Shopping Basket 0
Human Kinetics Publishers, Inc.


HK News

News and Excerpts

Bust, Boom, and Hope: College Sports, Shoe Companies, MLB, NFL, Soccer

By Rick Horrow and Karla Swatek

February 22, 2013

College Sports

Winner: The University of Texas football program during the 2011-12 fiscal year became the first college sports team to make over $100 million revenue in a single season. All told, UT’s athletic department generated an NCAA-record $163.3 million in revenue, and it’s $25 million operating surplus was more than what 135 of 220 D-1 schools spent on their entire athletics program.

Loser: A North Carolina judge has denied the University of Maryland’s motion to dismiss a lawsuit by the ACC demanding the school to pay a $52 million exit fee. The school, which will move to the Big Ten in 2014, had argued that because it’s state-funded, it has sovereign immunity from lawsuits like the ACC’s.

What it means: A contract is a contract, so Maryland likely will end up having to pay the $52 million exit fee unless the two sides settle for a smaller amount. Expect other ACC schools to monitor this case, as it could have a significant impact on whether they decide to switch conferences as well.


Shoe Companies

Winner: Under Armour debuted a new flagship store in Baltimore, marking the company’s first stand-alone, full-price store in the U.S. since 2008. CEO Kevin Plank said “Brand House,” which is located near the company’s HQs, would be used as a template for international growth.

Loser: Nike announced it would no longer run ads featuring disgraced South African Paralympian Oscar Pistorius. The company last year spent an estimated $800 million on athlete endorsements, but recently has had to deal with high profile scandals involving endorsers Lance Armstrong and Tiger Woods.

What it means: All Brand House staff members are experts in specific sports, and the store will be the first place Under Armour can showcase and sell its new Armour39 workout monitoring system. Maybe more importantly, the store also is being used as a learning experience, so the company can improve its strategy for selling merchandise internationally. Expect to see more Brand Houses popping up around the world.



Winner: Ticketmaster CEO Nathan Hubbard said the company’s new venture with the New York Yankees would be profitable despite cutting commissions from 15% to 5% on sales by season-ticket holders. The Yankees opted out of MLB’s new partnership with StubHub to create their own ticket exchange with Ticketmaster.

Loser: Boston Red Sox CEO Larry Lucchino said the team’s 793-game sellout streak at Fenway Park likely would come to an end this April. The team defines a sellout based on the number of tickets distributed, but scores of empty seats have been visible at games in recent years.

What it means: Critics have questioned the validity of the Red Sox’ sellout claims for the last couple years, so the time is probably right for the streak to end. The streak likely will fall just short of the American pro sports record of 814 sellouts set by the Portland Trailblazers from 1977-1995.



Winner: NFL Commissioner Roger Goodell earned nearly $30 million in 2011, according to the league’s latest tax returns filing. While Goodell’s salary was only $3.1 million, owners gave him a $22 million bonus for negotiating a new CBA and new TV deals. By comparison, NBA Commissioner David Stern and MLB Commissioner Bud Selig are believed to make in the mid-$20 million range.

Loser: Despite a labor deal that runs through 2021, NFLPA President Domonique Foxworth says players don’t trust Roger Goodell, primarily because of he handled the Bountygate scandal. Foxworth says players want checks and balances such as a neutral arbitrator to improve league relations.

What it means: Goodell’s job is to answer to the 32 NFL team owners, not the players and fans. A ten-year labor deal and $27 billion in new TV contracts are huge accomplishments. As Goodell continues to grow what’s already a $9 billion business, the $30 million compensation is warranted.



Winner: Brazilian entrepreneur Flávio Augusto da Silva has invested $70-80 million in USL Pro soccer club Orlando City, believing it could be the next MLS expansion franchise. The club has been working with the city and Orange County on plans for a $110 million soccer-specific stadium.

Loser: The American owners of Italian soccer club AS Roma are facing a revolt from fans disenchanted with the team’s recent losses. Since buying the club in 2011, the American ownership group has sought and struggled to build Roma into an international brand similar to the EPL’s Manchester United.

What it means: MLS Commissioner Don Garber hasn’t been shy about wanting the league’s next expansion team in New York City. However, if Orlando City and it’s new deep-pocket owner can get a stadium deal done by the end of the year, it’ll be hard for Garber to justify not putting a team in Central Florida.

Subscribe to feed Subscribe to feed
Share Facebook Reddit LinkedIn Twitter


Print Save to favorites


Beyond the Scoreboard
Rick Horrow, America’s leading expert in sport business, and coauthor Karla Swatek give fans an inside look at the multibillion-dollar world of professional sport.
Beyond the Scoreboard eBook
Rick Horrow, America’s leading expert in sport business, and coauthor Karla Swatek give fans an inside look at the multibillion-dollar world of professional sport.
Beyond the Scoreboard: Chapter 1. The Mega-Master Super Series XLXL eBook chapter

Get the latest news, special offers, and updates on authors and products. SIGN UP NOW!

Human Kinetics Rewards

About Our Products

Book Excerpts


News and Articles

About Us

Career Opportunities


Business to Business

Author Center

HK Today Newsletter


Exam/Desk Copies

Language rights translation

Association Management

Associate Program

Rights and Permissions




Certifying Organizations

Continuing Education Policies

Connect with Us

YouTube Tumblr Pinterest

Terms & Conditions


Privacy Policy


Safe Harbor