Wednesday, 28th February 2007

HEADLINES OF THE DAY

FIFA Blocked Again

Fifa, soccer’s world governing body, yesterday suffered another setback in its attempt to retain credit card firm Visa as a sponsor after a US judge scornfully dismissed the governing body’s attempt to gain a hearing before an arbitration panel in its ‘home’ country of Switzerland. Fifa is struggling to overturn a New York court ruling that it should ditch the deal with Visa and instead award an eight-year sponsorship contract to MasterCard.

However, the New York court judge, Loretta Preska, yesterday rejected Fifa’s claim that by approaching the Swiss arbitration panel it was not seeking a second ruling in a different court. She told Fifa’s lawyer: ‘How can you say that with a straight face?’

Fifa did not have to comply immediately with the order to award the sponsorship deal to MasterCard after the court ruled in December that the deal could be suspended pending the outcome of the appeal. The appeal concerns the New York court's jurisdiction over the case. The court claims jurisdiction on the basis that ‘this is a civil action between a citizen of a state and a citizen or subject of a foreign state and the amount in controversy exceeds $75,000, exclusive of interest and costs.

The ruling said that the case was heard in the New York court on the basis that MasterCard’s headquarters are in New York, with the result that ‘a substantial part of the events or omissions giving rise to the claim occurred in this district.’ Source: Sportcal, Daily Report Online, 27th February 2007

Clubs Leading a Backlash Against UEFA and FIFA

There could be a major split in European football as Premier League clubs criticise UEFA and FIFA. Since England's top clubs received GBP 2.7 billion for television rights, the leagues are demanding a greater say in how UEFA and FIFA run its competitions. UEFA is afraid the big leagues and clubs will set up its own competition if UEFA does not do what the clubs want. The political confrontation will cause a major change in the way European and world football is organised.

At a meeting in Nyon, Switzerland, Michel Platini, UEFA's new president, will hold significant talks with representatives from the Association of European Professional Football Leagues (EPFL) that was formed in 2004. Premier League chairman, Sir David Richards, presides over the group that is made up of 15 leagues from across the continent, with another seven leagues due to join later this year.

Since UEFA decided that the major European clubs would come in line with the formation of the European Club Forum, the EPFL's influence has been growing while the G14's power has been fading. In addition, the Premier League has more financial clout because of its new three-year TV deal, which starts this summer, and the EPFL will have more input in how football is run at an international level.

Both the leagues and clubs are frustrated at the lack of influence it has over key decisions that affect what is now a multi-billion pound business, despite being included on various strategy forums and committees over the last year. Source: EUFootball.biz, 27th February 2007


WHAT’S THE BUZZ?

Honda leads Formula One’s green revolution
To make a pledge, visit MyEarthDream.com

The Honda Racing F1 Team today unveiled a radical new approach to Formula One. Launched at the Earth Gallery in London’s Natural History Museum, Honda’s 2007 challenger, the RA107, will feature no commercial logos at all, replacing them with a giant image of the Earth. It is an approach that is certain to rewrite the rule book in terms of sponsorship and communication, while drawing attention to one of the greatest challenges facing the world – climate change and environmental responsibility.

Honda will harness this power to raise awareness of climate change among the 150+ million viewers of each race, taking place every two weeks. Indeed, such is the reach of the sport around the world, that it is estimated that if just 1% of F1 viewers turned their computer off at the plug overnight, this would save 45,000 tonnes of CO2., more than three and a half times the annual carbon emissions of the entire Honda Racing F1 Team.

Motor sport’s governing body, the FIA, has already announced its desire to see F1 play a major role in the development of new energy-saving technologies and this bold initiative by the Honda Racing F1 Team is by far the clearest endorsement of the FIA’s progressive strategy. It is entirely appropriate that it should be Honda taking the lead with this ground-breaking approach and the credibility is all the stronger coming as it does from a company that has always made great efforts to contribute to the preservation of the environment in all aspects of its corporate activity.

Universal Music, the largest music company in the world, and Gatorade are the first global brands to partner the team in this exciting new concept. Existing partners have enthusiastically embraced the idea and all remain involved with the team for the 07 season. In addition, the team is delighted to announce that Fila, IBM, Instron, Oliver Sweeney, Perkin Elmer, Showa Denko, TUV and GF Agie Charmilles have joined the roster of team partners and suppliers. Source: Honda Racing F1 Official Site, Sports Media, Sport Business, 27th February 2007


SPORTS SHORTS

* India Online (IOL) Broadband has launched what is claimed as India’s first IP-based on-demand television service to more than 250,000 subscribers. Leveraging the network of government-owned Mahanagar Telephone Nigam (MTNL), IOL Broadband offers on-demand content including Bollywood and Hollywood hits and music videos to its customers in Mumbai. Other IOL Broadband IPTV services include interactive gaming, video conferencing, an e-education channel and live financial data from the Bombay Stock Exchange. Source: Digital Media, 27th February 2007

* DTH service provider Tata Sky has tied up with the Bollywood heartthrob, Hritik Roshan, in efforts to spread the awareness of its association. The DTH platform is running a contest that gives 50 people and their families a chance to watch the ICC World Cup final with Hritik on 28 April in Mumbai. This is open to those who have bought Tata Sky before 15 April 2007. Tata Sky would likely have shelled out around Rs 17 million to get him on board, industry sources indicate. Source: Indian Television, 28th February 2007

* Vietnam's VNPT said that it will reduce by 15% to 20% its charges for VinaPhone and MobiFone, triggering a possible price war between the six mobile service providers in Vietnam. The cuts are tentatively scheduled for the end of March. VNPT wants to increase its users by an additional 3.5million to 4 million this year, reaching 16 million subscribers. The price cut comes after Viettel Mobile adjusted its fee for post-paid customers in February. Viettel said it was ready for the competition because it now has 5 million subscribers, as many as VinaPhone and MobiFone. Source: Telecom Asia, 28th February 2007

* China will not issue licenses for 3G mobile services until the first quarter of 2008, according to local media. China's Ministry of Information Industry (MII) will not issue the licenses until a new round of tests involving the homegrown TD-SCDMA 3G technology ends next year. Delaying the release of the 3G licenses will give TD-SCDMA and its backers additional time to close the gap with more mature 3G technologies, such as W-CDMA and cdma2000 EV-DO. Source: Telecom Asia, 28th February 2007

* The television hardware market in Asia measures at nearly $22 billion. GfK Asia has released its 2006 pan-Asian consumer electronics data summary. The report includes data from 13 countries including China, South Korea, Taiwan and Hong Kong. LCD televisions are the largest television category, equaling 40 per cent of the total market value, compared to conventional televisions (39 per cent), plasma televisions (18 per cent), and rear projection televisions (three per cent). Source: Indian Television, 28th February 2007

* Sources indicate that Jamaica's SportsMax - through parent company International Media Content Limited (IMC), will be doling out between US$18 and US$20 million over the duration of the contract for exclusive broadcast rights for a comprehensive football package, which includes the next two World Cups. Jamaica’s World Cup 2006 Qualifying match rights were sold to Traffic Sports USA for US$900,000 at a time when the Caribbean Football Union was hoping to sell rights for a minimum of US$2 million. Source: The Jamaica Observer, 27th February 2007

* Aston Villa will put its media rights up for sale in a bid to turn itself into a more fan-friendly club. The club will release a tender document this week. A first for the club, it outlines Villa's vision for next season's domestic and international television rights, mobile, home video, website, matchday video and broadband services. The club is also exploring a "centralised production process" which could allow its media content to created "in-house". The move is driven by new chief executive Richard FitzGerald, who has a strong background in new media. Source: Birmingham Post, 26th February 2007

* YouTube has struck a deal with the National Basketball Association to show highlights and behind-the-scenes videos featuring NBA players, CNBC reported Monday. The service includes a new website, the "NBA Channel," which will include interactive features like allowing users to send in clips of their best moves. The NBA previously had a pay-per-watch deal with Google Video. The deal is reportedly less extensive than the one Google struck with the National Hockey League in November. Source: Total Content + Media, Mediaweek, Sports Video Group, New York Times, 26th February 2007

* Gol TV has reached a deal with Bell Canada to make exclusive content available to mobile phone service Bell Mobility. Video content will include coverage of the UEFA Champions League, England's Premier League, Spain's Primera División, Italy's Serie A TIM and Germany's 1.Bundesliga. Gol TV has also agreed to make exclusive content available online via Sympatico.msn.ca, a Bell joint venture with Microsoft. Exclusive content there includes Living Legends and Lee Godfrey's Soccer Blog. Source: Sports Media, 27th February 2007

* In a move designed to continue the growth and progress of officiating in the United States, U.S. Soccer has established a programme to employ full-time referees for the first time in the organisation's 95-year history. Jair Marrufo, Ricardo Salazar, Baldomero Toledo and Terry Vaughn will become full-time referees, enabling them to focus on practical on-field applications, as well as on off-the-field training. Source: Football Insider, 27th February 2007

* The Apple TV solution which allows computer video to be played on TV sets—originally due out in February—has been delayed until mid-March, reports Reuters. No specific reason was given, a spokeperson simply said: “Wrapping up Apple TV is taking a few weeks longer than we projected, and we now expect to begin shipments mid-March.” Some Apple TV devices have already been pre-sold via Apple.com for $299...the shipping information still says February. Source: Business Week, also Reuters on Yahoo! News, CNet News, Rapid TV News, 26th February 2007

* UK IPTV start-up BT Vision has poached the VP of operations and production at Dubai-based TAJ Television, Steve Norris, to head its sports activities. Norris jointly founded TAJ in 2000, when it was known as Ten Sports. He will take up his post at BT Vision from the beginning of April, reporting to commercial director Marc Watson. He will be responsible for growing the BT Vision sports offering, which is due to launch this summer and currently includes the Setanta Sport channel, plus access to 242 'near-live' Premiership football matches. Source: C21 Media, 27th February 2007


MORE NEWS

India/Broadcast: Neo Sports Targets Pan-Asian Expansion by Mid 2007

Neo Sports has announced details of its Pan Asian expansion as part of its mission to be a Pan Asian cricket channel by the middle of 2007. These markets include the Middle East, Bangladesh, Hong Kong, New Zealand, Sri Lanka and Nepal. The cricket-dedicated channel will soon also commence broadcasting in Malaysia and Singapore.

Neo Sports CEO, Shashi Kalathil said, "In barely three months of our commercial launch in India, we have succeeded in a comprehensive Pan Asian roll-out. Asia is a very important market for us as it is an amalgamation of cultures and nationalities with a huge Indian ethnic community."

The revenues from the Pan Asian operations of Neo Sports outside India, between subscription and advertising are expected to add up to approximately $26 million in 2007-2008 with an approximately 30 per cent EBIDTA margin, as incremental cost for international operations is relatively insignificant since the bulk of the costs are already absorbed in the Indian operations, informs an official release.

Neo Sports was launched in Nepal through Pacific Traders on Cable and MMDS and has also partnered with the Pehla bouquet on the ADD platform in the Middle East, which is the pay TV platform management company in the Middle East, North Africa and Europe. It has also been launched on Cable in Bangladesh via SAARC Media in January 2007 and in Sri Lanka through Sri Lanka Broadband Network.

In March 2007 Neo Sports will commence broadcasting on Hong Kong's Cable system I-Cable and via DTH on One Broadcast Ltd, in New Zealand. Neo Sports, which had its soft launch in October 2006 and its commercial launch in the first week of January 2007 in India, has secured platform partnerships across Asia, as part of its mission to be a Pan Asian cricket channel by the middle of 2007. Source: Indian Television, Agencyfaqs, 28th February 2007

India/Broadcast: TDSAT Upholds Tariff by Trai

The Telecom Disputes Settlement Appellate Tribunal (TDSAT) upheld the tariff of Rs 5 per channel fixed by Telecom Regulatory Authority of India (Trai) against which three broadcasters had appealed. In its pronouncement on the appeal filed by Set Discovery, ESPN Star Sports (Singapore) and ESPN Software India, TDSAT held that the case was devoid of merit and the appellants liable to pay costs, totaling Rs 150,000, to Trai, which had proved its case.

While giving its ruling, TDSAT said that the broadcasters had themselves said that 70 to 80 per cent of their revenues come from advertisements, and the bench noted that "at various fora", it has been argued by the broadcasters that they also generate revenue through sub-licensing and through fees paid by consumers in sending SMSs to the channels. Source: Indian Television, 27th February 2007

Thailand/Broadcast: iTV Stares into Abyss

Thailand’s only independent television channel iTV edged closer to official bankruptcy, after its auditor questioned whether the company was still a going concern with massive unpaid fees, fines and interest owed to the government. Trading in shares of iTV on the Thai Stock Exchange was halted on February 27 and chairman Boonklee Plangsiri resigned, although the channel continues to broadcast, for the time being at least.

ITV has until March 6 to pay nearly Baht 100 billion to the new military government. Of that, Baht 2.2 billion (US$64 million) is owed in unpaid concession fees but the government has also levied a massive Baht 97.6 billion (US$2.9 billion) fine on the channel. ITV is controlled by the Shin Corporation, founded by former Prime Minister Thaksin Shinawatra, found guilty by the Thailand’s Central Court of manipulating the terms of its operating concession before the coup which ousted him in September. The verdict on Shinawatra was upheld in December and the fine and fees were then levied.

The Thai government is also attempting to regain control of Shin Satellite, the satellite division of Shin Corp. Shin Corp was partially sold off to Singapore government-backed investment company Temasek Holdings in January 2006. ShinSat reported a net loss of Baht 46 million (US$1.4 million) in 2006, although that would have been a net profit of Baht 629 million were it not for a Baht 675 million write-off of the failed Thaicom-3 satellite. Source: Rapid TV News, 28th February 2007

Asia/General: New Stock Car Series to Hit Asia and Middle East

The growing popularity of motor racing in Asia and the Middle East is reflected in yesterday's announcement that a new stock car championship is to be launched in the region, which will feature France's ex-Formula 1 star Jean Alesi. The Speedcar Series will involve 24 drivers competing in identical 600bhp cars over 18 races between November 2007 and April 2008.

The 42-year-old Alesi, who has raced in the German DTM touring car series for the past five years, is the first big name driver to confirm his involvement. The series has the backing of Formula 1 promoter Bernie Ecclestone who said: ‘It seems that motorsport is really becoming a reality in Asia and the Middle East and I would like to think this is due to the popularity of Formula 1. The new Speedcar Series will consequently add even more interest.’ Source: Sportcal, 27th February 2007

China/General: Chinese Test for USA on Eve of Gold Cup Defence

The national soccer teams of USA and China will meet in a friendly in San Jose on June 2. The fixture will act as a warm-up for the US side as it prepares to defend the Concacaf Gold Cup, the competition for national teams from North and Central American and the Caribbean, on home soil in June.

On the same day, Austria will take on Paraguay at the Gerhard Hanappi Stadium in Vienna. Austria will also organise a four-team tournament in September that will involve Euro 2008 co-hosts Switzerland as well as Japan and Chile. Austria will play Japan in Klagenfurt, while Switzerland take on Chile in Vienna on September 7. Four days later the Austrian capital will stage the game between the hosts and Chile, while Switzerland and Japan meet in Klagenfurt.

The Football Association of Wales has announced that the national team will play New Zealand in a friendly in Wrexham on May 26. The game will act as preparation for the Euro 2008 home qualifier against the Czech Republic in June. Source: Sportcal, 27th February 2007

Elsewhere/New Media: Sports Streaming Organizations Step Up Their Game

Servecast and the Sports Video Group are each hosting or partnering on high-profile industry events to keep pushing sports video as both a broadcast art and a significant revenue stream. Two recent announcements indicate just how crucial streaming video has become to the media strategies of virtually all sports organizations around the world.

UK-based Servecast, a company focused on what it terms “sportscasting,” is gearing up for its New Media Sportscasting Summit. Servecast has also announced that seven of the final sixteen clubs in the UEFA Champions League will be represented, including Chelsea, Manchester, Arsenal, Barcelona, and Glasgow.

Servecast’s move to establish itself as a leader in sports video broadcasting events is akin to several other moves throughout the sports entertainment industries. One other announcement last week is of particular interest to those in the U.S. mobile video market. The Sports Video Group (SVG) just celebrated its first joint partnership at the Consumer Electronics Show in January, and will partner with the National Association of Broadcasters for the upcoming NAB 2007 show to be held in Las Vegas in mid April. Source: Streaming Media, 26th February 2007

Elsewhere/General: Circus tour for De La Hoya and Mayweather

Oscar De La Hoya was clearly distracted, silently scanning the crowd while Floyd Mayweather hurled a flurry of insults his way. "I'm the top dog in boxing!" Mayweather shouted, pointing at “Pretty Boy” De La Hoya. "It'll be a toe-to-toe battle. You can fall on your face. You can fall on your ass. You can fall on your back. I'm going to take my time and give you a brutal beating. A brutal beating!"

The De La Hoya-Mayweather showdown for the junior middleweight championship on May 5 in Las Vegas will be one of the biggest money-making fights in history. Tickets at the 17,000-seat MGM Grand arena sold out in three hours for a Nevada-record gate of $19 million. Some 1,200 closed-circuit showings are expected for the fight which will be broadcast to 176 countries. The fight is more than two months away but the two fighters' 11-city U.S. tour is in full swing.

Perhaps the biggest non-heavyweight attraction, De La Hoya (38-4) is now a wealthy entrepreneur and owns Golden Boy Promotions which is running this fight. The upcoming bout will bring him a reported guaranteed purse of $12 million while the 30-year-old undefeated Mayweather will pocket $8 million. Source: Reuters, 26th February 2007