Money Ball

I am old enough to remember a time when one read the sports page, one found stories about sports. In today’s world, that seems to be an antiquated thing.

Take a look at the sports headline from the July 11th edition of the Houston Chronicle:

Conference to look at all revenue sources

That’s right, the Big 12 Media Day was not focused on the student athletes (more on that later), but rather the all-mighty dollar. The conference is reportedly interested in selling naming rights to the league and possible private equity investment opportunities.

“As we build our brand, we will continue to build our business,” Yormark was quoted as saying in the story. “We will not stumble into this new era following settlement. In fact, we will be aggressive and very proactive.”

Looming on the NCAA future is an antitrust settlement that will reportable payout more than $2.7 billion in back damages and a revenue-sharing model that will pay players for the first time. It was never fair in the first place that the NCAA and its universities collected millions upon millions of dollars with the student athletes not able to collect a dime from their likeness and image while forced to wait before being allowed to transfer watching their head coaches play musical chairs landing jobs on a moment’s notice.”

So I understand why all of this is important, but still; it took 11 paragraphs before we actually got to any actual sports analysis (Utah has been picked as the preseason favorite in football by the way). Now to be fair to the Houston Chronicle, they did other stories from the Big 12 Media Day, but it was this story that had the BIG headline.

Maybe moving forward we can portal transfer these stories to the business section and leave the actual games on the sports page (now you kids get off my yard).

A problematic culture

The reverberations following Major League Baseball’s report on the Astros sign-stealing scandal continues to rock the Houston sports world. It did not take long for Astros owner Jim Crane to “dismiss” A.J. Hinch and Jeff Luhnow once MLB suspended both for the 2020 season (which makes me think  Crane knew this was coming and already made the decision before MLB announced the suspensions).

I will leave the impact this will have on the field to the sports experts, but there was something in MLB Commissioners report that caught my eye…

“while no one can dispute that Luhnow’s baseball operations department is an industry leader in its analytics, it is very clear to me that the culture of the baseball operations department, manifesting itself in the way its employees are treated, its relations with other clubs, and its relations with the media and external stakeholders, has been very problematic.”

Manfred pulled no punches in describing the culture established under Luhnow’s leadership. You will recall back in October 2019, the Astros fired assistant general manager Brandon Taubman for targeting female reporters with inappropriate comments regarding relief pitcher Roberto Osuna who was accused of domestic violence when playing for the Toronto Blue Jays.

At first, the Astros disputed what took place calling the reporting “misleading and completely irresponsible.” They then released a mea culpa statement apologizing to Stephanie Apstein (one of the reporters targeted) and to all individuals who witnessed the incident. Taubman is now ineligible to work for any MLB club through the day after the 2020 season ends at which point he will be allowed to apply to commissioner Manfred for reinstatement.

Following the aftermath of Crane’s announcement that Hinch and Luhnow were “dismissed”, the Astros issued a media advisory making Crane available to meet with the media.

Pretty standard stuff, but what caught my eye was the line…

“Please note that media outlets are not permitted to carry the news conference live on the air nor online” (it did note the Astros would stream it on Astros.com).

Maybe I’m too old school (#OKBoomer), but inviting the media to a news conference with the caveat you can’t broadcast it live is wrong. Are they trying to drive traffic to their website? If a media outlet did broadcast it live, they would probably lose their credentials and not be allowed access to the team. I wonder what kind of reaction that would have gotten in markets like New York, or Boston. My guess is not too well.

All this does not bode well for an organization accused of, not only cheating, but having a “problematic” culture of the way it treats media. You would think the Astros would be trying to mend relationships and not continue its usual ways of doing business.

That has to hurt

I always enjoy the NFL draft with its drama and intrigue. I have to admit, I was a little surprised (all right, shocked would be a better word) when I saw the front sports page of the Houston Chronicle.Now I realize Ed Oliver is a local guy and its a great story, but one wonders what the Houston Texans (who had the 23rd pick) felt about that. The chronicle did include a photo of Tytus Howard (postage size)  and a story by John McClain on the cover. Admittedly, I am a die-hard Buffalo Bills fan, but even I have to say…

Come on man!!!

Well that lasted all of one week

NFL-nfl-4311909-1280-800Super Bowl LI is in the books. The city of Houston did a wonderful job of hosting the mega-event and most people agree the game and the experience was first class. Being the forward looking city we are, Houston is already thinking about the next time the Super Bowl will come to H-Town, but as Lee Corso so famously says; “not so fast my friend.”

The Houston Chronicle ran a buzz-kill story just three days after the big event with the headline “NRG Stadium already dated compared to other Super Bowl venues”.  It seems the NRG is fast becoming outdated and will require major updates to compete for Super Bowls, Final Fours and other major events.

City leaders and the NFL will tout the tremendous economic impact the host city enjoys to justify updating/building these modern day coliseums, but like most numbers, it can greatly depend on your point of view. While the Houston numbers are still being calculated, the 2015 Super Bowl held in Arizona reportedly brought in $719m. The state might have taken in that amount in Super Bowl related events, but that number does not take into account the hundreds of millions dollars needed to host the game.

Economists who study these sorts of things put the value more at $30m to $130m, a nice piece of change, but nowhere near the $719m that is promoted.

The game heads north to Minneapolis next year. The Minneapolis Star Tribune published the NFL’s list of demands back in 2014. It’s shows what the NFL expects a city to cough up for the privilege of hosting the big game.

For example:

  • If placing logos of the NFL, Super Bowl, and teams that are playing in the game on the field requires different turf to be installed in the new downtown Minneapolis stadium, there would be no charge for that to the league.
  • If cellphone signal strength at the team hotels is not strong enough, then the host committee — at no cost to the league — “will be responsible [for erecting] a sufficient number of portable cellular towers.

The NFL is also requiring the local media “to provide significant advertising and promotional time” for the “NFL Experience” in the month leading up to the game. Among them: At least 20 color pages of free space, in aggregate, in leading daily newspapers to promote the game and four weeks of free promotions on at least six local radio stations, including at least 250 live or prerecorded ads.

Now granted, those “recommendations” are from 2014 and could have been negotiated and changed, but its’ still pretty incredible to force host cities to ensure services like cellphone signal strength meets league standards, but that’s not all the all the Super Bowl requires.

They also don’t want to see laws that discriminate against a transgender person using a restroom that conforms to their gender identity. Given Lt. Gov. Dan Patrick’s crusade to keep our bathrooms safe, the NFL could say thanks, but no thanks to a Houston bid even if we did build them a multibillion dollar brand-new stadium.

Why are NFL TV ratings down?

NFL LogoSomething strange is happening with the NFL. No, it’s not that the Dallas Cowboys have a shot at playing in this year’s Super Bowl at NRG Stadium with a backup quarterback, but rather TV ratings are down.

How down? Ratings giant Nielsen is reporting Monday Night Football is down 20 percent. Sunday Night Football is off by 18.5 percent and Thursday Night Football is down 21.8 percent.

The NFL is blaming the “unprecedented” interest in the presidential election, but someone who knows a little about sports and broadcasting has a different theory.

Back in 2014 when the NFL signed an eight game Thursday Night Football deal, Mark Cuban predicted that the NFL was overreaching and would soon see an implosion.

“I’m just telling you: Pigs get fat, hogs get slaughtered. And they’re getting hoggy,”said Cuban. “Just watch. Pigs get fat, hogs get slaughtered. When you try to take it too far, people turn the other way. I’m just telling you, when you’ve got a good thing and you get greedy, it always, always, always, always, always turns on you. That’s rule No. 1 of business.”

Now to be fair, there could be many reasons for the decline if viewership.

  • Games are filled with commercials and penalties and take way too long to play. Back in 2013, The average length of a game was three hours and 12 minutes and included 20 commercial breaks with more than 100 ads.
  • The match-ups have been terrible. When the announcers are talking about whether or not they make their beds in the fourth quarter of the Tennessee – Jacksonville game, you know it’s a snoozer.
  • Smart phones give fans access to game information with real time scores, stats and news without having to watch the actual game.

Granted we are only talking about a handful of games so far, and now that the election is here and the World Series is done, ratings could return to last year’s numbers. Still one wonders how worried the league is over what could be a ratings tremor, or seismic shift.

Is bigger better?

hqdefaultThe University of Houston is making a lot of noise about being added to the Big 12. Cougar Nation wants a seat at the grown-ups table and adding them makes all the sense in the world with one exception; economics.

UH had to subsidize their athletic program to the tune of more than $25 million in 2015. That ranks as the seven-largest subsidy. Only 12 schools (including Texas and Oklahoma) did not have to subsidize their programs.

The UH athletic program took in $44.8 Million (62nd in the nation). James Madison and South Florida produced more revenue for their respective schools. It’s also $30 million less than Iowa State who had the smallest revenue in the Big 12 among public universities.

It does not take a Noble Prize winner in economics to understand who pays for these “subsidies”, The university has increased tuition 22 percent between 2011-12 and 2015-16. Students and fans of the University of Houston might have a different opinion on the value of joining the Big 12 when confronted with tuition costs that are already higher than UT or Texas A&M.

Do you believe in miracles?

pC1vq2QlThere is an implausible sports story taking place involving the sport of soccer. Now before you go off on your “soccer is boring” rant, you need pay attention, because you just missed out on what could be considered he greatest sports story of all time.

Across the pond is a soccer organization called the Premier League which is host to England’s greatest clubs. Manchester United, Arsenal, Chelsea, Liverpool and Manchester City are but a few of the elite squads looking to be crowned champions. These clubs spend big bucks on top name players and fans demand nothing the title every year.

And then there is Leicester City. Nobody gave them a chance. The Brits, who love to bet on anything and everything, had them as 5,000 to 1 long-shots to win it all. It is even more unbelievable when you consider that a year ago, Leicester City barely escaped relegation and entered bankruptcy protection seven years ago.

According to published reports, Leicester City had a payroll of £48.2 million ranking them 17 out of 20 clubs. Chelsea (last year’s champions) spent £215.6 million. That alone should help this into perspective for you.

So Leicester City winning it all is huge. How huge? The infamous Miracle on Ice game had the U.S. men’s hockey team as 1,000 to 1 underdogs. The N.Y. Mets winning the 1969 World Series, 100 to 1. Broadway Joe guaranteeing the N.Y. Jets would beat the Baltimore Colts in Super Bowl III was considered outrageous, but the odds makers only had them as 10 to 1 underdogs.

Maybe you don’t love or even like soccer, but who doesn’t love Cinderella.

Finger-Pointing fans

imagesThere has been a lot of finger pointing in the wake of the Houston Texans 30 – 0 play-off loss to the K.C. Chiefs. They main villain is Q.B. Brian Hoyer, who safe to say, had a pretty bad game, but the blame cannot and should fall on just on his shoulders.

While stats don’t win games, it is interesting to note that Houston and K.C. had the exact same number of plays (62), but K.C. had a big advantage in time of possession (34:25 vs. 25:35). K.C. also averaged 5.1 yards per play meaning they basically earned a first down every two plays.

And let’s talk about dropped passes. Nat Washington was open on many plays but could not hold onto the ball (when Hoyer wasn’t throwing it to a Chief). Ryan Griffin had a chance to put the Texans on the goal line, but could not come up with the catch. Going into the game, the Texans had an NFL-worst 28 drops out of 328 catchable passes in 2015, the Houston offense is at the bottom of the League in that category.

Do we even want to bring up having J.J. Watt try to run the ball behind Vince Woolfolk?

Yes, Hoyer had an awful game, but the team was only down by 13 points at halftime with the hometown faithful booing their beloved Texans back to the locker room. Hoyer does not call the plays, but I would be curious to know why the Texans attempted 34 passes vs. rushing the ball 25 times. The Texans were gaining an average of 4.6 yards per rush. That sure looks better than Hoyer dropping back into the pocket.

A bad investment?

Texas FooballThe power of football in Texas can be daunting. Just consider the recent remarks made by the chairman of the University of Houston’s board of regents, Tilman Fertitta.

Fertitta is upset that the Big 12 conference does not want to add UH into its fold and told the Houston Chronicle’s editorial board that the Texas legislature should “Put pressure on the presidents; say, ‘If you don’t do this, we’re not going to fund you for this.’ It’s just the way it is. That’s the way to do it.”

Now keep in mind, this is the same person who wasn’t troubled by the fact that Aramark had more information than its potential competitors in bidding for a contract at the universities new stadium saying that’s just the nature of doing business. “I outsmart people all the time,” Fertitta said.

Hey, if you’re not cheating, you’re not trying, right?

But getting back to the playing field. It is ironic that the highest paid state of Texas employee never sees the field, but rather acts as a “special assistant” at the University of Texas. Mack Brown, the former UT head coach is earning a cool $3,824,856 per year. In case you’re curious, the second highest paid employee is current UT head coach Charley Strong, pulling in a measly $3,025,375 per year.

The Horns finished with 6-7 record (5-4 in the Big 12) in 2014 and were rewarded with a trip to the prestigious AdvoCare Texas Bowl where they were trounced 31 – 7 by Arkansas asking the question if they are getting a healthy return on investment, or if they look more like a Vontage IPO.

A Tale of Two Leagues

NFL LogoThe NFL has been busy these past few weeks dodging and weaving like Walter Payton, trying to avoid the big hit. By now, everyone has seen and heard about Baltimore Ravens running back, Ray Rice cold-cocking his then girlfriend in an Atlantic City hotel elevator.

We have since learned that Minnesota Viking running back, Adrian Peterson disciplined his son by giving him a “whooping” causing injuries severe enough to lead a doctor to alert authorities.

We could continue this rap sheet with other names such as Hardy, McDonald and let’s not even get into whether the Redskins is an offense name, or a badge of honor. Let’s face it, the NFL is having a rough time, but much of it seems self-inflicted.

It was not that long ago when former NBA owner Donald Sterling was recorded making racist remarks to his female friend. What happened? The NBA immediately suspended him and forced him to sell his team. Granted, he made a boat-load of money, but the NBA demonstrated a zero tolerance towards anything which could tarnish the league.

Since then, the Atlanta Hawks have also been severely punished for “insensitive” comments, which interestingly enough, are not illegal, yet caused great embarrassment to the NBA.

No one can argue the NFL is the most popular sport in the land. TV ratings seem to be broken every season and fans sell out stadiums every Sunday (and Monday, Thursday and the occasional Saturday games). So it is puzzling why the NFL does not institute a zero tolerance policy. Do they think not having a Ray Rice or Adrian Peterson on the field will diminish fan interest, or God forbid, cause the owners to loose revenue? Former players talk about protecting the shield (the NFL logo), but there seems to be an underlying avoidance of standing up for what’s right in the league office.

Now I do believe in due-process (although that didn’t seem to be a problem when it came to Donald Sterling and the NBA), but many, including sponsors like Anheuser Busch are beginning to ask what the NFL stands for and don’t think that hasn’t gotten the owners attention.

Roger Goodall is taking the heat, but it needs to be noted that he works for 32 owners who are ultimately responsible for what takes place when it comes to league operations. Up to this point, owners are supporting Goodall, but could easily throw him to the wolves, or worse, the court of public opinion, which will make everyone feel better, but solve nothing.