guncurug

It really must be a cold day down under, and I don't mean Australia or South Africa.  Sepp Blatter the major domo of FIFA has finally had enough of a World Cup plagued by inexcusably poor officiating and blatantly missed goals being disallowed.   Blunder masters Uruguayan referee Jorge Larrionda of the missing English goal against Germany and Italian Roberto Rosetti of the missed offsides allowing an Argentine goal to stand against Mexico have been let go for the balance of the tournament.  Sepp's also sorry about the mistakes and sends his apologies.

More significantly, Sepp has said that finally he is willing to discuss the use of technology to determine if a ball has actually crossed the goal line.  This will come too late to help anyone in this World Cup, sorry Brits, but, if he is really serious, then it just might be in place for Brazil 2014.  Make no mistake, there is only one opinion that counts here.  As long as Sepp is breathing, his opinion is the only one that matters and the his willingness to discuss technology, instant replay in any form is still verboten, is a major step forward.  It will still require demonstrating that it is in the natural flow of the game and doesn't detract in any way from the play on the field, which a properly set up system should not do.  If Sepp is seriously willing to listen, then a system should be approved.

Here is a link to a video of Sepp's apology.

Chris Henry, the Bengals running back who died during a domestic dispute last year, has been  identified as the first player to have trauma-induced brain damage while still active in the NFL


Henry was only 26 and is the youngest player to be diagnosed with chronic traumatic encephalopathy, the progressive brain disease that I wrote about yesterday, which experts have now tied to the effects of playing football.  Since it can only be accurately diagnosed after death, it does not often appear in cases of younger men, which makes Henry's case so important.  It may also provide a partial explanation for the problems Henry got into during the last several years of his life.  It is known that CTE alters the brain functions and may cause changes in behavior as the disease progresses.

It's all peace and love in South Africa now as FIFA and Bavaria have kissed and made up.  FIFA and the South African police have agreed to drop all charges against the Dutch brewery and the two miniskirted glad girls accused of guerilla marketing campaign.  The girls are "happy to go home and the situation is resolved."

For its part, Bavaria has agreed to respect FIFA's marketing policies through 2022 and each party would release all claims against the other.

All is well that ends well I suppose but the whole affair leaves a bad taste in one's mouth.  FIFA once again displays an incredible lack of public relations savvy, giving Bavaria far more publicity than they would have ever received by ignoring the girls altogether.  After all, the girls were only wearing orange dresses free of Bavaria logos and practically indistinguishable from the rest of the crowd, except perhaps from the extraordinary good looks and short miniskirts - it is winter in South Africa.  There is a good way and bad way to enforce your licenses and FIFA has yet to figure that out.

Citi is out as presenting sponsor of the Rose Bowl after seven years.  Citi becomes the second BCS bowl game sponsor to give up its sponsorship following ESPN's takeover of the selling of all marketing and advertising inventory around the game as a part of its newfour year $495 million deal to carry all of the BCS games made earlier this year. Citi follows the Orange Bowl's long time sponsor FedEx in walking away from the BCS games.

Supposedly the restrictions placed by ESPN over when and where the sponsors were to spend their money was at the heart of both companies departure from the scene.  Negotiations with with Allstate for renewal of its Sugar Bowl sponsorship are said to be going well, while ESPN remains in discussion with Tostitos on its sponsorship of the Fiesta Bowl.

This, of course, comes on the heels of the Great Realignment which may have made potential sponsors a bit gun shy. I know I would want to wait and see the dust settle before I commited the dollars ESPN is asking, especially since ESPN is demanding a season long commitment for any bowl sponsor.  You may know what you're getting today with the SEC and to some extent with the Big Ten but you honestly say you know what the other four BCS automatic qualifying conferences are going to look like a year from now?

The Golden State Warriors, in a nod to a more successful past, have adopted a new logo and new uniforms to come based on the new logo, and a return to the royal blue and gold color scheme of the '70s  and not coincidentally, the nearby University of California, Berkeley Golden Bears.  For me, I think it's a welcome change from the current color scheme and meaningless generic logo, which had no connection to the team's past or identity and could have been used by any club named warriors at any level of the game from third grade on up. 

The new logo has meaning and recalls the iconic The City logo of the late '60s.  The Bay Bridge not only reflects those past logos but reflects the team's former playing days in San Fransico and its current home in Oakland's Oracle Arena.  One thing I thought a bit peculiar however is that the team has been for sale for at least six months - there are six groups actively looking at buying the club - so why pick a new logo now rather than wait and allow the new owner to have input into the design process.  Of course, it's possible that the prospective new owner (Oracle's Larry Ellison, perhaps) was given input and the current ownership has picked a winner just not moved forward with it yet.

Churchill Downs Inc. (CHDN) conducted its annual meeting yesterday and the most interesting bit of news to come out of the meeting was not the resignation of Susan Packard as a director.  Nor was it anything that was actually discussed during the meeting itself.  No, the real news of the meeting came in an interview that CEO Bob Evans gave to the Louisville Courier-Journal.

During the interview he once again stressed the importance of slot machines and other forms of casino style gaming not only to the company in general (race track revenue accounted for 53% of gross profit last year down from 88% in 2006) but to the health of individual tracks.  Churchill Downs and Arlington Park are the only two tracks in Churchill Downs' portfolio that do not now have some form of casino style gaming to help support the track operations.

Without a dramatic change in the atmosphere and composition of the Kentucky General Assembly, specifically the State Senate, it is unlikely that Churchill Downs will see that help anytime soon.  However, it does have the Kentucky Derby and Oaks for support and while that's not a complete panacea, it does help enough to keep the track operating.

Arlington Park, however, is in a much different situation.  With no casino style gaming, and the prospects for getting that approved not very high at the moment, the chance of Arlington closing by next summer is very high.  Arlington was actually closed in 1998-99 due to insufficient revenue, but reopened following its purchase by Churchill Downs in 2000.  Unless Arlington gains approval for casino style gaming or some other form of support, Evans intimated that it would be closed.  Given its prior shutdown and the Illinois legislature's continued refusal to approve casino style gaming at race tracks, the future of Arlington looks bleak indeed.

I'm sure most of you are familiar by now with the orange miniskirt wearing blonde beauties that FIFA had unceremoniously removed from the World Cup match between the Netherlands and Denmark.  Sure, the girls were an ambush marketing scheme by Bavaria, a Dutch brewer, but they were blondes in bright orange miniskirts so what's the harm, right?  Anheuser Busch InBev's Budweiser is the official beer of the World Cup and FIFA is sworn to protect.  But how much danger are 36 girls in orange bikinis?   After all, there were no markings on the girls' outfits to indicate any connection to Bavaria at all; they were just solid orange, the Dutch team color.  The FIFA marketing police were not amused and carted off to jail the two women who had flown in from the Netherlands to organize the outing.

FIFA  has since decided to file criminal charges against Bavaria, accusing the brewer of ambush marketing tactics during the World Cup, which apparently is now a criminal offense, at least in South Africa. FIFA stated in response to the charges:

�This Dutch company has a long history of trying ambush marketing tactics at sports events,� said FIFA spokesperson Delia Fischer. �The latest target had been the Dutch national team itself, and the Dutch FA had already objected to the strategy employed by this brewery for ambush activities around the national team matches using the exact same promotional objects.�

Fortunately, the women are now out on bail; yet they remain dangerous to the state:  �These women, who have been part of a larger group, are suspected to be involved in organized acts to conduct unlawful commercial activities during the Denmark/Netherlands match on Monday,� South African police said in a statement.

I'm all for enforcing trademarks and copyrights, but throwing folks in jail for ambush marketing seems to me a little on the harsh side.  Especially, when we're talking about some girls wearing miniskirts that have no company markings on them.  A harmless stunt that gave Bavaria far more publicity after the police stepped in than they would have ever received had everyone just ignored them.

As if the Worldwide Leader wasn't ubiquitous enough already, comes word that Bristol has cut a deal with Microsoft to stream ESPN3 (formerly known as ESPN360 if you're scoring at home) through Xbox 360 consoles free to subscribers of Xbox Live.  The deal is exclusive so if the only device in your house is a Wii or Playstation, better hope your cable company carries ESPN3.

The Great Conference Realignment appears to be a small shift by three schools at least for now.  With Nebraska going to the Big Ten, Colorado to the Pac-10 and Boise to the Mountain West being the only moves for the time being, armageddon in college sports has been avoided and everyone can thank TExas for that.  As had been widely predicted all along, Texas was indeed the key to wholesale realignment and when UT turned down an invitation from the Pac-10, the other schools in the Big XII South followed suit and thee league survived to play another day.


That survival did not come without a cost however.  Texas negotiated is now clearly the top dog in the conference and the league will continue to distribute revenues unevenly.  Texas also won the right to retain local media rights, which the Pac-10 was unwiling to give it.  This will allow Texas to pursue its idea of a University of Texas network, an idea which it has been considering  for some time.  The Pac-10 needed all schools local media rights to facilitate its launch of a Pac-10 network modeled on the Big Ten Network. 

Based on preliminary discussions, Big XII Commissioner Dan Beebe believes Fox is willing to pay substantially more for its television rights when the current contract is up for renewal, even with the defections of Colorado and Nebraska.  Now, that will only be true if ESPN bids for them and if the departure of Nebraska really is that meaningless, two contingencies I don't really believe.  Nevertheless, on those assumptions and assuming a successful launch of the all Texas, all the time network, the Longhorns should be taking home between $20-$25 million per year in media income, or roughly what the Pac-10 would have been paying.  So Texas will get roughly the same amount of money, in a league with no championship game and with only Oklahoma to contend with on the field.  I don't think they had to deliberate too long about this one.

ESPN should be happy with the ratings it is receiving so far for its vast World Cup investment, whose production costs have been estimated at greater than $300 million.  Early returns show ratings are at least double what they were for Germany2006.  According to Bloomberg, reporting on an emailed statement from ESPN/ABC, the first five games averaged 4.94 million viewers, more than double 2006. 

The USA-England match on ABC was the most watched game for the US Men's National Teams since a 1994 round of 16 World Cup game against Brazil, held in the US.

After a seemingly interminable investigation, the NCAA handed down its ruling on USC yesterday and found the Trojans guilty of major violations, including the real "biggie" in the mind of the NCAA  - the dreaded lack of institutional control.  The Trojans were hit in three sports, but most of the focus has been on football, where the most visible violations occurred.




As punishment, the NCAA imposed a two year postseason ban, the loss of 10 football scholarships in each of the next three years and the vacation of all wins from December, 2004 through the end of the 2005 postseason.  That, of course, included the Trojans national championship which USC won on January 4, 2005 and the 12 wins in 2005 that ended with a loss to Texas in the national title game in the Rose Bowl. 


From the tenor of the commentary about the sanctions you would think that USC is just a hatr's breath away from the death penalty.  But. really, is a two year postseason ban all that meaningful.  Now, granted the loss of scholarships will be an issue with ramifications beyond the three years, putting USC behind in recruiting for probably the next five years, or the tenure of Lane Kiffin's successor.  However, in the grander scheme of things, the NCAA has once again failed to use the most powerful weapon at its disposal short of the death penalty: a ban from television appearances.  What was once commonplace in the days before SMU underwent the death penalty seems to have disappeared now that the schools and conferences have inked multi-gazillion dollars contracts or own their own networks.  That's just the point - if you want sanctions to hurt, hit him where they will feel it the most and that's the pocketbook, and there is no better way to affect a school's pocketbook than to take away its television appearances and ban its conference from distributing television money to it that would reflect any foregone appearances.  It's time that the NCAA unsheathed its most effective weapon and if a school is found guilty of a lack of institutional control - the worst offense in the NCAA's six inch thick rule book - doesn't deserve to be hit with the toughest penalties who does?

This morning's papers were full of the stories that broke yesterday announcing Nebraska's imminent move to the Big Ten, a move which  no doubt filled the DeLoss Dodds and the other folks in Austin Texas with a mixture of glee and sadness.  Glee that at long last they were rid of the Huskers continual whining about the bad deal they were getting from the Big XII anad sadness that Texas' sweet deal is about to end.  Of course, Dodds and the Longhorn faithful can console themselves with the thought of all the money that a new, expanded Pac-16 TV Network will bring them.

The first entrant in the new and improved Pac-10 will be Colorado, which is taking no chances and leaping now before the Pac-10 folks get a chance to reconsider expansion and change their mind.  Actually, even if the Pac-10 stops here, it's not a bad move.  They will have added the Denver market which should help get the network off the ground plus help pay all the additional travel costs.  However, with Nebraska and Colorado both gone, the Big XII is toast and I expect it to be formally laid to rest this weekend when the three Texas public schools and the two Oklahoma schools join up with Colorado.  Where Baylor, the Kansas schools and Iowa State go is a really good question.  Who would have thought a basketball program like Kansas would be left twisting in a great plains cyclone.  Oh well, there is always the Mountain West.

One thought to ponder is what happens to the BCS contracts when the Big XII and possibly the Big East implode.  Those contracts run through 2015 although I'm sure there are clauses calling for renegotiation in the event of a substantial change in circumstances, which the disappearance of two out of six conferences surely is. The BCS Commissioners may just try and substitute a reconstituted Mountain West for one of the two and call the other spot an at-large spot and see if they can convince ESPN to go along.   I don't see them giving the spot to any of C-USA, WAC, MAC or the Sunbelt.

With the start of the World Cup just days away, take a look at the surprisingly extensive yet readable guide to the economics of the World Cup that Goldman Sachs has put together.  It is not, as the title might lead you to believe, a report on the dollars and cents (or rands) being generated at the World Cup or being paid in tribute to FIFA, but an outlook on the tournament using economics as a predictive guide.  I don't know what their past batting average is, but if you're looking for help filling out your office bracket, this could be the ticket.

Additional previews from the quant departments of investment banks JP Morgan can be found here, and from UBS here.

The long awaited debut of the Nationals number one draft choice, phenom Steven Strasburg took place tonight in Nationals Park.  Unfortunately, due to some difficulties I was experiencing as a result of DirecTV pushing out its 3D technology to my set-top box last night, I was finally able to turn into the broadcast just in time to catch the post-game wrap-up.  Apparently, I missed one helluva debut.

Apparently Don Garber hasn't learned any lessons from Gary Bettman and his disastrous hitherto disastrous television deal with Versus.  Granted, the deal has looked substantially better since the playoffs began, but that hardly makes up for a regular season in which the league was essentially MIA on television.  So how is this relevant to MLS?

On Sunday, the Big Ten Presidents met for four hours and discussed expansion for at least half that time.  What was decided, if anything, has not yet been announced, although it appears that no vote has been taken.  What is clear is that the deadline the Big XII gave Nebraska and Missouri has accelerated the Big Ten timeline.

The University of Louisville basketball program has been well known for years as a terrific revenue generator.  In fact, for the last several years it has been the highest grossing and highest netting program in the country, however, it outdid itself last year.  The Cardinals had revenue attributed to basketball of      $25,494,904, with expenses of $8,625,245 for a profit of $16,869,659.  That is a profit margin of 66.2% if you're scoring at home.  Oh, and remember, this was while the Cardinals were playing in Freedom Hall, their home for the last 54 years which they said goodbye to this past season as they prepare to move into the new $238 million KFC Yum! Center this fall.  Freedom Hall did not allow the Cardinals to maximize their revenue opportunities as athletic department officials put it during discussions on a possible new arena.