By Rick Horrow and Karla Swatek
January 23, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. The organization that manages Lucas Oil Stadium expects to lose money from hosting the Super Bowl. Indianapolis’s Capital Improvement Board is budgeting for $7.2 million in revenues against expenses of $8 million. The biggest expense is $4 million for extra police.
2. St. Louis Cardinals owner Bill DeWitt says “fiscal limitations” prevented the team from resigning star first baseman Albert Pujols. The Cardinals offered Pujols as much as $200 million over nine years. His deal with the Angels is for more than $250 million over 10 years.
3. The NCAA Board of Directors voted to delay implementation of a proposed $2,000 expense allowance for athletes. Schools had been against the plan because of Title IX concerns and the rule’s application to partial scholarship athletes. A working group will make a modified proposal to the board in April.
4. Adidas CEO Herbert Hainer claims the company didn’t renew its apparel deal with Liverpool FC because the EPL club was asking for more money than its recent performance warranted. The club, which hasn’t won an EPL title in 22 years, ended up signing a record deal with U.S.-based Warrior Sports.
5. World No. 1 golfer Luke Donald took to Twitter to vent his frustration about slow play, which he believes is “killing golf.” Donald blamed players and their caddies for the pace problems, adding there aren’t enough officials to enforce Tour rules about shot times.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. Super Bowl advertisements have generated a cumulative $1.72 billion over the last 10 years for networks that have aired the game, according to a study by Kanter Media. The five biggest spenders – A-B InBev, Pepsi, GM, Disney and Coke – have combined to spend $636 million.
2. The PGA Tour and Hyundai are close to signing a massive $100 million sponsorship deal. The agreement reportedly would include designation as the official car of the PGA Tour, a six-year extension of Hyundai’s title sponsor at Kapalua, a sponsorship of the Nationwide Tour and a sponsorship of the 2015 Presidents Cup in South Korea.
3. The United Kingdom’s ITV reached a two-year, $138.4 million extension to continue broadcasting the FA Cup and England’s home qualifying games for the 2014 Brazil World Cup. The deal includes online rights to live matches, highlights and clips.
4. The Texas Rangers signed Japanese pitching phenom Yu Darvish to a six-year, $60 million contract. Including the posting fee that was sent to Darvish’s Japanese team, the Rangers’ total investment in the 25-year-old tops $111 million.
5. Nissan extended its sponsorship of the Heisman Trophy Trust, becoming the organization’s “Premier Partner” through 2016. Per the deal, Nissan will promote the Heisman Trophy Award through activities including consumer sweepstakes, social media and other events.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. The Arizona Diamondbacks created an Oscars-like awards ceremony to honor its top sponsors. Current and former players gave out awards in categories including top new partner, community involvement and marketing activation. Nearly 300 people attended the gala.
2. The PGA Tour signed Allegheny Sports Medicine to a four-year sponsorship deal, making the orthopedic care and rehabilitation service its “Official Sports Medicine Sponsor.” As part of the deal, Alleghany will sponsor the Champions Tour Mobile Health and Fitness Program, which makes fitness and therapeutic trailers available to players at more than 70 tournaments throughout the season.
3. The NFL is close to approving a financing plan with $200 million in league-issued funding grants for the San Francisco 49ers’ proposed stadium. Santa Clara voters already approved plans to build the $1 billion-stadium, which is targeting a 2014 opening.
4. The MLS Chicago Fire finalized a deal to make Quaker Oats the team’s new jersey sponsor. The sponsorship is worth an estimated $8 million over three years. The Fire didn’t have a jersey sponsor last year after Best Buy decided against renewing.
5. Conference USA and the Mountain West Conference continue to work towards finalizing a merger. The conferences originally were only going to partner for football, but now are exploring joining for all sports. A merger could help the new conference qualify for an automatic BCS berth.