Broadband Bullies

In a move that would serve to kneecap the ambitions of Comcast-NBC Universal, ESPN is poised to take a run at the rights for the National Hockey League.And the battle for the NHL could function as a dry run for ESPN's pursuit of a far bigger prize: the Olympics. That said, Bristol does not have an open field spread out before it; as the incumbent cable rights holder, Comcast's Versus has first dibs. Since signing a three-year, $207.5 million NHL deal in 2005 -- one that came front-loaded with a three-year renewal option -- Versus has boosted its sub count by 11 million households while quadrupling its ad sales revenue. Per Kantar Media estimates, Versus took in $107.4 million in sponsor dollars in 2009, notching a 5 percent gain in the thick of the recessionary doldrums. Before the crush of the holidays puts New York on ice, NHL commissioner Gary Bettman will meet with Versus brass to discuss a renewal. Per the terms of their original pact, Versus has an exclusive window with the league, and while neither side would comment on the matter, sources indicate that the NHL is open to lining up a new TV partner.NBC's broadcast deal is also running down; while Versus pays $72.5 million per year for the rights to carry NHL games, the Peacock doesn't part with a red cent. Rather than pony up for hockey rights, NBC reached a revenue-sharing deal that sees it split its ad dollars with the league. Given that the Comcast-NBCU deal could close as soon as year's end, any formal agreements should hold until at least January, opening the way for NBC and Versus to offer a joint bid. "We're dealing with consummate professionals at NBC and Versus," Bettman said. "We're not viewing this situation as anything but business as usual." Dick Ebersol, chairman, NBC Universal Sports and Olympics, has said that he wants to retain the rights to the NHL, which signed off on a two-year deal with the broadcaster prior to the doomed 2004-05 season. Now in its sixth season with the league, NBC has boosted deliveries 13 percent, averaging 1.56 million viewers per game in 2009-10.Rest assured, ESPN isn't all that concerned with what Ebersol wants. While Bristol is officially playing coy about its goals, executive vp of content John Skipper has said that he is interested in bringing the NHL back into the fold. The enmity that strained talks between ESPN and the NHL back in '05 is a distant memory, and franchise owners are hungry to reclaim prelockout ratings.ESPN's move to end its 21-year run with the league was a culmination of weeks of public badmouthing by former evp, programming and production Mark Shapiro. "That guy shit all over the NHL," said one network exec. "They probably could have had the rights for $55 million, but Shapiro went out and talked to anybody with a laptop and a pulse, and Bodenheimer had to back him up." If ESPN does submit a bid, it will jack up the NHL's asking price above what already promises to be an inflated sum. Team owners are looking for full broadcast compensation and as much as a 50 percent increase over the current rights fee, which adds up to $110 million per year.A media agency exec who handles business for a blue-chip NHL sponsor said the exposure afforded by ESPN's 100 million footprint would balance out the inevitable jump in spot pricing. "Not only would it get hockey back on SportsCenter, but you know ESPN would go all out with their playoff coverage," the exec said.As Versus huddles with the NHL, Bettman will be reminded that Comcast provided a huge cash infusion when the league needed it most. Thing is, he's not a nostalgic guy. "Bettman's not going to get all dewy-eyed about his relationship with Versus," said one network boss. "He's all business, he's back in the driver's seat and he's going to get the deal that's best for the NHL." EBERSOL'S LAST STAND?While it's a dead certainty that the Comcast-NBCU mashup will look to topple ESPN from atop the sports-media heap, it's less clear as to who will be calling the plays as negotiations begin for the NHL and Olympic broadcast rights.As chairman of NBC Universal Sports and Olympics, Dick Ebersol has compiled the network's playbook for the last 21 years. The 63-year-old has produced eight of the 10 most-watched sporting events in history and established NBC as home base for the Summer and Winter Games going back to 1992. Now, after a number of false starts, the International Olympic Committee said it is prepared to begin negotiating a deal for the 2014 and 2016 Games, and Ebersol is well-positioned to outbid his rivals.These Olympic talks may come to be remembered as Ebersol's last stand. While NBC is certain to send him to Lausanne, it's anyone's guess if Comcast will retain Ebersol's services after his contract expires in 2012.Comcast CEO Brian Roberts is unlikely to countenance Ebersol's big-spending ways. NBC coughed up $820 million for the TV rights to the Vancouver Games, a 35 percent premium over its investment in the '06 Winter Games."Roberts is a pragmatist. He'll spend if he thinks he's getting a good deal, but he's never going to pull a Rupert Murdoch," said one network sports chief, referring to News Corp.'s $1.6 billion bid to strip CBS of its NFC rights in 1993.If Comcast elects to replace Ebersol, it won't be with Jeff Shell. Insiders say there are no plans to give the president of the company's programming unit oversight of the combined sports properties.

Convergent TV

Broadband Bullies

Anthony Crupi

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Anthony Crupi