The crux of the ctv/NetStar hearings, held Dec. 6 and 7 in Hull, Que., was concentration of ownership in sports programming services, the potential effects on programming rights, questions of rebranding, the suggested tangible benefits package, and the role espn would play if the proposed transaction is approved by the crtc.

Although as many as 200 intervenors have expressed support for the merger, the cbc seemed to lead the pack of naysayers.

‘The merger should only be allowed to proceed if ctv is required to divest itself of one of its two major sports properties, tsn or Sportsnet,’ said cbc exec vp and coo James McCoubrey at the hearings.

The cbc believes the merger would result in a monopoly over specialty sports services in Canada, and that if approved, ctv would control 95% of airtime for Canadian sports programming.

‘cbc is by far the largest broadcaster of sports programming on over-the-air free television in Canada today, and getting out of sports programming is not part of cbc’s plan,’ said McCoubrey, adding: ‘This proposed merger jeopardizes our future in sports and all the benefits that flow to Canadian audiences from it.’

According to ctv, cbc and Global will continue to be powerhouses in the area of marquee sports like the Super Bowl, the Stanley Cup and the Olympics

‘If this application is approved, tsn and Sportsnet will still have to offer rights holders market value for these must-have products, or risk losing out to rivals in a healthy competitive environment where conventional broadcasters are very much part of the action,’ said ctv president and ceo Ivan Fecan.

The cbc is also concerned about the control espn (80% owned by Disney), which owns 32% of NetStar, will exert over the operations of the merged entity, coupled with the presence of Fox in an ownership position.

But Fecan assures that ctv will have complete operating control and responsibility for the management of these services, just as NetStar has had in the past.

Nonetheless, the cbc and Friends of Canadian Broadcasters drove home the point that there’s nothing stopping, say, espn, from buying certain sports programming rights and then off-loading them to ctv, The Sports Network, Reseau des Sports and Sportsnet.

Likewise, Global, which claims to be neither for nor against the proposed transaction, voiced concern about non-Canadian shareholders having veto power over contractual commitments.

If the commission approves the deal, ctv would pay roughly $394 million for a property worth somewhere between $409 million and $908 million – depending on the calculation of a $321 million debt and other factors – for a 68.4% equity interest in NetStar, which owns Discovery Channel, tsn and rds.

The proposed benefits package, worth $35.2 million (supposedly, 10% of the value of the company), includes $9.2 million to increase the stature and tv presence of the Canada Games, $4.5 million in 52 half-hours of new Canadian sports docs, and $1.3 million to create the Canada Cup of Women’s Hockey. However, two glaring questions remain: Is airing the Canada Games over and above the call of duty (as tangible benefits are supposed to be)? And, how does ctv arrive at the $35.2-million figure?

A decision on the merger is expected sometime in late February.