World Cup helps ESPN's expansion plans

NEW YORK ESPN marketers will fan out to bars in ethnic enclaves during World Cup matches to pass out schedules and posters, just one way the sports network is using the quadrennial event to build new audiences in both the U.S. and internationally.The network’s large presence of 300 staff members in South Africa for the soccer tournament could also be seen as a dry run to help a future Olympics bid.

Either ESPN, ESPN2 or corporate sister ABC is televising every one of the 64 scheduled matches in the first year the company has the American television rights to the tournament. ESPN leased rights to televise some games in 2006, covering some of the matches with announcing teams based in a Connecticut studio.

“We think it’s a chance to advance the notion that we are a global entity,” said John Skipper, the network’s executive vice president for content.One way to do that is to start at home. ESPN will promote itself heavily in areas where the network’s emphasis on American sports makes it less interesting to residents. The Greek enclave in Queens, N.Y., San Francisco’s Italian section, Boston’s Portuguese neighborhoods and Los Angeles’ Korean communities – all with fans keen on rooting on ancestral homelands – are among the areas that will get special attention.

Besides sending people to gathering places where the games are being watched, ESPN commissioned a South African artist to make posters honoring each of the participating countries, mixing historical and soccer themes. The U.S. poster, for example, commemorates George Washington crossing the Delaware, with soccer players standing in for his troops.

The network has equipped food trucks with a giant TV on the roof, passing out specialty foods from some of the participating countries in New York and Los Angeles, said Seth Ader, the network’s sports marketing senior director.Online and on ESPN Radio, the company will give fans the option of hearing broadcasts in different languages, including Chinese, German, Greek, Italian, Japanese, Korean and Portuguese.

In the U.S., Univision has the rights to Spanish-language broadcasts of the matches. Although ESPN can’t offer Spanish-language broadcasts of the matches, it is moving into the territory by offering 10 hours a day of studio-based Spanish content on its ESPN Deportes network.

Getting an identification as a destination for soccer fans “is a long-term business proposition for us,” Ader said. Showing the World Cup telecast can drum up interest in U.S.-based professional soccer, which ESPN has rights to televise. World Cup soccer is also expected to be a draw for ESPN’s mobile business, too.

Soccer is also key to ESPN’s efforts to expand in international markets. The network made a big move last year by purchasing the rights to show some games in England’s Barclays Premier League.”In order to get a foothold in a number of international markets, they need to get soccer content,” said David Joyce, an analyst for Miller Tabak & Co.

Having a home team helps ESPN but isn’t vital to success, the network’s executives believe. ESPN’s experience covering the European championship in 2008 was instructive: There was no U.S. team for which to root, but ethnic pockets of fans helped the network draw a strong audience, Ader said.

For ESPN, there’s another important audience that will be watching. Following NBC’s coverage of the 2012 Summer Olympics in London, rights to future games are up for grabs, and ESPN is expected to be interested. A strong performance at the World Cup could show doubting Olympics officials that ESPN would be up to covering a large, multifaceted event.

“I never think of this as a dress rehearsal,” ESPN’s Skipper said. “We think this entity is special enough as itself to merit this sort of attention. If there were no such thing as the Olympics, we would do the same thing. Having said that, we do believe this will demonstrate to people what we can do with a big quadrennial event. That’s an ancillary benefit.” (AP)

Federal regulators have got to address the "casino environment" on Wall Street where computerized high-frequency trading can trigger market-shaking turmoil

WASHINGTON Federal regulators have got to address the “casino environment” on Wall Street where computerized high-frequency trading can trigger market-shaking turmoil, Senate Banking Committee Chairman Chris Dodd said Sunday.Dodd, D-Conn., pointed to the new phenomena of computers buying and selling stock in nanoseconds as a possible cause of last Thursday’s meltdown. The market fell nearly 1,000 points within minutes before rebounding.The top Republican on the committee, Sen. Richard Shelby of Alabama, joined Dodd on CBS’ “Face the Nation” to agree that something must be done about a situation in which technology has gotten ahead of the regulators. “You’ve got a high risk in the market place that something could go wrong and once it really goes wrong it could be catastrophic,” Shelby said.

Dodd said his committee will hold hearings on last Thursday’s events. But he said that for now the priority is for the Securities and Exchange Commission and the Commodities Futures Trading Commission to come up quickly with answers for dealing with high-frequency trading marked by a lack of marketwide circuit breakers to prevent the market from spiraling out of control.

Dodd said he did not see a need for new legislation. The financial overhaul bill now being debated in the Senate does have early warning systems to detect problems such as having circuit breakers at only one exchange, he said.”You shouldn’t have a crisis like this happen before noticing that,” he said.

Dodd noted that the freefall on Wall Street occurred when there was good economic news: a sharp growth in jobs, particularly in the manufacturing sector. “So you are getting sort of this casino environment that’s appearing in our markets,” he said. “It does not reflect what’s going on in the real economy.”

Shelby said he had no information on speculation that the meltdown may have been the result of a cyber attack. White House counterterrorism adviser John Brennan said on “Fox News Sunday” that there was no evidence that a cyber attack was behind the market shake-up.(AP)

WASHINGTON The chairman of the Senate Homeland Security Committee says domestic terrorism is a real and growing danger Sen. Joe Lieberman

WASHINGTON The chairman of the Senate Homeland Security Committee says domestic terrorism is a real and growing danger Sen. Joe Lieberman, a Connecticut independent, says the political discourse in the U.S. turns extreme and incendiary at times, and that can lead some people to take radical actions.Federal authorities report an uptick in the activities of domestic extremist groups in the last year.Noting the recent bombings in Moscow, Lieberman says more must be done to protect trains, subways and buses in the U.S.Lieberman appeared Sunday on NBC’s “Meet the Press.”(AP)

President Barack Obama said that Congress needs to enact comprehensive financial reforms to protect consumers

WASHINGTON President Barack Obama said Saturday that Congress needs to enact comprehensive financial reforms to protect consumers, keep banks strong and ensure the U.S. economy doesn’t sink into another Great Depression.In his weekly radio and Internet address, Obama said “we need commonsense rules that will our allow markets to function fairly and freely while reining in the worst practices of the financial industry.”

That, he said, is the central lesson of the current financial crisis that has cost millions of Americans their jobs and nearly caused the collapse of the entire financial system.”And we fail to heed that lesson at our peril,” Obama said.

The Senate Banking Committee is set to begin debate on a more than 1,300-page bill authored by its chairman, Christopher Dodd, D-Conn., that would give the government unprecedented powers to split up firms that threaten the economy, force the industry to pay for its most spectacular failures and create an independent consumer watchdog.

Already, Obama said, industry lobbyists are gearing up to spend millions of dollars in an attempt to defeat the legislation.”In fact, the Republican leader in the House reportedly met with a top executive of one of America’s largest banks and made thwarting reform a key part of his party’s pitch for campaign contributions,” Obama said.The president said he remains a “vigorous defender” of free markets.

“But what we have seen over the past two years is that without reasonable and clear rules to check abuse and protect families, markets don’t function freely,” he said. (AP)

difficult situation for Democrats in Congress is worsening as the 2010

Senate Majority Leader Harry Reid

WASHINGTON An already difficult situation for Democrats in Congress is worsening as the 2010 political season opens.To minimize expected losses in next fall’s election, President Barack Obama’s party is testing a line of attack that resurrects George W. Bush as a boogeyman and castigates Republicans as cozy with Wall Street.Four House Democrats from swing districts have recently chosen not to seek re-election, bringing to 11 the number of retirements that could leave Democratic-held seats vulnerable to Republicans. More Democratic retirements are expected.

Over the holiday break, another Democrat, freshman Rep. Parker Griffith of Alabama, defected to the GOP. “I can no longer align myself with a party that continues to pursue legislation that is bad for our country, hurts our economy, and drives us further and further into debt,” said Griffith, who voted against Democrats’ three biggest initiatives in 2009: health care, financial regulation and reducing global warming.

In the Senate, at least four Democrats – including Majority Leader Harry Reid of Nevada and five-term Connecticut Sen. Chris Dodd – are in serious trouble. The party could also lose its grip on seats Obama held in Illinois and Vice President Joe Biden long occupied in Delaware.

Going into 2010, Democrats held a 257-178 majority in the House and an effective 60-40 majority in the Senate, including two independents who align themselves with Democrats.But they face an incumbent-hostile electorate worried about a 10 percent unemployment rate, weary of wars and angry at politicians of all stripes. Many independents who backed Democrats in 2006 and 2008 have turned away. Republicans, meanwhile, are energized and united in opposing Obama’s policies.

The one thing that heartens Democrats is that voters also don’t think much of the GOP, which is bleeding backers, lacking a leader and facing a conservative revolt.House Democrats began an ad campaign in December assailing Republicans for opposing legislation restructuring federal financial rules and recalling the final days of the Bush presidency, when the economy tanked.

“Remember? We all know we should never let this happen again,” the ad says. It lays into Republicans for voting “to let Wall Street continue the same risky practices that crippled retirement accounts and left taxpayers on the hook for $700 billion.”Maryland Rep. Chris Van Hollen, who heads the House Democrats’ campaign arm, said his party wants to remind voters who was on their side at a difficult time. “The Republican Party in Washington today is no different than the Republican Party that ran the Congress before,” he said.

But that was three years ago. Democrats have been in control since, and Bush is long gone. This is Obama’s country now. Democrats tried to use Bush against Republican Chris Christie in the New Jersey governor’s race in November – and Democratic Gov. Jon Corzine still lost.A top Democratic priority is minimizing losses among nearly four dozen seats the party now holds in moderate-to-conservative districts that Republican John McCain won in the 2008 presidential race. The most vulnerable in that group include Democratic Reps. Mary Jo Kilroy in Ohio, Harry Teague in New Mexico, Frank Kratovil in Maryland, Tom Perriello in Virginia and Travis Childers in Mississippi.

Reps. Bart Gordon and John Tanner, both of Tennessee, were in that group until they chose to retire. So was Griffith, before he switched to the GOP. Retirement announcements from Reps. Dennis Moore of Kansas and Brian Baird of Washington put two more Democratic seats in swing-voting districts on the GOP’s target list.

Democrats insist that Gordon, Tanner, Moore and Baird are leaving for personal reasons and are not the first ripple in a wave of retirements akin to 1994 when 28 Democrats chose not to run, and Republicans won control in part by winning 22 of those seats.”Democrats are beginning to see the writing on the wall, and instead of choosing to fight in a difficult political environment, they are taking a pass and opting for retirement,” said Ken Spain, a spokesman for the House GOP’s campaign arm.

The GOP will be defending at least a dozen open seats because of retirements, with several lawmakers leaving the House to run for higher office.The situation for Democrats in the Senate is nearly as grim as it is for them in the House.Democrats crowed after six Senate Republicans – four from swing states Florida, Ohio, Missouri and New Hampshire and two from GOP-leaning Kansas and Kentucky – announced retirements.

Spirited GOP challenges are now expected in all six states, and Republicans say they are optimistic they can retain the seats. An emboldened GOP also is looking to put a pair of senior Senate Democrats out of office.Reid, who is seeking a fifth term, is faring poorly in surveys in a hypothetical matchup with Nevada GOP chairwoman Sue Lowden, one of several Republicans competing for a chance to challenge him.

Dodd, the Banking, Housing and Urban Affairs Committee chairman who has taken heat for a discounted VIP mortgage loan he got from a subprime lender, has been consistently behind potential GOP challenger Rob Simmons in Connecticut polls. Simmons, a former House member, has his own challenger in World Wrestling Entertainment co-founder Linda McMahon, who also is seeking the Republican nomination for Dodd’s seat.

Also vulnerable are Sen. Blanche Lincoln, a moderate Democrat in GOP-leaning Arkansas, and Sen. Michael Bennet in Colorado, who was appointed when Ken Salazar became Obama’s interior secretary.

Republicans have high hopes for picking up Senate seats in Illinois and Delaware that were held by the president and vice president, respectively. Neither of their appointed successors is seeking election to the seats.

Early polling shows GOP Rep. Mark Kirk leading among Republican candidates in Illinois. Veteran GOP Rep. Mike Castle, a former two-term governor, is running for the Senate in Delaware. Biden’s son, Democratic state Attorney General Beau Biden, is considering whether to challenge Castle. (AP)