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Bust, Boom, and Hope: February 11, 2013


By Rick Horrow and Karla Swatek

February 11, 2013

“Bust”: Top Five Reasons the Armageddon is Near

1. Prospective Phoenix Coyotes owner Greg Jamison’s attempt to purchase the team has fallen through after he missed a deadline set by Glendale. Jamison needed to buy the team by the end of January in order to capitalize on a lucrative management clause in the Coyotes’ Jobing.com Arena lease.

2. Critics are questioning New Orleans’ future in the Super Bowl rotation after the Superdome power outage cast an embarrassing light on the NFL and the city. Including the 2011 seating debacle at Cowboys Stadium, this is the second time in three years the league has had a significant technical gaffe at the Super Bowl.

3. Contrary to initial denials, the NCAA did approve a $20,000 payment to the lawyer of University of Miami booster Nevin Shapiro to obtain information in its investigation against the school, according to CBSSports.com. The NCAA doesn’t have subpoena power, and may not have been able to get certain evidence otherwise.

4. The MLS Houston Dynamo and Greenstar Recycling agreed to end the company’s team and jersey title sponsorship. The early termination of their three-year, $7.5 million deal comes as a result of Greenstar’s sale to Waste Management. The Dynamo next season will be one of three MLS teams without a jersey sponsor.

5. The NPBA placed Executive Director Billy Hunter on indefinite suspension, effectively stripping him of all duties. Hunter’s job status has been in question since an internal investigation found him guilty of nepotism and failing to comply with union bylaws.

“Boom”: Top Five Reasons that Prosperity is Right Around the Corner

1. French soccer club Paris St. Germain, which recently signed star David Beckham to a contract, agreed to a five-year, $171 million jersey sponsorship with Fly Emirates. The deal will be the richest in French soccer history when it goes into effect in 2014.

2. Sacramento’s Downtown Plaza has gained momentum as the potential site of a new Kings arena. The location is a favorite of Ron Burkle, considered the best candidate to buy the Kings and keep them in Sacramento. Downtown Plaza previously was studied as an arena site in 2010.

3. The NFL already is sold out of tickets to both games scheduled for London next season. The brisk sales are indicative of the U.K.’s growing support of the NFL, prompting Commissioner Roger Goodell to leave open the possibility of one day permanently placing a team in London.

4. In anticipation of releasing two new smartphones, BlackBerry has renewed its North American sponsorship deal with the NHL. Financial terms of the deal weren’t disclosed, but the agreement will have BlackBerry sponsor all NHL media platforms, including NHL.com and TV broadcasts.

5. Ohio State beginning this season plans on significantly increasing ticket prices to “premier” football games as a way to fund the school’s 36 self-sustaining athletic programs. Some ticket prices could see 150% increases by 2016.

“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival

1. The NFL and NFLPA are partnering with prominent organizations to improve player safety. The NFL is collaborating with GE to further research detecting and preventing concussions, while the NFLPA is teaming with Harvard Medical School to improve the long-term health of players.

2. The Chicago Cubs and Northwestern University agreed to a five-year marketing partnership that will have various NU athletic teams, including football, play games at Wrigley Field. In addition to games, signage and ticket promotions for both the Cubs and NU will be prominent around Chicago.

3. New York Mets owners Fred Wilpon and Saul Katz want to build a casino next to Citi Field as a way to recoup some of the $162 million they owe in the Bernie Madoff Ponzi scheme. The Wilpons’ desire to build a casino comes as the New York legislature considers a constitutional amendment to allow gaming.

4. Washington Wizards guard John Wall is moving his endorsement deal to Adidas now that his contract with Reebok expired. Wall had been the face of Reebok basketball since entering the NBA in 2010, but the brand, an Adidas subsidiary, is shifting to a more lifestyle focus.

5. The NHL’s seven Canadian teams have joined together on a month-long initiative to increase awareness of mental health issues. A game night in each Canadian hockey city will be dedicated to the Hockey Talks campaign, which will be supported with in-arena messaging and information.




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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.
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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.
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