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rickhorrow · 6 years ago

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10 To Watch : Mayors Edition 52019

RICK HORROW’S TOP 10 SPORTS/BIZ/TECH/PHILANTHROPY ISSUES FOR THE WEEK OF MAY 20 : MAYOR’S EDITION

With Jacob Aere

“Game of Thrones” may be over, but the legend of Brooks Koepka grows. On Sunday, Brooks Koepka hoisted the Wanamaker Trophy and waded even further into fantastical lore. Perhaps USA Today said it best, “For a man almost childishly alert to perceived slights off the course, he moves through the choppy waters of a major like a shark focused on real meals and uninterested in the chum bobbing along the way.” Koepka overcame four consecutive bogeys on his inward nine Sunday – he led by seven strokes as the final round got underway – to beat Dustin Johnson by two shots with a final-round 74. The defending PGA champion, Koepka won for the fourth time in the last eight major championships he has played. He is guaranteed the top spot in the world golf rankings. Sunday’s victory netted him a cool $1.98 million. More importantly, it may have finally cemented ultimate respect and big paydays with potential sponsors. Koepka’s current biggest deals are with Nike and Michelob Ultra, and he doesn’t have an equipment sponsor. Dollar signs behind an equipment deal just went up big time.

It’s graduation season, and we’d like to suggest a gift. Our Sport Business Handbook recognizes the last 50 years as the formative era of the modern sport business industry. As colleges and universities graduate their 2019 classes of aspiring career professionals, this is a rare opportunity to hear from some of the industry’s most influential players. Consider that according to Forbes and PriceWaterhouseCoopers, the U.S. Sports Industry will be an $80 billion annual category by 2022. Job growth across all sports-related industries is expanding at over 12 percent annually — more than double the national job market. In markets like Atlanta, Boston, Denver, Miami, Dallas, Jacksonville, Philadelphia, and Pittsburgh, sports-related job growth is increasing at or above 20% annually. The global sports industry is estimated to be a $1.3 trillion category. Sports media is the fastest-growing segment of the industry. As a subset of that, legalized sports gambling represents a multi-billion-dollar category poised to grow exponentially, as evidenced by casino and mobile sports betting legalized in Iowa last Monday. So if you have a child poised to join the workforce post college, they could do a lot worse than a career in sports.

The NCAA is opening the door for college athletes to be compensated for their names, images and likenesses. The Washington Post reported that the NCAA is examining how its rules can be modified to allow the change. Big East Commissioner Val Ackerman and Ohio State athletic director Gene Smith will head a new working group on the topic. “This group will bring together diverse opinions from the membership — from presidents and commissioners to student-athletes — that will examine the NCAA’s position on name, image and likeness benefits and potentially propose rule modifications tethered to education,” Ackerman said in a statement. In most scenarios, NCAA rules forbid its athletes from receiving benefits or compensation for their names, images and likenesses from either a school or a third party, including commercial contracts. While the working group will not consider any concepts that “could be construed as payment for participation in college sports,” the NCAA says that its mission is to “provide [an] opportunity for students to compete against other students [that] prohibits any contemplation of pay-for-play.” A final report is due to the NCAA’s board of governors in October.

The Indianapolis 500 will likely be the first time a CBD sponsorship will be featured during an official IndyCar race. The development comes after Arrow Schmidt Peterson Motorsports (ASPM) last Thursday announced a partnership with CBD-based sports drink Defy, according to the Indianapolis Star. The product’s name will appear on both James Hinchliffe’s No. 5 and Marcus Ericsson’s No. 7 entry. CBD has been legal in Indiana since March 2018, and the growing CBD industry has the "potential to become a new revenue source for teams." That comes amid plenty of examples of "drivers struggling to find sponsors," including Kyle Kaiser's No. 32 car from Juncos Racing. ASPM Team President Jon Flack said that fellow team sponsors, IndyCar and NBC were "all open to and approved the idea of allowing sponsorships that advertise products containing CBD." Interestingly, while THC level in Defy is allegedly well below the 0.3% allowed, IndyCar drivers can’t drink it because CBD is on the organization’s banned substance list. As the CBD market grows across the country, it is fair to wonder what sponsorship effect it will have on IndyCar.

Iowa Gov. Kim Reynolds signed legislation "allowing gambling on college and professional sports in Iowa," according to the Des Moines Register. The new legislation "allows Iowans 21 years and older to wager on sporting events at any of Iowa's 19 casinos and online if they visit a casino once in person to prove they are at least 21." It also "legalizes bets on fantasy sports through websites and apps like DraftKings and FanDuel." The law "does not allow in-game proposition bets on college sports." While the legislation "takes effect immediately, some of the rules still need to be ironed out." The Iowa Racing and Gaming Commission, which will regulate sports betting in Iowa, previously said that it would "start to develop rules for casinos to implement after Reynolds signed the legislation." Those rules "would likely be implemented in July or August," before college sports and NFL games start. Iowa is only the latest state to allow legal sports wagering, and with every state that signs on, the stakes – and the potential revenues – rise considerably.

U.S. Club Soccer, a prominent member of the U.S. Soccer Federation and the leading organization developing soccer clubs across America – welcomes Dick’s Sporting Goods as its Official Sporting Goods Partner. The strategic partnership provides U.S. Club Soccer members with a valuable resource for their soccer-related equipment and sporting goods needs. U.S. Club Soccer members will receive special discounts to Dick’s Sporting Goods stores throughout the country and online, while Dick’s Sporting Goods is presented to U.S. Club Soccer’s growing community of members through various digital, social, and on-site marketing efforts. US Club Soccer’s mission is to foster the growth and development of soccer clubs throughout the country to create the best possible development environment for players of all ages in every club. U.S. Club Soccer also prides itself on fostering the safest environment for players in youth sports – to whit, they’ve implemented best-in-class background checks for all registered staff, and require personnel to complete an online injury recognition course, as well as SafeSport online training.

The Oakland-Alameda County Coliseum, home to the Oakland A’s and Raiders, is set to become the Ring Central Coliseum. Belmont-based communications firm Ring Central has sealed a three-year, $3 million naming rights deal for the 56,000-seater stadium, including an option for a fourth year. Ring Central will assume a role last held by Overstock.com, which pulled out of its $1.45 million-a-year deal with the Coliseum after the Raiders announced plans in 2016 to relocate to Las Vegas. Oakland-Alameda County Coliseum will soon become RingCentral Coliseum, as the California-based business communications provider is buying the naming rights and will pay $1 million a year for the "next three years, with an option for a fourth year." As the stadium authority approved the deal, the "name change would go into effect immediately." Even though the Oakland pro sports universe is undergoing seismic change, as the Raiders prepare for their Vegas move and the Warriors head to San Francisco, its signature sports facility remains an attractive target for brands.

Trump tariffs will impact sports, and sports fans. $11.4 billion. That’s the total value of the footwear imported from China to the U.S. last year as reported by SportsBusiness Daily. About 72% of sneakers imported to the U.S. are from China. The publication quoted CNBC’s Sara Eisen, who said of how the ongoing trade dispute is affecting the shoe industry, “These companies have been diversifying but there’s no denying that a lot of sneakers are still made in China.” So-called “sneaker wars” have long played a seminal role in basketball, soccer, and increasingly, in lifestyle brands popular in the U.S. and elsewhere. This may seem inconsequential compared to the toll expected in other industries like agriculture and electronics. But a prolonged sneaker tariff will have a lingering effect on the athlete pipeline, as those footwear brands have long funded the tournaments young athletes compete in in order to catch the attention of the pro ranks.

ESPN partners with Caesars for sports betting shows. According to Bloomberg, Caesars Entertainment Corp will have its odds data and branding integrated with ESPN programs. ESPN will put a studio inside Caesars’ Linq Hotel & Casino in Las Vegas and build a new series of shows and videos aimed at the sports gambling market. The gaming corporation plans to contribute to programming on the ESPN network, ESPN’s website, and on the ESPN app. The sports betting content on ESPN’s betting-related content includes a few podcasts, segments on shows like “SportsCenter” and “Outside the Lines,” and a full sports gambling show called “Daily Wager,” which launched in March. Nearly a year after the U.S. Supreme Court ruling which federally legalized sports gambling, TV networks have jumped on the opportunity to boost their viewership through sports betting as many consumers use other devices and OTT platforms for entertainment.

LeBron James is partnering with Wal-Mart to "feed the hungry and inspire positive change in Akron and across the country." According to the Cleveland Plain Dealer, James will be part of the retailer's "Fight Hunger Spark Change" campaign, which "raises money through donations and the purchase of participating products." The effort to date has raised $74 million, providing 749 million meals, with a goal of 1 billion meals. Wal-Mart will "keep the pantry at James' I Promise School stocked with food, toiletries, clothing and basic necessities." James and Wal-Mart will "support each other's education programs" starting this summer with a Back to School campaign.

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