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Bust, Boom, and Hope: June 11, 2012


By Rick Horrow and Karla Swatek

June 11, 2012

“Bust”: Top Five Reasons the Armageddon is Near

1. Acer has decided against renewing its Olympics TOP sponsorship beyond this quadrennial. The company paid an estimated $100 million for the exclusive computing technology sponsorship rights to the 2010 Winter Olympics in Vancouver and this summer’s Olympics in London.

2. The St. Louis Convention and Visitors Commission rejected the Rams’ proposal for $700 million in Edward Jones Dome renovations. The city hopes to continue negotiations with the team before a June 15 deadline that triggers mandatory arbitration, but the two sides remain far apart.

3. Pro golfers are complaining about the PGA Tour’s cell phone policy after several disturbances during last weekend’s Memorial Tournament. Phil Mickelson was visibly frustrated by the number of spectators taking pictures, while Bubba Watson said playing hasn’t been fun since the Tour instituted the cell phone rule last March.

4. The Cleveland Indians won’t hold their annual Snow Days event at Progressive Field this winter following a disappointing turnout last year. In the past two winters, the Indians turned the stadium into a winter theme park, complete with an inner-tube hill, ice-skating, and hockey games.

5. The Charlotte Bobcats are offering a season-ticket plan where fans that buy seats for next season will get the 2013-14 season for free. The promotion has been heavily criticized for devaluing the Bobcats’ product and for providing no revenue in the second year.

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

1. To deal with the massive exodus from London in the three days after the Olympics, Heathrow Airport is building a temporary $31 million terminal to accommodate athlete departures. With 31 check-in desks and seven security lanes, athletes won’t have to wait more than 30 minutes.

2. Major League Baseball last week took its national TV rights to market, and interest from NBC Sports Network will drive the price well beyond the $700 million the league currently makes annually. Incumbent rights holders ESPN, Fox, and Turner remain interested in renewing their deals, but none reached an agreement with MLB before exclusive negotiating windows closed.

3. The Buffalo Bills signed JW Danforth as the team’s practice jersey sponsor and their official HVAC and plumbing provider. Terms of the deal weren’t disclosed, but the Bills’ previous practice jersey sponsorship with Sanyo cost an estimated $2.5 million annually.

4. ESPN generated a 7.9 overnight TV rating for last Sunday’s Miami Heat-Boston Celtics Game 4, marking the highest preliminary TV rating for a NBA playoff game on cable since records started being kept in 2003. According to ESPN, the game also set viewership records on ESPN3 and the WatchESPN app.

5. Tiger Woods’ late-round heroics at the Memorial Tournament resulted in the event’s best final round TV ratings since 2004. CBS averaged a 3.8 overnight rating for its coverage of Sunday’s final round, up from a 1.6 overnight rating for Steve Stricker’s win at the Memorial last year.

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

1. The NBA is considering revising its Olympics policy, restricting national team involvement to players under the age of 23. Several owners, concerned about star players getting little rest in between the NBA season ending and international competitions beginning, support the proposal.

2. For the first time in its 10-year history, the PGA Tour’s Deutsche Bank Championship is offering discounted grounds tickets to college students. Students with a valid college ID can purchase up to two tickets for $25 each, $30 off the regular ticket price.

3. The WNBA will commemorate the 40th anniversary of Title IX throughout the 2012 season. Plans include special Title IX-themed uniforms, which will feature "IX" on the front of the jerseys. Additionally, Adidas WNBA Title IX shirts will be available at NBAStore.com.

4. The Miami Dolphins unveiled a new marketing strategy that focuses on the team’s tradition and football rather than South Beach and celebrities. The Dolphins also will be appearing on HBO’s Hard Knocks this summer as a way to generate more publicity for the team.

5. The Atlanta Braves this weekend will host Family Field Day, an event where fans can learn baseball fundamentals from players and coaches at Turner Field. The promotion also includes a panel discussion with players, lunch, a ballpark tour, and tickets to Saturday night’s game.




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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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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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