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Not even Harrah's can get a penny of positive cash flow directly from ESPN for the WSOP Main Event anymore. The advertising dollars Harrah's has to pay ESPN on behalf of PartyGaming and Miller Brewing should more than offset the "rights fee" ESPN has agreed to pay Harrah's for the video rights to the WSOP.

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Can you explain this? Why does Harrah's have to pay anything to ESPN?

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The financial risk burden for the WSOP TV product has been shifted from ESPN to Harrah's.

The old contract:

1. ESPN pays cash to Harrah's for the "rights fee"
2. ESPN sells advertising to PartyGaming, Miller Brewing, Toyota, Levitra, Degree, etc. in order to recoup the rights fee and the production cost.

The new contract:

1. ESPN still designates a "rights fee" in the contract, but does not actually pay Harrah's any cash.

2. Harrah's now sell "integrated" sponsorship and "product placement" to Miller Brewing and PartyGaming, which include logos on tables, overhead banners at the Rio Pavilion, inflatable displays in the hallway, beer tents, seat cushions with logos, and most importantly, TV ads.

3. Harrah's pays ESPN for the TV ads on behalf of Miller Brewing and PartyGaming.

The amount Harrah's pays ESPN on behalf of Miller and PartyGaming more than offsets the "rights fee" and the production cost.

In effect, Harrah's is now paying ESPN to put the WSOP on ESPN. ESPN doesn't have to put one penny of cash at risk with the new WSOP TV deal.

That's how one can disguise what is effectively a "TV time buy" deal as a "rights fee" contract.