Fox to Merge 2 TV Sports Operations

Fox Entertainment Group is streamlining its sports business, putting its cable and broadcast operations under one umbrella and naming David Hill chairman and chief executive of the newly formed Fox Sports Television Group. Hill will not be replaced at Fox Broadcasting Co. While he will serve as an advisor to parent company News Corp.’s international services--such as Asia’s StarTV and Britain’s BSkyB--sources say Hill’s primary goal is to improve efficiencies at a time of skyrocketing costs for sports rights by merging the marketing, production and business affairs operations of broadcasting’s Fox Sports and Fox Sports Networks, which operates a group of regional channels, including Fox Sports West in Los Angeles. Merging the two units would also allow Fox to bid jointly for cable and broadcast rights to sporting events, just as Walt Disney Co. did during contract negotiations for NFL rights. Disney’s ESPN and ABC Sports are largely independent. Chase Carey, co-chief operating officer of Fox Entertainment, said Fox is able to restructure its sports business because of its purchase of the remaining 50% of the regional sports channels from Liberty Media Corp. Hollywood sources have speculated for at least a year that Hill, who is credited with transforming the presentation of sports on television, would return to sports because of clashes with the network culture.