Sports lawyers explain TV carriage fee fights, contracts: ESPN, YES - Business Insider

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Sports lawyers break down the fight over fees for TV channels like ESPN and YES and what would have to happen for their contracts to blow up

to cut sports-related fees from customers' monthly bills until live sports return.

Like TV contracts, most affiliate deals aren't month-to-month. Sports networks commit to providing a certain number of live games or programming hours over a longer period of time, such as 12 months. ESPN isn't sleeping on its obligations either. It's managed to air some live events in the last month, including the NFL Draft. It also released the Michael Jordan documentary, "The Last Dance," andESPN is the fifth most-watched cable network year to date, even though its viewership for the week ended May 3 was roughly half of what it was that time a year ago, Nielsen data showed.

The MLB season, however, has yet to begin, and could become a bigger issue for RSNs if it's canceled or significantly pared down.Just as the cable companies are still on the hook for paying the sports networks, the networks still have to pay the sports leagues, even though they're not playing games. And those leagues use the media revenue to pay their teams, who pay their players and employees, and so on down the line.

The networks may worry about pushing the leagues too hard during a delicate time and damaging their relationships. The biggest impact from the current live sports shutdown could show up in the next round of negotiations

 

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