Saturday, February 6, 2010

The Subsidized Bowl

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http://www.examiner.com/x-3926-Business-of-Sports-Examiner~y2010m2d6-The-Subsidized-Bowl


The Subsidized Bowl



By Evan Weiner



February 6, 2010



(New York, N. Y.) --- Super Bowl XLIV is really the wrong title for this weekend’s championship game between the Indianapolis (by way of Dayton, Brooklyn, Boston, Miami, Baltimore, New York, Dallas and Baltimore) Colts and the team that Congress created in 1966, the New Orleans Saints. To be perfectly correct, the NFL should be calling this game the Subsidized Bowl I or maybe III or XII depending how deeply you want to explore the political relationship and taxpayers roles in the funding of Super Bowl teams.



The owners of the Indianapolis and New Orleans franchises do have a lengthy history of putting the screws to politicians for either new stadiums or outright payments to keep a team in town.



Saints owner Tom Benson probably cut the greatest bailout deal ever in 2001. Benson’s trek started in 2000 when he began to complain that his one time money producing lease at the Superdome was failing way behind other franchises because other cities and states were underwriting the costs for sports facilities and then giving most of the stadium revenue streams to “grateful” owners. (Under federal law only eight percent of stadium revenues are required to go to paying down the building’s debt if it the venue was paid by taxpayers.)



Benson did what any respectable owner would do. He threatened to leave town without a stadium. Benson’s options were limited: San Antonio had a relatively new stadium but was a very small market like New Orleans. Los Angeles was unsuitable as there was no stadium on the horizon, something that cost the area an NFL expansion team in 1999.



Louisiana didn’t have money on hand for a new stadium either, but in 2001 Governor Mike Foster and the legislature would cut a deal with Benson. They would give Benson handouts as a thank you for not breaking his Superdome lease and moving. The first check was for $12 million in July 2002. A $13 million check would be presented in July 2003. Benson would get the money from a number of ways. Louisiana hiked the hotel and motel sales tax and gave Benson the ability to sell the Superdome’s naming rights. Louisiana gave Benson $186.5 million in outright cash through 2010 so that he could spent money for players, front office people and marketing and keep his Saints competitive in a market that barely had any Fortune 500 companies and had a declining population.



The deal backfired on Louisiana taxpayers immediately. The multiple attacks on September 11th, 2001, in New York and Washington, had a dramatic impact on tourism in New Orleans and the falloff in the number of people going to New Orleans meant fewer revenues to payoff Benson. Additionally, no one stepped forward and bought the naming rights to the Superdome. By 2004, Louisiana was cash strapped and owed Benson $15 million on July 5th of that year. If Benson did not receive the check, he would have been a free agent and able to shop his franchise around by September 18th of that year. Somehow Louisiana found money and did not default on the agreement.



In 2005, Hurricane Katrina drowned New Orleans but that didn’t stop Benson from wanting his money when he returned in 2006. Louisiana continued paying and Benson because of Katrina ended up with over $200 million worth of renovations Superdome. In all, Benson got his money and a better facility but that did not mean Benson was committed to stay in New Orleans once the subsidies ran out in 2010.



Benson will get one more check from the 2001 deal in July for $23.5 million.



Benson and Louisiana officials signed a new 17-year agreement in 2009 that capped the outright cash subsidies to six million dollars annually over the life of the deal after 2010 and included a promise to continue renovating the Superdome with $85 million of subsidies. Additionally, Benson said he would buy the empty Dominion Tower near the Superdome and that Louisiana would lease space in the building. The deal would be worth $100 million for rental over 15 years for Benson. The Saints owner can also develop an entertainment district around the Superdome.



Louisiana taxpayers are one of Benson’s biggest partners and in a league with CBS, NBC, FOX, ESPN and DirecTV which pays Benson a huge sum of money annually. Because Louisiana citizens are so giving, the NFL rewarded New Orleans with the 2013 Super Bowl after dropping the city from the Super Bowl rotation before Katrina.



The Irsay family has also been blessed with willing government partners. Jim Irsay’s father Robert bought the Los Angeles Rams in 1972 and traded the franchise to Baltimore owner Carroll Rosenbloom in what can best be described as a tax deal. Irsay didn’t seem too impressed with Baltimore’s Memorial Stadium and started looking for a better deal. Irsay checked out Phoenix and Indianapolis and in 1980 struck up a conversation with the Los Angeles Coliseum Commission about relocated the Colts after Rosenbloom moved his Rams to Anaheim. He also looked at Memphis and Jacksonville. On March 29, 1984, Irsay moved his Colts to Indianapolis in the dead of night during a snowstorm because he feared Baltmore seize the team through eminent domain.



Indianapolis put cash on the barrelhead (the usual NFL currency) for Irsay by giving him a $12 million loan and promising him a $4 million training camp site along with a brand new stadium loaded with revenue generating gadgets. Irsay was happy in Indianapolis but when his son Jim took over, the Irsay gene that produced wanderlust in Bob hit Jim and the once lucrative Hoosier Dome lease was outdated and Irsay wanted a new stadium or was going to look outside of Indianapolis to get it.



Eventually Irsay got his wish, a new stadium funded by various taxes with Irsay throwing in $100 million of the estimated $720 million facility costs. To pay for the stadium, Marion County raised taxes on food and beverage sales, auto excise taxes, innkeeper's taxes and admission taxes. There was also an increase in food and beverage taxes in some surrounding counties and a tax hike the on Indiana's Colts license plates.



Irsay is not paying much rent and is keeping a large share of the new stadium’s generated revenues which he can do under federal law. Irsay is getting $6 million a year from Lucas Oil for naming rights and paying just $250,000 in annual rent. No wonder he can make Peyton Manning the highest paid player in the NFL. Meanwhile Indianapolis’s Capital Improvement Board cannot pay the anticipated operating costs of the new stadium. Jim Irsay who was in a hurry to get a new stadium has been rather slow in offering to help Indianapolis out of the money pit. He has a contract and a contract is a contract no matter what financial difficulties have befallen Indianapolis.



A Vince Lombardi Trophy is a nice piece of hardware but its worth is just $25,000 and that certainly is not enough to pay off any debt in Indianapolis or New Orleans that was incurred because those cities craved an NFL team.



evanjweiner@yahoo.com

Thursday, February 4, 2010

Who Dat Who is Protecting Dat Saints Logo?

http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m2d4-Who-Dat-who-is-protecting-Dat-Saints-logo


Who Dat Who is Protecting Dat Saints Logo?



By Evan Weiner

February 4, 2010

(New York, N. Y.) -- About 22 or 23 years ago, then Major League Baseball Commissioner Peter Ueberroth held court one spring day at the Helmsley Palace in midtown Manhattan. Ueberroth’s marketing department had just struck a multimillion dollar partnership agreement with a Japanese film company and Ueberroth was talking as we was waiting for everyone who was going to be involved in the formal announcement to arrive for the news conference.

Ueberroth posed a question and the answer to that question is the reason the National Football League decided to go after Who Dat t-shirts and other products with the words Who Dat accompanied by the New Orleans Saints fleur-de-lis logo within the last week.

Ueberroth asked a very simple question. What is the most valuable possession that a league or a franchise has? The answer was not players, coaches, managers, TV-radio contracts or fans. Ueberroth quickly answered the question.

It is the logo and Ueberroth added that a league or a franchise has to do everything in the league or franchise’s power to protect the logo.

Under Ueberroth, Major League Baseball became very protective of not only the then 26 active franchises logos but also logos of defunct businesses like the Brooklyn Dodgers.

Walter O’Malley took his Brooklyn Dodgers to Los Angeles after the 1957 season but that didn’t mean the Brooklyn Dodgers name or logo disappeared. More than three decades after the O’Malley move Major League Baseball was in court suing the owner of the Brooklyn Dodger Sports Bar and Restaurant over the name Brooklyn Dodger. Major League Baseball lost the suit after a Manhattan judge ruled that O’Malley gave up exclusive rights to the name when he moved the team to Los Angeles.

One of the more interesting things that was brought up in that trial which took place in 1993 was just how valuable Major League Baseball logos became starting with the Ueberroth’s tenure. In 1986, Ueberroth’s second year as Major League Baseball Commissioner, MLB took in about $200 million licensing various Major League Baseball and Major League Baseball team logos. In 1991, that number rose to $2 billion.

Ueberroth certainly knew his business. The Los Angeles Dodgers lost the case because no one bothered to trademark the Brooklyn Dodger name. Sports executives followed the case and likely vowed never to allow anything that could be trademarked to not be trademarked.

There are certain trademarks that were never registered. The American Basketball Association’s red, white and blue basketball is probably sports most prominent symbol that was not trademarked. The National Hockey League did not buy the World Hockey Association’s logo in the 1979 “expansion” which was absorption of four WHA teams. The NHL probably felt there was no real money in keeping those logos around.

The NFL went after New Orleans vendors who were selling Who Dat t-shirts and alike with the New Orleans Saints logo after New Orleans won the National Football Conference championship. The NFL absorbed a lot of criticism for going after the vendors but the league was well within it right to tell the vendors cease and desist.

The t-shirts had the Saints logo which is a fleur-de-lis.

The NFL cannot stop anyone from printing up a t-shirt which has the words Who Dat on it. Who Dat is an old expression which may have had roots in 19th century minstrel shows. There was a Who Dat skit in the Marx Brothers 1937 movie A Day at the Races and one the Warner Brothers censored 11 cartoons, the 1943 Tin Alley Cats, features a Fats Waller-type cat who answers a question using a variation of who dat, wid dat. (The Cartoon is widely available on the net in decent quality.) The NFL is not going to sue Time Warner, the owners of Tin Alley Cats or whoever now owns the MGM A Day at the Races release.

The Saints logo was the problem for the vendors not the Who Dat phrase. It would be the same problem in New York if someone put out a blue shirt or a green shirt with the word fuggeddabotit with a Giants or Jets logo. The logo makes the difference.

The NFL Who Dat issue reached the governor’s office in Baton Rouge forcing Governor Bobby Jindal to ask Louisiana Attorney General Buddy Caldwell to look into whether or not the NFL was looking to declare that they owned the Who Dat phrase. The NFL has no claims on the fleur-de-lis either except for the Saints logo

The vendors can sell the Who Dat shirts and other items as long as the Saints and NFL trademarks are not on them.

The fleur-de-lis has been around for centuries on various coats of arms for kings and other royalty. The NFL would also have to sue Quebec if they were serious about claiming the fleur-de-lis. The Quebec blue and white flag has a fleur-de-lis. The Quebec Nordiques hockey team had a fleur-de-lis symbol on the bottom of a players shurt during the team’s years in the National Hockey League. The New Orleans Saints’ fleur-de-lis logo is gold with black trim.

The fleur-de-lis is Louisiana’s state symbol since 2008. The state colors are blue, white and gold. The Saints official colors are black and gold. There are no official Who Dat colors.

The NFL was correct in protecting the Saints logo. You see that little piece of art connected to a team or a league is worth a lot of money.

evanjweiner@yahoo.com

Wednesday, February 3, 2010

Is Super Bowl XLIV going to be Miami’s Super Bowl swan song?

http://dailycaller.com/2010/02/03/is-super-bowl-xliv-going-to-be-miami%e2%80%99s-super-bowl-swan-song/


Is Super Bowl XLIV going to be Miami’s Super Bowl swan song?
By Evan Weiner - The Daily Caller

The Miami area is the epicenter of the National Football League’s world until Monday, as the Pro Bowl has already taken place and the Super Bowl will be played at whatever company has paid for the naming rights at Joe Robbie Stadium. But will the Miami area remain a post-season NFL hub? Commissioner Roger Goodell has made clear that for Miami to remain in the Super Bowl rotation, significant upgrades need to be made to the stadium.

That is not good news for those in the Miami area who think that the Super Bowl is a massive economic boost for the host market. Goodell’s December announcement came about two years after some $250 million worth of improvements were made at what was called Dolphin Stadium. But the 22-year-old facility’s facelift was just a temporary fix, and the building still cannot compete with younger and more beautiful models in Arlington and Indianapolis, two stadiums that will host upcoming Super Bowls.

The old stadium has lighting problems and lower level seats are too far from the field. If there is a renovation, the stadium will get some sort of roof and other upgrades that would make it a Super Bowl contender again.

No one knows how much the upgrades will cost, but Dolphins ownership doesn’t seem too keen on paying for the improvements.

The February 7 Super Bowl will be the 10th time the Miami-area has hosted the big game, but there may not be an 11th unless Dolphins owner Stephen Ross, along with area business people and elected officials, knuckle under to Goodell’s (and NFL owners) wishes. Just ask business leaders in New Orleans, a former NFL Super Bowl favorite stop, Los Angeles and San Diego. The NFL dropped those cities from the Super Bowl rotation because the Louisiana Superdome, any Los Angeles area stadium and the San Diego facility were not up to state-of-the-art standards.

New Orleans hosted the big game nine times, the Los Angeles-area was a seven-time host and San Diego had the game three times. New Orleans got back in the rotation because of the massive renovations at the Superdome following Hurricane Katrina in 2005 and will host the big game in 2013.

Goodell’s warning has caught the attention of the Chairman of the South Florida Super Bowl Host Committee Rodney Barreto, who told local media that using public dollars “needs to be debated and needs to be on the table,” adding, “Given the economy, hosting Pro Bowls and Super Bowls are fantastic. These are big money generators for the community.”

At least Barreto isn’t using the hosting of the Super Bowl as a chance to promote Miami to corporate CEOs as a possible place to shift all or part of their business operations to the area. In the lead up to the 2005 game, Jacksonville, Florida civic leaders hoped that corporate leaders would fall in love and move businesses to the northern Florida city.

South Florida Super Bowl proponents claim the 2007 Miami area Super Bowl brought in $463 million. It is a figure that is hard to quantify and more than likely highly over-inflated.

Barreto’s statement is at odds with those of a good many economists, including Andrew Zimbalist of Smith College.

South Florida in January and December is loaded with tourists, as are other Super Bowl stops such as Tampa and Glendale, Arizona. Because of how many people flock annually to Miami for non-Super Bowl reasons, Barreto’s assertion that the Pro Bowl and Super Bowl are big money makers needs some serious scrutiny.

Barreto has forgotten or wants to ignore something called the economic displacement theory.

Miami perennially gets snowbirds seeking refuge from the cold, harsh winters of the Northeast and Midwest who rent hotel and motel rooms, use local restaurants, rent cars and spend money in the Miami vicinity. The snowbirds are reliable clients.

“The displacement theory applies particularly in Miami,” said Zimbalist, who is a world-class sports economic expert. “You have fisherperople, tennis and golfers participants, sun lovers and businesses who go to Florida. They are displaced by (those going to the Super Bowl). Academic economists have found very little affect on the economy. Hotel occupancy doesn’t go up. Hotel rates do go up, but they are not hiring more people and the extra money goes back to the home office as the money does not go back to the local community.”

Sports leagues often overstate an event’s economic impact and that seems especially true in the Miami area. The Super Bowl would more likely have an economic impact on places not usually thought of as tourist destinations in the winter months such as Detroit, Michigan and Minneapolis, Minnesota.


evanjweiner@yahoo.com

Saturday, January 30, 2010

Redstone and CBS Back in a Political Tug of War at the Super Bowl

http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m1d30-Redstone-and-CBS-back-in-a-political-tug-of-war-at-the-Super-Bowl#

Redstone and CBS Back in a Political Tug of War at the Super Bowl

By Evan Weiner

January 30, 2010

(New York, N. Y.) --- Perhaps Sumner Redstone should just say no to the Super Bowl because it seems Redstone’s CBS television network is always involved in some controversy in the presentation of the Super Bowl. Redstone’s CBS is making news because the network has accepted money from a group that plans to air an anti-abortion commercial during next week’s game but at the same time has rejected an ad from ManCrunch, a gay dating website.

Redstone’s network released a statement explaining why CBS will not show the ad during the Super Bowl.

"After reviewing the ad - which is entirely commercial in nature - our Standards and Practices department decided not to accept this particular spot. As always, we are open to working with the client on alternative submissions," according to the CBS publicity department.

Too bad Redstone’s Standards and Practices department doesn’t review the Redstone-owned MTV show Jersey Shore or some of the other MTV shows that are loaded with sexual innuendos including promoting lesbianism. Redstone bowed to pressure from someone in rejecting the ManCrunch ad but Redstone, CBS President Les Moonvees and the rest of the CBS upper management has no problem with the Focus on the Family, Celebrate Family, Celebrate Life spot featuring college quarterback and Heisman Trophy winner Tim Tebow.

Redstone’s CBS network enjoys a much higher profile than his ratings challenged MTV. Redstone apparently doesn’t care that the New Jersey Italian American Legislative Caucus asked his Viacom company to take Jersey Shore off the air. In a letter to Redstone and Viacom, caucus chairman Joseph Vitale said the show is "wildly offensive."

Jersey Shore is just a cable TV show, nothing more, nothing less on a network that produces minimal ratings. The Super Bowl is American television’s biggest event and Redstone is going to get protests from various groups over his or someone at CBS decisions to air one spot and decline another spot.

Redstone and CBS may have made their commercial decisions with the 2004 Super Bowl in mind. Redstone and CBS had the television rights to the game and Redstone’s MTV cable network produced the halftime show.

The Super Bowl XXXVIII did not start well for political activitists as CBS rejected an ad from the political group, MoveOn.org called “Bush in 30 seconds” under a network policy that apparently dated back to when William Paley owned the network “controversial issues of public importance.”

No one seems to remember that New England beat Carolina in that game but people do remember that the singer Janet Jackson’s breast popped out of her clothes due to what fellow singer Justin Timberlake called a wardrobe malfunction during halftime of that game.

Jackson’s “wardrobe malfunction” lasted scant seconds but it set off a political firestorm even though very few people actually witnessed the event live on TV and it wasn’t until people who TiVo’ed the show and got a glimpse of the “wardrobe malfunction.” The MTV produced halftime show also featured the singer Nelly gesturing towards his crotch and the singer Kid Rock wearing a poncho made from an American flag. There were also a number of strange commercials during the presentation including a guaranteed a cure for erectile dysfunction, and two beer commercials, one of which featured a horse that suffered from flatulence and another that had a dog attacking male genitalia.

Immediately Republican members of Congress jumped into the halftime show “costume malfunction” and some House members stood on the steps in front of the Capitol criticized CBS and the NFL the morning after. Zell Miller, a Democrat from Georgia, took to the Senate floor and took aim at the halftime show saying something about how the “wardrobe malfunction” was a sign or declining morality in America. Political groups seized the incident to gain exposure and the Federal Communications Commission levied a $550,000 fine against Redstone, CBS and 20 TV stations because of the halftime show. FCC fines would rise as a result of the incident from $27,500 to $325,000 per incident.

In Canada, where Global TV used the CBS feed, there were a few complaints but the CTRC let the matter go. The game was televised globally and the “costume malfunction” seemed not to be a problem.

There were other ramifications from the Jackson “costume malfunction.” The NFL decided the halftime show needed a change and “safe” acts were hired beginning in 2005. Those acts included the Beatles Paul McCartney who spent nine days in jail in Japan for possessing marijuana, the Rolling Stones, a group that featured Keith Richards who was busted on a heroin charge in Canada in 1977 and this year, The Who, a group who had two members die of apparent drug use, Keith Moon and John Entwhistle will perform.

MTV was fired as the halftime producer.

Additionally, the NFL dropped Levitra as the league’s erectile dysfunction advertising partner in 2007 and Anheuser-Busch promised it would never make commercial that featured a horse suffering from flatulence or a dog nipping at a male’s crouch or similar commercials ever again.

Television (and radio) also took steps to clean up shows. In 2005, the National Basketball Association suggested to the singer Beyonce Knowles to sing Crazy in Love rather than Naughty Girl at the NBA All-Star Game. Live programming was put on a delay just in case something went awry. The halftime show also impacted network TV soap operas, and award shows such as the Grammy’s and the Academy Awards. Sixty-five ABC TV stations were so concerned about the newly found “indecency” issue that they refused to show the networks presentation of the moving “Saving Private Ryan” because on Valentine’s Day 2004 because of the film’s violence.

Over-the-air TV and radio are subjected to FCC laws, cable TV is not. The American public owes the airwaves, Redstone is merely a steward who oversees a network and network owned and operated TV stations in New York, Los Angeles, Chicago, Philadelphia and other cities.

The halftime incident became a political campaign issue. Jackson and Timberlake are still big names in the music industry globally even though they set off a political firestorm in 2004.

Redstone and CBS are still fighting the FCC fines.

The Super Bowl has been sanitized as much as possible because of a less than three second incident in 2004. Redstone and CBS will now face a maelstrom of protests from the left because of their decisions to say yes to Focus on the Family’s spot and no to ManCrunch.

The Super Bowl, which was born in Senate and House chambers in the summer and fall of 1966 as the result of Congress giving the go ahead to the merger of the National Football League and the American Football League, is a potent political force. Arizona now celebrates Martin Luther King Day because the NFL wanted to put the Big Game in Tempe and was forced to pull it from Tempe in 1993 after Arizona refused to recognize the day. The NFL awarded Tempe the game in 1996 after Arizona voters said yes to making Martin Luther King Day a state holiday. The NFL rewards cities that build stadiums with a Super Bowl and the 2004 game changed TV.

Redstone and CBS had the 2004 game and they have it this year and the Redstone and the CBS commercial decisions have ignited political debate. Welcome back to the Super Bowl Sumner Redstone, Les Moonvees and CBS.

evanjweiner@yahoo.com

Wednesday, January 27, 2010

The 18 percent solution won't fly

The 18 percent solution won't fly


http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m1d27-The-18-percent-solution-wont-fly#

By Evan Weiner

January 27, 2010

(New York, N. Y.) -- Peter King has been around the National Football League as a reporter for a long time so there should not be any reason to doubt his January 18, 2010 CNNSI.com column which stated that National Football League Players Association Executive Director DeMaurice Smith sent out an e-mail to his players that ownership wants to cut players compensation 18 percent and that a management source confirmed the figure. The 18 percent figure has not filtered down to the teams yet but it sounded about right according to one NFL person who is not involved in the day-to-day talks. Not every owner is filled in daily on the bargaining, which is a normal business standard.

The owners and players have about 13 months until the present collective bargaining agreement ends and it is highly unlikely that the players would even consider an 18 percent pay decrease but this is the starting point in the negotiations.

The owners want change, the players want status quo. Something will have to give or the National Football League owners will simply lockout the players sometime after February 28, 2011 and the work stoppage which ensue meaning that some or all of the 2011 NFL season will be canceled.

The players in some way are collateral damage in an on going fight between the high revenue teams and the low-end teams and economic realities. Before Dallas Cowboys owner Jerry Jones and the New York Giants/Jets ownership decided to build new stadiums, the high revenue owners like Dallas’ Jones, Washington’s Daniel Snyder, New England’s Robert Kraft, Houston’s Robert McNair and Philadelphia’s Jeffrey Lurie were arguing that the owners revenue sharing system needed to be changed and that Jones, Snyder, Kraft, McNair and Lurie among others should be keeping a lion’s share of locally produced revenue so they could use that money on their teams. Small market owners like Buffalo’s Ralph Wilson and Cincinnati’s Mike Brown reminded the big revenue guys that the National Football League was built on a sharing system that made sure the small market Green Bay Packers could compete (in the 1960s and beyond) with New York, Chicago and Los Angeles.

Wilson and Brown wanted to keep the revenue sharing rules in line with league financial history since the 1960s but times have changed. Wilson paid $25,000 for his American Football League franchise in 1960 and does not have the debt problems as other owners but his market, Buffalo, is one of the NFL’s smallest and his local revenue potential is limited compared to New York, Washington, New England, Philadelphia and Dallas. Brown’s Bengals cost was about $7.5 million in 1967 when the team joined the American Football League, presumably the franchise is in good financial shape in terms of debt but Cincinnati is another revenue limited market.

Brown’s Bengals have played in two publicly funded facilities; Wilson’s Bills also play in a facility that used a lot of taxpayers’ dollars for a renovation in the late 1990s. But Jones, Snyder, Kraft, McNair and Lurie have put up a lot of money to either buy the franchise or build new facilities and in some cases have had to put a lot of their own money into the new venues. Jones paid for about half of his new Cowboys Stadium (Arlington, Texas taxpayers have kicked in the other half through a sales tax hike) and one of Jones’ plans to help pay down the debt of the new place fell through. He was unable to sell naming rights to the stadium.

Snyder paid a bundle for the Redskins and while one magazine claims the team is the most valuable franchise in North American sports, Snyder still has to pay off the debt. Kraft used a lot of his own money to build his new Foxboro, Massachusetts stadium, Lanier paid well over $700 million for the Texans expansion franchise in 1999 although he got a taxpayers funded stadium and Lurie had to kick in money for his new Eagles stadium.

There will be more owners tales of woe in the future. The combination Mara/Tisch family-Woody Johnson new East Rutherford, New Jersey football palace is costing according to estimates at least $1.3 billion and while New Jersey is picking up infrastructure costs and given Mara/Tisch/Johnson all sorts of tax breaks and incentives, there is still a debt that needs to be paid and the new stadium naming rights are still up for sale.

The York family’s San Francisco 49ers franchise may be singing off of the same music sheet sometime this year. The Yorks would like to build a new football venue in Santa Clara, about 40 miles south from Candlestick Park in San Francisco and the plan is to get minimal taxpayers support for the facility.

The NFL and the Yorks have been in contact with the Raiders Al Davis about possibly being a partner in the venture to help the financial burden.

The 18 percent solution according to King’s column comes out to about a billion dollars in additional revenue for the owners.

There is one area that the owners and players probably can agree upon for cost reductions.

Entry-level contracts.

First round draft picks cost a lot of money and players like the New York Jets Vernon Gholston is a perfect example of where costs can be reduced. Gholston was the sixth overall pick in the 2008 NFL Draft. He signed a five-year contract for a reported $32.5 million and was guaranteed over $20 million. Gholston has been a bust so far but he will get his bonus money whether he is with the Jets or out of football.

The Raiders quarterback JaMarcus Russell was the top pick in the 2007 NFL Draft. Russell has done little in his career to justify the deal which reported was for six years and $68 million with a guarantee of $31.5 million.

The NFL and the NFLPA can negotiate a rookie wage and not worry about the consequences of harming a third party, in this case entry level players, because of labor laws. But veteran players would want the money shifted from the rookies to them.

The owners will have some leverage in the battle with the players. Rupert Murdoch’s News Corp (FOX), General Electric’s NBCUniversal, Sumner Redstone’s CBS, Disney’s ESPN and Liberty Media’s DirecTV (NFL Sunday Ticket) will continue paying the owners under the terms of their broadcast/cable/satellite agreements with the league whether the league locks out the players or not.

The NFL’s deals with News Corp, NBCUniversal and CBS end after the 2011 season. The TV deals bring in more than $3 billion annually for the 32 owners.

NFL players went on strike in 1987 but the NFL owners had a backup plan and offered replacement players contests. The games went on after the league shut down for a week. A number of top names including the New York Giants Lawrence Taylor, the San Francisco 49ers quarterback Joe Montana, the Dallas Cowboys defensive tackle Randy White along with Seattle Seahawks receiver (and future US Congressman) Steve Largent crossed the picket lines and the strike collapsed after four weeks. The NFLPA had no war chest to support the players, not learning any lessons from the 1981 Major League Baseball strike, the players and owners had a strike fund or insurance in that battle, or the 1982 NFL Players strike. The players picked up a little money in 1982 from two NFLPA “All-Star Games” in Washington and Los Angeles.

“In 1982, Ted Turner and Turner Broadcasting stepped forward and funded the strike games and put the two games on TBS which allowed the players to go forward. There was enough money raised at that time to field a mini season of 10 teams with the teams owned by the players had the strike continued. But the players voted against having their own league,” said Sheldon Saltman, the NLFPATV consultant who created and organized the two All-Star Games under the aegis of then NLFPA Executive Director Ed Garvey and former Redskins All-Pro defensive back Brig Owens.

After the players crumbled, the NFLPA decertified and the players led by New York Jets running back Freeman McNeil sued the NFL, challenging the league’s free agency rules. By 1993, the owners and players settled their disputes.

The game has changed though for the owners and players. Three prominent people are no longer at the negotiating table, Paul Tagliabue, the former NFL Commissioner who retired, the late Gene Upshaw, the executive director of the association and former Pittsburgh Steelers boss Dan Rooney who rode off into the sunset and is now the United States Ambassador to Ireland. Tagliabue and Upshaw had a very unique relationship that was unlike other league commissioners/negotiators and players associations’ executive directors in that they worked together in an amicable fashion and resolved differences and extended the 1993 agreement five times. The players trusted Rooney as a voice of reason.

The owners’ 18 percent solution is not going to fly this time around.


evanjweiner@yahoo.com

Sunday, January 24, 2010

Is Obama more important than Favre in the Minnesota Vikings future?

http://www.examiner.com/examiner/x-3926-Business-of-Sports-Examiner~y2010m1d24-Is-Obama-more-important-than-Favre-in-the-Minnesota-Vikings-future#


Is Obama more important than Favre in the Minnesota Vikings future?


By Evan Weiner

January 24, 2010

(New York, N. Y.) -- Will Brett Favre or Barack Obama, when all is said and done, be more important in both the short and long term future of Zygi Wilf’s Minnesota Vikings franchise? It is an intriguing question because Favre’s short term success with the Minneapolis-based team probably has no impact on the business of football and the business of football for Wilf and his predecessor Red McCombs (one of the people who owned the Clear Channel radio network in the halcyon days of that business that included among the stable of talent Rush Limbaugh, a carnival barker who stated publicly that he hoped Obama failed) whose goals is and were to get a new Vikings football stadium built.

So far, McCombs and now Wilf have struck out in their years of attempts in getting the Minnesota legislature to fund a football stadium project and what is more frustrating for both the Vikings ownership group and the National Football League is that the legislature has found more to build a new baseball park for the Twins in Minneapolis and a stadium for the University of Minnesota Golden Gophers football team.

The Golden Gophers new digs opened last fall.

The debt on the Twins park will be paid down by various taxes and some money from the Twins ownership. The park will open in the spring.

The Golden Gophers stadium is also taxpayers funded and students, whether they use the facility or not, have to pay a $25 fee as part of the legislature’s agreement to fund the stadium.

The Twins and Golden Gophers formerly played at the Hubert H. Humphrey Metrodome, a facility which caused about $68 million of taxpayers’ money to build. The stadium opened in 1982 and apparently no one was pleased with the facility as Twins and Vikings ownership spent years trying to get out of the building.

Wilf still has two years to go on his Metrodome lease.

On Friday, two days before the National Football League’s NFC Conference Championship game, Wilf’s representatives came out with a new stadium plan. The timing of the announcement may have been a coincidence as the Minnesota governing bodies start their session in two weeks but Wilf and the Vikings have sneaked a new play into the stadium playbook.

Use federal stimulus money as help build a suburban Minneapolis-St. Paul football facility. Apparently Wilf has heard from a number of developers who want in on the Viking stadium and the Vikings stadium-planning team has figured out that a two cent on a dollar rise on hospitality taxes, motel and hotel taxes and maybe car rentals, would be a good thing as that would hit tourists not the locals pocketbook, and the usage of Build America Bonds could help swing the financing. The there is the Recovery Act or the Obama stimulus plan.

The Recovery Act, which was passed by Congress in February 2009 and signed into law by President Obama on February 17 of that year, was a $787 billion plan to get the economy which broke in September 2008 moving. The Recovery Act was targeted at infrastructure development and enhancement. For instance, the Act plans investment in the domestic renewable energy industry and the weatherizing of 75 percent of federal buildings as well as more than one million private homes around the country.
Construction and repair of roads and bridges as well as scientific research and the expansion of broadband and wireless service are also included among the many projects that the Recovery Act will fund.
Apparently Wilf and the Vikings ownership feel that a stadium qualifies as part of infrastructure development and enhancement.

Whether a football stadium qualifies for the Obama stimulus plan is something that needs to be researched. Another problem that Wilf faces is that the Minnesota Governor Tim Pawlenty is a lame duck and is not running for re-election in the fall. Pawlenty, a Republican, has other ideas and may be running for President. Pawlenty is a critic of the Obama federal stimulus plan and that should make for an interesting time for Wilf knowing that Minnesota has a lame duck governor who seems more intent on running for President than working at his job which is at least look the Governor of the State of Minnesota.

The Minnesota legislature goes back to work on February 4, which is three days before the Super Bowl, a game that could feature Favre and the Vikings. In terms of being success on the field and whether that leads to politicians opening the coffers for sports teams to build new stadiums and arenas, there seems to be no linkage between the two. Bad teams also get new facilities.

Wilf’s real football season starts on February 4 as that is when he takes the field against Minnesota politicians with cash for a stadium on the line.


evanjweiner@yahoo

Saturday, January 23, 2010

How Hale Boggs saved the Saints (and football as we know it)

How Hale Boggs saved the Saints (and football as we know it)
By Evan Weiner 01/23/10 at 12:39 pm




If the New Orleans Saints football team wins the National Football Conference championship game on Sunday, one of the first people who should carry the George Halas Trophy is Cokie Roberts. Without Cokie’s father, the Louisiana Democrat Congressman Hale Boggs and Majority Whip of the House of Representatives in the mid-1960s, there probably would not be a New Orleans Saints franchise today.

The American Football League and the National Football League announced a merger plan on June 8, 1966, but the two entities could not become one without an anti-trust exemption from Congress. For those who think a sports league commissioner’s role is limited to just making sure the fans are happy and rooting for the home team, you’re about to get a lesson on political hardball.

A sports commissioner is a hardened political lobbyist and NFL Commissioner Pete Rozelle was an old hand on Capitol Hill by the summer of 1966.

In 1961, Rozelle lobbied the House and Brooklyn (NY) Democrat Emanuel Cellar in an attempt to win a limited antitrust exception so that the National Football League could sell the league’s 14 franchises as one entity to a television network.

The Sports Broadcast Act of 1961 was signed into law by President John F. Kennedy on September 30th of that year and allowed the NFL to bundle the 14 franchises and sell a package of games to a TV network (either CBS or NBC in those days). The law helped propel the NFL into a different economic orbit. The league went from a mom and pop store operation that was open about six months a year to a mega business because of the legislation, which put hundreds of thousands of dollars into every NFL owner’s pocket.

Neither the Louisiana Democrat Senator Russell Long, who was the Senate’s Majority Whip and Chairman of the Senate Financial Committee, nor Congressman Boggs were very excited about the planned football merger. Neither saw a merger benefiting New Orleans, as the city had neither an AFL nor an NFL team. New Orleans blew an opportunity at getting an AFL in December 1964 after being awarded the 1965 AFL All Star Game because a group of players and AFL owners had a social conscience.

Buffalo Bills Quarterback Jack Kemp (who was becoming very interested in politics and worked on Barry Goldwater’s 1964 Presidential campaign) and his white teammates witnessed their African-American friends, teammates and competitors being ignored at the New Orleans airport by taxis when they needed a ride to New Orleans and watched as their black teammates were barred from eating in New Orleans restaurants and staying from in the same hotels in December 1964 as they were in the Jim Crow Louisiana. There were 21 African American players who were selected to be play in the game.

The American Football League was looking to expand and decided that New Orleans would be a perfect fit for the five-year-old league. AFL owners were told by New Orleans officials not to worry about Jim Crow laws because President Johnson has signed the Civil Rights Act of 1964 on July 2nd. The AFL owners’ plans included a January 1965 All-Star game at Tulane Stadium and an announcement at the game that the league was going to put a team in the city.

Kemp, who was a co-founder of the American Football League Players Association in 1964, and the white All-Stars said they would support whatever decision the 21 African Americans made during their meeting, including the possible boycott of the 1965 AFL All Star Game.

Their decision was to boycott the game.

An outraged group of AFL players called Houston Oilers owner Bud Adams and said they were going to boycott the game. The eight AFL owners league moved the contest to Houston. The boycott ended the chance that New Orleans would get an AFL team.

Louisiana businessmen were pushing for a New Orleans franchise and saw an opening.

Rozelle spoke to Boggs and Long, asking for their support, but neither budged. Rozelle was not ready to hand out an expansion team, and the two Louisiana legislators were not ready to sign off on a merger bill. Originally there was a thought of moving some teams around to satisfy the Louisiana interests with the New York Jets franchise going to Los Angeles. Daniel Reeves would take his Los Angeles Rams franchise to San Diego and replace the Chargers. Barron Hilton then would take his Chargers to New Orleans. The Oakland Raiders would be moved to either Seattle or Portland. But Rozelle and other NFL officials went before Congressman Cellar’s Subcommittee on Antitrust and assured Cellar (who rammed through the Sports Broadcast Act of 1961 legislation through the House) that no teams would be moved because of the merger. But stadiums in the future would need to have more than a 50,000 seat capacity to house an NFL franchise.

Something had to give.

Rozelle and the NFL owners relented and worked out a deal with Boggs that included a placing a team in New Orleans. Congress approved the NFL-AFL merger by giving the two competitors an anti-trust exemption, which was added as a rider to an anti-inflation tax bill on October 21, 1966.

The NFL awarded its 16th franchise to New Orleans on November 1, 1966 on All Saints Day. One other thing about the merger, NFL owners, going back through history, always liked to collect money whenever they could on business deals which allowed teams from other leagues to join the NFL or when an NFL team decided to invade the New York or Washington market. NFL owners made some serious money on the merger.

The league pocketed an $8 million expansion fee from New Orleans owner John Mecom, which was split between the 15 NFL owners. Additionally, the New York Jets ownership paid $18 million to the New York Giants ownership, and the Oakland Raiders handed over $8 million to the San Francisco 49ers as both AFL teams “invaded” NFL territories. The AFL also agreed to pay the NFL the $7.5 million it received from the Cincinnati expansion fee in 1968.

“It was the right thing to do,” said AFL founder and Kansas City Chiefs owner Lamar Hunt years later. “It consolidated the sport. It assured the continuity of every team in both leagues. There were some teams that were pretty weak financially at that point. Some teams going out of business generally accompanied previous mergers in sports. We assured that every team would stay in business. We assured the addition of new teams in Cincinnati and New Orleans. It gave the public the Super Bowl. It also provided the teams and the league with a common draft, which provided for an equal dissemination of playing talent.”

Had the NFL and AFL not merged, Tex Schramm, the longtime Dallas Cowboy President and a chief architect of the merger along with Hunt, thinks pro football would not be the strong national presence that it is today. “I think football was on its way to self destruction with the two leagues,” said Schramm. “Both sides were spending themselves into bankruptcy and there were only four or five clubs that could remain really competitive…Teams were drafting players not on the basis on whether or not they could play, but whether they could be signed. Whenever that happens then your sport is in trouble and that’s the way we were headed then.”

Of the merger, Pete Rozelle said that at the time he was “surprised that the AFL was interested or that even [we] were interested because [we] were such bitter enemies. The war was going on and we were raiding players. Obviously the terms and conditions turned out to be favorable, particularly to teams that had to take in competitors in New York and San Francisco. History shows it is a good move, a costly one but it gave the league greater strength.”

Without Hale Boggs and Russell Long, there would have been no NFL team in New Orleans and no Super Bowl. That’s why Cokie Roberts should be handed the Halas Trophy if the hometown Saints emerge victorious on Sunday afternoon.