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Thursday, November 10, 2005

"Big Business Behind the PBR" Vol 8 (26) page 1 by Sarah Zdesar

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 v8issue26 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" v8,issue 26, p10 by Wes Layton

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.

Media buyers report ho-hum NBA ad market' issue 26, v8 p 13 by David Shemit

This article discusses the NBA's fluctuating fortunes particularly in relation to attracting new advertisers who seem to have curved their interest in the NBA; for the time being at least anyway.
With few new advertisers coming in, the NBA is expecting to pick up less of a bump this year compared to other sports such as NASCAR and the NFL who have seen a steady growth in their marketplace.
The lack of new advertisers who want to be associated with the NBA has, according to the article, been attributed to the lack of excitement behind the start of the NBA season compared to previous ones and also due to the Lakers', (one of the most recognizable and marketable teams in the world) poor season last season.
However, I think this lack of support for the NBA has been an indirect result of recent events that have gone on. With 'that fight' and with the new 'dress code' just implemented I think that organizations who want to be associated with the NBA have just cooled their interest to see where the NBA, as an organization, goes from here. It is very important that the NBA now re-markets itself in a certain way. For this they need a strong manager and leader and in Mr. Stern I believe they have one. Nevertheless, it will be tough for the NBA to re-market itself and quickly attract new advertisers, but with time I think that they will come flooding back.
Anyway, it is not as if the NBA is struggling to find advertisers, with T-mobile and Toyota just two of many who have signed or resigned with the media networks producing the NBA packages this year, it is not as if the NBA marketplace is in crisis, more in a temporary and minor dip!

Spalding rolls out no-leak "Neverflat' ball-v8(26)p8 by Sarah Galiotto

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 v8(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" v8(26) p8 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" v8, 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" v8(26), p.24 by 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 by 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.

Thursday, November 03, 2005

“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.

“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 i25, p11, by 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] by Katie Bell

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’ v8, issue 25, by 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 v8, issue 16, by Dave Andrews

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 by Sarah Zdesar

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) by Alicia Detweiler

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.

'Worldwide Leader becomes more of a reader', (Issue 25, Vol. 8, p16): by David Shemilt.

The article identifies ESPN's new avenue of media production, that of the book publishing variety and its surprising success in this form of the media.
Books such as, 'Now I Can Die in Peace', from ESPN's obsessive Boston Red Sox columnist Bill Simmons, have recently been amongst the New York Times' most popular sellers.
However, this just shows how strong the media is as a marketing tool, whether it is to market a top-selling book or just a piece of paper. ESPN's obvious ability to market itself to the public at large allows such marketing strategies as book launches to speak for themselves without the company even spending a penny.
ESPN Radio, the ESPN magazine, ESPN.com and the ESPN television network reaches a huge range of people, allowing any marketing strategy to specifically, quickly and efficiently identify and target its audience. As a result, ESPN has recently seen its average number of releases double in sales since they started this form of media in 1997.
Hence, when marketing any product, the successful sports marketing manager needs to manipulate and utilize the media and all of the benefits that it brings with