Showing posts with label Rupert Murdoch. Show all posts
Showing posts with label Rupert Murdoch. Show all posts

Monday, September 26, 2011

Another week of sports business tests fan loyalty
MONDAY, 26 SEPTEMBER 2011 10:44
http://www.newjerseynewsroom.com/professional/another-week-of-sports-business-tests-fan-loyalty
BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
COMMENTARY
Sometimes you wonder why people become emotionally and, in some cases, overzealous about sports. After all, it is just a game and when one ends another begins. It is understandable that someone cares when they are an active participant in a sports activity but why should a fan care about an industry — sports is an industry — when the real owners of sports seem to take a rather cavalier attitude about their customers.
Just in the last week, the National Basketball Association’s collective ownership through their hired help — NBA Commissioner David Stern is an employee of a consortium of 29 owners (the franchise in New Orleans is owned by the league) — “postponed” (canceled is the real word) the opening training camp sessions and 43 preseason games (which count as regular season games in season ticket plans even though they are not bona fide contests in the strictest sense of competition as part of the 30 team’s business plan.
The only good news for season ticket holders is that a good many of those games were scheduled in so-called neutral sites). There is no word on whether cable TV subscribers will get a refund for paying for something that is not going to be available for them -- NBA pre-season games on cable TV.
While David Stern and the owners’ lockout continues, there is a very real possibility that Seton Hall and St. John’s University basketball fans may see the Big East Conference crumble as big time jock factories presidents and chancellors are again building up cartels and “expanding” big time sports conferences.
Pittsburgh and Syracuse, not the cities but the two jock-factory schools that play big time college football and basketball and earn money off of college kids who don’t get paid for their services and in some cases risk their health for the good old alma mater, have decided the Big East is no longer their cup of tea. The school presidents have decided that there is more prestige playing in the Atlantic Coast Conference and more money that can be squeezed out of fans from a cable TV contract. Pittsburgh’s chancellor Mark Nordenberg made it quite clear that college sports is a business when he addressed the issue talking to the media.
"Every university leader involved in intercollegiate athletics really has two fundamental responsibilities,’’ said Nordenberg. “One is to work to build strength in a current conference home. The second is to be appropriately attentive to the changing landscape and institutional opportunities that might need to be pursued. We also have been attentive to that responsibility. There's nothing incompatible about those.”
Nordenberg’s quote seemed to contradict the school’s 2003 stance when Boston College, Virginia Tech and the University of Miami left the conference to join the ACC.
Pitt brass was very critical of the move after the ACC poached The Big East for “big market schools” to strengthen the ACC’s bargaining position with cable TV executives because the conference needed bigger TV markets.
"We made very clear that if other opportunities did arise, we would feel obligated to seriously assess them looking at the long-term future of the University of Pittsburgh, and I made that point clearly in writing both to the commissioner of the Big East and chair of the conference in May of 2010, and they each responded was they thought the position I had articulated for Pittsburgh was the position that had been embraced by all the members of the conference."
The University of Connecticut seems to be the next Big East school to jump to the ACC. The irony here is that the state of Connecticut sued the ACC in 2003 for poaching the Big East. The case was settled and the ACC took the three schools for TV purposes.
There are some issues surrounding schools jumping from conference to conference for TV dollars. The first is just how are those TV dollars generated? They come from somewhere and the answer is that somewhere is cable TV consumers, who probably have no idea that their money is going to support big time college athletic programs.
The 1984 Congressional rework of cable TV rules that created a sort of cable TV socialism was signed into law by President Ronald Reagan. Cable TV is the second biggest part of the three necessities needed to operate a successful franchise in Major League Baseball, the National Basketball Association, the National Hockey League and Major League Soccer. You can add big time jock factories to that list as well.
The 1984 legislation created a basic expanded tier where “networks” could be banded together and sold as one to consumers. It was the lifeline that saved CNN, the Weather Channel, ESPN and others. The “I Want My MTV” ad campaign grew out of that because the MTV owners wanted to be placed on that tier because that was where money could be made. The cable systems operator decided what should be on that tier, not the consumer, and sports was a natural fit. ESPN thrived and started jacking up the network’s rate. Regional sports networks were founded and that became a huge source of revenue for teams.
The New York Yankees franchise was fortified by TV.
College presidents and chancellors are jumping on the bandwagon. The Disney-owned ESPN has created a University of Texas sports network. The college “realignments” have been caused by the want for TV dollars.
There is not that much interest in the college sports industry on TV. It is a niche industry at best and the cable TV ratings reflect that as a rather small number of people in the cable TV universe (ESPN has over 90 million subscribers) watch the games, yet 100 percent of the people are paying for what a rather small number of people are viewing. (Cable TV “news” works the same way, 100 percent of the basic tier universe is paying for what maybe a combined five million are watching on the FOX News Channel, CNN, MSNBC, CNBC, FOX Business, CNN’s “Headline News” and other networks.)
The colleges and universities also have a federal tax exemption, which means that the schools and conferences don’t pay taxes from the proceeds of bowl games.
Consumers should be screaming about getting fleeced legally by jock factories by cable TV networks and tax loopholes because of federal legislation that does not help consumers. There are also some questions that need to be answered about all of the stars realigning to produce “Super Conferences.”
Just where is the money going? Most athletic programs lose money, so is the Disney and Rupert Murdoch money going to fix a budget problem or will the college student body see any of that money? Will the money go to pay coaches even more money? Why are college coaches the highest paid state employees in places like Connecticut, Iowa and New Jersey coaching at state schools? Why are governors like Chris Christie not addressing the issue? Rutgers is a New Jersey state school and all of the realignments will impact Rutgers.
Why are the players, the people who make the games possible, getting nothing out of this? The players get scholarship money, yes, and an opportunity to get an education, yes, but the demands on a so-called “student-athlete” are great as there is the emphasis on the sport, not studies. The players on scholarship are also stymied in non-school job opportunities as they are limited to about $2,000 in earning from outside work annually while on scholarship. Other college students are free to earn as much as they can in part time jobs.
Jock factories can say, look because of Bobby Bowden’s or Joe Paterno’s or Bobby Knight’s success, we got money to build new labs, etc. There probably will be some noise that college games have a big economic impact (but local and state governments don’t want to research the real economic benefits of sports because the numbers may not coincide with reality -- that the economic impact is minimal at best).
There is a paucity of reporting on the why Pac 12 Commissioner Larry Scott thinks an Arizona State-University of Southern California baseball game in Japan is great for his conference. Scott wants to put Pac 12 sports in front of Pacific Rim viewers. Don’t be surprised if the Pac 12 starts sending football teams to Asia for games, Scott’s tennis background suggests that he knows all the key money players in Asia and that the college presidents and chancellors of the then Pac 10 when he was hired wanted global expansion.
But what is the real reason that these chancellors are acting like pro sports owners and why are Robert Iger from Disney and Murdoch playing ball with them? Are they bettering the schools or just seizing an opportunity to grab more money?
Sy Syms in ads for his clothing store boasted that “an educated consumer is our best customer,” but that may not be the case in sports. The less a consumer knows the better off sports is as a business.
So Seton Hall, St, John’s and Georgetown probably will be thrown under the jock factory bus because the schools don’t play football and football is driving conference realignments. Without football, those schools are not welcomed into the super college jock factory club. They will be left behind in the money grab because they are not worthy.

So it goes in the world of sports. NBA lockout, college sports realignment, allegations by the British Broadcasting Corporation’s Newsnight that the Beeb has uncovered evidence of secret payments of millions of dollars from Azerbaijan in exchange for two boxing Olympic gold medals at the London 2012 Olympics. Phil Anschutz, the owner of the Los Angeles arena that houses the NBA’s Lakers and Clippers (Anschutz is a part Lakers owner), all of a sudden showing an interest in developing a Sacramento arena for the NBA’s Kings after the team owners, the Maloof brothers, made a pitch to relocate the franchise in Anschutz’s backyard in Anaheim and become a competitor for corporate support in the market.
The Lakers franchise in 2012 will start printing cash as a part owner (with Time Warner Cable) of a Lakers cable TV network in Southern California but Anschutz seem to want to make sure there is no reason for the Maloofs to cash in on LA area cash. While Anschutz will try and play white knight for Sacramento Kings fans, he is trying to convince an NFL owner to move to his proposed football stadium in downtown Los Angeles.
That was the week that was. It makes you wonder why sports fans still watch games when the lords of the game don’t care about them.
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.

Monday, July 18, 2011

Rupert Murdoch's News Corp scandal could mean trouble for U.S. sports partners

Monday, 18 July 2011 11:33



http://www.newjerseynewsroom.com/professional/rupert-murdochs-news-corp-scandal-could-mean-trouble-for-us-sports-partners

BY EVAN WEINER

NEWJERSEYNEWSROOM.COM

THE BUSINESS AND POLITICS OF SPORTS

The National Football League lockout may be winding down but NFL Commissioner Roger Goodell, the 31 franchise owners and the Green Bay Packers Board of Directors may be facing a much bigger problem in the very near future if Rupert Murdoch's media business problems in England spread across the Atlantic and hit News Corp properties in the United States.

Murdoch has taken a financial hit which has forced him to buy back a significant share of his company's stock. In the case of the National Football League and Major League Baseball, he doesn't have cable subscriber fees to help pay off the licensing fees to show games on over-the-air television. His cable TV properties have no such problems in that most of the ones that pay huge rights fees to teams are on the basic expanded tier which means all of the people who get basic expanded are paying for what a few watch. It is cable TV socialism that makes Rupert Murdoch's business work, a cable TV socialism bill in the form of a 1984 piece of Congressional legislation signed into law by President Ronald Reagan allows the bundling of cable channels to be sold as one to consumers.

The 1984 cable television legislation seems to be at complete odds with the free market principles espoused by Murdoch's news and financial channels but Murdoch is all about money, not ideology.

In 1993, Murdoch gave the NFL a huge amount of money after his company won bidding rights for National Football Conference telecasts and the marriage seems to have been a happy one for both sides. So much so that Murdoch agreed to help underwrite the 2011 NFL Lockout and provide the owners with money (along with General Electric's NBC, the Walt Disney Company's ESPN, Sumner Redstone's CBS and DirecTV) to get along if there was no 2011 NFL season.

That seems like gratitude but the NFL made that demand of over-the-air, cable and satellite TV networks in the last television negotiations and got the five TV partners to agree to their demands.

Back in 1993, the NFL got billions and Rupert Murdoch was able to get his FOX over-the-air television network (although technically FOX is a syndication arm) off the ground. The NFL gave Murdoch and FOX credibility and once Murdoch got that street cred, he was able to work on other United States projects including the launch of the FOX News Channel.

There has never been any hint of impropriety in Murdoch's sports businesses whether it was with over-the-air network contracts with the National Football League, National Hockey League, Major League Baseball, NASCAR and other properties including the Bowl Championship Series or his relatively brief ownership of the Los Angeles Dodgers at the turn of the century.

(Murdoch's FOX Los Angeles regional cable sports network recently worked a deal with embattled Dodgers owner Frank McCourt, some of the money would come out of subscribers' pockets would have gone to help pay the divorce settlement between Frank McCourt and his soon to be former wife Jamie. The deal was stopped by Selig but someone will eventually get big money for Dodgers TV rights from someone whether that someone is Murdoch or some other Los Angeles cable TV entity)

But make no mistake, Rupert Murdoch and News Corp is heavily invested in American sports and given his seemingly significant problems in London that include the folding of the News of the World newspaper, numerous arrests of News International employees, the resignation of the top cop at Scotland Yard in conjunction phone hacking scandal that is engulfing Murdoch's empire that could be a problem for Goodell, Major League Baseball Commissioner Bud Selig and others.

Do sports leagues want to be associated anymore with Murdoch and what happens if there are complaints about Murdoch's suitability to own TV stations in the United States? What happens to the rights deals that Murdoch's people have worked out with sports leagues and teams?



That may be an issue facing Goodell, Selig and others down the road depending on just how large the News of the World and other Murdoch properties in the UK, US and Australia scandal become. Murdoch has shut down the paper and has seen one of his closest associates arrested. That is not good on the resume for TV station license renewals.

Before the NFL, Murdoch's FOX network was a weak collection of UHF stations with the exception of a few cities like New York, Washington, and Los Angeles. Before the NFL, FOX had a few shows that drew some attention, the It's Gary Shandling's Show, the Tracy Ullman Show and Married With Children. Out of the Ullman show came The Simpsons, Shandling's show originally ran on Showtime and then went to FOX. Ullman's show was canceled in 1990. FOX could not establish a late night talk show, the Joan Rivers experiment was a disaster and a 1993 Chevy Chase late night show as a bomb. Not much worked for Murdoch.

Neither Al Bundy nor Bart Simpson, as popular as the characters would become, could bolster FOX. Murdoch's team was buying TV stations and became the biggest owner of over-the-air stations in the United States but by 1993, it was still the fourth network in a three horse race for ratings behind CBS, NBC and ABC.

The NFL changed all of that. Actually, it was Jerry Jones, the owner of the Dallas Cowboys that put Murdoch on the map as Jones and Murdoch negotiated the TV deal that would change everything. The NFL had been prospering from TV rights fees since the 1961 Sports Broadcast Act which allowed the league commissioner, who is also the league's chief negotiator and lobbyist in all things NFL, to bundle the 14 member franchises into one entity in order to negotiate a TV deal. Three decades later, the NFL was a 30 franchise entity with four separate and distinct elements. CBS had the National Football Conference contests and paid slightly more money for the NFC than NBC did for American Football Conference games because the NFC had more major markets. ABC had Monday Night Football and ESPN and Turner Sports split a Sunday night package.

The NFL was being paid $3.6 million over a four year period between 1990 and 1993.

Murdoch's fourth place network was desperate for a game changer and the NFL provided him with an opening. The NFL and Jones were knocked over by Murdoch's bid for the NFC games. Murdoch was willing to fork over $1.58 billion over four years to get the NFC package along with the Super Bowl. Murdoch had a syndication arm but no news division, no sports division, none of the apparatus that CBS, ABC and NBC had. Murdoch knew that the NFL deals with an old philosophy, cash on the barrel head gets serious consideration and because he blew CBS out of the water with his bid, the NFL and Jones knew they would be getting a new partner with a patchwork of big city VHF and small area UHF stations and both sides would have to make it work.

In December 1993, The NFL took the money. In retrospect, it was the right decision but at the time it looked like just a money grab.

In early 1994, Murdoch started to prepare for the 1994 season by quickly established a sports department by giving John Madden an enormous contact and hiring his sidekick Pat Summerall. Murdoch also took Madden's CBS support team and made John feel right at home. Madden would become the face of FOX sports and with the NFL in tow, Murdoch was able to steal VHF stations in Detroit and Milwaukee away from CBS. Murdoch had one of TV's crown jewels, the NFL, and FOX would now be in a position to become a serious player in American TV.

It can be suggested that the success of the NFL and Madden on FOX led to Murdoch to start the FOX News Channel. The over-the-air network, still technically a syndication arm, started producing hits like the X-Files along with Beverly Hills 90210, Melrose Place, In Living Color to go along with The Simpsons and Married With Children. Murdoch didn't have blockbuster ratings but the network was doing okay business and he already had a satellite news network in Europe, Murdoch turned to creating a United States cable TV news channel.

There are no what if questions. The NFL changed the fortunes of both Murdoch and Lawrence Tisch's CBS. In 1993, CBS completed the TV hat trick; it won daytime, prime time and late night ratings. David Letterman had just moved over to the network and things were looking good. But Tisch's CBS did not invest in cable TV, lost the NFL and Madden, football's top star both on and off the field, lost affiliates and would start a downward spiral. Murdoch's FOX Sports added the National Hockey League and Major League Baseball soon after the NFL deal. Eventually Murdoch would gain NASCAR and the Bowl Championship Series. On the cable TV side, Murdoch's regional sports cable networks are still strong despite being challenged by upstarts in the past few years. FOX either owns or has agreements with 24 regionals. There is also a partnership with The Big Ten Network and another with the Pac12 conference.

Murdoch's Fox Soccer Channel has the UEFA Champions League, Premier League, and Serie A among other competitions. Fox Soccer Plus has soccer and rugby programming from around the world. Murdoch's Speed Channel provides NASCAR and F-1 coverage,

Murdoch's Fuel TV presents action sports such as skateboarding, surfing, snowboarding, BMX and FMX.

Murdoch's Fox Deportes provides Spanish-language coverage of UEFA Champions League, Premiere League, and Serie A as well as Beach Soccer and the F.A. Cup. It also presents the Spanish-language Major League Baseball Game of the Week, the All Star Game, and the World Series, as well as division and league playoffs. Fox Deportes probably would not play well with FOX News Channel viewers but Murdoch doesn't really have an ideology except identifying an audience to exploit to make money. FOX Deportes is aimed at Spanish speakers in the United States, some illegal aliens more than likely, not at FOX News Channel watchers.

That's Murdoch.

Rupert Murdoch built over-the-air viable network thanks to throwing money at the NFL, he had built a strong regional sports cable network, he had his news channel and became an American citizen because non American citizens could not own TV networks. Murdoch, the Australian, should not have owned FOX but American President Bill Clinton's Federal Communication Commission in 1995 allowed Murdoch to run FOX because it was "in the best interest of the public."

Murdoch has invested billions in American sports. So far the leagues and teams have said nothing about the events in London. FOX Sports has been above board according to those in the know but league and team operators have to be keeping a close eye on what is going on with the News of the World unraveling because it could have a real impact on their businesses.

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.

Monday, January 3, 2011

Major league sports facing a turbulent 2011
MONDAY, 03 JANUARY 2011 12:05

BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE BUSINESS AND POLITICS OF SPORTS
http://www.newjerseynewsroom.com/professional/major-league-sports-facing-a-turbulent-2011

It is rather silly making any sort of sports predictions. The predictor is generally wrong and does not have the best available data on hand to accurately come up with what is going to happen particularly in National Football League and National Basketball Association business in the next few months.
The 2011 big time sports calendar has two rather significant dates that could throw hard core National Football League and National Basketball Association fans into a depressed state. The National Football League owners and players will have no collective bargaining agreement (CBA) in place on March 4 unless there is major movement and the National Basketball Association owners and players will have no collective bargaining agreement in place on July 1 unless there is major movement.
Major League Baseball owners and players will have a full 2011 season as that industry's CBA does not expire until December and the National Hockey League will continue playing games until the 2012 Stanley Cup final game as the league's owners and players have an accord until then.
The National Football League owners and players have been practicing saber rattling for a while. The owners are well fortified to do battle with an enormous war chest built on over-the-air, cable and satellite TV revenues that FOX's Rupert Murdoch, GE's Jeffrey Immelt (NBC), Sumner Redstone's CBS, Robert Iger's ESPN division of Disney and DirecTV have endowed. The owners can withstand a lockout of players; meanwhile the National Football League Players Association Executive Director DeMaurice Smith has been urging his players to save money because there might not be a 2011 NFL season.
Smith has filed a protest with the Special Master who was appointed by a federal court to oversee NFL matters about the use of television money to assist the owners through a trying time. Smith may also decertify the association in an attempt to circumvent an owners lockout and claim the players are independent contractors with valid working agreements with the teams. If the Special Master, Stephen Burbank, sides with Smith — the owners could cave because there will be no money in the bank and the owners lose significant leverage.
The decertifying process may take a long time. That would take the dispute to another battlefield, the judicial system.
The NFL owners and players dispute is all about money. The owners, who are 31 of the biggest captains of industry in the country (Green Bay is run by a board of directors) want to reduce salaries by 18 percent and cut the players share of the football generated revenues from 59 to 48 percent. It appears Carolina Panthers owner Jerry Richardson, a former player with the Baltimore Colts in 1959 and 1960 and a major player in the fast food industry until his retirement from that line of work in the 1990s, is leading the lockout charge.
Richardson is not the only one. The owners want to change certain elements of the collective bargaining agreement including rookie's salaries. The NFL has a hard salary cap but teams have been about to devise ways of getting around it.
The owners have a wide gap between the big markets and small markets in terms of generating local revenues. The old "Leaguethink" idea pioneered in the 1960s by NFL Commissioner Pete Rozelle (who, in 1960, co-opted the notion from American Football League founder Lamar Hunt who borrowed it from Branch Rickey after Rickey was establishing the Continental Baseball League in 1958, a league that never got off the ground). The "Leaguethink" idea was simple and in a way was a form of socialism. All the teams shared equally in TV revenues and shared gate receipts (Rickey, who was a sports business genius, understood the role TV was going to play in sports back in the 1950s even though his fellow baseball executives disdained the idea of TV because potentially it could cut into home attendance — Rickey understood that TV could be both a money maker and marketing tool).
The owners are now divided between the "haves" NFC East, Dallas' Jerry Jones, the Giants Mara/Tisch, Philadelphia's Jeffrey Lurie, Washington's Dan Snyder, half of the AFC East, New England's Robert Kraft and the Jets Woody Johnson, and a few other owners like Houston's Robert McNair and Denver's Pat Bowlen and the smaller market owners. The big boys no longer want to share local revenues with Buffalo's Ralph Wilson, Cincinnati's Mike Brown, and Jacksonville's Wayne Weaver to name three teams. But if the 32 NFL teams hold together, the thought is the can extract concessions from Smith and make up lost revenues to players by expanding the season to 18 games.
The dispute will be all about money and it will be interesting to see if the players try and collectively bargain a much better health care plan for the present players and the retirees.
One of the buried issues in all of the owners-players labor talks is that a good many former players are under 65 but a getting handouts from the government in disability and Medicare — it is rather interesting that Tea Party members shouting about entitlements have not bothered to look at the afterlife of football players and how many of them have been abandoned and are cared for by government programs.
The NFL off-season will include the annual draft but if there owners lockout the players out, the players will have to scramble to be insured by COBRA as the owners will be cutting off NFL benefits. There will be no free agency, no mini-camps, no organized team activities, no training camp and no games until the two sides work out an agreement.
The NBA dispute is also about money. Commissioner David Stern wants to get about $800 million in concessions from his players and give small market teams a chance for profitability. The league wants to cut guaranteed contracts (the NFL does not have guaranteed contracts), trim the number of years on a contract, harden a loose salary cap and get cost certainty. There is no real revenue sharing between the haves (Los Angeles Lakers, New York Knicks) and the have-nots (the league-owned New Orleans Hornets, Memphis Grizzlies). The league will lockout the players on July 1 and that means Carmelo Anthony and other free agents cannot shop around their services and may in fact be caught in a new system which could cause them to lose millions of dollars.
It is unlikely that small market owners (who have been asking Stern for years to address the revenue sharing issue) will go along with any new deal that does not produce a hard salary cap and a reduction of revenue to the players.
Like the NFL owners, the NBA owners will have a war chest from Iger's ESPN and from Time Warner's Jeffrey Bewkes (Turner Sports). NBA owners will also be getting revenues from regional cable TV networks (the Knicks owners, the Dolan family, are a multiple system operator with Cablevision and their assets include the Madison Square Garden Network, the Philadelphia 76ers owner, Comcast, is a multi system operator and the company's assets include regional cable sports networks in Philadelphia and other outposts including Washington, Boston, the San Francisco Bay Area and Chicago). The owners will be getting money and can withstand a lockout.
The cable TV issue is one that needs to be addressed by Congress. House Speaker John Boehner and Senator Majority Leader Harry Reid, if they are truly doing the business of the American people, need to grill NFL Commissioner Roger Goodell, NBA Commissioner David Stern, Iger, Bawkes, Comcast's Brian Roberts, MSG's Charles Dolan (although it would be a comedy to watch Dolan's son James testifying in a Congressional hearing) and ask them if it is just for the leagues to have their lockout war chests funded by cable TV basic expanded tier consumers — many of who never watch sports but are forced to buy ESPN, TNT, regional sports networks because of tiering.
While House Speaker Boehner and Senator Majority Leader Reid are at it, they should call down Murdoch, Immelt and Redstone and ask if they believe that it is a proper use of a television license to use monies generated on the public airwaves (FOX, NBC and CBS) to underwrite a lockout.

Local municipalities should also be checking into their agreements with cable franchises (Cablevision, Comcast, Time Warner and the others) to see if they plan to offer rebates to consumers if programming (NFL and NBA games) has been canceled due to a lockout — after all consumers are paying for the programming.
No cable system has ever refunded money for missed games from the 1994-95 baseball strike, the 1994-95 NHL lockout, the 1998-99 NBA lockout and the 2004-05 NHL lockout.
Local municipalities that have built stadiums and arenas may not be sitting on the sidelines in these potential labor disputes either. Cash poor governments cannot allow owners to skip payments on rent in the event of a lockout. After the 1998-99 NBA lockout, Oakland went after Golden State Warriors owners Chris Cohan after he refused to pay rent on the arena because his Warriors didn't play games. Cohan lost an arbitration hearing and had to pay rent for missed games.
Local governments should be diligent and not sit on the sidelines if they are doing business for the people. They need to force owners to live up to their leases even if there is a lockout.
Major League Baseball owners and players have been rather quiet about the end of the industry's CBA in December. MLB has been in a good spot in that they have been third in the CBA derby since 2004. Both sides watched the 2004-05 NHL lockout when the owners shut down the industry. The NBA's CBA came up during the NHL lockout and the players and owners came up with a deal to avert an NBA showdown and soon after that, MLB Commissioner Bud Selig and the Major League Baseball Players Association Executive Director Don Fehr worked out an agreement with no work stoppage. Fehr has left the baseball players and is now trying to straighten out the mess at the National Hockey League Players Association. Fehr has many more problems to solve in his new post with his constituency than to worry about what NHL Commissioner Gary Bettman and his owners are planning for 2012. Once Fehr reins in the various players association factions, then he can deal with Bettman and the owners.
The posturing will continue in the NFL through the Super Bowl, and the barbs from the players and the owners in the NBA will continue through the NBA Finals. The big game for both sides is not the Super Bowl or the NBA Finals. It is winning the battle for the CBA crown.
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 www.bickley.com, Barnes and Noble or amazonkindle. He can be reached at evanjweiner@yahoo.com

Wednesday, December 29, 2010

Goodell Cannot Fine Tucker Carlson For Calling For Michael Vick’s Execution

By Evan Weiner

December 29, 2010

http://www.examiner.com/business-of-sports-in-national/goodell-cannot-fine-tucker-carlson-for-calling-for-michael-vick-s-execution


(New York, N. Y.) -- Roger Goodell, who is trying to rule the National Football League with an iron fist when it comes to disciplinary matters (although his critics have not been that kind to him in slowness the Brett Favre investigation of sending lewd pictures to a "reporter" who worked for the New York Jets--Goodell eventually fined Favre $50,000, the "reporter" was a model turned sportscaster named Jen Sterger. No doubt she was on Versus and turned up as a Jets TV reporter for her investigative qualities), has a major problem. One of Commissioner Goodell's business partners (and backer of an NFL lockout of the players in March), Rupert Murdoch, has seen one of his carnival barkers on the FOX News Channel ---Tucker Carlson---say "I'm a Christian, I've made mistakes myself, I believe fervently in second chances. But Michael Vick killed dogs, and he did in a heartless and cruel way. And I think, personally, he should've been executed for that. He wasn't, but the idea that the President of the United States would be getting behind someone who murdered dogs? Kind of beyond the pale."

Goodell cannot fine Carlson for anything.

Carlson was looking to do the FOX thing which is a constant negative critique of President Barack Obama. The way cable TV news and political talk radio works in the United States is pretty simple. No real debate, the testosterone ladened host (or hostess) is angry at something and that appeals to the loyal viewers or listeners who are looking for someone to vent for them. One radio programmer at WMAL told Sam Donaldson he was not angry enough on the air and that hurt his appeal to the older white male listener who hates his wife, his kids, his job, his lot in life. Donaldson quit the gig. The more vile built up, the better the dramatics and the ability to say some useless product or medicine to the loyal viewer or listener.

Carlson's vitriol looks well with the FOX News Channel audience. It doesn't with the NFL crowd but that's not Carlson's problem. Carlson is just another mouth who works for Murdoch, a media mogul who was ripped by Chicago legendary columnist Mike Royko after Murdoch bought the Chicago Sun Times. Royko quit as a Sun Times columnist in 1984 and said,”No self-respecting fish would be wrapped in a Rupert Murdoch newspaper. His goal is not quality journalism. His goal is vast power for Rupert Murdoch, political power".

Royko was right. (For the record this writer was fired in 2000 by a Murdoch editor as a contributor to a FOX sports business website and David Hill, the head of FOX Sports at the time told me that he loved my show idea for a sports business program but his audience would hate it.)

Murdoch gives Goodell's owners hundreds of millions of dollars annually for the right to put National Football Conference regular season and playoff games on his FOX TV syndication (FOX is not a network in the truest sense of the word network) along with a Super Bowl every few years. Goodell and his owners are eternally grateful that Murdoch stepped into the bidding for NFL TV rights in 1993 and have been reaping the benefits ever since. Murdoch will be paying his annual rights fee in 2011 to the NFL and help fund a lockout fund for the owners. FOX, ESPN, CBS, NBC and DirecTV are giving the owners money for their lockout war chest. But never has one of Murdoch's carnival barkers ever called for the execution of an NFL player. Not even Rush Limbaugh was that stupid during his days with ESPN.

Limbaugh resigned from the Disney-owned network ESPN after a critique of Philadelphia Eagles quarterback Donovan McNabb in October 2003. The sad part was that Limbaugh might have been right about McNabb as a quarterback but he introduced a racial angle which works well in his milieu (talk radio) but not in sports reporting, not that Limbaugh does anything that resembles reporting or journalism.

"I don't think he's been that good from the get-go," Limbaugh said during a Sunday night cablecast on ESPN. "I think what we've had here is a little social concern in the NFL. The media has been very desirous that a black quarterback do well. There is a little hope invested in McNabb and he got a lot of credit for the performance of this team that he didn't deserve. The defense carried this team."

Tucker Carlson has no ties to the NFL and that is where the story gets complicated for Goodell, Eagles owner Jeffrey Lurie and Vick. Goodell can blast Carlson's statement but comedian Jon Stewart skewered Carlson and cable TV news in general in 2004 when some young booker fresh out of college thought that Stewart would be the perfect guest on CNN's Crossfire which featured Clinton political strategist Paul Begala and conservative Carlson. That was a mistake as Stewart did not come onto the show as a funny man and instead told the two hosts what was on his mind.

"The thing is, we need your help. Right now, you're helping the politicians and the corporations," Stewart said. "And we're left out there to mow our lawns."

"Stop, stop, stop, stop hurting America," Stewart said. "You're doing theater, when you should be doing debate, which would be great. … What you do is not honest. What you do is partisan hackery."
Begala and Carlson were stunned by Stewart's remarks but that shouldn't be surprising as so-called cable TV news talk show hosts rule their realm as they see fit. The who, what, why, where and how of journalism along with out of the box thinking doesn't apply to their world. CNN would eventually cancel Crossfire but in the world of cable TV news that just means another news network is waiting for the castoff with open arms. MSNBC hired Carlson. His show was a flop and now he like a lot of other flotsam and jetsam ended up on FOX. Sometimes FOX's flotsam and jetsam ends up elsewhere as in the case of Paula Zahn and Rita Crosby. Carlson has been hired by msnbc and FOX since his CNN debacle. He also appeared on Dancing With the Stars, the ABC-TV show that has some sort of fascination with conservatives like Carlson, Tom DeLay and Sarah Palin's daughter Bristol. No one ever loses a job in cable TV news world for slip ups or calling people names or wishing someone dead like New York radio personality Bob Grant did in the 1990s. Grant was fired by WABC and was quickly hired by WOR.

Limbaugh never recovered professionally in the world of the NFL though. In 2009, he floated an idea that he wanted to buy into the St. Louis Rams. The National Football league Players Association condemned the idea and eventually dropped the pursuit of the team. Carlson, from what is known about him, is not much of a sports fan and probably will never try to buy into an NFL team so he is safe from any NFL repercussions.

But that leaves Goodell and his NFL owners in a quandary. Goodell would like as sanitized league as possible but he is in bed with Murdoch and one of his carnival barkers said Michael Vick should have been executed. Murdoch pays a lot of money for TV rights and most football fans really don't care about Murdoch, his FOX News Channel, his New York Post, his inaccuracies with his newspapers globally, they want to watch games. The zombie media in Washington probably will be quiet about Carlson or as quiet as they can in that he is one of them and they seems to protect one another as Stephen Colbert could tell you following his appearance at the White House Correspondents Dinner in 2006 when he blasted, in a satirical way, the zombie media. The New York Times was not pleased and other Washington media didn't enjoy the satire very much either. The zombie media brought in Rich Little the next year so that everything would be in order.

Carlson was out of line but he will get away with his comment. He has his own website, The Daily Caller, and he fits in well with the style of the FOX News Channel. He probably won't get Eagles press credentials anytime soon but he did his job well for Murdoch and Roger Ailes and the FOX News Channel audience. Meanwhile, Murdoch should be called onto the carpet by Goodell and Congress should review the 1984 Cable TV Act and allow customers to choose whatever they want in basic and go a la carte. If that happens, the FOX News Channel probably loses 95 percent of its subscribers as would CNN, msnbc, CNBC, FOX Business Channel and ESPN. But Murdoch has half of the 2012 presumptive Republican Presidential candidates on his payroll at FOX, so how likely is it that Congress changes cable TV laws? Goodell can do nothing except ask Carlson for an apology and maybe condemn his statement.


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 www.bickley.com, xplana.com or amazonkindle. He can be reached at evanjweiner@yahoo.com

Tuesday, November 30, 2010

Journalist Sarah Palin should ask why TV money will fund an NFL lockout

TUESDAY, 30 NOVEMBER 2010 11:52

http://www.newjerseynewsroom.com/professional/journalist-sarah-palin-should-ask-why-tv-money-will-fund-an-nfl-lockout

BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE BUSINESS AND POLITICS OF SPORTS
So Sarah Palin wants "to help clean up the state that is so sorry today of journalism." Palin also has "a communications degree. I studied journalism, who, what, where, when, and why of reporting." Let's take Sarah Palin, who has a communications degree from one of the five colleges she attended in six years, at her word that she really wants to help clean up journalism. Let's give the former Alaska TV sportscaster an assignment and see how she does.
Palin is employed by Rupert Murdoch's FOX News Channel so it should be rather easy for her, as a onetime Vice Presidential candidate in the United States, to score an interview with the naturalized American citizen Murdoch. Palin, the former sportscaster, should begin the interview with her boss with a simple question. "Mr. Murdoch, why are you helping to underwrite the National Football League lockout which is slated to begin in March 2011?"
Palin's second question of the Australian-born media mogul should get right to the core of Murdoch's FOX News Channel and New York Post audience. "How does your guarantee of paying hundreds of millions of dollars in rights fees to the National Football League in 2011 help your audience, "real" Americans, even in the event that the 31 owners and Green Bay's management lockout the players and no games are played?
Palin should then just go with the flow and ask a few more questions "is providing financial support for a labor action by a custodian of the public airwaves — Murdoch owns a number of television stations across the United States. He had to become an American citizen to do that after being an illegal alien owning the New York Post before he was naturalized — a proper use of a television station license?" And, "is it in the public interest to use monies generated by News Corp-owned stations (including WNYW and WWOR in New York and WTFX in Philadelphia and 24 other stations), to support the NFL ownership group?"
To expand her report and show off her journalism skills Palin should invite Jeffrey Immelt, the General Electric Chairman of the Board and Chief Operating Officer (and at present owner of NBC), Robert Iger, the President and Chief Executive Officer of the Walt Disney Company (and ESPN owner), Sumner Redstone, the Chairman of CBS and Michael White, the President and CEO of DirecTV to appear on her report on the potential NFL lockout.
Iger should jump at the opportunity to chat with Palin after Sarah's oldest daughter Bristol brought new viewers and tons of phone calls over the past few months to the ABC show, "Dancing With the Stars," along with more advertising dollars.
Palin could pose the same questions to Iger and Redstone that she did to Murdoch and ask whether it is ethical that Iger's ESPN and White's DirecTV is taking subscribers money to provide a cushion for NFL owners. After all, Congress in 1984 kept ESPN alive (along with other cable TV networks) by allowing multiple system (cable TV) operators to bundle financially struggling networks like ESPN, CNN and The Weather Channel and to place them on a basic expanded tier, which is a direct restraint of trade in a free market society. The result was cable consumers now pay for networks whether they watch them or not. All basic subscribers pay for channels that only a fraction watches; and it is all legal because of the Cable TV Act of 1984 which was signed into law by the champion of free market — President Ronald Reagan. The whole issue of why media companies and by extension their news divisions (with the exception of DirecTV, which does not have a news division) are supporting NFL owners needs to be explained to the very "real" Americans that Palin says she stands with.
Murdoch, Iger, Immelt, Redstone and White agreed to individual contracts with the NFL and paid a lot of money for the right. They also told the NFL that they would cover (financial not in depth news) the owners in the event of a lockout and at some point down the road would get a rebate if the owners' lockout in 2011 forced the cancellation of games. But the NFL never lowers rights fees. When the contracts are renegotiated down the road, the NFL will still have big leverage over the TV networks — NFL games are among the top rated TV shows in the United States and attract the 18-34, 18-49, 18-54 male demographic that advertisers want. The NFL TV guys, Dallas's Jerry Jones, Denver's Pat Bowen, can ask for the moon; but that doesn't mean Murdoch, Igor, Immelt, Redstone and White's predecessor at DirecTV needed to give the NFL whatever they wanted. The 2011 season rights fees will go into the owners' war chest in the battle with the players; and because of that the owners will have an enormous edge over the players in the bargaining talks, as they can hold out while players' careers are brief and any games lost to the lockout will impact the players' pockets far more than the owners'.
The owners want to reduce the players' take of revenues from 59 to 48 percent and chop salaries by 18 percent. The TV people are in the owners' corner in the labor action which brings up a point. Are the TV networks shilling for the rich and elite, or do they care about "real" Americans? What does that say about their ability to real provide "fair and balanced" news?
In all seriousness, could ABC, CBS and NBC news divisions really report on the NFL owners' lockout in full detail, knowing the corporate bosses are providing much needed leverage for the owners? Could the FOX News Channel and ESPN lay out the story? The answer is no. No one on the FOX News Channel, MSNBC or ESPN is going to criticize Murdoch, Immelt or Iger. Katie Couric and her CBS news division is not going to go after Redstone. But Palin did run for Vice President and as a journalist she should have the gravitas to actually get Murdoch, Iger, Immelt, Redstone and White on record to explain their decisions.
Murdoch's FOX syndication arm (FOX is not a true TV network) owes the NFL an awful lot. Murdoch got the rights to NFC Games in 1993 with a four-year, $1.58 billion offer beating out CBS. Murdoch's FOX had The "Simpsons" and a few other programs like "Married With Children" and "Beverly Hills 90210" that garnered some interest on many weak stations. With the NFL, a powerful TV franchise in his back pocket, Murdoch also took away two strong CBS affiliates in Detroit and Milwaukee in early 1994 and all of that resulted in the loss of audience share for CBS' Sunday night news magazine, "60 Minutes." FOX also got a promotional platform for prime time shows during NFL games and ended up with a Super Bowl. The NFL built FOX and allowed Murdoch to move ahead with the FOX News Channel. CBS returned to the NFL in 1998, taking away NBC's AFC package with an eight-year deal. NBC returned in 2006 with a Sunday night package, Disney's ABC Sports was folded into ESPN's camp and in 2006, Monday Night Football shifted from over-the-air ABC to the cable ESPN.
Palin, the journalist, could conclude her in depth report by getting into the political arena by interviewing Congressional Republicans and asking if they plan to review the whole question of why and how Murdoch, Iger, Immelt, Redstone and White are using public airwaves or cable/satellite TV subscriber fees. The House Committee on Oversight and Government Reform seems like a good place to start hearings on television's role in an NFL lockout.
The players association is asking elected officials in NFL cities to get involved with the negotiations, claiming there is a huge potential for major economic losses with NFL football in 2011. The NFL Players Association Executive Director should be playing the public financing of stadiums card just to educate the public about the real costs of football and sports in the United States and to reveal how "real" Americans are paying a variety of taxes to support sports facilities around the country. Palin, who apparently favors small government and less government spending, should ask about the billions upon billions of public tax dollars that are spent for facilities, including the one she approved in Wasilla, Alaska when she was mayor of that city for a junior hockey franchise that ended up in her town.


Palin is right about the quality of journalism today. Glenn Beck passes for a journalist, as do all of the yellers and screamers on cable TV news and AM talk radio. None of them really goes into any depth or perhaps even has the ability to be a savant even though CNN's Anderson Cooper is trying to "keep them honest."
The entire politics of the potential NFL lockout includes a conversation on workers' rights, medical/health benefits, retirement payments, government's role in infrastructure (stadiums), the National Labor Relations Board, Congress, the Oval Office and the media. Sarah Palin, of all people, could use her FOX credentials to work the story and get the info out to "real" Americans. Somehow though, it seems very unlikely that Palin would find the time and do the proper interviews with the proper people. "Real" Americans may not have an entire NFL season starting in March which includes the April Draft, mini-camps, free agency and then finally training camp. Someone should explain why this is happening and how Murdoch, Iger, Immelt, Redstone and White have fingerprints all over the potential loss of the NFL during next season by underwriting an owners' lockout.
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 www.bickley.com or amazonkindle. He can be reached at evanjweiner@yahoo.com

Sunday, October 17, 2010

FOX-Cablevision dispute and authentic frontier gibberish

Sunday, 17 October 2010 10:21



http://www.newjerseynewsroom.com/professional/fox-cablevision-dispute-and-authentic-frontier-gibberish



BY EVAN WEINER

NEWJERSEYNEWSROOM.COM

THE BUSINESS AND POLITICS OF SPORTS

Shortly after News Corp, Rupert Murdoch's Channels 5 and 9 in New York and Channel 29 in Philadelphia because of a contract dispute with Charles Dolan's Cablevision, the New York news radio station WINS featured some authentic frontier gibberish from Long Island Congressman Steve Israel about the battle between Murdoch and Dolan. Israel was either asked a question by someone at WINS or put out a statement about the unfortunate situation that could deprive Cablevision subscribers of the Major League Baseball playoffs and National Football League games along with FOX local newscasts, Glee and a plethora of afternoon judges shows on Channel 5 and Channel 29.

Israel, a Democrat was joined by his fellow Long Island Congressman, Republican Peter King and New Jersey Senator Frank Lautenberg in urging the two heavyweights Murdoch and Dolan to go to arbitration and settle the dispute on behalf of the little people — the cable TV subscribers, even though subscribers could pull Channel 5, Channel 9 and Channel 29 in with an antenna. Even Gabby Johnson, the character who gave a moving speech loaded with authentic frontier gibberish from the movie "Blazing Saddles," could have come up with a more coherent thought than the three elected officials.

What Israel (along with King and Lautenberg) should have said was that he and his 434 fellow members of the House of Representatives and the 100 members of the Senate should revisit the 1984 Cable TV Act and become pro-choice advocates and give consumers a chance to pick and choose what cable TV channels they want.

The 1984 legislation gave multiple systems operators (MSOs) like Cablevision the right to bundle failing networks like ESPN, the Weather Channel, CNN, CNN Headline News on an expanded basic tier as one entity (which might be a real violation of the Sherman Antitrust Act) and sell it to consumers for one price. The 1984 legislation was signed into law by President Ronald Reagan and was a real victory for small and struggling media companies.

The expanded basic tier is the real goldmine for news channels and sports networks. The cable TV socialism where everyone pays (on basic and basic expanded) has filled the pockets of Murdoch (FOX News Channel), Time Warner (CNN) and Microsoft-NBCUniversal (msnbc) and has allowed "news" channels to become nothing more than the equivalent of people screaming in the corner of the park (and those people being written off as kooks back in the days when they would shout to the sky and hope someone would listen to the diatribe). The cable TV socialism has also put billions into the pockets of sports owners who signed deals with multiple systems operators who had sports channels on the basic expanded or franchises that started networks like Madison Square Garden Network (owned by Charles Dolan — both a multiple systems operator and a program provider), the YES Network, SNY, and Comcast Sports Net Philadelphia (owned by Comcast, whose properties include the Philadelphia Flyers and 76ers).

The NFL Network has not been able to penetrate the basic expanded tier while the MLB Network is on basic expanded thanks to Major League Baseball owners being smarter than their football counterparts and selling off pieces of the baseball channel to multiple systems operators.

The MSO's think the NFL Network is too expensive and doesn't have enough NFL games for their customers. But the MSO's may have an alternative motive — the NFL signed an exclusive deal with the satellite provider, DirecTV, for their Sunday package of out of market games and shut them out.

Hell hath no fury like an MSO scorned.

What would happen if Congress found a spine and actually became pro-choice and gave consumers a chance to pick and choose what they really wanted to buy?

Well the sports industry might be vaporized and the carnival barkers at the FOX News Channel, CNN and msnbc (there is no news on those news channels just a bunch of people paid in six to seven figures letting off steam hoping to attract viewers who will stay long enough to watch the commercials) might have to become real journalists because very few people would pay a premium to watch the Becks, O'Reillys, Hannitys, Dooceys, Kilmeades, Roberts, Blitzers, John and Larry Kings, Spitzers, Parkers, Coopers, Scarboroughs, Matthews, Olbermanns, Maddows and O'Donnells of the world and without the Congressional protection the 95 million or so subscribers to the news channels would drop to maybe two to three million people.

That is the dirty secret in the cable industry that no sane cable network owner or programmer would ever want to reveal. They know that the Howard Stern jump from terrestrial radio to satellite rating was an absolute disaster as Stern's former listeners on free radio did not dig deep into their pockets to buy satellite radio. Stern got his money; the satellite radio business is struggling financially.

The buy rate for cable news channels which would be at a much higher price than the estimated buck per month per subscriber that Murdoch, Time Warner and Microsoft-NBCUniversal get would be in the low single digits.

FOX junkies can scream all they want about being the number one cable news network and msnbc lovers can extol the virtues of the so-called "liberal" network but the real numbers of people watching the cable news networks are abysmal and cable executives know it. Perhaps the only people who don't realize this are journalists who give credence to the cable TV news personalities.

But sports owners might come in for a real financial drubbing if Representatives Israel and King and Senator Lautenberg attempted to reign in cable costs by introducing a la carte legislation. It has been a number of years since a Georgia Congressman named Nathan Deal tried to put the genie back in the lamp. The Georgia House member failed to get his measure to the floor.

Cable TV is transforming the Texas Rangers franchise from bankruptcy to being flush in money. Rupert Murdoch, who had the regional cable TV sports monopoly is feeling heat from Comcast in the Dallas-Fort Worth metroplex. Comcast is looking at Texas and may set up a regional sports network in Houston. In a pre-emptive shot, Murdoch has given the new Texas owners, Chuck Greenberg and Nolan Ryan a $1.6 billion, 20-year deal which will give the Rangers ownership plenty of cash to pay off the debt on the team purchase and money for signing players. For Murdoch, the investment allows him to stay in Dallas and may keep Comcast out of the metroplex.

All Murdoch has to do is stay on basic expanded and up his fees and get 100 percent of the cable universe to pay for what just a few percent watch — Rangers baseball — thanks to socialism (the very kind of thing that the Becks, O'Reillys, Hannitys, Dooceys and Kilmeades rant against on a daily basis). Murdoch makes money from American socialism that was given to cable TV networks and MSO's by Congress and Ronald Reagan.

Murdoch lost the Chicago market a few years back when Jerry Reinsdorf (Bulls and White Sox), the Tribune Company (Cubs) and the Wirtz family (Blackhawks) signed a partnership with Comcast to launch their own network and left Murdoch's regional network in Chicago for dead. Owners in Major League Baseball, the NBA and NHL are looking to start new networks and get onto basic cable. It is just not pro sports. The Big Ten has a network and the University of Texas would like a network as well.

It makes sense when there is big money available. But what would happen with a la carte? No one wants to know. Disney has lobbyists in Washington to make sure that it will never happen as ESPN (which is a Disney cash cow) would go from the so-called "World Wide Leader in Sports" to begging people to buy their costly network. The Yankees franchise would not be able to spend money freely without the revenues from YES that presently come from non-YES watchers. The sports industry would be devastated.

The authentic frontier gibberish from Israel was followed by authentic frontier gibberish from both News Corp and Cablevision. In the end, cable TV consumers in the Cablevision systems will reach into their pockets again and both Murdoch and Dolan will continue to duke it out somewhere else or make love in an another area (they were partners in a complex TV deal which also included the Knicks, Rangers and Madison Square Garden). As long as Congress doesn't rewrite the 1984 cable TV legislation, they can go on with their faux fight because at the end of the day, neither will be unhappy with the outcome as they are playing with other people's money thanks to a federal law that protects cable TV and leaves consumers reaching into their pockets to pay for something that they might not necessarily watch.

Evan Weiner is an award winning author, radio and TV commentator and speaker on the "Business and Politics of Sports. He can be reached at evanjweiner@yahoo.com

Tuesday, September 28, 2010

Cablevision-FOX fight is at bad time for N.Y. Giants and Philadelphia Eagles fans

Tuesday, 28 September 2010 11:51



http://www.newjerseynewsroom.com/professional/cablevision-fox-fight-is-at-bad-time-for-ny-giants-and-philadelphia-eagles-fans

BY EVAN WEINER

NEWJERSEYNEWSROOM.COM

THE BUSINESS AND POLITICS OF SPORTS

There is nothing better than a fight between a cable television multiple systems operator and a television company when it comes to signing a new "carriage" deal. In New York and Philadelphia, News Corp-FOX Rupert Murdoch's boys (Channels 5 and 9 in New York, Channel 29 in Philadelphia and three of Murdoch's cable networks) are in the red trunks while Chuck Dolan's guys (Cablevision) are in the blue gym shorts. But neither will even get hit with a glancing blow. It will be the Cablevision consumer who will be the one who absorb the punches.

On October 16th, Murdoch's WNYW and WWOR in New York along with Philadelphia's WTXF could disappear from Cablevision's lineup which would deprive Cablevision subscribers of New York Giants, Philadelphia Eagles and NFL games and would sadden the lives of daytime viewers in the New York area who need a daily fix of luminaries such as Wendy Williams, Dr. Oz and those staged for TV court shows featuring Nancy Grace, Jeanine Pirro, Joe Brown, Harvey Levin and Levin's journalistic effort, TMZ. In Philadelphia, Judge Judy, Judy Alex and Divorce Court aficionados would have to find something else to do along with Wendy Williams, Nancy Grace and Harvey Levin fans.

The subscribers in both areas would also lose the "news" (and miss seeing murder, mayhem, entertainment, sports and weather reports). If things get really sticky, Cablevision viewers will also lose the Major League Baseball Playoffs, the National League Championship Series and the World Series and prime time shows such as "The Simpsons," "24" and "Glee."

Cablevision isn't the only provider of FOX programming. A consumer can always buy an antenna and pull in the Channel 5 and 9 signals in the New York area and the Channel 29 signal in the Philadelphia area. There are also satellite and phone alternatives and for those worried about losing the NFL, there is always DirecTV's Sunday football package.

All is not lost for the over-the-air stations viewers of WNYW, WWOR and WTXF. Nor is it the end of the world for Cablevision subscribers who are fans of FOX Deportes, Nat Geo Wild and the FOX Business Channel. Cablevision subscribers who are so infuriated can look for a different delivery system and Murdoch's people are letting those people know that they have alternatives.

Murdoch's scare tactics for those who cannot remove themselves from their position in front of the TV includes having a website (just like the Disney propaganda sites against Cablevision and Time Warner earlier this year in carriage fights---Disney apparently got what they wanted from the multiple system operators and it will be reflected in higher cable TV fees) that asks people to sign a petition to keep FOX properties on Cablevision.

Keepfoxon.com also includes testimonies from people who are irate about the prospect of losing FOX programming on Cablevision and are telling stories about how they have switched to other sources in the titanic showdown.

To make a long story short, Murdoch and Dolan have been business partners — in 1997 Murdoch picked up 40 percent of Dolan's Rainbow Media Sports Holdings for $850 million. The deal gave Murdoch part ownership of Dolan's National Basketball Association's New York Knicks and the National Hockey League's New York Rangers and have a history of working together to make money for one another. Neither is really concerned about the consumer although Dolan always puts out some nonsense about protecting consumers. In 1998, Dolan's Cablevision "partnered" with Murdoch's News Corporation and Liberty Media and "rebranded" Sports Channel New York as Fox Sports New York (FSNY). Dolan's Madison Square Garden Network also became a part of the FOX Sports Network.

In 2005, Dolan and Murdoch ended their alliance because Dolan had some bills he could not pay. Dolan's Cablevision took full ownership of the Garden and the teams, including the Knicks, Rangers and the WNBA's Liberty, as well as MSG Network, Fox Sports New York, FSN Chicago and Radio City Entertainment and 50 percent of FSN New England. Murdoch's News Corp., which held a 40-percent stake in the joint venture, got full ownership of two Fox Sports Net regional sports channels in Ohio and Florida and the two network's advertising operations.

They are not really foes although Dolan beat out Murdoch to buy Long Island's Newsday a couple of years ago. But if there is to be a fight, Dolan and Murdoch are certainly in the heavyweight division.

Both have the right political connections and both can go the distance.

Dolan is a pesky opponent. After losing the New York Yankees cable TV rights, Dolan decided that the Yankees new YES Network was too pricey to be put on Cablevision in 2002. New York State elected officials stepped into the YES Network-Dolan dispute and arranged a temporary cease fire that put the YES Network on Cablevision systems in 2003. Dolan and the Yankees signed a long term agreement in 2004.

Earlier this year, Dolan and Scripps Network Interactive engaged in an 18-day scrap that kept the Food Network and HGTV off of Cablevision systems between January 3 and 21. Then there was the Cablevision-Disney contract battle in March when Disney pulled WABC TV off of Cablevision systems the day of the Oscar presentation show. Cablevision and Disney reached a deal and the Oscar program was restored some 15 minutes after the Academy Awards show started. Dolan and Disney faced some political scrutiny with New Jersey Senator Frank Lautenberg chided the two entertainment companies.

Disney extracted money from Dolan for the right to carry WABC on Cablevision systems. Dolan, of course, passed on the cost to consumers.

The high end News Corp/FOX-Cablevision drama will probably end with a whimper. Murdoch will get what he wants, Dolan will get what he wants and the consumer, the third party in this heavyweight face off will have to pay the price.

The consumer has little choice if they want cable TV. They are stuck in a system that gives them little choice in what they want to purchase thanks to the 1984 Cable TV Act passed by both the House of Representatives and the Senate on Capitol Hill and signed into law by President Ronald Reagan. The law allowed multiple system operators to bundle struggling networks such as ESPN, the Weather Channel, CNN and CNN Headline News onto a basic tier (which was anti-consumer and probably violates antitrust laws) and sell the package as one on a basic expanded tier. Cable TV is an all or nothing business. You buy basic, you buy basic and basic expanded and throw in digital. But you cannot buy an individual sports package or news package. Giants, Eagles, NFL fans along with baseball fans probably don't have to lose too much sleep over the Murdoch-Dolan spat. It will be resolved and if the two heavyweights can't agree, someone in Albany or Trenton or Harrisburg or Washington will get a solution in place very quickly. After all, it is election season and someone will probably want to claim victory for TV viewers.

Evan Weiner is an award winning author, radio-TV commentator and speaker on "The Politics of Sports Business." He can be reached at evanjweiner@yahoo.com

Friday, July 23, 2010

Discarded NFL players are often forgotten in retirement

Discarded NFL players are often forgotten in retirement
FRIDAY, 23 JULY 2010 16:15

http://www.newjerseynewsroom.com/professional/discarded-nfl-players-are-often-forgotten-in-retirement

BY EVAN WEINER
NEWJERSEYNEWSROOM.COM
THE POLITICS OF SPORTS BUSINESS
As National Football League training camps begin to open up around the country, (the New York Jets in Cortland, N.Y. on Aug. 1, the New York Giants in Albany, N.Y. also on Aug. 1 and the Philadelphia Eagles at Lehigh in Bethlehem, Pa. on Monday) some 2,560 players are getting ready for what has become an annual ritual — two a day sessions upon the broiling sun to prove they belong on the field. Eventually only 1,696 of them will make teams. A number of the 864 players who are "cut" might end up on practice squads where they make a minimum of $5,200 a week to hone their skills. Some of the players will be placed on injured reserve and will either return to the field or get cut when they are deemed healthy. Each team can keep as many as eight players on the payroll (practice squad) which means 256 players might get another shot at a roster spot when a team loses a player to an injury.
Football is a tough game. Americans have been sold on football's brutality since the October 31, 1960 CBS documentary called "The Violent World of Sam Huff" which was narrated by Walter Cronkite. Yes TV networks once did documentaries in a time when TV news did reporting, research and presented facts and not worried about being profitable. In the 1970s, Al Primo convinced TV executives that news could be turned into entertainment and news divisions could make really big money. Cable TV news would take Primo's idea to the next level and began to feature raving lunatics screaming about their viewpoint because it made for "good TV". Huff was a linebacker with the New York Giants and was the first NFL player ever to appear on the cover of Time magazine on November 30, 1959. Huff's job was to "hurt people" because football was a "man's game" according to the accompanying Time magazine column.
The Huff piece came about 10 months after the "greatest football game ever" when Johnny Unitas led the Baltimore Colts to an overtime win over the Giants in the NFL Championship Game, a game that captivated Americans and propelled the NFL from a "mom and pop" operation into the big time. Huff wasn't the best linebacker in the NFL but played for the "glamorous" New York Giants, a team that caught the fancy of Madison Avenue's advertising community and the TV networks which were headquartered in New York. Huff's Giants didn't win the 1958 championship, Baltimore did but Baltimore was led by a quiet crew cut quarterback named Unitas while the Giants had the handsome Frank Gifford and the tough as nails Huff.
Sam Huff became a successful businessman after his career. Unitas didn't. The quarterback who put the NFL on the map couldn't use his right hand as he got older because of a tendon injury he suffered in 1968. He has two knee replacements and heart bypass was denied disability. Unitas died in 2002 but the denial of disability to the quarterback who put the NFL on the map still draws the ire of former players in tough spots.
In 2007, Congresswoman Linda Sanchez, the chair of the House Judiciary Subcommittee on Commercial and Administrative Law, held a hearing because she wanted to have "an open discussion on the fairness of the system to severely disabled retired players." It was the start of drawing attention to the plight of retired NFL players. Johnny Unitas' widow Sandra was in Washington watching the hearings.
Huff in his Time magazine interview in 1959 didn't say anything new. A Life magazine had a cover story on December 3, 1971 "Suicide Squad Football's most violent men." Suicide squads have been given a more genteel name — "Special Teams" — but that's where rookies have to first earn their stripes in the NFL. Special teams are the worst assignments on the team and punt returns can be especially dangerous.
Football has been wrestling with players been injured and maimed for more than a century. President Theodore Roosevelt in 1905 told college presidents to clean up the game or he would ban football because of the number of deaths and injuries associated with the game.
New rules were implemented but the game remained violent and more than a century later, it seems that not much has changed. Players are still one play away from ending their career and that leads to the question.
Do the young players and some of the veterans who are about to go to camp know what they are getting into? If you listen to Dave Pear (and other older retired players who suffered life changing injuries playing football), the answer is no. Pear played in the NFL for six years as a defensive tackle between 1975 and 1980 with the Baltimore Colts, Tampa Bay Buccaneers and Oakland Raiders. He played in one Pro Bowl and was a member of the Raiders Super Bowl XV championship team in 1980-81. Despite all of that, Pear wished he never played football.
"They think they are but no they are not," said Pear who broke his neck during his career and is facing hip replacement surgery in the very near future. "I don't begrudge the active players one penny and I suggest to them save as much as you can because when they become 40, 45, 50, 55, if things don't change, they are going to need the money because the union won't support them."
Pear is uninsurable and depends on government support such as Medicare and social security disability for his medical needs. But he might be one of the lucky ones as he has his wife's support and seems willing to take on the NFL and the NFLPA in an effort to get access to his benefits. He is one of the few with George Visger, Brent Boyd, Conrad Dobler and Mike Ditka who are speaking out about what they feel is the NFL and the NFLPA's abandonment of broken down old players who are in need.
But a lot of former players are not talking, partly because they have been trained since junior high school to "suck it up" and "be a man" which is the football mentality. Most players who play college football have no skills when they leave college because they don't get an education as they are too busy playing football. Sunday's warriors have been beaten over their heads since they were small and are team players even in retirement.
Retired players face high rates of divorce, face bankruptcies and have to put up with the pain of serious injuries on a daily basis. Alzheimer's disease and memory-related diseases in former players between the ages of 30 and 49 are 19 percent higher than average in that population pool.
"Football players wear a mask," said Pear. "All people see is a number. We are just a number that is how football works. Nobody knows how many retired players there (in dire straits)."
The House of Representatives has been holding hearings and monitoring the head injuries situation around the NFL. In 2009, several House members did not think NFL Commissioner Roger Goodell or the league has done enough to care for players with head injuries — concussions — and that the league really has not made much of an effort investigating long time damage from concussions suffered by players who worked in the NFL as players.
Pear and other retirees have been after the league and the players association to do more and it wasn't until Congress stepped in and began hearings in 2007 that the league and the players association took notice.
The NFL and researches have been at odds over the sports head trauma and later cognitive degeneration. Researchers looking into the relationship between concussions and cognitive problems have seen a link while the NFL's medical committee on concussions has not. On December 3, 2009, the NFL changed the league's concussion policy telling teams that if a player shows any significant sign of concussion that player must be removed from a game or practice and cannot return to the field on the same day.
New NFLPA Executive Director DeMaurice Smith told the retirees that "the rift is over" between the old players and the union and that help for those in need is on the way. But Pear doesn't see any evidence that the rift is really over. "The NFL grosses about eight and a half billion dollars a year, so where is the dough? (Former Executive Director, the late Gene) Upshaw once said we could not receive a pension and disability. Now we have the Gene Upshaw Dire Need Fund, but nothing has changed. So (to today's players) save every penny because once they realize they need medical insurance and can't get it."
When the cheering stops for a good number NFL players, there is no pot of gold at the end of the rainbow. Because of the injuries, a good many players became medical liabilities and are uninsurable. The National Football League does not guarantee contracts and if you are a marginal player who was injured, as soon as a doctor pronounces you healthy, you could be cut and your contract just ends with some severance pay.
Players of Pear's era got no severance and there was no guaranteed money given as a bonus. The bonus money is the only payment that a player will get, all players are then on a week-to-week basis. Virtually all of the players are replaceable on the spot.
"I know there is no pot of gold," said Pear. "In football, you are only a number. When you are a professional football player, you think you are invincible but when you get hit in the head, you injure your brain and life becomes different. We want our disability, our pension and future medical benefits. We don't want charity"
The football culture is different than real life. Football players grow up in a paramilitary setting as one long time NFL owner once said. That may explain why the National Football League Players Association has never been as effective as the Major League Baseball Players Association or the National Basketball Players Association or the National Hockey League Players Association in delivering guaranteed contracts to their members. The NFLPA seemingly has been pushing salaries up throughout the last four decades and not worrying about aftercare for former members until recently when the league and the players association were hauled before Congress to talk about the plight of former players.
"What they have done is create a myth," said Pear. "They have misled these young men telling them to be tough and work through injuries. Major League Baseball, the NBA and the NHL guarantee disability, pensions and medical their career. They (the NFL and the NFLPA) have convinced up that we do not deserve it. They have not allowed us access to our benefits which is not right and that has hurt players and players' families."
The National Football league Players Association has not kept records detailing the difficulties former union members have had in their post-football lives. One of the problems is that most players last 3 1/2 years in the league and pensions for players with three years in the league is not much. But the 3 1/2 year average is deceiving. Running backs may last 2.2 years and not be eligible for a pension or benefits as an example. The NFL may be recognized as the National Football League, but people in the NFL know the initials NFL as Not For Long. A good number of players never make it to where they can apply for a pension or disability and by the time they get to the NFL, after surviving high school and college ball, they probably have had some injury baggage. There is a disability benefit plan but according to Pear, it is more lip service than reality.
Congress, for the most part, has left the NFL issue behind although the House could call the NFL and NFLPA before them at any time. Pear is of the opinion that Congress, a class action suit by former players and chipping away at the NFL's image are three areas where the retired players can make the most strides.
The class action suit demanding compensation for injuries would need a law firm with deep pockets willing to take on the NFL and would require players to step up and talk about their problems. It might be easier to find a law firm than getting macho tough guys to go public. There is still a stigma attached even in retirement for players who don't toe the company line. Congress can go after two of the league's antitrust exemptions, the Sports Broadcast Act of 1961 which allowed the NFL to package all of the league's teams (14 in 1961, 32 in 2010) and sell the league to over-the-air and cable TV networks as one entity and undo the 1966 American Football league and National football League merger. That is highly unlikely but the NFL can be vulnerable there. The NFL does a remarkable job selling the product — football — but can the NFL afford images of broken down old stars and grunts who are relatively young, in their 40s and 50s parading around with ailments suffered in games?
It is unlikely that NFL media partners, Sumner Redstone's CBS (or any of the Redstone's holdings including Showtime), General Electric's NBC, Disney's ESPN or Rupert Murdoch's FOX businesses (including Fox News Channel or the FOX Business Channel) would tackle the issue. Newspapers are not partners with the NFL but newspaper sports sections depend on the NFL to fill up space for content and hope that readers will pay attention to ads and some of the ads are football related wrapped around Thanksgiving, weekends and playoff games leading up to the Super Bowl. A reporter sniffing around might lose access to the NFL and most writers would rather give up their right arms than be denied NFL access. The NFL controls the narrative and while Time Warner (the cable TV programmer and channel stock side not the stock side that owns Time Warner Cable) no longer has an NFL TV contract and could do pieces on CNN (a news network that hardly covers news), Time Warner might not want to show the NFL in a bad light. Image or perceived perception is everything to the NFL.
Pear fits into the study of short term memory problems. "There is a problem, you don't know what it is, as a player you are taught to work through it, but as you get older....I wished I never played. I enjoyed playing football when I was not injured. I played with a broken neck for two years. It wasn't worth it."
The image of the NFL, the romance of training camp, the start of the season goes fully on display by Aug. 1. The question for the 2,560 players who are in training camps is simple? Do you know what you are getting into? It is a question that only they can answer and perhaps instead of worrying about how much money they can get in the ongoing collective bargaining agreement, the players should check off safety concerns for both active and retired players (even though retired players don't pay the salaries of NFLPA staff) as their top priority in the next CBA.
Evan Weiner is an author, radio and TV commentator and speaking on "The Politics of Sports Business." He can be reached at evanjweiner@yahoo.com

Saturday, July 10, 2010

Lebron, Economic Impact and a Cleveland Casino

Lebron, Economic Impact and a Cleveland Casino









http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m7d10-Lebron-economic-impacts-and-a--Cleveland-casino



By Evan Weiner



July 10, 2010





(New York, NY) -- The entire Lebron James free agency tale should make society reassess the importance of sports but society won't. People who should know better including New York Mayor Michael Bloomberg and the owners of the two tabloid New York newspapers, Mort Zuckerman of the Daily News and Rupert Murdoch of the Post looked like fools throughout the entire process along with a whole host of others. Bloomberg was out in the front waving the city's pom poms begging Lebron James to sign with the New York Knicks and Zuckerman and Murdoch were not very far behind nor were some of the "beautiful people", the actors and others with money to spend on Knicks tickets. Murdoch had a minority share in Madison Square Garden between 1997 and 2005.



All of this was going on while Bloomberg was cutting municipal jobs and the New York State legislature continued being dysfunction with a lame duck governor, David Patterson, cutting state jobs.



Zuckerman and Murdoch's papers reacted like heartbroken teenagers on Friday morning. The love of their life, Lebron to the Knicks, spurned New York City and that was a public slap to the face.



After all, New York is where basketball really matters. It has the world’s most famous arena and the Knicks are the Knicks. The truth is, basketball takes a far seat behind the Yankees in New York, the Garden is an antiquated arena that was poorly designed in the mid-1960s. Basketball in New York on the college level hasn’t mattered in generations, the NCAA College tournaments play on regional stages which are much more important to kids playing basketball than the Garden and the last time the Knicks won a championship was 37 years ago. Patrick Ewing is more of a villain in New York than a basketball hero because he could not deliver a championship.



New York is not a top destination in the NBA for players.



Meanwhile the adulation behavior is obscene. Gushing over a 25-year-old basketball player who is nothing more than an entertainer who puts on a show maybe 100 times a year is ridiculous.



Lebron James’ one hour infomercial with the "family-friendly" Walt Disney Company's ESPN was a total disgrace but it was no different than other disgraceful TV offered by Disney like the bachelor or bachelorette shows on the Disney owned ABC-TV network. It was a new form of "reality" programming that was tightly controlled by Jim Gray and Lebron James' management team.



The Bloomberg’s administration claim that Lebron James’ signing with the New York Knicks would pump $58 million into the city's economy was as fraudulent as the early 1990s contention by then Major League Baseball Commissioner Fay Vincent that a new baseball stadium in Cleveland would serve as an economic engine for that city.



If the Gateway Center was built, some 28,000 jobs would be created was the mantra. Cleveland voters said yes to building the ballpark with the $84 million in public financing coming from a "sin tax" or a tax on cigarettes and alcohol in Cuyahoga County.



A good Cleveland Indians team in the mid-1990s in a new baseball park probably gave life to some small businesses around the Gateway center where a new ballpark, a new arena and a football stadium were built along with the Rock and Roll Hall of Fame, but overall Fay Vincent's plea to spend municipal dollars for the Cleveland Indians owners, the Jacobs Brothers, business and it would lead to an humming economic engine has proven very wrong. The Rock and Roll Hall of Fame gets local, state and federal subsidies to keep it going. Two Gateway Center garages have cost Cleveland millions of dollars because Cleveland officials gave away too many parking spaces to the Indians owners, the Jacobs and the then owners of the Cleveland Cavaliers, the Gund Brothers.



The two sets of owners got 250 parking spaces everyday for their private use. Jacobs also got 1,250 parking spaces for each Indians home game or 81 times a year. The Gunds got 1,450 spaces for each of 41 NBA games. The free spaces go to premium and loge ticket holders which meant that the high end ticket buyers went right into the stadium or arena and skipped businesses outside the buildings. Meanwhile Cleveland is paying off the stadium/arena garages by taking money from parking meters and parking garages to pay off the garage debt and that means less money for municipal workers.





Cleveland and Cuyahoga county taxpayers have a contract with the Indians, Cavaliers and National Football League Browns. They keep paying for the facilities whether they use the venues or not. The Cleveland Browns Stadium has cost taxpayers who smoke and drink $64,609,806.86 since August 2005. The "sin tax" also has paid about $266 million to cover some of Gateway’s costs at the baseball and basketball facilities. The "sin tax" is schedule to expire in 2015. But don't bet on that. Speaking of betting, because Cleveland's downtown was in such rotten shape economically, Cleveland politicians gave thought to opening casinos in an effort to create an economic engine. The dying rust belt city's political brain trust cannot find a formula to prime the economic engine pump.



In November 2009, Ohio voters said yes to building casinos in Cincinnati, Cleveland, Columbus and Toledo. Interestingly enough Cavaliers owner Dan Gilbert along with Penn National put up $35 million in campaign financing to support the initiative. There is a promise of 34,000 jobs with the creation of the casinos. Gilbert will own the casinos in Cleveland and Cincinnati.



Gilbert's tirade after Lebron James left might be more about his casino than basketball. Without Lebron James in the Cavaliers lineup, there will be thousands of people less in the arena and less people who could go to Gilbert's casino adjacent to the arena and spend money in Gilbert's casino.



Lebron James was not a linchpin of the economic pump and might have done more to harm Gilbert's business than Cleveland or James’ hometown of Akron.



The assertion that Lebron was worth $58 million to New York does need a closer inspection. Madison Square Garden, which sits on some valuable property in midtown Manhattan between 7th and 8th Avenue and 31st and 33rd Street does not pay city property taxes. It has been about 28 years since a tax bill was delivered to 4 Penn Plaza in care of Madison Square Garden. A basketball team plays just 41 regularly scheduled games during the season which runs between November and April, there may be a couple of pre-season games in October and maybe a dozen or so playoff games if a team goes far into the playoffs.



The basketball fan does not travel to games. The economic impact of a basketball game is minimal in a city's economy. Here is how this works. Sports teams need customers not fans because customers have more spending money than fans and are willing to dine in venue restaurants and other eatery which takes away from restaurants that surround arenas.



Madison Square Garden hosts about six NBA games a month between November and April. A basketball team has a coach, a number of assistant coaches, equipment and training staff along with the players and possibly a general manager. A total of perhaps 25 in a traveling party. At the upper extreme, if each member of the traveling party spent $1,000 on hotels and meals, the economic impact of a visiting team is $25,000 although some cities do tax visiting players while the perform in that city which might come out to $30,000 a day. The economic impact may be a million dollars a month which is a drop in the bucket.



Maybe.



Businesses are going to take clients somewhere to wine and dine them. If there was no basketball, there would be something else. Corporate ticket buyers also write 50 percent of the cost of a ticket of their taxes as a business expense.



The impact is not much. If business people in Miami are salivating over Lebron James, they are totally misguided. People will go to games because that is the "in thing" to do but what they are really doing is taking dollars that would be spent elsewhere in the area and there will be no uptick in sales at malls and supermarkets except in the immediate area of the arena.



Micky Arison, the owner of the Miami Heat and CEO of Carnival Cruises, will benefit financially. Arison knows how to work the system. The Heat’s arena was the product of the political process. In 1996, voters approved a bond for the construction of a new arena for the Heat. Arison kicked in $50 million to the costs of the building while hotel taxes were increased to pay for the other $163 million. Part of the deal was that Arison’s Carnival ships would use the nearby Miami port as a base. The Carnival Corporation has offices not far from the arena and the port.

Arison and the arena will make money. Money that had not been flowing into Heat games in the past few years will return from other parts of the region. As former New York Jets Vice President Jay Cross once pointed out when he was Jets owner Woody Johnson’s main negotiator for a Manhattan west side stadium accidentally pointed out, a new stadium (or arena) makes more for an owner, the players and maybe parking lot attendants. There is no trickle down for a municipality and in fact many municipalities are paying down large debts for venues and very few, if any, local businesses other than a bar or restaurant make measurable money off of sports teams.

Bloomberg has to know this. Sports makes people feel good or rotten. Too many people are too attached emotionally to their team. The players are not attached; it is a business no matter what they say about the home court, home ice, and home field advantage. The NFL stands for Not For Long for the players. They are feeling good in Miami, sports fans spew out venom in sports talk radio in New York. Lebron was called “The Queen” by callers, sports journalists are playing amateur shrink trying to figure out what makes Lebron James tick.



Lebron should have called his business partner Gilbert and told him that it was over. But is Lebron now a villain like sports people, media and fans, are painting him? The answer should be no. He did something stupid in the infomercial on ESPN and ESPN provided no strategic guidance but then again, ESPN is mostly geared for children anyway and this was a reality show of sorts. “The Decision”. ESPN is owned by Disney although the executives at Disney are hardly children and they too know how to work the political system.

Lebron James is a 25-year-old basketball player, an entertainer, nothing more and nothing less. Too many grownups genuflect in front of 20-something athletes. But then again fan is short for fanatic. Maybe it is time for the grownups (the politicians and the media) to grow up.





Evan Weiner is an author radio-TV commentator and speaking on “The Politics of Sports Business” and can be reached at evanjweiner@yahoo.com

Tuesday, December 15, 2009

Tiger, Harvey Levin, Time Warner and Murdoch and American journalism

http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2009m12d15-Tiger-Harvey-Levin-Time-Warner-and-Murdoch-and-American-journalism#


Tiger, Harvey Levin, Time Warner and Murdoch and American Journalism

By Evan Weiner

December 15, 2009



(New York, N. Y.) -- In all the stories about Tiger Woods, the one that doesn’t stand out is how much money charities will end up losing because people like Harvey Levin keep pushing the envelope and claim it is journalism. This much is known, Woods dropped out of his own charity tournament in late November and attendance was way off without the golfer at the Thousand Oaks, California course.

That meant a loss of money that would be given to charities and people who need help. That is not something Levin and his ilk give much thought to.

What happened with Tiger, the mistresses, his family is Tiger Woods’ business and he has to deal with his problems. The general public does not need to know what is going on. The public does not have a right to know even though Tiger Woods is a public figure. Woods is a golfer and a corporate pitchman, he is not a governor of a state who spent time with a hooker in Washington, DC, he is not a governor of a state who decided to take off to Argentina to be with his lover and disappeared for five days and not tell any state officials about not being around which is unconscionable for the leader of a state and should be an impeachable offense.

Woods is a golfer. That is what he does best.

The Woods story is taking a familiar route with the media being led by the nose by people like Levin and his benefactor Rupert Murdoch. Levin and Murdoch together in bed? Yes, you see Levin’s TMZ television show is picked up by Murdoch’s WNYW in New York and his stations in Chicago and Los Angeles. TMZ’s franchise TV show is distributed by Warner Brothers Domestic Television Distribution and the show is also partially produced by Warner Brothers Telepictures along with Levin. So two of the United States’ three cable TV news entities have an interest in TMZ and further the Woods story as Murdoch’s FOX and Time Warner’s CNN are giving the people what they want or are they?

And the media pile on includes spin doctors, public relations agents, the amateur and professional psychiatrists and others who are giving their professional advice to Tiger and how he can reclaim his pedestal. It seems like we have heard this story before with Alex Rodriguez the last sports icon to fall last spring. The Yankees won a World Series and Alex Rodriguez seems to be doing fine.

The Tiger Woods story doesn’t resonant in gyms or in the Eastchester, New York CVS store. Inquiring minds need to know, so I asked a woman who has worked at the store for a long time whether there has been a spike in sales of Murdoch’s New York Post, the National Enquirer, People, US, Star the Globe and all the other “entertainment” magazines and papers and the answer was a resounding no.

The National Enquirer is on the ropes financially; the New York Post has lost a chunk of circulation and is in the red. CNN and FOX would not be profitable without the Cable TV Act of 1984 which does not allow a la carte cable TV pricing.

Murdoch, the hero of the conservatives and moralists, really does pull the wool over his audiences’ eyes sort of like the Wizard of Oz behind the curtain. His audience never seems to notice that he hired the former New York Governor Eliot Spitzer’s hooker as a sex columnist for his New York Post, or that the Post has ads for escort services or that his WNYW TV station runs spots for escort services.

Levin is an interesting story. He nearly blew up the O. J. Simpson case as a reporter for KCBS in Los Angeles back in 1994 by showing a video with a wrong time code of the prosecutor Marcia Clark searching Simpson’s home before a search warrant was issued. Levin had to apologize for his mistake, but he has continued having a TV career despite his almost over-the-top miscue.

Levin is now the host of The People’s Court. AOL helped get TMZ.com off the ground. AOL was owned by Time Warner when that happened in 2005.

The court TV genre is popular but perhaps it is time for either the House or Senate’s Committee on Legislative Oversight start taking a serious look at Levin and others in the genre if a veteran TV booker who shares a first name with a one time gossip columnist and a last name with a baseball writer is correct. According to the booker, court shows look for people who are over the top who get easily excited and are interesting. Before the court shows are taped, there is a lot of alcohol available to drink and then it is show time. To get a plaintiff to sue a defendant on the show, the plaintiff is given a sales pitch by a producer which consists of what do you have to lose, you probably aren’t going to get your money anyway from this man or woman so come onto the show and you are guaranteed something.

There is a catch though. The plaintiff might win a judgment but the show’s budget has been stretched and that the plaintiff might not get the all of the money from the show’s producers because the show’s budget has been stretched.

If Congress could investigate TV game shows of the 1950s, they can look into Levin and others who engage in this type of genre. After all, Levin has no problem going after people like Tiger Woods or Mel Gibson or Britney Spears or Michael Richards (by the way, how did TMZ not run afoul of the do not tape performances announcement that accompanies all performances and put the Richards meltdown on a website without getting sued for copyright infringements?)

Woods is just the latest in a long line of people who were placed on a pedestal by the media and now the media is feasting over his rapid demise as an icon and idol. Golf writers, who sound a lot like baseball writers who were caught with their collective pants down by not writing about alleged steroid usage in the sport (although the Washington Post’s Thomas Boswell and sportscaster Bob Costas did write and talk about their suspicions) are now doing a mea culpa.

Leonard Shapiro in the Washington Post has expressed some sort of guilt by not following Tiger Woods into the bedroom. Shapiro in his column also fingers fellow writers for not following Woods on his sexual romps.

This is what the Murdochs, Levins, Time Warners have created. But the point is that people don’t care. No matter what the media barons say, it doesn’t sell newspapers, if scandal did, Murdoch would be rolling in dough with the New York Post and not blaming the Internet for the decline of newspaper readership. TMZ would be pulling a 46 percent share of the audience during its time slot and the National Enquirer would be flying off the shelves.

Back to the gym, there was a conversation between a senior woman and a man from one of the Caribbean islands. The woman said “look men like sex, Tiger Woods is a man, he is a powerful man and woman throw themselves at him whatever happened, it is his business.” The man in the other end of the conversation had an interesting point about the American media, how they like to build up people and then knock them down and that didn’t happen in his home country.

Back in the 1980s, the veteran New York sports columnist Dick Young used to write about “My America”. Young’s America in his mind cared about law and order so he expected that the Major League Baseball players who were linked to cocaine usage would get booed upon their return from court or a suspension or even jail time. None of that ever happened because people just want to be entertained.

In the 1980s and 1990s, grown men used to quiver in line when Mickey Mantle did baseball card autograph shows even though they knew about Mickey’s drinking and infidelity.

They loved the Mick.

Tiger Woods is an entertainer. No more, no less. He is not the Commander in Chief conducting two wars, nor is he trying to turn around a severe recession. He is not trying to find a cure for cancer. He is not a school teacher nor is he is member of the clergy. He is a golfer. That’s it.

But Levin and is ilk have hurt charities in their quest for an extra three viewers to make their presentations more valuable for advertisers and knock Woods from his media made throne. The Professional Golf Association donates a piece of the gate in every city that a tournament is played to local charities. Without Woods, charities are going to suffer. Tiger Woods drives the gate and that part of the story is going unreported by Murdoch, by Levin, by CNN. They just a reporting on how much money Tiger Woods could lose in endorsements.

It is a sad, sad commentary on what passes as the news industry in the United States. But as a one time WNEW-FM, New York disc jockey turned WABC-TV, New York political reporter named Pat Dobson once said on the air, the media just follows the New York Post’s lead.

It is that mentality that is sinking the journalism business rapidly.

One last thing, when Tiger Woods returns to the golf course, he will be welcomed back by the consumer just like those baseball fans who cheered the guys linked to cocaine in the 1980s.


evanjweiner@yahoo.com