World Baseball Classic: At the Forefront of MLB's Efforts to Globalize the Game
Israel in the World Baseball Classic
As I sat and watched the Israel vs. Spain final of the World Baseball Classic Qualifier 1 on Sunday evening, I could not help but think about how awesome and underrated an event the World Baseball Classic is. With every run the Spain team managed late in the game their fans would dance on top of the dugout, while on the opposite side the numerous Israeli fans clung to the flags draped across their backs with every stressful momentum change. The atmosphere surrounding the game was both exuberant and tense, creating the type of drama only sports can provide. After winning in thrilling fashion in extra innings, the Spanish team jubilantly ran around the field as if they just won the World Series, displaying emotion rarely exhibited in a professional baseball game and proving that this game truly mattered to the players as much as it did to the fans.
Having Jewish heritage on my father’s side I was quite distraught following Spain's defeat of the Israeli's, however, it began to occur to me that I was not distraught because Israel simply lost and would not be attending the 2013 World Baseball Classic in March. I was distraught because of the lost opportunity for the growth of baseball in Israel, and instead, this opportunity would now deservedly belong to Spain.
While the World Baseball Classic seems to still only have a lackluster following in the U.S., primarily due to many owner’s fear of injury and reluctance to let star player’s participate, the event looks to use its international popularity to increase growth of the sport in other countries in 2013. The newly implemented qualifier system has expanded the field from 16 to 28 countries for this version of the event, allowing countries such as Spain, Israel, Germany, Brazil, Columbia, Chinese Taipei and others to participate for the first time. This expansion of the field reveals Major League Baseball plans to use the World Baseball Classic as far more than just another revenue generator. The World Baseball Classic serves as a means in which Major League Baseball can promote the sport and slowly start to infiltrate new markets. While baseball’s popularity has spread like wildfire in certain Latin American and Asian countries, the sport has seen limited growth in Europe, South America, and Africa. The World Baseball Classic along with several other initiatives such as the MLB International European Baseball Academy, a multiple week academy designed to grant exposure to ballplayers from Europe, New Zealand, and Africa, hope to change this by sparking increased interest in the sport.
The World Baseball Classic Qualifier 2, which was also held this past weekend, but in Regensburg, Germany, was able to garner crowds greater than 4,000 showing that interest in the sport in Europe does exist. In 2011 Alex Liddi became the first participant of the European Baseball Academy to make his major league debut for the Seattle Mariners, and he is only one of the 63 Europeans to ink contracts with a Major League club since the academy’s inception in 2005. Along with the MLB International European Baseball Academy, there are currently 17 other baseball developmental academies in Europe. Major League Baseball hopes that an increase in European teams involved with the World Baseball Classic will continue the positive growth of baseball on the continent, by placing their National teams at the international epicenter of the game.
While baseball seems to be making steady gains in Europe, it has hit developmental roadblocks elsewhere. In 2009, it was announced that the Rays were going to open up a baseball academy in Marilia, Brazil to develop local talent. However, complications with the Brazilian Baseball and Softball Confederation and the city hall of Marilia have forced that plan to fall through. Yet, the interest of the Rays to build a developmental academy in Brazil is evidence that many feel Brazil has the potential to be a successful market for the sport. Major League Baseball hopes that Brazil's participation in the World Baseball Classic qualifier will act as a catalyst for future growth of baseball in Brazil as well as possibly the rest of South America.
Baseball has also struggled to penetrate the Chinese market as well. A 2010 article in The Economistdescribes MLB’s efforts:
“Despite a big promotional budget, MLB has not made much of an impression. It has brought branded clothing to Chinese stores, but not balls or bats. Fields are rare.”
China, who will participate in its third World Baseball Classic this March, is evidence that in order for baseball to increase in popularity, it must have a grassroots foundation. No matter how much exposure the sport receives through marketing, the media, or an event like the World Baseball Classic, without a strong foundation at the youth level, the growth of the sport will be substantially limited.
Whether or not the World Baseball Classic ever reaches ultra-high popularity levels in the United States, there is no doubt that its impact on the global development of the game is remarkable and will not be fully understand for years to come. Not only does the World Baseball Classic increase revenue for Major League Baseball through ticket and apparel sales, sponsorships, and television rights, but it creates exposure to the sport in formerly undeveloped baseball regions. With the formation of new leagues and academies worldwide the talent base for the league will only increase in the future, creating a better product and an increased fan base not only for the World Baseball Classic, but Major League Baseball as well.
Please join the Cornell ILR Sports Business Society this Friday (9/28) at 4:25 pm in Ives 105 as we host Gary Gertzog '80!
Gertzog is the SVP of Business Affairs and General Counsel for the National Football League.
Gertzog joined the NFL in 1994 as Vice President and General Counsel of NFL Properties, Inc. Over the years, his role at the NFL has expanded to include overall legal and business affairs responsibility for the NFL’s commercial operations including media (television, radio, internet, wireless , etc.), marketing, consumer product licensing, corporate sponsorships, events and intellectual property.
He has played a major role in a wide variety of complex commercial arrangements, including those involving new business models and deal structures, such as the NFL Master Agreement (which allocates intellectual property rights between the NFL and Member Clubs), the NFL’s unique sponsorship and internet agreements with NFL Players Association/Players Inc and industry setting deals for apparel, video game, credit card, beverage and telecommunication products and services.
He has also led the NFL’s efforts in important litigation matters including the protection of the intellectual property rights of the NFL and Member Clubs.
Multimillion dollar contracts. Signing bonuses. Endorsement deals. "Professional athlete" is of the most lucrative careers in the entire world. So how do these one-time millionaires end up bankrupt?
Vince Young is arguably one of the greatest college quarterbacks of all time. His 2005 season, capped by a Rose Bowl victory over USC, earned him several accolades and perhaps more importantly, the attention of many NFL teams. In April 2006, he was drafted 3rd overall by the Tennessee Titans. Young agreed to a five year contract worth nearly 58 million dollars, with over 25 million of that money guaranteed.
Now, only six years since Young's rookie season, the quarterback finds himself not only without a spot on an NFL roster, but also consumed by debt. The millions from Young's contract and various endorsement deals are nowhere to be found. Young, like many athletes before him, was undoubtedly given the financial freedom that ultimately led to the destruction of his financial well-being.
Many athletes have the mentality that you are not truly a professional until you buy the fancy cars or expensive houses that are often associated with their image. A popular attitude among celebrities these days, athletes included, is that social status is judged by how much one spends during one night at a nightclub or at an after-hours spot. Everyone wants to be the big shot that spends thousands of dollars in one evening.
Also playing a role in an athlete's financial life are close friends from their pasts. Antoine Walker, an NBA player for over 12 seasons, has shed some insight into bankrupt athletes. In fact, he, himself, is an example. In an interview (see below), Walker stated that he would go out with friends and feel obliged to cover all expenses, since he was the millionaire athlete and his friends were not. Over time, these expenses surely add up. Additionally, friends can often lead athletes into dangerous financial decisions. Failed investments can erase millions of dollars from any athletes' bank account and leave them in a financial disaster.
Aside from occasional help by agents and financial advisors, athletes are often unregulated in how they spend their money. After all, they have earned their pay from countless hours of hard work and deserve to spend it how they choose. But when young athletes - who often come from backgrounds of little financial experience - receive checks worth millions of dollars, freedom to spend this money may turn out to be the worst thing for them. As stated above, athletes are constantly "pressured" in various ways to spend this money. And with little guidance and rarely a formidable force to restrict their decisions, athletes can blow through their money in a very short period of time.
For many athletes the next paycheck is merely a few games away. But as Vince Young's story shows, the career of a professional athlete is very fragile. A typical career in professional sports lasts for fewer than five years. So what happens when the athlete stops playing and the paychecks stop coming? Their unregulated financial decisions often come back to haunt them. In Young's case, the money has in fact dried up and left him in financial misery. Young is currently a free agent with no steady source of income, and he is badly in need of money.
Many athletes have made millions and retained their earnings. Yet there are a select few (for example, Lenny Dykstra, Mark Brunell, and now Vince Young, among others) who fail to keep their money. But is this the result of a lack of guidance or the result of too much freedom? Athletes who lack financial guidance may not realize their mistakes until it is too late. But athletes have been known to splurge irresponsibly as well. The freedom they have to spend their money is something that you cannot take away, but does that make the occasional cases of bankrupt athletes inevitable?
Tennis is an intensely psychological sport. In a singles match, a player is completely on his own without any guidance or instruction from a coach. One of the most important characteristics required of any great tennis champion is an unwavering belief in one’s ability to succeed. Winning a point or game can help a player believe that he has a good chance of winning the match. Similarly, winning a major tournament gives a player the confidence that he is capable of winning more tournaments in the future and the resulting snowball effect can lead to many years of success. On the other hand, confidence can be very fragile in tennis. Losing a point can be difficult to overcome and losing a championship can be devastating. Andy Murray attained that ever so important confidence this summer and that explains why he was able to win an Olympic gold medal in London and his first Grand Slam title at the US Open.
17 players have made five Grand Slam finals in the Open Era, which began in 1968. A player who has made a Grand Slam final five times in their career has clearly demonstrated that he possesses the talent and the consistency to be a great champion. Of the aforementioned 17 players, 14 of them have won at least four major championships. The other three are Ilie Nastase, recently retired Andy Roddick (who could not win more because of the steady dominance of Roger Federer and Rafael Nadal era) and Andy Murray who may be on the verge of a career breakthrough. The 25-year-old Murray has exhibited the mental fortitude to overcome tough losses, as he is currently playing his best tennis despite losing four finals early in his career. Now it seems that he truly believes he can beat Nadal, Federer, and Novak Djokovic (the three players with the most titles currently on tour), an attitude that allowed him to achieve a great deal of success this summer. The door is wide open for Murray, as Nadal is currently having major knee issues and Federer is not the dominant force he once was.
As I mentioned earlier, the inner belief in one’s ability to succeed is vital to consistently performing at a championship level. If Murray can win four grand slams by the time his career is over after struggling to win one for so long, he would have completed a remarkable turnaround. He has the perfect mentor to help him undergo this reversal in Ivan Lendl. Lendl can relate to Murray because he struggled similarly in grand slam finals at the start of his career, as he also lost his first four finals. He ultimately became one of the best to ever play the game, winning eight grand slam championships, tied for sixth most of all time.
The 2012 U.S. Open Champion
Other than Lendl and Andre Agassi (who lost his first three finals and also went on to win eight), most players who lost their first two Grand Slam finals struggled to recover. Seven of the other nine guys who lost in their first two Grand Slam championships either never made it back to the finals or are still playing and haven’t made it back yet. Andy Murray proved at the U.S. Open last week and at the Olympics this summer that he has recovered from his early defeats. Based on the performances of other players who made five grand slam finals in their careers, Murray could be primed for a few years of major success and he has the perfect coach in Lendl to guide him on the way. Murray avoided becoming the first player to lose his first 5 major championships; instead, he seems ready to ascend to a new level of greatness.
Last winter was a particularly lucrative offseason for MLB free agents. Several players landed six-figure contracts, including $200 million deals for sluggers Albert Pujols and Prince Fielder. Not to be outdone, the international free agent market had its own high-profile signings, highlighted by the Texas Ranger’s $100 million expenditure for Yu Darvish. Additionally, several recently defected Cuban stars were inked to big contracts, led by the Oakland A’s' 4-year, $36 million move for slugging outfielder Yoenis Cespedes. Cespedes has been a key part of the A’s lineup, helping them make a surprise run at a post-season berth. He’s got a .290/.351/.491 slash (Avg/OBP/Slg) splitting time between left and center. The most exciting part for A’s fans is that, at just 26-years old, and with not even a full season under his belt, Cespedes has room to grow. If he could improve his walk rate and play an adequate center field, the A’s would have a star caliber player locked up through 2015 for just $9 million a year. This looks like quite a steal for an Oakland franchise dealing with a tight payroll and general economic uncertainty. So were the A's once again ahead of the league on the free agent market?
I don’t think so.
Because not only was Cespedes not the best international signing of the offseason; he wasn’t even the best international outfield signing of the offseason. That honor goes to Norichika Aoki of the Brewers. Milwaukee secured his posting rights for just $2.5 million this offseason, and then agreed to a scant 2-year, $2.25 million deal with the 30-year old Japanese batting champ. Originally, the Brew Crew intended to use Aoki as a fourth outfielder, but he quickly played his way into the starting lineup. So let's take a look at how these two outfielders plucked off the international market compare thus far in 2012.
Norichika Aoki
So far, he has a .289/.359/.430 line, playing mostly right field. While those numbers look good, they don’t seem to stack up against Cespedes’s, especially not in the hitter friendly confines of Miller Park. Aoki’s OPS+, (OPS adjusted for league and park factors, with a league average of 100) is a solid 110, but nowhere near Cespedes, who comes in at a healthy 131. But despite this, Baseball Reference credits Aoki with 2.7 Wins Above Replacement (WAR), while valuing Cespedes at just 2.0 WAR. WAR is useful in player comparisons, since it's designed to measure how many overall wins a player contributed to his team above what a replacement player (Like veteran AAA or AAAA player) would over the course of a season. So how is it possible that a OK hitting outfielder is contributing 1 WAR more than another better hitting outfielder?
There are a number of reasons why WAR values Aoki so highly. First off, while OPS+ is extremely useful, it does overvalue slugging. Even though OBP is more important to creating runs than slugging, it makes up less than half of OPS, leading to power hitters getting a slight advantage. Since WAR works off Runs Created, it takes this into account and boosts Aoki up slightly, although his offensive WAR is still lower than Cespedes’s, 2.3 to 3.3. The big difference in their WAR is attributed to defense. Baseball Reference uses Total Zone Fielding metrics in their WAR calculations, which rate Cespedes as being an absolutely terrible fielder, and Aoki as being just about average. That leads to the higher overall WAR for Aoki.
I’m not sure I totally agree with the advanced defensive metrics on that comparison, but generally speaking, I'm inclined to think Aoki has had a better year than Cespedes thus far. Even if you do think Cespedes was better, how much better could he possibly have been? Milwaukee is paying $2.375 a year for their production, while Oakland is spending $9 million. I certainly don’t see Cespedes as being worth $6 million more than Aoki. The Brewers are spending less than $1 million per WAR, while the A’s are spending 4.5 million, or right around market value.
I’m not attempting to criticize the A’s for signing Cespedes. He’s been a good fit for them and still has considerable upside. But for the same money, they could of went out and competed for any number of established MLB hitters: Michael Cuddyer, Josh Willingham, Jason Kubel, Aramis Ramirez, and Jimmy Rollins all recently signed comparable contracts and put up similar or better production. But the Brewers also found a nice fit for themselves in Aoki, and they’re paying him a salary normally reserved for bench players and relievers on the free agent market. While the A's are getting about market value, the Brewers are gettting much, much more.
It looks like both organizations got a good outfielder off the always risky international market; but I think the Brewers made the better deal.
Please join the Cornell ILRSBS on Friday, September 21 when we host Scott Malaga '89 for our first in-person speaker event of the semester!
Malaga serves as the SVP of Strategic Partnerships at Intersport - a leading sports, entertainment, and media marketing company. During this event, Malaga will have a presentation prepared outlining the field of sports marketing, with specific examples from his 15+ years of experience in the industry. As the Senior Vice President of Strategic Partnerships, Malaga oversees sales efforts for the Sponsorship & Event Marketing division at Intersport. Malaga has dealt with brands such as Taco Bell, State Farm, Under Armour, Geico, and Pepsi. He has then advanced their activations at forums such as the Super Bowl, the US Open, and the NBA All-Star Weekend.
He most recently served as the Vice President of Corporate Partnerships for the Chicago Fire. Prior to his stint with the Fire, he was the SVP and National Sales Director at ISP Sports, which was the nation's largest collegiate rights holder during Malaga's tenure.
At Cornell, Malaga majored in (what is now known as) Applied Economics and Management, and he was a first team all-Ivy League running back. He was inducted into the Cornell Athletic Hall of Fame in 1999.
** Please leave any questions you may have for Mr. Malaga below, and we may choose your question to ask at the event (and give you name recognition as well!) **
A 50 year-old former major league pitcher making headlines after a start in an independent league.
A backup quarterback whose progress is tracked daily by major sports media organizations.
These two situations, while holding little influence on the major developments in their respective sports, have nonetheless garnered a great deal of attention from the sports media in the past few weeks. With such stories making front page news, one might wonder if sports media is transitioning into merely a source of entertainment for fans.
Roger Clemens
Roger Clemens is an 11-time allstar and a seven-time Cy Young winner. He has won over 300 games and struck out over 3000 batters in his illustrious career in the Major Leagues. Yet even Clemens is not immune to the effects of Father Time, now at the age of 50 and far from the days of his athletic prime. But on September 7, 2012, after almost five years of retirement and some controversial legal struggles, Clemens was back on the mound pitching in an independent league. He threw 4 and 2/3 scoreless innings in what was perhaps a personal triumph for Clemens, yet he was quoted as calling his outing just a chance "to play catch with [his] son," who caught him during the game. Clearly this was not a kind of rehab start for Clemens to prepare for a Major League start in the coming days, but the media jumped on the story as fast as a Clemens fastball circa the early 1990s. Questions were raised about Clemens' chances at making a comeback in the Majors as many sources noted the Houston Astros might be interested.
For one thing, Clemens is 50 years old, a fraction of his former self. Again, he's been out of professional baseball for five years and has perhaps spent as much time in a courtroom as he has on a baseball field in the recent past. Not to mention, his prospective comeback would be with the Houston Astros, a team with a record, as of 9/10, of 44-97 and over 40 games out of first place in their division.
So how does this story merit media attention?
It clearly has little impact on the developing postseason race in the current MLB season. Perhaps media felt fans would appreciate Clemens' "comeback" story, especially after his off the field problems. Yet I personally feel a story like this, amid a heated playoff race in the middle of September in the MLB, holds little significance.
By now, any sports fan who has heard of the sport of football has heard the name "Tim Tebow." He is arguably one of the best college football players of all time. He led the Denver Broncos to a playoff victory last season, and is a media ultra-magnet. Yet in the 2012 offseason, Tebow was traded by Denver to clear room for Peyton Manning, finding himself on the New York Jets as a backup to Mark Sanchez. As training camp got going, a Tebow segment was present in almost every episode of Sportscenter on ESPN. He would make the front page of New York newspaper sports sections just for taking his shirt off during a practice. And even though Jets coaches were adamant in calling Tebow a backup quarterback and a third down, short yardage option, the media could not stop following Tebow's every move.
In the Jets' week 1 victory over Buffalo, Tebow rushed five times for 11 yards and attempted zero passes. He played little to no role in their win, perhaps a confusing fact given all the preseason attention he was given, and his role in the remainder of the Jets season may likely be just as small.
So why was Tebow a constant in sports media for nearly a month?
When was the last time a third down running back was given daily time on Sportscenter? Perhaps Tebow, who has already developed a sort of cult following, heading to a media supercity such as New York was too much for the media to contain themselves. It is somewhat of a shame, however, that so much attention was given to a player that registered only five plays in an entire game.
I feel like sports media has begun to place a larger focus on stories of interest rather than stories of importance. While stories of importance undoubtedly receive their fair share of attention, situations and players such as Tebow and Clemens receive perhaps too much attention simply because they appeal to sports fans. After all, sports is an entertainment business, and articles that entertain fans may essentially be all that is expected from the sports media.
The Cornell ILR Sports Business Society was fortunate enough to Skype with Ari Roitman on September 4th. Roitman is a ’98 Cornell graduate and currently serves as the Philadelphia Eagles’ Senior Vice President of Business.
Please read after the jump to hear about Roitman’s unique career path in sports, his role in the business behind the Eagles, initiatives they’ve have taken under his leadership, his career path, and much more!
On his role as SVP, Business:
“I essentially oversee a number of the revenue streams - I oversee all corporate partnership business, as well as our premium business which consists of suites, club seats, other premium products we sell, and then all of our media assets that can be monetized. That all falls under my jurisdiction.
On a day-to-day basis, my old job (as VP of Corporate Sales & Marketing at the MLB) was much more grassroots – I was doing deals; I was at the forefront of negotiating partnerships. While I’m still doing that, my role is now that of a manager. I run a team with folks that are primarily responsible for doing those things, and my job is to make sure everything is running smoothly – that all of our partners are happy, that all of our commitments are being managed well. And also to keep in mind that we have a certain way we run our business, and making sure that we stay true to that."
On his years at Cornell:
Compared to others in the industry, Roitman’s educational background is unique. After finishing all of his prerequisites as a pre-med student, Roitman was on track to graduate as a pre-med student.
He recalls the particularly rigorous summer between his sophomore and junior.
“I took a full year of organic chemistry in 8 weeks, which I don’t recommend ever doing for anyone…ever again. It was Hell – 8 am to 11 pm every day, and not a single weekend night was spent out. It taught me something about myself.”
However, that summer allowed him to reflect on his life path.
“I just didn’t think I had another six to ten years left in me before I could become a full fledged member of the working force as a doctor."
Roitman transferred majors, and eventually graduated with a degree in Psychology.
Though Roitman had minimal business background, see how his Psych major helped him learn the most essential skill in sports business:
On his career path:
With no business background, but a deep passion for sports, Roitman’s first position after graduating was an unpaid internship at a Manhattan sports marketing firm that he got with the help of a Cornell professor.
The firm represented various sports broadcasters, and Roitman talked about the "less-than-fulfilling" work.
“I spent my first three months editing tapes of broadcasting talent like Chris Berman and Jack Edwards…my job was to edit their highlight reel tapes and making sure our VCR’s at the agency were recording broadcasts over night…not exactly what I went to Cornell for.”
“The bottom line is that sports, like entertainment - and I don’t think this is a good thing, but it’s the way it is – it is very much a ‘pay-your-dues’ industry. If you have the attitude that you will do well with whatever ‘garbage work’ is thrown your way, then you will have the opportunity to do better work.”
And things did get better for Roitman. After eight months of the aforementioned “garbage work,” Roitman was then given the opportunity to work with the US Women’s National Soccer Team (who had just won the World Cup on American soil), where he was involved with management of their sponsors.
After two years with the women’s team, Ari had earned a position with MLB, where he would eventually go on to serve as the league’s VP of Corporate Sales & Marketing.
Roitman recalls his thought process behind a monumental decision in his career - when he decided to leave the MLB and join the Philadelphia Eagles in 2010. See what he valued, and heavily considered before making such a crucial move:
On the difference between working in partnerships in baseball and football:
Roitman was asked how his approach to business and partnerships changed as he went from the MLB to the NFL. However, he said the most substantial difference isn't working in a different sport. Rather, working on the league-side of the MLB (or any league for that matter) is considerably different than the team-side business.
What are some of the major differences between working on the business of league-side management and team-side partnerships? See Roitman's explanation:
On how Eagles’ quarterback Michael Vick’s controversial history has not affected Eagles’ corporate partnerships:
“Something like that comes up, it’s never completely gone. The organization took a big gamble a couple years ago when we signed him. Whether or not you think it paid off in a football sense is irrelevant to me; obviously the more we win, the better off the business is going to be – there is a direct correlation there. But the bottom line is, people ask, and business partners ask. However, it was never and will never be a deterrent or get to the point where it prevents us from consummating a partnership or where it prevents us from selling a suite.”
“As an individual, if you believe in second chances, if you believe that people learn from their mistakes, and you want to judge them on how they live their lives after the fact…in my opinion he’s done a pretty good job, about as good of a job as you possibly can…I can’t say that it has affected the business, but it is very real, and we do get the question.”
On the Eagles' latest partnership, Angry Birds:
Roitman was recently in the news discussing the recent partnership between the Angry Birds brand and the Philadelphia Eagles. In the press release, Roitman stated,
“This is a test of the waters type of partnership, and one that the Eagles desperately wanted to do first.”
See the business behind this deal - how it developed, the plans the Eagles have to integrate the Angry Birds brand, and the value in it for both partners - as well as a funny story Ari shares about Eagles' coach Andy Reid:
On initiatives the Eagles brand has taken to benefit the community and environment:
Though the overall goal for Roitman and the Eagles is to drive revenue, he also noted how much the organization values its positive impact the community.
Roitman discussed a partnership between the Eagles and NRG, which is a Princeton-based Fortune 250 Company. As a result of this partnership, there have been 11,000 solar panels and 14 wind turbines installed at the Lincoln Financial Field. That is enough to generate about one third of the power needed to run the stadium on an annual basis. The Eagles also have a “Go Green” platform that is a league-leading recycling program.
“Sustainability is a vital issue with our ownership, and it is very much in our DNA.”
Roitman also detailed the team’s community outreach. This past year, Beyond Sport recognized the Eagles for having the largest community impact from a sports team in the world. There was a conference in Cape Town, South Africa where the Eagles were awarded for their efforts in the community.
Some of these efforts include the Eagles' Bookmobile, which travels around the Philadelphia area every day to schools, shelters, libraries, recreation centers, and summer camps to read and give free books to children. This initiative is specifically geared to help alleviate the illiteracy epidemic in the area, and has had a significant impact.
“A couple of things are really important to the Philadelphia Eagles – outside of my core responsibilities and revenue generation and the football side of the house, sustainability and community outreach are two pillars that this organization can stand up and feel very good about.”
On whether the economy or improved home-viewing experience has affected luxury sales and premium seating:
According to Roitman, this is a real problem for other teams in the NFL, as well as other leagues. However, the Eagles have yet to face serious repercussions as a result of the recession.
“We are very fortunate to have a passionate fan base here, as well as a very forward-thinking ownership group, a very forward-thinking President, and it leads to very mature, sound business.”
To avoid having to sell these tickets each year, the Eagles look to lock up long-term deals with these consumers.
"We do all club seat tickets on five, seven, or nine year terms, instead of trying to resell every year. We’ve got a 40,000 person waiting list for season tickets, and so we’ve also got to get our premium buyers locked in. Long term, suites are either seven or ten year terms, but that is specific to our market.”
Though it may seem discouraging for potential buyers to lock themselves into a long-term deal like that, Roitman mentioned how valuable such an asset can be to a business.
“A premium purchase is often a business purchase – the organizations that are buying are doing it right, they doing things like looking at an ROI analysis before moving forward. So, if they’re investing $14,000 per year in premium tickets, what type of business did they wind up securing from the entertainment? Oftentimes, we call it a success story – if a deal closes, and one small reason for that is because you took a potential client to your suite for the Eagles/Giants Sunday Night Football game where Brian Dawkins’ number is retired, oftentimes the tickets pay for themselves and then some.”
On the NFL's decision to switch from Reebok to Nike as their official outfitter, and some obstacles the Eagles faced as a result:
This offseason, Nike succeeded Reebok as the NFL's official uniform outfitter. Club member Channing McNeal '15, an ILR student, asked how this new apparel partnership has affected the Eagles from a marketing and sponsorship standpoint.
See how the Reebok logo posed problems for the Eagles as they marketed LeSean McCoy, Michael Vick, and DeSean Jackson for this upcoming NFL season:
On his career advice for students in the room:
Rotiman was asked:
a) What is the best career advice you received along your journey? b) What advice do you have for the students in room right now?
Roitman discussed how important it is to maintain healthy relationships along your career path. Though things may not consummate as planned, he stressed the importance of not burning any bridges with others.
"The blanket term I use is that 'it's a long life,' When you're young, and you're in business, and something doesn't go your way, it's very easy to get upset and fly off the handle....The bottom line is to always keep in mind that those things, in the grand scheme of things, are very, very small. You never want to do anything to burn bridges, and you never want to do anything that can damage relationships in the long term...Just because something doesn't hit when you want it to hit, doesn't mean that in a year, two years, even three years from now it won't happen."
Roitman told students that even though they might be "paying their dues" early in their careers, by no means is it a reason to get discouraged, but rather an opportunity to prove your worth.
We are thankful that Ari was able to take the time out of his schedule and join us for this Skype chat. Like our other events, this was a tremendous learning opportunity for our members, and we greatly appreciate the insight he provided us with.We hope to remain closely connected with Ari moving forward.
Thank you to all who attended. We hope to see you for our next event later this month!
As always, views expressed by individual writers do not, in any way, represent the views of the Cornell ILR Sports Business Society.
In February 201l, there was pandemonium in New York, as the city's beloved Knicks traded for “superstar” Carmelo Anthony. The trade for Carmelo offered Knicks fans a sense of hope that the team would finally be in legitimate competition for an NBA title. However, since the trade, the Knicks have been hampered by continuity issues and lingering injuries, leaving the team in a state of mediocrity. As the 2012-2013 season approaches, the once optimistic view of success has all but faded. As a frustrated fan, it is easy to blame the current Knicks for their shortcomings, but the true fault runs in the organization, starting with owner James Dolan, and his refusal to commit to a true rebuilding process.
For the past 12 years, the Knicks have been repeatedly haunted by a front office that continues to make the same mistakes. Instead of bottoming out and actually rebuilding the team with young talent through the draft - an approach proven successful by the Oklahoma City Thunder - the front office has decided it is better to trade for and to sign overpaid middle of the pack “star” players. The list of overpaid veterans the Knicks have acquired in the last 12 years includes Antonio McDyess, Stephon Marbury, Zach Randolph, Eddy Curry, Jalen Rose, Steve Francis, Tracy McGrady, and now Carmelo Anthony
Marbury and Anthony have been able to lead the Knicks to three first round playoff appearances, but the other players mentioned can be considered complete disasters, as the team has only finished above .500 twice during that span. In order to acquire players, such as Eddy Curry and Tracy McGrady, the Knicks gave away draft picks, which have turned into players such as All Star LaMarcus Aldridge and impact defensive center Joakim Noah
In 2008, when the Knicks hired famed executive Donnie Walsh as President of Basketball Operations, it seemed as if the team was finally headed in the right direction. After a few years of working to get under the cap, in 2011 the Knicks emerged as an exciting young team led by newly signed Amare Stoudemire, accompanied by draft picks Danilo Gallinari and Wilson Chandler. However the trade deadline deal for Carmelo Anthony, in which the Knicks gave up, Gallinari, Chandler, starting point guard Raymond Felton, as well as four future draft picks, signaled the Knicks had fallen for the same trap. What was more intriguing were reports that James Dolan stepped in at the last moment to make sure the deal went through. Adding to the suspicion that there was dissent amongst the Knicks front office, Donnie Walsh chose to leave the team at the end of the season. Although Carmelo Anthony might be a class above several of the other players the Knicks have traded for, his selfish play as well as lack of postseason success should have been a red flag for the organization.
Fans are still flocking to the Garden
The primary reasons suggested for owner James Dolan’s continued pursuit of overpaid middle of the pack stars comes from the claim that the Knicks revenue would suffer greatly if they were an absolutely terrible team. However, there are several financial factors that prove this is far from true.
Despite not advancing past the first round of the playoffs for the past 12 seasons, the Knicks are still currently the second highest valued NBA franchise at $780 million, according Forbes. Also, the Knicks have been in the top 10 in the league in attendance for all 12 of those years. The primary evidence, however, comes from the 2005-06 season.
That year the Knicks finished with their worst record during the aforementioned 12-year span at 23-59. However, they still finished sixth in the league in attendance, averaging close to 19,000 fans per game. What James Dolan continues to misunderstand is that New York basketball fans are intelligent basketball fans. The true Knicks fan would not lose allegiance to the team over a bad season or two if they saw the team building towards the future through the draft. As the beginning of the 2011 season showed, a young and exciting team that hustled and played hard every night would truly bond with the city.
For the past 12 years James Dolan has been content producing a mediocre product and benefiting solely on New York’s craving of basketball, instead of operating the team following a true plan with potential for long term on-court success and unimaginable profits for the franchise. Going forward a fan can only hope that whether or not the Knicks long term commit to Carmelo Anthony or not, they will finally learn from their mistakes and focus on building the team through the draft and by acquiring role players without burdensome contracts.
It has to be our year. This would be the first time in thirteen years, so it's about time, right? We went out and spent a ton of money, and it has to pay off. Yeah, so this will finally be it.
Buffalo Bills fans aren't much different than any other fans, at least that's what I like to think. Sure we may be a little bit bitter about not winning a Super Bowl or maybe the Music City Miracle or it could be the fact that we haven't been to the playoffs in a couple years (since 1999/2000 to be exact). See, with Buffalo fans, things are usually pretty dark and gloomy after a losing season, but right around draft time things start to pick up around here. Sign a few free agents and that optimism comes back. It's weird though because Bills fans seem to be pessimistically optimistic. In other words, we generally try to keep from getting too excited because we have been burned too many times before, but we still keep finding ourselves thinking about the playoffs. Take last year for instance...
Going into the season, the city was not very optimistic because we didn't know what to expect from QB Ryan Fitzpatrick, and there were no major offseason moves (aside from drafting Marcell Dareus). We struggled the season before, so we were just hoping to improve. Then, the season started and we won at Kansas City for an easy win. OK, that's just one win, we couldn't get too excited.
In our home opener, we beat the Raiders on a last second touchdown. Looking back, that was one of the most memorable wins I can remember (I became a godfather just hours before the game started). We were 2-0 and things were starting to get more interesting, but hey, we've been here before. Let's not get too happy because we have to play New England the next week. I remember when we beat New England the last time...nine years ago (Sam Adams was on the cover of Sports Illustrated!).
Unfortunately that season had its share of parallels to last season, but that's a story for a different day. We had this game against the Patriots marked down as a loss, which no one in Buffalo was really complaining about. If we stayed close, that would be a huge bonus. Obviously you know what I am getting at and hopefully you guys remember the win too. Buffalo improved to 3-0 and was alive and now the city started to get excited. We were on the cover of Sports Illustrated again, we were the talk of the NFL, we were on top of the division.
Then, the wheels fell off of the wagon and injuries got the best of the 2011 Buffalo Bills. We were let down yet again. So this year, we won't get too excited.
Yeah right.
The Bills went out and signed Mario Williams, one of the top pass rushers in the game. Then, we signed Mark Anderson, who had 10 sacks for the Patriots last year. We had a very good draft by getting a couple starters with our first two picks and the optimism was back in a big way. I'm not sure if I have been this optimistic about a Bills team (no, seriously), seeing as the last time we were in the playoffs, I was seven years old. I really get nervous when I feel this way, but I want this team to be good so bad. So, I will continue my Sunday rituals like I always have. That means waking up very early, reading the NFL Sunday section of the Buffalo news, playing catch with my dad and my brother, watching the pre-game shows (NFL countdown for an hour and then NFL Today before the game), and then that magical time comes. This year will be no different. Well, hopefully I will just be continuing my Sunday rituals a little later into the year (January please!).
Put aside all of the reasons I want this team to be good. It's bigger than that. The city needs this team to be good, to go back to the playoffs, to make us all a little less bitter. As the Bills go, the city goes and you'll begin to see that in my writing throughout the season. But, don't worry about depressing articles because this is our year, this has to be our year.
