SportsBiz - The Business of Sports Illuminated

You Have Six Months to Fund Your Offshore Betting Account

noreply@blogger.com (Mark) — Sat, 28 Nov 2009 17:46:05 PST

Rep. Barney Frank (D-Mass.), Chairman of the House Financial Services Committee wants to repeal the restrictions on online gambling and would like to legalize and then tax it since we all know the government could use all the revenue it could get. So, far, his efforts have not been fruitful but he has not had the weight of his position behind him chairmanship and a Democratic Congress behind him until now.

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, making it a crime for financial institutions to process transactions used to place bets online. In other words, no more funding your offshore account by wire transfer from your bank or by using your Visa or MasterCard. However, following intercession by Rep. Frank and others, the US Treasury and the Federal Reserve gave financial institutions six months to comply with the new rules. The delay will give Rep. Frank additional time he needs to attempt to repeal UIGEA and the related underlying prohibition on online gambling itself. The compliance extension will give legislators time to “undo this ill-advised law,” Frank said in a news release today.

UPDATE: The Wall Street Journal has an interesting article on the effect that the legalization of online gaming could have on various existing US gambling operations and companies lining up for the new opportunities.

Could Dickie V Call the Final Four in 2011?

noreply@blogger.com (Mark) — Thu, 26 Nov 2009 06:08:07 PST

Thanksgiving Week traditionally brings the Detroit Lions and Dallas Cowboys on Thanksgiving Day and a raft of college football rivalry games on the weekend, usually starting on Thanksgiving with Texas - Texas A&M, as it does this year. It also marks the first intense week of college basketball with preseason tournaments across the country and then some, from the Virgin Islands and Cancun to Hawai'i and Alaska. Yes, just because you can't find the Great Alaska Shootout on ESPN doesn't mean it isn't being played or isn't being televised. Check your local Fox Regional Network, it should be there in the late night listings.

The landscape of these preseason tournaments has changed in the last couple of years and if it nows seems as if they are all on ESPN, it's because most of them are owned and operated by ESPN Regional, the WWLS, event marketing and syndication arm. SI's Luke Winn has an excellent post up giving the history of how we got to where we are today and why it's so hard for you to find the Alaska Shootout, what was always one of my favorite tournaments (I don't sleep much so I'm a sucker for late night live sports).

However, the most interesting nugget he threw into the post came at the end. The NCAA may opt out of its 11-year, $6 billion contract with CBS to broadcast the men's basketball tournament by July 31, 2010. Not coincidentally, the NCAA contract with ESPN for the preseason NIT expires on July 31, 2010. I'm sure that the folks in Bristol are already hard at work trying to determine how much it's going to take to entice the NCAA to opt out of its CBS contract. Since I'm confident that even if the NCAA opts out, the contract would give CBS first shot at renewal, the new contract number is going to be considerably north of $6 billion. Should ESPN land March Madness to go along with the women's tournament, not only would it be one more road to the WWLS' goal of total domination of the sports world, but it would inflict upon the world, likelihood of Dickie V calling the Final Four, a prospect so depressing not even Digger's ties could cheer me up.

MLS Expansion: Montreal 19th City? Becks Has Option for 20th Team

noreply@blogger.com (Mark) — Mon, 23 Nov 2009 06:30:33 PST

In interviews on the sidelines of the MLS Cup over the weekend, MLS Commissioner Don Garber confirmed what many felt was obvious following the last expansion round: Montreal is the likely destination for the 19th MLS city. Entry into Montreal isn't likely until 2012, but Montreal must first get a stadium built.

Potential owner Joey Saputo, owner of the NHL Ottawa Senators, has a second division team playing in 15,000 seat Saputo Stadium. He and MLS are working on a stadium renovation and expansion deal with the city and province and assuming that is worked timely worked out, expect Montreal in 2012.

Beckham may also be joining in 2012 with the 20th team. His current contract grants him an option for a team upon his retirement from playing with the Galaxy, which,this weekend, he said that he plans to exercise. He is currently looking at potential cities and refused to name them. Montreal is not one of them however. Don't be surprised if he gets involved in a second team in the New York area, which has been on Garber's agenda for some time.

NFL Wakes Up; Adopts Saner Policy on Concussions

noreply@blogger.com (Mark) — Mon, 23 Nov 2009 05:17:59 PST

It almost took an act of Congress. The NFL has long ignored the implication of concussions suffered by its players. In addition, the current medical system of the league whereby it is the team doctor who certifies to the coach and GM that a player is ready to play is so filled with obvious conflicts of interest that it's a wonder that the NFLPA ever agreed to it.

Fast forward to six weeks ago, a study sponsored by the NFL is released which finds that Alzheimer's and other cognitive disorders occur in former NFL players at a rate of up to 19 times higher than normal for men ages 30-49. The NFL tried to discredit the study, as it has with most other studies implicating football, concussions and cognitive disorders later in life.
Following the release of the study and the NFL's apparent refusal to change its policies in response to it, the House Judiciary Committee conducted a hearing on the issue last month.

Last night, Commissioner Roger Goodell indicated that the NFL has finally adopted the rational policy of requiring teams to use an independent neurologist for advice while treating players with brain injuries and hopefully for final medical certification on whether a player is ready to return to contact in practice and then to game action. While the full details of the
new policy are not yet public, Goodell was in full spin mode on NBC last night:

"As we learn more and more, we want to give players the best medical advice. This is a chance for us to expand that and bring more people into the circle to make sure we’re making the best decisions for our players in the long term.”

The shift in policy, laudatory as it is, will still have to define who is independent in order to minimize conflicts. The other problem which is harder for any policy to impact is the tendency of players to hide concussion from the team so they can keep playing in a league without guaranteed contracts. It will require keen observation from vigilant and highly trained medical and training staffs to monitor players, hoping to catch those who may be hiding concussions. Having independent neurologist available to whom players can report concussions and other brain related injuries without fear of the team immediately learning of them should go a long way towards easing the players fear of reporting injuries that currently exists.

LPGA 2010 Tour Dates Highlight Difficulties

noreply@blogger.com (Mark) — Sat, 21 Nov 2009 06:03:10 PST

As we all know, sports has been particularly hard hit by the Great Recession as companies slash marketing budgets, fans are pressed to come up with cash for the ever increasing ticket prices, and TV ratings for most sports are tanking as narrowcasting takes holds. One of the worst hit sports is the LPGA, which has undergone a player revolt leading to the departure of Carolyn Bivens, and the exodus of sponsors, resulting in singnificant holes in the tour schedule.

The reality of the new marketplace became ever more evident this week with the announcement of the 2010 tour schedule. The number of tournaments is 24, down from 27 this year and 34 two years ago. Of equal importance, in 2008, there were 24 LPGA events played in the U.S; next year, only 13. Today's Wall Street Journal has a very good overview of the state of the LPGA tour and the challenges it will face with so few tournaments in the US.

As the global economy begins its recovery, it is incumbent upon new LPGA commissioner Michael Whan to integrate international events with the LPGA to attempt to get a unified tour which would be better able to not only coordinate scheduling but approaches to sponsors. The membership of the tour is increasing international but the importance of the US fixtures cannot be overstated. The 10 year contract with the golf channel means the tour now has a regular television outlet but without broadcast TV exposure, it may only reach hardcore fans. Those are not sufficient for the long-term viability of the tour. A way has to be found to better market the tour's best players and personalities to the public, even if not especially, away from the course. Whan's consumer marketing background, not his sports business background, may prove to be his most valuable asset.

Bayern Munich Lands Highly Lucrative Jersey Deal

noreply@blogger.com (Mark) — Thu, 19 Nov 2009 07:13:41 PST

In the high stakes world of European club soccer, nowhere does the battle takes place for higher stakes than for the name on the front of the jersey. Leading the pack is Real Madrid, the Nuevo Galacticos ribery.jpgrecently renewed its deal with online gaming site Bwin, extending it for three years. Following Real Madrid's summer shopping spree, the price was undoubtedly and although it hasn't been publicly released, Real Madrid is almost universally believed to have the highest priced jersey sponsorship in Europe.

Now, along comes Bayern Munich who gets Deutsche Telekom to re-up for three years at the eye-popping price of $37.3 million, knocking Manchester United out of second place. However, this deal is performance based, reducing if the club doesn't make the Champions League, or fails to advance, for instance, and increasing if it does well. Considering that the club is currently sitting in eighth place in the Bundesliga, that $37.3 million may be substantially reduced.

The 25 Highest Paid Coaches in the World

noreply@blogger.com (Mark) — Tue, 17 Nov 2009 21:20:07 PST

What do you think it would take to be among the highest paid coaches in the world? Wouldn't you imagine that you should be at the very pinnacle of your game, having won mutliple championships either for one team. or perhaps, if you're a bit peripatetic, for multiple clubs? As this list makes clear, the expectation of winning is often sufficient to obtain the elusive lucrative contract, especially at the lower end of this extraordinary list of overpaid managers. See, for example, entrants 25, 24 and 20. The entire list can be found here.

The list is headed by Luis Felipe Scolari, the former coach of a legendary Brazilian World Cup winning team, hired and sacked at Chelsea in less than a year and currently coaching a club in Uzbekistan but enjoying Roman Abromavich's millions nonetheless. Bringing up the rear, so to speak, are those two championship coaches Charlie Weiss and John Calipari. Weiss got that now infamous 10 year, $30-40 million contract extension barely halfway through his first season and seems well on his way out of a job at season's end.

Calipari, who was deemed "too hot to handle" when Kentucky went looking for a coach three years ago, but two less successful seasons than Big Blue fans were accustomed to made Cal look more appealing. Of course, making it to one of the two Final Fours he has managed to take a team to didn't hurt. UK of course, just ignored the fact that both of those Final Fours have been vacated by the NCAA, making Cal the only coach to ever have that happen.

Supreme Court Won't Hear Redskins Case - Name Stays For Now

noreply@blogger.com (Mark) — Tue, 17 Nov 2009 08:22:40 PST

After a tortuous 20 year legal battle, the US Supreme Court refused to hear an appeal of a lower court's ruling that activists had waited too long to bring a case asserting that the Redskins name was so offensive that it did not deserve to receive trademark protection. The refusal of the Supremes to hear the appeal effectively ends this case, leaving Dan Snyder in possession of the Redskins name and logo, which he has steadfastly refused to alter.

However, it should be noted that this case was dismissed on technical grounds and not on the merits of the original complaint. A second suit has been filed which apparently should meet any objection on the basis of laches due to the plaintiffs different circumstances and thus should place the merits of the issue squarely in front of the federal courts. Of course, given the track record of this litigation, I may not be around to see the final resolution.

Federer Nets Big Deal with Credit Suisse

noreply@blogger.com (Mark) — Tue, 17 Nov 2009 06:16:43 PST

Who says all banks are pulling in their spending. Tennis great Roger Federer has landed a ten year deal, which should take him right into retirement, with Credit Suisse. The deal thought to be worth in the neighborhood of $2,000,000 per year, which puts it in line without with Federer's other endorsement deals. The twist here is that Credit Suisse's payments will be made diretly to the Roger Federer Foundation, the charity he established which primarily provides aid and promotes education and sport to disadvantaged children in Africa.

Federer also recently signed an endorsement deal with Lindt, the Swiss chocolatier, for five years at $1,500,000. Lindt joins his other blue chip sponsors including Nike, Rolex, Gillete and Merecedes Benz. Great company Roger keeps, isn't. Must be nice to be the best in the world at what you do.

Mazel Tov Yuri, Israel's First World Champion

noreply@blogger.com (Mark) — Sun, 15 Nov 2009 15:48:08 PST

Last night's Miguel Cotto-Manny Pacquiao title match was being hailed as the return of boxing for the press attention it drew and the number of celebrities who attended the fight. The early rounds didn't disappoint but after Pacquiao dropped Cotto in the fourth round, Cotto was never the same and Pacquaio hammered him relentlessly until the fight was stopped at 55 seconds of the 12th round. Pacquaio cemented his reputation as pound for pound the best boxer in the world and captured his seventh title in seven weight classes.

The undercard featured a WBA super-welterweight bout between Daniel Santos and Yuri Foreman, an Orthdox rabbinical student, who came into the fight with an unblemished record of 28-0, with 8 knockouts. Foreman won a one-sided, unanimous decision becoming the first Israeli to hold a world championship in any boxing weight class and undoubtedly the first rabbi or rabbinical student to hold a belt. Foreman led by at least six points on all three judge's cards, two had it 117-109, one had it 116-110. In last week's run-up to the fight, the New York Times did a nice feature piece on Foreman, which you can read here.

5 Clubs Beakaway from USL-1 and Form New League

noreply@blogger.com (Mark) — Thu, 12 Nov 2009 20:10:05 PST

The current situation in professional soccer in the US and Canada at the level below MLS can charitably be described as chaotic. Earlier this year, Nike sold USL-1, the recognized, and despite its name, Division II soccer league in the US and Canada. Following completion of the sale, several of the clubs expressed the desire to leave the league and form a new league which would be owned and managed by the clubs themselves as required by FIFA rules, and as exists in almost every professional league in almost every professional sport in the world.

The five clubs, the Carolina RailHawks, Minnesota Thunder, Miami FC, and ironically the two finalists in the USL-1's championship game, the Vancouver Whitecaps and the Montreal Impact, formed an organization known as the Team Owners Association and began the discussion about forming a new league. The owners of the former Atlanta Silverbacks and the owners of a new team in St. Louis joined the group, which on November 10, filed an application for sanctioning as a Division II league in the US and a Division I league in Canada. A copy of the group's press release and a short description of each club's ownership and management can be found at Inside Minnesota Soccer here. USL-1 reacted with its own press release which can be found here.

I believe that FIFA and/or USSF require that a league have 8 teams in order to be sanctioned. By my count, it would appear that the new league as now constituted only has 7. Not only would it need at least one more for play in 2009-2010, but Vancouver is scheduled to join MLS in 2012 and the new league would then need to replace it.

Suffice it to say, there will be turmoil aplenty in the lower divisions of professional soccer here over the next several months, which is not something that will advance the sport in the months leading up to the World Cup. This is a time when you have an opportunity to grab the attention of casual fans as they begin to pay attention to World Cup hoopla. MLS needs to devote all of its promotional energy in that direction. It would be helpful if the Division 2 league would be doing the same and not involved in some internecine battle over who was going to control whatever meager profit is going to be generated by whichever league survives.

Leafs Prove Losing Can Pay in the NHL

noreply@blogger.com (Mark) — Thu, 12 Nov 2009 18:11:00 PST

Forbes is out with its annual look at the business of the NHL and its valuation of NHL clubs. A number of things are striking at first glance of the valuation of the franchises. The first is that it is clear that in Toronto, you can put six junior league players on the ice and you'll pack the Air Canada Centre. A losing Leafs team once again is the most valuable franchise, worth $470 million according to Forbes.

The second most striking thing to me is the continued strength and vitality of the Original Six. Now that the Blackhawks have joined the 21st century with next generation of Wirtzes in control of the club, the only team not in the Original Six to crack the top six in value is the Flyers and they check in at number 5, just ahead of the Bruins and the Blackhawks.

It is clear that the SunBelt strategy has proved to be a failure. Aside from the arena challenged Islanders (who could also use a new owner with more diplomatic and political skills), the remaining four least valuable franchises in the league are in the Sunbelt, in descending order: Florida, Nashville, Atlanta and, at the bottom, the now league-owned Coyotes.

What's to be drawn from this year's values? While you shouldn't never rush to conclusions based on one year's data, this much is clear: the NHL needs to do what it can to return to ESPN if it wants to be in the American sporting consciousness. Versus may be good for the league in other ways, but no sport can really survive anymore without ESPN, although it will be interesting to see what develops out of the proposed merger of NBC Universal and Comcast. That will bring both of the NHL's national contracts under one roof, as Comcast owns Versus, and will give the new entity much of the flexibility that ESPN often has with its management of ABC Sports.

The other major conclusion is one we have been discussing for many months, that is recognize the failure of the Sunbelt expansion and begin looking to move several franchises north, starting with Phoenix. The Coyotes cannot survive in Phoenix and following this year should be moved, preferably to Hamilton. The Predators and Panthers should also look to move to Canadian cities or possibly Hartford, Portland or Milwaukee. Tampa Bay may also need to move as will Atlanta, probably sooner rather than later. It will be highly disruptive to relocate multiple franchises in just a couple of years, but the likelihood of significant financial difficulties for them if relocation does not occur is too great to ignore.

Interesting Reading

noreply@blogger.com (Mark) — Wed, 11 Nov 2009 09:20:44 PST

Below is a collection of links to articles I have read lately that I think you may find interesting:

Co-owner of Boston Celtics running for Ted Kennedy's Senate seat (Bloomberg)

Battle of the Blades, Canada's answer to Dancing with the Stars naturally takes place on ice (NYT)

Twenty-Five most valuable blogs, and no SportsBiz was not among them (24/7)

Nike extends its sponsorship of USABasketball for 4 years at $4 million per year (Sportspromedia)

At least 25 college football coaches make more than $2 million a year, up from 12 in 2007, and a mere 9 in the dark old days of 2006 (USA Today)

Should football be played without helmet to cut down on head injuries ( I think no pads or helmets a la Aussie Rules Football may significantly cut down on all injuries)(WSJ)

2020 Olympics

noreply@blogger.com (Mark) — Wed, 11 Nov 2009 07:22:35 PST

Now that the 2016 Summer Olympics have been awarded to Rio, campaigning has begun for the 2020 Games. Candidate cities are starting to express their interest or at least begin a whisper campaign of their candidacy. In addition, applications for the 2018 Winter Games have been received by the IOC from three cities, with cities lining up to bid for the 2022 Games. The three bids received for 2018 are from Annecy, France; Munich, Germany and PyeongChang, South Korea. The decision will be made by the IOC at its July 6, 2011 meeting in Durban, South Africa.

Istanbul, Turkey recently announced that it would pursue a bid (its fifth) for the 2020 Summer Games, joining a list that currently includes Tokyo, Rome, Venice, Cape Town, Johannesburg and Durban South Africa, (only one South African city will ultimately submit a bid, to be chosen bu the South African Olympic Committee), Dubai; Doha, Qatar (the two UAE members may ultimately submit a joint bid). However, once the cities see what has happened to the London 2012 budget, they may have second thoughts.

The London 2012 budget has been presented to Parliament as 9.325 billion pounds. According to an investigation by the Telegraph, the real figure is closer to 12 billion pounds, as the 2012 budget presented to Parliament fails to include certain infrastructure improvements and additional amounts spent by local agencies, among other matters. While the Games may be on track to meet the 2012 budget presented to Parliament, it does so only because these additional are not included. So the cautionary note to the candidate cities is to take notice of the 12 billion that London is spending and realize that a substantial amount of the necessary infrastructure and playing facilities, including the main Olympic stadium, which is often the most expensive single item, were already in place. That may well not be true for several of the candidate cities and the cost may be overwhelming.

Where's the Outrage: Clips Owner Pays Millions to Settle Racial Discrimination Charges

noreply@blogger.com (Mark) — Sat, 07 Nov 2009 19:44:11 PST

Donald Sterling is the not only the extraordinarily cheap owner of the Los Angeles Clippers, but a Southern California real estate developer with hundred of apartments throughout the Southland. Three years ago the Justice Department sued him alleging that he favored Korean tenants and systematically discriminated against blacks, Hispanics and familirs with children in renting apartments. The Justice Department, Sterling and his wife have agreed to settle the charges for a record of more than $2.7 million. The settlement agreement must still be approved by the judge presiding over the case.

According to the Justice Department, the settlement is "the largest monetary payment ever obtained" in a case of this type, and, says Thomas Perez, the assistant Attorney General for the Civil Rights Division, "the magnitude of this settlement should send a message to all landlords that we will vigorously pursue violations of the Fair Housing Act."

Indeed, it is a significant settlement and one that the NBA should take seriously, but have we heard a peep out of the Commissioner's office? Out of Sterling's fellow owners? How about the players union, you know, the one that represents an overwhelmingly African-American membership. I'm not trying to cast this strictly in terms of race, but if ever there was an issue off the court that one could expect the union and the owners to agree on it should be that an owner who has been forced into the largest settlement ever made by the Justice Department in a racial discrimination case ought to have some explaining to do.

Oh, while we're at it, where is the media in all of this? Outside of Yahoo! Sports, there has been virtually no media coverage whatsoever. So, what exactly is going on here? Why the crucifixion of Rush Limbaugh (justified in my opinion) and the free pass given to Sterling? Perhaps it's because Sterling is already a member of the club, and has been one for many years - so many he has practically perfected the art of making money while putting out a pathetic product. Remember that this is not the first charge of discrimination against Sterling in the last few years. Following his rather sudden firing of Elgin Baylor, Baylor filed a wrongful termination suit based on age and race discrimination. Of course, that had as much to do with his firing as it did any discrimination but still where there is smoke...

So, Mr. Commissioner, when do you plan on making a statement on the Sterling situation? When do we get to hear about the fine or suspension levied against Sterling that would surely be levied against a player in a similar situation? Just what action do you plan on taking to restore the good name of not just the Clippers but the NBA, because just as surely as Donald Sterling is forever tainted by this settlement, so too are the partners he keeps and it certainly doesn't help a business that claims to be open to the world to be harboring an owner who won't allow the world to rent an apartment from him.

Adidas Ends Relationship With UCF Over Jordan Wearing Nike

noreply@blogger.com (Mark) — Thu, 05 Nov 2009 10:48:09 PST

The UCF Knights basketball had an exhibition game against St. Leo Wednesday night and every player but one wore adidas shoes as is required by the school's contract with the shoe and apparel contract. The exception, as we would expect, was Marcus Jordan, Michael's youngest son. As a result of permitting Jordan the younger to wear Nike, adidas, predictably, has chosen to end its relationship with UCF following this school year, a relationship that has been valued at up to $3 million.

adidas spokesperson Andrea Corson, in an email to the Orlando Sentinel had this to say:

"The University of Central Florida has chosen not to deliver on their contractual commitment to adidas. As a result we have chosen not to continue our relationship with them moving forward."

UCF officials seemed to be surprised by the adidas reaction but I can't for the life of me understand why. Nor can I understand how they would allow a single student, even one with a superstar father, jeopardize a contract that would benefit every team fielded by the school. Just who exactly is running the asylum over there. To me, UCF handled this whole matter very amateurishly (if that is a word.)

Adidas Plans Huge Push Behind World Cup and New Zidane Boot

noreply@blogger.com (Mark) — Wed, 04 Nov 2009 21:28:48 PST

Athletic wear sales tend to run in cycles. Interest often peaks around major sporting events and companies assoicated with star athletes see their sales rise as the athletes medals move up the metal scale. With 2010 approaching, adidas sees its biggest marketing event of every four year cycle ahead and is now taking steps to position itself for maximum advantage. adidas expects operating margins to be around 5% this year, down from 9,9% in 2008. It expects a profitable fourth quarter and year despite extra marketing expense in anticipation of the push for 2010.

In addition to a major push to increase soccer sales as discussed below, adidas execs announced a new endorsement deal in a different sport at the press briefing today. Andy Murray has been signed to a five year, $24.5 million deal to endorse adidas clothes and shoes, starting in 2010. He will be dressed in adidas and wearing a new shoe, The Barricade, when he takes the court in Melbourne for the Australian Open, the first Grand Slam of the season. Murray, currently ranked number four in the world, joins other adidas tennis stars Novak Djokovic, currently world number three and Hopman Cup teammate Laura Robson. This is the first deal brokered for Murray by his new management company 19 Entertainment, whose most famous client, David Beckham, is also notably a long-time adidas endorser.

In its area of traditional strength, adidas is official athletic wear sponsor of the FIFA World Cup and intends to exploit that endorsement for all its worth in South Africa next year. It will outfit at least 10 national teams, including Germany, Spain and host South Africa. It will provide the balls and outfit all officials and referees. adidas is aiming to beat soccer related sales of $1.92 Billion it recorded in 2008 when the European Championship was last held.

To assist in that effort, adidas is debuting a new signature boot co-designed by former French captain and Real Madrid star, and notorious head-butter Zinedine Zidane, the Predator X, which is the tenth version of an iconic boot worn by Zidane when France won the World Cup in 1998 and also when he cost France the 2008 World Cup.

Here is a video of Zidane previewing the new Predator X:

Election Results; The Day After

noreply@blogger.com (Mark) — Wed, 04 Nov 2009 05:50:46 PST

Yesterday's elections produced a few surprises and a couple of results with significant impact in the world of sports. First, the upset victory of Chris Christie in New Jersey, where he knocked off incumbent governor Jon Corzine puts the renovation of the Izod Center, the current home of the New Jersey Nets in doubt as well as any funds needed to complete the nearby Xanadu project. Christie will reach out to Newark Mayor Corey Booker to learn about his misgivings over the renovation and his concerns about competition between the Izod Center and the Prudential Center, the home of the New Jersey Devils, in downtown Newark.

In other election news, former NBA All Star Dave Bing won reelection as Mayor of Detroit, with 58% of the vote. Bing was first elected about eight months ago in a special election following former Mayor Kwame Kilpatrick's resignation.

In Ohio, voters approved a constitutional amendment permitting the construction and operation of four casinos at designated sites in Cincinnati, Columbus, Cleveland and Toledo. Cleveland Cavaliers owner Dan Gilbert is slated to own the casinos in Cleveland and Cincinnati, while the rights to the Columbus and Toledo casinos are owned by Penn National, a casino and race track company based in, where else, Pennsylvania. The casinos will provide additional competition to an already ailing Kentucky thoroughbred industry with one of the state's three largest tracks, Turfway Park, located just across the Ohio River from Cincinnati.

Turfway doesn't currently compete for horses with River Downs in Cincncinnati and the additional money that will flow to River Downs from the state's take of casino revenue will not add to the purse structure enough to create competition. Nevertheless, as seen by the drop in handle at Churchill Downs following the opening of the then Ceaser's Palace reiverboat casino, the lure of an alternative betting site will be strong and will cause a significant drop in Turfway's handle.

Rondo Signs for $55 Million; Did Celtics Overpay?

noreply@blogger.com (Mark) — Tue, 03 Nov 2009 20:15:33 PST

It's been reported last night and today that the Celtics have signed point guard Rajon Rondo to a five year contract, worth at least $55 million. He would have been a restricted free agent at the end of the season, and likely the best point guard on the market, but he was comfortable in Boston and wanted to stay. He likely left some money on the table but was willing to do so for the stability of staying in Boston in a situation he was comfortable in with teammates he felt good to be around and in a city in which he felt appreciated. To understand why, one needs to know where Rondo came from.

Rondo grew up a star high school basketball player in the hoops hotbed of Louisville Kentucky, with the dream of playing in his hometown at Freedom Hall wearing the red and black of the Louisville Cardinals. Before his senior year in high school, to improve his college prospects, Rondo moved on to the basketball power prep school, Oak Hill, for a year, in what proved to be critical to his development. While there he was recruited by both Louisville and archrival Kentucky. However, late in the recruiting process a snag developed as Louisville coach Rick Pitino, then pursuing Sebastian Telfair, asked Rondo if he would wait until Louisville found out for sure if Telfair was going straight to teh NBA, as everyone expected. Rondo was not willing to wait, took the request as the slight it was and signed with Kentucky, The only problem with Kentucky was the deliberate offense run by Kentucky coach Tubby Smith didn't fit Rondo's talents and fortunately for him, he was able to make the NBA jump after only two less than satisfying years at UK. To finally find a situation in which he is comfortable and appreciated is especially meaningful for Rondo.

Did the Celtics overpay? His new contract places him in the top 10 of guards in the league but well below the top three or four point guards - the young ones, Chris Paul and Deron Williams and the veterans, Steve Nash, Tony Parker and Chauncey Billups. What distinguishes the guards ahead of Rondo on this list from the Celtic: one thing in particular and that is scoring. Rondo is not a particular high scoring point guard and his contract may reflect that as his other attributes are traditionally somewhat undervalued when it comes to contract time. However, as pointed out in the Wages of Wins blog, Rondo actually may be more valuable to his team than all but two other point guards in the league. Using the Wins Produced statistic that the authors have pioneered in their book and on their blog, Rondo was responsible for 17.2 wins for the Celtics, the most on the team. He was seventh in the league and only Paul (a startling 28.2 Wins Produced) and Jason Kidd (19.8) were higher among point guards. Looked at that way, the Celtics got a bargain.

BetonsSports.com Founder Gets More than Four Years in Jail

noreply@blogger.com (Mark) — Tue, 03 Nov 2009 07:19:51 PST

Concluding a more than four year investigation, BetonSports.com founder Gary Kaplan pleaded guilty yesterday to several felony counts and was sentenced to more than four years in jail. Kaplan, jailed since his arrest more than two years ago, had been charged by the US Attorney in St. Louis with various charges relating to the conduct of the Caribbean based sports betting operation.

Kaplan pleaded guilty to racketeering conspiracy, violating the Wire Wager Act and conspiring to violate in a plea agreement. He was sentenced to four years and three months in jail and forfeited $43.6 million in illegally obtained revenue as a part of his plea agreement. He also agreed not to block another $7 million being forfeited by an associate in another plea deal. Kaplan got the maximum sentence available to the judge in part due to his prior felony convictions for bookmaking and forgery and a misdemeanor which showed his willingness to ignore and break any law he didn't agree with, knowing the activity was illegal. The judge also ordered Kaplan to undergo counseling for substance abuse and mental health and to earn a high school diploma. Finally, in a part of the order that must particularly sting, Kaplan may not launch or run a business without permission from the parole office.

Now before anyone gets to feeling too sorry for Kaplan, we need to remember that he took BetonSports.com public in London in 2004, netting at least $100 million for himself in the process. The bulk of that money still sits in his bank accounts in Swiss banks, awaiting his use when he gets out of prison, which should be in a bit over a year or so, having served more than two years awaiting trial.

However, this entire episode is intended not merely to punish Kaplan but to strike fear into the hearts of operators of offshore casinos and bookmakers around the world that accept bets from Americans. The clear message the Justice Department and FBI would like you to get is do not step foot in America or you will be arrested, charged under the statutes that Kaplan was charged under and you'll suffer the same fate. Whether that will be the case under the Obama/Holder administration remains to be seen. This particular case was initiated under Bush and we don't know yet what the Obama administration policy will be. We do know that Rep. Barney Frank, the chairman of the House Financial Services Committee, intends to introduce and push hard for passage of legislation which would legalize online wagering. How that will fare and exactly what will be included is also not yet entirely clear.

Newstex Interview

noreply@blogger.com (Mark) — Fri, 30 Oct 2009 05:56:02 PDT

An interview I did with Newstex, the excelllent content syndicator, can be found here. If you're not familiar with Newstex, they syndicate content to a variety of outlets including Reuters and Lexis-Nexis. You can find out more about what they do here.

North American Sports Day

noreply@blogger.com (Mark) — Thu, 29 Oct 2009 14:10:19 PDT

Sunday will be a groundbreaking day in the annals of North American sports As far as I've been able to determine, Sunday will be the first day on which all four/five major professional sports leagues have played regular season or playoff games on the same day. So far as I can tell, there have never been games that count in MLB, NBA, NFL, NHL and MLS all on the same day. Thanks to Bud Selig, who seems to think that baseball has somehow become a winter sport, the World Series is being pushed further and further into the football season. The NBA season kicked off this week and the NHL has been playing games for the last couple of weeks. The MLS playoffs start this weekend, but you knew that.

Add in college football and the CFL for our friends up north, which has a game this Sunday and you have a full complement of sports. Oh, and just to be inclusive, there is a PGA tournament for those pros still trying to get their tour card and the WTA is holding its year-end championship in Doha, Qatar.

If you are a sports fan, outside the Olympics, you will never have more variety than this weekend

McCourts Battle Each Other Tougher Than Dodgers Fought Phils

noreply@blogger.com (Mark) — Thu, 29 Oct 2009 13:58:14 PDT

The McCourt divorce is going to be the gift that keeps on giving this season. Already, 700 pages of documents have been dumped on Los Angeles Superior Court, and the fight is just beginning. We're talking about preliminary motions here; we haven't even gotten to any of the really good stuff.

So far, Jamie has demanded to be reinstated as CEO of the Dodgers and to be restored to her $2 million per year salary. She has also demanded spousal compensation of $487,634 per month, which would be reduced to $320,967 if she were reinstated as CEO. What, $2 million a year isn't enough for you? Although if you read here, you can see why it might not be.

Frank today charged Jamie with having an affair with none other than the bodyguard and charging the Dodgers for their little romantic tryst in Israel and France. Rather tawdry and common of Jamie to hook up with the bodyguard, don't you think. Surely she could have done better than that.

Coyotes Sold to the NHL

noreply@blogger.com (Mark) — Tue, 27 Oct 2009 19:18:57 PDT

Phoneix, your long nightmare appears to be over. Jerry Moyes has agreed to sell the Coyotes to the NHL. While the deal must still be approved by the bankruptcy court judge, that would seem to be mostly formality at this point since the deal was struck under his guidance, or shall we say stern warnings and nasty stares and other signs of what exactly he wanted to have happen. All of this was going on in and around a Monday bankruptcy court session called to get his honor's guidance on how to make the NHL's bid acceptable to the court. After much lawyer work and billing, I think that was achieved and the NHL has committed to fund the interim losses while the deal makes its way through the court system.

The league is moving on to find a buyer for the club, with its priority being to keep the club in Phoenix, however misguided a notion that may be. Bettman and the other owners may not have liked Jim Balsillie but he was right about one thing - this team needs to move to Canada, and Hamilton is the logical place. If New York can support three teams, and Los Angeles can support two, there is no reason Greater Toronto can't support two.

Michael Jordan's Son Could Cost UCF It's adidas Contract

noreply@blogger.com (Mark) — Sun, 25 Oct 2009 13:23:00 PDT

Marcus Jordan is an 18 year old college freshman basketball player at UCF, formerly referred to by its proper name: the University of Central Florida. When Marcus was being recruited by the UCF coaches he was promised that he could wear a particular shoe when he played for the Knights. What was so special about a shoe that it elicited a promise during recruiting wars - it was a Nike Air Jordan, and yes, Marcus is the son of that Jordan.

The only problem was the coaches making the promise had neglected to clear it with the athletic administration. UCF has a school-wide contract with adidas and is in the middle of negotiating a six year, $3 million extension. Adidas is in no mood to make an exception for a basketball player in a contract that requires every athlete in every sport to wear adidas product.

Not only has the coaching staff stepped into it big time here by promising something they can't deliver, but they may be jeopardizing the university's adidas contract. In addition, should the university attempt to stand firm against Marcus' in his decision to wear only Air Jordan's, it could find itself facing a lawsuit (funded by Nike?) asserting a student's right to wear the clothes that he chooses. After all, he is not the one receiving endorsement income from adidas for wearing its shoes; the coach is.