Time Warner Rejects NFL's Offer For Binding Arbitration

The NFL’s "offer to submit the [NFL Network carriage] dispute to binding arbitration was rejected by Time Warner" Thursday, according to Mark Maske of the WASHINGTON POST. The NFL’s offer came a day after U.S. Sens. Patrick Leahy (D-VT) and Arlen Specter (R-PA) sent a letter to NFL Commissioner Roger Goodell “threatening to reconsider the sport’s exemption from federal antitrust laws if deals are not struck with the cable companies to make the games carried by the NFL Network available to more viewers.” An NFL official said that the league “did not make a similar offer to Comcast because the league’s deal with Comcast already allows the company to carry the NFL Network on a basic or digital basic package if it chooses” ( WASHINGTON POST, 12/21 ). In the letter to TWC President & CEO Glenn Britt, Goodell wrote the league would allow TWC to provide NFL Network to all of its customers once a written agreement to participate in binding arbitration is signed. Goodell said the offer is open until December 28, the day before the net airs the Patriots-Giants game. In response to Goodell’s letter, Britt wrote, “We continue to believe that the best way to achieve results is to privately seek a resolution and not attempt to negotiate through the press or elected officials. … In the interim, we strongly urge you to consider moving the Patriots-Giants game to a broadcast network to ensure the broadest possible distribution” ( THE DAILY ). JONES : In a Q&A with Erik Spanberg of the CHARLOTTE BUSINESS JOURNAL, Cowboys Owner & NFL Network Committee Chair Jerry Jones said of the carriage dispute, "What we want  is an arbitration-type solution. The cable companies don't want that. We think it shows how and why we're in the position that we have."  But he added, "From the standpoint of the government  overseeing what happens, we're very aligned with the NFL's position that we don't want government involvement. We do want a healthy cable industry" ( CHARLOTTE BUSINESS JOURNAL, 12/21 issue ).  FCC: A group of U.S. House and Senate members has sent a letter to FCC Chair Kevin Martin urging him to consider a resolution mechanism to bring an end to the NFL Network carriage dispute. The letter reads in part, “This proposal … creates a mechanism to address a market failure that has prevented consumers from having access to popular programming including the NFL Network, about which our constituents have expressed much concern” ( THE DAILY ). NEW ENGLAND: In Providence, Shalise Manza Young notes only two ABC affiliates, Boston’s WCVB and Manchester, New Hampshire’s WMUR, will be able to air Patriots-Giants in New England. Worcester is serviced by Charter, which does not offer NFL Network, and Time Warner services Western Massachusetts. Rhode Islands’ Congressional Delegation, Sens. Jack Reed and Sheldon Whitehouse and Reps. Patrick Kennedy and James Langevin, said in a letter to Goodell, “The [Patriots] are assuredly a regional team, with many loyal fans in the state of Rhode Island. … We urge you to make the final game available on over-the-air television across New England.” However, NFL Network Dir of Communications Seth Palansky said, “It’s never been done before in the 20-plus years NFL games have been on cable” ( PROVIDENCE JOURNAL, 12/21 ). WISCONSIN: In Milwaukee, Don Walker notes Wisconsin state Sen. Dave Hansen and Rep. Kitty Rhoades have co-authored a bill that would “allow video programmers doing business in Wisconsin an opportunity to take their dispute with cable carriers to arbitration.”  The bill was discussed at the Wisconsin state capital in Madison Thursday.  Hansen said that the goal is to “encourage all of the parties to negotiate and reach an agreement that would allow consumers to watch” Univ. of Wisconsin games on Big Ten Network and Packers games on NFL Network. Hansen: “The bill is not an attempt to take sides.” The NFL Network is “backing Hansen’s bill,” and BTN reps said that they were “neutral.” Big Ten Commissioner Jim Delany and BTN President Mark Silverman both said that they “wanted to rekindle negotiations with big cable companies” ( MILWAUKEE JOURNAL SENTINEL, 12/21 ). Packers VP/Administration & Corporate Counsel Jason Wied and NFL Network President & CEO Steve Bornstein “spoke in support” of the bill. Bornstein: “We’ve experienced in the past four years basic stonewalling by big cable.”  But Wisconsin Cable Communications Association Exec Dir Tom Moore believes that the state “should not interfere with negotiations in a free market and doing so may be unconstitutional.” He argued that the bill would result in “higher prices for customers and more NFL and Big Ten games moved from free broadcast channels to costly cable” ( AP, 12/20 ).

Bornstein Offers Support Of Bill In
Testimony Before Wisconsin Lawmakers


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