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Ripple: Who and what made waves in 2014

Closing the year with stories that may have been below the radar over the past year and what I’m keeping an eye on in 2015.

> MAYBE YOU’LL FIND DIRECTION: There was real energy and optimism from NASCAR stakeholders at our recent Motorsports Marketing Forum in Las Vegas, and it was because of one thing: NASCAR Chief Executive Brian France’s bold decision to change the format of the Sprint Cup, a deft move that worked. It gave everyone in the sport something to hold onto, something positive to talk about and point to. In previous years when the business metrics were down, there was prevalent pessimism about future success. Not this year, as there was a true sense of momentum among executives who believe the playoff change connected with avid fans and, more importantly, lapsed fans. Now the focus is on whether — and how — the sport can maintain that momentum going into Daytona. But let’s give credit where it’s due — France made a big bet, and it paid off.

Related stories:

2014: The Year in Sports

> WHAT’S THE BUZZ? One of the top team turnaround stories in sports is happening in the city where I live. When the Charlotte Bobcats made the decision to invest millions of dollars to change their name back to the original Hornets, I believed it was more cosmetic and had doubts of any real business benefit. Happy to say I’m wrong. The team has used the brand change to drive its business and has the most successful sales season in its history. The team made all the right moves off the court during this transition, and it finally has the community rallying behind it. The strategy and execution provides a strong case in how to do it right. Unfortunately, proving again how hard it is to be totally aligned, the organization is losing its ability to fully capitalize on the buzz because of the team’s poor play and 6-15 start, as of last week. If the Hornets were winning on the court, this would be really something.

> IT’S A LESSON, TO ME: The most interesting sponsorship story in the NFL this year for me has been in the headphone category. Bose made the big bet to sponsor the NFL and get branding on coaches’ headsets on the sidelines. It then went out and did a number of player deals, signing the likes of Russell Wilson and Clay Matthews. But it also learned how challenging the sponsorship marketplace can be, as it watched a competitive product and market leader, Beats by Dre, be worn by its athlete evangelists before and after games. It led to the league stepping in and outlining when and where players could wear a competitive product. One could argue this put Bose continually on the defensive, or counter argue that Bose is in discussion and consideration more than ever. Whichever side you’re on, it was a category worth watching.

> DAWN IS BREAKING EVERYWHERE: Keep an eye on the U.S. cities bidding to host the 2024 Summer Games. Elements are aligned well to return the Games to the U.S. for the first time since 2002, and the cities in the mix are all attractive for various reasons. Boston has a very innovative plan on facility usage and tying into the local academic communities. San Francisco has the footprint and visuals that the International Olympic Committee likes. And Los Angeles has history and the connections of Casey Wasserman in its corner. I don’t believe Washington, D.C., will hold great appeal for the international community, and while I believe many insiders would like to see San Francisco emerge, there’s a sense that the unpredictable political environment will put that bid at risk. I see Los Angeles as the favorite here.

> SINCE IT COST A LOT TO WIN, AND EVEN MORE TO LOSE: By all marks, the soccer movement in the U.S. had a great year. After reaching new TV deals worth $90 million a year, Major League Soccer averaged a record 19,148 a game this season. There’s heavy interest in expansion MLS franchises and increased press coverage. This came amid a surprisingly rabid following of the World Cup this summer. The one concern that could slow momentum is MLS’s coming labor negotiations. This one will be thorny. Players see the financial growth and compare it with their salaries. They hear Commissioner Don Garber’s claim of $100 million of losses, yet see the new TV money and franchise fees come into the game. The salary structure has always been one of the major issues affecting MLS on the international scene, and how this gets managed while the league is still in growth mode is one of the key stories to watch in the next year.

> WHILE THE STORYTELLER SPEAKS: Like anything Fox does, its entry into golf will come with lots of hype and attention. It has a history of innovation and trying new things, and golf could certainly use that. In addition, Greg Norman being in the booth will be a good thing for viewers, building on the role that Johnny Miller has created at NBC. I recently spent time with Norman at his home in Florida, and his passion for his new role is clear. He’ll bring a likable, informed approach, but I don’t expect him to be as biting or critical as Miller. I asked Norman to compare his style to Miller’s, and he said, “It will depend on the circumstances. As a player, I understand there are extenuating circumstances that the TV viewer doesn’t see that may be connected to a poor shot. There could be a bad lie, a hanging lie or just the slope will dictate what a player can or cannot do. I hope I’ll be able to see that and explain to everybody, ‘Look, there might have been an extenuating circumstance in this situation where John Smith didn’t really understand how severe that lie was, or how heavy the wind was above the tree line. His execution of the shot, when you break down the swing, might have been perfect, but he didn’t anticipate a few other pieces of the ingredient to make sure the shot was perfect.’ Something like that. Attitude-wise, if I see a player bringing the game in disrepute, you’re getting a slap across the wrist as far as I’m concerned. That’s a standard that you have to articulate to every young kid watching TV.” There will be hiccups in Fox’s golf foray, and Norman will have growing pains, but he has all the makings to be a fresh, provocative voice for the game.

> THE FIRST DAYS ARE THE HARDEST DAYS: What happens this season with the Time Warner Cable SportsNet carriage dispute in the Los Angeles market, especially with Comcast expected to take control of the RSN around the end of the first quarter? DirecTV lasted a full season without carrying the Dodgers and saw little significant viewer defections. For me, the main question is how much longer can the Dodgers afford to sacrifice market share for a huge rights fee? I still get amused when looking back at one of my favorite tweets of the year, when the NHL Kings mascot Bailey (@BaileyLAKings) took a shot at the city neighbor: “I just realized I had to come to Canada to watch the Dodgers on TV.” I have to believe the Dodgers brand is losing local relevance because of this.

> ALWAYS AWAKE, ALWAYS AROUND: One of the executives I’m asked the most about is the 57-year-old Tim Leiweke, who plans to leave Maple Leaf Sports and Entertainment in June. Many knew that his tenure in Canada would likely be short, but one can’t question how he’s been able to change culture and people in a short period of time. His relationship with the passionate Toronto media and fan base was tense at times, and if anything, his short stint shows how politically challenging this job is in reporting to a board made up of archrivals, Bell and Rogers. Now the question becomes what’s next for the hard-charging, talented Leiweke.

> JUST KEEP TRUCKIN’ ON: Don’t overlook the influence that former IMG Sports and Entertainment President George Pyne will have in 2015. Sources say he’s close to finalizing a significant amount of capital to launch a fund that will acquire sports, entertainment, media and lifestyle businesses. Pyne’s always been a builder and value creator, so he’s worth watching as someone who could roll up a number of companies in the sports space.
As always, I welcome your thoughts, questions and comments. SportsBusiness Journal will be going dark for the next two weeks, but you can read SportsBusiness Daily/Global to keep up with what’s happening. On behalf of our entire editorial team, we thank you for your support, feedback and ideas over the year.

I’m off to Scottsdale, Ariz., to spend a few days with a couple of my brothers over Christmas. I hope you all have a Merry Christmas, Happy Holidays and safe New Year. Look forward to seeing you in 2015.

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


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