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New Media Make CBS' $6B NCAA Deal a Slam Dunk

'Crazy' contract could prove savvy

By Kevin Spak,  Newser Staff

Posted Mar 9, 2009 12:14 PM CDT
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(Newser) – In 1999, CBS’ $6 billion, 11-year pact with the NCAA for rights to the men’s basketball tournament looked drastically overpriced to many analysts. But with Selection Sunday this weekend, the deal doesn’t seem so crazy, thanks to a prescient addition: new-media rights. CBS has nearly sold out its online ad inventory, the Wall Street Journal reports, and expects online revenue to amount to $30 million, up 30% from 2008.

CBS streams games to cell phones and laptops, and broadcasts them via DirectTV and its own CBS College Sports cable outlet. “These different platforms were just a gleam in somebody’s eye when the deal was signed,” said one consultant. “Now, they are very real.” CBS probably won’t profit from this year’s tournament, but there’s time on the clock—the deal doesn’t expire until 2013.

In this 2006 file photo, CBS announcers Billy Packer, left, and Jim Nantz laugh during a break in the action in a Big Ten Conference tournament game.
In this 2006 file photo, CBS announcers Billy Packer, left, and Jim Nantz laugh during a break in the action in a Big Ten Conference tournament game.   (AP Photo)
Many thought the $6 billion CBS bid in 1999 for rights to the NCAA men's basketball tournament was too high, but the fact that included internet and other new-media rights is paying off now.
Many thought the $6 billion CBS bid in 1999 for rights to the NCAA men's basketball tournament was too high, but the fact that included internet and other new-media rights is paying off now.   (AP Photo)
Saint Mary's Diamon Simpson dunks against Portland during the second half of a West Coast Conference tournament game in Las Vegas last night.
Saint Mary's Diamon Simpson dunks against Portland during the second half of a West Coast Conference tournament game in Las Vegas last night.   (AP Photo)
Syracuse's Arinze Onuaku dunks over Cincinnati's Darnell Wilks during the second half of an NCAA college basketball game in Syracuse, NY, Sunday, March 1, 2009.
Syracuse's Arinze Onuaku dunks over Cincinnati's Darnell Wilks during the second half of an NCAA college basketball game in Syracuse, NY, Sunday, March 1, 2009.   (AP Photo/Kevin Rivoli)
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