Source : Toronto Star

by Chris Zelkovich

CTV is promising that its takeover of TSN will guarantee a Canadian-controlled network that will boost amateur sports and benefit both viewers and rights holders.

In its brief to the Canadian Radio-television and Telecommunications Commission (CRTC) in preparation for hearings that begin Dec. 6, CTV notes that its purchase of TSN owner NetStar Communications will reduce the influence of American partner ESPN from 32 per cent of voting shares to 20 per cent.

But painting a rosy picture and convincing the CRTC that the deal is good for Canadians aren’t the same thing.

“On paper, it looks like ESPN’s influence has been influenced, but a lot of people find it hard to believe (ESPN owner) Disney is going to accept less control,” said one industry source.

CTV is adamant that its 80 per cent control of voting shares will guarantee it is in the driver’s seat.

"Programming has to be in the control of Canadians,” said Robin Fillingham, CTV’s chief financial officer.

CTV is also sticking to its plan to drop the TSN name and call the network ESPN Canada.

CTV’s biggest hurdle may be over rights.  Major League Baseball and Maple Leaf Sports and Entertainment have indicated they will oppose the deal because they fear reduced competition will cut rights fees.

“The biggest problem with this deal is that it will reduce competition for Canadian rights fees,” said Ian Morrison, spokesman for the lobby group, Friends of Canadian Broadcasting. “It will save money for (CTV) and cost the teams a lot of money.”

The brief devotes three pages to explaining how rights fees will be maintained, noting that TSN and Sportsnet aren’t the only networks involved in competing for sports.  Included in CTV’s list of specialty channels licensed to broadcast sports are Prime and the Women’s Television Network, neither of which has ever aired a live sporting event.

Morrison said his group will be among those opposing the deal, which saw CTV pay $908 million NetStar, which includes The Discovery Channel among other properties.

CTV’s brief says the deal will:

	Make CTV Sportsnet and the Outdoor Life Network part of NetStar, with NetStar controlling programming for those two networks plus TSN and Discovery
	Assure spending $2.77 million over five years toward the production of amateur sports events that would otherwise receive no national TV exposure.  ESPN will provide international exposure for some of these events.
	Extend Canada Games coverage by increasing air time on TSN and French-language sister RDS and airing some events on SportsNet.
	Create the “Canada Cup of Women’s Hockey,” with TSN and RDS broadcasting all four games of the international tournament and ESPN carrying some to the rest of the world.
	<?XML:NAMESPACE PREFIX = O />Spend $4.5 million over five years to buy and produce documentaries on Canadian sports figures.

© The Toronto Star