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The Honolulu Advertiser

Posted on: Saturday, June 4, 2005

KFVE retains TV rights to UH sports

By Stephen Tsai
Advertiser Staff Writer

The new television contract between KFVE and the University of Hawai'i will eliminate free same-night delayed telecasts of home Warrior football games, and implement pay-per-view coverage for select Rainbow Warrior basketball games and Rainbow Wahine volleyball matches.

Contract highlights

KFVE pays UH $1,750,000 annually in rights fees.

KFVE provides UH $500,000 annually in television advertising.

KFVE buys UH four Sony wide-screen televisions valued at a total of $255,000.

KFVE transfers to UH the rights to 22 courtside advertising spaces in the Stan Sheriff Center.

KFVE and UH will split proceeds from pay-per-view subscriptions for home football games and select men's basketball games and women's volleyball matches.

KFVE will no longer air free same-night football telecasts.

"Obviously, we've got to do what we think is in the best interest of the athletic department," UH athletic director Herman Frazier said in announcing that KFVE won the right to televise UH sports for the next three years. There is an option for another three years.

KFVE will pay UH $1.75 million in cash annually — divided into quarterly payments — and provide more than $500,000 in television advertising each academic year. KFVE also will provide UH with four Sony wide-screen televisions, valued at a total of $255,000, for the Stan Sheriff Center.

In addition, UH and KFVE will split proceeds from proposed pay-per-view telecasts.

Oceanic Time Warner Cable, the only other bidder, was the carrier for KFVE's pay-per-view telecasts of UH football games the past three years. John Fink, president and general manager of KFVE and sister station KHNL, said he is seeking a carrier for this season's pay-per-view telecasts. "We'll have a deal worked out with someone," Fink said.

UH also has gained control of AdTime, the 22 courtside advertising spaces in the Stan Sheriff Center. KFVE, which has held the UH television rights for the past 22 years, controlled AdTime. Fink said AdTime could earn up to $250,000 annually.

The new contract, which goes into effect July 1, will earn UH more than $2 million annually in rights fees and advertising.

This fiscal year, UH earned $1.5 million from its television contract — $700,000 in rights fees from KFVE and $812,310 from pay-per-view subscriptions.

Although Oceanic, which earns revenue through advertising and subscriptions, was considered to have the heftier bank account, "from a financial standpoint," Frazier said, "KFVE's bid was more money. But that wasn't the deciding factor. ... The overall package, plus the experience, plus the ability to do some additional things, came into play."

Fink said KFVE's Alabama-based owner, Raycom, authorized an increased bid.

"We will have to be creative" to cover the higher rights fee, Fink said. "We have to put out some new wrinkles in some of our sponsorship packages. Obviously, we're expecting pay-per-view to come into play."

To increase pay-per-view subscriptions, Fink agreed to end the practice of free same-night football replays. Fink said the new plan calls for delayed football telecasts to air the day after a UH home game.

"I thought that had to happen to increase our revenues," UH football coach June Jones said. "That's awesome."

Fink also wants pay-per-view telecasts of select men's basketball games and women's volleyball matches.

"The plan is (for a fan) to go to the game, watch it on pay-per-view or it'll be on Sunday on KFVE," Fink said. "We're trying to drive people to the game, and if they can't go to the game, we want to drive people to pay-per-view."

KFVE produced about 125 live sports telecasts this academic year. The new contract calls for a minimum of 80 each year.

"We want to have a good product and a good show on TV," Frazier said. "But we also want the fans to come to the arena, as well, and enjoy the overall experience of what we're trying to do."

Fink said it is unlikely KFVE will produce a coach's show. Last season, "The June Jones Show" aired on OC-16, a cable station owned by Oceanic.

Fink said he favors replacing a coach's show with vignettes.

"Twenty years of coaches shows ... have not drawn enough of an audience to warrant a continuation in our mind," Fink said. "We think that formula has been tried and done. That's not to say the quality of the shows hasn't been good. ... There's been some good television, but it's difficult to find an audience to sustain it.

"If we can find a forum through vignettes, where a coach can provide tips, philosophical things, points of interest for the consumer, that's where we're leading. I can run those a lot easier in a lot of different places."

Fink said KFVE and KHNL have enough room on the digital spectrum to create three more channels. One in the works is KFVE Classic, which will show past UH telecasts. KFVE owns the archives of UH telecasts that currently are available through Oceanic's video-on-demand channel.

"That will evolve over the next couple of years," Fink said. "That won't happen by Sept. 1."

Reach Stephen Tsai at stsai@honoluluadvertiser.com or 525-8051.