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OUT OF THE WEST: ESPN SCRAPS RSN AS FOX GRABS TEAM RIGHTS

          Just three months before its intended launch, Disney's
     ESPN West "mission has been scrubbed," according to Tom
     Hoffarth of the L.A. DAILY NEWS.  Yesterday, Fox announced a
     10-year agreement to continue its regional coverage of the
     Disney-owned Angels and Mighty Ducks, the two teams "that
     were to be the foundation" of the new ESPN West RSN, which
     had been scheduled to launch in October.  Hoffarth reports
     that ESPN West "had trouble making any headway" in terms of
     distribution with local cable operators, a problem "many
     industry analysts anticipated."  To date, only DirecTV and
     EchoStar had committed to the new RSN, and although system
     space in Orange County was what ESPN West had "focused on
     most," channel space in that region "has recently been
     given, in some cases, to Fox Sports West 2."  ESPN Senior
     VP/Media Relations Chris LaPlaca said that channel-capacity
     issues "were a large part" of the decision that ESPN West
     could not reach its October launch goal.  LaPlaca "did not
     rule out" a future launch of ESPN West, and added that the
     net "continues to look into regional channels in other parts
     of the country."  Hoffarth writes that although the Angels
     and Ducks had filed suit to void their contracts with Fox,
     both teams "are content with this new Fox alignment."  Under
     terms of the extended deal, the Ducks will appear 40 times a
     season on Fox Sports West 2, while Fox Sports West will air
     50 Angels games a season (L.A. DAILY NEWS, 7/14).
          SOUND BITES: DAILY VARIETY's John Dempsey calls the
     development a "stunning surprise" and a "bitter defeat" for
     Disney and ESPN, adding that the move allows Fox to
     "reconfirm its dominance of the regional sports business." 
     One source says FSN was willing to "pay a near record price
     -- one estimate puts the figure at a total of $120[M] for
     the two teams over the ten-year period -- because the deal
     eliminates competition" in Southern CA.  And, although ESPN
     "won't rule out" other RSNs, Dempsey writes that "most
     observers" say the net "has created so much bad will" with
     its "escalating licensing fees" that cable operators "in all
     regions of the country would balk at handing over another
     channel" (DAILY VARIETY, 7/14).  In L.A., Larry Stewart
     calls it a "major victory" for Fox in the "battle for sports
     supremacy" in Southern CA (L.A. TIMES, 7/14).  The HOLLYWOOD
     REPORTER's Scott Hettrick writes that the Edison Field
     banner trumpeting ESPN West's October premiere "has already
     been removed" (HOLLYWOOD REPORTER, 7/14).  

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