Closing Bell, May 5, 2004

IMG ISSUES DENIAL TO TENNISWEEK.COM STORY ABOUT SALE

By Liz Mullen and Dan Kaplan, Staff Writers,SportsBusiness Journal

IMGco-CEO Bob Kain issued an outright denial of a story reported today onTennisWeek.com stating that the Cleveland-based sports marketing and managementcompany had been sold to an American businessman in the sports industry.  Kain said the story was “100 percentfalse.”  IMG also issued a company-widememo to that effect.  Tennis Week putthe story on its Web site this morning, but removed it shortly thereafter. “It’sthe most erroneous paragraph I have ever read,” Kain said, adding that TennisWeek did not call IMG for comment before posting the story.  Kain: “We are not even talking to a leadingbusinessman about selling IMG.  We arenot talking to anyone.”

TennisWeekpublisher Eugene Scott, who reported the story, said he took the itemoff the Web site as a courtesy to IMG, but that he might re-post the story withIMG’s denial. Scott said the story was well-sourced, and that IMG would ofcourse deny it, even if it were true, because the company would want to tellits people first.  Scott conceded thathe “did not know if we have been totally fooled.”  He said he did not call IMG before posting the item because hewas “rushed” in getting the story up and wanted to probe other sourcesfirst.  TennisWeek issues a printpublication 11 times a year, but updates its Web site more frequently.

MICHAEL HOLLEY TODAY BECOMES FINAL MEMBER OF “I, MAX”

FSNtoday announced that former Boston Globe columnist Michael Holley will join Max Kellerman andBill Wolff as the final member of “I, Max,” which debuts May 10 at6:00pm local time.  Holley was acontributor to ESPN’s “Around the Horn,” which Kellerman hosted and Wolffproduced (FSN).

Also,Kellerman announced the show’s format, which will feature a 15-round debatepitting Kellerman against Wolff, Holley or a special guest.  Guest judges will score each round in aten-point boxing format.  A prematureFSN release last week pegged Denver Post columnist Woody Paige as thethird member of the show, about which Kellerman said, “If we could get eitherWoody Paige or Michael Holley, those were the two names.  And we decided if we could get one of thosetwo guys, we would.”  “I, Max” is FSN’sfirst show to originate from N.Y. (THE DAILY).

McDONALD’S TO ROLL OUT GO ACTIVE! INITIATIVES AROUND GAMES

McDonald’stoday used the beginning of the 100-day countdown to the Athens Olympics toannounce a series of global “Go Active!” initiatives that it will roll out overthe coming months.  In addition to newOlympic-themed commercials featuring Rockets C Yao Ming, the companywill offer in-store promotions in various countries.  In European countries, McDonald’s will offer Go Active! AdultHappy Meals.  In Japan and China,instant-win games will be offered.  Inthe U.S., a new premium menu item will be launched (McDonald’s).

CNBC TODAY EXAMINES NIELSEN’S SIGNAGE TRACKING SYSTEM

CNBC’s Scott Wapnertoday examined Nielsen Media Research’s soon-to-launch tracking system thatwill measure stadium signage airtime during sports broadcasts.  While industry analysts noted that the costof signage deals “may go even higher as a result of Nielsen’s measurements,”Wapner wondered, “If you’re going to place a value on these signs, ultimately,who has the control – is it the network, is it the stadium, is it the team, isit the advertiser?”

McKee Wallwork Henderson adbuyer Karen McCallum said control is “one of the most importantramifications of this measurement because now, who controls the sign iscritical.  The team certainly stands tobenefit from that, as does the stadium.” But Wapner cited analysts who believe the networks could benefit mostbecause they control the broadcast. Pilson Communications President Neal Pilson: “The networks mayhave, down the road, the electronic capability to black out certain signs, toobscure them or to cover them with other signs” (“Squawk Box,” CNBC, 5/5).

MAGNA ENTERTAINMENT POSTS HIGHER EARNINGS; CDI IS DOWN

The BALTIMORE BUSINESS JOURNAL reports that Magna EntertainmentCorp. posted Q1 ’04 earnings of $21.1M, up from $12.7M for the year agoperiod.  Revenues rose 8% to $292M.  However, Magna said that an “ongoing disputebetween the Maryland Jockey Club, part owner of Pimlico and Laurel, and theowners of Rosecroft Raceway could hurt Magna’s earnings for the year. … Magnaestimates that if the dispute continues throughout the year, it could take a$4[M] hit out of earnings before income taxes” (BIZJOURNALS.com,5/5).

Meanwhile, LOUISVILLE BUSINESS FIRST reports that Churchill Downs Inc. “posted a greaternet loss during [Q1 ‘04] compared with last year but still beat analystestimates as revenue from interest and simulcasting of races increased fromlast year.”  CDI posted a net loss of$11.7M compared with a net loss of $11.5M during Q1 ’03 (BIZJOURNALS.com,5/5).

SPEEDWAY MOTORSPORTS OFFERS REASON FOR DOWN QUARTER

TheCHARLOTTE BUSINESS JOURNAL reports that Speedway Motorsports posted Q1 ’04 netincome of $24.7M, down from $34.9M for the year ago period.  Revenue of $122.2M was down from $146.1M inQ1 ’03.  SMI claimed the results beatWall Street expectations.  The comparabilityof results is “affected by the staging of racing events in different quartersin 2003 and 2004.  The NASCAR Nextel Cupand Busch Series racing events at Texas Motor Speedway were held in the firstquarter of 2003.  Those events will beheld in the second quarter of this year” (BIZJOURNALS.com,5/5).

BUZZER BEATERS

SportingNews this week features Marlins P Dontrelle Willis on the cover, withthe header, “Startling Lineup … The Majors’ First-Month Surprises.”  An alternate cover features NASCAR drivers DaleEarnhardt Jr. and Matt Kenseth, with the header, “Friends &Rivals.”

Sports Illustrated this week features Kentucky Derbywinner Smarty Jones on the cover, with the header, “Why Everybody Loves SmartyJones.”

Sporting News	Sports Illustrated

ESPN Videogames today announced that Eagles WR TerrellOwens will be the cover athlete for “ESPN NFL 2005” (ESPN Videogames).

TheHornets today announced the retirement of Exec VP/Basketball Operations &GM Bob Bass effective June 30 (Hornets).

TheS.F. CHRONICLE reports that the USADA yesterday banned shot-putter KevinToth from competition for two years after he tested positive for THG (S.F.CHRONICLE, 5/5).

ESPNtoday announced “ESPN The Weekend,” a July 31-August 1 celebration of the net’s25^th anniversary at Walt Disney World Resort in Lake Buena Vista,FL.  The weekend will include on-site“SportsCenter,” “Baseball Tonight,” “College GameDay” and ESPNews telecasts, aswell as X Games activities and an interactive sports area (ESPN).

Blue Sky Sports & Entertainment yesterday announcedthat Hockey HOFer Cam Neely has recently signed a two-year endorsementcontract with Samuel Adams.  The dealincludes promotional appearances for Neely (Blue Sky Sports &Entertainment).

JeffersonPilot Sports today announced that Aaron’s Sales & Lease Ownership willtitle sponsor the net’s new four-part summer series, “Football Saturdays in theSouth.”  The show, hosted by TimBrando, will now be called “Aaron’s Football Saturdays in the South” (JeffersonPilot Sports).

Terra.comtoday announced that it will provide exclusive online coverage of Copa America2004 (Terra.com).

SpikeTV today announced that its first slate of documentaries will include threesports-themed productions: “Hardwood Dreams 2,” “Glory Days” and “VivaBaseball” (Spike).

ATTENDANCEWATCH:

• The CHICAGO TRIBUNE reports that about 25,000 fans are expected for a “Cinco de Mayo exhibition match [today] between” Mexican clubs UNAM Pumas-Cruz Azul at Soldier Field (CHICAGO TRIBUNE, 5/5).

TONIGHT’S EVENTS

NazarethSpeedway will host NASCAR Night during the 7:05pm ET Cardinals-Phillies game atCitizens Bank Park.  NASCAR Busch Seriesdrivers Ron Hornaday Jr., Martin Truex Jr. and Clint Bowyer will throw out theceremonial first pitch (PHILADELPHIAINQUIRER, 5/5).

Thecity of Tampa will host a send-off party for former Buccaneers S John Lynch at 5:30pm ET outside the St.Pete Times Forum.  Lynch recently signedwith the Broncos (TAMPA TRIBUNE, 5/4).

Reebokwill present the ’04 Reebok Human Rights Award to young activists from Nigeria,Afghanistan, Brazil and the U.S. at a ceremony from 5:00-7:00pm ET at LincolnCenter in N.Y.

CHANNEL SURFING

LPGAgolfer Annika Sorenstam will be onthe “Hot Seat” during ESPN’s“SportsCenter” at 6:00pm ET.

ESPNwill air White Sox-Orioles at 7:00pmET.

ESPNClassic’s “SportsCentury” will profile RoyCampanella at 8:00pm ET.

MichelleWie will be profiled during“The News on CNBC” at 8:00pm ET.

Former MLBer Ron Darling, writer Jeff Pearlmanand actors Jenny McCarthyand Tim Meadows are scheduled to appearon FSN’s “BDSSP.”

TNT will air the NBA playoffs: Lakers-Spurs Game Two at 9:00pm ET.

“Moneyball”author Michael Lewis will appear onCNBC’s “Dennis Miller” at 9:00pm ET.

ESPN2will air Yankees-A’s at 10:00pm ET.

YankeesCF Kenny Lofton will appear on NBC’s“Last Call” at 1:35am ET.

A&E’s“Biography” will profile Shirley Jones at8:00pm ET.

E!’s“True Hollywood Story” offers Supermodels:Beyond Skin Deep at 8:00pm ET.

HEADLINERS

Hereare tonight’s headline guests on the following talk shows:

TODAY’S ARTICLES OF INTEREST

TheWASHINGTON TIMES’ Eric Fisher writes, “If one looks at indicators such asmerchandise sales, Internet traffic, international exposure and the halosurrounding Rookie of the Year LeBronJames, the NBA is enjoying a thriving, surprisingly robust post-MichaelJordan era.  The NBA is projecting$3.3[B] in licensed merchandise sales for the 2003-04 season, best in prosports, 154[%] above its total three years ago, and the first time it will top the mighty NFL in this category.  But if one judges by TV ratings and play on the court, the storyis decidedly different” (WASHINGTON TIMES).

TheAUSTRALIAN’s Glenda Korporaal writes, “Big names such as Telstra, Qantas,Westpac, Carlton & United Breweries, Australia Post, Energy Australia,Accor, Speedo, Woolmark and Nike have signed up to sponsor the Australian Olympic team for thisyear.  But the [Australian OlympicCommittee] has been unable to re-sign a whole range of other sponsors who soeagerly paid up to wrap themselves in the glory of the Sydney Games.  Among them are AMP, General Motors, BHP,Westfield, Shell, Boral and Lindemans Wines” (AUSTRALIAN).

TheSAN ANTONIO EXPRESS-NEWS’ Amy Dorsett writes, “From the betting windows of LasVegas to the NBA shop in New York City, it’s clear that the tall shadow of the … Spurs is growing – and the Lakersjust might be shrinking in its shade. Not only are spectators paying more attention to the Spurs, it seems thereigning NBA champs finally may have earned some respect: in Vegas, as it’s LosAngeles who’s the underdog” (SAN ANTONIOEXPRESS-NEWS).

• Q&A with CBS golf commentator David Feherty.
• Olympic sponsorsnot pressuring athletes to compete in Athens Games.
• Maple Leafs’ elimination from NHL playoffs means ratings loss for CBC.
• One columnist believes Devil Rays will eventually seek anewballpark.

SeeThe Daily Insider’s Articles ofInterest section for more sports business-related links.

TODAY’S TEASER…

Mindbenders: The beginning of eternity,the end of time and space.  Thebeginning of every end, and the end of every place.  What am I?

IN OTHERNEWS……

TheWALL STREET JOURNAL reports that Clear Channel Communications posted a 64%increase in Q1 ’04 net income, “boosted by brisk concert-ticket sales and gainsrelated to asset sales” (WALL STREET JOURNAL, 5/5).

THE DAILY STAT: PRIMETIME NIELSEN RATINGS

Thefollowing lists the final Nielsen ratings for the top ten primetime shows forthe week of April 26-May 2 (TV.YAHOO.com, 5/5).

…TODAY’S ANSWER

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

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