“Bust”: Top Five Reasons the Armageddon is Near
1. Fantex is delaying its IPO of Arian Foster after the Houston Texans RB announced he was undergoing season-ending back surgery. Fantex has paid Foster $10 million for a 20% stake in his future earnings. The company cited the chance of injury as a significant risk when it initially unveiled its IPO plans.
2. The Ute Tribe Business Committee is demanding tuition waivers for all Ute tribal members who attend the University of Utah. The school only is allowed to use the Ute name and logo based on the tribe’s consent, and the tribe could decide against signing a new agreement if their demands aren’t met.
3. New York Yankees owner Hal Steinbrenner reiterated his intention to keep the team’s 2014 payroll below the $189 million luxury-tax threshold. If the Yankees can get under the tax next season, the team could save up to $100 million over the next two seasons by lowering their luxury-tax rate and qualifying for revenue sharing.
4. Action sports star Travis Pastrana is leaving NASCAR at season’s end after failing to secure enough sponsorship to race next year. NASCAR in 2011 recruited Pastrana to its Nationwide Series with the hopes of growing the sport’s 18-to-24-year-old male fan base.
5. Jobing.com is trying to get out of its arena naming rights deal with the Phoenix Coyotes, according to Terry Lefton of SportsBusiness Journal. The Coyotes will let Jobing.com out of their contract if they can find a better deal, but there are doubts as to how much sports marketing money is in the Phoenix region.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. The Atlanta Braves announced plans to build a new $672 million stadium in Cobb County, Georgia, for when their Turner Field lease expires in 2016. Though financing details have yet to be released, the Braves are expected to be significant investors in the new stadium project.
2. NHL Commissioner Gary Bettman is working to finalize the league’s Canadian TV contracts by next month’s board of governors meetings. Bettman reportedly is determined to increase the annual TV revenue to $360 million annually, up from the $170 million per year the league currently receives.
3. The Jacksonville City Council has approved a $63 million renovation project for EverBank Field, which will include the installation of a 300-foot video board in each end zone. The city will pay $43 million by using hotel bed taxes, while Jaguars owner Shahid Khan will fund the remaining $20 million.
4. The Universities of Louisville and Memphis have reached deals to leave their respective conferences in time for the 2014 season. Louisville has agreed to pay the AAC $11 million for its move to the ACC, while Memphis won’t pay an exit fee to CUSA as part of a deal to forgo earned basketball tournament credits.
5. Mortgage lender Quicken Loans has signed on to be the new title sponsor of the November NASCAR Sprint Cup Series race at Phoenix International Raceway beginning next year. Though financial terms weren’t disclosed, NASCAR title sponsorships typically sell for $1 million. Quicken also is the title sponsor of the June Sprint Cup race at Michigan International Speedway.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. Universities across the country increasingly are selling fragrances inspired by the school’s colors, mascot, and flora. To date, 17 schools have partnered with Masik Collegiate Fragrances, which gives schools a royalty payment for every bottle of licensed fragrance sold.
2. Minnesota Vikings TE Kyle Rudolph signed a one-year endorsement deal with Hamburger Helper. Rudolph was nicknamed “Hamburger Helper Hands” by teammates because he wears white gloves that resemble the company’s mascot. As part of the deal, Rudolph’s mom helped develop Hamburger Helper recipes.
3. MLB teams gave away bobbleheads more than any other promotion during the 2013 season, according to research conducted by SportsBusiness Journal. All told, 29 teams distributed more than 2.5 million bobbleheads on the year. T-shirts were the second biggest gameday giveaway.
4. NHL GMs are considering extending the length of the overtime period from five to ten minutes in order to minimize the number of games that end with a shootout. GMs, players, and coaches reportedly are unhappy with the amount of games that end with the gimmick.
5. Sherwin-Williams has expanded its sponsorship deal with NASCAR to include the designation as the sanctioning body’s official automotive paint. The deal comes a few months after the company became NASCAR’s official paint. Eleven NASCAR race teams currently use Sherwin-Williams products.