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ARENA FOOTBALL HEADING SOUTH OF THE BORDER?
New Tampa Bay Storm owner Peter Kern held his first news conference as owner yesterday. He said he was in the process of selling the AFL's Ft. Worth Calvary to Don Logan, a promoter based in Mexico City. The league's expansion and relocation committee next week is expected to discuss the sale and Logan's intention to move the team to Mexico (Chris Marti, TAMPA TRIBUNE, 9/15).
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CLINTON, CONGRESS PROMISE TO RE-EXAMINE ANTITRUST EXEMPTION
President Clinton said that baseball's antitrust exemption should be re-examined: "I don't see how we can avoid a serious examination of it" (Paul Richter, L.A. TIMES, 9/15). But Congressional action remained in limbo following the block of Senator Howard Metzenbaum's (D-OH) bill Tuesday. Metzenbaum said he would reintroduce the bill early next week and indicated that he "had enough support" to pass the legislation (N.Y. TIMES, 9/15). HOUSE ACTION: On the House side, House Judiciary Chairman Rep. Jack Brooks (D-TX) will hold oversight on the antitrust exemption September 22. Brooks said that the shutdown of the game "has moved the issue of baseball antitrust exemption to the congressional-policy radar screen as never before" (Alex Truex, HOUSTON CHRONICLE, 9/15). Acting Commissioner Bud Selig plans to testify at the hearings (USA TODAY, 9/15). OUTLOOK: MLBPA Exec Dir Donald Fehr: "[MLB] is the only unregulated monopoly of its size in the country" ("SportsCenter," 9/14). Dave Anderson writes that by "undermining the public's trust in a World Series, the 28 major league club owners have also undermined their antitrust exemption" (N.Y. TIMES, 9/15). But ESPN'S Peter Gammons warned that action is unlikely: "The owners have a lot of friends in high places" ("SportsCenter," 9/14). -
SANDERS SIGNS WITH 49ERS AMID SALARY CAP COMPLAINTS
49ers officials "may have to answer plenty of questions" from the NFL's Management Council once the league starts reviewing details of Deion Sander's one-year, $1.25M contract. League officials said yesterday that they anticipate several teams to request that the contract be scrutinized for any "under- the-table" deals made to circumvent the salary cap. Falcons president Taylor Smith questioned the deal and said "bitterly" that the Falcons had offered Sanders more than double the 49ers bid. Dolphins GM Eddie Jones: "Let's just say they have been very, very resourceful" (Len Pasquarelli, ATLANTA CONSTITUTION, 9/15). 49ers President Carmen Policy added that the questions of other teams over the validity of the contract "concerns me" (Clark Judge, SAN JOSE MERCURY NEWS, 9/15).
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THE DAY BASEBALL DIED: NEWS FROM 22 BASEBALL MARKETS
ATLANTA: The Braves may have less trouble promoting themselves for '95 than some other teams: "They have a season- ticket base of 30,000 and typically get a 90 percent-plus renewal rate" (Rosenberg, ATLANTA CONSTITUTION, 9/15). BALTIMORE: Orioles Owner Peter Angelos refused to sign the resolution backed by 26 of the 28 owners (The Reds' Marge Schott also abstained). Instead, Angelos "called for a cease-fire to the name-calling and finger-pointing," in particular the sections that criticized the players for not bargaining in good faith. Angelos said the rehtoric "served no constructive purpose" and "were absolutely inappropriate in light of what the announcement was dealing with." Angelos, who is not on the PRC or Executive Council, intends to get more involved in negotiations (Tom Keegan, Baltimore SUN, 9/15). Whether Angelos "is on board probably doesn't matter. The owners are expected to declare an impasse in November and try to weather a legal onslaught by the union" (Peter Schmuck, Baltimore SUN, 9/15). Angelos, on his call with Schott: "She said, 'If you're not going to sign it, I'm not going to sign it.' I said, 'Hallelujah, I've got one soldier. All we need is 19 more'" (Mark Maske, WASHINGTON POST, 9/15). Ken Rosenthal called it a "badge of honor" that Angelos refused to sign (Baltimore SUN, 9/15). BOSTON: Michael Gee writes, "In the short-term, the owners have sabotaged their primary profit source of the past 20 years - - the explosive growth in the value of a big league franchise. ... If the capital of the average franchise goes down 25 percent, the owners will lose $700 million. It'd take more than a decade's worth of the owner's salary cap plan to save them that much dough" (BOSTON HERALD, 9/15). Dan Shaughnessy: "Major League Baseball, for the moment, is dead" (BOSTON GLOBE, 9/15). CHICAGO: The Cubs and White Sox will lose an estimated $48.7M combined. John Skorburg, chief economist for the Chicagoland Chamber of Commerce, calculated that the final tab for the city will be $387.5M (Dan Bickley, CHICAGO SUN-TIMES, 9/15). Bob Verdi writes, "What exactly will be the 'cost certainty' of this exercise in petulance if fans decided they've had it right up to here with baseball?" (CHICAGO TRIBUNE, 9/15). White Sox Owner Jerry Reinsdorf made no public comments, releasing this statement: "It is difficult to find words to express my regret that the remainder of the 1994 season had to be canceled due to the players' strike. It's really a shame" (Paul Sullivan, CHICAGO TRIBUNE, 9/15). In Washington, Reinsdorf critic Tom Boswell writes, "Here lies the man who sacrificed baseball to settle a schoolyard grudge" (WASHINGTON POST, 9/15). CINCINNATI: Reds Owner Marge Schott said the owners' decision to cancel the rest of the season "was so unappealing, in the end she couldn't be part of it." Schott: "I'm behind the owners in wanting to do something with (the salary structure of) baseball, but this is a tradition we're breaking. It (signing the resolution) wouldn't make any difference" (CINCINNATI ENQUIRER, 9/15). Reds GM Jim Bowden called the potential $10M loss to the club "financially devastating" (CINCINNATI ENQUIRER, 9/15). CLEVELAND: Bill Livingston of the CLEVELAND PLAIN DEALER, on Indians fans: "These people have lived and mostly died with this team for a very long time and now there is not going to be any reward" ("SportsCenter," ESPN, 9/14). DENVER: Rockies Owner Jerry McMorris noted the "possibility" that a "couple of teams" might not survive (Jerry Crasnick, DENVER POST, 9/15). McMorris said there would be no "wholesale" front-office layoffs, with the construction of the new Coors Field a "major part of the equation" (Crasnick, DENVER POST, 9/15). Tomorrow, the Rockies will announce their refund policy -- and also that they are raising ticket prices. McMorris: "We're going to try to be square with everybody" (DENVER POST, 9/15). DETROIT: Mitch Albom: "Do they know what they've done?" (DETROIT FREE PRESS, 9/15). HOUSTON: Alan Truex writes, "How do they sell season tickets, advertising, television and radio rights for a sport that is in total disarray?" (HOUSTON CHRONICLE, 9/15). LOS ANGELES: Dodgers Owner Peter O'Malley was "unhappy" that he was excluded from negotiations, according to sources. O'Malley, from Ireland where he is promoting little league and amateur baseball: "I said, and was quoted several times as saying, now is the time to show that flexibility. But [both sides] never did" (Maryann Hudson, L.A. TIMES, 9/15). Mike Downey: "The World Series is just like the World Cup, a scoreless tie" (L.A. TIMES, 9/15). MIAMI: Ed Pope writes, "Listen! Those are champagne glasses clinking now at 410 Park Ave., the National Football League Headquarters in New York" (MIAMI HERALD, 9/15). MILWAUKEE: Brewers manager Phil Garner, who was throwing batting practice to his son when he heard the news: "It made me so mad I tried to bean my own son" (Tom Haudricourt, MILWAUKEE SENTINEL, 9/15). MINNESOTA: Twins Owner Carl Pohlad "said the loss of television revenues will cause some small-market teams to take out loans to keep them afloat during the winter. Also, despite word from several sources that he has tried in earnest to sell the Twins lately, Pohlad said he isn't interested in selling. That's not surprising, since it would be nearly impossible to sell a small-market team that is losing money during a player's strike" (Jim Souhan, Minneapolis STAR TRIBUNE, 9/15). The Twins plan to lay off about 30 of their 51 full-time front office employees, perhaps by October 12. The layoffs are expected to save the club about $75,000 a month (STAR TRIBUNE, 9/15). MONTREAL: "Already operating on a line of credit he secured in July," Expos Owner Claude Brochu said that the cancellation of the season has left the team looking at a $20M loss. Brochu: "We have no intention of simply absorbing these losses. We'll make them back through our payroll and we may have to look at other things as well -- things of a capital nature." Brochu wouldn't say if that meant additions to the ownership group or asking the present owners to pay more (Jeff Blair, MONTREAL GAZETTE, 9/15). NEW YORK: Yankees Owner George Steinbrenner: "I'm worried about us playing by opening day in 1995" (Jack Curry, N.Y. TIMES, 9/15). Murray Chass: "The prevailing view is that the dispute will become nastier before it ends, whenever that may be" (N.Y. TIMES, 9/15). Mets Secretary/General Counsel David Howard said the team has laid off or terminated about 40 employees "and more cutbacks could be on the way" (Anthony Gargano, N.Y. POST, 9/15). Mets GM Joe McIlvaine spoke on behalf of GMs expressed frustration about being "in the dark": "I have no idea what I'm supposed to do" (Bill Madden, N.Y. DAILY NEWS, 9/15). OAKLAND: A's Owner Walter Haas released a short statement: "Our hope is that the loss of the season will now provide the catalyst for Major League Baseball to put an end to the acrimony, and to restructure itself in a way that secures the game's rightful place as the National Pastime" (THE DAILY, 9/14). For more on how the cancellation of the season affects the A's impending sale, see story num. 99. PHILADELPHIA: Phillies Pres. Bill Giles: "I don't look at it as who's going to crack first. ... We were willing to (adjust) the maximum salary limit -- and we're still willing to" (Sam Carchidi, PHILA. INQUIRER, 9/15). Giles, on what it would take to end the deadlock: "Well, I would hope that enough players would say that 'Beisbol has been berry, berry good to me'" (John Smallwood, PHILA. DAILY NEWS, 9/15). Frank Dolson: "No, they haven't killed baseball, only big-league baseball" (PHILA. INQUIRER, 9/15). Bill Conlin compares owners to Benedict Arnold and John Wilkes Booth "and all the villains who robbed Americans of something precious": "If clothes make a statement, major league baseball now wears a black salary cap to go with the Black Sox of 1919" (PHILA. DAILY NEWS, 9/15). ST. LOUIS: Cardinals labor consultant Stuart Meyer: "We don't care if it's a salary cap or not. But it has to be something ... to bring the $15 million payroll closer to the $50 million payroll." Cards GM Del Maxvill called for some signs from management: "Right now, nobody knows how much big-league time a player has. ... Let's try to have a little bit of order" (ST. LOUIS POST-DISPATCH, 9/15). SAN FRANCISCO: Giants Owner Peter Magowan acknowledged that replacement players were a "possibility" if the strike continues into spring training. Magowan will cut the player payroll by $5M to $35M -- with several free agents not returning (Mark Gonzales, SAN JOSE MERCURY NEWS, 9/15). Magowan described himself as "not a hard-liner in this exercise," but Ann Killion notes that his comments were "full with anti-player rhetoric." In addition, the Giants, who want a new downtown stadium, "will be forced to take [their] plan to the public, a public left with a sour taste that may linger into the next century" (MERCURY NEWS, 9/15). SEATTLE: Mariners CEO John Ellis "agreed with the decision to end the season, though he will be forced to lay off several full- time employees and the franchise stand to lose nearly $6 million in postseason revenue. But Ellis said the short-term loss would be a long-term gain if the owners can gain control over player salaries." Ellis: "If that happens, then this is certainly worth it for the Mariners" (Jim Street, SEATTLE POST- INTELLIGENCER, 9/15). TEXAS: The city of Arlington will forfeit $42M from games lost at The Ballpark and tax revenues will be short $150,000 (Richard Alm, DALLAS MORNING NEWS, 9/15). TORONTO: Blue Jays Owner Paul Beeston: "Maybe there should have been (other proposals) and maybe there should not have been. But they [the MLBPA] didn't come back with anything meaningful. ... I don't think it necessarily has to be a salary cap. I believe there could be another mechanism" (Bill Lankhof, TORONTO SUN, 9/15). Tim Harper writes Beeston "might have been a reluctant participant in the burial, but he was a partner nonetheless." Labatt President George Taylor strongly favored finding a settlement, but Beeston stuck with the owners. Beeston said the Blue Jays were responsible for the "majority" of the brewery's $16M loss (TORONTO STAR, 9/15). -
THE DAY BASEBALL DIED: ROUND-UP OF TV COVERAGE
ESPN'S PETER GAMMONS: "If the players association is right and the whole idea has been to try to bust the union, then this will be a war that will go right into June or July and the answer will only be the last man standing. But maybe they will realize that some of those ideas that have been floating around the last few days. Maybe they can forget some of their bitterness, and start to negotiate and can decide that a deal in November is better than a deal in July. I think there will be some push to get this over by the end of December" ("SportsCenter," 9/14). ANDREW ZIMBALIST, author of "Baseball and Billons": "It looked like the owners were up to some dirty business and that is the way it turned out. The greatest likelihood is we might see Double A players and Single A players opening up the season, with the major league owners trying to induce major league players, one by one, to cross the picket line and bust the union ("Market Wrap," CNBC, 9/14). ESPN'S CHARLEY STEINER: "It was like a long suffering old friend, who you knew was going to die. There was sadness in the passing, but there was also a sense of relief as the fat lady has sung on this Kevorkianesque baseball season" ("SportsCenter," 9/14). TOMMY LASORDA: "I think this thing will be settled before spring training is over" ("GMA," ABC, 9/15). CECIL FIELDER: "The owners were trying to get something from us, and we weren't going to give it to them, so it was going to come to this anyway" ("SportsCenter," ESPN, 9/14). AGENT TOM REICH: "We will have the World Series of legal confrontations instead, which is sickening. There will be enough paper flying around here to float to Cuba on. The players are the strongest union I have ever seen and I don't think they will cross any lines, but time will tell" ("SportsCenter," ESPN, 9/14). MARVIN MILLER, Former Exec. Dir. of MLBPA: "The owners now have to sell season tickets holders for a non-existent next year, and they have to sell advertising time to the very people whose contracts they just broke. This is a salesman's nightmare. It will surprise no one if some players break the line, but they aren't going to get a majority and that means they are not going to get an agreement" ("SportsCenter," ESPN, 9/14). ESPN's BOB LEY: "Privately, union leaders are concerned about their rank and file unity in this first baseball nuclear winter" ("SportsCenter," 9/14). PAUL BROWN, FINANCIAL WORLD Managing Editor: "I think one of the pressures that will get this thing settled is pressures from the bank, from television, from the stadium. In a funny way, this situation may actually help a team in trouble. Their value may go up. ("SportsCenter," 9/14). BRANDON STEINER, of Steiner Sports Marketing: "The player's money is still coming in. The companies that these guys signed with are the losers" ("SportsCenter," 9/14). BOB COSTAS: "The owners have done a terrible job making their case to the public and the press, but the owners can always tap into a certain reservoir of sympathy" ("Charlie Rose Show," 9/14). CNN'S MARK MORGAN: "It is safe to say that when baseball does return, it will be vastly different than when it was last played" ("SportsTonight," 9/14). -
THE DAY BASEBALL DIED: TBN HOPES TO FIGHT ON
It will "business as it was at ABC and NBC now that the baseball season has been canceled." Both nets, which were without baseball the last four years anyway, "will simply revert to regular prime-time programming to fill the baseball void." In forming The Baseball Network, ABC would have televised the first round of the playoffs and the World Series and NBC would have televised the two LCS. "The financial impact on both networks will be minimal." No one would say so, "but the resumption of the season probably would not have been welcome." ABC's prime- time has been gaining on CBS in the ratings and NBC is coming off a good ratings week (Larry Stewart, L.A. TIMES, 9/15). TV sports experts estimated that MLB lost about $100M in TV revenues by its decision to cancel the season (Lee Winfrey, PHILA. INQUIRER, 9/15). TBN will lose about $24M from unplayed regular season games (N.Y. TIMES, 9/15). ADVERTISERS: Major sponsors "are searching for alternative programming for their" ads. The problem is, "there aren't many good alternatives. Thanks to a boom in new products and a rebound in ad spending, the broadcast networks have already sold most of the choice slots" on many of the hit shows. GM, Texaco, Gatorade, Anheuser-Busch and MCI all had planned to advertise "heavily during the post-season" (Kevin Goldman, WALL STREET JOURNAL, 9/15). Louis Schultz of Lintas Media: "The longer the strike continues, the more difficult it will be for baseball to sell its product to advertisers next year, because they are going to be wary of the product" ("World News Tonight," ABC, 9/14). WHAT ABOUT '95? TBN spokesperson Ray Stallone "brushed off suggestions that he was using his cellular phone from a building ledge": "We have sales people in negotiations for 1995 as we speak" (Michael Hiestand, USA TODAY, 9/15). NEW LEAGUE: A network such as Fox or CBS "could serve as a catalyst to form a new league, though sources close to Fox management say it is leery of doing anything that would jeopardize its future attempts to make a deal" with MLB (Alan Truex, HOUSTON CHRONICLE, 9/15). Former MLBPA Exec Dir Dick Moss, the main proponent of a new league, said the "goal is to field teams by April." He claims he's talked to investors about putting teams in eight to 12 cities" (Colin Miner, N.Y. POST, 9/15). Moss, taking a shot at Bud Selig: "I think as you see baseball reoragnized, Milwaukee will be left out" (Tom Haudricourt, MILWAUKEE SENTINEL, 9/15). HOW'D WE GET HERE? John Helyar examines "how fear and loathing produced the standoff that wrecked the baseball season" (WALL STREET JOURNAL, 9/15). DOES ANYBODY CARE? From the ESPN/Chilton Sports Poll: "The 1994 baseball season is now officially over. Do you care?" Yes 60%; No 40% ("SportsCenter," 9/14). -
WOULD THE NHL REALLY GO THROUGH LOCKOUT NOW?
ESPN's Keith Olberman: "Our sources tell us the latest target date for the lockout is after the first week of the season, on or about October 7th. There is a bargaining session set for Friday in New York" ("SportsCenter," 9/14). NHL players will be taking a set of proposals for a new collective bargaining agreement. The league wants to link revenues and salaries with "some form of revenue-sharing." Players want "nothing to do with anything they say limits salaries." NHL Commissioner Gary Bettman has proposed a number of concepts, including a pyramid payroll structure that would "slot salaries according to percentages of team revenue" (Alan Adams, CANADIAN PRESS/OTTAWA CITIZEN, 9/15). FOX IMPACT: NHLPA Exec Dir Bob Goodenow said the Fox TV deal will have "some impact" on negotiations, "but to what degree I don't know" (CP/OTTAWA CITIZEN, 9/15).




