Bust, Boom & Hope
Bust, Boom, Hope
"Bust": Top Five Reasons the Armageddon Is Near 1. The NHL is being forced to endure the embarrassment of making two deals for the same property now that a seven-year, $375 million deal is in doubt by an Ontario judge's ruling that the league reneged on an original deal with beer producer Labatt to sign with MillerCoors and Molson Coors. It was supposed to be the most lucrative deal in NHL history. But the Ontario Superior Court ruled in favor of Labatt's accusation that it already had an agreement in place with the NHL before the league reached its deals with Coors. Anheuser-Busch is Labatt's parent company and is already the beer sponsor for 22 of the 24 teams based in the U.S. The NHL is expected to appeal. The rejected Miller-Coors deal not only robs the NHL of revenue, but also draws into question the league's management. 2. A major NBA turf war is brewing in The Big Apple with the soon to be Brooklyn Nets making the first legitimate threat to the Knicks' territory in 65 years. The Nets insist there are enough basketball fans in the city to support two pro teams, but new owner Mikhail Prokhorov has ruffled feathers with his declaration that Knicks fans will be turned into Nets fans. And the Knicks have garnered their own share of bad PR by raising ticket prices almost 50 percent for next season, allowing the Nets to promote themselves as the cheaper alternative just five miles away. As the Nets build an arena for $800 million, the Knicks are putting $800 million into Madison Square Garden. And the most vicious battle may be coming up for the Orlando Magic's likely free agent center Dwight Howard. 3. Nine MLB teams are in violation of the league's debt service rules, which limit a team's debt to 10 times its annual earnings. The culprits -- the Dodgers, Mets, Orioles, Cubs, Tigers, Marlins, Phillies, Rangers and Nationals. Major League Baseball is saying it isn't concerned, that most teams are on the way back to compliance. But former MLB Commissioner Fay Vincent said that he would consider the number of teams in violation of the sport's debt rules to be troublesome. 4. Izod IndyCar Series drivers are having a hard time getting sponsorships and that means some of the top drivers on the circuit are having to limit their schedules. That is raising the question of how IndyCar is supposed to reach and maintain mainstream viability when some of its best and most popular drivers aren't competing in enough events. Fans want to know they're watching the best. The sponsorship struggles are slowing down the progress CEO Randy Bernard was trying to make on the circuit's television package. 5. Red Bull hasn't been able to renew gold medal-winning snowboarder Shaun White, which is opening the door for a new beverage partner to sign one of the nation’s most recognizable athletes. White received more than $1 million annually from Red Bull in the last deal. His new deal could approach $3 million, a reflection on the value of Olympic fame. "Boom": Top Five Reasons That Prosperity Is Right Around The Corner 1. The sports business world has been abuzz over Chinese tennis player Li Na's French Open victory, which has been a launching pad for endorsement possibilities. Nike introduced the Li Na Collection immediately after Na became the first tennis player from China to win a Grand Slam event. The apparel company has long targeted China for growth and gave away free Li Na posters at over 50 Nike stores in Shanghai, Beijing, Guangzhou and Chengdu. Na also has recently signed endorsement deals with watch brand Rolex, ice-cream maker Haagen-Dazs and medical tape developer SpiderTech. Na broke away from the Chinese government's sports system in late 2008 under an experimental reform policy for tennis players dubbed "Fly Alone." She was given the freedom to choose her own coach and schedule and to keep much more of her earnings: Previously, she turned over 65 percent to the authorities. Now it's 12 percent. 2. The move of the Atlanta Thrashers to Winnipeg is already paying dividends for buyer True North Sports & Entertainment. A "Drive to 13,000" season-ticket campaign lasted less than 72 hours and never reached the general public. The pre-sale was set aside exclusively for AHL Manitoba Moose season-ticket and mini-pack holders and corporate sponsors. Afterward, a ticket waiting list was capped at 8,000 people. Fewer than 1,000 tickets at the 15,015-seat MTS Centre will be available on a per game basis to the general public as the luxury boxes take an additional 1,000 seats while the NHL requires a few hundred seats be set aside for players and their families as well as league executives. 3. American Airlines has been doing everything it can to cash in on having the naming rights to both home arenas in the NBA Championship series. The airline launched the "All American Airlines Shoot Out," a social media game played on Facebook and Internet-ready mobile devices that allowed users to shoot baskets for either the Mavericks or the Heat. American also gave away free airline tickets as promos around the NBA Finals.. A total of 10,000 single-use discount codes were given to fans who registered, including 100 codes worth 50 percent off their next flight to or from Dallas or Miami. American also had promotions during games for free tickets and official watch parties. 4. The NBA says that this year's Finals will be the most widely distributed in league history. The Mavericks-Heat series has been televised live in 215 countries and territories and in 46 languages. In addition, all games have been made available live online for the first time on mobile devices in 200 countries and territories. And the first international in-home 3D broadcast of the NBA Finals was available in several major markets, including Australia, China, France, Turkey and the U.K. 5. Demand for Mavericks merchandise has been so strong during the playoffs that the team is considering adding retail stores in the area during the off-season. In addition to its store at American Airlines Center, the team has operated one other Dallas Mavericks Ultimate Fan Shop, where sales have tripled. Now the team may add two more stores, one near Fort Worth. Meanwhile, the Mavericks-Heat Finals matchup sent NBA merchandise sales soaring 20 percent past last year’s levels and over the $2 billion mark. "Hope": Top Five Reasons That Creativity Is The Key To Economic Survival 1. AEG is encouraged at prospects that the City of Los Angeles will sign off on a deal for a planned NFL stadium in downtown by July 31. AEG wants the city to issue $350 million in municipal bonds to relocate the West Hall of the Convention Center -- where the proposed Farmers Field will sit -- and has promised those will be paid off by new revenue streams created by the project. The target date for an NFL team in Los Angeles is the 2016 season.AEG is paying an estimated $45 million over the next year on an environmental impact report, designs for the stadium and replacement hall, and pursuing an NFL team. 2. Now that he has decided to retire, Shaquille O'Neal is looking for new ways to occupy his time and cash in on his fame. One move will be working for ESPN. O'Neal also gave a huge boost to the upstart Tout by using the video site to announce his retirement. O'Neal's retirement video reportedly gave Tout, which launched a little more than a month before, more than 500,000 views in the first three hours. The relationship began when O'Neal discovered the site shortly after its launch. O'Neal announced his retirement by posting a Tout video to his more than 3.8 million Twitter followers. He received a seat on the company's advisory board and a small equity stake in the company. 3. Miami Heat Forward LeBron James is looking to expand his brand by partially bankrolling a planned luxury lifestyle concept store called "'Unknown" that's slated to open in Miami this fall. The store will open with a mix of apparel and footwear with featured brands to include A.P.C., Original Fake and Nike. It is planning for a November opening, likely on South Beach. 4. NASCAR has begun a year-long initiative to maximize exposure for its drivers on original and reality programming. That effort has led to four drivers being slated to appear in the June 26 episode of A&E's "The Glades." The lucky foursome is Tony Stewart, Carl Edwards, Brian Vickers and Joey Logano. In the past year, NASCAR content also has been featured on "Undercover Boss," "Breaking In," "Necessary Roughness," "American Pickers" and Cartoon Network and NASCAR also has movie projects in the works. TV and movie product placement offers NASCAR a shot at broadening and diversifying a fan base that has been growing older. 5. New WNBA President Laurel Richie, who had never attended a league game before taking over her position, has made widening the league fan base her top priority. The league has an 80 percent ticket renewal rate, highest in its history. Eight of 11 teams saw attendance increases last season. Those statistics have created optimism that that the women's league has considerable upside.

