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DISNEY MAY TAKE SHOT AT HOCKEY.


Byline: Dave McNary Daily News Staff Writer

The Walt Disney Co., underscoring the soaring value of TV sports programs, reportedly is bidding between $400 million and $600 million for five years of U.S. broadcast rights to the National Hockey League National Hockey League (NHL)

Organization of professional North American ice-hockey teams. The league was formed in 1917 by five Canadian teams; the first U.S. team, the Boston Bruins, was added in 1924. It today consists of 30 teams in two conferences and six divisions.
.

If News Corp.'s Fox doesn't top the bid, Disney would pay double the current rate to broadcast games on its ABC ABC
 in full American Broadcasting Co.

Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928.
 and ESPN ESPN Entertainment and Sports Programming Network  networks between 1999 and 2004. Fox will pay $45 million for national broadcasts during 1998-99 while ESPN will pay $15 million.

Analysts endorsed Disney's move even though hockey ratings have declined or been flat in recent years.

``The issue is that with a proliferation of TV channels, how do you create an identity to separate yourselves?'' said marketing consultant Dean Bonham Bonham can refer to:
  • Bonhams, a British auction house
  • Dr. Bonham's Case, a legal case decided in 1610 concerning the supremacy of the common law in England
  • Bonham, Texas, USA
  • Bonham (band), heavy metal band formed by Jason Bonham
People:
. ``Sports is far and away the most attractive way to either create, or in ESPN's case, maintain a marketing tool.''

Analyst John Mansell of Paul Kagan Associates said ratings have been unimpressive due to the massive increase in competing sports programming in recent years. NHL NHL Non-Hodgkin's lymphoma, see there  ratings should rise, he said, because of the addition of four new franchises over the next three years and young viewers pulled in by the growth of in-line skating.

Fox and Disney had no comment on attributed reports of the offer. The NHL has an Aug. 14 deadline for offers, but marketing consultant David Carter believes Disney's offer might represent a pre-emptive strike.

``I don't think Fox needs to make a counteroffer In contract law, a proposal made in response to an original offer modifying its terms, but which has the legal effect of rejecting it.

A counteroffer normally terminates the original offer, but the original offer remains open for acceptance if the counteroffer expressly
, since losing the NHL is not a significant loss in terms of their credibility as a network,'' Carter said. ``Owning the NFL NFL
abbr.
National Football League

NFL (US) n abbr (= National Football League) → Fußball-Nationalliga
 rights during the last four years is what legitimatized Fox.''

Analysts said the most likely scenario will be for Disney to focus on its national networks, and Fox on its 22 regional sports networks. Disney pulled the plug last month on plans for a regional network, ESPN West, and agreed to a 10-year deal for its Mighty Ducks hockey team and Anaheim Angels baseball team to be carried on the Fox Sports West networks.

``What's happening is that (Disney Chairman) Michael Eisner is picking his spots carefully,'' Bonham said. ``I don't think Disney has to be overly concerned about a $400 million commitment.''
COPYRIGHT 1998 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Geographic Code:1USA
Date:Aug 6, 1998
Words:368
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