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Closing Bell

Closing Bell, November 7, 2002

The Daily Insider
Afternoon News & Headlines
Thursday, November 7, 2002
4:00pm ET

Excerpts From Today's Session Of Sports Media & Technology Conference 2002

Sports Highlights From Cablevision's Q3 '02 Results Released Today

Baron Davis And Kenyon Martin Added To Rbk's Above The Rim Collection

Daktronics To Install Information Display System In Rockets' New Home

Foot Locker To Be Featured Brand On New Amazon.com Store

Buzzer Beaters/In Other News/Articles Of Interest/Daily Stat/Channel Surfing


EXPERTS DISCUSS MAKING MONEY ON THE WEB AT CONFERENCE

The SportsBusiness Journal's Sports Media & Technology Conference 2002 began today at the Hilton N.Y. in Manhattan. The following are highlights from today's session:

Peggy Smyth, a Partner with conference sponsor Deloitte & Touche, delivered the first address, and noted recent reports of the possible merger of CNN and ABC News, as well as Disney and AOL Time Warner looking to sell their sports teams. Smyth: "You can expect to see many of those affiliates that are distributing their sports content looking to do deals to streamline their operations and become more transparent in the near future. These trends are likely to accelerate soon. The FCC's recent relaxation of the rules over cable and TV ownership expect to let loose a cascade of merger and acquisition activity. We expect to see some TV and cable broadcast partners shopping TV and cable stations, and network as well, with some networks getting much larger in the future."

The keynote panel – titled "Finding the Upside of a Multi-Platform World: Effectively Reaching the Fans, the Industry and the Advertising Community" – featured FSN President Tracy Dolgin, SportsLine.com Founder & CEO Mike Levy, The Sporting News President Jim Nuckols and ESPN.com/ESPN Magazine Exec VP John Skipper.

Levy, when asked whether his Internet operations are profitable, said, "We expect for the first time [in the current quarter] to be cash-flow positive. … I think, more and more, we will be profitable. We've proved that the subscription model works in fantasy. We generated from zero dollars last year to over $10[M] in pay-fantasy revenue, and it's becoming a bigger part of our business. Our revenues for the year will be over $60[M] – the bulk of that will be in advertising. We see this business growing to well over $100[M] over the next several years."

Skipper: "Michael Eisner announced to investors about a year ago that he would see his Internet business make money by the fourth quarter of the fiscal year, and I always do what Michael tells me to." Asked if ESPN.com is making money, Skipper said, "We are making a positive contribution. The Walt Disney Internet Group announced that it is making a profit for the fourth quarter, and I can assure you I'm not a laggard in that group."

Nuckols: "We feel like we have found a model on the Web that can make money. It's not primarily an advertising-driven model. That's clearly always going to be a key component of it, but people will pay for really good content, … and people will pay for games. So that's the model that we're looking at – content, games and advertising – you put those three together and manage it smartly, it can be a profitable business."

Dolgin: "We look at what the Internet does for our overall business, including bringing in our partners to spend money on the rest of our business … so it's not just a singular piece."

See tomorrow's issue of THE DAILY for more from the conference.


RAINBOW MEDIA HOLDINGS SHOWS GAINS, MSG REVENUE DOWN

Cablevision Systems Corp. today released financial results for Q3 '02. Among the sports-related highlights:

Rainbow Media's Consolidated Regional Sports unit, which consists of FSN FL and FSN OH, reported a net revenue increase of 31% over last year, to $41.3M, while adjusted operating cash flow (AOCF) rose 53%, to $15.1M. The increased numbers are primarily the result of FSN OH carrying 150 Indians games, 50 more than last year.

Non-Consolidated Regional Sports, which consists of FSN Chicago, FSN Bay Area and FSN New England, reported a net revenue increase of 13% over last year, to $58.1M, while AOCF rose 38%, to $13.9M. Viewing subscribers increased 2% over last year, to 10.6 million.

MSG's net revenue totaled $116.7M, a 9% decline from a year ago. The lower revenue was attributed to Yankee games no longer being carried on MSG Network. AOCF was $16.5M, a stark improvement over last year's $32.4M deficit. Last year's deficit was the result of a write-off of certain Knicks' contracts.

Shares of Cablevision closed today at $15.50, down $0.05 (THE DAILY).


DAVIS AND MARTIN TO WEAR RBK ATR ELITE FOOTWEAR

Reebok announced today that Hornets G Baron Davis and Nets F Kenyon Martin have signed on to promote Rbk's Above The Rim (ATR) Collection. Davis and Martin will wear ATR Elite footwear, and will be featured in a TV and print ad campaign beginning in spring '03. The ATR Elite footwear will be available at retailers in January for a suggested retail price of $80. Davis and Martin join fellow ATR endorsers Rockets G Steve Francis and Warriors G Jason Richardson (THE DAILY).


BUZZER BEATERS

PAINT BOOTH: Each week, some auto racing teams display different paint schemes on their cars to reflect a different sponsor, brand, promotion or special cause.  This week, while the NASCAR Winston Cup Series visits Phoenix Int'l Raceway for Sunday's Checker Auto Parts 500, Roush Racing's No. 17 DeWalt Ford of Matt Kenseth will don a scheme touting its DeWalt Million Dollar Challenge, a national promo that offers $1M to the contestant who can use the new DeWalt cordless XRP drill to drive five screws in the fastest time.  Meanwhile, Rubbermaid will leverage its Stain Shield product on the No. 97 Roush Racing Ford of Kurt Busch, and Kodak will promote is new Kodak Perfect Touch service on Morgan-McClure Motorsports' No. 4 Chevy of Mike Skinner (THE DAILY).

Daktronics announced today that it will install an integrated video, scoring, information and advertising display system for the Houston Arena, future home of the Rockets and WNBA Comets, prior to the '03 NBA season. The deal is expected to close later this month (THE DAILY).

Foot Locker today announced that its Footlocker.com reached a strategic alliance with Amazon.com, under which Foot Locker will be a featured brand in the Amazon.com Apparel & Accessories store. The store launches today (THE DAILY).

The ROCKY MOUNTAIN NEWS reports that former Nuggets coach Doug Moe will be honored tonight during the Pistons-Nuggets game at the Pepsi Center. The Nuggets will have a banner "bearing [Moe's] name and the number 432 (Moe's total wins as Nuggets coach) … hoisted to the roof." The team will also distribute 10,000 Moe masks at the game (ROCKY MOUNTAIN NEWS, 11/7).

The Concord & Kannapolis INDEPENDENT TRIBUNE reports that Dale Earnhardt Jr. "is lending his name and support to help create the Dale Earnhardt Jr. Grappling Classic, which organizers say has the potential to be the biggest jiu-jitsu (also known as jujitsu) tournament in the world." The event will be held at the Cabarrus Arena and Expo Center in Concord, NC, on January 25, 2003 (Concord & Kannapolis INDEPENDENT TRIBUNE, 11/7).

The Gazelle Group and the Black Coaches Association today announced Dell as the title sponsor of the BCA Invitational, a four-team round-robin basketball tournament from November 16-19 in Fort Collins, CO (THE DAILY).

FLW Outdoors announced today that Lawry's Seasonings and Marinades has signed on as a sponsor for the '03 Wal-Mart FLW Tour. In addition to a Lawry's-decorated Ranger boat, the company will set up a Cooking Caravan that will make appearances at tournament weigh-ins (THE DAILY).

Aaron Buerge, star of ABC's "The Bachelor" and an avid Chiefs fan, "plans to open a sports bar with two 105-inch projection TVs next month" in Springfield, MO (SI, 11/11 issue).


TODAY'S ARTICLES OF INTEREST

The WALL STREET JOURNAL's Christina Binkley reports that as ski resorts "are scrambling to boost business amid the slump affecting the travel industry," many are offering "VIP treatment to the masses" (WALL STREET JOURNAL).

AD AGE's Tobi Elkin argues that "the Holy Grail for media and marketing honchos seeking to circumvent ad-skipping technology is not product placement." Instead, marketers could be "better served by harnessing the plethora of emerging technology and software platforms" (AD AGE).

See The Daily Insider's Articles Of Interest section for more sports business-related links.


TONIGHT'S EVENTS

Tigers OF Bobby Higginson will host a dinner and silent auction for the Ronald McDonald House of Detroit at 6:30pm ET at Comerica Park's Tiger Club (THE DAILY).

ESPN's Chris Berman will serve as the keynote speaker at mental health agency Compeer's seventh annual "Friend Raising" dinner at the Buffalo Convention Center at 7:00pm ET (THE DAILY).

The Chargers will auction off a limited number of throwback jerseys, helmets and other items from this past weekend's game against the Jets beginning at 7:00pm PT on the team's Web site. Proceeds will benefit the Chargers Champions community initiative (THE DAILY).

Coyotes President Jim Lites and G Sean Burke will attend a ceremony tomorrow morning at the site of the team's new arena in Glendale, AZ, beginning at 5:30am PT to mark the pouring of concrete for the suite level concourse (THE DAILY).

Columbia (NJ) High School boys soccer coach and MLS MetroStars advisory board member Gene Chyzowych will be honored by the Frank McGuire Foundation at a dinner at the N.Y. Athletic Club (THE DAILY).


IN OTHER NEWS…….

The AP reports that retailers in the U.S. "got a welcome surprise in October as the arrival of cold weather sent consumers on a buying spree and raised hopes that the holiday season might be better than expected" (AP, 11/7).


THE DAILY STAT: BILLBOARD CHARTS

The following lists Billboard Magazine's top-selling CDs for the week ending October 31 (BILLBOARD.com, 11/7):

RK
ALBUM ARTIST LABEL
1)
8 Mile Soundtrack Shady
2)
Stripped Christina Aguilera RCA
3)
Nirvana Nirvana DGC/Geffen
4)
Shaman Santana Arista
5)
Melt Rascal Flatts Lyric Street
6)
Cry Faith Hill Warner Brothers (Nashville)
7)
Scarlet's Walk Tori Amos Epic
8)
The Eminem Show Eminem Web/Aftermath
9)
Let Go Avril Lavigne Arista
10)
Home Dixie Chicks Monument/Columbia

CHANNEL SURFING

ESPN will air Cincinnati-Louisville NCAA football at 7:30pm ET.

ESPN2 will air Bruins-Red Wings at 8:00pm ET.

ESPN Classic's "SportsCentury" will profile Jim Thorpe at 8:00pm ET.

CBS NFL analyst Phil Simms, former MLB manager Bobby Valentine and Don King are scheduled to appear on FSN's "Best Damn Sports Show Period."

Ice Cube will be on TNT's "Listen Up! Charles Barkley with Ernie Johnson" at 7:00pm ET. The show will also have a segment with Thrashers LW Dany Heatley and RW Ilya Kovalchuk.

TNT will air Lakers-Celtics at 7:30pm ET and Pistons-Nuggets at 10:00pm ET.

HBO's "Inside the NFL" will feature 49ers WR Terrell Owens at 8:00pm ET.

Giants WR Ron Dixon and Jets OT Jason Fabini will be on MSG's "Unnecessary Roughness" at 11:00pm ET.

A&E's "Biography" will profile Gary Cooper at 8:00pm ET.

E!'s "True Hollywood Story" will profile Rebecca Schaeffer at 8:00pm ET.


HEADLINERS

Here are tonight's headline guests on the following talk shows:

"Late Show" Tom Brokaw
"The Tonight Show" Dr. Phil McGraw
"The Late Late Show" Andy Garcia
"Late Night" Amy Poehler

If you have any questions, comments or suggestions, please let us know at:
dailyinsider@sportsbusinessdaily.com

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