Three trends from the upfront season Kroenke comfortable wearing 2nd hat From the Field of Risk Management Plaintiff seeks documents from FSG Demos key to Microsoft’s MLS deal People: Executive transactions Reinsdorf values people he knows, trusts Racetracks attract music festivals For the WNBA, time for a clutch 3 Super Bowl’s numerals: Still a classic
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SBJ/September 30 - October 6, 2002/For The Record
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Broadcasting news
TELEVISIONThrough a deal with Florida International University, Sunshine Network is adding the school's home game against in-state rival Jacksonville University to its lineup of local and regional college football telecasts. Live coverage of the game will air at 8 p.m. Oct. 31.
RADIOYearlong statewide coverage of all high school sports in 2002-03 will be featured in a package crafted between the Michigan High School Athletic Association and the Michigan Talk Radio Network.
WNSA-FM in Buffalo added former Buffalo Bills coach Marv Levy to the station's "WNSA Pre-Game Report."
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Business news
BUSINESS NOTESThe San Francisco Giants will almost double the size of a wall topped with seats that they are building along McCovey Cove at China Basin Park because of the response from fans who want to participate in the McCovey Point Tile Program, which has sold more than 3,800 tiles to date. The program lets fans buy a tile that will be embedded in the top of the seat wall and etched with a personalized message. Money from the tiles goes toward park construction.
Barrett Sports Group LLC was hired by the city of Auburn Hills, Mich., to provide professional consulting services for the Palace of Auburn Hills valuation.
The Bowling Proprietors Association of America has new group-purchasing agreements with Omega Pattern Works, offering member discounts on carpeting, and Party Direct, a party supplies company, to add to the association's Smart Buy Group Purchasing Program. The program includes companies that have agreed to offer products and services at a discounted price exclusively to BPAA member bowling centers.
Blue Focus Management retained the consulting services of Todd Optican.
The new Class A affiliate of the Cleveland Indians will be known as the Lake County (Ohio) Captains when they begin play in April. The team has been operating under the name Lake County Professional Baseball since February.
Pinehurst Golf Club and Club Tee Time signed an agreement for Club Tee Time to offer stay-and-play packages at the North Carolina golf and vacation site.
The Novi (Mich.) City Council renewed its contract with Suburban Arena Management LLC of Farmington Hills, Mich. Suburban will continue to manage Novi Ice Arena through September 2005.
The CHL Indianapolis Ice introduced a commemorative 15th anniversary logo. The logo has a bear head between the Roman numeral XV, with the dates 1988-2002 as well as this year's slogan, "15 Years on the Edge."
Mark McClure, owner of the USBL's Portland Mountain Cats, partnered with NBA New Orleans Hornets player David Wesley and his father, Don Wesley, to form the expansion Texas Rim Rockers. The team will play most of its games at the Fort Worth Convention Center and a few in the Dallas area.
United Turf Industries of Wichita, Kan., developer of SofTrak Putting Greens, established a SofTrak dealership in south Florida through Lighthouse Point resident Jeff Graham. Graham will cover Broward and Palm Beach counties via SofTrak of South Florida Inc.
MERGERS AND ACQUISITIONSIndependent public relations firm Edelman bought independent Atlanta firm The Headline Group. In merging Edelman's Atlanta operations with those of The Headline Group, the firm more than doubled its regional presence.
European sports, entertainment and lifestyle marketing company CSS Stellar Plc acquired a minority interest in Hambric Sports Management of Dallas and acquired 50 percent of the assets of StandOut Sports and Entertainment. As part of the Hambric deal, Rocky Hambric will become CEO of Stella Golf, leading the company's efforts in North America and Europe.
The Seattle Thunderbirds of the Western Hockey League were sold to a local ownership group headed by Russ Farwell, the Thunderbirds' general manager.
AWARDSBliss & Nyitray received the Grand Award in the Florida Institute of Consulting Engineers 2002 Engineering Excellence Awards competition for its work on Heinz Field in Pittsburgh.
The Gary (Ind.) SouthShore RailCats and Newcomb Print Communications received a Bronze Award from the International Association of Printing House Craftsmen in the International Gallery of Superb Printing competition.
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Charity news
Lea Ann Parsley, a silver medalist at the 2002 Salt Lake City Games in skeleton and the 1999 Ohio Firefighter of the Year, helped the fourth annual Arby's Charity Tour Cleveland raise $125,000 for Big Brothers Big Sisters of Greater Cleveland and the Arby's Foundation.
Members of the Carolina Hurricanes Community Relations staff helped distribute sports equipment, donated by Hurricanes employees, on Sept. 20 at Oxford Manor Achievement School in Durham, N.C. The Hurricanes were aided in the project by Todd Lewis of EMC-2, a local provider of storage systems, software and services.
The Visa Champions Creating Champions program, in which 30 Olympic and national team athletes are matched with Park City and Salt Lake City, Utah, youths in a mentoring program, was introduced Sept. 25 at Utah Olympic Park.
Source: Street & Smith's SportsBusiness Journal research
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Cola Wars: Pouring rights at sports venues
The following information showcases which companies have the pouring-rights business at the facilities that are home to teams from sports' Big Four leagues (MLB, NBA, NHL and NFL), MLS and the WNBA. Also listed are each of the venues' permanent tenants.
ANAHEIM
Arrowhead Pond of AnaheimTenant: NHL Mighty Ducks
Pouring rights: Coca-Cola
Edison International
FieldTenant: MLB Angels
Pouring rights (since): Pepsi (1998)
ARLINGTON, TEXAS
Ballpark at ArlingtonTenant: MLB Rangers
Pouring rights (since): Coca-Cola, Dr Pepper (1994)
ATLANTA
Georgia DomeTenants: NFL Falcons, NCAA Chick-fil-A Peach Bowl
Pouring rights (since): Coca-Cola (1992)
Philips ArenaTenants: NBA Hawks, NHL Thrashers
Pouring rights: Coca-Cola (1999)
Turner FieldTenant: MLB Braves
Pouring rights (since): Coca-Cola (1997)
AUBURN HILLS, MICH.
Palace of Auburn HillsTenant: NBA Pistons, WNBA Shock, AFL Fury
Pouring rights: Coca-Cola
BALTIMORE
Oriole Park at Camden YardsTenant: MLB Orioles
Pouring rights: Coca-Cola
Ravens StadiumTenant: NFL Ravens
Pouring rights (since): Pepsi (2002)
BOSTON
Fenway ParkTenant: MLB Red Sox
Pouring rights: Coca-Cola
FleetCenterTenants: NBA Celtics, NHL Bruins
Pouring rights: Coca-Cola
BUFFALO
HSBC ArenaTenants: NHL Sabres, AFL Destroyers, NLL Bandits
Pouring rights (since): Pepsi (1996)
CALGARY
Pengrowth SaddledomeTenants: NHL Flames, NLL Roughnecks, WHL Hitmen
Pouring rights (since): Coca-Cola (at least 1995)
CHARLOTTE
Charlotte ColiseumTenant: WNBA Sting, AFL Cobras*
Pouring rights (since): Coca-Cola (1988)
Ericsson StadiumTenants: NFL Panthers, NCAA Continental Tire Bowl
Pouring rights (since): Coca-Cola (1996)
CHICAGO
Comiskey ParkTenant: MLB White Sox
Pouring rights (since): Pepsi (2001)
Soldier Field**Tenants: NFL Bears, MLS Fire
Pouring rights (since): Coca-Cola (1986)
United Center Tenants: NBA Bulls, NHL Blackhawks
Pouring rights (since): Pepsi (2000)
Wrigley FieldTenant: MLB Cubs
Pouring rights (since): Pepsi (early 1980s)
CINCINNATI
Cinergy FieldTenant: MLB Reds
Pouring rights (since): Pepsi (2000)
Paul Brown StadiumTenant: NFL Bengals
Pouring rights (since): Coca-Cola (2000)
CLEVELAND
Cleveland Browns StadiumTenant: NFL Browns
Pouring rights (since): Pepsi (1999)
Gund ArenaTenants: NBA Cavaliers, WNBA Rockers, AHL Barons
Pouring rights (since): Coca-Cola (1994)
Jacobs FieldTenant: MLB Indians
Pouring rights (since): Pepsi (1994)
COLUMBUS
Columbus Crew StadiumTenant: MLS Crew
Pouring rights (since): Pepsi (1999)
Nationwide ArenaTenants: NHL Blue Jackets, NLL Landsharks
Pouring rights (since): Pepsi (2000)
DALLAS
American Airlines CenterTenants: NBA Mavericks, NHL Stars, AFL Desperados
Pouring rights (since): Dr Pepper (2001)
Cotton BowlTenants: MLS Burn, NCAA SBC Cotton Bowl
Pouring rights (since): Pepsi (2000)
DENVER
Coors FieldTenant: MLB Rockies
Pouring rights (since): Coca-Cola (1995)
Invesco Field at Mile
HighTenants: NFL Broncos, MLS Rapids Pouring rights (since): Coca-Cola (2001)
Pepsi CenterTenants: NBA Nuggets, NHL Avalanche, AFL Crush*, NLL Power*
Pouring rights (since): Pepsi (1999)
DETROIT
Comerica ParkTenant: MLB Tigers
Pouring rights (since): Pepsi (2000)
Ford FieldTenants: NFL Lions, NCAA Motor City Bowl
Pouring rights (since): Pepsi (2002)
Joe Louis ArenaTenant: NHL Red Wings
Pouring rights: Coca-Cola
EAST RUTHERFORD, N.J.
Continental Airlines ArenaTenants: NBA Nets, NHL Devils, AFL Gladiators, NLL Storm, Seton Hall University men's basketball
Pouring rights (since): Pepsi (1999)
Giants StadiumTenants: NFL Giants, NFL Jets, MLS MetroStars
Pouring rights (since): Pepsi (1999)
EDMONTON
Skyreach CentreTenant: NHL Oilers
Pouring rights (since): Coca-Cola (1994)
FOXBORO, MASS.
Gillette StadiumTenants: NFL Patriots, MLS Revolution
Pouring rights (since): Pepsi (2002)
GREEN BAY
Lambeau FieldTenant: NFL Packers
Pouring rights (since): Coca-Cola (2002)
HOUSTON
Compaq CenterTenants: NBA Rockets, WNBA Comets, AHL Aeros
Pouring rights: Coca-Cola
Minute Maid FieldTenant: MLB Astros
Pouring rights (since): Coca-Cola (2000)
Reliant StadiumTenants: NFL Texans, Houston Livestock Show & Rodeo, NCAA Houston Bowl
Pouring rights (since): Coca-Cola (2002)
INDIANAPOLIS
Conseco FieldhouseTenants: NBA Pacers, WNBA Fever, CHL Ice
Pouring rights (since): Pepsi (1999)
RCA DomeTenant: NFL Colts
Pouring rights (since): Coca-Cola (1998)
IRVING, TEXAS
Texas StadiumTenant: NFL Cowboys
Pouring rights (since): Pepsi (1995)
JACKSONVILLE
Alltel StadiumTenants: NFL Jaguars, NCAA Toyota Gator Bowl
Pouring rights (since): Coca-Cola (1995)
KANSAS CITY
Arrowhead StadiumTenant: NFL Chiefs, MLS Wizards
Pouring rights: Coca-Cola
Kauffman StadiumTenant: MLB Royals
Pouring rights (since): Pepsi (1996)
LOS ANGELES
Dodger StadiumTenant: MLB Dodgers
Pouring rights: Coca-Cola
Staples CenterTenants: NBA Clippers, NBA Lakers, NHL Kings, AFL Avengers, WNBA Sparks
Pouring rights (since): Pepsi (1999)
MEMPHIS
Pyramid ArenaTenant: NBA Grizzlies
Pouring rights: Pepsi
MIAMI
AmericanAirlines ArenaTenants: NBA Heat, WNBA Sol
Pouring rights (since): Coca-Cola (2000)
Pro Player StadiumTenants: MLB Marlins, NFL Dolphins, Florida Atlantic University football, NCAA FedEx Orange Bowl
Pouring rights (since): Coca-Cola (1987)
MILWAUKEE
Bradley CenterTenants: NBA Bucks, AHL Admirals, MISL Wave, Marquette University men's and women's basketball
Pouring rights (since): Pepsi (1999)
Miller ParkTenant: MLB Brewers
Pouring rights (since): Pepsi (2000)
MINNEAPOLIS
Hubert H. Humphrey MetrodomeTenants: MLB Twins, NFL Vikings, University of Minnesota football
Pouring rights: Coca-Cola
Target CenterTenants: NBA Timberwolves, WNBA Lynx
Pouring rights (since): Pepsi (1994)
MONTREAL
Bell CentreTenants: NHL Canadiens, NLL Express
Pouring rights (since): Coca-Cola (1996)
Olympic StadiumTenant: MLB Expos
Pouring rights: Coca-Cola
NASHVILLE
Gaylord Entertainment CenterTenant: NHL Predators
Pouring rights (since): Pepsi (1998)
The ColiseumTenants: NFL Titans, Tennessee State University football, NCAA Music City Bowl
Pouring rights (since): Coca-Cola (1999)
NEW ORLEANS
Louisiana SuperdomeTenant: NFL Saints
Pouring rights (since): Coca-Cola (1985)
New Orleans ArenaTenants: NBA Hornets, Tulane University men's basketball
Pouring rights: Coca-Cola
NEW YORK CITY
Madison Square GardenTenants: NBA Knicks, NHL Rangers, WNBA Liberty
Pouring rights (since): Coca-Cola (at least 1990)
Nassau Veterans Memorial
ColiseumTenants: NHL Islanders, AFL Dragons, NLL Saints
Pouring rights (since): Pepsi (2000)
Shea StadiumTenant: MLB Mets
Pouring rights (since): Pepsi (1998)
Yankee StadiumTenant: MLB Yankees
Pouring rights (since): Coca-Cola (1997)
OAKLAND
Arena in OaklandTenant: NBA Warriors
Pouring rights (since): Coca-Cola (1997)
Network Associates
ColiseumTenants: MLB Athletics, NFL Raiders
Pouring rights (since): Pepsi (1999)
ORCHARD PARK, N.Y.
Ralph Wilson StadiumTenant: NFL Bills
Pouring rights: Pepsi
ORLANDO
TD Waterhouse CentreTenants: NBA Magic, WNBA Miracle, AFL Predators
Pouring rights (since): Pepsi (1989)
OTTAWA
Corel CentreTenants: NHL Senators, NLL Rebel
Pouring rights (since): Coca-Cola (1996)
PASADENA, CALIF.
Rose BowlTenants: MLS Galaxy, NCAA Rose Bowl
Pouring rights: Coca-Cola
PHILADELPHIA
First Union CenterTenants: NBA 76ers, NHL Flyers, NLL Wings
Pouring rights (since): Pepsi (1996)
Veterans StadiumTenants: MLB Phillies, NFL Eagles
Pouring rights (since): Coca-Cola (1971)
PHOENIX
America West ArenaTenants: NBA Suns, NHL Coyotes, AFL Rattlers, WNBA Mercury
Pouring rights (since): Coca-Cola (1992)
Bank One BallparkTenants: MLB Diamondbacks, NCAA Insight.com Bowl
Pouring rights (since): Pepsi (1996)
PITTSBURGH
Heinz FieldTenants: NFL Steelers, University of Pittsburgh football
Pouring rights (since): Coca-Cola (2001)
Mellon ArenaTenant: NHL Penguins
Pouring rights: Coca-Cola
PNC ParkTenant: MLB Pirates
Pouring rights: Pepsi (2001)
PORTLAND
Rose GardenTenant: NBA Trail Blazers, WNBA Fire
Pouring rights (since): Coca-Cola (1995)
RALEIGH
RBC CenterTenants: NHL Hurricanes, North Carolina State University men's basketball
Pouring rights (since): Pepsi (1998)
SACRAMENTO
Arco ArenaTenants: NBA Kings, WNBA Monarchs
Pouring rights (since): Pepsi (1999)
SALT LAKE CITY
Delta CenterTenants: NBA Jazz, WNBA Starzz
Pouring rights (since): Coca-Cola (1992)
SAN ANTONIO
SBC CenterTenants: NBA Spurs, San Antonio Livestock Show and Rodeo, AHL Rampage, NCAA Alamo Bowl
Pouring rights: Coca-Cola (2002)
SAN DIEGO
Qualcomm StadiumTenants: MLB Padres, NFL Chargers, San Diego State University football, NCAA Holiday Bowl
Pouring rights (since): Coca-Cola (at least 1991)
SAN FRANCISCO
49ers Stadium at Candlestick PointTenant: NFL 49ers
Pouring rights: Coca-Cola
Pacific Bell ParkTenants: MLB Giants, NCAA San Francisco Bowl*
Pouring rights (since): Coca-Cola (2000)
SAN JOSE
HP Pavilion at San JoseTenants: NHL Sharks, AFL SaberCats
Pouring rights (since): Pepsi (1993)
Spartan StadiumTenants: MLS Earthquakes, WUSA CyberRays, San Jose State University soccer and football, NCAA Silicon Valley Classic
Pouring rights (since): Pepsi (1994)
SEATTLE
KeyArenaTenants: NBA SuperSonics, WNBA Storm, WHL Thunderbirds
Pouring rights: Coca-Cola
Safeco FieldTenant: MLB Mariners
Pouring rights (since): Pepsi (1999)
Seahawks Stadium and
Exhibition CenterTenants: NFL Seahawks, NCAA Seattle Bowl*
Pouring rights (since): Coca-Cola (2002)
ST. LOUIS
Busch StadiumTenant: MLB Cardinals
Pouring rights: Coca-Cola
Edward Jones Dome at
America's CenterTenant: NFL Rams
Pouring rights (since): Coca-Cola (1995)
Savvis CenterTenant: NHL Blues
Pouring rights: Pepsi (1994)
ST. PAUL, MINN.
Xcel Energy CenterTenant: NHL Wild
Pouring rights (since): Coca-Cola (2000)
ST. PETERSBURG, FLA.
Tropicana FieldTenant: MLB Devil Rays
Pouring rights (since): Pepsi (1996)
SUNRISE, FLA.
Office Depot CenterTenant: NHL Panthers
Pouring rights (since): Coca-Cola (1998)
TAMPA
St. Pete Times ForumTenants: NHL Lightning, AFL Storm
Pouring rights (since): Coca-Cola (1996)
Raymond James StadiumTenants: NFL Buccaneers, University of South Florida football, NCAA Outback Bowl
Pouring rights (since): Coca-Cola (1999)
TEMPE, ARIZ.
Sun Devil StadiumTenants: NFL Cardinals, Arizona State University football, NCAA Tostitos Fiesta Bowl
Pouring rights: Coca-Cola
TORONTO
Air Canada CentreTenants: NBA Raptors, NHL Maple Leafs, AFL Phantoms, NLL Rock
Pouring rights (since): Coca-Cola (1999)
SkyDomeTenants: MLB Blue Jays, CFL Argonauts
Pouring rights (since): Coca-Cola (1989; Pepsi in 2000 only)
VANCOUVER
General Motors PlaceTenants: NHL Canucks, NLL Ravens
Pouring rights (since): Coca-Cola (1995)
WASHINGTON, D.C.
FedEx FieldTenant: NFL Redskins
Pouring rights (since): Coca-Cola (1997)
MCI CenterTenants: NBA Wizards, NHL Capitals, WNBA Mystics, Georgetown University men's basketball
Pouring rights (since): Coca-Cola (1997)
Robert F. Kennedy Memorial
StadiumTenants: MLS United, WUSA Freedom
Pouring rights (since): Pepsi (1998)
* Expansion team or relocated event that has yet to be featured at this venue
** The Bears are playing their home games this season at the University of Illinois' Memorial Stadium in Champaign, Ill., while Soldier Field undergoes renovations. Construction is scheduled to be completed in time for the 2003 NFL season. Coca-Cola has the pouring rights at Memorial Stadium.
Notes: Lengths of deals provided where available. Some teams may have marketing relationships with beverage companies other than the one that holds the venue's pouring rights.
Sources: Street & Smith's SportsBusiness Journal research, the concessionaires, vendors, teams and facilities
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Complete For the Record
MARKETING NEWS
SPONSORSHIPSColorado Time Systems LLC was selected by U.S. Water Polo Inc. as its official scoring and timing company. The two-year deal has a two-year option.
Duofold agreed to a four-year contract extension as the official high performance base layer apparel supplier for USA Luge.
The PGA Tour and Pennsylvania-based 84 Lumber Co. agreed to a four-year title sponsorship beginning in 2003. The 84 Lumber Classic of Pennsylvania will be played on the Mystic Rock Golf Course at the Nemacolin Woodlands Resort & Spa in Farmington, Pa. 84 Lumber replaces SEI Investments as the title sponsor of the PGA Tour's annual Pennsylvania event.
BUSINESS NEWS
BUSINESS NOTESThe San Francisco Giants will almost double the size of a wall topped with seats that they are building along McCovey Cove at China Basin Park because of the response from fans who want to participate in the McCovey Point Tile Program, which has sold more than 3,800 tiles to date. The program lets fans buy a tile that will be embedded in the top of the seat wall and etched with a personalized message. Money from the tiles goes toward park construction.
Barrett Sports Group LLC was hired by the city of Auburn Hills, Mich., to provide professional consulting services for the Palace of Auburn Hills valuation.
The Bowling Proprietors Association of America has new group-purchasing agreements with Omega Pattern Works, offering member discounts on carpeting, and Party Direct, a party supplies company, to add to the association's Smart Buy Group Purchasing Program. The program includes companies that have agreed to offer products and services at a discounted price exclusively to BPAA member bowling centers.
Blue Focus Management retained the consulting services of Todd Optican.
The new Class A affiliate of the Cleveland Indians will be known as the Lake County (Ohio) Captains when they begin play in April. The team has been operating under the name Lake County Professional Baseball since February.
Pinehurst Golf Club and Club Tee Time signed an agreement for Club Tee Time to offer stay-and-play packages at the North Carolina golf and vacation site.
The Novi (Mich.) City Council renewed its contract with Suburban Arena Management LLC of Farmington Hills, Mich. Suburban will continue to manage Novi Ice Arena through September 2005.
The CHL Indianapolis Ice introduced a commemorative 15th anniversary logo. The logo has a bear head between the Roman numeral XV, with the dates 1988-2002 as well as this year's slogan, "15 Years on the Edge."
Mark McClure, owner of the USBL's Portland Mountain Cats, partnered with NBA New Orleans Hornets player David Wesley and his father, Don Wesley, to form the expansion Texas Rim Rockers. The team will play most of its games at the Fort Worth Convention Center and a few in the Dallas area.
United Turf Industries of Wichita, Kan., developer of SofTrak Putting Greens, established a SofTrak dealership in south Florida through Lighthouse Point resident Jeff Graham. Graham will cover Broward and Palm Beach counties via SofTrak of South Florida Inc.
MERGERS AND ACQUISITIONSIndependent public relations firm Edelman bought independent Atlanta firm The Headline Group. In merging Edelman's Atlanta operations with those of The Headline Group, the firm more than doubled its regional presence.
European sports, entertainment and lifestyle marketing company CSS Stellar Plc acquired a minority interest in Hambric Sports Management of Dallas and acquired 50 percent of the assets of StandOut Sports and Entertainment. As part of the Hambric deal, Rocky Hambric will become CEO of Stella Golf, leading the company's efforts in North America and Europe.
The Seattle Thunderbirds of the Western Hockey League were sold to a local ownership group headed by Russ Farwell, the Thunderbirds' general manager.
AWARDSBliss & Nyitray received the Grand Award in the Florida Institute of Consulting Engineers 2002 Engineering Excellence Awards competition for its work on Heinz Field in Pittsburgh.
The Gary (Ind.) SouthShore RailCats and Newcomb Print Communications received a Bronze Award from the International Association of Printing House Craftsmen in the International Gallery of Superb Printing competition.
SPORTS AGENCY NEWS
SPORTS AGENCY NOTESCMG Sports, a St. Louis agency specializing in representing professional hockey players, has joined forces with consultants Dennis Polonich and Mel Bridgman, two NHLPA-certified agents, to pursue hockey clients worldwide.
CLIENT SIGNINGSBruce Levy, president of Bruce Levy Associates International Ltd., completed a contract for Bethany Donaphin to play basketball for C.B. Islas Canarias in Spain for the 2002-03 international season. Erica McKeon, senior vice president for the agency, completed a contract for former WNBA Orlando Miracle player Tawona Alhaleem to play for Bnai Yehuda in Israel for the season.
BROADCASTING NEWS
TELEVISIONThrough a deal with Florida International University, Sunshine Network is adding the school's home game against in-state rival Jacksonville University to its lineup of local and regional college football telecasts. Live coverage of the game will air at 8 p.m. Oct. 31.
RADIOYearlong statewide coverage of all high school sports in 2002-03 will be featured in a package crafted between the Michigan High School Athletic Association and the Michigan Talk Radio Network.
WNSA-FM in Buffalo added former Buffalo Bills coach Marv Levy to the station's "WNSA Pre-Game Report."
CHARITY NEWS
Lea Ann Parsley, a silver medalist at the 2002 Salt Lake City Games in skeleton and the 1999 Ohio Firefighter of the Year, helped the fourth annual Arby's Charity Tour Cleveland raise $125,000 for Big Brothers Big Sisters of Greater Cleveland and the Arby's Foundation.
Members of the Carolina Hurricanes Community Relations staff helped distribute sports equipment, donated by Hurricanes employees, on Sept. 20 at Oxford Manor Achievement School in Durham, N.C. The Hurricanes were aided in the project by Todd Lewis of EMC-2, a local provider of storage systems, software and services.
The Visa Champions Creating Champions program, in which 30 Olympic and national team athletes are matched with Park City and Salt Lake City, Utah, youths in a mentoring program, was introduced Sept. 25 at Utah Olympic Park.
Source: Street & Smith's SportsBusiness Journal research
If you have an item you would
like included in For The Record, please send it to the attention of Beth Hinson. Phone: (704) 973-1419. Fax: (704) 973-1401.
E-mail: bhinson@sportsbusinessjournal.com
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Marketing news
SPONSORSHIPSColorado Time Systems LLC was selected by U.S. Water Polo Inc. as its official scoring and timing company. The two-year deal has a two-year option.
Duofold agreed to a four-year contract extension as the official high performance base layer apparel supplier for USA Luge.
The PGA Tour and Pennsylvania-based 84 Lumber Co. agreed to a four-year title sponsorship beginning in 2003. The 84 Lumber Classic of Pennsylvania will be played on the Mystic Rock Golf Course at the Nemacolin Woodlands Resort & Spa in Farmington, Pa. 84 Lumber replaces SEI Investments as the title sponsor of the PGA Tour's annual Pennsylvania event.
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NBA union's grievance doesn't add up
At the World Congress of Sports in March, I happened to run into National Basketball Players Association Executive Director Billy Hunter. The conversation quickly turned to the operation of the NBA's collective-bargaining agreement and then focused on the agreement's escrow arrangement.
When I first read the NBA labor deal and got to the definitions section of Title VII, Section 12 — "Escrow Arrangement" — I thought a new language had been introduced. I was confronted by "Aggregate Compensation Adjustment Amount Shortfall," "Individual Compensation Adjustment Amount" and other defined shortfalls, overages, limits and amounts.
This is the most complex section of the collective-bargaining agreement. It requires players to pay back to the NBA salaries that exceed negotiated limits, and to have their contracts amended to reduce future payments by the team to conform to the agreement's economic limits. In March, players were having salary amounts escrowed. At that time, it was possible that the escrowed amounts would be paid to the league when the final accounting was completed in August. Hunter was not pleased, and he said that something had to be done.
The NBA escrow agreement is unique in sports because it is the enforcement section of a deal that contains a salary cap. It allows for the recovery of player compensation that exceeds the salary cap's limits. The NBA salary cap is 48.04 percent of basketball-related income, or BRI (which is basically the total of revenue from ticket sales, television, concessions, licensing, etc.). The escrow arrangement became effective for the 2001-02 season, so Hunter was faced with the prospect of his players having salary deducted if accountants determined that the rules of the collective-bargaining agreement had been exceeded.
It is important to recall that this agreement was negotiated during the lockout in 1999, which occurred when NBA salaries exceeded limits that allowed for the reopening of the old agreement. The deal that contains the escrow arrangement was part of the settlement of that dispute. Hunter's concerns in March of this year are now reality, and a storm is brewing.
To look at the tempest ahead, we need to look at the collective-bargaining agreement. The focus of the current deal is player salary control under what is termed a "soft" salary cap.
The collective-bargaining agreement is complete in its control of NBA players from the rookie draft to retirement. It sets team salary caps, rookie salary caps and individual player salary caps and limits the amount salaries in multiyear contracts can be increased from year to year.
The salary cap is termed "soft" because there are 11 exceptions to the individual player and team salary caps that teams can use to exceed it. The system is fine-tuned to control compensation in order to provide for financial stability in the league.
In any such agreement, with its complex rules, exceptions to rules and flexible salary structures, there must be a way to adjust if the soft cap allows salaries to rise too far over negotiated limits. For example, the soft cap is set at 48.04 percent of BRI ($40,271,000 per team in 2002-03) and exceptions allow salaries to rise above that amount. But when salaries exceed 55 percent of BRI, the escrow rules kick in to push salaries back to 55 percent.
Because of the salary cap exceptions, teams often go above the cap limit. If aggregate player salaries and benefits for the entire league exceed 61.1 percent, a luxury tax is imposed. (Assume, say, a $2.6 billion BRI for the league, which is a $51 million escrow limit per team. A team with a $70 million payroll, then, would pay $19 million as a tax.) The tax payments, in conjunction with the escrow payments, serve to keep salaries and benefits at 55 percent of BRI.
Remembering Hunter's displeasure, I was not surprised when I heard about his filing a grievance this summer. The reason for it has been elusive, however.
The union has a contractual right to grieve over a limited number of issues related to the escrow arrangement. For example, it can contest the NBA's calculation of the projected Aggregate Compensation Adjustment Amount, which is the amount of excessive salary set by the NBA and indicates the amount of salary that will be taken from player paychecks.
Furthermore, the agreement is very clear about who owns the money after the escrow agent pays it to the league: "All amounts remitted to the NBA by the escrow agent or NBA teams shall be the exclusive property of the NBA and the use and or distribution of all such amounts, including the allocation or distribution of such amounts to one or more NBA teams, if any, shall be within the NBA's exclusive distribution."
There is not a lot of wiggle room in that paragraph, but the payment of the money, it turns out, is the issue in the arbitration. The NBA has developed a plan that distributes the money to all team owners except those who paid the luxury tax.
The union, it seems, uses the circumvention language of the agreement, which says "that provisions of the agreement must be interpreted so as to preserve the essential benefits achieved by both parties to the agreement." The union claims that the NBA payment plan breaches the collective-bargaining agreement.
A grievance over a new contract provision is not rare, but the importance of this grievance is in its very existence. The language of the labor agreement is clear about the ownership of the money collected under the escrow arrangement, and a grievance shows only that the parties have not settled into a long-term labor-management relationship that eschews contentiousness for discussion and compromise.
Two major sports leagues, the NFL and the NBA, have excellent labor agreements that will serve both the players and the leagues well for the future. MLB and the NHL have problems and will be engaged in negotiations again to correct their flawed systems. By filing a grievance over the way escrow money is paid, the NBA players are setting off on an unfortunate course that may prove that a labor storm is in basketball's future.
Clark C. Griffith (cgriffith@sportsbusinessjournal.com) is a Minneapolis lawyer and arbitrator and former part owner of the Minnesota Twins.
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Sports agency news
SPORTS AGENCY NOTESCMG Sports, a St. Louis agency specializing in representing professional hockey players, has joined forces with consultants Dennis Polonich and Mel Bridgman, two NHLPA-certified agents, to pursue hockey clients worldwide.
CLIENT SIGNINGSBruce Levy, president of Bruce Levy Associates International Ltd., completed a contract for Bethany Donaphin to play basketball for C.B. Islas Canarias in Spain for the 2002-03 international season. Erica McKeon, senior vice president for the agency, completed a contract for former WNBA Orlando Miracle player Tawona Alhaleem to play for Bnai Yehuda in Israel for the season.




