By Rick Horrow and Karla Swatek
October 22, 2012
“Bust”: Top Five Reasons the Armageddon is Near
1. The plan to add sponsor patches to NBA jerseys is at least temporarily on hold after owners couldn’t agree how to divide the profits. The news doesn’t necessarily kill jersey sponsorships altogether, but it’s unlikely a resolution will be found before the 2013-14 season.
2. Republican Senator Tom Coburn of Oklahoma is unhappy about the NFL’s non-profit, tax-exempt status, and he included the league on his list of 100 examples of government waste. Despite the NFL making $9 billion last year, the league is considered a non-profit because its revenue is distributed to teams, who then pay their own taxes.
3. The NCAA has pulled five of its championships from New Jersey after the state passed regulations for sports betting at horse tracks at Atlantic City casinos. NCAA rules don’t allow any championships to be held in states that have legal sports gambling. New Jersey has filed a lawsuit challenging the ban.
4. Children’s Miracle Network Hospitals will not renew its title sponsorship of the PGA Tour Fall Series event in Orlando when the current deal expires next month. CMNH has title-sponsored the tournament since 2007.
5. Danica Patrick’s future as Go Daddy’s primary spokesperson is in jeopardy, as the company has hired a new ad agency and given it the freedom to remove Patrick from its Super Bowl plans. Patrick has failed to find success in both NASCAR and the IndyCar Series. Her Go Daddy contract runs through 2013.
“Boom”: Top Five Reasons that Prosperity is Right Around the Corner
1. Fox and NASCAR agreed to an eight-year extension of their TV deal, giving the network rights to air the Daytona 500 and 12 other Sprint Cup Series races each year through 2022. The deal is valued at $2.4 billion, up from Fox’ current eight-year, $1.76 billion deal.
2. The SEC is working with CBS and ESPN to renegotiate its TV rights deals. Sources predict the SEC’s new agreements could top $300 million annually, a significant increase from the $205 million per year the conference currently receives. The SEC added Missouri and Texas A&M this school year.
3. The city of Seattle and King County formally signed off on investor Chris Hansen’s plan to build a $490 million arena, which will use $200 million of public money. Arena construction will begin once Hansen secures a NBA team he can relocate to Seattle.
4. NFL owners unanimously approved Jimmy Haslam’s $1 billion purchase of the Cleveland Browns from Randy Lerner. Haslam plans to buy a house near Cleveland so he can be active in the team’s operations. He’s already named highly respected former Philadelphia Eagles president Joe Banner as CEO.
5. The PGA Tour saw sharp viewership increases across all of its TV partners during the 2012 season. NBC saw the biggest year-over-year growth, averaging 3.4 million viewers per telecast, up 45% from 2011 and marking the network’s best average since its current PGA contract began in 2007.
“Hope”: Top Five Reasons That Creativity is the Key to Economic Survival
1. Phil Mickelson was the halftime entertainments at last week’s San Diego Chargers game, hitting a chip shot across the Qualcomm Stadium field for a chance to win $1 million for charity. Though Mickelson missed the grand prize target, his sponsor, KPMG, donated $50,000 to First Book, a foundation that buys books for underprivileged kids.
2. The NFL is allowing the Jacksonville Jaguars to sell sponsorships in the United Kingdom, a move believed to be the first time a U.S. sports team has been granted significant overseas sales rights, according to Daniel Kaplan of SportsBusiness Journal. Beginning next season, the Jaguars will play one game in London each year through 2016.
3. NASCAR in mid-2013 will debut its first official slot machine in Las Vegas casinos. The game features NASCAR drivers including Dale Earnhardt Jr. and Jeff Gordon, with bettors choosing which driver they want to compete as in a virtual race. NASCAR liked the slots idea for its unique way to engage fans.
4. NCAA sponsor Northwestern Mutual is auctioning off pieces of this year’s Final Four floor for charity. Northwestern bought the floor from the NCAA a few days after Kentucky won the national championship. With all pieces of the floor signed by Kentucky coach John Calipari, the auction could raise $500,000.
5. The Miami Heat’s trip to China was successful for more players than just stars Lebron James and Dwyane Wade. While there, Heat benchwarmers Terrel Harris and Dexter Pittman signed endorsement deals with Chinese shoe and apparel company Peak, which also is a Heat sponsor.