No public funds for NBN

From all indications, the National Broadcasting Network (NBN) will clinch the exclusive Philippine TV rights to the Athens Olympics if it pays in full the $1.2 Million debt the government station owes the International Olympic Committee (IOC) for its coverage of the Sydney Games by the end of this month.

That’s a big if. But NBN chair Mia Concio is determined to, in her own words, preserve the relationship the network has with the IOC. Raising $1.2 Million is only half the problem. The IOC is reportedly charging NBN a rights fee of between $400,000 to $500,000 for the Athens Olympics. Additionally, the station must raise at least $150,000 more to pay for the production of the 17-day telecast. Included in the budget is a provision to send a crew of some 20 broadcasters, technicians and researchers to Athens.

It’s no small amount. In all, NBN will probably require a kitty of close to $1.9 Million to seal the deal.

Concio said while NBN is government-owned and controlled, it does not receive any subsidy from the national treasury for operations. She denied that in raising what is required to clinch the Athens contract, public funds will be mobilized.

"The network relies on its commercial and airtime sales to pay for operational expenses," clarified Concio. "Except for the initial funding released to the network in 1994, no regular budget has been allocated. The equity funding was used for infrastructure and equipment acquisition."

Concio appeared confident that NBN would raise the money to settle its obligation which is four years old. "Except for the 2000 Sydney Games, the network has paid the IOC on time," said Concio. She stressed that there is no existing legislation preventing NBN from bidding for the Olympics.

In 1992, the network bid for the Barcelona Games but lost out to a private network.

"In the past, when there were no takers for the Southeast Asian Games, NBN was the last resort to provide the coverage even if the undertaking was a losing proposition," said Concio. "NBN has shown the IOC, through its coverage of the Seoul, Atlanta and Sydney Olympics, that it can provide the airtime, the coverage and a wider audience reach. NBN is the only bidder that has its own nationwide TV network."

Concio said the Asia Pacific Broadcasting Union (ABU), whose facilities are used by the IOC to transmit the satellite feed of the Olympics to its member nations, is backing up NBN’s bid.

Regarding the option to pool resources with two other local bidders for the Athens Olympics, Concio said NBN has the ability to carry out the coverage on its own. "The thing is we have the equipment and the tie-up with ABU and more, the experience and track record not to be a mere airtime partner."

The two other bidders are Solar Sports and a group led by Carlos (Bobong) Velez.

For his part, Velez said his consortium is prepared to launch a major coverage of the Athens Games, committing 14 hours a day on ABC TV. He added that his group’s bid boasts of three platforms—-a free-to-channel, a UHF station and the Dream cable system.

"We’re looking at the Olympics from a long-term perspective, not just the Athens Games," he explained. "In Athens, there will be an enormous amount of Olympic hours available and we will customize the coverage to suit what the Filipino fans want to see. We plan to promote the Olympic brand on a continuing basis and make the Filipino people conscious of the Olympic movement not just once in four years but year in, year out."

Velez and his group made an audio-visual presentation of their plans to IOC marketing director Michael Payne and ABU Sports head John Barton at the Business Center of the Manila Peninsula Hotel during the touring officials’ recent visit here.

"We are optimistic of our chances," said Velez. "But we realize there is the priority of getting paid the $1.2 Million that NBN owes the IOC. If no public money will be used to raise the amount for NBN, it means the private sector will fund it. I wonder which private entity will put up the money."

Reacting to accusations in media, Concio said NBN has not been remiss in paying the salaries of employees but admitted lack of funds has delayed the release of benefits. She said the network is doing its best to update the payment of unpaid talent fees.

On NBN’s debt to the Philippine Basketball Association, Concio said the network is not ignoring the obligation. The case is now with the court for proper adjudication, she noted.

As regards cases filed by researcher Bong Barrameda, Concio said the charges have been dismissed for lack of sufficient evidence. The

case filed with the Ombudsman was thrown out on July 23, 2002 and another case before the Regional Trial Court was dismissed on June 12, 2003.

"The purpose of the Olympics is not only to show the competitions but to promote the Olympic ideals," said Concio. "And that’s why the winning bidders for the coverage are networks that can showcase the best of the Olympics. NBN has shown the IOC, through the coverage of the Seoul, Atlanta and Sydney Olympics, that it can provide the airtime, the coverage and reach a far wider audience."

The IOC will not decide on the winning bid until the end of April which is the deadline for NBN to settle its $1.2 Million debt. That will leave the winning bidder less than four months to prepare for the coverage of the Athens Games—-a tall order considering the mammoth task in August.