The upcoming negotiations for the NFL.com production
contract are examined by Jay Sherman of the HOLLYWOOD
REPORTER. The deal, which is "up for grabs in a few weeks,
is said to be worth" $2-$10M for "as many as" three years.
Sherman writes that the NFL's "handling of the deal ...
appears to signal a significant shift in how online
contracts are negotiated. Where the league previously hired
an online outfit to develop its Web site, the new pact
resembles a television contract, with online operators vying
to pay for Web rights." Disney's Starwave, News Corp.'s Fox
Sports Online and SportsLine USA are the main suitors, and
Sherman adds that "any deal with one competitor is likely to
chafe the two outfits that do not win." As part of the
recent TV deal, Fox, ABC and CBS (SportsLine minority
partner) will "be required to promote" the NFL site, whose
traffic "will benefit only the contract holder." Jupiter
Communications analyst Patrick Keane: "It is definitely a
strange-bedfellows kind of relationship." While some online
experts feel that incumbent Starwave "may have the inside
track to the new deal." Others feel that Fox or CBS "will
receive strong consideration" due to the "huge sums" they
are paying for TV rights (HOLLYWOOD REPORTER, 2/26).
