Posts Tagged ‘ Cam Suarez-Bitar ’

Agents’ Panel Considers Available Options Regarding Marketing Agents Etc. and the Josh Luchs Situation (or, “Is There Significant Demand or Need for Revenue Sharing Between the NCAA and Student-Athletes?”)

 

The NCAA and athletic departments/universities around the US are finding it harder to enforce somewhat vague compliance rules. State lawmakers will play an increasingly important role in "policing" agent activity with regards to student-athletes.

In an Associated Press article written by Michael Marot, titled “Agents’ panel not taking anything ‘off the table,’” and published 27 October 2010 on the NFL News online news service available through the mobile Android application dubbed “NFL News,” agents and student-athletes are increasingly targeted over time in a recent probe by the NCAA.  The collegiate athletics sanctioning body commenced an investigation of ever-increasing thoroughness after Reggie Bush was accused of accepting consideration from agents while a student-athlete at the University of Southern California.  More recently, six University of North Carolina student-athletes were suspended from athletic events after allegations were leveled at the latter and coaches who broke NCAA rules by engaging agents and accepting consideration for contact with players and coaches on the football team.

Josh Luchs: the agent industry's Jose Canseco.

Serious issues underline the fact that student-athletes are keeping relationships with agents and coaches – as in UNC’s case – are facilitating the process.  According to Marot’s article, since the late 1980s, student-athletes like Ohio State superstar and prospective Pro Football Hall of Fame wide receiver Chris Carter have either accepted consideration from agents or simply contacted them before their eligibility expires.  It is an old problem that lingers in the student-athlete’s former athletic department (i.e. Reggie Bush sunk USC’s athletic department and football program, though he and the offending agents were the only parties in breach of NCAA rules) and disappears from the athlete’s life upon departure from the university/team.  Therefore, the NCAA has enlisted the help of former agent/whistleblower Josh Luchs in its determined and focused effort to decrease the frequency of such infractions.  By punishing student-athletes who are drafted by the NFL and any agents who violate NCAA and state rules and laws, the sanctioning body hopes to deter engagement in said activities, which affect the university and uninvolved/innocent student-athletes who remain at their institutions in the long run and follow the rules.  In a statement by the NFLPA – a prime stakeholder in the student-athlete/agent controversy – mentioned in Marot’s article, however, the professional players’ union refused to levy penalties on players who violated NCAA rules in spite of any of the probe’s findings.

The NCAA’s investigation extends beyond the USC and UNC football teams.  Currently, student-athletes at the University of Georgia, University of Alabama (defending BCS national champions), and the University of South Carolina have been implicated in the league’s investigation.  The problem of agent/player relationships resulting in an exchange of consideration before the end of the student-athlete’s college playing career is more insidious than originally thought.  Clearly, student-athletes – specifically college football players – are lured by financial gain to break NCAA rules.

It would be interesting to see the results of a decision by the NCAA to share its revenue with student-athletes in a holistic attempt to prevent unethical behavior by the latter and agents.  Since over 90% of college athletic departments operate at a loss, revenue sharing would be accomplished through the NCAA and not on a per-school basis.  Universities with athletic departments sanctioned by the NCAA ought to be audited to ensure that financial statements accurately represent curtailed profits.  In such a case that the statistic is true, then the NCAA ought to create escrow accounts for student-athletes that may be either withdrawn upon graduation to assist with transition to a life outside of professional sports, or give the former student-athlete a head start on a retirement fund.  After all, the NCAA’s assets reach well beyond seven, eight, or even nine figures per year, yet it does not incur the same costs that significantly decrease professional leagues’ retained earnings at the end of the year: player salaries.

All in all, the process has only just begun.

Cam Suarez-Bitar.

For more on the topic of student-athletes and revenue sharing, you can read a related article at http://csbcomsportsbiz.com/2010/08/03/should-college-athletes-be-paid/

 

The fact that student-athletes are willing to accept money from agents or boosters acting unethically may signal a growing demand for revenue sharing between the NCAA and college student-athletes. After all, without the student-athletes, would athletic departments, universities, or the NCAA (i.e. Bowl Championship Series) have a product to market? Depending on your answer, it follows to ask what would constitute fair compensation for the full-time student-athletes who make college football the prime time spectacle the nation follows and marketers exploit. It is a challenging conundrum, to say the least.

Examples of Sports’ Social Significance: Liverpool FC Fans Stabbed in Napoli after Europa League 2010 Match, The Soccer War, and Jesse Owens in 1936

As if Liverpool FC and its fans did not have enough to worry about with the controversy involving the team’s sale (eventually sold to New England Sports Ventures), now fans have to worry about a new wave of hooliganism abroad.

According to an article broadcasted early Thursday 21 October 2010 over Britain’s BBC News’s online service, Liverpool FC supporters were allegedly attacked by gangs of Napoli fans through the evening of Wednesday 20 October in separate incidents.  Three Liverpool fans remain in a Napoli hospital recovering from stab wounds and other injuries.  BBC’s correspondent in Rome, Duncan Kennedy, reported that “a father, his two sons, and a friend” were also attacked.  According to the article, the four Liverpool fans were surrounded by 30 to 40 rioters and brutally beaten.  In addition, Alexander Philips (53 years old) and another Liverpool resident (27) who preferred anonymity are also recovering from the attacks.

Napoli police confirmed that a group of extreme Napoli fans called “Ultra” were responsible.  Much like the “hooligans” British authorities claim to have all but eradicated from soccer matches with the help of local law enforcement, the “Ultra” violently confront opposing teams’ fans in public and in the stadium.  “Filippo Bonfiglio, head of DIGOS, the local department which deals with terrorism and political activity,” assured the public that law enforcement personnel would do everything possible to prevent a recurrence.  However, Bonfiglio cautiously emphasized that in a city of 1.5 million, it would be impossible to make any guarantees.

In a related story published earlier this week on BBC News’s online service, another Europa Cup game in Italy was disrupted – and ultimately cancelled partway through the match – when hoards of fans loyal to a Serbian team scaled fences separating fans from the field and threw lit flares onto the pitch.  Political issues in Europe centering on Serbia’s potential membership in the EU and alleged persistent racial tensions in the continent are believed to be major causes of the game’s cancellation.

Sport, in its spontaneous nature, can ignite emotions unlike few other social catalysts.  It is meant to unite, entertain, and inspire; yet, there are groups who use its emotional equity to fuel unrelated agendas and transform rivalries into violence.  Those who feel that sport is socially insignificant need only look at examples like this year’s Europa League championship or even the 100-hour war (the Soccer War, or La Guerra del Futbol, in Spanish) between Honduras and El Salvador in 1969.  Unresolved immigration issues and border disputes between both nations boiled over when riots broke out after a soccer match between the two Central American countries.  Though a cease-fire was secured nearly 100 hours later, a peace treaty was not signed until 1980.

African-American track star and sports legend, Jesse Owens.

As with all of man’s inventions and plans, there are pros and cons – sad stories intertwined with the good.  A clear example of the positive role sports play in society can be found in the history of the 1936 Summer Olympic Games held in Berlin, Germany.  Track legend Jesse Owens, an African-American athlete, shocked Adolf Hitler and the Nazi Party by winning four gold medals in the long jump, 4×100 meter relay, 100 meters, and 200 meters at the games hosted in the heart of the so-called “Third Reich.”  Through his success on the field of human endeavor, Owens returned to America an Olympic gold medalist, champion of civil rights, and hero to millions around the world.

Sport is one of society’s most powerful tools.  It can be used to divide… or it can be used to unite.

Cam Suarez-Bitar.

This year’s tournament has been marred by racial and political tensions exacerbated by gangs of hooligans who target opposing teams’ fans.

ACC, ESPN, and Raycom Deal is Evidence of the Importance of Relationship Building in Business

Raycom Sports has covered ACC sporting events since 1979 and both entities have helped one another prosper over time.

In the 4-10 October 2010 issue of Sports Business Journal, an article by Michael Smith and John Ourand titled, “History with ACC secures future for Raycom,” covered how the long-term relationship between the ACC and Raycom saved the latter from possibly losing its biggest media contract and main revenue stream.  Their article is the basis of today’s post and a starting point for my conclusions.

Basically, North Carolina-based Raycom simply could not match bids with networks like ESPN and Fox – who were both vying for the conference’s rights – nor survived negotiations without CEO Ken Haines or his staff’s efforts to underscore the role Raycom has played in the ACC’s history over the past thirty years.  Nevertheless, talks between ESPN and the ACC would eventually end with a $1.86 billion contract that goes into effect at the beginning of the 2011-2012 season, according to Smith and Ourand’s article.  Where does that leave Raycom?

I Remember the Time You Helped Me when I Needed it Most… Thank You (And You Have Been Here for Me all of these Years… Thanks)

When ESPN launched in 1979, it faced the challenges all start-ups face, not to mention the level of competition found in the sports industry.  Raycom sold the rights to some of its ACC basketball games to ESPN in the early 80s, giving ESPN a chance to establish itself.  Later, in 1993, Raycom sold the rights to a Duke-North Carolina basketball game that allowed ESPN2 (the network’s new channel) to enter the scene with a fair degree of credibility, according to Smith and Ourand.  As the decades came and went, ESPN grew and became the premier sports network in the US.  As for Raycom, it remained in its market and built on its relationship with the ACC.

Raycom CEO Ken Haines (right, with Charlotte Regional Visitors Authority CEO Tim Newman) says, “We really are the marketing and corporate relationship arm of the conference.” (caption taken from 4-10 October issue of Sports Business Journal)

Through the Summer of 2010, Raycom was in the fight of its life to secure a deal with the ACC that would guarantee its survival.  “Everyone involved in the negotiations cited Raycom’s 31-year history as the main reason it was able to strike a deal,” wrote Smith and Ourand of the negotiations between the ACC, ESPN, and eventually Raycom.  According to Smith and Ourand’s article, ACC Commissioner John Swofford said, “It tugged at me… We wanted to keep Raycom as a partner, but we had to do what was in the ACC’s best interests.  That we got the deal we got and kept Raycom involved was icing on the cake.”  Indeed, Haines used Raycom’s history with both the ACC and ESPN as a major talking point during negotiations.  The product: a $50 million a year sub-licensing contract between ESPN and Raycom that secured at least 50 North Carolina jobs for the next twelve years.  If you look in either Smith and Ourand’s article or Raycom’s website, you will find some of the particulars of that deal.  Essentially, Raycom keeps “ACC football and basketball, [remains as] holder of regional cable rights, administration of ACC Properties and management of all ACC digital platforms including operation of theacc.com, and the official conference web site,” according the Raycom.com.

Conclusions

While the bottom line influences all smart business deals, it is not the only path to follow during negotiations.  There is a popular misconception that business is simply cold and harsh, and defined by cliches in popular culture such as the great “Wall Street” villain Gordon Gekko when he famously states that “greed is good.”  Indeed, management and leadership must act with the company’s/stakeholders’ interests in mind, but managers who lead both prosperous and honorable careers and leaders who earn the respect of their peers do not forget those who helped them along the way.

Without Raycom’s willingness to sell rights to some of its hottest properties to a new competitor also struggling for credibility (ESPN and ESPN2) so long ago, or its loyalty to the ACC over 31 years, ESPN and the ACC would have spent more time and resources searching elsewhere for rights to quality programming and securing media service for its properties and events.  Whether in business or life itself, one always appreciates another’s efforts to make life a little bit easier.  Sure, one cannot dismiss the fact that Raycom has profited from these relationships over the past thirty years in one way or another, but so have ESPN and the ACC.  In fact, all parties must benefit if a relationship is expected to function well and last a long time (Raycom, ESPN, and the ACC prove this concept).

A long time ago, I learned an important lesson from the greatest people I have ever known (my parents, grandmother, and brother – and am reminded of it every day by theirs and my fiancee’s unyielding example) and would like to emphasize today.  Remember that as long as one dutifully conducts oneself with honor, integrity, and can walk in and out of an establishment with his or her head held high, there is no failure to fret about nor any outcome to fear.  In fact, it is one of the best methods of achieving success and fueling confidence in any endeavor.  This is an irrefutable truth that we must exemplify throughout our lives in order to be truly successful and thoroughly satisfied at the end of the day.

Cam Suarez-Bitar.

Thanks, as always, for your readership.  This article is a tribute to all of who have played a positive role in my life.  From friends and instructors who have provided both wisdom and support, to my family and future wife who have not only helped make me the man I am today, but indeed make this world a better place through their words, actions, and love.

The Pro Football Hall of Fame Quarterback vs. Non-Hall of Fame Quarterback Challenge (Part 1)

It’s late Tuesday evening and we are that much closer to Kickoff 2010.  To celebrate the beginning of what will prove to be yet another great football season, we will count down the remaining five weeks to the season’s opening kickoff with a five-part series of weekly posts that will explore the reasons why some NFL quarterbacks are enshrined in Canton, Ohio, and others patiently (or impatiently) await induction.  This is not your standard barroom discussion or argument over who is the best quarterback of all-time (<cough> Johnny Unitas! <cough>).  Rather, this five-part series represents weeks of extensive statistical analysis I performed a few months ago that offers explanations as to why, for instance, Joe Namath is in the Hall and Earl Morrall is not.

Furthermore, we will look at exactly how relevant player stats like career passing yards, career touchdowns, career completion percentage, and career Super Bowl victories are to the Hall’s answer to Shakespeare’s great question: to induct, or not to induct.  I am sure you also know by now that “The Bard” himself, yeah old Billy Shakes, was a rabid Dallas Cowboys fan, too.

This week, we begin with an introduction to the problem at hand.  Next week, though, we will view our first descriptive statistics.  Please open the .pdf file by clicking the link below.  For your convenience, I included an appendix with my data set and samples at the end of each weekly installment.

If you have any questions, concerns, or anything else to add, please feel free to post your comments here or send me an email.  If you use any material I present herein for academic purposes, just be mindful to write proper citations and/or contact me directly through this blog or email.

The next few weeks will feature heavy statistical theory and relatively complex models and I would be more than happy to explain anything you may not recognize – it can get a bit cryptic.  Lastly, I paid close attention to detail and did my utmost to provide a quality product; nevertheless, should you catch a mistake, a correction would be much appreciated.

Enjoy!

Hall of Fame QBs (Part 1)

Cam Suarez-Bitar.

Thank you all for reading my blog and for your continued support (by the way, Mr. Bryant, an article on fantasy football will follow our five-week trip through the wonderful world of statistics and the great Pro Football Hall of Fame).

 

Surprisingly, Ken Stabler has yet to be inducted to the Pro Football Hall of Fame.

 

 

Should College Athletes Be Paid?

As private enterprises capitalize on their use of student/athletes as marketing symbols, the question of whether or not they should receive royalties lingers.

Public and private universities are non-profit organizations.  Only about 10 athletic departments in the NCAA actually generate revenue for their respective universities and the rest operate at a loss.  The benefits are that university athletic departments attract national and international attention through the media (“increased brand recognition,” in marketing terms), complement a university’s reputation and prestige, and both enhance and reinforce the student experience.  Meanwhile, there are numerous tangible benefits for a company like Electronic Arts (EA Sports) that profits from its creation of exciting and realistic video games, such as “EA Sports NCAA Football.”

Amateurism in American college sports dates back to the early 19th century and keeps a higher degree of romance in sports.  Today, endorsements and co-branding – among other marketing tactics – have changed the way college athletics function and amateurism is no longer as prevalent as it was 200 years ago.  We certainly cannot argue against the old paradigm that holds that “times change.”  Yet, as cultural norms change, so must the systems that unite the interests of those who make them work.  In this case, the current system that allows the NCAA and companies like EA Sports to develop products featuring the likenesses of student athletes that add marketability and thus generate sales must be adjusted to ensure that no stakeholder – least of all college student/athletes who are in the midst of shaping their seemingly uncertain futures – is left at a relative disadvantage.

(see http://www.google.com/images?hl=en&q=ncaa%20football%20covers&um=1&ie=UTF-8&source=og&sa=N&tab=wi&biw=1200&bih=680 for a long list of examples of how important cover art is to the game’s identity… though some are not official releases, you can see how student/athletes are used to sell games such as EA Sports NCAA Football)

They look exactly like the real players, don't they? (except for the numbers on the jersey nameplates that replace their real names)

The solution – on the surface, at least – is not too complex.  As it stands, the NCAA prohibits student/athletes from receiving consideration of any kind from third parties such as agents, scouts, or others (see the recent Reggie Bush scandal at USC and current investigations of the University of Florida, University of North Carolina, and University of South Carolina by the NCAA for more examples.)  While the student/athlete attends his respective institution, it makes sense for the NCAA and the university to shun a world that has nothing to do either with a formal college education or amateur sports.  A student/athlete’s uncertain future after college, however, is not at all eased by the tiresome job search that follows years of preparation.  Indeed, wallets are usually light after graduation.

Therefore, the NCAA would serve its student/athletes who appear in video games well by allocating a modest percentage of the royalties received from the sale of EA Sports NCAA Football to a trust.  All featured universities would be entitled to an equal share of the trust fund and would disburse their share to former student/athletes who appeared in the game version sold that year and either graduated, or used up their eligibility and are no longer students.  Each athlete would receive an equal amount that they could use as financial support during the job search that follows graduation or separation from the university.  Though final distributions to student/athletes would not be very large, questions regarding the ethicality of use of player likenesses in video games would lead to less controversy since all stakeholders (i.e. the video game distributor, promotional partners, NCAA, universities, and student/athletes) would benefit from the popularity of products like EA Sports NCAA Football.  Even from a marketing standpoint, EA Sports and the NCAA would benefit from aligning the sale of NCAA Football with a greater purpose (an increasingly effective marketing tactic): helping student/athletes who are not offered professional contracts get a head start on life after college.

If such a program existed, it would give me a reason to answer “yes” to the question at hand.  Amateurism ought to

Looks like Tim Tebow, doesn't it?

be respected by sports properties, participants, and brands who contribute to a sport’s existence.  This does not mean that all parties but one involved in a business relationship should profit, though.  The arrangement I propose would not involve giving current or former student/athletes Hummers, houses, or excessive amounts of money; rather, it would grant reasonable and modest financial assistance to the student/athletes who added value to a video game when the time comes to look for a job and make their professional dreams come true.

Conclusion

Number 4 looks like Damien Williams, doesn't he?

Without player likenesses or even random generic characters who resemble the real players in every way but in name, EA Sports NCAA Football would not be nearly as popular nor would it offer the same high quality medium for direct fan engagement that university marketing departments and sponsors/partners like ESPN appreciate.  As lawsuits generate unwanted publicity for the NCAA and developers who create college sports-themed video games, the controversy worsens over a growing crisis in collegiate athletics.

In the August 2-9 2010 issue of Sports Illustrated (p.86-87), former Green Bay Packers offensive lineman Ken Ruettgers talked to writer Phil Bencomo about some of the difficulties in transitioning to a post-NFL career.  It may be inferred that student/athletes face similar challenges after they leave the playing field for the last time.  From a marketing, public relations, and altruistic perspective, it makes sense for the NCAA to create a small trust fund for student/athletes featured in video games that would help with the transition from college to professional life.  Without much financial security, a trust fund set up by the NCAA would go a long way toward helping former student/athletes featured in EA Sports NCAA Football adjust to life after classes and games.

Cam Suarez-Bitar.

One last note on an unrelated topic.  Just a day ago, a pregnant Florida Panther was struck by an automobile in South Florida and recovered by the US Fish and Wildlife Service.  She is being nursed back to health, but her three cubs did not survive.  As a species, the Florida Panther is fading fast, with roughly 80 left in the wild.  Please drive carefully and contact your local authorities if you see an injured animal by the side of the road in need of help.

Thank you for your readership.

Former Green Bay Packer Ken Ruettgers, creator of "Game's Over," a non-profit organization that helps athletes transition from life on the field to new careers.