SMT Conference: World Cup, Olympics Dominate Int'l Discussion

Wolff Says Latin America A Big Target For ESPN

The rapidly emerging middle classes in Latin America, China and India represent a major revenue growth opportunity for sports programmers, according to high-level executive panelists Thursday discussing the international market at the '09 SBJ/SBD FSA Sports Media & Technology Conference. The panel -- featuring IOC Managing Dir of TV & Marketing Services Timo Lumme, Fox Cable Networks Exec VP & COO David Sternberg and ESPN Int'l Exec VP & Managing Dir Russell Wolff -- said that the growing middle class is allowing for far more rapid growth of cable and satellite TV penetration than the more geographic-based rollout that occurred in North America. Wolff said, "We're so used to seeing Latin America being in crisis, but the last five years have been incredibly stable, and it represents a big target for us." Added Sternberg, "We've seen tremendous growth in Latin America."

OLYMPIC RIGHTS: Lumme and Wolff used the panel to formally announce a deal in which ESPN gained Olympic rights for the '10 Vancouver and '12 London Games for several South American markets. The pact is the first in which the IOC has directly dealt with ESPN. "This is a small moment of history," Lumme said. However, he declined to say whether that pact was any harbinger of future plans for U.S. rights beyond London. Lumme said in the "fullness of time, we'll figure out as we go forward on the rights," for '14 and '16.

SOUTH AFRICA BOOST: Similar to the economic rise in Latin America and portions of Asia, the execs confidently predicted that next year's FIFA World Cup in South Africa will present a major boon for not only the county, but the entire African continent. "This is one of the big priorities for [ESPN]," Wolff said. "This is a major world event, not just a sporting event, and one that will change the perceptions around the world of South Africa, and change what's happening on the ground there. We see it as a huge breakout event."

Lumme Denies That USOC's Efforts To Launch Olympic Network Hurt Chicago

CHICAGO CONSPIRACIES? Lumme firmly denied any suggestions that the USOC's recent efforts to launch an Olympic-themed TV network, in conflict with the IOC's agenda, led directly to the failure of the Chicago bid for the 2016 Games. "The network wasn't the smoking gun. ... Rio was just the best bid, by far the best bid," Lumme said. "They were the choice. ... At the end of the day, candidates are judged on their merits, and they were the strongest one." On the USOC network, Lumme said, "We need to sit down with them. It's too early to comment. We're in a consultation phase, and we'll take our time with that."

RUGBY POWER: Asked which American property will best export over the next several years to foreign countries, the panel gravitated toward the NBA and NHL, both of which have been active in their overseas marketing efforts. But Wolff said the NFL may be the first property to actually have a foreign-based franchise due to the lesser number of games and reduced travel demands of football. Conversely, asked which foreign sport is most poised for strong U.S. growth, Lumme and Sternberg both responded rugby. "There's a very quickly growing following for the sport, and its similarities to [American] football are not immaterial," Sternberg said.