ESPN Must Pay Dish $4.86M in Damages

by Christopher Freeburn | March 1, 2013 10:39 am

ESPN Must Pay Dish $4.86M in Damages

Directv dish 630 300x168 ESPN Must Pay Dish $4.86M in Damages[1]Dish Network (NASDAQ:DISH[2]) will be getting million of dollars in damages from Disney‘s (NYSE:DIS[3]) ESPN cable network, but not nearly as much as it wanted[4].

On Thursday, a federal jury in New York found that ESPN had broken its 2005 contract with Dish by offering lower carriage rates for some channels to Dish’s competitors and awarded the satellite service provider $4.86 million in damages. However, the jury dismissed most of Dish’s other claims. Dish had demanded total damages of $152 million, Reuters noted.

Dish sued ESPN in 2009, claiming that the sports network had concluded distribution deals with other pay-TV service providers, including Comcast (NASDAQ:CMCSA[5]), without allowing Dish the chance to negotiate similar deals.

In its lawsuit, Dish claimed that the Comcast deal cost if $78.9 million.

The two companies have been in court over previous distribution disputes. In 2008, Dish sued EPSN over a lack of high-definition feeds. A jury found in ESPN’s favor in 2011. Dish is appealing that verdict.

Shares of Dish Network fell fractionally in Friday morning trading, while Disney shares inched higher.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/Directv_dish_630.jpg
  2. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  3. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  4. but not nearly as much as it wanted: http://articles.chicagotribune.com/2013-02-28/business/sns-rt-us-dish-espn-verdictbre91r1ek-20130228_1_charlie-ergen-dish-network-llc-dish-shares
  5. CMCSA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMCSA

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