By Rick Horrow and Karla Swatek
December 17, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. The 13 college football programs that have fired their head coach this season are spending at least a combined $30 million to buyout those contracts, according to research done by USA Today. When taking into account damages owed to other schools for hiring their head coach, the total payments may top $50 million.
2. The New York Yankees have been unusually quiet this offseason as the team tries to limit its spending. MLB in 2014 will implement new luxury tax rules, which have stricter punishments for teams with payrolls over $189 million, and Yankees owner Hal Steinbrenner doesn’t want to cross that threshold.
3. NHL merchandise retailers continue to see sales drop as the league’s lockout enters its fourth month. Additionally, some regional sports networks with NHL rights are beginning to make spring programming arrangements under the assumption the entire season is lost to the lockout.
4. NBA Commissioner David Stern sharply criticized New Jersey Governor Chris Christie’s plan to legalize sports gambling, saying the state has no idea what it’s doing and is only interested in making money. The four U.S. pro sports leagues and the NCAA are suing Christie for defying a federal law on sports wagering.
5. The San Diego Chargers on Sunday had their game against the Carolina Panthers blacked out on local TV after being unable to sell enough tickets before the NFL’s deadline. It was the Chargers’ fourth TV blackout of the season, their most since having four in 2004.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. The Los Angeles Dodgers signed free agent pitcher Zack Greinke to a six-year, $147 million deal, the richest ever for a right-handed pitcher. Los Angeles has added more than $600 million in player salary since being purchased by Guggenheim Baseball Management last spring, and the team this season could have the most expensive payroll in MLB history.
2. The Michigan State Senate approved legislation to help finance a $650 million downtown Detroit, mixed-use development project that would include a new arena for the Red Wings. It’s not yet known how much funding will come from Red Wings owner Mike Ilitch and how much will come from the public sector.
3. Baylor University estimates Robert Griffin III’s Heisman Trophy win last year has been worth $250 million to the school in extra ticket sales, donations, licensing fees, and media rights. Additionally, plans to build a new $250 million football stadium were approved shortly after RG3’s Heisman victory.
4. Boosted by NBC Sports’ success streaming last year’s Super Bowl, CBSSports.com is nearly sold out of advertising space for its live-streaming of this year’s game. Online ads are going for an estimated $1 million, compared to up to $4 million for a 30-second spot in the TV broadcast.
5. The Indiana Pacers and Indianapolis’ Capital Improvement Board agreed to a one-year extension of the team’s Bankers Life Fieldhouse lease. Per the terms of the deal, the Pacers will receive $10 million to help operate the arena.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. Cowboys Stadium could open the 2013-14 college basketball season by hosting four games simultaneously. Details for the proposed event are still being worked out, but the four games would begin 15 minutes apart and held side by side. As of right now, Michigan State is the only school committed.
2. The NBA, which has actively embraced technology and social media, became the first pro sports league to reach one billion views on its YouTube channel. The league first partnered with YouTube in 2005, and expanded the relationship this year by committing to show more than 350 live D-League games on the site.
3. StubHub and MLB Advanced Media signed a five-year extension of their deal that makes StubHub the league’s official ticket resale marketplace. The Yankees, which opted out of the league-wide deal, are close to agreement with Ticketmaster for the team’s ticket resale rights.
4. Reebok’s CCM Hockey equipment brand is shifting its marketing strategy away from the NHL as the lockout drags on. The new campaign is centered on Montreal kids, who are portrayed as the future of hockey.
5. Now that the NFL opened the “cold weather floodgates” by awarding the 2014 Super Bowl to New York/New Jersey, Denver is interested in hosting the game. The Broncos and Visit Denver submitted a preliminary application to the NFL’s Super Bowl Advisory Committee to hold the event in 2018, 2019 or 2020.