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CNN Live At Daybreak

Baseball, Steroids; 'Business Buzz'

Aired March 17, 2005 - 06:31   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Good morning to you. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Five sisters and the finance of a man killed by members of the Irish Republican Army will attend a reception today at the White House. Not on the list of invited guests: Jerry Adams, the leader of the political wing of the IRA.

Secretary of State Condoleezza Rice is in Afghanistan, where she met today with U.S. troops in Kabul. Talks with Afghan officials are now in progress, and it's believed they're centering on reconstruction of that war-ravaged country.

Police are looking for convicted sex offender John Couey in the disappearance last month of a 9-year-old Florida girl, Jessica Lunsford. Couey, described as a person of interest, was last seen in Savannah, Georgia.

Actor Robert Blake has been acquitted of charges that he killed his Bonny Lee Blakley. Now he says he's looking forward to driving around the country. Blake still faces a wrongful death lawsuit in his wife's death.

To the forecast center now.

(WEATHER REPORT)

COSTELLO: It should be an interesting day on Capitol Hill. The baseball steroid congressional hearings begin today. On tap, Congressmen Waxman and Davis are leading the charge, hoping everybody will show up: Jose Canseco, Mark McGwire, Rafael Palmeiro, Curt Schilling, Sammy Sosa and Frank Thomas.

Schilling has said publicly he doesn't want to go because of spring training. Thomas has a bad ankle. His doctor is telling him he shouldn't fly. So, it should be interesting today. But then there are those binding subpoenas. This is Jose Canseco.

Joining us now from Washington with more on how these hearings will play, CNN Radio's Dick Uliano.

Good morning -- Dick.

DICK ULIANO, CNN RADIO: And a good morning to you, Carol.

COSTELLO: So who is first up?

ULIANO: Well, we've got, of course, former ballplayers. The lead-off hitter, Jose Canseco, the former player, who has got that book out called "Juice." And also former player Mark McGwire. And, of course, you mentioned some of the current ballplayers. And Canseco not given immunity. None of these players are given immunity. But, as you say, they have been required to appear under threat of congressional subpoena.

And, Carol, critics of these hearing -- by the way, this is really clearly the biggest of congressional events so far this year, really garnering a lot of attention for this hearing. And critics complain that Congress is grandstanding here. After all, Major League Baseball put in an anti-steroid policy that kicked off in January for the season. They see Congress as Johnny-come-lately. Where were you 5 or 10 years ago, they ask?

Well, the leaders of the committee, Republican Tom Davis of Virginia, Democrat Henry Waxman, say no, this is timely. They don't like baseball's policy, don't think it's tough enough. And they say the issue here is the children of America, and they need to understand that steroids are dangerous, they're risky, and that's why all of this is taking place.

COSTELLO: Well, all right, Dick Uliano live from Washington.

With me now here in New York, Mark Conrad, an associate professor of legal and ethical studies at Fordham University.

Welcome.

MARK CONRAD, FORDHAM UNIVERSITY: Thank you.

COSTELLO: Congressmen Waxman and Davis sent a letter to Bud Selig, saying basically that he fibbed about what's in baseball's new written policy on steroids. I want our audience and you to listen to what Bud Selig said back in February. Let's listen to this.

(BEGIN VIDEO CLIP)

BUD SELIG, MLB BASEBALL COMMISSIONER: We have random year-round testing, immediate suspension. The people who test positively are immediately identified, so that everybody on the North American continent is going to know whom they are.

(END VIDEO CLIP)

COSTELLO: That immediately identified part, Waxman and Davis say that is not in baseball's written policy. The written policy is actually quite a bit weaker than what Bud Selig has said publicly. Does that make this hearing more than grandstanding?

CONRAD: I think it's going to be interesting, and we're going to see a lot of the theatrics today. But the congressional committee may be on to something, because these kinds of documents are not always readily available. And, of course, we got the press reports, like you did, regarding what the new plan is going to be.

The plan, in fairness to baseball, is tougher than what was decided before. Also, this is something that the union and management agreed to. Unlike the Olympics, unlike amateur athletics, the fact of the matter is when you have a labor management situation, this has to be negotiated. Baseball cannot impose a drug policy on its employees, like any unionized shop. They have to negotiate. That is a working condition. They have done that.

But having said that, if they find loopholes in this particular program based on what was said in February and what was revealed now, it could be very embarrassing to baseball today.

COSTELLO: It should be very interesting. I want to ask you about Jose Canseco's book, because here he is, yapping it up on television stations across America, saying, oh, yes, he injected this guy with steroids, I took -- steroids are everywhere. And he's going to plead the Fifth before Congress?

CONRAD: I think you have a credibility problem here. I mean, I read the book. I think a lot of people read the book. It's a tell- all kind of biography. It basically says I did this, I did that. And on top of it, he basically says that steroids used in moderation is a good thing. I mean, that flies in the face of just what anybody else says.

I mean, I don't know if Canseco is a pharmacologist or what. I don't think so by his training. But he certainly comes off at times in the book as being really sanctimonious. He names names, but he doesn't give a lot of specifics. If you're going to make allegations -- and I'm not saying the allegations are all false. I can't say that. There's probably a kernel of truth there at least. But nevertheless, it had that kind of, here I was doing this, here I was teaching them everything I know. I really have to wonder why now Congress decides to hold hearings after the book is the No. 2 best- seller on the market.

COSTELLO: OK, a last question for you. Do you think these -- will anything come of these hearings?

CONRAD: I think one thing baseball has to be worried about, because Congress can do things against it as a business. Baseball still has an antitrust exemption. Congress can eliminate that. Also, baseball teams have a lot of tax advantages under tax laws.

COSTELLO: Oh.

CONRAD: And Congress can say, you know what, guys? If you don't play the game the way we want, we can make life a little bit difficult in the tax returns.

COSTELLO: Mark Conrad from Fordham University. Thank you for joining DAYBREAK this morning.

CONRAD: Thank you.

COSTELLO: CNN's Soledad O'Brien now joins us for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.

We're going to have much more, in fact, on today's steroid showdown. The big question, as you mentioned: Will Congress ask Mark McGwire and Sammy Sosa that tough question? Were they juiced during their epic battle for the single-season home run record back in 1998? You know, they've either got to answer the big question, or they've got to take the Fifth, or they've got to be given immunity, right? Those are the only options out there. We'll see.

We're going to talk with one lawmaker this morning. He's now raising concerns over baseball's policy on steroid use.

Also this morning, Carol, we're talking to the Reverend Jesse Jackson. Michael Jackson calls the Reverend Jackson almost every day around 4:30 in the morning. He's become his spiritual adviser. So, what exactly do they talk about? And why is Reverend Jackson saying the trial is unfair? We'll have answers to those questions ahead on "AMERICAN MORNING" at the top of the hour -- Carol.

COSTELLO: I must say, I'm interested in that one, Soledad. Thank you.

Martha Stewart is on the docket. Find out what could happen with her today.

And remember the first time you listened to your favorite tunes with portable headphones? Well, wait until you see the new and improved Walkman.

And a little bit of mush for you on this St. Patrick's Day, the finish to the Iditarod.

But first, here's a look at what else is making news this Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: That was the Beastie Boys, in case you were wondering.

It's time now for a little "Business Buzz." With the amazing popularity of Apple's iPod, Sony has been left behind. But Sony is updating its Walkman.

Chris Huntington is here with a look at this new tiny device.

CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Well, you know, that imitation is the sincerest form of flattery. If you're Apple, you might just be a little bit concerned about this imitation. This is Sony's foray into the huge market for MP3 players. And as Sony does this, you can expect they'll do it well.

It's coming out with a whole line-up of MP3 music players. The big advantage that they're going after Apple with on the Sony line-up is battery life. The Sony models are a little bit more expensive to comparable Apple models with regard to how much music they can play, but the battery life is extraordinary.

This little guy here has a battery life of 70 hours...

COSTELLO: Wow!

HUNTINGTON: ... on a single AAA battery. And it can hold, we're told, up to 70 hours of music. It's just -- you know, it's a remarkable little device.

They sell in a range from about 100 to 300 bucks, depending on how many bells and whistles you want to get.

COSTELLO: So, you download music into that. It's not like the old Walkmans, where you had an AM-FM radio.

HUNTINGTON: You have to download, and you have to download legally, Carol, of course.

COSTELLO: Of course.

HUNTINGTON: Of course we all know that.

COSTELLO: Of course, Chris.

HUNTINGTON: And they'll be hitting the stores within the next month.

On Wall Street, keep an eye out for shares of Viacom. The huge media company is considering splitting itself into two. Basically, a cable television group -- keep in mind, Viacom owns MTV, VH1, Country Music Television, a whole bunch of others, Nickelodeon. On the broadcast side, CBS. Also radio channels run by Infinity, huge business there. It may be splitting into two.

Sumner Redstone, the 81-year-old chairman, has had a lock on the lead of that company that's been concerned about who would take the reins from him. Well, now, if you go with two companies, the two guys that are also there, Les Moonves takes over broadcast. Tom Freston continues running MTV. Tom Freston, for those in the business, he has been -- he was one of the chief architects of MTV in the early days.

This is just being considered. This is typical Wall Street stuff. They fly it up the flagpole and see what people think. If they think they can make some money out of it, they'll do it.

COSTELLO: Gotcha. Chris Huntington, thank you.

Lawyers for Martha Stewart could go to court today to appeal her criminal conviction before a three-judge panel. Stewart has served the prison part of her sentence for lying about stock sale. But today's appeal is still important.

CNN's Allan Chernoff is following this story. Allan, explain this to us.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning Carol.

Well, it's a really unusual situation, because, as you know, Martha Stewart has already done her jail time. And usually, you would have a person actually waiting to go to prison until they finish their appeal. But Martha Stewart wanted to get it out of the way. Of course, she's still doing her five months of home detention.

But she is expected to show up this morning in court to see if she can get her name cleared.

Now, her attorneys have filed two briefs, 150 pages worth. A three-judge panel has already read through those legal briefs, and they'll be questioning her attorneys, basically a Q&A session that we'll have this morning. Her attorneys claim that the trial where she was convicted was simply unfair.

That one example, the prosecution had referred to insider tapes. And her attorneys say, well, the jury got the sense that Martha Stewart was being criminally charged with insider trading. That wasn't the case. And that is one of many arguments that they are making before this three-judge panel.

So, Martha Stewart is at least hoping to clear her name today.

COSTELLO: Well, yes, but there are other charges she faces, even after this appeal, right?

CHERNOFF: Very true. She wasn't criminally charged with insider trading, but she still is facing a civil case from the Securities and Exchange Commission, which has charged that Martha Stewart did engage in inside trading. So, that case is still pending. It's been on hold as this criminal case has been going through.

It's widely expected -- and we understand from sources actually very close to the case -- that there most likely will be a settlement of those civil charges once this criminal case is resolved.

By the way, we should also point out the three-judge panel is not going to issue an opinion today. They'll take their time, write up an opinion, take a couple of months most likely.

COSTELLO: Yes, I was going to say, we'll know in a couple of months. Allan Chernoff live in New York this morning. Thank you.

When the Iditarod mushers began their journey, you heard a lot one woman's inspirational journey with her dogs. We'll tell you how the race ended for her, next on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: Happy St. Patrick's Day.

Your news, money, weather and sports. It is 6:48 Eastern. Here's what's all new this morning.

A House committee opens a hearing a little more than three hours from now into baseball's steroids policy. Several current and former high-profile players have been called to testify. None of them are being given immunity.

Funeral services will be held today for four of the seven people killed during a church service at a hotel in Brookfield, Wisconsin. Terry Ratzmann opened fire on congregation last weekend before shooting himself.

In money news, Qwest Communications is expected to add nearly half a billion dollars cash to its bid for MCI today. Qwest's nearly $9 billion bid is up against Verizon, which is offering $6.6 billion.

In culture, accomplished stage and film actor Hugh Jackson will host this year's Tony Awards. Broadway's best acts will be honored on June 5 at New York's Radio City Music Hall.

And in sports, big man, big bucks. Wait until you hear this. Six-time Pro Bowl offensive tackle Orlando Pace has signed a seven- year deal with the St. Louis Rams. The Rams are going to pay him, Chad -- I can't even say this it's such a big amount of money.

CHAD MYERS, CNN METEOROLOGIST: 52.9, Carol.

COSTELLO: $52.9 million!

MYERS: But that's over seven years!

COSTELLO: Yes, but that's more than the gross national product of some small countries.

MYERS: Of course, it is. Good morning. I don't know. They think he's worth is. And he played like it last year.

(WEATHER REPORT)

COSTELLO: I guess that's just a little over 8.5 million bucks a year, right, for Orlando Pace?

MYERS: Yes, something like that.

COSTELLO: That would be nice.

There is a winner. A Norwegian crosses the finish line first in Alaska's 1,100 mile Iditarod sled dog race. It's the second win for Robert Sorely (ph). He finished in nine days, 39 minutes and 31 seconds and gets 72 grand and a pickup truck. He doesn't get 8.5 million bucks a year.

Well, legally-blind musher Rachel Scadorez (ph) was an inspiration as she tackled the difficult journey from Anchorage to Nome, but she has dropped out of the competition. But she did give it a go, so good for her.

Let's check in with CNN's Soledad O'Brien for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Soledad.

O'BRIEN: Hey, Carol, good morning to you.

Some legal experts are saying this morning that they are shocked by the not guilty verdict in the Robert Blake trial. So how did the jurors reach their decision? It may not be because they thought Blake was innocent. It might be what they thought of the prosecution. We're going to check in with them and ask them about that when they join us this morning.

Also some new details on that so-called person of interest in 9- year-old Jessica Lunsford's disappearance. Police say they are looking for a convicted sex offender. Here is the shocker. Police questioned him on Saturday and then let him go. We're going to ask the local sheriff on that case just what happened.

Those stories are ahead this morning, Carol, at the top of the hour in just a few minutes.

Back to you.

COSTELLO: We'll be here. Thank you, Soledad.

Still ahead on DAYBREAK, honors for an American boxing legend today. You are watching DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: It is 6:54 Eastern. Here is what will be making news later today.

The battle for the life of a severely brain-damaged Florida woman will go before the U.S. Senate today. Late last night, the House approved a bill to keep a feeding tube in Terri Schiavo until the case goes to federal court. Right now, her husband can remove the tube as early as tomorrow.

Congress is also taking on baseball and steroid use. About three hours from now, a committee will hear from executives and players about just how widespread steroid use is in Major League Baseball. Representatives say they want to make sure baseball's new drug policy isn't full of loopholes.

And tonight, boxing legend Muhammad Ali receives the Common Ground lifetime achievement award. He's being honored for his work in promoting peace and tolerance.

And, Chad, when we come back, oh, you're going to give away a DAYBREAK mug.

MYERS: And I'll ask two more questions.

COSTELLO: But as we go to break, happy St. Patrick's Day.

MYERS: Yes.

(COMMERCIAL BREAK)

MYERS: I love the socks.

COSTELLO: I was going to say, I kind of like that outfit. I think I'll wear it tomorrow.

MYERS: I love the socks.

COSTELLO: It's time to give away a mug.

MYERS: Carol, it's a green tea mug today in honor of St. Patrick's Day.

COSTELLO: Excellent.

MYERS: A bad try. Anyway, here are the answers to yesterday's questions. What movies are making the most money, "R" or "PG?" The answer is "PG." And a jury found the former CEO of what company guilty? And that would be WorldCom's CEO Bernie Ebbers.

We had 595 correct answers, Carol. It's getting difficult to pick the winner, but from Lloyd Harbor, New York, it is Thomas DePre. Thank you very much. Congratulations. Your mug is in the mail.

Now for some questions for today. What did the San Francisco Giants initially call the project to hire a fantasy baseball fan? And, No, 2, you have to answer them both, who will replace Michael Powell as chairman of the FCC?

CNN.com/daybreak. Your answers are there. The old questions are still there, but they will be missing and replaced in just a couple of seconds, Carol.

COSTELLO: All right, thank you, Chad.

MYERS: OK.

COSTELLO: "AMERICAN MORNING" starts right now. Happy St. Patrick's Day, everyone.

MYERS: See you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired March 17, 2005 - 06:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning to you. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Five sisters and the finance of a man killed by members of the Irish Republican Army will attend a reception today at the White House. Not on the list of invited guests: Jerry Adams, the leader of the political wing of the IRA.

Secretary of State Condoleezza Rice is in Afghanistan, where she met today with U.S. troops in Kabul. Talks with Afghan officials are now in progress, and it's believed they're centering on reconstruction of that war-ravaged country.

Police are looking for convicted sex offender John Couey in the disappearance last month of a 9-year-old Florida girl, Jessica Lunsford. Couey, described as a person of interest, was last seen in Savannah, Georgia.

Actor Robert Blake has been acquitted of charges that he killed his Bonny Lee Blakley. Now he says he's looking forward to driving around the country. Blake still faces a wrongful death lawsuit in his wife's death.

To the forecast center now.

(WEATHER REPORT)

COSTELLO: It should be an interesting day on Capitol Hill. The baseball steroid congressional hearings begin today. On tap, Congressmen Waxman and Davis are leading the charge, hoping everybody will show up: Jose Canseco, Mark McGwire, Rafael Palmeiro, Curt Schilling, Sammy Sosa and Frank Thomas.

Schilling has said publicly he doesn't want to go because of spring training. Thomas has a bad ankle. His doctor is telling him he shouldn't fly. So, it should be interesting today. But then there are those binding subpoenas. This is Jose Canseco.

Joining us now from Washington with more on how these hearings will play, CNN Radio's Dick Uliano.

Good morning -- Dick.

DICK ULIANO, CNN RADIO: And a good morning to you, Carol.

COSTELLO: So who is first up?

ULIANO: Well, we've got, of course, former ballplayers. The lead-off hitter, Jose Canseco, the former player, who has got that book out called "Juice." And also former player Mark McGwire. And, of course, you mentioned some of the current ballplayers. And Canseco not given immunity. None of these players are given immunity. But, as you say, they have been required to appear under threat of congressional subpoena.

And, Carol, critics of these hearing -- by the way, this is really clearly the biggest of congressional events so far this year, really garnering a lot of attention for this hearing. And critics complain that Congress is grandstanding here. After all, Major League Baseball put in an anti-steroid policy that kicked off in January for the season. They see Congress as Johnny-come-lately. Where were you 5 or 10 years ago, they ask?

Well, the leaders of the committee, Republican Tom Davis of Virginia, Democrat Henry Waxman, say no, this is timely. They don't like baseball's policy, don't think it's tough enough. And they say the issue here is the children of America, and they need to understand that steroids are dangerous, they're risky, and that's why all of this is taking place.

COSTELLO: Well, all right, Dick Uliano live from Washington.

With me now here in New York, Mark Conrad, an associate professor of legal and ethical studies at Fordham University.

Welcome.

MARK CONRAD, FORDHAM UNIVERSITY: Thank you.

COSTELLO: Congressmen Waxman and Davis sent a letter to Bud Selig, saying basically that he fibbed about what's in baseball's new written policy on steroids. I want our audience and you to listen to what Bud Selig said back in February. Let's listen to this.

(BEGIN VIDEO CLIP)

BUD SELIG, MLB BASEBALL COMMISSIONER: We have random year-round testing, immediate suspension. The people who test positively are immediately identified, so that everybody on the North American continent is going to know whom they are.

(END VIDEO CLIP)

COSTELLO: That immediately identified part, Waxman and Davis say that is not in baseball's written policy. The written policy is actually quite a bit weaker than what Bud Selig has said publicly. Does that make this hearing more than grandstanding?

CONRAD: I think it's going to be interesting, and we're going to see a lot of the theatrics today. But the congressional committee may be on to something, because these kinds of documents are not always readily available. And, of course, we got the press reports, like you did, regarding what the new plan is going to be.

The plan, in fairness to baseball, is tougher than what was decided before. Also, this is something that the union and management agreed to. Unlike the Olympics, unlike amateur athletics, the fact of the matter is when you have a labor management situation, this has to be negotiated. Baseball cannot impose a drug policy on its employees, like any unionized shop. They have to negotiate. That is a working condition. They have done that.

But having said that, if they find loopholes in this particular program based on what was said in February and what was revealed now, it could be very embarrassing to baseball today.

COSTELLO: It should be very interesting. I want to ask you about Jose Canseco's book, because here he is, yapping it up on television stations across America, saying, oh, yes, he injected this guy with steroids, I took -- steroids are everywhere. And he's going to plead the Fifth before Congress?

CONRAD: I think you have a credibility problem here. I mean, I read the book. I think a lot of people read the book. It's a tell- all kind of biography. It basically says I did this, I did that. And on top of it, he basically says that steroids used in moderation is a good thing. I mean, that flies in the face of just what anybody else says.

I mean, I don't know if Canseco is a pharmacologist or what. I don't think so by his training. But he certainly comes off at times in the book as being really sanctimonious. He names names, but he doesn't give a lot of specifics. If you're going to make allegations -- and I'm not saying the allegations are all false. I can't say that. There's probably a kernel of truth there at least. But nevertheless, it had that kind of, here I was doing this, here I was teaching them everything I know. I really have to wonder why now Congress decides to hold hearings after the book is the No. 2 best- seller on the market.

COSTELLO: OK, a last question for you. Do you think these -- will anything come of these hearings?

CONRAD: I think one thing baseball has to be worried about, because Congress can do things against it as a business. Baseball still has an antitrust exemption. Congress can eliminate that. Also, baseball teams have a lot of tax advantages under tax laws.

COSTELLO: Oh.

CONRAD: And Congress can say, you know what, guys? If you don't play the game the way we want, we can make life a little bit difficult in the tax returns.

COSTELLO: Mark Conrad from Fordham University. Thank you for joining DAYBREAK this morning.

CONRAD: Thank you.

COSTELLO: CNN's Soledad O'Brien now joins us for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.

We're going to have much more, in fact, on today's steroid showdown. The big question, as you mentioned: Will Congress ask Mark McGwire and Sammy Sosa that tough question? Were they juiced during their epic battle for the single-season home run record back in 1998? You know, they've either got to answer the big question, or they've got to take the Fifth, or they've got to be given immunity, right? Those are the only options out there. We'll see.

We're going to talk with one lawmaker this morning. He's now raising concerns over baseball's policy on steroid use.

Also this morning, Carol, we're talking to the Reverend Jesse Jackson. Michael Jackson calls the Reverend Jackson almost every day around 4:30 in the morning. He's become his spiritual adviser. So, what exactly do they talk about? And why is Reverend Jackson saying the trial is unfair? We'll have answers to those questions ahead on "AMERICAN MORNING" at the top of the hour -- Carol.

COSTELLO: I must say, I'm interested in that one, Soledad. Thank you.

Martha Stewart is on the docket. Find out what could happen with her today.

And remember the first time you listened to your favorite tunes with portable headphones? Well, wait until you see the new and improved Walkman.

And a little bit of mush for you on this St. Patrick's Day, the finish to the Iditarod.

But first, here's a look at what else is making news this Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: That was the Beastie Boys, in case you were wondering.

It's time now for a little "Business Buzz." With the amazing popularity of Apple's iPod, Sony has been left behind. But Sony is updating its Walkman.

Chris Huntington is here with a look at this new tiny device.

CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Well, you know, that imitation is the sincerest form of flattery. If you're Apple, you might just be a little bit concerned about this imitation. This is Sony's foray into the huge market for MP3 players. And as Sony does this, you can expect they'll do it well.

It's coming out with a whole line-up of MP3 music players. The big advantage that they're going after Apple with on the Sony line-up is battery life. The Sony models are a little bit more expensive to comparable Apple models with regard to how much music they can play, but the battery life is extraordinary.

This little guy here has a battery life of 70 hours...

COSTELLO: Wow!

HUNTINGTON: ... on a single AAA battery. And it can hold, we're told, up to 70 hours of music. It's just -- you know, it's a remarkable little device.

They sell in a range from about 100 to 300 bucks, depending on how many bells and whistles you want to get.

COSTELLO: So, you download music into that. It's not like the old Walkmans, where you had an AM-FM radio.

HUNTINGTON: You have to download, and you have to download legally, Carol, of course.

COSTELLO: Of course.

HUNTINGTON: Of course we all know that.

COSTELLO: Of course, Chris.

HUNTINGTON: And they'll be hitting the stores within the next month.

On Wall Street, keep an eye out for shares of Viacom. The huge media company is considering splitting itself into two. Basically, a cable television group -- keep in mind, Viacom owns MTV, VH1, Country Music Television, a whole bunch of others, Nickelodeon. On the broadcast side, CBS. Also radio channels run by Infinity, huge business there. It may be splitting into two.

Sumner Redstone, the 81-year-old chairman, has had a lock on the lead of that company that's been concerned about who would take the reins from him. Well, now, if you go with two companies, the two guys that are also there, Les Moonves takes over broadcast. Tom Freston continues running MTV. Tom Freston, for those in the business, he has been -- he was one of the chief architects of MTV in the early days.

This is just being considered. This is typical Wall Street stuff. They fly it up the flagpole and see what people think. If they think they can make some money out of it, they'll do it.

COSTELLO: Gotcha. Chris Huntington, thank you.

Lawyers for Martha Stewart could go to court today to appeal her criminal conviction before a three-judge panel. Stewart has served the prison part of her sentence for lying about stock sale. But today's appeal is still important.

CNN's Allan Chernoff is following this story. Allan, explain this to us.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning Carol.

Well, it's a really unusual situation, because, as you know, Martha Stewart has already done her jail time. And usually, you would have a person actually waiting to go to prison until they finish their appeal. But Martha Stewart wanted to get it out of the way. Of course, she's still doing her five months of home detention.

But she is expected to show up this morning in court to see if she can get her name cleared.

Now, her attorneys have filed two briefs, 150 pages worth. A three-judge panel has already read through those legal briefs, and they'll be questioning her attorneys, basically a Q&A session that we'll have this morning. Her attorneys claim that the trial where she was convicted was simply unfair.

That one example, the prosecution had referred to insider tapes. And her attorneys say, well, the jury got the sense that Martha Stewart was being criminally charged with insider trading. That wasn't the case. And that is one of many arguments that they are making before this three-judge panel.

So, Martha Stewart is at least hoping to clear her name today.

COSTELLO: Well, yes, but there are other charges she faces, even after this appeal, right?

CHERNOFF: Very true. She wasn't criminally charged with insider trading, but she still is facing a civil case from the Securities and Exchange Commission, which has charged that Martha Stewart did engage in inside trading. So, that case is still pending. It's been on hold as this criminal case has been going through.

It's widely expected -- and we understand from sources actually very close to the case -- that there most likely will be a settlement of those civil charges once this criminal case is resolved.

By the way, we should also point out the three-judge panel is not going to issue an opinion today. They'll take their time, write up an opinion, take a couple of months most likely.

COSTELLO: Yes, I was going to say, we'll know in a couple of months. Allan Chernoff live in New York this morning. Thank you.

When the Iditarod mushers began their journey, you heard a lot one woman's inspirational journey with her dogs. We'll tell you how the race ended for her, next on DAYBREAK.

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COSTELLO: Happy St. Patrick's Day.

Your news, money, weather and sports. It is 6:48 Eastern. Here's what's all new this morning.

A House committee opens a hearing a little more than three hours from now into baseball's steroids policy. Several current and former high-profile players have been called to testify. None of them are being given immunity.

Funeral services will be held today for four of the seven people killed during a church service at a hotel in Brookfield, Wisconsin. Terry Ratzmann opened fire on congregation last weekend before shooting himself.

In money news, Qwest Communications is expected to add nearly half a billion dollars cash to its bid for MCI today. Qwest's nearly $9 billion bid is up against Verizon, which is offering $6.6 billion.

In culture, accomplished stage and film actor Hugh Jackson will host this year's Tony Awards. Broadway's best acts will be honored on June 5 at New York's Radio City Music Hall.

And in sports, big man, big bucks. Wait until you hear this. Six-time Pro Bowl offensive tackle Orlando Pace has signed a seven- year deal with the St. Louis Rams. The Rams are going to pay him, Chad -- I can't even say this it's such a big amount of money.

CHAD MYERS, CNN METEOROLOGIST: 52.9, Carol.

COSTELLO: $52.9 million!

MYERS: But that's over seven years!

COSTELLO: Yes, but that's more than the gross national product of some small countries.

MYERS: Of course, it is. Good morning. I don't know. They think he's worth is. And he played like it last year.

(WEATHER REPORT)

COSTELLO: I guess that's just a little over 8.5 million bucks a year, right, for Orlando Pace?

MYERS: Yes, something like that.

COSTELLO: That would be nice.

There is a winner. A Norwegian crosses the finish line first in Alaska's 1,100 mile Iditarod sled dog race. It's the second win for Robert Sorely (ph). He finished in nine days, 39 minutes and 31 seconds and gets 72 grand and a pickup truck. He doesn't get 8.5 million bucks a year.

Well, legally-blind musher Rachel Scadorez (ph) was an inspiration as she tackled the difficult journey from Anchorage to Nome, but she has dropped out of the competition. But she did give it a go, so good for her.

Let's check in with CNN's Soledad O'Brien for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Soledad.

O'BRIEN: Hey, Carol, good morning to you.

Some legal experts are saying this morning that they are shocked by the not guilty verdict in the Robert Blake trial. So how did the jurors reach their decision? It may not be because they thought Blake was innocent. It might be what they thought of the prosecution. We're going to check in with them and ask them about that when they join us this morning.

Also some new details on that so-called person of interest in 9- year-old Jessica Lunsford's disappearance. Police say they are looking for a convicted sex offender. Here is the shocker. Police questioned him on Saturday and then let him go. We're going to ask the local sheriff on that case just what happened.

Those stories are ahead this morning, Carol, at the top of the hour in just a few minutes.

Back to you.

COSTELLO: We'll be here. Thank you, Soledad.

Still ahead on DAYBREAK, honors for an American boxing legend today. You are watching DAYBREAK.

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COSTELLO: It is 6:54 Eastern. Here is what will be making news later today.

The battle for the life of a severely brain-damaged Florida woman will go before the U.S. Senate today. Late last night, the House approved a bill to keep a feeding tube in Terri Schiavo until the case goes to federal court. Right now, her husband can remove the tube as early as tomorrow.

Congress is also taking on baseball and steroid use. About three hours from now, a committee will hear from executives and players about just how widespread steroid use is in Major League Baseball. Representatives say they want to make sure baseball's new drug policy isn't full of loopholes.

And tonight, boxing legend Muhammad Ali receives the Common Ground lifetime achievement award. He's being honored for his work in promoting peace and tolerance.

And, Chad, when we come back, oh, you're going to give away a DAYBREAK mug.

MYERS: And I'll ask two more questions.

COSTELLO: But as we go to break, happy St. Patrick's Day.

MYERS: Yes.

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MYERS: I love the socks.

COSTELLO: I was going to say, I kind of like that outfit. I think I'll wear it tomorrow.

MYERS: I love the socks.

COSTELLO: It's time to give away a mug.

MYERS: Carol, it's a green tea mug today in honor of St. Patrick's Day.

COSTELLO: Excellent.

MYERS: A bad try. Anyway, here are the answers to yesterday's questions. What movies are making the most money, "R" or "PG?" The answer is "PG." And a jury found the former CEO of what company guilty? And that would be WorldCom's CEO Bernie Ebbers.

We had 595 correct answers, Carol. It's getting difficult to pick the winner, but from Lloyd Harbor, New York, it is Thomas DePre. Thank you very much. Congratulations. Your mug is in the mail.

Now for some questions for today. What did the San Francisco Giants initially call the project to hire a fantasy baseball fan? And, No, 2, you have to answer them both, who will replace Michael Powell as chairman of the FCC?

CNN.com/daybreak. Your answers are there. The old questions are still there, but they will be missing and replaced in just a couple of seconds, Carol.

COSTELLO: All right, thank you, Chad.

MYERS: OK.

COSTELLO: "AMERICAN MORNING" starts right now. Happy St. Patrick's Day, everyone.

MYERS: See you.

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