The NBA, in an "effort to reap more revenue from its
expanding" NBAE unit, said that it plans to "keep control"
of its Web site after its contract with ESPN.com expires in
August, according to Scott Soshnick of BLOOMBERG NEWS.
ESPN.com has produced NBA.com since '95, when it paid
"around" $2M for the rights. The league and ESPN parent
company Disney "share revenue from the site." NBA
VP/Internet Services Brenda Spoonemore said that following
the launch of NBA.com TV, it's "only logical that the league
also would control its Web site, which is becoming an
integral part of [NBAE]." Spoonemore: "We really needed to
bring it in house and tie the Internet closer to [NBAE].
There's no sense in re-inventing the wheel as these mediums
get closer." Jupiter Communications Senior Internet Analyst
Patrick Keane called the move "incredibly wise" and added,
"The Internet has sports leagues acting like media
companies. Ultimately, they're going to compete against the
likes of ESPN." But Keane added that "potential problems"
with the move include the league having to "hire a sales
force that understands the Internet, and then sell" ads.
Also, it "might be difficult for the NBA to lure the best
and brightest technical people without offering them equity"
(BLOOMBERG NEWS, 5/11).
HEY, WAIT A MINUTE: But NBA VP/Internet Services Brenda
Spoonemore told THE DAILY this morning that the league's
agreement with ESPN.com is multi-faceted and that non-
production aspects of the deal are still being negotiated.
Spoonemore: "We are taking production of NBA.com in house,
but that is only one aspect of our existing multi-part deal
with ESPN. ... We have ongoing discussions with them about
renewing our relationship" (THE DAILY).
