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NFL internet deal with CBS, AOL, Sportsline

The National Football League has reached an Internet rights deal with CBS, America Online Inc, and SportsLine.com Inc. to market and promote professional football.

Under the agreement, SportsLine, the sports Web site, will produce and host NFL.com, the official site of the 32-team league. The four partners will also explore additional opportunities in technology-based media.
The new deal, which is reportedly worth about $300 million over five years, replaces the $10 million, three-year contract the league had since 1998 with Walt Disney Co.'s ESPN.com.
The new partnership will include online cross-promotion and marketing of the NFL with America Online, the subsidiary of AOL Time Warner Inc., which also owns CNN, HBO and Time magazine, and with CBS, the TV and radio group owned by Viacom Inc, which currently broadcasts some league games in a $4 billion deal with the NFL. It also will take advantage of Viacom's other media properties, which include Paramount Studios and MTV, VH1 and the Nickelodeon cable TV channels.
"We are pleased with this new relationship that combines the excitement of the NFL with equally exciting global partners," said NFL Commissioner Paul Tagliabue. He gave no financial or other details of the agreement.
A spokesman for the league was not immediately available for comment, but the New York Times quoted an NFL executive as saying the league will get an estimated $110 million in cash and at least $200 million in non-cash value over five years from the AOL Time Warner, Sportsline.com, Viacom consortium.
"As a broadcast partner of the NFL, it is very exciting to now be partners on the Internet and various other new media initiatives," said Sean McManus, president of CBS Sports. "The opportunity for growth in these areas is virtually unlimited."
Barry Schuler, chairman and chief executive of America Online, said, "Working with the NFL, CBS and SportsLine.com, we're going to bring AOL members and other NFL fans news, updates, game and player information and much more."
Under the new partnership, AOL will become the Official Internet Service Provider of the NFL and be promoted in NFL games telecasts on CBS and on other NFL media and events. The NFL Internet Network will be promoted extensively through AOL's Sports Channel, Kids Channel, Teen Channel and across AOL interactive brands including Netscape, ICQ and CompuServe.
AOL will also offer its members special NFL content including video clips, contests and sweepstakes.
SportsLine.com will manage all media sales and direct marketing services for NFL.com and the other related sites in coordination with the NFL and will create packages for advertisers and NFL sponsors. E-commerce will continue to be handled by e-Venator.