The latest issue of VARIETY examines the cable industry's
complaints about the out-of-town sports packages available
through direct satellite TV.  While federal regulations prevent
cable systems from making exclusive deals with single cable
networks such as ESPN or CNN, all networks are offered on DBS
systems, representing "potentially serious competition to cable
down the road."  Thus, DBS "suffers from no constraints in
securing rights" to out-of-market games.  While several cable
operators say they would want to offer similar league packages,
VARIETY's John Dempsey notes at least three reasons why pro
sports leagues have "deprived cable" of their out-of-market
games:  1) The broadcast networks claim that if those homes with
cable could tune out of a national sports telecast and log into
an out-of-market game, the Nielsen ratings might fall off so much
that advertisers "would lose interest" in supporting network
coverage;  2) Most cable systems "don't have anywhere near" the
channel capacity that DBS does;  3) Most cable operators are not
convinced that the games will offer significant revenue.  Dempsey
writes that by '98, when the exclusivity deal between the leagues
and DBS distributors will have expired, analysts are projecting
that a "majority of cable operators will be doubling and tripling
their channel capacity, setting aside a dozen or more channels
for pay-per-view" (VARIETY, 8/28-9/3 issue).

     A formal offer by Time Warner to buy Turner Broadcasting for
an estimated $8.5B in stock "could be made early next week as key
participants have reached agreement on the broad outlines of a
deal," according to sources familiar with the talks cited in
today's L.A. TIMES.  Key points:  the terms sought by TCI Chair
John Malone, who holds approx. 20% in TBS, and how Time Warner
Chair Gerald Levin will protect himself against his two newest
stockholders, Ted Turner and Malone (Sallie Hofmeister, L.A.
TIMES, 9/1).  The N.Y. TIMES reports that some senior Time Warner
execs, including HBO Chair Michael Fuchs, are said to be wary of
how much power Turner will have in the new combined company (Mark
Landler, N.Y. TIMES, 9/1).  The ATLANTA CONSTITUTION reports that
Turner's Atlanta-based operations would remain there and not move
to New York.  Turner is expected to continue to run CNN and his
other businesses (Kloer & Haddad, ATLANTA CONSTITUTION, 9/1).

     CBS must decide by Tuesday whether it wants to renew for
five more years as broadcaster of the U.S. Open.  But, Richard
Sandomir notes in this morning's N.Y. TIMES, "if CBS does not
double what it now pays, it will lose another high-profile sports
property."  The USTA, working with IMG as its agent, wants an
average of $38M for its next five-year deal, up from about $19M.
If CBS rejects that, bidding is open to the other broadcast nets
with Fox "expected to be the strongest competitor."  If another
net does not offer what the USTA is seeking, CBS has the right to
match and renew through 2000.  CBS Sports President David Kenin:
"Obviously, we'd like to keep it, but we have to do the right
deal.  They're asking for a dramatic increase.  It's an important
event, but it's not as important to our affiliates as it is to
us."  David Winner, Coordinating Producer of the tournament:
"Not keeping it sends a message to the sports department that we
don't matter very much.  I'd be shocked if we don't renew it."
CBS Sports Senior VP Rick Gentile:  "We can't afford to lose
anything.  We don't have the luxury of having any properties to
replace it with.  Forty hours of tennis is a lot to take out of
your arsenal."  The decision rests with CBS Chair Laurence Tisch,
not prospective buyer Westinghouse (N.Y. TIMES, 9/1).  Phil
Mushnick writes that CBS is in a "bad spot as it's being forced
to overbid" to keep the tournament (N.Y. POST, 9/1).
     WORLDWIDE COVERAGE:  ProServ Television, which is exclusive
domestic and international marketer for the U.S. Open, has
announced that 147 countries are taking coverage from the
tourney, up 8% from last year (PSTV).

     The Timberwolves and KFAN-AM announced that the two had
reached agreement to have the station continue to serve as the
team's flagship radio station (Wolves)....Thanks to a simulcast
agreement with WSUN-AM, the Magic are returning to WFNS-AM.
WFNS, the Lightning's flagship station, dropped the Magic last
year because of hockey conflicts.  This year, when the two teams
play on the same night, the Magic will be on WFNS and the
Lightning on WSUN (TAMPA TRIBUNE, 9/1)....In addition to carrying
Cal Ripken's record-tying and record-breaking games next week,
HTS will air a special one-hour tribute, "Hats Off To Cal."  HTS
viewers will also be able to send congratulatory notes to Ripken
through HTS's home page on the Web -- address:
http://www.htssports.com (HTS). ....CTV has applied for a license
to sell PPV sports and special events on DBS.  They would
guarantee a minimum of 20% Canadian content and games "not
otherwise available" (TORONTO STAR, 9/1)....The NLRB ruled that
the strike against Detroit newspaper workers was the result of an
unfair labor practice.  If upheld, workers would be entitled to
get their jobs back, while the dispute is settled (CHICAGO
TRIBUNE, 9/1)...."The Sharp Jets/Giants Report" debuts on MSG
Network September 4.  The show is sponsored by Sharp Electronics
(MSG)....The Tyson-McNeeley fight will gross more than $96M
worldwide, including a record $63M for U.S. PPV.  SET calculates
that the fight was purchased by 1.52 million homes, also a record
(PHILADELPHIA INQUIRER, 9/1)....The Fabulous Sports Babe makes
her TV debut on The Deuce on September 18 at 1pm EDT (ESPN2).

     John Helyar examines the sports presences on the World Wide
Web, summing up the current state of affairs by noting that
ESPNET's SportsZone has only one advertiser, Gatorade.  Helyar
writes, "Lots of content but little revenue; lots of potential
future multimedia breakthroughs but some maddening present-day
technological flaws; lots of players in this brave new world but
few likely winners."  Gene DeRose, who heads the online research
firm, Jupiter Communications:  "This is a medium that's even more
conducive to sports than television.  In terms of statistics, up-
to-the-minute scores, and ability to focus in on the specific
players and teams, it's just made for the very focused attention
of fans."  The following players have aligned:  ESPN-Starwave-
Microsoft; SportsLine USA-IMG; Baseball-MCI, the NHL-America
Online, and the NBA said to be "SportsZone bound."  But the NFL
has chosen the independent route (the NFLPA is working with
SportsLine).  The NFL's "Team NFL," which does have promotional
partnerships with SportsZone and Time Warner's Pathfinder, will
offer play-by-play progress reports on each game -- a feature the
league "promises to zealously reserve for itself and bar other
sports services from transmitting."  NFL Enterprises VP Ann
Kirschner, who is heading Team NFL:  "As a programmer, you have
much more flexibility this way; you look how you choose to look"
(WALL STREET JOURNAL, 9/1).