By Rick Horrow and Karla Swatek
December 3, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. The NASCAR Sprint Cup Series this season posted its smallest average TV audience since its current rights deals with ABC/ESPN, Fox, and TNT were signed in 2007, according to Austin Karp of SportsBusiness Journal. The Series’ 5.8 million viewers per telecast was down 11% from last year.
2. With no end to the NHL lockout in sight, the Minnesota Wild will cut employees’ pay by 20% and move to a four-day workweek. The NHL already has canceled one-third of the season. The Wild generate $1.1 million in revenue for each regular season home game.
3. A survey conducted by the Miami Herald of 400 South Florida baseball fans found that 87% feel “furious and betrayed” by the Marlins’ recent trades, while only 6% have a favorable opinion for team owner Jeffrey Loria. Additionally, 61% of season-ticket holders would boycott next season if it meant Loria selling the team.
4. The University of Washington has severed ties with Adidas amid student protests over the sports-apparel company’s overseas labor practices. Cornell previously ended its relationship with the company over labor concerns, while the University of Michigan is reviewing its $60 million deal with Adidas.
5. Because of the team’s uncharacteristically bad start, tickets on the secondary market for New York Jets games are going for their lowest average resale price since MetLife Stadium opened in 2010. Some seats for this past weekend’s game against the Arizona Cardinals were selling for $15, 80% below face value.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. The Los Angeles Dodgers and Fox Sports reportedly are closing in on a 25-year TV rights deal worth $6-7 billion. At an average annual payment of $240-280 million, the deal would be worth almost 20 times the value of the Dodgers’ current local TV contract.
2. ESPN has acquired rights to the entire college football playoff system that will begin after the 2014 season. The 12-year deal is worth about $470 million annually, with ESPN owning the rights to all six bowls associated with the four-team playoff.
3. The Glendale City Council approved a $320 million arena management deal and lease with prospective Phoenix Coyotes owner Greg Jamison, paving the way for Jamison to close on his purchase of the team. The deal guarantees the Coyotes will play at Jobing.com Arena for the next 20 years.
4. The Richmond City Council approved an economic development package that includes $9 million for the Washington Redskins to build a new training facility. As part of the deal, the Redskins have committed to holding their three-week training camp in Richmond for at least the next eight years.
5. Hitachi signed a deal with Penske Racing to serve as the primary sponsor of the Izod IndyCar Series car driven by Helio Castroneves for nine races next season. The deal will be leveraged to promote multiple Hitachi Group companies in the Americas.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. The University of Minnesota from Black Friday through Cyber Monday offered a “Golden Ticket” promotion. For $75, fans could purchase a ticket for all men’s basketball or hockey games after January 1. However, if the fan attends a game the Golden Gophers, the pass is deactivated.
2. The NFL hosted an exhibition at a New York City restaurant to assist its house and home licensees in advance of the holiday season, according to Terry Lefton of SportsBusiness Journal. Among the licensed products were team-logoed wine glasses, chip and dip sets, and cheese boards.
3. Groupon reached a deal with Major League Baseball to be the official daily deal website for all 30 MLB teams. The deal will allow fans to purchase special experiential packages, including access to batting practices, luxury box seats and clubhouse and ballpark tours.
4. International Speedway Corp. and Redbox reached a partnership to sell tickets to select 2013 NASCAR events, starting with races at Auto Club Speedway in Southern California. Redbox kiosks in the L.A. area will begin selling tickets in early January with a $1 service fee.
5. Pittsburgh Penguins star Sidney Crosby said the odds of him playing in Europe have gone up significantly as the NHL lockout drags on. Crosby’s agent has spoken with multiple teams in Russia and Switzerland, but he wouldn’t rule out playing in other countries as well.