Optimum handed out fats raises to high executives throughout its bitter contract battle with James Dolan’s MSG Networks — whereas refusing to supply refunds regardless of Knicks and Rangers video games being blacked out because the begin of the 12 months.
Dennis Matthew, the CEO of Optimum’s father or mother firm Altice USA, bought a bump to $1.55 million a 12 months from $1 million, whereas Chief Monetary Officer Marc Sirota’s base wage jumped to $650,000 from $500,000, in accordance with paperwork filed with the Securities and Change Fee final week.
Matthew, a former Comcast govt, was additionally given a goal annual money incentive award of $3 million and an annual long-term incentive goal of $10 million, the SEC filings present.
Sirota is in line to obtain bonuses totaling round $4.5 million.
The wage packages, which have been accredited by the corporate’s board on Feb. 4, have been put in force retroactively on Jan. 1 — the identical day that an estimated 1 million Optimum households within the Tri-State space misplaced protection of the Knicks and Rangers, together with the Islanders, Buffalo Sabres and New Jersey Devils.
Optimum was paying James Dolan-controlled MSGN greater than $10 per subscriber to hold the channel earlier than the contract expired in December. The corporate needs to renegotiate the so-called carriage charge however the two sides have remained at an deadlock.
MSG Networks has accused Optimum of pocketing $10 million for every month the negotiations drag on.
“These pay increases are funded at the expense of Altice’s customers who continue to pay for programming they no longer receive,” an MSG Networks spokesperson instructed The Put up on Wednesday:
“We stand ready to negotiate or submit to binding arbitration to immediately restore our games.”
Earlier this week, New York Gov. Kathy Hochul urged each side to achieve settlement, saying that she instructed the Division of Public Service (DPS) to intervene.
The company gave Altice 5 days to offer a plan to refund subscribers who paid their charges with the understanding that MSG Networks would stay on the system.
In response, Altice USA defended its place, stating that it has been actively participating with prospects to offer customized assist, together with defraying the price of buying entry to the Gotham sports activities app, which prices $29.99 a month.
New York Legal professional Normal Letitia James, together with officers from New Jersey and Connecticut, has additionally pressured Altice to concern refunds.
“We have been making sure our customers have solutions, spending millions of dollars to help sports fans and non-sports fans alike, helping with Gotham and migrating them to less expensive packages,” an Altice USA spokesperson instructed The Put up on Wednesday.
The rep claimed Dolan is in charge for the contract dispute.
“The main issue is customer choice in an environment where approximately 50% of customers have not tuned into MSG Networks at all in the last year, yet MSG requires us, as a condition of carrying the network at all, to distribute and include the channel in nearly every customer’s package, regardless of interest,” the spokesperson mentioned.
“Facts are facts: Billionaire owner James Dolan made $47,825,668 in 2024 alone across the MSG properties, and $134,709,240 over the last 3 years, all of this as he drives MSG Networks into bankruptcy.”
Altice USA was created in 2016 when the French telecom large Altice NV acquired Cablevision from Dolan, together with Suddenlink Communications and merged them collectively.
The inventory has tanked by greater than 91% since its preliminary public providing in June 2017.
On Wednesday, shares of Altice USA closed down almost 7%, at $2.70.
Altice USA has argued that MSG Networks — like different regional sports activities networks nationwide — doesn’t appeal to the identical audiences because it as soon as did. It cited Comcast’s resolution to drop the channel from its Xfinity lineup in 2021.
The dispute sheds gentle on bigger challenges within the cable tv trade, significantly as extra viewers transfer away from conventional cable subscriptions in favor of streaming providers.
This shift, generally known as “cord-cutting,” has created tensions between content material suppliers and distributors over pricing and accessibility.
Dolan, the manager chairman and CEO of MSGN’s father or mother firm Sphere Leisure and Madison Sq. Backyard Sports activities, faces a monetary headache amid the continuing blackout.
MSG Networks has been on the point of chapter and owes a gaggle of lenders led by JPMorgan $829 million.
To stabilize its funds, MSG Networks might search exterior funding, probably from a serious media firm, The Put up reported earlier this month.
Sphere Leisure knowledgeable the SEC earlier this month that it reached a forbearance settlement with lenders that extends via March 29.
