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Morning Buzz

Morning Buzz, November 9, 2004

The Daily Insider
Morning News & Headlines
Tuesday, November 9, 2004
9:00am ET

NFL Gets Flexible Scheduling In New Rights Agreements With Fox And CBS

DC Council Today To Vote On Mayor Anthony Williams’ Ballpark Proposal

Angels’ Possible Name Change Prompts Today's Discussion On Legal Action

NBA VP/Marketing Partnerships Jonathan Press Leaving The League

U.S. Olympic Darling Michael Phelps Arrested For Driving Under Influence

Morning Briefs/In Other News/Laugh Track/TV Monitor/Final Jeopardy!


NFL EXTENDS DEALS WITH FOX, CBS & DIRECTV FOR $11.5B TOTAL

The NFL late yesterday inked six-year extensions, worth $8B total, of its broadcast TV deals with CBS and Fox through 2011. The league also signed a five-year, $3.5B extension of its partnership with DirecTV through 2010, ensuring NFL Sunday Ticket will remain with the satellite broadcaster. The NFL also inked a three-year extension of its carriage agreement with DirecTV for NFL Network. No deals for the Sunday and Monday primetime package were announced (THE DAILY).

News Corp. President & COO Peter Chernin, whose Fox net has reportedly lost money on the current deal: “We expect this package to be profitable” (PHILADELPHIA DAILY NEWS, 11/9).

Viacom co-President & co-COO Les Moonves: “We made money on the last deal and we’re going to make even more on this deal” (THE DAILY).

The L.A. TIMES notes that the $8B coming from CBS and Fox represents a 25% increase over what those networks now pay, while DirecTV will pay 75% more under its new deal. The deals also include some flexible scheduling, as the league “can take four late-season games from each network for a new eight-game cable or satellite package, probably on Thursday and Saturday nights. The league can also take as many as seven late-season Sunday games from Fox and CBS to provide more attractive matchups on ‘Monday Night Football,’ with a two- or three-week notice” (L.A. TIMES, 11/9).

The HOUSTON CHRONICLE notes that Fox will pay $4.3B, an average of $712.5M per year, for NFC games. CBS will pay $3.7B, an average of $622.5M a year (HOUSTON CHRONICLE, 11/9).

The following details the NFL’s TV rights deals since 1987 (THE DAILY):

Network
Years Covered
Avg. Annual Cost
Total Cost
ABC (Monday Night)
1987 - 1989
$147M
$460M
CBS (NFC)
1987 - 1989
$150M
$450M
NBC (AFC)
1987 - 1989
$120M
$360M
ESPN (Sunday Night)
1987 - 1989
$51M
$153M
TOTAL
1987-1989
$474.3M
$1.423B
ABC (Monday Night)
1990 - 1993
$225M
$900M
CBS (NFC)
1990 - 1993
$265M
$1.06B
NBC (AFC)
1990 - 1993
$188M
$752M
ESPN (Sunday Night)
1990 - 1993
$111.25M
$445M
TNT (Sunday Night)
1990 - 1993
$111.25M
$445M
TOTAL
1990-1993
$900.5M
$3.602B
NBC (Super Bowl)
1994
$40M
$40M
ABC (Monday Night)
1994 - 1997
$230M
$920M
FOX (NFC)
1994 - 1997
$395M
$1.58B
NBC (AFC)
1994 - 1997
$217M
$868M
ESPN (Sunday Night)
1994 - 1997
$131M
$524M
TNT (Sunday Night)
1994 - 1997
$124M
$496M
TOTAL
1994-1997
$1.097B
$4.388B
ABC (Monday Night)
1998 - 2005
$550M
$4.40B
FOX (NFC)
1998 - 2005
$550M
$4.40B
CBS (AFC)
1998 - 2005
$500M
$4.00B
ESPN (Sunday Night)
1998 - 2005
$600M
$4.80B
TOTAL
1998-2005
$2.20B
$17.60B

NBA MARKETING DEPARTMENT WILL BE PLAYING MUSICAL CHAIRS

By Terry Lefton, Editor-at-Large, The Sports Business Daily

NBA VP/Marketing Partnerships Jonathan Press is leaving the league at the end of this year. Press, whose wife is expecting the couple’s first child in December, said he’s leaving the NBA after four years to spend more time with his family and because he is “looking for new challenges." Press is expected to continue with the league in a consulting capacity at least though the February 20 All-Star Game in Denver.

With Press’ departure, Mark Tatum moves from VP/Business Development to assume Press’ role as head of corporate sales under Exec VP Heidi Ueberroth.

Peter Farnsworth, who had already been involved in new business pitches, will assume Tatum’s old title. Also moving up the food chain is NBA Senior Dir of Global Marketing Partnerships Emilio Collins, especially intriguing, considering the league’s recent fascination with foreign commerce.

As for the tasks facing the reconfigured sales team: Anheuser-Busch and American Express will be the NBA’s biggest renewals after this season. New sponsorship categories targeted include financial services (a category MLB has mined for five sponsors) and automobiles.


MSG NETWORKS KEEPING DEVILS GAMES THROUGH 2023-24 SEASON

MSG Networks and the Devils have signed a 20-year rights extension, ensuring that approximately 75 Devils games will be seen annually on FSN New York through the 2023-24 season (MSG Networks). Though terms of the deal were not disclosed, the Newark STAR-LEDGER reports that the deal “will give the Devils substantially more than the roughly $8[M] rights fee the team was to receive this season” (Newark STAR-LEDGER, 11/9).


DC COUNCIL PREPARED TO VOTE ON BALLPARK FINANCING PROPOSAL

The WASHINGTON POST reports that the DC Council today will vote on Mayor Anthony Williams’ proposal to build a new ballpark for the Expos along the Anacostia Waterfront. Williams said yesterday that he “believes he has lined up the seven crucial votes … to pass his plan.” Council Chair Linda Cropp acknowledged that she “does not have enough support” for her competing plan to build a ballpark adjacent to RFK Stadium. MLB officials previously told Williams that the league “will not put a team in Washington if the stadium proposed for the Anacostia Waterfront is not approved” (WASHINGTON POST, 11/9).


ANAHEIM CONTEMPLATING LEGAL ACTION IF ANGELS CHANGE NAME

The L.A. TIMES reports that the Anaheim City Council today is “scheduled to discuss possible legal action against the Angels,” one day after City Manager Dave Morgan asked MLB Commissioner Bud Selig to “reconsider his endorsement of the team’s potential name change” to the Los Angeles Angels. The team has already removed “Anaheim” from its uniforms, promotional materials, ads and Web site (L.A. TIMES, 11/9).


WITH COWBOYS COMING, ARLINGTON ASSESSING RELOCATION

The FT. WORTH STAR-TELEGRAM reports that the Arlington City Council today will vote on relocation assistance guidelines that “spell out how the city will compensate homeowners, renters and businesses who are bought out by the city” as Arlington prepares to build a new Cowboys stadium (FT. WORTH STAR-TELEGRAM, 11/9).

The FT. WORTH STAR-TELEGRAM also reports that the city council today will “approve the hiring of Public Financial Management to offer financial advice when the city gets set to sell bonds to pay for its part” of the proposed $650M stadium (FT. WORTH STAR-TELEGRAM, 11/9).


EA SPORTS CUTS VIDEO GAME PRICES BY AS MUCH AS $20

Beginning today, prices for EA Sports’ “Madden NFL 2005,” “NBA Live 2005” and “NHL 2005” will be reduced from $49.95 to $29.95, while “NCAA Football 2005” will now cost $39.95, down from $49.95. The WALL STREET JOURNAL reports that Electronic Arts “faced unexpectedly strong competition this year from direct rivals under the ESPN Videogame line of titles.” The ESPN games retail for $19.95 (WALL STREET JOURNAL, 11/9).


MORNING BRIEFS

Gold Medalist Michael Phelps last week was arrested and charged with driving under the influence of alcohol. Phelps: “I’m 19, but no matter how old you are, you should take responsibility for your actions, which I will do. I’m extremely sorry for the mistake that I made” (Baltimore SUN, 11/9).

Fossil today signed a multiyear licensing agreement with adidas to produce and distribute watches and other timing products, effective January 1, 2006 (Fossil).

U.S. Bankruptcy Judge Elizabeth Perris yesterday signed a plan that will “transfer ownership of the Rose Garden to a consortium of companies that financed the arena’s construction” (Portland OREGONIAN, 11/9).

For the first time, NASCAR’s season-ending Nextel Cup race at Homestead-Miami Speedway – the November 21 Ford 400 – has sold out before race day (MIAMI HERALD, 11/9).

The N.Y. Planning Commission yesterday gave preliminary approval to the city’s blueprint for a “massive overhaul of the far West Side,” including a proposed $1.4B stadium for the Jets. The commission will vote on the plan November 22, followed by the city council’s vote in January (N.Y. POST, 11/9).

Yankees GM Brian Cashman yesterday said that the team’s payroll “likely will rise slightly” from last year’s $194M (MIAMI HERALD, 11/9).

The Tampa Sports Authority yesterday approved an agreement to have the seats at Raymond James Stadium replaced by their manufacturer, Hussey Seating, after they faded from red to pink (ST. PETERSBURG TIMES, 11/9).


THE BACK PAGES

The Morning Buzz offers today’s back page sports covers from some of the nation’s major metropolitan tabloids:

N.Y. Post
N.Y. Daily News
Philadelphia Daily News
Newsday

TODAY’S EVENTS

ESPN will announce a one-year deal with the CIAA to make the conference the first in Division II to have men’s basketball games nationally televised by the net (Raleigh NEWS & OBSERVER, 11/9).

Alan Shawn Feinstein’s eBay auction of the 1919 contract that sent Babe Ruth from the Red Sox to the Yankees closes today. As of presstime, the highest bid was $470,100.

Artist Bart Forbes will unveil the official artwork for the ‘05 Kentucky Derby at an 11:00am ET press conference at Churchill Downs. The painting will be featured on licensed prints, posters, tickets and other merchandise.

Canadian Champ Car World Series driver Patrick Carpentier will announce his intentions to leave the series and drive for Red Bull Racing in the IRL next season (TORONTO SUN, 11/9).


IN OTHER NEWS….

DAILY VARIETY reports that consumers bought 11 million DVD copies of “Shrek 2” over its opening weekend, surpassing $185M in sales (DAILY VARIETY, 11/9).


FINAL JEOPARDY!

Last night’s “Final Jeopardy!” category was “Company Origins.”

“This Fortune 100 company got its name from what it bought from sailors and sold to natural history collectors.”


LAUGH TRACK

THE MONOLOGUES:

CBS’ David Letterman: “The marathon is over, all the runners are finished, and it turns out the Republicans won. … Here’s how cold it was during the marathon in New York City yesterday: the hookers were passing out fleece condoms. Everybody says it was one of our most successful marathons ever: only 12 runners missing. … Friends are now concerned, worried about John Kerry, because today he made one last duck hunting trip to Ohio. Bush says now that he is going to simplify the tax code: only the states that are blue will have to pay. … The Bushes have a new puppy. The President selected a new puppy and the Senate expects rapid confirmation. The new puppy is named Miss Beasley, and Miss Beasley will be replacing Barney who will be moving to the private sector” (“Late Show,” CBS, 11/8).

NBC’s Jay Leno: “A lot of people had a rough week last week, and it was an especially rough week if you were a gay pro-choice stem cell. Today, President Bush thanked those who worked hardest on his re-election: Ralph Nader and Osama Bin Laden. … You got to feel sorry for John Kerry. He came this close to finally getting his own house. … Here’s a brief update on Yasser Arafat: doctors say although he is dead he is expected to make full recovery. … An F-16 fighter jet accidentally strafed an elementary school in New Jersey with 25 rounds of ammunition, and of course since it was New Jersey, the kids immediately returned fire. … Last night CBS had its big ‘Dallas’ reunion show. If you’ve never seen the program it’s about a rich Texas oil family. Didn’t we just have this? It was called the election” (“The Tonight Show,” NBC, 11/8).


LAST NIGHT’S TV MONITOR

Net

Show

Lead

Next Items

ESPN

“Around The Horn”

Steelers

Eagles; Patriots coach Bill Belichick

ESPN

“PTI”

Steelers

Eagles WR Terrell Owens; Patriots-Rams

ESPN

12:00am ET “SportsCenter”

Nuggets-Jazz

Vikings-Colts; Dolphins head coach Dave Wannstedt to resign

FSN

“I, Max”

Steelers

Jets QB Chad Pennington; Cowboys-Bengals

FSN

“BDSSP”

Eagles WR Terrell Owens

Cowboys head coach Bill Parcells; Serena Williams


FINAL JEOPARDY ANSWER

“What is Shell Oil?”


If you have any questions, comments or suggestions, please let us know at:
dailyinsider@sportsbusinessdaily.com

The Morning Buzz provides an early update of the news and headlines each Monday through Friday at approximately 9:00am ET. If you would like to sign up for an e-mail alert to the Morning Buzz, go to My Account and personalize your e-mail alert options.

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