Fiesta Bowl scandal could put BCS game in play
THURSDAY, 14 APRIL 2011 11:26
http://www.newjerseynewsroom.com/professional/fiesta-bowl-scandal-could-put-bcs-game-in-play
New Jersey would be viable location for one of college football’s biggest games
BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE BUSINESS AND POLITICS OF SPORTS
College football media partners, marketing partners, boosters, and politicians should be circling the date of April 28 for a meeting near the site of the Sugar Bowl in New Orleans. That's the day when a subcommittee of the National Collegiate Athletic Association reviews the license that the group has given to Fiesta Bowl operators to run the annual game in Glendale, Arizona.
The Fiesta Bowl is part of the Bowl Championship Series with Glendale hosting a national championship game every four years. The Fiesta Bowl, South Florida's Orange Bowl, Pasadena, California's Rose Bowl and New Orleans' Sugar Bowl are college football's big events and are worth a lot of money. Each bowl is a fiefdom and one of the reasons that there isn't a college football championship is that none of the powers to be behind those particularly bowls wants to cede one iota of importance that those bowls have.
Until the NCAA gets all of the fiefdoms to agree that a college football championship game that makes (financial) sense, the system will not change. That is unless Congress decides to remove the NCAA’s tax exemption status and the part of the Sports Broadcast Act of 1961 that applies to the group.
Neither action seems to be very likely.
The sacking of Fiesta Bowl chief executive John Junker along with two other top officials could open a Pandora’s Box of problems for Glendale, the Fiesta Bowl and the (college football's) Bowl Championship Series for Arizona politicians who allegedly accepted gifts from Junker.
Arizona elected officials have to abide by state laws, which included an “entertainment ban” that prohibits, state employees and elected officials from accepting tickets or "admission to any sporting or cultural event" for free.
The Fiesta Bowl organizers have been summoned to New Orleans to meet with NCAA members and will be given a day in the NCAA courtroom to explain away a 276 page report by a Fiesta Bowl Special Committee that provided unique details of "excessive" spending on employees and the relationship between Arizona politicians and bowl officials. Apparently Arizona elected officials had no problems accepting gifts from Fiesta Bowl organizers which is a violation of Arizona laws if the gifts bestowed on the elected officials were more than $500.
The Fiesta Bowl organizers seem to have thought the best way to keep their fiefdom going was to have Arizona’s elected officials at their side.
Some Arizona lawmakers are "amending" their campaign financing reports to reflect that they suddenly remembered they took money from Fiesta Bowl officials or got tickets for the game or went on Fiesta Bowl related trips or received campaign contributions from Fiesta Bowl employees.
The Fiesta Bowl officials apparently knew which palms to grease. Among the politicians that got some benefits from the Bowl hierarchy include Arizona Governor Jan Brewer, Senators John McCain and John Kyl, Congressmen J. D. Hayworth and Shadegg. McCain's Political Action Committee — Straight Talk Express — also got some money from bowl officials. Additionally, there were Fiesta Bowl employees who gave $46,000 to 23 political candidates who were reimbursed for their campaign contributions by the Fiesta Bowl.
Interestingly enough, The Goldwater Institute is not involved in any complaining against the Fiesta Bowl which seems to be a contradictory stance for the conservative fiscal watchdog group. The Goldwater Institute doesn't want Glendale to sell bonds to help complete the sale of the NHL's Phoenix Coyotes to a Chicago businessman, Matthew Hulsizer, nor do they seem to care that things didn't work out attendance wise for the Los Angeles Dodgers and the Chicago White Sox during the 2011 Cactus League Spring Training part of the baseball season at the new Glendale baseball park.
Glendale had an open checkbook for the NFL's Arizona Cardinals owner Bill Bidwill (a new stadium), former Phoenix Coyotes owner Richard Burke (a new arena), Jerry Reinsdorf's White Sox, the McCourt family's Dodgers (a new spring training facility) and the city is attempting to work with Jerry Colangelo to build the headquarters for USA Basketball in Glendale.
The Goldwater Institute is nowhere to be found on this issue. Meanwhile, another watchdog group — the not for profit Citizens for Responsibility and Ethics of Washington, D. C. — has filed a complaint with the Federal Election Commission and asking the agency to investigate whether any laws were broken in the Fiesta Bowl's campaign contribution acts.
It will be interesting to see how the NCAA will put together the investigation. Will the NCAA consult cable TV partner, the Walt Disney Company, on this matter? Does the NCAA really want to go after the Fiesta Bowl and pull the license or will they slap someone on the wrist and say don't do that again knowing that every bowl committee does what is best for them not the "game" of college football?
A question that should be directed to NCAA delegates deciding the weighty matter of bowl licensing is this. Do they want a championship game in Glendale or can they line the coffers with another organizer in a bigger market?
Will the NCAA revoke the license and then put the fourth game of the Bowl Championship Series up for bid? If the Super Bowl can be played in East Rutherford in February in 2014, why not a Bowl Championship Series game at the Meadowlands in January? Think of the money that could pour into the BCS if New Jersey, Jerry Jones and his Cowboys Stadium in Arlington, Texas or Dan Snyder's and Washington Redskins stadium in Maryland outside of the District were involved in a bidding war for that spot in the Bowl Championship Series?
The NCAA more than likely should not be trusted with a real investigation of a bowl and corruption. After all this is a body that created the term "student-athlete" to get out of paying disability benefits in the 1950s after a Colorado football player could not work because of an injury suffered on the football field. This is an organization that pockets billions in television money yet limits players' off field, off court, off ice, off diamond earnings to be $2,000. This is an organization that receives a tax exemption from Congress and colleges whose football teams appear at say the Fiesta Bowl don't have to pay taxes on their take from the game.
School presidents and chancellors shop around looking for conferences that will further exposure (big money TV contacts).
This is an organization that has somehow convinced people and politicians that "student-athletes" should be lucky to get a scholarship and feel fortunate that they can play for good old whatever university and entertain stadium or arena audiences, boosters, advertisers, politicians and have their talents used by coaches who earn millions annually from schools, marketing partners and TV partners.
In New Jersey, the state's highest paid employees are the Rutgers football coach and the men's and women's basketball coaches. Go around the country and you will find that college football or basketball coaches are the highest paid employee in a good number of states.
College sports is nothing more than a business.
Congress holds hearings on college sports every so often and generally these hearings go something like this. Congressmen genuflect in front of NCAA honchos then complain about the unfairness of the Bowl Championship Series in that only BCS members have a real shot at a title and that outsiders are just that outsiders with a limited chance of ever winning a NCAA football championship.
Never once do these hearings ever produce anything worthwhile for the "student-athlete" who has to prove to a coach annually that he (or she) is worth the scholarship and if a marginal player gets hurt and is unable to return to sports, that athlete loses their scholarship. The myth of the student-athlete is just that.
A myth.
In Arizona, politicians are scrambling for cover. In New Orleans, Fiesta Bowl officials might be scrambling for the cover of Bourbon Street if indeed the NCAA pulls the bowl game license. The NCAA doesn't seem to be too concerned ever with "moral" problems. The group has pulled two bowl licenses, the Seattle Bowl and the Silicon Valley Football Classic, because the games were poorly attended.
The NCAA is acting because people were caught with their hands in the cookie jar and dispensing money to court politicians. The whole college sports industry needs a review but as long as there is money to be made and college presidents and chancellors looking for the yellow brick road for that pot of sports gold, nothing will change. The Marx Brothers lampooned college football in 1932 in “Horse Feathers,” a remarkable movie that hit on corruption in college football and nothing has changed in 79 years since that Bert Kalmar, Harry Ruby, S. J. Perelman, and Will B. Johnstone came up with a screenplay that had Professor Quincy Adams Wagstaff (Groucho Marx) recruiting players for Huxley for their big game against Darwin. The plot and the jokes of "amateurism" in 1931-32 could easily be used today.
Evan Weiner, the winner of the United States Sports Academy's 2010 Ronald Reagan Media Award, is an author, radio-TV commentator and speaker on "The Politics of Sports Business." His book, "The Business and Politics of Sports, Second Edition is available at bickley.com, Barnes and Noble or amazonkindle.
Showing posts with label BCS. Show all posts
Showing posts with label BCS. Show all posts
Thursday, April 14, 2011
Tuesday, June 15, 2010
Lawyers give love a bad name
Lawyers give love a bad name
By Evan Weiner - The Daily Caller 06/15/10 at 6:41 PM
http://dailycaller.com/2010/06/15/lawyers-give-love-a-bad-name/
This is the kind of week in sports that lawyers love.
As the college sports map evolves, National Football League players question the legality of the NFL’s television deals with Disney Company (ESPN), General Electric (NBC), Sumner Redstone (CBS), Rupert Murdoch (FOX) and DirecTV, which promise that the 32 NFL teams will continue to get rights fees even if NFL owners lock out the players or if there are no games during the 2011 season.
And then there’s the case of the National Collegiate Athletic Association imposing sanctions on the University of Southern California’s athletic program.
The sports industry in the United States benefits from an extreme lack of public accountability. The people who cover sports – whether in print, digitally, on TV or on talk radio – have no idea how the business actually operates and, as a result, fail to report a large amount of standard, everyday business that would most likely upset fans were they to get wind of it.
But the U.S. is not alone to perpetrate this crime. The National Hockey League’s Phoenix Coyotes General Manager Don Maloney will tell you Canada is just as guilty.
Maloney, a Canadian who has lived most of his adult life in the New York City area, criticized the way the Canadian media covered his team’s bankruptcy and compelled fans to move the franchise back to the other side of the 49th parallel into Hamilton, Ontario and Winnipeg, Manitoba. And for all intents and purposes, Maloney’s criticism was justified. Toronto-based sportswriters acted more like welcome-wagon hosts than journalists in their effort to jockey the debt-ridden franchise to Hamilton. Most of the Canadian sports media wore its best red and white suit, complete with a red maple leaf lapel pin, when it wrote about the Phoenix franchise and deliberately chose to ignore the fact that the National Hockey League has the right to put a franchise where it desires. This basic business tenet was backed up by a Phoenix-based bankruptcy judge.
The Canadian media wants another team in the Toronto area. But as NFL Commissioner Pete Rozelle once said as he stood on the witness stand during the 1986 United States Football League-National Football League antitrust suit, leagues are natural monopolies and the business does what it wants.
Meanwhile, hourly lawyer fees continue to pile up as the Coyotes franchise fate hangs in the balance. A group called Ice Edge Holdings is still trying to nail down a lease with the city of Glendale, Arizona, that would include the establishment of a new tax and bonding district around the city-owned arena and Westgate City Center. Naturally, Canadian sportswriters have derided the plan and Ice Edge Holdings’ alleged money problems, and have counseled Winnipeg residents to patiently await the Coyotes franchise’s return to the city.
Yet while Glendale politicians devise a way to keep the NHL Coyotes in town, big-time college athletic directors along with their presidents, chancellors and boards of trustees try to figure out how to squeeze more money into their sports programs. Football is the big money maker for college sports. But just how much money do programs need?
At Wisconsin University, Badgers sports is a $90 million a year business.
Basic math shows that 800 athletes each awarded $40,000 in scholarship money makes approximately $30 million, give or take a few million for “labor”. The CBS-Turner Sports deal is worth about $800 million a year to be split among numerous schools. But it’s not enough money to fund every school. Something has to be done.
College sports and schools need more and more money due to rising salaries, health insurance and travel costs.
And despite the revenue stream that comes to big time college programs – in the form of luxury boxes and club seats at the stadium, concession dollars, merchandise sales and marketing partners – the pot of gold at the end of the rainbow is being depleted through deals with and the creation of cable TV networks, such as the Big Ten’s partnership with FOX cable.
The Big Ten currently gives member schools an annual $22 million cut from cable TV revenues, but that could grow to a larger sum if the Big Ten Network reaches 60 million subscribers and charges two dollars per head. In order to reach the 60 million subscriber target however, the Big Ten needs a bigger geographic footprint than its Midwest-based business. The Big Ten has taken small steps in this direction by adding Nebraska (from the Big 12) and looking to add some schools in the east and south. The bigger the Big Ten geographic footprint, the more leverage the conference has in its ability to convince multiple cable system operators to add the network at $2 a month. Do the math: 60 million subscribers at $24 a year makes $1.5 billion, give or take a hundred million here and there to be divided among the schools.
That’s big money.
The pursuit of big money from cable TV is the reason why the Pac 10 conference hired Creative Artists Agency, a big time Hollywood representatives firm, to “advise” it on future expansion techniques. The Pac 10 didn’t miraculously fall in love with the thought of visiting the Colorado Rockies, nor did it develop a deep fondness for the song, “Deep in the Heart of Texas;” it saw revenue opportunities and went for them.
In the end, the promise of TV money from ESPN and FOX (coming from people with no stake in college football) kept the Big 12 going. The Big 12 lost Nebraska to the Big Ten and Colorado to the Pac 10 but kept Texas with the other nine schools.
A curious line from Big 12 Commissioner Don Beebe deserves some attention: according to a story at CNNSI.com, Beebe said establishing “super” conferences could lead to “more governmental, legal and public scrutiny.”
Apparently the entire governing system of big time college sports wants to operate in a vacuum and wants to downplay things like schools being “tax exempt” entities when dealing with earnings for sports and possibly being forced to pay players for services.
Big time college sports programs presidents and chancellors have a single mantra now: find new revenue sources.
Cable TV is that source. Multiple system operators can make or break a conference. The Big Ten Network was a struggling entity until Comcast agreed to place the channel on the basic expanded tier on cable TV giant’s systems within the Big Ten footprint. Conversely, the NFL Network has never reached the heights league officials envisioned because the network has not been able to secure a basic expanded tier with Time Warner and Cablevision, among others.
The basic expanded tier is the ultimate goal for conferences that intend to bulk up by adding schools because simply said, that’s where the money is. The 1984 Cable TV Act, which was signed into law by President Ronald Reagan, not only ensured cable networks’ survival but made them thrive. The basic expanded tier allows multiple system operators to bundle channels they think consumers want and sell them as one group to customers. The basic expanded tier allowed CNN, the Weather Channel, ESPN and other financially struggling networks of the mid-1980s to grow even though the bundling was in clear violation of antitrust laws and all the tenets of free market theory.
The basic expanded tier lineup is decided by multiple system operators and does not allow the consumer to choose what he or she wants to buy. It drives down the price of each channel because 90 million or more subscribers pay for ESPN, CNN, FOX News, MSNBC or Comedy Central on a monthly basis. But the system also begs the question of whether it is fair for 100 percent of customers to pay for what maybe one or two percent watch. College football is popular among a subset of Americans that forms less than eight percent of the 95 million or so subscribers that form the cable universe.
The re-regulation versus a la carte issue came up before Congress in the spring of 2004. In the end, cable operators, sports franchises, and cable news networks scored a huge victory when Republican Rep. Nathan Deal of Georgia conceded that he did not have the support of fellow House and Senate members to introduce legislation calling for the re-regulation of cable television and giving cable customers the liberty to choose which channels they wanted to purchase.
As long as big time college sports make billions of dollars off of people who have no interest in the product, Congress will not change cable TV laws anytime soon.
The NFL gets a slice of cable and satellite TV money as part of the overall deal; and while it’s a significant share, a good amount of the NFL’s $4 billion licensing fee for TV comes from Redstone’s CBS, GE’s NBC and Murdoch’s FOX. Over-the-air networks pay for the NFL from mere advertisement while Disney’s ESPN and DirecTV get subscriber fees and advertising dollars. The National Football League Players Association is very mindful of how the NFL is funded and is concerned that CBS, NBC, ESPN, FOX and DirecTV seem to be willing to underwrite a lockout of the players in 2011 and line the pockets of the 31 franchise owners and the Green Bay with the usual nine figure license fees whether the league plays a game or not.
The NFLPA filed a claim before Special Master Stephen Burbank of the University of Pennsylvania on Wednesday, contending that the league took lower revenue from the five media partners in exchange for guaranteed money in the event of a lockout in 2011. The owners, in the players’ mind, have a war chest and can easily afford to lock out the players.
Some of that money is coming from cable TV subscribers who don’t care about football and have no idea that they are contributing to the owners’ war chest and an NFL lock-out.
In 1984, President Reagan and Congressional leaders had probably never even considered the possibility that the legislation would lead to a complete realignment of big time college sports and give the owners some money in a labor action. Cable TV subscribers are still waiting for refunds for missed games from the 1994-95 Major League Baseball players’ strike, the 1994-95 National Hockey League owners’ lock-out, the 1998-99 National Basketball Association owners’ lock-out and the 2004-05 National Hockey League owners’ lock-out which lasted an entire season.
No cable TV subscriber has ever filed a class action suit requesting a refund for missed games, probably because they have no idea how much they are paying for sports on ESPN, Versus, the NFL Network, the MLB Network (which is also owned by multiple system operators), the various cable TV regional sports that are owned by Murdoch’s FOX, Brian Roberts Comcast or teams such as the New York Knicks and Rangers (MSG Network), the New York Yankees and New Jersey Nets (YES) , the New York Mets (SNY), the Boston Red Sox and Boston Bruins (NESN), the Baltimore Orioles and Washington Nationals (MASN), the Cleveland Indians (Sports Time Ohio), the Colorado Avalanche and the Denver Nuggets (Altitude), the Big Ten Network and the Mountain West Network.
And if that isn’t enough, what happens if the Bowl Champions Series decides to strip the University of Southern California of the Trojans’ 2004 football championship? Will the NCAA face a lawsuit for defrauding ticket holders, cable TV and over-the-air TV networks along with marketing partners by admitting that USC cheated? Five years after the fact, the NCAA has declared that USC cheated which could mean that all games featuring USC’s football team between December 2004 and December 2005 were not legitimate contests. Does that mean that there is a chance that the college football record book would have an unusual line in the honor roll of national champions?
Although the Bowl Championship Series might vacate the USC championship, the Associated Press will not rescind the news organization’s 2004 college football champion (and why is a news organization handing out college football championships?). It’s the BCS’ right to do what it wants and the BCS may have a legal leg to stand on if the title is vacated thanks to a 3rd Circuit Court panel’s decision in May relating to the New England Patriots’ secretly videotaping their opponents’ signals.
New York Jets season ticket holder Carl Mayer, who is a lawyer, was seeking $185 million in damages for Jets fans in a civil case on the basis that the game’s outcome had been predetermined. Patriots coach Bill Belichick knew the Jets defensive signals due to his espionage. Mayer’s complaint centered on the New England-New York Jets season opening game in 2007. The Patriots won the game 38-14. The NFL fined Belichick and the Patriots for the team’s dishonesty and took away a first round draft pick in 2008. The whole issue was taken up by Pennsylvania Senator Arlen Specter who met with NFL Commissioner Roger Goodell because of the enormity of the situation on the world stage.
Meyer’s case was thrown out by a three-judge panel in Philadelphia.
“We do not condone the conduct on the part of the Patriots and the team’s head coach, and we likewise refrain from assessing whether the NFL’s sanctions [and its alleged destruction of the videotapes themselves] were otherwise appropriate,” Senior Judge Robert E. Cowen wrote.
“At best, [Mayer] possessed nothing more than a contractual right to a seat from which to watch an NFL game between the Jets and the Patriots, and this right was clearly honored,” he added.
In other words, caveat emptor or let the buyer beware. You buy your tickets, so stop complaining.
It must be good to be a lawyer in sports these days: so many opportunities to make money on so many fronts. As George Young, the one time General Manager of the National Football League’s New York Giants, once said, “You show me a guy who says he is playing for the love of the game and I will show you a liar. It’s all about the money.”
By Evan Weiner - The Daily Caller 06/15/10 at 6:41 PM
http://dailycaller.com/2010/06/15/lawyers-give-love-a-bad-name/
This is the kind of week in sports that lawyers love.
As the college sports map evolves, National Football League players question the legality of the NFL’s television deals with Disney Company (ESPN), General Electric (NBC), Sumner Redstone (CBS), Rupert Murdoch (FOX) and DirecTV, which promise that the 32 NFL teams will continue to get rights fees even if NFL owners lock out the players or if there are no games during the 2011 season.
And then there’s the case of the National Collegiate Athletic Association imposing sanctions on the University of Southern California’s athletic program.
The sports industry in the United States benefits from an extreme lack of public accountability. The people who cover sports – whether in print, digitally, on TV or on talk radio – have no idea how the business actually operates and, as a result, fail to report a large amount of standard, everyday business that would most likely upset fans were they to get wind of it.
But the U.S. is not alone to perpetrate this crime. The National Hockey League’s Phoenix Coyotes General Manager Don Maloney will tell you Canada is just as guilty.
Maloney, a Canadian who has lived most of his adult life in the New York City area, criticized the way the Canadian media covered his team’s bankruptcy and compelled fans to move the franchise back to the other side of the 49th parallel into Hamilton, Ontario and Winnipeg, Manitoba. And for all intents and purposes, Maloney’s criticism was justified. Toronto-based sportswriters acted more like welcome-wagon hosts than journalists in their effort to jockey the debt-ridden franchise to Hamilton. Most of the Canadian sports media wore its best red and white suit, complete with a red maple leaf lapel pin, when it wrote about the Phoenix franchise and deliberately chose to ignore the fact that the National Hockey League has the right to put a franchise where it desires. This basic business tenet was backed up by a Phoenix-based bankruptcy judge.
The Canadian media wants another team in the Toronto area. But as NFL Commissioner Pete Rozelle once said as he stood on the witness stand during the 1986 United States Football League-National Football League antitrust suit, leagues are natural monopolies and the business does what it wants.
Meanwhile, hourly lawyer fees continue to pile up as the Coyotes franchise fate hangs in the balance. A group called Ice Edge Holdings is still trying to nail down a lease with the city of Glendale, Arizona, that would include the establishment of a new tax and bonding district around the city-owned arena and Westgate City Center. Naturally, Canadian sportswriters have derided the plan and Ice Edge Holdings’ alleged money problems, and have counseled Winnipeg residents to patiently await the Coyotes franchise’s return to the city.
Yet while Glendale politicians devise a way to keep the NHL Coyotes in town, big-time college athletic directors along with their presidents, chancellors and boards of trustees try to figure out how to squeeze more money into their sports programs. Football is the big money maker for college sports. But just how much money do programs need?
At Wisconsin University, Badgers sports is a $90 million a year business.
Basic math shows that 800 athletes each awarded $40,000 in scholarship money makes approximately $30 million, give or take a few million for “labor”. The CBS-Turner Sports deal is worth about $800 million a year to be split among numerous schools. But it’s not enough money to fund every school. Something has to be done.
College sports and schools need more and more money due to rising salaries, health insurance and travel costs.
And despite the revenue stream that comes to big time college programs – in the form of luxury boxes and club seats at the stadium, concession dollars, merchandise sales and marketing partners – the pot of gold at the end of the rainbow is being depleted through deals with and the creation of cable TV networks, such as the Big Ten’s partnership with FOX cable.
The Big Ten currently gives member schools an annual $22 million cut from cable TV revenues, but that could grow to a larger sum if the Big Ten Network reaches 60 million subscribers and charges two dollars per head. In order to reach the 60 million subscriber target however, the Big Ten needs a bigger geographic footprint than its Midwest-based business. The Big Ten has taken small steps in this direction by adding Nebraska (from the Big 12) and looking to add some schools in the east and south. The bigger the Big Ten geographic footprint, the more leverage the conference has in its ability to convince multiple cable system operators to add the network at $2 a month. Do the math: 60 million subscribers at $24 a year makes $1.5 billion, give or take a hundred million here and there to be divided among the schools.
That’s big money.
The pursuit of big money from cable TV is the reason why the Pac 10 conference hired Creative Artists Agency, a big time Hollywood representatives firm, to “advise” it on future expansion techniques. The Pac 10 didn’t miraculously fall in love with the thought of visiting the Colorado Rockies, nor did it develop a deep fondness for the song, “Deep in the Heart of Texas;” it saw revenue opportunities and went for them.
In the end, the promise of TV money from ESPN and FOX (coming from people with no stake in college football) kept the Big 12 going. The Big 12 lost Nebraska to the Big Ten and Colorado to the Pac 10 but kept Texas with the other nine schools.
A curious line from Big 12 Commissioner Don Beebe deserves some attention: according to a story at CNNSI.com, Beebe said establishing “super” conferences could lead to “more governmental, legal and public scrutiny.”
Apparently the entire governing system of big time college sports wants to operate in a vacuum and wants to downplay things like schools being “tax exempt” entities when dealing with earnings for sports and possibly being forced to pay players for services.
Big time college sports programs presidents and chancellors have a single mantra now: find new revenue sources.
Cable TV is that source. Multiple system operators can make or break a conference. The Big Ten Network was a struggling entity until Comcast agreed to place the channel on the basic expanded tier on cable TV giant’s systems within the Big Ten footprint. Conversely, the NFL Network has never reached the heights league officials envisioned because the network has not been able to secure a basic expanded tier with Time Warner and Cablevision, among others.
The basic expanded tier is the ultimate goal for conferences that intend to bulk up by adding schools because simply said, that’s where the money is. The 1984 Cable TV Act, which was signed into law by President Ronald Reagan, not only ensured cable networks’ survival but made them thrive. The basic expanded tier allows multiple system operators to bundle channels they think consumers want and sell them as one group to customers. The basic expanded tier allowed CNN, the Weather Channel, ESPN and other financially struggling networks of the mid-1980s to grow even though the bundling was in clear violation of antitrust laws and all the tenets of free market theory.
The basic expanded tier lineup is decided by multiple system operators and does not allow the consumer to choose what he or she wants to buy. It drives down the price of each channel because 90 million or more subscribers pay for ESPN, CNN, FOX News, MSNBC or Comedy Central on a monthly basis. But the system also begs the question of whether it is fair for 100 percent of customers to pay for what maybe one or two percent watch. College football is popular among a subset of Americans that forms less than eight percent of the 95 million or so subscribers that form the cable universe.
The re-regulation versus a la carte issue came up before Congress in the spring of 2004. In the end, cable operators, sports franchises, and cable news networks scored a huge victory when Republican Rep. Nathan Deal of Georgia conceded that he did not have the support of fellow House and Senate members to introduce legislation calling for the re-regulation of cable television and giving cable customers the liberty to choose which channels they wanted to purchase.
As long as big time college sports make billions of dollars off of people who have no interest in the product, Congress will not change cable TV laws anytime soon.
The NFL gets a slice of cable and satellite TV money as part of the overall deal; and while it’s a significant share, a good amount of the NFL’s $4 billion licensing fee for TV comes from Redstone’s CBS, GE’s NBC and Murdoch’s FOX. Over-the-air networks pay for the NFL from mere advertisement while Disney’s ESPN and DirecTV get subscriber fees and advertising dollars. The National Football League Players Association is very mindful of how the NFL is funded and is concerned that CBS, NBC, ESPN, FOX and DirecTV seem to be willing to underwrite a lockout of the players in 2011 and line the pockets of the 31 franchise owners and the Green Bay with the usual nine figure license fees whether the league plays a game or not.
The NFLPA filed a claim before Special Master Stephen Burbank of the University of Pennsylvania on Wednesday, contending that the league took lower revenue from the five media partners in exchange for guaranteed money in the event of a lockout in 2011. The owners, in the players’ mind, have a war chest and can easily afford to lock out the players.
Some of that money is coming from cable TV subscribers who don’t care about football and have no idea that they are contributing to the owners’ war chest and an NFL lock-out.
In 1984, President Reagan and Congressional leaders had probably never even considered the possibility that the legislation would lead to a complete realignment of big time college sports and give the owners some money in a labor action. Cable TV subscribers are still waiting for refunds for missed games from the 1994-95 Major League Baseball players’ strike, the 1994-95 National Hockey League owners’ lock-out, the 1998-99 National Basketball Association owners’ lock-out and the 2004-05 National Hockey League owners’ lock-out which lasted an entire season.
No cable TV subscriber has ever filed a class action suit requesting a refund for missed games, probably because they have no idea how much they are paying for sports on ESPN, Versus, the NFL Network, the MLB Network (which is also owned by multiple system operators), the various cable TV regional sports that are owned by Murdoch’s FOX, Brian Roberts Comcast or teams such as the New York Knicks and Rangers (MSG Network), the New York Yankees and New Jersey Nets (YES) , the New York Mets (SNY), the Boston Red Sox and Boston Bruins (NESN), the Baltimore Orioles and Washington Nationals (MASN), the Cleveland Indians (Sports Time Ohio), the Colorado Avalanche and the Denver Nuggets (Altitude), the Big Ten Network and the Mountain West Network.
And if that isn’t enough, what happens if the Bowl Champions Series decides to strip the University of Southern California of the Trojans’ 2004 football championship? Will the NCAA face a lawsuit for defrauding ticket holders, cable TV and over-the-air TV networks along with marketing partners by admitting that USC cheated? Five years after the fact, the NCAA has declared that USC cheated which could mean that all games featuring USC’s football team between December 2004 and December 2005 were not legitimate contests. Does that mean that there is a chance that the college football record book would have an unusual line in the honor roll of national champions?
Although the Bowl Championship Series might vacate the USC championship, the Associated Press will not rescind the news organization’s 2004 college football champion (and why is a news organization handing out college football championships?). It’s the BCS’ right to do what it wants and the BCS may have a legal leg to stand on if the title is vacated thanks to a 3rd Circuit Court panel’s decision in May relating to the New England Patriots’ secretly videotaping their opponents’ signals.
New York Jets season ticket holder Carl Mayer, who is a lawyer, was seeking $185 million in damages for Jets fans in a civil case on the basis that the game’s outcome had been predetermined. Patriots coach Bill Belichick knew the Jets defensive signals due to his espionage. Mayer’s complaint centered on the New England-New York Jets season opening game in 2007. The Patriots won the game 38-14. The NFL fined Belichick and the Patriots for the team’s dishonesty and took away a first round draft pick in 2008. The whole issue was taken up by Pennsylvania Senator Arlen Specter who met with NFL Commissioner Roger Goodell because of the enormity of the situation on the world stage.
Meyer’s case was thrown out by a three-judge panel in Philadelphia.
“We do not condone the conduct on the part of the Patriots and the team’s head coach, and we likewise refrain from assessing whether the NFL’s sanctions [and its alleged destruction of the videotapes themselves] were otherwise appropriate,” Senior Judge Robert E. Cowen wrote.
“At best, [Mayer] possessed nothing more than a contractual right to a seat from which to watch an NFL game between the Jets and the Patriots, and this right was clearly honored,” he added.
In other words, caveat emptor or let the buyer beware. You buy your tickets, so stop complaining.
It must be good to be a lawyer in sports these days: so many opportunities to make money on so many fronts. As George Young, the one time General Manager of the National Football League’s New York Giants, once said, “You show me a guy who says he is playing for the love of the game and I will show you a liar. It’s all about the money.”
Friday, December 11, 2009
The NFL, Congress, the BCS and the Bahamas
http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2009m12d11-The-NFL-Congress-the-BCS-and-the-Bahamas#
The NFL, Congress, the BCS and the Bahamas
By Evan Weiner
(Nassau, Bahamas) -- You can tell a lot about a sport’s popularity by going to a supermarket. I spent the day before Thanksgiving, a huge sports lead up day in America to three National Football League contests on the holiday along with a three-day menu of college football games, in Nassau, Bahamas. Strolling through a supermarket you can see how integrated a sports really is within a society by walking through the beer and snacks areas.
In Nassau, the Super Value supermarket near the beach near Sandals is far more of a gauge of what the locals think about the National Football League and college football than Paradise Island and the Atlantis resort. There is no real NFL interest despite Nassau’s close proximity to the United States on West Bay Street not far from Goodman Bay. There were no in-store promotions pushing the National Football League in the beer area or the snack aisle.
It was almost as if the NFL didn’t exist.
That probably is not news to NFL Commissioner Roger Goodell or his owners even though they would like to expand the league’s reach. The only North American sports league that has tried to do anything in Nassau was the National Basketball Association as the Miami Heat played a pre-season game in the city. There are basketball courts around Nassau. There were two NBA players from the Bahamas, Mychael Thompson and Rick Fox.
Nassau and the rest of the Bahamas have boxing and track and field along with a lot of yacht races but there is no football, the American version, but there is the international version of football, soccer, along with cricket and rugby. The Bahamas have golf, tennis and water sports but there is no real interest in football except when tourists bet on games. In the 1990s, the Bahamas government approved gambling on sports events as a way to keep the gambling money in the country as some of that money was being lost to riverboat style gambling.
The Bahamas, after all, became an independent country in 1973 and centuries of being under British rule and the country is a member of the British Commonwealth which means that American sports stayed on the mainland except for some baseball.
The National Football League is no big deal outside of North America. The NFL has the entire United States, a good chunk of Canada and parts of Mexico in its marketing footprint and that why the NFL is desperately trying to establish a foothold in London and the United Kingdom with the thought of marketing the brand in the Commonwealth nations.
But the NFL and college football have far more problems than expanding the global gridiron footprint. Walking on Goodman’s Bay beach the day before Thanksgiving, a holiday not celebrated in November in the Bahamas, is a world away from Washington and Goodell along with the college football industry have spent more time up on Capitol Hill recently than dealing with Dan Snyder’s Redskins or the University of Maryland’s football squad.
Congress wants to know more about head injuries and concussions and Congress wants to know about college football’s way of determining a national champion. Should politicians be involved in football?
The answer should be no but the game and business of football and Washington interests have been intertwined since President Theodore Roosevelt in October 1905 began to ask questions about the brutal nature of football. Columbia University dropped football because of the brutality and Harvard was ready to follow suit. Roosevelt liked football, his son played the game at Harvard, however the game bordered on savagery.
By December 1905, Roosevelt used the bully pulpit of the Oval Office and cleaned up football, a game which had a growing casualty rate.
Because of Roosevelt’s interference or influence and it according to historians was a bit of both, new rules were drawn up to make the game safer.
Thanks to federal legislation, big time college football factories have a tax exemption; pro football got a version of an anti-trust exemption in 1961 which allowed the established National Football League to group all 14 franchises as one and sell weekly games to a television network, just like the newly formed American Football League and Congress gave approval to the 1966 American Football League-National Football League merger which ended the competition for players between the 15 team NFL and the nine team AFL.
The merger not only combined the leagues but created the American Football League-National Football League World Championship Game which is now known as the Super Bowl.
That is why Congress has held hearings on head injuries and long time consequences for players who have had concussions and how college football determines a champion. Congress has not yet touched on football programs being dropped at Boston’s Northeastern University of Long Island’s Hofstra University. It has become far too expensive to run programs for those schools.
Perhaps Congress will look into the divide between the big time football programs and the schools who are opting out on a small level. Congress has had issues with the Bowl Championship Series in the past and Congress should be reviewing every aspect of college sports from tax exemptions to graduation rates to whether players should get a piece of the pie from the billions of dollars in TV revenues.
Congress wants a national football champion. A House panel wants a national champion which is sort of strange given that America is fighting two wars, there is a battle going on over health care. Municipalities are laying off people because of the consequences of a very severe recession and unemployment remains too, too high. But there is bipartisan support for a national college football championship game.
Congress is about a decade and a half late in holding hearings on head injuries. The former NHL power skating hockey coach Laura Stamm was talking about the issue in the mid-1990s and was doing research on injuries. Laura Stamm was just a voice in the wilderness in the mid-1990s.
Head injuries in sports is not a new topic, it is just getting far more scrutiny now. Theodore Roosevelt knew all about head injuries as President in 1905 when there was serious consideration given to banning football and on field deaths.
Congress has some leverage in making sure Goodell and his owners get the message that they better do something to clean up football. Congress has passed legislation that has greatly aided the NFL and made NFL owners a lot of money in bills ranging from the 1961 Sports Broadcast Act to the 1966 merger to the 1984 Cable TV Act to the revision of the tax code in 1986 which changed the funding methods of municipally funded stadiums. In 2007, Congress forced the NFL to put the undefeated New England Patriots-New York Giants game on over-the-air TV networks instead of the NFL Network when New England was 15-0 and going for an undefeated season. It seems inconceivable that Congress has that kind of power, but Congress does as the House of Representatives and the Senate are very active partners in sports.
But in Nassau, Bahamas, the beach is far, far away and the NFL is largely a TV and betting affair. There is no American football in Nassau. The NFL is a world away despite being less than an hour plane flight from Miami to Nassau. Before the NFL goes overseas in a quest to sell more logo-ed t-shirts and hats, Goodell better take care of his own home which was why he is obsessing with head injuries and might have to feel the wrath of the bully pulpit like college presidents did in 1905.
evanjweiner@yahoo.com
The NFL, Congress, the BCS and the Bahamas
By Evan Weiner
(Nassau, Bahamas) -- You can tell a lot about a sport’s popularity by going to a supermarket. I spent the day before Thanksgiving, a huge sports lead up day in America to three National Football League contests on the holiday along with a three-day menu of college football games, in Nassau, Bahamas. Strolling through a supermarket you can see how integrated a sports really is within a society by walking through the beer and snacks areas.
In Nassau, the Super Value supermarket near the beach near Sandals is far more of a gauge of what the locals think about the National Football League and college football than Paradise Island and the Atlantis resort. There is no real NFL interest despite Nassau’s close proximity to the United States on West Bay Street not far from Goodman Bay. There were no in-store promotions pushing the National Football League in the beer area or the snack aisle.
It was almost as if the NFL didn’t exist.
That probably is not news to NFL Commissioner Roger Goodell or his owners even though they would like to expand the league’s reach. The only North American sports league that has tried to do anything in Nassau was the National Basketball Association as the Miami Heat played a pre-season game in the city. There are basketball courts around Nassau. There were two NBA players from the Bahamas, Mychael Thompson and Rick Fox.
Nassau and the rest of the Bahamas have boxing and track and field along with a lot of yacht races but there is no football, the American version, but there is the international version of football, soccer, along with cricket and rugby. The Bahamas have golf, tennis and water sports but there is no real interest in football except when tourists bet on games. In the 1990s, the Bahamas government approved gambling on sports events as a way to keep the gambling money in the country as some of that money was being lost to riverboat style gambling.
The Bahamas, after all, became an independent country in 1973 and centuries of being under British rule and the country is a member of the British Commonwealth which means that American sports stayed on the mainland except for some baseball.
The National Football League is no big deal outside of North America. The NFL has the entire United States, a good chunk of Canada and parts of Mexico in its marketing footprint and that why the NFL is desperately trying to establish a foothold in London and the United Kingdom with the thought of marketing the brand in the Commonwealth nations.
But the NFL and college football have far more problems than expanding the global gridiron footprint. Walking on Goodman’s Bay beach the day before Thanksgiving, a holiday not celebrated in November in the Bahamas, is a world away from Washington and Goodell along with the college football industry have spent more time up on Capitol Hill recently than dealing with Dan Snyder’s Redskins or the University of Maryland’s football squad.
Congress wants to know more about head injuries and concussions and Congress wants to know about college football’s way of determining a national champion. Should politicians be involved in football?
The answer should be no but the game and business of football and Washington interests have been intertwined since President Theodore Roosevelt in October 1905 began to ask questions about the brutal nature of football. Columbia University dropped football because of the brutality and Harvard was ready to follow suit. Roosevelt liked football, his son played the game at Harvard, however the game bordered on savagery.
By December 1905, Roosevelt used the bully pulpit of the Oval Office and cleaned up football, a game which had a growing casualty rate.
Because of Roosevelt’s interference or influence and it according to historians was a bit of both, new rules were drawn up to make the game safer.
Thanks to federal legislation, big time college football factories have a tax exemption; pro football got a version of an anti-trust exemption in 1961 which allowed the established National Football League to group all 14 franchises as one and sell weekly games to a television network, just like the newly formed American Football League and Congress gave approval to the 1966 American Football League-National Football League merger which ended the competition for players between the 15 team NFL and the nine team AFL.
The merger not only combined the leagues but created the American Football League-National Football League World Championship Game which is now known as the Super Bowl.
That is why Congress has held hearings on head injuries and long time consequences for players who have had concussions and how college football determines a champion. Congress has not yet touched on football programs being dropped at Boston’s Northeastern University of Long Island’s Hofstra University. It has become far too expensive to run programs for those schools.
Perhaps Congress will look into the divide between the big time football programs and the schools who are opting out on a small level. Congress has had issues with the Bowl Championship Series in the past and Congress should be reviewing every aspect of college sports from tax exemptions to graduation rates to whether players should get a piece of the pie from the billions of dollars in TV revenues.
Congress wants a national football champion. A House panel wants a national champion which is sort of strange given that America is fighting two wars, there is a battle going on over health care. Municipalities are laying off people because of the consequences of a very severe recession and unemployment remains too, too high. But there is bipartisan support for a national college football championship game.
Congress is about a decade and a half late in holding hearings on head injuries. The former NHL power skating hockey coach Laura Stamm was talking about the issue in the mid-1990s and was doing research on injuries. Laura Stamm was just a voice in the wilderness in the mid-1990s.
Head injuries in sports is not a new topic, it is just getting far more scrutiny now. Theodore Roosevelt knew all about head injuries as President in 1905 when there was serious consideration given to banning football and on field deaths.
Congress has some leverage in making sure Goodell and his owners get the message that they better do something to clean up football. Congress has passed legislation that has greatly aided the NFL and made NFL owners a lot of money in bills ranging from the 1961 Sports Broadcast Act to the 1966 merger to the 1984 Cable TV Act to the revision of the tax code in 1986 which changed the funding methods of municipally funded stadiums. In 2007, Congress forced the NFL to put the undefeated New England Patriots-New York Giants game on over-the-air TV networks instead of the NFL Network when New England was 15-0 and going for an undefeated season. It seems inconceivable that Congress has that kind of power, but Congress does as the House of Representatives and the Senate are very active partners in sports.
But in Nassau, Bahamas, the beach is far, far away and the NFL is largely a TV and betting affair. There is no American football in Nassau. The NFL is a world away despite being less than an hour plane flight from Miami to Nassau. Before the NFL goes overseas in a quest to sell more logo-ed t-shirts and hats, Goodell better take care of his own home which was why he is obsessing with head injuries and might have to feel the wrath of the bully pulpit like college presidents did in 1905.
evanjweiner@yahoo.com
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