Sports Contract Disputes

Joe Flacco contract controversy.

Joe Flacco is coming off a career year in which he became the Baltimore Ravens’ all-time leading passer but the Season ended on a bad note (see video) and the Baltimore Ravens have publicly stated that Flacco will not receive a contract extension this year.

 

Flacco was the Raven’s 1st round draft pick in 2008 and is still has two years remaining on his rookie contract. He has surpassed all of the expectations and truly out performed his contract. However, Flacco remains frustrated that talks on a new contract have not begun; mainly because the NFL lockout has had prohibited contact between the teams and their players during this offseason. Flacco became even more disgruntled when Quarterback coach Jim Zorn was fired earlier this year. "I'm kind of taking it personal," Flacco said. "You're saying that you're not happy with the position. I'm not sure if there is any truth to that, but that's the vibe you're sending to your quarterback. I feel like I'm being attacked."

But it only gets worse for Flacco who is thought to be worried that his new deal is not even a priority for the team. The Ravens recently selected QB Tyrod Taylor in the NFL draft and it is expected that when the lockout ends the Ravens will be scrambling to re-sign players with less than two years left on their contracts. Also, All-Pro defensive tackle Haloti Ngata is due a contract extension before Flacco and is considered by many to be a higher priority. I’d love to see how this one plays out.

http://articles.baltimoresun.com/2011-04-26/sports/bal-sportsblitz-ravens-flacco0426_1_joe-flacco-ravens-quarterback-nfl-lockout


Albert Pujols Contract Negotiation.


It has been reported that Albert Pujols is seeking a 10-year, $300 million contract extension. This would be the largest contract in MLB history. Yes, even larger that the infamous 10-year, $275 million contract that Alex Rodriguez received in 2008. Albert still has one year left on his current contract. However, after this season he is set to become a free agent. Albert has been adamant about not negotiating during the season so as not to be a distraction to the team. And now that the new season is under way all signs indicate that the negotiations between Pujols and the Cardinals have indeed ceased. The Cardinals are still considered the front runner to re-sign Pujols since the Yankees and the Red Sox will not be participating in the Albert Pujols sweepstakes, But only time will tell…


Sources:


http://sports.espn.go.com/mlb/hotstove10/columns/story?columnist=stark_jayson&id=6056760


http://sportsillustrated.cnn.com/2011/writers/jon_heyman/05/04/albert.pujols/

Trademark Controversy in Sports

For years the Spanish speaking community has been pronouncing the Los Angeles baseball team The Dodgers as “Los Doyers.” The mispronunciation turned nickname has gained massive popularity and found its way on to many hats, bandannas and t-shirts in the Los Angeles area.

Products carrying the Los Doyers emblem have been sold exclusively by local street venders and merchandisers until, in August of 2010, the Los Angeles Dodgers, LLC filed two applications for trademark of the mark Los Doyers. The Dodgers subsequently began sending out cease and desist letters to retailers of the merchandise who had been enjoying healthy profits form the sale of Los Doyers merchandise.

View more videos at: http://nbclosangeles.com.

Another similar situation resulted from the rise in popularity of the New Orleans Saints. When the Saints won the NFL’s Super Bowl in 2010, the phrase became even more popular and a controversy arose over who had the rights to ‘Who Dat’.

The phrase came from a chant – “Who dat say they gon beat the Saints” – and has been a mainstay at the Superdome since the 1980’s. Two brothers and longtime Saints fans claim they own the only federal trademark of the phrase and are also the owners of WhoDat Inc. Many credit the 1983 song titled Who Dat with creation of the popular name but its use has been traced back to the minstrel shows of the 1930's.

Despite the fan backlash and the unknown origins of the phrase, the NFL has implemented an aggressive cease and desist campaign claiming they own the rights to the trademark.




Related Blog posts:

LAList
http://laist.com/2010/09/09/dodgers_make_a_play_for_los_doyers.php

LA times blog:
http://latimesblogs.latimes.com/dodgers/2010/09/there-may-be-money-to-be-made-on-los-doyers-but-theyre-still-a-mediocre-team.html

NFLPA Social Media Analysis

NFLPA Social Media Analysis from SNF Entertainment on Vimeo.

Biggest Sports Stories

Two of the biggest stories of the past decade in sports were baseballs performance enhancing drug scandal and Adidas’ buying of Reebok for $3.8 billion. The drug scandal has dominated headlines while the big Reebok deal may have slipped past some consumers. However, both have had a profound impact on sports and the businesses behind them.

According to a 2005 ESPN Article, 52% of fans still believe that Barry Bonds should still deserved to be in the Hall of Fame. The Scandal continues to grab headlines as Barry Bonds’ perjury trial is currently taking place. As mentioned in the above CNBC video, while the game’s biggest names were involved in the scandal and the MLB received a black eye but business continued to thrive.

Unlike the MLB’s scandal, the Reebok/Adidas deal has turned out to be very bad for business. The deal was originally intended to increase the market share of Adidas and better challenge the industry’s biggest competitor. Initially, US shares of the company stock rose 30 percent upon the announcement of the deal. However, since then the deal has been a disaster. According to the CNBC article, both of the brands were made weaker. Before the deal Adidas and Reebok had 10 and 8 percent market share respectively. Since the deal their Adidas market share has dwindled to 6 percent and Reebok’s share is down to about 2 percent.

The situation for Reebok continues to worsen as reports surface that Reebok may lose its contract with the NFL (National Football League). The NFL is rumored to be negotiating a deal with Nike for the 2012 season that may leave Reebok out in the cold. A 2010 Bloomberg article quoted Citigroup analyst Kate McShane who stated in investor notes that, “Reebok’s NFL contract represents about $350 million of its $565 million in U.S. apparel revenues.” Needless to say, this would further devastate the business and slash revenues.

Sports are big business and they are only getting bigger. The behind the scenes business deals of sports will surely continue to affect the sports industry for better or worse.

The BET panel at SXSW

I had the pleasure of visiting Austin, TX for the 25^th anniversary celebration of the SXSW conference.  While at the conference, I was able to attend several very informative panels.   

On Thursday March 17, I attended the BET sponsored “Baby Im A Star!” The panel featured several industry leaders including Stephen Hill (President of Music programming at BET), Troy Carter (Lady Gaga’s manager), L. Londell McMillan (Prominent entertainment lawyer and publisher of The Source Magazine) and artists Melanie Fiona and J. Cole.  The panel, moderated by Kelly Griffin (BET Networks), was an interactive discussion of how to get major exposure in a multi-platform music environment. 

After the panel I was able to talk to a couple of the panelists about negotiating in the current music industry climate.  Here’s what they had to say:

On the topic of affiliation, McMillan says Relationships matter.  In order to negotiate a position as a star, you must understand the value of relationships.  The prevalence of search engine tools on the Internet means that the cream doesn’t always rise to the top.  Forming key relationships will ensure that the product is reaching the target audience.

 

When asked about her role in the industry Melanie Fiona explained that she has had to deal with stereotypes and issues concerning her image in the industry.  She was often prompted to use her sexuality to enhance her career but she remained true to herself.  She cited Sade as an example of being sexy without being sexually overt.  This is also closely related to the issue of autonomy.  She had to negotiate a position where her thoughts and ideas were respected.  This is why she was able to make her own decisions with regard to her image and her career.

 Troy Carter had some interesting things to say about leverage.  He explained that he doesn’t listen to anything and by the time someone surfaces on his radar, they have gained the approval of many fans and industry executives.  Artists are far better off perfecting their crafts and developing their talents to the point where they are ready to be presented to the public.  “Fortunately Gaga came to me with the fishnet stockings and hit singles in hand.” Troy said.  Being a complete artist gives leverage in negotiations between artist and company.

J. Cole also advised that artists not wait for big companies to notice them and make them stars.  Instead he suggests that they should build up their presence until the companies are forced to come talk to you.  It is possible to create interest and a healthy buzz without the backing of a major company.

The Future of Media: Handheld tablet devices and online music services.

This article highlights two significant technology trends that will have a profound impact on the industry. Google’s plans to release new Android tablet that's launching with the Motorola Xoom and a music service are telling of what the future has to hold.

Google music coming with honeycomb

This article shows Apple’s intentions on the manufacture of its signature tablet the iPad. According to the article, they plan to ship over 40 million iPads this year.

Apple buys 60% of the world's touch panel supply

This article denies the notion of Sony withdrawing from Apple’s iTunes distribution channel and possibly becoming a competitor. However, the notion and the rumors are very intriguing. 

 Sony Exec: We Are Not Abandoning iTunes

Steve Stoute: Marketing and Brand Management

INFLUENCERS in-depth Series / STEVE STOUTE from R+I creative on Vimeo.

In this video Steve Stoute provides us with some important insights on what makes people and things cool as well as some of the strategies that he has used in his business Translation marketing (a company that arranges strategic partnerships between Pop Culture icons - Jay-Z, Gwen Stefani, Lebron James, Justin Timberlake, etc. - and Fortune 500 companies.) He also touches on some successful and unsuccessful marketing strategies and the reasons why they either work or do not work. He goes on to explain the effect that the demise of the record industry has had on the marketing and advertising industries. "We must ultimately identify what success looks like and effectively manage the route to success."