Post your Article Critiques and Article Reviews Here!
Hi guys,
Welcome back! I create this specific blog for our "Sport Management" course, make sure your read the articles and post your comments, thoughts and critiques here.
posted by Dr. Richard Hsiao @ Wednesday, August 31, 2005
116 Comments:
I am looking forward to a wonderful, successful and easy class this semester..can't wait til tomorrow!!!
"Blood Testing in Professional Sports: Is It a Possibility to Crack Down on Drug-Use"
The only testing allotted in professional sports is urine testing in which some drugs are unable to be detected through, such as Human Growth Hormone (HGH) as reported on page 25 in the Street and Smith’s Sports Business Journal. HGH is able to be picked up through blood analysis; however this may be in violation of the fourth amendment. Congress is concerned for the use of illegal drugs in professional sports but may be stepping on the toes of our Bill of Rights. Yet, if a private sector, such as the individual sports clubs, set their own rules about drug use and making it mandatory for blood testing on their employees, then there could be a stricter policy of drug use in professional sports and then illegal drugs that are not found in urine analysis can be found.
The article has a point that if we reach America’s youth with information on drug education we may be able to prevent the use of drugs in sport. However, these children and adolescents are very impressionable and may listen to this education or may choose not to. So it turns back to whether or not blood analysis should be enforced. Though it may be in violation of the fourth amendment, maybe this is needed for drugs to be exonerated from sports and make playing a sport based on talents and not what drugs are pumping through that athlete’s system.
"Wie, William Morris Near Deal"
When a fifteen year old is deciding on agents, tours and whether or not to turn professional, you realize that you are not dealing with your average fifteen year old. So is the case for Michelle Wie. She is the new prodogy child in the world of golf and is dealing with all of these "perdicaments" as we speek. William Morris, which is a Hollywood talent firm saw the same potential in Wie that the rest of America did. But they did not want to just watch her effortlessly play golf, they wanted her to become their client. William Morris came after her with one of the best in the golf scene. They hired Ross Berlin who has headed the PGA Tour's sponsor relations to help manage Wie's rapidly growing career and popularity.
To us "regular" people, this would sound like a great opportunity and a very easy decision, but that's not the case at all. Not only is William Morris after her, but two other prominent agencies, IMG and Octagon would love to have a piece of Wie as well. Now the numbers that need to be crunched on the decision making process. Such as how much marketing guarantee she will get and what type and how much sponsorship she will recieve. All of these factors have to be considered and analyzed before she can make any definite decisions.
Not only is Michelle in the process of making these decisions, but she also has not made the biggest decision of all. Whether or not she's going to turn pro. She is only 15 and the minimum membership for the LPGA is 18 and as of now, she has not challenged that rule. So, I guess when people thought the life of a teenager was effortless and easy, they definitley were not taking into consideration the possiblity of being Michelle Wie.
“Yankees’ food up for bid”
The New York Yankees, one of baseballs premier teams is about to build and open a new baseball facility in 2009. One of the major concerns for the team is the proper funding that would be necessary to help the completion of this project. One way to properly fund the project is the bidding of concessions throughout the entire stadium. For the first time in forty years the Yankees are taking bids from major companies who want to sell food and merchandise from inside Yankee Stadium. The one major factor is price; the price of admission into the new $800 million Yankee home is $50 million upfront from the winning bidder! This would be for a ten year contract starting in 2009, carrying through the 2018 season. This is a very unusually high number to ask for, but than again, we are talking about the New York Yankees who generated $62.7 million in just food and retail revenue with a $17.27 per cap last season. The next team who compares to the Yankee’s food and retail income generated a mere $20 million less with a $14.77 per cap.
The Yankees can demand such high amounts from bidders because of “who they are and the prices they can charge.” They get the best players known to baseball; have winning seasons each and every year and sellout the stadium more times than any other team. This is not to mention the television attention they receive from owning their own broadcast station as well as ESPN rights. They are “America’s Team” in the baseball aspect; therefore, they can demand pretty much anything they want and will receive it!
"Octagon Basketball bulks up with agent Lewis, 3 of his players"
I found this article to be very interesting. It is related to labor relations and the issues that involve management and their employees. As in many industries competition is fierce. So when a great employee is gained or lost there are significant consequences.
For instance, in this article Octagon Basketball, a sports agency, was able to acquire and recruit Jerome Lewis, a sports agent, to their organization. Jerome Lewis was orginally with Aaron Goodwin of Goodwin Sports. Aaron Goodwin is well known for representing Labron James before Labron got rid of him and hired is long time friend Maverick Carter.
Losing Jerome Lewis to Octagon was a big hit for Goodwin Sports. Jerome Lewis is currently representing 3 top NBA rookies who have potential to make a ton of money in the future. Octagon will benefit from the transaction and benefit from Jerome's clients, not to mention the opportunities that Jerome might create for Octagon by acquiring more top prospects. The article is very informative, but it does not touch on why exactly the move took place. Was Jerome unhappy at Goodwin Sports? Did Jerome and Aaron not get along?
These are questions that would be interesting to find out. Regardless of the causes, we can learn that as a manager it is important to take care of your employees and develop good relationships. Otherwise, good employees will eventually leave and as in this case they might end up with one of your major competitors.
"AFL collectible helmets to soon hit the market"
This article is about the Arena Football League and one of the new marketing plans for the near future. The AFL will now have collectible helmets as part of a four-year agreement with Schutt Sports. Not only will Schutt be providing the AFL with equipment, they will also have helmet collectibles available for fans to purchase.
I think this is a great marketing plan to try to increase sales and also the possibility of obtaining and retaining more fans. The goal of the AFL is to open up more opportunities by catering more toward the younger football market while also increasing the league’s retail business. I believe targeting the younger football market is a very strategic move on the league’s part. From elementary and high school kids to college students, football is a very popular sporting event. Fans not only love to watch games, but also enjoy sporting any gear that supports their team and shows off their team spirit. By offering merchandise to fans, I believe this will bring more success to the league’s retail business and also increase the awareness and popularity of the AFL.
“Katrina leaves teams without homes for now”
By Heather Hileman
From the devastation hurricane Katrina left behind, many people are left without places to live, work, or function. The SMG’s Superdome is one of the many places that sheltered refugees from the storm. However, the superdome was actually damaged as well. From the aftermath, the sports facilities, administrators and managers are trying to find other arenas and stadiums to house 25,000 evacuees and find places for sports games to begin their regular season.
Seeing and hearing about all of the destruction that occurred in the south, it is a wonder why we are worried about sports games continuing and having a place to play? There may be a sense of hope by getting on with our lives. However, I’ve heard that some professional players homes have been destroyed as well as their families. It upsets me to think that these administrators are more interested in continuing to market and make money from the sporting events, than helping the thousands that are homeless, hungry, and at a loss of faith. However, after watching the professional and collegiate football games on television this weekend, I have seen the ray of hope in those that live in the gulf coast. They are seriously using the sports an outlet and as some sort of “normal” life just like it was before this devastation took place.
"Kellogg expands Olympic Ties" by Sarah Galiotto
Kellogg Company has been affiliated with the U.S. Olympic Committee’s teams for the past 30 years. Since it became a sponsor again in 2000, it is now building upon its sponsorship in being the official cereals, cookies, and crackers for the next two Olympics and the Pan-American Games in 2007. With this deal, Kellogg will be featuring U.S. athletes in the activities for promotions.
When this is all well and good and giving the USOC money (there is a “minimum multiyear commitment of $10 million, mostly cash”) and showing who the U.S. athletes are to the public through advertisements, it is also taking away from other brands. It is as if Kellogg is monopolizing advertisement of cereals, cookies, and crackers in the Olympic Promotions.
Many people watch the Olympics when it rolls around every two years. This new deal is going to be focused just on cereals, cookies, and crackers made by Kellogg, along with the other sponsors including Hilton Hotels, Jet Set Sports, 24 Hour Fitness, and Nike. Many people will think because these athletes eat this type of cereal that it is the best cereal. Athletes have an impact on what the audiences choose to eat, wear, stay, etc. Also, because being in sports and it being related to being healthy and fit, the audience may infer that because these certain types of advertisements are shown that they are the “right” products to buy when there may be a better product out there.
I do feel that the exposure of the athletes being used in the promotions is good because a child or an adult may see them promoting a product that they eat and then may get them to watch that sport. They’d wonder who this athlete is and may get interested in the sport that they participate in.
The bottom line for me I guess is that a certain company should not just be the only brand able to advertise cookies, cereals, and crackers or other products for that matter. I don’t go out buying Nike because U.S. athletes wear it. I actually don’t even like the brand and prefer other brands. The company may have more money than many other companies but there may be just as good if not better products or places out there that just don’t have the money to be able to promote during these times. It is a money grubbing world out there and it is showing that if you have the money you can knock the rest of your competition out of the ring and out of the sight of the viewers to be the “best” company.
"College Football: Innocence Lost"
Darrin Schwarz
For years I have held the opinion that college football, more specifically the NCAA, has attempted to separate itself from the NFL. This is no more apparent than with the bowl system in place rather than a playoff structure. In the past, the NCAA has used the bowl system as evidence for differentiation, but with the implementation of the BCS, conference realignment, and rule changes, some say college football does seem to be gravitating toward an NFL identity. Contrary to the writer, I think the NCAA would still claim they are trying to gain a separate identity and these changes are steps toward achieving this goal. Also, college football is using instant replay for a reason, but it’s not to be like the NFL. It’s because the collegiate officials have consistently made incorrect calls in ‘big’ games causing the outcomes to be questioned. In fact, this past weekend is a prime example of why they need instant replay. Two key plays had to be reviewed and ultimately reversed, and both happened directly in front of the officials. Are they becoming more passive and more indecisive due to the presence of instant replay? Is the BCS an attempt to be more like the NFL? Whatever the NCAA does to try and improve college football may reflect in similarity with the NFL. But with the popularity and entertainment value of the NFL game and players using college as a 2-year springboard into the league, do you blame them?
"Living Responsibly is a way of Life at Miller" (vol.8, isssue18)
When people think Miller, or any other alcohol product, they have a tendency to also think about drunk drivers, underage drinking and possibly alcohol poisining. But when people think of all the money that goes into to promoting their product, I don't think people think of all of the money that goes into almost antipromoting their product. In this case, Miller seems to be doing just that.
Miller has been the first brewing company to launch and carry out many of these "anti" campaigns over the past twenty years or so. These campaings include "Friends Don't Let Friends Drive Drunk", "Let's Talk", "Let's Keep Talking", "Here's Looking at Yours, Kid" and "We ID". All of which stress the importance of making sure that people are not drinking and driving, not using fake ID's, talking to their kids about drinking and limiting underage drinking. They have also been known to provide free public transportation on holidays such as New Year's Eve and St. Patrick's Day, which are traditionally heavy drinking days.
When it comes down to it, I think Miller should be applauded for their progress and determination to limit the many dangerous accidents that can occur when under the influence(of their product), but will their their awareness campaigns ever come close to what lengths they go to and what they spend on their promotions campaigns?
My overall reaction to this article depends on the aspect of the article. First, I'm all for school districts securing sponsorships to help defray the costs of sports since the implementation of the numerous sports programs that schools offer are very expensive and typically the only (potential)money-making sports for the schools are basketball and football.
I'm a little skeptical of the reality show that ESPN is working on at Montour High (near Pittsburgh). My skepticism stems from not knowing how ESPN is going to produce the series. Looking at the show through the school district perspective, I believe that the show is a good idea if the Montour players benefit (a few examples including learning how to play football better as a result of the tutlage of the former NFL players on set; becoming a better/successful person through the motivational tactics of Dick Butkus; or benefiting from the TV exposure whether athletically, say an athletic scholorship, or life in general. However, if the show is going to exploit the kids in any way then the show is a bad idea no matter the potential benefits. Looking at it from the television point of view, I don't think this show is a good idea because sports in general are a regional product. So, unless there is a storyline that develops besides football (like in the following movies: Miracle and Coach Carter), I can't foresee why anyone outside the Pittsburgh market (probably some in the market too) would really care about Montour football.
My feelings are basically the same about networks televising high school sports as the only possible benefit for the school is exposure for them and their athletes. Although I'm generally against televising high school athletics, if an athlete has an opportunity to earn an athletic scholarship as the result of the TV exposure then I believe televising high school games are worthwhile. From the networks standpoint, I don't see the point as it has been demonstrated by the low ratings (according to the article a high school TV game hasn't recieved a Nielsen rating higher than 0.7 since Lebron James' debut in 2002) people don't seem to be interested.
"Friday Night Lights"
My overall reaction to this article depends on the aspect of the article. First, I'm all for school districts securing sponsorships to help defray the cost of implementing the numerous sports programs that schools offer since they are very costly to the schools and typically the only (potential) money-making sports are football and basketball.
I'm a little skeptical of the reality show that ESPN is working on at Mountour High (near Pittsburgh). My skepticism stems from not knowing how ESPN is going to produce the series and how the football players will benefit from the experience. Looking at the from the school district perspective i believe the show is a good idea if the Montour players benefit (a few examples including learning how to play better football as a result of the tutelage of the former NFL players on set; or becoming a better/successful person because of the motivational tactics of Dick Butkus; or benefiting from the TV exposure in general or athletically). However, if the show is going to exploit the kids in any way then the show is a bad idea no matter the potential benefits. Looking at it from the television point of view, I don't think the show is a good idea because sports in general are a regional product. So, unless there is a storyline that develops besides football (like in the following movies: Miracle and Coach Carter), I can't foresee why anyone outside the Pittsburgh market (some in the market too) would really care about Montour football.
My feelings are basically the same about networks televising high school sports as the only possible benefit for the school is exposure for them and their athletes. Although I'm against televising high school athletics in general, if an athlete has an opportunity to earn an athletic scholarship as result of the TV exposure then I believe televising high school sports is worthwhile. From the network standpoint I don't see the point of televising high school games as no game (according to the article) has received higher than a 0.7 Nielsen rating since Lebron James debut in 2002.
“Vikings turn their sales pitch into a stand-alone web site”
By Kelly Brinker-Schaeffer
The Minnesota Vikings have become the first sports organization to create a dedicated secondary web site for the sole purpose of promoting sales and marketing opportunities. The Vikings marketing department wanted the club’s sales executives to be able to showcase their stuff in a “clutter free” environment. The site is only accessible by an invitation from a team sales executive and is personalized to that specific team representative. The goal of the personalized pages was to create a one on one interaction and give the team’s staff an opportunity to customize their own sales kits. LaCroix, vice-president of sales and marketing for the Viking’s said “these sales web sites could one day phase out traditional sales materials. But the true test will be measured in the yearly sales revenue.”
“Visa expands NFL playbook with new marketing efforts”
Entering in its 11th year as the NFL’s corporate sponsor, Visa is planning one of its more ambitious marketing programs ever. Included in these efforts are a mobile marketing unit which tours the country asking fans to emulate their favor NFL heroes by creating their own choreographed end-zone dance, a youth-targeted financial literacy program, the usual push rewarding card with NFL prizes and a creative television ad.
Visa recently renewed their contract in the early 2004 season with a six year extension worth a total contractual commitment of $300 million. Unlike previous years which Visa used their sponsorship for branding purposes, this year they want to focus more on benefits and specific products they have to offer. For example, the Tom Brady commercial seen on last weeks opening Thursday night’s Oakland Raiders-New England Patriots game emphasized the security that Visa has to offer. This was portrayed by having Tom Brady out to dinner with his five offensive linemen (the players who have the duties of protecting their quarterback).
Other promotional efforts include more than 1,000 prizes that will be given away throughout the entire season which range from Super Bowl trips, plasma TVs and other NFL merchandise. Gift cards will be yet another big push this year; they will include all 32 individual team logos (rights permitting) that will be sold by Visa banks. Last by not least, a financial literacy program that will use an NFL “financial football” version of Visa’s “Practical Money Skills for Life,” in which players will also endorse.
According to Visa, they are “…seeing our biggest activation numbers ever…” said Michael Lynch, senior vice president of event and sponsorship marketing. They also commented on how the NFL is approaching the value of the Olympics to US domestically. Comparing the NFL’s sponsorship to the Olympics is a huge comparison, given that MasterCard (Visa’s top competitor) already has twenty NFL teams locked with exclusive sponsorship. This forces Visa to bring down their marketing efforts to a local reach. That is why they will travel across the nation with this new end zone dance competition.
The Kellogg Company has been associated with the Olympics for over 30 years. Now they plan on expanding their sponsorship to go through the 2008 Olympics; they will now be the official cereal, cracker and cookies of the Olympic teams. They will be a sponsor to the Pan American games in 2007.
This is a great opportunity for Kellogg Company, although it will cost them a multiyear commitment of $10 million dollars. Not only will they get to put their logo different places, they may use the Olympic rings, and pictures of athletes on their cereal boxes. Athletes will also be able to be seen in commercials.
I think it was a good move for Kellogg. Being able to use athletes in their commercials and on the boxes is a great way to get little kids interested in the food and want to buy it.
In Katrina's wake, sports must rise to challenge by Alicia Detweiler
Sports provides our country not only with economic support, but also social support. In times of national crisis, sport has always been there to provide the American public with a sense of normalcy. After 9/11, there was a high emphasis placed on getting both professional and collegiate athletics back on schedule.
As with September 11th, the country is once again turning to sports in order to rebuild from Hurricane Katrina. This time the focus is more on the economic impact of sports, not only to support our national economy, but also to raise money to aid victims of the storm.
I agree with the article - sports has gotten a very negative reputation of greed and putting the financial gains of both individuals and organizations above the needs of the communities in which the teams are located. Hurricane Katrina presents the opportunity to change some of those negative associations. The NBA and NFL can help my lending their support to their New Orleans franchises who have lost their home venue indefinitely. Other teams can help by donating money to victims of the storm. Players can also donate a portion of their salaries and lend their likeness to various fundraising efforts.
"NCAA gets a $56.5 million bargain"
The NCAA pays out $16 million to the Metropolitan Intercollegiate Basketball Association (consisting of Fordham, Manhattan, St. Johns, Wagner and New York University) to settle an antitrust lawsuit. There's headline news!! It seems like every other day the NCAA is faced with litigation, as a result of bad managerial decisions, whether it is for trying to bully member schools;in regards to dumb eligibility rules;or restricting the earnings of Division I assistant basketball coaches. By settling the lawsuit it appears that the NCAA dodged a bullet beause according to the article, damage awards in antitrust cases are tripled and now the NCAA doesn't have to face questions regarding the legal reasoning behind losing a court case. With that being the case it is unfortunate that the MIBA settled because I would've liked to have seen the NCAA take a huge financial and legal hit. Maybe then the NCAA would realize their organization is fundamentally flawed and needs to be completely overhauled (since the NCAA is a "me" organization caring only about the bottom line, I doubt this realization will ever happen).
The need for the overhauling of the orgainization is verified in the article by stating that the NCAA changes its position of the type of organization it is depending on the lawsuit brought against them.
The first step in restructuring the NCAA would be to replace Myles Brand as president (along with other former/current university presidents' in the organization) with "sports people".
In addition to settling the lawsuit the NCAA purchased the National Invitional Tournament (NIT) from the MIBA for $40.5 million and now owns a monopoly on college basketball tournaments. Personnally, I don't care that the NCAA owns the NIT except for the fact that they might eliminate both the pre-season and post-season tournaments. Eliminating the pre-season NIT would be a major mistake because it is the staple of the pre-season basketball tournaments as it generally "tips-off" the basketball season. In addition the pre-season NIT generally showcases the best non-conference match-ups although the competition has weakened recently (in the tournament) due to regulations of team participation in pre-season tournaments. Although I don't want to see the post-season tournament eliminated either, I don't believe many people would notice (the post-season NIT is comparable to the football bowl games except for the so-called football national championship game). The post-season NIT does have its benefits for teams (as does the bowl season), for example, letting deserving teams that are left out of "March Madness" a chance to continue their season. If the post-season NIT does continue it needs to revamp the selection process of its teams by eliminating ESPN's input from the equation.
"SI's 'Monday Morning Quarterback' Grows into an Unlikely Must-Read"
Vol.8 Iss.19
It's the All-American dream, it's the All- American story. The story goes like this. On a whim, a middle-aged man named Peter King would start getting into a fairly new project that we now know as the Internet and begin a relatively small new article that ran on Monday mornings. The Monday morning article which he called, not surprisingly, 'Monday Morning Quarterback' was a guick hit. The article basically gives a run down of one of America's favorite past times...FOOTBALL!
I guess it's everyone's dream to do something that they absolutely love for their profession, but on the level that King does is astonishing. He has has professional athletes and coaches reading his article and then emailig and calling him to let him know what exactly they thought about what he wrote. Of course it's not always going to be positive, but that seems to be beside the fact. Now with the supposed new six figure sponsorship from General Motors, King seems to really be living the life of just that...a King.
So when it comes down to it, King has found the ultimate job where he basically works one day (Sunday night), relys on other peoples analysis, has high profile friends to contact and in the end just takes guesses of what he perdicts will happen the following weekend. King has become the envy of many if not all professionals.
MLB wants D.C. to lift club values
Major League Baseball is looking to the pending sale of the D.C. club, the Washington Nationals, to give a boost to a sagging team market. There are currently two teams on the market and MLB believes the Nationals will be the sale that will boost team values and the price to own a team.
There are eight groups that are bidding on the team. At least one of which has attempted to purchase baseball clubs in the past. To get the value of the sale up MLB has to hope that the team for sale shows a lot of opportunity to the possible owners.
MLB may just be right on the money for their hopes for the sale. The D.C area is a high end city area and has been waiting for a long time to have a team in the city. The fans and investors are “Hungary” to have a team in the city. There a high tide of interest and support right now for the team due to the “newness” factor. The pervious sales, of professional teams, in the area have gone high.
There is a great opportunity to build a program in the heart of a huge multi-metropolitan region of the country. The Nationals will be with in easy traveling distance to cities like New York, Philadelphia, Baltimore, Chicago and Boston. Each of the cites have high baseball interest and natural rivalries will keep attendance up, and sponsors knocking at the owners door.
The Nationals will soon have a new stadium in which to play and that only increases the value for the proposed new owners.
For MLB to make get the price to go up they needed to have the right team in the right place with the right bidders and it seems as if the Nationals have provided it. The sale should go high, sparking additional interest across the country in other teams. This will be the “get in on the action effect” and that will help the selling price around the country. Which will lead to more additional dollars being sent to the other organizations and keep the interest in baseball bouncing back.
“Bon Jovi puts his Soul into career as sports owner” Vol (8)20 pg 38
By Heather Hileman
Bon Jovi has been co-owner of AFL (Arena Football League) team Philadelphia Soul for the last 3 years. This article discusses how he does this kind of work compared to his movie and music making business. Bon Jovi says that he knew how to make this league work, for he could recall moments he had spent with his father and grandfather, while watching baseball and football. He knew that making this business was going to be work, but he had items on his list that were of top priority. Those items included: fan-friendliness, prices of tickets, and community relations. He says he gets involved in all aspects of the business. For example, he states he was on the phone for an hour and a half discussing AFL business and he enjoys what he does, “immensely.”
Bon Jovi says that both AFL and his movie/music career are one in the same. He says they both entail marketing, have an entertainment factor and the big one is that he’s running a multi-million dollar business.
“Nascar team sponsors again slow to put promotional muscle into Chase.”
Vol. 8 Issue 20
Kelly Brinker-Schaeffer
This article talks about the last 10 races termed the “post season” Chase. The article mentions how the chase was created to increase awareness for the Nascar sport at a time period where football usually dominates. It was also designed to create higher tv ratings and provide more revenue for sponsors. The tv ratings have improved greatly with a 12% increase in ratings from 2003 to 2004. However, the sponsors have been sidelined because of a lack of lead time. The sponsors claim that they are afraid to market a particular driver ahead of time for fear that the driver does not make the top ten.
Eric Pinkham, director of Motorsports for Newell Rubbermaid said, “Powerful activation and promotional programming often requires significant lead time and pre planning. The difficulty in executing Chase specific activation is that for most teams, marketing the Chase could be very last minute.” VanDerSnick, vice-president of marketing for Nascar, suggested that some sponsors may have to take a risk in allocating funds early on in hope that they will qualify for the Chase. But, Doye, president of motorsports marketing, thinks that over time the chase for the Cup will become one of the core marketing plans for Nascar sponsors.
Saskin’s salary figures disputed
[Vol. 8 Issue 20, page 1 and 33]
During the contract negotiations of the new chief executive for the NHL Players Association, Ted Saskin, some major concerns have come to light that player representatives want addressed.
During these negotiations Ted Saskin provided information on comparable salaries of his counter parts in other sports player associations. However these salary figures were inflated, it is believed to help his bargaining position and increase his salary. After the word got out that the numbers were inflated some additional questions were asked about the voting process, and the missed steps according to the player’s association constitution. Saskin had inflated each of the salaries by hundreds of thousands of dollars in an email that was sent to the player’s representatives during the negotiations.
There was also major concern why Saskin was announced as the new chief executive with out a vote of the player’s representative. This concern prompted players to gain the assistance from Robert Lanza a lawyer from New York to assist them in voicing their concerns. This prompted the NHLPA to hold a conference call and a vote on the appointment of Saskin. Then the vote was call into question because it was not done in secret ballot form (which is called for in the organizations constitution). Now some of the representatives are still asking why the appointment and the contract were not voted on separately.
It seems to me that these negotiations should have gone much easier and cleaner if the constitution rules would have been followed and if the process had not been pushed through. A big question is why did the player’s representatives not have any counsel in on the meetings? Separate counsel could have provided the needed information accurately and with out suspicion. Now that this problem has occurred will the players trust that Mr. Saskin is truly looking out for their best interest, or is it a problem just because they were on the other side of a negotiation in which certain questionable tactics were employed. Only the player representatives and Saskin can answer that question.
Saskin’s salary figures disputed
[Vol. 8 Issue 20, page 1 and 33]
Brent Baird
During the contract negotiations of the new chief executive for the NHL Players Association, Ted Saskin, some major concerns have come to light that player representatives want addressed.
During these negotiations Ted Saskin provided information on comparable salaries of his counter parts in other sports player associations. However these salary figures were inflated, it is believed to help his bargaining position and increase his salary. After the word got out that the numbers were inflated some additional questions were asked about the voting process, and the missed steps according to the player’s association constitution. Saskin had inflated each of the salaries by hundreds of thousands of dollars in an email that was sent to the player’s representatives during the negotiations.
There was also major concern why Saskin was announced as the new chief executive with out a vote of the player’s representative. This concern prompted players to gain the assistance from Robert Lanza a lawyer from New York to assist them in voicing their concerns. This prompted the NHLPA to hold a conference call and a vote on the appointment of Saskin. Then the vote was call into question because it was not done in secret ballot form (which is called for in the organizations constitution). Now some of the representatives are still asking why the appointment and the contract were not voted on separately.
It seems to me that these negotiations should have gone much easier and cleaner if the constitution rules would have been followed and if the process had not been pushed through. A big question is why did the player’s representatives not have any counsel in on the meetings? Separate counsel could have provided the needed information accurately and with out suspicion. Now that this problem has occurred will the players trust that Mr. Saskin is truly looking out for their best interest, or is it a problem just because they were on the other side of a negotiation in which certain questionable tactics were employed. Only the player representatives and Saskin can answer that question.
“Bon Jovi puts his Soul into career as sports owner”
In this article, Jon Bon Jovi talks about not only his success as a rock star, but also his success as a businessman. As much as Bon Jovi loves music, he shares the same passion for football, especially the team he co-owns, Philadelphia Soul.
Bon Jovi discusses the similarities of his two jobs. He talks about how with both there is marketing involved, the entertainment factor, and also running a multimillion-dollar business.
What I enjoyed most during Bon Jovi’s interview was his concern for the community. He wants to prove to everyone that he truly cares. He could care less whether you are a Bon Jovi fan or just a football fan. His goal is to make fans happy and allow them to enjoy football to the fullest when they come to cheer on Philadelphia Soul.
“Bon Jovi puts his Soul into career as sports owner”
[Vol. 8 Issue 20, Page 38
In this article, Jon Bon Jovi talks about not only his success as a rock star, but also his success as a businessman. As much as Bon Jovi loves music, he shares the same passion for football, especially the team he co-owns, Philadelphia Soul.
Bon Jovi discusses the similarities of his two jobs. He talks about how with both there is marketing involved, the entertainment factor, and also running a multimillion-dollar business.
What I enjoyed most during Bon Jovi’s interview was his concern for the community. He wants to prove to everyone that he truly cares. He could care less whether you are a Bon Jovi fan or just a football fan. His goal is to make fans happy and allow them to enjoy football to the fullest when they come to cheer on Philadelphia Soul.
Club was set to buy insurance (Vol. 8, Issue 20, pg 5) by Sarah Galiotto
The New Orleans Hornets were to purchase business-interruption insurance. Before they could do so Hurricane Katrina came to Louisiana and tore up the Gulf Coast. This insurance was to be bought just days later, but the team was too late. This type of insurance would have covered what the team would have earned had this disruption not occurred. It would have also covered the costs of temporary location. Days shy of buying this insurance the New Orleans Hornets will deal without it, no expenses being covered and payment for relocation will not be aided.
So what does this tell teams to do, especially in an occurrence of a hurricane, tornado, or some other form of natural disaster or bizarre occurrence? The teams should have purchased this insurance in the first place. It is said that only “about half of pro teams have some type of business-interruption insurance.” It is the Hornets’ loss that they did not purchase this previously because their business would not have to pay for relocation and other expenses themselves. C.Y.A. is what I say.
"Gentlemen, Start your Holiday Greetings"
Vol.8 Iss.20 Pg.9
After reading most of this issue to try to find an interesting article, I found this small one that jumped out at me. It is for custom designed holiday cards featuring the late Dale Earnhardt and his sonn, NASCAR star Dale Earnhardt Jr. I thought this was a great representation of the sport management technigues that we have been talking about. The Dale Earnhardt Inc., company not only grosses sales on a daily basis from a variety of T-shirts, hats and bumper stickers, but now they are gaining from the legendary NASCAR driver, who has passed away, during the Christmas holiday season as well. The terms of this two year bussiness deal were not discolosed, but I can only imagine the intense following of Earnhardt fans that will sweep these cards up since they will most likely only be around for a short period of time. These cards will be sold in boxes of 12 for $15 each. It now comes down to the marketing and advertising skills of the people behing this business to really make these keep saked fly off of the shelves.
‘Back on the Ice’
Darrin Schwarz
Following the cancellation of the 2004-2005 NHL seasons, the Boston Bruins are launching a new marketing strategy to win back its fans and promote the NHL’s first U.S. franchise. Charlie Jacobs, the team’s executive V.P., claims they are just “illustrating what was already there”. Management teams and several alums feel that the lunch-pail ethic and the basic values of heart, hustle, desire, and dedication relate to the Boston hockey fans. It seems fitting that the new slogan, “It’s called Bruins”, may change the perception of some that the team, while being successful during the regular season, will not succeed in the playoffs.
Many executive decisions are still on the way, including $8 million in asset media on the New England Sports Network and regional print and radio will carry the campaign over the next two years. Even the inevitable reality show in which a fan will join the team’s front-office staff will be introduced. Still, the Bruins have a tough battle given the success of the Patriots and Red Sox but it remains a hockey town, and the current marketing strategy based on the team’s legacy is attempting to wake-up the fans that have been hibernating from hockey.
"Partnership,formed in 8 days,dissolved in sea of squabbles" by Daniel Benjamin
vol. 8 iss. 20
The article was about five businessmen (Steve Belkin, Bruce Levenson, Ed Peskowitz, Michael Gearon Jr, and Rutherford Seydol) who formed a partnership, known as the Atlanta Spirit LLC, to purchase the NBA's Atlanta Hawks and the NHL's Atlanta Thrashers. Now, less then two years after the business relationship was forged the group is without its major stockholder (Belkin) after numerous squabbles between the different fractions in the ownership group. However, the managerial style of the partnership was designed to be consensus in nature (rather than the traditional structure of a single leader at the top) where Belkin had a single vote,while Levenson and Peskowitz shared a vote as did Gearon and Seydel. Some of the friction between the groups was because Belkin (who invested twice as much as any of the other partners)felt his voice in the decision-making process should be proportionate to the amount of his investment as compared to the other partners. The relationship came to a head when Belkin citing fiscal responsibility (he was the Hawks Govenor at the time) blocked a trade with the Phoenix Suns that the other owners' wanted to make. Belkin's decision to go against the consensus resulted in the other four partners to remove Belkin as their team representative (the team representative must give his approval for NBA bussiness dealings to become official)which Belkin tried to prevent by suing. After losing the lawsuit, Belkin sold his interest in the Spirit to the other partners.
In my opinion, a partnership is an extremely difficult way of managing an orgnaization if no partner has a controlling interest (owning more than 50% of the shares). However, if there is a majority stakeholder, I believe that a partnership group is a more formable way to manage a sportsorganization than having a single owner. My reasoning is that a partnership will give a franchise more flexibility because of the fact that having more investors should invariably mean that there is more cash to spend on players and other franchise related issues. Additionally, with a partnership there is more than one voice in the decision-making process (like a checks and balance system)which I think is vital to the success of an organization. Conversely, this checks and balance system could end in chaos like the Atlanta Spirit situation especially if the partners aren't united. The key to a successful partnership is being unified no matter of personal philoshophy).
I find it particurly interesting that Belkin insisted that a "buyout" option of his shares be put into the partnership agreement. I believe financially speaking the buyout option was smart on Belkin's part however it was a dumb idea on his part in the business sense because it became a trust issue amongst the other owners because they didn't know if Belkin was going to be in it for the long haul. I do agree with Belkin's decision to block the proposed sign and trade deal with the Phoenix Suns that would've brought Joe Johnson to the Hawks inexchange for two first round draft picks and Boris Diaw. There are a couple of reason's I don't like the trade (the deal was finalized after Belkin left the organization) first although I like Johnson's game (he's an excellent complimentary player with his calling card being a hard-nosed defender and three point shooting specialist with the capability of averaging 15 to 17 points a game) I don't believe his value is anywhere near the contract that he got which was #70 million for five years. The second reason is that the Hawks are loaded with young players that play the same position as Johnson and who are extremely similar to his ability and style (The Hawks are planning to play Johnson at the point which I believe is a major mistake). I believe it was the correct decision for Belkin to negotiate a buyout because if he didn't there could've been major ramifications for the Hawks and Thrashers concerning their ability to sign free agents. The reason being is that players are hesitnat to go to a team where ownership is in disarray.
“Rosenhaus targeted by lawsuit”
Drew Rosenhaus has been accused of stealing Arizona Cardinals wide receiver Anquan Boldin from Star Sports Inc. A grievance has been filed against Rosenhaus in the NFL Players Association arbitration system because under the NFLPA, agents may not sue other agents over client-stealing. Drew Rosenhaus’ Miami-based Rosenhaus Sports are being accused of soliciting Boldin and his family members to terminate a marketing contract with Star Sports. Star Sports says that Rosenhaus interfered with a business relationship and asks for unspecified damages. They claim that credible evidence from current and past Rosenhaus Sports players will suppose the allegations.
Boldin is one of more than thirty NFL players last year who signed with Rosenhaus and his company. Many other players have previously fired their agent and signed with Rosenhaus Sport making him and his company the most reputable and powerful agent in the NFL. Even though Rosenhaus is extremely powerful and media friendly, agents found to have violated the regulations face punishment ranging from letters of reprimand to decertification. On his side is the fact that the NFLPA said that union has had difficulty proving client stealing in the past because a player who switches agents is reluctant to give testimony against his new agent.
Bon Jovi Puts his Soul into career as sports owner Vol 8 issue 20 pg 38 By Abbie Hoover
Bon Jovi, a world famous musician is a man of many trades. On top of his music career he is a co-owner of an Arena Football League franchise, the Philadelphia Soul. Not only is he the co-owner of the franchise, he and his partner made it the Number 1 revenue-maker in every revenue stream in the league.
In this interview Bon Jovi tells how his own personal life and music career helped him make his franchise number 1. He believes marketing was the key to becoming number 1. His main concerns were fan-friendliness. He wanted the fans to have access to players and to games, therefore ticket prices were a priority for him. He made sure players were available for photo-ops and signing. He wanted his players not just to be good athletes, but role models for kids. He believes that by trying to be a part of the community, the community would want to be apart of the team.
Having the support of fans is a big part of making a franchise successful. Bon Jovi believed this to be true and focused on it in his marketing; now his franchise is number 1 in the league. I think this proves that marketing plays a huge role in the success of a franchise.
Dish Network beaming in more sports (Vol8, issue 20, page 4).
Dish Network recently acquired distribution rights with NFL Network and CSTV (College Sports Television). NFL Network will be broadcast on Dish's mid-tier "America's Top 120" package and CSTV (along with NFL Network) will be broadcast on Dish's top-tier "America's Top 180".
While Dish Network does have NHL, MLB, and NBA deals, they have historically been behind in signing sport-related networks such as the YES Network.
It's good to see Dish finally going after sports channels. I've been a subscriber for 6 months now and was hoping that Dish would be able to make this deal happen. I agree with the article, sports are a very lucrative asset to service providers. It's important to make sure you have a broad variety of sport networks to satisfy a larger sector of your subscriber base, otherwise they may decide to drop your service in favor of a competing provider.
"Rosenhaus targeted by lawsuit" competitor claims that powerful NFL agent stole star receiver. Vol 8 issue 20 sep 19-25 pg 6. Sports Agent Drew Rosenhaus has a a lawsuit against him by another agent for supposedly stealing NFL receiver Anquan Boldin. Under NFL players Association regulations, agents may not sue other agents over client stealing disputes concerning players contracts, but must bring grievences to an NFLPA-appointed arbitrator.However, rules state that an agent is not allowed to solicit other agent's clients. The fact remains that it is often difficult to prove client stealing, at least in the past. The bottom line is that Rosenhaus is the top agent in the game right now, and when your on top others are going to try to bring you down. Particularly fellow competitors. Rosenhaus doess have a reputation as a slick maybe unethical business practice. That being said many of the agents that are complaining implament similar tactics. What we have in this case is frustration and anger of the plantiff because Drew is doing the job better than he is. If this agent was doing his job and keeping his client happy, he wouldnt have to worry about Rosenhaus.
“Some like look of NBA dress code” Vol 8(22) pg 6
By Heather Hileman
NBA’s president, Antonio Davis, favors the idea of a dress code and non-compliant athletes will end up paying the price for not following the proposed rules. It is an aggressive effort to improve player image. The proposed code would require players to wear “a sport coat, slacks, and dress shoes when arriving at a game and for team travel.” For off-court appearances or sitting on the bench, players would have to wear “collared shirt or a turtleneck with slacks or khakis.” The players will not be able to wear jeans, sneakers, hats, or shorts. The NFL and MLB, as of now, do not enforce a dress code. NHL requires players to wear sports coats when traveling.
The talk of this dress code comes as the union prepares to make details of the “agreed-to-CBA public”. Image-related elements include things like mandatory attendance at team relations seminar with a fine of $20,000 for a no-show. Another element is that players may be asked to wear wireless microphones during games and practices and players will be responsible for up to twelve off court appearances each season. The appearances include two for season-ticket-holder events and five group appearances. If the go in violation they can have a fine up to $20,000.
I feel it is appropriate for all professional athletes to dress professionally on and off the court. I don’t mean every single day of their lives, but I do feel when they are in the eyes of the public (traveling, sitting on the bench, marketing and business affiliations) they should be dressed according to the guidelines stated above. It only shows that they are “professional” athletes and that they want to represent the league and themselves in the best way possible.
“Some like look of NBA dress code”
Vol 8 Issue 22 pg.6
By Kelly Brinker-Schaeffer
The NBA’s President, Antonio Davis, favors a dress code as part of the new collective bargaining agreement signed in June. Davis said, “I like the concept that we need to have some type of dress code. The way some players look now does not represent the league and themselves in the best way. The proposed dress code would require the players to wear a sport coat, slacks and dress shoes when arriving at a game and for team travel. For either off court appearances or sitting on the bench when not in uniform, players would have to wear a collard shirt or turtleneck with slacks or khakis. The dress code would prohibit tennis shoes, jeans, and hats. Neither, the NFL or the MLB has a dress policy for its players outside of competition uniforms. The NHL does require the players to wear a sport jacket when traveling. What do you think?
My opinion on this subject is that dress codes are very appropriate for sport players. When the players are traveling to a game or sitting on the bench they are still getting paid and they are still representing their team right? Many jobs in the US require a specific type of dress code for their positions, well going to games is their job! Not to mention on their salaries, I think they can afford to dress in nice clothes.
“Knicks fire up star power for TV spots in big marketing push” [vol. 8, issue 22, pg. 6]
For the upcoming season, the New York Knicks are going to double their marketing budget to $2 million due to the increased competitive market for the franchise. The senior vice president of marketing talks about the challenges they have and how they must get out there and market aggressively. The Knicks have new players and a new coach, so this is one of the reasons they are spending considerably more on advertising this year than past years. Some of the ways they plan to advertise is by using several celebrities.
The Knicks are also in competition with the return of the NHL, which has two New York teams. They also find themselves competing with the New Jersey Nets, who plan to move to Brooklyn in 2008. The Nets are working hard to draw business from Manhattan. The Knicks have noticed this and plan to market to the boroughs and in New Jersey to draw in the crowds the Nets are overlooking.
The New York Knicks, in my opinion, seem to have a good understanding of exactly what they need to do, where they need to do it, and to whom, as far as advertising goes. They realize they are faced with more challenges this year such as the return of the NHL and attaining new players and a new coach. I think between marketing in the right areas and using the right advertisements, such as celebrity endorsers, the New York Knicks will be successful in their marketing efforts for the upcoming season.
Track seeks Super Bowl atmosphere Vol 8(22) pg 8 by Sarah Galiotto
The Super Bowl… everyone knows the Super Bowl for it’s entertainment (we can’t forget the year with Janet Jackson!), commercials, and football of course. NASCAR’s Super Bowl is of course the Daytona 500, however, Curtis Grey, president of Homestead-Miami Speedway, is gearing the end of the series towards a Super Bowl-esque extravaganza. The Busch and Craftsman Truck series, Nextel Cup, and the Ford Championship Week all occur at HMS. This Super Bowl like atmosphere will be occurring around the Ford Championship Week. Activities such as charity events, a fishing tournament, street festivals, and celebrity and professional athlete appearances are what to be expected at this gala, and of course many musical performance like in the super bowl half-time show.
This is an excellent idea to gather race car fans alike for entertainment and the pure enjoyment of NASCAR racing. It should not take away the thunder of the Daytona 500, but allow another race of NASCAR gain more popularity. This can only bring more fans to the sport and bring the racing community more together. It exposes a way to have fun with racing and gain entertainment and satisfaction.
"Fox channels find way to do college on a tight budget"
vol.8 iss.22 pg.35
When it's football season and you are a football fanatic, you don't care if the game you are watching is on delay or not, all you care about is that you are watching football...period. That is why Fox College Sports will be showing tape-delayed video feeds of Big 12 college football games taken from video used by officials to review instant replays. The conference mandated that there be television production of every football game this season after it adopted video replays to check after disputed calls.
Unfortunately these games will not be exactly like watching the real thing. They will be adjusted and altered to fit a three hour time slot and audio will come from the home team's radio broadcast. Although there will be these (in my mind minor)differences, I think FCS is doing an innovative and cost reducing telecast. With this new line-up, they are really not only helping themselves, but the public as well. This allows games to be televised that normally wouldn't be to be televised at all. It also allows people the chance to see the game if they missed it or didn't see the whole thing. Personally, I know it was difficult for my family to make it to all of my games when I played in college and if they knew they could watch it whether it was on tape delay or not, they would have been more then estatic to do so. So for FCS to be televising these games, they are going to be making a profit, but little do they know they might be making family and friends happier then ever.
“MLB fills out lineup for postseason promos”
Volume 8 Issue 22
While the Major League Baseball heads directly into their postseason competition play, so does the promotions and marketing efforts. The major themes that MLB are continuing are the “8 Teams – 1 Champion” and expanding on the “I Live For This” ad campaign who now has reached out to frenetic fans who have their own spot on television now.
While off-the-field sponsorship support is very little during the postseason, it will be evident during the first four games of the World Series. XM Satellite Radio will lead things off with a pin giveaway for fans at Game 1, Bank of America will underwrite a ticket holder/lanyard for Game 2 and Taco Bell will give the same item away but with their own branding on it. Taco Bell with also do an on-site promotion during the Roberto Clemente Award presentation which will be held at the beginning of Game 3. First year MLB sponsor Chevrolet will conclude its Latino MLB Legends program with a custom-publishing piece for all fans at Game 4 and award the World Series MVP vehicle after the final game.
Other sponsors include Viagra, Pepsi and Taco Bell who will get ceremonial first pitches and Wheaties, who will create a congratulatory cereal box after the final game. Fox has sold 90% of their commercial spots to the same returning sponsors as last year, which are certain to entertain our viewing intentions. We have to again think of the Superbowl how competitive sponsors are in comparison to the World Series which will entice a similar size of crowd.
"Tellem in talks for post-SFX merger"
Vol.8 Iss.22 Pg.5
Arn Tellem is viewed in the sports industry as the most poweful sports agent in the United States, so when on September 30th he announced that he is stepping down after five years as the CEO of SFX Sports, and would now buy back his business that he originally sold to SFX Entertainment, he left the sports world stunned.
With this move, Tellam could and will be taking some of the companies agents and clients with him to the L.A. based office. To name a few of them he will be regaining Kobe Bryant, Tracy McGrady and Nomar Garciaparra as his clients. He will also be taking some prominent NBA and MLB agents with him as well. More importantly is the issue of Tellam naming his new partner. He has been in talks with many companies with prominent connections with the sports world, but none could be named. This final decision will be announced on Thanksgiving. I think all of the world will not only be eating turkey and watching football, but will be anxious to see what lucky company will become Tellam's partner and be getting a definite pay raise!
Two Issues and little progress for NFL
Volume 8 Issue 22
Brent Baird
NFL League owners meet this week, while the negations with the player’s union are on very different tracks and do not seem to moving in the right direction. The two issues that the discussions are centered on are that of the revenue sharing and the collective bargaining agreement. There is much concern that the issues need to be discussed together while the league representative have decided to temporally stop discussing the split of the revue and discuss the CBA.
There is some concern also inside the owners that some of the mid and small market teams are being left out of the talks while those teams that have larger revenue bases are leading the talks. The league put the two top revenue teams in charge of the revenue sharing discussions. (Carolina and Denver) The smaller clubs are looking for assurances that they will receive more of the revenue sharing monies to compensate for any labor cost that go up due to the CBA talks. This is why many of the clubs feel that the discussions need to be going on together.
There is a number of mixed messages coming out of the meetings including some league spokesman stating the all talks are going on simultaneously, while some owners are stating that the issue of revenue disparity has been leaped frogged by the CBA talks.
To point out how far the talks are apart the union wants 65% of all football revenue, which totals 5.5 billion dollars, while the league is offering 57%. There doesn’t seem to be a mid-point between alt least according to Harold Henderson, chief league negotiator.
While all this is going on league chief has threatened a $500,000 fine to any of the owners that talk about the progress or lack of progress with the talks. It seems s that the league and the owners need to settle their issues before they can work toward an agreement with the players.
It seems to me that while there some time yet to go, end of the 07-08 season that the various parties with in the talks are still in the “jockey for position” phase of the process. Here is hoping that they all get serious and starting finding some common ground to work from before NFL fans have to endure that the NHL and MLB fans have had to, and the same rebuilding issues each of those leagues have had and continue to go through after talks prolonged far to long and seasons were lost.
"Some like the look of NBA dress code" (vol. 8, issue 22 pg. 6) by Daniel Benjamin
In order to improve players image the NBA has proposed a dress code that would require players to wear a sport coat, slacks and dress shoes when arriving at a game or traveling. In addition, players on-the bench or at off-court functions would be required to wear a collared shirt or a turtleneck with either slacks or khakis. Besides exceptions provided by the league jeans, sneakers, hats and shorts would be prohibited. Also, under the proposal teams will be able to enforce an even tougher dress code.
The players and the NBA have already agreed to some image-related items as part of the CBA. These items and penalties include: players who fail to appear at team held media relations seminar and the business-of-basketball seminar would be subject to a $20,000 fine; Players that possess a firearm when traveling on behalf of the league will be subjected to suspension and a $50,000 fine; players are also responsible to make 12 off-court appearences each season, a violation could bring a fine up to $20,000. In addition, players maybe asked to wear wireless microphones during games or practices but must first give their approval before doing so.
The NBA probably has the worst image of the four sports so if a dress code will project a better image then I think it is a good idea. I believe that ut was a good idea to include image-related items in the recently signed CBA. This shows that both the players and the league acknowledges that they have an image problem and now they have a plan in place to improve their image. Now, it is up to the players to abide by the agreement and perhaps their image will improve.
‘NHL players want hiring reviewed’ Vol. 8 (22) p8
Darrin Schwarz
According to twenty-seven NHL players, Bob Goodenow was improperly fired and Ted Saskin was improperly hired as executive director of the NHL Players’ Association in violation of the union’s constitution. The players claim the vote was not done by secret ballot, which goes against the NHLPA constitution. This is a classic example of labor relations. With teams set to save millions from the salary cap set by a new labor agreement that will force substantial cuts in payrolls, players are obviously concerned with who will be leading them in the future. It would seem a change in leadership could benefit the union considering what happened with last season. But with rule changes, more broadcast coverage, and competitive balance, the future is positive for the game itself, and not necessarily bright for the players’ salaries. So the question of who got hired is not the point. The point, it seems from some players, is how Saskin got hired. The answer is with poor communication and organization. The union needs to be in agreement with who will take over as executive director of the NHLPA and assure that all guidelines and procedures are followed, this includes voting accuracy and voting participation. The players did not make out as well as the owners following the labor agreements and they are putting the union to practice with regards to future leadership in a sport that has a new image and direction, and not as much player power.
“Some like look of NBA dress code” Vol 8(22) pg 6 By Abbie Hoover
Professional athletes have always been and will always be idols and role models for young children worldwide. Unfortunately professional athletes don’t always live up to idol or role model status. Problems with drugs, alcohol, and abuse are just a few that can be seen in the papers. There are many different ways to deal with these problems and make professional athletes capable of being in the public eye.
NBA president Antonio Davis wants to initiate a dress-code for all NBA athletes. The dress code would require players to wear a sport coat, slacks, and dress shoes when travelling. For sitting on the bench or off-court settings players would have to wear collared shirt or a turtleneck with slacks or khakis,not jeans, sneakers, hats, or shorts. Any athlete who doesn’t adhere to the dress code would be forced to pay a fine.
They also want to have more image-related appearances and putting microphones on athletes during games much like in the NFL. Fines could be up to $20,000.
I think this is a great idea. They are professional athletes, they should look professional when doing things associated with their job.
NHL players want hiring reviewed (vol. 8, iss. 22, pg. 8)
27 NHL players are pursuing charges of unfair labor with the National Labor Relations Board in regards to the hiring of Ted Saskin as executive director of the NHLPA. The players feel that Saskin was inappropriately elected to the position by use of intimidation by Saskin and union president Trevor Linden. Saskin has refused to step down to interim director while the players and board of directors discuss the matter.
I think it's important in this situation for the players and players association to sit down and work out their problems. The NHL already has a tarnished reputation because of the strike that wiped out all of last season, it is important to resolve this issue as quickly as possibly and also as fairly as possible in order to avoid further blemishes to hockey's reputation.
"Some like look of NBA dress code" (vol 8 issue 22 pg 6).
This article talks about the image of the NBA. For the past decade or so the "new generation" of the NBA has had image problems. No one understands this better then Antonio Dsvis president of NBA. Elected recently, his main focus is to improve the image of the league. An article in a previous business journal talked about the plan he has in mind. This article talks specifically about dress codes.The dress code Davis wants would require players to wear a suit and tie when traveling with the team and khakis and collared shirts when not playing from injury on the bench.
Personally I agree with Davis. I remember growning up watching Michael Jordan and he was always dressed professionally and conducted himself that way as well. It is a fact in my opinion that you act the way you dress and vise versa. Something as simple as a dress code can help the players understand that they should act as profesionals because they are. Jordan once said "i always want to look my best because if someone sees me that might be the only time they ever do" I think what he and Davis understand is that they are role models for their teamtes, fans, and community and have a responsibility to conduct themselves in a respectable matter. This is one step Davis can take to improve the league.
“Dallas arena changes club seats to party suites” Vol 8 (23) pg 5
By Heather Hileman
The American Airlines Center has created two party suites to accommodate large groups for the Stars and Mavericks games. The spaces could generate up to $500,000 a season in incremental revenue. The boxes sell for $8,000 a game for the Stars and $9,000 or $10, 500 for the Mavericks games, depending on the opponent. The prices include tickets, a choice of Sportservice food and beverage packages that are valued at $25 to $30 a person, and 15 parking passes. The seats will also be sold without the food and beverage package. The tickets alone sell for $85 for the Stars and for $100 for the Mavericks game. However, without the food attached, patrons would probably have to buy a minimum of 50 tickets. The boxes each have 47 permanent seats and a bar ledge with 10 bar stools, also with a number of amenities.
It is hard to say what the best way is to make money in the NHL. However, the NHL has to start somewhere. From the article, it has shown that there are patrons out there that will pay for these seats and tickets. The prices are expensive for the box seats; however, the majority of people who would purchase those seats are probably big business associates and managers. I think since the NHL season is just now coming back, those who are fans are going to continue to pay whatever price to see the game.
"San Juan arena expects sellout for NBA game, has hopes of land an all-star game." 8(23) by Daniel Benjamin
The NBA expected a capacity (18,000 people) crowd for their October 14 preseason game in San Juan, Puerto Rico between the Miami Heat and the Memphis Grizzlies. Arena officials who produced the game hope this preseason game is a prelude to Puerto Rico getting a regular season game and an all-star game. However, Puerto Rico will not get an opportunity to host an all-star game until 2008 (the 2006 game was awarded to Houston and the 2007 to Las Vegas).
I have a few thoughts on this idea,first, from a business standpoint since the NBA's strategy is to expand their brand internationally I believe having a preseason game in Puerto Rico is a superb idea. The reason I like this idea is because the previous time (2003)the NBA played a preseason game in Puerto Rico, Roberto Clemente Colliseum (9,000 capacity) sold out. In addition, Puerto Rico is a basketball fanatic country. I also like the idea of having an all-star game in Puerto Rico because what better way for the NBA to showcase their product on an international scene then during a weekend where all the "star" players will (most likely) be there. Besides I'm sure the players would love to be in warm weather in the middle of February.
I don't however, like the idea of having a regular season game being played outside the U.S. The main reason is that a regular season game means something (while the preseason and the all-star game are exhibition evnets/games) and since each team only gets 41 home games losing a date at home could theoretically cost a team a playoff spot. In addition, I believe the logistics of scheduling the event and travel for the teams would be difficult since sometimes NBA teams play on back-to-back nights (generally 3 or 4 games a week). The situation with the Montreal Expos (when they played in Puerto Rico in 2003 and 2004) was different because they knew they were going to play three to eight straight games there.
An “NFL World”, and
they’re just living in it
Vol.8 Issue 23
Kelly Brinker-Schaeffer
The NFL network is hoping to get rid of commercial clutter by creating its own NFL animated world that’s a combination of pro-football and the Jetson’s. The “NFL World” is a computer generated commercial that portrays the players in everyday scenery. An example of this computer generated commercial is one featuring Jerome Bettis driving a bus. “The ads will run on the league’s asset-media rotation and on the NFL network itself. The network now in 35 million homes hopes to produce four 30 second and several 15 second “NFL World” ads before the regular season ends.” I think that this is a great idea, I feel that the cartoon commercials will probably draw a lot of attention and will be very funny to watch.
An ‘NFL World,’ and they’re just living in it - Volume 8 Issue 23, pg. 3 by Sarah Galiotto
The NFL Network is creating a new ad campaign in which they are turning NFL stars into animated commercials. It will be an imaginary world of pro football in animation. The network plans to have four 30 second and several 15 second “NFL World” ads produced before the regular season is over.
Such stars as Jerome Bettis driving a bus, Arizona Cardinals QB Kurt Warner driving a football-helmet car, and St. Luis Rams receiver Tony Holt catching a rolled up newspaper from Cincinatti Bengals QB Carson Palmer will be featured in the “NFL World.” At the end of the commercial it will have “NFL Total Access” regular Rich Eisen saying, “It’s an NFL World and we’re living in it.” They will run on the league’s asset-media rotation and on the NFL Network.
These animation commercial ads are unique and creative. It is different than using normal football footage and no other companies are providing an ad campaign like this. I feel that this will be an intriguing way of drawing in attention from fans to watch more of the ads and that network. I think that this is a clever idea that shows NFL football in a different, more light-hearted environment.
“Dallas arena changes club seats to party suites” [vol. 8 iss 23 pg. 5]
In order to accommodate to the several requests of fans wanting a 50-60 seat suite, American Airlines Center in Dallas created two new party suites recently. They spent $300,000 to convert 97 club seats on the Platinum Club suite level into two party boxes. Each suite can hold up to 60 people and is available for nightly rentals. It costs $8,000 to rent during a Stars game and $9,000 or $10,500 for the Mavs depending on their opponent that night. Included with the deal is a choice of Sportservice food and beverage and 15 parking passes. There are 47 permanent seats in each box and stools at the bar. There is a 52-inch high-definition LCD television, auxiliary monitors, leather seats, and granite floors and countertops.
You are also able to purchase the seats without the food and beverage package. Tickets for the Stars will be $85 and $100 for the Mavs. Without this package though, fans will probably have to buy a minimum of 50 tickets.
Already they have sold both boxes for 25 sports events. Frank Hubach, the arena’s director of premium sales, said the spaces could generate as much as $500,000 a season in incremental revenue.
I think this was a smart move for American Airlines Center. There were many requests in the past for reservations for suites or seating up to 60 people. They have not been able to cater to this request until recently with their new suites. It is already a success and will continue to be in the future especially with all the benefits that come along with the package.
N.Y. Marathon sponsors pick up pace
Volume 8, Issue 23
Marketers supporting the New York Marathon are fighting for as much space as the runners do before they start the race. The race has twenty-nine sponsors in total which accounts for ten percent increase in sponsorship revenue. ING is once again the title sponsor, who recently renewed they contract through 2007. ING support will give the women’s winner a $130,000 price, which is the largest first place purse in the history of marathon racing.
Some new faces will be seen and heard all around the race, including Coors Light beer. Coors light beer signed a three-year sponsorship which replaced Saranac in the beer category sponsorships. Coors light will promote their brew with 400 on-site promotions in New York City and will add leverage with branded tap handles and commemorative cans. We all (speaking from a beer drinkers point of view) know that Coors Light tastes like water, but now they’re sponsoring a marathon and putting runners on their cans and/or tap handles, come on now!
Another new sponsor will be Duane Reade which is one of the many mass merchants posing as a drug store. They will feature 300,000 marathon guides featuring savings in their 250 New York City locations. Their circular will sponsor the slogan “Marathon of Savings” sale in 3.2 million store circulars.
Other sponsors include Henkel, Asics, Best Buy teaming with Road Runner high-speed internet, Tylenol, Nickelodeon and New York Apple which has more than 70 spots on WNBC-TV using Marathon footage.
“With Deal, NASCAR Has Chipmaker AMD Inside”
Vol. 8 (23) p6
Darrin Schwarz
NASCAR COO George Payne credits the addition of series sponsor Nextel as the impetus for opening the door to other tech companies, such as Advanced Micro Devices (AMD). Becoming the official technology partner of NASCAR, AMD is committing $20 million over the next four years to improve competition and enhance the safety of participants. The company is attempting to pull in Intel, which has 85 percent of the microprocessor market share, compared with 9 percent for AMD. It seems AMD is expanding its presence in the sports world. Since 2003, the chipmaker has been partners with Lance Armstrong and his pro cycling team in the design of Trek bicycles. Results have been impressive with three Tours De France victories, demonstrating how AMD’s technology can be used as a source of competitive advantage. AMD has a plan for this multiyear agreement where the first year will focus on technology implementation in specific areas of NASCAR. Timing, R&D, and scoring have traditionally been handled in-house but NASCAR has finally acquired a technology specialist that can enhance these aspects. Now, NASCAR may possibly spend more time in other areas such as driver and team publicity or continuing to forget former sponsors such as Winston.
With Deal, NASCAR has chipmaker AMD inside.
Volume 8 Issue 23 Page 6
Brent Baird
Advanced Micro Devices is continuing its attempt to close the large gap between it market share of the microchip industry and that of it’s biggest competition, Intel, with an aggressive campaign using sports Marketing. AMD has announced a deal believed to be worth $20 million (over five years) to be the technology sponsor of NASCAR. AMD will use and continue it’s technology to work on the timing and scoring systems used by NASCAR. AMD will implement a mobile command unit to help facilitate the race results. It will also assist in the processing of data from races and studies to help with safety and other research projects that NASCAR has done on it own up till now.
This is not the first high profile sports marketing venture that AMD has taken on. It has worked with Tour de France winner Lance Armstrong and his team on the new design of Trek Bicycles.
AMD will have to start sponsoring a particular team after one year as part of the overall agreement.
AMD has technologies parts like IBM and Hewlett-Packard, but it not up to the same level as Intel due to Intel’s partnership with Dell. AMD is hoping that this sponsorship will help generate new business opportunities that will help it steal some of share away from Intel. I think that AMD has made a bold move; NASCAR is still running a very popular wave in all aspects of the American culture. Business men to janitors all have become fans of the sport, so if you’re looking to make as big of a splash in the sport marketing world (and you can’t afford the NFL) NASCAR is definitely the way to go. IT should pay off for AMD with out a doubt.
Dallas arena changs club seats to party suites.
Volume 8 Issue 23 Page 5
Center Operating Co, jointly owned by Tom Hicks and Mark Cuban recently spent $300,000 converting nearly 100 club seats at American Airlines Center into two party suites. Prices for reserving the suites ranges from $8,000 to over $10,000 depending on the sport and opponent and that price includes tickets as well as a food and beverage package and 15 parking passes.
I think the party suites are a great idea and will probably attract businesses to the areanas. Often corporations will buy a block of season tickets and offer those seats to clients, customers, and employees. In Dallas however, they could reserve a party suite instead. With food and drink service included as well as the luxury ammeneties such as leather seats and plasma TVs, the party suites become even more attractive when entertaining clients and investors. I think it's a good move that should bring added revenues to all teams who utilize the American Airlines Center.
“Dallas Arena Changes Club Seats to Party Suites.”
By Abbie Hoover
The American Airlines Center in Dallas has just recently created to large party suites that can accommodate large groups of people during sporting events. Tom Hicks, owner of the Stars and Mark Cuban owner of the Mavericks spent $300,000 dollars to create these luxurious suites that can hold up to 60 people, have permanent seating, a bar ledge and 52” LCD TVs. The cost of the suite can range from $8,000-$10,500 depending on which team is playing and who the opponent is. The price also includes food, drink and 15 parking passes.
Revenue from the suites could get as high as $500,000 a season. I think this was a smart move of the owners. If it works out as well as planned the first year alone would make back the $300,000 spent on the suites plus $200,000 profit. It was a great way to bring money to the teams and business, as well as provide a comfortable and luxurious place for those people who can afford it to watch a game.
"Danica-mania fuels big rise in IRL's ratings" vol.8 iss.23 pg.33
All of NASCAR and some of its' fans may not completely like the idea of a girl racing, but they can not deny the fact that ever since the 23-year-old Danica Patrick "raced" onto the seen she has boosted ratings in a seious way. Along with the serious push that Patrick has given to the Indy Racing League's (IRL)television viewership, they have also tried to role with that success by condensing and reevaluating the schedule for 2006. Instead of their usual 33 weeks of racing with 17 reaces spread out in their, they have put 14 races into 25 weeks. By shortening the time in which these races are held, they have taken away alot of competition that often ensued when it came to the NFL and college football. With this shorten time of racing, I think it allows race fans to increase their love of racing, which in turn increase the ILR's ratings. I think with Patrick and the new schedule, and the fact that ILR is reaching out to more fans, increases the sport likeability and fondness from even people who weren't the biggest fans to begin with.
“National Lacrosse League signs Reebok to 5-year deal” Vol8 (24) pg 4
By Heather Hileman
The National Lacrosse League (NLL) has now signed their biggest and most comprehensive sponsorship ever with Reebok. This five year deal includes head-to-toe apparel and shoe deal. The league states that this deal (apparel, media, and marketing commitments) is worth eight figures. The apparel includes Reebok-branded gloves, helmets, and apparel. Other equipment (sticks and other hard goods) will eventually be worn once Reebok expands its offerings.
This deal gives lacrosse a more national appeal by showing that America’s oldest sport is moving from its traditional Eastern regional roots. However, television deals are not yet complete. The NHL All-Star Game was aired on NBC Sports last season; however, the NLL commissioner is negotiating with three other cable outlets.
The NLL is becoming big enough that the organization is now contemplating starting an outdoor league in 2007. NLL is working because it has a lot of hockey owners and the NLL plays in a lot of hockey areas. Due to the same mix of speed and violence, NLL attracts hockey fans, which can only benefit the NLL.
"Big Decisions, Big dollars: Scrambling the TV picture" (Vol. 8, Issue 24, Pg. 1,6) by Daniel Benjamin
A major "bidding-war" is expected to develop amongst five media moguls for the following television rights that are up for bids: the NFL's Thursday-Saturday package (which consists of eight games per season coming with a possible price tag of $400 million a year); NASCAR's entire Nextel Cup and Busch Series schedule which is expected to hit the $700 million mark; and a partial MLB schedule (up to 150 regular season games plus the divisional series play-off games)which is projected to cost $150 million a year for the regular season portion plus additiional monies for the post-season action.
The major players' vying for these broadcast rights ar News Corp. (Fox and Direct TV), Comcast Corporation (Comcast and the Outdoor Life Netework), the Walt Disney Corporation (ABC and ESPN), Time Warner (TBS and TNT) and General Electric (NBC). The plan for News Corp. in addition to keeping NASCAR and MLB broadcast rights that they currently hold is to launch a new sports network with the condition they obtain the rights to the NFL's Thursday-Saturday package. Comcast's plans to make OLN, which just recently signed a two-year rights agreement with the NHL for $135 million, a broader sports network by obtaining the rights to the NFL and possibly Major League Baseball. Disney's plans are to acquire NASCAR rights including the all important Chase for the Cup leg (the final ten races of the season that determines NASCAR's champion) of the season and the entire Busch series. In addition, Disney might take an equity stake in the NFL Network with the rights to the Thursday-Saturday package. While Time Warner will try to keep the rights to a portion of NASCAR's second-half of the season (six to ten races before the "Chase for the Cup" is on) and possibly bid on the NFL package if the price is lower than expected. NBC plans to drop NASCAR unless the price drops.
I'm sure NASCAR, Major League Baseball and NFL chief executives are "licking their chops" when they see the fierce competition among the different media conglomerates since that usually means bigger rights fees the leagues are going to cumulate. I believe that the humongous fees that the networks are paying indicates a changing of philosophy where it now appears sports programming is being viewed by television executives as valuable assets to have (since ESPN generated Disney $1.92 billion in earnings) rather than just prestigious programming. The article said that both Fox and Comcast are looking to start their own major sports television network on cable and satellite. Although both companies have a platform to accomplish this theoretically, I really don't see this venture succeeding unless they can force ESPN "out" by outbidding them on the programs ESPN currently produces. The ESPN family of networks currently holds rights to MLB, NBA, NFL, auto racing (IRL and Formula One), tennis, college football, college basketball, a slew of obscure college sports (carried on ESPNU)plus original entertainment programming such as SportsCenter (their cash cow) and the World Series of Poker (etc.)seems to get bigger and more powerful by the day. Besides Fox has already tried to take over sports programming but failed miserably on the national scene with their Fox Sports Net subsidiary (although FSN has been succesful regionally).
“National Lacrosse League signs Reebok to 5-year deal” [vol. 8 iss. 24, pg. 4]
Recently the indoor National Lacrosse League (NLL) signed one of its largest and most comprehensive sponsorships ever. The NLL and Reebok came to a five-year agreement that is worth eight figures when including all the apparel, media, and marketing commitments. The players will wear Reebok-branded gloves, helmets, and other apparel this season, and will have other Reebok equipment including sticks and other hard goods. Also, for the first time, Reebok will include authentic and replica apparel that will be available next summer.
NLL Commissioner Jim Jennings, is confident that this deal with Reebok will contribute even greater to the growing popularity of lacrosse. The NLL will have added credibility with the Reebok deal and will hopefully demonstrate that America’s oldest sport is moving from its traditional Eastern regional roots to a more national appeal.
Television plans have yet to be completed for the upcoming season however, if a deal is a made, Reebok is expected to support it with an ad buy. Also, Reebok will have placement on the NLL website and will title sponsor the grassroots, “Scoop n’ Shoot” program.
The NLL is hoping to have an outdoor league in 2007. It is also moving out of its traditional markets and is being seen as more of an action sport now, with the same mix of speed and violence as hockey. With all these changes, the NLL should start to see some growing interest in fans and players and in the long run could become a much more well-known and popular sporting event.
"You Didn't Think He Was Going to Endorse Subaru, Did You?"
vol.8 iss.24 pg.12
Eventhough this article is small, it is a topic that I am extemely interested...what's in a name? For Buccaneers rookie running back Carnell "Cadillac" Williams, it's an endorsement by General Motors' Cadillac brand. With a name (or nickname)like that AND the fact that he has ran for more yards in his first three games than any other NFL rookie before him, he now is the proud owner of a silver Cadillac XLR convertible, which goes quite nicely with his black Cadillac Escalade. Cadillac was extremely happy to find out that not only are they going to endorse Williams, but he has already put some of his own money back into the company by purchasing the Escalade on his own. I'm sure that didn't sway their decision at all of wanting Williams as their endorser, but it sure did look good on paper.
When I first talked about what's in a name, this is what I am talking about, how far or how much can your name get you? It seems more and more people are naming their kids off the wall names with the high hopes that some day their child will make it in show business, the NFL, the WNBA, etc. Names like Major Applewhite, Lebron "King" James, Paris Hilton, etc. The list goes on. So the next time you have the opportunity to name or even give a "nickname" to someone, you should take into consideration that they might possibly make millions from taht very clever name!!!
“NHL players mount challenge to union” Vol 8 (24) p.4
Darrin Schwarz
Keeping with the labor relations theme, Robert Lanaz is representing more than 50 NHL players who are protesting the way Saskin got the top NHLPA job. This group says the vote being taken now violates the Labor Management Reporting and Disclosure Act, because the dissidents have been denied the right to communicate their message with the voting members. Lanza and the players have filed an unfair labor practices charge against the NHLPA with the National Labor Relations Board, alleging that the current operation of the union “ results in favoritism for certain members” and that the union “has ignored all requests for information” from members. So, the dissident group plans to launch a players-only Web site to get its message out. Another vote was conducted on September 12, but as of last week there was still no news on the result. The reasons for the delay are unclear but some teams are withholding their vote for now. The Detroit Red Wings are also withholding their ballots claiming, ‘We still have not voted and we are not going to vote until Ted Saskin starts releasing information’. They don’t plan on voting on something that the players have no voice in and the team says the union is not permitting the players to communicate with each other. There are now about 100 players out of a total 700 who support the dissident group.
Most problems in labor relations originate from poor communication or lack-there-of. This disagreement started with poor communication and organization from both the NHLPA and the players, and it seems it will continue until both sides convene and reach a voting process and outcome that can appease the players as well as the dissident group.
National Lacrosse League signs Reebok to 5-year deal.
Vol. 8, issue 24, pg4. By Abbie Hoover
The indoor national lacrosse league has been around since 1987; that’s 18 years and yet it is unheard of. Just recently the NLL signed its biggest sponsorship ever with Reebok. Now the NLL joins the NFL, NHL and NBA with Reebok agreements. With this endorsement, all NLL players will wear Reebok branded gear from head to foot.
I think this is a good move for the NLL, but if they want their sport to become more popular they need to do more. They are also working on TV plans to get games aired on tv; currently the All-Star Game and title game were aired on NBC sports. While signing with Reebok may help the NLL, it is a better deal for Reebok advertising. Reebok is not a well known lacrosse brand. I think if the NLL wants to become a more popular lacrosse league they should really go for a sponsorship with a well established lacrosse equipment/apparel company.
“How media training pays for athletes”
Vol.8 Issue 26 page 20
Kelly Brinker-Schaeffer
This article’s main focus was to point out that effective communication skills should be learned early and can boost the overall earning power off the field. Well-spoken, accessible athletes project a positive image through the press that’s very attractive to sponsors. The sponsorships will then allow the athletes to have a career past their professional one. Also, athletes who attend regular interviews polish their skills and help themselves in second careers of broadcasting and business. The article mentions Kareem Abdul-Jabbar and Eddie Murray who avoided the media as players and neither of them have high profile careers as some of their peers. One the other hand Ben Rothlisberger, worked on his communication skills while he was still a student in Miami, he was able to effectively communicate to NFL teams before the 2004 draft and has become a successful corporate spokesman.
I feel that communication skills are very important no matter what profession you are in or what your ultimate goal in life is to achieve. The better you can express yourself the more exposure you will have and the more people you will have believing in you and what you can do.
National Lacrosse League signs Reebok to 5 year deal
volume 8 issue 24 page 4
Brent Baird
The National Lacrosse League is considered a low tier professional sport, but may have just taken a step to raising itself a notch or two. The NLL has signed major sporting manufacture Reebok to a 5 year deal that is thought to be in the eight figure range. This is a big step for a league that sponsorships range in the six figures. How ever this deal may be worth more than just the money.
The deal will provide equipment and clothing to the league and marketing services. This will include the selling of team apparel and jerseys that will give the league exposure that it has not previously had. This will put them into a new category that may help them gain other major sponsors.
Reebok will also get access to may lacrosse fan for their new line of merchandise in the sport of lacrosse. Lacrosse is a growing sport and to get in and be one of the first major sponsors will most likely prove very beneficial to the company. It will also give them a leg up as the league expands and grows and get more media attention.
I believe this was a good move for lacrosse and Reebok. The league gets some needed endorsement through the sponsorship and Reebok gets a foot in the door with a growing league before any competitors.
You didn’t think he was going to endorse Subaru, did you? Vol 8 Issue 24, pg. 12 – by Sarah Galiotto
He ‘runs smooth, like a Cadillac,’ an announcer said of Carnell “Cadillac” Williams, now Buccaneers running back, when he was in high school and the name stuck. He had it through college and now the NFL. So when thinking of it, why wouldn’t “Cadillac” be endorsed by General Motors’ Cadillac in the Tampa Bay area? As the title states, duh, he’s not going to go for Subaru or any other brand. Bu the truth of the matter is that Williams had a caddy (a black Cadillac Escalade) before he was signed to this deal and was then given another silver Cadillac XLR convertible
The way that I see it is that both Williams and General Motors’ Cadillac are getting a sweet deal out of this partnership. Williams gained a convertible, cash out of the deal, and a Cadillac bike from an official licensed product of Cadillac cars called Cadillac Bicycles. General Motors’ is getting endorsement from the “Cadillac” of the NFL who happened to run for more yards in his first three games than any other rookie NFL running back before him. They make a nice pair.
New Xbox 360 console to hit market (Vol 8, Iss 24, pg 7)
by Alicia Detweiler
On November 22nd, Microsoft will launch their next-generation video game system - the Xbox 360. Sports games are a large sector of video game sales and are always a steady source of revenue for game makers. New titles in each series come out every year and many fans spend anywhere from $20-50 just to own the lastest title in their favorite sport franchise.
Not only are sports video games a huge source of revenue, they also provide revenue for leagues, teams, and players' associations through licensing and likeness rights. Just a few months ago EA signed an exclusive rights deal with the NFL to be the only video game company to publish an NFL licensed football game. Take-Two (maker of popular 2k Sports titles) followed suit by signing a similar long-term agreement with Major League Baseball.
You didn’t think he was going to endorse Subaru, did you?
Volume 8, Issue 24
Tampa Bay Buccaneer rookie running back Carnell “Cadillac” Williams recently signed a deal to endorse cars for General Motors’ Cadillac dealership in the Tampa Bay area. As of now, this deal is just regional but the potential of this rookie is the sky. Before his hamstring injury, Cadillac ran for more yards in his first three games than any other NFL rookie before him. The financial terms were not released, but he is sure to get cash out of the deal as well as a brand new Cadillac XLR convertible. This convertible will join the black Cadillac Escalade that Williams already owns.
John Orth, Cadillac marketing manager for the southeastern U.S. was very pleased with Cadillac’s decision to endorse Cadillac, but more importantly the fact that Williams is already a Cadillac owner. “He brought his first one, so he put his own money behind it.” This will help Cadillac’s new image of designing younger looking cars for younger demographics. Williams also possesses endorsement deals with Nike, Athlete Web Services, Famous Inc., and soon possibly a company called Cadillac Bicycles.
“SkyCam gets its shot” Vol8(25)
By Heather Hileman
On November 5, ESPNU will air the entire Virginia Tech – Miami football game using SkyCam for all live play shots. SkyCam has actually been around since the 80s; however, it has become more popular among the broadcasters in recent years. SkyCam is usually used for replays; however, this will pick up the regular ESPN feed between plays and then cut back to SkyCam each time the ball is snapped. If people enjoy this type of telecast and they receive good feedback, ESPN will possibly try something similar with college basketball by having the camera suspended above the rim. Even though SkyCam will cover this college football game on November 5th, ESPNU will still send its own production truck team of technicians, which will cost about as much as the telecast would for an original production. And the most basic college football production costs at least $30,000.
I can see having this SkyCam for something different and I guess if they receive good feedback from the public then this view is better to watch football. They just want to get more people watching the games and by enticing a new view for the game allows more viewers to tune in to critique and evaluate the SkyCam.
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“Hold the phone: NBA requires wireless access”
Vol 8 Issue 25
By Kelly Brinker-Schaeffer
The NBA has decided to require all 30 of its teams to provide in-arena wireless access, which will make it the first of all major league teams to do so. The NBA feels that the wireless technology this season will eliminate much of the demand for phone lines in media workrooms and courtside areas. The long term plan for the wireless technology is to allow fans to access it using personal digital assistants. They are also hoping that a wireless gate entry will better serve fans and monitor fan access. One major advantage is that it limits the need to do lots of physical labor to cable and wire the building. What these teams won’t do to cut work and labor out? About 20 teams have already installed this technology, teams must pay for the access, but are not charging media outlets.
Skier’s comments on banned drugs fail to spook sponsors
October 31 Page 11
Brent Baird
The Turin Winter Olympic Games are less than one hundred days away and things are starting to get into gear. Alpine skiing star Brode Miller slipped in an interview and divulged that he was working with Nike on a ad campaign that was to be kept quiet until its scheduled release prior to the beginning of the games. The campaign was to be shot over the first couple weeks of the new ski season, and will focus and have a real feel for Bode. Nike sent a team of marketing and advertising people to spend time with Bode in his hometown to get the real feel of his life and personality.
Bode receives over 2 million dollars annually from endorsements and appearances.
However, it was another comment in an interview that could be the riskiest for Bode. The skier commented that he believes that the banned substances testing done by the International Olympic Committee was too stringent. He also stated that “used in a way…directed by the research that’s out there, even some drugs like EPO could potentially balance the risk of the long-term health problems against the potential gains for not injuring yourself.” This comment has received some stern comments from USOC spokesman Darryl Seibel and World Anti-Doping Agency chairman Dick Pound.
Although most calls to Bode’s sponsors have been left unreturned, there does not seem to be a back lashed coming due to his sponsors.
If the comment was meant to get the attention of the drug enforcement staff, it worked I believe that he will be watched closely for any indications of usage, and most likely any additional comments that would be against testing procedures. I think it is reckless of such a well know athlete to suggest that some of these drugs might be ok to use. While he did infer that it should be done with in a monitored environment (according to research) the comment may still come across as an unofficial endorsement of the substance. Many of the young athletes, or those looking to get ahead and do not the safety resources could put them selves at risk because of such comments. I believe that there is freedom of speech for everyone, but with that freedom comes responsibility, something many professional athletes need to learn.
“SkyCam gets its shot” [vol.8 iss.25 pg.16]
For the upcoming Virginia Tech – Miami football game, ESPNU plans to air all live play shots using the SkyCam. Normally, the SkyCam was used sporadically throughout games and mainly for replays. For this game though, every time the ball is snapped and in play, the viewers will be watching the action from the SkyCam.
The SkyCam has been around since the 1980s, but has become more popular as the years go on. Ever since the SkyCam was sold from its original owner in 2004, it has more than doubled. It is supposed to be used about 125 times this year.
This seems to be an interesting idea. It hasn’t been done before, so it’s a bit of a risk, but it could be worth it. More people might tune in to watch this game because of how it is being aired, and from there it can be decided if this was a popular idea or not.
‘Fellows plots to get Callaway on course’
Vol. 8 (25)
Darrin Schwarz
George Fellows was the head of Revlon in the mid-to late 1990’s and now he’s the president and CEO of Callaway Golf. The company is no longer a powerhouse in the golf industry since the founder Ely Callaway passed away in 2001. In an effort to ‘right the ship’, Callaway is cutting 500 jobs (15% of workforce) intending to save $70 million over two years while spending $12 million in restructuring. He has already received several unsolicited bids to buyout the company but claims that possibility “nonsense”. Not only has Fellows moved into a completely different product realm, but he seems to have quite a challenge ahead of him. After an initial jump in stocks following the announcement of job lay-offs, Callaway has since dropped at the close of the market on Oct. 19. With the golf ball woes and cutbacks, and with the Nike SasQuatch ready to emerge, Callaway Golf better ‘grip it – n –rip it’.
When handing out licenses, MLB plays small ball
Volume 8, Issue 16
While the NBA, NFL and NHL have contracted with big name Reebok for the main bulk of their licensing, MLB has taking a different route. MLB as decided to look into the smaller domestic production companies that have a specialization in the quick-turn demands that necessary in the licensed apparel market. They believe dividing the channels of distribution is the best way to cover all the bases.
Reebok has its logo on NFL and NHL jerseys; MLB bid out its on-field apparel rights last season to much smaller firms such as New Era and Majestic. New Era continued as the exclusive primary headwear vendor and Majestic grew its jersey rights from half to all MLB teams. Nike ended up with the compression wear as well as limited apparel and cap rights, while Reebok ended up acquiring s smaller footwear license.
A comparison was made between the annual revenue for New Era and Majestic and Nike and Reebok, but it was justified by staying that how MLB was looking for companies who were the best at what they do. This quote from Howard Smith (former Reebok marketer and current point man for MLB licensing) was “Companies like New Era and Majestic are Boston Whalers, zipping around a harbor of giant cruise ships,” … “If Adidas or Reebok doesn’t ship a cap, no one knows it. If New Era isn’t shipping, someone in Derby, N.Y. isn’t eating.”
HBO Dares to Market- Vol 8, Issue 25 pg 15 By Sarah Galiotto
HBO will be doing a documentary of the United States Women’s Soccer Team. The US Women’s Soccer team has had success in winning the world cup and Olympic titles. This documentary is getting more marketing support than any other documentary that has been done.
The documentary has been named ‘Dare to Dream: The Story of the U.S. Women’s Soccer Team.’ Screenings will be done on campuses, particularly ones that have strong women’s soccer programs. Nonprofit organizations will also help support and market the documentary. The documentary will also be screened in popular soccer towns across the U.S. and will have a gala premier featuring the women’s team on November 29. The 118-minute documentary will air on HBO on December 11th at 8p.m.
I think that this is a wonderful idea. The U.S. Women’s Soccer Team has brought a lot of recognition to women’s sports in the past several years. Being a soccer fan myself and being one of at least thousands that witnessed the U.S. women win the World Cup in 1999 from my home and watching Brandi Chastain infamously rip off her jersey and kneel down in the middle of the field, delights me that they are showing recognition to women’s sports. The U.S. Women’s Soccer team has proven that they are a powerhouse.
I think that the way that HBO is marketing it is good. They are going to cities and colleges that soccer is popular and promoting it before it comes out on HBO. They are even getting the girls, themselves, involved which will bring many fans to see the documentary and the athletes.
"Nets pay price to cover operating losses" (vol. 8, issue 25, pg 3) by Daniel Benjamin
After not being able to persuade investors to contribute to the cash shortfall that the New Jersey Nets were facing, Nets owner Bruce Ratner borrowed $60 million at the rate of 10.5% last month from Fortress Investments. This new debt brings the Nets total debt upto $210 million, with $150 million having accrued when Ratner had to borrow money to purchase the team.
NBA league policy allows teams to borrow up to $100 million using the franchise as security. Since the franchise is used as security the interest is very low for these loans. After using these low interest loans, teams that still need to borrow usually create a holding company putting up revenue generated by the team (the Nets are currently losing money playing in their current Contential Airlines Arena, which is why they are going to move to Brooklyn in 2008) and ownership gurantees as collateral. The type of borrowing that the Nets are using is called mezzanine financing, which typically has a higher interest rate because the lender (in this case Forteress Investments) would generally be one of the last in line to collect their debt in the event that the Nets go "belly up".
It's not surprising with the escalating costs of an expansion team or buying an existing team (this is due to the selling/awarding process which is generally an auction or another type of bidding process),that owners have to borrow money in order to do this. Even though New York has proven that it can manage hosting two franchises in the same league (Rangers and Islanders;Mets and Yanks) I'm not sure how successful the Nets are going to be in Brooklyn since the Knicks already play their (although New York City is a basketball hotbed). The reason I say this is because it seems the more popular of the teams (Yanks and Rangers) do alot better at the gate then their counterparts and their is no doubt that the Knicks are New York's team. I believe that mezzanine financing is great for lenders because they can charge well above the interest rate which obviously means more money for them. I also believe this type of financing has some appeal to sports teams because they are sort of protected from these types lenders if the team files for bankrupt.
"LeBron's Right-hand Man"
vol.8 iss.25 pg.1
Can Maverick Carter prove critics wrong? That is the big question not only in Cleveland, but in the entire sports world. Some of us, or should say most of us have no idea who Maverick Carter is, but we all just may be watching a 24 year-old become an entrepeanurial giant right before our eyes. When Lebron James, who has been said to be the next Michael Jordan, decided to fire his agent everyone assumed that he might switch to a bigger agent or agency altogether, but instead he decided to hire three of his closest friends and the man to lead the effort was Maverick Carter. The team includes James, Carter and James' other two close friends, Randy Mims and Richard Paul. The four have called themselves "The Four Horsemen" and have reserved the names "4 Horsemen Management Co." and "4 Horsemen Development Co." with the Ohio Secretary of State's office.
The reason for the fire and the new hire had many reasons, but LeBron decided..the eay he wanted to di it is to set up himself as if he was a brand or business and he knew his his best friends would be able to make that happen for him. Although LeBron trusts his friends more than anyone, he still hires other respected professionals in the Cleveland area to help him and to help guide his newly appointed mangement team.
Being from Cleveland I really enjoyed reading this article and learning some important information about LeBron and his management team that I did not know before. That is why it's amazing to see exactly how much pressure and scrutiny and how everyone wants a piece of such a young and successful athlete. It will be interesting to see how successful this management team is and will become with the most highly profiled professional basketball player right now!
Hold the phone: NBA requires wireless access (Vol. 8, Iss. 25, page 4)
The NBA is requiring all teams to provide wireless access by the start of the 2006-2007 season. The idea is to make all the media areas wire-free. While initially the technology will only be available to the media, it is likely that eventually the fans will also be able to access the service. It could even be used for wireless gate entry or for fans to order concessions from wireless devices and have their order delivered to them in their seats.
I think this is something that is long overdue. Wi-fi is relatively inexpensive and eliminates the need for running cables thoughout arenas. With entire cities like Philly and Austin trying to make their entire downtown areas into hotspots, it seems logical that more and more pubic places, such as sports arenas, do the same. It would be a huge advantage to fans as many people have PDAs and laptops with built-in Wi-fi cards and hopefully we'll see more sports organizations follow suit with their arenas as well.
"SkyCam Gets Its Shot" Vol. 8(25)
By Abbie Hoover
The Virginia Tech-Miami football game will be one to watch this weekend. Why? because ESPNU will be using a SkyCam to show all live play shots. SkyCams have been around for years, but they have mainly been used for showing replays. If ESPNU has success with the SkyCam with football they will try a similar camera view in college basketball. They plan on hanging a camera above the rim.
I can see using a SkyCam for replays but I don't know if I'd like it for all plays. When the cameras are on the sideline, you are closer to the players and you can see the emotions on their faces. I wouldn't enjoy a game as much through a bird-eye view, I like the sideline cameras. It is a new idea, and I'm interested to see what viewers think of it after the game is aired.
Spalding rolls out no-leak “Neverflat’ ball- Volume 8 Issue 26 p. 8 By Sarah Galiotto
First it is a pump built into a ball, now it is a ball that will never go flat, well, that is not for at least a year. Spalding has created the ‘Neverflat’ basketball that is composed with a “new membrane, a redesigned valve and NitroFlate (a substance added to the ball during inflation that forms a barrier preventing seepage).” Spalding is hoping for sales to inflate as they did when the Infusion technology was introduced. These sales were over 50 percent and they would like a replication and then some.
Basketball players look for a ball that is ready to dribble and shoot with. This ‘Neverflat’ basketball will be ready for athletes to start playing, without worrying if they need to pump the ball up. This is a great idea. And the amazing thing is that Spalding is giving a money-back guarantee if the ball does not hold up to the standards that they are giving it. This is satisfaction for the consumer and good advertisement for Spalding, saying
Pro Football Loses a Giant Leader
Vol.8 Issue 26
By Kelly Brinker-Schaeffer
New York Giants patriarch, Wellington Mara, 89, died last week of cancer. Mara was known for always trying to do what was best for the league. Mara mainly stuck to the football side of the ledger. He was the general manager of the team in the 50’s and 60’s. Cincinnati Bengals owner, Mike Brown, said, “In his mind, his big achievements in football would have been the championships his team won and the friends he made.” Mara was also friends with Dan Rooney, owner of the Pittsburgh Steelers. Mara convinced Rooney that it was fine for his team to shift to the new American Football Conference back in 1970. Which for Rooney ended up to be a wise move, since the Steelers won 4 super bowls from 1975 to 1980. Wellington Mara seemed like a really nice guy that was always trying to help people and do what was best for the game of football. I think he will be missed by the New York Giants and other owners in the NFL.
“Spaulding rolls out no-leak ‘Neverflat’ ball”
By Heather Hileman
Spaulding has no invented a ball entitled “Neverflat”, that is “a ball almost impervious to leakage.” Sales for this new basketball starts in November and will be sold in stores like Dick’s Sporting Goods; however, with a price of $40.00.
This ball is apparently promised not to leak air for at least a year with the normal life of a basketball being two years. Marketing effort will include most advertisements on television around the time of NBA All-Star Game. Another ball they made five years ago was entitled “Infusion”, which placed mini pumps inside balls. That technology is now used inside most sports balls including: footballs, soccer balls and volleyballs.
Those who partake in basketball want a ball that will last the longest. Any marketing plan that can allow this to happen will succeed in the end because that is what basketball players, fans, etc. want when they partake in the sport.
“Spaulding rolls out no-leak ‘Neverflat’ ball” Volume 8 Issue 26 PG 8
By Heather Hileman
Spaulding has no invented a ball entitled “Neverflat”, that is “a ball almost impervious to leakage.” Sales for this new basketball starts in November and will be sold in stores like Dick’s Sporting Goods; however, with a price of $40.00.
This ball is apparently promised not to leak air for at least a year with the normal life of a basketball being two years. Marketing effort will include most advertisements on television around the time of NBA All-Star Game. Another ball they made five years ago was entitled “Infusion”, which placed mini pumps inside balls. That technology is now used inside most sports balls including: footballs, soccer balls and volleyballs.
Those who partake in basketball want a ball that will last the longest. Any marketing plan that can allow this to happen will succeed in the end because that is what basketball players, fans, etc. want when they partake in the sport.
"NFL offers Super Bowl Travel Package" vol. 8 Issue 26 by Daniel Benjamin
The NFL is expanding its business interest into the hospitality sector with the launch of their "NFL on Location" program. The "NFL on Loacation" program is a travel package that is centered around the Super Bowl which is being held in Detroit this year. This program offers NFL sponsors and other companies the opportunity to purchase a one to five day package ranging from $3,999 to $7,499 per person. Firms are required to purchase atleast ten trips to tap into the program. The "NFL on Location" package includes entrance into the NFL's game-day receptions held in the corporate hospitality village, tickets to the NFL experience, merchandise and special gifts. In addition, companies can buy tickets to other entertainment activities that are held earlier in the wee for an extra cost. The NFL will make 2,000 tickets and hotel rooms available for this package. These tickets will come from a portion of the 25.2% of tickets the league is allocated for the Super Bowl. The NFL plans to expand this program to encompass other events such as the draft and the American Bowl.
I think this is a great way to increase revenue for the league. I expect this program to be a huge success since the Super Bowl is seen as the mother of all championship games. Besides the game is a sideshow to the rest of the week's activities that are held in the host city.
‘Dress to oppress? No, there’s nothing wrong with NBA code’
Vol. 8 (26) p.24
Darrin Schwarz
Is Hip-Hop culture related to gangster culture? You need to ask yourself this question when considering if the new NBA dress code is discriminating against minorities, in this case young, African-American males. The dress code is only placing restrictions on the ‘thug look’ some players display when they don’t play and sit on the bench or during press conferences. This same look is displayed in hip-hop videos where the artists depict gangster lifestyles and portray a sense of pride created by the environment in which they grew up. These players are upset with the dress code because some old white guy is telling them how to dress. Well, this old white guy is your employer and they are trying to improve an image that has been tainted with acts of aggression on the court and in the stands that is quite similar to the anger expressed in so many rap songs. I don’t think anyone should have to sacrifice who they are. I don’t think the NBA is trying to tell the players how to live, nor are they trying to steal their identity. Although, if some the players believe their true identity is rooted in throwback jerseys, chains and medallions, or ‘bling’, then maybe their superficial manhood is at stake.
Questions over firm picked for Superdome might cause delay
Volume 8 Issue 26 Page 15
Brent Baird
When bids were accepted for the renovation of the Superdome from the damage caused by hurricane Katrina there was a provision to the process that apparently one company overlooked. The process required any company submitting a bid to disclose and projects that had caused litigation to be enacted. Leo A. Daly did not disclose to the selection board that he was currently suing the city of Atlanta for firing the firm for the Hartsfield-Jackson International Airport project. The city had fired the firm due to the project being turned in late and highly over budget. Then once the the firm had found out that the Louisiana group had found out about the litigation it promptly reported the situation.
Now the Louisiana officials will be meeting and hold hearing to decide if the project should be re-bid.
I can see where such a provision can and should include in projects of this size and scope, especially if tax payer money is involved. I believe groups should know what the “track record” is of companies that want to complete such projects. This would probably save a lot of time and money be giving committees and boards a better sense of the work produced by the companies that are contending for various projects.
The officials have set a deadline of 60 calendar day for the project to be completed. Under such time limitations having information about such law suits would be helpful for the board to make the right decision. Now that board will have to make another decision if it feels that their history of this firm is ok and if it trusts it due to it’s recent actions.
"Big Business Behind the PBR"
vol. 8 iss. 26 pg. 1
The Professional Bull Riders is not your normal organization of professionals. It is nothing like the NBA or NFL, it is a tight knit group of brothers who all know, respect and are there for eachother when time get especially rough in this business. Just one of many of the heart-stopping examples of this is when a 24-year-old cowboy named Ross Johnson unfortunately got his ankle caught in the rope that was circled around the midsection of a 2,000-pound bucking bull. There was nothing Johnson could do, he was facedown in the dirt trying to get away from this thrashing beast, but was unable to, that is by himeself. That is when his fellow PBR "brothers" came to his rescue and did everything in their power to free him. Luckily, after a few minutes of agony as the crown watched on, Johnson was freed and was able to walk away from the situation. Amazingly, this is exactly why the PBR and its fan base is growing so rapidly.
Also, the PBR is looking to boost it's revenue and sponsorship each year and that's just what it did in the past year. This year they brouught in $22 million in sponsorship and about $38 million in total revenue, compared to last years numbers of $17 million and $34 million respectively. And according to Randy Bernard, the PBR's chief exceutive, he says that they are on track to meet all of their goals. And these goals include keeping and enhancing the relationships of its business partners, which is what is doing with Ford Motor Co., which has been a sponsor of the Built Ford Tough Series, the PBR's top tour; since 2003, signed a two-year; $8 million sponsorship renewal last summer. Some other high profile sponsor who look forward to the rising love of bull riding are Enterprise Rent-A-Car, Frito-Lay, PepsiCo, and US Bank with many others companies as well.
Not only is sponsorship and deals grwoing, but they are also looking forward to the international growth of this sport. People want to see excitement, thrills, and engergy. That is why bull riding is growing at the rate at which it is. In this fast pace world, we as Americans love to see someone go right to the edge, and then get up and walk away, and that's exactly what happens day in and day out the bull riding business.
Dress to Opress? No, there's nothing wrong with NBA code. (8) 26. By Abbie Hoover
NBA commissioner David Stern recently put a dress code in place for all players to follow when at any team function, from news conferences to sitting on the bench when not in uniform. I think this is good, the players need to represent the NBA in a professional manner when at events associated with the NBA. Despite what they may believe, the NBA is a business and the players need to act like professionals.
Apparently the players disagree with this and are accusing the league of discriminating against minorities. That is the dumbest thing I've heard of, and the players are acting like spoiled children. In business, image is very important, so a dress code is very appropriate. They aren't requiring an all the time dress code, just for league events. When the athlete is home or out on thier own, they can wear whatever they want. All businesses require some form of standards for their employees appearance. Just because their business is playing basketball doesn't make them exempt.
The league is not trying to change who the athletes are, or trying to opress them. They just want them to look professional at league related events; nothing more nothing less. To quote the article: "To suggest the NBA's move is racially motivated to opress minorities is extremely short-sighted, reductionistic and simply illogical. In short, what does the league have to gain by discriminating against its black players?"
"New Fabrications"
vol. 8 iss. 26 pg. 10
Under Armour is the hottest sport aparel brand for the past three years, so its no wonder that they would be in negotiations with getting an NFL license, and these two parties have been talking for some time now. And it might sound like an easy take to come into an agreement with the NFL, but that is not the case. Since rights for the "performance apparel" category are under Reebok's current NFL master apparel license, you would think that Under Armour would not be able to be apart of that, but since Adidas recently acquirred Reebok for $3.8 billion, everything is on the table because no final contracts have been set as of late. And it's just like thhe NFL to do what they do best and that is suck the bone marrow out of companies it does business with said one senior executive at an NFL licensee. And for this, the NFL may be leaning torward the Under Armour Adidas deal because it would most likely yield more than the current Reebok contract alone. All of this money, contracts and licenses' stays up in the air, but soon we should know what exactly is going to happen with Reebok, Adidas, Under Armour, and the NFL in the near future and we can expect these contracts to exceed the $100 million mark. We'll all just have to wait and see.
Is sports video next for iPod?
Volume 8, Issue 26
Apple Computer Inc. is once again coming out with a new iPod. This iPod will be the exact same size as the original and have similar characteristics and aesthetics, but will have the capability of video content viewable and downloadable on the new video iPod. No one from Apple would comment, which is typical because they’re always reluctant to discuss future initiatives in the massive media market. Information was sourced from major sports leagues which either confirmed discussions on making video content available or that talk about video content is expected to begin soon. Apple’s online digital download store, iTunes, now sells music videos and several ABCTV and Disney Channel shows.
A deal to get sports content on iTunes would not be unprecedented. Just last year, the NFL, in conjunction with Audible.com, made audio play-by-play of the NFC and AFC Championship Games and Super Bowl XXXIX available on iTunes. The major problem is, that this new video iPod will not include the capability for streaming live video, which has assumed a place of importance in digital video strategies for each of the major sports leagues. Another problem is strategizing to either focus on video alone or enlist the significant marketing muscle Apple has become. With their digital music players alone, Apple has propelled to a 72% market share for portable MP3 players. Just this significant stat alone could help any company push a new product of similar quality and efficiency.
"Getting the Benz: Cavaliers sign Mercedes for club arena"
vol. 8 iss.27 pg.10
The Cleveland Cavaliers have recently signed a five-year deal with the luxury carmaker Mercedes-Benz who will be the presenting sponsor of the team's private club area in the recently remaned Quicken Loans Arena. This deal is only one of many that have taken place at a rapid pace since the new Cavs owner, Dan Gilbert will be beggining his first full season running the franshise after he bought the team from Gordon Gund last March for $375 million. Other deals that have happened since then are that he signed a new arena naming rights deal with Quicken Loans, coincidentally, a sister company of Gilbert's Rock Financial mortgage company;they landed a season sponsorship deal with Cub Cadet; signed Pepsi to replace Coke for the pouring rights in the arena; and lastly will soon be renovating and upgrading the arena's scoreboard and luxury suites. It is obvious that Gilbert is an extremely business saavy man with many ideas to make the Cavs more marketable and to increase revenues as quickly and efficiently as possible.
As for the Mercedes-Benz Club, it has a capacity of 550 with an averag4 cost of $4,200 per club seat, creating the potential for an additional $2.3 million in revenue and so far the club is 90 percent sold. Making the overall sponsorship revenue is up 40 percent compared with last year.
I think think that overall, Dan Gilbert has been doing an excellent job to increase the publicity and revenues with the Cleveland Cavaliers and with Lebron James as their front man, he should have no problem making the best out of a very good situation to begin with.
"Baseball calls up young guns: Clubs turn to less-seasoned execs for energy, new ideas." {vol. 8 issue 27] by Daniel Benjamin
Major League Baseball clubs are turning to younger executives to run their franchises. The Tampa Bay Devil Ray's promotion of 29 year-old Matt Silverman to President and 28-year old Andrew Friedman to Executive Vice President of Baseball Operations seems to be continuing the trend of having younger executives to manage top level positions. This trend is a result of the success of former Boston Red Sox General Manager Theo Epstein (who became GM three years ago at the age of 28) and former los Angelas Dodger GM Paul DePodesta, 32. Texas Ranger's GM Jon Daniels 28, and the Red Sox Director of Player Personnel Peter Woodfork (Woodfork is a candidate to replace Epstein as GM)29, are baseball other young executives. Silverman, Daniels, Friedman and Woodfork all have a few things in common; they are all Ivy League graduates and the have a background in business.
I think that it is interesting to note that this trend of hiring young executives for top management positions is only occurring in baseball and not the other big four leagues. Also, I think that it is a good idea to bring in young executives for their "fresh" ideas and energy which could uplift a franchise. My one concern about the recent promotions of the "young guns" is do they the baseball knowledge that is required for their positions or are they just "cheap labor" that knows business. If it is the latter, I believe these executives better know who they can trust (such as former Houston Astros GM Gerry Hunsicker who is currently the Senior Vice President of Baseball Operations for the Devil Rays) because if they don't this experiment with young executives will be a failure.
Baseball calls up young guns
Volume 8 Issue 27
Many MLB clubs have turned to less-seasoned executives for energy and new ideas. Most of the news operations managers and general manages haven’t even hit the thirty mark, and most of them have a background in business and not baseball. This new era of younger generation managers is not only good for new ideas in the game of baseball, but also very economical for most owners who have very high demanding budgets. For example, Jon Daniels recently got hired as the General Manager for Texas Rangers, and is reportedly getting paid $350,000 for his duties. That sum is a mere fraction of the millions as such managers from the New York Yankees and Atlanta Braves.
The forerunning for this new younger generation managers is Theo Epstein, who recently decided not to resign as the Boston Red Sox’ General Manager. Epstein, who three years ago become the youngest GM in history at age of twenty-eight and helped end the eighty-six year title drought. He cracked the door open for baseball’s front office youth movement. Even though Epstein’s success at such a young age is notable, many older GMs believe that you still can’t put a price tag to experience and knowledge. Most of them believe that they had a good grasp on baseball management at younger ages, but now, some twenty or thirty years later, believe that they have lived and learned through it all.
Another point that surrounds this young generation movement is how baseball’s continued reliance on the Ivy League. All four guys mentioned in this article as well as Epstein have all graduated from Ivy League schools and give owners confidence that they can effectively run they baseball clubs.
It’s very interesting to me because this would be a dream job. I believe that in the business world you need to have new and fresh ideas constantly to continue the growth of the business. Younger generation managers not only bring that energy level, but also can relate to the players at a closer age level, being that most baseball players don’t get placed into the majors until the 25-29 age mark, which is exactly the same age as some of these new GMs. I do disagree with the hiring of GMs without experience of baseball. I believe that knowledge and experience from the game of baseball is still priceless and will continue to be the top line in all resumes.
"Senior men's tennis circuit to start in 2006" vol8(27)
BY Heather Hileman
Jim Courier's event company will launch a four stop senior men's tennis U.S. swing in 2006. It apparently folded five years ago. This time Courier says it will be different because the players are committed to play and that hard-core fans want to see the sport return.
The events will be in Florida, Boston, Memphis, and Houston. The Tennis Channel will televise the event. IMG still holds the right to run ATP-sanctioned seniors tennis in the U.S. This eight-player tournament format will include a heavy dose of pro-ams and corporate appearances.
I'm not sure if people will be intriguied to watch. They had best have good advertisements and a great campaign, so that it does not fold again like it did five years ago.
"It's early, but NHL scoring at gate, on TV" Vol 8 iss 27. By Abbie Hoover
After a yearlong lockout, the NHL is back at it, better then before. It seems that after a year of no hockey, fans are eager to have it back. Leaguewide, attendance is up 3.8 percent, with clubs averaging 91.2 percent capacity. TV ratings for FoxSports, which has the rights to 18 of the 24 teams in the US, are up 29 percent.
I think this is good. It shows that there are dedicated fans out there. People who love the game and even after a year without it are going back to watching it. In a sense the year lockout may have done the league some good. There are probably more people going to games because they missed it all last year. A year without hockey probably made people more ready to spend money and buy tickets because they missed watching their sport.
I'll admit that even being a small fan, I've been watching more hockey this year since there was none of it last year. Overall, I'm glad hockey is back, and I'm glad it is thriving as well as it is.
"Senior Men's Tennis Circuit to start in 2006"
vol. 8 iss. 27 pg. 5
Founded in 1993 by IMG and Jimmy Connor, the U.S. senior men's tennis tour lasted less than a decade, bouncing between sponsors and cities, before finally folding after its New York championship was canceled afterh the 2001 terrorist attack in that city. Now after five long years of trying to get back into the U.S, tennis hall-of-famer, Jim Courier's event company will launch a four-stop senior men's tennis swing in 2006. The four event will be held in Naples, Fla., Boston, Memphis and Houston where avid tennis fans can watch some of their favorites such as Michael Chang, Todd Martin and John McEnroe who have all commintted to play.
All of the kinks are still being worked out when it comes to sponors and televised events, but being an avid tennis lover I am more then happy to see this kind of event to take place with some of the greatest names in tennis of all time.
“Blackhawks give their fans new option with podcasting”
Vol. 8 Issue 27 Page 13
By Kelly Brinker-Schaeffer
The NHL team the Blackhawks has launched a new podcast entitled HawkCast. This is the first podcast created by an NHL team. HawkCast is a 10-15 minute show that is available 2 to 3 times per week. The show is hosted and produced by Blackhawk’s web producer Adam Kempenaer using only a computer with audio recording capability and internet access. Lots of enthusiasm for this new technology has been clearly demonstrated. The first two days after the new pod cast enabled the version of Apple’s i Tunes went on the market were greeted with 1 million downloads of podcast syndicated shows. Fans can use MP3 players and i pods that are equipped with video capabilities. The challenge for the teams using the podcast will be how they can make money from them. One way to make money might be to sell ads or to make podcasting a subscription model. The technologies in sports keeps growing and expanding, what will they think of next?
Sports radio stations take their brand extension into publications, even restaurants
Volume 8 Issue 27, page 11 - Brent Baird
Sports talk radio stations are taking a new leap into marketing and expanded ventures. Using their brand name they are expanding into the world of print media and the restaurant industry.
The attempt at the print media is lead by WQXI-AM in Atlanta the station publishes Score Atlanta a four color tabloid filled with commentary and columns written by it’s on air personalities. The tabloid that is free includes advertisers and is distributed to 700 outlets in the stations broadcast area.
WQXI hopes to follow a Kansas City station WHB-AM and open a restaurant soon that will feature plasma TVs, high speed internet focused on the sports that the station is branded on. The interesting venture has been an outstanding success so far especially since it does not need to pay for advertising. The on air personalities simply talk about the 810 zone and the rest takes care of itself.
While other forms of media have grown and changed with the times it has seemed that radio has stayed in its own market and not ventured to change. Now with the cable media expanding and the ever increasing growth of satellite radio the general free air radio must move alone with the times or go extinct. I think this is a great thing for sports fans in the areas in which these stations have the market to be successful. It is a play right out of the ESPN playbook when they created the ESPNZone. That was successful and the radio stations will find the same success.
Getting the Benz: Cavaliers sign Mercedes for club area
Volume 8 Issue 27
Brent Baird
Interest in the Cavaliers has been high since signing LeBron James. But things have really sky rocketed since new owner Dan Gilbert has taken over. Revenue is at an all time high due in no small part to the changes Gilbert has made and the new sponsorships he has help forge. Mercedes will take over the sponsorship of the club seating area in which mostly business entertainment takes place, Pepsi has taken the pouring right from Coke, with a financial deal and most likely promotional activities coming later, new arena naming right deal was signed with Quicken Loans ( a sister company that already has a relationship with Gilbert), and a presenting sponsorship with Cub Cadet.
All this activity has allowed some arena renovations to take lace and the purchase of a new scoreboard. Gilbert is making changes on the basketball side of the organization replacing head coach Paul Silas with Mike Brown, and general manager Jim Paxson with former player Danny Ferry.
There is no doubt that Gilbert is involved owner, really and willing to get out there and make things happen and to shake up the organization to put thing in the way he see things progressing. It appears that he will have the team off to a good start this upcoming season.
Jacksonville sweetens the pot, keeps the Jags by agreeing to stadium lease changes Vol 8 Issue 27 by Sarah Galiotto
Los Angeles wants a sports team. Ever since the Raiders and Rams left, L.A. has been hoping to replace these teams. Well, it won’t be the Jacksonville Jaguars, though it was a thought in the air. Even though the Jags are the second smallest market in the NFL, the Jags have agreed to let the city have six dates where there will be no Jaguar sponsorship signs posted. The stadium also hosts college games and the city wanted the signs blank for these handfuls of games. This deal also included a rent-reduction.
The rumors of the move to L.A. have involved Dean Bonham, the city’s outside consultant. Before his resignation, a week before the settlement, Bonham denied wanting to sell the team. He blames the many amendments of the lease that have occurred during the 10 years of the Jags have been in Jacksonville. But to let all know, the Jags are staying in Jacksonville.
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