Sports Business Digest » Basketball

Hispanic Sport Viewers are on the Rise

Travis_Schluter — Wed, 23 May 2012 05:15:01 +0000

Mainly known for its popularity around the world and different cultures, soccer has been the primary sport that Hispanic watch. However with growing populations of a younger generation Spanish speakers have migrated to Basketball, Football, and even Nascar. The number of Hispanic sport viewers is on the rise as a recent poll suggests that 73,000 Spanish speakers watched the Daytona 500, a 50% increase from 20011. 492,000 Hispanics tuned in to view the NFL draft in April, which was almost a 100% increase since 2008. A recent sports report shows that 6.9 million Hispanics viewed most if not all of March Madness this year. The average age was 39, which was significantly lower than African Americans at 44 and 48 years of age for whites. These Sports welcome new comers and are more than excited to have a new rising crowd. With an increase in Hispanic players and viewers ticket sales are at an all time high. The NBA has even started airing certain commercials that are directed toward Hispanic Culture. It really doesn’t matter what color your skin is, or what language you speak… sports are sports, and as human beings we love entertainment and the desire to win. It is encouraging to see so many different cultures coming together to enjoy a common love.

Seattle is one step closer to a new arena, NBA franchise?

Emmett Jones — Thu, 17 May 2012 14:34:23 +0000

Is it time for the NBA to return to Seattle? The city's former team -- the Seattle Supersonics -- left the city for Oklahoma City after the 2007-2008 season, where they became the Thunder. The Sonics left primarily due to issues over acquiring a new stadium to replace the out dated Key Arena. Funding became an issue, demands weren't met in time...and the team left. But now, maybe its time for everyone to take a long look at the NBA returning to the city of Seattle. Yesterday, a group of people interested in building a new stadium in the city -- including Mayor Mike McGinn and hedge fund manager Chris Hansen, announced that they had completed a memorandum of understanding (MoU) towards the financing and building of a new sports arena. Per the MoU, the new arena would be located in Seattle's Sodo neighborhood. Hansen and his investment group are looking to put up nearly $300 million dollars to finance the new arena with both the city of Seattle and King County footing the rest of the bill. And that's where things get interesting. If Hansen is able to lure an NBA team to Seattle by the time the new arena is built, the City of Seattle will pay $120 million and the county will pick up a $5 million dollar tab. But, if Hansen is able to somehow lure an NBA team and an NHL team to Seattle, the city would pay the same amount, but the county would be on the hook for $80 million dollars instead of $5 million. Any public funding put forward by the city or the county is all contingent upon an NBA team actually coming to Seattle. Neither entity would be required to put up any funding until that time. With so much potential revenue and risk at stake, the council's will be going over the MoU with a fine-toothed comb,

“We will determine if municipal bonds for this project are an appropriate and wise commitment from the City,” Burgess wrote in a statement. “We will also explore any risks to the City’s financial stability and whether this investment provides sufficient public benefit. To the extent appropriate, we will do this work in coordination with the County Council’s concurrent review.” -- Seattle City Councilmember Tim Burgess (via Puget Sound Biz Journal)

Of course, lost in all of the hoopla surrounding the completed MoU, is the fact that Hansen actually needs a team. NBA Commissioner David Stern has already gone on record and said that the league is not looking to expand, so if Seattle is to have an NBA franchise, they would need an existing franchise to move.

San Franciso Plans to Take Back The Warriors

Travis_Schluter — Wed, 16 May 2012 16:54:42 +0000

The Golden State Warriors have been in the press the last few days. Reports indicate that city leaders in San Francisco are trying to seduce the NBA team to rejoin the Bay City. Mayor Ed Lee told Warriors executives that they would cater to their every need in hopes to bring the team to San Fran. in time for the first 2017 tip off. There are also talks of a new stadium that will be built if the team decides to return to its roots. This would bring hundreds of jobs to the area and boost city revenue, something San Francisco residents are ecstatic about. However Oakland mayor Jean Quan is not going to sit idly by while his city’s team is stolen out from under him. Quan sent the Warriors a letter stating that the city is proud to have the Golden State Warriors and Oakland is committed to keeping them in the East Bay. San Francisco leaders are confident they can woo the team back within the next five years. I guess all we can do is wait and see.

Jordan uses endorsement status to retain Bobcats sponsor

Emmett Jones — Fri, 11 May 2012 13:14:59 +0000

Michael Jordan isn't really a doctor...he just plays one on TV...commercials. His Airness found some time away from being the owner of the worst team in NBA history to film a playful commercial for Presbyterian Healthcare -- a collective of 13 hospitals in the Carolinas and Virginia area. Presbyterian, and their parent company Norvant, extended their sponsorship deal with the Bobcats back in March. A stipulation of the 10 year renewal included an endorsement deal with Jordan. This commercial is the first activation of Jordan's endorsement. Presbyterian Healthcare has already released a behind the scenes look at the commercial, with the full commercial airing on television soon, Charlotte ad agency Luquire George Andrews created the campaign which is a part of the Bobcats Level 23 program. Under the program, the Bobcats charge a premium to a sponsor for a sponsorship deal, with Jordan's endorsement tie in being the incentive to pay the premium. The Bobcats deal with Novant/Presbyterian Healthcare is the first such Level 23 initiative. For a team that would, and should struggle mightily with retaining sponsors and obtaining new streams of revenue, the Level 23 program sounds like a great idea. Jordan is the ultimate pitchman, and has been for years, so it shouldn't be too much of a stretch to sell companies on sponsorship with the Bobcats, or paying a premium to receive Jordan's endorsement. That being said, Jordan has kept his personal endorsement life and his role as an owner completely separate. The fact that he's decided to now use his celebrity to attract Bobcats sponsors may be telling of the Bobcat's financial situation.

The Big East Makes Big Changes

Travis_Schluter — Mon, 07 May 2012 20:47:21 +0000

After several weeks of rumor Big East Commissioner John Marinatto has resigned. The Big East conference announced his resignation early Monday morning. Marinatto made a large push before he resigned to expand the conference and stabilize it for the long haul. "Our recent expansion efforts have stabilized the conference for the long term, and we are likewise well positioned for our very important upcoming television negotiations," Marinatto said in the news release. "As a result, I felt this was the right time to step aside and to let someone else lead us through the next chapter of our evolution." Later the TV deal Marinatto was hoping to capture was voted down 12-4. Marinatto had been commissioner since July 2009 taking over for Mike Tranghese. Since Marinatto took over, the conference has lost Pittsburgh, Syracuse and West Virginia; an unacceptable loss by the Conference standards. Cbssports.com reported that Marinatto was asked to resign Sunday night. "You're never surprised in our business about things, but I would be less than honest to say I saw this coming," said Bill Bradshaw, Temple's athletic director. "Yes, in our business you're never surprised. But John's a first-class individual, straightforward. A good man. High integrity. A nice person. Whenever someone resigns, it's something you reflect." The Big East presidents have been pushing for a new leader with a different vision. Currently there is no announced permanent replacement; however Joseph Baily, a recruiting firm executive will be filling the Commissioner roll in Marinatto’s absence. "Joe is a proven leader who will do a terrific job guiding the conference through this time of transition," said Judy Genshaft, South Florida president and chair of the Big East, in the statement. "His experience as a manager and his knowledge of the sports industry make Joe uniquely qualified." The Conference has its eyes on someone who has a deep understanding of television contracts. Nick Carparelli, the Big East's senior associate commissioner, and Tim Pernetti, Rutgers athletics director are the most notable candidates to take over the job long term. With major changes in the BCS coming in the next season, it is uncertain whether The Big East will remain a top conference. While they are currently in negotiations for a significant bump in television revenue, it is uncertain how large the boost will actually be with the new changes. The Big East will begin spring meetings May 21 in Ponte Vedra Beach, Fla. hopefully to begin the rebuilding process this conference needs to regain its stature as a top competitor in the BCS.

NBA’s Bobcats launch season ticket “Pay-Per-Pick” promotion

Emmett Jones — Fri, 04 May 2012 16:44:19 +0000

Things were bad for the Charlotte Bobcats this year. Like 7-59 bad. Like worst season in NBA history bad. Like many calling Michael Jordan one of the worst owners in history bad. Things were bad, get the point? So bad in fact that the Bobcats know that they need to either increase demand in their product, the team doesn't have a lot going for it other than the likelihood of getting the #1 pick in June's NBA draft, or lower their price to the point that supply meets demand. Economics 101. Their solution? A Pay-The-Pick promotion. Under the promotion, the per game season ticket price will be equivalent to the Bobcats pick. Therefore, if the Bobcats were to pick 1st? Season tickets would cost $43. The Bobcats can pick no later than 4th (they have a 35.7% chance of picking fourth, compared to a 25% chance to receive the #1 pick) which means that season tickets at most would cost $172. Each fan will be limited to purchasing four season tickets. Now, granted, the seats are in the upper deck. And, the Bobcats did only have seven wins, as I mentioned earlier...but with the lowest season ticket currently being $344...who can pass up a sale...right? For those looking to get in on the Pay-The-Pick promotion, act fast. The promotion expires May 31st.

MWC to add San Jose St., Utah St. in 2013

Emmett Jones — Thu, 03 May 2012 12:56:43 +0000

The Mountain West Conference will make an announcement to add San Jose State and Utah State to its ranks for the 2013-14 season, on Friday, according to ESPN sources. The schools will replace departing San Diego State and Boise State. Both schools are leaving for the Big East in football next season -- SDSU and Boise State will join the Big West and the WAC, respectively, in all other sports. The MWC will now feature 10 teams for football season -- UNLV, New Mexico, Nevada, Fresno State, Wyoming, Colorado State, Air Force, Utah State, San Jose State, and Hawaii. -- and nine teams for basketball (Hawaii is football-only). With SJSU and Utah St. leaving the WAC, the conference is all but disintegrated. The conference would only have two football playing schools -- Idaho and New Mexico State -- and five teams in non-football sports -- Idaho, New Mexico State, Denver, Seattle, and the aforementioned Boise State, which is rumored to be already trying to get out of the move to the WAC. In a rather interesting development, WAC interim commissioner Jeff Hurd, speaking with knowledge of the likelihood of a SJSU/Utah State move, said that the conference is evaluating membership options, and that the WAC would maintain its history as a "pre-eminent Division I Conference." While anything is possible in the topsy-turvy world of Division I realignment, one has to wonder if Hurd's words were anything more than lip service.

New Orleans Hornets Pass the Bill

Travis_Schluter — Tue, 01 May 2012 20:32:25 +0000

Chairman of the Superdome Commission, Ron Forman; and Regional Vice President over the Superdome and the Arena, Doug Thornton; spent the better part of their Monday visiting with lawmakers in the Capitol. Their goal was to persuade the House to vote in favor of House Bill 1072 a tax rebate bill for the New Orleans Hornets, which had failed to pass last Wednesday with a vote of 49-60. An important amendment by Rep. Cameron Henry to shorten the time frame in which the state must pay the $3.65 million annual rate to 10 years from 15 years was a major compromise to ensure the bill would pass Monday’s afternoon vote. Another Amendment made by Rep. Jim Fannin, D-Jonesboro will require the Department of Economic Development to submit reports on the number of new jobs secured under the tax rebate. With a hefty $114 million annual impact the New Orleans Hornets average 1,600 direct and indirect jobs each and every year for The Big Easy. The total cost of the bill is set at $36.5 million, considerably less than the previously proposed $54.75 million. Even with the drop in price, opposing Rep. Sam Jones, D-Franklin thinks the money would better be spent upgrading some of the poor state-run hospitals in the area. “We are going to give the wealthiest man in this state another $36 million? ... What’s wrong with this picture?” Jones proposed an amendment to require the owner of the Saints, Tom Benson; to sign Quarterback Drew Brees to a five year contract to qualify the Hornets payments. "This is an easy one," Jones said. "I want our money to follow our quarterback.” Henry was quick to respond with acknowledgement that while re-signing Drew Brees would no doubt be good for the city, amending the Hornets tax rebate would not keep Brees with New Orleans Saints. Jones amendment was put to a vote and declined by 30-61. Late Monday afternoon after all amendments to the bill had been voted and agreed upon, House Bill 1072 passed with an overwhelming 60-41 vote. Passage of the bill helps ensure the Hornets stay in New Orleans through 2024, while creating thousands of new jobs in the surrounding area.

Brooklyn Nets unveil new logo

Emmett Jones — Mon, 30 Apr 2012 19:20:00 +0000

Hello Brooklyn. The Brooklyn Nets officially unveiled their new logo today. The logo, which sports a black and white color-scheme is a retro salute to the old New York subway system. Although it appears as if the new Nets apparel, in general, is steeped in tradition (see: Brooklyn Nets t-shirt with sneakers dangling from the letters). The logo, which makes the Nets the only team in the league with a black and white color scheme, was designed by minority team owner/rap legend, Jay-Z.

"The Brooklyn Nets logos are another step we've made to usher the organization into a new era," Jay-Z said in a statement. "The boldness of the designs demonstrate the confidence we have in our new direction. Along with our move to Brooklyn and a state-of-the-art arena, the new colors and logos are examples of our commitment to update and refine all aspects of the team."

The intro video for the new Brooklyn Nets, is below. [hana-flv-player video="http://sportsbusinessdigest.com/wp-content/uploads/2012/04/netshellobrooklynmov-2081484.flv" width="400" height="330" description="" player="4" autoload="true" autoplay="false" loop="false" autorewind="true" /] The Nets move to Brooklyn makes the team the boroughs first professional sports franchise since the Dodgers left the area in 1957. Nets apparel is currently available on Netsstore.com. The Nets will unveil their jerseys sometime in the fall. They finished their 35th, and last year, in New Jersey with a 22-44 record.

Nike designer adds insensitive insult to Rose injury

Emmett Jones — Mon, 30 Apr 2012 12:56:21 +0000

In this current age of "instant-media", you'd think people would know better by now. Think before you tweet. Especially since the internet doesn't have a delete button. Nike shoe designer Jason Petrie caused a mini-firestorm on twitter over the weekend, when he tweeted the following after the knee injury to Chicago Bulls superstar Derrick Rose, [blackbirdpie url="https://twitter.com/#!/sevenzro1/status/196363865188085760"] The first half of that tweet is in reference to Miami Heat superstar Lebron James. Petrie and other Nike designers designed Lebron's Elite 9 shoe which he wore during the Heat's playoff game on Saturday. "Pooh" is a nickname for Rose, which was given to him by his grandmother. Rose signed a reported $260M endorsement deal with Adidas in February. Clear insensitivity aside -- Petrie followed up his tweet with well-wishes for Rose, only after tweeting a delightful rant of since deleted "me against the world/I hate everyone who disagrees with me" tweets -- his actions once again bring to light how easily brands can be effected, either positively or negatively, by the world of "instant-media". Surely, Nike is in no danger of shutting down tomorrow -- its had a monopoly in the basketball shoe market for years now -- but if even one person begins to question Nike's integrity or the quality of their employees and decides to base their purchases off of Petrie's ill-conceived tweets, then its clearly to the company's detriment. Losing a repeat customer or even failing to sway a fringe customer is never good for business, regardless of the size of your profit margins. That being said, Nike went into PR mode on Sunday, issuing this statement,

"As a brand that is passionate about sport, we recognize the intense level of play that every athlete has engaged in during this basketball season and respect the dedication it takes to compete. One of our basketball footwear designers posted comments online that we feel are inappropriate, and he has since apologized. We wish anyone who is injured a speedy recovery."

In the age of Twitter, 140 characters can go a long way. Issuing a Sunday press release about a Saturday night tweet from a shoe designer, for example...its a little out of the ordinary. Apparently Nike, and other companies and sports teams who have personalities engaged in new media formats are continuing to suffer through the growing pains that accompany the usage of new media.