Broadcast giant quits NBC: what next for Olympics?

June 6 and 7 could be among the biggest days on the sports business calendar in 2011. They'll definitely be among the most important for the beancounters at the International Olympic Committee.

That's when American networks will be in Lausanne, Switzerland to make their bids for the rights to broadcast Sochi 2014 and Rio 2016. They may even look for a bulk discount by tendering bids on Winter 2018 and Summer 2020.

Munich, Germany, PyeongChang, South Korea and Annecy, France are bidding for 2018. The 2020 race has yet to begin.

NBC, which paid $2.2 billion for Vancouver 2010 and London 2012, is the incumbent. The former GE-owned broadcasting giant has held rights to all Summer Games since Calgary 1988 and Winter Games since Salt Lake 2002. But it will be without Dick Ebersol.

Ebersol dropped a broadcasting bombshell May 19 when his resignation from NBC was announced. NBC is now owned by Comcast and the official word is they couldn't agree on a new contract. The news broke exactly a month after Ebersol announced NBC and Versus's 10-year, $2 billion National Hockey League broadcast deal at a news conference with NHL commissioner Gary Bettman.

Ebersol's Olympic journey began in 1967 when he joined ABC as a researcher. Ebersol and Canadian Lorne Michaels collaborated to create Saturday Night Live for NBC in 1975. During Olympic Games, Ebersol would actually camp in custom-made quarters in NBC's facilities at the International Broadcast Centre instead of stay in a hotel room. Ebersol spoke at length about his storied career during the Denver 2009 SportAccord convention.

Ebersol enjoyed his Vancouver experience so much (and the fact that the British Columbia government became an important advertiser) that he appeared in a video honouring outgoing Premier Gordon Campbell at a Vancouver Board of Trade event on Feb. 4, 2011. NBC lost $223 million on Vancouver 2010 after being hit by the Great Recession's advertising slump.

Whether NBC's London 2012 coverage will suffer without Ebersol at the helm remains to be seen. He has many proteges who will now run the operation. NBC, sans Ebersol, said it still plans to go to Lausanne and bid for the Olympics broadcast rights, but it will be a hotly contested race with Disney-owned ABC-ESPN, Fox and CBS.

A source told me Ebersol has been bearish on a bid for Sochi 2014 for quite some time. The unfriendly time zone -- eight hours ahead of New York -- was the biggest worry. Live sports are best shown live, but not at 3 a.m. when viewers would rather be sleeping. During a meeting, Ebersol was asked what he thought Sochi would be worth. He paused for a moment and scribbled on a note pad. He turned around and showed those in the meeting. It was a big "0".

Sochi 2014 could well be a commercial bust for the IOC and whichever company wins the U.S. rights if National Hockey League players aren't playing the hockey tournament. The Russian resort is building everything from scratch and, from what I saw last June, is on-track to be ready for February 2014. But volunteers, venue operations, transportation and security remain big unknowns for Sochi, which passed the 1,000-day countdown on May 14.

Exclusive: Visa and Bobsleigh Canada Skeleton to GO separate ways

I broke the news on the May 14 edition of The Sport Market on Team 1040 and in the May 17 edition of Business in Vancouver that Visa Canada is spending one last season as a sponsor of Canada's bobsled and skeleton team. Then the two-decade relationship, that included the Vancouver 2010 Winter Olympics, will be over. Visa is also among the International Olympic Committee's global sponsors.

A prepared statement from Visa said: “Visa Canada is proud to have had a long association with Bobsleigh Canada Skeleton. Going forward, Visa will not sponsor the Bobsleigh Canada Skeleton team, but will instead continue to make strategic investments in support of Team Visa, our program for athletes with Olympic and Paralympic aspirations.”

The two parties would have split at the end of the 2010-2011 season, but BCS convinced Visa to remain for another year at a reduced rate. Read more in my story below.

Golden Goals: Visa checking out... BIV May 17-23, 2011

PavCo says cost overruns not its problem

What's up with B.C. Place Stadium's roof, you say?

Well, for one thing, the price.

TSX-listed Canam Group (CAM) revealed on April 21 that it would take an "after-tax reserve of $25 million" for 2011's first fiscal quarter for "additional costs for the completion of the cables" on B.C. Place Stadium's retractable roof.

"The corporation believes this reserve represents the likely loss until completion of the project, while adding that discussions to reduce the impact of the reserve are ongoing with various project participants," said a news release.

Further information is to come April 27 when Canam Group president Marc Dutil will conduct a teleconference with financial analysts and media. Spokesman Jasmin Gosselin said Dutil was not available for earlier comment on the B.C. Place overrun.

Canam's Structal Heavy Steel Construction unit announced Oct. 28, 2009 that it scored a contract worth more than $100 million from PCL Constructors Westcoast. Steel was to be sourced from St. Gedeon de Beauce, Quebec and Sunnyside, Wash. by the company that supplied steel to 53 North American stadiums and arenas, such as Air Canada Centre, the new Giants Stadium and Red Bull Arena.

"Both the deliveries and the erection work will begin in the early part of 2010 and continue until the end of the year," said the 2009 news release.

Based on that news release, the schedule has already gone overtime. The last of the 36 steel masts was not in place until Jan. 13 of this year. The original deadline was the end of December 2010. Installation of the roof fabric was supposed to begin in February, but that won't happen until May. B.C. Pavilion Corporation CEO Warren Buckley told me earlier in April that testing of the finished retractable roof would happen at the end of August or start of September with a public open house on Sept. 25. Reopening night is Sept. 30 when the B.C. Lions host the Edmonton Eskimos.

B.C. Pavilion Corporation chairman David Podmore and Buckley did not respond to email queries about Canam's $25 million overrun. Buckley was not available when I called his office Tuesday morning, but spokesman Norman Stowe said via email: "Canam’s issue has no impact on PavCo which has a fixed price contract. No one is looking to PavCo for any shortfall."

PCL inked a $318 million fixed-price contract for the roof work in November 2009. The announced cost of the taxpayer-funded renovation is $563 million (it was supposed to be $365 million).

An announcement is expected soon that the stadium will be renamed for a brand of telecommunications giant Telus. Sources say the company won the bidding for naming rights.

APRIL 27 UPDATE

Canam reported a $39.7 million first quarter loss on April 27 and blamed it on "fierce competition in some business segments as well as the provisions for B.C. Place."

Dutil said Canam's Structal division got the B.C. Place contract in spring 2009 but the final contract wasn't executed until the fall of 2009. He said Structal's scope of work included the columns, compression beams, catwalks, arches and facade elements.

On a teleconference after his company's April 27 annual general meeting, Dutil said Structal "encountered severe delays in the cable portion of the work" in the first quarter after relying on the expertise of France-based Freyssinet.

"We are not cable experts and therefore relied on a third-party to estimate, price, plan and execute the installation of the cable work required to support the fabric roof, the centre node and all the elements required for the retractable roof system," Dutil said.

"During this first quarter we encountered severe delays in the cable portion of the work and hence we estimated that a $25 million after-tax reserve was warranted at this time. We hope to be able to recover a portion of this amount. Our first priority remains to deliver a safe, quality and timely project to our customer PCL and the end-user, B.C. Pavilion Corporation... The circumstances of the B.C. Place job are very difficult, but they confirm that even in the face of such challenges we do not run away."

"We had indications that the erection portion of these cables would be a lot faster and cost a lot less than it's turned out to be. It is my understanding that the taxpayers of B.C. are not on the hook for this, this was a contract where we have to perform at a fixed-price and we'll negotiate between ourselves and third parties. No one intends to refill the bill to someone else.

Dutil said Structal is in talks with Freyssinet to resolve the matter, but his company's work will be done in late July or early August.

"It's going to be a marvel. It's going to be well-done, safe and you're going to enjoy it for many years in Vancouver. It will just cost a little more than expected -- to us."

Asked for comment on the Canam overrun, PavCo CEO Warren Buckley told me: "This is a Canam matter and has nothing to do with the delivery of the completed stadium within the scope of the fixed price contract. There is not impact on budget and we are very confident that we are on track for a Sept. 30 completion."

Pondering poker's predicament

Is poker a game of chance or skill? Is it a game or a sport? The arguments will continue, but the ripple effects of the FBI's April 15 crackdown against PokerStars, FullTilt Poker and Absolute Poker have hit sports broadcasting. Disney-owned ESPN, which has a stake in Canada's TSN, has cancelled poker advertising and programming.

The 2011 Canadian Gaming Summit was held April 18-20 at the Vancouver Convention Centre as the global gambling industry reeled from what poker people have called "Black Friday".

Among the speakers at an April 20 seminar on regulation was Lawrence Walters, an Orlando, Fla., lawyer who specializes in gambling, intellectual property and constitutional issues. Here's what he had to say:

“What you have is an attempt to hold a foreign resident and operation that is legal and licenced in its host jurisdiction responsible for violating a New York misdemeanor statute that makes no reference to online poker. The feds have their work cut out for them in this case for sure.

“We believe that the thrust of the government's case here is really the fraud allegations, the bank fraud, the money laundering. These gambling indictment counts, one to seven in the indictment, were thrown in so that the government could obtain a plea to those counts and then wave around that guilty plea and say ‘see, they're guilty of illegal gambling and the (Unlawful Internet Gambling Enforcement Act) applies’. What they'll say in the backroom is ‘we've got you on the bank fraud, you're lying to these banks and we can prove it. We don't really care about that, we want you to plead guilty to the gambling offences and we can establish a bad precedent for the rest of the industry’.

“Department of Justice has been known to do this in other instances where they'll come up with regulatory offences or tax evasion and then obtain a plea to some sort of more politically charged offence.

“This is going to be one of the first cases, if it goes to trial, that will address head on whether or not the UIGEA applies to anything other than sports betting activity. Given the amount of money involved and the foreign residence of the defendants, it's going to be a precedent setting case.

“If history is any guide, the likelihood of a decision on the merits is pretty slim. In general criminal cases are resolved by way of a plea as opposed to a trial 98 percent of the time, if that wasn't the case the system would collapse. It's designed that way.

“DOJ prosecutors are ruthless in their attempts to get pleas, they will threaten families, children, and take all of your property and basically make it so that it would be financially and morally impossible to fight these cases on the merits. There have been people that have done it, they've toughed it out and won. But the likelihood is that this case will be resolved by some kind of deal.”

Lions rookie rusher charged in ecstasy bust

It’s been said that bad publicity is better than no publicity at all.

Try telling that to the B.C. Lions, now reeling from drug charges against the star running back who was featured in the club’s 2011 promotional advertising.

Yonus Davis is charged in San Jose, Calif. for attempting to possess a controlled substance with intent to distribute. He was busted April 9 by a Drug Enforcement Administration agent at his girlfriend’s house in Milipitas.

Agent Trang N. Le’s April 11 affidavit said Davis signed for a Federal Express courier package containing 67 pounds of ecstasy.

"He acknowledged that he was expecting a Federal Express parcel that was supposed to contain approximately 40 "boats" of ecstasy,” said Le’s affidavit, which explained a boat is slang for 1,000 tablets.

"Davis said he brought the ecstasy tablets for $1.50 per tablet and was expecting to earn $20,000 by selling the 40 "boats".

The court filing said Davis admitted he was expecting the parcel and was checking the Federal Express tracking number for its status.

"Yonus Davis said his ecstasy source is a Haitian male adult who goes by the name of Red. Yonus Davis said he had met Red once in downtown Seattle, Wash. a couple of months ago.

"Davis further said that he only sold the ecstasy tablets to his acquaintances."

The document said a criminal record check revealed that Davis "has a criminal history for a probation violation on Sept. 29, 2009, convictions on misdemeanor charges for possession of marijuana for sale on Feb. 13 and May 20 in 2008; a charge of battery on spouse and vandalism as a juvenile on May 28, 2002; and a charge of robbery as a juvenile on June 24, 2001."

Court filings claim Davis was paid $43,000 in 2010 when he was a rookie star and runner-up for CFL’s Gibson’s Finest-sponsored special teams player of the year.

Davis averaged 6.3 yards per carry when he rushed 34 times for 213 yards. He scored four touchdowns. A statement by head coach and general manager Wally Buono said Davis “remains part of our football club while the investigation process takes its course and we will not comment further at this time.”

For what it's worth, FedEx competitor Purolator is both the Lions' and the CFL's official courier company. The revelation that Davis was cited for spousal battery comes just over a month since the British Columbia Ministry of Children and Family Development announced a $320,000 no-bid contract for Lions players to conduct Ending the Violence Against Women Initiative workshops for high school football players.

The notice of intent said Lions players “through their accomplishments, community visibility and celebrity status are in a position to positively engage young people and raise their awareness about issues related to harassment and abuse.”

Never in the club's history has the team had such a low-key off-season. The Major League Soccer launch of the Vancouver Whitecaps and the Vancouver Canucks' first overall finish in the National Hockey League regular season have kept the orange and black off the sports pages. Until now.

Yonus Davis, arguably the most-exciting Lion in an otherwise dismal 2010 season, may have played his last game in B.C.

Yonus Davis's indictment

Name game

A new name is on the way for B.C. Place Stadium.

Taxpayers are on the hook for much of the $563 million budget to renovate the 1983-opened stadium. Some of the costs are supposed to be defrayed by the sale of naming rights.

B.C. Pavilion Corporation chairman David Podmore told me in mid-January that the corporate naming deal could be decided in late March or early April. Timing for the announcement would hinge upon both government approval and the marketing strategy of the sponsor itself. Though he refused to offer any hints, he said the companies involved in negotiations were not government enterprises. Podmore also said Paragon Gaming and its Edgewater Casino were not in the running for the name. B.C. Place general manager Howard Crosley said Budweiser was not a candidate, despite becoming the official stadium beer.

So the speculation continues.

Four highly active sectors appear to be the most logical from which to draw a naming rights sponsor: financial services, telecommunications, energy and retail.

Scotiabank already sponsors arenas in Ottawa and Calgary, is the naming sponsor of Nat Bailey Stadium in Vancouver and is the official bank of the Richmond Olympic Oval. If its name went up on the B.C. Place marquee, would shareholders question whether it's in the banking or stadium business? BMO already has its name on Toronto FC's stadium. Which might make RBC the most logical suitor. RBC has had a low profile since it sponsored the 2010 Winter Olympics and its torch relay.

Telus hung up on Canucks Sports and Entertainment after General Motors decided to drive out of its deal for "the Garage" early. Rogers slipped in last July, weeks after Bell slapped its name on the jerseys for the Vancouver Whitecaps. Bell is also the name on the Empire Field pitch. Expect the Whitecaps to play on Bell Pitch beginning in October. Vice-president Loring Phinney told me the company is not bidding for the building's name.

Telus CEO Darren Entwhistle said at the March 9 unveiling of the $750 million Telus Gardens office complex proposal that the stadium naming rights are of interest to his company.

On March 1 Terasen Gas became FortisBC. Natural gas is plentiful in B.C. where Fortis is the biggest distributor. The Newfoundland-based company has utility operations in five provinces, plus hotel and commercial properties. The Fortis board of directors includes Podmore. Podmore was instrumental in convincing Fortis to underwrite the Olympic cauldrons at B.C. Place Stadium and Jack Poole Plaza. Could Podmore also convince his fellow directors to turn the stadium into FortisBC Place?

In January, U.S. discount retailer Target bought leases for Zellers' 220 stores for $1.8 billion from Hudson's Bay Company. The Minnesota company plans to convert as many as 150 to Target by 2014. Naming rights to the stadium would be beneficial, if it were to begin the makeover early,

The "where are they now?" podium

The 2010 Winter Olympics opened a year ago today, which meant the final lap in a test of endurance for people who spent almost seven years with VANOC. Many of them gathered at the Vancouver Convention Centre for a reunion, after the Olympic cauldron on Jack Poole Plaza was re-activated. Their post-Games careers can be split into three categories, like three steps on a podium.

GOLD: Sport

CEO John Furlong is now chairman of the Own the Podium advisory board and a director of Whistler Blackcomb, which is now traded on the Toronto Stock Exchange. Furlong's main source of income, for the short-term, appears to be as a motivational speaker. His Patriot Hearts memoir is key to that strategy.

Furlong is a former CEO of SportBC, the province's umbrella for amateur sports organizations. VANOC's vice-president of sport Tim Gayda was appointed CEO last year.

The only senior VANOC executive to have a senior appointment with the International Olympic Committee is chief financial officer John McLaughlin. McLaughlin was appointed to the 2018 Winter Games evaluation commission. The temporary appointment means trips to Annecy, France, Munich, Germany and PyeongChang, South Korea. McLaughlin is the commission's financial specialist.

Director of ice sports/general manager hockey Denis Hainault has a similar job with Sochi 2014.

Paula Kim was in charge of press operations at B.C. Place Stadium, the opening, closing and medals ceremonies venue. She is senior communications manager with the International Triathlon Union in North Vancouver, the only summer Olympic sports federation based in Canada.

Brand creative director Ali Gardner is now marketing director with Canucks Sports and Entertainment. Lawyer Chris Gear now heads CSE's legal department.

Canada's next sports mega-event is the 2015 Pan American Games in Toronto. Vice-president of workforce Allan Vansen is the senior vice-president of transportation, security and village for the Toronto 2015 organizing committee. He was appointed days after the riot-marred G20 summit.

Director of merchandising and licensing Dennis Kim was appointed the Canadian Olympic Committee's executive director brand marketing.

Jason Macnaughton from communications wrapped up a one-year contract with Major League Soccer's Vancouver Whitecaps on March 31. Carly Thorson Jokic, a Macnaughton cohort at VANOC, remains with the club, taking over as communications director.

SILVER: British Columbia Crown corporations

Top level executives have made their way into jobs with British Columbia Crown corporations. This demonstrates the influence of Premier Gordon Campbell.

Construction executive vice-president Dan Doyle: BC Hydro chairman was first in summer 2009. Deputy CEO Dave Cobb followed in May 2010 to become the power monopoly's CEO. Cobb, in turn, hired VANOC vice-president of communications Renee Smith-Valade, Chris Brumwell, Greg Alexis and Jennifer Young in a major overhaul of the communications department.

Chief Information Officer Ward Chapin now has the same job with ICBC. Workforce and sustainability executive vice-president Donna Wilson is Vice-president of industry services and sustainability at WorkSafeBC. Government relations and celebrations executive vice-president David Guscott is the E-Comm 9-1-1 CEO.

BRONZE: New ventures

The best advice imparted by Furlong to the Sochi 2014 organizing committee at the June 2010 knowledge transfer sessions in Russia was to "stick together."

That's precisely what several VANOC employees have done, creating their own post-Games clusters.

Vice-president marketing Andrea Shaw is managing partner of the Twentyten Group. Shaw's company in the Landing in Gastown became the post-October 2010 home of VANOC, or what was left of it. Coincidentally, Twentyten Group's office is one floor below where the Vancouver 2010 Bid Corporation was based when it was awarded the 2010 Games on July 2, 2003.

Shaw is joined by commercial rights manager Bill Cooper, who is a senior partner with Twentyten. Associates include Mags Doehler, Breedon Grauer, Catherine Locke, Rob Mullowney, Kala Polman-Tuin and Stephanie Cornish.

Paralympics director Dena Coward leads a group at the Rick Hansen Foundation's Man in Motion 25th Anniversary Celebration. Torch relays director Jim Richards is coordinating Hansen's international tour. VANOC communications staffers Suzanne Reeves, Mary Fraser and John Gibson have joined them.

Vice-president of partnerships and strategy Taleeb Noormohamed is president of e-learning concern Serebra Learning Corp, and running as the Liberal candidate for North Vancouver in the May 2 federal election. Director of ticketing Chris Stairs is Serebra's vice-president of sales, while manager of partnerships Matthew Bonguorno is sales manager and torch relay communications manager Jenee Elborne is director of communications.

Katie Green, who worked under Smith-Valade, joined Hill and Knowlton Vancouver (headed by VANOC director Ken Dobell). Green was transferred to the Montreal office but is joining L'Oreal Canada as brand communications manager.