Post by dkennedy on Feb 7, 2005 6:36:03 GMT -5
Tagliabue Eyes Network for Games
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By Mike Reynolds 2/6/2005 11:56:00 PM
Talk of a new national sports service resurfaced during NFL Commissioner Paul Tagliabue's state of the league address Friday during a pre Super Bowl press conference in Jacksonville, Fla.
"We're giving very serious consideration to being part of the launch of another major sports network on
cable and satellite television," Tagliabue said. "We're also talking to other television networks and
companies about the packages we have to sell, including the Thursday night/Saturday package we're
creating. And there's strong interest in other companies, some of whom already have contracts with us and
some who don't."
Tagliabue declined to elaborate during his remarks. However, Fox has expressed interest in going this
route, while previous reports indicated that Comcast Corp. might also be interested in pursuing such a
service.
Last year, News Corp. leader Rupert Murdoch at an industry conference said he would love to launch an
ESPN competitor, but couched that desire with the need to acquire more sports programming --
particularly National Football League games -- to make any such launch viable.
During a Feb. 2 conference call discussing News Corp.'s second fiscal quarter earnings, Murdoch said that
wouldn't happen -- without a significant NFL game presence.
“Will we be taking on ESPN? We would not do that without a pretty full NFL franchise,” Murdoch said.
Comcast officials could not be immediately reached for comment.
Some view Tagliabue's new-network comments as a play to get ABC/ESPN to conclude their current rights
fees negotiations. Although he said The Walt Disney Co. properties "have tremendous interest in staying
with the NFL, both on cable television and broadcast television. We have an interest in them staying with
us. We have a disagreement about what the rights fees should be."
The parties have met on a number of occasions -- most recently last Wednesday in New York -- to discuss the rights extensions.
Following major price hikes for renewals of DirecTV Inc.'s Sunday Ticket out of market
package, as well as Fox's NFC and CBS's AFC offerings last fall, the NFL, according to published reports,
is asking for some $900 million and well over $600 million annually for its current Sunday (ESPN) and
Monday (ABC) night packages.
While ESPN's dual revenue stream of advertising and cable subscriber fees putatively enables it to turn a profit on the deal, ABC is said to be losing $150 million to $200 million annually on its present $550 million allocation. Speculation persists that the Disney networks might switch nights.
An ESPN spokesman issued the following statement: "We will continue to have conversations with the
league about renewing the ABC and ESPN rights."
Failing contract consummation, Fox or NBC might be willing to step in. Disney's exclusive negotiating
window with the league, though, doesn't end until October, something that News chief operating officer
said renders such speculation moot -- at this juncture.
“We don’t even have the right to bid against them until they end the formal negotiating period. So, there’s
really nothing to say about a sports channel," he said on the aforementioned earnings call.
In November, DirecTV signed a five-year, $3.5 billion (a 75% jump) Sunday Ticket renewal covering the
2006-2010 seasons, which again shuts cable out from offering that attractive package. To secure the NFC
package, Fox paid 30% more annually over current rates to $712.5 million for each of six years through the
2011 seasons. CBS increased its outlay 25% to $622.5 million annually over the same span.
The league's contract with the broadcast carriers, like its pacts with ESPN and ABC, were set to expire after
the 2005-06 season.
As for the new late-season primetime package of Thursday/Saturday games the league is proposing,
NBC/USA Network, Fox, TNT and the NFL Network are all said to have interest.
--------------------------------------------------------------------------------
By Mike Reynolds 2/6/2005 11:56:00 PM
Talk of a new national sports service resurfaced during NFL Commissioner Paul Tagliabue's state of the league address Friday during a pre Super Bowl press conference in Jacksonville, Fla.
"We're giving very serious consideration to being part of the launch of another major sports network on
cable and satellite television," Tagliabue said. "We're also talking to other television networks and
companies about the packages we have to sell, including the Thursday night/Saturday package we're
creating. And there's strong interest in other companies, some of whom already have contracts with us and
some who don't."
Tagliabue declined to elaborate during his remarks. However, Fox has expressed interest in going this
route, while previous reports indicated that Comcast Corp. might also be interested in pursuing such a
service.
Last year, News Corp. leader Rupert Murdoch at an industry conference said he would love to launch an
ESPN competitor, but couched that desire with the need to acquire more sports programming --
particularly National Football League games -- to make any such launch viable.
During a Feb. 2 conference call discussing News Corp.'s second fiscal quarter earnings, Murdoch said that
wouldn't happen -- without a significant NFL game presence.
“Will we be taking on ESPN? We would not do that without a pretty full NFL franchise,” Murdoch said.
Comcast officials could not be immediately reached for comment.
Some view Tagliabue's new-network comments as a play to get ABC/ESPN to conclude their current rights
fees negotiations. Although he said The Walt Disney Co. properties "have tremendous interest in staying
with the NFL, both on cable television and broadcast television. We have an interest in them staying with
us. We have a disagreement about what the rights fees should be."
The parties have met on a number of occasions -- most recently last Wednesday in New York -- to discuss the rights extensions.
Following major price hikes for renewals of DirecTV Inc.'s Sunday Ticket out of market
package, as well as Fox's NFC and CBS's AFC offerings last fall, the NFL, according to published reports,
is asking for some $900 million and well over $600 million annually for its current Sunday (ESPN) and
Monday (ABC) night packages.
While ESPN's dual revenue stream of advertising and cable subscriber fees putatively enables it to turn a profit on the deal, ABC is said to be losing $150 million to $200 million annually on its present $550 million allocation. Speculation persists that the Disney networks might switch nights.
An ESPN spokesman issued the following statement: "We will continue to have conversations with the
league about renewing the ABC and ESPN rights."
Failing contract consummation, Fox or NBC might be willing to step in. Disney's exclusive negotiating
window with the league, though, doesn't end until October, something that News chief operating officer
said renders such speculation moot -- at this juncture.
“We don’t even have the right to bid against them until they end the formal negotiating period. So, there’s
really nothing to say about a sports channel," he said on the aforementioned earnings call.
In November, DirecTV signed a five-year, $3.5 billion (a 75% jump) Sunday Ticket renewal covering the
2006-2010 seasons, which again shuts cable out from offering that attractive package. To secure the NFC
package, Fox paid 30% more annually over current rates to $712.5 million for each of six years through the
2011 seasons. CBS increased its outlay 25% to $622.5 million annually over the same span.
The league's contract with the broadcast carriers, like its pacts with ESPN and ABC, were set to expire after
the 2005-06 season.
As for the new late-season primetime package of Thursday/Saturday games the league is proposing,
NBC/USA Network, Fox, TNT and the NFL Network are all said to have interest.