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How the LeBron James media event helped the NBA….

How the LeBron James media event helped the NBA….

Many have criticized the method, but the LeBron James ESPN announcement was good for the NBA. The pre-announcement fan and media anticipation and attention was like no other seen by this league since the playing days of Michael Jordan.

You had public officials (NY City Mayor Michael Bloomberg included) lobbying for the services of Mr. James. Some cities even posted billboards with LeBron featured wearing the local teams’ jersey.

However, the entire spectacle generated a lot of attention for the league itself. I don’t recall a time in history where the NBA generated as much attention immediately after its championship series.

When NBA training camps open in mid-October, do not be surprised if more South Florida football fans start to tune in to the NBA(Dolphin fans switching their attention to the HEAT maybe?) in large numbers. Maybe the production of this event can narrow the $400 million in losses the league is set to experience this season (According to published sources).

NOTE: Reported that the Miami Heat has just fired its entire ticket-sales staff.

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FORBES: The Business of Baseball

FORBES magazine has released its latest report on Major League Baseball team values. The New York Yankees are listed as the most valuable team at $1.6 billion. Winning the World Series and playing in a new stadium probably played a role in the Yankees 7% increase in net worth from the previous year. 

The MLB team with the lowest value is the Pittsburgh Pirates. According to FORBES, the Pirates earned $15.6 million in ’09. However, they received $40 million in revenue sharing from their counterparts. According to FORBES, the Pirates are worth $289 million. Ironically, they are hosting an upcoming Career Fair on April 16, 2010. Maybe some of its new employees can bring some spark to the organization.

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Are Sports Business/Management Graduate programs relevant?

The TSR staff has been questioning the value of Sports Management programs, especially those at the Graduate level. The required course curriculum for these programs mirror that of other disciplines including Marketing, Management, Finance, Mass Communications, and Economics. The issue is whether this degree is useful outside of the sports and/or necessary to secure employment within the Sports Industry.

A  Juris Doctor (Law Degree) is valuable within and outside of sports. The same holds true for a degree in Marketing, Finance, etc… These disciplines have diverse curriculums where they are not “focused and concentrated” on one specific industry, which is the opposite of for example a MS in Sports Management.

Analyzing the jobs located on ESPN.com and TeamWorkOnline.com result in a small percentage of employers requiring candidates to possess either an undergraduate or graduate degree in Sports Business/Management. This leads to our conclusion that Sports Job-seekers without a degree in this field is not at a disadvantage to their counterparts.

Sports is part of the Entertainment industry. This means that there will be an unlimited need for selling and marketing in order to be successful (outside of winning games). Selling or the “Art of Selling” is not something that can be taught in the classroom. A good salesman learns from experience and by studying/focusing on the traits of potential customers.

Another point is that many schools offering this degree promote the fact their students and graduates have retained internship placements with relevant sports industry employers. However, this can also be done at the undergraduate level where many universities have student societies and clubs with a focus in Sports Management and Marketing. The student-operated organizations provide Career and Networking Fairs for its members on campus and encourage its members to attend off-campus Sports Industry functions as well (The purpose is to Network with industry executives with the hope of landing either a job or internship). If this can be done at the undergraduate level, what would be the purpose of pursuing such a unique degree at the graduate level?

If you one possess a Sports Business/Management graduate level diploma, we do not write this to question your decision. We only question whether this program adds VALUE to the marketability of your career prospects either within or outside of the Sports Industry.  The purpose of enrolling in school and selecting a particular major is to get employment in a certain field upon graduation. Where is the benefit in a situation when the goal and the experience required to reach this goal are not parallel?

NOTE: The TSR staff does not attempt to discredit the overall relevance of a Sports Business/Management degree. We only intend to show that this discipline “may” not be a necessary tool when seeking employment opportunities in the Sports Industry.

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The BCS System (No College Football Playoff Option)

“When you talk about adding value, from a media standpoint, the Boise States and the Utahs add very little”

Barry Frank, IMG Media Consultant

This statement was made in the January 25, 2010 edition of the Sports Business Journal. The article was in regards to the revenue distribution system of the BCS (Bowl Championship Series) and whether it needed to be adjusted.

The summary of the article leaves the conclusion that there will not be a playoff system in college football in the near future. Reason: There is too much money involved and potentially lost if adjustments are made. The negotiation of the BCS TV rights deal and future negotiations are at the center of the disparity debate.

“Those teams have certainly performed well, but you’re talking about adding value. The real question is whether including those conferences when you negotiate a TV contract adds to the willingness of the network to increase the bid. I don’t think we’ve seen evidence that that’s true.”

Harvey Perlman, Chancellor-University of Nebraska, Chairman-BCS Presidential Oversight Committee

The issue here is whether the WAC and Mountain West conference champions (Ex. Boise State and TCU) should get the same payout distribution preferences as the Florida’s, Alabama’s, and USC’s in BCS rankings (or rather the SEC, PAC-10, etc..). Mr. Perlman’s issue is whether ESPN would pay the NCAA $125 million a year for the BCS TV rights if these conferences are given the same consideration as the other conferences. The answer is no.

Although Boise State and TCU were both undefeated this past season, they would not draw the amount of viewers that a Florida vs. USC provide. When that happens, ESPN cannot get a competitive rate from advertisers. As a rights holder, ESPN’s goal is to make over the $125 million paid by selling advertising. Ex. Would a Coca-Cola pay $750,000 for a 40-sec. ad spot during a Boise State vs. Utah game? The answer is no. This is no reflection on those teams and its players. It has everything to do with viewership. They play no games on national TV during the regular season. Therefore no relationship is established between these conference teams and college football fans. 

This leads the TSR staff to the conclusion that there will not be a playoff system in the near of distant future. Money and viewership seems to have a strong grip on the decision making process, which is not surprising.

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