News Corp. CEO Rupert Murdoch's acquisition of the
Manchester United "marks the opening strike in a global
shootout" for soccer teams, now considered "the latest
corporate takeover targets," according to Robert Frank of
the WALL STREET JOURNAL. Muller Sports Group CEO Roberto
Muller estimates that soccer brings in over $200B a year in
sales, and companies "desperate to expand overseas" may get
involved. Muller: "Murdoch is way ahead of the pack in
spotting this. But companies like Disney and Time Warner
are going to catch up." Frank writes that analysts expect
Murdoch to use the United as "his next global media weapon,"
by broadcasting games over his other channels into foreign
markets (Robert Frank, WALL STREET JOURNAL, 9/10).
WHAT IT MEANS: The FINANCIAL TIMES' Tony Jackson writes
that Murdoch has "strengthened his hand" in regards to
sport's TV rights with the deal. If the present TV package,
where league rights are sold collectively, is still in place
in 2001, BSkyB will own one of the 20 teams negotiating with
the networks and "will thus have inside information." If
negotiations are on a team-by-team basis, BSkyB will "again
be the strongest contender," because they own the team that
"in box-office terms, all the others will want to play"
(FINANCIAL TIMES, 9/10). In L.A., Marjorie Miller reports
the deal helps Murdoch with his "ambitious" plan to form a
new European soccer league and will give him an "inside
track on broadcasting rights to those matches" (L.A. TIMES,
9/10). Turner Sports President Harvey Schiller called the
deal "certainly worth every penny," as the Premier League
teams "have never fully exploited their (TV and marketing)
opportunities." USA TODAY's David Lieberman writes that
sports will be the feature of BSkyB's 200-channel digital
service to begin later this year (USA TODAY, 9/10).
LOOKING TO CALM FEARS: After the deal, BSkyB wrote an
open letter to fans reassuring them that the sale "is not
just another business, it is part of the cultural fabric of
Manchester and the nation" and that United games won't be
available solely on pay-per-view (LONDON TELEGRAPH, 9/10).
