First TV Deal Roundups

Doug Ferguson provides an overview of the deal.

John Hawkins in this week's Golf World had the news on ESPN pulling out before today's announcement, and how the Tour admirably refused to budge on ESPN's desire for marquee tee times, which would have been a ridiculous situation.  Hawkins also weighs the move to The Golf Channel and whether it will be similar to the Champions Tour's move there.

Gene Yasuda calls the loss of ESPN a "significant and unexpected blow." 

I've started a thread on the TV deal playing off of Dan G.'s post from last week.  Curious what everyone thinks.

New TV Deal at 2 EST

The Commissioner explains at 2 why they will be just fine without ABC and ESPN.

**Update: "We couldn't be more pleased with the outcome of these discussion." -Finchem

Parameters:

-6 year deal with networks, CBS increases to 19 events, NBC from 5 to 10

-Golf Channel handles all early round coverage and the Mercedes/Sony/Bob Hope kick off to the season. 

-TGC also handles all post-FedEx Cup events, and is signed for 15 years(!?) to "fully accomplish" the objectives of getting TGC on more than its curren 70 million homes

-15 year deal to continue Champions and Nationwide coverage on TGC 

-World Cup of Golf, R.I.P.

Chase For That Kind Of Money

Larry Bohannan in the Desert Sun:

But as the current negotiations drag on, and as players such as ABC and USA walk away, the questions of how the tour is dealing with the networks and sponsors grow. The final six or so weeks of the 2007 season are being sacrificed to cable to avoid the NFL.

If the tour is negotiating to maintain current revenue levels, it's now clear that won't work. If in the chase for that kind of money the tour is alienating sponsors, television networks and even its individual tournaments, the tour might be doing a remarkable disservice to the fans and the game. 

38% of Almost A Billion...

In the Golf World story on the new Tour TV deal, Stu Schneider writes:

The source said the tour would likely reduce its subsidy of purses from 62 percent to "somewhere in the 50s," putting pressure on tournament directors to get that revenue from other areas.

Now if 38% of the television money over the last four years stayed in Ponte Vedra, and it was valued at "almost" a billion dollars, would that mean the PGA Tour takes somewhere between $75-95 million a year for executive salaries, marketing and overhead? 


Sal, Others Weigh In

Sal Johnson writes about the rumored TV deal, why it became a money loser for ABC, the loss of work for a lot of talented people and he wonders how the Tour will spin this.

Since NBC doubling its golf coverage would mean going from 5 to 10 events, Johnson seems to feel CBS will be doing a lot more golf and wonders how viewers will feel about that (especially since their telecasts seemed a bit tired when they did just 17 events last year).

Here's the AP story on the Golf World story with its own confirmation from another source, and here is Golfweek's rehashing of the Golf World story without attribution.   

Follow-Up On Reported Tour TV Deal

Lots to cover, and I know you've planned your day around my thoughts on the matter, so here goes. First, in case you missed it, here's the link to Stu Schneider's GolfWorld.com exclusive, with reporting from Rosaforte, Sirak and Hawkins.

Golf World has learned the tour will be traveling with one fewer passenger, as ABC Sports, which broadcast its last Monday Night Football game a week ago, has opted for a similar decision for golf, leaving it to CBS, NBC and ABC's cable partner, ESPN.

Just when someone was getting the hang of making televised golf entertaining again, they yank the A-Team. Hopefully Faldo, Azinger (it doesn't sound like it), Tirico, Rankin, North, Baker-Finch and Alliss will appear on ESPN with Loomis in the truck to beef up their dreary telecasts. But don't bet on it.

It is hard to imagine losing the network that covered the second most tour events this year (16). And ESPN still isn't the same as one of the big three networks, especially with its current production values. (I know, I know...the ESPN brand, the impactful marketing reach, they're a lifestyle, yada, etc, yada, etc.)

The one bit of good news about ABC bowing out? Maybe Faldo-Azinger-Tirico will not give a hoot this year and really have fun by saying what is truly on their minds.

While the length and value of the new deal are still being negotiated, two sources familiar with the talks told Golf World that one proposal on the table called for a six-year contract, instead of the traditional four-year deal. "It is one way for [Commissioner] Tim [Finchem] to get the kind of numbers he wants to announce," said one source involved in tournament management.

Tim, are we ripping a page from David Stern's Putting-Vanity-Before-Common-Sense: The Modern Approach to a Commissionership?

The source said the tour would likely reduce its subsidy of purses from 62 percent to "somewhere in the 50s," putting pressure on tournament directors to get that revenue from other areas.

Or, they could just reduce the purses by 12% since the big names have made it clear this week that tournament timing, the venue and of course, family, are all more important than the purse. Psychotic.

Schneider also reports that USA Network is out on weekdays, while ESPN, The Golf Channel and someone willing to fall for the "but our demographics are great" argument will take over. 

The Players will be moving to May while Doral, according to Golf World, will become the WGC-American Express Championship (Ford bowing out!?). This leaves Harding Park one less opportunity and may mean the International did not get its wish to become a WGC event.

"I knew a week ago that ABC was out," Paul Azinger told Golf World. "I'm highly disappointed, for a lot of people. Not for me, because I have a golf career. I'm disappointed for all the people behind the scenes that you're never going to see or hear of. I feel bad for [ABC golf producer] Mark Loomis, too. He took a big chance with Faldo and me, and it worked. Unfortunately, the network was unwilling to write the check."
Beyond 2006, the status of its golf production team, including veteran analysts such as Peter Alliss and Judy Rankin, is unclear. Azinger said he planned to return to competitive golf and play a full schedule in 2007, using his career money list exemption.

Sigh. And it gets worse. Looks like we'll be getting more of Roger Maltbie than we can stomach imagine.

NBC...will double its commitment starting in 2007, by adding two West Coast tournaments (believed to be Phoenix and the WGC-Accenture Match Play), and three of the four FedEx Cup events (Boston, Chicago and the series-ending Tour Championship in Atlanta; the fourth FedEx Cup stop, in Westchester, N.Y., returns to longtime home CBS). NBC also will keep the Florida swing and the last event before the Masters, which may be Houston in the new schedule, taking over from the BellSouth Classic near Atlanta, which will move to a post-Masters slot.

And this, which probably has several tournament directors losing sleep, just wondering if their event has been given a virtual-death sentence better known as a post FedEx Cup date:

The negotiations were ongoing throughout the last part of December and surprisingly remained as secret as Tiger Woods' cell phone number -- most of the players, tournament directors and sponsors are still not aware of all the details. In fact, some aspects of the contracts -- such as which events will make up the post Tour Championship part of the schedule and which networks will broadcast them -- are ongoing. 

The players don't know. Eh, why should they? It's only their tour. The commissioner works for them. Right?

What Will Phil Say Next?

phil pga.jpgShocking as it may seem, I don't TiVo Golf Hawaii hosted by Mark Rolfing. But at JWH's suggestion I recorded the current edition. And boy was it grand.

Attention golf writers who use this free-of-charge transcription work: I will cite your stories when the IRS questions my TiVo write-off.

Okay here's the deal. Mark Rolfing, interviewing Phil in Hawaii during November's Grand Slam of Golf, starts by saying how the 2007 television contract is the talk of the Tour. Then...

MARK ROLFING: Have you been part of the planning process?

PHIL MICKELSON: No, I haven’t. I was asked maybe a year and a half ago what I thought about certain ideas and I don’t necessarily support what’s going on, but what I feel needs to happen is we need to have the top guys playing against each other more often. And we’ll do that 2 or 3 more times. So that is a good thing. But in my opinion it’s really a half-hearted attempt at what we need to do which is force the top players to play against each other on specific tournaments 12 times a year in addition to the four majors, the Players Championship, and the three World Golf Championships. And that would give us 20 events where the top players play against each other.
But Mark, what happens is the sponsors love it because they know what they are buying. They are paying more money but are guaranteed that the top 100 guys are going to play against each other. The fans love it because that’s what they want to see. And television loves it because that’s what they want to buy. But the reason it doesn’t happen is because the 150 guys on Tour who are fighting to keep their card have such a strong voice that it stops anything like that going through. So 150 guys control and can stop what would ultimately be good for the Tour in my opinion, and that’s to stand up to the top players and force them to play these specific events, but reward them by having a larger purse because you can sell it to sponsors, television and the fans a lot easier.

MARK ROLFING: How would you force top players to play in these 12 tournaments, let’s say?
PHIL MICKELSON: Well the Tour needs to be run independent of the players. And run as an entity just like Nascar does with their drivers. They force them to play certain events and you stand up and say, “look, if you don’t play these 12 events, and you don’t play the four majors and you don’t play the Players Championship and the World Golf Championship’s, you don’t have a card next year. You can’t play any of them.” Of course we’re going to play.

MARK ROLFING: Phil, if you were talking to the player on the PGA Tour that’s 100th on the money list instead of me today, how would you convince them that it might be the best thing for them, what you are talking about.

PHIL MICKELSON: Well I shouldn’t have to Mark. The commissioner needs to step up and make the statement that this is in the best interest of the Tour to have the top guys play against each other more often and it shouldn’t be his concern to try to justify it to everybody. He needs to stand up and run the Tour like a business, in the best interest of the Tour, in the best interest of the sponsors, television and the fans. And not have to justify it to other players or even the top players. He should stand up….and when it’s run like a business, we all need to buy into it and go with it. That includes for me being told what tournaments I have to play in. I’m fine with that because it’s in the best interests of the Tour, and I’m rewarded by it because we’re able to sell those tournaments for more money and ultimately play for a larger purse.

If you want to see this for yourself, the program airs a couple more times (listed here) between now and Christmas day.

And I've started a thread under Discuss Tournaments to chat about Phil's comments.

Hold The Commissioner's Calls Today

Nascar's new TV deal: $4.5 billion for 8 years.

"The bottom line is, Nascar is a national sport with very large ratings," George Bodenheimer, ESPN and ABC Sports president, said yesterday in a conference call with reporters. "Secondly, obviously the sport is extremely fan-friendly and sponsor-friendly. We're very bullish on the sales prospects of this property."

And...

"We at Fox believed in it, the folks at Nascar preached it and it was just a matter of Madison Avenue catching up, and it was really in black and white," said Ed Goren, the president of Fox Sports. "All they had to do was see the ratings that Nascar was generating on Fox."

No mention of demographics. Just ratings.

Tour TV Deal Perspectives

A few weeks removed from Tim Finchem's impactful press conference and it appears some perspective has set in. First there was this quote from Greg Norman, Chairman Emeritus of Finchem's Fans:  

The PGA Tour plays things close to the chest. You really don't know what's going on until [Tim] Finchem decides to say something and then when he says something he really doesn't tell you anyway.

And Ron Sirak puts the PGA Tour's network problems this way:

...tour players should volunteer to freeze purses for the duration of the next TV contract, which will go into effect in 2007, and agree to play each tour event at least once during that four-year cycle.Golf simply has priced itself out of the market with the networks, and schedule manipulation will not make that reality go away.

Points Race Mess?

Doug Ferguson writes about the debacle that the 2006 LPGA points race will be, at least in the context of the 2005 season.

Annika Sorenstam had the trophy at her side and spoke of her 10-win season. Had this been 2006, the $1 million payoff would have been decided between Michele Redman and Soo-Yun Kang in extra holes.

"I'm just glad it's 2005, that's all I can say," Sorenstam said.

Note from Tim Finchem to personal assistant #3: make sure Dick Ebersol does not see this story.