As reported yesterday, TCI's Liberty Media announced a
$15M investment in Ascent Entertainment's Pepsi Center and an
exclusive seven-year deal for Fox Sports Rocky Mountain (FSR)
to carry the Avalanche and Nuggets. In Denver, Rebecca
Cantwell reports that Liberty spokesperson Vivian Carr said
Fox will pay Ascent about $100M over the life of the deal and
that Fox will take over responsibility for 40 cable games a
year -- which it has under current contracts -- and
production and broadcast of all 65 regular-season games and
available playoff games until the 2003-04 season. Ascent,
which had produced and sold advertising for noncable games,
will turn that over to Fox in the new deal. Fox Sports Net
Senior VP Bob Thompson: "This is really a change in
philosophy with Ascent over how these deals work." Fox "will
probably negotiate for 20 to 25 games to be shown on local
stations for each team." Thompson: "We'll negotiate with
everyone in town -- whoever is interested" (ROCKY MOUNTAIN
NEWS, 8/14). Some of the broadcasts "are likely to be on
pay-per-view" (Ann Imse, ROCKY MOUNTAIN NEWS, 8/14).
INFLATED RIGHTS? In Denver, Mike Monroe writes that the
$100M price tag "nearly guarantees that Fox won't be able to
recover the cost of acquiring the rights." One sports
broadcasting analyst said the deal makes sense "only when
viewed as part of ... Rupert Murdoch's global strategy."
Monroe notes that the $15M Liberty paid is for "roughly" six
percent of the Pepsi Center (DENVER POST, 8/14). Denver-
based financial analyst William Smith, on the deals: "It just
changes the perception of Ascent. It puts them on a level
playing field with the major markets" (DENVER POST, 8/14).
COINCIDENCE? In Denver, Rebecca Cantwell reports that
Liberty's $15M arena investment "matches exactly" the signing
bonus for the Avs' Joe Sakic, who will remain with the team
after Ascent matched the $21M offer from the Rangers. TCI
President Leo Hindery, asked if his company is paying the
signing bonus, said that "he was investing in the arena and
doesn't even know Sakic." Ascent CEO Charlie Lyons said that
it was "sheer coincidence" the bonus matched TCI's investment
(ROCKY MOUNTAIN NEWS, 8/14). FSN's Thompson, on the timing
of the deal: "It had a lot more to do with the fact the
(Avalanche) season begins in about a month. We've been
negotiating this deal since January" (DENVER POST, 8/14).
CONSPIRACY THEORY: In N.Y., noting that Fox and Liberty
acquired 40% of Cablevision's 75% stake in Rainbow Sports,
which owns six RSNs and MSG, Richard Sandomir calls the
Ascent deals "a tale of intermingling, some might say,
conflicting interests. ... Short of Oliver Stone penning this
script, one can conclude that Fox and Liberty were just
looking out for No. 1 (and No. 1). Their joint priority is
to build Fox Sports Net into a competitor to ESPN. For them,
the Rangers were not a priority; their piece of the Garden's
assets -- about 30 percent -- confers no control" (N.Y.
TIMES, 8/14). Also in N.Y., Bob Raissman writes that
Fox/Liberty's FSR "is still in the growing stages. They had
to build some value into that asset" (N.Y. DAILY NEWS, 8/14).
