ESPN Goes Deep In Europe
Storms Continent With Purchase of U.S.-Sports Channel
By Mike Reynolds -- Multichannel News, 12/10/2006 7:00:00 PM
Having conquered the U.S. sports-television field, ESPN is looking to expand its presence in Europe.
The total sports network last week agreed to acquire NASN, the only European channel dedicated to North American sports, from Setanta Sport Holdings and Benchmark Capital Europe, officials said last Tuesday.
Terms of the agreement were not disclosed, but The Wall Street Journal valued the transaction at somewhere between $107 million and $120 million. The deal is expected to close early next year, subject to regulatory approvals.
NASN, which currently reaches more than 6 million households in 26 European countries, is the only network on the Continent completely dedicated to North American sports, airing more than 800 live and as-live sports events annually.
WHAT IT CARRIES
It has the rights to more than 200 live National Hockey League contests, including the All-Star Game and every game of the Stanley Cup Playoffs; 60 live National Football League games in certain markets, including the playoffs and Super Bowl; and 250 live Major League Baseball games, including the All-Star Game and World Series.
Subscribers can also view college-basketball action, including the NCAA Tournament, as well as NCAA football, including the Bowl Championship Series. ESPN’s future plans include bringing branding to the network.
Setanta was a launch investor in NASN in October 2002, along with Vulcan European Media. In June 2005, Vulcan sold out to Setanta, which then sold a 50% interest to venture-capital firm Benchmark Capital Europe. Setanta and Benchmark focused their efforts over the past 18 months on helping NASN to secure the best content and distribution deals across Europe.
Russell Wolff, managing director of ESPN International, said ESPN sold its 30% stake in Eurosport, a pan-European sports network, in 2001. “We didn’t like the business model,” he said.
The following year, though, with the launch of ESPN Classic, ESPN has operated a variety of ESPN-branded businesses in Europe. ESPN Classic currently serves 20 million subscribers in more than 40 countries.
ESPN also provides programming to Europe through its syndication arm via more than 90 broadcasters.
ESPNsoccernet, the leading English-language soccer-news site in the world, also is based in ESPN’s London office.
Although he stopped short of making any distribution predictions, Wolff called the European market “vibrant for the multichannel universe. Digital cable is really kicking. There is a lot of upside.”
When the deal closes, ESPN will own or have an equity position in 31 international TV networks, serving more than 190 countries and territories.
Wolff said the company would look to adapt the multiplatform approach ESPN has utilized in the U.S., relative to broadband, wireless and high-definition plays, on a market-by market basis. He noted ESPN would look to create a print magazine in countries where it makes sense, and figures to be active in the live-event arena. “We just held the X Games in Dubai. We’re looking for opportunities in Europe.”
Asked about the NBA hole in NASN’s lineup, Wolff said. “We’re always interested in content. There probably will be an opportunity to do something.”
NBA, NHL POPULAR
Amory Schwartz, co-founder and CEO of NASN, said that in some nations, like France and Greece, the NBA is huge. Although he wouldn’t specify the areas, he noted that NBA rights in different countries would be expiring over the next few years.
Schwartz believes that ESPN’s ownership will push NASN to a new level. “The acquisition by ESPN, which has been a tough competitor to us, should enable the network to gain more rights and reach even more sports fans in Europe,” he said.
He said much of NASN’s growth had occurred since August, especially in the Nordic countries, where the network’s NHL package has proven to be very attractive. “In some months in some of those countries, the NHL is the No. 1 sport, ahead of soccer.”
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