this was "tweeted" by Jeremy St. Louis today: RT @jrstlouis: Uncertain future for FSR folks... http://tinyurl.com/csz2y8 Unprofessional Foul: Fox Soccer Report's Parent Company Is in Trouble It basically goes on to speculate on the future of Fox Sports World Canada and/or the Fox Soccer Report - whether it will move to LA or be bought out by FSI. I suppose we all saw this coming, but for JSL to "broadcast" it - I'm wondering if something more immediate is happening/has happened.
The asset "writedowns", isolated by themselves, are not the problem if debt covenants are not tied to the book value of the assets. The big problem for Canwest Global is the CDN$30 million in interest payment due on 21 April 2009. One has to believe that Canwest Global will have to sell some "crown jewel" assets in order to reduce the debt load on its balance sheet. One also has to wonder how much Canwest Global can raise by selling the FOX Sports World Canada business, which consists of the CRTC Category 2 digital TV licence for a soccer/rugby/cricket sports TV channel, and a programming licence to sell the rights to FOX Soccer Report to FOX Sports International in the U.S. market. I just don't see any Canadian media company having an immediate need to purchase the FOX Sports World Canada business right now, even at a fire sale price.
I have been keeping a eye on CanWest of late as it has interest to me as they own controlling stakes in Network 10 (57%) in Australia which includes there new digital Sports channel in ONE HD which I am still waiting for my regional affiliated station to offer me. Reading a local newspaper article here there keen on keeping Network 10 / ONE. Even though ONE has been criticised for not showing any soccer apart from in there nightly sports report this is putting major pressure on pay tv and mostly ESPN by tapping heavily into the American sports which I believe will keep ESPN interested in keeping most of there soccer rights as there rights as being the main station to show american sports has been heavily cheapened by them now being offered on a Free-to-air HD channel
I understand that there are couple of business news articles on the Canwest Global situation may be of interest to BigSoccer.com users. From the 11 April 2009 edition of the Winnipeg Free Press: http://www.winnipegfreepress.com/business/its-sad-the-company-is-done-42843347.html From the 14 April 2009 edition of the Toronto Star: http://www.thestar.com/Business/article/617882
We have known for some time that the ONLY product that brings in any revenue (in addition to the a la carte subscriber fees) to the FOX Sports World Canada business is the licensing of FOX Soccer Report to FOX Soccer Channel (FOX Sports International) in the U.S. market. I would suspect that Canwest Global may opt to shut down FOX Sports World Canada, perhaps on 30 September 2009 when the annual FOX Soccer Report licensing agreement expires, or perhaps sooner i.e. on 31 May 2009, when the 2008-2009 Italian Serie A season ends and viewers are expected to unsubscribe en masse.
Reading the story from the Winnipeg newspaper, it would appear that any sale of FSW Canada would have to be as part of the larger package of specialty channels. As mentioned above, it has almost no value on its own.
Don't worry. Fox Sports World Canada and Fox Soccer Report aren't going anywhere. Canwest just has a debt problem. Most of their businesses are operating at a profit, FSWC included. If Canwest doesn't make it through this debt crisis almost all of their properties will be sold and continue operating. FSW Canada would sell for more than $10 million. One interesting twist is that because of Canwest's financial arrangements, the infamous Goldman Sachs could end up in control of Canwest's specialty channels.
Article on Canwest Global from the 16 April 2009 edition of the (Toronto) Globe and Mail: http://www.theglobeandmail.com/servlet/story/LAC.20090416.RWILLIS16ART1912/TPStory/Business
David Sternberg, the executive vice president and general manager of Fox Sports International, commented on the Fox Soccer Report in a Tuesday interview with Jack Bell of the NY Times. “It has been a mainstay of our schedule for several years,” Sternberg said. “From a production point of view, it’s made strides. We’ll keep working on it, nurturing the talent we have there. We plan for it to remain in Winnipeg. It’s a cost-effective place to produce the show.” http://goal.blogs.nytimes.com/2009/04/17/the-skinny-on-champions-league-on-fox/
Just a debt problem huh?! Actually they are on the verge of collapse and probably would have but the banks just keep giving them extensions instead of pulling the plug because if they do they will get nowhere near the value of the money owed to them by selling off Canwest assets. Due to the recession, the assets (basically their specialty channels) will not bring in as much money as they would if the economy were booming. So its a waiting game and extension after extension. Eventually the plug will be pulled and Canwest will be no more. How do you know that all their properties will continue to operate even if they are sold? I think some, like FSWC, could be shut down, its a useless channel as is right now with very little live programming aside from Serie A. Not to mention you already have 2 other soccer channels in Canada (Setanta Sports & GolTV) so no need for a third one. The only one I can see picking it up would be Telelatino, if they are interested?!
So much for the April 21 "deadline" for Canwest Global. The big banks are all screwed because they 1) are stuffed to the gills with bad debts and 2) are scared to death of having to "mark to market" their bad debts.
I don't know that all of CanWest's properties will continue to operate, but FSWC will. It's profitable. Telelatino is a Corus channel. Corus could buy it, but my guess is it will be part of a post-bankruptcy Global TV. CTV and others would be interested too. I'll buy it, but I doubt the amount I could raise would interest CanWest.
Canwest Global got another debt extension, this time to May 5. http://www.winnipegfreepress.com/bu...debt-extension_-to-May-5_-talks-continue.html Basically, Canwest Global now holds the debtholders, notably Goldman Sachs, hostage, not the other way around. The likes of Goldman Sachs will lose big if Canwest Global has to go into liquidation and its assets have to be sold in a distressed "fire sale".
I understand that the ONLY program FOX Sports World Canada produces that generates an operating "profit" is FOX Soccer Report, and only because FOX Soccer Report is licensed to FOX Soccer Channel in the U.S. market. In other words, FOX Soccer Channel and its parent, FOX Sports International, is subsidizing the operation of FOX Sports World Canada.
I don't know how you can break down the profitability of a channel like FSWC by program. Most of its revenue comes from subscriptions. The FOX Soccer Report is the only program they sell internationally. Excluding sales of the FOX Soccer Report, they had a small loss in 2007. I haven't seen their 2008 financials, but I expect they continued to grow revenue faster than expenses and posted a small profit. FOX Sports International buys a program from FOX Sports World Canada. It is not a gift. Saying that FSI is subsidizing FSWC is wrong.
I am sure FSI pays a lot more for the program than they would if it was not branded with the Fox Soccer Channel brand.
I canceled Fox Sports Canada. They only reason for having it for me was Argentina Primera, Italian League, Uefa and FA Cup. The only thing they show is Womens, College, MLS, and Mexican league. Complete garbage, they can't even show one argentina game a week live. Fox Sports Canada is worthless.
What I find surprising is that FSWC doesn't even get the FSC programming like FFF or Super Sunday Plus. Ashamed the Canadians are missing out on Warren Barton repeatedly cut off Keith Costigan. Like Costigan's words are a shot on goal.
The reason for the big loss was a write-down of goodwill. Basically that means the newspaper chain and specialty channels they bought aren't worth what they paid for them.