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Leagues and Governing Bodies

NET GAIN FOR NFL: LEAGUE PROPOSES TO FORM INTERNET NETWORK

          At the NFL meetings in West Palm Beach, FL, team owners
     voted to establish the NFL Internet Network, a two-year deal
     which calls for the teams to operate the NFL's Internet
     business as a single network.  The deal would cover existing
     and future elements of the Internet, such as game
     highlights, game day applications, radio broadcasts,
     advertising, e-commerce, auctions and photos (NFL).
     Commissioner Tagliabue: "The focus now is on developing the
     Internet.  Is this as important as our decision in 1961 to
     pool all television money?  That decision was permanent. 
     This is only for two years.  But the concept is we should
     all act together in our best interest" (WASHINGTON POST,
     3/30).  The WALL STREET JOURNAL INTERACTIVE's David Sweet
     writes that teams previously "sold advertising on their Web
     pages.  Now, the league will also sell a small amount on
     team sites.  Revenue from league sales will be split equally
     among the franchises, while teams will continue to keep ad
     sales they've generated."  NFL Senior VP/New Media Chris
     Russo, on the proposal: "We can pursue strategic
     opportunities as a cohesive unit.  Now we can explore
     relationships that encompass all the league sites as well." 
     Sweet adds that to "boost ad rates" for the league, Internet
     measurement services such as Media Metrix "will no longer
     count club-site traffic individually but as part of the NFL
     Internet Network."  But Russo said that team sites "will
     maintain their editorial independence."  NFL.com will now
     "delete" its own club pages and link directly to all team
     sites. NFL Films will "provide video footage" for club
     sites, but live game video will "still not be permitted
     because of existing" TV contracts (WSJ.COM, 3/30).  The deal
     prevents teams from making Internet marketing deals
     independent of NFL.com (Jarrett Bell, USA TODAY, 3/30).  
          THE VOTE: In Baltimore, Vito Stellino reports that
     owners approved Internet revenue sharing 23-2, with the
     Cowboys and Dolphins voting no, five teams abstaining and
     the Vikings absent.  Ravens Owner Art Modell abstained
     "because he wanted to make sure the provisions weren't in
     conflict with the team's PSINet contract" (Baltimore SUN,
     3/30).  In Ft. Lauderdale, Alex Marvez writes that Dolphins
     Owner Wayne Huizenga voted against the deal because he
     "reportedly was unhappy with how the policy was constructed"
     (Ft. Lauderdale SUN-SENTINEL, 3/30).  In Newark, Paul
     Needell reports that the Ravens, 49ers, Raiders, Rams and
     Seahawks abstained (Newark STAR-LEDGER, 3/30).
          INTERNET TAKES CENTER STAGE: In Boston, Will McDonough
     quotes an AFC team owner: "We've been going at this since
     Sunday and all the talk is about the Internet.  How can we
     maximize the Internet?" (BOSTON GLOBE, 3/30).

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