YES Net is part of the stable of RSNs Disney is set to acquire and then divest as part of its Fox dealGETTY IMAGES
The Yankees' talks about buying back the rest of YES Net "amounts to 'a foregone conclusion'" that the club will "exercise their right of first refusal" and purchase the remaining 80% of the RSN it does not currently own, according to a source cited by Richard Morgan of the N.Y. POST. YES Net is part of the stable of RSNs Disney is set to acquire and then divest as part of its $71.3B deal with Fox. The Yankees obtained the right of first refusal in '14 when Fox upped its stake to 80% in a deal that "allowed a buyback should it ever sell." A source said that the terms of that deal "require Disney and the Yankees to agree to a YES buyback price -- or accept one from an impartial third party." YES is considered the "crown jewel" of the 22 RSNs. A source said that some bidders will "lose interest in the 21 RSNs" with YES out of the auction (N.Y. POST, 11/12).
STAYING ON THE SIDELINE: SPORTS BUSINESS JOURNAL's Ourand, Lefton & Lombardo report Fox and NBC "did not submit bids last week" for the 22 RSNs when they were due. Speculation over the past several months was that NBC could "pick off the RSNs in markets where it is the dominant cable operator -- places like Atlanta, Detroit and Miami -- and Fox Sports would look to buy back the RSNs at a discount." But the "lack of bids" to Allen & Co., who is handling the sale along with JPMorgan Chase, "threw cold water on both of those scenarios." Fox still "could put forth a bid as that process develops, but it is far from certain." A deal "could close as early as the first quarter of next year." At deadline last week, it was "difficult to determine exactly who bid for the RSNs," with everyone from Sinclair Broadcast Group to rapper Ice Cube "showing interest." The "biggest question is whether the RSNs would be sold off as one big group or individually" (SPORTS BUSINESS JOURNAL, 11/12 issue).
