SBJ Morning Buzzcast

SBJ Morning Buzzcast: October 4, 2023

Episode Summary

Tom Dundon eyes MLB expansion for Raleigh; LPGA eyes capital infusion; Women's Super League continues to draw big numbers

Episode Transcription

This is your Morning Buzzcast for Wednesday, October 4th. Good morning. I'm Abe Madkour. Thanks for listening to the Buzzcast. When the Tampa Bay Rays announced plans to secure their future in St. Petersburg, it surprised a lot of people because many felt the location of St. Petersburg was part of the problem of why the team failed to draw over the years. But the Rays said that St. Pete had changed dramatically. The area was much more vibrant, active, and dense. They believe it had a strong base, and fans would support the team, and especially a winning team.

Well, yesterday's game one of the wild card playoffs had to be an eye-opener for some, as the series opener between the Rangers and the Rays drew just 19,700 fans to Tropicana Field. That is the lowest for a postseason game since the 1919 World Series other than during the coronavirus pandemic. Now, to be fair, that attendance of 19,000 was roughly 5,300 below the listed capacity of Tropicana Field, and to be fair, there could have been planning issues at play here. The game did begin during a workday afternoon. A Tuesday game began at three o'clock, and the start time was not scheduled until Sunday evening. So people may not have been able to plan around this or go to this game. But it's certainly discouraging for the Rays and baseball and worth watching attendance over the rest of the series.

We talked about expansion on the Buzzcast. With the Rays' future secure in St. Pete, you wonder how Major League Baseball will begin to look at expansion. We know the markets that have been mentioned. Well, there's obviously Las Vegas if the A's go there. Nashville's been talked about. Salt Lake City has real energy. Montreal's still talked about. Maybe a return to the Bay Area if the A's do leave. And there's always talk about the Carolinas, so you should add Hurricanes' owner Tom Dundon to those interested in a baseball expansion team as he wants to bring a franchise to North Carolina.

Now, Dundon is one of the more interesting owners in sports right now. We talk about him a lot on the Buzzcast. He will lead a group that will attempt to bring an MLB team to the Raleigh area. Now that the Hurricanes have a new lease at PNC Arena through 2044 and Dundon is planning for a large mixed-use development around the arena, he wants to bring another major showcase to the area and said that he has the facts to show that Raleigh is the best place in the country for a new MLB. Team Commissioner, Rob Manfred, has said that an expansion fee would be in the neighborhood of $2.2 billion. Dundon said that price seems about right to him. As a fact, North Carolina, which has an estimated population of almost 11 million people, is the most populous state in the US without an MLB franchise. Count Tom Dundon as looking to change that and trying to bring an MLB team to the Raleigh, North Carolina, area.

As we wrap up baseball, if you didn't check out sportsbusinessjournal.com yesterday, you missed Austin Karp's breakdown of local ratings for MLB teams for the entire season. That is always a must read and a keepsake. Go to sbj.com and check that out today.

Let's move on. More strong numbers around women's soccer as the Barclays Women's Super League in London opened its season on Sunday in front of a league record crowd of more than 54,000 fans at Emirates Stadium for Liverpool Arsenal. So we're continuing to see more and more traction and energy around the Women's Super League. The more interesting news is that the women's teams are now playing most of their matches at the larger stadiums where the men traditionally play. This seems now to be the norm, where the women play at the big stadiums and draw the big crowds, as most clubs now have increased the number of Women's Super League matches played at the bigger facilities for this season. So that's a great trend, and that's something we're going to keep an eye on. But again, a league record crowd of more than 54,000 fans on Sunday for Liverpool Arsenal and the Women's Super League. Another great indicator of interest around women's sports.

Speaking of that, the LPGA is looking to get an influx of new capital, as it will bring on strategic advisors to attract greater financial investment. The LPGA, they see money on the sideline looking to invest in sports. The Financial Times reported that the tour is looking to leverage the growth of the game and fund areas where it needs help. Where does it need help? It needs help in marketing. It needs help in greater exposure. It needs help with its television product. So a strategic planning partner could help the LPGA identify various options for increasing investment. The most likely scenario is bringing in capital from outside partners.

Now, the LPGA formed a commercial partnership with Fenway Sports Group to help it sell sponsorship, but they need more investment to help add to staff, to help broaden exposure, to get more reach, and also build out player purses. So there's a lot here. The LPGA would be following a model with this path. Because, remember, CVC Capital Partners invested $150 million in the WTA in March to help it grow and monetize its commercial assets. Bottom line, this is a smart move by the LPGA. They need the capital. There's enough money on the sidelines. I am sure there's some outside investors looking to capitalize on the growth of women's golf, and I could see them making some significant investments in the LPGA.

Shifting to soccer, we know MLS teams have been working very hard to capitalize on Lionel Messi visiting their market, and the Chicago Fire are one good example. The team is expecting a sold out crowd of more than 61,000 at Soldier Field for tonight, Wednesday's game, against Inter Miami. That obviously would be a team record. But as you know, Messi is unlikely to play as he has missed three straight games. So for the Fire, with all these fans coming, that's a problem. So the Fire are trying to get out in front of this potentially disappointing night for so many, some of whom have paid serious money well over face value to see Messi.

What's the Fire doing? Well, they're trying to use this to boost interest for the future. So they will offer all fans who come on Wednesday night a credit towards season tickets for next season or a credit for a future match. They know they will rarely get the chance to draw 60,000 to Soldier Field and engage with this many fans. They've averaged about 14,000 for matches at Soldier Field this season, so they need to make the most of it. So they're offering an incentive of a $250 account credit toward a new season ticket or memberships for next season, or they'll offer a $50 credit for a future game ticket. So the Fire are trying their best to make sure 61,000 fans go to experience their product and, hopefully, incentivize them to come back in the future. So we'll see how this plays out in a future Buzzcast.

In some sports agency news, Wasserman completed its acquisition of CSM Sport & Entertainment. We first talked about that deal in July. This is the 12th acquisition for Wasserman over the past two years, 12 in 24 months. My biggest takeaway from Wasserman's acquisition of CSM is that it immediately gives it a far larger global reach and expertise. This is a big deal. CSM has more than a thousand employees all over the world. CSM's international business is very appealing. The agency made early bets on sports in the Middle East, and that segment has seen some real strong growth and has been a real revenue driver for CSM. The deal also gives Wasserman strong event and experiential marketing expertise. That is a major core competency of CSM. I'm also looking to see the future efforts around property sales for both CSM and Wasserman going forward. So now that the deal is closed, a focus will be on integrating the businesses as CSM brings a significant global workforce. But the bottom line, Wasserman just became broader with far greater reach around the world.

Finally, last week, Sean McManus announced that he was stepping down as CBS Sports chair next spring after a 27-year run leading that network. This week, Sean McManus joins the Marchand and Ourand Sports Media podcast, and he talks about his career and the state of sports media. It's an interview you do not want to miss. Listen to it at sportsbusinessjournal.com or wherever you listen to your podcasts. That is your Morning Buzzcast for Wednesday, October 4th. I'm Abe Madkour. Have a great day. Stay healthy. Be good to each other. I'll speak to you tomorrow.