Source : Globe & Mail

CTV-Rogers and CBC will soon duke it out at the IOC. Millions of dollars are at stake in the process.

Two high-powered media groups are about to go toe to toe for the biggest prize in Canadian sports television.

The CBC, which is the incumbent Olympic rights holder, will slug it out against an alliance consisting of CTV Inc. and Rogers Media for TV rights to the 2010 Vancouver Olympics as well as the 2012 Summer Games.

The two sides, which don't like each other much, will fly to Lausanne, Switzerland, next week. On Monday, Feb. 7, they will make their presentations to the International Olympic Committee. Later that day, the IOC will make its decision.

"I'm sure the bidding will be spirited," said John Cassaday, the head of Corus Entertainment, which is not part of the CBC group, but could end up carrying some Olympic content on its cable channels.

There is plenty on the line for the CBC and CTV-Rogers. For starters, the rights will be most expensive in Canadian Olympic history.

Vancouver, as a domestic Games, is extraordinarily valuable. The likely participation of National Hockey League players in an Olympic tournament, plus the push in Canada to produce the best Winter Olympic team in history will make consumer interest enormous. TV audiences could reach record highs.

Because of these factors, the winning bid for the 2010 and 2012 Games could reach $150-million.

Here's how some see it playing out. The process does not involve an auction. Each side will make its pitch to the IOC and then tell the committee what it is willing to pay for the rights.

The IOC will consider the quality of the broadcasts, distribution and promotion, but money is what will really count.

General Electric's media assets, headed by NBC, grabbed the U.S. rights to 2010 and 2012 Games not because NBC had a previous relationship with the IOC, but because it agreed to pay more than ABC or Fox Television -- $2.2-billion (U.S.).

"At the end of the day, money does talk," said Peter Sisam, vice-president of television for IMG Canada, which is assisting the IOC in the TV deal.

The CBC paid a Canadian record $45-million (U.S.) for the 2008 Beijing Olympics. Broadcasting sources peg the value of Vancouver 2010 at 50- to 60-per-cent more than Beijing or about $70-million (U.S.).

TV rights to the 2012 Olympics will go for $50-million (U.S.) or more. That adds up to a total rights fee for the two Games of at least $120-million (U.S.) or $143-million (Canadian).

To clinch the deal, the CBC or CTV-Rogers could throw in a few million more to make it an even $150-million.

Neither side will say much about their bid, but certainly the CTV-Rogers partnership is significant.

It consists of the CTV main network, CTV's sports channel, TSN, and its French-language arm, RDS, and CTV's Outdoor Life Network, which is licensed to broadcast outdoor sports.

The Rogers component is its regional sports network Rogers Sportsnet, as well its radio network, headed by the FAN 590 in Toronto, and Rogers' two multicultural stations in Toronto, which would air Olympic content.

"We feel we have a wonderful product to offer in concert with CTV," said Jan Innes, vice-president of communications for Rogers. "We're giving the IOC another choice and we think that's very important."

The CBC's potential Olympic alignments have been a well-kept secret.

By itself, it can air Olympic content on the main network, as well as CBC Newsworld, the digital channel CBC Country Canada and the corporation's national radio network.

But it's speculated the CBC could team up with The Score sports channel or Global Television. There's a precedent for an Olympic broadcaster selling a nightly highlights show to a rival network.

After CTV won the 1988 Calgary Games, it sold a one-hour prime-time package to the CBC for $1-million -- about 25 per cent of the $4.3-million that CTV paid for the Calgary TV rights.

Sisam expects the CBC to forge Olympic relationships. After all, with the addition of each Olympic media platform revenue increases. If the CBC were to sell a nightly highlights package to Global for 25 per cent of a $70-million rights fee, that would produce $18-million in revenue.

Adam Ivers, vice-president of programming for Global Television, would not comment on a possible Olympic alignment with the CBC, except to say the bidding, "should be interesting."

Another option for the CBC would be to hold off until the bidding process is over. If it were to win, then it could go to Global or CTV or Rogers to negotiate a partnership.

Would CTV or Rogers do business with the CBC after losing the bid?

There has been a good amount of animosity between the two sides.

A few months ago, the CBC asked the Competition Bureau to probe the CTV-Rogers Olympic partnership, arguing the two sides had eliminated competition by tying up Canada's two main sports channels. The bureau rejected the CBC's complaint. CTV and Rogers denounced the CBC for making the challenge.

"We're in a competitive business," Innes said.

"And that's just competition."

In other words, the dispute won't have any lasting impact. In the world of Olympic TV, personal feelings take a back seat to business arrangements.

Sisam said Internet rights will be part of the Canadian package.

Since Rogers and CTV owner Bell Canada are Internet providers, will that swing the deal in favour of CTV-Rogers?

Insiders don't see a favourite.

In this fight, the group that cuts the largest cheque will win the rights.

© The Globe and Mail