CBS held a press conference to announce its signing of the AFC package as CBS Chair Michael Jordan, CBS Station Group Chair & CEO Mel Karmazin and CBS Sports President Sean McManus met the media. Karmazin, on the deal: "We felt if we could have the NFL and make a dollar, we'd do it. ... We know in our numbers that we are going to make money." Karmazin also stressed the strength of CBS' O&Os in AFC markets and the reach of its CBS Radio Network. CBS' O&Os are in N.Y., Boston, Oakland, Miami, Baltimore, Pittsburgh and Denver. More Karmazin, on why the NFL: "I think basketball is terrific. I don't think basketball will be as terrific after Michael Jordan. Baseball is terrific, (but) I don't believe baseball is as terrific as the NFL. ... The NFL is where you want to be" (THE DAILY). OTHER DETAILS: McManus said that CBS was "so determined" to get a part of the NFL, "that if it had not been awarded the AFC, it was set to "bid aggressively" for the NFC and "MNF." McManus also said that "increased ad revenues would help offset the cost." CBS will add three more 30-second spots to each game, as well as have spots on an hour-long pregame show, NFL-themed programs on Saturday and Sunday, sales on 14 O&Os and promos of CBS' 175 radio stations" (NEWSDAY, 1/14). CBS said that over the next NFL season, it will make 3 billion promotional impressions on men ages 18+ and up during its telecasts (THE DAILY). IT'S MADDENING: When asked about CBS' interest in Fox's John Madden, McManus said "We would certainly have a conversation with John. I think he would prefer to stay with the NFC package or go to Monday night, but we certainly would be interested in talking to him." On whether CBS has interest Marv Albert, McManus said, "That is not in our plans right now" (THE DAILY). McManus said that Jim Nantz, Sean McDonough and Gus Johnson "would be top candidates" for play-by-play jobs (NEWSDAY, 1/14). In N.Y., Steve Serby writes that NBC analyst Phil Simms "is a rising star." Serby: "Now that NBC has been shut out, let the bidding begin for Simms" (N.Y. POST, 1/14). In N.Y., Bob Raissman calls NBC's Simms "a hot commodity." Raissman writes that Cris Collinsworth, Greg Gumbel and Boomer Esiason are also "hot properties" (N.Y. DAILY NEWS, 1/14). McManus: "I like Simms" (USA TODAY, 1/14). In Charlotte, Langston Wertz writes some industry analysts "predict CBS will use women as commentators to help expand the audience beyond the ... male viewer" (CHARLOTTE OBSERVER, 1/14). BIG WINNERS: In L.A., Mike Downey: "Congratulations, CBS. Let's see how those NBC peacocks like Sunday figure skating" (L.A. TIMES, 1/14). In N.Y., Verne Gay writes that there is "little doubt that CBS' gain is far greater than NBC's loss" (NEWSDAY, 1/14). "60 Minutes" Exec Producer Don Hewitt: "Now I can watch football rooting for one team or the other, instead of the clock" (N.Y. DAILY NEWS, 1/14). CBS TV President Les Moonves: "I don't think you can overestimate how devastating the loss of football was to CBS. Both in terms of a promotional platform and as a morale factor" (N.Y. TIMES, 1/14). CBS' David Letterman: "NFL football is moving from NBC to CBS ... who would be stupid enough to do that?" ("Late Show," 1/13). PROFIT MARGIN: McManus: "First and foremost, we are not going to lose money on this deal" (USA TODAY, 1/14). CNBC's Sharon Epperson reported that CBS's O&Os, "often more profitable than the network, will ... be able to increase advertising revenue with pre- and post-game advertising." But Frank Bodenchak of Morgan Stanley Dean Witter said, "At the get-go this could result in a loss of $100 to $200 million for CBS" ("Business Center," 1/13). The Marquee Group's Mike Trager: "My best guess is that CBS will lose somewhere between 100 and 200 million dollars. My best guess is 150 million is probably a practical number, and it could be in excess of that" ("World News Tonight," ABC, 1/13). Tom Wolzein, media analyst at Sanford C. Bernstein & Co.: "For CBS to make money on this deal, it has to deliver profits from its local stations like nobody ever has before" (WALL STREET JOURNAL, 1/14). Analyst Paul Schulman: "I don't think CBS can make money on the deal. ... But what it does for CBS in ancillary benefits is incredible" (NEWSDAY, 1/14). In N.Y., Stuart Elliott examines the impact the deals will have on ad rates under the header, "As Network Fees For N.F.L. Games Soar, Agencies Say Not-So-Fast To Potential Rise In Ad Rates." BBDO's Exec VP Steve Grubbs: "We know they'll have to push the envelope and raise rates, but just as they had a walkaway point in their negotiations with the N.F.L., we have our walkaway point where we say we can't afford to spend that much money" (N.Y. TIMES, 1/14).
