TV rights fees for the PGA Tour, NBA and NFL were
profiled by CNN's Sean Callebs. Tiger Woods' win at The
Masters was "great timing for golf. CBS' contract with the
PGA [Tour] is up next year. Woods' popularity and the
ratings he attracts will mean more rights money from the
networks." Pilson Communications Chair Neil Pilson, on the
"Woods factor" only going so far: "The fact is no one knows
how many tournaments Tiger Woods is going to play in. That
is going to have an unsettling influence on where the rights
fees goes, because Tiger is not going to play in all or
perhaps even most of the PGA [Tour] events." NBC's $366M
rights fee with the NBA expires after the '98 season.
Callebs: "Some media specialists expect CBS to make a play
to gain rights to some games. And the forecast, record
rights fees for the NBA." Callebs notes the NFL "should
reap the biggest reward," with at least a 40% increase in
rights fees with its new deal ("Moneyweek," CNN, 4/27).
PAY TO PLAY: Ladenburg Thalmann Media Specialist Porter
Bibb: "We can see in our lifetime, probably in the next
decade, the day when you will not see any free sports on
television. Certainly the big ticket events are going to be
all pay-per-view." Callebs: "Analysts say the networks are
reaching the point of diminutive returns. They can't sell
enough advertising to pay the hundreds of millions for the
rights to major league events. Media observers say the
public will complain and law makers will balk, but in the
end, the public will probably end up paying for such
American classics as the World Series" ("Moneyweek," 4/27).
