30 Apr

The Sports Professor’s Weekly Sports and Entertainment Dollar: NFL Draft 2015 On the Ground in Chi-Town

The Sports Professor’s Weekly Sports and Entertainment Dollar
April 30, 2015 : NFL Draft 2015: On the Ground in Chi-Town

image

By Rick Horrow and Karla Swatek

The forecast in Chicago today is clear but chilly – a marked contrast to the hot prospects for the hundreds of young men poised to be selected in the early rounds of the 2015 NFL Draft.

Along with the now-ubiquitous instantly personalized jersey and cap from their new NFL squad, and bear hug with NFL Commissioner Roger Goodell, these newly-minted rookies stand to pocket tens of millions in players’ salaries, double that for high-profile players replete with charisma, who will also draw the attention of corporate marketers looking to sponsor them.

The Draft, in addition to being big business for the players, is now a huge spoke in the wheel of the NFL calendar. The event has become appointment viewing for football fans, hijacking attention at a time when baseball and the NHL and NBA playoffs should rightfully be commanding the sports stage. This means it’s also big business for the league’s TV partners, and now that it has ventured outside of New York City for the first time in 51 years, an economic boon for the city of Chicago, which beat out Los Angeles to land the event.

While the ’15 Draft is sharing the sports spotlight this week with some prizefight in Las Vegas that a few people seem to be talking about, the city of Chicago is pulling out all the stops to ensure that for the next 48 hours at least, before Mayweather and Pacquiao step into the ring at the MGM Grand, the NFL will once again be the talk of the town, and the nation.

Thanks to a full slate of events throughout the city, Chicago is anticipating a roughly $100 million economic impact from this week’s NFL Draft-related activities – a far cry from the average $400 million a Super Bowl brings in, but a nice business bump in an otherwise slow pre-summer season. (In contrast, the Blackhawks’ NHL Stanley Cup run pumps about $11 million extra revenue into local businesses.)

Emanating from the historic Auditorium Theatre of Roosevelt University, where most of the Draft is being housed, fan entertainment and community-building experiences will fan out across the Windy City.

This week, the NFL is hosting a full slate of community events spanning Chicago ahead of its Draft. The free events span hospitals to schools, with activities including flag football and family Heads Up Football clinics; the “Sweetness Simulator,” a wind tunnel skydive simulator; and “Greetings from Draft-Town.”

On Wednesday, select prospects visited pediatric patients and their families at Shriners Hospital for Children as part of the NFL Play 60 program. Other prospects visited a local high school, and sat with NFL veterans in public Pioneer Square forums to discuss their careers and related business and health issues, including concussions.

For the first time, the league’s 32 teams will make their picks from tents along Michigan Avenue in “Selection Square.” Fans can also explore the numerous Draft-related activities going on in Grant Park and the adjoining Congress Plaza from April 30-May 2.

The NFL Network and ESPN will each feature two sets during this year’s respective Draft broadcasts, one inside the theater and another in Grant Park.” The Grant Park sets are surrounded by 32 team tables, where officials from each franchise will relay their picks across the red carpet on Michigan Avenue and back into the Auditorium Theatre, where Goodell will announce them to the capacity 3,000 attendees inside. And once they are finished with their on-stage obligations, the newly-minted players can make their way back out to the broadcast sets and waiting fans in Grant Park.

On television, NFL Network is launching a record 50 remote locations outside of Chicago, including 16 war room cameras and 17 reporters stationed in NFL cities around the country. On the digital front, all NFL Network coverage can be viewed digitally on mobile through NFL Mobile from Verizon and on most devices through the Watch NFL Network app. Meanwhile, the platform will offer NFL Draft LIVE Presented by Courtyard, which will serve as the only way to watch each pick of the draft live from Rounds 1-7.

Overall, NFL Network will offer a record-high 53 hours of live coverage of the three-day event, as well as 79 hours of Draft Week coverage starting Monday. Just ahead of the 8:00 pm Eastern start on Thursday, the network offers NFL Draft Gold Carpet (marking the season-long 50th anniversary of the Super Bowl), with Melissa Stark and Kevin Frazier interviewing prospects when they arrive.

Sponsorship elements include Lexus signing on for NFL Draft Kickoff; TD Ameritrade sponsoring the Path to the Draft; Verizon on-board for the NFL Draft, Bridgestone partnering for NFL TA Post Draft; and Pizza Hut supporting Mayock Mock Draft.

ESPN’s coverage includes the first two days run in primetime, with the first hour of Round 1 coverage once again airing with limited commercial interruption. CBSSports.com and the CBS Sports app will be offering a second screen experience for the 2015 NFL Draft, lining up live video analysis and grades for every pick and a real-time Draft tracker throughout all three days of the event, all presented by Volvo. Likewise Fox Sports has announced a new second-screen viewing experience for the event with the Fox Sports Live 2015 NFL Draftcast from The Plaza at Park Grill in downtown Chicago. Coverage is also available to all users through FOX Sports GO, as well as on FOXSports.com and by more than 400 radio stations across the country.

For players and teams, the hard work is just beginning. For football fans, this early kickoff to the NFL season, both in Chicago and elsewhere, is pure pleasure.

Follow Rick Horrow (@RickHorrow) and Karla Swatek (@kswak) on Twitter.

30 Apr

NFL draft: The marketability of Jameis Winston (or lack of it)

NFL draft: The marketability of Jameis Winston (or lack of it)

Courtesy of CNBC, Jessica Golden –  Horrow expert opinion in piece


Jameis Winston can play football—there’s no denying that. The Florida State University quarterback, who led his team to the 2014 National Championship, is expected to be a top two draft pick on Thursday night. The question about Winston is this: Is he “marketable”?

Getty ImagesQuarterback Jameis Winston #5 of the Florida State Seminoles.

Winston’s illustrious college career was often overshadowed by off-the-field problems. During his time as a Seminole, the 21-year-old has a civil suit pending against him that alleges sexual assault—he denies the allegations and has never been charged—he was issued a civil citation for failing to pay for crab legs at a supermarket and he received a suspension after making vulgar comments publicly on campus.

“He’s proven himself on the field, but he’s taken a lot of hits in the court of public opinion,” said Joe Favorito, a sports marketing professor at Columbia University. Despite his off-field issues, sports marketers told CNBC that they believe Winston’s prospect as a product endorser remains strong.

Winston’s agent, Greg Genske, partner at The Legacy agency, told CNBC his client is focused on his brand, but on football first and foremost.

“Jameis is a football player who is excited about his career and getting to work and becoming a championship-caliber quarterback,” he said.

Genske says he hasn’t encountered any companies that are nervous about signing Winston, and he expects the quarterback to immediately enter into business relationships after he signs with an NFL team.

“We want to give them (potential sponsors), the opportunity to get to know him directly and to explain anything in his background and answer any questions,” he said.

Genske said that Winston’s on-field success, personality and leadership qualities make him an attractive partner for a lot of companies.

Just weeks before the draft, Nike, the world’s leading maker of sports apparel and shoes, announced that it signed both Winston and University of Oregon star quarterback Marcus Mariota. The signing came one day after it was announced that Erica Kinsman, the woman who accused Winston of rape, was filing a civil suit.

“It says a lot that Nike stepped up,” said Favorito.

“I’m not surprised at all,” said Bob Williams, CEO of Burns Entertainment and Sports Marketing, “Nike has a long history of signing controversial celebrities to contracts,” he added.

Rick Horrow, CEO of Horrow Sports Ventures, said that being first is often what matters most for shoe and apparel makers: “Most marketing boardrooms are buzzing with the dynamic of pre-empting other brands from the Jameis Winston upside balanced against the risk of uncertainty.”

Horrow said that signing a controversial athlete today isn’t as risky as it was in the past.

“The Tiger Woods phenomenon made the endorsement market full of contracts that are shorter, smaller and easier to terminate,” he said. The pro golfer lost sponsorship deals after revelations about extramarital affairs and domestic turmoil blindsided the companies that worked with Woods.

David Carter, executive director of the Sports Business Institute at the University of Southern California, said when it comes to athlete indiscretions, athleticism tends to overshadow personal behavior.

“Naturally, contracts for both playing and endorsing companies can limit the financial downside to a team or a brand from player misbehavior, but it says something about the brands that are willing to throw too much caution to the wind in the hopes that bad behavior will not be repeated or, worse yet, become chronic,” he said. “So while Winston’s draft position may not be compromised, his compensation will be more performance-based, both on and off the field.”

Bob Dorfman, executive creative director at Baker Street Advertising, agreed. He said he expects brands will want to ensure Winston has what it takes as a player in the NFL and as a fine, outstanding character off the field before making an investment in him. “Likely a result of question marks in his past,” he said.

When it comes to smaller-level deals, Dorfman said he expects regional and local relationships to begin cementing as soon as he signs with a team.

“I could really see car dealerships, fast food franchises, things that appeal to a more local crowd, especially if he signs with Tampa Bay, since he’s probably most liked in Florida,” he said.

Dorfman also said that Winston may make a good endorser for an edgier brand, or a company like Subway that has several athletes already in its portfolio and therefore wouldn’t be risking as much.

When it comes to endorsing a celebrity or athlete, many companies do extensive testing to ensure likability through companies such as Repucom. Such firms score athletes’ public perception when it comes to awareness, appeal, trust and a variety of other factors.

Winston’s overall score from Repucom ranks him 3,597 out of 3,664 celebrities the firm ranks—putting him on par with individuals such as Johnny Manziel, Lance Armstrong and Plaxico Burress.

30 Apr

NBA, TV, HGH, Hawks sale, SportsManias 4 30 15

NBA, TV, HGH Hawks sale, SportsManias 4 30 15

[youtube http://www.youtube.com/watch?v=eL9yJ6_k8kQ?feature=oembed&enablejsapi=1&origin=https://safe.txmblr.com&wmode=opaque&w=540&h=304]

The Sports Professor Rick Horrow provides his expert analysis as he breaks down the NBA HGH implications, TV broadcasts the Hawks sale, and SportsManias in this edition of Beyond the Scoreboard
@RickHorrow
@HorrowSports
www.HorrowSports.com

30 Apr

The Sports Professor’s Weekly Sports and Entertainment Dollar: NFL Draft 2015 On the Ground in Chi-Town

The Sports Professor’s Weekly Sports and Entertainment Dollar
April 30, 2015
By Rick Horrow and Karla Swatek


NFL Draft 2015: On the Ground in Chi-Town

The forecast in Chicago today is clear but chilly – a marked contrast to the hot prospects for the hundreds of young men poised to be selected in the early rounds of the 2015 NFL Draft.

Along with the now-ubiquitous instantly personalized jersey and cap from their new NFL squad, and bear hug with NFL Commissioner Roger Goodell, these newly-minted rookies stand to pocket tens of millions in players’ salaries, double that for high-profile players replete with charisma, who will also draw the attention of corporate marketers looking to sponsor them.

The Draft, in addition to being big business for the players, is now a huge spoke in the wheel of the NFL calendar. The event has become appointment viewing for football fans, hijacking attention at a time when baseball and the NHL and NBA playoffs should rightfully be commanding the sports stage. This means it’s also big business for the league’s TV partners, and now that it has ventured outside of New York City for the first time in 51 years, an economic boon for the city of Chicago, which beat out Los Angeles to land the event.

While the ’15 Draft is sharing the sports spotlight this week with some prizefight in Las Vegas that a few people seem to be talking about, the city of Chicago is pulling out all the stops to ensure that for the next 48 hours at least, before Mayweather and Pacquiao step into the ring at the MGM Grand, the NFL will once again be the talk of the town, and the nation.

Thanks to a full slate of events throughout the city, Chicago is anticipating a roughly $100 million economic impact from this week’s NFL Draft-related activities – a far cry from the average $400 million a Super Bowl brings in, but a nice business bump in an otherwise slow pre-summer season. (In contrast, the Blackhawks’ NHL Stanley Cup run pumps about $11 million extra revenue into local businesses.)

Emanating from the historic Auditorium Theatre of Roosevelt University, where most of the Draft is being housed, fan entertainment and community-building experiences will fan out across the Windy City.

This week, the NFL is hosting a full slate of community events spanning Chicago ahead of its Draft. The free events span hospitals to schools, with activities including flag football and family Heads Up Football clinics; the “Sweetness Simulator,” a wind tunnel skydive simulator; and “Greetings from Draft-Town.”

On Wednesday, select prospects visited pediatric patients and their families at Shriners Hospital for Children as part of the NFL Play 60 program. Other prospects visited a local high school, and sat with NFL veterans in public Pioneer Square forums to discuss their careers and related business and health issues, including concussions.

For the first time, the league’s 32 teams will make their picks from tents along Michigan Avenue in “Selection Square.” Fans can also explore the numerous Draft-related activities going on in Grant Park and the adjoining Congress Plaza from April 30-May 2.

The NFL Network and ESPN will each feature two sets during this year’s respective Draft broadcasts, one inside the theater and another in Grant Park.” The Grant Park sets are surrounded by 32 team tables, where officials from each franchise will relay their picks across the red carpet on Michigan Avenue and back into the Auditorium Theatre, where Goodell will announce them to the capacity 3,000 attendees inside. And once they are finished with their on-stage obligations, the newly-minted players can make their way back out to the broadcast sets and waiting fans in Grant Park.

On television, NFL Network is launching a record 50 remote locations outside of Chicago, including 16 war room cameras and 17 reporters stationed in NFL cities around the country. On the digital front, all NFL Network coverage can be viewed digitally on mobile through NFL Mobile from Verizon and on most devices through the Watch NFL Network app. Meanwhile, the platform will offer NFL Draft LIVE Presented by Courtyard, which will serve as the only way to watch each pick of the draft live from Rounds 1-7.

Overall, NFL Network will offer a record-high 53 hours of live coverage of the three-day event, as well as 79 hours of Draft Week coverage starting Monday. Just ahead of the 8:00 pm Eastern start on Thursday, the network offers NFL Draft Gold Carpet (marking the season-long 50th anniversary of the Super Bowl), with Melissa Stark and Kevin Frazier interviewing prospects when they arrive.

Sponsorship elements include Lexus signing on for NFL Draft Kickoff; TD Ameritrade sponsoring the Path to the Draft; Verizon on-board for the NFL Draft, Bridgestone partnering for NFL TA Post Draft; and Pizza Hut supporting Mayock Mock Draft.

ESPN’s coverage includes the first two days run in primetime, with the first hour of Round 1 coverage once again airing with limited commercial interruption. CBSSports.com and the CBS Sports app will be offering a second screen experience for the 2015 NFL Draft, lining up live video analysis and grades for every pick and a real-time Draft tracker throughout all three days of the event, all presented by Volvo. Likewise Fox Sports has announced a new second-screen viewing experience for the event with the Fox Sports Live 2015 NFL Draftcast from The Plaza at Park Grill in downtown Chicago. Coverage is also available to all users through FOX Sports GO, as well as on FOXSports.com and by more than 400 radio stations across the country.

 For players and teams, the hard work is just beginning. For football fans, this early kickoff to the NFL season, both in Chicago and elsewhere, is pure pleasure.

Follow Rick Horrow (@RickHorrow) and Karla Swatek (@kswak) on Twitter.

 

30 Apr

Sports Business Minute- SportsManias 4-30-15 – Horrow Sports Ventures

Sports Business Minute- SportsManias 4-30-15 – Horrow Sports Ventures

30 Apr

Mayweather vs Pacquiao: Where the money comes from

image

Mayweather vs Pacquiao: Where the money comes from

“If you call it the fight of the century, you might be underestimating it” in terms of revenue, says Horrow.

Courtesy of CNBC, Jacob Pramuk – Horrow expert opinion in article

Rivers of money are flowing into boxing’s biggest bout in years, and it’s not just the fighters who stand to gain a windfall.

Saturday’s welterweight fight pits Floyd Mayweather Jr. against Manny Pacquiao in an event the boxing world has demanded for years. While a likely astronomical pay-per-view haul and lofty ticket prices have drawn attention, the bout will almost certainly generate huge cash for venues, promoters and broadcasters on a number of other fronts.

“If you call it the fight of the century, you might be underestimating it” in terms of revenue, said Rick Horrow, a sports business consultant and visiting lecturer at Harvard Business School.

Pay-per-view purchases will account for the biggest piece of the estimated sales. With a suggested price of about $90, and the potential for 3 million or more buys, pay-per-view could generate $300 million, according to a CNBC analysis.

Tickets for the bout at the MGM Grand in Las Vegas may rack up an estimated $70 million, according to The New York Times. International broadcasts could take in $35 million, while licensing fees for closed-circuit broadcasts could fetch another $13 million.

Sponsorship revenue may reach $12 million, while $1 million in merchandise could be sold.

Those sums may just be the start. Within the geographic confines of Las Vegas, the fight can be seen only at MGM’s locations in Vegas, allowing the company to charge for entry and generate more foot traffic, said David Carter, a sports business professor at the University of Southern California.

And those estimates do not account for the enormous cash flow into Las Vegas itself, said Horrow. He could not put an estimate on figures, but noted that the bout will almost certainly lead to significant hotel, restaurant and, of course, gambling revenue.

Who are the big winners?

On the surface, at least, the fighters will see a massive payday. Estimates have placed Mayweather and Pacquiao’s combined pay at $200 million, if not more.

But even those figures don’t factor in what the boxers themselves will pay out, Carter said. After taxes and payments to promotion companies, the fighters could see half of that disappear.

Mayweather Promotions and Top Rank—the promoters representing Mayweather and Pacquiao, respectively, will also see a boon. Carter noted that promoters can take up to 30 percent of a fighter’s cut, though the number may drop significantly for established fighters.

Neither Mayweather Promotions nor Top Rank responded to CNBC’s requests for comment.

Media and cable company profits will likely soar, mostly because costs to put on the bout will not increase significantly enough from the average match to cancel out the huge revenue boon, Carter said, though he was unable to quantify the comparison.

Time Warner-owned HBO and CBS-owned Showtime, which will co-produce the broadcast, will split a 7.5 percent cut of the pay-per-view, or $22.5 million, based on the $300 million projection.

Other cable and satellite distributors will split a 30 to 40 percent cut of the pay-per-view haul, according to the Times. That sum could reach $100 million, as well.