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BASEBALL HELD HOSTAGE -- DAY 102: TIME TO TALK TURKEY?
After three days of meetings in Herdon, VA, MLB and MLBPA negotiators recessed until November 28th "to give the players' union additional time to study the clubs' revised proposal" (Noble & Heyman, N.Y. NEWSDAY, 11/20). It was "too soon for the players' union to pass final judgement" on the owners' plan, which includes a "so-called luxury tax as a cornerstone of cost savings for the 28 teams" (Larry Whiteside, BOSTON GLOBE, 11/20). "But both sides did their best to put a respectable spin on what was accomplished" during the "get-together" (Jayson Stark, PHILADELPHIA INQUIRER, 11/20). "Was anything accomplished here these last three days? It is hard to judge. But perhaps one good sign is the two sides are not going for the throat" (I.J. Rosenberg, ATLANTA CONTSITUTION, 11/20). THE NEXT STEP: The question remains whether the "players will accept any part of the payroll tax proposal presented" to them (Claire Smith, N.Y. TIMES, 11/20). The tax rate has two "thresholds": the average of all 28 payrolls -- $35.6M, derived by taking 56% of industry revenue -- and a second level, $5M higher at $40.6M. A tax rate would apply to each team's payroll and any amount over each "threshold" (Hal Bodley, USA TODAY, 11/21). Red Sox CEO John Harrington, who heads the owners' negotiating team, remained optimistic. Harrington: "I'm pleased that [MLBPA Exec Dir] Don [Fehr] and the players are continuing to look at our proposal for the redeeming effects on their side. ... Our side will go to the next meetings intending to conduct very intensive and prolonged negotiations. Our goal will be to conclude them that week" (Mark Maske, WASHINGTON POST, 11/20). Fehr, who has taken an "uncharacteristically conciliatory tone during the past couple of weeks," was "careful not to give the impression that a settlement" was near (Peter Schmuck, Baltimore SUN, 11/20). Fehr: "We cannot predict when we come back together whether we'll be at the state to make a more full response or counterproposal or what" (N.Y. TIMES, 11/20). MLBPA General Counsel Gene Orza: "It is obvious that the numbers that they are plugging into their system so to speak will not fly. The question is whether the system itself provides a basis for further discussions" ("SportsCenter," ESPN, 11/18). Orza added, "I am confident that at some point, we'll make a counterproposal" (Ross Newhan, L.A. TIMES, 11/19). ACROSS THE RUBICON? Owners face a crucial deadline in the next two weeks, as major business decisions must be made by early December. If there is no agreement soon, it ie the owners will unilaterally implement their salary cap. One owner: "I don't know what more we can do. Time is running out. (The union) rejected the idea of a 45-day freeze. They don't want a salary cap. And if they don't accept this proposal, or come back with one of their own, it won't leave us with much choice" (Whiteside, BOSTON GLOBE, 11/20). -
CBA READY TO BEGIN SOUTH OF THE BORDER
The Mexico Aztecas of the CBA will "begin play as the first U.S. pro sports franchise based in Mexico." The CBA envisions itself as building a fan base and an organization for the NBA. "The reality is that this market really can and should be leveraged into the NBA's North America expansion plans," said Douglas Logan, team president and director general of OCESA, the Aztecas' parent comany. "If the NBA comes here, we see ourselves being involved, either as a partner or a minority owner. Somehow." Terry Lyons, head of the NBA's Int'l Public Relations, said Commissioner David Stern is "on record as saying that Mexico City is a definite potential expansion site ... after the year 2000." The economic appeal of Mexico is "obvious," as the market is one of the largest in the world, and the level of people with disposible incomes has risen. Logan called the CBA's venture a "controlled experiment," and Doug Clouse, Events Dir for OCESA said, "We'll test out different promotions, things that we've been doing in the States for 15 years that people here have never seen. This is as much an experiment for us as it is for the Mexicans." Mexicans know the NBA game and its players through cable TV, but the "NBA's appeal has yet to translate into CBA ticket sales. ... Sales so far, have been dismal." Goals of 8,000/game are "lofty," but Logan says they are in for the long haul and can absorb early losses" (Colin McMahon, CHICAGO TRIBUNE, 11/20).
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FINCHEM PUTS BITE ON WORLD TOUR DURING SHARK SHOOT-OUT
"Both sides in the golf war drew lines in the bunkers Saturday when the World Tour vowed to begin in 1995 and PGA Tour Commissioner Tim Finchem said he doesn't see how it's possible." Finchem, who met with World Tour organizer Greg Norman and a number of PGA Tour players Friday night, released a statement that said it would be "extremely difficult" to accommodate the new tour (Thomas Bonk, L.A. TIMES, 11/20). During CBS' Saturday telecast of Greg Norman's Franklin Funds Shark Shoot-Out, Jim Nantz reported that Finchem felt there was a "fair amount of flexibility" on the part of Norman and World Tour organizers. A statement from Finchem, as read by Nantz: "We're going to review our options, and I can only hope if we reach no common ground, that Greg and his organizers will avoid confrontation and will look at what's good for the game of golf." Finchem said a task force is being formed at PGA headquarters in FL and they will meet with World Tour organizers Tuesday. Finchem also said that '95 start is "unlikely" and a '96 start would "also be difficult." Norman, interviewed by Nantz: "We had a good communication with Tim Finchem ... so only time will tell." Norman on the perception that these plans came so suddenly to the PGA Tour: "There was no maliciousness meant. We wanted to make sure our side was OK, and we did it that way" (CBS, 11/19). Norman, who left for a vacation in Australia, will not take part in the Tuesday meeting. The World Tour is scheduled to begin in '95 with eight $3M tournaments, all of them televised on Fox (Thomas Bonk, L.A. TIMES, 11/21). BATTLE LINES? Norman's business adviser Frank Williams is hopeful there is room for compromise with the PGA Tour: "Perhaps there is a compromise [that] we don't go with as many events in the first season." But Williams was firm on the World Tour's plan to start in '95, "no matter what" (Thomas Bonk, L.A. TIMES, 11/20). MORE REAX: Arnold Palmer: "My business, if I have any in this situation, is to be sure that they protect what they have right now -- and that is the PGA Tour." Peter Jacobsen didn't think the World Tour would be up in '95, but added: "I think we're on the right track, everyone's working together right now" ("Shoot-Out," CBS, 11/19). Columnist Thomas Boswell calls the World Tour a "brazen display of self-interest" from Norman (WASHINGTON POST, 11/19). -
FRESH OFF MEMPHIS ENTREE, CFL LOOKS TO HARTFORD
CFL Commissioner Larry Smith said he has talked with prospective owners in Hartford, CT, and "hopes the city will be part of the league's expansion plans." Sources indicate that two CT groups are interested in competiting for a team, but "their bids might be contingent on the building of a stadium in Hartford." Smith said a team in Hartford could start up as early as '96-97 if plans to build a stadium were initiated within the next year" (Greg Garber, HARTFORD COURANT, 11/19). Last week, Baltimore's CFL owner Jim Speros met with CT entrepreneur Bill Berkley about a Hartford team. Speros envisions a U.S. divison: Baltimore, Memphis, Oakland, San Antonio, Orlando, Birmingham, Hartford, and Shreveport (Ken Murray, Baltimore SUN, 11/20).
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HOCKEY HELD HOSTAGE -- DAY 52: CAUTIOUS OPTIMISM SWEEPS LAND
"The next round of talks on the NHL labor front should give us a pretty clear picture of whether this season will be salvaged," writes Mike Weaver in Sunday's SAN JOSE MERCURY NEWS. "Continued progress when the sides meet again [today] and Tuesday could signal an end to the lockout. Another impasse could sound the death knell for the season" (SAN JOSE MERCURY NEWS, 11/20). "Progress is one thing; a deal is yet another" (Bob McKenzie, TORONTO STAR, 11/19). One source close to the talks: "This thing could get done in a few hours if they really put their minds to it. .. But, and this is a big but, it could be just about done, something could happen over one single issue and you could almost be back to square one" (Dave Fay, WASHINGTON TIMES, 11/19). Despite the new "sense of urgency," neither side "has indicated a willingness to move off its basic themes" (Larry Brooks, N.Y. POST, 11/19). "The talks are not at the stage where issues have been checked off a list, but there certainly has been movement" (Len Hochberg, WASHINGTON POST, 11/19). The owners' "hard line" position is now "passe" (Gare Joyce, Toronto GLOBE & MAIL, 11/19). The two sides meet again today at an undisclosed location (Mult., 11/21). OOGA, BOOGA: In Boston, Kevin Paul Dupont writes, "All that still rests in the 500-pound gorilla known as the cap. If the players remain open to talk and relent on the myriad other critical issues, especially salary arbitration, then the owners could harvest enough small gains to give up the cap" (BOSTON GLOBE, 11/20). One GM "figures if the players are willing to do away with salary arbitration or drastically change it, the tax levy might not be as big a deal" (Jim Matheson, EDMONTON JOURNAL, 11/19). In a fax to all GMs, NHL Commissioner Gary Bettman "made it clear that 'contrary to press reports, the tax still is on the table'" (Red Fisher, MONTREAL GAZETTE, 11/19). Dave Fay reports the league offered to guarantee that the average salary would continue to rise at the same rate it has over the past few years -- 17% per season. One player: "I thought that's exactly what they didn't want" (WASHINGTON TIMES, 11/20). OLIVER STONE'S "N.H.L.": In Tampa, Roy Cummings reports on rumors resurfacing of a "pre-planned 50-game schedule and league- wide master plan to begin play no earlier than Jan. 1." The story was reportedly related by an exec from a Canadian NHL team to a "well-known player from a U.S.-based club on the East Coast." The plan, said to be hatched in NHL league offices late this summer, calls for the league to push the players until mid- December -- at which time they would either take the best offer on the table or "make one last push" (TAMPA TRIBUNE, 11/20). NERVOUS FOX EXECS? In New York, Steve Zipay reports on the "angst" at Fox over the potential loss of the all-star game on January 21 -- the scheduled debut of the NHL on Fox. The network has not been able to promote the game and no one is sure how players will be selected (NEWSDAY, 11/18). -
HOCKEY HELD HOSTAGE -- PART II: ONE MAN'S PLAN
In this morning's BOSTON GLOBE, Kevin Paul Dupont offers his proposal to end the lockout: the players would receive profit- sharing based on league-wide total attendance and average ticket costs on top of the salary levels the owners are presently guaranteeing, while the owners would gain the cost containment they are seeking through salary restraints. Assuming league attendance of 17,545,699 and an average ticket price of $40, ticket revenue (not including luxury boxes) would be $701,828,100. Profit-sharing of 15% would yield the NHLPA $105,274,200. At 46,240 man-games, each player would receive $2,276 extra per game -- a bonus of approximately 40% for the average NHLPA member. "Under the scenario offered above, the union ostensibly can name its price -- bound to increase each year -- for 'selling' the salary caps, drags, etc., that owners insist they need." REACTIONS: Dupont faxed his proposal to key players on both sides. NHL Commissioner Gary Bettman: "Sure, if we can move ahead with the tax plan we're proposing. ... [Also] gate receipts probably won't be our biggest growth area in the years ahead. We're probably looking more in areas such as pay- per-view, and added dollars from licensing and marketing. But overall, the notion of cutting them in on something, I have no problem with that." Bruins Player Rep Dave Reid: "The the owners can put the price of tickets where they want -- and then blame the players for it." Capitals GM David Poile: "We can't keep passing the price on to the fans." Agent Neil Abbott: "Whether it's pegged to attendance or some other revenue stream, it would be the owners saying to the players, 'You get to participate in the pie.'" Bruins President & GM Harry Sinden: "You should send it to David Stern and the NBA. I mean, you're only dealing here with a league in a profit position." NHLPA Exec Dir Bob Goodenow was one of those surveyed who did not respond (BOSTON GLOBE, 11/21).
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USTA RESISTS BID BY ATLANTA TO FLUSH THEM OUT OF QUEENS
USTA President J. Howard Frazer said, while his organization is grateful for Atlanta's interest in hosting the U.S. Open, "we have a contract with the city of New York, and we believe it's in the best interests of the tournament, the city and the fans that we stay here." Frazer did confirm that the cost of a new facility will exceed the original $180M "ceiling," but added that construction on the 23,000-seat stadium was expected to be completed in time for the '97 Open (N.Y. TIMES, 11/19).




