By Rick Horrow and Karla Swatek
March 4, 2013
“Bust”: Top Five Reasons the Armageddon is Near
1. For-profit prison operator GEO Group has received almost universal criticism since buying the naming rights to Florida Atlantic University’s football stadium. Late-night talk shows have made a mockery of the sponsorship, and the powerful ACLU lobby has called on the school rescind the deal.
2. The New York Mets expect to lose $10 million this year, which would mark the third consecutive season the team has posted a loss. Additionally, the team’s attendance at Citi Field is projected to fall for the fifth straight season. MLBPA chief Michael Weiner recently called out the Mets for their lack of spending.
3. Echoing the sentiments of many of his players, PGA Tour Commissioner Tim Finchem declared his opposition to the USGA and R&A’s proposed 2016 ban on anchored putting. The divisive issue has created a de facto “power struggle” over the control of the sport.
4. Few NBA teams made trade deadline deals because of the financial implications in the league’s new collective bargaining agreement. Beginning next season, the CBA imposes stiffer penalties for team’s spending above the salary cap. Only 21 players were dealt at the deadline, down from 27 last year and 49 in 2011.
5. NASCAR drivers have found passing to be difficult in the highly touted Gen-6 NASCAR cars, which made their Sprint Cup Series debut at Daytona. Their inability to pass led to a relatively unexciting Daytona 500. The Gen-6 cars are made to look more like individual Chevys, Fords, and Toyota.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. Pittsburgh Penguins co-Owner Ron Burkle and 24-Hour Fitness co-Founder Mark Mastrov have confirmed they will submit a bid for the Sacramento Kings and have plans for a new downtown arena. The bid is believed to be $425 million, and includes 20 local investors each pledging $1 million.
2. International Speedway Corporation unveiled plans for a $250 million renovation to Daytona International Speedway. The proposed changes include a grand entrance, wider concourses, and escalators. The track hopes to receive state tax rebates if it self-funds the renovations.
3. The “Catholic 7” basketball schools that broke away from the Big East are closing in on a TV deal with Fox Sports, estimated to be $30-40 million annually depending on how many schools join the league. The deal is worth more than the $20 million per year TV deal the Big East signed with ESPN.
4. MLB Advanced Media over the first week of Spring Training reported record streams and downloads across MLB.TV and the MLB.com At Bat app. Users accessed 1.2 million live video and audio streams, up 53% from the same period last year, while At Bat registered 1.7 million downloads.
5. Standard Life Investments has signed on to become the first company with worldwide sponsorship rights for the Ryder Cup. The deal is valued in the high seven-figures. The PGA of America and European Tour hope to have four worldwide sponsors.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. The Cincinnati Reds this season will become MLB’s 20th team to implement a dynamic ticket-pricing model. The method uses several factors including team performance, opponent, and available inventory to change ticket prices in a way that’ll maximize revenue generation.
2. Stewart-Haas Racing hopes the early season excitement surrounding Danica Patrick helps sell the three remaining primary sponsorships on her No. 10 car. Go Daddy is the primary sponsor on Patrick’s car for 33 of the 36 Sprint Cup Series races this season.
3. The New Orleans Hornets plan to target Saints fans as they attempt to sell season tickets. The Hornets this year rank 29th out of the NBA’s 30 teams in average per-game attendance. The team next season will reduce prices on 81% of tickets. Tom Benson owns both the Saints and Hornets.
4. With Heisman-winning QB Johnny Mazniel in school for at least two more years, Texas A&M is increasing season ticket prices by $25 for the 2013 season. The increase is expected to generate $2 million in ancillary revenue, which will be used to cover raises for coach Kevin Sumlin and his staff.
5. Just weeks after extending its PGA Tour apparel license, Perry Ellis International signed six golfers, headlined by Jason Dufner and Kevin Na, to endorsement deals. Perry Ellis hopes to use the golf platform to grow its market share in Canada and Latin America.