Editor's note: This story is revised from the print edition.
One of the many battles that Time Warner Cable and Fox Sports have waged over sports rights could be nearing a resolution.
Fox Sports Net South is negotiating to obtain television rights to the NBA’s Charlotte Bobcats, which now are held by News 14 Carolina, the local Time Warner-owned news channel. The deal would strip News 14 Carolina of all sports content, casting doubt over a federal arbitrator’s recent ruling that could force the Mid-Atlantic Sports Network onto Time Warner’s Carolina systems.
Time Warner, Bobcats and FSN executives were in marathon talks last week as they closed in on a deal, but a few snags still exist. One holdup is that Time Warner wants to make sure FSN South does not raise its license fee once it secures the Bobcats rights, industry sources said.
“We’re conducting very productive discussions regarding the rights to certain Bobcats games,” said a Time Warner spokesperson. “While we’re all hopeful that we will finalize an agreement soon, at this time we do not have a formal agreement. Once we reach an agreement, fans will still be able to watch the games on FSN South, while our customers will be able to enjoy rate stability.”
The cost of sports rights typically is at the crux of Time Warner’s battles with sports programmers, like Fox Sports. Over the last six months, for example, Time Warner has balked at carrying the Big Ten Network because, in part, of the high cost associated with that network.
Specific FSN South license fees were not disclosed. But a significant hurdle remains as the team works to secure a naming-rights deal for Charlotte Bobcats Arena. The team has been negotiating to sell the naming rights to Time Warner Cable. Past talks have centered on how the Bobcats would compensate the cable company to secure carriage on a more widely distributed channel as part of a long-term naming-rights agreement.
A new broadcast deal would seemingly benefit everyone involved. FSN would increase its NBA lineup to 18 teams; News 14 Carolina would shed sports programming that didn’t fit its program schedule; and the Bobcats would be free from what NBA insiders call one of the worst local TV deals in the league.
A likely scenario could see FSN South broadcast games as early as this season. Eventually, the RSN would be able to roll out an undetermined number of games as part of a multiyear deal. Financial terms were not available.
Gerald Wallace and the Bobcats
play 50 games on TWC’s News
14 Carolina.
The move would be important for News 14 Carolina, which was at the center of an arbitrator’s ruling last month. A federal arbitrator ruled that because News 14 carried Bobcats games it is a regional sports network, which was one of the reasons the arbitrator cited in ruling that Time Warner should carry MASN on an expanded basic programming tier in North Carolina.
The arbitrator, Jerome Sussman, wrote that News 14 Carolina “easily fits within the definition of (a regional sports network) since it provides live broadcast of 50 games of the Charlotte Bobcats” and gave Time Warner motive to discriminate against MASN. Time Warner says 98 percent of the channel’s program schedule is devoted to news and weather, not sports. The operator has said that it will appeal the arbitrator’s decision to the Federal Communications Commission.
When asked last week whether his view would change if News 14 Carolina gave up its sports content, Sussman said, “If a regional sports network doesn’t have any sports, it’s hard to make the case that it’s a regional sports network.”
Time Warner executives say that the potential deal illustrates that they have no interest in operating a regional sports network in the Charlotte market.
“This deal, which has long been in the works, shows even more that our carriage decisions regarding MASN have nothing to do with News 14, but was solely the exercise of our editorial and business judgments about providing the best programming at the best prices to our customers,” said a Time Warnerspokesperson.
MASN, however, doesn’t believe any actions by Time Warner willbe sufficient enough to overturn the arbitrator’s initial ruling.
“It doesn’t change this historic discrimination, nor does itchange the FCC’s need to enforce the Cable Act to protect independent networks and consumers,” said a MASN spokesperson.
FSN South is pushing for the Bobcats as it works to add more local sports content. Last week, FSN South secured the rights to the NHL’s Carolina Hurricanes through 2012-13, and the network also has deals with theAtlanta Hawks and Memphis Grizzlies.
Bobcats President FredWhitfield would not confirm that a deal with Fox is in the works.
“I am not in the position to address anything outside of what we are doing with Time Warner Cable,” he said. “We have been in numerous conversations with Time Warner about how to enhance our partnership and theyhave been a great partner.”
Similarly, FSN officials declined to comment because theBobcats are under contract with Time Warner.
A move to FSN South would also help raise the Bobcats’ profile in their local market given their nearly invisible television presence under the deal with News 14 Carolina, which runs through 2015. The cable news channel telecasts about 50 games a season, with another 15 made available to a local over-the-air broadcaster, WJZY. News 14 Carolina obtained the rights after the Bobcats shut down their failed C-SET network after just nine months in 2005. With little leverage, the team was forced to convert the C-SET deal into atraditional rights-fee agreement with Time Warner.
