Pitchers and catchers must be due in spring training soon because the dispute between the YES Network and Cablevision Systems Corporation is heating up again.
With legislation that would force Cablevision to add YES to its expanded basic package progressing through the New Jersey legislature, Cablevision officials struck back yesterday. The company accused YES and its parent company, YankeeNets, of charging outrageous fees for the network, even though Cablevision's own sports networks, MSG and Fox Sports New York, will collect similar fees during the next decade, according to YES chief executive Leo Hindery Jr.
"It's hypocrisy, pure and simple," Hindery said.
Cablevision officials criticized recent claims by Hindery that Cablevision Chairman Charles Dolan had left the bargaining table last month when a deal to end the 16-month dispute was within reach.
Every other cable provider in the region and DirecTV have accepted the YES Network's monthly fee of $2 per subscriber, although that fee increases roughly 5 percent annually. Cable companies generally pass those fees to their subscribers with rate increases.
According to officials involved with the negotiations, Hindery offered to drop its monthly fee to 55 cents for the first nine months of this year. In October, the fee would rise to $1.25. By April of next year, the fee would reach $2.29 and top out at $4.55 on the 10th and final year of the agreement.
"We think it is important to understand that in their most recent offer, the Yankees are demanding $1 billion from Cablevision customers over the next 10 years," said Charlie Schueler, chief spokesman for the Long Island-based conglomerate. "This is a staggering and blatant money grab by the YES Network and its investors."
In response, Hindery said Cablevision will collect nearly $2 billion in fees for its two sports networks during the same period of time.
"Cablevision continues to try to deflect attention away from its own usurious and anti-competitive business practices," Hindery said.
Cablevision spokesman Jim Maiella said Hindery had grossly exagerrated the MSG and FSNY fees.
New Jersey's General Assembly may vote to pass legislation that would prohibit Cablevision from keeping YES off its system as soon as next week. The state Senate is expected to take up the matter next month.
Also, Attorney General Peter Harvey is continuing to investigate allegations of anti-trust violations by Cablevision in its dealings with YES.
"I think they're starting to get scared," Hindery said. "This stuff has their attention."
