Tiger talks very tough, will others listen and follow? Silver appreciative of hitting $10B in revenue; LeBron to tout Pepsi's LIFEWTR; and Paul Archey takes reins at JMI Sports Properties.
Tiger talks very tough, will others listen and follow? Silver appreciative of hitting $10B in revenue; LeBron to tout Pepsi's LIFEWTR; and Paul Archey takes reins at JMI Sports Properties.
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The horizon summit in Santa Clara continues today, looking at the major issues around sports data, sports analytics, and sports business. Look for video interviews and recaps from the event presented by SportTechie, Sports Business Journal, and the San Francisco '49ers all day on sportsbusinessjournal.com.
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And this is your Morning Buzzcast for Wednesday, July 13th. Good morning, I'm Abe Madkour, let's get right to the news. One day after the news that the Department of Justice is investigating whether the PGA tour engaged in anti-competitive practices, as it seeks to thwart a challenge from LIV Golf. Tiger woods stepped up to be a major face for the PGA Tour and offered what I felt was the most stinging and most damning criticism of LIV Golf while meeting the media at St. Andrews. If you haven't watched it, I'd suggest you do it's insightful, and really, he held nothing back in criticizing the players who have left the PGA tour, criticized the format, the style, the approach of LIV Golf, even the need for LIV Golf, and he especially criticized its leader, Greg Norman.
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Now Tiger Woods and Greg Norman have never been close, and this only widens the rift between the two, but the heart of Tiger's argument is one I'm beginning to hear much more frequently from LIV detractors. And that is, "Where's the competitive nature of LIV Golf?" Players are paid so much in guarantees that people believe they'll lose any incentive to fiercely compete on the course. Woods asked of the players, "What is the incentive to practice? What is the incentive to go out there and earn it in the dirt?" he asked. He said players are just getting paid a lot of money upfront and playing a few events, and playing 54 holes. He did not hold back, and it was quite insightful. Now the question becomes, how much of a statesman does Tiger Woods become in having other players pledge allegiance to the PGA Tour, or does Woods' criticism fall on deaf ears for players who are considering the life changing money from playing on LIV Golf? That's what I'll be watching because the money for these players is life changing.
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One other element to watch that an insightful listener of The Buzzcast reminded me yesterday. How does President Biden's trip to Saudi Arabia go this week? And does the issue of LIV Golf versus the PGA Tour play any role during that visit? So certainly keep your eye on that. Meanwhile, there is some more sponsor fallout as Bryce and DeChambeau, and golf ball brand Bridgestone, had parted ways in the wake of DeChambeau's move to LIV Golf. Now Bridgestone has been a long-time partner and tournament sponsor of the PGA Tour, and that's a trend we're continuing to see. We saw it with MasterCard, a long-time PGA tour sponsor, halt its association with two players who committed to LIV Golf. Now DeChambeau signed with Bridgestone when he turned pro in 2016. But let's not forget, these endorsement contracts are really quite insignificant when you consider the hefty guarantees that players are getting from LIV Golf. So those massive guarantees offered by LIV Golf, all baked in the fact that these players would likely lose some endorsement dollars.
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Let's move on, NBA commissioner, Adam Silver admitted yesterday that he is surprised at the revenue the NBA is able to generate considering the long-term impact of the global pandemic. Silver said the NBA is coming off a strong financial year with overall revenue topping $10 billion for the first time. He called that revenue number, "very healthy, considering the league is still dealing with the pandemic," and he thought back to when some questioned whether sports could survive the coronavirus. And he said, "It's remarkable where they are now from where sports was two and a half years ago." I read that quote and said, "Whoa." I read that quote and it's hard to believe it was that long ago, and I'm not sure any of us ever want to return to those days two and a half years ago, but the NBA showing great health with revenue topping $10 billion for the first time.
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Let's stay with basketball news because SBJ's Terry Lefton reports that Pepsi is set to feature LeBron James in a new capacity, as James will be the face of Life Water, which is Pepsi's premium water brand. And it's looking for a jump start in awareness and sales. It's been on the market for a few years. Now lefton reports that a new brand campaign with LeBron James will be unveiled in the third quarter. Remember, LeBron James switched from Coke to Pepsi in late 2020. He was the face behind a spring 2021 launch of Mountain Dews' Rise energy drink, but sources tell Lefton that James was interested in shifting his focus to the more healthier Life Water. So that's why you'll see LeBron James in a new creative campaign for the Pepsi brand in the months ahead.
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Let's shift to some news around women's hockey, because the women's Premiere Hockey Federation will expand to Montreal, bringing that league to seven franchises for the 22-23 season. They were considering adding an eighth team, but the league said they will not add an eighth team till 23-24. Now, a group that includes Premier Hockey Federation board of governor chair, John Boyton, and his wife, Joanna Boyton, they will own the Montreal franchise. They already own the Boston Pride and the Metropolitan franchise. They recently sold their Toronto Six franchise. Now I anticipate this action of having one group own multiple teams to be temporary. And I bet the league is eventually seeking each club being owned by a different group. But right now the Boytons are certainly driving the bus on the Premiere Hockey Federation.
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And we are seeing competition when it comes to professional women's hockey. Remember the Professional Women's Hockey Players Association is a group of players, they're mostly US and Canadian Olympians, they have decided not to play in the Premier Hockey Federation, and they are in talks with Billy Jean King Enterprises and the Mark Walter Group about launching its own league as early as the beginning of 2023. So again, seeing some interesting competition in women's hockey. Hard to believe two leagues will be viable, but you see two leagues being planned and being executed right now.
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Let's shift to some college sports news, because some changes at JMI Sports, that is the Kentucky based college sports marketing agency, which represents such marquee properties as Clemson, Kentucky. They also represent Georgia and Notre Dame and joint ventures with Learfield, but JMI is shifting some of the roles in its leadership team. Long-time president Tom Stultz will step back from the business. Eric Judson will remain CEO, but JMI sports has named Paul Archie as JMI Sports properties president. He will lead a management team that includes Kim Shelton, Nicole Metzger, Nino Vanan, and Leila Brock, each in leadership roles there. Many of those names well known in the sports business. So Paul Archie, who of course, worked for years at Major League Baseball before joining JMI in 2015 will now lead that agency's growth.
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And a personal hat tip to Tom Stultz who was stepping back from his role. This brings an end to a really memorable ride in the sports business for him that began in 2004, when he joined Host Communications. I have always loved Tom Stultz's background. He started as a part-time obituary writer for a Kentucky paper, and then had a 37 year career in the newspaper business. Like I said, he joined the sports marketing business in 2004, and over the last 20 years, he's touched practically every aspect of the rapid growth we've seen in collegiate sports, and few executives have more friends or is more widely regarded than Tom Stultz. So I wish him all the best as he begins a new chapter in his life.
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Finally, a couple of things not to miss. The Pittsburgh Penguins continue to reshape the front office under new ownership of Fenway Sports Group. Long-time sports executive Chris Aber will join the penguins as chief revenue officer, filling the role that Terry Kalna vacated in April. Terry Kalna joined the Canucks in the same position. Chris Aber was most recently at ticketing technology company Logitix. He spent most of his career in ticketing for teams, such as the Mets, the Pirates, the Hawks, the Hornets. He will report to Penguin's President of Business Operations, Kevin Acklin.
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Special congratulations to one of my favorites in the business, Big East commissioner, Val Ackerman, who was one of this year's recipients of the Joe Lapchick Character Award. This award is presented to those who have shown similar characteristic traits of Lapchick who coached at St. John's and with the New York Knicks, and was a real pioneer. He is the father, of course, of Richard Lapchick. Val Ackerman and the other recipients will be honored at a luncheon on September 16th, in New York. So congratulations Val. And in SPJ College's newsletter last night, Michael Smith has the inside story of the voting around the Big 12 Commissioner post, and the roles of Brett Yourmark, Tim Pernetti, and Charlie Hussey. Don't miss that.
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On sportsbusinessjournal.com, I also have listed my top sports business stories of the year so far. So I'd welcome your thoughts on what you think about what I'm missing and what I should have included. And don't miss my SBJ I Factor conversation with GMR's Todd Fisher, a 40 under 40 honoree in 2016, who talks life lessons in and outside the sports business. You can listen to, or watch, my interview with Todd Fisher on the SBJ I Factor on sportsbusinessjournal.com. So that is your Morning Buzzcast. It is Wednesday, July 13th. I'm Abe Madkour, hope everybody has a great day. Stay healthy. Be good to each other, I'll speak to you tomorrow.