Source : Globe & Mail

In 1983, a decision made by the CBC set off a series of events that led to the network suffering its most devastating loss of Olympic television rights.

The defeat laid the foundation for an intense and continuing rivalry between the CBC and CTV. Today, that fight will resume in Lausanne, Switzerland, when bids are submitted to the International Olympic Committee for Canadian TV rights to the 2010 Winter Olympics in Vancouver and the 2012 Summer Olympics.

This time, CTV is aligned with Rogers Media, and the CBC is teamed with The Score sports channel. But the prize is the same as it was 21 years ago — television rights to a valuable domestic Games.

Unlike the Calgary 1988 experience, the CBC is taking nothing for granted. Nancy Lee, the head of CBC Sports, feels her network has a strong bid, but recognizes the powerful alliance built by CTV and Rogers. She doesn't buy into the theory there's enmity between the two sides.

"It's competitive, of course it's competitive," she said. "That's what the business is. But I don't think there's bad blood."

Perhaps not, but there were exchanges last week, not for attribution, between the CBC and the CTV-Rogers group.

Each side expressed concern that the other would overbid.

CBC sources talked about a potentially "irresponsible" offer from CTV-Rogers. At CTV and Rogers, there was talk of the CBC, a publicly supported network, using the "national treasury" to finance an extravagant bid.

The rhetoric underlined the real message: A lot is at stake. Vancouver is a potential promotional and advertising bonanza for the winning network. In the 500-channel universe, Olympics are one of the few remaining blue-ribbon properties that unite all demographics, men and women, children and adults.

The Olympics are appointment programming in a world of diversity and fragmentation, said Gary Maavara, a former CTV executive. "Everybody still wants to see a national hero win the event. There's no question it's of great value."

Maavara, now a vice-president for Corus Entertainment, expects each side to put big dollars on the table. Analysts have estimated Vancouver's TV rights to be worth 50 to 60 per cent more than the $45-million (all figures U.S.) that the CBC paid for the 2008 Summer Olympics in Beijing. That's at least $70-million. The 2012 Summer Olympics will sell for about $50-million.

"It'll be a shootout," Maavara said. "Rogers has made no secret of the fact that it's keen to get it. And the CBC doesn't want to lose it. It will be a big number."

Whatever happens today, the story will need plenty of drama to match the intrigue that led up to the Calgary bid.

Peter Sisam, a former vice-president of sales and marketing for CTV, remembers the CBC's confidence in December, 1983.

"The announcement was going to be made at four in the afternoon on a Friday," recalled Sisam, now vice-president of television for International Management Group Canada. "The CBC thought it was a slam-dunk. They were planning to go live with the announcement and then have a big show that night. They didn't think there was any way they could lose."

What made the CBC's defeat most remarkable was the fact that CTV actually suggested a partnership in which the CBC would have been a rights holder.

In the 1960s and 1970s, the two networks had competed for Olympic exclusivity. But after the CBC won the 1976 Summer Olympics in Montreal, Johnny Esaw, vice-president of sports for CTV, and his opposite at the CBC, Gordon Craig, made peace. They entered into an informal arrangement that the International Olympic Committee might have construed as collusion.

"I said to Gordon, 'Why are we allowing ourselves to be pressured into raising the rates for no reason?' " Esaw said. " 'Why don't we make our bids together? We'll share the rights and keep the price down.' "

The CBC aired the Summer Games and gave CTV a one-hour nightly highlights package. CTV got the Winter Games, and provided the CBC with a highlights show.

The system worked well. But by 1983 Craig had left CBC Sports and was preparing to launch TSN. Denis Harvey had moved into the top job at CBC Television.

"I called a meeting," Esaw said. "I said let's talk about 1988. Harvey said, 'The first thing is we're not going to co-operate with you on any kind of bidding because these Games are in Canada. Therefore, they should be coming to the CBC.'

"It was an arrogant opinion," Esaw said. "They were saying, 'Forget the deal, forget that we shook hands [on the Craig-Esaw agreement]. We're walking away from it. This baby's ours.'

"I said, well, if that's the kind of game you want to play, I can play, too."

Harvey underestimated Esaw, who was a powerful figure in Canadian television. CTV produced a large amount of sports content and was noted for its figure skating coverage, a Winter Olympic staple. Esaw also had close ties to Calgary. CTV aired the Stampede each year and Esaw was friendly with Bill Pratt, the president of the Calgary organizing committee.

When he made his pitch to the Calgary committee, Esaw brought up what he felt were problems with the CBC's 1976 Olympic deal. He thought the federal government had given the network too much assistance, such as bankrolling new, expensive equipment.

"I told them the whole story," Esaw said. "They said, 'We're all private enterprisers in Calgary. We don't want to get too involved in the public purse.' I made them an offer and said it would be based on one set of books.

"They couldn't believe they would get an offer where they had control. That put the deal to bed."

CTV paid $4.3-million for domestic rights and another $39-million to be the host broadcaster. Esaw said the network, which sold its host feed to other countries, made money on the service. As well, CTV sold a nightly one-hour highlight package to the CBC for $1-million.

In subsequent years, the two networks fought it out for Olympic rights. CTV won the 1992 Summer Olympics in Barcelona and the 1994 Winter Olympics in Lillehammer, Norway. The CBC grabbed the 1992 Winter Olympics in Albertville, France, as well as the 1996 Summer Olympics in Atlanta and the 1998 Winter Olympics in Nagano, Japan. Then, in 1998, the CBC negotiated the biggest single deal to date when it bought a five-Games package — Sydney, Salt Lake, Athens, Turin and Beijing — for $160-million.

Sisam said CTV could not compete for that package because Baton Broadcasting, which then controlled CTV, was cash strapped after buying out a large stake in the company held by the Eaton family.

On the occasions the CBC lost the Olympics to CTV, CBC executives took it hard, according to Maavara, who was involved in the CTV Olympic bids in the 1980s and 1990s.

"I can tell you during my days at CTV I never felt any particular animosity in their direction, but I certainly felt theirs toward us," he said. "They'd get upset about the fact we got the rights."

At the CBC, people think the acrimony went both ways.

CTV-Rogers has an advantage in its ability to provide more platforms on which to air content. They will include CTV's main network as well as TSN, French-language RDS and TQS, CTV NewsNet and Outdoor Life Network. Rogers brings Rogers Sportsnet, its network of radio stations and two multicultural TV stations.

The CBC will counter with CBC Newsworld, CBC Radio and The Score. Its two main networks, CBC Television and Radio-Canada, have the widest English- and French-language distribution in Canada.

But when the announcement is made Monday, the bid that wrote the largest cheque will almost certainly be awarded the two Games. The winners will celebrate, the losers will move on. At a later date, the rivalry will resume.

© The Globe and Mail