Fox Has Building Blocks for Sports Network: Berke

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July 19 (Bloomberg) -- Lee Berke, entertainment & media CEO at LHB Sports, talks with Trish Regan about the launch of Fox Sports 1, the resources the channel has to take on the dominance of ESPN and when the channel may turn a profit. He speaks on Bloomberg Television's "In The Loop."

Fox sports 1, can they be a competitor to espn?

They have the teams and property that could make a go of it.

They have major league baseball, nascar, the world cup -- did they pay a lot for these rights?

Yes, they made a substantial investment.

They can use those and put them on a 24-hour work sports network.

That is the one thing that they have not had that espn has been able to do well.

Others have tried it, nbc sports.

Espn is still formidable.

How will they compared to nbc sports?

They have brought in the nhl, the tour de france, and they are doing fine.

They are in about 90 million homes right now.

Fox sports?

About 90 million.

They will have one of the strongest launches for a national network.

Do they have the leverage because of the network behind them?

Yes, resources, property, and they're bringing on the talents >. i am surprised it has taken this long.

Espn has been and continues to be dominant.

It takes a lot of resources to make a 24-hour sports network.

What will this mean for their revenue potential?

The network itself will go cash flow positive in the next couple of years.

You think it will take three years?

A few years.

They have made a substantial investment, hundreds of millions of dollars for these properties, the talent, the studios they are setting up.

Beyond that, they have the opportunity to raise their subscription fees, asset sales, going out with an initial sub fee of about -- so there is a lot of room to grow.

Substantial upside.

When will they get close to an espn rate?

Down the road.

Sports continue to do well.

It continues to be successful.

It is one of the things that differentiates themselves from other services like netflix, hulu.

How important is the brand compared to the events themselves?

It is a combination, but unit of events that people will tune into.

People know the fox brand.

Espn was rated as the fifth year in a row as the most value cable network brand out there.

The fact that fox has substantial equity in its brand name, fox sports is well known, they want to translate that into a 24-hour network, but in the the properties -- but you need the properties.

Lee berke, president and ceo

This text has been automatically generated. It may not be 100% accurate.

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