SBJ/November 28-December 4, 2011/Media

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  • Executives predict smooth ESPN transition

    At first glance, the differences between George Bodenheimer and John Skipper, the outgoing and incoming ESPN presidents, couldn’t be starker.

    Bodenheimer is a measured, buttoned-down executive from Connecticut. Skipper gives off a good-ol’-boy persona from North Carolina.

    Bodenheimer has a private personality and seems more comfortable in small groups. Skipper is much more outgoing and revels in a crowd.

    John Skipper will try to maintain as much continuity as possible at ESPN, sources say.
    Photo by: JOHN ATASHIAN / ESPN
    These differences are clearly apparent at ESPN’s upfront advertising presentation in New York every year. As soon as the event ends, Bodenheimer is in the lobby, shaking hands with advertisers as he heads toward the exit. Skipper? He can be found standing by the stage amid a gaggle of reporters, opining on all aspects of the sports business.

    Despite these differences, executives from inside and outside ESPN last week said they did not expect the company to change its approach to sports business.

    The reason? Bodenheimer and Skipper have many more similarities than differences.

    “The best part about this move is that one of the great guys in the business, George Bodenheimer, is transitioning to another one of the great guys in the business, John Skipper,” said Tim Brosnan, MLB’s executive vice president of business, who has forged deep relationships with both executives during his 20-year MLB career.

    That sentiment was repeated throughout sports last week, as executives discussed the unexpected move that made Skipper ESPN’s sixth president since its 1979 launch.

    ESPN under Bodenheimer

    Since 1998, when George Bodenheimer took over as president, ESPN has grown to:

    100 million households for ESPN and ESPN2, up from 75 million and 62 million, respectively

    Eight domestic television networks, up from four

    Five HD services, from none

    One 3-D network, from none

    48 international television networks, from 20

    13 international “SportsCenter” editions, from none

    18 websites, from one

    750 ESPN Radio affiliates nationwide, from 620

    7,000 employees worldwide, from 1,900

    Bristol, Conn., campus increased to 116 acres (from 39), 18 buildings (from eight) and 1.3 million square feet (from 260,000).

    State-of-the-art production facility in Los Angeles opened in 2009, and construction has begun on a second digital center in Bristol that is set to open in 2014.

    ESPN/ABC rights

    Current major deals signed under Bodenheimer

    NFL: $8.8 billion through 2013

    NBA: $7.4 billion, shared with TNT, through 2016

    MLB: $2.37 billion through 2013

    Southeastern Conference: $2.25 billion through 2023

    NASCAR: $2.16 billion through 2014

    ACC: $1.86 billion through 2023

    Big Ten: $900 million to $1 billion through 2017

    Wimbledon: $480 million through 2023

    Bowl Championship Series: $495 million through 2014

    Rose Bowl: $300 million through 2014

    Longhorn Network: $300 million through 2031

    MLS: $64 million through 2014
    Several executives said they were wary of praising the well-liked Skipper because they didn’t want their comments to be misinterpreted as any sort of swipe at Bodenheimer, who has earned universal respect for his leadership.

    The news that Bodenheimer, who has been with ESPN for nearly 31 years, was stepping away from day-to-day operations came as a shock to many in the sports business, who didn’t expect the move to happen so quickly.

    But in March, Bodenheimer told his boss, Disney President and CEO Bob Iger, that he would not be seeking to renew his contract, which ends Dec. 31. Bodenheimer told Iger that it was time for him to move on.

    “I felt it in my gut and my heart that the time had come,” Bodenheimer said. “You just know it when you get there.”
    This summer, after talking to Bodenheimer, one industry executive remarked that the ESPN executive sounded more serious as he talked about his next plans.

    “He really sounded like he wanted to move on to the next phase of his life,” the source said.

    Soon after telling Iger of his plans in March, the two put together a search of internal candidates that targeted ESPN’s top executives. It’s not known how many executives interviewed to replace Bodenheimer, but everyone was from ESPN.

    “Our search was internal,” Bodenheimer said.

    It didn’t surprise former ESPN President Steve Bornstein, now the NFL’s executive vice president of media, that Bodenheimer looked from within ESPN to find his replacement.

    “George has positioned ESPN extremely well,” Bornstein said. “Knowing John as well as I do, I am confident he will continue to innovate and grow the company.”

    Executives both inside and outside of ESPN expect to see few changes in ESPN’s management ranks.

    An ESPN source said that Skipper believes ESPN has a good team of executives in place and is going to try to maintain as much continuity as possible. ESPN sources also say Skipper has no timetable for finding his replacement overseeing the content division. John Wildhack, ESPN’s executive vice president of programming acquisitions and strategy, and Norby Williamson, executive vice president of production, are logical replacements, though one ESPN source said Skipper is known to be his own man and could surprise people with his pick. Skipper, in deference to Bodenheimer, declined interview requests last week.

    While industry executives seemed genuinely remorseful that Bodenheimer was leaving, they were relieved that Skipper was replacing him.

    “It gives us great comfort to know that ESPN will continue to have such a strong advocate for the NFL in place,” said NFL Media COO Brian Rolapp. “Above all, John’s a good and honest person.”

    NBA Deputy Commissioner Adam Silver sounded an identical theme.

    “It’s a testament to George that he has lined up and helped mentor a person as talented as John,” he said.

    Executives also were quick to cite Skipper’s sports interests as an example of serving as an advocate for their products. Silver had his tongue firmly in cheek as he said, “The NBA couldn’t have asked for a better partner than John, who swears that basketball is his favorite sport.”

    MLS Commissioner Don Garber noted Skipper’s well-known reputation as an avid soccer follower, as well, and hopes Skipper’s new role will be a boon for the sport.

    “John is a dyed-in-the-wool soccer guy,” Garber said. “I don’t know too many TV executives who are so closely aligned to a particular sport.”

    Skipper’s business acumen also earned him praise. Pac-12 Commissioner Larry Scott cited his negotiations with Skipper for the Pac-12’s media rights this summer and described him as a strategic, creative dealmaker. “He does not need to win every point in a negotiation,” Scott said. “He believes in give-and-take and win-win solutions.”

    But the overall sentiment echoed throughout conversations last week is that ESPN will continue to be led by capable executives.

    “I’m a big fan of both George and John, not only for what they’ve built but for the way they conduct their business with class and intelligence,” said NHL Chief Operating Officer John Collins. “ESPN will continue to be in very capable, talented hands.”

    Staff writer Michael Smith contributed to this report.

    Media moves and movers

    A number of personnel changes have taken place in sports media this year. The following are some of the more high-profile moves:

    David Berson

    Former position: ESPN, EVP, program planning and strategy
    New position: CBS, executive vice president; CBS College Sports Network, president    

    George Bodenheimer

    Former positions: ESPN/ABC Sports, president; Disney Media Networks, co-chairman
    New position: ESPN/ABC Sports, executive chairman (effective Jan. 1)    

    Jamie Davis

    Former position: Versus, president
    New position: Not available
    Note: Davis left in February after a 2 1/2-year stint and as NBC Sports was restructuring.

    Dick Ebersol

    Former position: NBC Sports, chairman
    New position: NBC Sports, senior adviser
    Note: Ebersol resigned in May but recently returned to the sports division as a senior adviser to his successor, Mark Lazarus, on NBC’s NFL and London Olympics coverage.

    Ross Greenburg

    Former position: HBO Sports, president
    New position: NBC Sports/NHL; production assignments

    Ken Hershman

    Former position: Showtime Sports, EVP and general manager    
    New position: HBO Sports, president (effective Jan. 9)

    Mark Lazarus

    Former company: CSE
    New position: NBC Sports, chairman
    Note: Lazarus joined NBC Sports under Ebersol but was named NBC Sports chairman after Ebersol’s resignation.

    Jon Litner

    Former position: Versus and Comcast SportsNet, president
    New position: NBC Sports Group, president

    Sean McManus

    Former position: CBS, president, news and sports divisions
    New position: CBS Sports, chairman
    Note: CBS in February announced McManus would step down as president of the news division, a post he had held since 2005, to focus exclusively on sports.

    Ken Schanzer

    Former position: NBC Sports, president
    New position: None
    Note: Retired in May.

    Eric Shanks

    Former company: DirecTV
    New position: Fox Sports Media Group, co-president and co-CEO

    Tony Vinciquerra

    Former position: Fox Networks Group, chairman and CEO
    New position: Not available

    — Compiled by David Broughton, SportsBusiness Journal

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  • MSG Net in carriage talks with TWC

    MSG Network’s carriage deal with Time Warner Cable expires at the end of this year, not ideal timing as the Knicks’ regional sports network is negotiating a deal in the middle of an NBA lockout that is threatening the entire basketball season.

    But sources said that despite that possible void in programming, the two sides have had productive talks so far and have traded proposals.

    Sports media veterans are keeping an eye on these talks, which will mark Time Warner Cable’s first RSN renewal since it jumped into the NBA rights game in a big way earlier this year by picking up the Lakers’ local rights. Published reports have said the deal averages out to $200 million over 25 years.

    Time Warner Cable has had notable disputes with sports channels, like NFL Network and Tennis Channel, mostly over the cost and placement of such services. But now that it is a player in local NBA rights, it will be interesting to see how Time Warner Cable handles negotiations for the local rights holder of the Knicks, which is as dominant a basketball brand in New York as the Lakers are in Los Angeles.

    Complicating matters a bit is the fact that the Mets’ RSN, SportsNet New York, will see its carriage deal with Cablevision end early next year, just before baseball season starts.

    Time Warner Cable owns close to a 25 percent stake in SNY. But Comcast, which holds an 8 percent stake in the RSN, is responsible for its affiliate sales.

    Combined, distributors pay less for MSG Network and MSG Plus ($4.91 per subscriber per month) than they do for a combined rate of New York’s other two regional sports networks, YES Network and SportsNet New York ($5.54), according to figures from SNL Kagan.

    In 2012, distributors are scheduled to pay $2.63 per subscriber per month for MSG and $2.28 for MSG Plus. SNL Financial has YES Network at $2.99 and SportsNet New York at $2.55.

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