Sport & Story Daily February 21, 2024

Stay Ahead of the Game

February 21, 2024

Good morning! Blink and you missed the latest in college sports—first up, a 12-team playoff model

CFP Unanimously Approves 5+7 Model for New 12-Team Playoff
As ESPN Senior Writer Heather Dinich reports, “The College Football Playoff board of managers unanimously approved a model that will guarantee the five highest-ranked conference champions' inclusion in the expanded 12-team field this fall, along with the next seven highest-ranked teams, the CFP announced Tuesday.

After months of delay at the behest of the dwindling Pac-12, the decision was made Tuesday morning in a virtual meeting of the 10 FBS commissioners and the Notre Dame president, Rev. John Jenkins. The vote had to be unanimous for the 5+7 format to be approved, and the Pac-12 had either previously abstained or asked for a delay as it worked on determining its future following sweeping conference realignment.”
^espn.com

NBA viewership in Local Markets Up Compared to Last Year
As SBJ’s Tom Friend reports, “The NBA champion Nuggets had gained the largest percentage of local viewers this season with a rise of 139%. NBA viewership in local television markets had climbed above last season’s numbers as of the All-Star Break, with execs from Playfly Sports crediting the fall’s In-Season Tournament for galvanizing individual fanbases early in the regular season.”
^{sportsbusinessjournal.com}

U.S. Sports Betting Sets Records in 2023 for Handle, Revenue
As Front Office Sports’ Eric Fisher reports, “The U.S. sports betting industry previously projected 2023 to be the first 12-figure year for total handle. That expectation, as it turned out, was a bit too modest.

The American Gaming Association said the U.S. sports betting business finished with a record $119.8 billion in handle, a whopping 27.8% increase from 2022, blowing past those prior projections of hitting $100 billion for the year, and coming on the heels of a robust, football-driven fourth quarter for the year that easily surpassed the January to September handle growth rate of 22.9%.” 
^{frontofficesports.com}

Hudl, Snap! Partnership Follows Amateur Sports’ Data Revolution
“We see 60 million unregistered fans come to Hudl every year to watch the content,” Hudl SVP and competitive business unit GM Greg Nelson said in an interview. “There’s so much more we can do around connecting them directly to the teams and athletes that they support.”

As Sportico’s Jacob Feldman points out, “The growing tech demands of managing scholastic teams and staying connected with supporters has also brought finances into the equation. The youth sports industry grew by more than 50% to $19 billion from 2010 to 2017, hardly slowing since, and that money must come from somewhere. (For comparison, the NFL made just under $19 billion in 2022.) 
^sportico.com

As CFP Meetings Resume With ESPN TV Deal on Table, the Battle for Control of the Future Rages
As the staff at The Athletic writes, “College football’s future could receive some needed clarity this week. At least, that is the hope of many involved in planning the sport’s much-anticipated expanded postseason.

ESPN has agreed to terms with representatives for the College Football Playoff on a six-year, $7.8 billion extension to televise the event through 2031-32. But the commissioners and the presidents that run the CFP have not yet agreed on any aspects of the format beyond the 12-team model in place for the next two seasons, setting up a pivotal few days of meetings.”
^{theathletic.com}

FuboTV Sues to Block Disney-Fox-WBD Streamer
Sports-centric streaming service FuboTV has sued the media companies behind a new sports-streaming platform scheduled to launch this fall, alleging they "wouldn’t let Fubo carry a small bundle of sports-focused channels that they are now looking to include in the new service."
^{sportsbusinessjournal.com}

Ballmer's Intuit
As SBJ’s Bret McCormick writes, “Clippers’ intense owner dives deep on Intuit Dome’s design aspects, creating both a modern and analog experience for true fans of the game. When the Clippers’ new Intuit Dome opens ahead of the 2024-25 season, it will challenge prevailing sports venue design and fan experience trends.”
^{sportsbusinessjournal.com}

Arizona AD Reed-Francois: Financial Shortfall Not ‘Incredibly Unique’
“I haven’t met very many athletic departments that say, ‘Hey, we’ve got so much money we don’t know what to do with it,'” Reed-Francois told reporters in Tucson. “This is not a problem that’s incredibly unique, but what we have to do is just be very diligent in our approach and very thoughtful. Let’s listen and let’s learn and let’s analyze, put together the best plan and move forward.” She called it an “opportunity to come home.”
^{arizonasports.com}

New Salary Records for Colorado Football Assistant Coaches
As Front Office Sports’ Margaret Fleming writes, “Colorado football assistant coaches are setting a new record this upcoming season, bringing in the highest combined salaries in school history. After making a combined $4.59 million in base and supplemental salary last season, the 10 full-time assistants staffed under Deion Sanders will earn $4.65 million this season, according to BuffZone.”
^{frontofficesports.com}

Skinner Introduces Bill To Bring Transparency To NIL In College Sports
“SB 206 sparked a revolution in the multibillion-dollar industry of college sports. Today, student athletes in every state are finally receiving some compensation for their talent and hard work. That’s great news. But with the growth of collectives and other strategies employed by college sports boosters, these efforts may be primarily benefitting men and once again shortchanging women athletes,” said Sen. Skinner. “SB 906 will shine a light on NIL and give us a better understanding of whether NIL is contributing to gender inequity in college sports.”
^{sd09.senate.ca.gov}

College Athletes Becoming Employees Will Have Consequences
The College Football Playoff (CFP) agreed to a six-year broadcast rights extension with ESPN worth $1.3 billion annually. The new deal cannot be formally signed until the CFP finalizes the details of its expanded postseason format. 

As the John Wall Street blog points out, “That hasn’t stopped a growing cacophony of concerned onlookers from asking when the players would receive a share of the proceeds. There is seemingly a growing belief that steady threats to the amateurism model will eventually result in student-athletes being classified as employees. 

But the bulk of those pushing for change, including athletes at Dartmouth, Lafayette, and Villanova, are focused on what the players ‘deserve.’ Few are considering –or understand– the net costs and consequences that will arise if/when student-athletes are afforded protection under the Fair Labor Standards Act (FLSA).

“That [ruling] can’t just be applied to select athletes at several dozen schools,” one Power Six athletic director said. “It would be for all [athletes at every] school.”

The problem with that is there is a fundamental difference in the value of an athlete participating in an enterprise generating north of $30 million a year in media rights revenue for a given school and those who aren’t; and in the institutions’ ability to pay said athletes.

“Very few [people] recognize there will be repercussions,” the AD said.
^{blog.johnwallstreet.com}

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