3 Retired Sports Greats to Acquire Online Retail Site

A new online venture led by sports legends Michael Jordan, John Elway and Wayne Gretzky has agreed to take over the online retailing business of SportsLine.com Inc., publisher of the CBS SportsLine Web site, the companies said Tuesday.

Under the deal, SportsLine.com will receive $120 million in guaranteed cash payments over 10 years and receive an equity interest in the venture, MVP.com.

MVP.com Inc., whose other backers include Silicon Valley venture capital firm Benchmark Capital, sports retailer Galyan’s Trading Co. and Los Angeles-based Freeman Spogli & Co., expects to launch an online retailing site for sporting goods early next year.

In addition, MVP.com has formed an online advertising pact with CBS Corp., the media conglomerate that also holds a major stake in SportsLine.

MVP.com would acquire and assume all operating responsibilities for SportsLine’s electronic commerce business.

SportsLine spokesman Larry Wahl said the e-commerce business generates about 25% of the company’s total revenue. SportsLine will continue to own and operate its core Internet-based sports media business.

MVP.com would receive $85 million in advertising, promotion and other “consideration” over four years from CBS. CBS would get an undisclosed equity stake in MVP.com.

Former pro football star Elway is MVP.com’s chairman. Retired basketball superstar Jordan and ex-hockey great Gretzky also serve on the board.

Michael Levy, SportsLine’s founder and chief executive, will join the three sports heroes on the MVP.com board.

Rounding out the seven-member board are 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 of MVP.com.

SportsLine.com shares rose 88 cents to close at $63.25 on Nasdaq. CBS shares closed off 80 cents at $58.94 on the New York Stock Exchange.