Last Labor Day, a new rivalry began when Stan Kroenke took his Colorado Avalanche and Denver Nuggets and launched a regional sports network, Altitude Sports & Entertainment.
Altitude became the first regional competitor for Fox Sports Net Rocky Mountain since that network started in November 1988.
Kroenke’s move created a heated battle: two sports networks, carried to essentially the same Rocky Mountain states, headquartered minutes from each other in downtown Denver.
A year later, there are still questions about Altitude’s prospects and about the network’s effect on Fox Sports Net Rocky Mountain, which previously televised Avs and Nuggets games.
After staggering out of the gates without the Avalanche because of the National Hockey League lockout, Altitude executives are calling this year the launch, part deux.
Fox Sports Net Rocky Mountain officials counter that unloading the expensive rights contract to the Avs and Nuggets helped the network turn a profit after years of losing money.
“Is it competition? Sure it’s competition, but it’s not unfriendly competition,” said Jim Martin, chief executive of Altitude, which is based at Kroenke’s Pepsi Center in the Central Platte Valley.
Behind the scenes, the rivalry is fierce, with both networks pursuing the same content deals.
Fox Sports Net Rocky Mountain, based less than a mile away at 2300 15th St., next to REI’s sprawling flagship store, has won the early battles for programming. The network secured a three-year deal for Denver Broncos programming last year and a multi-year deal for the Arena Football League’s Colorado Crush last week.
Both were coveted by Altitude.
Tim Griggs, Fox Sports Net Rocky Mountain’s top executive in Colorado, admits that operating under the umbrella of media behemoth Fox Broadcasting Co. has helped the network forge new content deals.
“That corporate structure has helped us move forward even with the loss of two professional teams,” said Griggs, the network’s vice president general manager.
Despite those deals, industry experts say Altitude still has the upper hand because it has the broadcast rights to two professional teams, the Avs and Nuggets, while Fox Sports Net Rocky Mountain has only the Colorado Rockies.
“There’s nothing that replaces anchor teams,” said Marc Ganis, president of SportsCorp Ltd., a Chicago-based sports business consulting firm.
Altitude executives are giddy about this year’s prospects as they prepare for life with the Avalanche.
“Last year, we were entering into it with one arm tied behind our back,” said Altitude senior vice president of sales and marketing Tom Philand. “This year’s almost like a relaunch.”
Altitude increased its staff from about 85 employees last year to 100 to prepare for the return of the Avs. This year, the network will have a weekly Avs show called “Avalanche Alert.” Also, all Nuggets and Avs games will be available in high-definition TV.
Altitude chief executive Martin said the network is expected to break even financially by its third season.
“Opening without hockey really cut into the benefits that Stan Kroenke may have expected,” Ganis said. “After Altitude is up for a year or two is when we’re going to see how much Fox Sports Net has been hurt.”
While Fox Sports Net Rocky Mountain had a drop in ad revenues because of the departure of the Avs and Nuggets, the network turned a profit last year by “retooling,” Griggs said.
He said the network has hired producers and other employees who handle multiple sports rather than having them dedicated to just the Nuggets or Avs. The network employs about 60 people in Colorado.
“We’re a deeper, stronger network,” Griggs said.
“Did we want to retain the Avs and Nuggets? Absolutely. But we weren’t going to financially cripple this network just to retain those teams.”
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.com.
