SportsLine.com, Inc. Agrees to Enter Into Strategic Relationship with MVP.com to Operate SportsLine's E-Commerce BusinessPartnership formed with Benchmark Capital, Freeman Spogli, Galyan's Trading Company, John Elway, Michael Jordan and Wayne Gretzky | |||
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FORT LAUDERDALE, FL (December 21, 1999) - SportsLine.com, Inc. (NASDAQ: SPLN), the leading global Internet sports media company and publisher of CBS SportsLine (http://cbs.sportsline.com), today announced that it has signed a letter of intent to enter into a 10-year strategic relationship under which SportsLine.com's domestic e-commerce business will be acquired and operated by MVP.com. A new sports and outdoor e-commerce destination, MVP.com was formed in partnership with Benchmark Capital, Freeman Spogli & Co., Galyan's Trading Company, John Elway, Michael Jordan and Wayne Gretzky. MVP.com has also entered into an $85 million media partnership with CBS Corp (NYSE: CBS). Under the proposed terms of the strategic relationship, SportsLine.com will receive $120 million in guaranteed cash payments over the 10-year period and an equity interest in MVP.com. MVP.com's new shopping site is expected to launch in January 2000. It will offer expert advice and insight from the world's top performers, along with a comprehensive selection of high-quality equipment and apparel for the sports, outdoors, fitness and active lifestyle markets. MVP.com has the financial backing of Benchmark Capital and Freeman Spogli & Co., and an expert retail partner in Galyan's Trading Company, one of the most highly regarded sports and outdoors retailers in the country. MVP.com will also receive $85 million in advertising, promotion and other consideration over a period of four years from CBS Corp., in exchange for an equity stake in the Company. "With the outstanding group of partners MVP.com has assembled, we believe it is well-positioned to emerge as the clear-cut winner in the sporting goods e-commerce space," said Michael Levy, founder and CEO of SportsLine.com. "Our alliance with MVP.com significantly enhances SportsLine's ability to capitalize on the enormous e-commerce market for sporting goods. This strategic relationship will create additional long-term shareholder value and enable us to continue offering our customers the best sporting goods shopping experience. Moreover, it will provide SportsLine.com guaranteed advertising revenue over the next 10 years, reducing costs and increasing profits, margins, and cash flow, while allowing us to fully focus our resources on our core sports media business." Under the proposed terms of the agreement, MVP.com will acquire and assume all responsibility for, and cost of operations of the co-branded stores. SportsLine Founder and CEO Michael Levy will serve on the Board of Directors of MVP.com, which includes Elway as the chairman, Jordan, Gretzky, Benchmark partner David Beirne, Freeman Spogli partner Ron Spogli and former Sears, Roebuck & Co. Senior Executive Vice President John Costello, who has been appointed chief executive officer. "Partnering with the preeminent assets of SportsLine.com will position MVP.com to lead the highly attractive $150 billion global sporting goods market," said John Costello, CEO of MVP.com. "SportsLine.com brings a sizable and very valuable audience to MVP.com." The transaction is subject to, among other things, the completion and execution of a definitive agreement and the receipt of requisite corporate and regulatory approvals. AboutSportsLine.com,Inc. SportsLine.com, Inc. is at the leading edge of media companies providing Internet sports content, community and e-commerce on a global basis. SportsLine.com, Inc.'s content includes more than 400,000 pages of multimedia sports information, entertainment and merchandise. Founded in 1994 as SportsLine USA, Inc., the Company changed its name to SportsLine.com, Inc. in November 1999. Its flagship Internet sports service (http://cbs.sportsline.com) was renamed CBS SportsLine in March of 1997 as part of an exclusive promotional and content agreement with CBS Sports. SportsLine.com, Inc. produces the official league Web sites for Major League Baseball, the PGA TOUR and NFL Europe League, and serves as the primary sports content provider for America Online, Netscape and Excite. In May 1999, the Company commenced operations in Europe through its majority-owned subsidiary, Sports.com Limited. Note: This press release contains forward-looking statements, which involve risks and uncertainties. SportsLine.com's actual results could differ materially from those anticipated in these forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in SportsLine.com's Securities and Exchange Commission filings, including those discussed under the caption "Risk Factors That May Affect Future Results" in SportsLine.com's latest Annual Report on Form 10-K. SportsLine.com undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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