29 Jun

Sports Business Minutes: Jordan Spieth The Heir to Tiger – 6-28-15


Sports Business Minutes: Jordan Spieth The Heir to Tiger – 6-28-15

Not surprisingly, new opportunities are rolling in.  Spieth’s agent, Jay Danzi of Lagardere Unlimited, said that Spieth has had “more than 20 new offers but will be very selective in adding partners, and then only if they fit an overall brand strategy.”  Time will tell, but at just 21 years old, Spieth is on the fast track to take over Tiger Woods’ crown as the king of pro golf.  Kudos to Lagardere Unlimited for generating significant dollars without overexposure.

Jordan Spieth: The Heir to Tiger? (Monday)

It’s Jordan Spieth’s world and we’re just living in it.  Spieth claimed his second Major win of the PGA Tour season last week when he took home the U.S. Open.  Spieth also had a dominant win at The Masters earlier in the year.  With his latest victory, Spieth has all but claimed the title of most marketable player on the Tour.  Counting his endorsement income from sponsors such as Under Armour, AT&T, Titleist, and Rolex, Spieth can expect to take home at least $25 million per year.  

29 Jun

Bust, Boom, Hope week of 6 28 15

Bust, Boom, Hope: Olympics

Bust: Despite the USOC’s growing satisfaction of Boston’s 2024 Olympics bid, public support in the city and state of Massachusetts remains below 50%.  The USOC has until September 15 to decide whether to submit Boston to the IOC, with a final vote from the IOC coming in 2017.

Boom: Paris and Rome each announced their intention to bid on hosting the 2024 Summer Games.  Paris last hosted the Olympics in 1924, while Rome held the Games in 1960.  Both bids are expected to have a budget of around $7 billion.

Hope: The USOC is taking a more aggressive role in promoting and protecting low-revenue college sports, according to Ben Fischer of SportsBusiness Journal.  Popular Olympic sports such as swimming, wrestling, and gymnastics have faced cutbacks in spending over the last three decades.

What it means: The IOC wants to award the Games to a city with strong local support, something Boston clearly lacks.  While unlikely, it’s possible the USOC could shift its support to a city like Los Angeles, which might have an easier chance of being selected by the IOC.

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Bust, Boom, Hope: NFL

Bust: San Diego officials are accusing the Chargers of changing demands during stadium negotiations.  Chargers officials said they haven’t wavered on wanting a new stadium, but city representatives think the team’s inconsistencies indicate that they would rather move to Los Angeles.

Boom: As originally reported by The Tennessean, but in an article found and accessed from the Sportsmanias app, the site that provides fans with real-time information on their favorite teams, the Tennessee Titans reached a 20-year naming-rights deal with Nissan North America valued at $5-6.5 million annually.  LP previously had a 10-year naming-rights agreement with the team, worth $3 million per year.

Hope: The NFL began issuing RFPs to multiple stadiums in Southern California to temporarily house a team for the 2016 season in the event the league returns to the market.  Among the stadiums that the NFL reached out to are the Coliseum and the Rose Bowl.

What it means: The Titans plan to rename their home venue Nissan Stadium, and new signage for the stadium will be in place in time for the start of the NFL season.  The Titans began talking to Nissan two years ago about a naming rights deal and talks became more focused in the past few months.

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Bust, Boom, Hope: NHL

Bust: The Glendale City Council decided it would not rescind its vote to terminate the Arizona Coyotes’ 15-year, $225 million agreement to operate Gila River Arena.  Team officials will explore relocation if they lose a legal battle with the city.

Boom: The NHL will open a formal expansion process this summer, and Commissioner Gary Bettman said that the minimum cost for a team would be $500 million.  The NHL is likely to grow by two teams starting with the 2017-18 season, with Las Vegas, Seattle, and Kansas City among the possible expansion markets.

Hope: The NHL’s Board of Governors voted to change overtime to a 3-on-3 format for a five-minute period in regular-season games tied at the end of regulation.  Previously, the NHL played 4-on-4 overtime.  Regular-season games tied at the end of overtime will continue to be decided by a shootout.

What it means: As of now, the NHL does not have a contingency plan should the Coyotes leave Glendale before next season.  With Vegas likely to land an expansion franchise, Seattle is keeping a close eye on the Coyotes arena saga.  Should the Coyotes relocate, Key Arena could serve as a temporary home for the team while a new venue is built.

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Bust, Boom, Hope: NBA

Bust: As originally reported by Philadelphia Inquirer, but in an article found and accessed from the Sportsmanias app, the site that provides fans with real-time information on their favorite teams, the NBPA is investigating the Philadelphia 76ers for violating the spirit of the CBA by salary cap tampering.  The Sixers were way below the cap floor until they made late-season acquisitions, which added the players’ full-season salaries to the cap while the team paid only a fraction of the contracts.

Boom: ABC over the course of the six-game NBA Finals generated an estimated $224 million in ad sales revenue.  All told, 190 brands bought ad time during ABC’s broadcasts, with movie studios promoting upcoming summer releases among the biggest spenders.

Hope: The NBA is moving forward with its plan to seed conference playoff teams 1-8 regardless of division winners.  Under the previous format, a division winner was guaranteed a top four seed in each conference.

What it means: Had the Finals gone to a seventh game, ABC likely would have added a whopping $45 million to its ad revenue.  The six-game Warriors-Cavaliers series saw an overall 28% viewership increase compared to the five-game Spurs-Heat series last year.

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Bust, Boom, Hope: MLB

Bust: A notebook obtained by ESPN’s Outside the Lines found that Pete Rose bet on baseball while he was still a player.  While there was no indication that Rose ever gambled against his team, the documents debunk his longstanding claim that he only bet on baseball as a manager.

Boom: MLBAM is in talks with investment bankers to spin off its non-baseball division, which has been valued at around $3 billion.  MLBAM technology is used to stream a variety of non-baseball content, including HBO and Sony programming, WWE events, and NHL games.

Hope: MLB Commissioner Rob Manfred announced that San Francisco would be home to baseball’s second replay center as early as next season.  A replay center in San Fran could help lighten the load on the East Coast center, whose review crew routinely works past midnight monitoring West Coast games.

What it means: By doing the non-baseball IPO, it would allow MLBAM to raise money to bid on live streaming contracts, which some big-market teams believe should be sold to regional sports networks.  There is no known timetable for when the company expects to go public.

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29 Jun

SPORTS NEWS / DEALMAKING / BUSINESS / MARKETING / ENDORSEMENT / LEGAL ISSUES FOR THE WEEK OF JUNE 28

SPORTS NEWS / DEALMAKING / BUSINESS / MARKETING / ENDORSEMENT / LEGAL ISSUES FOR THE WEEK OF JUNE 28

  • With his victory at the U.S. Open, golfer Jordan Spieth has all but claimed the title of most marketable player on the PGA Tour.  Counting his endorsement income from sponsors such as Under Armour, AT&T, Titleist, and Rolex, Spieth can expect to take home at least $25 million per year.  Spieth’s agent, Jay Danzi of Lagardere Unlimited, said that Spieth has had “more than 20 new offers but will be very selective in adding partners, and then only if they fit an overall brand strategy.”
  • SportsManias is hosting its inaugural City Summit event in Orlando this Tuesday at the Amway Center.  The event will include two panels about Orlando’s pro and amateur sports landscape, featuring some of the region’s top sports executives.  For the true diehard sports fan, SportsManias is the easiest, fastest, most complete source of team news on the web and mobile.
  • The NHL will open a formal expansion process this summer, and Commissioner Gary Bettman said that the minimum cost for a team would be $500 million.  The NHL is likely to grow by two teams starting with the 2017-18 season, with Las Vegas, Seattle, and Kansas City among the possible expansion markets. 
  • As originally reported by The Tennessean, but in an article found and accessed from the Sportsmanias app, the site that provides fans with real-time information on their favorite teams, the Tennessee Titans reached a 20-year naming-rights deal with Nissan North America valued at $5-6.5 million annually.  LP previously had a 10-year naming-rights agreement with the team, worth $3 million per year.  The Titans plan to rename their home venue Nissan Stadium.
  • ABC over the course of the six-game NBA Finals generated an estimated $224 million in ad sales revenue.  All told, 190 brands bought ad time during ABC’s broadcasts, with movie studios promoting upcoming summer releases among the biggest spenders.
  • A notebook obtained by ESPN’s Outside the Lines found that Pete Rose bet on baseball while he was still a player.  While there was no indication that Rose ever gambled against his team, the documents debunk his longstanding claim that he only bet on baseball as a manager.
  • San Diego officials are accusing the Chargers of changing demands during stadium negotiations.  Chargers officials said they haven’t wavered on wanting a new stadium, but city representatives think the team’s inconsistencies indicate that they would rather move to Los Angeles.
  • MLBAM is in talks with investment bankers to spin off its non-baseball division, which has been valued at around $3 billion.  MLBAM technology is used to stream a variety of non-baseball content, including HBO and Sony programming, WWE events, and NHL games.
  • The NHL’s Board of Governors voted to change overtime to a 3-on-3 format for a five-minute period in regular-season games tied at the end of regulation.  Previously, the NHL played 4-on-4 overtime.  Regular-season games tied at the end of overtime will continue to be decided by a shootout.
  • Paris and Rome each announced their intention to bid on hosting the 2024 Summer Games.  Paris last hosted the Olympics in 1924, while Rome held the Games in 1960.  Both bids are expected to have a budget of around $7 billion.
  • The NBA is moving forward with its plan to seed conference playoff teams 1-8 regardless of division winners.  Under the previous format, a division winner was guaranteed a top four seed in each conference.
  • The Glendale City Council decided it would not rescind its vote to terminate the Arizona Coyotes’ 15-year, $225 million agreement to operate Gila River Arena.  Team officials will explore relocation if they lose a legal battle with the city.
  • As originally reported by Philadelphia Inquirer, but in an article found and accessed from the Sportsmanias app, the site that provides fans with real-time information on their favorite teams, the NBPA is investigating the Philadelphia 76ers for violating the spirit of the CBA by salary cap tampering.  The Sixers were way below the cap floor until they made late-season acquisitions, which added the players’ full-season salaries to the cap while the team paid only a fraction of the contracts.
  • The USOC is taking a more aggressive role in promoting and protecting low-revenue college sports, according to Ben Fischer of SportsBusiness Journal.  Popular Olympic sports such as swimming, wrestling, and gymnastics have faced cutbacks in spending over the last three decades.
  • Globecast provided distribution of 10 channels to rights holding broadcasters in Southeast Asia for the 28th Southeast Asia Games in Singapore.  The SEA Games was conceived as a means to help forge strong regional cooperation, understanding, and unity within the Southeast Asian community.
28 Jun

“15 TO WATCH”:  HORROW’S TOP SPORTS NEWS/MARKETING/DEAL-MAKING/BUSINESS/CORPORATE/ENDORSEMENT ISSUES FOR THE WEEK OF JUNE 28

“15 TO WATCH”:  HORROW’S TOP SPORTS NEWS/MARKETING/DEAL-MAKING/BUSINESS/CORPORATE/ENDORSEMENT ISSUES FOR THE WEEK OF JUNE 28

  1. Gearing up for the British Open.  With his victory at the U.S. Open, golfer Jordan Spieth has all but claimed the title of most marketable player on the PGA Tour.  Counting his endorsement income from sponsors such as Under Armour, AT&T, Titleist, and Rolex, Spieth can expect to take home at least $25 million per year.  Spieth’s agent, Jay Danzi of Lagardere Unlimited, said that Spieth has had “more than 20 new offers but will be very selective in adding partners, and then only if they fit an overall brand strategy.”  Unprecedented excitement at St. Andrews two weeks from now – last British Open for Tom Watson; Jordan Spieth opportunity to win the third leg of the Grand Slam; Tiger Woods playing a course he “masters.”  Economic impact unparalleled every five years as the rotation favors Scottish tourism!

  2. Wimbledon begins this week; unofficially shifting the “center of the mega-event summer sports business to Europe.  While Wimbledon and the British Open carry the day, other major events abound.  Globecast provided distribution of 10 channels to rights holding broadcasters in Southeast Asia for the 28th Southeast Asia Games in Singapore.  The SEA Games were conceived as a means to help forge strong regional cooperation, understanding, and unity within the Southeast Asian community.  Of the trillion dollar sports business, nearly 45 percent is directly or indirectly related to media.  Look for increased significant long-term media development partnerships to carry the day.

  3. Cities protect their investment.  United States Conference of Mayors Professional Sports Alliance reviews best practices at the Annual Mayors Meeting in San Francisco last week.  Additionally, SportsManias is hosting its inaugural City Summit event in Orlando this Tuesday at the Amway Center.  The event will include two panels about Orlando’s pro and amateur sports landscape, featuring some of the region’s top sports executives.  For the true diehard sports fan, SportsManias is the easiest, fastest, most complete source of team news on the web and mobile.  Look for more of these meetings to inspire communities and decision-makers on the “best practices” to expand their professional sports interest; facility development; economic impact; and public/private partnerships.  More to come!  

  4. The name game.  As originally reported by The Tennessean, but in an article found and accessed from the Sportsmanias app, the site that provides fans with real-time information on their favorite teams, the Tennessee Titans reached a 20-year naming-rights deal with Nissan North America valued at $5-6.5 million annually.  LP previously had a 10-year naming-rights agreement with the team, worth $3 million per year.  The Titans plan to rename their home venue Nissan Stadium.  U.S. Bank Stadium in Minneapolis, Golden 1 Arena in Sacramento, and the controversy over Wells Fargo Center in Philadelphia – corporations spend nearly $14 billion annually on naming stadiums, arenas, convention centers, and the like.  Deals must create a win-win for all sides, and be easily understood by the fan/customer/consumer.  

  5. Deflate-gate; text-gate; spy-gate; hacking-gate; now salary cap-gate.  As originally reported by Philadelphia Inquirer, but in an article found and accessed from the Sportsmanias app, the site that provides fans with real-time information on their favorite teams, the NBPA is investigating the Philadelphia 76ers for violating the spirit of the CBA by salary cap tampering.  The Sixers were way below the cap floor until they made late-season acquisitions, which added the players’ full-season salaries to the cap while the team paid only a fraction of the contracts.  Whether this is a legitimate, legal loophole or a breach of faith, Commissioner Adam Silver has proven that he will not tolerate shenanigans with the integrity of the game.  

  6. NHL heading into the off-season.  The NHL will open a formal expansion process this summer, and Commissioner Gary Bettman said that the minimum cost for a team would be $500 million.  The NHL is likely to grow by two teams starting with the 2017-18 season, with Las Vegas, Seattle, and Kansas City among the possible expansion markets.  Commissioner Bettman is a seasoned veteran when it comes to expansion processes.  Look for an organized, orderly, sophisticated analysis of expansion in general, and emerging markets in specific.

  7. NBA heading to its short summer break.  ABC over the course of the six-game NBA Finals generated an estimated $224 million in ad sales revenue.  All told, 190 brands bought ad time during ABC’s broadcasts, with movie studios promoting upcoming summer releases among the biggest spenders.  Adam Silver and his marketing folks continue to do a masterful job in developing long-term partnerships with entertainment entities, major sponsors, and other partners.  NBA franchise values increased 78 percent last year.  While no $2 billion Steve Ballmer/Clippers transaction will impact the numbers this year, look for consistent and steady growth in the years ahead.

  8. Pete Rose Hall of Fame hearing?  A notebook obtained by ESPN’s Outside the Lines found that Pete Rose bet on baseball while he was still a player.  While there was no indication that Rose ever gambled against his team, the documents debunk his longstanding claim that he only bet on baseball as a manager.  As the annual Hall of Fame celebration in Cooperstown approaches, Commissioner Manfred indicates that Pete Rose will ultimately be able to state his case.  Unfortunately, this information could not come at a worse time for him.  

  9. Latest in the “race to Los Angeles” saga.  San Diego officials are accusing the Chargers of changing demands during stadium negotiations.  Chargers officials said they haven’t wavered on wanting a new stadium, but city representatives think the team’s inconsistencies indicate that they would rather move to Los Angeles.  Look for ongoing drama in St. Louis, Oakland, and San Diego as the teams, cities, and business communities joust for a final deal before the end of the NFL regular season.  Obviously, the leverage of Englewood and Carson (combined by a specific NFL deadline) will expedite the process to its logical conclusion.

  10. Baseball Internet carries the day.  MLBAM is in talks with investment bankers to spin off its non-baseball division, which has been valued at around $3 billion.  MLBAM technology is used to stream a variety of non-baseball content, including HBO and Sony programming, WWE events, and NHL games.  Commissioner Manfred runs a business of over $36 billion cumulative team value – large part includes the entrepreneurial Internet business.  Clearly, the value of a joint and shared process among all teams carries the day in this perspective.

  11. Tinkering with the game:  Part One.  The NHL’s Board of Governors voted to change overtime to a 3-on-3 format for a five-minute period in regular-season games tied at the end of regulation.  Previously, the NHL played 4-on-4 overtime.  Regular-season games tied at the end of overtime will continue to be decided by a shootout.  An accommodation to the “casual fan” as opposed to the “hockey purists,” the rule will undoubtedly generate more significant regular season excitement – very good for the NHL.

  12. Tinkering with  the game:  Part Two.  The NBA is moving forward with its plan to seed conference playoff teams 1-8 regardless of division winners.  Under the previous format, a division winner was guaranteed a top four seed in each conference.  Just like the NASCAR Sprint Cup and PGA Tour FedEx Cup, NBA continues to “tinker” with its playoff format to maximize acceptability, awareness, visibility, and interest.  

  13. Crowded Olympic 2024 field.  Paris and Rome each announced their intention to bid on hosting the 2024 Summer Games.  Paris last hosted the Olympics in 1924, while Rome held the Games in 1960.  Both bids are expected to have a budget of around $7 billion.  Boston is broadening its footprint to generate additional statewide support.  At the same time, the 2024 field crowds with major contenders.  Public/private partnership campaign in Boston needs a solid cohesive business plan in order to take advantage of the “newfound positive relationship” between the IOC and USOC.  

  14. Playing with fire.  The Glendale City Council decided it would not rescind its vote to terminate the Arizona Coyotes’ 15-year, $225 million agreement to operate Gila River Arena.  Team officials will explore relocation if they lose a legal battle with the city.  Cities like Houston, St. Louis, Cleveland, Baltimore, and others can testify about the significant difficulties and incremental costs involved in returning a professional sports franchise after the previous one leaves.  

  15. More Olympic protection.  The USOC is taking a more aggressive role in promoting and protecting low-revenue college sports, according to Ben Fischer of SportsBusiness Journal.  Popular Olympic sports such as swimming, wrestling, and gymnastics have faced cutbacks in spending over the last three decades.  As showcased on Universal Sports “Beyond the Medals:  The Business of Sport” last week, college designation of “emerging sports” for triathlon and others will help generate funding, awareness, and excitement.