NHL and Versus Each Can Opt Out of Deal

Both the NHL and Versus have options to opt out of their current rights deal, Multichannel News is reporting. Versus has already exercised an option to extend their deal through the upcoming 2007-08 season. They still have an option to extend the deal three additional years.

The NHL can also opt out of the deal at the end of this season if Versus does not meet certain subscriber benchmarks. It is not known exactly what these benchmarks are. However, Versus has increased its subscribers from 63 million in 2005, when it carried the NHL for the first time, to its current 72 million-subscriber mark.

If either party opts out of the contract, or if NBC decides not to renew after the 07-08 season, that would open the door for the NHL to return to ESPN. NBC says it is making money on their NHL contract, but the NHL has approached ESPN about securing NBC’s package. Another possibility is Versus renegotiating their deal and allowing some games to move to ESPN. The attractiveness of a renegotiation for Versus would be a lower rights fee, and cross-promotional exposure on ESPN.

from Thomas Umstead of Multichannel News

Versus can ice its National Hockey League deal after the upcoming season, a move that could allow ESPN to skate back into the pucks sport.

The Comcast-owned service has the right to end its NHL deal after the 2007-08 campaign, according to league deputy commissioner Bill Daly, who also said the hockey circuit can pull out of the deal based on whether Versus reaches certain distribution thresholds.

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NHL and ESPN Talking

Street and Smith's Sports Business Journal is reporting that the NHL and ESPN are having talks about bringing the league back to the World Wide Leader in Sports. The league may be back on ESPN, ESPN2, and ABC as soon as the 2008-09 season.

Sources also say the league is negotiating its planned NHL Network with cable and satellite operators. The NHL is taking a page from MLB by tying carriage of its planned channel with the renewal of Center Ice. The U.S. channel will have a look and feel similar to the Canadian version, and will have 50 live games in 2007-08. Most of the content will be identical to what appears in Canada, although repackaged with some U.S.-based programming.

The NHL and ESPN are in discussions about bringing the league’s games back to ESPN2 as soon as the 2008-09 season.

Multiple sources described the conversations as preliminary. The two started talking the week of July 16 when the NHL approached ESPN about NBC’s nine-game regular-season schedule, plus the playoffs. NBC holds the rights to air the coming season as part of a revenue-sharing agreement, and the network holds a one-year option for the 2008-09 season.

It’s not certain that NBC would exercise that option, given the sport’s tepid ratings on the network. Regular-season ratings on NBC averaged a 0.9 during the 2006-07 season and a 1.0 during the 2007-08 season over nine telecasts.

The key to this whole scenario is Versus, which holds cable exclusivity to all of the league’s games through 2011 and is paying the league a rights fee in excess of $70 million annually. Sources close to the Comcast-owned network, however, indicated that Versus would be willing to waive that clause, but only if it gets something in return — either a lower rights fee, a stronger schedule or a deal extension.

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NFL Network Cuts Comcast Deal

In big blow to the NFL Network, their new deal with Comcast will see the fledgling network carried on a little-subscribed-to digital tier. After the NFL granted their own network a package of 8 regular season games, they had hoped to be added to basic cable. It could be worse though. They could be on Versus.

from Braodcasting & Cable

The three-year-old NFL Network has quietly cut a deal for this season with Comcast Corp., the largest U.S. cable operator, to carry its controversial package of eight live football games on terms far weaker than the league is seeking.

Meanwhile, the NFL Network will go dark on Time Warner Cable systems recently acquired from Adelphia Communications in a bankruptcy sale.The Adelphia dispute is part of a larger duel in which the No. 2 cable operator is resisting paying the NFL network's high license fee and carriage demands. Time Warner has said the NFL is looking for a 250% increase in those fees.

When the NFL Network’s new eight-game, Thursday-Saturday package kicks off on Thanksgiving, Comcast will air the games on a digital tier available to fewer than one third of its subscribers. The league has been seeking carriage on basic cable, which would be available to nearly all of the operator's 23.3 million subscribers.

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Cablevision sells regional sports holdings to Comcast

from Daniel Wagner at Newsday

Cablevision has executed a $581-million deal that will give Comcast Corp. full ownership of Cablevision's remaining regional sports holdings outside of the New York area, the company announced Tuesday.

Under the agreement, Rainbow Media Holdings Llc, a subsidiary of Bethpage-based Cablevision Systems Corp., will transfer to Comcast a 60-percent stake in the corporate parent of the FSN Bay Area regional sports channel and a 50-percent interest in the owner of the FSN New England channel.

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Comcast has just purchased an ownership stake in the cable stations that broadcast the Boston Celtics, San Francisco Giants, Oakland A's, San Jose Sharks, and Golden State Warriors. One benefit to Comcast is that the stations provide excellent marketing opportunities, as cable companies face increasing competition from telephone and satellite providers. However, another potential benefit may be that these stations can provide Comcast with both content and on-air talent for their Versus cable sports network. Judging from Versus' Nielsen ratings, it can use all the help it can get.

Is UFC a Monopoly?

from Lotfi Sariahmed of 411mania.com

With UFC 73 just a few days away, I've noticed a lot of talk regarding one particular issue that has a lot of MMA fans shouting from their rooftops. Now mind you for MMA fans, myself included, that usually doesn't take much. But in this case there's an interesting debate. There's no doubt that UFC 73 is a loaded fight card with even a few fights on the prelims that fans want to see. The next few UFC PPV cards look promising as well with fights like Georges St. Pierre v. Josh Koscheck, Quinton Jackson v. Dan Henderson, a long awaited welterweight title fight and the debut of Mauricio "Shogun" Rua. But despite all the great matches coming up, there's one thing about these cards that have some MMA fans worried. They're all taking place in the UFC.

With at least 75% of the best fighters in every weight class, (and that's a low number) the UFC has a virtual monopoly on talent. So where does that leave us when it comes to the issue of competitive balance in MMA?

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Despite the general decline in sports tv ratings, including the recent NHL and NBA finals, there is still one sport that continues to gain in popularity. No, not NASCAR, which has also suffered ratings decline. Its MMA (mixed martial arts) leagues such as the UFC and WEC. The UFC's Ultimate Fighter 5 finale recently earned a 2.0 rating for Spike TV.

What do the UFC, WEC and PRIDE all have in common? They are all owned by the same company. Recently, the UFC bought out both PRIDE and WEC, effectively preventing rival leagues from broadcasting its fights on Versus. Is this consolodation of talent good for the sport? While it may be good for fans, it can't be good news for the fighters, who now have less options than ever.