The Golf News Net

The current sports broadcasting environment is changing for sports leagues and networks alike.  The Bowl Championship Series recently embarked on an agreement with Disney/ABC to broadcast the entire series on ESPN.  The agreement marks the BCS as a landmark property because of its move to broadcast exclusively on cable. 

In the past five years, the major sporting leagues have all started their own proprietary channels.  Major League Baseball's foray, the MLB Network, is set to launch next month. 

The National Basketball Association is allowing its own teams to own digital rights and negotiation power in the belief that the franchises know best how to handle their own local markets.

Golf, though, has been splitting time with cable and the broadcast networks for the better part of three decades. Three of the four majors are partially streamed online with exclusive content.  The USGA's Internet feed of the Monday playoff from Torrey Pines has been credited with slowing down the global internet that day. 

Gil Kerr, Senior Vice President, Broadcasting, Programming & Productions for the PGA Tour, sees the PGA Tour as well positioned for the current sporting landscape and for the future.

In 2006, the Tour made the decision to embark on a fifteen year deal with Comcast-owned Golf Channel.  Many initially criticized the contract because of its length and the lack of Golf Channel reach relative to former partners, ESPN and USA Network. 

Two years later, Kerr sees the contract as a big win for the PGA Tour.  "When you look at the challenges other leagues have had in securing distribution, it validates our decision," said Kerr.  Considering the swirling rumors about the progress that the LPGA Tour has had in achieving a similar cable deal, Kerr is right. 

With reports abound that the Arena Football League may be folding soon - and that its broadcast partner, ESPN, has an equity stake in the league - the PGA Tour looks very wise to invest in a relationship with Golf Channel.  The deal paid dividends for Golf Channel, as it increased their subscription fees and distribution size.  "Golf Channel is by far the most widely distributed single-sport network," Kerr reminded me, "and likely will stay that way for a long time."

According to TV Week, NFL Network has a reach of approximately 42 million homes.  Golf Channel, owned by cable giant Comcast, has a global reach of almost 80 million.

All of the talk about cable distribution, though, has left the future of many sports on network television in doubt.  A recent Sports Business Journal piece reveals that major sports networks are considering moving more programming to cable because those networks have dual income streams - subscriber fees and advertising - that will increase bids for their leagues.  Also, with the switch to digital TV signals next year, the cable industry is expecting that even more homes will go to cable.

Still, Kerr and the Tour see significant value in maintaining broadcasting relationships with NBC and CBS. "[W]e maintained our long standing relationships with CBS and NBC for most of our weekend telecasts. We see real value in this and don't see a change in the foreseeable future," Kerr explained.  "We think of it as having the best of both worlds." 

It makes sense, particularly when single-sport networks are really still gaining traction with audiences. The NFL Network is still facing challenges and complaints from viewers that do not have access to their Thursday and Saturday Night Football telecasts.

Since the 2006 Golf Channel dea, both the size of the audience for and the amount of PGA Tour programming on Golf Channel has dramatically increased .  All three tours under the PGA Tour umbrella - PGA Tour, Champions Tour, and Nationwide Tour - have significant programming hours on the network. 

With all of that coverage, Golf Channel has enough other programming to spill into a second network.  Kerr warns, though, that "there is a question as to whether a second Golf Channel would secure meaningful distribution from cable and satellite companies." Though Comcast serves 24 million customers by itself, more would be required to make Golf Channel 2 worth it. 

That may happen after 2012, though, when the PGA Tour's contracts with NBC and CBS expire.  In January 2007, then Golf Channel CEO David Manougian said in an Associated Press report that he expects that Golf Channel will be able to pick up additional PGA Tour weekend programming at that point.  Through an arrangement with CBS Sports and Comcast this summer, Golf Channel will broadcast early weekend coverage of twelve additional events starting next season.

As for the future of harnessing the Internet to stream PGA Tour events live online, Kerr seemed open to the proposition as long as it made sense for all parties.  "There certainly would be an audience for it on Thursday and Friday when many people are at work," Kerr said.  "But Golf Channel believes it could
have a negative impact on the primetime replay which is important to both of us."

Kerr pointed out that fans - given the choice - would prefer access to high definition broadcasts of the PGA Tour as opposed to mobile and Internet streams.  Kerr added, though, that "it may make some sense to make the telecasts available on mobile platforms for those fans who don't have the option of watching it on television or the internet, and we'll continue to have that discussion with our television partners."

Regardless of the results of those discussions, the PGA Tour is creating new opportunities to interact with fans thanks to the recent addition of big name columnists and more quality content at PGATour.com.  With a strong presence on broadcast and cable TV, as well as the Internet, the PGA Tour is among the leaders in sports in delivering its message and brand to fans.