The shift of sports broadcasting from network (ABC, CBS, NBC, FOX, CBC) to cable (ESPN, TSN, FOXSports, TNT etc.) is one that is purely driven by financial reasons and unfortunately this shift comes at the expense of the consumer but then again what would you expect from the world of professional sports?

	CBS uses their sports broadcasting to promote other shows on the network. (Source: CBS)

Despite all the millions and billions of dollars that are bid each time the broadcast rights come up for competition, broadcasting sports is not a profitable business. Really, laying claim to broadcasting major sports is a "loss leader" for a network and the motivation is the same that grocery stores have for advertising major specials on products such as soft drinks - once you can attract a consumer with your loss leader you're also able to showcase your other products. In the case of networks those other products are other programs. CBS shelled out $6 billion over 11 years to broadcast NCAA men's basketball which helps explain why the network uses every conceivable stoppage during NCAA games as a vehicle to drive interest in shows like CSI and The Late Show with David Letterman.

FOX was the pioneer of treating sports broadcasting as a loss leader. In 1993 the young network swooped in with a massive offer to the NFL and outbid CBS by $400 million to broadcast NFC games. The move helped solidify FOX as the 4th biggest network alongside CBS, ABC and NBC. Other networks followed suit in the 90's and all the major sports leagues enjoyed the extra revenue. With decreased advertising revenue and decreased ratings due to all the fragmented coverage of sports, networks are now deciding that they can afford to live without being home to major sports and thus we see the movement towards cable.

Cable stations hold one major distinctive advantage over network stations, which explains why ESPN can afford to go pay $1.1 billion a year over eight years for MNF and that advantage comes straight from the consumer in the form of subscriber fees. ESPN draws about $2 per month per subscriber, with over 80 million customers ESPN rakes in about $2 billion per year just from subscription fees. So in addition to advertising revenue, cable networks can use the subscription fees to offset any losses from out-bidding the competition. Unfortunately for the average viewer they get caught directly in the sports food chain that starts with increasing player salaries and ends with a higher cable bill for consumers.

• Increase in player salaries
• Increase in the price of broadcast fees that leagues charge
• Increase in the amount spent by networks
• Increase in the amount of subscriber fees charged to consumers
  

The most recent major sports broadcasting bid in Canada also went the way of cable. Bidding for the 2010 Winter Olympics in Vancouver and the 2012 Summer Olympics was won by CTV who ended CBC's 12-year reign as the Olympics' broadcaster. CTV's bid was actually a consortium bid led by Bell Globemedia that incorporated Rogers Communication and CTV. One of the reasons the consortium bid of $153M USD was able to beat CBC's bid was the ability to use the cable subscriber fees to offset the cost of buying the rights. Rogers Communications owns Sportsnet and CTV owns RDS and in a joint partnership with ESPN operates TSN. All of these channels will be used during the consortium's nonstop Olympics coverage.

Monday Night Football has been an institute at ABC for its entire existence but the move to ESPN isn't as drastic as it may initially appear. ABC and ESPN are both owned by Disney, so this really isn't one network taking the rights from another but simply passing the rights to another department in the company that makes more financial sense. The timing of this move is perfect; ABC is enjoying huge primetime success with hits like Desperate Housewives, Lost, Grey's Anatomy, The Bachelor etc. and moving MNF to ESPN frees up Monday night for ABC to create more programming.

	NBC's primetime lineup goes over like a Vince Carter Toronto visit. (Source: Getty Images)

With ESPN taking over MNF duties in 2006 the opportunity to broadcast the Sunday Night came up and NBC pounced on it for the tune of $600 million over six years. It's a return for NBC to major sports after they rid themselves of NFL, NBA and MLB coverage over the past few years. NBC's change of heart in regards to paying astronomical fees for sports is well timed because the network as a whole has slumped to 4th in the battle of the four big networks. Other than ER, The Apprentice and the network's 17 variations of Law & Order, NBC doesn't have a lot going for them in primetime. Let's put it this way: NBC's primetime lineup is about as popular as Ricky Williams in Miami or Vince Carter in Toronto. Sunday Night Football will give NBC a solid lead-in program to promote the network's weekly lineup of shows.

Perhaps the most interesting dilemma that will hit airwaves in Canada this fall is what partially ESPN-owned TSN will do with their Monday Night programming. TSN's staple and top-rated show is WWE Raw which just happens to run head-to-head against Monday Night Football. No doubt ESPN will "ask" TSN to make the change but it won't make the decision any easier on the Canadian network that will lose their ability to broadcast the popular wrestling show live and in the process infuriate fans in a way not seen since curling switched networks.