Business

Court denies Tennis Channel’s bid to join Comcast basic tier

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Tennis, anyone?

A federal appeals court yesterday ruled Comcast does not have to carry the Tennis Channel on basic cable — a move that could slash the channel’s distribution by 17 million households and its value by tens of millions of dollars.

The unanimous decision by the US Court of Appeals in Washington, DC, reversed a 2012 decision by the Federal Communication Commission that Comcast discriminated against the 10-year old channel by placing it on a sport tier, which typically costs $7 to $10 a month.

Comcast’s basic package reaches 20 million households, its sport tier just 3 million.

“We are pleased the Court of Appeals correctly rejected the claim that we discriminated against Tennis Channel,” Comcast, which is headed by Chairman and CEO Brian Roberts, said in a statement.

The Tennis Channel plans to appeal, claiming it ought to be treated like Comcast’s own sports networks, such as the Golf Channel, which is carried on its basic tier.

A carriage agreement on basic could have won affiliate fees of 15 cents per subscriber per month, according to SNL Kagan.

It would also have been able to sell more advertising.

Kagan calculates Tennis Channel’s revenues at around $100 million.

Tennis Channel is accused by Comcast of simply not liking the 15-year contract it signed in 2009.

Pending the appeal, Tennis Channel — which is on the block — is likely to see its value sink.

Tennis Channel’s owners include Apollo Global and Bain Capital.

The two owners have had talks with Al-Jazeera’s global sports, and others, about a sale, sources said.

“Comcast’s clear pattern of discrimination against Tennis Channel in favor of the competing networks that it owns — as detailed at length by the FCC — warrants further review of the panel’s decision, and we intend to seek that review,” the Tennis Channel said in a statement.