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ESPN NFL Announcement Conference Call Transcript

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ESPN NFL Announcement Conference Call Transcript A full audio replay of today’s call September 8, 2011 ESPN NFL Announcement Conference Call Transcript George Bodenheimer, President of ESPN, Inc. and ABC Sports and Co-Chairman of Disney Media Networks, and NFL Commissioner Roger Goodell participated in a media conference call this morning to discuss ESPN’s new eight-year broad multiplatform extension for Monday Night Football and other NFL rights. Below is a transcript of the call. BILL HOFHEIMER: Thank you for joining us on today's call. It's fitting we're here on the first day of the regular season to make an exciting announcement between ESPN and the NFL. We have George Bodenheimer, president of ESPN and ABC Sports and co-chairman of Disney Media Networks, and NFL commissioner Roger Goodell. Commissioner Goodell, if you'd like to go ahead. COMMISSIONER GOODELL: It's obviously a great day for the NFL. I'm up in Green Bay for our kickoff game this evening. We've been working over the last several months with our partners at ESPN and excited to be able to announce the extension of our agreement with ESPN to continue their great coverage of Monday Night Football and the NFL. You all have the release, so I won't get into the details. But I think the most important thing for the NFL is that not only are we continuing this great partnership but we are working together to bring more football to more fans and on more platforms. We're proud of our relationship with ESPN. They do a fantastic job of presenting the NFL and we're grateful to Bob Iger and George Bodenheimer for their leadership and we look forward to continuing this great partnership. GEORGE BODENHEIMER: I'd like to thank all of you for being with us this morning and I want to also obviously thank Roger Goodell and the NFL for three decades of strong partnership. We're thrilled to be able to continue that partnership well into another decade. This agreement that we're announcing today will fuel ESPN on a year-round basis because it touches all corners of our company and supports our best available screen strategy with NFL content on TV, online and on mobile devices. Monday Night Football as you know is a top-10 TV property and wins every Monday night in all the key male demos and many nights in overall viewers, which is a remarkable achievement for the league and ESPN. Our core business is strengthened considerably with up to 500 new hours of NFL-branded content that will touch 35 different shows, ESPN programs, again on a year-round basis across all of our platforms. While this deal ostensibly begins in 2014, it has instant benefits for us right now. We do not have to wait for 2014 for this deal to start to benefit our company. For example, NFL Live expands to one hour at 4 p.m. eastern today and Monday night fans will be able to watch the game, Monday Night Football, on their iPads for the very first time. So we're very excited about the achievements in this agreement and the ability to continue to fuel our business going forward. Again, thank you for being with us today. Roger and I look forward to taking your questions. Q. George, the deal involves no playoff games at first, but lots of digital and highlight rights. What does that say about how ESPN values digital and highlight rights versus a live playoff game and would you want to become part of the Super Bowl rotation? GEORGE BODENHEIMER: I mean, overall obviously in our point of view this is a great deal for our company. As you're pointing out, the scope of digital rights we have, the length, the international expansion that we have developed here, it really fuels our company 24/7. This deal drives all of that. So I'm very excited about the opportunity to continue to expand our digital properties. Monday Night Football is obviously a TV icon and draws substantial viewership every Monday night. So we're very thrilled with the deal as it's constructed and I know it's going to be a very good deal for ESPN. As far as your last question, we're always looking to improve our product. I never say 'never'. I've been at this company over 30 years and everything has come a long way in terms of the product that's on the air. I look forward to be able to continue to improve that in the years ahead. Q. George, you sort of alluded to this earlier. In terms of why make the deal now instead of closer to the time it was going to expire after 2013. Was it to get this additional programming and highlights online as quickly as possible? Why do it now instead of two or three years from now? GEORGE BODENHEIMER: To us, our lifeblood is our programming agreements and content we have. Anytime we have an opportunity to extend an agreement like a preeminent property like NFL and Monday Night Football, you take advantage of that. Our company is always moving and growing. Whenever we can acquire new rights, we're able to exploit them, such as Monday Night Football on the iPad, which will be a great fan favorite going forward. Again, taking advantage of renewing an agreement like this when you can and it funnels right into the ESPN company which is always expanding. The whole authentication business that you're all writing about which enables cable and satellite subscribers to enjoy product on iPads and tablets, it's happening right now, and ESPN is leading the way. This contract is going to help us to continue to lead the way doing that. Q. In addition to all of the digital highlight packages, other content, what else is there that's different about this deal that the last deal didn't have that had you do it right away? GEORGE BODENHEIMER: I think the most tangible answer to that is the 500 new hours of programming that is enabled by this agreement right now, again, starting today. I mean, ESPN is a unique business in the media business. This contract will touch 35 different shows across all mediums starting later today, this afternoon. I would say that's the most tangible benefit to it. Additionally it enhances international rights that we have. ESPN is a global business and this helps grow our entire footprint around the world. Q. George, I'm wondering if you could speak both about this deal and more broadly how you view the ever-rising cost of sports rights, the NFL above all, but across your portfolio with the somewhat slower growth that you're seeing in domestic affiliate fees and advertising revenues especially with a recession on the horizon? GEORGE BODENHEIMER: First off, we pay for the value for what we get in these contracts. There's so much value for us in this contract, obviously we feel it's an incredibly good deal for our company. As far as the impact of this deal itself, there will be no NFL surcharge assessed on any distributors as a result of this contract. Our affiliate fees are already well- established in the marketplace. In that regard, we can digest this contract and begin on and continue to increase the value that we provide to the fans out there subscribing in both cable and satellite. ESPN has been the most valuable service in cable television literally for 30 years, every time a poll is taken. A product like this will only continue to enhance this and enhance the whole value proposition to cable. So I think it's a winner on all those fronts. Q. George, could you clarify for me, will ESPN eventually get playoff rights? I want to be clear about your answer on the Super Bowl as well. What additional programming do you see and will there be an opportunity to simulcast post-season on ABC? GEORGE BODENHEIMER: Well, as you can read in the release, there is an opportunity for a Wild Card game. It's the NFL's option, so it would be more appropriate for Roger to address that particular question. But there is a path to it in the agreement that we have reached. COMMISSIONER GOODELL: We have in the agreement, which spans an eight-year extension, so our agreement is over 10 years now going forward, the option to put a Wild Card game on ESPN. We'll continue to talk with them about that and make the best decision for our fans, the NFL and ESPN. I think one of the great things about our relationship with ESPN is that we have been true partners and tried to find ways to expand our relationship and improve our relationship. I think that's been great for ESPN viewers and NFL fans. We've been able to do some important things to promote the game and expand our business opportunities. This is just one opportunity that we do have in the context of this agreement. Q. Roger, obviously the first Monday we have two games. Is that something we might see more of in the future? COMMISSIONER GOODELL: No, I don't anticipate that. We have that on the opening weekend, one to celebrate the kickoff of the season, but two to avoid having a Monday Night Football game on the last weekend of the regular season going into playoffs, which creates all kinds of competitive issues.
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