
From Lane 9 News: "... PHOENIX, Arizona, December 24. IN what appears to be financial concerns that could affect a landmark venture between the Wasserman Group (WMG) and three of United States Olympic Committees' national governing bodies (USA Swimming, USA Track and Field, and USA Gymnastics), WMG is shopping its Online Sports Network in lieu of an expected eight-figure loss for 2007. ..." [Lane 9 quotes the Sports Business Journal as their reference.]
Consequently, they want to sell
Sportnet.com for 50-million-dollars to obviously cover some losses. [
Link]
That figure is mind boggling for I don't see 50-million dollars of product there. Heck, even my site has more swim content than
Sportnet and
Floswimming has a 100 times more content as well. Therefore, I have to assume that their primary assets are the contracts they have with those that produce content but in relation to other content providers, it is still anemic.
For instance, take
Movielink.com as an example as a content provider.
Movielink.com was founded as a joint venture between Paramount Pictures, Sony Pictures Entertainment, Universal Studios, and Warner Bros., who were responding to consumers' adoption of high-speed Internet access well before iTunes came to market.
Movielink.com had far more contracts with several major movie studios and foreign distributors. They sold and rented 100's upon 100's of movies per month. This includes documentaries, animation, shorts, extreme sports, etc. In August of 2007 movie rental giant Blockbuster acquired
Movielink.com for a mere 6.6-million-dollars.
Sportnet has nowhere near the content nor the contracts that
Movielink had access to nor such an advanced e-commerce infrastructure. Hence, where is the equity in
Sportnet? [CNN article on the
Movielink.com sale
Link]
Timed Finals, along with
Sportnet.com is owned by
The Wasserman Media Group as well. I am assuming that the site was purchased for the sole purpose of augmenting the
USA Swimming deal. Will
Timed Finals be sold if
Sportnet.com is sold since it is seemingly one it's properties?
USA Swimming should have cut a deal with WCSN and Swimming World instead.