By Rick Horrow and Karla Swatek
September 17, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. Development of the $4.9 billion Atlantic Yards project around the Barclays Center remains behind schedule. The project originally was scheduled to be finished in 2016, but the developer has yet to break ground on any of Atlantic Yards’ planned apartment buildings.
2. Atlanta mayor Kasim Reed said land improvements to the site around a proposed Falcons stadium could raise the cost of the project from $950 million to $1.2 billion. The city of Atlanta isn’t a part of stadium negotiations, but Reed indicated the city could allocate some money towards the improvements.
3. The authority that oversees Louisville’s KFC Yum! Center warned the city that it might need more money to cover the arena’s debt payments. The building’s debt is supposed to be paid from increased sales and property tax revenues in a district around the arena, but the district hasn’t done as well as expected.
4. NASCAR laid off 15% of its employees from the NASCAR Productions division, previously known as NASCAR Media Group. The decision came after executives decided to stop video production work for accounts outside motorsports, such as music videos and college sports teams.
5. MLS club Chivas USA has never turned a profit in its eight-year history, and some local newspaper columnists think the team would be best served by relocating to either Orlando or San Antonio. Chivas hasn’t made the MLS playoffs since 2009, and has seen attendance fall 16.5% over that time.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. The San Francisco 49ers already have sold $670 million worth of seats and luxury boxes for its under construction Santa Clara stadium, set to open in 2014. The team says 70% of current season-ticket holders have renewed for the new stadium, despite sizable ticket price increases.
2. Samsung extended through 2015 its $25 million per year deal to sponsor EPL club Chelsea’s jerseys. The deal is among the largest jersey sponsorships in the EPL, behind recent deals signed by Manchester United and Liverpool. Samsung picked up its option after Chelsea won the Champions League.
3. NAPA announced a three-year extension to its primary sponsorship of Michael Waltrip Racing’s No. 56 car, driven by Martin Truex. The deal is valued at approximately $16 million annually. NAPA is the third team sponsor in the last year to announce a full-season renewal.
4. The Orlando Magic are on pace to match last season’s ticket and sponsorships sales despite trading star Dwight Howard, according to John Lombardo of SportsBusiness Journal. Orlando’s season-ticket renewal rate is about 80%, and the team has sold 1,500 new full-season tickets.
5. The Pac-12 Conference got two deals for the price of one in a multiyear agreement signed with Dish Network. As part of Dish’s deal to carry the Pac-12 Network, the satellite operator gets exclusive category sponsorship rights for all of the conference’s schools.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. The Seattle City Council and investor Chris Hansen have reached a tentative deal to build a $490 million arena. Hansen still must secure a NBA team before the city or county issue construction bonds. The most obvious team known to be available is the Sacramento Kings.
2. Virginia Tech has installed video monitors at point-of-sale displays in nearly 20 Virginia Wal-Marts as a way to increase merchandise sales, according to Michael Smith of SportsBusiness Journal. The monitors are equipped with a motion detector, so a Hokies highlight video plays when customers walk by.
3. Rovio Entertainment launched a Philadelphia Eagles version of its popular Angry Birds game. The game, available exclusively on the Eagles’ Facebook page, features 16 free levels that unlock one at a time each week during the regular season.
4. Part of MLS’s plan in bringing over David Beckham and Thierry Henry was to boost the league’s international credibility. While it’s hard to measure the ultimate impact the two stars have had on the league, Beckham and Henry topped MLS’ inaugural list of best selling jerseys.
5. As part of upcoming renovation plans, Daytona International Speedway plans to reduce the number of fan entrances from 17 to 6, and is seeking cornerstone partners to sponsor each entrance, according to Tripp Mickle of SportsBusiness Jounral. Daytona President Joie Chitwood is modeling the entrance sponsorships after MetLife Stadium.