By Rick Horrow and Karla Swatek
May 21, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. Several ACC schools reportedly are unhappy with the conference’s new 15-year, $3.6 billion TV deal with ESPN, which is heavily back loaded and comes with escalator provisions. The disappointing deal has prompted Florida State to publicly consider a move to the Big 12 Conference.
2. The St. Louis Convention and Visitors Commission and the NFL Rams are more than $575 million apart in their plans to renovate the Edward Jones Dome. The CVC proposed a $124 million project with the public subsidy capped at $60 million. On the other hand, the Rams want a $700 million renovation, but haven’t said how much, if any money, they’re willing to contribute.
3. The NHLPA is prepared to fight should NHL owners attempt to roll back player salaries in upcoming collective bargaining negotiations. Both the NFL and NBA in lockouts last year asked players to reduce their share of revenue. The NHL’s current labor agreement expires on September 15.
4. MLB fired Shyam Das, the arbitrator who overturned Ryan Braun’s 50-game steroid suspension earlier this year. A person with knowledge of the move said the Braun decision was one of several factors that led to Das’ firing. Das had served as chair of the MLB-MLBPA Arbitration Panel for nearly 13 years.
5. London Mayor Boris Johnson expressed doubts about legacy plans for the Olympic stadium, saying a decision about the building’s future is unlikely until after the 2012 London Games. Several EPL teams are vying to become the stadium’s permanent tenant after the Olympics.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. Minnesota Governor Mark Dayton officially signed off on a bill to build a new $975 million stadium for the Vikings in downtown Minneapolis on the site of the Metrodome. The stadium is expected to open in 2016. In the interim, the Vikings will play home games at the University of Minnesota.
2. The NHL BOG approved the sale of the St. Louis Blues to a group of investors led by minority owner Tom Stillman. The NHL also reached a tentative deal to sell the Phoenix Coyotes to former San Jose Sharks CEO Greg Jamison. The Blues sale is for $130 million, while the Coyotes sale is for $170 million.
3. For the third consecutive year, the University of Texas led all college athletic departments by generating a record $150 million. In total, ten programs generated more than $100 million in revenue. Kansas State had the biggest profit of any athletic department at $20 million.
4. The New York Times Co. sold its remaining stake in Fenway Sports Group, which includes the Boston Red Sox, Liverpool FC, and 50% of Roush Fenway Racing, for $63 million. In total, the Times made a $150 million profit on the 17.5% stake of Fenway Sports it purchased for $75 million in 2002.
5. USA Basketball added new sponsors to its growing portfolio. Burger King has been named the organization’s official quick serve restaurant, and will introduce commemorative cups to honor the Dream Team’s 20th anniversary. Meanwhile, Sunkist and 7UP becomes USA Basketball’s official soft drink partner.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. The Football Bowl Association reached a deal with FishBait Marketing to package marketing rights for 33 bowl games under the sole agency, according to Michael Smith of SportsBusiness Journal. FishBait’s goal is to sell six categories in 2012 and six categories in 2013. Only the Rose Bowl and Pinstripe Bowl decided against participating.
2. Despite moving to Santa Clara, the 49ers are collaborating with the city of San Francisco to bring Super Bowl 50 to the Bay Area. Partnering with San Francisco on the Super Bowl bid was part of an agreement allowing the 49ers to break their Candlestick Park lease in 2014, when their new stadium is expected to open.
3. The Chicago Cubs gave away Twitter-oriented baseball cards last week at their first Social Media Night. The six-card set featured the team’s most prominent tweeters, and the backs of the cards featured both traditional baseball statistics and Twitter statistics.
4. Arguably the most active marketing and biggest spending around the London Olympics this summer comes from the financial services sector. With four financial firms – Citi, Deloitte, TD Ameritrade, and Visa – having signed on as sponsors of the U.S. Olympic Committee, the companies have the added challenge of cutting through the clutter.
5. NHL playoff TV ratings could reach record highs if the league gets a cross-country Stanley Cup Final. The last time teams from the New York and Los Angeles media markets met for a major sports championship was 2003, when the New Jersey Devils beat the Anaheim Ducks.