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.
NBA Trade Talks: Waiters, Asik on the move?
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| Tony Dejak, AP |
One possible scenario involves Waiters going to Philadelphia for Evan Turner. On paper, the deal could work out fine for both sides. Would the 76ers bite though? Evan Turner is putting out All-Star-quality numbers this year (19 points, 6 rebounds, 4 assists per game). It might be riskier for the 76ers to commit. The Chicago bulls are currently shopping Luol Deng, and with his performance this year also makes it risky to commit to Waiters, although the Cavs would likely not mind trading.
Meanwhile, the Houston Rockets have been shopping backup center Omir Asik for quite some time. Rumors say the Rockets will finally ship him off soon, with the 76ers, the Atlanta Hawks, the Boston Celtics, and the New Orleans Pelicans as the top candidates. One likely scenario would involve a swap between Asik and Atlanta's Paul Millsap.
Then there's the Grizzlies shopping Zach Randolph, and the Pelicans are looking for a big guy to help Anthony Davis on the front court. The Pelicans can use Ryan Anderson as an important trade asset, but his great performance this year might make him too valuable to trade.
There could be a big trade by the end of this week. Although this is all speculation, trades are technically business moves in the end, and the NBA is a business organization. The same goes to all professional sports.
Are any of these deals likely to occur soon? What scenario might play out?
Tuesday, December 17, 2013
NFL Logos - Time to Modernize Them?
According to Technorati, designer Matt McInerny came up with some cool looking modernized logos of all NFL teams. Here's some examples:
Believe it or not, the NFL is approaching its 100 year anniversary. Many logos are decades old, and it might be time to conduct a massive overhaul of re-imagining logo designs so they can be kept up with the times. The logos can be simplified and modernized, and still fit well with their respective teams. Would this be a good idea, though? Would fans be willing to accept a change on this scale? Or would it be best to leave some logos, who have not been touched for decades, alone?
Believe it or not, the NFL is approaching its 100 year anniversary. Many logos are decades old, and it might be time to conduct a massive overhaul of re-imagining logo designs so they can be kept up with the times. The logos can be simplified and modernized, and still fit well with their respective teams. Would this be a good idea, though? Would fans be willing to accept a change on this scale? Or would it be best to leave some logos, who have not been touched for decades, alone?
Opinion: Top Five Great Locations for a Future NFL Franchise
There have been talks on occasion about NFL expansion possibilities and rumors about franchises switching cities. By the end of this decade at the latest, we might see a team or two move to large market cities, and may witness the expansion of a 33rd and 34th team. There are a number of cities not only within the United States, but also internationally, who would be more than happy in acquiring a NFL team.
A NFL franchise has the potential to boost a local economy and put cities on the map. Here is my take on five great locations that could do very well if or when the NFL looks their way.
5) Las Vegas, Nevada
Located near California and roughly 300 miles from Phoenix and San Diego, Sin City can make a good spot for a NFL franchise. Vegas is home to nearly 600,000 people, making it a decent sized market for the NFL. Gambling might be an issue that could hinder Las Vegas' chances of getting a NFL team in the future, but the gambling environment could also work in favor. A NFL franchise here can not only appeal to the local market, but also to the millions of visitors that come here annually.
4) Omaha, Nebraska
Nebraska is a state that loves football. Although Omaha is nearly 200 miles from Kansas City, the population of over 420,000 would likely welcome a NFL team. The state rallies behind the Cornhuskers, but there can be plenty of room for both a college and professional team for Nebraska fans to support.
3) San Antonio, Texas
Like Nebraska, Texas loves football. Dallas, Houston, and San Antonio are all fast growing cities, and the market there can definitely sustain three NFL teams. San Antonio has a population of nearly 1.4 million, making it one of the largest cities in the U.S. and a great spot for a future NFL team. San Antonio fans would have great expectations for a future franchise, sharing the success of the NBA team San Antonio Spurs in the past fifteen years.
2) Toronto, Canada
Toronto would be a great first step for the NFL's inevitable international expansion. With a population of more than 2.5 million, this is a massive market with so much potential for a team looking to move in or for an expansion team. There's been talks circulating lately about the possibility of a Toronto franchise in the coming years. It would not be a surprise if Toronto does land a team by 2020.
1) Los Angeles, California
Los Angeles witnessed not one but two teams leaving for smaller markets in the past. With a population pushing 3.9 million, LA is likely to finally land a franchise looking to call this massive market home. It is likely that LA will either land the first team looking to move, or establish a 33rd team.
Honorable mentions:
London, England
The NFL will be taking a huge leap (no pun intended) by establishing a foothold here. This is definitely a possibility, but not in the near future. Passenger jets would need to jump the Atlantic in under two hours for London to be a realistic candidate. 2030 perhaps?
Columbus, Ohio
Columbus is a large city with a population of more than 800,000. As far as sports go, it's known for the Ohio State Buckeyes. Football is popular here and a NFL team could be a right fit. However, Ohio has two NFL teams in Cleveland and Cincinnati. It might be an ideal candidate somewhere down the road if only one team remains in Ohio.
Orlando, Florida
Orlando is a huge tourist destination, perhaps the largest in the world. A NFL franchise here can market to tourists and not just the locals. Its location in Central Florida ideally makes it a good candidate. However, Florida already has three NFL teams in Tampa Bay, Jacksonville, and Miami. Miami is a market of its own, while Central, West, and North Florida cannot sustain more than two NFL teams. For Orlando to be a realistic candidate in the future for a NFL franchise, either Tampa Bay or Jacksonville would need to relocate first.
Agree or disagree with the picks? Feel free to comment!
A NFL franchise has the potential to boost a local economy and put cities on the map. Here is my take on five great locations that could do very well if or when the NFL looks their way.
5) Las Vegas, Nevada
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| Cameron Davidson/Corbis |
4) Omaha, Nebraska
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| Visit Omaha |
3) San Antonio, Texas
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| Getty |
2) Toronto, Canada
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| Getty |
Toronto would be a great first step for the NFL's inevitable international expansion. With a population of more than 2.5 million, this is a massive market with so much potential for a team looking to move in or for an expansion team. There's been talks circulating lately about the possibility of a Toronto franchise in the coming years. It would not be a surprise if Toronto does land a team by 2020.
1) Los Angeles, California
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| AP |
Honorable mentions:
London, England
The NFL will be taking a huge leap (no pun intended) by establishing a foothold here. This is definitely a possibility, but not in the near future. Passenger jets would need to jump the Atlantic in under two hours for London to be a realistic candidate. 2030 perhaps?
Columbus, Ohio
Columbus is a large city with a population of more than 800,000. As far as sports go, it's known for the Ohio State Buckeyes. Football is popular here and a NFL team could be a right fit. However, Ohio has two NFL teams in Cleveland and Cincinnati. It might be an ideal candidate somewhere down the road if only one team remains in Ohio.
Orlando, Florida
Orlando is a huge tourist destination, perhaps the largest in the world. A NFL franchise here can market to tourists and not just the locals. Its location in Central Florida ideally makes it a good candidate. However, Florida already has three NFL teams in Tampa Bay, Jacksonville, and Miami. Miami is a market of its own, while Central, West, and North Florida cannot sustain more than two NFL teams. For Orlando to be a realistic candidate in the future for a NFL franchise, either Tampa Bay or Jacksonville would need to relocate first.
Agree or disagree with the picks? Feel free to comment!
Be Careful What You Say: Seattle Car Dealership Pays $420,000 to Lucky Winners After Seahawks Shutout
According to the NFL, a Seattle car dealership will divide $420,000 to twelve lucky winners following the Seahawks' 23-0 shutout victory against the New York Giants on Sunday.
The owner of the dealership admitted he didn't expect this to actually happen when he decided to run the promotion. It might be a mistake he's going to regret. The good side to this: at least he's keeping his word.
The promotion was initially planned for the Seahawks' game against the 49ers the week before, but the dealership needed more time to make sure they were complying with state regulations. They decided to continue the promotion considering the Giants are playing below expectations this year. Besides, what are the odds of a shutout? It's not like the Seahawks were playing at home, after all.
The dealership will have to pay a heavy cost for a promotion they will likely regret. It is wise to keep to their word, but the moral of the story: make sure you have the resources when you commit to something like this.
Monday, December 16, 2013
Want a Personal Stadium? It'll Cost Around $30 Million
According to Forbes, you have the option to surprise someone during the holidays with their own personal stadium. It only starts at $30 million.
Populous, a Kansas City-based corporation of sports architects, will design this technologically advanced stadium for the hefty price. The stadium's interior can alternate from football to baseball to soccer using fiber-optic lighting. The stadium can fit around 100 people is 40-50 yards long, and includes LED screens, a scoreboard, and a PA system.
Would sports fans really want this? It may sound like a dream come true, but is this a little over the top?
Populous, a Kansas City-based corporation of sports architects, will design this technologically advanced stadium for the hefty price. The stadium's interior can alternate from football to baseball to soccer using fiber-optic lighting. The stadium can fit around 100 people is 40-50 yards long, and includes LED screens, a scoreboard, and a PA system.
Would sports fans really want this? It may sound like a dream come true, but is this a little over the top?
Highlight Deal: NBC, ESPN Exchange Rights (Ryder Cup, Premier League Coverage)
According to the Golf Channel, ESPN and NBC have recently reached an agreement to exchange rights involving the Ryder Cup and the Premier League. NBC will once again acquire the rights to the 2014 Ryder Cup day one media coverage for the first time since 2006 beginning next year. In return, ESPN will be authorized increased use of Premier League highlights.
Deals such as this do occur every so often. Acquiring coverage and highlights are important because they give the organization one more piece in their arsenal to reach out to their fan base. ESPN and NBC have also worked together in the past on a deal such as this.
In 2006, Disney (who owns ABC and ESPN) had at long last acquired the rights to cartoon character "Oswald the Lucky Rabbit", from NBC. The fictional icon was originally created by Walt Disney himself, which made the deal appropriate. ABC and ESPN also acquired the rights to day one coverage of the Ryder's Cup. In return, NBC acquired broadcaster Al Michaels.
With NBC once again getting the rights to day one Ryder Cup Coverage, this also makes the deal fitting as they signed an agreement with PGA earlier this year that extended weekend coverage of the Ryder's Cup to 2030.
ESPN, on the other hand, will be able to cover more of the Premier League highlights. Since these stations are in competition, they are likely to charge a hefty price even for highlights. This is essentially why ESPN does not have much coverage of NHL highlights.
For this agreement, both sides seem to benefit. It simply makes sense.
Check back for analysis on the next highlight deal on Wednesday.
Launching #Highlightdeal!
Hello everyone,
Today I will be kicking off my social media campaign to expand my coverage on sports business news. Every weekday I will be providing updates through the Sports Business Zone blog, Twitter, and Facebook accounts. I'll also be debuting #highlightdeal, which will cover a significant sports business topic occurring at the time.
Mondays, Wednesdays, and Fridays will be when highlight deal articles will come up. On Tuesdays, I'll be writing an opinion piece. And on Thursdays, I'll be providing the traditional Throwback Thursday which will look back at a significant deal that happened in the past.
Check back for updates, and be sure to follow Sports Business Zone on Twitter and Facebook!
Today I will be kicking off my social media campaign to expand my coverage on sports business news. Every weekday I will be providing updates through the Sports Business Zone blog, Twitter, and Facebook accounts. I'll also be debuting #highlightdeal, which will cover a significant sports business topic occurring at the time.
Mondays, Wednesdays, and Fridays will be when highlight deal articles will come up. On Tuesdays, I'll be writing an opinion piece. And on Thursdays, I'll be providing the traditional Throwback Thursday which will look back at a significant deal that happened in the past.
Check back for updates, and be sure to follow Sports Business Zone on Twitter and Facebook!
Tuesday, December 10, 2013
NFL Power Rankings: Social Media
According to this article from Technorati, communications company WCG comprised an infographic ranking all NFL teams according to "reach, relevance, and resonance across digital and social channels". The San Francisco 49ers ranked first, with the Dallas Cowboys and New England Patriots at second and third, respectively. They seem to have a massive lead on the rest of the NFL.
Social media, of course, is a rapidly growing and changing environment and sports leagues and teams have launched campaigns targeted to their fans across different platforms. It is important that a team is very capable of connecting and reaching out to fans through social media while maintaining those relations.
What do you think about these rankings? Are they surprising at all?
Social media, of course, is a rapidly growing and changing environment and sports leagues and teams have launched campaigns targeted to their fans across different platforms. It is important that a team is very capable of connecting and reaching out to fans through social media while maintaining those relations.
What do you think about these rankings? Are they surprising at all?
Thursday, December 5, 2013
Spurs/Wolves Game Postponed After Smoke Fills Mexico City Arena
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| Christian Palma/AP |
Undoubtedly there are thousands of disappointed fans. The NBA holds international exhibitions every year during the preseason. Since this was a regular season matchup, more was at stake, and fans would be treated to a more competitive game.
A fire apparently started in the arena's generator room roughly 45 minutes before the game, spreading smoke throughout and prompting the evacuation.
How will this impact Mexico City's future of hosting games? Would the NBA consider looking elsewhere when planning regular season games internationally or would they consider this a single incident and try again in the near future?
Source
Wednesday, December 4, 2013
Monday, December 2, 2013
Introducing Sports Business Zone!
Hello everyone,
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| Photo:IStock |
My name is Sean Saizan, and I am the creator of this blog, Sports Business Zone. I made this blog in addition to opening numerous social media accounts under the Sports Business Zone brand with the intention of discussing important business news relating to sports in general.
Very soon I will begin to report business-related news in the sports world on a daily basis. This will range from signings and trades to significant sponsorship deals between a sports team/league and a major organization, and everything in between. In addition, I will be discussing how circumstances or events could impact brands and businesses. Everything that I discuss will come from credible, unbiased sources. Sports Business Zone will also have social media accounts such as Twitter and Facebook to further interact with users and keep up to date with business related news in the sports industry.
That is Sports Business Zone at a glance. Soon I will be providing regular updates to this blog as well as Sports Business Zone's media accounts.
I will leave it off at an article I found yesterday from Sports Networker, written by Mike Wisniewski. Titled "What Can We Learn From Sports' Blunders on Social Media Sites?", this preaches common sense: be respectful on social media sites especially when you represent a brand. What was most striking to me was the example about remembering the audience. Always be respectful even if it's to people who are not respectful in return. It will come back to haunt the brand as it did to the Kansas City Chiefs.
This is Sports Business Zone signing off, with more content coming soon.
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