Source : Toronto Star

Leafs stay neutral, Jays, CBC oppose sports `monopoly'

by Chris Zelkovich

The battle lines have been drawn in CTV's attempt to take over TSN, with only one league and a handful of teams opposing the deal.

When CTV appears before the Canadian Radio-television and Telecommunications Commission next month, it will come armed with a load of support letters from virtually every facet of amateur sport in Canada.

The network, which is seeking federal approval to take over NetStar Communications and its sports broadcasting subsidiaries TSN and French-language RDS, will also have support from a few other corners, too.

Among those filing letters of support with the CRTC were the Canadian Football League, the Ottawa Senators, Tennis Canada, the International Olympic Committee and several sports heavyweights, most notably Wayne Gretzky and Jean Beliveau.

The more than 200 letters of support greatly outweigh opponents of the acquisition, but those objectors carry substantial weight. Included among the opponents are Major League Baseball, the Toronto Blue Jays, the Vancouver Canucks, Vancouver Grizzlies and the CBC.

Conspicuous by its absence is Maple Leaf Sports and Entertainment, owner of the Leafs and Raptors.

"We're sitting back and watching," said Maple Leaf vice-president Tom Anselmi.

The arguments expressed in the briefs fall basically into two camps, with those in favour saying the takeover will increase television exposure for Canadian sports while those opposing it arguing that a monopoly will result, hurting Canadian teams, raising ticket prices and reducing the number of televised games.

"We believe (the takeover) will give us increased opportunities to promote, market and expose our product to all Canadians," wrote CFL president Jeff Giles, whose letter states that the deal could result in games being broadcast regionally.

IOC member Dick Pound wrote that the deal, which would see CTV control TSN, Sportsnet, RDS and the Outdoor Life Network, "cannot help but provide an unprecedented platform for the coverage of sport events, including amateur sport ... for the benefit of the Canadian public."

The letters of support come from the likes of provincial amateur sports associations, the Canadian Hockey League, Rugby Canada, the Canadian Soccer Association, the Canadian Curling Association as well as independent producers, Canada's two satellite companies and various ad agencies. Almost all have some dealings with the networks involved.

The one that seems to come from left field is the letter from Gretzky, who writes that "I am especially interested in the benefits this stronger Canadian broadcasting organization will bring to (hockey.) ... From the solid grassroots relationship TSN has built with the CHA, to a strong schedule of regional and national NHL games that will result, CTV and NetStar will be a winning combination for hockey and Canadians."

The most hard-hitting opposition comes from Major League Baseball, which criticizes the deal on several fronts, even questioning how much control U.S. partner ESPN will have over the new company.

Its brief says the deal "will be seriously detrimental to Canadian sports and Canadian sports fans and contrary to the public interest," noting that it will lower rights fees and the quality of broadcasts.

It says that approving the deal will destroy what the CRTC attempted to create when it licensed Sportsnet in 1996: a "competitive sports programming entity."

Baseball also raises the spectre of foreign control, questioning how much influence will be wielded by ESPN, which owns 32 per cent of NetStar. CTV plans to change TSN's name to ESPN Canada if the deal is approved.

"ESPN's influence in the affairs of NetStar cannot do anything but increase as a result," the brief states.

The Blue Jays' brief, which echoes many of the same arguments, goes one step further, noting that "an uncompetitive market may ultimately contribute to the demise of professional sports teams in Canada."

It also says that without competition for rights, the Jays will be forced to make fewer games available on TV.

The lack of competition is also the main impetus for CBC's call for the CRTC to order CTV to sell off either TSN or Sportsnet.

Its brief says that the deal would remove sports programming from free television and restrict it to expensive cable stations, reduce amateur sports exposure, reduce rights and thus hurt pro teams and give CTV a significant advantage over all competitors.

The CBC estimates that CTV would control 95 per cent of all sports coverage in Canada, "meaning an effective end to competition."

The lobby group Friends of Canadian Broadcasting also calls for one of the sports networks to be sold to avoid creating "a multinational monopoly."

"Permitting TSN and Sportsnet to operate under one roof would turn back the clock to the benefit of CTV shareholders, at the expense of viewers, rights holders and other broadcasters," it notes.

Many of those who filed briefs will appear at the CRTC hearings starting Dec. 6 in Hull, Que.

A decision is expected no earlier than the end of February.

© The Toronto Star