NBC and the WWF announced a strategic partnership
yesterday to jointly own and run the XFL, the new spring pro
football league that will begin play on February 3, 2001.
The agreement calls for each party to own 50% of the league
and its eight teams. NBC will broadcast regional and
national XFL games on Saturday nights in primetime from
February through April. NBC will also carry the XFL
Championship game, the first of which will be played on
April 21, 2001 (NBC). The WALL STREET JOURNAL's Joe Flint
writes that the deal calls for NBC to buy a $30M stake in
WWF's parent company, WWF Entertainment (WWFE). NBC will
buy 2.3 million shares of newly issued Class A WWFE common
stock at $13 a share, representing about 3% of the total
number of WWFE shares outstanding (WALL STREET JOURNAL,
3/30). Both the N.Y. DAILY NEWS' Richard Huff and the N.Y.
POST's Richard Wilner estimate NBC's total investment at
$80M (3/30). CNBC's Jim Paymar reported that shares of WWFE
were up 1/16 to close at 17 1/2 yesterday, while GE shares
were up 7 1/2 to close at 163 1/2 ("MarketWrap," 3/29).
EMPHASIZING TEAMWORK: NBC Sports Chair Dick Ebersol
called the XFL deal "incredibly important" to NBC because
"we're a partner, not a rights-holder." Ebersol: "This is
not a standoffish investment. We're partners -- heart and
soul -- in editorial input and production" (DAILY VARIETY,
3/30). In N.Y., Richard Wilner writes that in announcing
the deal yesterday, Ebersol was "nearly giddy with joy"
(N.Y. POST, 3/30). Ebersol: "A network becoming involved in
one of the mainstream American sports as a partner, and not
as a rights holder. This is incredibly important to us."
WWF Chair Vince McMahon, on joining with NBC: "On the one
hand, you have the brand building technique of the [WWF] and
all of its marketing power, and on the other hand, you've
got the pre-eminent leader and the integrity of the network
of the Olympics and all those individuals behind that, in
terms of NBC Sports, as well as entertainment. You've got a
real juggernaut" ("MarketWrap," CNBC, 3/29).
CONSULTING THE PLAYBOOKS: Ebersol said network execs
"fully expect" to be in the black by the "beginning" of the
league's third season. Ebersol: "It is an economic model
that works fantastic for both parties." Ebersol: "In a
head-to-head comparison in young males 12-24, against
'Monday Night Football' over the entirety of the 17 weeks of
the 1999 regular season, the WWF had a 47% advantage in
young males from 9-11 (p.m.), the two hours that they are in
direct live competition. That is extraordinary" (NBC).
Ebersol, on criticism that WWF programming is at times
excessive and violent: "I have not seen anything I would
classify as vulgar" (WALL STREET JOURNAL, 3/30). Ebersol:
"We can't be out there doing traditional comedies and
dramas. We have to do other things to stay in the public
awareness. This is not your mother's football league"
(HOUSTON CHRONICLE, 3/30). Ebersol said NBC "brings a
modicum of a firewall" to the XFL: "If you're in the
business of attracting a young male audience ... with that
edge being located on NBC, it's not quite as far out as it
would be on cablecasts. ... The WWF is at least 60-40 soap
opera to sports. Here, you've got to feel that in a three-
hour time period, we're 85-percent playing football and 15-
percent having a good time around the edges." Ebersol added
that NBC has "no plans to carry WWF events" (NEWSDAY, 3/30).
Ebersol said Saturday night "is a night that's ripe for
taking. ... The most elusive audience in television today
... are young males. And we believe strongly, and I believe
even more strongly than anybody else, that in ... Vince
McMahon, we're getting the best marketer and promoter to
that audience" ("MarketWrap," CNNfn, 3/29).
RATINGS GAME: Both NBC execs and McMahon say that the
ratings for XFL games "won't have to be huge for NBC to do
better than it now fares" on Saturday nights. The WALL
STREET JOURNAL's Flint notes that NBC currently airs three
dramas on Saturday, which average "only" 8.5 million
viewers. Flint: "Since the typical drama can cost more than
$1 million an episode and a season consists of 22 episodes,
the investment in the XFL is actually cheaper for the
network" (WALL ST JOURNAL, 3/30). Ebersol said a 4.5 rating
for games is a "conservative" projection (NEWSDAY, 3/30).
THE PLAY: In Chicago, Ed Sherman writes that McMahon
and Ebersol "promised a product with a high entertainment
element: hype, glitz and fireworks. But unlike McMahon's
other enterprise, the competition will be 100 percent real."
Ebersol: "There will be a large dollop of entertainment. It
should leave room for some interesting sideline reporters"
(CHICAGO TRIBUNE, 3/30). Ebersol told CNBC that the XFL
"will be real football, though many rules will be changed to
speed up the game and make it more exciting" (CNBC, 3/29).
In K.C., Randy Covitz writes officials "did not discuss
player salaries, other than to say the league will offer
better pay than the [AFL] and NFL Europe." Ebersol said
players on the four teams that win each week will receive
bonuses in addition to their salaries (K.C. STAR, 3/30).
INFRASTRUCTURE: The HOLLYWOOD REPORTER's Michele Greppi
cites WWF President Basil DeVito as saying that "during the
next couple of months, stadium deals in the eight XFL
cities, which include New York and Los Angeles, are expected
to be announced as are deals with what DeVito describes as
'additional TV partners' who will carry other weekend games"
(HOLLYWOOD REPORTER, 3/30). In Orlando, Jim Abbott writes
that the XFL "is expected to sign an agreement" to use the
Florida Citrus Bowl for a team in Orlando. Orlando
Centroplex Dir Bill Becker, on the XFL/NBC deal: "They're
for real. It's good news for us. We're definitely going
ahead with this. We have a contract with them" (ORLANDO
SENTINEL, 3/30). In Chicago, Ed Sherman notes that Chicago
gaining an XFL franchise "could be a possibility, although
it seems unlikely Soldier Field will be playing host to
frigid XFL games in February" (CHICAGO TRIBUNE, 3/30).
SHOTS AT NFL: In DC, Leonard Shapiro writes that both
Ebersol and McMahon "took swipes" at the NFL yesterday.
McMahon: "Players will not be felons. No one with a record
will be in this league." Ebersol: "Nobody will ever say a
bunch of guys can't celebrate or have a good time. ... It
will stress individuality. There will be no meetings of a
competition committee to remove celebrations of more than
one player." NFL Commissioner Paul Tagliabue, when asked
about the XFL/NBC deal at yesterday's NFL owners meetings
said, "I've been so busy on our agenda, I haven't had a
chance to think about it. Like everything else, the
marketplace will decide whether it can succeed" (WASHINGTON
POST, 3/30). More Tagliabue: "Does that give them legs?
Who knows? ... It depends a lot on the quality of the
product. ... If it doesn't get a good rating, it doesn't
survive on network television" (CHICAGO SUN-TIMES, 3/30).
But CNN/SI's Peter King reported from FL that the deal
"stunned NFL owners." King: "As one owner told me, 'I'm
shocked. I didn't think that league would have any legs.
But now, who knows?'" ("Sports Tonight," CNN/SI, 3/29).
