The Canadian Radio-TV and Telecom Commission (CRTC)
approved CTV's C$490M bid for NetStar Friday, but told CTV
that it must sell SportsNet "within the year," according to
William Houston of the Toronto GLOBE & MAIL. The ruling
"stops CTV from controlling both" SportsNet and NetStar's
TSN, and Houston noted that potential buyers "started lining
up ... minutes" after the announcement, and listed CanWest
Global, the CBC, and Fox Sports Net as suitors. As part of
the agreement, the CRTC ruled that CTV "must approve the
final trademark agreement" that changes TSN's name to ESPN
Canada. ESPN owns 32% of TSN, and the CRTC "has concerns
about the amount of control ESPN will hold over the sports
channel, despite its minority interest. According to the
agreement, ESPN can terminate its partnership with CTV,
without cause, after three years. Not only would CTV be
forced to buy out ESPN to the tune of about [C]$200-million,
it would need to rename the channel and effectively start
all over again in branding" (GLOBE & MAIL, 3/25).
REAX: The CP's Jim Morris wrote that "the general
response was that more channels bidding to broadcast games
... is a bonus for both fans and sports organizations."
Blue Jays Senior VP/Finance & Operations Stu Hutcheson: "The
decision is a proper decision, not only from our point of
view but for our fans." But Canucks GM Brian Burke is
worried about "who might buy Sportsnet." Burke: "Just the
fact somebody has the licence to broadcast sporting events
doesn't mean it helps us. They have to be a player big
enough that the licence has value to us" (CP, 3/25). In
Ottawa, Rob Brodie wrote that CTV won't see the CRTC's
ruling as "total victory," as it had "hoped to combine TSN's
national reach with Sportsnet's regional service to build a
sports broadcasting giant." Brodie: "But the addition of
TSN alone should have CTV's bosses grinning from ear to ear.
TSN is hugely profitable and, in so many ways, has set the
standard for sports specialty networks in Canada" (OTTAWA
SUN, 3/25). Also in Ottawa, Philip DeMont cited "industry
insiders" as saying that CTV "is probably happy that it can
keep the more popular TSN" (OTTAWA CITIZEN, 3/25).
SIDE NOTE: The CRTC also ruled that Canada's Headline
Sports is allowed "to carry about" three hours of live
sports programming "a night instead of highlights 24 hours a
day." Zelkovich: "That means that a handful of Blue Jays,
Argos and Raptors games that don't make it on the tube now
could be on Headline Sports next season" (TORONTO STAR,
3/25). The NATIONAL POST's Ian Jack wrote that the
"question for Headline Sports is whether its current owners
can afford to go after marquee contracts." Headline Sports
VP/Marketing David Errington: "We definitely have the money.
We want to do major sports" (NATIONAL POST, 3/25).
