Tuesday, 24th June 2008

SPORTS SHORTS

* Malaysia’s monopoly satellite platform, Astro All Asia Networks, says it may spend another RM200 million/US$61 million on its ill-fated Indonesian direct-to-home satellite joint venture if no agreement is reached with its local partner. The Kuala Lumpur-based platform posted a net loss of RM2.61 million/US$799,974 for the quarter to end April this year, compared to profit of RM32 million/US$9.8 million for the same quarter last year. The results were attributed to spending on joint-venture operations in Indonesia and India. Content Asia, 23rd June 2008

* Ten Sports has roped in telecom service provider Idea Cellular as the title sponsor for the India-Sri Lanka cricket series. The event will also telecast on Zee Sports with Hindi commentary. Zee Group has a 50 per cent stake in Dubai-based Taj Television, the company that runs sports channel Ten Sports. Says Taj Television CEO Chris McDonald says, “We are very pleased to partner with one of India’s foremost telecom companies Idea Cellular to bring all our loyal viewers in India the much awaited Idea cup live on Ten Sports and live as well on Zee Sports in Hindi.” Indiantelevision.com, 23rd June 2008

* ITV/Granada International pulls its Middle East entertainment channel, UKTV, into Asia from today (23 June), ITV Worldwide regional director for Asia, James Ross, said. The pan-regional preview service will be followed later this year by a full channel launch. This will be ITV’s first full pay-TV channel in Asia. Details – including the new service’s branding – are still being finalised. Content will be drawn primarily from the ITV library and will include contemporary drama such as Prime Suspect, Murder City, Eleventh Hour, and Crash Burn as well as comedy, entertainment, reality and talk shows. No carriage deals have been announced. The channel will be operated out of ITV’s regional head office in Hong Kong. Content Asia, 23rd June 2008

* The head of BBC Sport Interactive believes the Olympic Games this year will help to take popularity of watching sport over the Internet “to the next level”. Ben Gallop, who heads web developments at the BBC, is confident the availability of UEFA Euro 2008 action followed by coverage of the Beijing Olympics later this year on BBC iPlayer will pull in lots of new fans to the service. “Back in the spring we re-designed the BBC Sport website to give more prominence to video and it's been great to see the results of that over the past couple of weeks,” Gallop wrote in a BBC Sport blog. “We've offered live streaming of all the BBC's Euro 2008 matches as well as clip highlights of every game - and we're seeing record numbers of people watching the football on our site.” Sports Media, 23rd Jun 2008

* A1GP World Cup of Motorsport will offer its worldwide feed in high definition from the 2008-09 season. There are more than 45 A1GP broadcast licensees worldwide covering just under 180 territories. They will be given the option to elect to receive the high definition or standard definition feeds. Television footage is available from over 60 cameras located on the track, in the pits and even in the cars. A1GP Productions have worked alongside Ferrari to integrate new and exciting On Board Camera positions. New features will include further telemetry from the car and more advanced tv graphics to give greater insight into the efforts of the driver inside the cockpit. Sport Business, Sportcal, 23rd Jun 2008

* Warring Liverpool co-owners George Gillett and Tom Hicks are trying to repair their fractured relationship. The pair have been at loggerheads over a number of issues this year, leading Gillett to describe their partnership as "unworkable". There were fears the public feud between the billionaire businessmen would create anarchy at Anfield - including affecting the spending plans of manager Rafael Benitez - but a ceasefire appears to have been called between the two factions. In an interview with Canadian radio station Fan590, Gillett revealed: "It's fair to say that communication between the Hicks and the Gilletts has been substantially improved and I believe that it will be for the benefit of the club." Football Insider, 23rd Jun 2008

* The Mayor of Birmingham, Alabama has said that he is putting together a committee to bid for the 2020 Olympic Games. According to US press reports, Larry Langford said that the committee will evaluate all available athletic facilities in Birmingham and neighboring cities in making the application. He said he envisaged that by 2020 all city projects, including an indoor track, Olympic-sized swimming facilities at Fair Park, and a domed stadium would be competed. The mayor said that the Games would positively change the image of the city. Sportsbusiness.com, 23rd June 2008

* MediaFLO USA, ESPN Mobile TV and NBC Sports on NBC 2Go will provide comprehensive live coverage of championship tennis from Wimbledon on the FLO TV service in the United States, starting today. Available to AT&T subscribers as AT&T Mobile TV with FLO, the FLO TV service will provide coverage of matches live on AT&T devices, including LG Vu and the Samsung Access. Beginning today, ESPN on ESPN Mobile TV and NBC Sports on NBC 2Go will provide MediaFLO USA with a total of 119 hours of live video content from Wimbledon, concluding with coverage of the championship finals matches on July 6. Worldscreen, 23rd Jun 2008


MORE NEWS

Real Madrid: Cristiano Ronaldo Could Tip Balance with Move to Real

Real Madrid president Ramon Calderon, having seemingly steered away from the controversial 'galactico' policy of predecessor Florentino Perez, insisted last night that Real Madrid would "never pay €100million for any player," yet it looks increasingly likely that they will do just that to secure the signature of Manchester United's Cristiano Ronaldo. On top of that, Calderon is ready to give the Portuguese a £182,000-a-week contract that would dwarf the wages commanded by players such as Kaka, Michael Ballack and John Terry.

At a time of such Premier League strength, Real's apparent financial muscle may appear surprising. Indeed, if the Ronaldo transfer happens, it would force a re-evaluation of the supposed European financial dominance of England's leading clubs. Recent research showed that the Premier League was generating some £600 million more income on an annual basis than Spain's La Liga, yet revenues are widely split in Spain.

Real were accused of being effectively state-subsidised following the training ground deal, but remain the only club to generate more annual income than United. In 2006-07, according to Deloitte's Money League, their turnover was £236 million compared to United's £212 million. The difference could largely be explained by the commercial legacy of the galactico policy, as well broadcast rights. United and the rest of the Premier League clubs sell their television rights collectively, while Real are free to thrash out individual deals in Spain, and have recently signed a contract with Mediapro worth £740 million over seven years. They also generated more than £30 million more in commercial turnover than United, an area of their finances that improved significantly during the period that Zinedine Zidane, David Beckham and Brazil's Ronaldo were at the club.

As well as the benefit on the football pitch, the acquisition of United's Ronaldo would also provide a boost to Real's merchandising. It is, however, widely predicted that United's turnover will surpass Real's when the figures for the 2007-08 season are published.

Ronaldo yesterday went on holiday, and no swift resolution is expected. Ultimately, the stand-off highlights the differing styles of the world's two richest clubs. United's emphasis on developing emerging young talent has helped ease any temptation to spend excessively on individual players, while Real coach Bernd Schuster has expressed the desire to "pay whatever it takes" to sign Ronaldo. Telegraph.co.uk, 24th June 2008

India/Broadcaster: Delhi HC Sends Back Tata Sky-ESPN Case to Tdsat

The Delhi High Court has sent back the ongoing legal battle between direct-to-home service provider Tata Sky and ESPN Software India Private Ltd (ESIPL) to Telecom Disputes Settlement and Appellate Tribunal (Tdsat). The High Court has also dismissed the Tata Sky injunction application filed against ESIPL.

In its application Tata Sky said that ESIPL had withdrawn the reference interconnect offer (RIO) dated 15 May 2008, and has not filed a fresh one; so it should be discharged from complying with their undertaking. A single member bench of Justice Rajiv Shakdher directed Tata Sky, which today filed an application seeking withdrawal of its undertaking submitted before the bench to restore ESPN signals in its base pack.

This undertaking was to make available the three channels of ESIPL namely ESPN, Star Sports and Star Cricket to all their subscribers as on 20 May 2008. Justice Rajiv Shakdher, in his order, maintained that Tdsat should take a view on whether Tata Sky should be allowed to be bound down by its undertaking or not. The court also directed the parties to approach the Tdsat for an early hearing. The matter is listed for hearing in July. Indiantelevision.com, 23rd June 2008

Malaysia/Broadcaster: Budget Cuts to Have “No Impact” on RTM Programming

Cost cutting at Malaysia’s information ministry will have no negative impact on operations at public broadcaster, Radio Television Malaysia (RTM), local reports say. The ministry’s allocation has been cut by 10%, which translates to RM20 million/US$6 million or RM30 million/US$9 million, Minister Datuk Ahmad Shabery Cheek said after a film-makers’ gathering arranged by the Malaysian Film Development Corporation.

The minister stressed that programme quality would not be compromised. “We can reduce other things,” Bernama quoted him as saying. He suggested less costly content, such as talk shows or interview programmes. He said the ministry needed to be patient and find other means to increase its revenue. He also said RTM should not be seen as a “dumping ground” for poor quality programming. Content Asia, 23rd June 2008

Asia/General: Bin Hammam Ready To Hop On 39th Step

The head of Asian football has opened the door for the English Premier League to stage its controversial 'international round' of fixtures in the region provided it can convince the Football Association (FA) to back the idea. Mohammed Bin Hammam, president of the Asian Football Confederation (AFC), initially condemned the idea of the 39th step that would see the 20 Barclays (sponsor) Premier League clubs play an extra round of matches in foreign cities over one weekend in January, but he has now changed his stance.

That u-turn will give huge hope to those clubs backing the move - a final decision has yet to be taken by the clubs, who have asked Premier League officials to explore a number of options aimed at international expansion. Bin Hammam (pictured right), who met Premier League chief executive Richard Scudamore in China earlier this month, said: "I had a chance to talk to the Premier League and I told them 'If you want to come to Asia I will welcome you. I don't have a problem with that. Fans in Asia love to see your football'."

He continued: "I would welcome the Premier League playing in Asia but I would like to see the Premier League come to me through their national association or their confederation. In football, that structure has to be maintained otherwise we are going to have chaos. If that happens, I will be the first one to welcome them. This is the only way. We can't accept it any differently in Asia. Yes, there is a lot of money in football and a few clubs are getting the biggest share of this income from TV and sponsorship but this shouldn't stop us from doing things in the right way."

The Middle East or Hong Kong would prove likely destinations for any international fixtures having already expressed a keen interest in staging games. However, Bin Hammam warned no country would be able to talk to the Premier League without the AFC and FIFA's consent and the latter's hard-line stance is an obvious stumbling block. If the plan does come to fruition, Bin Hammam also insisted fixtures would only be sanctioned in Asia if it would prove beneficial to the host country.

"I am a football fan. I would love to see the best football played in Asia," he said. "But don't come as businessmen, you are footballers, you are artists. You have to leave a legacy behind you. A legacy that is going to benefit the youth of the country, the club, the national association. Don't come as bloodsuckers. We are not business people, we are sporting people and we have to act that way." The League's next task if it is to revive the international round is to persuade the FA, which expressed "serious reservations" when it was announced. UEFA and FIFA remain major stumbling blocks however - UEFA president Michel Platini labelled it "crazy" and FIFA president Sepp Blatter insisted: "This will never happen - at least this will not happen as long as I am the president of FIFA." Football Insider, Sportcal, 23rd Jun 2008

Asia/New Media: Plan for speedy Asian DVB-H

Alcatel-Lucent and SpeedCast are hoping to kick-start the deployment of DVB-H mobile TV in Asia, linking to offer operators a shortcut for offering services to subscribers. The two tech companies have agreed to jointly market, deploy and operate a hosted DVB-H platform for operators across the region. A state-of-the-art DVB-H head-end will be set up using the companies’ respective technologies, infrastructure and content delivery solutions.

Over 20 channels will be delivered via satellite to operators’ transmission towers for UHF terrestrial broadcast to DVB-H handsets, eliminating the costly and time-consuming process of operators finding and signing up content providers, a process most mobile operators are unfamiliar with. Pierre-Jean Beylier, CEO of SpeedCast, said: “This hosted mobile TV broadcast offering will help lower the risk to service providers associated with introducing a new service, while at the same time giving them the opportunity to provide their customers with attractively priced services and richer content offerings.”

There are as yet no DVB-H deployments in Asia, but mobile TV services are available in various countries using other standards. Many operators, including some in Australia and Singapore, offer 3G TV services and in Korea, there are terrestrial and satellite DMB services. Rapid TV News, 23rd Jun 2008

Global/General: IMG, Fox Sports International in Distribution Tie-Up

Fox Sports International, the international programme distribution arm of Fox Sports, the US broadcaster, is due to cease trading next Monday after a decision was taken to shut down offices in London and Houston and hand over the distribution function to its former rival IMG Media, the media arm of the international sports agency. IMG will begin selling the programming, including college American football, such as the Bowl Championship Series and Cotton Bowl, and basketball and programming from the domestic Fox Soccer Channel, on July 1.

Staff at the London and Houston offices, numbering 12 in total, will be affected, with several being laid off and some in the Houston office being reassigned. Fox Sports International today told Sportcal.com that 'a select number of employees will stay on between now and the end of the year to help with the transition.' It is understood that, although they have been offered relatively generous redundancy packages, some staff believe that no proper explanation was given for the decision, which one source described as ‘cloak and dagger.’

However, it is arguable that the decision is hardly surprising, given that the quality of programming distributed internationally by Fox Sports International has declined dramatically since the early years of this decade, when it could boast golf’s PGA Tour, and top-tier South American soccer among its sports properties. Asked the reason behind the decision, Fox Sports International said: 'It comes down to IMG being better suited in multiple areas to be able to distribute the programming we do have.' It is understood that the Fox Sports International brand name could cease to exist from next Monday, 15 years after it was established in 1995.

A farewell dinner for the London staff is scheduled for Wednesday. Staff at the London office would not comment on the decision.

David Sternberg, executive vice president and chief operating officer of emerging networks at Fox Cable Networks in Los Angeles said in a statement: ‘It's increasingly difficult to really maximize the foreign revenue opportunity if you don't have meaningful scale. ‘IMG brings a scale and a global presence that we were never able to replicate with just the one sales office.’

Michel Masquelier, executive vice president, head of acquisition and sales worldwide at IMG Media, said: 'We look forward to leveraging our worldwide presence and extensive relationships with broadcasters, as well as our representation of premier properties, governing bodies and sporting events, to help Fox Sports International expand the reach and exposure of their comprehensive catalogue of programming.'

Fox Sports International’s programming portfolio amounts to about 3,000 hours, with its main markets being located in Europe, the Middle East and Asia. Other programming in its present line-up includes Fuel TV action sports programming, Mexican soccer’s Interliga and surfing’s ASP Women’s World Championship Tours. Properties that were previously handled by the agency included Argentinean, Colombian and Chilean soccer, squash's PSA Super Series, the World Taekwondo Championships, equestrianism’s Samsung Nations Cup, Australian football’s AFL Premiership, beach volleyball AVP Tour and golf’s Presidents Cup. Sportcal, Worldscreen, 23rd Jun 2008


ARTICLES, COMMENTS, INTERVIEWS & OPINIONS

Brand Wimbledon: The Global Sales Helping to Fund Search for a Champion
James Meikle and Esther Addley writes for The Guardian UK, 23rd Jun 2008

Britain may not have had a Wimbledon ladies' champion since 1977 nor a men's since 1936. But the world's oldest tennis tournament wins game, set and match when it comes to global marketing. As home fans troop to London SW19, hoping Andy Murray can defy the odds to win this quintessentially English event, few may realise that it is the young people of Japan and China who hold the cash key to realising British dreams of a successor to Virginia Wade and Fred Perry.

Last year the All-England Lawn Tennis and Croquet Club, which runs the tournament, gave the Lawn Tennis Association £26.3m, over half the governing body's income, showing how vital Wimbledon is to the search for a British champion. Wimbledon started trading in China six years ago and now has 34 shops there in 14 cities, including two outlets in Beijing. In Japan, where Wimbledon's commercial appeal has been exploited for longer, the club hosts regular "Wimbledon fairs", exhibiting tournament merchandise.

The most recent one attracted 14,000 people. Last year 350,000 pairs of branded Wimbledon sports shoes were sold in Japan, compared to "low four figures" through the All-England club's retail outlets in the UK. In India, firms licensed to make Wimbledon-branded merchandise include high-end jewellers Gitanjali. And this month a partnership was announced with India's TVS Motors to produce scooters: the green, purple and white Wimbledon Class and the Wimbledon Xtreme, "an exciting red scooter with graffiti art capturing the excitement of tennis".

Wimbledon has licensing deals with 26 companies globally and, nearer to home, 15 official "suppliers" to the championships can associate themselves with the crossed rackets logo. These run from Blossom Hill for wine to Slazenger for balls (an arrangement dating back to 1902), parts of a package designed to retain "the unique image and character" of Wimbledon by not commercialising the grounds overtly.

Most recent holders of a slice of the iconic image are Evian, official bottled water (Robinsons has been the official still soft drink since 1934), and HSBC, the official bank. Its group head of sponsorship, Giles Morgan, says the tournament is "a bastion for sporting ethics and tradition for doing things the right way ... The Wimbledon championships is one of the most recognisable sporting events in the world, broadcast in over 150 countries to a global audience of more than 2 billion over the fortnight".

Closer to home, and opening its doors for the first time today in the Centre Court building, will be a superstore where fans can choose a Ralph Lauren Wimbledon-branded tennis sweater in "herbal milk" for £200, ladies' designer sunglasses for £82, "court classic" holdalls for £40 or - last year's favourite - mini tennis ball key rings for £3. This will bring the number of merchandise outlets on the site to 15.

No one will say what the event costs to stage, but total prize money is about £11.8m, with the men's and ladies' singles champions each receiving £750,000. A Centre Court ticket for the men's final costs £91, but income from the global TV audiences will dwarf that provided by the 450,000 spectators in SW19. The surpluses (Wimbledon-speak for profits) go to the LTA under a 1934 agreement guaranteeing the club the right to host the championships. In 1980, the sum was £420,000, so last year's £26.3m shows just how much the global marketing reach has increased Wimbledon's income.

Roger McCowen, marketing director at the All-England club, says: "Merchandising is very small in the context of the income from our TV rights and our big official suppliers, but the difference is in the geographical reach, the 52-week awareness, the brand extension." New media has opened other income streams. Subscription to Wimbledon Live for the fortnight allows fans to see live and on-demand action on their computers. "We have also done perhaps 10 or 20 different mobile phone deals and smaller broadband deals in different markets for companies to acquire material - highlights, interviews or material from our very rich archive," says McCowen.