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Bust, Boom, and Hope: May 28, 2013


By Rick Horrow and Karla Swatek

May 28, 2013

“Bust”: Top Five Reasons the Armageddon is Near

1. EA Sports used Tim Tebow’s name in several plays in “NCAA Football 10” while the quarterback was still enrolled in school, according to Patrick Vint of SB Nation. EA and the NCAA, which are being sued for illegally using player likenesses, previously claimed no actual names were used in the game.

2. The NFL Players Association is looking into CAA’s relationship with Roc Nation Sports, the agency founded by Jay-Z. At issue is whether Jay-Z is violating the union’s “runner rule,” which dictates that only certified agents can recruit players. Jay-Z is not eligible to become a NFL agent because he didn’t graduate from an accredited university.

3. New York City’s Planning Commission denied Madison Square Garden’s request for an indefinite operating permit, paving the way for the arena’s possible relocation. The commission typically grants indefinite status, but only gave MSG a 15-year permit because it eventually wants to rebuild Penn Station.

4. The New York Yankees and New York Mets are seeing sizable decreases in TV ratings for their games. Yankees ratings are down 39% from the same point last season, while Mets ratings are off 22% from last year and are on pace for the lowest figure in broadcaster SNY’s eight-year history.

5. Sergio Garcia was condemned by TaylorMade-Adidas, his biggest sponsor, for a racial comment he made about Tiger Woods. TaylorMade-Adidas says it will continue to review the matter, leaving open the possibility of terminating the contract that pays Garcia $5 million annually.

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

1. The NFL and Microsoft unveiled a five-year, $400 million sponsorship deal that makes the computer software company the league’s official sideline technology sponsor. Per the deal, coaches will be allowed to use Surface tablets on the sideline for communications, play calling, and to view pictures. The two sides will also develop video games for Microsoft’s new Xbox One console.

2. LeBron James’ signature Nike shoe is the best selling of any NBA player by a 6-to-1 margin, according to data from SportsOneSource. Nike in 2012 generated $300 million in sales from James’ signature shoe, up 50% from sales in 2011. Kobe Bryant’s shoe was the next best seller at $50 million.

3. MLB corporate sponsor Chevrolet has purchased the title naming rights to this year’s Home Run Derby. The league had been seeking a new sponsor since State Farm, which held the rights since 2007, decided against renewing. The rights are valued in the mid-seven figures.

4. The American Athletic Conference will distribute 60% of Big East exit fees, estimated to be about $110 million, to incumbent schools, with the remaining 40% going to newcomers. The conference’s incumbent schools are Cincinnati, UConn, and USF.

5. PGA golfer and Oklahoma State alum Rickie Fowler pledged to match the first $100,000 donated to Oklahoma City tornado relief efforts by fans at last weekend’s PGA Tour Crowne Plaza Invitational. Fowler joins other Oklahoma athletes including Kevin Durant and Sam Bradford that have donated to victims.

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

1. Minor League Baseball is holding an online “#FoodFight” promotion, letting fans vote on their favorite ballpark dish for a chance to win a trip to the winning food’s stadium. MiLB is using the promotion as a way to generate data on potential customers.

2. The Sacramento Kings say they’ve received inquiries from companies interested in buying naming rights for the team’s proposed downtown arena. It’s unclear whether Sleep Train, the company with naming rights to the Kings’ current arena, is interested in the entitlement at the new venue.

3. The Detroit Lions and Ford Field are considering creating a new college bowl game to replace the Little Caesars Pizza Bowl, whose contract expires after this year. If the team and stadium launch a new game, the Little Caesars Bowl could look to nearby Comerica Park as its new home.

4. The NFL next year is moving the draft from late-April to mid-May because of a scheduling conflict at Radio City Music Hall. The league will explore the possibility of keeping the draft in May or holding the event in different cities beyond 2014.

5. Golfer Lee Westwood wants the European Tour to more often consult its top players and to create more prominent events. Westwood, who’s from the U.K. and currently plays on both the PGA and European Tours, is worried that there aren’t enough tournaments to retain European stars.




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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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