MVP.com said that its $5M "missed payment" to
SportsLine.com is "not a reflection of slowing business," as
the company claims that "sales are brisk and that it expects
a big end-of-year selling period," according to Eric Young
of TheStandard.com. MVP.com Dir of Corporate Communications
Paula Davis: "We're anticipating a successful holiday
season. All the indicators point toward a healthy one."
Davis added that the company "aims to be cash flow positive
by the end of 2001" (TheStandard.com, 10/19). But
InternetNews.com's Thor Olavsrud wrote that while MVP.com
said that the missed payment "does not reflect a downturn in
its business," SportsLine.com shareholders "appear to be
getting nervous" about their e-commerce partnership with the
company. But SportsLine.com CEO Mike Levy said, "To date,
our relationship with MVP has been highly accretive to
Sportsline's shareholders. So far this year, MVP has made
$13 million in cash payments to Sportsline. By contrast,
had we continued to operate our e-commerce business
independently, we estimate we would have lost in the
neighborhood of $10 to $15 million this year"
(InternetNews.com, 10/20). USA TODAY's Chris Jenkins cites
Jupiter Research analyst Christopher Todd as saying MVP.com
is "in a lot of trouble. They are suffering from internal
hemorrhaging, and I think they need emergency surgery." But
Davis added that the "site is being unfairly lumped in with
others that are struggling," as MVP.com "had its biggest
month in September and its biggest day last Thursday."
Davis also said that the site "already has received
additional commitments from at least two investment firms"
for financing (USA TODAY, 10/24).
