Bucs' Blackout Fallout

An exciting Bucs opener came and went without most football fans in Tampa Bay realizing what happened. The game was blacked out, even though some insiders speculated the team needed to sell just a few thousand more seats to reach the new 85% threshhold necessary to televise home games.

As I've written before, the NFL's "concessions" to fans were no real concessions at all. And on Saturday, Tampa Tribune columnist Joe Henderson echoed the sentiments, writing "If I were (the Bucs), I would have done whatever was necessary to put this game on local TV....The Bucs continue to grope in the dark, and it's tough to care about something you can't see."

Many fans apparently felt the same way, writing numerous letters to the editor criticizing the league and the team.

One fan claimed "to me, the Bucs don't exist" while another wrote "(i)f the Glazers wish to forgo the exposure of televised games by not buying the difference between 71 percent and 85 percent of the sale of non-premium seats, then they may have to deal with a shrinking fan base."

The next two weeks, fans can watch the Bucs play on the road, but unless Tampa Bay reels off consecutive wins against the Giants and the Cowboys, they're going to have an awful tough time selling Week 4 at home against the Redskins.

Rays, Lightning Score Big in ESPN Rankings Again

In case you missed it, the Rays were once again named pro sports' most affordable team by ESPN.

In the annual "ESPN Ultimate Standings," the Rays ranked 16th overall out of 122 teams (fourth among MLB franchises). They got generally strong ratings across-the-board, but suffered from a poor "stadium experience" rating and lack of long-term success.

The Lightning ranked seventh overall (second in NHL), backed by top-10 performances is the "fan relations," "ownership," and "stadium experience" categories.

ESPN was more generous toward the Lightning than Businessweek was recently when it comes to how the Lightning spend its dollars. ESPN ranked the Bolts 27th in "Bang for the Buck," while Businessweek just ranked the team 76th. Businessweek ranked the Rays first.

The Buccaneers, meanwhile, ranked 97th overall, with the Miami Dolphins Florida's only franchise to fare worse (110th). The Bucs' 2002 title was the only factor preventing the team from suffering below-average ratings in each of ESPN's eight categories, including "stadium experience" and "affordability."

Odds & Ends: Bucs Blackouts, Franchise Values, and Manu Stock

Tampa Bay is getting used to it by now, but the NFL will black out another Bucs season-opener this weekend. Even with the reduced 85% capacity threshhold, the team didn't appear to come close to selling enough tickets.

It's more evidence that the NFL's off-season "concessions" weren't a concession to fans at all. After all, it's not like the NFL was really all that desperate to sell a few thousand more tickets with $9 billion in annual revenue...

It should also come as no surprise that, according to Forbes, every single NFL teams' franchise values held steady or jumped again this year. The top-ranked Cowboys are up to $2.1 billion; the Buccaneers are up a bit to $1.03 billion; and the Vikings, on the heels of a billion-dollar new stadium subsidy, jumped a league-high 22 percent to $975 million.

The Bucs' boost in value, however, won't do much to console fans of the Glazer's other team, Manchester United. Many scooped up the team's stock on the NYSE in July at $14/share, but it has since slipped to around $12.7/share and as the "Sports & Monsters" blog points out, all fans were really buying was worthless souvenirs to hang on their walls.

"Filling the Stadium isn't Nearly as Critical for Teams as it Used to Be"

There are two teams in Tampa Bay right now that are only halfway through their stadium contracts, yet they cannot fill the stands if their lives depended on it.

However, while the Tampa Bay Rays are rumored every other month to be jumping to a new city, there has been no such talk (yet) for the Tampa Bay Buccaneers. Why?

WTSP's Adam Freeman poses that question and arrives at this possible answer:

USF Associate Professor of Sports Management Dr. Mike Mondello says filling the stadium isn't nearly as critical for teams as it used to be.
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"The NFL is in such a great position with their national TV that teams andorganizations, it's almost gravy what they make at the gate," Mondello explained.

And while it's easy to point to the NFL's $9 billion annual revenue figure as evidence, don't forget MLB was turning $7 billion a year before signing a new multi-billion dollar TV deal.

So if the Bucs prove that you don't need to sell tickets to be profitable and MLB is turning record revenues, why are the Rays hinting at relocation while the Bucs aren't?

It's a simple lesson in leverage.

Rays Named "Smartest Spenders" in Sports

This should come as no surprise to Rays fans, but the franchise was named the Businessweek "smartest spender in sports" across MLB, the NBA, the NFL, and the NHL.

Bloomberg's press release follows:

Bloomberg Businessweek’s second annual ranking of the smartest spenders in sports is online now at businessweek.com and in the magazine on newsstands Friday, August 31, 2012. The ranking determines how well the 122 franchises in the NFL, NBA, NHL, and MLB spend their money. Bloomberg Businessweek reporter Ira Boudway compiled the list using regular and post-season records, and publicly available payroll data, to calculate how much teams spent per win over the last five seasons. (For baseball, he also included the first half of the current season.) Every team was then compared against league average to see how well they turn wages into wins, producing a total score called the “efficiency index.” The lower the index the
better.

MLB’s Tampa Bay Rays came in at #1 with an efficiency index of -1.82, followed by #2 MLB’s Texas Rangers; #3 NHL’s Detroit Red Wings; #4 NBA’s Los Angeles Lakers; #5 NBA’s Boston Celtics; #6 NHL’s Pittsburgh Penguins; #7 NFL’s New England Patriots; #8 NFL’s Green Bay Packers; #9 NFL’s New York Giants; and #10 NHL’s Boston Bruins. Dead last on the ranking is NFL’s St. Louis Rams, coming in at #122 with an efficiency index of 4.07. Joining the Rams in the bottom 10 least efficient spenders are #121 NBA’s Minnesota Timberwolves; #120 MLB’s New York Mets; #119 New York Islanders; #118 NHL’s Toronto Maple Leafs; #117 MLB’s Chicago Cubs; #116 NBA’s New York Knicks; #115 NBA’s Brooklyn Nets; #114 NHL’s Winnipeg Jets; and #113 MLB’s Seattle Mariners.

For this year’s ranking, bonuses were added for the victories that matter most: wins above .500, playoff wins, and championships. The scale counts regular season wins once, with a half-win bonus for every win over .500. Playoff wins count for 10 percent of a season; championships for half a season. In their Super Bowl winning season in 2011, for instance, the New York Giants got credit for 9 regular season wins, plus a .5 game bonus for their ninth win—the one that put them above .500. Their 4 playoff wins earned them 6.4 more wins. And the Super Bowl victory 8 more, for total of 23.9 “weighted” wins. At businessweek.com, the rankings are interactive as readers can adjust the weights with their own values, and see how the rankings change. They can also sort the rankings by league.

NOTABLE FINDINGS:
Baseball: Top MLB team is the Tampa Bay Rays (#1); Least efficient is the New York Mets (#120)
Basketball: Top NBA team is the LA Lakers (#4); Least efficient is the Minnesota Timberwolves (#121)
Football: Top NFL team is the New England Patriots (#7); Least efficient is the St. Louis Rams (#122)
Hockey: Top NHL team is the Detroit Red Wings (#3); Least efficient is the New York Islanders(#119)

Boston: The Celtics, Patriots, and Bruins make the top 10, but the Red Sox come in at #70

New York Area: The #9 New York Giants and #14 New Jersey Devils are in the top 15, while the New York Rangers are at #45, New York Jets are at #54, and the New York Yankees are at #98, with the #115 Brooklyn Nets, #116 New York Knicks, #119 New York Islanders, and #120 New York Mets all in the bottom 10

Los Angeles: The City of Angels also has a wide spread, with the Lakers at #4, the Kings at #37, the Anaheim Ducks at #65, the Dodgers at #79, the Clippers at #86, and the Angels at #90

For Tampa Bay fans keeping score at home, the Buccaneers came in just above average at No. 59, while the Lightning were just below average at No. 76.

Odds & Ends: Bucs Blackouts & Glazers' Bucks

On Tuesday, the Tampa Sports Authority unanimously rejected the Bucs' bid to keep $12 million in unused tax funds from going back to local governments. The board ruled the team, which was promised the money for a practice complex back in 1996, lost its right to the funds by not claiming it for 16 years. The Bucs didn't like the decision, but it's a small - and rare - victory for taxpayers over a sports team.

Meanwhile, the Glazers aren't exactly hurting for money after their Manchester United IPO raised something like $200 million without giving up any real voting stake in the club. In fact, they may not mind having billionare George Soros buy up a huge chunk of the stock - with his other Tampa connections, they'll have no trouble talking business at the next Harbour Island barbeque.

Finally, all of the Bucs' preseason blackouts reinforce the point that the league's new 85% blackout threshold was no concession at all. The NFL still sends the message that it would rather make fans buy tickets to see their favorite teams than allow them to watch on TV for free. All the 85% rule does is acknowledge there isn't quite the demand for tickets there used to be.

And team owners, who could always lower the price of tickets, are sending a similar message that they'd rather sell 40,000 tickets at $40/each than 60,000 tickets at $20/each. No concession at all.

Odds & Ends: Dollars & Cents

It's belated, but a tip of the hat to the Glazer family for embracing the NFL's new 85% blackout threshhold. As I wrote before, it was hardly a concession to the fans from the league, but the Glazers made the right choice in making it as easy as possible for their games to be televised, instead of opting for a higher threshhold that might have encouraged a few more fans to buy tickets.

Meanwhile, the family's other team, Manchester United, remains the world's most valuable franchise at $2.23 billion, according to Forbes. Ho-hum. It makes the Bucs' sinking value (now $981 million) an easy pill to swallow.

As for the $12 million Hillsborough County wants back from the Bucs, you won't find any Glazer sympathizers in Daniel Ruth's family.

In baseball-land, the Yankees are the sport's most valuable team ($1.85 billion) and Derek Jeter is one of its richest stars. Which produces little surprise when his new Tampa home is valued at $12.3 million, nearly twice as much as any other home in the city.

Finally, one addition to the Stadium Subsidy post from Tuesday: the Cubbies are getting closer and closer to a little action too. Here's an update, free of opinion (well, my opinion at least).

Glazers' Financials in Spotlight

With Manchester United filing for an IPO in New York, details are being revealed of how the club has loaned money to its owners - and how debt has been paid by the Glazer family. Reuters has a good recap.

But also in interesting Glazer financial news this weekend, Bill Varian reports in the Tampa Bay Times that Hillsborough County is preparing to re-allocate $12 million in tax money set aside for a Buccaneers practice facility:

"It's not the Buccaneers' money," said commission Chairman Ken Hagan, a regular at Bucs games. "It's the taxpayers' money.

"With the increasingly challenging times we have, we cannot afford to leave that money in escrow."

Late last month, commissioners voted unanimously to start the process of taking that money back.

Of course, the Bucs have built something that looks a lot like a first-class practice facility. It opened on Dr. Martin Luther King Jr. Boulevard in 2007 at a price estimated at more than three times the set-aside.
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But it's not the "practice facility" contemplated in the original stadium agreement.

That facility has yet to be built. And documents that called for reimbursement for its construction set no timetable for it to be built. Therefore, the county can't take back the money for the life of the agreement, which runs through 2028.

"We reserve our right to the $12 million allowance in perpetuity," Eric Land, former chief operating officer for the Buccaneers, told the Tampa Bay Times in 2007.

The Bucs didn't make a comment in the story, and it's not clear how tense the discussion would get between the team and the county.

However, any claim to the uncommitted money by the Bucs would seem to reinforce what I've written before: no matter how much revenues drop from tax collections, the money will always be there for sports teams.

To be continued...

NFL Blackout Fallout, Day 2

In watching and reading the local & national news reports on the NFL's new blackout policy, the reactions were predictably upbeat. Even though the facts weren't always spot-on.

As I wrote yesterday, the NFL isn't making any real concessions since it is still threatening fans with blackouts if they don't buy enough tickets; they've merely admitted the high thresholds may be unrealistic in modern-day medium-markets.

And since the Bucs haven't yet said they'd go with the 85% option (because it might cost them money), it certainly is a bit a early for fans to rejoice. But that won't stop media outlets from celebrating!

Last night, FOX 13 in Tampa reported that "Team owners passed a rule that will let games be broadcast, even if just 85 percent of the tickets have been sold." Of course, it failed to mention "if the team chooses the 85% option." But then FOX piled it on:

"If that rule had been in place last year, not one Buccaneer game would have been blacked out."

Not true. As the Tampa Tribune correctly reported, "five of the seven games would have been televised in the Tampa market, with only the home opener on Sept. 11 against Detroit and Sept. 25 against Atlanta (blacked out)." Again, if the Bucs set their threshold to 85%.

To its credit, FOX 13 acknowledged the rules are basically irrelevant in today's modern TV era where the league makes $3 billion annually from the networks. But hopefully the positive reaction is enough to convince the teams and NFL that it's a good idea to make games as easy to watch for their local fans.

Odds & Ends

I tried to get a few different posts up last week to no avail - blame it on life getting in the way. But a few interesting reads on business and sports:

I've studied Hillsborough County's Community Investment Tax (CIT) quite a bit recently, and thank goodness, Trib columnist Joe Henderson put exactly what I was thinking into words: no matter how much revenues drop from tax collections, the money will always be there for Raymond James Stadium. Not that it's a bad thing stadium bonds, agreed to in 1996, will be paid on-time, but when times get tough, it will always be schools, infrastructure, and public services that suffer. Other cities have learned this difficult lesson too.

Also, an interesting read from NY Post columnist Phil Mushnick on announcers gushing over Marlins' attendance when there were tons of empty seats in the best sections. It goes to show how the national media influences the stadium debate. But I'm also getting a lot of questions how the Marlins' inability to sell out every game will affect the Rays' stadium campaign. On one hand, the Marlins have increased attendance dramatically from last year's numbers. But on the other hand, as I've said before, if they can't keep their nightly average above 30,000 in their stadium's inagural season, many in Tampa Bay will ask if the expense is really worth it.

Glazers' Value Soaring

Forbes' estimates that Bucs and Manchester United owner Malcolm Glazer's net worth is now over $3 billion. That represents a tidy $420 million profit on ManU after some initial concerns about how the Glazer family financed the team:

"The increase in value for Manchester United comes partially from its 330 million-person fan base and its victory in the English Premier League last year. It also comes from the fact that the US dollar has fallen sharply versus the British pound. The currency fluctuation as inflated the value of the soccer team in dollars."

So even though the Glazers have plenty of detractors, they've proven some wrong by emerging from some well-publicized debt problems and questions about their finances.It should be noted, they're also spending big bucks on the Bucs this year.

Forbes: Glazers 8th-Worst NFL Owners

The lastest Forbes list dissing Malcom Glazer & fam names them the 8th-worst owners in the NFL. The list "looked at teams’ change in franchise value and win percentages (including a bump for playoff and Super Bowl victories) over the last five years. Each factor accounts for half of their rank."

Forbes cites the Bucs' pedestrian 2% increase in franchise value since 2006 and just 44% winning percentage over that time.

Report: Glazers to Spend Millions on Stadium

Malcom Glazer & family certainly have their critics among Bucs fans, but it appears they're hoping to win some people over by kicking back millions of dollars to the community.

Just not the Tampa Bay community.

Reports out of New Orleans indicate the Glazers will join Saints owner Tom Benson in chipping in for a new stadium for the Tulane Green Wave. Of course, the Glazers should have some extra dough around - they didn't have to pay a dime for Raymond James Stadium.

Then again, realize Tulane U's difficult position - it's not like it can threaten to move to a new city if it doesn't get a new stadium.

Bucs to Honor Selmon; Nobody to Witness it

I had heard this question asked several times this week, but never so elequently as a Tampa Tribune reader did this morning:

The Tampa Bay Buccaneers are planning a tribute to Lee Roy Selmon during the Lions game on Sunday. Unfortunately, the game will most likely be blacked out in the local area, so the only fans who will see or hear the tribute will be those in attendance.

For months now we have heard how football, the National Football League and the Bucs are about the fans. If this is indeed true, I propose the Glazers do the right thing with Lee Roy's tribute and lift the blackout so that every fan in the area can be a part of it.

In the spirit of Lee Roy and giving back to the community, as he did, the Glazers should buy out the remaining tickets so the blackout is lifted, and then donate the tickets to firefighters, police officers and the local military. What better way to honor our first responders on the anniversary of 9/11 than on a day when we also honor one of Tampa's finest, Lee Roy Selmon.

A few years ago, the Glazers would have probably bought out the rest of the tickets. But there's a lot fewer fans than there used to be....and the Bucs aren't worth nearly what they used to be.

Update: Manchester United Seeks Singapore IPO

It was a month ago we saw the first reports from London that the Glazers may take Manchester United public on the Hong Kong Stock Exchange, and today the Wall Street Journal reports the rumor was true...except the IPO will be in Singapore:

U.K. soccer club Manchester United Ltd. is planning to raise around $1 billion from a Singapore initial public offering in the fourth quarter, people familiar with the situation said Tuesday, in the latest foreign listing to tap Asia's funding markets.
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The club, which was once listed on the London Stock Exchange as Manchester United PLC, had initial planned to list in Hong Kong, but changed its mind and has now picked Singapore as a listing venue, the people said.

Singapore has been pushing to position itself as one of the preferred destinations for foreign listings in a bid to compete with Hong Kong, which this year has seen companies such as commodities giant Glencore International AG raise $10 billion ahead of London and Hong Kong listings in May, and Prada SpA, which raised $2.15 billion in June.
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Manchester United was delisted in 2005 after U.S. investor Malcolm Glazer bought the club.

Forbes this year ranked Manchester United as the world's most valuable football team in 2011, valuing the club at $1.86 billion. The club is one of U.K.'s most successful, having been crowned English league champions 19 times and European champions three times in its 133-year history.

Last week, reports indicated the Glazers, who also own the Tampa Bay Buccaneers, would sell off between 15 and 25 percent of the club in its IPO, but a $1 billion offering would appear to be more than a quarter of the club's value.

REPORT: Glazers to Sell Part of Man U

Reports out of London are that the Glazer family, which also owns the Tampa Bay Buccaneers, could sell off between 15 and 25 percent of Manchester United to get out from some of their well-documented debt problems:

Shares in Manchester United are again up for sale.

But the plan to put a stake of the world’s most famous football club back on the market will only strengthen the Glazer family’s grip on power at Old Trafford.

Sunday Mirror Sport understands that United’s reviled American owners are preparing to sell up to a quarter of the club in a move that could raise more than £400million.

That would enable them to slash the £500m debts that are currently costing United £45million-a-year to service.

And the Glazers would then be able to pay themselves – and other new investors – millions in dividends every year.

Investment giants UBS are advising on the sale which is called an Initial Public Offering.

The Glazers are looking to cash in on between 15% and 25% of United.

They value the club at £1.7billion – an astonishing increase on the £800m they paid when purchasing the Reds in an £800m leveraged buy-out that split the club apart in May 2005.

The report, from Sunday Mirror Sport, speculates the Glazers want to retain 75 percent of the club, and thus, full control.

ESPN Ranks Lightning No. 2 Franchise in Sports

ESPN's annual Franchise Rankings pay big props to the Tampa Bay Lightning, the second-best franchise in all the major sports. The Green Bay Packers were No. 1.

The rankings take into account a number of factors, including front-office success, fan relations, and ownership's honesty/loyalty to players and fans. The Lighning notched outstanding ratings in those three categories. Even the team's worst rating, "Stadium Experience," was in the top 25 percent of franchises.

The Tampa Bay Rays were the 25th-ranked franchise of 122, thanks to excellent performance on-the-field and excellent affordability for fans. However, the Tropicana Field experience (111th) and ownership loyalty to player/community (86th) dragged it down.

The Tampa Bay Bucs, 59th of 122 teams, were middle-of-the-pack in most categories. They scored positive points for their recent championship, but were penalized for poor fan relations (104th).

Glazers May Go Public with Man. U

According to The Times in London, The Glazer family, owners of Manchester United and the Tampa Bay Buccaneers, may go public with Man U. on the Hong Kong Stock Exchange.

Marketwatch reports:

English football club Manchester United could have a GBP1.7 billion flotation in Hong Kong as its American owners study the possibility of the club's return to the public markets, the Sunday Times reports.

The report said the Glazer family have held talks with several investment banks on a plan to list the Premier League club on the Hong Kong Stock Exchange. It said advisers believe the strength of the club's brand and its following in Asia could attract a higher price for its shares in Hong Kong than in London.

However, the report also cited sources close to the discussions as saying that plans are still at an early stage and may come to nothing.

It said bankers have told the Florida-based Glazer family that the listing could value the club at GBP1.7 billion, or more than double the GBP790 million they paid for it in 2005 when the club was taken private.

A spokesman for the club couldn't be immediately reached for comment.

Tampa Bay's Front Offices Keeping Busy

Aside from the craziness that surrounds a Lightning playoff run and the tough decisions that come with a battle for first in the AL East, the front offices of Tampa Bay's pro teams are quite busy with a number of non-personnel moves.

First, with the NFL lockout extending into the summer, the Buccaneers announced a four-day furlough for all front-office employees. The team says more are possible if the lockout extends into the fall, but this could actually work out quite well for employees. If the season gets underway in September (as many experts expect), the employees will be reiumbursed for the furlough, meaning four extra vacation days. Additionally, the Bucs say the move helps avoid layoffs.

And the Rays quietly made another committment to the region, giving the Tampa Bay Partnership free ad space on the left field wall at The Trop. The private group, which the Rays are paid members of, promotes business development across Tampa Bay. While the team has been criticized for its lack of marketing around the region in recent years (possibly tied to attendance efforts?), this shows they're still activly courting business partnerships and plan on remaining in the region in the long-term.

Could Glazers Bid on Dodgers?

With the Glazers' liquid assets seemingly stretched thin, this may not be worth the webpage it's printed on.

But with MLB taking over the Los Angeles Dodgers, could it be possible the owners of the Buccaneers make a bid for the franchise like they did in 2004?

Malcolm Glazer lost the franchise to Frank McCourt, who would be making a tidy profit on his $430 million purchase had a messy divorce not ruined his plans.

Back then, Glazer settled for buying Manchester United (not a bad consolation prize other than the fact that they financed the majority of their purchase and now that the interest has come due, the Brits can't wait for him to sell).

Nothing would make fans happier in Old Trafford than if the Glazers sold the soccer team. And sure, MLB would love to have a well-known, reputable family interested in buying the Dodgers. But it probably won't happen if for no other reason than Malcolm is no longer controlling the family's pursestrings.