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Jordan, Elway’s Net play
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December 21, 1999: 7:43 p.m. ET
John Elway, Michael Jordan and Wayne Gretzky launch sports Web site
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NEW YORK (CNNfn) - Sports icons John Elway, Michael Jordan and Wayne Gretzky are set to take on the Internet, announcing Tuesday plans to blend sports content with e-commerce on their new site, MVP.com.
The retired legends have raised more than $65 million with leading venture capital firm, Benchmark Capital and Freeman Spogli & Co. and the new business is expected to go public next year.
The Chicago-based Web site is slated to launch in January and will sell outdoors, fitness and active lifestyle equipment and apparel and also feature advice from leading professional athletes.
"The opportunity to become a founding owner and give real input and advice are what attracted me to this new venture,” said Jordan. "The ability to combine my knowledge of sporting goods and equipment with the new medium of the Internet made this an exciting and natural fit for me.”
Elway has been tapped as the company's chairman, and will head the board of directors, with Jordan and Gretzky also taking board seats. All three athletes will lead MVP.com's board of advisers and have invested an undisclosed sum in the business.
Former Sears, Roebuck & Co. senior executive vice president John Costello has been named CEO of the new Web company. Costello told CNNfn that the relationship the athletes have with the company goes well beyond the typical endorsement deal. (671K WAV or 671K AIFF)
CBS Corp. (CBS) will provide $85 million in advertising and promotion over a four-year period in exchange for an equity stake.
Since March, CBS has significantly expanded its Internet holdings, making investments in Web-related concerns, including Medscape, Office.com, Hollywood.com, Switchboard Inc. and is a tenant on America Online (AOL).
MVP.com will also issue stock to acquire and operate the online retail business of SportsLine.com (SPLN), publisher of CBS Sportsline. In addition, terms of an exclusive, 10-year marketing agreement call for MVP.com to pay $120 million in cash to be the sole e-commerce partner for sports and outdoors products on SportsLine.com's domestic online properties. SportsLine will also take an equity position in MVP.com.
Costello told CNNfn that both CBS and SportsLine would provide broad reach to consumer. (557K WAV or 557K AIFF)
"MVP.com is positioned to lead the highly attractive $150 billion global sporting goods market by combining a carefully selected assortment of merchandise with advice from individuals like John, Michael and Wayne, who represent the top of their fields," said Costello. 
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