Showing posts with label Sports Business. Show all posts
Showing posts with label Sports Business. Show all posts

Tuesday, July 24, 2012

GUEST POST: Reaction to The NCAA Sanctions on Penn State


This piece was written by Dan Ryan. Dan is a graduate of Quinnipiac University, where he majored in marketing and minored in public relations. Currently, Dan is a sport industry professional and is earning his Masters in Sport Management from Drexel University. From the I-95 crew, thanks for writing Dan!

into storage it goes...
The Penn State scandal has taken a mind of its own. As many sports related scandals go, similar to shark infested waters, once there is one drop of blood the feeding frenzy begins. Cue the media, the public, all lining up to take their own personal shot at the crucified remains of the Penn State Football program. At what point is enough enough When does the persecution stop and the healing begin?

Without doubt, some of the penalties handed down to Penn State make sense in my opinion. The $60 million fine going to programs designed to deal with victims of child sexual abuse (and the same with the Big Ten's decision to deny Penn State its share). The five year probationary period. All are just in my eyes.

However, the remaining sanctions seem to be as accurate as buck shot. Why penalize people who are guilty of nothing, the coaches attempting to rebuild today and most of all the student-athletes, who are supposed to come first in all NCAA-related deliberations? Reducing the scholarships to a near crippling point, removing all postseason play, all actions directly penalizing the people in place today that will be responsible for picking up the carnage left by one individual's actions and several others poor judgement.

As for erasing 111 of Joe Paterno's wins from the Penn State and NCAA record books, in what way does that bring justice to the young men whose lives will never be the same because of the horrible acts committed by Sandusky? What competitive advantage did Penn State gain from failing to act on an assistant coach who was suspected of child
abuse? The NCAA has decided not only to join the witch hunt, but lead it by tearing down the legacy of a now defenseless man who single handedly made Happy Valley what it is today.

Penn State's decision to tear down the Paterno statue is just another example of "a panicked response to the public's understandable revulsion." I understand and believe what Joe did and what he failed to do is unforgivable, but he also did so much good for the university as a whole, not just their athletics. No matter how deep the new, frightened leaders of PSU try to bury Joe Pa's legacy, the good and the bad, he will always be first in everyone's mind when you step foot in Happy Valley. Why not embrace that and let the statue serve as a reminder. By tearing it down it makes everyone forget the past. What we need to do is remember the past, no matter how painful the memory is.

As for the current and future players, the question is asked, Would you stay? The way I see it is this entire scandal, all the public opinion placed on this school, comes down to the question "if it was me, what would I do?" Well the public came out in crowds proclaiming had it been them they would have stepped forward immediately, they would've stopped Sandusky if they were Mike Mcquery, if they were Joe Paterno, they would've always made the right decision and never made a mistake. The only problem is we are all human, and none of us are perfect. Many of these same people are now saying leave PSU and try to avoid the darkest period in college football history, you shouldn't suffer because of the actions committed by someone else.

If we have learned anything from this tragedy it should be not to run from the problems that stand in our path, but confront them and move past them right now. To the players who have a decision to make, I hope they see the mistake Joe made in attempting to tip toe around the allegations rather than face them head on. PSU Football was built on pride. The players who take the field at Beaver Stadium over the next four years are not playing for bowls or championships, nor are they playing for themselves. They are playing to restore a legacy that took 54 years to build and just 9 months reduce to rubble. These men are playing for the healing and forgiveness of others.

Sunday, July 8, 2012

Dollars & Sense - UFC 148 Recap



Chael Sonnen may be a world class mixed martial artist, but his mouth tends to steal the show more often than not.  UFC 148 was no different.  Sonnen’s fight with Anderson Silva was touted as one of the most anticipated fights in UFC history.  Anticipated being the key word. 
Chael’s mouth accomplished some impressive feats leading up to the fight.  It got the normally quiet and humble Anderson Silva to give a surprisingly quotable interview saying he was going to break Sonnen’s teeth.  It got Silva to throw a vicious and now infamous shoulder… at the weigh-ins.  It got Silva’s blood boiling so badly that the two didn’t even do the customary touching of gloves at the onset of the first round. 

Could Chael’s mouth finally have done some good for the fighter’s career in the octagon and throw the seldom-rattled Silva off his game?  Of course not.  Sonnen looked strong in the first round, probably taking it by a slight margin.  The second round was classic Silva.  About two minutes into the second round, referee Yves Lavigne stopped the fight after a dominating flurry of punches and knees.  Silva’s TKO of Sonnen proved that the only thing that may be able to stop Silva at this point is the 37 year olds age.
To give some credit to the American Gangster, Chael Sonnen has been able to point out two of Anderson Silva’s very few weaknesses in their two fights against each other.  1) Silva has the most trouble with wrestlers. It seems that if age doesn’t beat Silva first, a wrestler will.  2) It is possible to get under Silva’s skin (for better or worse).  Judging by the result of Saturday night’s fight, I wouldn’t advise the approach going forward. 
The Dollars
The difference between the appearance fees of the two fighters was a point that I found most interesting.  Naturally, Silva, the middleweight champion going into the fight, earned more than the challenger Chael Sonnen.  The disparity however, is what struck me as interesting.  Silva brought in $200,000 for showing up to the fight.  Sonnen’s contract seemed to be a bit more incentive laden with a $50,000 appearance fee and $50,000 bonus for winning the fight.  Of course, the $250,000 in appearance fees between the two pales in comparison to the reported $2.5 million that Tiger and Phil brought in at this weekend’s Greenbriar Classic (and they both missed the cut!). 

The total appearance fees between the main event fighters Silva and Sonnen weren't even the highest of the night.  Tito Ortiz and Forrest Griffin combined to bring in $375,000 in appearances fees for their battle and Tito Ortiz’s “final fight” ($250,000 went to Ortiz and $125,000 went to Griffin).  UFC 148 Fighter salary data is from mmajunkie.com.
The Sense
Within the past few years, UFC has been under some scrutiny from fans, fighters and the government from their relatively low fighter pay outs.  The business model that the UFC uses for paying their fighters is heavily structured around incentives.  Fighters fight for bonuses like Fight of the Night and KO of the Night.  Bonuses are typically capped around $70,000. 
The UFC will be an extremely interesting case study to follow into the future because they are blazing their own trail.  Mixed martial arts is most often compared to boxing, but that’s like comparing basketball and football because they are both played with balls.  Amazingly, the sport of mixed martial arts and the UFC are still growing in popularity.  However, with growing popularity of a sport comes growing popularity of fighters.  UFC is often complimented on its innovative social media strategies.  As fighters become more and more visible, there has to come a point that fighters want to capitalize big time on their popularity.  Appearance fees have to rise eventually.  I wonder, can the UFC business model absorb rising fighter dollar demands?
One thing is for sure, the UFC has put together an impressive global approach.  The top three fighters in the world are (arguably) Anderson Silva, Jon Jones, and Georges St. Pierre.  Their countries?  Brazil, USA, and Canada respectively.  Although Japan does not have a top fighter right now, the country loves the action just as much.  This diversity at the top levels makes global expansion a demand of the fans, not just a want of the UFC suits (would they be called suits? I’m pretty sure Dana White only wears sport coats). 
Going Forward
In boxing, a majority of the money is with the few top fighters in the world (let’s start a campaign Occupy Boxing).  In MMA, the money is dispersed relatively even.  Boxing and MMA are completely different in the respect that boxing is one perfected discipline, while MMA is a combination of disciplines.  I strongly believe that that inherent difference between boxing and MMA, is why the money will always stay relatively evenly dispersed.  Why?  It is tougher for one person to dominate long enough to make the type of name for them that would command $1 million plus appearance fees.  There are many more factors to success in mixed martial arts. 
Given the UFC’s global business approach, social media presence and their plethora of unique sponsorship/branding opportunities, the Zuffa-owned company is constantly growing.  Appearance fees for fighters will more than likely be growing in the next 3-5 years with the increasing visibility of the sport and personalities alike.  Even though there is the stiff competition that comes naturally to mixed martial arts, is that competition strong enough to retard the growth of fighter appearance fees so that the UFC can absorb the costs?  With the uniqueness of UFC’s product and the tremendous platform they provide in the sports business world, one would have to think so. 
Anderson Silva is one of the few fighters that have been able to build a big name for himself in the UFC.  He kept held onto his middleweight championship belt with a win over Chael Sonnen.  Keep in mind that Silva, possibly the best pound for pound fighter on the planet, did not even have the highest appearance fee of the UFC 148 fighters.  As the UFC evolves, the model for paying the fighters will evolve as well.  Right now the UFC uses contracts with heavy incentives.  When will the fighters’ cries for more guaranteed money be answered?  Only time will tell.
UFC 148 Business Notes
According to ESPN.com, UFC 148: Silva vs. Sonnen 2 grossed $6.5 in ticket sales which makes it the highest grossed UFC event at the MGM Grand Garden Arena and also puts the event among the top 35 boxing gross gates in the state of Nevada’s history. 
Another salary note, according to mmajunkie.com, Cung Le earned $150,000 for his appearance while his opponent, Patrick Cote earned $21,000 for his appearance with a $21,000 bonus for winning (he lost). 




Thursday, June 28, 2012

@DarrenRovell Moves To ESPN


Sweet derby hat, bro.
After six years with CNBC, sports business reporter and twitter extraordinaire Darren Rovell is heading back to Bristol (after originally making this switch in reverse in 2006).

Last week, news that Rovell was going back to ESPN emerged unexpectedly. It seemed to be mostly rumors, until Rovell later confirmed via his twitter account that he indeed signed a contract to join the Worldwide Leader In Sports. His contract is reported to guarantee him appearances on several ESPN shows, including SportsCenter, but it is unknown whether he will be hosting his own show (like he did at CNBC). Rovell will also be writing for ESPN.com and continuing his omnipresent tweeting (why does his twitter seem to work even when twitter is down!?…meanwhile I can’t sign on and get damn close to suffering a mental breakdown). 

In what was one of, if not the most, impressive “free agent” transactions among sports media (sorry Michelle Beadle, you'll be great on NBC though!), it’s odd that such a high-profile move was kept so secret. Then again, maybe it isn’t so surprising…because the best sports business reporter wasn’t reporting on the matter. To Rovell’s credit, he’s been among the top sports business reporters for several years. Not only via Sports Biz on CNBC, but via his infamous twitter account as well. Rovell has built an empire of followers, and seems to never miss a single bit of sports news (frankly, I don’t think the guy ever sleeps…seriously).

For ESPN and Darren Rovell, this is a great move. ESPN brings on one of the best in the business, and Darren Rovell gets to report on a variety of the most-viewed sports-news platforms. There is seemingly no match for Rovell’s innate ability to report on sports business, and there is no bigger sports platform that he could have joined. The move is simply a no-brainer. Well Done ESPN. Congratulations Darren.

Furthermore, Rovell and ABC News also struck up a new deal last week (I told you this guy never sleeps…I think he just plugs in at the same time he charges his phone). This contract is reported to include appearances on Nightline and Good Morning America...giving Rovell even more primetime slots to talk sports (and even more reasons to stay awake…dude has to have a V.I.P. Starbucks card).


For ABC News this deal makes a lot of sense. Like ESPN, ABC will get input from one of the best in the business and attract the correlating followers. For Rovell, it’s just another piece of his ever growing empire…a very lucrative empire.

So, I hope you love Darren Rovell! Because like him or not, you’re going to be seeing him an awful lot. 

Thursday, June 14, 2012

NBA vs NHL Playoff TV Ratings

A few weeks ago I wrote an article on the regular season fan attendance for the NBA and the NHL. With the conclusion of the NHL season and the NBA finals two games deep, I wanted to take a look at the viewership for the playoffs for each sport, specifically the championship series.

The Numbers


The National Hockey League saw very promising signs of good viewership in the playoffs.... until the final series. The first round averaged 936,000 viewers, this amount of viewers is the most the NHL has seen in the first round since 1994. The semifinals saw similar success. The average views increased to 1.32 million, the most on record since 1994. Overall in the first three rounds of the NHL playoffs there was an averaged of 1.09 million viewers which was the most in 15 years. Then came the Stanley Cup Final..... The Stanley Cup Final averaged 3.01 million viewers in 2012. Last year the Stanley Cup Final averaged 4.57 million viewers, a shocking 34% decrease.

The National Basketball Association has yet to see the full results of their playoffs, but so far they have been excellent. The Eastern Conference Finals set records for the most watched series in the history of the NBA. The series averaged over 10,000,000 viewers. Game one of the NBA Finals saw similar success with about 11,000,000 viewers. The NBA's success was helped by the variety of digital platforms from ESPN. Some of the platforms include ESPN.com and ESPN Mobile.

Reasoning


The only explanation for the NHL lack luster performance in viewers for the Stanley Cup Finals is the teams playing. Last year the Boston Bruins played the Vancouver Canucks in the finals. Fan support and passion for hockey must be high in Boston and Vancouver as opposed to this years New Jersey and Los Angeles. Although the Stanley Cup Finals did not turn out as the NHL may have wanted, they do have to be excited about the success they saw with the rest of the playoffs.





The NBA has seen success based on great teams, players, and series. The Eastern Conference Finals between the Boston Celtics and the Miami Heat featured superstars like Lebron James, Dwayne Wade, Chris Bosh (when healthy), Kevin Garnett, Paul Pierce and Rajon Rondo. Players in the Finals will be just as good with James, Wade, Bosh, Durant, Harden and Westbrook. If the players were not reason enough to watch this years playoffs, the series (specifically the Eastern Conference Finals) was spectacular. The seven game series in the Eastern Conference Finals saw everything a basketball fan could want in a series... including a little controversy.

Final Thought

I am not going to pretend to be a NHL fan.... at all, but the lack of attention for their championship amazes me. Not only was viewership down, but the 'Worldwide Leader in Sports' seemed to care very little about the Stanley Cup as well. I understand ESPN's reason for talking up the NBA Finals (televised on ABC) more than the Stanley Cup Finals (televised on NBC), but we are talking about the STANLEY CUP, a major championship for one of the four major sport leagues in the United States. At the conclusion of an NBA Finals game, ESPN can talk all night about the game. Every aspect of the game being analyzed for hours. At the conclusion of a Stanley Cup Finals game, they will talk about the game..... briefly.

 @dmrosen7


Statistics from: tvbythenumbers.com, espn.com

Monday, June 11, 2012

R.I.P. Boxing


On Saturday, June 9th, 2012, the sport of professional boxing lost every pulse of momentum and integrity it had. 

Timothy Bradley Jr. lost that fight. Bradley knows it, his managers know it, the World Boxing Organization knows it, the fans know it…apparently everyone except C.J Ross and Duane Ford know it (of the three official judges, Jerry Roth was the only one to score in favor of Manny Pacquiao, 115-113). 

Excuse me but, YEAH RIGHT! There’s not a snowball’s chance in hell that Pacquiao lost that fight. And, why was there a pre-determined rematch date? And, why was there already a mock poster designed and printed to promote the rematch? Seems like the rematch fight was destined to take place no matter what happend this weekend...

The decision from the judges Saturday night was repulsive. Granted, I’m not an avid boxing fan by any stretch of imagination, but I’m not blind either. Anyone who watched that fight knows that Manny Pacquiao was robbed, blatantly.

Since the fight, I haven’t been able to stop reading the millions of comments and opinions from boxing writers and fans (my twitter feed literally exploded, nothing else mattered. If you didn’t know any better, you wouldn’t have even know that Lebron got the Heat into the NBA Finals that same night). One comment in particular grabbed my attention, a tweet from boxing-great Lennox Lewis.

Taken directly from Lewis’ verified twitter account, “Pac won the fight. Bradley won the decision…Boxing lost its integrity and the fans lost confidence.”…I could not have said it better if I tried (actually, I can't say it better, I did try).

Lewis summed it up perfectly for all of us. Bradley won the decision, and that’s all he won. Pacquiao was absolutely dominant in the fight; landing more punches in 10 of the 12 rounds as the aggressor. In total, he outlanded Bradley 253 punches (34%) to 159 (%19) (check out the CompuBox Stats). In the sixth round Pacquiao even trapped Bradley in the corner and unloaded. Bradley was defeated, tired, looked baffled at times...as pop culture goes, he got "rocked." There was no question as to who won the fight...until the judges decision was announced.

Controversial decision? Not even close. Try a flat-out lie (I mean, come on, Bradley attended the post-fight press conference in a wheel chair). For those of you who say the fix was on, I can't provide any incriminating findings, but I’m not going to disagree with you.

Here’s a quote from Dan Rafael’s ESPN Boxing article on the fight, “Even Bradley's manager, Cameron Dunkin, had it 8-4 for Pacquiao.”

Here’s a quote from Bob Arum of Top Rank, taken from the same article…upon telling Bradley that he did very well, Arum said he got the following response, “I tried hard and I couldn’t beat the guy.”

And another quote from Bob Arum, who promotes both Pacquiao and Bradley, “Something like this is so outlandish, it's a death knell for the sport.”

And another, “You have these old f---- who don't know what the hell they're looking at. It's incompetence. Nobody who knows anything about boxing could have Bradley ahead in the fight."

Right, so, you know how I feel about it and it isn't good. Whoever believes that fight was on the up-and-up is objectively insane. Drop a line in the comments.

Friday, June 8, 2012

NASCAR.... On the Rise?


NASCAR.... On the Rise?


He looks ready for the challenge...


In recent news, NASCAR plans to overhaul their media operations. This move is being made to strengthen their leadership structure and to refocus business strategies. The man in charge of the overhaul is Steve Herbst, the current overseer of NASCAR's broadcasting and global media rights.



What is Being Done?

NASCAR is disbanding the NASCAR Media Group and they are reshaping it into a compact NASCAR productions. The NASCAR Media Group was only around the sport for four years. The NASCAR Media Group strives on innovation. In fact one of the principals that the NASCAR Media Group relied on was "Innovation at every turn." The innovation that NASCAR Media Group had previously yearned for will now be directed through the sanctioning body. The sanctioning body has decided to have a more involved role in what is produced and where it will be shown. The major example of the sanctioning body getting more involved will be seen at the beginning of 2013 when the sanctioning body will take operating control of the official Internet site. Under NASCAR's new look, NASCAR productions will give up the outside programming that they previously had. Previously, NASCAR productions produced programming with college sports. On the restructuring of NASCAR, NASCAR's CEO, Brian France, said, “Over the last two years, NASCAR has taken a number of steps and made significant investments to drive long-term growth and build value for industry stakeholders.” 

The Good.... And the Bad


NASCAR has involved itself in some initiatives that have and will promote their sport and acquire more fans. One initiative that will kick off this weekend at the Pocono 400 is the new relationship between NASCAR and Twitter. The relationship was built to enhance the fan experience. This new product that will be used is the first in any sport. 'Twitter.com/#NASCAR' will provide fans with tweets and pictures from insiders of NASCAR including drivers, pit crew members, families, media, NASCAR representatives, and fans themselves. The goal is to bring what goes on behind-the-scenes to life for the fans.


Now time for some bad....

At the conclusion of the FedEx 400 race in Dover, Delaware, Fox ended its NASCAR Sprint Cup racing coverage. All of the races on Fox averaged a 4.8 network rating and averaged 7.9 million viewers. These numbers were down from last year. Last year the networking rating was 4% higher at a 5.0 and they had 8.6 million viewers. Although the numbers were down this year they are still great in comparison to other sports. For example the NBA playoffs on ABC only average 5.6 million viewers per telecast.

Final Thought

NASCAR may be climbing in the sports world, that you have to respect. The ability of NASCAR to eliminate outside productions and to better streamline their sport will make reaching out to new markets more accessible. Although NASCAR witnessed a menial dip in viewership, all the positives outweigh the negatives. The best thing for NASCAR to do was forming a relationship with Twitter. Social media is new and it is great for attracting a younger audience. Speaking of Twitter......


@dmrosen7

Drew Rosen








Information from nascarmediagroup.com, motorsport.com, cbssports.com, jsonline.com

Thursday, June 7, 2012

Higher Marketability: Bryce Harper or Mike Trout