Jets Clear Critical Hurdle for Stadium

The New York jets won the first major battle with Cablevision today as the Metropolitan Transit Board unanimously voted to accept the Jets bid of $720 million and award the Jets the rights to build a new stadium on the westside of Manhattan. While not unexpected, it was a blow to the efforts of Cablevision to stop construction of the stadium, which will compete with Cablevision's Madison Square Garden for conventions and trade shows. The MTA rejected Cablevision's $760 million bid calling it "not credible". For a full report, see here.

While important, this is only the first of many battles to come. The decision by the MTA will undoubtedly be litigated not only by Cablevision but by other opponents of the stadium and of Mayor Bloomberg. Litigation has already been threatened by an group of transit riders organized by one of Ralph Nader's old public interest organizations. Some unions have also opposed the stadium plan although the Jets have enlisted the support of several of the building trades. Political fights remain to be fought in Albany as well. The state funding for the stadium has not been secured although the project has the support of Governor Pataki. Today was an important win but the fight is far from over.

Final Four Frenzy

Final Four Frenzy has hit St. Louis as the hotels and restaurants are prepared to cash in on the thousands of fans, coaches and media about to descend on the Gateway City. There are almost no hotel rooms to be found within at least a 100 mile radius of the Arch and the few that are available are requiring a minimum of a three night stay, paid in advance. Ticket brokers are getting $1,000 and up for upper level seats, which are far from desirable in a dome like the Edward Jones Dome, for just Saturday's games. Participant schools are using the Final Four as a way to reward faithful donors, allocating tickets to those who have given the most for the longest time, usually on some type of point system. For example, it will take a minimum contribution of $10,000 to the UNC Ram Club to be eligible for the purchase of four tickets.

Demand is probably higher than usual given the proximity of both Illinois and Louisville to St. Louis and the absence of both from the Final Four for so long. Both teams have avid followings and their fans are known to travel well. Michigan State is not that far away either and although UNC is a bit of a stretch, their fans devotion to the cause should insure a fair turnout of baby blue faithful as well.

University of Pittsburgh faces lawsuit from ticketholders

A group of basketball season ticketholders filed a lawsuit yesterday against the University of Pittsburgh over a new policy regarding the purchase of season tickets. According to the Pittsburgh Post-Gazette, the suit claims that Pitt breached its contract with season ticket holders that it first made in 2000 upon the opening of Pitt's new arena. At that time, an individual could purchase tickets for the same seats each year provided he or she gave at least the same amount of money each year to the school's athletic fund. The new policy plans to reassign seats each year based on points earned through mostly through donations, meaning seats could be reassigned each year.

This suit should be watched carefully by every collegiate athletic department in the country both for the result and as an object lesson in how not to conduct a fund-raising campaign. Fans know that schools need to raise revenue and that season tickets to successful programs are the chief source of that revenue. However, a school has to honor the promises it makes to supporters. Pitt put in black and white (or maybe blue and gold) that if a fan made the same donation each year he could keep his seat. If the Pitt athletic department wants credibility, it needs to honor its promises to fans. There may be more to this story than has appeared to date. As they always say, complaints only give one side of the story, but it will take a lot to convince the Pittsburgh fan base that the administration is not just jumping over long-time supporters to reach every dollar it can.

Landon Donovan Comes Home

In a boost to Major League Soccer, Landon Donovan, the American player of the year for the last three years, is returning after less than three months in Germany, according to a report from the Associated Press. Dononvan has played sparingly since joining Bayer Leverkusen. He told officials of the German club of his desire to return to the United States and the club has agreed. It is anticipated that the Los Angeles Galaxy will trade Carlos Ruiz to FC Dallas to obtain the rights to sign Donovan. Ruiz does not have the right to block the trade and Donovan would like to play in his native California.

Welcome back Landon. Not only will his return be a boost to MLS and the Galaxy but a major boost to the US National Team. Donovan's lack of game fitness contributed to the poor showing of the US in the loss to Mexico on Sunday, as Landon himself admitted. The US National Team needs a fit Donovan to lead it in World Cup qualifying and MLS needs Donovan to keep marketing its product. Donovan in a Galaxy uniform will add fuel to the budding rivalry with Chivas USA. MLS needs as many US stars as it can keep and Donovan is the most marketable of the established stars we have. This is a major positive developement for US soccer.

Louisville Elite Eight Ratings Unbelievable

Louisville television sets were tuned to CBS coverage of the NCAA tournament in record numbers last weekend as both the University of Louisville and the University of Kentucky were involved in regional finals. Sets in metropolitan Louisville were tuned in to the games in larger numbers than watched this year's Super Bowl according to preliminary Neilsen ratings. Over 66% of households watching television were tuned into the games with over 500,000 viewers, according to the Louisville Courier-Journal. In contrast, the Super Bowl, usually the highest rated sporting event of the year, drew only 52% of the sets in town. Of course, the Kentucky Derby outdrew both events, drawing 73% of the televisions in use. If Louisville makes the championship game, look for those numbers to be challenged. Had both Louisville and Kentucky met in the championship game, a possibility until Kentucky's double overtime loss to Michigan State, it is hard to imagine what the rating for that game would have been in Louisville, but it's a pretty safe bet that it would have outdrawn the Derby and maybe anything else shown in Louisville in quite some time.

The NHL Saga Gets Uglier

As expected, the NHL saga just gets uglier and uglier. When you thought that Commissioner Gary Bettman and the League could not operate in a manner more capable of self-destruction, they find new ways to surprise you. For months, Bettman has said that the NHL would take no hit from the new TV contract with NBC that was to have gone into effect with this now foregone season. For months, no one believed him since the contract was a revenue sharing deal with no guaranteed base. Now,the truth is out. According to New York Post , which obtained a copy of the revenue share model submitted by the NHL to the Players Association, the anticipated loss was, get this, $65 million. That's a far cry from no loss.

The NHL has filed unfair labor charges with the NLRB against the Players Association for trying to recover lockout benefits from any player who crosses the line to play in a still locked 2005-06 season. The NHL is trying to turn the low paid players against the union leadership. It is trying other tactics to do this as well, some of which are described in the Post article. It is clear that the fight between the NHL and the players will carry through the summer, unless the owners wise up, dump Bettman and bring in someone who can make a deal and bring the league back to life.

The longer this lockout continues, the more likely hockey is to become marginalized. It is not for nothing that Paul Tagliabue, Commissioner of the NFL, the most successful professional sports organization in the world, was quoted last week as saying: "There's nothing that we do that I would want to compare to the NHL."

Top Ten Sports Lawsuits

In a article that says too much about the state of America today, the Philadelphia Inquirer presents its list of the top ten active sports lawsuits. I have a few comments on several of these cases.

1. I have discussed the Jets v. Cablevision case before(here). The latest in the ongoing fight is that the MTA has accepted bids for the stadium site and each side has submitted substantially raised bids. Cablevision's bid is supposedly $40 million higher and has no contingencies but we will have to wait and see what MTA reports when the bids have been fully evaluated

2. The jury ordered Romanowski to pay Williams $340,000 to compensate him for injuries after being punched in the face during football practice.

3. Churchill Downs may get more than it bargained for if it prevails in its suit against the Jockeys' Guild. It has sued the Jockeys' Guild alleging that the Guild violated federal antitrust laws by organizing a boycott of jockeys, as independent contractors, of two tracks owned by Churchill Downs earlier this year. However, if that position is agreed to by the federal court, then the jockeys argument that they should be paid for their media rights will be much stronger. As independent contractors, Churchill Downs would need a contract to purchase the jockeys' media rights.

4. ESPN has asked the court to dismiss the Don King's claims against as baseless, stating that most of the statements made about King had been made previously, were made by others and contained nothing new that was not already a matter of public record. The judge has yet to rule on the motion, as far as I can determine.

Book Review: The Jump

Just finished reading The Jump,(see sidebar for purchase information) Ian O'Connor which is the day to day story of the senior year in high school of Sebastian Telfair, a high school basketball player from Coney Island, New York. Telfair dreamed of being the first "short" point guard (he's only about 5'11") to jump from high school straight into the NBA and gave O'Connor unprecedented access to him throughout his senior year as he went through the process of choosing a college and then making the decision to turn pro.

The book is a fascinating look inside the world of high stakes amateur basketball - a world dominated by the big three sneaker companies: Nike, Reebok and addidas who bankroll the summer traveling teams and camps that attract college head coaches and NBA scouts, all looking to fill out their rosters. In many ways, it is the sneaker companies that determine the fate of the high school superstars. In Telfair's case, as O'Connor recounts, a bidding war developed between sneaker companies and Telfair ended up with a rich guaranteed shoe endorsement contract not dependent on his place in the draft. The risk of jumping to the NBA had been removed. When the draft actually arrived, all that remained was to see where he would play and how he would be taken. Would he make the lottery and history - justifying the faith addidas had shown by signing him to big contract?

Ultimately, O'Connor paints a picture of a world in which kids are routinely used as pawns by those around them to maximize whatever can be gained from whatever source can be found - much of which is found from sneaker companies. The welfare of the kids is rarely the major consideration. Telfair is the exception that proves the rule. He had more control over his situation than most. He emerges from the process with most of his money and his pride intact and his family mostly well cared for. And the draft? His dream fulfilled - he was picked 13th by Portland; the first 6' point guard ever to make the jump from high school to the NBA he was a lottery pick after all.

TPC to Move to May

The Atlanta Constitution is reportingthat the PGA is considering moving the TPC to May starting next year to give the tournament its own month. That would be a good idea and help promote the tournament as the fifth major that the Tour continues to tout it as being. Given its purse of $8 million, with $1.44 million to the winner, it certainly pays out like a fifth major and moving it away from the Masters will make it seem like less of a tune-up for the Masters and more of a significant tournament in its own right. It will be good for the TPC, for the Tour and for its sponsors. Looks to me like a win, win all around.

NFL WInter Meetings

As the NFL holds its winter meetings in Hawaii this week, there are at least two major issues facing the league which are unlikely to be resolved during the league's Hawaiian excursion. While the NFL's reached new television agreements with CBS, Fox and Direct TV resulting in 33% increases, there is no deal in place yet on the prime time package with ABC/ESPN. According to USA Today it is unlikely that an agreement will be reached much before the end of the expiration of ABC's exclusive negotiation period, which runs through the end of October.

The other major issue is the ongoing labor discussion for a new collective bargaining agreement with the players association. While the NFL has reported progress, it is unlikely that a new deal will be reported during the meetings in Hawaii. The gulf between the parties is still wide from all published accounts.

NHL- How it Got Where It Is

In an intriguing look back at the recent economic history of the NHL, Kevin Maney of USA Today lays the blame for most of the NHL's current problems squarely at the feet of Commissioner Gary Bettman. Much of the problem can be traced to Bettman's earliest labor negotiationsm, the botched contract talks of the 1994-95 season, Bettman's first, which led to a 103 day shutdown in the first year of the league's first national network tv contract in decades. If ever there had been a time for smooth negotiations, that was it. What was worse, the contract that resulted wasn't a very good one as far as the owners were concerned, as Maney goes on to document.

Maney confirms what many have suspected. Bettman is not only unlikely to make a deal to end the lockout. If by some miracle, he would be able to make such a deal and it was one that somehow would be in the long-term best interests of hockey, he still is not the right man to lead hockey back from the chasm into which it has fallen. The game needs to be changed, the marketing needs to be brought into the 21st century and the league needs to be pulled together to operate as a single marketing unit. Bettman has failed to do any of that in the 12 years he has been commissioner and there is scant evidence to believe he will do it now.

College Basketball is a Business

Now I know that headline is not a revelation to anyone - at least it shouldn't be. If you still harbored any doubts, please take a look at Dick Jerardi and Dana Pennett's excellent piece on the demise of Catholic college basketball. It will dissuade you of any notion that big business has not come to campus. It is well worth a read as we head into the first weekend of March Madness.

College Basketball a Business - Redux

According to a study conducted by an economist at Holy Cross recently interviewed in Business Week the Final Four is actually a money losing proposition for host cities. Early round games held in smaller cities, like this year in Worcester, MA, the home of Holy Cross, are usually positive both economically and in terms of exposure for those cities, but the Final Four tends to crowd out other events and reduces the business of local residents sufficiently to minimize the impact that out of town visitors have. According to the study, cities that have hosted the Final Four since 1970 have experienced slower growth in the host year than in other years.

So, what does this all mean? The next time your city leaders want to justify spending your tax dollars to build a new domed stadium, which by NCAA rules is the only arena capable of hosting a Final Four, remember this study. It will not pay, no matter how many times city leaders claim it will pay for itself. This is currently playing out in New York, as Mayor Bloomberg's administration and the Jets are holding out the Olympics and potential Super Bowls as part justification for the Jets new stadium. I expect to hear a Final Four sometime soon. These events are nice, they're fun, they may even be profitable in one off circumstances, but they won't pay off stadium debt. The only thing that will pay for a stadium is filling a calendar with used dates. If the stadium is in use for more than 250 days a year with market rate rent paying tenants, then it is probably a good deal for the city. If not, then it probably isn't. It really is that simple.

Labor News

There was news on two labor fronts today.

First, in the continuing story, the NHL returned to the bargaining table. The league made a surprising new offer ( see the Toronto Globe and Mail story for more details) based on "delinking" the salary cap from revenues. When talks broke off and the season was canceled, Commissioner Bettmann had said that delinking was off the table, the league could not afford it and would not go back to discuss it. Whether this was merely a negotiating tactic remains to be seen. The union deferred its response so it could study the proposal.

In other news, it appears that the NFL may not resolve its new contract as quickly or smoothly as originally thought. According to Greg Aiello, the NFL's vice president of public relations(i.e. "head flak"), "This is not business as usual". Now, I don't know when any union collective bargaining agreement negotiations between owners and players were business as usual, but I guess that means these are really off course.

While the players already have revenue sharing, they do not share all revenue but only what's termed "designated gross revenue", which does not include private suite revenue, priority seating or stadium signage among other items. According to Ed Bouchette ofthe Pittsburgh Post-Gazette, the players want to do away with the DRG concept and share all revenue as well as raise the percentage from 63%. Since the NFL is the most profitable professional sports enterprise in the world, it will be difficult for the owners to plead poverty as the NHL and MLB owners have done before them. They will have to come up with far more creative arguments for not sharing more revenue with the players.

My guess is that when all is said and done, the definition of DRG will be expanded, but the owners will be able to leave items out that are needed to pay down stadium debt. In return, the players share of revenue will rise from 63 to something approximating 68 or so. Both sides have far too much to lose to allow the gravy train to run off the track like it did in the strike of 1987. There will be no repeat of "The Replacements".

NHL: The Other Shoe

To the surprise of absolutely no one, the Panthers and the Predators will be in serious financial difficulties if the lockout is not settled before next season, according to this article in the Toronto Globe and Mail. In the case of the Preds, this is despite having what is generally regarded as the most favorable lease in the league. While having the lowest payroll in the league, they also have the smallest revenue. It could be just another sign of things to come and it's no coincidence that its two of the Sunbelt expansion teams that are the first to feel the most pain.

Jets Stadium Battle Heads to the Courts

The battle between the Jets and Cablevision over the Jets proposed Westside Stadium heading to the courts today as the Jets filed an antitrust suit against Cablevision in U. S. District Court in Manhattan, according to The New York Times. This is only the latest chapter in what has become an increasingly nasty battle between the Jets and Cablevision, which owns Madison Square Garden, as well as the Knicks and the Rangers. Cablevision is pulling out all the stops to try and prevent the construction of the Jets stadium as it is afraid of what the new stadium will do to the convention business of MSG.

This latest move is a bit of stretch however. The crux of the complaint seems to be that Cablevision refuses to run ads that the Jets have tried to buy on its cable system to counter the "disinformation" campaign it alleges that Cablevision is running about the bid process underway concerning the stadium site. Basically, the Jets are alleging that Cablevision is using its monopoly power as a cable operator to support its monopoly position in the convention business. It's a very interesting argument and one that may well have some strong legal underpinning. The problem however is one of timing. Even the most optimistic projection of the course of this legal proceeding is going to delay the bid process and construction so that it is highly unlikely that the construction could begin this summer.

Both the Jets and Mayor Bloomberg had hoped to be under construction by this summer. The stadium is the centerpiece of NYC's bid for the 2012 Olympics. Further, the NFL has indicated that it is prepared to award the 2010 Super Bowl to New York if the stadium is built.

This complaint is just another round in what is becoming a never-ending battle between corporate titans. Final offers are due to Metropolitan Transit by March 21. Hopefully, shortly after that MTA will award the development rights to the site and we will all know whether the Jets will have a new stadium or will be stuck in New Jersey with no place to call home.

TV Rights Still the Nationals Sticking Point

The Washington Post reports that local media rights remain the major sticking point in discussions between Major League Baseball and Peter Angelos, the owner of the Orioles. Angelos has proposed an Orioles owned regional sports network that would pay the Nationals fair market value for the Nationals local rights. Remember, however, the Nationals are currently owned by the other teams in MLB which would like to sell the team as soon as possible. A sale is not feasible unless that sale carries with it control of their local television rights and preferably ownership in a regional television network. The price MLB will receive, and the compensation MLB will have to pay Angelos for putting the Nationals in DC, is all a part of the same negotiations. The problem is Angelos is claiming something he never really had. The owners of the Orioles have always known that the absence of a team in DC was a temporary measure and one that could never be counted on for the long haul. Anything else Angelos says is just lawyer negotiations.

More on the Business of March Madness

We have discussed before the impact of the NCAA tournament on the "major" schools - the representatives of the Big Six football conferences who annually divide up millions in proceeds from the March Madness distribution. But what about the little guys. Take a look at what the NCAA tournament means to first time entrant and play-in participant Oakland University. It's not just the "units" the team might earn from participation in the tournament, it's the merchandise, the exposure both for recruiting athletes and students and the increased donations and sponsorships. It's the types of problems most collegiate administrators and athletic directors go to bed at night hoping to have.

CSTV has announced several sponsors here(with thanks to Yoni Cohen@College Basketball Blog for the tip) for its streaming video presentation of the tournament, including American Express, Sports Illustrated, Ticketmaster and CBS' corporate sponsor partners Coke and Pontiac.

Both CBS and ESPN have sold most of their inventory for the men's and women's tournament with only a few spots remaining according to Mediaweek. Spots in the men's tournament semifinals are going for $650,000 while spots in the national championship game are going for $1 million. ESPN didn't disclose the women's tournament rates. CBS and ESPN are also sharing announcers and cross promoting each other's tournament, both of which were required by the NCAA.

Playing an office pool this year? If so, you're not alone. According to a recent study by a New York outplacement firm, March Madness will drain almost $900 million from US companies in lost productivity. An internet monitoring firm estimated that in 2003 fans spent 90 minutes a week on college basketball websites during the tournament - and that was before CSTV started webstreaming the games. I can only imagine what it is going to turn out to be this year.

In addition, the NCAA tournament has overtaken the Super Bowl as the number one wagering event in the country based on wagers taken at Las Vegas sportsbooks and overseas online sportsbooks. Adding in office pools, estimates have ranged as high as $3.5 billion. Yes, that's right with a "B". Larger than the gross national product of several countries. While the official NCAA position is that they deplore gambling, absolutely deplore it they say, it is without question the economic engine that has made the tournament the success that it is. Without widespread gambling on the tournament, both through Vegas and online sportsbooks and through office pools, it is highly unlikely the NCAA would be receiving anything but a fraction of the $6 billion CBS is paying to broadcast the tournament. Can you say hypocritical?

March Madness - How Does CBS Recoup Its Investment?

March has dawned and with it college basketball has captured center stage in the sports world (at least that part of it not consumed by following the steroid saga). For the next 3 weeks, millions of Americans, many of whom have not watched a college basketball game all year, will be following schools they have probably never even heard of because they picked them in their office pool. It is because of that near universal appeal, that CBS signed an 11 year, $6 billion broadcasting and marketing rights deal with the NCAA.

How does CBS recoup its investment? Of course, the majority of its revenue comes the traditional means through the sale of on air commercial time. It will charge from $100,000 a spot in the early rounds to up to a$1 million for the Final Four. However, CBS has also adopted the Olympic model and signed Coke as an official sponsor for the length of the pact. Other corporate partners include General Motors and Cingular. You will see numerous commercials and promotions featuring all three in the weeks ahead.

That is still not quite enough, though and CBS has been exploring new revenue streams from new distribution channels of the broadcast signal. This year, all games of the tournament will be available to Direct TV subscribers for a an additional fee. In addition, CBS has allowed its affiliates to use their digital signals, in conjunction with cable systems, to provide multiple games to subscribers of digital cable. However, for the first time, in conjunction with CSTV, all games will be available in live streaming video across the internet for a $19.95 subscription fee. It will be interesting to see how many people take advantage of this. CSTV claims that they are expecting 50,00 - 100,000 and are prepared for many more than that. This type of distribution makes particularly good sense for the NCAA tournament as many fans are stuck behind desks and in front of computers when they want to be following their favorite teams.

Tice Under Investigation

This is what happens when you're the lowest paid head coach in the NFL - you're reduced to scalping Super Bowl tickets to make ends meet on a measly $1 million a year see here
for more details. I'm sure Tice is gone after this since he was almost fired twice last season as it was.

Majority Ownership in Reds for Sale

The majority ownership interest in the Cincinnati Reds, the nation's first professional baseball team, has been put up for sale according to statement released yesterday by the members of the group selling their interest. The group includes the Louise Dieterle Nippert Trust, Cincinnati businessman George Strike and a unit of Gannett, the publisher of the Cincinnati Enquirer. Before you rush out to buy, however, be aware that majority interest doesn't mean control. Operating control of the team remains with Reds chief executive officer Carl Lindner, whose family and business interests own 37% of the Reds and have operating control through the terms of the Reds operating agreement.

Sale of the interest in the team will carry with it an interest in the Reds two year old stadium, Great American Ball Park. It should bring a higher price than the recent $200 million that the Brewers brought. The sale is being brokered by Allen & Co. Lindner and the other current owner, William Reik, who owns about 11% of the team, have the right to match any offer the sellers receive.

The Shoe Drops in Boulder

One of the other shoes has dropped in Boulder, Colorado as Elizabeth Hoffman, the President of the University of Colorado announced her resignation amid several scandals involving the University's football team, as well as a recent controversy over a professor who compared victims of the 9/11 terror attacks to a Nazi war criminal. While she has been President for five years, her last year has been marked by controversy and turmoil.

During the past year, the football program has been rocked by a series of scandals. An independent commission determined that the sex, drugs and alcohol were used as recruiting tools. Allegations were made that a female kicker was sexually assaulted by other members of the team as well as at least eight other women. Within the last week, a grand jury report was leaked that said two female trainers were allegedly assaulted by an assistant coach and that a "slush fund" had been established using proceeds from Coach Gary Barnett's summer camps.

The wait now begins for the resignation of Barnett, who many were surprised lasted through last season. While no firm evidence yet has tied him to the scandals, the pressure is mounting by the week and the latest resignation can't help his case. President Hoffman had been one of his supporters and with her departure, he loses critical support at the top. I would guess his days are probably numbered and that number may not be very large.

Neuheisel settles for $4.7 Million

Fired University of Washington football coach Rick Neuheisel settled his lawsuit today against the University and the NCAA in a settlement giving Neuheisel $4.7 million. The settlement was announced before closing arguments were set to begin in the 5 week old trial.

The NCAA will make a cash payment of $2.5 million. The University will forgive a $1.5 million loan, make a cash payment of $500,000 and an interest payment of $200,000.

Last week, the judge presiding over the trial had left open the possibility of declaring a mistrial because the NCAA had failed to provide an updated copy of its bylaws to Neuheisel's legal team during discovery. In a statement, the University said it agreed to settle because of the possibility of a mistrial. The updated bylaws would seem to bolster Neuheisel's argument that the NCAA investigators acted improperly by failing to tell him in advance that they planned to question him regarding his gambling.

Push for Marlins Stadium Moves to Tallahassee

Both the City of Miami and the Dade County Commissioners have approved the Florida Marlins financing proposals for a new $420 million, 38,000 seat stadium with a retractable roof to be constructed near the Orange Bowl. Approval is now needed from the Florida legislature, which has defeated two earlier proposals.

According to the Miami Hearld, Miami-Dade County has pledged $138 million towards construction, the City of Miami will contribute $28 million and the land on which the stadium will be built and the Marlins will contribute $192 million. With parking revenues expected to generate $32 million, that leaves a funding gap of $30 million which the Marlins and the County are asking the Legislature to fnd through a $60 million sales tax rebate.

In a unique twist to the financing plan, as far as I'm aware, the Marlins have agreed to pledge the entire assets of the club to secure the bonds to be issued by the County to fund both its contribution and the contribution of the Marlins. The Marlins will repay the bonds through rent payments.

This stadium plan is far from a guaranteed success. Twice the Marlins have gone to Tallahassee and failed to gain approval. To add to their troubles, the Magic are seeking state aid to build a new arena in Orlando. It will be interesting to see what happens.

NHL for Sale?

The Board of Governors of the NHL has received an offer to buy the entire league from the private equity firm of Bain Capital Partners LLC and the sports investment advisory firm Game Plan LLC for a purchase price of at least $3 billion according to both the Toronto Globe and Mail and
The Toronto Star. The plan calls for the the firms to buy each team and operate the NHL as a single entity. This would clear the hurdles of revenue sharing now plaguing the league and dividing the large market and small market clubs. It would also allow the league to begin with a clean slate in labor talks.

It's difficult to say what reception the proposal received. The Globe and Mail reported on some reaction here. This would not be the first time a league operated under the single entity concept. The WNBA is currently operated that way as is Major League Soccer. While it is unlikely this idea will gain much traction, in today's climate in the NHL, one can never be certain of anything. Anytime the owners see someone waving $3 billion or more in their faces, they would be fools not to listen carefully.

Michigan fans put tickets in the names of babies

From the now you have seen almost everything file, toddlers are holding University of Michigan football season tickets and the program has been a great success. All you athletic directors out there looking for new revenue streams, loooks like the Wolverines have done it again.

How to Restore the Luster to Doral

For years, golf's Doral Open was a glamour event. One of the Tours most anticipated early season tournaments which regularly drew the top touring pros to tackle the famed Blue Monster. But over the years, the spark went out and the event lost its luster and the South Florida gold community began to look for ways to rejuvenate it.

It appears that the answer has been found and it comes by way of Detroit - the Ford Championship at Doral. Of course, it doesn't come without controversy or I wouldn't bother to write about it. It seems that Ford is taking full advantage of both its position as the manufacturer of a hot car, the proximity of the Homestead raceway and, perhaps most importantly, a loophole in the prohibition against appearance fees.

Ford has set up corporate outings with very lucrative payments to the Tour's top 10 players for the early days of the week of the event, fees estimated to total in the range of $500,000-$600,000 per foursome.

Ford has also offered any of the players a ride in one of the Ford GT Supercar, that goes to the winner of the tournament, or one of its NASCAR cars down at the Homestead Speedway, with NASCAR drivers on hand for lessons. In addition, Ford was handing out DVD players with DVDs of the GT so every golfer could see what he might have the chance to win.

Now, none of this is against PGA rules, including the corporate outing. In fact, most of it is just good marketing. The outing will be a topic of conversation, however, when the Tour and its tournaments association holds their next meeting. It smacks a little too close to appearance fees to suit some sponsors I think.