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It’s New Years Day and here in the River City, dawn is breaking cold and grey but thankfully free of snow.  I’m sitting at my computer trying to while away the hours until kickoff of the Outback Bowl to watch the Cats return to a New Years Day bowl for the first time since the 1997 Citrus Bowl (now known as the Capital One Bowl for who knows how much longer given Capital One’s financial condition).  I thought it might be a good time to revisit the 2009 sports business stories that were worth discussing.


Fortunately for us, the folks at Bloombeg’s Business Week did that for us, with their list of the ten most important sports business moments of 2009.  We could argue about the order of events all day and over the inclusion of some of them, but I suspect there is little disagreement or doubt about the number one story on Business Week’s list: the self-generated implosion of Tiger Woods’ public image and with it his endorsement career, at least for the moment.  This is, as we all know, an ongoing story, as was confirmed yet again on Thursday with the announcement by AT&T that it was ending its sponsorship of him which included its name on his golf bag.  That leaves Nike as the only major sponsor which has not indicated that it is either dropping Woods, reevaluating its relationship or putting its Woods ads on hiatus.  But then, Nike has a history with athletes in similar situations and in at least the case of Kobe it has worked out well for Nike to stick around.


There were several events or stories that deserved to be on the list that Business Week omitted.  The inclusion of new Cowboys Stadium was appropriate, if perhaps a bit too high, but it was not the only new stadium that debuted in 2009.  Now, you can treat new Yankees Stadium and CitiField in the story about the Yankees World Series or you can discuss them here but I think both deserve mention as their potential impact will be nearly as great as Cowboys Stadium.  For one, CitiField may be the last major naming rights deal we’ll see for quite some time – certainly at the $40 million level.


The fabulous fillies, Zenyatta and my pick for Horse of the Year, Rachel Alexandra, deserve mention as they not only each achieved milestone and unprecedented victories, but brought new interest to a sport in desperate need of new fans.  Let’s hope that both will continue racing in 2010.


As we look forward to 2010, there are a few trends we can see developing.  Labor unrest is due in the major professional sports league which could lead to dreaded work stoppages.  The NFL collective bargaining agreement expires at the end of next season and talks to date have been unproductive.  MLB talks between owners and the MLBPA have been similarly non-productive.  The issues in both cases involve revenue sharing and the owners are rebelling against what they deem to be existing CBAs that favor the players.  It will be a long year of hearing about mediation, arbitration and lawyer speak.


2010 is both an Olympic and World Cup year so we will be treated to world sports on a global scale.  The Vancouver Olympics begin on February 12 with the World Cup following in South Africa this summer.  Both will showcase sports that are not in the mainstream of the American sporting consciousness; both will kickstart interest in those sports, including a boost to MLS, which will continue to grow and show the other major professional leagues the way to integrate corporate sponsors onto jerseys, facilities and gear that fans will buy in ways that not only will not offend the fans but may actually encourage them to patronize the sponsor.

Posted by Mark

You just have to love the Dodgers; they’re just a fountain of stories this year.  It will be almost a shame to see the McCourts divorce ever get settled.  Now, the amazingly bizarre stories have spread to the dugout.  Former Dodger pitcher Chan Ho Park has sued his former batterymate, claiming that catcher Chad Krueter stiffed him on a $460,000 loan. 

Park, now pitching for the Phillies, loaned the money to Krueter in 2005.  Krueter signed a promissory note but according to Park’s complaint, made only one payment of $290,000.  Park wants the balance together with unpaid interest and fees totaling $226,358.76.


I wonder if the Dodgers can negotiated a bulk rate on court costs with the LA County Superior Court.

Posted by Mark

December 24, 2009

Happy Holidays

I’ll be traveling with my family between now and New Year’s so expect posting to be sporadic if at all.  In the meantime, gorge yourself on eggnog and bowl games and I’ll be back with you in full force come the new year.


Best wishes to all of you for a belated Happy Hanukkah and Merry Christmas and for all of you my hope that you have a safe, happy, prosperous and above all, healthy new year to you and your family.


Finally, I can’t wait to see Fitz lead the Cats win their first bowl since 1949, on New Years Day no less, when the War Eagles go down in flames.

Posted by Mark

Reality, this is the NFL; NFL, this is Reality, now shake hands and come out with real plans to deal with concussions.  After years of studies that were performed in a manner similar to those conducted by cigarette manufacturers into the safety of long-term tobacco use, the NFL has finally acknowledged that concussions can lead to long-term problems in the brain. 
 
In a telephone interview on Sunday, league spokesman Greg Aiello said, “It’s quite obvious from the medical research that’s been done that concussions can lead to long-term problems.”  Of course, he wasn’t referring to the league’s own studies which have been so badly mismanaged and biased that the league has been forced to suspend them and receive the resignations of the co-chairmen of its concussion committee.


The NFL has finally begun to revamp its rules regarding concussions.  Players now must be cleared by brain-injury experts unaffiliated with the team, and cannot return to a game or practice in which they have shown any significant sign of concussion.  Hopefully, these rule changes will be implemented at all levels of football and other contact sports including hockey and maybe even lacrosse, although the incidents of concussion in lacrosse are certainly not as frequent.  The long-term cost of concussion is present no matter what, the severity of the brain damage is usually determined by the frequency of the concussions or the closeness in time between multiple concussions.  Any rules and practices that can minimize those factors should be welcome by all sports administrators for the benefit of the sports and all those who play them.

Posted by Mark

December 19, 2009

Hello world!

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Posted by Mark

December 19, 2009

Books for the Holidays

Since Christmas is fast approaching, and you may be running out of ideas for gifts, I thought I would share a list of some of the sports and sports business related books from 2009 that I have enjoyed this year and found worthy of recommending.  There are in no particular order and in the case of The Blind Side, was just reissued in 2009 to tie-in with the movie (which you should go see if you haven’t).

If you have any other suggestions, please leave them in the comments.

Open: An Autobiography by Andre Agassi

When the Game Was Ours by Larry Bird, Earvin “Magic” Johnson with Jackie MacMullan

Bottom of the Ninth: Branch Rickey, Casey Stengel, and the Daring Scheme to Save Baseball from Itselff, by Michael Shapiro

Never Make the First Offer: (Except When You Should) Wisdom from a Master Dealmaker (Portfolio), by Donald Dell with John Boswell

What Were They Thinking?: The Brainless Blunders That Changed Sports History, by Kyle Garlett

The Blind Side , by Michael Lewis

Soccernomics: Why England Loses, Why Germany and Brazil Win, and Why the U.S., Japan, Australia, Turkey–and Even Iraq–Are Destined to Become the Kings of the Worlds Most Popular Sport by Simon Kuper and Stefan Syzmanski

The Beckham Experiment by Grant Wahl

Posted by Mark

The NBA should soon have its second major international owner, as Chinese investor Albert Hung has finalized a deal to purchase a fifteen percent in the Cleveland Cavaliers, which would make him the team’s second largest owner behind the club’s principal owner Dan Gilbert.  The sale needs to be approved by the league’s Board of Governors.


The sale to Hung is likely to accelerate the expansion of NBA activity in China, especially that of the Cavaliers and LeBron James.  It may well become a factor in the free agent wooing of James at the end of the season.  James has extensive endorsement activities in China which would undoubtedly could be enhanced through the connections possessed by Mr. Hung.  Since LeBron is on a quest to become a billionaire, that endorsement edge in the Chinese market combined with the Cavs ability to pay more than any other team and the Cavs hometown appeal may all combine to keep LeBron in Cleveland.  At least Dan Gilbert hopes so.

Posted by Mark

With this Tiger story it doesn’t seem to matter when you decide to write a story, pen a post or whatever, it will be out of date almost as soon as it is released.  No sooner had I posted yesterday’s post on the impact of Tiger’s behavior on his endorsement empire, then Accenture announced it was terminating its relationship with him.  Of course, this had been foreshadowed by his disappearance from the company’s website as I reported yesterday, but Accenture’s announcement marks the first company to publicly break with Tiger.

Accenture found itself in a no-win situation.  It had built its entire marketing campaign around Tiger, with its ads carrying the tag line “Go, Be a Tiger” for the last six years.  It has been a highly successful campaign according to the company and the company is now forced into a high stakes rush to find a new marketing campaign.  In the meantime, I would assume that airport billboards around the world will be changed to remove Tiger and replace that picture with something carrying just the company logo.

As I suggested yesterday, Gillette announced that it won’t air advertisement featuring Tiger nor use him in any public appearances for an unspecified time.  We can safely read that to be at least until this blows over, he returns to playing golf and winning majors and we can see if he retains any appeal to women despite the fact that he markets men’s shaving products.
Posted by Mark

I’ve refrained from commenting on the ongoing Tiger affairs, since so long as they were nothing but tabloid  fodder, I felt no reason to add anything to a story that I felt, and still feel, is mostly personal and not worthy of the attention it is receiving.  Now, that Tiger has announced his temporary suspension of play on the Tour, and it appears that his centi-million endorsement empire is beginning to implode, it becomes a story worthy of our attention.  I hope that Tiger and Elin find a solution that works for them away from the prying eyes of the public; I’m somewhat doubtful that will be the case.

Even before Tiger announced yesterday that he was taking time off from the Tour to work on repairing his marriage, the vaunted Tiger Woods Inc endorsement empire appears to be imploding.  Quietly, without any fanfare or public announcements of any kind, starting on November 29, advertisements featuring Woods vanished from the airwaves.  While he received the vocal and not too surprising support of Nike, no other major company with whom he has an endorsement deal has committed to maintaining a relationship, at least publicly.
In fact, he has disappeared from the website of Accenture, a company which had called him the “centerpiece” of its advertising campaign.  Indeed, large Accenture ads featuring Tiger can be found in most major airports.
Meanwhile, in Australia, Tag Heuer, the watch company, has pulled all of its advertisements featuring Woods, although the company claims it is unrelated to the recent activities.  That claim might be more believable if the campaign had been in use for, say, six months or more; but the in-store placards had only recently been distributed.  In addition, AT&T has announced that it re-evaluate its relationship.
Gillette, has announced that it will limit Tiger’s role in its marketing while he is on hiatus.  That means, given that Gillette is a Proctor & Gamble company, his role with Gillette is at an end.  P&G is not going to jeopardize its main market, women, by keeping an endorsement with a serial adulterer.
An early example of how far, how fast he has fallen comes from the Davie Brown Index, which is a measure of a celebrity’s ability to influence shoppers.  Tiger dropped from number 6 before the car accident to number 24.  With more of his endorsements going away by the day, expect that number to drop further.
For companies, Tiger Woods is yet one more cautionary tale about the inherent danger of celebrity endorsers.  Market positioning of your product is critical and when a celebrity endorser goes off the rails, as it were, an entire campaign comes crashing down around him or her.  As Tiger proves, even the most focused and straight-laced appearing people can be hiding secrets that can devastate a company.  In Tiger’s case, almost all of his deals are with large companies that can afford to absorb whatever the blowback might be, but certainly that is not always the case and one needs to be hyper-vigilant for those situations in which the misdeeds of a single individual can lead to a disastrous quarter, year or worse for a company you are invested in, work for or manage.
It is not a completely hopeless situation from Tiger’s standpoint.  Regardless of how his efforts to save his marriage turn out, the public fickle affections, and with them his endorsement contracts, can always return.  For proof of that one need only ask Kobe Bryant, who faced a much swifter and more complete drop by his companies following a rape allegation, but has since returned to where his endorsement income is at a level close to what it would have been in the absence of the Colorado incident.  In Tiger’s case, it may take a couple of years of laying low and doing little but winning golf tournaments, especially majors, without being seen as an endorser for a year or two, while anger about these revelations blows over.  Then, he can reap the benefit of what all good athletes fundamentally know: winning cures everything.
Posted by Mark

Manny Pacquaio and Floyd Mayweather, Jr. have purportedly agreed to all of the major terms of a deal to fight each other on March 13, with an announcement coming as soon as Tuesday.  Top Rank is promoting the fight which may turn out to be one of the highest grossing fights on record.  For Bob Arum and Top Rank’s sake, it better be.

Each fighter will earn $20 million for the fight, with the possibility of earning as much as $40 million, depending on the pay-per-view returns.  Interest in staging the fight has come from  Las Vegas, Dallas and New Orleans.  Las Vegas was originally thought to be the site, as the MGM Grand has hosted several fights for both fighters, but there has been interest in placing the fight in new Cowboys Stadium, which I’m sure intrigues Arum. 

This could be Paquaio’s last fight for some time as he will be returning to the Phillipines following the fight to run for Congress.  That race, if successful, is preparatory, many believe, to a run for the President.  With his popularity and charisma, he will make a formidable politician.

Posted by Mark

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