PEPSI:  According to Pepsi-Cola, the company posted its best
volume growth since '88. Total company U.S. case sales jumped
6.2% in '94.  Pepsi says its carbonated soft drink sales
increased 4.4%, compared to 3.5% for the overall soft drink
industry.  The company also notes that All-Sport became the
second best-selling sports beverage and credits that to its
partnership with the NCAA and its national ad campaign that
features Shaquille O'Neal (Pepsi).
     MILLER:  For the second time this week, Miller Brewing has
made changes in its ad agency roster.  Dean Scaros, CEO at Acaros
& Casselman Advertising said his agency has been hired by Miller
to handle several new-product assignments for which the total
billings were not disclosed.  Miller spokesperson Susan Henderson
said Scaros & Casselman would work on projects like Citro, a beer
with a slight lime flavor that was introduced in May (N.Y. TIMES,
2/3).
     SPORTS AUTHORITY:  The Sports Authority announced January
'95 sales of $59M, up 46.6% from its January, '94 sales of
$40.2M.  Store sales were up 14.9%.  TSA, which has 107 stores in
22 states, expanded by 27 stores last year (The Sports
Authority).

     ESPN and CS Crable Sportswear Inc. have agreed to jointly
produce and market a line of ESPN2 clothing.  The clothing will
feature the extreme sports carried on the network and include t-
shirts, sweatshirts and henleys (long sleeve t-shirt).  The new
line will be available by mid-March in department stores,
national retail chains and specialty goods stores nationwide.
ESPN Enterprises Dir Sharyn Taymor:  "We're excited to be working
with CS Crable, given the success they've had in the sportswear
business.  Their designs are hip, young and really fun.  We're
confident this line of sportswear will appeal to our young,
active ESPN2 audience" (ESPN).
     OTHER ESPN NOTES:  ESPN has reached a multi-year deal with
the ATP Tour in which ESPN, ESPN2 and ESPN Int'l will provide
extensive domestic and int'l coverage of the ATP Tour
Championship Series and the official year-end championships
(ESPN).

     For the first time, FINANCIAL WORLD dedicated an entire
issue to the state of the sports industry.  The annual FW issue
on the franchise values is due out in May.  In this issue, FW
attempts "to explain exactly how the industry has changed and
what is behind that change."  Some of the industry segments
examined: Labor, Hockey, Arena Football, Boxing, Tennis, Golf,
Sailing, Soccer, Horse Racing, Gambling, Satellite TV, Fan
Demographics, Stadiums, Auto Racing, Pro Wrestling and College
Sports.  Excerpts follow:
     INDUSTRY EVALUATION:  In the opening piece, Michael Ozanian
examines "sports as software" -- the growing trend to use sports
as a way to build revenues indirectly, through cable TV,
merchandise, advertising, etc.  This trend explains why franchise
values "have soared during the past few years even though profits
have fallen."  Ozanian writes, "Sports is not simply another big
business.  It is one of the fastest-growing industries in the
U.S., and it is intertwined with virtually every aspect of the
economy -- from media and apparel to food and advertising."  Some
stats:   TV rights fees for the four major sports more than
doubled to $1.5B in '93 from $704M in '88 -- an annualized rate
of 17%.  The annualized rate of nominal GDP growth over the same
period: 5.3%. Spending by U.S. & Canadian companies to sponsor
events increased 15%/year to $2.4B in '93 from $1.2B in '88.
Retail sales of licensed merchandise for the four major sports
hit $8.7B in '93, versus $2B in '88.
     LABOR:  In a piece headlined "Adam Smith faces off against
Karl Marx," Ozanian and Stephen Taub explain how the owners of
major sports teams and their players "shuffle between capitalism
and Communism as a matter of convenience.  The result:  strikes,
lockouts and angry fans."  Their suggestions for sports' labor
problems:  let all players become free agents as soon as their
contracts end; no salary cap but also no set minimum salaries, no
salary arbitration, no player drafts and allow franchises to
move.
     HOCKEY:  In an examination of the NHL's finances, Stephen
Taub explains how the growth of players' salaries has slowed each
year since '91 while the league  "revenues are about to explode.
So what's the problem?"  Taub notes that potentially before the
year 2000, 11 new arenas will open increasing each of those
team's revenue streams. "If the league had just made the
emotionally difficult decision to permit the weakest links to
move their franchises, the sport would have been in very solid
shape to make serious money and build its value as we head into
the next century."  In a separate piece, Jason Starr examines the
Sharks' marketing success, including a pending movie project.
     DEMOGRAPHICS:  Targeting the female audience is the focus of
this piece by Brooke Grabarek.  Noting the advent of more figure
skating on TV, Grabarek concludes: "Given the favorable trend of
female viewership and strong advertising support, it's a sure bet
that there will continue to be greater diversity of televised
sports."
     STADIUMS: Under the subhead, "Sports franchises are giving
local taxpayers sleepless nights," Andrew Osterland examines the
explosion of new facilities. "Why are these enormously expensive
new venues so critical to a franchise's financial success?  The
answer is simple: With media revenues leveling off and player
salaries rising, increased stadium income is the easiest way for
owners to stay ahead."   ARENA FOOTBALL:  Anthony Baldo profiles
the success of the League crediting it in part to AFL operating
as a single entity, without separate franchise owners.  AFL
Commissioner James Drucker predicts team values will "skyrocket"
to between $10-20M within three years.
     TENNIS:  Ever since SPORTS ILLUSTRATED "plastered 'Is Tennis
Dying?' on its cover last May, there has been endless banter
about the game's imminent demise," writes Gregory David.  But
David notes the men's game is "far from needing life support."
As for women's tennis, it "could use a bit more help."  David
concludes: "You can't help but remember what the Nancy Kerrigan
comeback story did for figure skating.  Hold the tennis
obituaries for a while."
     SOCCER:  Nick Gilber examines the pros and cons of starting
Major League Soccer, from the success of the '94 World Cup to the
unsuccessful NASL of the '80s.  Gilbert notes that both
McDonald's and Anheuser-Busch are in discussions about becoming
sponsors of Major League Soccer (FINANCIAL WORLD, 2/14 issue).

     Signal Apparel Co., following its recent acquisition of
sports and lifestyle T-Shirt company American Marketing Works,
has announced that it is in the process of acquiring two apparel
companies, Ocean Pacific and Trench Manufacturing.  The
acquisitions are expected to nearly double the annual revenue
base of Signal and create a "major vertically integrated" apparel
mill, manufacturer and marketer with key licenses in all major
sports (Signal).... Jazz forward Karl Malone will serve as
captain of this year's Dutch Boy "In the Paint" Healthy Families
America Team, a team consisting of 27 NBA centers and forwards
dedicated to child abuse prevention (NBA/Dutch Boy)....Tim
Rosaforte and Rick Lipsey's "Inside Golf" column in the week's
SPORTS ILLUSTRATED note that Nike Golf dropped Curtis Strange,
but still has 17 PGA Tour players under contract (SPORTS
ILLUSTRATED, 2/6 issue).

     Coinciding with the NCAA Women's Far West Regional
Championships, "Hoop Dreams" (the movie) will promote the Dream
Fair, an interactive basketball theme park that will appear at
UCLA's Drake Stadium March 23-27.  Attendees to the park will
have an on-hands weekend of basketball skills, games, hi-tech and
educational sessions.  Sponsorship benefits, according to
organizers, include "substantial reach" through retailers, video
distribution, community outreach, on-site signage and direct mail
to UCLA Alumni and community members.  The anticipated live
attendance is 30-35,000.  The Dream Fair is a pilot to a national
tour which will coincide with the video promotion, PBS airing,
merchandising roll-out and Turner Entertainment remake of the
"Hoop Dreams" movie.  For details, contact Kathi Sharpe-Ross at
L.A.-based Sharpe Public Relations (Sharpe).

     John Riddle, president of the Sporting Goods Manufacturing
Association, delivered his state of the industry address which
kicked off the start of the Super Show in Atlanta.  Riddle said
growth in the sporting goods industry will slow this year because
of "lagging footwear sales" and the baseball and hockey work
stoppages. He estimated '95 growth at 5.5%, down from the 6.3%
rise in '94.  Riddle foresees in-line skating, basketball and
billiards as the three biggest growth areas in the industry for
'95 (Chris Roush, ATLANTA CONSTITUTION, 2/3).
     PREVIEWS:  In a piece on the start of the Super Show, Glenn
Ruffenach notes how manufacturers are all excited about their new
sporting goods products just for women.  Rufenach continues, "If
women are the new kids on the block at the Super Show, the
comeback kid may be the in-line skating industry."  Just 18
months ago, "the only thing the in-line business was hitting was
a wall."  But now prices are "more varied," and the demographic
problem has "sorted itself out (the 17-and-under crowd now
accounts for 65% of sales)" (WALL STREET JOURNAL, 2/3).
     NEWS & NOTES:  Top Reebok athletes attending the Super Show
will conduct "virtual" chats with fans on the company's new
Internet site.  Some of the participants: Dave Johnson, Jon
Koncak, Steve Smith, Roger Clemens, Frank Thomas, Jimmy Connors,
Nancy Kerrigan and many others (Reebok)....ABC's "GMA" profiled
the Super Show.  ABC's New Product Specialist Alvin Kupperman
visited certain booths who have "hot products" this year.  Some
of the products:  new models of in-line skates and other exercise
equipment (ABC, 2/3).