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rickhorrow · 6 years

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15 TO WATCH/5 SPORTS TECH/POWER OF SPORTS 5: RICK HORROW’S TOP SPORTS/BIZ/TECH/PHILANTHROPY ISSUES FOR THE WEEK OF MAY 21

with Jamie Swimmer & Jesse Leeds Grant

They started the season at 500-1 odds to win the Stanley Cup. Now, the Vegas Golden Knights have advanced to the championship, and the few people who took those long odds pre-season are looking at payouts of $10,020 for a $20 bet. After a 4-1 defeat of the Winnipeg Jets, the Golden Knights becomes the first expansion team in all of sports to reach the championship round since the St. Louis Blues did so in. Tickets to Vegas home games during the playoffs have been “among the most expensive, if not the priciest, on the resale market,” and with the expansion team now headed to the Stanley Cup Final, the market for games at T-Mobile Arena is “only heating up,” according to the Las Vegas Review-Journal. The average sale price on StubHub for Friday’s Game 4, "was $567." And even though sports books are bracing for a loss, the Golden Knights’ success has benefited them in other ways. Hockey betting is reportedly up 35% across the board, and the Golden Knights have also created a lot more casino traffic. If the Golden Knights triumph against either Tampa Bay or Washington, they will go down as one of the most unlikely champions in sports history.

On the heels of the Supreme Court’s decision to legalize sports betting in all 50 states, professional leagues have begun pitching legislation to states. According to the Providence Journal, MLB, NBA, and PGA Tour officials have already made their way to Rhode Island to speak to state lawmakers “for a cut of the action on sports betting should the state legalize it.” All three leagues proposed taking a 0.25% rights and integrity fee of all money bet on their respective sports in the state, which would surely account to tens, if not hundreds of millions of dollars over the years. The NFL has yet to pitch state legislatures on the issue, making it unclear how America’s preeminent sports league feels on the topic. The leagues also “want the state and its chosen gambling operator to share betting data with them and use their official statistics, which would be licensed, presumably at an additional cost.” Many believe that giving the leagues a cut of the revenue would help wipe out any misaligned incentives between the existing parties. The legalization of gambling is not only going to change how we view sports, it's also coinciding with a data revolution that will change the parameters of what we can bet on.

While other leagues such as the NBA and MLB have showed their eagerness to profit from the Supreme Court’s decision to legalize sports betting, the NFL is expected to “sit the whole integrity fee out, for now.” According to The MMQB, the NFL, America’s most popular sports league, noted its opposition to an integrity fee. Different estimates have been floated around how big these fees would be, but such fees could ultimately “wind up costing Nevada sports books, and later those in other states, around 15-20% of their annual revenue.” With the court decision, however, the NFL could relax its strict policies around teams partnering with casinos, which would likely be lucrative sponsorship opportunities. For the NFL and other leagues, the windfall of cash expected from the court’s decision should lead to a spike “in everything from TV ratings to franchise valuations” and beyond.

Pittsburgh Steelers investor David Tepper has agreed to purchase the Carolina Panthers for a record $2.275 billion. According to SportsBusiness Journal, $2.2 billion will be paid in cash by Tepper, with the final $75 million being deferred. There has been no indication yet of minority partners joining Tepper, nor has there been any signal as to what his plans are for Bank of America Stadium. The 5% share of the Steelers that Tepper initially bought in 2009 is worth $122.5 million now based on the team’s current valuation, though he will have to give up his stake as he takes control of the Panthers. Despite putting in a bid that was hundreds of millions of dollars less than South Carolina businessman Ben Navarro, Navarro was “unable to raise the estimated $2.6 billion he was said to have offered.” Tepper is unlikely to make any major organization changes. If you think these numbers are crazy talk, keep in mind that in 2014 Business Insider pegged the NFL’s total value at $45.7 billion – more than MLB and the NBA combined.

As the Indianapolis 500 readies for its annual Memorial Day Weekend run, IndyCar veterans believe the current crop of young drivers will make a lasting impact. Chip Ganassi Racing Managing Director Mike Hull told the Associated Press, "We've got good, quality guys under 25 and now they're driving for owners who hopefully will stick with them…I think the crop you're talking about is the crop we've needed for a long, long time but we didn't have the stability to do that. Now, we do." IndyCar President of Competition and Operations Jay Frye called this young group "'advanced' in terms of their experience and business savvy." Andretti Autosport driver Zach Veach, 23, sponsored by Group One Thousand One, "looks like the perfect guy for IndyCar's youth movement." He has a "full-time ride with one of the series' top teams, stable sponsorship and what appears to be a bright future." If Veach succeeds, he could "emerge as a cornerstone for the next generation of stars." It is possible more than 20% of this year's Indy 500 starters could be younger than 25, including Veach, Gabby Chaves (24), Ed Jones (23), Sage Karam (23), and Kyle Kaiser (22). Another quality group will assemble at Indianapolis Motor Speedway on Friday, as Horrow Sports Ventures alongside IMS and Octagon convenes a symposium of Indy’s top sports minds: Colts COO Pete Ward, Pacers Vice Chairman Jim Morris, IndyCar CEO Mark Miles, and Group One Thousand One CEO Dan Towriss.

As the industry continues to react to the Supreme Court decision, Legal Sports Report has reported that Irish bookmaker Paddy Power Betfair is close to acquiring FanDuel. Little is known about the deal’s terms, but the price point appears to be less that the $1 billion valuation that the company held in mid 2015. PPB acquired FanDuel competitor DRAFT for around $50 million in May 2017, so should the deal go through, the company would own the 2nd and 3rd most popular DFS apps. FanDuel CEO Matt King indicated earlier this month, that his company would “get into sports betting” if the courts voted in New Jersey’s favor. Paddy Power Betfair isn’t collecting DFS companies for sport – FanDuel has a database that contains 6 million DFS users (many inactive), and PPB believes they’ll be able to convert many of those individuals into sports bettors. The FanDuel brand also brings PPB some value, as the popular U.K. gaming operator lacks U.S. name recognition; though it does own California based horseracing betting business and digital broadcaster TVG and the NJ online gaming site Betfair Casino. FanDuel raised $430 million in venture funding, but has struggled to raise additional capital since the third quarter of 2015, so investors were pushing to either pursue a sale or public offering.

Justify won the Preakness on Saturday, despite rain, mud, fog, and threats of moving the iconic race. The second leg of horse racing’s Triple Crown was marred by a cloud of fog that defied Pimlico Race Course’s old technology. Throw in the “effects of such a heavy deluge on the aging grandstand and it’s no wonder,” the Baltimore Sun noted, that Stronach Group COO Tim Ritvo “couldn’t hide his impatience with the facility.” Ritvo “left the distinct impression that barring some dramatic infusion of local government funding to renovate Pimlico, Maryland’s signature sporting event is headed for Laurel Park.” An “announced 134,487 came to Pimlico, ending a four-year rise in Preakness Day attendance.” Attendance was down 4.2% from last year’s record, but was still the third largest in the event’s 143-year history. The total Preakness handle was $93.66 million, also falling short of last year’s record mark of $97.168 million. Now, all eyes are on Justify and the June 9 Belmont Stakes in New York. While the long drought of Triple Crown winners was broken not that long ago – by the beloved American Pharaoh in 2015 – don’t be surprised if Justify, now 5 for 5, adds his name to that rarified equine list.

In the wake of Friday's school shooting at Santa Fe High School near Houston, Texans star J.J. Watt told school officials that he will "pay for the funerals of the victims who died," according to the Houston Chronicle. Houston Rockets CEO Tad Brown has also confirmed that Owner Tilman Fertitta and the Rockets organization are "discussing plans to support the victims and families" of the school shooting at Warriors-Rockets Game 5 on Thursday and "in the community.” Rockets guard Chris Paul on Friday reacted to the school shooting, saying, "It's scary that that's become the norm here, and we've got to do something about it.” And the Houston Astros before Friday’s home game against the Indians "held a moment of silence" and "flew the Texas state flag at half-staff" to honor the school shooting victims. While this is yet another example of the healing power of sports and the ability of individuals like Watt and organizations to shine in the face of both natural and human-driven tragedies, it is also another opportunity for athletes and teams to use their influence to drive societal change.

FIFA is forging ahead with its plan to organize a new 24-team Club World Cup. According to the London Times, the first tournament is being planned to take place in June 2021, with China already expressing an interest in being the first host nation for the event. Participating clubs could earn more than $135 million each from the tournament. With 12 European teams planned to enter the field, FIFA has noted its preference for inviting clubs that have won at least three Champions League or European Cups to the first Club World Cup. Based on that criteria, Liverpool, Manchester United, Real Madrid, Barcelona, AC Milan, Bayern Munich, Ajax, and Inter Milan would all be included automatically, while Juventus would “also be invited on the basis of having won two European Cups and two intercontinental titles.” FIFA seems to be well on its way toward yet another successful extension of its brand.

10.Derek Jeter taking control of the Miami Marlins has seemingly done little to pique fan interest in Southern Florida. According to the Associated Press, through mid-May, the Marlins have averaged the fewest fans per game in Major League Baseball, drawing an average of 10,676 fans per home game at Marlins Park – that number is more than 4,000 fewer that what the Tampa Bay Rays attract per game. Since changing the way they report attendance figures – instead of counting all tickets distributed, including giveaways and heavily discounted ones, the club announces tickets sold – the Marlins have reported four crowds of less than 6,000 at a stadium that has a capacity of 36,742. “We’ve gotten a positive reception with what we’re trying to do,” said Jeter. “But the bottom line is, we want more people to come. We’re not happy with the number of people in here. A lot of that goes with how we perform.” While winning helps, some Bill Veeck-inspired promotions and/or slashing concession prices a la Atlanta Falcons might nudge away the franchise’s summertime blues.

Two of the country’s most storied college football programs will meet for a home-and-home series when the University of Alabama and the University of Texas face off in 2022 and 2023. According to USA Today, the announcement of the series has caused a lot of excitement across the country for all college football fans, hoping that this “signals a trend.” This pairing now joins a list of marquee non-conference matchups like Ohio State-Oklahoma, Texas-USC, Texas-Notre Dame, Georgia-Clemson, Clemson-Auburn and Auburn-Penn State. The 2022 game between UT and Alabama will be the 10th meeting between the two schools, but the first since Alabama beat Texas in the 2009 BCS National Championship Game. Despite a lack of on-field success over the past few years, Texas currently has the second-most wins in college football with 898 all-time, while Alabama sits in fifth with 891. UT had to rework its schedule a bit to make this work, including cancelling a home game with UCF that was scheduled for 2023. But Bama is Bama.

12.English soccer club Chelsea just signed the most lucrative sleeve sponsorship contract in the EPL, coming out to nearly $70 million over five years. According to the London Times, South Korean car manufacturer Hyundai is set to pay $13.54 million beginning next season. The new sleeve sponsorship for the club is worth double the annual amount of EPL champion Manchester City’s deal with Nexen Tire and will “set the new benchmark for such deals, with Arsenal and Manchester United in the process of negotiating their sleeve partnerships for next season.” The EPL only began permitting this new type of on-jersey sponsorship this past season, meaning that most clubs are still working to strike their first sleeve deal. This year, Chelsea had a one-year contract with Alliance Tyres, a subsidiary of the club’s main kit sponsor Yokohama Tyres, “which has two years left on its five-year deal worth $271 million.” Clearly, the EPL kicked the tires on this sponsorship model and declared it sound.

As Calgary is pushing to finalize its bid for the 2026 Winter Olympics, complaints coming from key organizers cite the bid’s underfunding. According to the Calgary Herald, of the $30 million in funds assembled by the municipal, provincial, and federal governments for the Olympic bid corporation, $5.2 million has already been spent. “We are under-resourced, significantly under-resourced,” said Calgary City Manager Jeff Fielding. In addition to the lack of funding, the work of the bid’s organizing committee, including 32 consultants who have been hired by the city at different times to assist, has been challenged by “new information coming in almost hourly.” As the group races to make key deadlines on the Olympic file, including the completion of a draft budget with forecasted capital and operational costs for hosting the Winter Games, other bid groups competing for the right to host have enjoyed an easier path. Sapporo, Japan; Sion, Switzerland; and Stockholm, Sweden, are all vying with Calgary to win the 2026 Games. But the IOC may once again announce multiple winners simultaneously, with the “loser” getting the Games in 2030.

Changes in MLS' salary structure have made the league "more attractive to young foreign stars and older U.S. players alike, resulting in deeper rosters, more exciting games, and a level of play rapidly approaching that of Mexico's Liga MX," according to the Los Angeles Times. LAFC Executive VP, Soccer Operations John Thorrington said, "Look at the on-field product week in and week out and MLS is in a very different place. The types of players that are coming have a lot to do with that." The MLS Players Union released the first 2018 survey of player salaries, which "showed the number of millionaires in the league increased to 46 from 28" in 2017, while the guaranteed salary total for the league's 669 players topped $249 million for the first time. Houston Dynamo Senior Vice President and General Manager Matt Jordan told the Houston Chronicle, "There's a lot of top players who have the choice to go to China and make a ton of money. (But) It's a totally different culture, it's a totally different lifestyle…The one advantage we have in the MLS is that it's a very stable league, it's a very organized league -- very professional -- and it's growing.” You only have to look at the influence of MLS players such as the LA Galaxy’s Zlatan Ibrahimovic to understand the impact young foreign stars are having on the American game.

Los Angeles Football Club (LAFC) have announced a three-year partnership with the Francis Ford Coppola winery. Under the terms of the deal, the Californian vintner will serve as the official wine partner of the MLS newcomer. Francis Ford Coppola will supply LAFC’s Banc of California Stadium with its Sofia and Diamond Collection wines. The partnership will include pre-game “tailgate” events in the LAFC fan zone with a Francis Ford Coppola branded bar. Future integrations will include interactive moments within LAFC’s app, animated videoboard celebrations in the stadium, and short-form content highlighting players and the Coppola winery. Francis Ford Coppola said: “There is nothing like a live event. In a world of pre-recorded experiences, there’s a certain thrill to being in a stadium watching a game. Los Angeles is a city dear to my heart and I’m glad we’re a part of the much anticipated opening of LAFC’s Banc of California Stadium.” LAFC is rapidly gaining ground on the Galaxy in the hearts and minds of Los Angeles soccer fans, and the marquee deal with Coppola only adds more star power.

Tech Top 5

Facial-recognition app could pull Olympian profiles from TV to phone. A facial-recognition app developed for a Japanese university student competition that can immediately access athlete profiles has caught the attention of Tokyo’s 2020 Olympic Committee. Eisuke Sugitani, a junior at Doshisha University in Kyoto, developed the idea that would allow users to direct their smartphones at a TV and instantly receive biographical information back. Sugitani, who is interested in how sports and technology can be linked, wanted to create something that could be used easily, after giving thought to the behavioral tendencies of young people like himself. Another idea he has is to display sports videos on the internet that are sorted by artificial intelligence on the basis of one’s search history. Tokyo’s organizing committee has begun looking into making the student’s winning idea a reality. Takeshi Tachi, head of the committee’s Technology Services Bureau, said the app would likely be useful because even people who are unaccustomed to conducting internet searches could use it, giving it a versatility that would appeal to many generations.

FOX partners with Intel, Ericsson to deliver 4K at the U.S. Open. FOX Sports, in cooperation with the FOX Innovation Lab and partners Ericsson, Intel, and AT&T, will use 5G technology to stream 4K video over 5G for potential broadcast nationwide at this year’s 118th U.S. Open Championship on June 14-17, carried on FOX and FS1. The 5G wireless technology will transmit 4K HDR images from two FOX Sports cameras positioned on the challenging par-3 seventh hole at Shinnecock Hills Golf Club through the FOX Sports production truck, making it available to FOX Sports and its viewers through DirecTV. In the future, 5G could possibly be used to deliver real-time virtual reality views from the course. Deployed for the first time at broad scale earlier this year by Intel and partners at the Winter Games in PyeongChang, 5G technology has the potential to provide disruptive abilities, to broadcasters and consumers alike. The groundbreaking trial will be the first available broadcast footage enabled using 5G technology from a premier U.S. golf event.

Riddell adds head injury analytics to smart helmet. Riddell is upgrading their current technology to assist coaches in analyzing head-damage tendencies to scale back the prospect of damage. Riddell launched the InSite Influence Response System in 2014 to alert soccer coaches when an athlete suffered serious impacts. The primary-era system was meant to assist coaches and trainers on how to handle potential concussions as quickly as they occurred. The 2018 model, referred to as the Riddell InSite Coaching Software, will do all of that plus present detailed head-damage analytics. Riddell’s evaluation is predicated on a dataset of more than five million head impacts, which the corporate has been amassing over the last few years. The data has been used to inform rules modifications to the sport, and now these tens of millions of situations of head impressions will be used to help coaches implement safer practices day-by-day.

MiLB partners with Satisfi Labs on bilingual AI solution. Minor League Baseball announced a new collaboration with Satisfi Labs, a leading artificial intelligence engagement platform, to create a bilingual customer service AI conversation platform for more than 30 MiLB teams. This unique partnership marks the first time a sports league will communicate with its fans in both English and Spanish by leveraging Satisfi Labs' AI capabilities. This new product solution will amplify MiLB's national multicultural initiative "Es Divertido Ser Un Fan®" (It's Fun to Be a Fan®") and its new "Copa de la Diversión™" ("Fun Cup™") season-long event series specifically designed to embrace the culture and values that resonate most with participating teams' local U.S. Hispanic/Latino communities. The interface will initially be made available to the participating Copa teams to support their respective fan engagement efforts. The AI platform will operate within individual teams' Facebook Messenger pages and answer fans' questions pertaining to aspects of the game day experience such as ticketing, parking, and other common inquiries surrounding the venue, game, and teams, while providing unique answers based on the users' locations. MiLB and Satisfi Labs plan to roll out an expanded AI conversation platform and league-wide fan engagement tool for the 2019 season.

All-diabetic pro cycling team to use NormaTec for recovery. Team Novo Nordisk has announced a partnership with NormaTec. The team will use the company's dynamic compression products to help its riders recover after long and grueling days on their bikes. The NormaTec PULSE Series Recovery Systems use dynamic compression to speed recovery and reduce muscle tightness and soreness. NormaTec’s patented technology employs a sophisticated form of biomimicry to enhance circulation and mobilize fluid, following a precise sequence of pulsing, gradients, and distal release. The NormaTec recovery massage leaves limbs fresh and light, so athletes are ready to tackle their next workout or competition. NormaTec was originally developed to help patients with circulatory related disorders, and the technology has since been honed to benefit the specific needs of athletes. NormaTec’s patented compression massage has revolutionized athlete recovery, and today, the NormaTec PULSE Series is relied on by 97% of pro teams.

Power of Sports 5

NFL helmets give helping hand. Two young San Luis Obispo boys are giving back after their own family received some much-needed assistance. Six-year-old Bryson Thompson and his eight-year-old brother, Brock, are raising money for a local nonprofit by collecting signed NFL football helmets. Brock and Bryson started the campaign to benefit the local nonprofit "Jack's Helping Hand." They were inspired to collect NFL helmets not just because of their love for football, but because six-year-old Bryson has epilepsy and has to wear a special helmet to protect his head from falls when he suffers a seizure. The family sent out a video of themselves asking NFL players to sign a helmet, jersey, or football and send it in. The video has spread quickly among the football community. Jack's Helping Hand helped the family pay for Bryson's epilepsy helmet when the family's insurance company deemed it unnecessary. The boys subsequent call for signed helmets, footballs, and jerseys was met with overwhelming support from NFL teams and players across the country. Now, they'll be auctioning off the items they've collected. Auction items include signed helmets and footballs from Tom Brady, Steve Gleason, Joe Namath, Bo Jackson, Nick Dzubnar, Russell Wilson, Odell Beckham Jr., Brian Dawkins, Sidney Jones, Derek Carr, Peyton Thompson, and Luke Kuechly.

WNBA launches empowerment program for women. The WNBA launched “Take a Seat, Take a Stand,” its new women and girls empowerment program for the 2018 season. As regular-season games begin this week, WNBA tickets do more than support women’s sports. When fans take a seat at a WNBA game, they will also have the chance to support several organizations that are changing the game for women and girls. For each ticket purchased, the WNBA will donate $5 to one of six organizations of the fans’ choosing in addition to a ticket to send a young woman or girl to a game to inspire her by the strength, talent, and leadership of the women of the WNBA. Fans can also choose to donate tickets directly to one of the organizations. “For 22 years, the WNBA and its players – women playing at the highest level of their sport – have stood up as role models for millions of women and girls,” said WNBA President Lisa Borders. “With ‘Take a Seat, Take a Stand,’ we are proud to come together as a league to stand with our partner organizations, our fans and the many inspiring women raising their voices for change in the current women’s movement.” The six national partner organizations for “Take a Seat, Take a Stand,” selected for their advocacy on behalf of girls and women, are Bright Pink, GLSEN, It’s On Us, MENTOR, Planned Parenthood, and The United State of Women.

Dallas Cowboys raise $50,000 for Salvation Army. Last week, the Dallas Cowboys held their seventh annual Reliant Home Run Derby. The team raised a total of $50,000 for the Gene and Jerry Jones North Texas Youth Education Town of The Salvation Army Arlington. Cowboys linebacker Jaylon Smith was a powerhouse at the plate, named the 2018 Reliant Home Run Derby champion, hitting a total of 12 home runs and raising $13,700. The Cowboys players were split into two teams representing the offense and defense. Before a final bonus round that doubled donations, team offense raised $13,800 and team defense raised $12,200. Last year’s Home Run Derby also raised $50,000 for The Salvation Army, and over the course of seven years the event has raised more than $330,000 for various local charities. Reliant supports local communities through volunteerism, charitable giving, and partnerships with a variety of organizations. In 2017, over $4 million was donated to different Reliant-sponsored causes with employees giving more than 8,000 volunteer hours. Before the Cowboys took the field, Reliant brought together local Dallas media to show off their baseball skills and raise money for their charity of choice. An additional $25,000 was raised for eight nonprofits across the area.

CFL stars donate to children’s charities. James Wilder, Jr., Brandon Banks, and Mike Reilly secured the top three spots in the 2017 Shaw CFL Top Performers program and decided to donate their winnings to children’s charities. Wilder, the Toronto Argonauts running back, donated $25,000 to Covenant House — which provides shelter for homeless youth — while Reilly, the Edmonton Eskimos quarterback, allocated $15,000 to Adarius 4 Autisim, which was founded by former teammate Adarius Bowman for youth diagnosed with Autism Spectrum Disorder. And Banks, the Hamilton Tiger-Cats speedy receiver/kick returner, donated $10,000 to the David Lane Youth Successful Fund at John Howard Society through Give Proof to Our Youth in Hamilton. “I’m always trying to impact and affect youth,” said Wilder, a 26-year-old father of four children aged five and younger. “Some of these kids just need opportunity, they just need a chance.” The CFL and Shaw Communications announced that Shaw would also donate $50,000 to the Canadian charities selected by the league’s top performers.

Chicago Bears host annual charity gala. The 23rd annual Chicago Bears Care Gala will be held this week at the United Club at Soldier Field. Through the annual Gala, Bears Care has been able to award over $14.5 million in grants to Chicago-area research efforts focused on finding a cure for breast and ovarian cancer and improving treatment options for those currently battling these diseases. The Chicago Bears have a longstanding tradition of supporting numerous charities and assisting those in need. Bears Care was incorporated in 2005 as a charity organization committed to improving the quality of life for people in the Chicagoland community, especially disadvantaged children and their families, through targeted programs supporting education, youth athletics, and medical research and health awareness programs focusing on breast and ovarian cancer. Since that time, Bears Care has issued grants totaling over $17.5 million to over 100 qualifying agencies.

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eastcoastenthusiast-blog1 · 7 years

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