IMG offer is a sham." Sandomir
writes that IMG has "insisted" that it "has no side deals
with the Yankees" and that the one-year proposal "never
hinged on any future ties" (N.Y. TIMES, 11/21).
