MLB Rejects iN Demand’s Proposed Deal
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Cable television said it offered to match DirecTV’s deal for the “Extra Innings” package of out-of-market games, but Major League Baseball claimed the proposal fell short.
When baseball announced its $700 million, seven-year deal with DirecTV on March 8, it gave the other incumbent carriers until the end of the month to match the deal.
iN Demand, owned by affiliates of the companies that own Time Warner, Comcast and Cox cable systems, said yesterday it was agreeing to the terms and that its partners would carry the Baseball Channel when it launches in 2009 to at least the same number of subscribers who will get the channel on DirecTV.
“As the current home for ‘Extra Innings’ for more than 200,000 cable subscribers, we have extended ourselves to do our best to be able to continue to provide this package to baseball fans and our customers,” iN Demand president Robert Jacobson said. “This offer meets all the conditions set forth by MLB last week.”
Not so fast, said Bob DuPuy, baseball’s chief operating officer.
“The communication sent to our office today by iN Demand is not responsive to that offer,” he said. “In spite of their public comments, the response falls short of nearly all of the material conditions (among them requirements for carriage of the Baseball Channel and their share of the rights fees for Extra Innings) set forth in the Major League Baseball offer made to them on March 9.”
DuPuy said the March 31 deadline to match remains.
“By rejecting this matching offer, MLB has proven it never intended for iN Demand to have a fair and equal opportunity to bid for Extra Innings,” Jacobson said later. “Our offer was fully responsive to MLB’s requirements and public statements.”
Senator Kerry, a Democrat of Massachusetts, is to chair a hearing of the Senate Commerce Committee on the “Extra Innings” package on March 27. Extra Innings” had more than 500,000 television subscribers last year plus about 60% more on MLB.com, the sport’s Web site.
[Kerry said in a statement yesterday: “The baseball season starts in a couple of weeks. MLB must sit down with the carriers and come to an agreement that ensures all fans continue to have access to baseball as we begin the 2007 season.”]
