WWF Wins Judicial Smackdown Against USA
In a decision that could be painful for the wrestling-dependent cable network, a Delaware judge has dismissed a lawsuit by USA trying to stop a lucrative deal between WWF Entertainment and Viacom--the media empire that controls CBS, MTV, TNN and UPN.
It now means USA can now kiss its wrestling shows--and its stratospheric cable ratings--goodbye. And in turn, Viacom can get started on its own WWF assault, which will include a host of new shows featuring musclebound superstars like the Rock.
The WWF will enter into a five-year partnership with Viacom, which includes airing its number-one rated (and soon to be former USA cash cow) Raw is War, as well as Livewire and Superstars on TNN and Sunday Night Heat on MTV this fall.
Meanwhile, the wrestling-dependent UPN Network will get an extension for its Thursday night butt-kicker WWF Smackdown, as well as Sunday games for the WWF's new smashmouth football league, XFL, set to debut next February.
None of this bodes well for USA, whose livelihood has long been dependent on the WWF's weekly parade of beefcake brawling. Raw is War remains the network's only program appearing consistently in the Nielsen top 10 (USA's Monday night broadcast drew an un-cable-like 9.2 million viewers).
But for USA, the question was whether it was given a fair shake when the WWF first began talking to other companies about moving. USA's contract was set to expire in September, and the network said it had the right to match any offer to the WWF.
When Viacom came knocking, USA claimed it matched Viacom's $550,000-per-week offer, thereby granting the network first rights to the WWF. But Viacom said USA still couldn't match the fringe benefits--including countless promotional arrangements and production deals with the likes of CBS, TNN, MTV and UPN.
Chancellor William Chandler, of the Delaware Court of Chancery, agreed, lunging from the top ropes to issue a 55-page opinion denying USA's request, and citing "its own failed effort to match that agreement."
It's not known when the final WWF show will air on USA. But in a statement, USA Cable President Stephen Chao downplayed its importance: "We would have preferred a different decision," he says, "but as we said, the loss of the WWF will have negligible impact on our ratings and a positive effect on our cash flow."
WWF Chief Exec Linda McMahon applauded the decision, saying in a statement that the move to Viacom was simply a matter of getting a better offer. "We have had a long and mutually successful relationship with USA Networks," she says. "At this time we have a better and more comprehensive partnership with Viacom."





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