Multiple reports have CBS selling the marketing rights
to the NCAA men's basketball tournament and other college
sports championships to ISL Worldwide (see THE DAILY, 6/9).
BLOOMBERG's Scott Newman reported that CBS has agreed to
sell the marketing rights through 2013 to ISL's U.S. unit
for "about" $1B. The deal "would begin in 2002, and
represents about a six-fold annual increase for marketing
rights to NCAA events," which include "permission to sell"
radio broadcasts, corporate sponsorships and use of NCAA
marks for Final Four promos. Host Communications has been
the "only company that has ever sold" NCAA marketing rights,
and Host President Jim Host said, "We couldn't come to grips
with the amount of money that CBS was asking. It was too
much of a risk to our shareholders based on the revenue we
could generate." Host currently pays $75M for NCAA
marketing rights under a five-year deal that expires in 2002
(BLOOMBERG NEWS, 6/10). The SPORTSBUSINESS JOURNAL's
Bernstein & Brockinton report that ISL is "expected to pick
up the rights" for $800-850M and is "expected to make a
presentation" to the NCAA later this month for final
approval. Host generated $24.7M from its NCAA deal in FY
'99 and $21.2M the year before. Bernstein & Brockinton,
noting that Internet rights are not part of the ISL deal,
write, "Apparently, ISL thinks it can grow those revenues by
threefold, even without Internet rights." Jim Host: "I'm
quite frankly relieved" (SPORTSBUSINESS JOURNAL, 6/12).
