Shares in SportsLine USA fell 7% after "shareholder and
marketing partner" CBS sold 200,000 shares in the company,
according to Jay Sherman of the HOLLYWOOD REPORTER. While
CBS "offered no reason for the sale," sources "familiar with
both companies said little should be concluded from the sale
because CBS has a five-year co-branding deal" with
SportsLine. A CBS spokesperson: "CBS remains excited about
the prospects of this venture." SportsLine was down 2 1/2,
closing at 34 (Jay Sherman, HOLLYWOOD REPORTER, 6/26).
GAMBLING AWAY PROFITS? In the N.Y. OBSERVER, Eric
Moskowitz examines SportsLine's tie to Internet gambling,
and writes that the company "is currently benefitting
indirectly from gambling on the Internet." Vegas Insider
(VI), SportsLine's "sister" Web site, "contributes a
significant share of SportsLine's revenue and plays a key
role in SportsLine's quest for profitability." While VI
doesn't actually have gambling on the site, it does link to
other "offshore gambling sites." Moskowitz reports that
"some Wall Streeters now wonder if SportsLine's reliance on
Vegas Insider" and its connection to gambling "will keep
SportsLine from ever making highly profitable deals" with
the NFL, NBA, MLB or other leagues. A "handful of people
familiar with the situation" said that the company's
connection with VI "helped doom" its recent attempt to win a
contract with the NFL. SportsLine CEO & President Michael
Levy: "Our SportsLine service has nothing to do with our
gambling service. There is a complete separation." But
Moskowitz reports that revenues from VI "are placed right
next to advertising and merchandise" on the company's
balance sheet. SportsLine CFO Kenneth Sanders said that
while VI "is integral to our business plan," it "isn't
really about gambling." Sanders: "We provide statistics and
information to serious sports fans" (N.Y. OBSERVER, 6/29).
