Optimum handed out fats raises to prime 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 dad or mum 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 line with paperwork filed with the Securities and Trade Fee final week.
Matthew, a former Comcast government, 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 authorized by the corporate’s board on Feb. 4, have been enforce 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 desires to renegotiate the so-called carriage price 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 will increase are funded on the expense of Altice’s prospects who proceed to pay for programming they not obtain,” an MSG Networks spokesperson instructed The Submit on Wednesday:
“We stand prepared to barter or undergo binding arbitration to right away restore our video games.”
Earlier this week, New York Gov. Kathy Hochul urged each side to succeed in 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 partaking 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 Common Letitia James, together with officers from New Jersey and Connecticut, has additionally pressured Altice to challenge refunds.
“We now have been ensuring our prospects have options, spending tens of millions of {dollars} to assist sports activities followers and non-sports followers alike, serving to with Gotham and migrating them to cheaper packages,” an Altice USA spokesperson instructed The Submit on Wednesday.
The rep claimed Dolan is responsible for the contract dispute.
“The principle challenge is buyer selection in an setting the place roughly 50% of shoppers haven’t tuned into MSG Networks in any respect within the final 12 months, but MSG requires us, as a situation of carrying the community in any respect, to distribute and embrace the channel in almost each buyer’s package deal, no matter curiosity,” the spokesperson stated.
“Info are details: Billionaire proprietor James Dolan made $47,825,668 in 2024 alone throughout the MSG properties, and $134,709,240 over the past 3 years, all of this as he drives MSG Networks out of business.”
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 choice to drop the channel from its Xfinity lineup in 2021.
The dispute sheds mild on bigger challenges within the cable tv trade, notably 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 dad or mum 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 bunch of lenders led by JPMorgan $829 million.
To stabilize its funds, MSG Networks might search exterior funding, doubtlessly from a serious media firm, The Submit 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.