Rumor: Fox Sports Canada / FSR in trouble?

Discussion in 'TV, Satellite & Radio' started by blackhornet, Apr 14, 2009.

  1. blackhornet

    blackhornet Member

    Jun 26, 2008
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    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.
     
  2. huhe888

    huhe888 Red Card

    Oct 3, 2007
    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.
     
  3. djpower

    djpower Moderator
    Staff Member

    Nov 9, 2005
    Victoria, Australia
    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
     
  4. huhe888

    huhe888 Red Card

    Oct 3, 2007
  5. djpower

    djpower Moderator
    Staff Member

    Nov 9, 2005
    Victoria, Australia
  6. huhe888

    huhe888 Red Card

    Oct 3, 2007
    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.
     
  7. SAFC Yank

    SAFC Yank Member

    May 15, 2007
    Bellingham, WA
    Club:
    Sunderland AFC
    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.
     
  8. Rivaldinho

    Rivaldinho Member

    Jan 26, 2003
    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.
     
  9. huhe888

    huhe888 Red Card

    Oct 3, 2007
  10. Rivaldinho

    Rivaldinho Member

    Jan 26, 2003
    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/
     
  11. Hellas04

    Hellas04 Guest

    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?!
     
  12. huhe888

    huhe888 Red Card

    Oct 3, 2007
    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.
     
  13. blackhornet

    blackhornet Member

    Jun 26, 2008
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    do they do mark to market in Canada too?
     
  14. Rivaldinho

    Rivaldinho Member

    Jan 26, 2003
    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.
     
  15. huhe888

    huhe888 Red Card

    Oct 3, 2007
  16. huhe888

    huhe888 Red Card

    Oct 3, 2007
    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.
     
  17. Rivaldinho

    Rivaldinho Member

    Jan 26, 2003
    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.
     
  18. 7spencer7

    7spencer7 Member

    Mar 25, 2008
    Outside Boston
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    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.
     
  19. aerez

    aerez Member

    Jul 8, 2006
    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.
     
  20. blackhornet

    blackhornet Member

    Jun 26, 2008
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    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.
     
  21. TOTC

    TOTC Member

    Feb 20, 2001
    Laurel, MD, USA
    What else was CanWest dealing in that induced two BILLION dollars in losses over six months?
     
  22. Rivaldinho

    Rivaldinho Member

    Jan 26, 2003
    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.
     

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