Baseball Sets Television Pacts With Fox, TBS

By BRIAN STEINBERG
Wall Street Journal

July 12, 2006; Page B3

http://online.wsj.com/article/SB115266984549704229.html?mod=home_whats_news_us


Major League Baseball reached new seven-year deals with News Corp.'s Fox 
Sports and Time Warner Inc.'s Turner Broadcasting System to broadcast 
various regular-season and postseason games. Under the new pacts, Fox will 
reduce the number of postseason games it airs while retaining the All-Star 
Game and the World Series through 2013. The network will pay around $250 
million a year, or around $1.8 billion, compared with the $2.5 billion 
value of its last deal in 2000.

Fox's decision reflects the network's desire to better establish its new 
primetime schedule in the fall. The network's need to pre-empt its 
entertainment schedule with postseason games has frequently hurt its 
ability to establish new shows in recent years. The entertainment division 
has tried to work around baseball by premiering shows as early as 
mid-August -- rivals wait until mid-September, when viewing levels are 
higher -- and developing shows that appeal more to the male audience that 
tunes in for baseball. Fox successfully launched the drama "Prison Break" 
last fall, for example.

 From next year, Fox is giving up divisional playoff games, and will show 
only one League Championship Series each year, starting in 2007. The 
network has a stronger entertainment schedule than it has in years past, 
says Ed Goren, president of Fox Sports, and the fall postseason is an 
important time to establish new programs.

TBS will take some of the games that Fox is discarding. Starting in 2007, 
TBS will show Division Series Playoff games and, in 2008, 26 regular-season 
Sunday games. TBS will pay around $70 million a year, or around $500 
million, according to people familiar with the matter.

The LCS games Fox won't show are still available for purchase, and TBS is 
interested, and is "trying to find the right financial model that works," 
says David Levy, president of Turner Sports.

In total, Major League Baseball expects to secure more than $3 billion over 
seven years from the Fox and TBS deals combined with payments for the 
remaining games to be sold, according to a person familiar with the situation.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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