AGENDASHORTSTOPMark Cuban: The billionaire owner of<strong>the</strong> NBA’s Dallas Mavericks will haveto face insider-trading allegations thatwere thrown out last year by a lowercourtjudge. The US Court of Appealsin New Orleans overturned <strong>the</strong> lowercourtruling from a 2008 lawsuit.Kaizer Chiefs: Primedia, which ownsseveral South African radio stations<strong>and</strong> a cinema chain, sold its 40 percent stake in <strong>the</strong> South Africanfootball club back to founder KaizerMotaung <strong>for</strong> an undisclosed sum.Primedia bought <strong>the</strong> 40 per cent stakein 1997 <strong>for</strong> R40 million.PLAYING WITH FIREBarry Wilner on <strong>the</strong> nightmare scenario facing <strong>the</strong> NFL if owners<strong>and</strong> players fail to sign a new collective bargaining agreement.AFTER THE NATIONAL FootballLeague (NFL) Super Bowl, staged at<strong>the</strong> billion-dollar Cowboys Stadiumin Dallas on February 6 next year,<strong>the</strong>re is possibly...Armageddon.Despite an average team valueof $1.022 billion <strong>and</strong> televisionearnings envied by professional<strong>sports</strong> leagues across <strong>the</strong> globe, <strong>the</strong>NFL is approaching labour chaos.A lockout looms after <strong>the</strong> SuperBowl’s final whistle: <strong>the</strong> 32 teamowners voted to opt out of <strong>the</strong>collective bargaining agreement(CBA) with <strong>the</strong> players back in2008, <strong>and</strong> <strong>the</strong> expiration date <strong>for</strong>that is in March 2011.But what would a stoppagemean? Not much if it curtails onlyoff-season activities <strong>and</strong> perhapssome exhibition games nextsummer. A whole lot more if it runsinto <strong>the</strong> regular season - <strong>and</strong> almostunimaginably if <strong>the</strong> 2011 seasonisn’t played at all.“If it’s a lockout that doesn’tlose regular-season games, itwill impact only <strong>the</strong> participants- <strong>the</strong> players <strong>and</strong> owners - to ameaningful degree,” says MarcGanis, a leading analyst of NFLbusiness <strong>and</strong> president of Chicagobasedconsulting company SportsCorp. “If <strong>the</strong>re are games lost in <strong>the</strong>regular season because of a lack ofa CBA, that will have an impact ona larger number of stakeholders.“Such as, obviously, players whowon’t collect salaries <strong>and</strong> ownerswho won’t bring in revenues <strong>for</strong>ticket sales, merch<strong>and</strong>ising <strong>and</strong>sponsorships.”Less obviously, stadium workerswill lose jobs, municipalities won’tcollect taxes, retailers won’t sellparaphernalia, TV networks willhave to scramble to find replacementprogramming, teams will scaleback club personnel <strong>and</strong> hotels,restaurants <strong>and</strong> transportationservices that cater to <strong>the</strong> tourismindustry will be hit hard.“As bad as missing a couple ofgames can be, it’s not Armageddon,”adds Ganis. “If <strong>the</strong> season is lost,<strong>the</strong>re will be tremendous adverseimpacts on everyone. Losing a fewgames has an adverse effect onmany, but that can be made up,perhaps if <strong>the</strong>y add a game late inseason, or maybe move <strong>the</strong> SuperBowl back a week or two.“But if an entire season is lost,it’s a massive hit that will also meanuncertainty <strong>for</strong> <strong>the</strong> following yearbecause you have not reached anagreement in time to salvage <strong>the</strong>2011 season. Any incentives to getsomething done <strong>for</strong> <strong>the</strong> next seasoncan be lost as well.”The central dispute is, of course,about money. The owners claim <strong>the</strong>players get far too big a percentageof revenues, <strong>and</strong> <strong>the</strong> players don’tVikings-Saints, <strong>the</strong> 2010 NFL season opener - Getty Images Sportplan any givebacks. Suggestions ofan exp<strong>and</strong>ed season from 16 to 18games are met by <strong>the</strong> union withproposals to exp<strong>and</strong> rosters <strong>and</strong>increase, not decrease, how muchmoney <strong>the</strong>y earn.Both sides seem entrenched <strong>for</strong>a contentious series of negotiations,which most observers believewill begin in earnest after <strong>the</strong>Super Bowl. The sides have metperiodically this year, with littleprogress on any substantive issues.Should <strong>the</strong>re be an extendedlabour stoppage, Ganis says eachside will have “miscalculated <strong>the</strong>resolve of <strong>the</strong> o<strong>the</strong>r or ‘uber-greed’has taken over, which is <strong>the</strong> mostnegative inference <strong>the</strong>re could be <strong>for</strong><strong>the</strong> NFL.”Ganis echoes <strong>the</strong> sentiments ofmany who are familiar with NFLlabour disputes when he warnsthat <strong>the</strong> franchise owners are in <strong>the</strong>strongest position.“The owners are extremely wellprepared <strong>for</strong> this negotiation. I havenever seen <strong>the</strong>m this prepared intwo decades covering <strong>the</strong> league,” hesaid. “But I would never suggest oneside or <strong>the</strong> o<strong>the</strong>r has more resolve.“The owners are prepared <strong>for</strong>negotiations <strong>and</strong> a resolution, <strong>and</strong> <strong>for</strong>negotiations <strong>and</strong> a non-resolution,<strong>and</strong> <strong>the</strong> players can’t possibly have aplan <strong>for</strong> non-resolution because <strong>the</strong>ircareers are so short.”National Football League: ChiefFinancial Officer, Anthony Noto,returned to investment bank GoldmanSachs after two years in <strong>the</strong> position.Eric Grubman, executive vice presidentof business operations, now oversees<strong>the</strong> American Football league’s finance.The Jockey Club: The largestcommercial group in Britishhorseracing appointed Andrew Creanto <strong>the</strong> new position of Group FinanceDirector. Crean, <strong>for</strong>merly Finance <strong>and</strong>Commercial Director with contractfood <strong>and</strong> support supplier <strong>the</strong> CompassGroup, is now responsible <strong>for</strong> allaspects of The Jockey Club’s financialplanning, reporting <strong>and</strong> control.IAAF: Inspectors from athletics’ worldgoverning body visited London toassess its bid to host <strong>the</strong> 2015 WorldAthletics Championships in <strong>the</strong> 2012Olympic Stadium. London is biddingsolely against Beijing after <strong>the</strong> thirdc<strong>and</strong>idate, Chorzow in Pol<strong>and</strong>, failed tomake it to <strong>the</strong> inspection stage.Betfair: The online <strong>sports</strong> bettingprovider said it plans to list its shareson <strong>the</strong> London Stock Exchange. Thecompany, which is estimated to beworth £1.5bn, was founded 10 years ago.AIBA: Amateur Boxing Association ofEngl<strong>and</strong> chief executive Paul King wasset to challenge <strong>for</strong> <strong>the</strong> presidency of<strong>the</strong> International Boxing Associationon November 2 in Kazakhstan.Euro 2012/16: UEFA <strong>and</strong> adidasappointed Intersport as <strong>the</strong> official<strong>sports</strong> shop of licensed products<strong>for</strong> <strong>the</strong> two tournaments. Dedicatedspaces will be made available withinIntersport stores in 20 countries,including 800 stores across Europe.SportBusiness International • No.161 • 10.10 11
AGENDAMat<strong>the</strong>w Glendinning on <strong>the</strong> fall-out from <strong>the</strong> UK coalitiongovernment’s bonfire of <strong>the</strong> Regional Development Agencies.THE CITY OF MANCHESTER,ranked in <strong>the</strong> top ten host cities <strong>for</strong>sport in <strong>the</strong> 2010 SportBusinessUltimate Sports City awards,will find it tough to maintain itsprestige position now that a key<strong>sports</strong> funding partner is heading<strong>for</strong> <strong>the</strong> scrap heap.The Northwest RegionalDevelopment Agency (NWDA), oneof nine such regional developmentagencies (RDAs) in Engl<strong>and</strong>, wasinstrumental in launching <strong>the</strong>major events strategy that helpedposition <strong>the</strong> north-west of Engl<strong>and</strong>as a leading destination <strong>for</strong> hostingmajor events - with Manchester asits venue hub.Manchester has attracted aprestigious line-up of events inrecent years, including <strong>the</strong> FINAWorld Swimming Championships,<strong>the</strong> UCI Track Cycling WorldChampionships, <strong>the</strong> UEFA CupFinal (all 2008) <strong>and</strong>, since 2005,<strong>the</strong> annual Paralympic World Cup.But with <strong>the</strong> UK’s coalitiongovernment winding down allRDAs by March 2010, funds<strong>for</strong> <strong>sports</strong> hosting <strong>and</strong> venueconstruction are sure to contract.The NWDA has already announcedthat all funding will cease <strong>for</strong>uncommitted (not yet contracted)projects in 2010-11 <strong>and</strong> that<strong>the</strong>re will be no new financialcommitments in <strong>the</strong> same period.But according to ManchesterCity Councillor Mike Amesbury,executive member <strong>for</strong> Arts <strong>and</strong>Leisure, Manchester can still striveto stay ahead of <strong>the</strong> game. “TheNWDA has been a key partner<strong>and</strong> success has bred success, butthings have now moved on,” hetells SportBusiness International.“It’s a different ball gamenow. This age of austerity will bechallenging <strong>and</strong> we’ll have to workin partnership with <strong>the</strong> new LocalEnterprise Partnerships (LEPs)scheme which will focus solely on<strong>the</strong> Greater Manchester area.”The budget <strong>for</strong> <strong>the</strong>se LEPswill become clearer when <strong>the</strong>government announces its ownspending review on October 20,but losing <strong>the</strong> NWDA budget putsimmediate pressure on majorevents earmarked <strong>for</strong> <strong>the</strong> city.“Obviously, <strong>the</strong> NWDA has beena key partner in terms of leverageUEFA signage adorns Manchester Town Hall in 2008 - Getty Images SportCOUNTING THE COST OF CUTS<strong>and</strong> funding <strong>for</strong> <strong>the</strong> Netball WorldChampionships 2015 bid <strong>and</strong> we’llhave to work with ano<strong>the</strong>r partner<strong>and</strong> make <strong>the</strong> economic case <strong>for</strong>such an event,” says Amesbury.“A substantial amount offunding <strong>for</strong> <strong>the</strong> Paralympic WorldCup has also come from <strong>the</strong>NWDA <strong>and</strong> we are now workinghard behind <strong>the</strong> scenes to have<strong>the</strong> funding up to 2012 [when <strong>the</strong>current contract runs out].”With <strong>the</strong> governmentcommitted to an Olympic agendaup to London 2012, it’s conceivablethat central funds will be madeavailable keep <strong>the</strong> Paralympicevent in Manchester.But, more generally, <strong>the</strong> city willhave to find o<strong>the</strong>r ways to drive asport <strong>and</strong> culture agenda that hasbeen key to <strong>the</strong> city’s renaissancein recent years. Amesburyremains bullish about <strong>the</strong> city’sprospects: “We have <strong>the</strong> ROWEBritish Gr<strong>and</strong> Prix Squash <strong>and</strong> <strong>the</strong>British International TaekwondoChampionships this month[September]. We are always lookingto host new events but maybenow we’ll be a bit more relaxedabout commercial partners <strong>and</strong>sponsorship arrangements.”Across Engl<strong>and</strong> however, <strong>the</strong>picture may be less rosy.Yorkshire Forward, <strong>the</strong> RDA thatplayed a partnership role with <strong>the</strong>National Ice Skating Association(NISA) to bring <strong>the</strong> EuropeanFigure Skating Championshipsto <strong>the</strong> Sheffield Arena in 2012, iscommitted to <strong>the</strong> event.But what about funding <strong>for</strong>events similar in stature to <strong>the</strong>2009-10 Clipper Round <strong>the</strong> WorldYacht Race hosted by Hull, or <strong>the</strong>2009 Tour of Britain cycling race,which pedalled off from unheraldedScunthorpe, under <strong>the</strong> new regime?Likewise, <strong>the</strong> Advantage WestMidl<strong>and</strong>s RDA was instrumentalin getting Coventry’s Ricoh Arenaoff <strong>the</strong> ground through a crucialinjection of £5 million five yearsago, without which, <strong>the</strong> agencysays, <strong>the</strong> stadium would neverhave been built.Fur<strong>the</strong>r south, however, <strong>the</strong>reappears to be less sporting concernover <strong>the</strong> bonfire of <strong>the</strong> RDAs. TheLondon Development Agency(LDA)’s senior press officer RobertBeasley admits that criticism of itsproposed abolition has come morefrom <strong>the</strong> business community than<strong>the</strong> <strong>sports</strong> <strong>sector</strong>.“Outside of <strong>the</strong> Olympic Games,our role has been fairly small insport,” he says. “The Tour de FranceGr<strong>and</strong> Depart in London in 2007,<strong>for</strong> example, was only partiallyfunded by us with <strong>the</strong> majoritycoming from Transport <strong>for</strong> London.”Yet <strong>the</strong> London DevelopmentAgency played a key role insupporting <strong>the</strong> London 2012Olympic bid: it not only committed awhopping £1.2 billion to buy up <strong>the</strong>l<strong>and</strong> <strong>for</strong> <strong>the</strong> Olympic site, but spenta fur<strong>the</strong>r £17 million on upgrades to<strong>the</strong> Crystal Palace Stadium to keepinternational athletics in <strong>the</strong> pre-Games spotlight in <strong>the</strong> capital.Beasley points out that London’sMayor Boris Johnson has proposedthat <strong>the</strong> functions of <strong>the</strong> LDAshould be rolled into <strong>the</strong> Mayor’sGreater London Authority. Echoinga familiar refrain country-wide, headds, “<strong>the</strong> key question <strong>the</strong>n is howmuch money we’ll get.”12 SportBusiness International • No.161 • 10.10