Qtnngr.ess nf t4.e lanit.eb ~tat.es lllllasfTingtnn. iJQl 2U515 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 PRINTED ON RECYCLED PAPER 801 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 feed. 2. SportsNet LA would be available to all cable, satellite and telco subscribers throughout the Dodgers home television territory. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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