By Rick Horrow and Karla Swatek
June 18, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. As if losing the Stanley Cup wasn’t bad enough, the New Jersey Devils continue to have money problems. Banking and NHL officials expressed doubts that Devils owner Jeff Vanderbeek found an investor to help him meet a $77 million loan due at the end of the summer. One source said the team’s finances are so bad that the only way to rectify them is by filing for bankruptcy.
2. Rose Bowl officials said the stadium’s ongoing renovation would require more time and money than what was expected. The renovation plans face a $35 million funding gap, $23 million more than the initial estimate, and might not be finished until late 2014, a year longer than planned.
3. A campaign to force a public vote on a downtown arena for the Sacramento Kings is dead after organizers failed to get the 21,000 signatures necessary for a November ballot measure. Campaign organizers wouldn’t say how far short they fell from the required total.
4. The New York Yankees willlikely end its partnership with StubHubnext season. The team reportedly is considering developing its own ticket exchange system to restrict how many tickets fans can sell and how close to game time they can sell them. Yankees owner Hal Steinbrenner blames StubHub for the team’s declining attendance.
5. The Pittsburgh Steelers after 50 years ended its partnership with Coca-Cola, signing Pepsi as the team’s official soft drink sponsor. The Steelers-Coke relationship resulted in the iconic Joe Greene Super Bowl ad.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. Memphis Grizzlies owner Michael Heisley has agreed to sell the team to Ubiquiti Networks Founder & CEO Robert Pera for $350 million. Pera, who already has given Heisley an eight-figure deposit, intends to keep the team in Memphis.
2. The Glendale City Council approved a new 20-year, $325 million lease agreement for Jobing.com Arena, the last major hurdle in the sale of the Phoenix Coyotes to a group led by Greg Jamison. Jamison has agreed to purchase the Coyotes from the NHL for $170 million.
3. Procter & Gamble signed a multi-year sponsorship deal to make its Duracell brand the “trusted battery power of the NFL.” Duracell is one of several P&G lines to be partner with the NFL, joining Gillette, Head & Shoulders, Tide, and Vicks. Terms of the deal were not disclosed.
4. Subway signed deals to advertise in the local telecasts for all 29 U.S.-based MLB teams, according to John Ourand of SportsBusiness Journal. The one-year deal is valued in the mid-seven-figure range, and marks an increase in Subway’s media spending.
5. Florida State University’s athletics department was able to balance its 2011-12 and 2012-13 budgets after receiving a $1.6 million check from the ACC. Bowl allocations and travel reimbursements accounted for most of the money, which was more than what the school was expecting.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. Footwear and apparel brand Herstar signed a marketing partnership with the NBA to produce licensed high-end women’s dress shoes, according to Terry Lefton of SportsBusiness Journal. The NBA is the first sports league to partner with the company, which will create two shoes for each of the 30 teams.
2. University of Georgia President Michael Adams supports the idea of launching an SEC TV network, and he thinks a conference channel is overdue. The possibility of a SEC network that would show lower-profile football games and other events is on the table in ongoing rights negotiations with CBS and ESPN.
3. The Carolina Panthers last week held their first free, open-to-fans practice in June since the team was founded in 1995. The practice, which was the idea of head coach Ron Rivera, gave fans a chance to see the team six weeks earlier than usual.
4. The Texas Rangers this summer will host a Japanese youth baseball team for a game and a tour of Rangers Ballpark in Arlington. The Rangers’ foundation, pitcher Yu Darvish, and Japanese mobile gaming company Gloops are funding the trip.
5. The Pittsburgh Penguins are using Consol Energy Center’s hosting of this week’s NHL Draft as a way to promote the team. The Penguins are hosting a youth camp with several top prospects, a draft Fan Fest, and are setting up an artificial ice rink outside of the arena.