Fox/Liberty Media officially announced its purchase of
a 40% stake of Cablevision's Rainbow Holdings for $850M.
With the deal, News Corp. Chair Rupert Murdoch creates "the
first toe-to-toe competitor to the sports powerhouse ESPN,"
according to Sallie Hofmeister of the L.A. TIMES. The deal
brings together 17 RSNs with 55 million subscribers under
the Fox Sports Net "banner," and the network "will be
grounded in hometown sports, but will be in a strong
position to bid for national sports contests and sell
advertising based on its national reach." Monday's deal
"underscores an emerging rivalry that is strictly business"
between Murdoch and Walt Disney Co. CEO Michael Eisner.
Disney reportedly bid $800M for the Rainbow properties in a
"defensive tactic to protect ESPN" (L.A. TIMES, 6/24).
TAKING ON THE MOUSE: In N.Y., Richard Sandomir:
"Perhaps ESPN is too omnipotent and too well-entrenched in
fan culture to cower in fear. But attention must be paid
when a challenge is made by a hungry force with gobs of cash
and access to 55 million cable homes." ESPN Exec VP Ed
Durso: "It remains to be seen how they piece together all
their pieces into one entity. We've dealt in a highly
competitive marketplace for a long time" (N.Y. TIMES, 6/24).
WHAT IT MEANS: NEWSDAY's Steve Zipay: "As the dust
settles, even the principals involved in the complicated
deal are hesitant to detail exactly what a local sports fan
can expect to see in the evening this fall." The network
has an extensive range of local programming rights and "that
maze of schedules could prove sticky if Fox wants to bid for
national rights to the NBA or NFL." Fox Sports Net CEO
David Hill: "We're taking an opportunistic view on any
sports deal that comes along" (NEWSDAY, 6/24). NFL Senior
VP/Broadcasting Val Pinchbeck, on the league's next TV
negotiations: "It appears what Fox is doing makes them a
viable contender" (N.Y. TIMES, 6/24). But in Chicago,
Michael Hirsley writes that Hill and Rainbow Holdings CEO
Josh Sapan "insisted the new media giant's emphasis will be
to customize regional networks to appeal to those markets'
favorite sports and teams" (CHICAGO TRIBUNE, 6/24).
NOTES: The deal gives Fox/Liberty programming control
of local TV rights to 20/30 MLB teams, 17/29 NBA teams,
12/26 NHL teams and 20 collegiate conferences. Additional
programming includes a variety of MLS, CBA, IHL and other
sports properties (THE DAILY)....Hill said that Fox is
"happy" with Liberty as a partner and "that there is nothing
on the burner right now for Liberty to sell its ownership
stake" (Scott Hettrick, HOLLYWOOD REPORTER, 6/24)....NBC, a
25% minority partner in Rainbow, "backed" the Fox bid. NBC
Cable President Tom Rogers: "We thought Fox was best because
it was the only way for all the regionals to combine into
one national service" (N.Y. TIMES, 6/24)....In FL, Sunshine
Network carries some Fox Sports Net programming, but is not
a complete affil. Sunshine GM Jim Liberatore: "We like [Fox
Sports Net], this is good programming, but don't tell me I
can't run the local programming already in place at
Sunshine" (Carter Gaddis, TAMPA TRIBUNE, 6/24)....In Boston,
Fox Sports Net will now align with SportsChannel NE,
although NESN and Fox currently have a two-year deal.
Industry sources say NESN "would be forced to find its own
programming to fill in the gaps. In the short run, NESN is
faced with promoting Fox programming that may soon be
airing" on SportsChannel NE (Howard Manly, BOSTON GLOBE,
6/24)....In Philadelphia, Jack Williams, CEO of the Comcast
Spectacor sports channel, said he doesn't view Fox Sports
Philadelphia as a "threat or competition." He said that he
is still talking with Fox/Liberty about Comcast becoming an
affil (Bill Fleischman, PHILA. DAILY NEWS, 6/24).
