CABLE contract expiring, company offering a % if residents stay 7 years

Started by TerryG1 • 6 replies • 1517 views

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TerryG1 (Florida)
Posts: 11

Posted:

Cable contract expiring and the BOD decided NOT to renew.

Received a response that the HOA will receive a % of the cost of services if we continue for 7 years. We need a minimum of 40% to receive 5-8 %

Residents are to be billed separately, so how does the HOA's BOD sign a 7 year contract and legally ensure the residents keep with the cable company?

Confusing since prior to this our property management company had to pay the cable company invoice.

The HOA reduces its HOA fees, deadbeats would be cut-off, HOA gets some revenue, so what is the catch?

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By TerryG1 on 07/26/2012 11:39 AM
The HOA reduces its HOA fees, deadbeats would be cut-off, HOA gets some revenue, so what is the catch?

You just KNOW there has to be one. Cable company executives are not stupid. If anything, they're shrewd. You will need to read the contract very carefully before you sign it. One thing that comes to my mind is there may be a clause in the contract saying that the HOA will make up the difference if the number of subscribers falls below 40% or the kickback will be discontinued if the number of subscribers falls below 40%.

I served for many years on our county cable advisory commission whose charter was to monitor local cable franchises. There was no end to the little schemes the local cable companies tried to sneak by us.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Personally I don't like exclusive rights contracts for service providers.

However, if the Association is going to enter into such a contract, they need to comparison shop. Solicit bids from other service providers and see what they have to offer. As previously said, they need to read and understand the contract.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 07/26/2012 2:19 PM
Personally I don't like exclusive rights contracts for service providers.

However, if the Association is going to enter into such a contract, they need to comparison shop. Solicit bids from other service providers and see what they have to offer. As previously said, they need to read and understand the contract.

Sound advice. Look for the smoking gun. Follow the money.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

TerryG1 (Florida)
Posts: 11

Posted:

THANK YOU ALL for your input.

Wasn't really in favor of the BIG CARROT of $$ when they took over a FORMER cable company many years back, but our residents wanted and got a good deal for 7 years. BASIC CABLE is FREE with an antenna and people get 60 channels for a ONE time cost. With all the other options, I just didn't feel this was the right thing to do, so all of you helped confirm what I already 'thought' I knew...hey, since when did they do ANYTHING to help a community?

TerryG1 (Florida)
Posts: 11

Posted:

THANKS for taking time to respond.

If it 'smells like a rat, it must be a rat."

It is in the best interest of all residents that we do not entertain this offer and we WON'T!

Take the $ carrot CABLE CO and stick it! lol

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