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Leagues and Governing Bodies

AS THE MONEY STARTS ROLLING IN, WHO'S NEXT AT SPORTS TROUGH

          After the new $2.64B, four-year TV deal between the NBA
     and its partners, NBC and Turner, Richard Sandomir of the
     N.Y. TIMES asks, "Can the [NFL] expect a similar leap when
     its network negotiations begin next month?"  NFL
     Commissioner Paul Tagliabue: "It will have no direct effect
     on our negotiations.  It's a great set of contracts for
     them.  It shows the strength of the NBA. We're each dealing
     with different television realities. ... What drives the
     negotiations is not the salivation of the owners [over the
     NBA deal], but the intelligence of the negotiators in the
     room."  NHL Commissioner Gary Bettman said that the NBA
     deals "show the marketplace is healthy and if you have a
     well-run sport, you can maximize your presence in the
     marketplace."  As far as any potential impact on future NHL
     TV rights deals, Bettman said, "As long as there's money
     left over, we'll be happy" (N.Y. TIMES, 11/13).
          ONE MAN'S VIEW: In Dallas, Kevin Blackistone commented
     on the sports TV marketplace after the NBA deal: "It's what
     they call in economics inelastic demand. ... No, there
     really isn't any basis for the forecasts that a financial
     doomsday is in the immediate future for sports. ... And this
     week's deal won't be the biggest for long.  The next NFL
     deal ... will be the most mind-boggling thing you've seen"
     (DALLAS MORNING NEWS, 11/13)....AD AGE's Chuck Ross reports
     that NBC "is considering a radical new plan" that would "tap
     into affiliates' profits to help defray the anticipated
     cost" of renewing its NFL contract.  The plan calls for NBC
     to "take a certain percentage of the profits" local affils
     make selling ad time on NFL broadcasts.  The percentage
     "would be based on a sliding scale ... factoring in the size
     of the market and whether it has a team" in the AFC.  Ross
     writes that "[a]ffiliates are likely to balk at the plan if
     NBC tries to implement it."  Ross adds that it is "also
     possible NBC will follow a more traditional approach, asking
     all affiliates to give up some time" for extra network
     advertisements (AD AGE, 11/10 issue).

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