49ers York And SF Mayor Newsom And Stadium Problem - Cecilia M. Vega For SF Chronicle

This is a very good and detailed explaination of the behavior of the principal actors in the 49ers Stadium deal.

Why talks on 49ers stadium fell apart
City and team misunderstood each other's positions

Cecilia M. Vega, Chronicle Staff Writer
Tuesday, November 21, 2006


The same faces gathered in the same room at San Francisco City Hall, just as they had done every week for almost a year, to come up with a proposal for a new 49ers stadium.

The conversation Oct. 30 centered on when to show the world exactly what a stadium, retail and housing development at Candlestick Point costing $1.4 billion to $2 billion would look like and the best time to put the project on the ballot and ask voters to approve it.

What most if not all of the people in that room didn't know -- not the city officials, not the real estate developers brought on board by the 49ers, possibly not even 49ers representatives themselves -- was that the meeting would be their last.

Nine days later, the team announced that plans for a new San Francisco stadium were off. The 49ers were moving to Santa Clara.

Exactly how the talks fell apart remains as much a mystery to fans as to many of those involved.

But in interviews with sources close to the talks and others who know the people involved, two themes emerged.

The two people pivotal to the talks -- Mayor Gavin Newsom and 49ers co-owner John York, men with strikingly different personalities -- never formed the kind of relationship that breeds success.

York, at times, felt blindsided by the mayor's public pronouncements and snubbed by his failure to return phone calls.

Newsom's team and developers working with the 49ers found York obsessed with minor details at the expense of the big picture and inexperienced when it came to overseeing a high-stakes deal.

Beyond that, the interviews suggest that the two sides mis-communicated and misunderstood each other's position in the talks. The result was that when city officials thought they were on the verge of an agreement, the 49ers were becoming exasperated with a process they found tedious and politicized.

"We were completely taken aback," Newsom said the day after learning the team planned to leave San Francisco.

"We were baffled and surprised that they were baffled and surprised," 49ers spokeswoman Lisa Lang said last week.

City leaders still hope that the team will stay and that a plan to build a stadium in San Francisco can be salvaged. A Board of Supervisors hearing to explore the proposal for Candlestick is slated for today in City Hall.

The effort to rebuild the aging city-owned stadium at Candlestick Point is more than a decade old. In 1997, city voters backed a $100 million bond issue for a stadium-mall, but that project never came to fruition.

After years of false starts and turmoil within the family that owns the 49ers, the push for a new stadium gained momentum last fall. Eleven months ago, a coalition of city officials, the development company Lennar Corp. and the 49ers began weekly meetings to try to hammer out a plan.

But problems emerged early.

In April, The Chronicle broke a story that San Francisco officials had been lobbying Sacramento to pass state legislation that would allow a judge to decide whether the team and city could -- without returning to the ballot -- proceed with a stadium plan different from the one voters approved in 1997.

The mayor reacted by saying he never had any intention of denying voters a say on a new stadium -- a statement that stunned the 49ers, who already had fought and narrowly won a multimillion-dollar campaign and had no intention of going through another one.

Making matters worse, team co-owner York first learned that the 49ers would have to go before the voters again by reading about it in the newspaper, rather than hearing it from city officials.

"The assumption was that we would not have to go back before the voters," Lang said. "That was certainly a big surprise to read about that in the paper."

Another person in the talks said the mayor's response certainly frustrated the team, but the 49ers never gave any indication it was a deal-breaker.

"That got them miffed," said the source, who like many involved asked to remain anonymous so as not to disrupt future discussions. "But it wasn't the end of the world."

Though neither York nor Newsom was present, representatives from the mayor's office, the 49ers and Lennar continued meeting nearly every week.

Economic and political pressures were mounting.

The 49ers play in the oldest unremodeled stadium in the NFL, according to York. The team, desperate for a venue comparable to those generating much more money for other franchises, has set 2012 as its deadline to play in a new stadium.

In 2004, Newsom set next year as his deadline to have a new stadium in the works.

"I'm not going to wait until the last year of the 49ers' lease to start something," he told The Chronicle, referring to the agreement under which the team plays at Candlestick, which expires in 2008.

Newsom also had political reasons for wanting a deal with the 49ers before next year. He will be up for re-election, and having the stadium proposal settled, as well as a plan to bring thousands of new housing units and retail establishments to the impoverished Candlestick area, would be a campaign boost.

By July, everything seemed in order. The 49ers went public with their preliminary plans for a new San Francisco stadium to test the climate among voters and fans.

Team officials excitedly showed computer renderings of what the 68,000-seat arena would look like.

Still, Lang, the 49ers spokeswoman, cautioned at the time that if the proposal fell through in San Francisco, Santa Clara was the backup.

At the same time, Newsom was pushing ahead to bring the 2016 Olympic Games to San Francisco and to hold the Opening and Closing ceremonies at the new 49ers stadium.

By September, a partnership was in the works between the team and the committee working to bring the Olympics to town to make hosting the Games at Candlestick possible.

But during a City Hall meeting Sept. 11, Lang said the team's chief financial officer explicitly told city officials and developers that the 49ers had major reservations about the project, particularly when it came to a proposed parking structure, which the team felt would have cost fans too much time to get in and out of and would have inhibited the age-old ritual of pregame tailgating.

And by Sept. 14, York had sent a letter to Newsom saying the city should not base the centerpiece of its Olympic plans on a stadium project that had not been finalized.

The mayor and his team appear to have not taken the warning seriously, some sources say. But representatives for York also continued to show up for City Hall meetings, signaling that everything was on track, others contend. City officials said that by Sept. 18, the team had even agreed to work further on parking challenges in the proposal.

"Yes, issues came up," a city official said. "But that's the nature of the development process. Issues come up, and you solve them."

The miscommunication trickled down to the most basic issues -- like whether the two sides were even really engaged in negotiations all along.

The 49ers now say they believed their participation in the talks, even as recently as the meeting Oct. 30, was simply about wading through the details of a complex real estate venture to see what worked best for the team. To them, the city and developers were jumping the gun.

"It was not a negotiation," Lang insisted, saying there was no signed agreement or contract between the parties. "We were in the midst of a long feasibility study."

Many in the talks on behalf of the city and developer Lennar Corp. found that assertion puzzling, given the amount of time spent on detailed discussions.

"What is this, the twilight zone?" one asked, rhetorically.

Versions vary about what happened behind closed doors.

"The tone of the meetings all the way along was pretty excited," one source said, meaning many involved in the talks thought that they were movingly along smoothly and that all parties were content.

"There were meetings when people were yelling at each other," another source said.

Adding to the confusion was city officials' insistence on having tight control over the meetings and on Washington-style secrecy, according to those involved in the talks. They often insisted that communication be spoken, rather than written, in case the media requested copies under government open-records laws.

When some documents were generated reflecting the direction of the discussions, they couldn't be removed from City Hall, sources said.

The resistance to put anything down in black and white could have contributed to a perception by the 49ers that doing business in San Francisco is a difficult, sometimes tedious, process.

It wasn't just economic and political issues associated with the project that made the talks complicated. The people who had the final say on each side were complicated, too.

York and Newsom couldn't have more opposite personalities or more different approaches to the business deal. York was so concerned with details that he reportedly reviewed carpet samples. Newsom was so removed from the project that sources said he failed to return important phone calls, an assertion the mayor denies.

York and his wife, Denise DeBartolo York, took control of the franchise in 2000 after a bitter, public battle with Denise's brother, Eddie DeBartolo Jr.

Many who know John York, a pathologist by trade, say he is not skilled enough in business to manage a $600 million-$800 million stadium proposal -- much less hundreds of millions of dollars worth more of housing and retail construction.

"He drags his feet along and can't decide on details," said one person involved in the negotiations.

Instead of being engaged in the larger issues in the deal, York busied himself with fabric samples for seats and carpet swatches for luxury boxes, the source said.

"He was a pathologist. He studied how people died," the source said. "The trouble is, this was a live stadium development, and John's too deathly afraid to make a mistake."

York may have been the lead decisionmaker for the team outside of City Hall, but he wasn't present regularly during the discussions. His 25-year-old son, Jed; the team's chief financial officer, Larry MacNeil; and Lang, the team's vice president of communications, were. And insiders said the 49ers group lacked the real estate and political experience necessary to understand the complicated deal.

But many also blamed Newsom for not reaching out enough to the Yorks over the course of the talks.

The mayor did not return several calls York made in the spring to address concerns he had with the proposal, sources involved in the talks said. Eventually Newsom assigned his chief of staff, Steve Kawa, to sit in on all the meetings and be a point man in meetings with York.

"John has a lot of respect for Kawa," a person involved in the talks said, "but he would have liked to continue to have connections with the mayor."

The relationships -- or lack thereof -- may have further damaged an already troubled deal.

"He should have made sure it was rolling along properly, schmoozing with John some," said another source who knows both men.

Newsom, however, said he did have "plenty of dinners and dozens of phone calls" over the years with York. But there were no dinners as the deal progressed this year, others countered.

"I gotta run a city," Newsom said. "I can't give up all my time and say I'm going to spend it with you. I'm not going to spend all my time giving up on everything else."

The talks -- carried out by surrogates -- persisted right up until the last meeting Oct. 30.

Those involved debated whether to place the new stadium proposal on the ballot in June or in March, the month before the city would learn whether it was a possible contender in the 2016 Olympic Games.

The thought was that if voters approved a new stadium measure, it would practically secure San Francisco's chances of being picked by U.S. Olympic officials to host the games.

To Newsom's staffers and the developers in the room that day, the talk was a sign they were close to finishing this long-anticipated project. To the representatives from the 49ers, though, it was yet another meeting in a long series of discussions that seemed headed down the wrong path.

One person on hand said there was no mention of the 49ers' intention to leave town that day.

"I left that meeting," the source said, "like a kid going to a Christmas party. I'm thinking this is about to finally happen."

Others said they also left the meeting feeling that a public announcement about the proposed stadium at Candlestick was imminent.

The location to unveil the plan had already been selected -- the impoverished Bayview community that stood to gain the most from the new development. The press release was ready to go.

Then, on Nov. 8, York phoned Newsom to deliver the news the 49ers were headed to Santa Clara; the call ended abruptly. The next day the team held a news conference and made the announcement official.

Since that announcement, elected officials at City Hall and from San Francisco in the state Legislature and Congress have threatened legal and legislative action to keep the 49ers in the city in which they were founded.

Newsom and York, or his son, Jed, have on three occasions sat down face to face -- a departure from the meetings of underlings that had been routine for months.

On Monday, there was no sign that progress had been made in persuading the team's owners to reconsider.

Jed York sent an e-mail to undisclosed recipients noting that he had received a death threat after the announcement of the 49ers' plan to leave the city.

"Keeping the 49ers in the Bay Area is essential," he wrote. "We have looked at many sites, but the one in Santa Clara is the best option to date."

Tucker Carlson - White's Only Scholarship? Just Say Tucker, That's Stupid

I've got Tucker Carlson's show on - the one called The Situation -- and he's actually supporting the idea of a White's only scholarship at Boston U!

Well, not really.

His point is that having such a program shows how stupid race-based programs are. Or do they? I think they show just how selfish and myopic people who come up with this ideas -- or support them -- are. I feel terrible that I have to remind people like Tucker (who's show I actually enjoy) that the reason we have minority-based programs is because the people they are intended for are -- minority.

Get it? Hello?

These programs exist because of numerous examples of discrimination in the White community that runs in the common scholarship programs. This is an age-old way to get over that problem. If the people who don't like these programs want to do something, they should embrace diversity.

Tucker and people who agree with him don't want to embrace diversity. Well, then they should not complain about the continued existence of race-based scholarships.

OH! I noticed they don't complain about sex-based programs. I guess that's because they benefit White women. Wow, now that's racist.

This society is becoming a weird mix of racist people -- regardless of color -- and those of us sitting right in the middle.

Without our own TV show.

Yet...

S.O.G. (Same Old New York Giants)

The New York Giants have sunk to a new low with their 26-10 Loss to the Jacksonville last night. As I sat there watching i continued to be amazed at how porus the giants defense was, how horrid the offense was. This was a chance to heal some wounds opened by The Chicago Bears in last week's game.

I know from the first few moments of the game that it would be a long night. I could see losing to the Bears, who could be one of the teams playing in Miami In Super Bowl XLI(or 41 for those who not read Roman) but Jacksonville? a team that was headed to the outhouse instead of the big house until a few weeks ago?

Could it have been Head Coach Jack Del Rio's Rebook-made suit with the fancy newfangled snaps? More likely it was Tiki Barber's season low 27 yards rushing, or QB Eli Manning's 2 Interceptions. In any case, the New York Giants are in Deep Trouble, and sinking fast.

Michael Richards Violates California Hate Crimes Law - Film Here

What you're about to see is video of a direct violation of California's Hate Crimes Law. For those who don't know what the law says, this is the list of what an officer or California lawyer is to look for. Go through it, look at the video, and then draw your own conclusion. You will agree that what Seinfeld's Michael Richards did was a hate crime:

Initial review of a suspected hate crime should consider the following factors:

Is the motivation of the offender known?
Are the victim and the offender from different racial, religious, ethnic, sexual orientation, or is the victim targeted because of his or her physical or mental disability?
Were any racial, religious, ethnic, sexual orientation, physical or mental disability bias remarks made by the offender?
Were there any offensive symbols, words or acts that are known to represent a hate group or other evidence of bias against the victim's group?
Does the victim perceive the action of the offender to have been motivated by bias?
Did the incident occur on a holiday or other day of significance to the victim's group or the offender's group?
What do the demographics of the area tell you about the incident - was the victim in an area where the predominant population is dissimilar to the victim's group?
Is there no clear other motivation for the incident?
Second level of review before making the final determination of whether an incident was motivated by bias:

Is the victim a member of a targeted racial, religious, ethnic, sexual orientation, physical or mental disability group?
Has the victim or victim's group been subjected to repeat attacks of a similar nature?
Does a substantial portion of the community where the crime occurred perceive that the incident was motivated by bias?
Would the incident have taken place if the victim and offender were the same race, religion, ethnic group, sexual orientation, physical or mental disability?

The Hate Crime Law reads:

Any act of intimidation, harassment, physical force or threat of physical force directed against any person, or gamely, or their property or advocate, motivated either in whole or in part by hostility to their real or perceived race, ethnic background, religious belief, sex, age, disability, or sexual orientation, with the intention of causing fear or intimidation, or to deter the free exercise or enjoyment of any rights or privileges secured by the Constitution or the laws of the United State of California whether or not performed under color of law.

Now, take a look at this video of Michael Richard in the act. This is the evidence we have and as a warning, it's nasty and distasateful:

Rumor: San Francisco 49ers Considering Hunters Point - SF Chronicle / Matier and Ross

This also reports that the 49ers would rather deal with Forest City than Lennar. Why?

Hunters Point could be in play for the Niners
Phillip Matier, Andrew Ross
Monday, November 20, 2006

With the 49ers' plan for a new stadium at Candlestick Point sunk in the mud, insiders at San Francisco City Hall are revisiting the idea of building at Hunters Point -- in an area that could be paved over with lots of parking.

Here's why.

Cut through all the double talk, and the 49ers' problems come down to two key points.

One: All the Niners are really interested in is a new stadium and a parking lot. Despite all the smiles and public pronouncements over the years, they are not comfortable with the mega housing and retail development deal they cut with the city and Lennar Corp. to pay for the stadium. And they don't want the multilevel parking garage at Candlestick that was going to go along with it.

And two: Their relations with Mayor Gavin Newsom haven't been great and aren't getting a lot better.

Team spokeswoman Lisa Lang said Friday that "our goal is to build a stadium -- not a small city." Trying to get the malls and 6,500 units of housing done along with a 68,000-seat stadium, all while playing in the existing Monster Park, put the team's envisioned 2012 finish date in jeopardy, she said.

Hence the Niners' decision to turn their attention to Santa Clara, where co-owner John York and his family thought building would be easy.

"They sort of have this Midwestern, suburban 1970s view of how things can get done,'' said one San Francisco official who talked with the Yorks in recent days.

"They want a new stadium," said the official, who didn't want his name used because of the ongoing talks. "They want a smooth transition from the current one to the new one. And they don't want all of this other stuff that they just don't understand.''

Unfortunately for the Yorks, the idea of leaving San Francisco also set off an avalanche of threatened lawsuits, legislative roadblocks and bad publicity. And, of course, it did nothing to endear the Niners to Newsom.

Which brings us back to Point Two.

The mayor's absence from talks with the team, and his decision to have underlings handle the negotiations, is said to have rankled the Niners' owners. Then, for some reason, York expected the mayor to turn down the temperature once the team shifted plans, according to sources who spoke with the co-owner after his meeting with Newsom last week.

Instead, the opposite happened. Newsom made it clear he would use every weapon he had -- from lawsuits to Congress -- to keep the team here.

Newsom also told York he wanted the team to spell out the specific problems with the Candlestick Point deal, be they lousy access roads, inadequate public transit or whatever else York felt was a deal-breaker.

In other words, Newsom wanted a checklist that, if dealt with, would mean the team stayed.

Since speaking with Newsom, York and his son Jed have had several meetings and phone conversations with both city officials and others close to the deal.

Recipients of the Yorks' calls, who asked not to be identified because of the sensitive nature of the talks, said the Niners' concerns appear to be far greater than the fear John York expressed publicly that the stadium proposal wouldn't provide for a good "fan experience.''

Among other things, it has started to surface that if the team is to build anything at Candlestick, it would much rather do so with Forest City Enterprises -- builders of the recently opened Westfield San Francisco Centre downtown -- than with Lennar.

At the same time, city officials are looking for another way to make the general area work for the team. So, if not Candlestick, where?

One idea starting to simmer: Build the stadium across the way on the old Hunters Point Naval Shipyard, an idea that was looked at earlier and rejected.

The shipyard site would require a new four-lane road. But the Niners could get all the parking they want, plus they could keep playing at Candlestick while the project was built.

At this point it's just an idea, and the mayor remains committed to seeing if the Candlestick deal can be saved. At the same time, York appears just as firmly committed to pursuing Santa Clara.

But until the whole deal sinks -- if it does -- word is going out for everyone with the city to calm down.

State Sen. Carole Migden, D-San Francisco, even had a pack of the mayor's most vocal critics -- Board of Supervisors President Aaron Peskin and Supervisors Chris Daly, Jake McGoldrick and Ross Mirkarimi -- in her office Friday. Later, she got Supervisor Gerardo Sandoval by phone.

The message: Hold off on the potshots at the 49ers or Newsom, at least for the time being.

Daniel McVicar's Vlog - Rocketboom

I met Daniel McVicar at a brunch held one day after The Vloggies, a "first-of-its-kind" awards show in San Francisco. He's an actor -- best know for "The Bold and the Beautiful" -- based in Santa Monica who's really taken to vlogging. Here's a show he did with Andrew Baron and Joanne Colan of Rocketboom. Check out his site at http://www.danielmcvicar.com , and his vlog site "Late Night Mash."

Matt Leinart - Arizona Cardinals QB Loosing Confidence In Denny Green - Profootball Talk.com

Pro Football Talk.com has this report on Matt Leinart:

LEINART LOSES CONFIDENCE

As the Arizona Cardinals pack it in under coach Dennis Green, a source close to quarterback Matt Leinart says that the 2004 Heisman winner and the No. 10 overall pick in the draft is trying to prop up his teammates by telling them that things will get better, but he can get no positive response.

The source also believes that Leinart's swagger from losing only three games in four years at USC is evaporating.

"He is really rattled by the losing," said the source. "He is searching for a way to get [the team] to buy in to his attitude, but it's getting harder because his confidence is almost gone."

The growing concern among those close to Leinart is that he'll end up as another David Carr, the No. 1 overall pick in 2002 who has been tossed around like a Chihuahua at a Doberman convention in five seasons with the Texans.

"Lots of talent but too many sacks to realize the full potential," the source said.

In our view, it's all the more reason that the Bidwills should make a good decision about the future of the franchise, hiring a coach who can help give Leinart the confidence to be the on-field leader that this team hasn't had since the days of Jim Hart.

Dallas Cowboys Home Game Tickets for Sale

You can buy Dallas Cowboys tickets to all games with a click here:
Dallas Cowboys Tickets

UCLA Police Use Taser Weapon On Minority Student - Why? - Video

This is reallly hard to even listen to, but it happened. For some reason American society is allowing the creation of a law enforcement officials who go about their jobs with an over-zealous approach that indicates a contempt for the people in the community. It's as if the officers are giving punishment before the accused is actually convicted of a crime -- an act that in itself is a constitutional violation.

This happens in this terrible video:

NFL - Cowboys' Emmitt Smith Wins "Dancing With The Stars" - Video

For the second time in as many years, an NFL star has won Dancing with The Stars. Last year, it was Jerry Rice; this year Emmitt Smith's the winner.

Here's a clip of his dancing:

ALL NFL GAMES SOLD OUT FOR 10TH CONSECUTIVE WEEK - NFL Media.com

NATIONAL FOOTBALL LEAGUE
280 Park Avenue, New York, NY 10017
(212) 450-2000 * FAX (212) 681-7573
WWW.NFLMedia.com

Joe Browne, Executive Vice President-Communications
Greg Aiello, Vice President-Public Relations
FOR USE AS DESIRED

11/10/06
ALL GAMES SOLD OUT FOR 10TH CONSECUTIVE WEEK

The unprecedented NFL sellout streak continues. It’s now 10 straight weeks of advance sellouts.

All games of the NFL schedule for this Sunday and Monday -- Week 10 -- have sold out in advance of the local TV blackout deadline. That means every NFL game this weekend will be televised in the home-team market for an unprecedented 10th straight week.

Every game this season has been sold out at least 72 hours in advance and televised locally. Previously, the most sellout weekends in one season was four in 2004 and 2005.

It will be the 23rd time since the NFL blackout policy took effect in 1973 that blackouts have been lifted for all games on a single weekend. The 23 times have been once in 1998; three times in 2000; once in 2001; four times in 2002 and 2005; and 10 times this season.

The NFL blackout policy states that games sold out 72 hours prior to kickoff can be televised in the home city.

Amanda Congdon Goes From Rocketboom To ABC News Now - Business Week

From Rocketboom to ABC
Video blogger Amanda Congdon is the latest "cewebrity" to jump to mainstream media; an industry is forming to help others follow her lead

by Catherine Holahan

Internet celebrity Amanda Congdon just finished broadcasting her cross-country relocation from New York to L.A. on the World Wide Web. Now she is making another move—this one from online to on air. The former host of Rocketboom, one of the most popular video blogs on the Web, with roughly 211,000 daily viewers, has a new gig as a contributor for Disney's (DIS) ABC network.

Congdon will regularly appear on the network's 24-hour digital channel ABC News Now and occasionally appear as a correspondent on the network's TV news broadcasts. She will also host a weekly video blog, or "vlog," on abcnews.com focusing on topics such as new media, politics, and the environment. "She certainly has the eyes and ears of a great many people who may have only trafficked in Internet information," says Michael Clemente, executive producer of ABC News Digital Media. "I would love to see her talking to [Illinois Senator] Barack Obama, new people with new products, and all sorts of things."

In addition, Congdon is developing a comedy for Time Warner's (TWX) HBO, which itself has plans to beef up online programming (see BusinessWeek.com, 11/2/06, "HBO's Bold Broadband Plans"). Congdon will star in the show, which will appear both online and on air in different forms. The subject matter has yet to be determined.

Talent Search
The new ABC role may make Congdon the first video blogger to make the jump to a major network. For the 25-year-old actress, the new job sounds like a dream. "What really excites me is the concept of bridging the gap between old and new media," says Congdon. "I am just so excited that these networks are open enough to let me do all these different projects."

Congdon, however, is not the first "cewebrity" to parlay fame on the Web into a real-world job. Joe Eigo, a 26-year-old martial artist and gymnast, was relatively unknown until he uploaded video clips of his acrobatic fighting style to the Internet. Since then, Eigo's clips have been downloaded millions of times and he was scouted to join Jackie Chan's stunt team. He also landed an appearance in the movie Around the World in 80 Days. Several other online video personalities have used their notoriety to sign with prominent talent agencies and further careers in comedy, media, and entertainment (see BusinessWeek.com, 10/30/06, "Don't I Know You from the Internet?").

In fact, major movie and TV studios are increasingly looking to the Web for new talent for both on- and offline projects. IQ Films and Steelyard Pictures used Yahoo's (YHOO) Jumpcut.com to conduct an online casting call for their latest movie, The Power of Few.

Agencies on the Lookout
Dina Kaplan is chief operating officer and cofounder of blip.tv, which features Congdon's AmandaAcrossAmerica blog. Kaplan says she is regularly approached by traditional media outlets that see her online vlog hosting site as a place to mine new talent. "We have had meetings with a bunch of Hollywood agencies," says Kaplan. "They see us as a farm team for them."

Talent agencies also see the Net's potential. United Talent Agency, which represents actors including Vince Vaughn, has created a Digital Media Dept. to bring online stars into traditional media. UTA counts video blogger Hosea "Ze" Frank, host of The Show with Ze Frank, and Kent Nichols, co-creator of the Ask a Ninja video blog, among its clients.

Music companies are also looking online for new talent. This month, Music Nation will start letting musicians upload music videos to its site as part of a record deal contest with Epic Records. Universal and EMI also plan to sponsor online star searches (see BusinessWeek.com, 10/30/06, "American E-Idol").

Looking to Profit Online
In many cases, traditional media companies are more interested in keeping Internet stars online than putting them on air. The idea is reaching a new and, in many cases, younger audience. "When you have conversations with traditional platforms, often the biggest interest is not to leverage whatever buzz you have online to move to a traditional platform," says Frank. "They are trying to figure out how to make this model work in the online space."

Traditional media have a big incentive to court Internet stars. Online advertising is expected to grow to $25.2 billion in 2010, consuming 8.9% of all advertising spending, says research firm eMarketer. That's up from $15.9 billion—or roughly 5.7% of total ad spending—this year.

ABC has been particularly deliberate about expanding on the Web. While other news programs, such as those at CBS (CBS) and NBC (GE), have Web simulcasts and video blogs, ABC News has a 15-minute daily newscast just for Internet audiences. Most major networks have also been moving their new programs online to create more buzz and wrap in new audiences (see BusinessWeek.com, 10/11/06, "Click Here to Catch Up on CSI"). ABC is no exception, making episodes of such shows as Lost, Grey's Anatomy, and Desperate Housewives available free online.

Awards and Advertisers
Kaplan has no qualms sharing talent such as Congdon with TV. As more people become famous for vlogs, more people are likely to begin producing better blogs to attract mainstream media attention. The better their blogs, the more audiences and advertisers will want to associate themselves with online content and brokers like blip.tv.

To help market their talent, PodTech, blip.tv, Yahoo Video, Intel (INTC), Guba, Revver, and others helped arrange the first ever "Vloggies," an Oscar-like black-tie ceremony for video bloggers. The awards were handed out on Nov. 4 in San Francisco. Winning top honors were Ask a Ninja, Frank, and the crew that develops Alive in Baghdad, a series of video blogs by Iraqis.

As vlogs have become more mainstream, advertisers have also begun taking notice. They have experimented with ads on videos shown on user-generated video site Revver. They are also working with companies such as AOL and News Corp.'s (NWS) MySpace to incorporate advertising on user-generated video sites.

The Copyright Effect
However, these deals have been slow to take off because of concerns about the kinds of content on user-generated video sites. The difficulty of filtering copyrighted material from millions of user-produced videos has also given some advertisers pause, according to Metacafe CEO Arik Czerniak. To allay those concerns, Metacafe has begun paying users for licenses and uses both human video reviewers and technology to ferret out copyrighted content. MySpace has also begun aggressively removing copyrighted content (see BusinessWeek.com, 10/31/06, "Music Downloading's New Deal").

With sites moving to make user-generated content safer for advertisers, online celebrities and their videos are likely to become even more appealing for major networks and others. That means more cewebrities could turn into genuine celebrities. "The first time I ever put a video on the Net, I didn't know it would have such a great effect," says Eigo. "Now I know it can make dreams come true."

Holahan is a writer for BusinessWeek.com in New York.