Fox TV deal could well be catastrophic for US Soccer Federation

Steve Brenner 15:32 03/07/2017
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  • Jack Warner

    When Jack Warner speaks, fact and fiction become blurred.

    The disgraced former FIFA vice president, currently serving a life ban from football activity thanks to a litany of misdemeanour charges, cast a bitter eye last week over the findings of Michael Garcia’s investigation into the ruinous state of the governing body under Sepp Blatter’s rule Given his closeness to the CONCACAF scandal which saw successor Jeffrey Webb land up in jail, (Warner was in charge of the authority which looks after Northern and Central American nations plus the Caribbean for 20 years ) he saw US Soccer intrinsically involved.

    So Warner’s take on proceedings were interesting, once stomached with a large dose of salt. “I have also taken note that the American investigator has absolved the US Soccer Federation and I ask myself how come?,” he wrote in an email to The Times.

    “Was this not the same USSF that facilitated a visit to the White House for Sepp and me to meet Obama? How do you characterise that? Was this not the same USSF that arranged for [then-Confederation of African Football president Issa] Hayatou and his ExCo members to do the same?

    But then again this is the U.S. That I guess determines if you fall, live or die.” Garcia’s report totally absolved US Soccer and their president Sunil Gulati of any wrongdoing during the bidding for the 2018 and 2022 World Cups.

    Warner was trying to deflect criticism. In the shadows, though, palms were greased and deals discussed. It happens a lot, especially when massive TV sums are on the table.

    Michael Garcia

    Michael Garcia.

    This is, after all, FIFA we are talking about. Yet Gulati keeps his head above the parapet. He always does.

    Though delving further into the details, the confirmation of the real reasons as to why the Fox TV network along with NBC Universal’s Spanish speaking Telemundo have already secured a deal with no rival bidders to screen the 2026 tournament is a serious financial blow for both FIFA and US Soccer. It’s fair to say ESPN and other broadcasters are also pretty angry.

    “This is a bad deal for US Soccer,” said a high level source. “It was a sweetheart agreement for Fox but the other networks are furious. The money on offer would have been huge.”

    ESPN broadcast six-straight World Cups from 1994 through last year, but in 2011 was outbid by Fox for the next two. What makes it worse is that the 2026 finals are nailed on to be in the US, Canada and Mexico, set to have 46 teams. More games, more coverage, more money.

    The number of matches broadcast in 2026 will jump 25 percent, from 64 to 80. Fox had already agreed deals to show the finals next summer and then four years later.

    Yet, after paying $467 million (Dh1.7bn), they didn’t anticipate Qatar being moved to winter, thus going head-to-head with NFL and NBA action in the United States. Football would take a backseat. Fox executives were furious and went into battle.

    Legal threats were made so FIFA decided to hand them 2026 without a bidding war at the same price as Qatar – a move which could cost them upwards of $500m.

    Telemundo paid around $350m (Dh 1.28bn) for 2026 yet FIFA will get a $115m (Dh422m) bonus if US are chosen as hosts. Fox chipped in $300m (Dh1.1bn) and a $180m bonus (Dh660m).

    In 2015, FIFA were seen to be making up for their own ‘we didn’t realise it would be too hot’ blunder by gifting them 2026. But Garcia’s report, however, confirmed avoiding a costly and embarrassing legal battle forced their hand.

    Cue delight for Fox but US Soccer will feel the after-effect too. Although the rights are solely owned by FIFA, the more which comes in and helps eradicate their whopping $400m losses, the more Gulati could have offered to his CONCACAF chums.

    Everyone wants a tasty piece of the incredibly lucrative World Cup pie. With such a massive loss, however, the pot isn’t as large. Will we see a lean time for the fat cats?

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