The business world practically exploded when the long-anticipated news was announced that William Morris Endeavor and Silver Lake Partners bought IMG Worldwide for $2.3 billion.
William Morris Endeavor is the world's largest talent agency and was created as a result of the merger between William Morris Agency and Endeavor Agency four years ago. Silver Lake Partners is a private equity firm, while IMG (International Management Group), is a New York based worldwide sports and media group.
According to Los Angeles Times, IMG represents top athletes such as Peyton Manning and Novak Djokovic. IMG also sells media rights to events such as Wimbledon, and they represent more than 90 Universities.
No doubt that WME didn't just put their foot in the door in the sports world; they knocked it down. This strengthens their position in the competition against Creative Artists Agency, another well known talent agency who already established some ground in sports.
The term "massive", referring to the scale of the investment, is a huge understatement. But acquiring IMG would definitely result in a great ROI. WME will also be able to establish itself as a media organization. A great undertaking, but also a huge step forward.
Friday, December 20, 2013
NBA's Blazers Hot Streak Leads to Increased Ticket Revenue
Those who follow the NBA noticed how good the Portland Trailblazers are doing this season. Currently at 22-5, they hold one of the best records in the league. This is a complete surprise even for the experts who predicted the Blazers would finish mediocre at best.
Ideally, the better the team is, the higher the ticket sales; more people would be interested in attending games. This is exactly the case for the Blazers franchise.
According to The Oregonian, "ticket revenue has more than doubled," since December of last year. Monday's match against the Detroit Pistons generated five times more revenue than the average Monday.
What's more surprising, other than the Blazers' great start to the season, is that most of their home games did not sell out so far. That simply means there's still room to increase revenue from ticket sales. The Blazers front office no doubt love this.
The Moda Center (Previously known as the Rose Garden) can hold nearly 20,000 people for a Blazers home game.
The most anticipated game so far for the Blazers is the December 28th game against the Miami Heat. The average ticket price for that game: $95.
Teams' front offices make do with what they have when it comes to ticket sales and customer relations. The Blazers organization has to be blessed that their team is performing exceptionally well this season. It just makes the job of selling tickets and filling seats much easier.
Ideally, the better the team is, the higher the ticket sales; more people would be interested in attending games. This is exactly the case for the Blazers franchise.
According to The Oregonian, "ticket revenue has more than doubled," since December of last year. Monday's match against the Detroit Pistons generated five times more revenue than the average Monday.
What's more surprising, other than the Blazers' great start to the season, is that most of their home games did not sell out so far. That simply means there's still room to increase revenue from ticket sales. The Blazers front office no doubt love this.
The Moda Center (Previously known as the Rose Garden) can hold nearly 20,000 people for a Blazers home game.
The most anticipated game so far for the Blazers is the December 28th game against the Miami Heat. The average ticket price for that game: $95.
Teams' front offices make do with what they have when it comes to ticket sales and customer relations. The Blazers organization has to be blessed that their team is performing exceptionally well this season. It just makes the job of selling tickets and filling seats much easier.
Thursday, December 19, 2013
NBC Olympics and Yahoo Join Forces for Sochi Games
According to Sports Business Daily, NBC Olympics and Yahoo sports will partner together to provide highlights and live streaming for the Winter Olympics in Sochi early next year. This is the next step to relations between the two who once competed against each other.
In 2012, NBC and Yahoo reached a similar agreement regarding Sunday Night Football for a content, promotional, and distribution partnership.
Both sides will provide links to each other's articles and videos in an attempt to boost online traffic for both sides. Yahoo Sports staff will work with NBC Olympics on various news and segments that would air on NBCOlympics.com. NBC will implement Yahoo's search engine, Tumblr, and Flicker into its websites during the Winter Olympics.
The partnership between NBC and Yahoo has the potential of being a great fit and highly beneficial for both sides, as it worked out well with NFL Sunday Night Football last year.
In 2012, NBC and Yahoo reached a similar agreement regarding Sunday Night Football for a content, promotional, and distribution partnership.
Both sides will provide links to each other's articles and videos in an attempt to boost online traffic for both sides. Yahoo Sports staff will work with NBC Olympics on various news and segments that would air on NBCOlympics.com. NBC will implement Yahoo's search engine, Tumblr, and Flicker into its websites during the Winter Olympics.
The partnership between NBC and Yahoo has the potential of being a great fit and highly beneficial for both sides, as it worked out well with NFL Sunday Night Football last year.
Throwback Thursday: December 19th
In Sports Business Zone's version of Throwback Thursday, we'll look back in sports history of key trades, signings, and other deals that occurred around this time years or even decades ago. Here's what occurred in the past on this day, December 19th:
(Source: The Sports Network)
1917: The NHL's inaugural season begins. Only five teams existed at the time: Montreal Canadiens, Montreal Wanderers, Toronto Arenas, Ottawa, and Quebec.
2001: The Major Indoor Soccer League (MISL) merges with the World Indoor Soccer League (WISL) which would take effect in the 2002-03 season.
2005: New Jersey Devils Head Coach Larry Robinson resigns.
2006: The Philadelphia 76ers trade Allen Iverson to the Denver Nuggets for Andre Miller, Joe Smith, and two first round picks.
2010: The Milwaukee Brewers trade four players to the Kansas City Royals for Zack Greinke.
2011: The Texas Rangers acquired rights to negotiate with Japanese pitcher Yu Darvish.
2012: Ryan Dempster signs a two-year $26.2 million contract with the Boston Red Sox.
2012: Ichiro Suzuki resigns with the Yankees for $13 million over two years.
NBA Nickname Jerseys - Good Idea?
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| Spike Lee |
The two teams will wear the alternate jerseys when they play each other on March 12th and April 8th of next year. Nickname jerseys will go on sale on January 14th. The starting price: nearly $110.
When the Heat and Nets play, it is likely that we'll see King James, J. Shuttlesworth (Ray Allen), Super Mario (Mario Chalmers), The Truth (Paul Pierce), The Jet (Jason Terry), and more competing against each other.
Would this concept take off with the fans? It seems the NBA wants to test this out to see if it really takes off. When some of us see nickname jerseys, the first thing we may think of is the XFL and nicknames such as "He Hate Me". It would be interesting to see how this plays out in the coming months.
Are alternate nickname jerseys a good idea? Will it take off or will it not give a good image for the NBA?
Wednesday, December 18, 2013
ESPN Acquires Rights to AFL Starting in 2014
According to SB Nation, ESPN has acquired media rights to the Arena Football League beginning in 2014. ESPN and the AFL have had a history dating back to 1987 when ESPN televised the first Arena Bowl. Over time, ESPN and ABC have televised AFL games from 1995-2002 as well as 2007-2008.
The agreement is a multiyear deal and will include around 10 games on ESPN and around 75 on ESPN3. The 2014 AFL season begins on March 14th.
The agreement is a multiyear deal and will include around 10 games on ESPN and around 75 on ESPN3. The 2014 AFL season begins on March 14th.
Highlight Deal: Facebook Buys SportStream
According to Mashable, Facebook had purchased SportStream on Tuesday. SportStream is an analytical tool that provides sports teams and media with accurate data regarding mentions in social media platforms.
SportStream was launched in 2012, so its reign was very short-lived before it became absorbed by Facebook. Although the terms of the deal was not disclosed, the deal itself seems to fit for both sides. SportStream has access to all of Facebook's users, expanding their reach and connecting with fans and sports organizations easier. Facebook is likely looking to get a stronger foothold on sports coverage in social media.
SportsStream would be used to simplify sports data for Facebook, potentially drawing in more teams and organizations. If this deal works out, both teams would get a good return on investment. SportStream gets more coverage, and Facebook has its foot in the door in the sports world.
SportStream was launched in 2012, so its reign was very short-lived before it became absorbed by Facebook. Although the terms of the deal was not disclosed, the deal itself seems to fit for both sides. SportStream has access to all of Facebook's users, expanding their reach and connecting with fans and sports organizations easier. Facebook is likely looking to get a stronger foothold on sports coverage in social media.
SportsStream would be used to simplify sports data for Facebook, potentially drawing in more teams and organizations. If this deal works out, both teams would get a good return on investment. SportStream gets more coverage, and Facebook has its foot in the door in the sports world.
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