Professional Documents
Culture Documents
GoAl stAndArd
Minnesota United FC opens a stadium that connects
its passionate fans with the community and gives it
a vibrant home. Welcome to Allianz Field.
PAGE 22
NBA to offer teams Diverse group of execs How NFL hopefuls 1989 rewind:
global sponsorship on early list to follow manage their social Aikman on Rozelle’s
opportunities. Big Ten’s Jim Delany. media presence. final NFL draft.
PAGE 6 PAGE 8 PAGE 18 PAGE 38
dynamicpricingpartners.com
SPORTS BUSINESS JOURNAL
67$7(2)3/$<
RATINGS GAME
Rain pushed up the start of Sunday’s
final round to 9 a.m., depressing the size
of the CBS viewing audience. Here’s how
the live audience (in millions) compares
for each of Tiger’s five Masters triumphs.
20.3
19.2
14.6
13.1
10.8*
Tiger’s Back!
The gallery at the 18th hole got the first look at Tiger Woods, newly crowned Masters champion, after he
rolled in a putt to win the tournament last Sunday. It was the 43-year-old Woods’ fifth Masters victory and
* An additional 4.5 million tuned in to the encore
his first since 2005, the longest gap ever between wins at the world’s most famous golf event, and it capped broadcast during the traditional viewing window of
an incredible comeback from injury and scandal since his last major triumph at the 2008 U.S. Open. 2-7 p.m. ET
CASH ONLY
FASHION SENSE
Size of the check Woods got for his victory, the first time a Masters winner has ever received more than $2 million.
ODDS ARE
52$5,1*$+($'
Nike stock added more than $2 billion
in value during Masters week, while
companies such as Callaway,
Acushnet Holdings (owner of Titleist)
and Bridgestone also had big gains.
THE METER
48,(7,1*'2:1
Odds that Woods
will pass Despite his victory, early
JACK NICKLAUS’ expectations are that Woods will
record of 18 not fully recapture his power as
Getty Images (6)
“IT FITS,”
career major an endorser because of his age
wins, down from
25/1 before his and connection to past scandals.
said Woods, after slipping the famed
win at Augusta.
green jacket on for the fifth time.
L
top stories. Also, check out
eadership attributes and advice ron seMiao, nFL ViCe president oF pro- Buzzcast in sportsbusiness
for young people are constant graMMing and Media eVents: “Work hard, daily’s Morning buzz, our
daily two-minute look at the
touchpoints in our industry. Many so you can lead by example, and support
stories of the day.
look for pearls of wisdom and guidance your people. You need to trust your people,
when it comes to the challenges of leading support your people and guide them.”
people, and we are constantly asked about earL santee, popuLous Managing direC-
the qualities young people need to get into tor For the aMeriCas: “I’ve just focused on
the sports business. That’s why I couldn’t being the best servant leader I can be. My
pass up the opportunity to ask five accom- job is to make others better, and I do it by the entire contents
plished executives — among our Champi- understanding who they are and what they of this magazine are
copyrighted by street &
ons Class of 2019 — at the World Congress want. My job is to find the road map that
AbrAhAm mAdkoUr smith’s sports business
of Sports how they define leadership and they can be successful on. It’s personal.” journal 2019 with all rights
executiVe editor
the advice they give young people. Here reserved. street & smith’s
are their answers edited for brevity and adViCe is a registered trademark
of American city business
clarity: seMiao: “I’m going to use the words of journals, inc. reproduction
Jim Valvano. Don’t give up. Don’t ever give or use, without permission,
Leadership up.” of editorial or graphic
content in any manner
Minnesota Vikings Coo keVin Warren: FiLippeLL: “The one thing the younger
is prohibited. street &
“Leadership would be doing things that at people may not know how to do as well is smith’s sports business
least 99 percent of the people around you communicate what you offer. What is a skill journal (issn-1098-5972)
don’t do. They can do it, but they don’t do it. set that you do? Tell me what is the best is published weekly, with
the exception of the first
That is really true leadership, to make your skill you offer me so that I can fit you into week of january, the first
mind up and have the grit to do things that wherever I need you.” week of july and the last
others will not do. And also, be consistent. Warren: “It takes grit. Meaning that you week of december, for
That is the sign of a true leader.” are willing to do anything and everything $297 a year by street &
smith’s sports business
ForMer iMg Co-Ceo bob kain: “Great that it takes, within the rules, within the journal, at 120 west
leaders have to be great executives, first. laws, and by treating other people with re- morehead street, suite
You can’t lead until you’ve accomplished spect, to get things done. It’s a long game, and 310, charlotte, nc 28202.
in canada $360 per year,
some things to gain respect. You receive a an overnight success is probably 25 years.
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become a leader, it flip flops. You have to cally tough.” and expedited air delivery
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stop taking credit and start giving credit. santee: “Sometimes young people are periodicals postage paid at
It’s a total transition. You go from being the afraid. Afraid to commit. Afraid to engage. charlotte, nc and additional
“
doer to sometimes the cheerleader and the Afraid to understand. And they’re worried mailing offices. street &
smith’s sports business
inspirational leader. Not everyone can do they’re going to make a decision that affects
journal is a publication of
it. Those skills don’t always translate. Some them for 100 years, not just the first year. American city business
of the greatest salespeople, most success- So, getting them to understand they have journals, inc. street &
Leadership would be ful people in our company, weren’t going a long career ahead is hugely important in smith’s sports business
doing things that 99 to ever be great leaders. And you had to how they look at things.”
journal is an equal
opportunity employer.
percent of the people convince them [of] that, which isn’t always kain: “Be prepared. Figure out what Postmaster: please
easy because they always want to climb the you’re trying to do, what you want to do, send address changes
around you don’t do. corporate ladder. But not everybody can what the company does. Be prepared to speak to street & smith’s
… That is really true make that change.” to the company in some intelligence. Tell
sports business journal —
subscriber services,
leadership, to make teaMWork onLine Founder buFFy FiLip- them your best skills and be willing to get p.o. box 36637,
peLL: “People who are inspirational. That’s in at just about any level. You can come in charlotte, nc 28236-6637
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This week
4 | A p r i l 2 2- 2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
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upfront teams had pushed for
the new inventory so
they could work with
more global brands that
had shown interest in
sponsorships.
T
he NBA has come up with another groundbreaking branding and activation throughout Asia and in other global
strategy to increase its global presence and bolster markets.
team revenue, this time allowing clubs to sell in- The move follows the league’s decision to allow teams to
ternational sponsorship rights. start selling jersey patch advertising starting with the 2017-18
Owners approved a three-year test of the International Team season. Those patch sponsors may be among the brands most
Marketing Program at their April 12 board of governors meet- interested in the new international inventory. While teams
ing in New York. can sell the new global rights to any two sponsors, many team
The program is significant in that it will allow each of the naming-rights and jersey patch sponsors are global brands
NBA’s 30 teams to sell global marketing rights to two current and would be likely targets in the new program.
or new sponsors beginning next season. Previously, the league “We decided to create a program to enable team partners to
controlled all international sponsorship inventory. Domesti- help market the NBA globally and to give teams greater incen-
cally, teams are limited to a 75-mile marketing territory, a tive to create content focused on international markets,” said
policy that remains in place. Amy Brooks, president of the NBA’s team marketing and busi-
NBAE / Getty Images
The international program allows teams to include global ness operations division and chief innovation officer. “It makes
advertising and marketing rights outside the U.S. and Canada; sense to work with these partners to create programs on plat-
activation at retail locations globally outside the U.S. and forms outside the NBA.”
Canada; and rights to post non-game team content on the spon- The program also stands as a lucrative new revenue stream
sors’ own digital and social media sites such as their com- for teams.
6 | A p r i l 22 -2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
SportS BuSineSS Journal
naming-rights
sponsors wanting to A
expand their global PermAnent
presence, such
PAtch
as orlando magic
partner amway,
are seen as likely
candidates to buy nBa ownerS voted to
the new international continue the jersey
rights. patch program
indefinitely.
this move, which
was not surprising,
was made separately
from the new interna-
tional marketing
efforts (see related
story). the three-year
test program started
with the 2017-18
season.
changes to the
patch program
include allowing
teams to put the
advertising on nike
authentic jerseys sold
globally. previously,
teams could only sell
the uniform with the
For the Orlando Magic, which is beginning Marketing experts predict a wind-
“We decided patch in the u.s.
arena naming-rights renewal talks with Amway, fall for NBA teams. another change
the ability to package the new global rights to a “As popular as the league is glob- to create a allows a team’s patch
company that does 90 percent of its business over- ally, one of the ways to engage fans program partner to now have
seas is seen by team executives as a huge financial is through sponsorships,” said to … help creative variations of
opportunity. Emilio Collins, chief business of- their logo for different
In 2009, the Magic signed a 10-year, $40 million ficer for Excel Sports Management,
market the team uniform styles.
naming-rights deal with Amway and the team is which represents some teams in NBA globally For example, a brand
looking at the new international marketing rights their patch deals. “If done the right and to give could alter its patch
to help bring a massive increase in the value of way, it is a phenomenal increase in on a throwback jersey
a new deal. value to extract from the market. The
teams greater or city edition uni-
“Frankly, in our situation, I believe that these more that teams have the ability to incentive to forms used by teams
rights will help drive almost the doubling of value engage fans around the world, the create content throughout the
of what we receive for naming rights,” said Alex more the league can grow.”
Martins, chief executive officer of the Magic. “It Brooks said that while the new
focused on season. — J.L.
is that significant. On a league basis, it will open plan offers teams more revenue, international
up new partners and categories.” that’s not the primary goal. Instead, markets.”
As NBA teams hit the market following the she said it’s to take advantage of the
completion of the three-year jersey patch test global reach of team partners and
program, the international rights could provide to create more targeted non-game
a major enticement for renewals or to attract a content. Under the new plans, spon-
new jersey patch partner. All 30 teams have patch sors can use non-game content such
deals that range in value from $5 million to $20 as behind-the-scenes features but
million. game highlights are prohibited.
Consider the Milwaukee Bucks, which count The league has been working on
Harley-Davidson as their jersey patch partner. the change for some time as teams
Until now, Harley-Davidson could not activate clamored for global rights. Earlier
around their patch deal overseas. Now, the Bucks this year, the league extended glob-
can offer international rights that would allow al digital rights to teams and now
the company to use Bucks marks at retail loca- comes the new international market-
tions outside the U.S. and Canada. ing program.
“This is a big deal to us as we go into talks to Brooks added that because two-
extend our patch partner,” said Matt Pazaras, thirds of a team’s social media fol-
senior vice president of business development lowers are from outside the U.S. and
and strategy for the Bucks. “It is a massive ben- the majority of NBA team marketing
NBAE / Getty Images (3)
efit. In our case with Harley-Davidson, their big- partners are global brands, the tim-
the league saw
gest growth market is in China and in other parts ing is right for the league to hand enough in the three-
of the world. There is so much equity in team global rights to teams. year test to approve
brands and the value of partner activation outside The league will restrict some cat- patch sponsorships
the U.S. We see so much more value so this is egories that are still to be deter- indefinitely.
incredibly helpful to us.” mined, Brooks said.
LeBron James and the Lakers missing ■ Athletic director, vice president, ■ President, CEO, Toronto Blue Jays ■ Deputy commissioner, COO, Big Ten
the playoffs. But the regular-season Northwestern ■ Alma mater: Princeton ■ Alma mater: Northwestern
declines were slight and there are still ■ Alma mater: Illinois ■ Played college football; former ■ College wrestler, Big Ten
almost two months of postseason play ■ Chaired the first NCAA Division I MLB Executive of the Year with champ, 22 years at the conference
remaining for a ratings turnaround. Council Cleveland office
8 | A P R I L 2 2 -2 8 , 2 0 1 9 WWW.SPORTSBUSINESSJOURNAL.COM
SPORTS BUSINESS JOURNAL
an Italian family in upstate New York. because he had such a record of ac-
“Some people think Yogi’s more quot- complishment on the field, and he was
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Corporate sponsors and media and the NFL 100th season mark. An
NFL-branded store will operate down-
town in Cotton-Eyed Joe from Tues-
Vivid Seats will not be in “We are not participating in the platform,” said There should be one or more ticketing compa-
Geoff Lester, Vivid Seats chief commercial officer. nies added before the start of the upcoming
NFL Ticket Exchange; “Our strategies were not aligned and it didn’t season, Gallo said. “We are not in a position to say
make the most sense for us to participate.” who yet, but we do expect the network to expand
others expected to join Vivid Seats, however, will still sell NFL tickets on and grow,” he added. “We are in negotiations with
%<(5,&),6+(5$1''$1,(/.$3/$1 its platforms independently. “Nothing changes for other emerging players right now.”
us,” added Lester. “We’re still going to have Prior to 2018, Ticketmaster was the only
VIVID SEATS has withdrawn from its preliminary perhaps the broadest selection of inventory of authenticated place to go for NFL tickets. In the
arrangement to join the NFL Ticket Exchange after NFL tickets anywhere.” first year of the new exchange, 4 million tickets
talks ended between the two sides in the last few Robert Gallo, NFL vice president of club were sold, Gallo said. That is not an exhaustive
weeks. business development, used similar language, figure for total NFL sales, as it does not include
The exchange launched last year with saying, “We just never other brokers (like Vivid) or personal sales (Gallo
Ticketmaster, StubHub and SeatGeek, got strategically declined to disclose total NFL ticket sales).
allowing fans to buy authenticated aligned and at this The exchange collected 2 million new names
primary and secondary tickets through point we do not expect that the NFL and its clubs did not have prior, Gallo
those three companies. them to be formally said.
Vivid Seats last year quietly negotiated to join as part of the network.” Another key trend is mobile ticketing. Gallo said
well, reaching what sources close to the company Asked why the talks broke down, Gallo rejected half of the fans who entered NFL stadiums in 2018
called a preliminary agreement. But a deal was the premise, responding, “I wouldn’t say it was a used a phone for their ticket, up from 10 percent
never formally announced, and the ticket integra- breakdown in talks, like I said it was a shift in in 2017. He added that five to six teams were fully
AP Images
tion planned for various points during the 2018 strategy. We both agreed it no longer made sense mobile for tickets and he expects the figure to
NFL season ultimately did not occur. to move forward.” He did not offer details. double this season.
10 | A P R I L 2 2 -2 8 , 2 0 19 WWW.SPORTSBUSINESSJOURNAL.COM
SportS BuSineSS Journal
12 | A P R I L 2 2 -2 8 , 2 01 9 WWW.SPORTSBUSINESSJOURNAL.COM
Nominees and winners will be recognized for
outstanding achievement in the business of sports
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Calls by Nantz, Tirico will be part the tournament because all of a sudden somebody
could hit a really bad shot and you never know what
I
t’s no surprIse that Jim Nantz clips online. But immediately after moment,” Nantz said. “It’s a one shot deal at it. The
and Mike Tirico used different the tournament, when he was asked moment comes and goes.”
styles to call the end of the his- on Golf Channel to describe his call,
toric Masters tournament. he couldn’t remember. “I just did it John Ourand can be reached at jourand@sports-
After all, Nantz was on CBS and let from the top of my head,” he said. businessjournal.com. Follow him on Twitter
the televised pictures tell the story. For the record, after Tiger Woods @Ourand_SBJ.
Tirico was on Westwood One radio, sank his tournament-winning putt on
and had to describe the scene for his the 18th hole, Nantz simply said, “A re-
listeners.
What is most surprising about their
turn to glory.” Then he went silent for
nearly three minutes as Tiger hugged
this major moment
two calls, though, is how similar they By John ourand his family and competitors. spoke for itself
were. Both announcers, two of the best Tirico said, “Here it is. Woods has
in the business in my opinion, used the two feet to win the Masters. Everyone I asked JIm nantz about his decision to
same general approach to describe one quiets down. Back behind the ball. remain silent for nearly three minutes after
the most historic golf events they’ve ever covered. Woods putts it. It’s in. He has done it. Tiger is back. tiger woods’ masters-winning putt, during
That is, they both eschewed scripts or stats and Tiger is back on top. Tiger Woods — the 2019 Masters which time woods celebrated with his family,
wound up getting lost in the mo- champion. One of caddie and other golfers. nantz, who called the
ment. the great comeback final hole from butler cabin, said remaining
I found it fascinating last week stories in American quiet was one the easiest decisions he made.
when both announcers — in sep- sports history. Mas- “After that putt dropped on 18, there wasn’t
arate interviews with me days ters No. 5. Major a chance in the world that i was going to say
after the tournament — admit- No. 15. And Augusta anything. lance barrow’s a great producer
ted that they could not remem- National roars like and we work together exceptionally well. He’s
ber exactly what they said. But never before.” in the truck half a mile away. i’m in butler
both were articulate about the Both understood cabin already. And nick [Faldo] is 300 yards
style they used to call a final putt their roles in the away from me in the tower on the 18th green.
that will be replayed in highlight historical signifi- we had a three-way line of communication go-
reels for decades. cance of Woods’ ing out to the millions.
“I have a hard time going win. Their voices “As soon as the ball dropped, i said to lance
through it with great detail be- will narrate a clip on the talk-back switch, ‘i’m not saying
cause nothing was scripted out, that is certain to be anything for a long time.’ lance and i wanted
and I’m not exactly sure of what shown in highlight to make sure since that none of us were
I said in that entire scene at the reels for decades to together, the next time somebody spoke it was
CBS Sports; Getty Images
18th,” Nantz said. come. going to be me. we were going ride this thing
Tirico had almost the same “I thought about out and sit back and enjoy it. i never would
reaction. When I talked to him s ay i n g ‘ T i g e r ’s have jumped on a moment that was that big. it
on Monday following the tour- back,’” Nantz said. was just so big. there was nothing you could
nament, he had heard his final Mike Tirico and nantz didn’t script their calls. As “But when the clip do to add to it. You could only ruin it.” — J.O.
call several times from audio tirico said, “i just did it from the top of my head.” is played back 200
14 | A p r i l 22 - 2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
MAY 29-30
2019
RENAISSANCE CHICAGO
DOWNTOWN
CHICAGO, IL
FEATURED INTERVIEW
WEDNESDAY, MAY 29
16 | A p r i l 22 -2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
SBJ’s College & University Program:
W
ith the NFL draft the Real deal how oFteN explicit language or content,
the pRospeCts
coming up this posted to theIR according to the study. one
week, many of the Although access to the accounts of a player soCIal MedIa prospect, who turnkey did not
top prospects are taking a look often requires his permission, turnkey reported aCCoUNts
name but said is a projected
at their social media personas to that many times their analysts were easily
second-round pick, deleted
make themselves more attrac- granted such access simply by making a
request through the player’s social media page. 11,500 posts.
tive to future NFL employers
and marketing partners, accord- to receive a blue verification badge from
ing to a study conducted by Facebook, for example, account holders must
Turnkey Intelli- provide the site a photo iD, an explanation as to
By DAVID gence on behalf of why they should be verified, and relevant
url(s) that prove people are interested in their
BROUGHTON Sports Business
Journal.
Turnkey re-
content.
“obtaining verified status on social media 56%
deleted at least one
platforms is a social media insurance policy for
57%
viewed the public social media old post
accounts of 100 of the top NFL athletes, as it prevents fraud, protects the
draft prospects to see how so- athlete’s reputation, and eliminates any chance
of an unnecessary pr issue for a team,” said A few times per week
cially engaged each player has
33%
been; if inappropriate content rich calabrese, turnkey executive vice
or language was seen on his president and general manager, who oversaw
13% 33%
public profile; if he publicly en- the project.
1-2 times per day
gaged in controversial issues or
shared political opinions;
whether he talked about an NFL 61%
twitter 82%
10% Deleted 500+
posts
Deleted 1-99
posts
10% 44%
team or not; and if he had taken 3+ times per day
steps to clean up his accounts
verified instagram
verified
8%
over the past few months. Facebook
verified Deleted 100-499 Did not delete
Every prospect had at least posts any posts
one social media account.
polItICal & soCIal eVIdeNCe oF dRUG NFl teaM eXplICIt eXplICIt photo
CoMMeNtaRY & alCohol Use MeNtIoNs laNGUaGe oR VIdeo CoNteNt
42% 19%
demonstrated or
45% 60% 23%
mentioned an
shared a political condoned the use used explicit engaged with
nFl team in
opinion of drugs and/or language explicit content
some context
alcohol
18 | A p r i l 22 -2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
SPORTS BUSINESS JOURNAL
HERE ARE TURNKEY’S ASSESSMENTS OF PROJECTED EARLY, MIDDLE AND LATE-ROUND DRAFT PICKS.
PROJECTIONS ARE BASED ON CBS SPORTS AND ESPN, AS OF APRIL 15.
jerrytillery
鎌倉大仏殿高徳院 (Kamakura Daibutsu)
Devin Bush II
@_Dbush11
12 Mar 2015
照してください
jerrytillery
dbush_10 || O P P O R T U N I T Y ||
MARCH 5
Mack Wilson
@iam__mw3o
18 Jan 2015 10 Ma
ar 2019
DEVIN BUSH II (FIRST ROUND) JERRY TILLERY (LATE FIRST OR MACK WILSON (LATE SECOND ROUND)
Michigan, linebacker EARLY SECOND ROUND) Alabama, linebacker
Notre Dame, defensive tackle
f Similar to other prospects, his most frequent f Posts feature workouts, faith, family, and
posts are about his family and football. f His social behavior is tame and pointed. He significant other.
f Strong social following on multiple platforms has been careful not to have anything highly f Has used language that is not league or
with a current social reach of over 57,000. contentious on his profiles. brand-friendly, including last week on his
f Advocates against the use of drugs, going so f Rarely posts anything from himself to social Facebook bio. His bio on Twitter referred to
far as to share facts and the negative impact media (mostly shares and retweets). a biblical passage and information on how to
of drug use. f On Instagram, travel and adventure posts contact his marketing agency.
f Explicit language has been seen on his social were his most common outside of football. f Often mentions God and being “blessed” but
profiles; has tweeted negatively about other f Behind the scenes posts. He shares photos of could come across as disingenuous based on
teams due to his Green Bay Packers fandom. himself and his teammates in the locker other language used.
AP Images (3)
room, practice, on bonding trips, and photos f Instagram profile is private and has a small
from games. following, but accepted Turnkey’s “follow”
request within hours.
LAS VEGAS
■ POWER PLAY: Up Close with Women in Live Events on March 20
at UFC headquarters: (from left) Kris Lingle-Griffith, VP, marketing,
AEG Presents; Monica Reeves, corporate director of entertainment,
WISE Los Angeles chapter; WISE Las Vegas chapter; Stephan Hudson / 2nd Chance Photography; Scott Murdoch / Five by Five Photography
Station Casinos; Amanda Moore, VP, marketing, Live Nation Las
Vegas; Erin Calhoun, executive director of booking, MGM Resorts
Entertainment and Sports; MaryAnne Beaman, director of sales and
special events, Fremont Street Experience.
TORONTO
■ POWER PLAY:
Up Close with
Executive Women in
Sports on March 28 at
the Toronto Marriott:
NYC METRO (from left): NHL EVP
■ POWER PLAY: Up Close with Women from Major League Soccer on March 12 at Proskauer: (from Kim Davis, NFL COO
left): MLSSoccer.com reporter/moderator Susannah Collins; JoAnn Neale, president/CAO; Jen Maryann Turcke,
Cramer, SVP, partnership marketing; Emily Unruh, VP, retail development; Jennifer Maurillo, SVP, retired NBA CMO/
events. EVP Pam El, and TSN
Sportscaster/modera-
FOR A SLIDESHOW of “Power Play” events across the country, visit sportsbusinessjournal.com. tor Katie Bierness.
WZOW\W___[JR[JLKWU;]J[KZQJM Commitment by
AAC schools could
Bobbleheads continue
run as most popular
Bowl swag includes
electronics, apparel
This offseason will
test relationship
sweeten media deal. MLB game promotion. and even cornhole. between MLB, union.
3$*( 3$*( 3$*( 3$*(
A Home Of
ess than 24 hours before the opening of Allianz
Field on April 13, Bill McGuire was putting togeth-
er a checklist.
As the final touches were being put on the $250 mil-
Their Own
lion, 19,400-seat stadium, the 71-year-old Minnesota
United FC owner and managing director circled the concourses,
looking for anything that didn’t match up with his vision. No detail
was too small for review. Did the 3-foot-tall refrigerator units at
the portable food stands ringing the concourse, as opposed to the
typical 6-foot-tall ones, provide the clear view of the field he had
the grand opening of Allianz Field is hoped? Were the walls of the premium areas decorated in a way
Courtesy of Minnesota United FC
AlliAnz Field
By The numBers
construction
start June 2017
construction
cost $250 million,
privately financed
architect
Populous
contractor
Mortenson
(B) capacity
19,400 (able to be
expanded to 25,000)
supporters
section
2,920 safe-standing
terrace
closest seat to
the pitch 17 feet
farthest seat
from the pitch
125 feet
number of taps
in the brew hall
96
(C) (D)
(a) a sellout crowd came When a decision needed to be made, he was quickly summoned. A 5,800-square-foot bar sits across the other side of the pitch,
out for the first game, a “When you look at some of the great clubs that have emerged featuring 96 taps of local beer. On the bar’s roof deck, a 250-per-
3-3 draw with nYcFc.
in America like Portland or Sporting Kansas City, but also in the son area that is reserved for group sales, there is the stadium’s
(B) the stadium club
offers approximately 900 great clubs across the world and even in the tiniest towns in the retro analog clock and manual scoreboard, which resemble what
seats at midfield. U.K., there is a relationship between the team and community the team had when it played in the North American Soccer League.
(C) the team has chosen that far transcends building just another big stadium,” McGuire The exterior of the building is an ode to Minnesota’s natural
to keep several naming- said. “That’s what we needed to be a part of; we needed a stadium resources, with the skin of the stadium aiming to depict the
rights opportunities that reflects the culture of our community and our sport.” Mississippi River and LED lights able to replicate the views of
open.
That stadium is Allianz Field. It might not have the massive the Northern Lights.
(D) this collage of fans
size of 71,000-seat Mercedes-Benz Stadium in Atlanta, or the On that long-awaited game day, fans began to congregate out-
from recent world cups
was personally selected luxurious glitz and glamour of LAFC’s Banc of California Sta- side in nearby parking lots and at bars hours before kickoff. A
Courtesy of Minnesota United FC
by team owner bill dium, but the latest soccer-specific stadium to open in MLS offers spring blizzard had dumped almost a foot of snow on the city
mcGuire. something more to a community that has had momentary suc- the day before, but that did not dampen the enthusiasm for the
(E) the manual clock is a cesses in professional soccer over the last four decades — a true grand opening. As many stepped into the venue for the first time,
nod to the sport’s past in home. Minnesota United CRO Bryant Pfeiffer said there were two things
minnesota.
That sense is evident across all of the stadium’s features: a everyone seemed to do: take a picture or a selfie, and then get
(F) there are nearly 100
local beers on tap at the
2,920-person safe-standing supporters section built as steeply as emotional, some shedding tears.
stadium’s massive bar. possible, aiming to create a wall of intimidation for opposing “There has been 43 years of soccer in this market, it’s amazing
teams and an excitement that will spread throughout the venue. to see this come to fruition,” he said. Continued on Page 24
Continued from Page 23 sented Taylor’s stake in the soccer club during the the third moment.
expansion process and in its presentations to MLS, “When you look at when the franchise was award-
Community service leading to the club being awarded in March 2015. ed and the rest of the timeline, everyone here was
For Chris Wright there are three defining moments Wright, a passionate soccer fan who played the game sprinting. As the new person on the block I said
in an MLS club’s history: the moment it is awarded growing up in England and got his start as a sports let’s pause for a minute,” Wright said. “We needed
a franchise, its first game and when it opens its executive with the Pittsburgh Spirit of the now to determine how does Minnesota United take its
own stadium. defunct Major Indoor Soccer League, also had been place in this market and become relevant.”
Wright had been part of the first two moments one of the more than 35,000 people who attended To accomplish that, Wright brought together all
for Minnesota United even before he joined the club Minnesota United’s first MLS match in April 2017 of the team’s major stakeholders for a two-day re-
as CEO in 2017. As the longtime president of the at a snow-covered TCF Bank Stadium. treat at the appropriately named Brave New Work-
Minnesota Timberwolves and Lynx and a close When he was named CEO in September 2017, he shop in Minneapolis. The club’s ownership group,
adviser to owner Glen Taylor, Wright had repre- knew the club had to maximize its opportunity for its executive team and staff, and its two biggest
corporate partners — Allianz and Target — as well
as executives from MLS gathered, said Wright, to
“declare our purpose as to why we exist.”
That group of 72 people helped the club discover
its why: to inspire and unite its community through
soccer, with a noted embrace of diversity and in-
clusivity.
“There are 251 dialects and languages spoken in
this community that is full of first-, second- and
third-generation immigrants that come from plac-
es where the beautiful game is played,” Wright said.
“That’s our market, and it’s not the football oppor-
tunity, not the basketball opportunity or the hock-
ey opportunity. We have a chance to be completely
different in this market, and our goal is to inspire
them and unite them inside Allianz Field.”
McGuire’s proposal to MLS as to why Minnesota
United and his bid should be selected over a rival
bid brought forth by the Wilf family to play at the
new Vikings stadium was quite simple: “Our pitch
was about soccer, about the legacy of soccer in this
community, what it stands for and what we’re going
to do with [Allianz Field],” McGuire said. “Having
group, this list represents the Family founded the ments both inside and outside, I think what it does
majority of the team’s ownership advertising and Ben GrossMan perhaps more than any other in the league is reflect
group. Glen taylor and the pohlad marketing firm Mithun Strategic consultant and the brand that Bill and Chris have tried to build
family came on board as part of the head of his advisory and for the club,” Garber said. “When I took a tour
team’s move to mls in 2016, the JereMy JacoBs Jr. investment practice, about a month ago, I was struck by the old school
same year as the ceremonial ground- Delaware North co-CEO Selhurst Media Ventures clock — why did they do that? That’s at the core
breaking for Allianz Field. — I.T. of what this community is about when it comes to
the game.”
24 | A p r i l 22 - 2 8 , 2 0 19 www.sportsbusinessjournAl.com
SportS BuSineSS Journal
(G)
(i)
(G) owner Bill McGuire wanted a stadium (H) even before becoming ceo in 2017, I) the supporters section for the loons will
(H) that would bond the team and the city. Chris Wright was a minnesota united fan. seat almost 3,000 die-hard fans.
Kick Start inside the stadium, including for its prominent beer they have to experience this.”
in addition to answering the club’s question of why, hall and its major premium clubs. “We really want- McGuire isn’t one to boast. That was clear enough
Wright also put together a business plan for the ed to hold those assets, because once people get in when, at a youth clinic celebrating the team’s
club and its 13 business lines, giving each depart- here and see how vibrant the atmosphere is, their launch the morning of the first match, Garber and
ment monthly goals and tactics. Wright, who said value is going to skyrocket,” he said. St. Paul Mayor Melvin Carter made glowing re-
he’s a big believer in the strategy laid out by Gino The team sold out of its self-capped 14,500 season marks about the club, the new stadium and Mc-
Wickman in his popular book, “Traction: Get A tickets well in advance of the start of the season, Guire’s contributions. McGuire passed up taking
Grip on Your Business,” said, “We’re on a path to which includes 1,600 premium seats that sold out the microphone and instead offered a wave to the
really develop a solid business that makes sense of in less than two weeks. More than 5,000 people are crowd of dozens of children and parents from the
a $250 million stadium investment and a $100 mil- on a future season-ticket wait list the club is calling side of the room. Garber later described McGuire
lion expansion fee. Right now, MLS is all local rev- “The Preserve.” as someone who, like a submarine, “runs silent
enues, which makes it a tough business model, but “You wouldn’t believe the number of people who and runs deep.”
a doable business model — you have to be bullish tell me, ‘The stadium is just under 20,000 seats, why “There are many things in Allianz Field that I’m
about your own brand and you have to have a swag- didn’t you build more,’” Pfeiffer said. “In a state happy about, and all have different values for why
ger about what you’re doing, where you’re going where pro soccer has come and died or been rein- I might be happy about them,” McGuire said. “Over-
and where you’re trying to take things in your local vented by four or five teams over the years it’s all, it’s a beautiful piece of architecture, and that’s
AP Images; Nancy Kuehn / Minneapolis/St. Paul Business Journal; Courtesy of Minnesota United FC
market.” somewhat ironic that the view now is that we need important not just for the beauty sake, but how it
Wright said the goal is to have the team break a bigger venue, but that’s the beauty of it — it cre- fits into a neighborhood and a community, and how
even annually, a plan echoed by McGuire, espe- ates that scarcity factor where if there were empty it looks to people. Is it something they’re proud of ?
cially now that the stadium has opened. Wright seats, people would say I could get a ticket at any Is it something about which we have pride for and
said the ownership group has never told him that time. Now when they hear there’s a 5,000-person produces passion? If we’re proud and it works well,
they expect to make money annually, but that “they waiting list or see the secondary market, they say I think it will lead to many great things.”
don’t necessarily want to lose a lot of money either,
so we’re very deliberate.” Last year, the team ranked
17th of 23 teams across MLS in player salaries, ac- MlS stadiums under construction
cording to data released by the MLS Players As-
sociation. COLUMBUS FC INTER NASHVILLE
Moving in to Allianz Field will certainly help TEAM AUSTIN FC CREW FC CINCINNATI MIAMI FC SC
change that. Pfeiffer said the team expects to finish EXPECTED COST $225 million $230 million $250 million TBA $250 million
this year in the top five of revenue across the league. CAPACITY 20,500 20,000 25,500 - 26,000 25,000 30,000
Last year, the team hovered in the top 10 in most ARCHITECT Gensler HNTB and MKSK Populous HOK Populous
team business metrics.
EXPECTED TO 2021 2021 2021 2021 (team will 2022
Minnesota has more than doubled its corporate OPEN play in stadium in
partnership revenue, which includes the 12-year 2022)
deal it signed with Allianz for naming rights to the STATUS Expected to Team will Joined MLS in Team is Team will join
stadium that industry sources estimated at $4 mil- join MLS in continue to 2019, currently expected to join MLS in 2020,
lion annually, one of the more lucrative deals in 2021 alongside play in Mapfre playing in MLS in 2020; will play home
stadium opening Stadium until Nippert Stadium aiming to build games at Nissan
that category across the league. Pfeiffer said there construction is a stadium in Stadium until
is room for growth on that front as well, with the finished Fort Lauderdale construction is
team holding back two of its four gate title sponsor- to play for two completed
ships and several naming-rights opportunities seasons
the sierra nevada Draught House at Golden 1 center is one of the places fans can take in a sacramento Kings game.
Keeping pace
W
here Were you for Dwight Clark’s catch, Michael
Jordan’s buzzer beater against the Jazz, or Boise
State’s Statue of Liberty play?
If you were at the game when those events hap-
with the mobile pened today, you might be watching them from a
stadium’s party deck, while you are in line buying a craft cocktail, or
from the concourse as you post on Instagram or Twitter.
sports fan
Indeed, today’s fans are less interested in staying glued to their seats
and prefer instead to explore stadiums and arenas and watch games
as they mingle in social zones and bars. They enjoy trying out new
food and drinks and posting images of their experience on social
media.
teams and venues are finding new “Fans are seeking a more layered and diverse experience within a
single event,” said Ryan Gedney, national design director for archi-
ways to cater to an on-the-go crowd tecture firm HNTB. “So having the ability to move through the venue
that would rather explore than stay — change their vantage points, engage in a lot more amenities and
offerings — creates the need for a different kind of engagement.”
put in a traditional seat. In the pages that follow, stadium managers, architects, concession-
Sacramento Kings
aires and teams discuss how they are offering experiences that are
more fitting to modern fans, the technology they use and their culinary
by mike sunnucks
and social tastes.
Where will those fans be when the next big moment happens?
@Populous
+1 816 221 1500
PROUD DESIGNERS OF ALLIANZ FIELD populous.com/allianzfield
Better food
and drink
options get
fans moving Fans converge at a Sprint Center stand featuring
Benihana and its RA Sushi brand.
FOR THOSE FANS who view a day at the game as a jour-
ney, quality food and beverages are the surest way to and shopping. That includes creating food and drink
get them moving around the stadium. areas — sometimes branded with popular restaurants,
“Nothing against chicken tenders, but how fun is craft brewers or distillers — aimed at fans who tilt
it to try something new?” said Erin Zinser, vice pres- toward the higher end of the culinary scale and pre-
ident of brand activations for venue owner and man- fer a more specialized adult beverage.
ABOVE: The
ager AEG. “They are always looking to add some kind Progressive Field in Cleveland, for example, opened
Cleveland Indians
of unique fan experience.” a rebranded and refurbished Discount Drug Mart rebranded and
Zinser helped AEG bring Benihana restaurants to Club area this season. The area holds almost 400 fans, refurbished their
Dignity Health Park in Carson, Calif., and Sprint has 88 televisions and has bars sponsored by Ohio Discount Drug Mart
Center in Kansas City, complete with a teppanyaki microbrewery The Brew Kettle. And like other social Club.
LEFT: The club
chef and items from Benihana’s RA Sushi brand. and bar areas — at Citizens Bank Park, Rocket Mort- caters in part to
Mobile sports fans are all about exploring the build- gage Fieldhouse, Guaranteed Rate Field and the lovers of
ing and finding interesting food and drinks to try. In Oakland-Alameda County Coliseum — the spaces microwbrews.
return, concessionaires, venue managers and design- have drink rails, tables and standing areas to cater
ers are finding ways to increase destination dining to fans who don’t want to be stuck in their seats.
5(,0$*,1,1*
7+()$1
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AEG; Cleveland Indians (2)
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r (#0'0)#)'/'06 ELWO\EZQBPRUWHQVRQ
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whether other areas could be enhanced. are the first sports foray for Benihana
Other venues and their concession- and RA Sushi. AEG is considering
aires are switching up concepts based bringing Benihana and RA Sushi stands
on the crowd and the event. to Gila River Arena, Target Center,
Delaware North adds more drink op- Pechanga Arena San Diego and the New
tions for concerts as compared to games. York market, where it manages Barclays
Levy switches a stand at Greater Ne- Center in Brooklyn and Prudential
vada Field from American favorites for Center in Newark.
Class AAA Reno Aces games to street “We are all about diversity and broad-
tacos and cantina fare for USL Reno ening guest appeal. That’s what we look
1868 FC games. for where can we add value to the ven-
The goal is to give fans destinations ues.” said Benihana President and CEO
that are tailored to their tastes, spend- Tom Baldwin.
the Kansas city royals show off some of the upgraded food and ing and movement patterns, according Concessionaires are also figuring out
drink options available at Kauffman stadium. to Andrew Spencer, vice president of the role technology plays in the food
customer engagement and revenue for and beverage experience. That includes
“These are areas spe- The Kansas City Royals debuted the Delaware North. deploying self-service kiosks where fans
cifically designed for fans Bullpen Burger stand as part of outfield Designers have created “neighbor- can place and pay for their orders fast-
to congregate, with great areas that include bars, social areas and hoods” with varying food and beverage er.
food and drink options large concourses for fans to mingle and and architectural themes that further “We have to make the consumer’s
that complement the at- hang out. encourage fans to explore and socialize. choice as quick as possible,” said Jaime
mosphere,” said Carl Mittleman, pres- Michael Bucek, Royals vice president That was a central effort in renovations Faulkner, CEO of E15, Levy’s analytics
i d e n t o f A r a m a rk S p o r t s & of marketing and business develop- at State Farm Arena and a design prior- arm.
Entertainment. ment, said changing up and adding to ity at the Globe Life Field being built Faulkner said a consumer friendly
Other venues have freshened up bars the food and beverage mix is key as fans in Texas. touch screen and self-service kiosk can
and restaurants to draw and keep fans’ focus more on grabbing food quickly Popular national and local brands take the time to order and receive food
attention. For this season, the Cincin- and spending more time socializing. — ranging from Shake Shack to Dutch from 90 seconds at a traditional cashier
nati Reds refurbished two concourse He said the team will use the All-Star Bros. Coffee — can be part of that des- stand and cut that in half.
bars and rebranded them via a new break to evaluate ballpark traffic and tination dining mix. In other words, they can get lines,
sponsorship deal with Jim Beam. spending to see what’s working and The Carson and Kansas City stands and fans, moving. — M.S.
ACTIVATE YOUR
ENTERTAINMENT
AREAS
Use video wall displays to engage your fans.
Kansas City Royals
30 | A P R I L 2 2 -2 8 , 2 0 1 9 WWW.SPORTSBUSINESSJOURNAL.COM
SPORTS BUSINESS JOURNAL
It’s all part of an effort to bring a more reaction times to things and part of that ognition technology to track who is in the
seamless experience, said Ed O’Brien, is how does your internal communication stadium, monitor ingress/egress trends,
Clear’s head of sports. “Our goal this year system work,” said Peter Feigin, president and study where fans are making pur-
is to see those pieces together at one venue of the Bucks. chases. Meka Morris, chief revenue officer
where a fan, if they wanted, could come Fans who like to roam will often have at ISM Connect, said teams and venues
to a venue and never have to pull anything the benefit of digital screens throughout can use that data to drill down on fan de-
out of their pocket,” he said. the facilities that allow teams to message mographics and sales patterns and make
Clear isn’t alone in providing fans on the them with advertising, promotions and wiser decisions on staffing and inventory.
move with easier access. The Sacramento other content. At Vivint Smart Home Christian Lau, LAFC’s vice president for
Kings and the Utah Jazz, for example, in- Arena, home of the Jazz, Samsung in- information technology, said the team is
stalled high-tech turnstiles and ticket scan- stalled more than 600 digital screens as considering fully automated stores, similar
ners (from Skidata and VenueNext, part of a $125 million renovation that was to Amazon Go stores, that are outfitted with
respectively) to make for quicker entry. completed last year, said Bart Sharp, senior scanners and sensors that charge custom-
Once fans are inside, teams and venues vice president of marketing for the Jazz. ers for purchases and track inventory, with-
are using technology to better track their Technology provides the ability to create out the need for cashiers. For fans who want
movement, tempt them with offers and more personalized marketing offers for to order something ahead of time and pick
make sure they find what they need. fans. it up as they start to roam, they could use
Dodger Stadium, for example, brought The Jazz’s mobile app, through VenueNext, Apple Business Chat to place the order and
Apple Maps inside the ballpark uses beacon technology to track fans and then pay for it via Apple Pay.
to help fans locate restrooms, send notifications to them on deals and pro- LAFC may roll out a system by the mid-
team stores and concession motions. The system tracks fans’ spending dle of this MLS season that uses microchips
stands. Fiserv Forum, the new so that the next time they are in the building, embedded in team gear fans wear to the
home of the Milwaukee Bucks, they may receive special offers for where they stadium. The chips will allow those fans
uses hundreds of cameras and have spent in the past. Citi Field and Oracle to make purchases without cash or credit
sensors to monitor fan flow and Park also use beacon technology to ping fans cards. The embedded technology would be
get a jump on any potential prob- with specialized concessions, merchandise linked to their payment system of choice.
lems that might arise. and ticket offers. “They don’t have to bring their wallet,”
“Our goal is that we have un- ISM Connect, which counts multiple Lau said. “They just pay for what they want
believable food. We want great minor league ballparks and NASCAR in the stadium. It’s a really sticky experi-
bathrooms. But we want great tracks among its clients, uses facial rec- ence.” — M.S.
Blake edMunds the game, interacting with their friends, family, this effort, we’ve increased our live music options,
Assistant athletic director, marketing and fan experi- other fans, hanging out in our pregame festival incorporated happy hour food and beverage pric-
ence, University of South Carolina: area, eating and buying new gear in the fan shop ing, and opened the gates into the bowl earlier so
— they can’t wait to attend the next home match fans can watch more behind-the-scenes prepara-
The biggest opportunity I see is creating as close or away match watch party. tions and practice time. — M.S.
32 | A p r i l 2 2 - 2 8 , 2 0 19 www.sportsbusinessjournAl.com
2019
LIFETIME ACHIEVEMENT
AWARD RECIPIENT
Tim
Finchem
F O R M E R P G A TO U R CO M M I S S I O N E R
A
s AmericAn youth watch less TV, brand proprietary survey of 383 U.S. esports fans (Decem- opacity, unless the industry takes concerted action:
marketers in technology, cars, fast food, ber 2018, men ages 18-49). ■ Activate consistently. Esports organizations
energy drinks and other categories are 2. Too many game titles can solve the efficient reach problem for sponsors
under pressure to find new ways to engage their There are currently esports leagues and compe- by activating under the same team name across
target consumers. A compelling alternative is es- titions for over 30 game titles, with frequent shifts: multiple leagues and titles. But they must beef up
ports. With 21 million U.S. fans, 84 percent of whom “Fortnite” and “PUBG” are two of the top five es- their marketing and analytics talent.
are under 35 and 83 percent male, esports is now ports in terms of Twitch hours watched in 2018, ■ Lock in the streamers. There is natural syn-
the third-most popular spectator sport for young and neither existed until March 2017. This year, ergy between streamers and the esports teams —
men, according to Simmons Research. “Apex Legends” reached 50 million players in its they can cross-promote, make joint appearances
Esports has the potential to be an even more pow- first four weeks. No esports organization fields teams and deliver better engagement than platforms and
erful branding medium than traditional sports on for all the titles. Players rarely compete in more better market coverage than leagues. But teams
TV. Fans watch almost an hour a day of live match- than one title, and therefore a sponsored athlete are in a battle with agencies for the top streamers.
es on streaming platforms (Twitch, YouTube) and reaches only a small segment of fans. ■ Get face to face. Live esports events have proved
streamers are willing to wear, consume and endorse 3. The most popular streamers are not esports immensely popular, and sponsors value in-person
sponsors’ products during broadcasts. In the last pros much more than digital engagement.
year, brands such as Mercedes-Benz, Coca-Cola, and The most popular individual esports events are ■ Improve audience measurement. The major
Arby’s have moved esports from the experimental still the major team competitions, such as the League streaming platforms should enable marketers to
marketing budget to the core sponsorship lineup. of Legends World Championship, which had 20 mil- cap ad frequency and measure unduplicated reach,
Still, marketers eager to enter the lion average viewers for the final match including sponsorships sold by teams and leagues.
arena are discovering that the complex- By Dan Singer between China’s Invictus and Europe’s ■ Target. Esports is now at an efficient scale for
ity and fragmentation of esports makes Fnatic in 2018 (Riot Games, “2018 ad targeting, and the industry should enable spon-
it impractical to reach fans through a
anD JaySon Chi Events by the Numbers,” from Dot sors to target microsegments of esports fans.
single league, team or athlete. Brands Esports, December 2018). Pro competi- This year promises explosive growth for esports
need to understand the challenges and tions, though, constitute just 11 percent sponsorship, but only if the industry lays the foun-
what it will take to overcome them. Otherwise, like of video game streaming. Seven of the top 10 Twitch dation for mainstream brands to succeed.
so many unseasoned gamers, those same marketers channels for 2018 were the personal channels of
risk getting ganked. Gank: “In a video game, to use video game streamers, only two of whom are cur- Dan Singer leads McKinsey & Company’s Global
underhanded means to defeat or kill a less experienced rently members of pro teams. Sports and Gaming Practice. He is also an investor in
opponent.” (OxfordDictionaries.com) 4. No esports organization is globally domi- TSM, an esports organization. Jayson Chi is a senior
1. Playing is not watching nant, and most have out-of-market fans adviser at McKinsey and an early-stage investor in
With 211 million gamers in the U.S. (EEDAR re- Sponsors will find that at least 30 percent of es- interactive entertainment, including investments in
search, September 2018), playing video games is ports viewers are from outside the team’s home TSM and Popdog, an esports and streaming agency.
Getty Images
hugely popular. Yet only 37 percent of those who country, which leads to wasted impressions. Sev- Uta Allenstein, Oliver Gediehn, Alex Kimmet, and
play competitive video games at least once a week eral esports leagues, such as Overwatch League Daniel Sun of McKinsey & Company contributed
also watch esports weekly, according to McKinsey’s and NBA 2K League, have created city-based fran- valuable data, research and expertise.
34 | A p r i l 22 -2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
SportS BuSineSS Journal
Future of mobile sports done in the court of public opinion. States without
bookmaking prohibitions quickly moved to adopt
them and states with bookmaking prohibitions
F
ollowing the demiSe of PASPA (The Pro- by the U.S. Department of Justice, which was re- but meaningful, portion of casino revenue. Since
fessional and Amateur Sports Protection leased on Jan. 14 (“2019 DOJ Wire Act Opinion”). 1984, sports wagering accounts for about 1.32
Act of 1992) last year, the United States How did we get here? percent of gaming revenue on margins of about
has seen strong growth in the regulated sports Well, sports wagering has long been part of the 4.6 percent. Since 2012, however, sports wagering
wagering market, as states that were previously American experience. From colonial times through accounts for about 2.1 percent of gaming revenue
shut out of the legal sports gambling market — the late 19th century, horse racing and horse race on margins of about 5.4 percent. The increased
Delaware, Mississippi, New Jersey, West Virginia, wagering were popular pastimes for Americans. margins correspond with increased sports wager-
Pennsylvania, Rhode Island and New In the late 19th century, when Ameri- ing activity in Nevada. Year-to-year growth of
Mexico — rolled out offerings. By GreG GemiGnani cans began to embrace other spectator sports wagering handle (the amount wagered by
One of the strongest growth sections competitions, such as baseball, wager- bettors) for legal sportsbooks averaged about 6
of this market is remote account-based
and Jennifer Gaynor ing on those sports grew in popularity. percent per year from 1984 through 2011 and
wagering (offered on an intrastate In fact, wagering on baseball became jumped to about 8.4 percent per year between 2012
basis) and the in-game betting that so popular that exhibition games be- and 2018.
remote wagering enables. Whether the customers tween professional baseball teams were arranged This jump in handle coincided with Nevada’s
must initially sign up in person at a race book/ for the primary purpose of betting, and the practice approval of the use of smartphones within the
sports pool or are allowed to open the accounts was called “hippodroming.” Newspapers often re- state for account-based sports wagering. In other
online, there is no doubt that mobile wagering is ported on wagers made by professional baseball states, such as New Jersey, mobile wagering has
popular. For example, William Hill U.S. estimated team coaches and managers. Interest in baseball already outpaced land-based revenue. Patrons enjoy
that about 75 percent of Nevada sports betting grew in parallel with wagering on baseball … until ease of use and the ability to engage in in-game
revenue comes from mobile, and the American the Black Sox Scandal. wagering. Regulators and law enforcement also
Gaming Association said that they expect that “70 Accusations were made that players for the Chi- benefit from the betting records created by account
percent of sports betting will be coming from in- cago White Sox accepted payments to lose the 1919 wagering, which allow easier anti-money-laun-
game wagers” in the future. World Series from known bookmakers with ties dering compliance and allow licensed book op-
But such mobile sports wagering in the U.S. is at to organized crime. Although several of the ac- erators to more easily detect anomalies in betting
risk because of a recent Wire Act interpretation cused players denied being paid, the damage was behavior that may indicate an event has been com-
promised.
Unfortunately, the 2019 DOJ Wire Act Opinion
may end any form of remote account wagering,
even on an intrastate bases. The argument put
forth by the DOJ is that if a communication can
cross state lines, it ceases to be an intrastate trans-
action, even if the sender and receiver are in the
same state. Because nearly all communications
now use IP-based technologies, all such commu-
nications could cross state lines without the knowl-
edge of those communicating.
The new DOJ opinion not only affects legal state-
licensed sportsbooks, state taxation revenue and
efforts to limit the influence of organized crime,
it is likely to affect current and future revenue
streams for sports leagues.
This is because in-game wagering expansion
can only occur with reliable real-time data, and
sports leagues and their partners are in the best
position to generate and monetize such data. By
making the activity a de facto illegal activity, even
on an intrastate basis, the DOJ will deprive sports
leagues of a legal market for their data. Therefore,
the federal threat to the growth of legal sports
wagering may have consequences far beyond state-
regulated sports book operators.
On the Move
Changing places and
positions around the industry
Other
Media Awards and Boards
FanDuel Group named LAINIE COONEY
Fox Sports hired DAN DONNELLY as senior The Fiesta Bowl named PATRICK BARKLEY as chief people officer. Cooney was chief
vice president of ad sales marketing. Donnelly chair of the board of directors; RANDAL NORTON human resources officer for Blue Apron.
was head of the U.S. sports and entertain- chair-elect; and ED ERHARDT, HARRY GAREWAL
ment division for Publicis Media. and BRYCE HANCOCK to the board. Major League Fishing hired JEFF
CLACHKO as senior vice president of spon-
The National Wrestling Hall of Fame named sorship and media sales.
Olympics PAT CHRISTENSON and STEWART CARTER to its
board of governors. Navigate Research hired AL CONNOR
U.S. Olympic and Paralympic Proper- as senior vice president of strategic
ties hired DAVE MINGEY as head of partner- The PGA of America named RENEE POWELL partnerships.
ship management and activation and ZAI- the first at-large director to its board of directors.
LEEN JANMOHAMED as head of partnership Nolan Partners hired CAROLYNE SAVINI
development and innovation. Racecourse Media Group named JIM MULLEN as a partner.
Nike to land MLB’s NBA employees catch Warsaw at 25: For Katie Ledecky,
on-field uniform rights a breather thanks to Honoring the past. training didn’t
starting in 2020. sabbatical policy. Planning the future. take a vacation.
3$*( 3$*( 3$*( 3$*(
36 | A P R I L 2 2 -2 8 , 2 0 1 9 WWW.SPORTSBUSINESSJOURNAL.COM
SportS BuSineSS Journal
SportS laW
DiSCuSSionS
From the miami law Global
entertainment and sports
law + industry conference
on april 4-5 at the university
of miami Donna e. shalala
center.
TOP: “athletes as
entrepreneurs” session: Rudy
Cline-Thomas, founder/
managing partner, mastry
inc.; Chuck Baker, partner/
co-chair of the sports
industry group at o’melveny
& myers; and Roger Mason
Jr., co-founder and chief
business officer, Vaunt, and
retired nba player.
LEFT: “issues Facing
in-House team counsels”
session: Todd Davis, Vp,
legal affairs, los angeles
rams; Marcus Bach-
Armas, senior director
of legal and government
affairs, miami Dolphins and
Hard rock stadium; John
SportS eventS marKetinG experienCe Ruzich, moderator and chief
administrative officer/chief
at the 16th annual seme 2019 on april 6 at american university in legal officer, legends; Steve
washington, D.c., Jason Levien, owner of D.c. united, and Matt Weinreich, Vp and general
Winkler, director and professor, sports analytics and management counsel, minnesota wild.
masters at american, discuss sports business issues and ownership.
Sara Moores; Carolina Borroto (2); Patrick Ryan; Trent Hanselman / Loras College; Tom Garbett / L.A. Clippers; John McCreary
CeleBratinG
ralpH laWler
the los angeles clippers
honored legendary
broadcaster and the newest
member of the basketball
Hall of Fame, Ralph Lawler,
on april 10. lawler, who
called his 3,229th clippers
game on that night, has been
the “voice of the clippers” HoCKey in ConneCtiCut
for 40 years. He will retire at snY announced plans on march 25 for a three-day festival celebrating
the end of this season. From youth, amateur and collegiate hockey in connecticut. the festival,
left: Gillian Zucker, clippers set for jan. 24-26, 2020, at webster bank arena in bridgeport, will
president of business surround the first tournament pitting the state’s four ncaa Division i
operations; Jo Lawler; men’s hockey teams against each other. all games will be broadcast
ralph lawler; clippers spirit live on snY. From left: Yale coach Keith Allain, Quinnipiac associate
Dance team members; and head coach Bill Riga, snY president Steve Raab, connecticut coach
members of lawler’s family. Mike Cavanaugh, sacred Heart coach C.J. Marottolo.
Troy AikmAn says the above photo of The Dallas Cowboys had already signed Aikman fired both Landry and Schramm, re-
him and Pete Rozelle from the 1989 NFL by the time the draft got underway, and he was placing the former with Jimmy John-
draft is one of his favorites. Why? “Be- son from the University of Miami.
cause of how much Pete meant to our
the only player at the event. As it turns out, Aikman had twice
league,” he says. “That first round of Marriott Marquis and limited to two After the snapshot with Rozelle, rebuffed Johnson’s collegiate recruit-
that year was the last time Pete Rozelle days, only the first of which was broad- Aikman did a few interviews and then ing: once when Aikman enrolled at the
presided over the draft. I didn’t think cast by ESPN. More notably, unlike went back to his room to watch the University of Oklahoma, and a second
a lot of it at the time but in hindsight today, the No. 1 pick was already draft. He and the Jones family would time when he transferred to UCLA.
it is pretty cool.” signed. Aikman, a 6-foot-4 quarterback leave that night and fly back to Dallas. “Here I am thinking, ‘Gosh, I have
Even the legendary Rozelle, whose out of UCLA, had days earlier agreed Aikman had already set up residency turned Jimmy down twice already.’”
29-year tenure as NFL commissioner to a then-record six-year, $11.2 million there and obtained a Texas driver’s Aikman and Johnson turned out to
marked him as one of the true vision- contract. He was also the only player license, enabling him to avoid paying be a pretty effective duo, leading the
aries in sports, might have had a hard at the draft, compared to the 23 ex- state taxes in California because Texas Cowboys to back-to-back Super Bowl
time imagining just how big the draft pected to attend this week. has no state income tax. wins following the 1992 and ’93 seasons.
would become in the subsequent 30 Aikman had flown to New York on The Cowboys’ new star was certain- Aikman has been back to the draft only
years. More than a quarter of a million the jet owned by new Dallas Cowboys ly no stranger to his new city or his once since then, last year as a com-
fans are expected in Nashville this owner Jerry Jones. Jones’ children, new coach. In fact, he had played his mentator for Fox Sports, a role he had
week for the three-day event, the first Stephen and Charlotte, and Aikman’s last college game at the Cotton Bowl planned to reprise this year before the
two nights of which will be broadcast agent, Leigh Steinberg, were on board. in Dallas, where he had been scouted rights shifted to ABC.
in prime time on ABC. They had dinner the night before and by Cowboys head coach Tom Landry That may be for the best. As Aikman
AP Images
The draft was certainly different in went to “Phantom of the Opera,” Aik- and general manager Tex Schramm. said and as those involved with the
1989, when it was held in New York’s man’s first Broadway show. Weeks later, Jones bought the team and draft know, “It’s a lot of work.”
38 | A p r i l 22 - 2 8 , 2 0 1 9 www.sportsbusinessjournAl.com
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