Friday, January 16, 2015

Could A Super Bowl Commercial Really Be Worth $10 Million? Suprisingly, Yes. - Forbes.com

http://www.forbes.com/sites/chrissmith/2015/01/16/could-a-super-bowl-commercial-really-be-worth-10-million/

Earlier this week NBC executive announced that NBC has sold 95% of its advertisement inventory for the Super Bowl. A 30 second commercial will cost a company around 4.5 million dollars. This is a 12% increase from what Fox charged last year. NBC said the true value of a 30 second slot is around 10 million dollars; however, that is not the asking price. With 112 million people watching the Super Bowl each year a price tag of 4.5 million dollars is an absolute steal. Social media also helps make these ads more valuable. if someone really like a commercial they can look it up on YouTube and watch it.

10 million dollars is a lot of money to us, but to huge companies that have huge revenues, it is not. If I was in charge of NBC my asking price would be 10 million dollars, because that's the real estimated value. I think companies would pay that too because to them it is barely anything, and they will be getting a huge return from all of the people who watched the commercial.        

Wednesday, January 14, 2015

Sale Of Atlanta Hawks Could Yield Greatest Return In Sports History - Forbes.com

A few months ago Atlanta Hawks owner, Bruce Levenson, put is team up for sale. A group of New York investors bought the Atlanta Hawks for five hundred million dollars. The investment group also bought the operating rights to the Hawk's home stadium. If the group would sales the Hawks right now they would get an estimated 850 million dollars. This has to do with the new TV contracts the Hawks have signed. The Hawks signed a new deal with ABC/ESPN and Time Warner(TNT). A 70% return on their investment is absolutely massive. 

I think the value of the Hawks franchise has a lot to do with how they are doing this season. In previous years the Hawks were a very mediocre team in the NBA. This year they are first in the eastern conference. This results in more people wanting to watch them. Including fans at the games and fans on TV. This is why they signed so many new TV deals. I also think NBA teams are a great investment. The NBA is no where near its peak and I think it will continue to grow and prosper. 

http://www.forbes.com/teams/atlanta-hawks/ 

Friday, December 19, 2014

NFL's Troubles Aren't Expected To Affect Super Bowl Advertising, Pricing -Forbes.com

The Ray Rice and Adrian Peterson domestic abuse scandals had major advertisers like Budweiser concerned but three months later as NBC tries to sell its remaining ad slots for the Feb. 1 edition, ratings and interest in the brand are as strong as ever. Even brands such as Cover Girl or McDonald’s which rely on the support of women or having a family experience may not want to cut ties with the NFL now.

Superbowl ads bring in huge amounts of money for the companies that do them. Just because the NFL had a rough year from a behavioral stand point, that doesn't mean less people are going to not watch the Superbowl. Companies would be stupid to lose out on all of the viewers just because the NFL has a bad reputation. In the end it is all about money. Companies are profit maximizing.

http://www.forbes.com/sites/davidlariviere/2014/12/18/nfls-troubles-arent-expected-to-affect-super-bowl-advertising-pricing/

Rondo-to-Mavs deal nearly finished- ESPN.com

The Boston Celtics have finalized a deal that is sending Rajon Rondo to the Dallas Mavericks. Brandan Wright, Jae Crowder, Jameer Nelson and two draft picks will all be heading to the Dallas Mavericks. Rondo would join Dirk Nowitzki, Monta Ellis, Tyson Chandler and Chandler Parsons in a starting five that is looking to compete for the NBA championship. The Celtics were at the roster maximum of 15 before the trade and will need to part with additional players to absorb three from Dallas.

From a basketball standpoint this is a great move from both teams. The Mavericks improve their team this current year. They got an all-star point guard without having to give a huge player up. Many experts give them a shot to win the Western Conference, including myself. This was also a good move from Bostons position. The Celtics were not going to win with Rondo there. He is a great asset to have but they were still losing. The Celtics good three half decent players and two draft picks that will help them rebuild. This is a good long run move from the Celtics position. 

http://espn.go.com/nba/story/_/id/12048931/rajon-rondo-trade-boston-celtics-dallas-mavericks-course-happen 

Monday, November 24, 2014

Adrian Peterson May Be Suspended, But He's Unlikely To Lose Any Pay - Forbes.com

http://www.forbes.com/sites/darrenheitner/2014/11/18/adrian-peterson-suspension-is-all-about-perception-of-nfl/


The NFL has recently announced that Minnesota Vikings running back Adrian Peterson will be suspended for the remainder of the 2014 season, without pay. Peterson will likely earn his full pay for the entire 2014 NFL. The NFL Players Association (NFLPA) published a statement immediately after the NFL’s announcement of a stern punishment against Peterson. The NFLPA will appeal Peterson's suspension. This is important because Peterson will continue to be paid during the pendency of his appeal.

The NFL will look like they did the right thing by suspending him without pay, but in reality he is still getting paid. Peterson will continue to get paid. Meanwhile, the NFL will look like it took strong action against the running back.

From an economic stand point it was very smart of the NFL to suspend Peterson and "appear" to suspend him without pay. If the NFL appeared to be soft with the punishment there would be a massive response from NFL fans and non NFL fans, and it would not be a good one. Less people would watch the NFL games, attend games, and buy NFL apparel.

Sunday, November 23, 2014

Stanton wanted flexibility for Marlins - ESPN.com

http://espn.go.com/mlb/story/_/id/11897600/giancarlo-stanton-325m-miami-marlins-heavily-backloaded

Giancarlo Stanton has agreed to a 13 year 325 million dollar contract with the Miami Marlins. He has the option to opt out of his contract after 6 years. If he were to do this he would be walking away from 218 million dollars. Stanton still wants to give his team financial flexibility. He would be getting paid 25 million dollars a year every year. Instead Stanton is going to back load is contract. That means he will be getting paid around 9 million dollars his first three years. His last couple of years he will be getting paid more than 25 million dollars a year.

Stanton is getting a guaranteed 107 million dollars his first six seasons. Then he has the option to leave the team. If Stanton feels like the Marlins didn't bring in enough people to build a championship contending team, he will leave. He would be walking away from the majority of his guaranteed money by doing so. 

This was a really smart decision by Stanton. Stanton left himself with a lot of options. Stanton obviously wants to stay with the Marlins after agreeing to back load his contract. Giving the Marlins financial flexibly gives the team a better chance to improve. There is now a good chance of that happening with the money freed up by the back loading.

   


Friday, October 31, 2014

Latest Giants World Series Is Mercifully Nearing An End - Forbes.com

http://www.forbes.com/sites/tomvanriper/2014/10/28/latest-giants-world-series-is-mercifully-nearing-an-end/


Through five games, the 2014 world series have some of the lowest ratings is the history of baseball. This world series is down 5% down from the Giants World Series in 2012. For some reason people do not tune into watch the Giants in the World Series. 2010, 2012, and 2014 all had the Giants playing in the World Series. Those three World Series were the three lowest World Series ratings of all time.

Seven-game World Series’ have been rare in recent years. The most recent one came in 2011 when the Cardinals defeated the Rangers. Before that, the last Series to go the distance was the 2002 match up between the Giants and Anaheim Angles, which did an 11.9 TV ratings. There is no denying that World Series that go to seven games get better TV ratings,

Statistics have shown that baseball has become one of the less popular sports.For one thing the NBA and NFL are becoming more and more popular. The same can not be said about baseball. Don't get wrong, baseball is still a very popular sport, just not as much as it once was. One thing that keeps fans coming to the games is the price of tickets. Because MLB tickets are much cheaper than NBA and NFL tickets (we're talking averages) people are still willing to go.