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SBJ Unpacks: Coronavirus -- Tennis Stakeholders Show Solidarity


A couple of news items today showed how much the global pandemic already has affected the sports business – both on personal and corporate levels.

Like most of the people who contract COVID-19, John Skipper recovered. But when I first heard that the DAZN Group executive chairman had tested positive for the virus, my heart sank. Skipper spent two weeks in bed recovering. By all accounts, he’s on the mend and taking phone calls now.

Earlier today, Fox showed how much it believes the coronavirus pandemic will likely impact its business. In an SEC filing, Fox said the outbreak “could have a material adverse effect on the Company’s business, financial condition or results of operations over the near to medium term.” While Fox News’ ratings are strong, “sports events for which the company has broadcast rights have been cancelled or postponed” and production has been suspended, the company said.

Stay safe, everyone. 

-- John Ourand

  

 

WIMBLEDON CANCELLATION DIFFERS FROM FRENCH OPEN APPROACH

  • There was a show of solidarity today from many of the major stakeholders in tennis, writes SBJ’s Bret McCormickas Wimbledon was canceled at the same time that the ATPWTA and ITF put out statements extending the suspension of play. The choreographed statements contrasted with the French Open’s unilateral and widely condemned decision two weeks ago to move its Grand Slam tournament to the fall without consulting other tennis bodies (the key stakeholders found out through a tweet).

  • The All England Lawn Tennis Club's move to cancel Wimbledon marks the first time since a six-year stoppage during World War II that the Grand Slam tournament won’t be contested. Multiple outlets reported earlier this week that Wimbledon in fact had an insurance policy that included global pandemic coverage, which should mitigate most of the cancellation’s financial damage, including ticket refunds.

  • After today, nearly the entire clay and grass court swings for the ATP and WTA have been wiped out by coronavirus. Three of the 11 tournaments impacted by today’s suspensions are studying dates later in the year in an attempt to hold their events. The July 12 cutoff also butts up to the start of the U.S. Open Series, beginning with the Hall of Fame Open in NewportR.I., on July 13. Tournament director Todd Martin told McCormick on Tuesday that a decision should be made before the end of May about whether to hold the Hall of Fame Open, and that it does not have an event cancelation policy.

 

 

 

COLLEGE PROGRAM MAKES COACHING HIRE SIGHT UNSEEN

  • Georgia Southern’s new AD, Jared Benko, hired a basketball coach last weekend without meeting him face-to-face. In fact, Benko and his hire, Brian Burg, met in person for the first time this afternoon, three days after announcing the deal, SBJ’s Michael Smith reports. That would have been unheard of just a few weeks ago, but not during a pandemic.

  • Like most interactions these days, Benko interviewed Burg via video conferencing. They sealed the deal with an old-fashioned two-hour phone call. “That conversation is one you’d typically have over a long dinner,” Benko said. “But meeting just wasn’t an option.”

  • Benko, who left the Deputy AD post at Mississippi State earlier this month, wasn’t even on the job at Georgia Southern yet when Eagles’ basketball coach Mark Byington left for James Madison. Within just a few days of his introductory press conference, Benko had a major search on his hands.
  • Over an eight-day span, Burg interviewed three times over video conference with Benko, the university president and a select group of donors. Parker Executive Search aided GSU with the coaching hire, which was announced Sunday. “I’ve always felt like it was invaluable to sit across from someone and look them in the eye,” said Benko, whose first official day as AD was today. “We just had to improvise so that we could both get to a point where we were comfortable. I feel really good about where we wound up.”

 

  

  

SPORTS MARKETERS LOOK FOR ANSWERS

  • Absent games, visible fans and televised events, along with a clear answer to exactly when sports will take the field again, sports marketers are slowly finding a new way to operate, writes SBJ's Terry Lefton. Still, for a business normally as transaction-oriented as sports, it's been a difficult transition.
  • “It's hard to be really focused on the commercial aspects of our business right now, so we’re focusing on  the community aspects,” said Jaguars President Mark Lamping. The team has bought more than $30,000 in gift cards from restaurants with which it has business relationships. The Jaguars then turn those gift cards over to local hospitals for use by their medical staff. 
  • Season tickets and sponsorships are still being sold, but gently. “We’re trying to maintain the same call frequency,” Lamping said, “but the conversations (have) changed drastically, of course. As an industry, we always talked about having ‘business partners’ -- now is the time to actually show that across sports. The reality is that we’re all going to take a hit this year, so we don’t want to make matters worse in the short term.”
  • Sports business is now an industry in search of that new norm, with few clues as to what that will be.“The first time you are lined up to go into a stadium and somebody coughs, what’s going to happen?” asked Genesco Sports head John Tatum. “Three phrases I'm hearing from everybody,” said Peter Stern, who heads marketing firm The Strategic Agency. “They are: Wait and see, I don’t know and how do you strike the right tone so you don’t look opportunistic. We’re all looking for those answers.”

 

 

TONY PONTURO BELIEVES CRISIS WILL FORCE DIFFERENT THINKING

  • Driving back to his Manhattan apartment after a brief respite in the Carolinas earlier this week, Tony Ponturo had lots of time to think about ways in which the sports marketing world might turn in the coming weeks, months -- and maybe even years. Now consulting after a lengthy stint heading up sports and entertainment marketing at Anheuser-Busch, he pondered what faces brands that sponsor sports and entertainment properties as they navigate this period, and what should they be thinking about next.

  • “We all get somehow smarter coming out of (crises) ,and I think this will happen again as we go through this,” Ponturo said on the most recent SBJ Unpacks podcast. “It makes people think past the routine of the everyday management of their business, whether that’s a league or a team or an athlete. And certainly the corporations. ... It makes you open up and think differently and positive things can come out of that.”

  • For Terry Lefton’s complete conversation with Ponturo, check out the SBJ Unpacks podcast.

 

DAKTRONICS REOPENS PRODUCTION FACILITY IN CHINA

  • As the impact of the pandemic has shifted to Europe and the U.S., Daktronics, the world’s largest supplier of electronic scoreboards and video displays, has resumed production at its China factory, while suspending production temporarily at its Ireland and Minnesota facilities, SBJ’s Karn Dhingra reports. Some Daktronics customers continue to place orders, while others are choosing to delay purchases. The company is monitoring potential disruptions to its supply chain and shipping operations. Daktronics has identified alternative sources and shipping methods if the pandemic takes a toll on the company’s primary sourcing and distribution channels.
  • The South Dakota-based company, which continues to be fully operational in Brookings and Sioux Falls, is also taking a number of other measures to reduce the financial impact during the pandemic, including furloughing workers, drawing down its existing line of credit, pursuing other sources of financing, reducing investments in capital assets and reducing exec pay and board member compensation.
  • Daktronics CEO Reece Kurtenbach and CFO Sheila Anderson elected to reduce their base salaries by 15%. Other high-level execs will have their pay cut by 10%. The board of directors will take a 15% reduction on their annual cash retainer fees. The BOD also voted to suspend stock repurchases under the company’s share repurchase program and to suspend dividends for the foreseeable future. 

 

GEN.G PARTNERS WITH KENTUCKY FOR “NBA 2K” TOURNEY

  • Esports outfit Gen.G is taking advantage of the uptick in online tournaments and has partnered with the University of Kentucky for an “NBA 2K20” event on Twitch, SBJ’s Austin Karp reports. The deal was done across all levels of the school, including the athletic department, and will look to include UK students, alum and fans. The deal marks Gen.G’s first university-focused tournament event at the fan level.

  • Gen.G Head of Revenue Operations Jordan Sherman tells SBJ the outfit is actively working on bringing in UK sports alums to either participate in the tournament in the "Big Blue Nation" division or to come on as hosts during the event. A bracket of 64 members, ages 13+, will compete for a championship (PS4 consoles only). Fans who enter to compete will find out on April 6 during a special “Selection Show” if they were randomly selected based on all skill levels.

 

     

    SPEED READS

    • Long-term planning -- think 2-3 years out -- is usually how Mike Whan spends his time as LPGA commissioner. But like many top execs, that has changed with the pandemic. “Now I’m working on the season 2-3 months from now,” Whan told the No Laying Up” podcast. “I’m spending virtually every minute of every day working with different sponsors and tournaments for how we can get them in a date that can work. We obviously have more events than we have dates -- so it’s been a busy, stressful time. Every conversation starts with, ‘So when will you guys start playing?’ There’s the question nobody can answer.” 
    • Georgia Southern wasn't the only college hoops program whose coaching search was impacted by the sports shutdown. Western Michigan promoted assistant coach Clayton Bates to lead the men’s program, and AD Kathy Beauregard told the Detroit News that the coronavirus “forced the scrapping of a national search, and that Bates, on a two-year deal, was best suited to keep the program stable.” Bates’ salary is the lowest in the MAC, and the “cost savings is no small thing” for WMU, which “currently is in a hiring freeze, and not allowed to hire from outside the university.”
    • The Leaders Digest newsletter today had some interesting stats in response to a question we may all have right now: “How many people can I get on a virtual chat?” The numbers: WhatsApp – 4; Instagram – 6; Houseparty – 8; Snapchat – 16; FaceTime – 32; Facebook Messenger and Skype – 50; Google Hangouts and Zoom - 100 (more can be acquired); Skype for Business – 250; and MS Teams 250 (10,000 for a live event).

    • Barstool Sports’ “Pardon My Take” asked Canadian IOC member Dick Pound if he agreed with the reports that he had to “pressure” Tokyo Games organizers into a delay. “Not so much pressure as saying, ‘Look, we’re delighted that you seem to have a reasonable handle on things in Japan. But if you look around the world, the risk is if you persist with a July 24, 2020 date, you throw this big party -- and nobody can come to it. … That would be a worst alternative for you than a postponement.’ Postponement was the right answer.”

    • A UEFA Champions League match in Milan in February has shown to be part of ground zero for the coronavirus outbreak in Italy. The Wall Street Journal goes deep on that Atalanta-Valencia match, which proved to be a “contagion disaster” with around 40,000 “hugging” fans at San Siro Stadium. The virus was so present that night that once Valencia returned to Spain, 35% of its traveling squad “eventually tested positive."

     

    NEWS YOU NEED FROM SPORTS BUSINESS DAILY

    • During this crisis impacting the sports business, we want everyone to be up-to-date on the latest news and information. SBD's "Coronavirus & Sports" section is free, outside the paywall, for the foreseeable future. Below are today's headlines:

      • Wimbledon The Latest Event Canceled Due To Coronavirus
      • NFL Continues Unabated With Plans To Start Season On Time
      • NFL, Like All Sports, Adapting To A New Form Of Normal
      • MLB Officially Scraps Cubs-Cardinals Series In London
      • Damian Lillard Not In Favor Of Permanently Shifting NBA Calendar
      • NHLers Likely Face Uphill Battle In Getting Back In Game Shape
      • Pac-12 Discusses Salary Adjustments Amid Sports Stoppage
      • Padres Split $1M Between Gameday Staff, Third-Party Contractors
      • Execs Talk Leadership Amid Virus At Women In Sports Summit
      • Arizona Organizations Donating, Giving Support To Relief Efforts

     

    SBJ UNPACKS -- WEATHERING COVID-19

     

     

     

    Something related to coronavirus and sports business catch your eye? Tell us about it. Reach out to Austin Karp (akarp@sportsbusinessjournal.com) and we'll share the best of it.