The Future of NBA Basketball in Seattle October 29, 2009
Posted by Michael McCarthy in : Uncategorized , 6comments
In 2008, The Seattle Supersonics moved from Seattle to Oklahoma City in one of the more contentious sports issues in recent memory. The Seattle Supersonics Historical Preservation Society produced a documentary entitled Sonicsgate detailing the history of the Sonics, the issues that affected the team and the eventual move to Oklahoma City. The movie was very rich, providing a thorough account of the financial, legal and psychological aspects of the move. It is a must watch for those interested in sports business and want to learn the behind the scenes action of the Sonics move. There are countless topics that can be covered from the movie, but I will focus on the future of an NBA team in Seattle.
On the surface, a team in Seattle seems like a no-brainer. The city is passionate about its basketball, not only when it was winning (during the Payton-Kemp peak years) but also during the lean times, as evidenced by the consistent attendance of over 90% capacity (about 16,000 fans) of Key Arena. Also, business-wise, Seattle is the largest market without an NBA franchise.
However, two recent examples show that the political drama that played out may contribute to a lower attendance figure if a team were relocated there. Ideally, the Seattle fan base would see themselves like the Cleveland Browns fans, whose team moved to Baltimore in 1995. In Cleveland’s case, there was no public battle. Art Modell did a private deal with the city of Baltimore to move the team there, even with an initiative on the ballot for $175 million to refurbish the stadium yet to be voted on. Before the move, Cleveland’s attendance was about 70,000 per game, which is about 88% capacity. Now the Cleveland games are near full capacity, at about 73,200 per game.
However, a more apt example might be the Charlotte Hornets, who moved to New Orleans in 2002. In Charlotte, the beginning of the end started when owner George Shinn was accused of sexual assault. He admitted to two adulterous relationships, and the charges were dropped, but support for the team quickly diminished. A team that in the 1990’s nearly sold out every game (capacity about 23,000) struggled to attract fans, with attendance falling from 97% to 80% capacity in one year, then down to less than 50% by the end. Shinn demanded a new arena from the city of Charlotte in order to keep the team viable, but the city would only finance the arena if Shinn sold the team. The result of this battle was Shinn taking the Hornets to New Orleans. Two years later, the Bobcats began operations, but they have not been able to recover the attendance levels from their 1990’s success, with attendance being about 15,000 a game, or about 80% capacity. (Attendance figures from ESPN)
The Charlotte Bobcats example, with some similarities to the Sonics affair, will likely make some owner more reluctant to go to Seattle. Many NBA teams have potential to move to Seattle, including the Charlotte Bobcats, whose owner, Bob Johnson, is looking to sell the franchise due to mounting losses. However, even if a franchise moves there, as author Sherman Alexie so aptly states at the end of Sonicsgate, “If we get a team, it’s going to be somebody else’s team…I’m going to have to break the hearts of people just like me.” It is sad to think how this episode has tainted a great basketball culture in Seattle.
To continue this, I plan next week to look at public vs. privately financed stadiums, which is one of the issues at the heart of the Seattle Supersonics move.
Athletes Building Non-Profits October 28, 2009
Posted by cssr in : Alumni Posts , 6commentsBy, Scott Mittleman
An athlete with the best intentions of starting his or her own charity, may never receive the proper support to help get things off the ground.
Matthew Wade of Athletes Foundations discussed with me the current obstacles facing many athletes. It starts with their agent, who is not initially concerned with their clients work within the community. They want an athlete to be well liked and be a good citizen but not as concerned with them devoting their time and energy to building a non- profit. The need to involve the athlete in the community comes after something happens to possibly tarnish their image in the national media.
Athletes often don’t realize until later in their career that they want to be more involved in giving back. At this point, they aren’t sure about what resources to turn to or who to trust. From the start of their career, people are always hanging around athletes for selfish reasons and trying to reap both financial and social benefits.
Organizations such as Athlete Foundations are there to help steer an athlete through the process of starting a non-profit, organizing fundraising campaigns and just being the face of an organization. For companies to support and sponsor a non-profit run by an athlete, they want to see that athlete have an active role within the organization. They also want to see them investing their own money to help support the non-profit.
When an athlete dedicates themselves to their non-profit, it shows a true desire to support their cause and provides a legitimate base to build the non-profit. They need as much support and resources as possible to aid in this development.
I hope to offer a helping hand to both athletes and non-profits to benefit one another for a good cause. When a group of people work together for something beyond anything materialistic, only good things can happen.
Thanks for reading and check out my articles each Wednesday.
For some great athlete charities check out:
Warrick Dunn Foundation: http://www.warrickdunnfoundation.org/
Athletes for Hope: http://www.athletesforhope..org/
View my current Non-profit SF Fun Raisers at www.sffunraisers.org
NFL and Globalization October 26, 2009
Posted by pknox in : Uncategorized , 9commentsI know Mondays are supposed to be an alumni/faculty spotlight here at the UMass sport blog but I wanted to put that on hold to talk about what I feel is a pretty important topic. Yesterday I watched the annual NFL London game and I had tons of different thoughts going through my head. I was primarily upset that the Patriots had beat my Titans so badly the week before, but thankful they didn’t do it in front of an international audience. Mostly I thought about how far American Football has expanded outside the US border.
Like it or not, and this is my opinion, but Football is America’s game, not baseball or basketball. Football rules the American sports arena in fans, tv ratings, and most importantly, TV money. But one area that the NFL has failed to capture as well as the other markets, is the international market. Sure everyone watches the Super Bowl, but really only for the spectacle that is the ultimate in American indulgence. Throuhgout the 80′s and 90′s, the NFL enjoyed so much success that it didn’t really need to worry about the international market. But with changes in technology has come changes in the way sport leagues need to attack fans. The US market became saturated with everything football. The NFL created its own TV network, and I can watch NFL games anytime I want to.
The NFL had tried expanding outside the US with the occasional international (usually Mexico) preseason game and the now defunct NFL Europe, but by and large the international community has been completely uninterested in American football. Perhaps it is the cultural differences, or maybe people see football as the ultimate American sport and fot that they disapprove. But whatever the reasons, it seems the international sport fan has shunned American football much the same way we have shunned soccer.
But in watching yeserdays game, I am seeing things a bit differently. The NFL seems to have taken a slow, but steady approach to building the following of American Football abroad. With programs aimed at educating international fans (nflatino.com, etc.) the NFL may actually be able to chip away at the international market that the other American Sports Leagues have already attacked. Only time will tell…
Impact of NBA Referee Lockout October 22, 2009
Posted by Michael McCarthy in : Uncategorized , 320comments“The referee is going to be the most important person in the ring tonight besides the fighters”
-George Foreman
As of today, it appears the NBA referee lockout will be over, with reports that the two sides will finalize a deal Friday, much to the relief of Larry Brown, Lionel Hollins and Stan Van Gundy. The question is what has been learned, besides that NBA coaches do not like replacement refs?
There are two issues that strike me as important, one current and one future. The current item deals with the integrity of the game. The replacement referees brought to the forefront again the lack of faith in officiating in NBA games. In the wake of the Tim Donaghy scandal, the NBA has been scrutinized in public opinion as being a “rigged” league, as evidenced by a poll showing 37% of people believe the NBA alters the outcomes of games. Perceptions of “superstar” calls and allegedly favoring the larger markets are persistent stories (whether true or not) in the American consciousness regarding NBA basketball. The NBA needs to address this issue in order to gain more traction with the casual sport fan market. As a first step, the NBA has added to their web site a video rule book to be more transparent with fans, a good start in addressing this image problem.
The other issue is the upcoming players’ collective bargaining agreement renegotiation. With the referees, the NBA wanted to cut $3.2M in expenses from the referee budget, with the referees coming in at $2.5M in cuts (depending on the final details, not yet released). Either way, the fact the agreement will have substantial budget cuts lays the foundation for the player negotiations. In this economy, the league will expect the players to make concessions to control the league’s budget, most likely in player salaries. The NBA has already shown it is willing to impose a lockout (both in 1999 with the players and 2009 with the referees) if its demands are not met. A lockout could be a major problem for the players, since their financial strength is not solid. According to Sports Illustrated, 60% of former players are broke within 5 years of retirement, meaning the likelihood of players being able to withstand a lengthy lockout is low. Also, the league has a strong financial position, as evidenced by its receiving a $200 million extra line of credit during a recession, although you wonder how long lesser teams like the Hornets will be willing to go along with the lockout. Either way, if the negotiations almost caused the referees to miss the regular season, you have to expect that the future negotiations with players will be even more contentious.
Next week, I plan to move from a recent contentious issue to a past one. I plan to review the “Sonicsgate” documentary and look at it in the context of relocation of NBA franchises.
Future of Fantasy October 22, 2009
Posted by cssr in : Alumni Posts , 24commentsRelay Insights: The Reality of Fantasy Sports Participation
The start of the 2009 NFL season also marks the start of fantasy football
season, which for some devoted fans is the highlight of their football
experience.
The Fantasy Sports Trade Association estimates that nearly 30 million
people are playing fantasy sports across North America ? scanning the
waiver wire, analyzing injury reports, watching six games at once and
cheering for fourth-quarter scores by teams down by 28 points.
Most marketers may assume fantasy participants are the stereotypical
18-24, beer-guzzling, jersey-wearing, single male, and this perception may
be causing many brands to miss out on what is actually a much broader and
passionate audience.
Based on research provided by our friends at Scarborough Sports Marketing,
marketers may want to take a deeper look at engaging more with fantasy
sports participants after all.
According to Scarborough, 83.9% of fantasy participants are male; however,
women have increasingly become more interested in fantasy sports, with a
36% increase since 2007 ? bringing females to 16.1% of participants in
2009. And though 84.2% are white, Hispanics have been the fastest growing
ethnic group, increasing 27% since 2007.
If those figures aren?t surprising enough, 37.4% of fantasy participants
have a household income over $100,000 (61% more likely than a member of
the general population = 161 index), 38% have a college degree (147
index), most own their own home (73.2%) and 59.2% of participants are
married.
And while 50% of participants are ages 18-34 (164 index), the fastest
growing age demographic is the 60+ group who has increased 28% since 2007.
Meanwhile, what markets are the hotbeds for fantasy activity? The top 5
DMAs for fantasy sports participants (in order) might surprise you:
Milwaukee, St. Louis, Philadelphia, Pittsburgh, and Cincinnati.
So, if you are evaluating if fantasy participants are an attractive
audience for your brand, consider ways to go beyond online ad units to
engage this audience. The power of fantasy sports is in the connections
within the thousands of communities who play. Create ways to help them get
together, interact and share statistics and information, and you can score
big for your brand.
Checkout relayworldwide.com
Athletes and Nonprofits October 21, 2009
Posted by cssr in : Alumni Posts , 13commentsFirst off, I would like to say that I am thrilled to take part in the Sports Biz Blog as a Umass Alumni. Each Wednesday I plan to post an article, where I hope to help enlighten others, as well as educate myself with current happenings taking place in sports.
Since leaving Umass, I’ve moved across the country to San Francisco, where I’ve had a career in nonprofit fundraising. My first few posts will deal with cause marketing and how athletes and the sports world can help make a big difference in benefitting nonprofits.
Sports and nonprofits working together are not a new phenomenon. For years, athletes and leagues have been working closely with numerous nonprofits such as: The United Way, Boys and Girls Club, American Heart Association, American Cancer Society, and Habitat for Humanity, to name just a few of the hundreds that have received support.
Many athletes have their own nonprofits and devote a lot of time to community service. For as much as athletes contribute, the ability for them to start their own organizations can be quite difficult.
The reality is when an athlete wants to create his or her own nonprofit, they often run into many hurdles that prevent them from starting their own organization. Yes, it is easy to show up at events organized by their respective league or team, and lend their name to help generate attendees and donations. If an athlete wants his or her own organization, there is no one there to help with the actual game plan for success.
This led me to search out someone with knowledge of helping athletes start their own nonprofit. I found Matthew Wade, who runs Athlete Foundations in Seattle (www.athletefoundations.com), he has over a decade of experience working in sports and community relations. My next post I will go over my discussion with Matt about the current state of helping an athlete build their own nonprofit.
NFL Blackouts October 20, 2009
Posted by jghager in : Uncategorized , 14commentsThere was talk in the NFL offices of dropping the blackout policy because of the economy, with many cities being hit hard where fans would not have the disposable income to buy tickets. I find it hard to believe that if the NFL dropped the policy that they would have had much trouble selling out games in most NFL cities. As we noted, only a few of the cities look to be having blackout problems, with most of them being the cities hit hardest by the economic downturn. I think that, if anything, the NFL is losing more fans this year by not showing the games than they are gaining by trying to draw people to the stadium. There are certain times when the NFL needs to reevaluate its mission, and while ticket sales may be an important part of the revenue, the league is by no means in any trouble financially, and should put the fans first in this case. Keeping the blackout policy for this season is putting the league before the fans, and harming cities more that have already suffered during the current economic situation.
Random Thoughts:
Monday was one of the best playoff days I have ever seen. First, a great extra-inning game between the Yankees and Angels with the Angels taking their first win of the season. Then, we saw Jimmy Rollins hit a ninth-inning, two-run walk-off triple to put the Phillies up three games to one. I still think we’ll see Yankees-Phillies in the World Series. As a Red Sox fan, I’m always pulling for anyone who knocks-off New York.
The Patriots looked like the team from 2007. Five touchdowns from Brady in the second quarter alone and a 59-0 win. Too soon to say they’re back on track but definitely a good sign going forward. On the other side, how does a team returning 20 of 22 starters start the season winless? Something is wrong in Tennessee and I wouldn’t be surprised to start hearing rumblings of a coaching change.
Stephen Drew to the Red Sox? Do the Sox need another Drew on the team? Still, I like him as a shortstop and think that he could provide some stability that the Red Sox have needed in that position.
Students Try to Understand Why People Watch Sport and Nike? October 19, 2009
Posted by pknox in : Uncategorized , 8commentsEver sat and wondered why do we really watch sports? I mean really why we watch? Is it the thrill of the game? the comraderie with other fans? the escape from daily life? Or is it much deeper than that. Masters students in Dr. Todd Crosset’s Socio-Historical Foundations of Sport class have been exploring among other things we really watch sport. Recently, teams of students (including myself) created fake Nike commercials in an attempt to appeal to various audiences and explore various reasons we watch. Below you will find links to these commercials as well as comments from Dr. Crosset on why these commercials work. Let us know what you think.
Overview of the assignment – students are given one week to create an idea and produce a rough commercial or Ad (or series of commercials or ads). In the ad they MUST appropriate a “hard core” social world or sub world of sport (fan or athlete (e.g tailgating, ESPN junkies, sport betting, college football, high jumping)) to sell the product or line. The ad must appeal to a sophisticated audience. Students are asked to make liberal use of free floating signifiers, humor, irony, etc. to enhance the authenticity quotient of the brand.
This year’s crop was quite good. Here are my three favorites with a bit of commentary. Enjoy and let us know what you think of the ads. What works and what doesn’t.
1) Ping http://www.youtube.com/watch?v=xHdjIJA8nv8
This ad pulls you in. What’s going on? It is fun and funny. The joke music extends the joke. It plays on the distinctive sound of college baseball – ties the brand with college baseball. (arguably the apex of aluminum bat ball) and thus endears the brand to hard core fans and college baseball athletes—but more importantly to the economic buyers of baseball equipment for youth sport. This is an effective ad to move into a market where other brands have little media exposure.
2) The Pitcher. http://www.mediafire.com/?sharekey=97756820db10555fe5c3dee5769931eca5828ff61d7cd5c5c95965eaa7bc68bc
Counter posing instrumental music with still images of a work horse pitcher with voice over poetry read in an English (actually Aussie) accent is brilliant. The combination is unexpected but not jarring. The poetry adds a flow to the commercial made up of still images. Using stills invites the viewer to fill in the gaps and to read the images. The poetry and accent add a touch of class to a hard rock and hard throwing closer. For the super fan there is much “to get” — the relationship between Rivera and the music, the number 42 and the inside joke of Posada signaling for a cut fast ball. And the commercial is enjoyable even if you don’t get it on that level. And the final line of the poem endears the brand to all those who have played baseball on a high level and experienced “understanding too late”.
Who does it?You do It. http://www.youtube.com/watch?v=OUlDWQYSYZ0
The challenge here is that the creators don’t begin in the ad with customary/expected imagery of a transcendent ad. Usually the images reflect our best “aspirational” selves. Here they start with dark imagery and a rather sad sack of a character. But what pulls us in is the humor/puzzle of the change message on the TV and in the music. Additionally “Taking a walk on the wild side” refrain plays with the “Just do it” slogan. I find the deep breath imagery the most effective in getting viewers to embrace the lead. They could have just end there with the opening of the door to go out into the world to exercise. The ending is as challenging as the start. When our lead character “just does it” – he is joined by community –most transcendent ads embrace the individual struggle.
A Roadmap October 15, 2009
Posted by Michael McCarthy in : Uncategorized , 10comments“If I take one more step, it’ll be the farthest away from home I’ve ever been”
- Samwise Gamgee
If my friends knew I was writing a blog, they would laugh. I am the same person who a few years ago, when asked what “blog” stood for, replied “building log?” So I am looking forward to taking the time each week to explore blogging and hopefully contribute to making this a successful site.
My focus going forward will be on the business of basketball. Future topics could include the 2010 free agency, where franchise players like Lebron James and Dwyane Wade will be available. Or the upcoming collective bargaining agreement between the owners and players, which in this economy could make for a contentious negotiation. Or how NBA teams use advanced metrics, like PER, offensive and defensive ratings, or plus-minus, to make business decisions. With the rise of some great players and the complex economic issues facing many teams, the next few years should be a captivating time for NBA basketball.
Next week, my focus will likely be on the NBA referee strike. How will it affect the league this year and possibly years going forward? How does it affect the NBA’s reputation?
For me, this is a great way to learn about the business of basketball and hopefully, it will be helpful to others also. I will be writing every Thursday, so if you enjoy these topics, please come back and take in not only mine but the other bloggers’ articles as well.
Legal thoughts in Baseball October 14, 2009
Posted by jghager in : MLB , 9commentsIf you’ve been to a minor league baseball game recently you’ve probably seen some outrageous promotional scheme. Everyone is looking for the next Mike Veeck-esque idea to try to bring people into the ballpark. Whether it’s giving away a house or a free lifetime supply of burritos, every team wants to have that next creative idea.
But what happens if something goes wrong? Or if someone gets hurt? There are major liability issues involved in promotions, or even stadium construction in general that are created to help enhance the fan experience. Some Major League teams have built new stadiums with all sorts of original seating ideas, like the pool at Chase Field in Arizona. Numerous minor league parks have put in picnic and restaurant areas that fans can use for everything from company functions to birthday parties. I decided to look at a current case that took place at an Albuquerque Isotopes game that could have an effect on future fan injuries and the duty of care that teams owe to fans.
The case begins at Isotopes park at batting practice, as four-year old Emilio Crespin is seated with his parents in a picnic are located in fair territory down the left field line, behind the bullpen. Crespin was struck in the head with a ball off the bat of Dave Matranga of the New Orleans Zephys, fracturing young Crespin’s skull. The family was there as part of a little league party, and had just sat down to eat their food when the incident occurred. Crespin’s family filed a lawsuit against the Isotopes, the City of Albuquerque (owners of the stadium), Matranga and the Houston Astros (the major league affiliate of the Zephyrs).
The New Mexico Supreme Court has decided not to apply the “baseball rule” to the case, a rule that helps insulate teams who provide some protection for spectators, such as netting behind home plate, from lawsuits involving injuries to spectators. The trial court granted summary judgment in favor of all defendants. The plaintiff then appealed to the New Mexico Supreme Court, which affirmed summary judgment in favor of Matranga and the Houston Astros, but reversed the judgment originally in favor of Isotopes and the City of Albuquerque.
The picnic are that the plaintiff was sitting in was in fair territory, but was a good distance from the playing field itself. No protective netting is provided for the area, nor in any other area in the outfield stands. The only other protection is behind home plate where there is netting to protect the fans from balls fouled straight back. The reason for this is that fans sitting behind home plate have far less time to react to a foul ball than fans who are sitting more than 300 feet away in fair territory. Crespin claimed that the team and city breached their duty of care by failing to adequately protect spectators from fly balls, failing to warn, and failing to keep the premises safe for visitors. The family claimed that the team had arranged the tables in a way that made it so patrons could not see the field, and there was not protective netting or screen to protect spectators in the area.
The New Mexico Supreme Court reversed the decision of the trial court, saying that there is no public policy to protect baseball with the “baseball rule.” Also, assumption of risk when attending a game should be used as part of comparative negligence. In the past, when negligence was an all-or-nothing case, there was more of a reason to protect baseball teams from lawsuits involving spectator injury, but that is not true today. The result of the ruling will be a full trial on the merits involving the Isotopes and the City of Albuquerque.
This decision alone could impact a lot of baseball teams, both at the professional and minor league levels. Most fans who get hit by balls feel that there is no legal recourse because they assume the risk once they enter the stadium. However, since comparative negligence has become a more common standard in negligence cases, there could be more legal recourse for fans who do not feel they are adequately protected. Therefore, teams must be more conscience of their managerial decisions. Promotions and creative seating areas can create major liabilities that teams may not even realize. Even if the Isotopes win the case when it goes back to trial, they now know they must be more protective of fans sitting in the picnic area. The so-called normal protections normally provided by teams to fans are no longer enough to avoid litigation involving fan injuries.
The fact is, seating areas such as the picnic area do cause distractions from the field of play. Although fans should be aware that more balls than usual could head for that area during batting practice than a real game, it is still the duty of the team to warn the fans of the dangers, especially with fans as young as four-years old entering the area.
We all know that fans aren’t always paying attention to the game, and that cannot be prevented no matter what measure you take. However, when you invite fans to be distracted from the field by giving them amenities such as a pool or an outdoor restaurant, you must take action to make sure those fans are as safe as possible. The Isotopes situation could be simply fixed by netting that blocks the area. Sometimes, even though it may seem as though fans should be aware and responsible, it is much easier to take the necessary precautions, and avoid messy legal disputes.