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Bust, Boom, and Hope: February 4, 2013


By Rick Horrow and Karla Swatek

February 4, 2013

“Bust”: Top Five Reasons the Armageddon is Near

1. 61% of NFL players disapprove of the job done by Commissioner Roger Goodell, according to a survey of 300 players conducted by USA Today. The players primarily cited the increased fines for dangerous hits and Goodell’s handling of the Bountygate scandal as reasons for their disapproval.

2. Several NASCAR stars still have significant unsold primary sponsorships for races this season, according to Tripp Mickle of SportsBusiness Journal. Among the drivers still looking for sponsors are Dale Earnhardt Jr. and Tony Stewart, who recent lost major deals with Mountain Dew and Office Depot, respectively.

3. The New York Yankees are looking into voiding Alex Rodriguez’s contract after his latest link to performance-enhancing drug use. The Yankees can’t take any action until MLB completes an investigation, but there’s no precedent of a team voiding a contract over steroids. Rodriguez has five years and $114 million remaining on his deal.

4. A respected French soccer magazine is the latest to report that Qatar bought its 2022 World Cup bid, claiming then-French President Nicolas Sarkozy pressured UEFA President Michel Platini to change his vote. Platini denied the allegation, but the Qatar bid has been under suspicion since the country was named host.

5. NBPA Executive Director Billy Hunter fired all his family members with union jobs after a report charged him with nepotism and violating NBPA bylaws. In addition to laying off family members, Hunter has proposed a series of reforms as he attempts to keep his job.

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

1. The Los Angeles Dodgers and Time Warner Cable officially agreed to a 25-year deal worth nearly $8 billion for local TV rights to the team’s games. The deal includes plans to launch a new regional sports network, SportsNet L.A., in 2014. The team will own the channel.

2. The average NBA franchise is worth $509 million, a 30% increase over last year’s valuations, according to an annual study done by Forbes. The increase in values is attributed to the league’s new labor deal, higher national TV revenues, and new and renovated arenas.

3. EPL club Manchester United earns in $204 million annually from deals with at least 32 corporate sponsors, according to Laurie Whitwell of the London Daily Mail. The total value of those partnerships is expected to increase as early as 2014 when Chevrolet’s $69 million per year jersey deal goes into effect.

4. New Orleans is expected to generate $185 million in direct spending from hosting Super Bowl XLVII, according to research conducted by PwC. The total is a 23% increase over last year’s game in Indianapolis, and a 17% increase over the last time the game was held in New Orleans in 2002.

5. Daytona International Speedway signed Green Earth Technologies to a three-year deal making the company’s G-Oil the racetrack’s official motor oil. The deal comes less than a year after Green Earth Technologies became NASCAR’s Green sponsor.

 

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

1. Speedway Motorsports is creating a high-end ticket package that gives buyers a premium experience at the 13 NASCAR race weekends at the company’s eight tracks. The “Chairman’s Club,” which sells for $10,000, provides access to suites, garage tours, pit access, and victory lane.

2. Sprint Airlines rolled out a series of web advertisements mocking Alex Rodriguez and MLB’s latest PED scandal. The ads promise “A-RODICULOUSLY GREAT TIME” and a guarantee to “Improve your travel performance! with our PEDs!” (price extravaganza deals).

3. The NFL is expected to invite Denver to bid for the Super Bowls between 2018-2020. However, before the city is seriously considered as a host, the NFL will evaluate next year’s game in New York, which will be the first cold-weather Super Bowl in a stadium without a retractable roof.

4. The NASL New York Cosmos, hoping to join MLS as the league’s 20th team, have proposed building a stadium near Belmont Park Race Track on Long Island. The plan could compete with MLS’s desire to build a new stadium in Flushing Meadows.

5. A NBA fan is trying to raise $1 million to entice LeBron James to participate in the league’s slam-dunk contest, an event James said he’d never compete in. Should he agree to participate, which is unlikely, the money would be donated to the LeBron James Family Foundation.




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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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