Everyone know that the Super Bowl is big business. But what does that really mean? Sports business expert Rick Horrow has some insight on actual figures and explains the value of winning a Super Bowl for the team and for individual players.
Phoenix, AZ – Here in Arizona and elsewhere, NFL fans are nearing the end of Super Bowl week, and apparently, we’re all really
Not just from all the weather-induced flight
delays, driving around in traffic, attending SRO press conferences, and endless
parties. It goes a lot deeper than that.
The game’s being played by the defending Super
Bowl champions and a team that’s been there six times in 14 years, in a region
that last hosted a scant seven years ago.
Between the NFL season’s domestic violence
scandals, concussion worries, and the PSI of the game balls used two weeks ago
in Foxboro, we’ve grown really weary of controversy.
And with the sky-high cost of entry and the
attractiveness of one’s couch and HDTV at home, it’s much simpler, cheaper, and
personal energy-conserving to just watch the Super Bowl at home.
Have all these factors resulted in a serious,
nationwide epidemic of Super Bowl fatigue?
Let’s examine the symptoms.
Coming off last year’s win, Seahawks backers
early on might have shown signs of fan fatigue. According to travel website Orbitz,
the Patriots have 13% more fans flying to the Glendale area than the Seahawks
do. This came despite the fact that airfare from Seattle to Phoenix on average
is around $682, a relatively small sum compared to the $844 it costs to fly
from Boston to Phoenix.
However, far more Patriots fans traveled to
Indianapolis the last time the team reached the Super Bowl, in 2012.
Nonetheless, Super Bowl XLIX Host Committee
spokespeople affirm that hotels in the Phoenix region are more than 90% booked,
at an average nightly rates of $277 with a three night minimum. That rate is
89% higher than the same February weekend rate in this popular snowbird
destination last year, and rooms are 68% more full.
Host market Phoenix is
using the Super Bowl to showcase revitalization of its downtown. More than $4
billion has been invested in the market since the Super Bowl was last held in
the Glendale in 2008. The development includes 50,000 square feet of new
retail, a completed Phoenix convention center, 20 miles of light rail, 1500 new
hotel rooms, and more than 30 new restaurants.
A wrinkle that other
Super Bowl communities don’t have is that the Waste Management Open golf
tournament is being held in Scottsdale at the same time.
Tiger Woods is playing
in the 2015 event for the first time in 13 years, and with the Super Bowl in
town. It could be the best attended Waste Management Open in history. By
the way, last year’s attendance of 563,000 surpassed the 2008 record when the
Super Bowl was last held in Arizona.
The Super Bowl is scheduled for Sunday, the same day as the
tournament’s final round. Organizers scheduled tee times so that the tournament
would end about 45 minutes before the Super Bowl begins. (Good luck getting
from North Scottsdale to Glendale in that time—and you’d better hope there’s no
While most people in town for Super Bowl week
won’t actually attend the game come Sunday, those who will initially thought
they’d see lower ticket prices as a result of blasé fans. Not so – while prices
slumped right after the Conference Championship games, fan fatigue hasn’t
disrupted the normal Super Bowl ticket price hike in the week leading up to the
game. 2015 Super Bowl ticket prices have now skyrocketed, with the average
secondary market price on Thursday topping $8,000.
The big question for broadcaster NBC is whether
this year’s Super Bowl will top the record 111.5 million viewers who watched
the big game last year. With the Seahawks seeking back-to-back titles, Katy
Perry ruling halftime, and the game featuring such marketable stars as Russell
Wilson, Tom Brady, and Richard Sherman, record ratings are admittedly a strong
But recent history shows that year-to-year Super
Bowl ratings don’t follow a linear upward trajectory. With 111.3 million
viewers, the 2012 Super Bowl broke all previous viewership records. However,
Super Bowl XLVII in 2013 witnessed a sharp decline to 108.4, as the Ravens beat
Another factor that could seriously erode TV
numbers: In addition to its broadcast, NBC is live-streaming the game without
user authentication, a trend continuing from previous years. When NBC streamed
the game in 2012, it drew 2.1 million unique users – far fewer than many grainy
amateur cat videos on YouTube today.
Speaking of pets, you have to wonder when Super
Bowl ad watchers are going to get sick of the endless stream of too-cute horses
and puppies. No time soon, apparently. Anheuser-Busch reports that hordes of
fans clamor for its Clydesdales every year. GoDaddy was forced to pull its new
puppy ad – but not because early viewers online didn’t want to see the puppy,
they just didn’t like the way he was treated at the end of the spot.
Advertisers are paying
upwards of $4.5 million per 30-second spot, up nearly $400,000 from last year’s
rates. Anheuser-Busch leads the way with advertisements totaling at least 4 ½
minutes, and $35 million. Also expect to see a lot of traffic from carmakers,
as it least six auto manufacturers have bought ad time.
Meanwhile, NBC created a
Tumblr page to serve as the online home of Super Bowl commercials. Needless to
say, there are no shortage of places that you can go online for Super Bowl
At the end of the day, all this activity leads
to is dollar signs for the Valley of the Sun – the greater Phoenix area expects more
than $500 million in economic impact over the week.
As we know, there is
no such thing as revenue fatigue.
Rick Horrow (@RickHorrow) and Karla Swatek (@kswak) on Twitter.
One of the marquee storylines of Super Bowl 49 is the quarterback matchup, which features two of the most marketable players in the NFL today. The Patriots are led by Tom Brady, who endorses products for Dodge, Uggs, and Under Armour. He’s also recently appeared in ads for daily fantasy sports website DailyMVP. Brady brings in an estimated $7 million annually from his off-field endorsement deals.
On the other sideline, the Seahawks are led by third-year quarterback Russell Wilson. Despite his relative youth, Wilson has one of the NFL’s most robust marketing portfolios. He’s appeared in ads for companies including Pepsi, Microsoft, Bose, and Alaska Airlines. While Wilson’s exact endorsement income isn’t known, it’s almost definitely more than the $660,000 he made on the field this season. Expect his next contract with the Seahawks to be one of the most lucrative in NFL history.
Rick Horrow: DeflateGate Pumps Up Super Bowl Mania
An “incredible rush to judgment” against the New England Patriots for allegedly using deflated game balls reflects the hype surrounding Super Bowl XLIX more than any moral outrage over suspected cheating, says sports business entrepreneur, professor and commentator Rick Horrow.
The big game, scheduled for Feb. 1 between the Seattle Seahawks and the aforementioned Patriots, is “probably now going to be be bigger than ever as a consequence,” the CEO of Horrow Sports Ventures told “MidPoint” host Ed Berliner on Newsmax TV Thursday.
SEE VIDEO HERE: http://www.newsmax.com/CMSPages/NewsMax/OoyalaPlayer.aspx?embedcode=JpOHl3cjq_lYZRNOSUcfc8jC4BQEk5ka§ion=Newsmax-Tv&author=Sean+Piccoli#ooid=JpOHl3cjq_lYZRNOSUcfc8jC4BQEk5ka
That’s unless the NFL rules that New England did cheat and must replay the AFC Championship, although that punishment — one of many available to NFL Commissioner Roger Goodell — is vanishingly unlikely, said Horrow. The NFL is investigating whether the Patriots used deliberately deflated, grip-improving footballs on Sunday in their blowout win over the Indianapolis Colts.
Patriots coach Bill Belichick — who once drew a record NFL fine for secretly videotaping a visiting team’s workouts — told reporters Thursday that he was “shocked” by the deflation allegation and knew nothing of doctored game balls.
“It may be probable he may know nothing,” said Horrow. “His people may have done nothing. His people may have done a lot, and left him out of it. He may have said, ‘Do what you need to do,’ and they interpreted the wrong way.
“There are 50 scenarios that will make lawyers, case study drafters and marketing people crazy,” said Horrow, adding, “In the sage words of [Green Bay Packers quarterback] Aaron Rodgers, ‘Maybe we ought to relax a little bit.'”
“I do know the Patriots would’ve beaten the Colts by 30 or 40 points, no matter what the conditions were that day,” said Horrow. “They were that much better.”
These owners can afford to pay for a few Super Bowl ads.
When the Seattle Seahawks and New England Patriots square of Sunday in Super Bowl XLIX, it will not only pit two football’s best teams up against each other, but also two of the NFL’s richest franchises.
CSN Chicago Sports Business Insider Rick Horrow took a look at the remarkable growth of both franchises. Patriots owner Robert Kraft bought the team in 1994 for $172 million; two decades later the franchise is worth $2.6 billion.
Seahawks owner Paul Allen is worth $60 billion, and his football team accounts for $1.3 billion of that.
See what else Harrow had to say about these two teams, as well as how the Bears stack up against the two of them in terms of worth.
Watch the complete Sports News Minute in the video above and follow Rick Horrow on Twitter@RickHorrow.
As we addressed in a post in early December, seen here,
No industry is hotter these days than daily fantasy sports. Websites have raised tens of millions of dollars in venture capital funding, and DraftKings recently was valued at $200 million. FanDuel expects to have more than 1.1 million active users and pay out more than $1 billion in prizes in 2015. With business booming, expect to see more teams sign sponsorship deals with these companies in the near future.
Well, we predicted it….
The new company in the category is Mondogoal. Earlier this month, Chelsea FC became the latest club to announce a pay fantasy platform partnership with the UK and Boston based company that has now built pay fantasy games for a growing number of elite clubs, ranging from FC Barcelona to AS Roma to Manchester City.
Combine this with the well documented rise in interest in soccer in the United States, record numbers for World Cup, lucrative Bundesliga, La Liga,and Barclays Premier League TV deals with broadcasters like FOX and NBC, and the continued steady growth of Major League Soccer; add in data analytics and gaming engagement to the mix– and the international marketplace is more than primed for a daily fantasy soccer takeover.
Mark Bell, Head of Licensing at Chelsea FC, said on the Mondogoal-Chelsea relationship,
“As a club we always looks to engage our global fan base in new ways, we see fantasy as a next great opportunity, and are proud to partner with Mondogoal on this new venture. We have seen studies that show US daily fantasy sites get 70% of their revenue from NFL games, but around the world 70% of global sports wagering is directed at soccer, so this partnership should be well received by our followers.”
Yes Mondogoal is fast growing, yes it runs daily contests – but the major order-winner over major players like DraftKings and FanDuel is the license to operate globally. This means that Mondogoal is the only daily fantasy sports site available for cash play in multiple major markets around the world.
Down to the money – Mondogoal has an impressive roster of investors with backgrounds at Google, eBay, Morgan Stanley, Bingham Dana & Gould, and JBoss. Smart money says for teams, leagues, brands, and ancillary businesses to buy into this new-age marketing platform. Daily fantasy is fully entrenched in the international sports landscape and that’s here to stay.
CSN Chicago Sports Business Insider Rick Horrow discussed why people go to the Super Bowl, namely, the players. The players’ notoriety leads fans to spend extravagant amounts on tickets. They players themselves have social power, and a lot of that comes from the endorsements and sponsorships that keep their names in the news.
Russell Wilson checks in at number two on Horrow’s Power 100 list. Bears don’t pop up until number 30, Matt Forte, and Brandon Marshall at 44.
Chicago isn’t caught up to players on the Super Bowl teams in the Power 100, yet, and Horrow has an idea why.
“The proof is, you put a winning team around somebody, your marketability gets much better,” Horrow said.
Watch the complete Sports News Minute in the video above and follow Rick Horrow on Twitter@RickHorrow.
Bust: Increased carriage of SportsNet L.A., the regional sports network with rights to Dodgers games, isn’t likely to happen before the start of the 2015 MLB season. Around 70% of the Los Angeles market still is without access to the channel, as distributors argue over the network’s subscriber fee.
Boom: MLB Commissioner Bud Selig this weekend officially retired after 22 years on the job. During Selig’s tenure, MLB saw its annual revenue grow from $1 billion to about $9 billion. Selig also was responsible for introducing interleague play and instituting a tougher PED program.
Hope: MLB next season wants pitchers and hitters ready to play right out of commercial breaks in an effort to speed up the pace of play. The union’s response to the proposal isn’t known, but if implemented, games could be shortened by 10-15 minutes.
What it means: While Selig accomplished a tremendous amount as Commissioner, he leaves several pieces of unfinished business for his successor, Rob Manfred. In addition to speeding up games, Manfred needs to combat baseball’s declining popularity among younger generations, new stadium efforts in Oakland and Tampa, and a media rights dispute between the Nationals and Orioles.