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Sunday, December 11, 2011

Stern's Affect Already Felt

 
I am not one to brag, but I must say, I told you so! In my last blog post “The Stern Affect”, I addressed the end of the National Basketball Association’s (NBA) current end to their lockout and how it may or may not affect the NBA moving forward. All of the rave in the past week in sports industry was that of excitement, fun, and finally, but as I mentioned in my previous post, there are more unknowns than known which brings more issues to question.  So after only one week of coming to an agreement, there is already a problem that has many fans, players, and officials confused, angry, and searching for answers. But in my opinion, this is the tip of the iceberg and the real problems may be in the near future. 
            If you have recently watched any sports newscast, seen any sports related tweet, or visited a sports website, you have seen the new problem I am referring to with the new NBA agreement. For those who may not be aware, the NBA, or shall I say the Stern Affect, has recently vetoed the trade proposal of All-Star Point Guard Chris Paul to the Lakers because it was conflicting with the new CBA’s agreement of superstar players all heading to big markets. The proposed trade was approved by all teams involved but not by the rest of the league so Commissioner David Stern acted swiftly and denied the approval of the trade. This has become a huge problem not only for the players but more importantly for the NBA and its already shaken reputation.
            So after all the excitement has calmed down, we see the Stern affect take place and damage what would have been considered one of the best backcourt tandems in the NBA. The players are now wondering what did they agree to because the last thing they wanted was more control in the hands of the Commissioner. The NBA now has to focus more attention on getting their public relations team on board with correcting the daunting image the NBA has now casted on its fans and players.
            Now the next big question is what are the other changes that can take place since this agreement has been signed. From this standpoint thus far, the only good news is that there will be games played on Christmas day, but in hindsight, was it worth the balance of control? Either way, the ink has dried and the trade has been denied so let the games begin. 

Check out these links below for more on the vetoed trade and other NBA news:
http://www.hoopsworld.com/chris-paul-veto-commisioner-power-or-collusion/
http://espn.go.com/espn/commentary/story/_/page/wilbon-111209/david-stern-nba-owners-look-vindictive-petty-veto-chris-paul-trade
http://www.nytimes.com/2011/12/09/sports/basketball/paul-set-to-join-lakers-as-part-of-3-team-deal.html

Sunday, December 4, 2011

The Stern Affect


The state of the National Basketball Association (NBA) is still up in the air when looking at the potential affects of a potential collective bargaining agreement. The news broke out that an agreement has been reached among the Players Association and the NBA owners and yet, there has not been any ink used to solidify the deal in order to get the NBA season underway. Many fans, reporters, and even players have gotten ahead of themselves during this time of the agreement because there is still a lot to be addressed amongst the potential deal. For example, the exact terms of player development, the financial dollar affect on each team and market, and the lasting affect of a shortened season are all possible issues that will need to be addressed in order to feel a sense of relief.
The NBA and its players is historically a sensitive league with more egos than a fashionista slumber party. Commissioner David Stern arguably has the biggest ego within the sports industry but for good reason. During Sterns tenure as commissioner of the NBA, he has increased ticket sales, broadcasting deals, and even brought a professional standard to the players and team executives. However, during the lockout, David Stern has taken many punches on the chin for his ego and his hard nose bargaining tactics. But with that said, the numbers do not lie for Sterns affect on the NBA which brings into question, how will the new agreement differ from Sterns previous affect compared to now? I will be interesting to see if the new agreement will lift the bad images from Sterns shadow and worsen the overall product of the NBA, or in turn, better the product and worsen the image of David Stern?
Like the previous lockout from the National Football League, the real questions of the agreement and the affects have yet to be addressed even when the celebration has already started. All of these questions will be addressed when fans realize the changes as the season goes on but in some cases, the answers may come when its too late.  

Sunday, November 20, 2011

Who's Rights?


Financial problems have not hid from many people, businesses, or even sports organizations during this tough economic time. But for the Los Angeles Dodgers, their problems only seem to manifest into bigger problems that will ultimately change their future for a long time. Throw in the world of media coverage and the positive and negative dimensions around it and you can have a disaster waiting to happen, or a disaster inside of another disaster. For example, team owner Frank McCourt filed for bankruptcy after not being able to pay the team’s players after losing half of his finances due to his recent divorce. So now, McCourt is ordered by the Major League Baseball Commissioner Bud Selig to sell the team in order to uphold the leagues agreement with its players and other owners for the betterment of the league as a whole. And to make things worse, or for our entertainment, more interesting, in recent news, the Dodgers are in the process of suing FOX over the sale of the team’s media rights.
The Dodgers feel that FOX is interfering with the teams bidding process of the broadcasting rights. This in turn means that the Dodgers are under the impression that FOX is using the Dodgers brand in order to make profit before the team’s status and ownership is determined. The lawsuit filed against FOX states: “Fox's efforts to take possession of property of the [Dodgers] estate and to exercise control over such property violate the automatic stay...are affecting and will continue to affect the estate adversely, including the efforts of the [Dodgers] estate to evaluate, market and potentially dispose of its existing and future media rights,” However, FOX feels as though their right to move forward is listed in the initial contract agreement between the Dodgers and FOX. “This is just the latest chapter in the current owner's ongoing scheme to avoid honoring his contractual obligations” stated FOX Vice President of Communications Chris Bellitti. This lawsuit calls for an interesting conclusion after everything is said and done because the state of the franchise is literally up in the air. Media rights are especially important in this case because it has an affect on the team’s future, selling price of the team, and the future potential profits that can be generated through media and broadcasting agreements. The next owner will want to have a huge say on the media rights in order to set their own revenue streams which is why potentially intervening with the current deal can cause many problems in both the short and long term.
            The lawsuit still has a lot of aspects that will be addressed as the case continues. Either way, it is a sad chapter in a historic franchise and its fans. In a sporting industry full of lockouts, holdouts, and scandals, this media rights and broadcasting issue stands in the way of a new future for the Los Angeles Dodgers. It is now more than just selling the franchise to the highest bidder because this issue will have to be resolved in order to efficiently get the right owner/owners the right deals for the buck. This just goes to show that media plays an important part of every franchise and their income statements.


Check out more articles below to get more information about this media rights issue:




References:
Fox News. (2011, November 16). Dodgers sue fox over sale of media rights read more: http://www.myfoxla.com/dpp/sports/dodgers-sue-fox-over-sale-of-media-rights-20111116
Palank, J. (2011, November 16). Dodgers sue fox over sale of media rights . Retrieved from http://online.wsj.com/article/SB10001424052970203699404577042220194179562.html

Sunday, November 13, 2011

A Real Lose For the Sports Industy


In recent years, there has been much conflict, controversy, and debate in the world of sports. From sex, money, and drugs, to contract breaching, player lockouts, and morals/ethics practices. The sports industry has had its share of headliners in the past five years. There are many stories that stand out, but for the most part, many share similar characteristics to one another. However, the recent controversy surrounding Penn State University and now former Head Football Coach Joe Paterno has its own unique source of controversy, debate, and moral wrongdoings that will affect the sports industry as a whole legally, morally, and lawfully in both the college and professional level.     
            After a harsh week of questions and debate about the future of Penn State University, and its football program, the week ended with the end of a coaching legend that will now forever be tarnished. Two top-level university officials were also fired and the university was left seeking answers for all that has transpired from a series crimes taken place on its campus for decades. The story broke out after allegations started swirling about former assistant head coach Jerry Sandusky sexually abusing young boys while employed at Penn State University. A state grand jury report alleged that Sandusky has over forty charges of sexually abusing young men while at the University. On one account, then graduate assistant Michael McQueary witnessed Sandusky in the football showers fondling a young male. McQueary informed then Head Coach Joe Paterno about what he had seen. Coach Paterno went to the University’s Athletic Director Tim Curly who along with the University’s Senior Vice President Gary Schultz pretty much buried this information in order to save the University’s image, brand, and reputation.  By not doing enough to save or prevent more incidents like this from occurring, Paterno, Schultz, and Curly all lost their jobs. Coach Paterno’s firing caused much debate and controversy. Following his firing, there were riots, vandalism crimes, and even a bomb threat for the team’s football game against Nebraska. Seems like these consequences can be attributed to a tort within the moral responsibilities of the University and its officials.
Unlike most sports controversies, this story turns your stomach and hits an emotional button of sympathy for the victims and another button disgust for the precautions and prevention methods not used by the adults in this story. There is no money scandal, illegal benefits, contract disputes, or banned drug use in this particular story, but it hits something harder than those controversial topics, the human rights of our youth and the affects they have within our sports world. Penn State has always been known as a prestigious university and with these shocking events now taking place, this university will now forever be tarnished by an ugly past that was never handled properly. As sports fans, it is easy to forget about the important things besides wins and losses, but in this case, no one wins, there is only loses to share for the University, its officials, and most importantly, the victims.

Check out these related articles to learn more about this sad story and its recent and long term affects:

http://online.wsj.com/article/SB10001424052970204190504577036924115215192.html

Sunday, October 30, 2011

Pretty Pennies for Ugly Results


In today’s sports industry, image and reputation is sometimes just as expensive or as valuable as the cost of marketing for an entire year. How you say? Well for example, consider Tiger Woods who has been the most marketed and top grossing athlete in the world. After his reputation hit an all time low from his sexual encounters with numerous women while being married, most of Woods’s sponsors, endorsements, and marketing companies dropped him and his services. These companies understood the importance an image and reputation and how their trademarks could potentially be represented in his actions. Their brand and trademark was on the line with the reputation Woods developed, and in order to protect what these companies have built, it became an expensive and risky to continue to have Woods represent them and their trademarks.
            We see these types of issues happening everywhere within the sports and business world. But in professional sports, playing within the league and/or team regulations in order to protect the brand and trademark is a must. There are more stipulations and rules that must be lived by in order to keep them from being suspended, fined, or even banned from the league. Protecting a leagues shield, property, or team logo comes first in the sports industry because their revenue is reliant on their reputation. Misusing a trademark can cause significant problems and potential income loss. And being that these leagues and professional teams draw so much attention and money, there are many potential trademark infringements suits due to outside businesses seeking to use these trademarks for illegal personal gain. “Trademark infringement occurs when one improperly uses another’s protected trademarks or uses a mark likely to cause confusion about the source of a product or service” (Conrad, 2006).
Courtesy of Americanhiphop.com
            Back in June of 2011, the National Football League was made aware of a few of their athletes in a promotional campaign for a party featuring alcohol, adult movie stars, and a three-day event for an adult-themed expo in Miami Florida. These athletes were in full uniform on the promotions ad and their names were listed as attendees to the event. As you could image, this is not the image the NFL wanted to be represented with and with the illegal use of the NFL trademark, the NFL had a potential case on their hands that needed to be addressed and dealt with for the betterment of its brand, league, and its financial implications. After touching base with the players represented in this promotion, it became aware that none of these players authorized their names, team logos, or the NFL shield to be used for the promotion of any such event. The company that used these names and trademarks illegally now had many potential legal issues of their own.
In this situation, the NFL acted appropriated in the matter by discussing the situation with the players first, then finding out the remaining facts. All too often the players can be blamed and punished first, before they have a chance to explain their sides of the story. Professional athletes are walking trademarks and with social media today, it is pretty difficult to protect your name and image without being exposed for someone else’s own personal financial gain. Chicago Bears spokesman Jim Christman explained, "many times players themselves are unaware of the violation and companies simply pull images and make ads not realizing they are in violation" (ESPNChicago.com 2011).  None of these players were disciplined, but their names will forever be connected to such illegal actions, which in this case, is more expensive then the actual punishment.
Protecting trademarks is not easy or cheap; just ask all of the companies that represented Tiger Woods or the sports industry’s public relations departments. These illegal actions are always a potential problem for the sports industry. Players, logos, and shields will always be protected at the highest cost in order to serve as a better image for the fans. So in conclusion, keeping and protecting a positive image and reputation is worth a pretty penny, but crossing these protected lines will cost an ugly dime that most should not be willing to pay.

Check out these articles to learn more about this trademark infringement:






References:

Conrad, M. (2006). The business of sports: A primer for journalist. New Jersey London: Lawrence Erlbaum Associates.

ESPNChicago.com. (2011, June 15). Nfl looks at risque ad. ESPN.cm, Retrieved from http://sports.espn.go.com/chicago/nfl/news/story?id=6664169

Sunday, October 23, 2011

In depth with Dorian


Winnipeg Blue Bombers defensive tackle Dorian Smith doesn’t shy away from hard work, tough decisions, and most recently, tough questions. But anyone at 6’2 265lbs probably wouldn’t be afraid of much either way. Growing up in Van Nuys California, Dorian’s outlook on life has always been to live for tomorrow all the while enjoy today, as long as he got a chance to play his favorite sport, baseball. But baseball was not in Dorian’s future, and that was ok with him since he took to the game of football so easily. In his senior year of high school, Dorian helped take his team to the football state championship and won. His journey after that is where his tough work and tough decision making formed. He first attended Alabama A&M, but decided that the university was not a good fit for him so he went to the College of The Desert Community College in order to gain another opportunity at a division-1 university. Dorian went on to earn a full ride at Oregon State University where he went on to gain two bowl game victories and First Team All Pac 10 awards. But after a brief stint with the Washington Redskins, Dorian found himself looking for his next opportunity to fulfill his dream of playing in the National Football League. Dorian earned a chance to play in the Canadian Football League for the Winnipeg Blue Bombers where he now resides as a top-notch defensive tackle.
In a recent interview with Dorian via over the phone, I had a chance to get some great insight on Dorian’s outlook on his past, future, and dreams. When asked him what motivated him the most in pursuing his dream, he simply responded by saying, “a better life”. I asked if he could please elaborate on his answer and he continued by stating, “my ultimate goal is to do what I love, all the while making a lot of money doing it.” Something I think anyone breathing would agree on. He went on to say that his dream is not just his, but his grandparents, mother, and friends dream for him. “I do this for everything I love, and it just so happens that I love money as well, hahaha”.
I continued the interview by asking Dorian when did he realize that playing professional football could become possible and he stated that he knew it was possible from his years in high school because he felt that no one could deny him of what he worked so hard for. “I work hard man, harder than most people I know because for every squat, bench, or cleans rep, it makes me that much more prepared for the next game.” But with all that said, I asked about the financial implications of being a professional athlete and what might be some of the huge misunderstandings. “We don’t make more than people think, well in Canada at least. For me, most of my money goes to prior school loans, car note, and wedding planning. So really, I live check to check. That’s why I work hard to get to the NFL so maybe I can be able to live a little more lavishly. And in Canada, the currency is a lot different too.” That led me to the next question of the different concerns within the international sports industry. “I wouldn’t say there are many concerns, but some of the issues are not being around family much. They can’t make it to many games. It would be cool to have more family out here to see me play but its kind of like college because all of my family was in California while I was in Oregon.”
After a quick hold as Dorian received a call from his agent, who lives in the United States, it lead me to my next question on his relationship with his agent. “Me and my agent are cool, I mean, since I’m in Canada, he doesn’t get any of my money which is good, but at the same time, we keep a good standing relationship so when an opportunity comes up in the NFL, he knows where I’m at physically and mentally. I like where I’m at right now because it keeps me hungry. My team is having a pretty good season and we still have a lot more football to play so it gives me a chance to keep improving. Sure there are challenges but that comes with any profession. I’m just glad I still have the opportunity to keep doing what I love.” Following that response, Dorian had to run to practice as they were preparing for a big game for first place. I thanked him for his time and wished him luck for the rest of the season, but before he hung up, he gave me some grief for not making the trip to go see him play yet. But we made a deal, one interview for one game visit so I guess I need to get my passport as soon as possible.
Knowing Dorian on a more personal level, I know that this interview was 100% genuine and honest. I have always respected his work ethic and desire to finish what he has started. His strong personality definitely stands out both on the field and off of it. And there is not a doubt in my mind that he will get another opportunity to play in the National Football league and do well. This was a great experience for me to learn more about my close friend, as well as gain more understating about the other professional leagues outside of the US

Sunday, October 16, 2011

Turning Social Media Up A Notch...

In today's world, any and everything ends with your presence in social media. This is particularly true for businesses, industry leaders, and athletes. So capitalizing on every avenue of social media is more as important as remembering ones name because if your not involved in it, no one will care who you are.

For over three weeks, I followed every avenue of ESPN's Adam Schefter in order to observe is social media tendencies and presence. I found Adam's presence in the social media world to be hot and cold but with so much room for improvements. His name is known and his work is amazing, but there are other ways to dominate his presence within the industry. Check out this video and see what I came up with!

Sunday, October 9, 2011

4th and Production Goals


In a down economy, some of the brightest minds are discovered by thinking outside of the box in order to not only survive, but to grow in the given circumstances. This is particularly true in the business world where the mighty dollar speaks the loudest in production. In the same light, the sports industry is all about the all mighty dollar, which is also affected drastically by a poor economy. But unlike daily expenses that are expendable for consumers in a down economy, the sports industry carries a different ball of attraction that can lure fans into spending their time and money on their favorite teams.
During this current time of a slow economy, many sports teams are doing whatever they can in order to stay afloat in production, as well as keep their fans entertained. By using more promotions, raffles, and even ticket financing, teams are taking advantage of every opportunity to make each game count on the income sheets.  
            Consistently bringing in regular and new fans is on every sports team’s priority list during this time. And when the economy picks back up, fans will not have to make as many money saving decisions but the way they are treated now by their favorite teams will most likely flow into their financial decisions later.  So in turn, teams are now more cautious to their fans situations. There has been great efforts and results in bringing fans to games during this time,  but there are some other ideas that can not only keep the loyal fans who attend regularly, but also, attract fans who are not consistent or have never even attended a sporting event.
I would consider that each team maximizes their profit by utilizing their biggest assets, their players. I believe that this has to be the biggest attraction tool for any sporting team in order to draw the interest of fans. Using the players in after game picture and autograph signings for fans who attended the game would only entice a fan to see the game as an investment and a great opportunity for a great experience. Sure, this probably wouldn’t be a great idea for the players who would rather go home immediately, but by putting a time window on the sessions, assigning 10-15 players per week to hold the signings, and allowing only one picture and/or autograph per fan per ticket would become very manageable for the players and team staff. Using former players as well would also serve to the benefit of this idea. This would generate sales in paraphernalia as well as work as a weekly public relations gold mine.
            Another tool to utilize to attract fans would be the use of community sponsorships. For example, allowing local high school teams, community centers, and small businesses to participate in the pregame and halftime entertainment. By doing this, it will attract the family members, friends, and employees to the games in order to support their loved ones and/or co-workers. And given the fact that halftime and pregame entertainment is not aired on television, it only allows the friends, family, and employees to see and support by actually having to go to the game.
            Tailgating is a huge part of every sporting event, and in some instances, it can cost teams money because fans are not spending as much money at concession stands. This is something that should not be taken away from fans due to its culture and experience of the game. I think it can be enhanced however to give fans a greater experience when attending games. By having teams throw tailgating parties for minimum 2 game ticket holders would persuade fans to purchase tickets in bundles, rather than single game purchases. Sponsoring the tailgating in a designated area where fans get to interact with team staff, former players, and cheerleaders all the while eating and drinking before the game would out do any personal tailgating experience. This would enhance the transactions from tailgating expenses to ticket purchases for fans that may see the idea of saving money by not purchasing their tailgating food and drink, but rather purchasing an extra ticket to another game in order to get a free tailgating experience.
The experience of every game, culture, and environment cannot be substituted with a couch, bar, or even a tailgating party. That said it has to be promoted accordingly so that fans can be guaranteed a unique experience each time they purchase a ticket. In a down economy, the dollar needs to have more value than just a purchasing tool; it has to also be a valued experience. Fans across America can relate to a passion that they are more willing to pay for, if and only if they are attracted with the right experiences from their purchases. All of the ideas above are geared towards increasing the experiences, all the while bringing more fans out to increase profit.
            Here are two articles that will further explain how the economy has had an important affect on the sports industry:


Sunday, October 2, 2011

Fantasy Gone Real


In the past decade, there have been many changes and big stories within the sports industry. I believe that fantasy football has had the biggest impact in the sports world, as well as being the biggest story within the past decade. Reason being, fantasy football has had an impact in more than one area of the sports industry. It has affected the daily life of fans, the social connection from players’, and even major television networks. All of these impacts ultimately affect many other avenues of the sports industry, which in turn brings the biggest impact into play, the almighty dollar.

Fantasy football is about to become a billion dollar industry, which is worth more than some professional teams in any sport. Fantasy football is seen everywhere, commercials, websites, and many television networks have their own fantasy football shows. What other story in this decade can say that? Fantasy football is not a temporary sport fling, but rather, it is here to stay and grow within the industry as its own entity.

Fans are now tuning in to not only watch or support their favorite teams, but also the players they have drafted for their respective fantasy leagues. This gives a wider range in television ratings for more NFL teams and their networks. Fantasy football gives fans feel a sense of ownership and pride towards the league and its players. Fans are making big bucks, websites are profiting, and the fantasy realm is thriving. Recent studies have even pointed out the major affect that fantasy football has had in the everyday workplace that has a link to production and the economy. This is such a big story that has not only affected sports fans and the sports industry, but it has affected the country as a whole as well.


 Its safe to say that in every professional sport, the amount of money invested, spent, and earned has gone up tremendously in comparison to years past. From lucrative player contracts, big dollar television deals, and higher ticket prices, the sports industry has been thriving in generating profit, while keeping fans from across the world entertained. And now, entertainment is no longer just sitting and watching, it has evolved into participating, analyzing, and benefiting. Fantasy football is the new era of entertainment and it is here to stay.

Check out these links below to see what the professionals are saying about Fantasy Football!



For other great sports business stories, Watch this CNBC video, “The Biggest Plays in Sports Business”: http://www.cnbc.com/id/15840232?video=1368367744

Friday, September 16, 2011

Letting The Numbers Speak


In any negotiation, there has to be a foundation set that both parties respect and understand in order to reach a mutual benefit. Leverage, tactics, and ultimatums can also play a huge part, but in a smooth negotiation where livelihoods are in the mix, sometimes just being honest and upfront is the best way to keep the bread on your table. This can come as a surprise to some in the sports industry because there is a lot of big money moving around and even worse, bigger egos. But not all players, owners, and front offices are the same because not all negotiations hold the same intentions.

I recently had an opportunity to interview a personal friend of mine as well as an up and coming star from the Canadian Football League, Dorian Smith, who has just recently signed a 4-year contract extension with the Winnipeg Blue Bombers. Dorian was a First Team All Pac-12 defensive end back in 2008 and has spent the past three seasons with the Blue Bombers as a dominant defensive tackle. After holding his own in 2009 where he racked up 47 tackles and eight quarterback sacks, while also recovering one fumble, it was time to renegotiate the terms of Dorian’s contract before another team demanded his services elsewhere.


Courtesy of www.bluebombers.com
When asked about the most important aspects to his negotiation, Dorian suggested a few key foundations and aspects that helped keep both sides honest and conscious of what both parties’ request and ideas were. The first and most important was appreciation. He explained that this helped set the level of respect in order to carry on the negotiations so that both parties knew that they collectively wanted mutual benefits to work in both the short term and long term once a potential deal was reached.

The second aspect, which had to come directly after the appreciation, was now taking all of the people involved out of the negotiation. He explained that emotions and feelings do not pay the bills and that he wanted his statistics and contributions to the team to speak for his negotiating. A message that is hard to argue with is a message worth arguing, which is why hip hop artist Jay-Z said it best, “Men lie, women lie, numbers don’t!”

 The third and final aspect Dorian touched on in his explanation of his contract extension was the using of leverage in order to tackle the biggest hurdle, his worth. He used the average amount of other players in the league that made more than he did at the same position, but with less statistical dominance as he in order to show exactly what he feels he deserved and why. He was setting himself up with a way to show his power within the negotiation by using key examples that only solidified his request as being one of the highest paid defensive tackles in the Canadian Football League.

In the end, Dorian was given the deal he wanted, and the team was happy they resigned their rising star defensive monster. But Dorian isn’t completely satisfied just yet. “I’m happy to be a Blue Bomber, but now its time to be a champion!”


Smith, D. (2011, Sept 13). Telephone interview.

Carter (Jay-Z), S. (2009). Kingdom Come [CD].

Winnipeg Blue Bombers, (2009). Winnipeg blue bombers roster. Retrieved from http://www.bluebombers.com/roster/show/id/2035