Commentary

Dish Continues Prelude To ESPN Main Event

Dish Network is continuing with a federal case against ESPN, appealing a February verdict where a jury awarded it nearly $5 million. But the satellite operator was seeking around $150 million.

Still, it seems like the undercard.

Dish has charged ESPN with violating multiple provisions in carriage deals by offering more favorable arrangements to other operators. Under “most favored nation” language, Dish believes it should have been offered similar terms.

But the main event looks to be a fight involving billions of dollars as ESPN and Dish try to hammer out a new carriage deal covering all kinds of networks and platforms in the coming months. Their 2005 agreement ends in September.

The $4.9 million Dish was awarded in February came as the jury found ESPN had an obligation to offer Dish altered terms for ESPN Deportes, while inking deals with other operators. Still, the money was about a quarter of the nearly $19 million Dish wanted for the alleged violations with the Spanish-language network.

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As Dish appeals, another matter in the case also remains unresolved. ESPN law firm Weil, Gotshal & Manges wants to recoup legal fees of nearly $5 million from Dish, according to court papers. Weil says the rates are in the same range as Dish's counsel Simpson, Thacher & Bartlett and some other New York firms.

Court papers filed by Weil, Gotshal shows its attorney Diane Sullivan, who gave the closing argument at trial, charged $855 an hour for the ESPN work. Fellow Weil lawyer David Yohai, who heads a litigation group, charged $697.50 an hour. The case lasted years before the February trial.

At trial, the jury declined to give Dish any compensation for allegations that ESPN should have offered it a chance to move ESPN Classic to a sports tier after Comcast landed those rights in 2006. Dish wanted $79 million for damages suffered as a result.

Dish also sought compensation for other matters, including charges involving Dish’s move of ESPNU to its most highly penetrated tier in 2009. That came in exchange for Classic going to a sports tier. Dish argued it wouldn’t have been in the position to make the “swap” deal had it been given the chance to move Classic there three years before.

The federal case isn't the only one Dish has been pursuing against ESPN and parent Disney. A New York state case took another turn this week as an appeals court turned aside a Dish motion that it is owed $56 million,  regarding carriage of multiple Disney HD feeds. Litigation Daily reported Dish had paid the money to ESPN after a court loss, but wanted to reclaim it.    

Still, claims on both sides could be wiped away by mutual agreement in the pre-September carriage bargaining, where there will be no judge or jury. Does that make for a fair fight?

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