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Tuesday, April 15, 2008

History of Learfield: Exclusive Rights

Mizzou AD, Mel Sheehan, must have attended an AD meeting somewhere in 1976 and learned how some schools were offering exclusive radio rights for their broadcasts, and making huge bucks in the process from the exclusive rights-holder.   Because in 1977 Sheehan sent out a formal RFP (Request for Proposal), seeking a vendor to handle his radio rights.  I recall being dismayed at the idea of paying the University for something they should be paying me for!  Heck, we were providing a great service and not making all that much. 

Recall that in 1974 we began subleasing our lines to the network.  In 1975 I sweetened the deal by asking for the 60-second commercial avail between quarters (which I sold to Pabst Blue Ribbon Beer).  In 1976 I asked for more inventory--and a pregame show, a half-time show and a post game broadcast.  The RFP asked how much I'd be willing to pay the University for these exclusive broadcast rights.  I replied: "nothing"; I put zeros in each blank.  Goose eggs; Nada.  And, since we were the only company to submit, we won!  (I shouldn't have been so cocky.)

However, in 1978 things came under scrutiny.  We had a new athletic director, Dave Hart, who canceled our contract and rebid.  He'd been "around the block" and was shocked at how little Missouri was getting for their statewide radio network contract.  So there was a new RFP issued early in 1979 to begin that fall. 

There were three bidders:  Us; KSD Radio, St. Louis and an outfit called Sports Network, Inc. (SNI) comprised of three individuals:  Frank Bick of Suburban Newspapers, Greg Maracek, a sports columnist for Bick's papers, and St. Louis Football Cardinals kicker, Jim Baakken.  We teamed with KSD so that effectively took them out of play. SNI said their flagship was KMOX and offered the University $143,000.  We offered $145,200 per year for the two-year deal.   In spite of our larger cash bid, Hart awarded the exclusive rights to SNI primarily because of their association with KMOX and the play-by-play of Dan Kelly. 

I was dejected.  But I went to SNI hat-in-hand and sold them our lines on Saturday afternoons.  And, I told myself, we'd win next time. 

--clyde

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