Yankees, MSG Settle Lawsuit

Cable Network will broadcast 85 games for free in '02, then team may starts its own net

The New York Yankees and Madison Square Garden Network have resolved their bitter feud, by reaching an out-of-court agreement, effectively terminating MSG's right of last refusal and thereby granting the club new freedom with its television rights.

MSG had a pending lawsuit against the Yankees in New York State Supreme Court over a contractual stipulation concerning the refusal rights. Cablevision-owned MSG has shelled out close to $ 500 million for the rights to televise Yankee games since 1988. The compromise allows MSG to carry 85 of the club's games in the 2002 season for free, according to a recent report in the New York Times.

Exact terms of the deal may not become finalized for as many as 60 days. President Dave Checketts calls it a very good deal for MSG, citing the 85 free games, as well as other aspects of the arrangement, according to the Times report. The deal gives the Yankees the option to decide between paying $30 million to MSG for the 85 games and possibly starting their own regional network, or, selling the remaining 65 games to MSG in 2002 for $37.5 million. The loss of the Yankees would be a huge blow to MSG. The company has a one- year, $52 million deal for the ballclub's TV rights this season. It has been speculated for months that the Yankees have plans to start their own TV network

Sources:

Yankees Agree on TV Deal, New York Times, April 25, 2001.

MSG Cedes Refusal, Opens Yanks' Options, Newsday, April 25, 2001

Bombers, MSG Reach Out-Of-Court Settlement, New York Daily News, April 25, 2001

David Burkey