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Contracts Keyed to Epstein
ESPN, Inc. v. Office of the Commissioner of Baseball
Facts
ESPN, Inc. (Plaintiff) entered into a contract with the Office of Major League Baseball (Defendant) in 1996, under which Plaintiff would air all regular season major league baseball games on its network in exchange for yearly fees. Under the contract and contingent to Defendant’s approval, Plaintiff had the right to preempt 10 baseball games per season for other events and air the games on ESPN2, its secondary network. However, Defendant was not permitted to unreasonably deny such requests. In 1998, Plaintiff sought approval to preempt three baseball games so that it could air football games. Defendant did not approve, but Plaintiff nevertheless preempted the baseball games. The same thing happened in 1999. Plaintiff sought to preempt three baseball games, Defendant refused, and Plaintiff preempted the games anyway. Defendant then terminated the contract, alleging that Plaintiff had materially breached.
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