| | The Daily Insider
Afternoon News & Headlines
Wednesday, July 24, 2002
4:00pm ET | |
| • | Communications Breakdown: Former Sabres Owner Rigas Arrested |
| • | Fireman Makes First Public Comments On Iverson Case At Earnings Call |
| • | Peregrine Padre: Moores A Defendant In Two Class-Action Suits |
| • | Despite Troubles, CART's Q2 Earnings Hold Steady |
| • | Turkey Eyes F1 Racing, Pledges Land And Money For Race Track |
| • | Articles Of Interest/In Other News/Tonight's Events/Daily Stat/Channel Surfing |
SABRES OWNER, TWO SONS, ARRESTED ON FRAUD CHARGES
The NHL announced today that Commissioner Gary Bettman will be in Buffalo tomorrow to give an update on sale of the Sabres, with a 10:30am ET press conference at the HSBC Arena (THE DAILY). Bettman's appearance will come one day after the U.S. Department of Justice and the SEC announced the arrests of the Adelphia Communications Corp. Founder and former Sabres Owner John Rigas, along with two of his sons, Timothy and Michael. They are charged with multiple counts of fraud. The elder Rigas has given up control of the Sabres franchise, which reportedly owes $150M to Adelphia Communications . The NHL is in the process of selling the team, with a preference to keep the Sabres in Buffalo (BUFFALO BUSINESS FIRST, 7/24).
FIREMAN SPEAKS ON IVERSON AT REEBOK'S EARNINGS CALL
By Terry Lefton, Editor-at-Large, The Sports Business Daily
It took almost an hour for any of the financial analysts at this morning's Reebok Q2 earnings call to ask "The Question" about "The Answer." But when asked, Reebok Chair & CEO Paul Fireman made his first statement on the case against 76ers G and Reebok's key endorser Allen Iverson, saying that it would not amount to anything. "We think it (assault and weapon charges) is going to be dismissed," Fireman said. "It is a celebrity-type of newspaper story. Very honestly, it is a domestic dispute. There is no proof of all the allegations, especially the firearm. It is not his M.O. from the past. We don't think it's a real thing. … It's a misdemeanor in any other community. People yell at each other -- and that's all that happened. Nobody was physically abused, touched or otherwise -- no break-in occurred. We think it is going to just go away."
When asked if Reebok is making any contingency plans should its leading NBA icon miss any playing time due to his legal difficulties, Fireman said, "We do believe he'll play. If he didn't play, it would be an upset." As for any effect, positive or otherwise, on sales of Iverson shoes or apparel, Fireman said, "We have tested the market for his popularity – there's no more or less." Earlier in the conference call, Reebok reported improved earnings for the quarter ended June 30. Net income was $25M, or $0.39 per share, an earnings per share increase of 63% compared to net income of $14M, or $0.24 per share in the second quarter of '01. Fireman and other Reebok officials had only positive things to say about sales of Iverson footwear and apparel. Asked about sports marketing expenditures, Fireman said. "In the case of an Iverson, he has now built into a significant business that one could argue generates a profit and contribution beyond his cost." Iverson, a Reebok endorser since entering the NBA in '96, signed what was termed a "lifetime" agreement with Reebok last November.
Meanwhile, as of presstime, shares of Reebok were trading at $24.48, up $1.17 (THE DAILY).
MOORES UNDER INVESTIGATION IN PEREGRINE SYSTEMS ROLL
ESPN.com reports that Peregrine Systems, for which Padres Owner John Moores serves as Chair, faces a Wednesday deadline to "turn over corporate documents for a congressional inquiry," and is the subject of an SEC investigation and a "defendant in at least two of three federal class-action civil suits filed by stockholders and stock-holding employees." While Moores was unavailable for comment, Padres CEO Bob Vizas said, "There is no truth to the allegations that John Moores did anything wrong. He is being represented and will defend the cases. Furthermore, Peregrine has no financial interest in the Padres and John has no substantial amount of money in Peregrine" (ESPN.com, 7/24).
CART EARNINGS HOLD STEADY FROM SAME QUARTER LAST YEAR
CART today announced financial results for its Q2 ended June 30, 2002. Total revenues were $19.7M, compared with $19.8M in the same quarter of the prior year. Total expenses rose to $25.7M from $15.6M in '01. Net loss was $3.2M, or $0.21 per share, compared with net income of $3.9M, or $0.25 per share, in '01. At presstime, CART shares were trading at $7.29, down $0.18 (THE DAILY).
ALL THE TRIMMINGS: TURKISH GOVERNMENT TO BUILD F1 TRACK
The AP reports that Turkey's government "will back efforts by the country's auto racing authorities to host a Formula One race in 2005." Turkish Auto Sports Federation Chief Mumtaz Tahincioglu said government officials pledged Wednesday "to designate land to build a race track, as well as some $40 million in sponsorship, despite the country's crippling crisis that shrunk the economy by 9.4 percent last year." Turkey faces competition from several other countries looking to attract F1, with Moscow "set to host a race in 2004, while China, Bahrain and Egypt are also interested" (AP, 7/24).
BUZZER BEATERS
A-B's Busch beer today announced it has signed a multi-year sponsorship agreement becoming the "Official Beer of B.A.S.S." In addition to Busch becoming the "Official Beer of B.A.S.S.," the sponsorship agreement makes it the presenting sponsor of the '03 CITGO BASSMASTERS Classic, the CITGO BASSMASTER Tournament Trail, the '03 CITGO B.A.S.S. Federation Championship and a weekly TV show on ESPN2 (THE DAILY).
Wheaties today unveiled a special-edition package commemorating the HOF career of SS Ozzie Smith. The box, which will appear in stores in early August, marks Smith's first appearance on a Wheaties product (THE DAILY).
David Sirotky's The Hit Men and the Kid Who Batted Ninth, which chronicles the '87 Seton Hall baseball team, is in stores now. In addition to co-National Player of the Year 1B Marteese Robinson, the team included Mets 1B Mo Vaughn, Astros 2B Craig Biggio, and Mets SS John Valentin (THE DAILY).
The S.F. CHRONICLE reports, "Members of the outdoors industry are shocked over a court decision last week to award a woman paralyzed from a snowboarding jump $9.7 million from Bear Valley." Dodge Ridge owner Frank Helm: "It scares me. You see the bumper sticker, 'No Fear' and now you say, 'Right, don't be afraid of anything, but by God if you get hurt, sue the bastards'" (S.F. CHRONICLE, 7/24).
Canisius College has entered into a corporate sponsorship with Wolfwired. As part of the agreement, NY-based Wolfwired will provide Canisius with sports images for its publications, including media guides, game programs and its Web site (THE DAILY).
IMG has formed "The Corporate Video Company," which together with IMG's London-based TWI will produce and distribute business content via film, video, mobile telecommunications, DVD and the Internet (THE DAILY).
As noted in today's Morning Buzz, ESPN formally announced that former FSN anchor and reporter Kevin Frazier has joined ESPN as an NBA studio host and "SportsCenter" anchor. Frazier will make his "SportsCenter" debut on Friday, July 26 at 1:00am ET (THE DAILY).
TODAY'S ARTICLES OF INTEREST
The Long Beach PRESS-TELEGRAM's Bob Keisser on current issues in the world of sports that distract from the actual games.
The N.Y. TIMES' Selena Roberts reports on the exclusion of women members at Augusta National Golf Club.
The WALL STREET JOURNAL's Anne Marie Chaker on high schools installing artificial turf as a cost-cutting measure.
The PHILADELPHIA INQUIRER's Claire Smith believes MLB's "turnstiles will fall silent as surely as the leaves will fall from the trees come September."
The DETROIT FREE PRESS's Jeff Lowe writes that the Tigers' reported financial troubles are just another part of the labor war.
The MIAMI HERALD's Greg Cote writes that baseball will survive another strike.
The Ft. Lauderdale SUN-SENTINEL's Sam Farmer on Dolphins RB Ricky Williams' bout with social anxiety disorder.
The INDIANAPOLIS STAR's Mark Montieth on off-season workouts conducted by the Pacers at FL-based IMG Basketball Academy.
The ATLANTA CONSTITUTION's Mike Tierney on ESPN's coverage of Bassmasters.
MEDIA LIFE MAGAZINE's Aaron Moore on NASCAR's growing television audience.
See The Daily Insider's Articles of Interest section for these and more sports business-related links.
TONIGHT'S EVENTS
The Single A New York-Penn League Brooklyn Cyclones will host a 5:00pm ET cocktail party to celebrate the opening of the Brooklyn Baseball Gallery. HOFer Duke Snider is the special guest at the event (THE DAILY).
As part of Twin Night, the first 3,000 fans under 14 years of age at the WUSA Freedom's 7:00pm ET game against the Breakers will receive either a Skylar Little or Jacqui Little bobblehead (THE DAILY).
WNBA President Val Ackerman will be available for interviews prior to the Lynx 7:00pm CT game against the Starzz. Meanwhile, singer/songwriter Ann Reed will perform a post-game concert (THE DAILY).
IN OTHER NEWS……
REUTERS reports that after posting earnings declines in the previous six quarters, McDonald's Corp.'s Q2 earnings were up $0.05 per share, "as lower costs and new restaurant openings helped offset weak sales in restaurants open at least a year." McDonald's posted net income of $497.5M, up from $440.9M a year ago (REUTERS, 7/24). As of presstime, shares of McDonald's were trading at $23.90, up $0.06 a share (THE DAILY).
The AP reports that a NJ appellate court Tuesday upheld a $6M judgement for former NFL Giants WR Phil McConkey, agreeing that Wall Street brokerage firm Aon Corporation "had deliberately lied about a corporate buyout" (AP, 7/24).
THE DAILY STAT:
The following lists the final Nielsen ratings for the top ten prime time shows for the week of July 15-21. Also provided are Nielsen ratings averages season to date for the nets' primetime coverage (USA TODAY, 7/24).
| TOP TEN PRIMETIME NIELSEN RATINGS FOR JULY 15 - 21 |
| RK | PROGRAM | NET | DAY | RAT/SHR | VIEWERS
(IN MILLIONS) |
| 1) | CSI | CBS | Thu | 9.4/16 | 14.1 |
| 2) | Everybody Loves Raymond | CBS | Mon | 7.8/13 | 11.5 |
| t3) | Dateline | NBC | Tue | 7.6/14 | 11.0 |
| t3) | Law & Order | NBC | Wed | 8.0/14 | 11.0 |
| 5) | Dog Eat Dog | NBC | Mon | 6.4/11 | 10.7 |
| 6) | American Idol | Fox | Tue | 6.0/11 | 10.3 |
| t7) | 60 Minutes | CBS | Sun | 7.1/14 | 10.1 |
| t7) | Law & Order: Criminal Intent | NBC | Sun | 7.0/12 | 10.1 |
| 9) | Becker | CBS | Mon | 6.9/11 | 10.0 |
| 10) | 48 Hours | CBS | Mon | 7.0/12 | 9.8 |
| NIELSEN AVERAGES SEASON-TO-DATE |
|
| NBC | 8.7 |
|
| CBS | 8.1 |
|
| ABC | 6.2 |
|
| Fox | 5.6 |
|
| UPN | 2.6 |
|
| WB | 2.4 |
CHANNEL SURFING
ESPN will air Cardinals-Giants at 7:00pm ET.
ESPN2 will air Yankees-Indians at 7:00pm ET.
ESPN Classic's "SportsCentury" will profile Barry Bonds at 8:00pm ET.
Sen. Jim Bunning (R-KY) will be on "The Last Word."
Eric Dickerson and D'Backs LF Luis Gonzalez are scheduled to appear on FSN's "Best Damn Sports Show Period."
A&E will profile David Berkowitz, the Son of Sam serial killer,at 8:00pm ET.
E!'s "True Hollywood Story" will profile Chris Farley at 8:00pm ET and Phil Hartman at 9:00pm ET.
Lakers F Rick Fox will be on NBC's "Last Call" with Carson Daly.
HEADLINERS
Here are tonight's headline guests on the following talk shows:
| "The Late Show" | Dana Carvey |
| "The Tonight Show" | Christian Slater |
| "The Late Late Show" | William Shatner |
| "Late Night" | Rich Hall |
If you have any questions, comments or suggestions, please let us know at:
dailyinsider@sportsbusinessdaily.com
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