SBJ Unpacks: The Road Ahead -- Big Moves Forward For MLS, NASCAR

Soccer fans learned today they have only one more month to wait until players hit the pitch again in the U.S. SBJ’s Mark J. Burns reports that MLS is officially coming back early next month.

Beginning on July 8, all 26 MLS teams will compete in a spectator-less tournament played at the ESPN Wide World of Sports Complex in Orlando. The event will make MLS the nation’s first major team sport to retake the field following COVID-19 lockdowns (the NBA is slated for a July 31 return at the same facility). It could be a saving grace for the league, which shut down just two weeks into the season and is facing a potential $1 billion revenue hit, according to commissioner Don Garber.

But beyond getting back in action, the league’s new plans raise an interesting question: Will airing a World Cup-style tournament in the midst of an empty sports calendar be enough to catapult MLS into the national spotlight? We’ll see.

Meanwhile, NASCAR continues moving forward -- particularly in the stands and on the grounds at its tracks.

NASCAR LOOKING TO BRING BACK HOSPITALITY GUESTS THIS MONTH

• NASCAR is working with industry partners to start allowing hospitality guests back at races this month, reports SBJ’s Adam Stern, at the same time that the sanctioning body is bringing fans back to the grandstands.
  
  
• NASCAR yesterday confirmed that it will have 1,000 military guests at this weekend’s race at Homestead-Miami Speedway, to be followed by 5,000 regular fans at Talladega next weekend. While details on hospitality guests weren’t noted in that announcement, NASCAR Exec VP and Chief Operations & Sales Officer Daryl Wolfe confirmed to SBJ that the series is also starting to get some VIPs, sponsors and other guests back into suites.
  
  
• Wolfe indicated that the plan for hospitality guests at Talladega is “more expansive” than for Homestead, and, “consistent with how we’re approaching fans, we’re taking a very slow, measured and methodical approach.” But he said, “We understand that, like our fans, our partners want to come back, too -- they’re just as passionate about the sport and want to be at the track.”
  
  
• Getting sponsors and their guests back to the track is important not just for the sanctioning body but also for teams, many of whom use at-track hosting programs as a key asset in the packages they sell. Wolfe was also asked about whether team merchandise haulers will be back at any of the races, and said the series is talking with some teams about that possibility.

MLB, UNION FACE INCREASED SENSE OF URGENCY

• MLB Commissioner Rob Manfred appeared on both MLB Network and "SportsCenter" early this evening where he again promised that there would be baseball in 2020. Manfred said the league will soon make a counter-proposal “in the players’ direction” and added that he hopes players “get off of the 100% salary demand.”
  
  

• SBJ's Eric Prisbell writes that two positions have emerged in these contentious negotiations:
  
  
  • MLB is adamant that no postseason games will be played beyond October.
    
    
  • Players remain adamant that they will not budge from their contention that they should receive the full prorated salaries. 

• Unless those parameters unexpectedly change, baseball will go one of two ways:
  
  
  • Manfred mandates in the next week or so a 50-game mini-season. That would likely result in the union filing a grievance and opposing an expanded postseason in addition to exacerbating the distrust and tensions between the two sides in advance of the CBA negotiations in 2021.
    
    
  • The two sides finally reach a negotiated return-to-play deal (a scenario preferred by both sides).
    
    
• One of the positives from the union's latest counter-proposal, which calls for players to receive full prorated salaries in an 89-game season, is that it came just one day after MLB offered its 76-game proposal. An increased sense of urgency to reach an accord exists because the window for a shortened season is narrowing by the day. July 10 is viewed as the earliest the season can now begin, and that may be optimistic.
  
  
• Two elements to watch: Will the league remain steadfast that players share in some risk of staging the postseason, which could include as many as 16 teams? And how will the two sides reconcile the league calling for players to sign an "acknowledgement of risk" waiver before they play? 

CONCESSIONAIRES PREPARE FOR NEW REALITY

• Social distancing and other now standard restrictions and expectations will greatly alter the experience for sports fans when they’re allowed to return to stadiums and arenas -- especially when it comes to what they encounter when buying concessions. Longtime food service consultant Chris Bigelow joined SBJ’s Bill King to discuss what those changes likely will be, and what it all might cost, on the latest episode of the SBJ Unpacks: The Road Ahead podcast.
  
  
• “You’re going to see a lot more packaged soda, packaged beer, no more refills.” Bigelow said. “Keep the menu simple and try to move the people through. And then as it gets going and people get used to the procedures, I’m sure you can expand. But I think you’re going to try to keep it pretty simple, at least at first."
  
  
• While modeling is early and estimates vary, concessionaires could see costs increase by 30-40%, Bigelow said. 
  
  
• “I tell (teams), be prepared, because concessionaires are going to want to come in and renegotiate their deals,” Bigelow said. “It’s a combination of not only additional cost, but I think there’s going to be reduced revenues. I don’t think people are going to spend as much when they come to a stadium. I want to go see the event, but I think I’ll just stay in my seat. Not get up. Not walk around and by that additional ice cream cone -- at least until I get comfortable again.”

MLS ROUNDUP: PLANS FOR RETURN-TO-PLAY IN ORLANDO

• MLS' tournament-style return will feature matches almost every day starting at 9:00am, 8:00pm and 10:30pm ET to avoid playing in the summer heat, writes SBJ's Mark J. Burns. MLS Commissioner Don Garber said the opportunity to have all 26 clubs in a controlled environment in Orlando "enables us to help protect the health of our players, coaches and staff."
  
  
• Clubs will begin arriving in Florida on June 24 for preseason training. Teams that are able to have full team training in their home markets must arrive no later than seven days prior to their first match. There will be an exhaustive COVID-19 testing plan for players and other personnel in attendance. MLS has also left the door open to other possible play beyond the tournament this season, but nothing has been decided.
  
  
• When play resumes, Garber does not expect much in terms of new revenue opportunities, but he did say MLS will be testing some virtual ad tech within broadcasts. Beyond that, Garber, on a conference call this afternoon, said the main focus is to “retain some of the revenue that we planned for in our agreements with sponsors and broadcasters.”

JONATHAN KRAFT AT FOREFRONT OF REVOLUTION'S RETURN

• The Revolution on Monday in Foxboro held the first, full-contact pro sports practice in the U.S. since mid-March. While many other MLS teams followed suit later in the day, the “fact that the first practice happened in Massachusetts -- possibly the most cautious state in the country in terms of reopening during the COVID-19 pandemic -- makes it a bit of a milestone,” per NBC Sports’ Tom Curran.
  
  
• Curran, on his “Patriots Talk” podcast, credited Revolution Owner/Operator Jonathan Kraft, who also serves as the Board of Trustees Chair for Massachusetts General Hospital, for the club’s safe return. Curran: “Jonathan has been really attuned to the intricacies of this pandemic. … His insight and his ability to get the Revs up and running and put together a plan that the state and local officials would sign off on? Indispensable. It’s also going to put the Patriots in a prime position to be able to start up.” 
  
  
• More Curran: “The Krafts are often scrutinized for their relationships … but it’s really hard to overstate how much their relationships have benefited the commonwealth. They’re benefiting again because of (Jonathan Kraft’s) involvement with MGH. They’re bringing back soccer, and the Patriots are going to learn from what MLS does.”

The Revolution under Kraft held the first, full-contact pro sports practice in the U.S. since mid-March

WTA/ATP CINCINNATI EVENT LOOKS TO FILL LEADERSHIP VOID

• The Western & Southern Open, one of the top tennis events in the world, is just 65 days from its scheduled start and now must bring a new exec to run the Cincinnati event. CEO & Tournament Director Andre Silva is leaving his position event next week, meaning any exec brought on will have to navigate a new position just as pro tennis looks to get back on track amid a pandemic. The N.Y. Times reported last week that there are discussions about moving this year’s W&S Open to N.Y., where it would be played prior to the U.S. Open. The ATP and WTA are expected to announce updates to their calendars later this week.
  
  
• The USTA is majority owner of the 121-year old W&S Open, which drew close to 200,000 fans last year, so expect the tournament to lean heavily on internal expertise, especially if it moves temporarily to Flushing Meadows. Sources tell SBJ’s Bret McCormick that USTA Managing Director for Major Events J. Wayne Richmond is a likely interim candidate, but needs approval from the ATP and WTA. Richmond has overseen the U.S. Open Series, which includes Cincinnati, since its inception in 2004. W&S Open COO Katie Haas, who was hired from the Red Sox in 2018, could also be considered for a bigger role. 
  
  
• In other tennis leadership news, USTA Chief Exec of Professional Tennis Stacey Allaster was named the new tournament director of the U.S. Open this week.

GETTING BACK TO WORK WITH ESPN’s DAVID ROBERTS

• Despite a dearth of live sports, ESPN studio shows have had plenty of news to follow, whether it be various league restart plans or the sports world's reaction to the death of George Floyd. That means ESPN Senior VP/Production David Roberts has been in Bristol to oversee what have been mostly remote productions of “Get Up,” “First Take,” “Highly Questionable,” “Around the Horn,” “PTI” and “SportsCenter” (6:00pm edition). Roberts also oversees ESPN Radio's national talk shows.
  
  
• Roberts told SBJ's David Rumsey, “Every day presents new challenges and new opportunities to provide our viewers with comprehensive, smart, contextual coverage. ... While they might not be the normal sports highlights, these are critically important times."

• Roberts is one of only a few hundred working from the Bristol campus right now. He said, “Normally there may be several thousand. ... The biggest challenge has been dealing with all of the ebbs and flows of what's going on. It's an enormous responsibility for all of us to get this right.”
  
  
• This year's fall sports calendar could be a bit crowded, and Roberts is excited for the challenge. “We’ll have the culmination of the World Series and the NBA Finals and the start of college football and NFL and the major golf tournaments and U.S. Open (tennis) all at the same time. ... It’ll be a nice challenge to have, especially given what we’ve had to deal since the beginning of this year.”
  
  
• With the sensitive nature of recent current events, Roberts felt it was necessary for him to be on site more often. “Being in one location where all various programs and the leaders of the programs can reach me instantly was important,” he said. And of course, the news never stops. Example? While Roberts was on the phone with SBJ last week, Drew Brees issued an apology for his kneeling comments and Roberts was already figuring out what coverage would look like for the rest of the day.

Roberts is one of only a few hundred ESPN employees working from the Bristol campus right now

OUTSIDE CONTRIBUTORS: SPONSORSHIP DYNAMICS

• Tonight's op-ed contribution is from Marquette professor Jim Pokrywczynski, who writes under the header, "Sports Sponsorship In The COVID-19 World: Impact, Strategies And Tactics."

• "The pandemic-related changes to sports create a number of implications for sponsor relationships. The biggest impact is not having large gatherings of fans on-site for brands to interact with, see the sponsors’ signage, experience the sponsored areas within the facility, partake in the food, drink and other hospitality options. Sponsors will not have opportunities to utilize sampling, product demonstrations and other on-site activations. Media coverage when sports resumes will deliver some brand exposure, but the lack of engagement will limit the impact."
  
  
• To read Pokrywczynski's full contribution, click here.

CHECK OUT THIS WEEK'S SBJ

• Don’t miss this week’s issue of SBJ. Meanwhile, if you’d like to receive the print issue at your home office, update your delivery address at any time within your account settings here. If you have any questions about how and where to receive your print copy of SBJ, please email help@sportsbusinessdaily.com.

SPEED READS

• NASCAR late this afternoon banned the Confederate flag from its races and properties. The move comes amid social unrest around the globe following the death in police custody of George Floyd.
  
  

• NBA team personnel are "expected to be asked to submit personal medical histories to a panel of physicians who would review the individual risk of serious illness due to any spread of the coronavirus in the NBA's bubble environment in Orlando," sources told ESPN. It is "unclear what authority, if any, that panel might have in prohibiting any personnel from attending the league's restart -- or placing limitations upon them -- but there is some anxiety about such limitations among teams, sources said."
  
  
• Bitten by the COVID-19 crunch, Allied Esports has refinanced $14 million worth of debt obligations and gotten extensions on payments in a bid to stay solvent, reports SBJ's Adam Stern. Allied Esports CEO Frank Ng: “This refinancing will provide the company with additional financial flexibility over the next 18-24 months as we continue to look for ways to optimize our capital in a manner that allows us to better navigate economic uncertainties ... while creating value and growth for the future.”
  
  
• PGA Tour Commissioner Jay Monahan confirmed today that "virtually every player and caddie" traveling to Ft. Worth for the Charles Schwab Challenge was tested for the coronavirus, with no positive tests as-of-yet before tomorrow's first round. Monahan told CNBC, "We're executing our testing plan, but then an on-site safety plan and our sport lends itself to social distancing. ... It's about returning this week and doing so in great fashion, but it's also about a sustained return."

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. Select stories from Sports Business Daily are free, outside the paywall, for the foreseeable future. Below are today's headlines:
  
  
  • Garber Goes In Depth On MLS Return, Sport's Response To Injustice
  • Inside MLB Network's Plans For Two-Day Coverage Of Virtual Draft
  • Tokyo Games To Be Scaled Down To Cut Costs, Protect Fans
  • D-backs Owner Says MLB Could Benefit From Revenue Sharing
  • Notre Dame's Pac-12, Neutral-Site Games Still Up In The Air

SBJ UNPACKS -- THE ROAD AHEAD

• Check out the most recent editions of our "SBJ Unpacks" podcasts around COVID-19:
  
  
  • Food services consultant Chris Bigelow on how social distancing policies and other aspects of a changed world will impact sports venues.
  • Turnkey Search Chairman & Founder Len Perna on the state of the sports job market.
  • Bucks President Peter Feigin joins Bill King to discuss the team’s path back to basketball, and through civil unrest.

NOMINATIONS OPEN FOR SBJ GAME CHANGERS!

Online nominations for Game Changers are now open. We’ll be accepting nominations through midnight June 21. The Game Changers event will be Oct. 27-28, and a special section will run in SBJ in the Oct. 19 issue.

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.