| | The Daily Insider
Afternoon News & Headlines
Wednesday March 12, 2003
4:00pm ET | |
| |
| • | Highlights From Today’s Activity At The World Congress Of Sports |
| • | Martha Burk Rejects Compromise Location For Augusta Protest, Plans Lawsuit |
| • | Foot Locker Reports Q4 Net Profits Up 33% |
| • | The Sporting News Provides Bracket Breakdown; SI Delves Into Kirby Puckett |
| • | In The Red: Celtics To Honor Legendary Coach With Bobblehead Tonight |
| • | Buzzer Beaters/Tonight’s Events/Channel Surfing/In Other News/The Daily Stat |
MOONVES TELLS WORLD CONGRESS NETWORKS IN A `TIME OF CRISIS’
Today marked the opening of the 2003 World Congress of Sports, presented by Octagon and sister publication SportsBusiness Journal, at the Waldorf-Astoria in N.Y. CBS President & CEO Les Moonves delivered the keynote address and said, “This is a time of crisis for the network television business. In addition to the usual high competition and narrow margins, we’re facing obviously the shadow of war, the growth of cable channels as major competition, the implications of reality programming and the fact that only one in five new television shows succeeds.”
Moonves added, “Sports must be seen as an integrated part of everything we do at the network -- adding value to every part of the organization -- and being enhanced in turn by the value that a total media company can provide. It cannot be set apart any more than news or entertainment programming can. It’s part of an integrated network gameplan where spots on sports are sold with spots on entertainment shows; where promotional opportunities are used in sports to help other parts of our schedule, or where other parts of our schedule are used to help sports; where marketing opportunities go across all platforms of this company, and success is defined as success of the whole, not any one part, including sports.”
Moonves continued, “The days of networks paying ever-escalating rights fees may be over. But we’re still very upbeat on the sports business because of what it does for all of us; and together, we think new economic models can be worked out to ensure the future of the sports business on network television.”
Following Moonves’ keynote, a panel discussion entitled, “The Powers That Be: What Do People At The Forefront Of Sports Think About The Future Of Sports?,” included D’Backs/Suns Managing General Partner Jerry Colangelo, Mavericks Owner Mark Cuban, MLB President & COO Bob DuPuy, IRL President & CEO Tony George, Charlotte NBA expansion franchise Owner Robert Johnson and Patriots Owner & Chair Robert Kraft.
Johnson: “The sports product is sort of interwoven into the psyche of this country. It’s an emotion-engaging product that you simply can’t replace. The question is how do we marry that product with new technology, new distribution systems, new ways of presenting the programming in an entertaining and dramatic fashion. Also, I think you need to look at sports more and more so as becoming a regional product, particularly as you build up the potential for regional sports networks as sort of necessary components of successful sports exhibition in your marketplace.”
Kraft: “I think Mr. Johnson’s comments about regional sports networks is even more true post-9/11 -- that we have all become regional entertainment centers. Franchises have become more and more important, and will become more and more important.”
Colangelo, on the issues facing the NHL: “I’ve always felt the NHL has a cult following. … The base of support just isn’t there in all of these markets, because when you look at the proliferation of sports in our country – first of all, worldwide soccer No. 1, basketball No. 2 – where does hockey really fit into that mix? How many youngsters play hockey around the country other than in the East and in the Midwest? And so, until there is a big change in the ratings and there are national monies available, there will be tremendous stress on the local markets to be able to compete. So they have their work cut out for them.”
Cuban responded to Colangelo: “The difference between hockey pulling a 0.8 on cable and the NBA pulling 1.1 on TNT is a 0.3, or 240,000 people -- 240,000 people is the difference between cult and the second-ranked sport? I mean, that’s either a great opportunity for them or we need to really be careful. When I talk about our marketing abilities, I look at the Westminster Dog Show pulling twice what the Kings vs. Spurs pulls, and I ask myself, how can that be? That’s not a knock on the NBA, and that’s not a plug for the Westminster Dog Show. It just makes me ask the question, are we missing an opportunity? Are we not doing our job as well as we could? Or do I just not understand how it all works and this is just the real world, just deal with it? That’s what I’m trying to figure out. I just don’t see anybody other than the NFL really at a position of, look we’ve got our job and we’re doing this right. I look at ourselves and I say there’s tons of room for improvement.”
Colangelo, to Cuban: “The comparison you just used will translate into at least a $20[M] swing in what we derive from national television revenues as compared to hockey. So, there is a major difference between the two.”
The 2003 World Congress continues tomorrow.
LAND RESERVED FOR AUGUSTA PROTESTERS NOT TO BURK’S LIKING
The AUGUSTA CHRONICLE reports that Augusta National Golf Club today agreed to “give up 5.1 acres of its land outside the golf club during Masters Week for protesters.” The land is located about three-tenths of a mile from the entrance to Magnolia Lane. The move comes after Augusta-Richmond County Sheriff Ronald Strength today “denied requested locations” to NCWO Chair Martha Burk, who was seeking to protest directly in front of the club. The ACLU was expected to file a lawsuit this afternoon in federal court on Burk’s behalf, challenging the city law that governs public protest and demonstration (AUGUSTA CHRONICLE, 3/12). Burk: “The men of Augusta National Golf Club come through the front gate. To influence those folks, that's where we need to be” (AP, 3/12).
EARNINGS REPORTS FROM FOOT LOCKER; THE SPORTS AUTHORITY
Foot Locker Inc. today reported that Q4 profits rose 33% from the same period a year ago. Net earnings for the quarter ended February 1 were $48M, or $0.33 per share, compared with $36M, or $0.24 per share a year ago. Net sales rose 5.1% to $1.21B. Same-store sales fell 0.9% (REUTERS, 3/12).
FL-based The Sports Authority reported Q4 net income of $52.9M or $1.56 per diluted share versus $15.6M or $0.47 per share for the year ago period. The net income includes a one-time tax benefit of $40.6M. Sales for the quarter were $388.4M versus $400.6M for the same quarter last year, with same-store sales falling 4.7%. For FY ’02, sales were $1.425B, up from $1.415B. Same store sales for the FY were down 0.3% (THE DAILY).
BUZZER BEATERS
Sporting News this week offers, “Breaking Down The Bracket … Your complete guide to Selection Sunday and beyond.” Univ. of OK G Hollis Price is featured on the cover.
Sports Illustrated explores “The Secret Life of Kirby Puckett.”
| | |
| Sporting News | Sports Illustrated |
The NHL today announced that NHL.com doubled its one-day traffic record yesterday by recording over 1.1 million visits -- the NHL's trade deadline day. The visits generated over 7.5 million page views – besting NHL.com's previous one-day record of 3.8 million, which occurred on last year's trade deadline (THE DAILY).
Unilever, maker of Close-Up brand toothpaste, today formally announced the signing of Serena Williams to an endorsement deal. Williams will appear on three different collectible boxes for the brand (THE DAILY).
The Mariners this afternoon unveiled their eight new TV commercials for ‘03, via Copacino, Seattle, at a luncheon at Safeco Field (THE DAILY).
The U.S. Air Force Academy today signed an eight-year multimedia rights partnership with Viacom Outdoor Sports marketing, a subsidiary of Viacom Outdoor Group (THE DAILY).
A LIGHTER BUZZ
The Las Vegas Chapter of Speedway Children's Charities NASCAR Driver Auction, held before the UAW DaimlerChrysler 400 on March 3, raised a $145,720 for various Las Vegas children's charities (LAS VEGAS SUN, 3/12).
TONIGHT’S EVENTS
The Celtics will distribute Red Auerbach bobblehead dolls to the first 10,000 fans to attend the team’s 7:00pm ET game against the Hornets at the FleetCenter (THE DAILY).
The ACC will hold its 50th Anniversary Gala at the Greensboro Coliseum Special Events Center, beginning at 8:00pm ET. Expected to attend are former FL St. Univ. QB Charlie Ward, former NC State Univ. F David Thompson, former Univ. of VA C Ralph Sampson and current Duke Univ. G/F Alana Beard (THE DAILY).
Vikings RB Michael Bennett will make the ceremonial “Let’s Play Hockey” call prior to the Stars-Wild game at the Xcel Energy Center (ST. PAUL PIONEER PRESS, 3/11).
CHANNEL SURFING
ESPN will air the first round of the Big East Conference men’s basketball tournament, Georgetown-Villanova at 7:00pm ET and Miami-Seton Hall at 9:30pm ET.
ESPN2 will air NCAA men’s basketball, St. Francis-Wagner in the Northeast Conference Championship at 7:00pm ET and Eastern Washington-Weber State in the Big Sky Conference Championship at 9:00pm ET.
ESPN Classic’s “SportsCentury” will profile Woody Hayes at 8:00pm ET and Oscar De La Hoya at 8:30pm ET.
HBO will air the second installment of its boxing series, “Legendary Nights” at 10:00pm ET.
A&E’s “Biography” will profile James Dean at 8:00pm ET.
E!’s “True Hollywood Story” will profile Lisa Marie Presley at 8:00pm ET.
E’s “Revealed” will profile Anne Heche at 10:00pm ET.
TV Land and Nickleodeon will air the TV Land Awards at 9:00pm ET.
Musician Elvis Costello will guest host CBS’ “Late Show” at 11:35pm ET as David Letterman continues to recover from a case of the shingles.
HEADLINERS
Here are tonight’s headline guests on the following talk shows:
| “Late Show” | Kim Cattrall |
| “The Tonight Show” | Fran Drescher |
| “The Late Late Show” | Eric Idle |
| “Late Night” | Frankie Muniz |
| “Jimmy Kimmel Live” | Lorenzo Lamas |
TODAY’S ARTICLES OF INTEREST
ESPN.com’s Darrell Rovell writes, “Though the insurance industry is still knee-buckled by claims related to the Sept. 11 terrorist attacks, the NBA’s insurance providers have continued to pay off on the mounting claims” by teams that have lost players to injury. NBA owners, fearing “they could find themselves without player disability insurance” after their current five-year deal with Trustmark Insurance expires following the ‘03-04 season, “acted quickly in January to extend the policy for another three years.” The extension “came at the price of higher insurance premiums, something that does not sit well with some NBA owners” (ESPN).
The FINANCIAL TIMES’ Kristina Spiller examines how the new mobile phone technology allowing the sending and receiving of small photos has enabled downloading of “a bar code that functions as a ticket” for sporting and other events. Mobile operators and phone manufacturers have “already celebrated this as a ‘killer application’” (FINANCIAL TIMES).
See The Daily Insider’s Articles of Interest section for these and more sports business-related links.
TODAY’S TEASER…
Mindbenders: The maker doesn't want it, the buyer doesn't use it and the user doesn't see it. What is it?
IN OTHER NEWS……
DAILY VARIETY reports, “In a surprise move, German publisher Heinrich Bauer has bowed out of the bidding war for the assets of bankrupt TV giant Kirch Media, paving the way for an acquisition of Germany's biggest broadcasting group by U.S. billionaire Haim Saban and French TV group TF1” (DAILY VARIETY, 3/12).
THE DAILY STAT: PRIMETIME NIELSEN RATINGS
The following lists the final Nielsen ratings for the top ten prime time shows for the week of March 3-9. Also provided are Nielsen ratings averages season-to-date for the nets' primetime coverage (USA TODAY, 3/12).
| RK | PROGRAM | NET | DAY | RAT/SHR | VIEWERS
(IN MILLIONS) |
| 1) | Survivor: Amazon | CBS | Thu | 13.5/20 | 23.3 |
| 2) | CSI | CBS | Thu | 14.2/23 | 22.9 |
| 3) | American Idol | Fox | Tue | 11.0/17 | 18.7 |
| 4) | American Idol | Fox | Wed | 10.4/17 | 18.0 |
| 5) | 60 Minutes | CBS | Sun | 11.6/20 | 17.0 |
| 6) | Everybody Loves Raymond | CBS | Mon | 10.7/16 | 16.8 |
| 7) | Fear Factor | NBC | Mon | 8.9/14 | 16.3 |
| 8) | Friends | NBC | Thu | 10.4/15 | 15.6 |
| 9) | Law & Order: Criminal Intent | NBC | Sun | 9.7/15 | 15.0 |
| 10) | Still Standing | CBS | Mon | 9.1/14 | 14.5 |
| |
| NET | VIEWERS |
| CBS | 11.0 |
| NBC | 10.7 |
| Fox | 10.1 |
| ABC | 8.7 |
| WB | 3.6 |
| UPN | 3.2 |
…TODAY’S ANSWER
A Coffin
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