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The business of the NBA seems to be steady despite losing two months of its season to the lockout. The basketball media has hammered the league, saying that the quality of the product has suffered because the league and union rushed a return by Christmas. Fair points, but did anyone really expect the two sides not to try to maximize a season? And besides, there’s been no consumer impact. Viewership is surprisingly up double digits across every NBA outlet, which seems to prove again the public’s pent-up demand for live, and star-driven, sports. Jeff Van Gundy nailed it in telling The (Newark) Star-Ledger, “Sixty-six games in [126] days without practices makes the product unwatchable at times for the discerning fan. But the average fan seems to want to watch a below-average product more than no product at all.” While I’m surprised by the numbers, I see no reason ratings can’t remain strong if the league gets the right teams ­— and long series — in the playoffs.


An issue to keep an eye on is the possibility of the NBA placing brand advertising on jerseys. This won’t be determined lightly. There are league, team, media partner, sponsor and uniform supplier challenges to sort through. But no one can deny the potential revenue appeal, with some hinting that it could be worth more than a team’s annual naming-rights deal — so anywhere north of $3 million a year. That’s a significant number. The other issue is how prominent such advertising will be on these jerseys if league officials go ahead with it. Look for more developments in late spring.


One of the biggest stories people are talking about is the development of NBC Sports Network. There are supporters who like the aggressiveness, the growing portfolio and the fact another spender is in the marketplace. But, as always, there are those questioning the strategy and acquisitions. As the early ratings numbers show, it won’t be an overnight hit. Mark Lazarus has said so, telling us recently it will be a five-year build. Everyone has an opinion on what the strategy should be, but to me it comes down to presenting the viewer with a compelling reason to make the channel a regular outlet for sports news and events. Save for the NFL Films show “Turning Point,” I have yet to lock in that network among my viewing habits.


Asked to name the biggest story line in motorsports in 2012, 35 percent of respondents in a Turnkey Sports Poll of industry executives last month said it was Danica Patrick’s move to NASCAR full time, with 20 percent saying the financial stability of the sport’s teams. Get ready for more Danica-hype, which, for NASCAR, is just fine. The sport needs new and popular story lines. NASCAR executives are bullish that she will take the sport to new heights, and certainly Fox should see some lift from her presence at Daytona, but I don’t see it over the long term. I respect her achievements greatly, but it surprises me that Patrick is still a story; she’s proved she can compete in motorsports, but she will likely show middle-of-the-pack potential at best. How does that have a profound impact on NASCAR and its business challenges? I can’t recall an athlete having a longer window of coverage, or more hyped opportunity and performance “potential,” than Patrick.

Abraham D. Madkour can be reached at amadkour@sportsbusinessjournal.com.

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On Dec. 10, HBO broadcast a “World Championship Boxing” event from the Walter E. Washington Convention Center in Washington, D.C., its first event in the nation’s capital in 18 years. This unified super lightweight championship bout featured world champion Amir Khan unsuccessfully defending his title against mandatory challenger Lamont Peterson in what was considered a candidate for Fight of the Year. The fans, the media and the boxing industry are already discussing a marquee-level rematch as the bout created a buzz throughout Washington, D.C., and controversy in the sport.

The last HBO championship boxing event promoted in Washington, D.C., was on May 22, 1993, when Riddick Bowe knocked out Jesse Ferguson in defense of his world heavyweight title at RFK Stadium. I was fortunate to likewise be a part of that 1993 promotion. The principal reason for this 18-year void is the underlying economics attendant to hosting a championship boxing event and, principally, the elevated financial risks associated with staging a championship bout at a non-casino property.

What made this event unique?

Amir Khan (left) fought Lamont Peterson in Peterson’s hometown of Washington, D.C., and outside the traditional resort casino setting. The result created buzz throughout the sport. Photo by: GETTY IMAGES

1. The championship bout was fought in the challenger’s hometown.

The champion’s promoter customarily has the discretion where to host a championship-defense bout. Rarely does the champion defend his title in the challenger’s hometown because, in part, there is a perception that the partisan crowd can affect the judges’ scoring (i.e., cheers for punches thrown by the challenger whether they land or not). The outcome of this championship bout was not without controversy regarding the judges’ scoring and the actions of the referee (who deducted two points from the champion for “pushing/shoving”), the former champion’s accusations of a “hometown decision,” and protests filed with the sanctioning organizations. In any event, Khan deserves tremendous credit for defending his title in front of 9,800 fans, most of whom were supporting Peterson.

Circumstances can arise where the financial opportunities associated with promoting a championship bout in the challenger’s hometown outweigh these negative views. A popular challenger will draw a large crowd and garner substantial media attention for the event. The rise of Peterson and younger brother Anthony from homelessness to world champion contenders captured the attention of the region. A cooperative transaction between Golden Boy Promotions and Events DC — the convention and sports promotional arm of the Washington, D.C., government — maximized the event’s commercial potential, generated economic development benefits for Washington, D.C., and established a template for similar transactions in other cities.

2. It was staged outside of a traditional casino resort setting.

While exceptions exist (e.g., Madison Square Garden, Staples Center), the site fees guaranteed from casino properties in Las Vegas, Atlantic City and other gaming venues enable the boxer to receive larger purse guarantees and reduce the financial risk to the promoter since the championship bout creates a distinctive entertainment vehicle enhancing the core gaming business of the host casino property. The customary site transaction formula is straightforward and equitable: The site pays a guarantee for the right to host the championship bout and recoups its guarantee and documented site expenses from the live gate revenue. Thereafter, any excess gate revenue is allocated between the promoter and the site on a predetermined formula (e.g., 80 percent promoter, 20 percent site). In addition, the hotel associated with the casino provides complimentary rooms, food per diems and other amenities that defray promotional costs.

The convention center model in most cities is to attract large conventions, fill hotel rooms and restaurants, and otherwise increase economic development for the city. Therefore, it was necessary to structure a transaction that blended the skill sets and resources of Events DC, Golden Boy and select D.C.-area consultants to create an elite-level operations framework associated with an internationally televised sporting event. With this financial backdrop, a transaction was consummated whereby the Events DC sales, marketing, box office, production and sponsorship departments provided the infrastructure for this championship boxing event while working in conjunction with Golden Boy. My commitment was to orchestrate the event in those areas enhancing the city’s economic development. Events DC is becoming actively involved in promoting sports and entertainment events at its city-owned venues (convention center, RFK Stadium and the DC Armory). Our working relationship and respect for the USO’s initiatives in the area ensured that the men and women of our armed forces were strongly represented at the championship bout.

3. The nontraditional setting in the nation’s capital provided a diverse crowd for the fight and surrounding promotional events.

The differentiator in promoting a successful boxing event is to attract the general sports fan in addition to the core boxing fan. The commercial objective for this championship bout was to attract a diverse crowd representing a cross-section of this unique and somewhat untapped regional market. Washington, D.C., possesses an exclusive demographic of lobbyists, lawyers, large-scale employers and members of the legislative, executive and judiciary branches of government. The region ranks first in comparison to all other states in per capita disposable income. Mission accomplished, as this boxing event became the place to be that evening, capitalizing on the unique attributes of the city, including all ringside seats sold, a premier pre-fight reception attended by the “who’s who” of D.C. and gross live gate revenue in excess of $800,000 (net of complimentary tickets).

The dramatic and compelling victory by Peterson and the transformation of convention center space into center stage for this championship bout broadcast created an extraordinary event. The animated crowd not only provided further motivation for Peterson within the ring, but the uniform support from such a diverse crowd also created something to build upon regarding social, economic and educational issues affecting D.C.’s communities and residents.

Future marquee-level boxing events involving the new world champion will have an even further reach for the general sports fan and an extended entertainment audience based upon the action within the ring, the human-interest aspects outside the ring and the fan experience at this championship event.

Jeffrey S. Fried (jfried@friedco.com) is an attorney and entrepreneur based in Washington, D.C.

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Editor’s note: Jim Steeg, who for 26 years was in charge of the Super Bowl and special events for the NFL, shares his memories of Whitney Houston’s rendition of the national anthem. Houston, 48, died Feb. 11.

Just after Thanksgiving in 1987, I received a call from John Houston. It was unexpected and one of those many calls that I had learned to adjust to.
John explained that his daughter, Whitney Houston, had just fired her manager. As her new manager, he had learned that she was booked to perform the national anthem at Super Bowl XXII, which was a little more than two months away. No one else was aware of this, he said, and they had a previous commitment to tour Australia. So began a 16-year relationship with John Houston.

In 1990, as we approached the silver anniversary of the Super Bowl, we were planning many special elements. I had remembered those conversations in 1987 and reached out to John Houston to see if Whitney would be interested in performing the national anthem for Super Bowl XXV. The answer was a resounding “Yes.” Little did we know at the time what it would mean.

On Jan. 17, 1991, the United States launched Operation Desert Storm. Although it had been anticipated for weeks, the thought that the Super Bowl would be played 10 days later made everyone involved reconsider all plans. For the first time at a major sporting event in this country, the level of security was raised to the highest levels. Barricades were placed around Tampa Stadium, and attendees were patted down. The airspace over the stadium was closed to commercial use for the first time in Super Bowl history, and a Black Hawk helicopter patrolled.

In early January, Bob Best, our 20-year coordinator of Super Bowl pregame activities, produced a recording of the Florida Orchestra for national anthem producer Rickey Minor, now known for his work on “American Idol” and “The Tonight Show.” A week later, Minor flew to Los Angeles to have Whitney record the vocal track. Amazingly, as he has said, it was done in one take.

All was in place for what many of us thought would be one of the greatest versions of the national anthem ever performed. On Jan. 17, senior executives with the NFL asked if they could hear the performance. A tape was overnighted to Buffalo, where the AFC Championship Game was to be played. The next day, I was told that the version was viewed as too slow and difficult to sing along with. Could I ask to have it redone? Understanding the logistics of re-recording the Florida orchestra, Bob and I called John Houston. The conversation was brief: There would be no re-recording.

Whitney sang the anthem live into a dead microphone, while the stadium and TV audiences heard the prerecorded version. That performance is one of the top five moments in the NFL’s long history, certainly the No. 1 musical moment. I stood about 20 feet from Whitney during the national anthem, alongside Lawrence Taylor and Carl Banks. (As the Giants team captains, they were next on the schedule, for the coin toss). I remember that when the performance ended, Whitney raised her hands in triumph, and it gave me flashbacks to Joe Namath after Super Bowl III; she had “nailed it” just as Joe had.

Almost forgotten in the magnificence were the punctuation points: the flyover by four F-16s from Tampa’s MacDill Air Force Base and the surprise decision by the helicopter pilot to do his own flyover. That shook the crowd, and energized it.

In the following days, Whitney’s national anthem was played everywhere. In conjunction with Arista Records, the single was released. It was the first and only time a recording of the national anthem hit the Billboard charts, and it remained there for 11 weeks.

The proceeds from the single for Whitney — which exceeded $500,000 — were donated to the Red Cross in Hawaii for the families of the military. Jahja Ling, who was the musical director of the Florida orchestra, said the group’s proceeds ensured its financial viability for years.

The record went platinum, and one of my most cherished Super Bowl mementos is that gold record.

After 9/11, Whitney’s national anthem was re-released, and hit No. 1 on the Billboard singles charts.

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The stupidest sports question I ever asked was, “What kind of cars do they race at the Daytona 500?” That was almost a year ago, when I found myself talking to Trevor Bayne and a couple of the marketing folks from Roush Fenway Racing at a conference in Chicago. I’ll admit, I knew less than nothing about the sport.

Thanks to an intervention by Tim Lister and Scott Warfield from NASCAR and John Bauersfeld from Roush Fenway, I’ve gotten a serious introduction. They have been my hosts at Infineon Raceway and at Homestead-Miami Speedway, for the championship race. Along the way I’ve become a fan. I find myself following the NASCAR community and always take a second look when I see NASCAR in the news.

As much as I like the sport, it’s the business side that really got my attention. I may be late to the NASCAR party, but I see a gold mine for smart brands.

My advertising agency has deep roots in business-to-business technology and health care, and I consider it my job to find untapped opportunities for our clients that give them an advantage against their competition. Until a year ago, I never would have looked at a NASCAR sponsorship. I saw a huge consumer market but not one that would be economical for a business-to-business audience. That all changed with some time at the track and a better understanding of the sport’s dynamics.

The fit for a mass-market consumer company is obvious. Who wouldn’t want access to 70 million loyal fans who give a preference to brands associated with NASCAR? A 36-week season and the large number of hours fans dedicate to the sport (six per week on average, according to NASCAR) provide an incredibly high degree of engagement, any marketer’s dream.

How can these dynamics work economically for a business-to-business audience?

Business-to-business sales are often more complex and involve multiple decision-makers. Then there’s the conventional wisdom that business-to-business customers are practical people who only care about product features and are immune to emotion. The good news is that a lot of those stereotypes no longer apply.

The lines between a business and consumer audience have totally blurred. Fans work on smartphones in front of the TV and play on Facebook at work. In this environment, to get someone’s attention, a brand must entertain them and make an emotional connection, whether they’re selling beer or enterprise technology.

More than anything, business-to-business brands need relevant content and stories to draw people to their websites and keep them there. What could be better than the NASCAR season, the longest running soap opera in sports? In addition to emotion and drama, it offers an ongoing story line that can be told on multiple levels.

The role of a NASCAR crew chief offers management and leadership story lines for sponsors. Photo by: GETTY IMAGES

The number and variety of stories playing themselves out each week still amazes me. At the Motorsports Marketing Forum in Las Vegas this past November, one of the speakers said, “It’s all about the driver. That’s all the fans care about.” I would argue that’s only a part of it. The drivers are huge; they are the gladiators. They’re wildly valuable marketing personalities, and the biggest consumer brands understand how to build campaigns around them. I also see dozens of undervalued, behind-the-scenes business stories, though, and the companies that can spot and package those stories before their competition can tap into a deep well of emotion and drama.

For example, a sponsor could take the team aspect of the sport and elevate it to a new level, totally on message for a business-to-business audience. The crew chief offers untold stories about management and leadership. Story lines could be built around technology innovations, race strategy, management theory and ROI. All of those stories draft on the excitement and suspense of race day but can be targeted narrowly to specific audiences.

Effective campaigns will look for ways to integrate NASCAR stories with their brand values. One of our clients develops electronic components that function under the most extreme physical conditions. A NASCAR relationship would help this brand bring real-life drama to products traditionally sold based on technical specs.

Green energy and building companies are creating relevant connections with NASCAR’s environmental story. Business software could likewise use NASCAR as a powerful differentiator in a crowded market where many brands look and sound the same.

The most wonderful story in the world is worthless without a place to tell it. For a business-to-business brand, that’s going to be a two-way street. For the full effect, they’ll need to make their brand visible at the track through traditional sponsorship activities. Depending on the target audience, that may mean advertising on NASCAR websites and on television. It may also mean promoting the brand through marketing channels that the sponsor controls: website, online customer communities, social networks, sales promotion programs and corporate events.

It’s through those marketing channels that a sponsor can really develop the NASCAR stories that it wants to own and that create a powerful association with its brand. These stories provide the content that business-to-business companies desperately need to attract people to their websites and to build ongoing relationships.

The trump card is that a thoughtful NASCAR marketing campaign lets a brand close the gap between event and digital marketing. No matter what sponsors think about the digital realm, the most powerful marketing campaigns are the ones that connect people in both the real and the digital worlds. The drama of NASCAR travels extremely well between the track and the Internet.

The best marketing opportunity is always the one that other people haven’t discovered yet. I see a sport with unique attributes and the door wide open for innovations between sponsors, teams, tracks and the NASCAR organization.

Phil Johnson (pjohnson@agencypja.com) is CEO of PJA Advertising + Marketing with offices in Cambridge, Mass., and San Francisco. Follow him on Twitter @philjohnson.

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