SBJ Morning Buzzcast

SBJ Morning Buzzcast: April 14, 2023

Episode Summary

A new day, a new energy in DC and what it means; Steve Simon shifts WTA's China strategy; How a new NYCFC stadium could be transformative for MLS

Episode Transcription

Well, thanks to a few of you who suggested great questions to panelists at the CAA World Congress of Sports next week in Los Angeles. I got a great question for Stefano Domenicali, Steve Ballmer. I also need questions for Michael Rubin, Amy Howe, Steve Phelps, and so many others. Have a question? Let me know. If you're going to be at the World Congress, please say hello as I'd love to say hi. This is your Morning Buzzcast for Friday, April 14th. I'm Abe Madkour. Thanks for listening to the Buzzcast. You made it to Friday. Well, we are closer and closer to the end of the Dan Snyder era in Washington. Now, news broke yesterday on Thursday first by Sportico that Snyder has reached an agreement in principle, an agreement in principle to sell the team to a group led by Josh Harris for $6 billion.

Now if this deal is completed, and there still are a few questions, it would end Dan Snyder's very poor 24-year tenure as owner. I've said time and again, if you go back and see all the moves over his ownership, you'll be amazed at the futility and decision-making by Dan Snyder and his leadership team. This will be great news for fans of the Commanders as Josh Harris is an owner that really, really wants to win and knows how to turn a team around, which is hard to do. Now, we know Harris has owned the 76ers and the Devils. He has also owned a piece of the Pittsburgh Steelers, which he will need to sell before buying officially the Commanders. What else should you know about Josh Harris? Well, he grew up in the DC Maryland area, so he knows what this franchise means to that region.

He is a founder of the private equity firm, very successful private equity firm, Apollo Global Management. He has certainly revitalized the 76ers and the Devils. Look at the level that the 76ers are in the NBA. He is also an owner of the Premier League's Crystal Palace Club. So yes, he's a demanding boss, but he brings on good people and his franchises are known for their strong business practices and he hates to lose. He will spend to put a winner out there for fans. Now he's not a backslapping, work the media type of owner. You won't see him do a lot of photo appearances, but he is certainly, certainly engaged. If this deal gets completed, I believe Commanders' fans will appreciate and like Josh Harris as their owner. The $6 billion sale would set a North American professional sports team record.

Now that would top the previous record of 4.65 billion set when the Walton family bought the Broncos. And remember, that just happened last year. We talked about that a lot on the Buzzcast. As I was sitting yesterday, I wondered if there should be more surprise at the $6 billion sale figure for the Commanders as most of us thought north of five billion would be a great hit when Dan Snyder first put the team up for sale, but it's almost like we're numb now to these franchise values as we just keep seeing the price of sports teams increase and increase and we have other deals out in the market, especially Manchester United. So another big day and another big deal in sports.

Let's move on. This may have been overlooked, but it is very important news and that the WTA Tour will bring its events back to China later this year. Now this would mark an end of a boycott, which was implemented in late 2021 over concerns about the safety of the player, Peng Shuai. WTA CEO Steve Simon took a very strong stand when he had the tour exit China in late '21 over concern about the player and her safety. It was very controversial as the WTA derived a great deal of revenue from playing in China. Simon's stand and position was really unique. No other sport followed his lead, not the ATP Tour or anyone else. He admits that his end goal to get someone from the tour to meet with Peng along with an investigation never happened and he faced more and more pressure from the WTA board, from players, and from those in Women's Tennis to end the boycott and return to play in China.

He acknowledged that by continuing with the same strategy of staying out of China didn't make any more sense, hence the change in the policy. Simon said that the tour schedule in China should be revealed in the next couple of weeks. This will certainly help the WTA Tour's finances, which saw its prize money drop in certain areas and the return to China will improve the WTA's financial situation and overall global calendar. Here's my bottom-line takeaway. Steve Simon took a strong, rare stance for principle. China didn't budge one bit, and over time, Steve Simon's members challenged him whether his stand was the right one for the tour and that led to a change, but a very interesting story with the WTA Tour.

One of the stories to watch in Major League Soccer is the plans for a new stadium for New York City Football Club. It will be built in Queens and I think it'll be one of the more transformative projects in all of sports. The team has selected HOK and Turner as the architect and contractor for this $780 million stadium in Queens. The stadium, which will be the first one built in New York City specifically for soccer, is scheduled to be open for the 2027 MLS season. It'll include an entire mixed-use development. We're talking affordable housing, a public school, a hotel, and plenty of green space near the stadium. Now the stadium will sit at Willets Point, which is close to Citi Field and very close to the National Tennis Center where the US Open is played.

Here's why it's so important. MLS has seen success in so many of its markets, especially the new markets. Nashville's hot. Charlotte's hot. Atlanta is hot. LAFC, LA, that LA market is strong. But to me, MLS is still struggling in a few markets. Chicago needs to get better. Dallas is improving. A new stadium in Miami would be very key. If MLS could have a real jewel of a stadium in New York City, it would go a long way to that league's success. And like I said, this would be the first true home for NYC FC and this has the potential to be one of the most successful teams in MLS, both on the revenue side and on the pitch. With a new home for the franchise and its fan base, I think it's going to change the fortunes of both the team and the overall business and profile of Major League Soccer. So that's why it's so important to keep your eye on this stadium being developed in Queens.

Let's talk some football because this weekend marks the first weekend of 2023 where two pro football leagues go head-to-head competing directly for viewers during the same television windows. Saturday night, seven o'clock, ESPN2, it's week nine for the XFL, and then at 7:30, FOX has week one for the USFL. Both leagues play afternoon games on Saturday, but not at the same time. Now the USFL's openers are part of the FOX Broadcast Network doubleheader, so they are bound to draw more viewers on Saturday than those who watch on ESPN2. But on Sunday at noon Eastern Time, you have the USFL on NBC and the XFL on ESPN. It's going to be interesting to see the numbers as the leagues go head-to-head. Can there be two thriving or successful spring football leagues or will fans gravitate to one? We'll see, but for some context, the XFL has been averaging over 630,000 viewers through week eight on ABC and ESPN and ESPN2. For other context, historical contexts, the USFL averaged about 715,000 viewers last year across FOX, NBC and USA, and FS 1. So again, we'll see how these two leagues do.

Meanwhile, as the USFL starts this weekend, the most obvious area of change is the number of markets that will host games. Last year, if you remember, every USFL regular season game was held in Birmingham, Alabama. This year, games will be played in four markets, Birmingham, Memphis, Detroit, and Canton, Ohio. They are also putting more emphasis on in-venue ticket sales. They actually have ticket sales departments in each of those markets, so they're trying to increase fans in the stands during these games. So that's another issue to watch because last year in Birmingham, it was really a made for television type of production. So USFL, starting this weekend, going head-to-head with the XFL.

Let's end on a couple of quick hitters. The Cleveland Browns are looking to renovate their stadium as part of a massive makeover in Downtown Cleveland over the next few years. They will be able to go out to the market and land a new naming rights agreement. The stadium will no longer be called FirstEnergy Stadium after FirstEnergy agreed to end their naming rights deal after the company admitted its role in bribing a state political leader. So the company was under a lot of controversy. The facility had been called FirstEnergy Stadium since 2013. Now it will be called simply Cleveland Browns Stadium. And finally, it's that time of year, playoff time. NHL regular season wraps up tonight. Playoffs start Monday night and the NBA playing tournament concludes tonight. First round of playoffs begin this weekend on Saturday, always a fun time of the year.

And a reminder, the Buzzcast will come to you from the CAA World Congress of Sports all next week from California. So that should be fun and we'll try a few different things for your morning listen. And that is your Morning Buzzcast for Friday, April 14th. I'm Abe Madkour. Thanks for listening to the Buzzcast. Stay healthy. Be good to each other. We'll speak to you next week.