ATLANTA, June 15 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL)
subsidiary, Host Communications, Inc., announces that it will soon unveil a
new business plan to further define the key areas of growth within the company
to maximize profit margins and increase shareholder value. This announcement
comes on the heels of the company withdrawing from negotiations with CBS
Sports for an extension of Host's NCAA corporate marketing rights beyond 2002.
As reported in this week's SportsBusiness Journal, Host's President and CEO,
W. James Host, believed the terms of the extension were not financially sound
for Bull Run investors.
"As hard as we have tried to make the numbers work, it was time for us to
withdraw from these negotiations and look at expanding our collegiate
athletics relationships and our lifestyle and affinity marketing businesses,"
said Host. "We looked at it every possible way and it didn't make financial
sense. The return to the shareholder wasn't going to be there, as we would
need to pay at least $50 million to CBS beginning in 2003 for the same rights
that we will pay $20 million in 2002."
"The NCAA business represents only about 20 percent of the combined Host
and Streetball operations, and by losing our attachment to these voluminous
rights fee expenses we can dedicate our attention to other areas of our
business having excellent growth potential and a greater return on revenue,"
Host added. "We've talked to many of the collegiate industry leaders and have
received nothing but positive feedback on this decision, which will enable us
to focus even more on our individual schools and conferences."
In addition to its current contract with the NCAA, Host currently has
separate contracts with each of the SEC, Big 12, Southern and Metro Atlantic
Athletic conferences, and 13 institutions including Florida State University,
the University of Texas, the University of Tennessee, Boston College, the
University of Notre Dame and the University of Kentucky, which Host has
represented since 1974.
Robert S. Prather, Jr., President and CEO of Bull Run commented, "We are
very supportive of the decision to withdraw from the negotiations with CBS
Sports. Host Communications created the NCAA Corporate Partner Program and
developed it to where it is today. We believe that the reputation and
contacts developed by Host over a 25-year period will enable us to be very
successful in further developing our other collegiate and affinity marketing
businesses. By the same token, we are committed to enthusiastically
fulfilling the existing NCAA contract through 2002."
Bull Run, through Lexington, Ky.-based Host, provides specialized
marketing and management services to corporate clients focusing primarily on
sports-related affinity groups. Datasouth Computer Corporation, a
manufacturer of computer printers, also operates as a wholly owned subsidiary
of Bull Run. In addition to Gray Communications, an owner and operator of
13 television stations and four newspapers, Bull Run also has significant
investments in Total Sports Inc., a sports content Internet company;
iHigh.com, a company developing a network of web sites focused on high school
sports and activities; Rawlings Sporting Goods Company, Inc., a leading
supplier of team sports equipment in North America; and Sarkes Tarzian, Inc.,
an owner and operator of two television stations and four radio stations.
SOURCE Bull Run Corporation
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Company News On-Call:
http://www.prnewswire.com/comp/232438.html or fax,
800-758-5804, ext. 232438
CONTACT:
Robert S. Prather, Jr., President & CEO of
Bull Run Corporation, 404-266-8333, or W. James Host, President &
CEO of Host Communications, Inc., 606-226-4202
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