It is a decision that reaches beyond being the most expensive and comprehensive broadcast package for a single university in the country to a probable marketing program targeted for the Pacific Rim to include China, Japan, Guam and the Mariana Islands. The $6.265 million KHNL bid to televise Rainbow sports the next five years includes a commitment to also give advertisers more exposure for their advertising dollar.
KHNL, which also leases KFVE, had the telecast rights to UH sports for the past 12 years. The annual cost was around $600,000, which doubled with yesterday's successful bid, the only one submitted by the 2:30 p.m. deadline.
"We know we're fairly close to the threshold of supply and demand," said John Fink, general manager for KHNL. "These are not great economic times and we can't assume the advertisers are going to handle the burden of our extra costs.
"We have to figure out a way to spice up the package and make it more attractive. We have to find a way to be fair to the advertisers while also providing the same value we've always provided and not ask them to pay for stuff they're not willing to pay for. We know we've got to be more creative."
It does not mean that Rainbow sports will go to a pay-for-view situation, which had been feared before Oceanic Cablevision withdrew from the bid process. It might mean, however, that KHNL/KFVE will have more of a presence in its mainland markets and on the Internet.
"Now that we have a five-year commitment, and the option for another five years, we can talk to UH about the merchandising potential," said Fink. "Hawaii is golden when you put it on a T-shirt. We're not talking about extra money but about extra value to insure the advertisers that their money is well spent. There is such a premium placed on UH sports because it's such a unique animal. From a marketing standpoint, every other station has news, dramas, sit-coms, sports. But there's only one place to find 'The Home Team.'
"I think it's a win-win situation."
The only apparent loser yesterday was former KGMB general manager Dick Grimm. Grimm, who recently accepted a reassignment with the station, had submitted a letter of intent to bid but turned in a "no bid" envelope at yesterday's proceedings.
"We just didn't have enough time to get all the technical stuff together, specifically with getting the one million households (on the mainland)," said Grimm, referring to the bid requirement to televise all UH football games to at least one million homes in Texas and from the Rocky Mountains to the West Coast.
KHNL/KFVE has a week to prove to the UH Office of Procurement, Property and Risk Management that it can meet all the bid specifications. Those include the $1 million per year fee, exclusive of appearance fees for coaches' shows; access to 1 million homes on the mainland in Western Athletic Conference areas; broadcast availability in at least 80 percent of the state's television households; and televising an eight-sport package that includes football, men's and women's basketball and volleyball, men's baseball and women's softball and soccer.
"We've had six months to think about every part of the requirement," said Fink. "I'm confident we'll meet all the specifications."
Athletic director Hugh Yoshida said he was happy to conclude the process.
"From a department standpoint, the (annual fee) numbers show how much we've grown in the last five years," Yoshida said. "There's still a number of issues to be addressed in regards to scheduling and scheduling conflicts. We still have to address the issue of gender equity, getting more exposure for our women's programs, and getting more of an identity on the mainland.
"I feel it was a fair proposal and a fair process. The fairness issue was a major concern and that's what caused us to take this long to get this resolved."
The contract calls for a payment of $1.21 million next fiscal year to increase to $1.230 in 1998-99 and then by $50,000 increments until it reaches $1.3 million in 2001-2002.