CBS’ Downfall: Fox’s Money, NBC’s Agreement

First came the bombshell that the Fox network had wrested the NFL’s premier package, the NFC, away from CBS.

Fox simply offered more money, $100 million a year more. Business is business.

Three days later came the news that NBC had retained the AFC package, even though CBS had submitted what appeared to be an 11th-hour offer that topped NBC’s by $30 million a year.

This wasn’t a case of too little, it was a case of too late.

“At no time before last Friday did CBS say they were interested in the AFC package,” said Joe Browne, NFL vice president for communications. “After saying no to the AFC for weeks, they became interested after losing the NFC to Fox. By then, frankly, their offer was too late.”

CBS tried a similar ploy last May when, five days after baseball had announced a new partnership with ABC and NBC, it made a counteroffer. Baseball also rejected that late offer by CBS.

CBS officials have complained about unfair treatment and lack of loyalty, and the NFL Players Assn., whose members’ pay is derived largely from TV money, is unhappy that the NFL took NBC’s lower offer and is threatening to hold up the deal. The contract still must be approved by the NFL at its March meeting.

The NFL believes it did the right thing by honoring a Dec. 16 agreement with NBC. For one thing, NBC would have grounds for a lawsuit had the NFL reneged on its agreement, although NBC officials have said they would not have sued. That’s easy to say now.

But the question remains: Why did the NFL close out negotiations on the AFC package so early? By doing so, it left $120 million over four years on the table.

Although CBS believed it had the right to make an offer on the AFC, league sources said it was never the NFL’s intent to allow CBS to match NBC’s offer, or vice versa, and that the the TV committee delayed announcing NBC’s successful bid only because it wanted to examine the negotiating process over the weekend.

However, other sources indicated that a segment of NFL owners wanted to consider the CBS offer.

“We’re mystified,” said Neal Pilson, president of CBS sports. “We don’t understand how they can take a larger number from Fox (but) then stay frozen on an agreement with NBC when a higher number had been made by us.”

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With Fox contributing $1.58 billion over four years, the NFL’s new television contract, which goes into effect next season, will pay the league a total of $4.4 billion. That’s a 20% increase over the previous $3.6-billion, four-year contract that expires at the end of this season.

The new contract will raise each team’s television revenue from $32.5 million a season to $39.2 million.

So the players’ union doesn’t have too much to complain about, particularly because the added revenue will raise the salary cap that goes into effect next season.

“We feel the overall deal is a very sound one,” said Val Pinchbeck, the NFL’s vice president for broadcasting. “As unhappy as everyone in the league is for not having CBS in the mix, there are great positives to having Fox.”

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The picture began taking shape on Dec. 7, after Fox had made an impressive presentation to members of the NFL’s television committee in Dallas.

The TV committee is chaired by Commissioner Paul Tagliabue and includes owners Tom Benson of New Orleans, Pat Bowlen of Denver, Roger Headrick of Minnesota, Leon Hess of the New York Jets and Jerry Jones of Dallas.

Fox, which was unsuccessful in bids for a piece of the NFL contract in both 1987 and ‘90, this time was loaded with ammunition and, more important, big bucks.

Fox offered $210 million a year for the AFC and $300 million for the NFC.

Because this is a negotiation and not a bidding process, the NFL went to NBC and CBS on Dec. 10 and told them of the offers.

NBC, according to sources, increased its AFC offer from $188 million to $217 million.

CBS stood pat on the NFC at $295 million, figuring that the NFL would accept a lower offer from the incumbent.

But Fox went for the bomb, countering with its $395-million offer.

“There is no question that if CBS had been $20 million lower than us, the NFL would have taken CBS,” Fox Chairman Rupert Murdoch said.

“We had pretty clear indications that CBS was prepared to go into the 300s. We didn’t know what that meant, though--310, 350. What? When you start thinking that way, you can get edged out.”

Getting the NFL was a stroke of genius for 7-year-old Fox, giving it instant credibility and establishing it as a fourth major network.

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Fox now must put production and announcing teams together.

All indications are that Fox will spare no expense. The network convinced the NFL TV committee with its presentation in Dallas that production quality will be high.

Fox has already named a president for it new sports division, David Hill, an Australian who is the president of Murdoch’s soccer-oriented Sky Sports channel in England. He will soon move to Los Angeles.

Hill’s first step probably will be to name an executive producer. Several people with network experience are available and are said to be politicking for the job.

Michael Weisman, formerly of NBC, has the qualifications and is generally well liked and respected in the industry.

Terry O’Neil, who succeeded Weisman at NBC, is also qualified but doesn’t have Weisman’s skill with people.

Geoff Mason, who was unpopular among the ranks when he was at ABC and NBC, would seem to be a longshot, but he is said to be a friend of Hill.

Ted Shaker, formerly of CBS, is another longshot.

As for announcers, Murdoch has already said he would like John Madden on the Fox team, as well as other CBS personnel.

“We’d look for the best on-air talent that’s available, and we’d add to that, I hope,” Murdoch said. “I think football, and particularly CBS’ presentation of it, is about as good an example of sports broadcasting as any in the world today. Our absolute priority would be to be at least that good.”

Madden will become a free agent after the season, and his partner, Pat Summerall, has a contract that gives him an out, because CBS no longer has pro football.

“I’d like to continue doing football,” Summerall told the Washington Post. “I’d like to continue working with John Madden. And I have a contract with CBS that says if by a certain date we don’t have pro football, we have 30 days to negotiate a new contract.

“If I don’t like what they offer and they don’t like what I’m looking for, I guess I’d be a free agent.”

The announcing team of Summerall and Madden would certainly give the network a good foundation on which to build.

TV-Radio Notes

Contrary to reports, the sale of KMPC to Cap Cities is not off, it is just going slower than expected. . . . Morale at KMPC is up, as is the overall sound of the station, and program director Scott O’Neil deserves the credit for improving both areas. O’Neil brought in Charlie Tuna, paired Doug Krikorian with Brian Golden and has been using rising star Mike Lamb extensively. He has also made a number of minority hires, including former Channel 4 sports producer Andre Aldrich.

Meanwhile, all is not well at XTRA. Popular morning co-hosts Steve Hartman and Chet Forte are said to be feuding with program director Howard Freedman, and there’s talk that the station’s entertaining nighttime co-hosts, Steve Mason and Rick Schwartz, may replace them. Mason and Schwartz will fill in for the vacationing Hartman and Forte the next two weeks. The question is, will Hartman and Forte return after their vacations?

Rupert Murdoch’s Sky Sports television in Great Britain is involved in a consortium of international television entities--ABC is another--that has joined forces with International Management Group to create a $2-million golf tournament in which a team from the southern hemisphere will challenge the Ryder Cup winners. The event will be held every other year. The first one is planned for sometime late next year.

Besides the Blue-Gray game on Christmas morning at 9, ABC will also offer the Aloha Bowl, featuring Colorado against Fresno State, at 12:30 p.m. . . . XTRA and San Bernardino’s KMEN will carry the Malibu-based Radio Sports Creation network’s coverage of the Blue-Gray game, as well as a one-hour bowl preview with Randy Rosenbloom and Warren Williamson at 8 a.m. . . . KABC will carry a GGP-produced bowl preview show, with Al Trautwig as host, Saturday at 4 p.m. Among the guests will be Bo Schembechler and Charlie Ward. . . . KMPC will broadcast today’s John Hancock Bowl and Saturday’s Aloha Bowl.

NBC will open its NBA coverage on Christmas Day with Houston at Phoenix at 11:30 a.m. and Orlando at Chicago at 5:30 p.m. When NBC made up the schedule, it believed that Michael Jordan would be playing for the Bulls. . . . Paul Sunderland, who will work as a sideline reporter for NBC at Saturday’s Houston-Phoenix game, continues to have a full broadcasting plate. The former Olympic volleyball star who lives in Malibu will also work as a sideline reporter for NBC at the Fiesta Bowl on New Year’s Day, and he does Pacific 10 basketball for ESPN and the Prime Network.