By Rick Horrow and Karla Swatek
November 21, 2011
“Bust”: Top Five Reasons the Armageddon is Near
1. Several companies reportedly have pulled their advertisements from remaining broadcasts of Penn State games in the aftermath of the school’s sex abuse scandal. Meanwhile, Sherwin-Williams took its logo off the banner that serves as the backdrop for most Penn State interviews.
2. A University of Maryland committee has recommended the school drop eight of its 27 varsity sports and cut athletic department administrative costs by 10% to close a budget shortfall. Among the teams at risk are men’s track, men’s and women’s swimming and diving, and aerobics.
3. Texas officials refuse to allocate $25 million in state money for a racetrack in Austin until they have a signed contract with Formula One. Austin is planning to host F1’s U.S. Grand Prix next season, but construction of the track has stopped because of a contract dispute between F1, promoters and developers.
4. MillerCoors will withhold all sponsorship payments to its NBA partners until the lockout concludes. NBA teams MillerCoors sponsors are the Milwaukee Bucks, Boston Celtics and Golden State Warriors. The company said sponsorship payments would be fulfilled when the labor dispute ends.
5. British bank Northern Rock ended its sponsorship deal with EPL club Newcastle United. The bank signed a four-year, $16 million deal last January to put its logo on Newcastle’s jerseys; however, the contract included an out-clause that Northern Rock exercised this season.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. MLB owners approved Drayton McLane’s $600 million sale of the Houston Astros to businessman Jim Crane. MLB dropped the purchase price from $680 million in exchange for the Astros relocating to the American League beginning in 2013.
2. The L.A. Galaxy signed a massive 10-year, $55 million TV rights deal with Time Warner Cable’s two Southern California regional sports networks. The team previously made less than $500,000 a season from its TV contract with Fox Sports West. The deal is worth more than MLS’ network deal with NBC.
3. Hyundai is returning to the Super Bowl, buying three minutes worth of commercials before and during the game. NBC reportedly is selling 30-second spots in the broadcast for $3.5 million each. Hyundai has advertised in every Super Bowl since 2008.
4. Healthcare company Novo Nordisk signed a one-year deal to be the primary sponsor of Chip Ganassi Racing’s No. 83 Izod IndyCar Series entry next season. Not coincidentally, diabetic Charlie Kimball, who Novo Nordisk will use to promote its insulin products, drives the No. 83.
5. Despite having the most expensive student season ticket price in the Pac-12 Conference, demand for University of Oregon football tickets far outnumbers supply, according to Kevin Goe of The Oregonian. A student season ticket for OU football costs $250 for one of only 1,500 available seats.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. NASCAR held its first-ever Green Summit last week before Ford Championship Weekend in Miami. The event focused on NASCAR’s accomplishments to date in the green space, plus what more can be done in the future. This was the first season NASCAR used ethanol fuel in cars.
2. The Buffalo Bills installed micro-wind turbines to help generate supplemental energy at Ralph Wilson Stadium. The Bills join NASCAR, MLB, the Philadelphia Eagles and the Pittsburgh Penguins in seeking ways to promote and utilize alternate energy sources.
3. The NFL next month will launch its first official monthly periodical, NFL Magazine. The magazine will include unique on-and-off the field commentary, plus regular columns by former QB Boomer Esiason and longtime reporter Andrea Kremer. NFL Magazine will print monthly.
4. The NCAA approved new measures geared towards improving student-athlete performance in the classroom. Beginning in 2015, freshman will need a minimum 2.3 high school GPA to participate in sports, up from the current 2.0 standard. Additionally, teams will need a four-year graduation rate of 50% to compete in the postseason.
5. Owners of the EPL club Tottenham Hotspur are taking the team off the Alternative Investment Market to help their chances of borrowing money to build a new stadium. The new stadium is expected to cost $630 million, of which $230 million could come from naming rights.