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Closing Bell

Closing Bell, May 8, 2003

The Daily Insider
Afternoon News & Headlines
Thursday May 8, 2003
4:00pm ET

NCAA Committee On Infractions Delivers Univ. Of MI Booster Report

Red Sox President & CEO Larry Lucchino Talks On CNBC’s “Squawk Box”

NFL Today Announces Two-Year Partnership With Craig Media

Promotion Of The Week: Pedro Martinez To Don Expos Uniform Once Again

Largest Soccer Crowd In TX History Expected Tonight For Mexico-U.S. Match

Buzzer Beaters/Tonight’s Events/Channel Surfing/In Other News/The Daily Stat


NCAA BANS UNIV. OF MI FROM POSTSEASON FOR ONE YEAR

The AP reports that the NCAA Committee on Infractions today banned the Univ. of MI men’s basketball program from the postseason for one year. In addition, the team “will lose one of its 13 scholarships a year for four years, beginning in 2004-05, and was put on probation until November 2006.” The committee called the university’s self-imposed sanctions “meaningful,” but not sufficient (AP, 5/8).


LUCCHINO DISCUSSES MLB COMPETITIVE ISSUES ON CNBC TODAY

Red Sox President & CEO Larry Lucchino appeared this morning on CNBC’s “Squawk Box,” and discussed various competitive issues in MLB. When asked if he favored an NFL-style revenue sharing model, Lucchino said, “We’re moving in that direction and I think some movement in that direction is a good thing for the competitive balance in baseball, make no mistake about it. … It’s a current and important issue and is becoming more and more prevalent.”

On the notion that some teams structure cable deals to minimize revenue: “The premise is wrong. The money that comes to the clubs is examined by baseball and its revenue-sharing committee to determine that it’s a fair-market arrangement.”

Lucchino added, “Some kind of a payroll cap does make sense because that will most directly get to the issue of competitive balance between clubs and between player payrolls.” Lucchino continued, “I think all sports leagues eventually will be run with some kind of a payroll cap so that there is a range.”

On contraction: “We’ve got to deal with the size of our industry, the size of our business, and I do think that some kind of contraction would not be a bad idea. ... By some kind of contraction, we could get more rational, more sane scheduling” ("Squawk Box," CNBC, 5/8).


CRAIG MEDIA TODAY ACQUIRES CANADIAN TV RIGHTS TO “MNF”

The NFL today announced a two-year partnership with Canada-based Craig Media, under which Craig will have exclusive rights to “MNF” broadcasts in Canadian provinces Ontario, Manitoba and Alberta for the ’03 and ’04 seasons (THE DAILY).

The CFL and the CFLPA today announced an agreement with Pacific Trading Card Company, marking the first time in more than 30 years that CFL players will be featured in a mainstream mass distribution set (THE DAILY).

The OTTAWA CITIZEN reported that the CFL Ottawa Renegades today are unveiling plans for next year’s Grey Cup at City Hall. Renegades President Brad Watters: “We want to set up a network of volunteers and develop the interest of the community leaders to help us form organizing committees. We’ll also outline some of our plans for tickets.” Waters will also “reveal how Frank Clair Stadium will be expanded from 28,500 seats to more than 50,000 seats for the Grey Cup game” to be held in Regina November 16 (OTTAWA CITIZEN, 5/6).


FOOT LOCKER TODAY RELEASES Q1 ’03 SALES REPORT

CBS MARKETWATCH reports that Foot Locker today released its Q1 ’03 sales report for the period ending May 3. Total sales rose 3.5% to $1.127B from $1.09B in the year-earlier period. Comparable store sales decreased 2.5%. Additionally, “excluding the effect of foreign currency fluctuations, sales for the 13-week period increased” 0.1%. The company plans to report its Q1 ’03 earnings May 22 (CBS MARKETWATCH, 5/8).


PROMOTION OF THE WEEK: EXPOS AND PEDRO REUNITED

The Expos on Sunday will distribute 5,000 bobbleheads of Red Sox P Pedro Martinez, who played four seasons in Montreal, for the team’s 1:05pm ET game against the Dodgers, the team with which Martinez began his MLB career. In celebration of the team’s 35th season in Montreal, six Sunday bobblehead giveaways are scheduled this year, however, 2B Jose Vidro is the only current Expos player featured in the series. Other bobbleheads include manager Frank Robinson, former P Dennis Martinez, former 3B Tim Wallach and mascot Youppi.

While the practice of distributing promotional items associated with retired players is not uncommon, it is believed this is the first time the likeness of an active player will be used by another MLB team for promotional purposes. The only similar effort sanctioned by MLBP was last year’s “Road to the Show” bobblehead promotion, which featured 14 current or former MLBers in their minor league uniforms. An important distinction is that the “Road to the Show” collection was not a promotional item as it was only available for purchase.

Expos Exec VP/Business Affairs Claude Delorme told The Daily that the team initially spoke with Martinez about the idea of a bobblehead depicting the Red Sox ace in an Expos uniform. Upon receiving his approval, the Expos sought and were granted permission from the Red Sox.

The team’s average attendance for bobblehead giveaways last year was approximately 21,000, more than double the final season average of 10,031. However, the first of such giveaways did not occur until June. The first bobblehead giveaway this season featuring Robinson drew 13,300 on April 27, an increase of nearly 5,000 over the previous day’s attendance. Delorme expects as least the same amount for the Martinez giveaway and “maybe as high as 15,000.” Though the drop-off in attendance from last year’s bobblehead average seems significant, Delorme adds, “May has always been a challenging month attendance-wise.”

The Expos are utilizing an all-inclusive ad campaign to support the promotion. In addition to standard TV, print, radio and Web site ads over the past week, a scoreboard ad designed specifically for the promotion has run twice per game during the current homestand.

As this is the second consecutive year the Expos have distributed bobbleheads, Delorme wondered if the novelty of bobbleheads will have worn off by next season, saying, “We’re going to have to be more original going forward in terms of putting together an item that is sought after by collectors and baseball fans alike.”

Do you have an interesting promotion The Daily should know about? If so, please email Joe Oliver at joeo@sportsbusinessdaily.com


BUZZER BEATERS

With an official crowd of at least 69,100 at sold-out Reliant Stadium tonight, the U.S.-Mexico men’s soccer friendly “will attract the largest audience to see a soccer match in Texas and the biggest crowd outside of California to witness an exhibition featuring the U.S. national team."  The game airs live at 8:00pm ET on ESPN2 and Telemundo (HOUSTON CHRONICLE, 5/8).

The Blue Jays today announced that Expedite Plus purchased all remaining 200 level outfield and 500 level SkyDeck seats for the next four Wednesday home games, and will offer them to fans for C$2. The first game as part of the promotion is next Wednesday’s 7:05pm ET game against the Devil Rays. The White Sox, Pirates and Orioles are the other teams (THE DAILY).

The current bid on eBay for the Green Bay house of Packers QB Brett Favre is $1,334,544. The auction, which runs through Wednesday, has already received 77 bids (THE DAILY).

The L.A. TIMES reports that former Angels Computer Programmer Phil Alger, who “lost his job after soliciting bids for his World Championship ring on eBay,” filed suit yesterday in L.A. County Superior Court for wrongful termination and breach of promise. Alger claims “unspecified financial damages and extreme physical and emotional stress” (L.A. TIMES, 5/8).

The CINCINNATI BUSINESS COURIER reported that WXIX-Fox will “continue to retain the sole and exclusive rights to University of Cincinnati basketball broadcasts under a new 10-year agreement” (BIZJOURNALS.com, 5/7).

Mike Shula today was named the new head coach of the Univ. of AL, and Jesse Jackson said the school employed “‘smoke and mirrors’ in picking” Shula over Sylvester Croom (THE DAILY).

The THOROUGHBRED TIMES reports that 14 of the 16 Kentucky Derby jockeys will have to appear before the Churchill Downs stewards May 16 for “allegedly violating state racing regulations” for wearing a Jockey’s Guild logo on the right leg of their pants. Jockeys Jerry Bailey and Pat Day, who rode Empire Maker and Ten Most Wanted, respectively, were the only two not to wear the logo (THOROUGHBRED TIMES, 5/8).


A LIGHTER BUZZ

The DESERET NEWS reports that an NBA Kings fan was “arrested Sunday morning after he reportedly stumbled from his home and began firing an assault rifle in the air to hail the Kings’ victory” over the Jazz. Orem (CA) Police Lt. Doug Edwards said that police “were puzzled by the delayed – and inappropriate – celebration of the victory, which occurred four days earlier” (DESERET NEWS, 5/8).


TONIGHT’S EVENTS

The Red Sox will hold a 5:00pm ET news conference at Fenway Park to announce an educational partnership with Building Educated Leaders for Life (BELL), which provides academic enrichment for elementary school students. Red Sox Owner John Henry and Lucchino will attend (THE DAILY).

The Arthur Ashe Institute for Urban Health will host the ninth annual Black Tie and Sneaker Sportsball, beginning at 6:00pm ET on Pier Sixty at Chelsea Piers in N.Y. Al Roker of NBC’s “Today” and tennis analyst Mary Carillo will host the event, whose honorees include Olympic swimmer Donna de Varona and tennis coach Nick Bollettieri (THE DAILY).

Ravens LB Ray Lewis will host the second annual Ray Lewis Foundation Cocktail Party, Auction & Celebrity Bowling Event, beginning with the cocktail party from 6:00-10:00pm ET at Martins West in Baltimore. The bowling event will be held tomorrow night from 6:00-9:30pm ET at Normandy Brunswick Lanes in Ellicott City, MD (THE DAILY).


CHANNEL SURFING

ESPN will air the NBA playoffs: 76ers-Pistons Game 2 at 7:00pm ET and Kings-Mavericks Game 2 at 9:30pm ET.

ESPN2 will air “The Sports Reporters Primetime” at 7:00pm ET.

ESPN2 will air Mexico-U.S. men’s soccer at 8:00pm ET.

ESPN2 will air the Stanley Cup playoffs: Wild-Canucks Game 7 at 10:00pm ET.

ESPN Classic’s “SportsCentury” will profile Magic Johnson at 8:30pm ET.

Angels P Scot Shields, Dr. Harry Edwards and recording artist Brian McKnight are scheduled to appear on FSN’s “BDSSP.”

WWE wrestler Chris Jericho will be on ABC’s “Jimmy Kimmel Live.”

Fox’ “The Pulse” will feature four Dolphins cheerleaders at 9:00pm ET.

A&E’s “Biography” will profile Barbara Bush at 8:00pm ET.

E!’s “True Hollywood Story” will profile Lisa Marie Presley at 8:00pm ET.

Fox will air the First Annual Miss Dog Beauty Pageant at 8:00pm ET.

The Travel Channel will air “TV Road Trip: New York” at 10:00pm ET.


HEADLINERS

Here are tonight’s headline guests on the following talk shows:

“Late Show” Megan Mullally
“The Tonight Show” Keanu Reeves
“The Late Late Show” Famke Janssen
“Late Night” Marisa Tomei
“Jimmy Kimmel Live” Sarah Silverman

TODAY’S ARTICLES OF INTEREST

The N.Y. TIMES’ Selena Roberts writes of recent negative incidents in the sports world, “Feeling a little dirty? There is an outlet for your dark side, a place where the wattage is revved up, where the beer taps pour like loose slots and the music has the pulse rate of a flamenco dancer. There is an area roped off from the norms of behavior, a place where indecency is part of the entertainment, where spectators are encouraged to indulge in fantasy and the aberrant is acceptable” (N.Y. TIMES).

See The Daily Insider’s Articles Of Interest for more sports business-related links.


TODAY’S TEASER…

Sports Business: As noted in today’s issue of The Daily, the Rockets experienced the largest increase in average road attendance, up 8.3% over last season. Which team was second?

  1. Mavericks
  2. Lakers
  3. Nets
  4. Grizzlies

IN OTHER NEWS…

REUTERS notes that Comcast today released a “wider quarterly net loss but raised its full-year outlook for new cable and high-speed Internet subscribers.” The company reported a $297M net loss for Q1 ’03, an increase from $89M in the year-earlier period. Revenue rose 9.7% from $5.03B to $5.52B. The company “expects to add 75,000 to 100,000 net additional cable subscribers” by the end of the year (REUTERS, 5/8).

CBS MARKETWATCH reports that Japan-based game software developer Sega has “called off plans to merge with pachinko slot machine maker Sammy Corp” because they “failed to agree on merger details” after the two companies announced in February that “they were entering business integration talks” (CBS MARKETWATCH, 5/8).


THE DAILY STAT: BILLBOARD CHARTS

The following lists Billboard Magazine’s top-selling CDs for the week ending May 4 (BILLBOARD.ocm, 5/8):

RK
ALBUM ARTIST LABEL
1)
Get Rich Or Die Tryin' 50 Cent Shady/Aftermath
2)
American Idol Season 2: All-Time
Classic American Love Songs
Soundtrack RCA
3)
Thankful Kelly Clarkson RCA
4)
The Very Best of Cher Cher Geffen/MCA/Warner Bros.
5)
Come Away With Me Norah Jones Blue Note
6)
Fallen Evanescence Wind-up
7)
Meteora Linkin Park Warner Bros.
8)
American Life Madonna Maverick
9)
The Lizzie McGuire Movie Soundtrack Walt Disney
10)
Priceless Kelly Price Def Soul


…TODAY’S ANSWER

The Nets were second with an increase of 3.4%, just 0.1% better than the Mavericks.


If you have any questions, comments or suggestions, please let us know at:
dailyinsider@sportsbusinessdaily.com

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