Bust, Boom, and Hope: June 11, 2013

By Rick Horrow and Karla Swatek

June 11, 2013

“Bust”: Top Five Reasons the Armageddon is Near

1. The NFL’s TV partners reportedly are unhappy about the league’s new sponsorship deal with Verizon, which includes mobile streaming rights. The network executives are upset that making games available in more places dilutes the overall product and will hurt their ratings.

2. The KFC Yum! Center, home of the Louisville Cardinals men’s and women’s basketball teams, saw its event revenue drop more than $4 million last year, according to the Louisville Arena Authority’s financial statements. The authority is responsible for paying off the arena’s $349 million bonds.

3. Through the first two games of the Miami Heat-San Antonio Spurs NBA Finals, TV ratings are down double-digit percentages compared to last year’s Finals. Game 1 saw ratings drop 10% from last year’s opener, while ratings for Game 2 fell 14%.

4. The Carolina Hurricanes could face a steep fine from the NHL if they’re unable to resolve a scheduling dispute with N.C. State University over event dates at PNC Arena. If the NHL has to change Hurricanes game dates after the league schedule is released next month, the team could be fined $100,000 for each infraction.

5. Coming off the most-watched Daytona 500 since 2008, NASCAR has been unable to maintain the TV momentum through the first few months of the Sprint Cup season, according to Tripp Mickle and John Ourand of SportsBusiness Journal. Fox averaged 7.8 million viewers through the first 13 races this season, down from 7.9 million viewers through the same point last year.

“Boom”: Top Five Reasons that Prosperity is Right Around the Corner

1. The Philadelphia Eagles announced plans to privately finance a $125 million renovation to Lincoln Financial Field over the next two years. The renvation includes a seating expansion, two new high-definition video boards, upgraded amenities, and WiFi installation.

2. F1 Grand Prix of America has signed a 15-year deal with Formula 1 and has begun preparations to stage its inaugural race near New York City this time next year. If the New York race is anything like the F1 race held in Austin last year, the region can expect to generate upwards of $500 million in economic impact.

3. The University of Kansas and Adidas signed a six-year extension of their footwear and apparel deal that will last through 2019 and be worth at least $26 million. Adidas initially signed an eight-year deal with Kansas in 2005. The deal is one of the richest in Adidas’ college sponsorship portfolio.

4. The Chicago Bulls broke ground on a new $25 million training facility the team is building next to the United Center. The Bulls plan on selling naming rights to the facility, which could generate up to $1 million annually. The facility is expected to be finished in time for the 2014-15 NBA season.

5. San Jose city officials have sold the naming rights to the arena formerly known as HP Pavilion to German software company SAP for $16 million over five years. SAP replaces Hewlett-Packard, which recently backed out of its deal after reevaluating its marketing expenditures.

“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival

1. NBA officials next season are allowing teams to sell advertising space on the court in front of benches and on top of the backboards, according to John Lombardo of SportsBusiness Journal. The ads are expected to bring in anywhere from the mid-six figures to $2 million annually.

2. NFL sponsor Pepsi is working to expand its endorser roster by signing at least one player in each team market. The move is designed to give local marketers an endorser, whether or not Pepsi has that team’s pouring rights. Among the new players Pepsi sponsors are Seattle Seahawks QB Russell Wilson and Dallas Cowboys RB Demarco Murray.

3. Starting next summer, the University of Oregon will require all new licensees to guarantee the school at least $500,000 a year in royalties. Oregon’s move follows similar actions taken by Texas, Ohio State, and USC, who find it easier dealing with just a new, large licensees instead of several smaller ones.

4. Taking into account fan feedback, Iowa Speedway this year altered its race schedule to hold more events in June instead of in May. According to the track’s CEO, the schedule change resulted in strong ticket sales for last weekend’s NASCAR Nationwide Series DuPont Pioneer 250.

5. Beginning next season, the NHL will make wearing visors mandatory for all players with less than 26 games of experience. Visor usage in the NHL this season was a league-record 73%, up from 15% in 1999 and 50% in 2007.

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