Just three months before its intended launch, Disney's
ESPN West "mission has been scrubbed," according to Tom
Hoffarth of the L.A. DAILY NEWS. Yesterday, Fox announced a
10-year agreement to continue its regional coverage of the
Disney-owned Angels and Mighty Ducks, the two teams "that
were to be the foundation" of the new ESPN West RSN, which
had been scheduled to launch in October. Hoffarth reports
that ESPN West "had trouble making any headway" in terms of
distribution with local cable operators, a problem "many
industry analysts anticipated." To date, only DirecTV and
EchoStar had committed to the new RSN, and although system
space in Orange County was what ESPN West had "focused on
most," channel space in that region "has recently been
given, in some cases, to Fox Sports West 2." ESPN Senior
VP/Media Relations Chris LaPlaca said that channel-capacity
issues "were a large part" of the decision that ESPN West
could not reach its October launch goal. LaPlaca "did not
rule out" a future launch of ESPN West, and added that the
net "continues to look into regional channels in other parts
of the country." Hoffarth writes that although the Angels
and Ducks had filed suit to void their contracts with Fox,
both teams "are content with this new Fox alignment." Under
terms of the extended deal, the Ducks will appear 40 times a
season on Fox Sports West 2, while Fox Sports West will air
50 Angels games a season (L.A. DAILY NEWS, 7/14).
SOUND BITES: DAILY VARIETY's John Dempsey calls the
development a "stunning surprise" and a "bitter defeat" for
Disney and ESPN, adding that the move allows Fox to
"reconfirm its dominance of the regional sports business."
One source says FSN was willing to "pay a near record price
-- one estimate puts the figure at a total of $120[M] for
the two teams over the ten-year period -- because the deal
eliminates competition" in Southern CA. And, although ESPN
"won't rule out" other RSNs, Dempsey writes that "most
observers" say the net "has created so much bad will" with
its "escalating licensing fees" that cable operators "in all
regions of the country would balk at handing over another
channel" (DAILY VARIETY, 7/14). In L.A., Larry Stewart
calls it a "major victory" for Fox in the "battle for sports
supremacy" in Southern CA (L.A. TIMES, 7/14). The HOLLYWOOD
REPORTER's Scott Hettrick writes that the Edison Field
banner trumpeting ESPN West's October premiere "has already
been removed" (HOLLYWOOD REPORTER, 7/14).
