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CABLE WORLD STAFF
New York Yankees fans should circle July 31 on their calendars. It's an off-day for the defending champs, but proceedings in a Manhattan court could go a long way toward determining where Bronx Bomber backers will be watching their team over the next decade.
That's when the Yankees are slated to meet with Madison Square Garden Network, the baseball club's long-time cable carrier, which has received a preliminary injunction keeping the team from forming a new cable network with Trans World International. The YankeesNets told MSGN, owned by Cablevision, on July 5 of its intent to form New York Sports Network, TWI, produce all Yankees games and, later, Nets and New Jersey Devils contests.
TWI would also sell sponsorships and advertising. In a lawsuit filed in New York State Supreme Court, MSG said the YankeesNets/ TWI venture has been structured "to prevent MSG from availing itself of its right of last refusal - a right MSG bargained for carefully and paid for handsomely."
The Yankees' 12-year deal with MSGN, valued at $486 million including $55.4 million for this season, expires with the close of the 2000 campaign.
However, under terms of the deal with TWI for New York Sports Network, the Yankees would receive $65 million in 2001 annual increases totaling $119.5 million in the final year of the pact.
Among the unanswered questions: If YankeesNets prevail, would MSG be migrated into the Fox Sports New York fold? What kind of distribution deal could the new network expect to ink with Cablevision? Can you say pay service? Also, what kind of advertising revenues would a hybrid basic/ pay sports network be able to generate?
MSGN declined comment, while YankeesNet officials did not return phone calls.
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