NBC To Rumble With WWF

March 29, 2000 / 8:06 PM EST / CBS/AP

Two years after losing the National Football League, NBC is getting back into the game with a highly unusual partner.

The TV network said Wednesday it is joining with the World Wrestling Federation the marketing machine that turned body-slams into hot TV fare to launch a no-holds-barred "extreme" football league.

The WWF announced plans for the eight-team XFL league last month, but investors shunned the idea, sending the company's stock plummeting.

NBC's announcement that it plans to televise the XFL's games and take a 50 percent stake in the league gave the WWF's shares a boost Wednesday.

The companies insist that the league will be a real sport, not entertainment programming like WWF wrestling, where chair-smashing, outrageous antics and bizarre story lines are the preferred tools for luring in viewers.

There will be several changes to soup up the game, however, including eliminating the "fair catch" rule, shortening halftime to 10 minutes, and placing microphones in huddles, in locker rooms and on the sidelines.

Whether or not it's real football will likely be a subject for debate when the league's games begin next February, right after the NFL's Super Bowl. But NBC's motivations are clear in partnering with Vince McMahon, the chairman of World Wrestling Federation Entertainment Inc., who turned wrestling into a smash success on TV, in live events, and even in book publishing.

"In Vince McMahon, we're getting the best marketer in America," said Dick Ebersol, the head of NBC sports. "We're very interested in riding the success wave of the WWFE."

NBC has agreed to broadcast the games on Saturday nights. Separately, NBC is also paying $30 million to acquire a 3 percent stake in the World Wrestling Federation.

The deal marks a break from traditional sports broadcasting deals, under which networks place bids for the rights to show games. Prices for those rights have escalated sharply in recent years, leading NBC to opt out of the $18 billion deal the NFL negotiated two years ago with CBS, ABC, ESPN and Fox.

When McMahon announced formation of the XFL in early February, investors were put off by the estimated development costs of about $100 million. The company's stock fell 25 percent that day.

This time, with a major media company in as a 50-50 partner, the reception to the XFL project was far more friendly. Merrill Lynch analyst Seth Weber, who downgraded WWF stock in February, called the NBC deal "good for both sides."

WWF's stock went as high as $19.68 3/4 Wednesday and was trading up 6 1/4 cents at $17.37 1/2 in the late afternoon on the Nasdaq Stock Market. Shares of NBC's parent company, General Electric, were up $7.50 to $163.50 on the New York Stock Exchange.

But several doubts about the project remain. There have been numerous efforts in the pat, all of them unsuccessful, to launch a football league to rival the NFL. NBC itself flirted with the idea in 1998 with Turner Broadcasting as a potential partner.

CBS also looked into the idea after losing the NFL contract six years ago, but found the proposition too risky because of high costs and difficulty in attracting top talent.

Neal Pilson, who oversaw CBS's sports operations at the time and now heads his own consulting firm, said he remains skeptical about the XFL plan.

"I appreciate the power of their promotional ability, and what you may have here is a test of whether promotion can create demand," Pilson said. "I guess we're going to find out."

NBC and WWF officials say they expect to find enough talent from college players and amateurs to fill their ranks. They pointed to Super Bowl MVP Kurt Warner, who started as a grocery stocker, as an example of who could be available.

"There are thousands and thousands of players in America who want to and can play professional football," said Ebersol. "We don't expect problems finding players."

NFL commissioner Paul Tagliabue had no comment.