ESPN Cites $60M Price Tag In Rejecting NHL TV Rights Option

(From Sports Business Daily)

The NHL will have to look for a new cable television home.

ESPN Executive VP/Programming and Production MARK SHAPIRO during a conference call with media yesterday confirmed that the network will NOT pick up its $60 MILLION option to renew its TV rights deal with the NHL.

Shapiro -- "We envision next year coming and going without any NHL product."

Shapiro said if the NHL "were to announce tomorrow it's back, we're NOT there for $60 MILLION."

Shapiro added even if the lockout is settled, NHL rights would be worth "well below $60 MILLION. Half of that."

Shapiro -- "The NHL could have done a deal today for a lesser rights fee or a true partnership of revenue sharing, but they chose not to do that." But Shapiro indicated that the NHL PLAYOFFS, "particularly THE STANLEY CUP FINAL SERIES, still constituted a major event that might attract a TV deal."

Shapiro -- "I think somebody will pay a rights fee, but it won't be us."

Shapiro added that ESPN will "begin planning replacement programming that includes extra college sports and wants to avoid 'last-minute hole-filling' in its scheduling."

NHL Group VP/Communications BERNADEETE MANSUR said, "We have no further interest in devaluing that product."

NHL VP/Media Relations FRANK BROWN added, "When the now-expired contract was negotiated, the $60 MILLION option price took a work stoppage -— potentially a long-term work stoppage —- into consideration."

THE HOLLYWOOD REPORTER's PAUL GOUGH reports the NHL has held talks "with a handful of other suitors, including SPIKE TV." Sources said that it is "likely that any bidder would want the same arrangement as NBC, which has a revenue-sharing deal with the NHL that involves no rights fees."

In Toronto, WILLIAM HOUSTON cites two sources saying that while each of the NHL's 30 teams will lose $2 MILLION in rights fees, the NHL "might be better off without ESPN."

A source -- "Many of us felt that ESPN was more interested in promoting itself rather than hockey."

Another source -- "When ESPN acquired the NBA and started focusing on original content programming, such as dramas, the NHL, as well (as) other sports properties, got squeezed in terms of promotion."