In the end, sports connect people. Whether in a heated game of driveway basketball or the Olympic final of the 100 meter dash, the competitive nature of humanity reveals itself in a compellingly beautiful way. In its ideal form, sports build communities of participants, fans and rivals. There are simple and absolute truths found on a scoreboard and a ticking clock often impossible to find in real life.
My greatest hope remains that sports and business find a way to intersect without compromising the purity of this ideal. I hope I have added to the discussion on several key issues in a meaningful and constructive manner. The discussion remains open and I look forward to a continued exploration regarding the undying bond between sports and business.
Sunday, March 29, 2009
Paying the Price
No sports blog would be complete without a healthy discussion regarding steroids. From strictly a business perspective, steroids tainted Major League Baseball and fans have to a large extent turned away from America’s pastime. Although recent record shattering moments should have increased baseball viewership substantially, the stain of the continuing steroid scandal makes viewership difficult for many fans.
The future does not look bright for the MLB. Earlier this year Alex Rodriguez, the man who almost saved baseball, admitted to using steroids during his stint with the Texas Rangers. The New York Yankees third baseman is on pace to beat the all-time home run record, a record unparalleled in its importance not only in the United States but worldwide. Had Alex Rodriguez played the game without steroids, he could have brought baseball back to its former glory.
But the truth remains that Alex Rodriguez along with too many others make a mockery out of the game every day. We live in a world in which arguably the all-time best hitter and pitcher, Barry Bonds and Roger Clemens, not only take steroids but are prosecuted by the government for their constant lies under oath.
Major League Baseball is quantitatively paying for its steroid transgressions. In 2008, Nielsen ratings reveal a consistent drop in television viewership all across the nation. This means less revenue for the MLB, teams, and eventually players. Not all players take steroids, not all teams encourage a culture in which playing well often means playing unfairly. However, the situation has gotten so out of hand that all of baseball must pay. Until professional baseball can clean up its act, consumers will continue to boycott its deceptive and deficient product, as they should.
For more information visit: http://www.bizofbaseball.com/index.php?option=com_content&view=article&id=2531:national-television-ratings-for-mlb-down-across-the-board-rsns-feel-hits-as-well&catid=57:television&Itemid=122
and
http://sportsillustrated.cnn.com/2008/magazine/03/11/steroids1/1.html
The future does not look bright for the MLB. Earlier this year Alex Rodriguez, the man who almost saved baseball, admitted to using steroids during his stint with the Texas Rangers. The New York Yankees third baseman is on pace to beat the all-time home run record, a record unparalleled in its importance not only in the United States but worldwide. Had Alex Rodriguez played the game without steroids, he could have brought baseball back to its former glory.
But the truth remains that Alex Rodriguez along with too many others make a mockery out of the game every day. We live in a world in which arguably the all-time best hitter and pitcher, Barry Bonds and Roger Clemens, not only take steroids but are prosecuted by the government for their constant lies under oath.
Major League Baseball is quantitatively paying for its steroid transgressions. In 2008, Nielsen ratings reveal a consistent drop in television viewership all across the nation. This means less revenue for the MLB, teams, and eventually players. Not all players take steroids, not all teams encourage a culture in which playing well often means playing unfairly. However, the situation has gotten so out of hand that all of baseball must pay. Until professional baseball can clean up its act, consumers will continue to boycott its deceptive and deficient product, as they should.
For more information visit: http://www.bizofbaseball.com/index.php?option=com_content&view=article&id=2531:national-television-ratings-for-mlb-down-across-the-board-rsns-feel-hits-as-well&catid=57:television&Itemid=122
and
http://sportsillustrated.cnn.com/2008/magazine/03/11/steroids1/1.html
Show Me the Money
Although the film Jerry Maguire stands as one of my all time favorite movies, its takeaway line unfortunately reveals so much about what sports agents and what players really want.
Show me the money.
Scott Boras stands as an instructive case study to illustrate this insatiable hunger for more and more money. The representative of extremely high caliber players including Manny Ramirez, Mark Teixeira, and most notably Alex Rodriguez, Scott Boras challenges the limits when it comes to player contracts. Boras constantly renegotiates contracts even if his representative’s production has improved only marginally. This often leaves teams without their star player, team owners furious, and fans unsatisfied.
I am realistic and I know that athletes don’t play professional sports solely for the love of the game. With the possibility of a career ending injury always a threat, paying players for their talents and entertainment value is perfectly reasonable. However, agents like Boras that demand ever increasing sums of money for a gain in commission stain the beauty of the game. Let the players play, let the fans watch, and leave the contracts alone. At the very least, agents like Boras should not encourage player holdouts that only hurt their teams and their consequent value as an entertainment entity. What these agents and players forget is that the fans still have an innocent love for the game, even if they might have dollar signs in their eyes.
For more information visit: http://articles.latimes.com/2008/nov/04/sports/sp-boras4?s=g&n=n&m=Broad&rd=www.google.com&tnid=1&sessid=5051d92f52395ad9a1226c7cc43f52919be3cb14&uuid=5051d92f52395ad9a1226c7cc43f52919be3cb14&pg=0&pgtp=article&eagi=&cat=sports&page_type=article&exci=2008_11_04_sports_sp-boras4
Show me the money.
Scott Boras stands as an instructive case study to illustrate this insatiable hunger for more and more money. The representative of extremely high caliber players including Manny Ramirez, Mark Teixeira, and most notably Alex Rodriguez, Scott Boras challenges the limits when it comes to player contracts. Boras constantly renegotiates contracts even if his representative’s production has improved only marginally. This often leaves teams without their star player, team owners furious, and fans unsatisfied.
I am realistic and I know that athletes don’t play professional sports solely for the love of the game. With the possibility of a career ending injury always a threat, paying players for their talents and entertainment value is perfectly reasonable. However, agents like Boras that demand ever increasing sums of money for a gain in commission stain the beauty of the game. Let the players play, let the fans watch, and leave the contracts alone. At the very least, agents like Boras should not encourage player holdouts that only hurt their teams and their consequent value as an entertainment entity. What these agents and players forget is that the fans still have an innocent love for the game, even if they might have dollar signs in their eyes.
For more information visit: http://articles.latimes.com/2008/nov/04/sports/sp-boras4?s=g&n=n&m=Broad&rd=www.google.com&tnid=1&sessid=5051d92f52395ad9a1226c7cc43f52919be3cb14&uuid=5051d92f52395ad9a1226c7cc43f52919be3cb14&pg=0&pgtp=article&eagi=&cat=sports&page_type=article&exci=2008_11_04_sports_sp-boras4
Keeping Up With Jones
Jerry Jones has been the face of the Dallas Cowboys for twenty years. When he bought this floundering franchise he was perhaps the most hated man in Texas. He fired a living legend, Tom Landry, and replaced him with an unproven college coach Jimmy Johnson. He traded the marvelous Herschel Walker at the peak of his career for future draft picks, much to the dismay of fans all across the lone star state.
Little did we know all those moves would change the Cowboys forever. Jimmy Johnson won repeat Super Bowls less than five years after being hired. Those draft picks that people despised became Emmitt Smith, Troy Aikman and Michael Irvin. The latter two have already been inducted into the Pro Football Hall of Fame and Smith will undoubtedly follow suit as he holds the career rushing record, one of the most hallowed record in sports. Jones has turned the Cowboys from 1-15 losers to the most valuable team (1.6 billion) in the most lucrative sports league in the world.
Later this year Jones will unveil his new $1 billion dollar stadium in Arlington, Texas. Along with Glorypark, this complex is the most expensive in the NFL and has already been chosen to host the 2011 Super Bowl. While the Cowboys have not been as effective on the gridiron in the past decade, Jones has continued to make staggering sums of money by making all the right moves, even if they seem controversial at first. Perhaps Jones meddles too deeply on football matters and takes away credibility from his current coach, Wade Phillips. However, his prowess as an owner and creativity as a business man make him extremely rare. As a die-hard Cowboys fan, I hope Jerry remains the owner of the Cowboys for as long as possible.
For more information visit: http://www.msnbc.msn.com/id/20763666/
Little did we know all those moves would change the Cowboys forever. Jimmy Johnson won repeat Super Bowls less than five years after being hired. Those draft picks that people despised became Emmitt Smith, Troy Aikman and Michael Irvin. The latter two have already been inducted into the Pro Football Hall of Fame and Smith will undoubtedly follow suit as he holds the career rushing record, one of the most hallowed record in sports. Jones has turned the Cowboys from 1-15 losers to the most valuable team (1.6 billion) in the most lucrative sports league in the world.
Later this year Jones will unveil his new $1 billion dollar stadium in Arlington, Texas. Along with Glorypark, this complex is the most expensive in the NFL and has already been chosen to host the 2011 Super Bowl. While the Cowboys have not been as effective on the gridiron in the past decade, Jones has continued to make staggering sums of money by making all the right moves, even if they seem controversial at first. Perhaps Jones meddles too deeply on football matters and takes away credibility from his current coach, Wade Phillips. However, his prowess as an owner and creativity as a business man make him extremely rare. As a die-hard Cowboys fan, I hope Jerry remains the owner of the Cowboys for as long as possible.
For more information visit: http://www.msnbc.msn.com/id/20763666/
Not Commodities at All...
Sports (more so I feel than any other sector of the entertainment industry) teach us that human beings are commodities to be sold and traded. Athlete are assets that, while they gain a generous salary, are used to make profit for a team and a league while the fan gets three hours of freedom from the worries and strife of day to day life.
This ugly set of circumstances is what bothers me most about the intersection between sports and business. While some athletes attain greatness and have a business legacy long after their playing days are done, the vast majority of professional athletes are nor superstars and many file for bankruptcy within five years of retirement. It’s understandable. Show me a 23 year with millions of dollars in disposable income and I’ll show you a young man in a position to make some very unwise decisions.
What if they tear an ACL? What if they are convicted of a crime? What if they just can’t play the way they used to? The athlete’s respective league does not care, there are countless kids waiting in line for their shot at the dream of becoming a superstar. Furthermore, the league has gained tremendous profit from the talents of these individuals, and what happens to them after retirement is not their business.
So once jersey sales have stalled, their contract runs out, and they can’t make payments on their house and cars, many of these athletes come back to a cycle of poverty they thought they had finally eluded. I can’t help but think that as young men these athletes were duped and that many end up alone and abused. We forget that these “commodities” are living breathing individuals with hopes and fears like the rest of us. I do not know what the solution might be. As fans, perhaps we could begin by recognizing that these individuals deserve our empathy, even if they just missed a layup.
For more information visit: http://sports.espn.go.com/espnmag/story?id=3469271
This ugly set of circumstances is what bothers me most about the intersection between sports and business. While some athletes attain greatness and have a business legacy long after their playing days are done, the vast majority of professional athletes are nor superstars and many file for bankruptcy within five years of retirement. It’s understandable. Show me a 23 year with millions of dollars in disposable income and I’ll show you a young man in a position to make some very unwise decisions.
What if they tear an ACL? What if they are convicted of a crime? What if they just can’t play the way they used to? The athlete’s respective league does not care, there are countless kids waiting in line for their shot at the dream of becoming a superstar. Furthermore, the league has gained tremendous profit from the talents of these individuals, and what happens to them after retirement is not their business.
So once jersey sales have stalled, their contract runs out, and they can’t make payments on their house and cars, many of these athletes come back to a cycle of poverty they thought they had finally eluded. I can’t help but think that as young men these athletes were duped and that many end up alone and abused. We forget that these “commodities” are living breathing individuals with hopes and fears like the rest of us. I do not know what the solution might be. As fans, perhaps we could begin by recognizing that these individuals deserve our empathy, even if they just missed a layup.
For more information visit: http://sports.espn.go.com/espnmag/story?id=3469271
Promises, Promises
As a freshman in college, I have quickly realized the true cost of college is far more deceptive than I thought. With books, meals and extra expenses that pile up throughout the semester, the cost of tuition and housing becomes far different than the cost of actual attendance. Many people think that the athletes recruited to Division I programs are virtually princes on campus with superfluous sums of money generously doled out by the NCAA. However, a recent study by the National College Players Association found that the shortfall between the cost of attendance and the “full scholarships” disbursed to Division I athletes can amount to a staggering $6,000 annually.
There are several problems with this scholarship shortfall. These universities lure kids to attend their programs, sometimes as young as 14 years old, promising a “full ride” that is nonexistent. In fact, the NCAA prohibits universities from disbursing scholarships that cover the full cost of attendance. Many of these kids are economically disadvantaged, and paying for the difference their scholarship does not cover puts a strain on their family that nobody anticipated. Furthermore, the talented play of these athletes is a main source of revenue for both their university and the NCAA; all the while the mounting credit card bills shatter guarantees of a free education.
I feel that the promises recruiters make to these talented young people and their families should be kept. These athletes not only create huge revenue for their respective schools, but are the sole reason that the NCAA exists in the first place. The NCAA is a business, and should compensate its labor, the athletes, fairly and without deception.
For more information visit: http://www.foxbusiness.com/story/study-scholarship-shortfall-numbers-reveal-college-athletes-pay-play-535079194/
There are several problems with this scholarship shortfall. These universities lure kids to attend their programs, sometimes as young as 14 years old, promising a “full ride” that is nonexistent. In fact, the NCAA prohibits universities from disbursing scholarships that cover the full cost of attendance. Many of these kids are economically disadvantaged, and paying for the difference their scholarship does not cover puts a strain on their family that nobody anticipated. Furthermore, the talented play of these athletes is a main source of revenue for both their university and the NCAA; all the while the mounting credit card bills shatter guarantees of a free education.
I feel that the promises recruiters make to these talented young people and their families should be kept. These athletes not only create huge revenue for their respective schools, but are the sole reason that the NCAA exists in the first place. The NCAA is a business, and should compensate its labor, the athletes, fairly and without deception.
For more information visit: http://www.foxbusiness.com/story/study-scholarship-shortfall-numbers-reveal-college-athletes-pay-play-535079194/
Thursday, March 26, 2009
A Longer Season Could Spell Bad News for the NFL
One of the most exciting moments of my life was when I attended my first Cowboys game. I was 8 years old and I can still remember the roar of the crowd in Texas Stadium; the silver and blue sea rising and falling at the whim of superheroes down below still brings a smile to my face.
Recently the NFL has toyed with the idea of extending the football season from 16 games to 20 games. The 8 year old fan in me would love this extension; however, it seems the NFL is merely seeking to add revenue with little consideration of its fans or its labor.
This season extension adds little value to the fans and is detrimental to the players. Already there exists a huge problem with meaningless games at the end of the season as teams start to bench players to avoid risking injury and a season extension would add to this problem. No fan wants to watch Peyton Manning's back up. Furthermore, already strained labor talks between the Player's Association and the NFL could be brought to a boiling point when the NFL must renegotiate contracts as as a result of increased risk of injury to players. This proposition could be the spark plug for every fan's worst nightmare-an NFL lockout in 2o11.
Nobody benefits from an extended season except the NFL. An extension would generate additional revenues from already existing network television contracts. Nevertheless, the products (the players) on the field are at higher risk of injury, the additional games bring little value to fans, and an entire season could be lost in 2011 as a result of this tension. Perhaps the NFL should not try to extend how many games there are if that is not the problem. Better relations with the Player's Association to bring the best games with the best talent to fans should be their focus, not short term increases in revenue from television contracts.
For more information visit: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/23/AR2009032303136.html
Recently the NFL has toyed with the idea of extending the football season from 16 games to 20 games. The 8 year old fan in me would love this extension; however, it seems the NFL is merely seeking to add revenue with little consideration of its fans or its labor.
This season extension adds little value to the fans and is detrimental to the players. Already there exists a huge problem with meaningless games at the end of the season as teams start to bench players to avoid risking injury and a season extension would add to this problem. No fan wants to watch Peyton Manning's back up. Furthermore, already strained labor talks between the Player's Association and the NFL could be brought to a boiling point when the NFL must renegotiate contracts as as a result of increased risk of injury to players. This proposition could be the spark plug for every fan's worst nightmare-an NFL lockout in 2o11.
Nobody benefits from an extended season except the NFL. An extension would generate additional revenues from already existing network television contracts. Nevertheless, the products (the players) on the field are at higher risk of injury, the additional games bring little value to fans, and an entire season could be lost in 2011 as a result of this tension. Perhaps the NFL should not try to extend how many games there are if that is not the problem. Better relations with the Player's Association to bring the best games with the best talent to fans should be their focus, not short term increases in revenue from television contracts.
For more information visit: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/23/AR2009032303136.html
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