SBJ Unpacks: Coronavirus -- Dolphins Put Safety First At Hard Rock

Battered by the coronavirus, Disney this afternoon reported a sharp 63% drop in adjusted quarterly earnings compared to the same period last year. But new CEO Bob Chapek kept a stiff upper lip in his statement released after the markets closed. “While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position."

Closed theme parks, shuttered box offices, canceled cruises and a lack of live sports on ESPN are all hurting Disney, which stands to continue to feel the pain during its current quarter as the pandemic continues.

That said, it isn't all doom and gloom for the Mouse House. The ESPN+ subscriber base rose to 7.9 million in Q2, up 20% from Q1. The success of "The Last Dance" and the NFL Draft also boosted ESPN's primetime viewership in April by 11% compared to the same month in 2019. Meanwhile, the company said Disney Shanghai is re-opening on May 11, which could provide a template for the hard-hit Disney parks division, as well as other large-scale U.S. vacation destinations.

Speaking of ESPN, any Samsung Lions fans out there? Until today, chances were slim at best that anyone could name one team in the 10-team Korean Baseball Organization. But after ESPN this morning began its KBO broadcast schedule with the Samsung Lions playing the NC-Dinos in an empty stadium, sports-starved fans in the U.S. got at least a glimpse of live baseball, and perhaps a model of what MLB could look like whenever the game returns. 

--- John Lombardo

DOLPHINS GET HEAD START ON 'NEW NORMAL"

• The Dolphins made news when they revealed a vision for what a return to Hard Rock Stadium might look like for their fans, socially distanced not only while in their seats, but on their way to and from them. The franchise also recently announced that the stadium will be the first to sign on for a 20-point cleaning certification program, which will include training on what it will take to remove not only spilled beer and mustard, but pathogens such as COVID-19, when venues are filled with fans.
  
  
• Dolphins President & CEO Tom Garfinkel explored those and other changes that may come as part of the “new normal” when sports eventually return with Bill King on the latest episode of the SBJ Unpacks podcast.
  
  
• “Cleaning is often thought of as does it smell nice and does it look nice. It’s aesthetics,” Garfinkel said. “Real cleaning is about removing pathogens. Removing bacteria. Removing viruses. You’re never going to remove 100%. We live in that environment and our immune systems are the strongest defense we have. But at the same time, to be in a clean environment where we’ve removed the pathogens and we’re doing everything we can to make it as safe as possible is what we want.”

USTA COMING AROUND ON U.S. OPEN WITH NO FANS

• The USTA’s attitude on hosting the U.S. Open in N.Y. without fans has warmed greatly in recent weeks. That scenario seemed unlikely last month, especially when USTA CEO Mike Dowseall but dismissed the idea on April 16. But Chief Revenue Officer Lew Sherr spoke with SBJ’s Bret McCormick late last week and explained the organization’s shifting thinking.
  
  
• “Two months ago, it just didn’t feel like you could stage the celebration or the spectacle that is the U.S. Open in a no-fan scenario and have it be what we think of as the U.S. Open,” Sherr said. “As we’ve gone forward, I’ve come around to recognizing what an achievement it would be to play, and how much our fans are missing the game and would be excited to see the competition, and that you need to think about it differently. It’s a different event. It would be broadcast differently, it would be consumed differently, it’s not just playing the U.S. Open as you know it, with empty seats.” 
  
  
• Sherr said he’s been surprised by sponsors’ positive reaction to the U.S. Open’s no-fan option, with some viewing it as a potentially historic event. And thanks to media-rights deals, sponsors still would be able to reach an enormous global audience. Sherr: "Keep in mind, we have 850,000 fans who attend, but we’ve got hundreds of millions of fans who still watch the Open around the world and will never step foot on the grounds. ... We had to adjust ourselves and I think the times have adjusted as well.”  

KBO BROADCASTS COULD BRING MORE INNOVATION STATESIDE

• Starting its 2020 season in fan-less ballparks, the Korean Baseball Organization reportedly played games with some cardboard cutouts of fans in the stands and with the murmur of crowd noise heard on the ESPN broadcast. Whenever sports return in the U.S., expect such broadcast-related innovation. Fox Sports Senior VP/Field & Technical Operations Michael Davies told SBJ's Eric Prisbell that he's been studying fan-less games like Orioles-White Sox at Camden Yards in 2015, as well as international soccer matches, for guidance. The KBO games could also prove instructive.
  
  
• In planning for the potential of televising fan-less games, Davies said creative possibilities abound. Execs are engaged in discussions, he said, about the value of using augmented reality to create "virtually covered seats," perhaps creating so-called replacement fans or even a canvas that displays a more exciting visual than empty stands. They are also discussing the "technology and knowhow" of piping in crowd noise, either for just the home viewing audience, or potentially for the players/coaches/staff in the venue. The noise would be nuanced and varied depending upon stadium location and game circumstances. Davies also noted fan-less games should allow for more creative use of flying cameras and drones to capture new camera angles.
  
  
• On piping in crowd noise, Davies said: "It wouldn't just be, 'OK, crowd on, crowd off.' It's not a laugh track. There's a lot of nuance in terms of what that crowd is reacting to and how they are reacting. It's something that video game developers pay special attention to because they need to have the appropriate crowd noise put in to match any game situation. In a live situation, you may have to have a person who is literally scoring the game or making authentic crowd noise. You'd need to have different sounds coming from different parts of the stadium in order to be more authentic about what that audience experience sounds like. The murmur of the crowd is also vital. Once you get into it, you figure out it's not that easy and it's probably more of a manual process."

OTHER TAKEAWAYS FROM OPENING DAY IN KOREA

• The KBO captured sports fans' attention early this morning with its return to play. Below are a few themes and reactions that caught our eye throughout the day.

• Putting safety into perspective: The N.Y. Daily News' Jane McManus: "ESPN should start this broadcast with an explanation of the societal conditions that must be met before live sports are possible, and how the U.S. is no where close. ... Sports aren’t magically appearing in South Korea, baseball has tentatively arrived due to the hard work of public health experts there, and relentless testing. Don’t sugar coat this for American sports audiences."
  
  
• Missing the fan experience: Former MLBer Seth Frankoff: "This is really cool for the game of baseball globally and most especially for the country of South Korea. The only unfortunate part is folks abroad won’t get to see the true atmosphere passion of KBO baseball without fans in the stadium." The L.A. Times' Victoria Kim, who was covering LG Twins-Doosan Bears: "Korean baseball fandom is really something to behold, it feels bizarre without the crowds, chants, songs and thick smell of fried chicken."
  
  
• Passions run high: ESPN's Marly Rivera: "Finding it hilarious that now bat flips are being celebrated... can you imagine that?!? Having FUN while playing baseball?!? Welcome to the baseball Latin America has always known... insert eye roll...🙄." DAZN's Jake Mintz: "What if celebrating baseball with batflips is ok everywhere?" Meanwhile, the "ESPN Daily" podcast this morning went deep on the "secret history of the Korean bat flip," with host Mina Kimes reliving her 2016 trip to cover the KBO.
  
  

• Did you miss today's KBO games? Don't fret. Bears-Twins at 5:30am ET on ESPN2.

IMG TENNIS RAISES CHARITABLE FUNDS WITH VIRTUAL EVENT

• IMG capitalized on all of its associated resources and star power to put on the “Stay At Home Slam” last Sunday, a virtual video game tournament featuring some of the agency’s biggest talents. Each of the 14 competitors, ranging from tennis stars Naomi Osaka and Maria Sharapova to singer Seal and NFL star DeAndre Hopkins, earned $25,000 for a charity of their choice, while the tournament-winning duo of tennis pro Taylor Fitz and TikTok star Addison Rae took home $1 million for their charity, No Kid Hungry. All of the celebs and athletes that competed are WME or IMG clients.
  
  
• In part because of Osaka’s relationship with Nintendo, the tournament’s seven doubles pairings played each other in Mario Tennis Aces, a video game for the Switch device. The athlete-celebrity pairings, presence of tennis legends John McEnroe and Billie Jean King, and the goofy nature of the video game were intentional. “We wanted to have fun and give away a lot of money,” Max Eisenbud, IMG Tennis Senior VP, told SBJ’s Bret McCormick. “That came across really well. You got to see the different people’s personalities, you got to see some competitiveness, but in the end it was a lot of fun.”
  
   
• Eisenbud’s tennis division drew on the capabilities and connections of six other branches of Endeavor to put together the event in less than a month. WME’s digital group arranged a deal for the tournament to be streamed on Facebook Gaming. Endeavor Content’s Film 45 unit produced the stream, which peaked at 38,000 viewers. Nineteen separate posts to the live stream drew 3.4 million views. “Everybody was on the same page about wanting to have fun, wanting to bring tennis players and celebrities together, and, again, most important, to be able to donate some real money to help what’s going on with this pandemic,” said Eisenbud. “It ticked so many boxes.”

Each of the 14 competitors, ranging from Sharapova to Ryan Tannehill, earned $25,000 for a charity of their choice

WORKING FROM HOME WITH NLL DEPUTY COMMISSIONER JESSICA BERMAN

• The living room office of NLL Deputy Commissioner & Exec VP/Business Affairs Jessica Berman has everything she needs: computer, printer, white board, office supplies, and a view of her front yard in Westchester, N.Y.. The setup has its pros and cons. Berman: “My two dogs sleep on the couch … and my kids do their home schooling about 20 feet from my desk on the dining room table, which means I can keep my eye on them. … But it also means that we are very much in each other’s workspace.” 
  
  
• The NLL has been beta testing a new digital content strategy, led by Exec VP/Broadcast & Content Joel Feld and VP/Marketing Katie Lavin, and ongoing engagement across all NLL platforms has grown followers during the league’s offseason. Berman has been applying something she learned from NHL CMO Heidi Browning during her time in hockey: “Focus on humans over highlights, and that has proven to be successful.”
  
  
• Quarantine has felt a bit like “Groundhog Day” to Berman. “There is no difference between yesterday, today, and tomorrow. … Every single day feels the same -- Saturday feels no different from Wednesday,” she said. Some lines have also been completely blurred. “For example, being on an important work call while my son is practicing the trumpet in the background,” Berman noted. She’s been trying to call at least one person a day to catch up. And professionally, she launched a weekly virtual happy hour for the league office staff.
  
  
• Berman and her boys started watching Netflix' “All American” together, which gave her the chance to explain the meaning of “binge watching” to them. They are also huge “Survivor” fans (Parvati and Tony are a few of her favorites this season, for any other fans out there). For exercise (12:30 or 6pm depending on the day), Berman runs, takes a spin on her Peloton, does yoga, strength training or gets outside for a hike if the weather cooperates.

• Want to share what your work-from-home setup is like? Reach out to SBJ's David Rumsey.

Berman on a typical day sets up shop in her living room with a view of her front yard

SPEED READS

• The Ringer’s Ryen Russillo made the case for why a salvaged NBA postseason would be an important step in the right direction for the sports industry, even if it wouldn’t solve larger societal issues still at hand. Speaking on “The Bill Simmons Podcast,” Russillo said, “It isn’t just the owners and the players and then us selfishly having something. It’s everybody. Knowing that people at ESPN could be losing jobs, or furloughed. They’d be safer. Same thing TNT, ABC. And then every single podcaster, any blog that has any revenue-generated to covering basketball. Yes, it’s not waitresses and waiters and bartenders and that kind of thing. But we’re still talking hundreds of people being more secure if we have a product to cover.” Simmons: “Probably thousands.”
  
  

• Atlanta United FC will be one of the first teams to participate in voluntary individual player workouts at their training ground beginning tomorrow, writes SBJ’s Mark J. Burns. The announcement comes after MLS said last Friday that it would allow clubs to open up their outdoor practice fields for individual workouts based on guidelines from state government and public health officials. Workouts for Atlanta this week will be tomorrow and Friday with 6-7 players involved in each of the three separate daily sessions, the club said. Media won’t have access to the workouts. The MLS moratorium on small group and full team training sessions is still in place through May 15. 

• Sharks President Jonathan Becher, whose team is supporting more than 1,800 part-time staffers through a COVID-19 relief fund, won't hear about the possibility of raising ticket prices next year to compensate for financial losses. Becher: "No. Absolutes in life are a terrible thing to say, but no. It's not something we've been thinking through. I currently can't imagine a circumstance where that would happen. ... Hockey is built as a blue-collar sport. I don't want to give up that tradition."
  
  
• A new documentary film from Red Bull Media House about world champion surfer Carissa Moore will premiere this Thursday on Refinery29’s Facebook Watch, reports SBJ's Chris Smith. The digital debut will be followed by a live Q&A with Moore. Directed by Peter Hamblin, “RISS. A Film about More Love with Carissa Kainani Moore” follows Moore through the 2019 World Surf League season and captures her qualification for the Tokyo Games, which will feature surfing’s Olympic debut. The movie was originally slated for a live premiere as part of the Olympics’ "100 Days Out" celebration in N.Y. before the Games were delayed until 2021. “RISS” will be available on Red Bull TV beginning May 11.
  
  
• New Cowboys QB Andy Dalton acknowledged that the pandemic played a significant part in his free agency decision, as Dalton and his family chose to remain in their hometown of Dallas rather than relocate to another part of the country. Dalton told ESPN's Adam Schefter the coronavirus factor was "definitely a part of it." Dalton: "It wasn’t the only deciding factor. But for us to stay close to home, not have to move, not have to figure out the whole logistics of that transition, especially during a time like this when there’s a lot of unknowns of what’s going to happen and when things are going to start up. … (That) all factored into my decision.”
  
  
• This past Saturday in a field adjacent to ANC’s office in Argyle, Texas, area residents took in a “Community Drive-in Movie Night.” Denton County Judge Andy Eads addressed the nearly 300 people who listened on their car radio and gathered to watch “Remember the Titans.” Donations were accepted via Venmo to benefit those in need. ANC, whose parent company is Learfield IMG College, plans to actively market this concept across the nation and looks to do another one in Argyle later this summer.

Argyle, Texas, residents recently took in a “Community Drive-in Movie Night" to watch “Remember the Titans”

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:
  
  
  • Korean Baseball League Begins Season As World Curiously Looks On
  • No Guarantee NFL Teams Slated For Int'l Games This Year Will Go In '21
  • Texans To Hire Facility Hygiene Coordinator For NRG Stadium
  • Devils Offering Ticket Holders Full Refunds Or Option To Donate
  • USTA Committed To Holding U.S. Open This Year In Some Form
  • Top Golf Organizations Establish Plan To Return, National Protocols
  • Taiwanese Baseball Taking Rigorous Steps To Quell COVID Outbreak
  • Jim Harbaugh, Wife Sarah Donate $100,000 To COVID-19 Fund

SBJ UNPACKS -- WEATHERING COVID-19

• Check out the most recent editions of our "SBJ Unpacks" podcasts around COVID-19:
  
  
  • Bill King speaks with Dolphins President & CEO Tom Garfinkel about the franchise’s vision for a “new normal."
  • Harris Blitzer Sports & Entertainment's Hugh Weber on his experiences leading the Hornets through crisis during, and following, Hurricane Katrina.
  • PBR CEO Sean Gleason discusses how the circuit held its first event this past weekend since the COVID-19 shutdown began.
  • SBJ's Bill King & Mark Burns talk about a path back from this pandemic with a new normal for the sports industry and the potential for fanless games.
  • How are brands navigating the pandemic? What awaits on the other side? Ed Horne, president of creative firm 160over90, shares his thoughts.

THE GRAND FINALE! PART 4 OF CAA WORLD CONGRESS COMES TO YOU TOMORROW

• We’ll have interviews with WNBA Commissioner Cathy Engelbert, Fanatics Executive Chair Michael Rubin, CAA Sports Co-Head Howie Nuchow, NBPA Executive Director Michele Roberts, Activation Blizzard Chief Executive Pete Vlastelica, Sports Medicine Research President Dr. Daniel Eichner and top execs from Learfield IMG College, the NHL, CAA Sports and Luker on Trends.
• There’s also a new time for the finale. Our program starts at 1:45pm ET and ends with a happy hour via Zoom from 4:00-5:00pm. Go to www.WorldCongressOfSports.com to register and gain on-demand access to dozens of interviews and sessions from the previous three World Congress episodes.

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.