RAWLINGS TO BECOME WHOLLY-OWNED SUBSIDIARY OF K2

K2 and Rawlings announced this morning the signing of an $84M stock-for-stock merger agreement in which Rawlings would become a wholly-owned subsidiary of K2. The transaction, subject to shareholder approval by both companies and regulatory review, is scheduled to be completed by spring '03 (THE DAILY).

JOHNSON, BELKIN TO PRESENT CASES TO NBA IN N.Y. TODAY

The WINSTON-SALEM JOURNAL reported that NBA Commissioner David Stern and members of the NBA Expansion Committee today will "hear presentations from the two groups hoping to land an expansion franchise for Charlotte." After the presentations, the NBA will announce a winner in "perhaps a matter of hours, perhaps a matter of days" (WINSTON-SALEM JOURNAL, 12/15). The AP reported that the presentations will last about 30 minutes, with another 30 minutes for questions from the committee (AP, 12/15).

The WASHINGTON POST reports that prospective owner and BET Founder Robert Johnson has "gained substantial momentum over the past few weeks and is in a good position" to secure the expansion franchise. However, the 14-member investment group that is led by Steve Belkin and former Celtics Larry Bird and M.L. Carr is "still very much in the running" (WASHINGTON POST, 12/16).

Johnson: "Since we're all paying the same price, it is strictly a beauty contest, and a beauty contest is not decided until everyone parades in front of the judges. So I don't know how I can be ahead one day and Steve Belkin's group is ahead one day, because neither of us has gone before the selection committee. … They've essentially told us what they want us to talk about – talk about your background, talk about your financing plan, how you plan to manage the team, your approach to operating a franchise" (WINSTON-SALEM JOURNAL, 12/16).

Belkin: "We're optimistic, but it's a tight competition. I think it's probably 50-50, it's a toss-up" (WINSTON-SALEM JOURNAL, 12/16).

Charlotte-basedIMG/Muhleman Marketing President Max Muhleman, commenting on how Johnson's minority status plays in the league's decision: "I think that will be a factor – a unique edge. The league and our community would be proud of that. It makes him a little like Jackie Robinson, and that's an edge" (CHARLOTTE OBSERVER, 12/16).

HEAVY ACTIVITY EXPECTED IN TODAY'S RULE FIVE DRAFT

The annual baseball winter meetings conclude today in Nashville, TN, and the K.C. STAR reports that the "tight financial conditions hampering many teams could produce more activity than usual this morning in the Rule 5 draft of minor-league players" (K.C. STAR, 12/16). The AP reported that MLB GMs "probably will make a recommendation of a minimum age for bat boys" before the meetings close (AP, 12/14).

VINCENT URGES SELIG TO ACT IN THE BEST INTERESTS OF THE GAME

Former MLB Commissioner Fay Vincent writes an Op-Ed in today's N.Y. Times on MLB's possible reinstatement of Pete Rose, and writes, "from my seat I see no reason why Mr. Rose should be allowed back in the game." Vincent continues that the original outline for Rose's return was to "admit publicly to his gambling and to 'reconfigure' his life," but "Mr. Rose has admitted to nothing and remains a habitué of the better dog tracks. He's a gambler." Vincent implores MLB Commissioner Bud Selig to "act in the best interests of the game" by not reinstating Rose (N.Y. TIMES, 12/16).

SUNDAY TELETHON RAISED $654,224 FOR GOPHER SPORTS TEAMS

The Minneapolis STAR TRIBUNE reports that a telethon yesterday run by Save Gopher Sports to sustain the Univ. of MN men's gymnastics team and men's and women's golf teams "generated $654,244, a figure that will grow when money from an online auction on the gophersports.com Web site is added." The three sports were "were earmarked for elimination" unless $2.7M was raised. The group has now raised $2.1M (Minneapolis STAR TRIBUNE, 12/16). The ST. PAUL PIONEER PRESS noted that the telethon was the "latest, and perhaps most aggressive, attempt by school supporters to reach out to the public for help" (ST. PAUL PIONEER PRESS, 12/15).

SHAQUILLE O'NEAL GRACES "TV GUIDE" COVER IN SANTA SUIT

Lakers C Shaquille O'Neal, dressed in a Santa Claus suit, is featured on this week's cover of "TV Guide," which hits newsstands today. O'Neal's Santa suit was designed especially for the shoot by designer Maggie Barry in 24 hours. The Lakers host the Kings as the second game of a December 25 NBA doubleheader, marking ABC's inaugural broadcast of its new TV deal with the NBA. The Nets host the Celtics in the opener at 6:00pm ET (THE DAILY).

A LIGHTER BUZZ

The ST. LOUIS POST-DISPATCH reports that the NFL Cardinals dressed in all-white uniforms for the first time in 13 years during last night's game against the Rams. Cardinals Owner Bill Bidwill: "We just thought it would be fun to do. The coaches didn't know about it, either. We kept it quiet. You know, I helped design those uniforms back in the 1960s. I've always liked the look" (ST. LOUIS POST-DISPATCH, 12/16).

The SEATTLE POST-INTELLIGENCER reports that the Seahawks "came out in a new look yesterday – white pants and jerseys with blue and green trim" (SEATTLE POST INTELLIGENCER, 12/16).

Eagles Owner Jeffrey Lurie, on playing the final regular-season game at Veterans Stadium yesterday against the Redskins: "It's nice to be able to say that it's the last regular-season game at the dump. But it's also nice to say that we'd like to have two more home games at the dump and celebrate a little bit here on the NFC Championship" (PHILADELPHIA DAILY NEWS, 12/16).

The WASHINGTON POST reports that US Airways Arena was imploded yesterday, and a 460,000-square-foot shopping mall is "scheduled to rise in its place by fall." Known as the Cap Centre, the arena "was a state-of-the-art venue for basketball and hockey" when it opened in the mid '70s (WASHINGTON POST, 12/16).

ATTENDANCE WATCH:

• The CINCINNATI ENQUIRER reports that 42,092 tickets were distributed for Sunday's Jaguars-Bengals game at Paul Brown Stadium, the "smallest announced crowd of the 23 games" in the stadium's history. The Bengals are now 1-13 on the season, tying a franchise record for losses (CINCINNATI ENQUIRER, 12/16).

• The WASHINGTON POST reports that 8,498 people attended Sunday's UCLA-Stanford NCAA men's soccer championship at Gerald J. Ford Stadium in Dallas (WASHINGTON POST, 12/16).

• The PITTSBURGH POST-GAZETTE reports that 6,624 people attended Sunday's St. Vincent-St. Mary–New Castle high school basketball game, featuring LeBron James, in the Steel City Hoopla at Mellon Arena. Organizers were hoping for 8,000 for Sunday's games (PITTSBURGH POST-GAZETTE, 12/16).

• The WINNIPEG SUN reports that the The Power and Glamour of Women's Tennis exhibition matches featuring Monica Seles and Anna Kournikova drew a crowd estimated at 6,000 Sunday night in Winnipeg and 9,000 Saturday night in Minneapolis (WINNIPEG SUN, 12/16).

• The ATLANTA CONSTITUTION reported that with "ticket sales sluggish" for
  Saturday's Evander Holyfield-Chris Byrd heavyweight bout in at Caesars Palace in Atlantic City, promoter Don King "did all they could to fill the seats." Caesars employees were "allowed to purchase tickets, originally scaled from $850 to $75, for $5" (ATLANTA CONSTITUTION, 12/15). The bout drew 8,543 (THE DAILY).

TODAY'S EVENTS

CART President & CEO Chris Pook today will make an announcement regarding the future of CART in Portland at an 11:00am PT press conference at G.I. Joe's, Hayden Meadow Stores in Portland. OR Sports Authority CEO Drew Mahalic, Portland OR Visitors Association President & CEO Joe D'Alessandro and Portland Rose Festival Association President Jim Franzen will attend (THE DAILY).

The Mavericks will host an autograph fundraiser for the U.S. Fund for UNICEF from 3:00-4:30pm CT at the Dallas Parkway Pier 1 Imports. Mavericks G Steve Nash, F Dirk Nowitzki and F Eduardo Najera, along with Wheelchair Mavericks players, will sign autographs for people who make a monetary donation to UNICEF (THE DAILY).

Callaway Golf CEO Ron Drapeau and Exec VP & CFO Brad Holiday will host a conference call with financial analysts and investors at 1:30pm PT. The call can be accessed at the company's Web site (THE DAILY).

EARNINGS ANNOUNCEMENTS

Below are this week's confirmed earnings announcements for sports-business related companies (THE DAILY).

IN OTHER NEWS….

This week's cover of TIME offers "Whitewashing The Past," a look at U.S. Sen. Trent Lott's verbal gaffe. Meanwhile, NEWSWEEK also examines Lott under the header, "Race And The Rise Of Trent Lott" (THE DAILY).

The N.Y. TIMES reports that Time Inc. is "expected to announce today that Ned Desmond, currently President of the company's Business 2.0 magazine, has been chosen to oversee the integration of Time Inc. content into the AOL service." His role will also include "shaping the digital strategies of magazines" including SI that are now scheduled to become part of AOL (N.Y. TIMES, 12/16).

The BOSTON GLOBE reports that Fred Davis, former Editor of both PC Week and PC Magazine, and a "band of unemployed industry veterans … have created DigiT," a magazine the group thinks "will become the first in a new wave of publications that help everyday readers … better understand how high-tech gadgets can change their lives." The 144-page pilot issue hits newsstands this week and sells for $4.95 (BOSTON GLOBE, 12/16).

N.Y.-based economic group The Conference Board "forecasts the average U.S. consumer household will spend $483.00 this holiday season," while the American Express Retail Index "predicts the average will be $1,656" (CHARLOTTE OBSERVER, 12/15).

The N.Y. TIMES reports that "most forecasts call for a moderate increase in ad spending next year of [3-4%] over this year, which is likely to end with a gain of [2-3%]" from '01. Radio Advertising Bureau President & CEO Gary Fries: "Planning seems to be getting back to normal and confidence seems to be returning, short of a devastating event" (N.Y. TIMES, 12/16).

The L.A. TIMES noted that TV engineer Gilbert Wyland died December 2 at his Valencia home. Wyland's achievements include the "first telecasts of the Rose Parade and the Winter Olympics" (L.A. TIMES, 12/14).

FINAL JEOPARDY!

Friday's "Final Jeopardy!" category was "U.S. History."

"In 1992 Nathan E. Cook, the last veteran of this war, died."

LAUGH TRACK

THE MONOLOGUES:

CBS' David Letterman: "Pretty cold over there on Park Avenue. A couple of rats ganged up on a poodle and stole its sweater. ... It's so cold the hookers in Times Square have their cold weather special: fat guys are free. ... Tomorrow night is another fantastic Christmas special (on CBS). An angel comes down to earth and shows Trent Lott what the country would have been like if Strom Thurmond was president. It's a wonderful program. ... Trent Lott says that his offensive remarks were a mistake of the head and not the heart. I want to tell you something. That rabid squirrel hairpiece you're wearing, that's a mistake of the head" ("Late Show," CBS, 12/13).

NBC's Jay Leno: "Who do you think has a better chance to still be around in January: Saddam Hussein or Trent Lott? ... Even President Bush is criticizing Lott for his controversial statements. That's when you know you're in trouble, when Bush is attacking you for misspeaking. ... It seems 40-years ago at Ole Miss, (Lott) led the battle to keep blacks out of his fraternity, Phi Beta Cracker. ... Actually, Lott is still a member of an all-white fraternity. It's called the U.S. Senate. ... Big problems today at the Boston Archdiocese Christmas party. Two priests hit on the Little Drummer Boy. ... Cardinal Bernard Law has resigned, and he said he was doing it for the kids. ... Al Gore is going to host ["SNL"]. The network figures if everyone who didn't buy his book tunes in, it'll be huge. ... Marvel Comics is introducing the first openly gay comic book character. ... It's called the Rawhide Kid ... and he has a lesbian cowgirl friend by the name of Big Butch Cassidy" ("Tonight Show," NBC, 12/13).

LATE NIGHT LAUGHS:

Last Friday's Top Ten list was "Top Ten Ways New York City Is Preparing For A Transit Strike ("Late Show," CBS, 12/13).

During the news segment on last Saturday's edition of NBC's "SNL," cast member Jimmy Fallon on LeBron James' national TV debut: "He scored 31 points in his national television debut this week. This would have never happened if Strom Thurmond were president" ("SNL," NBC, 12/14).

SUNDAY NIGHT'S TV MONITOR

ESPN's 11:30pm ET "SportsCenter" (late due to Cardinals-Rams) led with Vikings-Saints, Seahawks-Falcons and Jets-Bears.

WEEKEND BOX OFFICE

The HOLLYWOOD REPORTER notes that the estimate for this weekend's top 12 films was $90.7M, "up a small 3% from the comparable frame last year," and projects the total for all films this weekend "to be in the mid-to-high $90[M] range, slightly higher than last year's $92.7[M] take" (HOLLYWOOD REPORTER, 12/16).

FINAL JEOPARDY ANSWER

"What was the Spanish-American War?"

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