Sports Business Digest » College Football

Panel approves USC as LA Coliseum’s new lease-holder

Emmett Jones — Wed, 16 May 2012 12:29:14 +0000

According to an LA Times report, USC is on the cusp on taking over control of the Los Angeles Memorial Coliseum. The Coliseum, which has been in dire financial straits for a few years, will now be controlled by USC, thanks to an 8-1 vote in favor of the move by the Los Angeles Memorial Coliseum Commission. The Coliseum has been in the hands of the public, or at least public officials, for the last 88 years. Under the terms of the agreement, USC would be given a new lease and the right to control the Coliseum and its revenue, until 2054, when the Coliseum Commission is set to dissolve and have all of its assets transferred to the state of California. Industry experts, which placed the value of the stadium at somewhere in between $240 and $400 million, in 2005, have noted that the lease essentially gives USC all of the benefits of a stadium, without any of the responsibilities that accompany stadium ownership. (Ed. -- Except for a $1 million dollar annual rent payment to the state). Ever quick to jump on the fortuitous opportunity, USC plans on putting $70 million dollars worth of upgrades into the stadium, to help turn it into a world-class college facility. The decision to grant the lease to USC was surrounded by controversy in part because many feel that USC is receiving something for nothing

"Most of it is exclusively to benefit the university," said Parks, who is also an L.A. City Councilman. "We should have negotiated this with more interest to the community, and in the interest of the taxpayers."

That being said, the Coliseum is so cash-strapped -- its cash reserves will dwindle below $20,000 by the end of June -- that some wonder if the panel simply ran out of options. As an interesting aside, there is an NFL provision written into USC's lease agreement -- If needed, an NFL team will be allowed to use the stadium if necessary, with all gate-revenue going to USC. A good deal, indeed.

TicketsNow named official ticket reseller for Sugar Bowl, National Championship Game

Emmett Jones — Tue, 08 Nov 2011 13:30:13 +0000

TicketsNow, the resale marketplace of Ticketmaster, has been named the Official Resale Ticketing Partner for college football’s Sugar Bowl and National Championship game, both sponsored by Allstate.

Under the partnership agreement, fans looking to buy and or sell tickets for either the Sugar Bowl or the BCS National Championship Game will be directed to Ticketmaster marketplaces, where Ticketmaster validates a ticket’s authenticity and reissues the ticket with new barcodes for the buyer.

“Tickets to the Sugar Bowl and BCS National Championship Game are among the most sought after in all of college football,” said Mike Newquist, Business Development Director for TicketsNow. “TicketsNow is honored to be named the Official Ticket Resale Marketplace for these two important events, and we look forward to serving college football fans with the very best service and most secure ticketing technology available.” (via Press Release)

“It is extremely important to us that our fans have the ability to buy and sell tickets in the most reliable environment possible,” said Paul Hoolahan, CEO of the Allstate Sugar Bowl. “Ticketmaster and TicketsNow provide the industry’s most secure resale marketplace so that our fans can enjoy greater access to tickets – and complete peace of mind knowing their tickets have been electronically validated and reissued.”

The 2012 Allstate Sugar Bowl will be held January 3, 2012, at the Mercedes-Benz Superdome in New Orleans; the 2012 Allstate BCS National Championship Game will be held January 9, 2012, also at the Mercedes-Benz Superdome.

LSU-Alabama highest rated regular season football game since 2006

Emmett Jones — Sun, 06 Nov 2011 21:58:54 +0000

Sure, last night’s Alabama-LSU matchup may not have been the ‘Game of the Century’, but quite a few people took the time to watch it anyway.

The game earned an 11.9 overnight rating, making it the highest overnight rating for any regular season (non-bowl) college football game since #1 Ohio State/#2 Michigan in 2006 (13.7 Rating/ABC). The game was up 170% from last year’s Alabama/LSU game which pulled a 4.4/10 rating in metered markets.

For the sake of comparison, last night’s game was rated better than than five out of seven World Series games, only being bested by the Cardinals’ classic Game 6 win, and their deciding Game 7 victory. Last week’s Chargers-Chiefs Monday Night Football matchup pulled a 4.7 rating while broadcast on ESPN, and NBC’s Sunday Night Football pulled a 9.3 in last week’s Cowboys-Eagles matchup.

The game itself was the second highest rated regular season football game on CBS in metered markets since 1987.

The game also pulled in the largest digital audience ever for a college football game, pulling in 171K online and 43K on mobile devices. (via Eric Fisher)

(ratings via TVbyTheNumbers)

Conference USA, Mountain West Conference merge to form ‘super’ Conference

Emmett Jones — Sat, 15 Oct 2011 02:35:40 +0000

With all of the movement in college football recently, it seemed as if it was only a matter of time before two conferences merged together.

Conference USA has agreed to merge with the Mountain West Conference to form a new, yet to be named, 22-team football league. The newly established league, which may begin in 2012, would only apply to the respective schools football programs — they would retain their current structures in all other sports.

In a sport where teams are constantly moving — four teams have changed conferences in the last two months — the merged MWC/CUSA conference should not only provide stability, but should greatly improve the league’s chances at receiving an automatic qualifying BCS bid.

“I don’t want to put our members in a position that today we’re at 10, next year we might be at nine, two years from now at eight and continually having to add additional member institutions because it’s not as easy as exchanging one for one…”

“I’m just trying to create greater stability for our membership so we’re not talking about membership issues. The status quo of a 10-team football league with Hawaii as a football-only member was not acceptable, and we’re looking for a new dynamic.” — MWC Commissioner Craig Thompson

“Who knows what’s going to happen,” Banowsky said. “Some people think you should play in the (BCS Championship) game if you deserve it. Our conferences together will stand up as one conference, we will speak with a strong voice and we will expect our champion to be recognized.”(via ESPN)

The league, which will have a two-alignment and a championship game, will cover 16 different states and will provide a 16 television broadcast window.

CUSA currently has existing partnerships with Fox Sports, CBS Sports and ESPN, while MWC has partnerships with CBS Sports and Comcast/NBC Universal.

Scheduling should extreeeeemly fun.

The college football merry-go-round continues.

Sponsorship News: AFLAC and the Heisman Trophy

Emmett Jones — Tue, 24 May 2011 13:02:47 +0000

When you think of the Heisman Trophy, do you think of talking ducks and insurance companies? You will now. Aflac recently inked a deal with the Heisman Trust and is now an official sponsor of College Football's Heisman Trophy, in this, the 77th year of the Heisman.

"We know our accounts, agents, and brokers are passionate about the game, so we are excited and honored to team up with this coveted award which recognizes the most outstanding college football player in the U.S. and represents the pursuit of excellence," said Michael Zuna, senior vice president and Chief Marketing Officer at Aflac. "As the recognized leader in supplemental insurance, Aflac goes the distance offering insurance policies that help provide a safety net so people can focus on recovery, not financial stress – to help get our policyholders back in the game as soon as possible."

The partnership with the Heisman Trust isn't too far a stretch for Aflac, as their sponsored, in-game trivia questions have probably gained at least a little traction in the minds of college football fans. Heisman Trophy Trust president William Dockery on the deal,

"Both the Heisman Trophy and Aflac epitomize excellence and integrity in their respective fields. The Heisman Trophy Trust is pleased and proud to welcome Aflac to its elite fraternity of partners. Aflac's contribution will assist the Heisman Trust in funding its charitable mission."

For more information about Aflac and the sponsorship, check out their website.

Government explores BCS validity. Playoffs System still far off, unlikely.

Emmett Jones — Thu, 05 May 2011 14:34:16 +0000

Millions of college football fans and Utah Attorney General Mark Shurtleff may have reason to celebrate -- the BCS system may be in a bit of trouble. The Justice Department sent a letter to NCAA President Mark Emmert inquiring as to why a playoff system isn't used in college football, what steps have been taken to create a playoff system, and whether or not Emmert truly believes the BCS system serves the interests of the fans, schools, and players completely. The Justice Department inquiry is looking to obtain more information on the BCS system, and to determine whether or not the system creates an illegal monopoly amongst NCAA "power conferences", which would violate federal anti-trust law. The inquiry almost coincides with the actions of Utah AG Mark Shurtleff, who initially struck up the "BCS is illegal" mantle in 2008 -- when Utah was denied a spot in the National Championship game, despite going undefeated. Shurtleff is currently in the process of looking for other plaintiffs to join in an anti-trust law suit that he plans to file against the NCAA this summer. Meanwhile, the NCAA has declared that it will provide a timely response to the Justice Department's letter, whenever they receive it. Furthermore, they can't quite figure out why the government is worried about college football when there are larger world issues to reconcile,

"Goodness gracious, with all that's going on in the world right now and with national and state budgets being what they are, it seems like a waste of taxpayers' money to have the government looking into how college football games are played," he said. -- Bill Hancock, BCS Executive Director (via Fox Sports)

What Hancock has seemingly overlooked is that violating federal law is a crime, which is the type of thing the government investigates, and the NCAA is a multi-billion dollar a year industry, propped up largely by football programs, some of which are exceedingly wealthy (i.e. Penn State had a profit of $50 million in 2009). Is it balancing the budget? Of course not. On the other hand, its far more than a petty theft crime. Of course, the fact that the Justice Department is inquiring into the validity of the BCS system does not mean that the NCAA will see a playoff anytime soon. In fact, college football fans shouldn't get their hopes up; a playoff system is far a given. Why? No judge would be able to force the NCAA to institute a playoff, even if the NCAA loses an anti-trust lawsuit. At best, judges can award damages to the plaintiffs in the case, or issue an injunction -- this would prevent the NCAA from continuing with the BCS system (unless that's changed on appeal...right, NFL fans?), but would not force a playoff system into place. So what are we left with? We are left with a government inquiry into a college football system that may or may not violate federal law. If it does violate federal law, we could see a judge suggest a playoff system, but the NCAA could just as easily return to the bowl system that was in place before the BCS. And all of that assumes that Shurtleff can be victorious in an anti-trust lawsuit. Anti-trust law was specifically designed to protect consumers -- promoting competition amongst businesses prevents things like price fixing, cartels, etc. Does the BCS System damage consumers? More importantly, does it damage consumers more than the previous Bowl System? That is the analysis of the courts. Not whether or not Utah or Boise State was cheated because they went undefeated and were unable to play in the National Championship. The battle for a college football playoff still has quite a long way to go...uphill.

Under Armour wins BCS apparel battle, but Nike is still winning the war.

Emmett Jones — Tue, 11 Jan 2011 13:00:26 +0000

When is a loss still a win? [format] Last night, millions of viewers watched the Auburn Tigers squeeze out a win over the Oregon Ducks to win the BCS National Championship. What viewers also saw was a clash between two apparel companies; Nike and Under Armour. [/format] Oregon -- with their custom made Nike uniforms, and Nike chairman Phil Knight, their omnipresent benefactor, came up 3 points short to the Under Armour-clad Auburn Tigers led by Heisman winning QB Cam Newton. [format] Sounds like a victory for Under Armour and a loss for Nike, right? Well...not exactly. [/format] Under Armour received roughly $5.3 million in advertising exposure from the championship broadcast, $2 million more than Nike, with both teams receiving roughly 10 minutes of focused television exposure. (via Darren Rovell) They also managed to purchase every billboard outside of the University of Phoenix stadium to increase their presence for those fans on-site. The marketing plan, on its face, seems sound. Actually, it was impressive. Cam Newton was adorned in Under Armour logos, UA billboards were outside, and they received extended exposure on SportsCenter during the live interview session (see: Cam Newton and his Under Armour headband/fashionable choker). Moreover, its quite fortuitous that Under Armour happened to sponsor the team that eventually participated in the National Championship. UA hasn't thrown a ton of money into the collegiate marketplace -- University of South Carolina, University of Maryland, and Auburn -- ranking outside the top 25 in NCAA apparel licensees, yet they were able to land the 14th most popular team (Ed. Note -- not every team sells through the CLC. Teams like Ohio State and USC do their own licensing, but a large majority of the NCAA is represented)...and that team went on to win a National Championship. [format] Of course, don't throw a pity party for Nike, they're still doing just fine. [/format] To understand why, you have to remember that Nike still has a stranglehold on every business in which they participate. This is partially why they were so slow to move into the fast-growing "toning-shoe industry", why they were seemingly willing to let Tom Brady go (he later signed an equity deal with Under Armour), and why, while they're certainly watching the success of Under Armour with some interest, they are probably far from concerned. Nike is the company that stole the show away from Adidas at last year's World Cup, the company that was largely featured with Team USA basketball, and the company that signed an exclusive uniform/sideline apparel deal with the NFL last year. Is Under Armour making great strides? Of course. But Nike is still miles ahead of its younger competition. [format] Need proof? Nike brought in $20 billion in revenue from November 2009 to November 2010...Under Armour brought in a little under $1 billion in the same time span. [/format] Need more proof? The shirts and hats that the Auburn players were wearing after the game...Guess who makes those? [format] Even though Nike took a "hit" in the apparel battle, they're still clearly doing quite well in the war. [/format]

USC to receive 2-year post season ban

admin — Thu, 10 Jun 2010 12:00:19 +0000

Nothing says “legacy” like a post-season ban and loss of scholarships.

In a story that was first broke by ESPN’s Bruce Feldman, and then reported over at Sports by Brooks, USC will be given a two year post-season ban along with the loss of numerous scholarships.

The USC football program will receive a two-year postseason ban, a reduction in scholarships and a forfeiture of wins from at least the 2004 season when the NCAA releases its sanctions on Thursday, a source told ESPN’s Shelley Smith.

The Los Angeles Times reported the NCAA sanctions include the loss of more than 20 scholarships.

That in and of itself would be pretty bad, but, when you add to that the fact that USC just handed down self-imposed sanctions to its basketball team and relinquished any victories in between 2007-2008…then you end up with an institution who’s success has apparently been built on rule breaking.

Somewhere, all of this rule breaking is making Bill Belichick blush.

The football team’s problems seem to center around former star running back, Reggie Bush,

The school’s football team is under investigation for its dealing with Heisman Trophy-winning running back Reggie Bush, who played at the school from 2003 to ’05. If Bush is found retroactively ineligible, the Heisman Trust could strip him of his 2005 award.

The NCAA and investigators from the Pac-10 Conference have tried to determine whether Bush and his parents took improper benefits, including an alleged rent-free residence provided by a sports marketer. Bush has not met with NCAA and Pac-10 investigators and has repeatedly denied any wrongdoing.

USC chose to contest the allegation against the football program, hoping to overcome the perception of a lack of institutional control, which could result in significant sanctions, including scholarship reductions, TV and postseason bans, recruiting restrictions and probation. (via ESPN)

USC does have the right to appeal the decision, and it seems like they should, considering the steep consequences that would be levied on the school should the NCAA’s decision stand.

As for the current players? USC Seniors and Juniors should be able to be recruited by others pending approval from NCAA.

Two years of playing meaningless games with a large contingent of underclassmen.

It’s a pretty good time to be the Seattle Seahawks head coach, isn’t it Mr. Carroll?

Your newest member of the Big 10…Nebraska?

admin — Wed, 09 Jun 2010 12:00:16 +0000

Man…if you can’t trust the Big Ten Council of Presidents/Chancellors then who can you trust in this crazy world.

If you would remember, back in December the Big 10 released this statement,

The COP/C believes that the timing is right for the conference to once again conduct a thorough evaluation of options for conference structure and expansion. As a result, the commissioner was asked to provide recommendations for consideration by the COP/C over the next 12 to 18 months.

The COP/C understands that speculation about the conference is ongoing. The COP/C has asked the conference office to obtain, to the extent possible, information necessary to construct preliminary options and recommendations without engaging in formal discussions with leadership of other institutions. If and when such discussions become necessary the COP/C has instructed Commissioner James E. Delany to inform the Chair of the COP/C, Michigan State University President Lou Anna K. Simon, and then to notify the commissioner of the affected conference(s). Only after these notices have occurred will the Big Ten engage in formal expansion discussions with other institutions. This process will allow the Big Ten to evaluate options, while respecting peer conferences and their member institutions. No action by the COP/C is expected in the near term. No interim statements will be made by the Big Ten or the COP/C until after the COP/C receives the commissioner’s recommendations and the COP/C determines next steps, if any, in this area. (via Big 10)

Apparently, the Big Ten COP/C has a time machine or just a really poor ability to tell time because it looks like Nebraska may be joining the Big 10 before the week is out.

An executive at a Big 12 school relayed to The World-Herald on Tuesday that he expects Nebraska to become a member of the Big Ten as early as Friday.

NU Chancellor Harvey Perlman has declined all interviews about conference realignment and expansion. He is expected to address the topic with the Board of Regents at its Friday meeting in Lincoln.

Direct confirmation from Nebraska of a conference change for the Huskers wasn’t immediately available. Sources at two other Big 12 schools told The World-Herald that their athletic directors have instructed them to be ready by week’s end for a briefing on probable Big 12 changes. (via Omaha.com)

With various other changes, including potentially more additions to the Big 10 and with the Pac-10 courting the entire south division of the Big 12…college football may look completely different next season. Different in terms of parity, in terms of money between conferences, future television contracts and the like…

The college football you knew in 2009 may only be a memory by the time 2010 comes along…

UGA signs largest per year media rights deal in NCAA history

admin — Mon, 22 Jun 2009 18:05:48 +0000

Wow.

History was made last week when North Carolina based marketing company International Sports Properties, finalized a deal to pay the Georgia Athletics Department $92.8 million over the next eight years for marketing and media rights.

The deal is the largest per year payout in the history of college sports.

And what is International Sports Properties gaining in the media rights deal?

For its $92.8 million, which it will start paying in July, ISP will own the rights to assets such as Georgia’s corporate sponsorships, stadium signage and, for the first time, its Internet properties, radio network and coaches’ shows.

Previously, WSB held the rights to Georgia’s radio network and coaches’ shows, while JumpTV controlled its Web rights. WSB, which has broadcast Bulldogs games since the late 1930s, will be the flagship station for the duration of the eight-year deal. JumpTV will be involved next year and potentially further, Thomas said.

UGA’s previous deal, signed in 2005, was a 5 year deal only worth $14.1 million, but the added digital rights bundled in the new deal helped to drive up the price tag. Apparently, digital media rights of a popular SEC team will cost you about $9 million a year, if you adjust for inflation. Georgia’s number, while the highest per year, does still seem to be on par with other colleges,

In March, Ohio State signed a $110 million, 10-year marketing and media rights contract with IMG College, which was the richest per-year figure, according to the Knight Commission, an organization concerned with “academic and fiscal integrity in college sports. While the Ohio State contract is greater in total worth — and Nebraska’s (at $112.5 million for 13 years) is even bigger— Georgia’s annual average of $11.6 million is the highest.

Following Ohio State, Florida receives $10 million annually. Alabama and Texas both are paid about $9.4 million per year. Georgia Tech’s 10-year deal with ISP, signed in January, averages about $4.9 million annually.

It just goes to show that if you have a quality product and an extremely rabid fan base, people are willing to break open the piggy banks for your product. The problem that most teams/schools are having or had been having is that they were missing one of those two components.

The University of Georgia is obviously not one of those schools.

Atlanta Journal Constitution — UGA signs $92.8–million media rights deal