Media talks in the spotlight; Heinz says it was outbid on naming rights; and what will DOJ investigation mean for PGA Tour? Plus, three names on the move.
Media talks in the spotlight; Heinz says it was outbid on naming rights; and what will DOJ investigation mean for PGA Tour? Plus, three names on the move.
Abe Madkour:
Well, do you like the NBA's Play-In Tournament? If so, get used to it because ESPN is reporting the NBA Board of Governors is expected today, on Tuesday, to approve the Play-In Tournament as a regular part of future League seasons. While it had been approved year-to-year, there was enough support to make it a regular part of the League schedule. Another change to the League's regular season calendar is a possible in-season tournament, and that is expected to be discussed today at the Board of Governors meeting, both the Play-In and the in-season tournaments must be agreed to by the union. But the NBA continuing to reexamine and try to approve upon its regular season schedule. And this is your Morning Buzzcast for Tuesday, July 12th. Good morning, I'm Abe Madkour, hope everybody is doing well this morning. Let's get right to some news in the media world.
Abe Madkour:
SBJ's John Iran reported that this week is shaping up to be a big week for the Big 10's media rights negotiations, as media companies will submit new bids for at least two available packages. We've talked about all the interest around the Big 10. There is a scheduled meeting at the end of the week where Big 10 Commissioner, Kevin Warren, could potentially tell Big 10 Presidents and Chancellors of the successful bidders. But John Iran reports, the more likely scenario is that talks continue, and a deal gets announced sometime in late August.
Abe Madkour:
Now, even before the announcement that UCLA and USC will join the Big 10 in 2024, remember the Big 10 was looking at a major payday, even before the announcement that UCLA and USC was scheduled to join the Big 10 in 2024. Current expectations are that the Big 10's media deal will be worth more than a billion dollars per year. Now, adding UCLA and adding USC could see a further increase of more than 15% over that billion dollar figure. Remember, the Big 10 currently gets just over about 450 million a year in media rights, so this is going to be a massive increase for the Conference and such a big windfall for the schools. So expect the media companies to be more aggressive in their bidding. Remember, Fox already is committed to part of the Big 10 media package. The bigger question, is who joins Fox as partners of the Big 10?
Abe Madkour:
In other media news, John Iran says, "Keep your eye on UEFA's next US rights deal for the Champions League, as many believe it will be another good indicator on the strength of the soccer marketplace in the United States. Now, Relevant Sports is handling negotiations, and wants to double the annual rights fee for Champions League, Europa League, and Conference League to about $300 million per year. Their current partners are CBS and Univision. Both of those companies want to keep those rights, but expect ESPN, NBC, and Fox to express interest. So this will be a very competitive bid process, it will speak volumes on how these media companies view global soccer. Companies can submit bids for three or six years. Bids are due in mid-August, so we should see a deal sometime soon. And Relevant Sports CEO, Danny Sillman, a former 40 Under 40 Honoree, is handling the negotiations. So again, keep your eye on EUFA's efforts to sell their next round of media rights.
Abe Madkour:
Let's move on. In news that broke Monday afternoon that surprised many of the sources I spoke with, the Department of Justice is investigating whether the PGA Tour engaged in anti-competitive behavior in its battle against LIV Golf. Now, the DOJs Antitrust Division has been investigating the Tour's actions in recent months relating to LIV Golf, and this effort really only acknowledges the likelihood that we've talked a lot about on the Buzzcast. The likelihood that this dispute between the two groups will likely end up in a long court battle. Many expect that players suspended from the PGA Tour to file some sort of suit fairly soon. PGA Tour Commissioner, Jay Monahan, has said repeatedly that he feels very comfortable with the PGA Tour's policies, and believes that they will stand up in court.
Abe Madkour:
Meanwhile, LIV Golf CEO, Greg Norman, did not mince words yesterday when talking to the Palm Beach Post. He said that he expected the Department of Justice's action. He called it a result of the PGA Tour's "stupidity." He also said that PGA Tour has refused all efforts to meet with LIV Golf to find any resolution. Bottom line is, the Department of Justice now probing PGA Tour versus LIV Golf.
Abe Madkour:
Let's move on to some naming rights. We hinted at this yesterday on the Buzzcast. A formal announcement is expected today that Acrisure, which is a Michigan-based financial tech company with ties to Steelers' minority owner, Thomas Tull, has secured the naming rights for Pittsburgh's downtown stadium for the next 15 years. We expect to learn more during the announcement today, including possible financial terms. But the deal ends a well-known 20-year relationship between the Pittsburgh Steelers and Heinz. It's been called Heinz Field since the facility opened in 2001. Now, Kraft's Heinz brand said it was interested in retaining the name, but that it was outbid for the naming rights. The brand surprisingly issued a statement saying the Steelers "found a new partner, willing to pay significantly more than we could justify." You rarely get that type of response from long-time partners, so there's obviously some hurt feelings here as Heinz loses out on naming rights to Pittsburgh's downtown stadium to Acrisure, which is seen as a fast-growing global insurance brokerage. They will take the name, starting immediately, on Pittsburgh stadium.
Abe Madkour:
So let's end the Buzzcast like we normally do, around people. Here are three people that caught my eye today that are in the news. First, former US Secretary of State, Condi Rice, has joined the new Broncos Ownership Group as a minority owner. Now, there's a lot of things to like here. One, Condoleezza Rice is familiar with the Denver area. She moved to the Denver area when she was 12 years old, she earned degrees from the University of Denver. She is also a well-known, longtime football fan. The NFL loves having her involved in the sport, and Condi Rice will be a very high-profile and very valuable member of the team's Ownership Group.
Abe Madkour:
The second name to keep an eye on, that is Kim Stone, as Oakview Group named Kim stone as President of UBS Arena in Belmont Park. She will now be based in Belmont Park, New York. She'll oversee the home of the Islanders, as well as Oakview Group's East Coast owned and operated arenas, including the Baltimore Arena, which is undergoing a major renovation and is scheduled to open in 2023. Now, if you don't know her, Kim Stone is one of the most respected leaders when it comes to sports facilities in the entire industry. She's done amazing work in Miami with the Miami Heat and FTX Arena. She's done amazing work in the Bay area with the Warriors and Chase Center. I wasn't sure if she had another move in her, but she obviously found this opportunity with Oakview Group to be a very appealing opportunity.
Abe Madkour:
She also has family on Long Island, so that obviously played a role. But she has touched every aspect of venue management and the facility and team business, and she becomes Oakview Group's first female President of one of their arenas. Again, Kim Stone, one of the most widely-respected leaders in sports facilities, becoming President of UBS Arena in New York.
Abe Madkour:
And finally, Matthew Berry is leaving ESPN after 15 years. And that is 15 years of giving Fantasy advice and suggestions. And I believe he really created his own niche by being in front of the trends in daily Fantasy. I'm not a Fantasy player, but I always admired how he was able to really create an industry. If there's one person who I always think of when considering the influential leaders in driving the rise of interest and the importance of Fantasy sports, it's clearly Matthew Berry. No word on his next move. It would not surprise me at all if he joins one of the number of sports betting companies or operators that are out there. They would surely pay handsomely for his talent and his services, and his following. He's a very, very well-followed Fantasy expert. So Matthew Berry, leaving ESPN after 15 years.
Abe Madkour:
So that is your Morning Buzzcast for Tuesday, July 12th. I'm Abe Madkour, hope everybody has a great day. Stay healthy, be good to each other, I'll speak to you tomorrow.