By Rick Horrow and Karla Swatek
April 29, 2013
“Bust”: Top Five Reasons the Armageddon is Near
1. Lucas Oil CEO Forrest Lucas is upset with the lack of primetime home games on the Indianapolis Colts’ 2013 schedule. Lucas Oil pays $6 million annually for naming rights to the Colts’ stadium. This is the first time the CEO of a company with stadium naming rights has publicly complained about the team’s schedule.
2. IMG College’s five-year agreement to sell sponsorships for the NCAA quietly expired earlier this year without a renewal, according to Michael Smith of SportsBusiness Journal. During their partnership, IMG College landed the NCAA deals with Capital One, Hershey, Kraft, LG and UPS.
3. Axalta Coating Systems, the company that last year bought DuPont’s car paint business, has had a challenging time using Jeff Gordon’s NASCAR sponsorship in its rebranding. Not only have fans been slow to adapt to the new name, but also Gordon has had trouble not saying DuPont.
4. Organizers of the Sochi Olympics plan to make all ticket holders apply for a “spectator’s pass” in order to enter the Olympic Park. While the passes will help allay security concerns, the limited information about the application procedure and cost is leading some hospitality agencies to consider hiring extra staff to handle the process.
5. The Miami Heat could have difficulty keeping their star-studded team together after next season because of the NBA’s luxury tax rules. The new collective bargaining agreement deters Heat-like “superteams” by imposing a crippling tax on repeat salary cap violators.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. The Orlando Magic are moving forward with a $100 million sports & entertainment complex next to Amway Arena. The project is expected to include an office tower, hotel, parking garage, and restaurants, and the team hopes to break ground next year.
2. The Charlotte City Council unanimously approved giving the Carolina Panthers $87.5 million to help renovate Bank of America Stadium. In exchange for the public funds, the Panthers, who own the stadium, agreed to keep the team in Charlotte for the next six years.
3. If a bill to help Daytona International Speedway passes in the Florida state legislature, the track could expect to receive more than $70 million in sales tax rebates over the next three decades. The sales tax rebate is important for International Speedway Corp. to self-fund a $250 million DIS renovation.
4. The 15 current and future ACC schools agreed to a grant of media rights, meaning the conference retains a school’s TV revenue through 2027 even if they leave the league. The grant of rights essentially guarantees no school will leave the conference, and could be the forerunner to an ACC TV network.
5. Citi renewed its sponsorship of the U.S. Olympic Committee through the 2016 Rio Summer Olympics. The deal is valued at $15 million over four years, and means the USOC retains both of the banking partners it signed prior to the London Games, the other being TD Ameritrade.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. College sports insiders believe it may be only a matter of time before the big football schools breakaway from the NCAA to form their own league, according to Dan Wolken & George Schroeder of USA Today. The issue reportedly has reached a tipping point amid legal challenges to the NCAA’s amateurism model and misconduct by the NCAA’s enforcement division.
2. NFL sponsor Tide is offering an endorsement deal to the first player drafted by each of the league’s 32 teams. Tide bills itself as the “proud keeper of NFL team colors.” Prior to the draft, the brand signed top prospect Eric Fisher and his mom, Heidi, as spokespersons.
3. Philadelphia Mayor Michael Nutter says the city is “enthusiastically embracing” the possibility of bidding on the 2024 Summer Olympics. The USOC earlier this year sent invitations to 35 cities to gauge their interest in hosting the Games. The U.S. hasn’t hosted the Summer Olympics since Atlanta in 1996.
4. Nike has unveiled a new ad campaign centered on Kobe Bryant’s rehab and hopeful return from a torn Achilles. The creative lists several ways Bryant has wowed fans over the years, and implores him to do so again by coming back from the injury. Adidas last year launched a similar campaign based on Derrick Rose’s comeback from a torn ACL.
5. NASCAR debuted a new TV ad promoting its green initiatives including its use of ethanol-infused fuel and the solar-powered Pocono Raceway. The racing association over the last few years has put an emphasis on being more environmentally friendly.