MSG Networks’ arbitration offer to Optimum for short carriage extension refuted as ‘PR stunt’

The carriage dispute between MSG Networks and Altice-owned Optimum has been messy. The broadcast home of the New York Knicks, New York Rangers, New York Islanders, and New Jersey Devils is now proposing a short-term truce, but there’s a string attached.

MSG Networks went dark for Optimum subscribers at the beginning of January, presumably due to a dispute over the network’s tiering in Optimum’s cable packages and what price the TV provider will pay MSG per subscriber. Last week, MSG accused Altice of walking away from the negotiating table. Altice countered by saying MSG Networks rejected several proposals and continues to make demands they don’t agree with.

Tuesday, MSG Networks was back with a new strategy. Via a press release, they announced an offer of truce that would return their content to Optimum subscribers so long as they agreed to third-party arbitration.

“Our goal is to make sure our Knicks, Rangers, Devils, and Islanders fans who are Optimum subscribers don’t have to miss another game,” read the statement. “To that end, we are willing to agree to a short extension tied to resolving our dispute through binding arbitration by a neutral, third party. This will enable Optimum subscribers to watch their favorite sports programming while we resolve our outstanding issues.”

MSG Networks reportedly receives one-third of its revenue from Optimum, which would mean they have a very strong interest in making a deal sooner rather than later.

Optimum, meanwhile, doesn’t seem to see this latest move by MSG Networks as a good-faith tactic.

“We are ready to put the games on tonight for customers who want it – all MSG needs to do is give us the green light, but they won’t because they want to continue to charge those who do not watch it,” read a statement from Optimum. “Truth is, MSG’s statement is nothing more than a PR stunt – we have hosted their executives in our offices numerous times, and in fact, we were close to a deal on Friday and MSG’s Executive Chairman told us he was walking away from that deal.

 “We believe it is unfair to charge customers for something they do not watch, and are ready to reach a fair deal with MSG Networks that brings their content to fans while ensuring those who don’t watch don’t have to pay for it.”

It doesn’t sound as though MSG Networks’ latest public offer is moving the needle in negotiations, so we’ll continue to keep a close eye on the situation, especially as the NBA and NHL seasons press on.