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August 4, 2014

Chairman Tom Wheeler


Federal Communications Commission

445 121h Street SW

Washington, DC 20554

Mr. Michael White

CEO, Chairman, and President, DirecTV

2230 E Imperial Hwy

El Segundo, CA 90245

Mr. Robert D. Marcus

CEO and Chairman, Time Warner Cable

60 Columbus Circle

New York, NY 10023

Dear Chairman Wheeler, Mr. White, and Mr. Marcus:

On July 28, I wrote a letter urging binding arbitration of the Dodgers telecasting dispute.

The letter was addressed to Robert Marcus of Time Warner Cable and Michael White of

DirecTV. The letter was also signed by five of my Los Angeles area colleagues, and

copies were sent to the satellite and cable television providers that are following

DirecTV's lead.

On July 29, FCC Chairman Wheeler thanked me for bringing this matter to his attention,

began an investigation, and requested the details of the proposed arbitration process. On

July 31, DirecTV CEO Michael White, speaking in his quarterly earnings conference

call, indicated a desire for additional details of how arbitration would proceed.

Accordingly, I provide below a clarification of my proposal.

This technical clarification letter is not signed by my five colleagues, but I believe that it

is not inconsistent with their views. Binding arbitration would take place as follows:

1. Any satellite, cable or telco provider within the Dodgers home television

territory that agrees to binding arbitration shall immediately launch SportsNet

LA, commonly known as the Dodgers Network. Those satellite, cable, or telco



companies would be able to insert four 30 second commercials each hour (as

the current format provides), and would otherwise be carrying the station's



SportsNet LA would be available to all cable, satellite and telco subscribers

throughout the Dodgers home television territory.


All parties would enter into binding baseball-style arbitration pursuant to the

rules of the American Arbitration Association which, pursuant to its practices,

would appoint three qualified neutral arbitrators.


The Arbitrators would determine the amount to be paid (carriage fee) by the

cable, satellite and tel co companies for the 20 14 season, including games aired

prior to the conclusion of the arbitration process.


The Arbitrators would also determine the price to be paid (carriage fee) by the

cable, satellite and tel co providers for the 20 15 season.


The Arbitrators would take into consideration all relevant data regarding

regional sports networks not only in Los Angeles but across the country. The

parties would cooperate in providing relevant information, and the Arbitrators

would keep proprietary information confidential.


The parties would begin separate negations to determine the terms under which

SportsNet LA would be shown on all area cable and satellite households

throughout the Los Angeles area in 2016 and subsequent years.

I realize this is a private business matter. To the extent that any federal agency has a

jurisdiction, it is the Federal Communications Commission, not an ad hoc group of 6 Los

Angeles area members of Congress. That said, I hope the July 28 letter signed by myself

and my colleagues will prod the top management of the corporations involved, and the

leadership of the Federal Communications Commission, to give this matter the highest

priority. Accordingly I am available to discuss this matter with any of the interested

parties, particularly because Congress is adjourned for the summer.

Brad Sherman

Member of Congress


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