CBS almost paid ESPN to broadcast the NCAA Tournament

It doesn't take a genius to realize that ESPN had an interest in broadcasting the NCAA Tournament.

No other network broadcasts more games or spends more time on air discussing college hoops during the regular season. And given ESPN's multiple networks and online broadcasting ability (with ESPN 3), it only made sense.

But I don't think anyone could have predicted this. From the NY Times:

An extraordinary idea was broached last fall when CBS was trying to shave the huge losses it anticipated over the remaining years of its contract to televise the N.C.A.A. men’s basketball tournament. CBS talked with ESPN about paying it to take the 2010 to 2013 tournaments off its hands, according to four executives with direct knowledge of the talks who were not authorized or willing to speak publicly.

Apparently, the issue was over how much money CBS was losing. This year, they lost an estimated $50 million broadcasting the tournament, and due to their high costs (the old contract CBS had with the NCAA locked them into paying around $700 million for the 2011-2013 tournament broadcasting rights) and how much the recession has shrunk advertising revenues, CBS stood to lose upwards of $200 million each of the next three years.

In other words, CBS would have lost less money by paying ESPN to broadcast the event.

But that situation never came to fruition as the NCAA decided to opt out of the old deal, and CBS was able to partner up with Turner Broadcasting to air the NCAA Tournament for the next 14 years.