The feud between Comcast and the Chicago Sports Network (CHSN) just got a lot uglier. At a recent Crain’s Chicago Business real estate event, Bulls president Michael Reinsdorf let loose about Comcast’s refusal to put CHSN on its widely available expanded basic tier. That’s where most customers are. And that’s exactly where CHSN wants to be, too.
That dispute—between regional sports networks and pay-TV distributors—is playing out across the country. And fans are caught right in the middle.
What’s really at stake in the CHSN-Comcast dispute?
CHSN is the new home for the Bulls, the White Sox and the Blackhawks. But, Comcast, one of Chicago’s biggest cable providers, hasn’t yet come to an agreement with the network. Instead, it’s pushing CHSN onto a pricier digital tier. That limits its accessibility to subscribers.
Reinsdorf didn’t hold back when talking about the issue. “Bad faith,” he called it. “Discriminatory. It just doesn’t make sense.” (That’s according to the Chicago Sun-Times.)
The heart of the issue is Comcast’s strategy to keep costs down for customers who don’t watch regional sports networks. By moving those channels to a premium tier, Comcast avoids passing on those high carriage fees to its broader customer base. But that approach comes at a steep price for CHSN, the teams it represents—and their fans.
Why Comcast’s Plan Sucks for Fans?
Regional sports networks like CHSN live off of carriage fees from cable providers to fund their operations and pay rights fees to teams. When they get moved to a higher tier, their audience shrinks big time and revenue goes down.
For fans, it’s even more personal. “It’s disappointing you can’t go to bars and restaurants to get games,” Reinsdorf said. “They’re costing people money, they’re costing people enjoyment and to me, that’s not right.”
Many Chicago sports fans are frustrated because they can’t watch their teams. Bars and restaurants which rely on live sports to bring in customers are feeling the pain.
Comcast’s Track Record in Negotiations
Comcast has been hardline for years. They’ve been moving regional sports networks to higher tiers, claiming it’s good for the 80% of customers who don’t watch sports. But teams, networks and fans have been complaining.
There’s one exception: when there’s political pressure. For example, Comcast backed down in their negotiations with the YES Network when they were going to drop Yankees games. Will that happen with CHSN?
Will Comcast Budge This Time?
Comcast still isn’t giving an inch. Unless the company worries about the fallout from politicians or the public, it’s hard to see CHSN getting on the expanded basic tier anytime soon.
That’s where CHSN stakeholders like Jerry Reinsdorf are counting on. “They’re taking away people’s enjoyment,” he says—emphasizing the personal cost of this standoff.
The fact that Comcast shows no signs of relenting for now suggests that CHSN will have to wait a while longer. Unless, of course, the company starts to worry about the consequences of that inaction.
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