YES Network wins support in Assembly
Bill would force Cablevision to carry Yanks and Nets games

BY TOM HESTER
Star-Ledger Staff

The Assembly yesterday passed a bill designed to compel Cablevision -- New Jersey's second-largest cable TV system -- to broadcast Yankees and Nets games carried by the YES Network.

Despite the 47-20 vote, both sides in the 16-month dispute continued to spar in public. The fight between the two companies has prevented 1.3 million Cablevision subscribers, mainly in Essex, Middlesex and Bergen counties, from viewing the teams' telecasts.


Cablevision is the only cable provider in the region that has refused to pay YES its required monthly fee of $2 per subscriber to carry the channel in its expanded basic package. Cablevision would prefer to carry YES as a premium channel so those customers who want it would have to pay. Under the bill, if Cablevision failed to seek a settlement, the cable outlet could be held in violation of New Jersey's anti-trust act.

Assemblyman Paul Sarlo (D-Bergen), a prime sponsor, said the main reason for the bill is to encourage Cablevision and YES to negotiate.

"For the past 16 months, the bickering between Cablevision and the YES Network has kept millions of loyal fans from watching their favorite teams compete," Sarlo said. "It's time the state went to bat for all the fans who just want to watch the ballgame in the comfort of their homes."

Opponents and critics of the bill also fought over its constitutionality. The state's non-partisan Office of Legislative Services noted that despite recent changes to the bill, it would be unconstitutional and that operation of cable TV is a federal matter. Sarlo countered with an opinion by federal anti-trust expert David Boies, who called it "completely consistent with the purposes and prohibitions of the (U.S.) Cable Act and federal antitrust laws ... (and) adds additional state remedies to the tools that can prevent consumer harm."

Cablevision lobbyists yesterday sought changes to the bill that would call for the YES Network to cover the costs of providing Yankees' and Nets' coverage and that the broadcasts be offered only to subscribers who would want it. The Assembly rejected this.

"If I was campaigning to get the Do It Yourself Network on, this would not be an issue today," said Clare M. Farragher (R-Monmouth), who offered the changes. "The Legislature should not be involved in this."

Cablevision lobbyists and officials said they would take their fight to the Senate, where proponents are pushing for a vote this month.

"We do not understand why any Assembly member would waste their time with this transparent attempt by the YES Network to force all Cablevision customers, whether they want to pay for the games or not, to pay hundreds of millions of dollars to the YES Network and its investors," said Charlie Schueler, a Cablevision spokesman. "Cablevision wants to reach an agreement to carry the YES Network and has made numerous valid and viable proposals."

Leo Hindery Jr., YES Network chairman, said after the vote, "We are extremely grateful to the Assembly for passing this legislation on behalf of the cable consumer of New Jersey ... We still believe that meaningful negotiations between Cablevision and YES would be the quickest way to resolution and we believe that this legislation will now enhance that prospect."

Democrats voted 38-0 in favor of the bill. Nineteen Republicans voted no; nine voted yes. Assemblyman Matthew Ahearn of the Green Party voted against the bill.