Under Armour Signs Multi-Year Deal with NBA

Under Armour, the ever-growing sports apparel provider, has now partnered with the National Basketball Association (NBA) to use officially licensed NBA apparel in the company’s various ad and promo campaigns. Prior to the new multi-year deal, Under Armour endorsers did have the right to wear UA shoes during basketball games as long as it didn’t have NBA trademarks and copyrights, such as team uniforms.

In a statement during an interview with Matt Mirchin, senior vice president of global sports marketing for UA, he says, “Partnering with the NBA allows us to showcase our innovative basketball footwear and roster of young, talented players through a platform that represents the pinnacle of the sport… We share a passion with the NBA to help young basketball players get better, and our joint court refurbishment program will create more access to functional basketball courts where the next generation can hone their skills.”

NBA Lockout Over?

With the owners and players coming to a tentative agreement over the weekend that allows for a shortened season, are the worries for cancelled season completely gone?

After the meeting over this past weekend, the players still need to reconstitute their union, throw out their anti-trust lawsuit against the NBA, and finalize the details of the new collective bargaining agreement with the majority of the players and the franchise owners accepting the terms of the deal. Training camps and free agent signings were scheduled to begin on December 9^th, but until all of the above items are met the lockout remains in place.

Mark Cuban: Business Plan Part 2

In my last post, I talked about Mark Cuban and his stimulus plan. In his latest update, he spoke of the overwhelming response, more than 1,400, to his stimulus plan idea. Of the 1,400 that responded, Cuban had disqualified the majority of them for not following the terms set in his 12 rules to follow. Out of the ones that did follow the rules, Cuban narrowed down the list further by choosing to give those with businesses established preference over start-ups. The reasoning for this was because established businesses have a better idea of where to spend the stimulus opposed to those just starting out

To this date, Cuban has only invested in three companies- Wickler, a program that tracks occupancy for entertainment sites; Naked Pizza, a pizza company with a natural, lower calorie product; and superfeedr.com, a company that specializes in real-time deliver of messages to mobile and desktop software. All three of these companies had a business plan that had three vital components to their business plan: a mission statement, industry analysis, and financials sections.

For those writing business plans, a good mission statement defines your business at the most basic level, tells your company’s ideals and background- in a short amount of time. The background should include: who your company is, what they stand for, and why they do it. The industry analysis is another important factor in a business plan. Identifying your main competitors and defining your target market are crucial to the success of your company. Once you’ve identified your target market finding ways to reach out to them becomes an easier task.

Lastly, the financials section of your business plan is crucial when it comes to selling investors on the profitability of your company. It is vital that one is able to show that their company is worth investing in.

Mark Cuban: Business Plan

Mark Cuban, best known for being the passionate owner of the Dallas Mavericks, has been involved in a variety of different businesses, from theater chains to Internet startups.  Before he decided to purchase the Mavericks, Cuban had started MicroSolutions, a computer consulting company, and had turned it into a profitable company before selling to CompuServe. Later on he and an ole college buddy founded Broadcast.com, which became a leader in streaming video and multimedia on the Internet. In July of 1999, Broadcast.com was sold to Yahoo for nearly six billion dollars. Today, along with owning the Dallas Mavericks, Cuban is the owner of HDNet, co-owns the Landmark Theater Chain, and is also an investor into start-up businesses. 

In 2009, Cuban came up with his own solution to help fix the hurting economy. His plan: “an open source funding environment.” Cuban has asked entrepreneurs to comment on his blog with fully developed business plans. If he likes the idea, then he will send the commenter an email to propose a deal. Cuban has taken up this mission because he wants to “come up with a course of action that he can undertake own his own and possibly make a difference.  The reason for the open sourcing is that even if the business plans are “stolen” and used by someone else, the idea is still helping to stimulate the economy.

Cuban has 12 rules that entrepreneurs must follow if they want funding. They are: 

1.  It can be an existing business or a start up.

2. It cannot be a business that generates any revenue from advertising. Why? Because I want this to be a business where you sell something and get paid for it. That's the only way to get and stay profitable in such a short period of time.
3. It MUST BE CASH FLOW BREAK EVEN within 60 days
4. It must be profitable within 90 days.
5. Funding will be on a monthly basis. If you dont make your numbers, the funding stops
6. You must demonstrate as part of your plan that you sell your product or service for more than what it costs you to produce, fully encumbered
7. Everyone must work. The organization is completely flat. There are no employees reporting to managers. There is the founder/owners and everyone else
8. You must post your business plan here, or you can post it on slideshare.com , scribd.com or google docs, all completely public for anyone to see and/or download
9. I make no promises that if your business is profitable, that I will invest more money. Once you get the initial funding you are on your own
10. I will make no promises that I will be available to offer help. If I want to , I will. If not, I wont.
11. If you do get money, it goes into a bank that I specify, and I have the ability to watch the funds flow and the opportunity to require that I cosign any outflows.

    12. In your business plan , make sure to specify how much equity I will receive or how I will get    a  return on my money.


 Resources:

http://www.biography.com/people/mark-cuban-562656

http://www.businessinsider.com/2009/2/mark-cubans-plan-to-fix-the-economy-with-his-money 

NBA Lockout Cancels First Two Weeks of Season, Players Tweet

On Monday October 10^th, the NBA announced that it would be cancelling the first two weeks of the 2011-2012 season, due to the lockout. In more than a decade it will be the first time that regular season games will be cancelled. For NBA players, team owners, and fans as the NBA lockout remains, the outlook for the rest of the season is bleak. In a report by the Detroit Free Press, Detroit Pistons guard Ben Gordon says, “the two weeks is just the tip of the iceberg” and that the lockout could last a “year or two.”

After meeting for five-and-a-half hours on Sunday night, Commissioner David Stern had set the Monday deadline for a new labor agreement to be reached to save the first two weeks of the season, which is exactly 100 games. Stern was cited as saying that the deadline needed to be reached by Monday for logistical purposes. After the meetings that took place on Monday, Stern said that the two sides were “very, very far apart” on a new CBA and that the longer the lockout lasts, the more team owners will try to recoup monetary losses from cancelled games.

Since the cancellation was announced, NBA players have been reaching out to fans via Twitter regarding the negotiations and lockout. After the announcement, Steve Nash of the Phoenix Suns went on a tweeting rampage with, “Why are the owners unwilling to negotiate in good faith? As a player I apologize to the fans that we’re in this position… The players are negotiating to take less money & let’s be clear that’s not going to lower ticket prices, it just lines the owners pockets.”  From Lebron to Carmello to Marcus Thornton Sacramento Kings, NBA players are letting their voices be heard.

Another superstar who has emerged as a leading voice for the players’ cause is Miami Heat superstar Dwyane Wade. In his tweet to fans, he stated that the real people hurting from the lockout are the fans, workers of the NBA arenas, and local businesses.

There may  not be an end to the lockout in sight, but as fans all we can do is voice our opinion and urge the team owners and players to settle their dispute quickly; and just sit and wait in the meantime.

 References:

http://www.nba.com/2011/news/10/10/labor-monday.ap/index.html##?ls=iref:nbahpt1

http://www.freep.com/article/20111012/SPORTS03/110120436/1051/sports03

http://aol.sportingnews.com/nba/feed/2010-10/nba-labor/story/players-tweet-in-reaction-to-cancellation-of-nba-games

NHL "black-outs" Player's Use of Social Media Game days

Going back to my first post on this blog, I talked about athletes need for training on the use of social media for professional and amateur athletes. The NHL has become the first professional league or organization that will "black-out" the use of social media by players on game day. While the engagement between professional athletes and fans using social media can be a great way to connect, it has become commonplace on news outlets such as ESPN that you here about the controversies that are cause by player posts and tweets.

The NHL has taken their “big-brother” role in a direction that you could see more leagues go in the future. A new NHL has instituted a social media policy that doesn’t completely muffle players, but does have a “total blackout on social media on game days.” The blackout begins at 11 a.m. before the first drop of the puck on game days. Also, the new policy outlines suggestions for “proper use” for players and team personnel.

MLS Teams Form Alliance to Bring in More Concerts

When it comes to professional sports in America, NFL, NBA, and MLB typically have no problem putting bodies in the seats of the stadium. For Major League Soccer, the popularity of the sport hasn’t reached the point where sell-out crowds are the norm, so some stadiums are looking to pack the seats from other attractions. The Columbus Crew Stadium, along with 6 other MLS stadiums has formed a group called the Soccer Stadium Alliance. The Alliance comprised of venues such as Pizza Hut Park near Dallas, Livestrong Sporting Park in Kansas City, Dick’s Sporting Goods Park outside of Denver, PPL Park on the outskirts of Philadelphia, Jeld-Wen Field in Portland, BC Place in Vancouver and the Columbus Crew Stadium. The purpose of this alliance is to bring more attractions from the music industry to their respective venues.

NFL Major Sponsorship Deals

With the NFL lockout ending earlier this year, the announcements of two sponsors for the NFL came soon after. In September, the NFL renewed its sponsorship deal with PepsiCo Inc. The deal between the two super-power brands will begin its ten-year duration starting in 2012. According to an un-named source would have PepsiCo paying around $90 million in rights fees and roughly $1 billion over the length of the contract. PepsiCo also owns such brands as Gatorade, Frito-Lay, Tropicana, and Quaker Oats, which will continue as the official marketing partners of the NFL. This deal also ensures that when fans tune into the game that they will see Gatorade as the feature drink on the sidelines. The relationship between the NFL and PepsiCo has lasted for twenty-eight years and this contract extension will carry them into 2022.

The Longhorn Network Prohibited From Broadcasting High School games

The University of Texas and ESPN has come together to form the Longhorn Network. This network has already caused quite a controversy for members of the Big Twelve Conference. Not only will the network be an additional source of revenue for the university, the deal with ESPN worth $300 million over the span of twenty years, but also the network will try to push the broadcasting of high school football games. The other members of the conference feel that this will give the University of Texas an unfair recruiting advantage. While this may not be a big deal to some, the nine other members of the conference will beg to disagree.  In a statement released by the Big Twelve it says, “The ADs recognize that this issue is complex, and involves a detailed analysis of the recruiting model in many areas, including existing NCAA legislation related to the publicity of prospective student-athletes and the rapidly evolving world of technology. This process will take an extended period of analysis.” At the beginning of August, the Big Twelve Athletic directors met and voted to prohibit the broadcast of high school sporting events.

Decertification of Players' Associations

            With the success of the NFLPA decertification, will the NBAPA do the same? On March 11, 2011, the National Football League Players Association (NFLPA) existence came to a halt. In a move that hasn’t been seen since 1989, in which the NFLPA dissolved to file individual antitrust suits against the NFL, the decertification of the NFLPA sent a message to team owners saying, “We mean business.” The decertification allowed individual players to take their chances in Federal court in antitrust lawsuits. Ten players, with such big names to include Tom Brady, Peyton Manning, and Drew Brees, sued NFL team owners in a class-action claim and sought to block a lockout even before a one had occurred. One of the reasons for decertification was to have each individual team release it’s financial records. In an article written by Sam Farmer, ofthe Los Angles Times, he says, “The players argue that if they’re being asked to give more money back to the owners, they should be privy to the books.” Although ultimately the decertification ended up working in the players’ favor, the National Basketball Association is looking to take away decertification as a tool to be used by the NBAPA.

Who Dat? Trademark Controversy

In sports, finding the origins of traditions can be nearly impossible. In regards to a certain tradition there may be numerous different stories about how it got started. With the New Orleans Saints the origin and ownership of the phrase, "Who Dat", created a whirlwind of controversy. In January 2010, the NFL sent cease and desist orders to stores selling the merchandise claiming they owned the rights to the phrase. The NFL wanted to avoid any confusion between their officially licensed merchandise and products or "knock-offs" the stores where selling in Louisiana.  A knock-off is clear-cut counterfeiting and is a basis of trademark infringement. In the same month two brothers, Steve and Sal Monistere, had claimed that they owned the rights to "Who Dat” The two brothers wrote and produced their version of "When the Saints Come Marching In" in 1983 that used the phrase "Who Dat" and claimed to have it trademarked under their company, Who Dat Incorporated. 

Cameron Newton took the college football world by storm as he lead the Auburn Tigers to the 2010 BCS National Championship. In April he was taken as the first pick in this year's NFL Draft by the Carolina Panthers. The above video is my analysis of Cameron Newton's social media presence. The topics of discussion are those of Cam's current social media use, recommendations for improvement, integration with traditional media and examples of good social media presence. 

Attracting Fans to Sports Venues

Even during tough economic times, Americans seem to find their comfort in sports. Leagues such as the NFL, MLB, and even big-time college football have seemed to come out relatively unscathed by economic turmoil compared to the less popular sports, such as professional soccer, and minor league organizations. In the article “Sports Still Draw Fans Despite Recession” by Charles Davidson, he writes on professional sports organizations that have found ways to weather the economic storm. NFL teams have found ways to accommodate their customers by offering various season ticket packages and multiple payment options, while other teams have resorted to black out days for home games. Some MLB teams in the Southeast have relied on public funding during these times.  Regardless of the sport, organizations are looking for creative new ways to fill seats in the stadium.

Fantasy Football Explosion

Fantasy football is a game that allows its players to score points off of a football player’s statistics. The game allows you to assemble players from any team in the NFL thru a draft and pits you against others in your league during the regular season. Over the past decade Fantasy Football has boomed as an industry from a simple game among friends to an 800 million dollar industry. No longer is the game just for “stat geeks”, it’s become a phenomena that has increased so rapidly in popularity that it has spread through all sports. And the fans of these sports are absolutely eating it up. Today fantasy leagues are not just for professional football, but also college football, baseball, basketball, soccer, golf, NASCAR and essentially any sport that has stats.

Negotiations in Athlete Management

It seems like everyday when you turn on the TV and watch ESPN, you see some sort of contract dispute or negotiation taking place. Normally, the contract negotiations take place between athlete and athletic organization. In contract negotiations, a manager or management team with an attorney on staff will negotiate on behalf of the athlete. Recently, I interviewed Evan Hurst, a sports attorney from Elevan, LLC, who specializes in making sure his athletes receive a gain from negotiations.

Two BCS Conferences Reel in Huge, New TV Deals

In the world of college football, it seems like this offseason has brought in huge tv contracts for two of the conferences in the BCS. The Big 12 conference and the PAC 10 have signed huge, new TV. In April, the Big 12 conference signed a new deal with Fox Network to the tune of $90 million annually over 13 years. The deal is more than four times more than the 20 million annually that the Big 12 brings in now. A minimum of forty games, including all Big 12 home games will now be televised according to commissioner Dan Beebe. The conference’s 13-year deal, which is worth $1.17 billion, will take effect at the start of the 2012-2013 school year. This TV contract ensures that the conference will have enough money to go around and will help to stabilize it for the long-term and that is crucial with the idea of having four super conference tossed about. With the landscape of college football conferences shifting, the Big 12 has already taken a hit with two defections. Long time members Nebraska, which joined the Big Ten Conference, and Colorado, which joined the PAC 10, have reduced the Big 12 down to ten. Also, rumors of Texas A&M and Missouri leaving the conference had the Big 12 questioning it’s future, until the new TV deal came to the rescue.  

Under Armour: Improving upon First Year Billion Dollar Revenue from 2010

Under Armour, the cutting-edge sports apparel and accessories company, posted their first billion-dollar revenue year in 2010 and look to improve even further in 2011. The company reported results from the first quarter of 2011 a net revenue increase of 36% from the same quarter in 2010. The net revenues were $312.7 million in 2011 compared to $229.4 million in 2010.  Net income increased from $7.2 million in the first quarter of 2010 to $12.1 million for the first quarter of 2011. Under Armour had forecasted 2011 net revenues in the area of $1.33 billion to $1.35 billion, which represented a growth of 25 to 27% from 2010. Based on the results from the first quarter of 2011, Under Armour now anticipates 2011 net revenues somewhere around the $1.37 billion to $1.39 billion ranges, which would be a 29 to 31% growth over 2010.

Big Brothers Big Sisters of America

Big Brothers Big Sisters of America is a non-profit organization. They focus on being a positive influence in the lives of children by establishing one-on-one relationships between a child and caring, responsible adult. The impact Big Brothers Big Sisters has been detrimental in the success of these children. Compared to children not in the BBBS program, little brothers and little sisters are (BBBS, 6):

Kids Sports Network

Growing up from a broken home I know that it’s very hard as a kid looking for direction to take in life. Most think that kids don’t have any worries because all they’re concerned with is playing video games or playing with their friends. My parents went through a rocky divorce around the time I was five years old and if I didn’t have sports to help me vent my frustration and provide a sort of mentorship for me, I may have had a different path in life. I’m looking at starting a non-profit organization for kids from broken homes that utilizes sports to help them cope with the stress that they’re under and other problems in life. The premise of the organization is to not only use sports as an outlet for pent up emotions, but to provide mentorship and direction for those children that may have none. I would like to help kids from the ages of 4-13 because these are great years to build this foundation for children to handle the problems they will face going through adolescence. I will go on to talk about an organization that works along the same lines to improve the quality of sports not associated with schools for children.

Social Media Impact

Last week during the Q and A portion after the documentary one of the interviewers had asked Tim Tebow, What impacts do you believe social media has had on brand marketing for athletes and what have you done to take advantage of this? Tebow responded by telling the story of Jay Cutler during this year’s NFC Championship Game between the Chicago Bears and the Green Bay Packers. In the game, Chicago’s offense had played an abysmal first half that would leave them trailing by 14 points.  With 30 seconds before halftime, Jay Cutler had left the game to go to the locker room. When Chicago had returned to the field for the second half, their starting quarterback was seen riding a stationery bike, which gave some indication that he had a problem with his knee from the first half. Cutler played in the first offensive series of the second half, only to come out of the game and never return.  This would cause an uproar among current and former players.  They began to question Cutler’s dedication to the team and his intestinal fortitude. So Tebow’s story was on the negative impact social media can have, but he also believes that it has a positive impact.

            Being a devout Christian, Tebow believes that social media is a great platform from which to reach out and influence fans. It gives him the opportunity to interact with his fanbase and be a positive role model for others.  Tebow said that he started to take full advantage of social media last August and that he plans to use it to its fullest extent in the future. For athletes and celebrities alike, using social media can have its pros and cons, but whoever uses it needs to be aware of the consequences of using it.

Tim Tebow - Everything in Between

Today I had the pleasure of viewing a wonderful documentary on Tim Tebow and the days leading up to the 2010 NFL Draft. The film was directed by Chase Heavener, a Full Sail University grad, and he did an excellent job of telling Tebow’s story. During the hour-long viewing, the documentary covered major in events in Tebow’s life such as the 2010 Under Armour Senior bowl, finding an agent, the controversial Super Bowl Ad, the NFL combine, and the NFL Draft. Heavener did a great job of keeping the audience “glued” to the screen as he presented a comprehensive and behind-the-scenes look of what Tebow experienced.

Media Training for Athletes

With social media firmly entrenched in today's society, athletes need to be aware of what they post on Facebook, tweet on twitter, or post on any other social media forum can get them into trouble. When we sit down and watch Sportscenter on ESPN, we see athletes getting in trouble for making controversial statements or being involved in a situation, that shines a negative light, on some form of social media. This type of exposure tarnishes the athlete’s brand and can cost him in the future. But social media can impact athletes in a positive light. It helps them connect to fans, organizations, and owners by forming a bond instantly. If there is a controversial situation that gets out in the media, the athlete can “set the record straight” by immediately and confronting the issue. Social media training is a valuable asset for today’s athlete. 

So how can today’s athletes stay out of the negative spotlight in the media? There are many individuals in public relations or PR companies that offer training services to athletes for social media. Their mission is to educate and help athletes interact with media, athletic organizations, or with fans to project the desired image. Along with educating in regards to social media, these companies also offer such services as: media training, preparation for interviews or press conferences, or helping to focus efforts in a crisis situation. While using these services to project a positive image the best way to keep out of the news in a negative light is simply leading a life of honesty and integrity. Although no one is immune from a crisis, athletes must be sure to keep their PR consultants informed on all matters. This way nobody is caught off guard and the PR team can be better prepared to navigate through any crisis.