Struggle for Sportsnet is coming to a head by Chris Zelkovich

by Chris Zelkovich

A decision to be released on Monday in Hull, Que., could determine the fate of orphaned CTV Sportsnet.

Or, more likely, it could escalate what is becoming a nasty struggle over the regional all-sports channel.

If the Canadian Radio-television and Telecommunications Commission (CRTC) does the expected and approves BCE's takeover of CTV, it could open the door for Rogers Communications to grab Sportsnet, which it wants as the TV home for its recently acquired Blue Jays franchise.

At least, that's what Rogers thinks.

"They're jumping to conclusions if they believe that," says CRTC spokesperson Denis Carmel.

Rogers maintains that if BCE, which owns Bell ExpressVu satellite systems, is allowed to own a television network and a signal carrier, then a cable company shouldn't be prevented from owning control of Sportsnet.

But the CRTC has made it clear that while it doesn't want analogue suppliers like Rogers owning more than 30 per cent of any channel, it applies different rules to digital suppliers like ExpressVu. The difference, Carmel says, is that digital capacity is endless and analogue is limited, meaning the analogue supplier can take greater advantage of pricing and channel position.

"I can't see the CRTC budging on this one," says Ian Morrison, spokesperson for the non-profit lobby group Friends of Canadian Broadcasting.

If true, that's bad news for Rogers, which this week lashed out in its frustration over not being able to get its hands on Sportsnet, of which it already owns 29.9 per cent and has a right of first refusal on CTV's shares.

Rogers vice-chairman Phil Lind wrote a letter to the CRTC last month, pushing for a quick settlement to the Sportsnet situation, which was created last spring when the CRTC gave CTV one year to sell its 40-per-cent share of the channel.

When Rogers purchased the Jays in September, it said one of its main motivations was using the team's games as content for Sportsnet. At the time, Lind expressed frustration: "We're a willing buyer, but at this point (CTV) is not a willing seller."

CTV spokesperson Tom Curzon said that the network is simply looking for maximum value for Sportsnet.

The list of serious bidders was apparently reduced by one this week when CanWest Global pulled out. CEO Leonard Asper announced that he was unlikely to buy Sportsnet but was instead looking at a program-sharing agreement with Rogers, assuming Rogers gets the channel.

The CBC is also negotiating with Rogers in hopes of becoming a partner in Sportsnet.

"Everybody's talking to everybody else to figure out what's the right fit," says Nancy Lee, CBC's executive director of TV sports.

But talking is all anyone can do until Rogers either buys Sportsnet or gives up trying, which is unlikely.

"Without Sportsnet, Rogers knows the Blue Jays aren't worth much," said one industry source.

Even with Global out of the picture, there still are potential buyers:

Alliance Atlantis, which owns a good portion of The Score (Headline Sports) and numerous specialty channels. "We're always in the market for specialty channels," CEO Michael MacMillan told The Star. But when asked if he had had any talks with CTV, MacMillan said no.

Corus Entertainment: The specialty channel firm won't comment, but it faces the same hurdle as Rogers because it's owned by Shaw Cable.

TVA: Sources say the powerful Quebec broadcasting concern is interested in cracking the English market and that Sportsnet could be a good opportunity.

There's one other possibility: CTV will go back to the CRTC and either ask for an extension of its March 24 deadline to sell Sportsnet or ask it to reconsider the decision considering all the changes that have taken place in the TV business in the past year.

The CRTC could even place Sportsnet in trust while it considered the matter. 

"Asking the CRTC to reconsider a decision is pretty far-fetched," says Morrison.

© The Toronto Star