Tuesday, June 19, 2012

NASCAR’S BIGGEST PITCH MAN FINALLY RETURNS TO VICTORY LANE

It took four years and 144 races, but Dale Earnhardt Jr., one of NASCAR's most popular drivers and marketable personalities, won a race.



Earnhardt led 95 of the 200 laps at the Quicken Loans 400 in Michigan June 17, and he held a comfortable 5.468-second lead with just 10 laps remaining. His win on Father's Day came almost four years to the day (June 15, 2008) since his last Sprint Cup Series win, also at Michigan International Speedway.

It's fitting that both of Earnhardt's Michigan wins were on Father's Day, because he is the son of a man many consider the greatest driver ever, seven-time Sprint Cup champion Dale Earnhardt Sr.

Earnhardt Sr. died in 2001 when he crashed during the final lap of the Daytona 500. On that day, Junior -- as he's known now in the NASCAR world -- was given the torch, whether he wanted it or not.

Earnhardt Jr.'s lack of success for so many years had many wondering whether he would ever win another race. His 143 races between wins was the sixth-longest streak in Sprint Cup history. Additionally, 26 different drivers won a Sprint Cup Series race during Junior's winless streak.

Despite his inability to get to the winner's circle during recent years, Earnhardt Jr. has been named NASCAR's Most Popular Driver, as chosen by the fans, for nine consecutive years and was the highest-paid driver for the fourth year in a row.

According to Forbes, Earnhardt earned $28 million in 2011, largely because of the highest licensing income in the sport and an assortment of personal endorsements with companies such as Wrangler, Nationwide Insurance, Chevrolet and AMP Energy. To put that number into perspective, Earnhardt's winnings throughout a 36-race schedule in 2011 were more than $4.1 million, of which he received a 50-percent share.

Award-winning motorsports journalist Liz Clark covered NASCAR for nearly two decades as a reporter for outlets that included USA Today. She said NASCAR was better when Junior was competitive and winning.

"Every sport needs stars and villains, and NASCAR is better when its largest personalities are doing something," said Clarke. "In a sport where drivers are bland naturally or by design so as not to offend anyone, Junior connects authentically with people, as he is natural, speaks his mind and makes no apologies for being himself."

Although he is still the highest-paid driver in NASCAR, Earnhardt Jr.'s earnings in 2011 were down from his income during each of the previous years. Forbes estimated that Earnhardt made $29 million in 2010, slightly less than his 2009 total of $30 million. In 2008, Junior raked in $35 million.

Clarke is also the author of One Helluva Ride, an intense account of how NASCAR swept the nation. While covering the sport, she got to know many of its champions, including the late Earnhardt Sr. Clark said part of Junior's likeability came from the role he was thrust into after his father's passing.

"Junior's popularity cuts along generational lines," Clarke said. "He is someone who has tremendous goodwill among fans, some that he inherited from his father and those he's earned who have been incredibly loyal to him throughout his drought."

In Clarke's opinion, Junior was charged with the burden of helping NASCAR deal with his father's untimely death. She likened his situation to that of John F. Kennedy Jr.

"[Earnhardt Jr.] inherited the role of helping the NASCAR fan base grieve the loss of his dad, while he grieved as well," Clarke said. "Junior handled it with great dignity, and that endeared him to a lot of people. There was no one quite like his dad. … Junior's been great for both groups, old-school fans who followed his father, and the new generation that embraces him."

Junior's popularity extends into the social universe as well. His official Facebook page has more than 1.3 million likes. In comparison, five-time NASCAR Sprint Cup champion Jimmie Johnson has less than half that number.

While he has excelled on Madison Avenue and in merchandise sales, Earnhardt began to turn things around on the track in 2011, as he was one of 12 drivers to qualify for NASCAR's season-ending Chase for the Sprint Cup. It was the first time he had made the Chase since 2008. He finished 2011 ranked seventh in the final standings, his best showing since a fifth-place finish in 2005, when he raced for Dale Earnhardt Inc., the organization his father had started.

Junior left DEI after the 2007 season to sign a five-year deal with Hendrick Motorsports. Earnhardt extended his contract, worth an estimated $10 million annually, with Hendrick in September 2011. The extension reportedly keeps Junior with Hendrick through 2017.

Junior's win June 17 was his 19th Cup victory. He is second in points in the NASCAR Sprint Cup standings, with a series-best 12 finishes in the top 10 during 15 races this season.

Asked after the race about Earnhardt's victory ending his winless streak, reigning Sprint Cup champion Tony
Stewart said, "It's not a national holiday." Stewart is right as it was only one race.  Attendance has been down at many NASCAR tracks around the country, while television ratings are off about 5 percent on average this year, according to the Los Angeles Times.

Dover International Speedway in Dover, Del., has lost roughly 45 percent of its attendance during the past five years. If the reason for lower attendance and TV ratings is less excitement for the sport, more appearances by Junior in victory lane could provide an economic boost NASCAR needs.

Saturday, June 16, 2012

Baltimore Looks To Shine Again As Host For 2016 All-Star Game

Baltimore could again host the Major League Baseball All-Star Game.

Greg Bader, Orioles director of communications, confirmed that the team presented its request this past offseason to the commissioner's office for Oriole Park at Camden Yards to host the 2016 MLB All-Star Game.

Baltimore hosted baseball's Midsummer Classic in 1993, one year after the opening of Oriole Park. The stadium has commonly been referred to as the ballpark that forever changed baseball, because its look and feel have influenced other cities to build stadiums modeled after the design, amenities and geographical positioning of Oriole Park.

Should MLB grant the request, the All-Star Game would take place during Oriole Park's 25th-anniversary season.



Terry Hasseltine, executive director of the Maryland Office of Sports Marketing, said employees from his office and the Maryland Stadium Authority discussed with the Orioles how Maryland residents had interest in bringing the event back.

"We initially talked about 2014, because of the tie to the War of 1812 commemoration and the anniversary of the writing of the Star Spangled Banner," Hasseltine said. "But we learned that year was unavailable and the following year, the game would be played in a National League park."

This season, the All-Star Game will be played at Kauffman Stadium, home of the American League's Kansas City Royals, and the NL's New York Mets will host the 2013 contest at Citi Field. Although the game traditionally rotates between the leagues, there have been exceptions. NL parks hosted back-to-back All-Star Games in Pittsburgh in 2006 and San Francisco in 2007.

Marla Miller, senior vice president of special events for MLB, said commissioner Bud Selig had always liked to rotate the site, but decided to alter that 2006-07 process to help showcase those two teams' new stadiums.

"There are a number of different categories we need to have from both an operational and logistical standpoint," Miller said. "But my office doesn't do anything until we are informed by the commissioner of the cities that have formally submitted interest to MLB."

Miller said the commissioner's office had heard from a number of clubs, but that MLB hadn't made any decisions beyond the 2013 game. Helping the Orioles' case for the 2016 game are the improvements the team made to the stadium before the season.

The renovations feature a new roof deck in center field, with outdoor deck seating, a full-service bar and seats facing the field. Additionally, the wall of the out-of-town scoreboard in right field has been reduced in height to improve views of the game.

Another enhancement is in the bullpen picnic area, where six statues will immortalize legendary Orioles Frank Robinson, Brooks Robinson, Earl Weaver, Jim Palmer, Eddie Murray and Cal Ripken Jr.

"A major factor in these iconic events is the fan experience that supports the activities surrounding the game," Hasseltine said. "There are few places that offer the critical mass of hospitality, culture, history and fun, all within walking distance. Oriole Park easily stands out as a destination spot."

Of the active AL ballparks, there are only three that have never hosted an All-Star Game: Tropicana Field in Florida, Target Field in Minnesota and the new Yankee Stadium in New York. Although the Tampa Bay Rays have never hosted an All-Star Game, they play in a facility that was built in 1990 and is lacking many of the modern amenities of parks across the league. Minnesota did host the All-Star Game in 1985 at the Hubert H. Humphrey Metrodome, but the team began playing in its newly constructed ballpark in 2010, and is currently bidding to host the All-Star Game in 2014. The old Yankee Stadium was the site of the All-Star Game just four seasons ago (the new park opened in 2009).

Baltimore's other AL competition comes from Oakland and Toronto, which have gone more than 20 years without hosting an All-Star Game. The stadiums in those cities, like Tampa, are older venues that don't offer the modern-day amenities of Oriole Park.

"Improvements to Oriole Park would be taken into consideration," Miller said. "Given the sophistication of the game and all things involved with it, renovations and improvements are certainly reviewed."

When a MLB team submits its formal bid to host the game for a particular year, the process is detail-oriented.

"MLB provides the club with an All Star Specification Book that requests information on hotels, convention centers, city services, tickets, size of stadium … all things taken into consideration and reviewed by MLB once the club has made its submission," Miller said. "It also includes a specific breakdown of the operations and logistical needs for the entire time the game would be in the city."

According to Baltimore's Department of Planning, the weeklong festivities surrounding the 1993 All-Star Game generated $31.5 million for the area and its businesses. City officials estimated that the game and related events from July 8-13 that year brought more than 230,000 visitors to Baltimore, who spent an estimated $16.4 million on items from hotel rooms to souvenirs.

Although some have questioned Baltimore's ability to handle the All-Star Game more than two decades later, Hasseltine said the area was more than qualified to meet any requirements.

"A few years ago, as we were preparing information on the city to be a part of the U.S. bid for soccer's World Cup, we developed an impressive list of assets critical to competing for national and international sports events," Hasseltine said. "While the U.S. ultimately was not selected, Baltimore was part of the final package, because it met the stringent requirements necessary to successfully stage an event of that magnitude."

Hasseltine also said he thought Baltimore had a track record for successfully hosting top-tier events through the years. Among the items he cited were the Army-Navy football games (2000 and 2007), Chelsea versus AC Milan soccer match (2009), NCAA men's lacrosse national championships (2003, 2004, 2007, 2010 and 2011) and the Baltimore Grand Prix (2011).

Hotel rooms and convention space are two key items in the MLB All Star Specification Book. Tom Noonan, president/CEO of Visit Baltimore, shares Hasseltine's opinion that Baltimore can accommodate the All-Star Game in relation to hotel and convention space needs.

"There are about 9,000 rooms right now in downtown Baltimore," Noonan said, "all in walking distance to Oriole Park. Not to mention another 4,000-5,000 rooms near [Baltimore/Washington International Thurgood Marshall Airport], plus hotels in surrounding counties and located between Baltimore and D.C. So I don't see there being any problems, as we can clearly accommodate the hotel needs."

Noonan said there were about 6,000 hotel rooms in Baltimore in 1993.

"Obviously we want the game in Baltimore," he said. "It's a major asset from a standpoint of exposure, considering what the All-Star Game brings. The event would probably drive more rooms in two days than what a convention would do over a five- or six-day period."

The All-Star Game includes a weeklong celebration known as FanFest. The convention centers for the last two games (Anaheim, Calif., and Phoenix) are each about three times the size of the Baltimore Convention Center, which is roughly 300,000 square feet. But Noonan said he was confident that the facility could handle the needs of FanFest and other activities throughout the week.

Greg Schwalenberg has been a beer vendor at Orioles homes games since 1979. He has been around for the 20 years of Oriole Park and worked the All-Star Game in 1993.

"I didn't get to see the Home Run Derby or the game, as I was running the stands working," Schwalenberg said, "but there were certainly a lot more unfamiliar faces in my section those nights and there was such a tremendous buzz about the entire event."

As for hosting the All-Star Game in 2016, Schwalenberg said he would be ready ... and so would the city.

"I think the fans of Baltimore would love it," he said. "Fans in general would love Oriole Park, and it would be a win-win for everyone."

Thursday, June 7, 2012

Orioles' Hot Start Is A Win For Local Retailers

When a team puts together 14 consecutive losing seasons, its merchandise isn't typically flying off the shelves of local retailers. In fact, Majestic Athletic, the on-field provider of Major League Baseball, released its list of the top-selling jerseys from 2011 and not one Oriole made that list. To the contrary, a combined seven New York Yankees and Boston Red Sox made the top 20. The company's projections for the top 10 in 2012 did not include an Oriole either.

Of course this was before the Orioles started the season hot. They have been in sole possession of, tied for or within striking distance of first place in the AL East through more than one-third of the season.

In addition to the team's competitive start, the Orioles unveiled a new look for 2012, highlighted by the return of the cartoon bird as the logo on the club's home and road caps, and the introduction of an alternate orange jersey for Saturday home games. The 2012 cartoon bird head is a new design, using elements from both the 1970 and 1983 versions.



Greg Bader, Orioles director of communications, was unable to divulge numbers for the official team stores inside Oriole Park at Camden Yards and the York Galleria in York, Pa., so far this season, but did comment on the up-tick in merchandise sales.

"The popularity of the new cartoon bird has been as the club anticipated," Bader said, "with sales numbers reflecting significant interest in the new mark."

Although the new uniforms and on-field performance won't likely move the needle on Majestic's list, they certainly help local retailers.

Mike Durham and his wife, Jerry, own The Sport Shop, with locations in Harborplace and Towson. Their store at the Inner Harbor has been open 26 years, so they have lived through the ups and downs of the Orioles. This season has been productive at the cash register.

"Between the new logo and the team's hot start, our business is definitely better than it was this time last year," Durham said. "At Harborplace, we are up 15 percent for April and May."

Durham said his store in Towson -- whose clientele is more local than that of the Harborplace shop, which attracts more tourists -- had its best May in 16 years. According to Durham, the introduction of something new, like the new logo, helps business.

"Without question, the most popular sales items for us continue to be the Orioles hat with the new bird logo," Durham said. "Fans have also been very excited about Adam Jones, and we saw an increase in the sales of the center fielder's T-shirt after he signed his contract extension."

Even the larger retail chains are enjoying a spike in sales, thanks to the Orioles' performance so far.

"Looking at the numbers last year as compared to this season, we are absolutely seeing a rise in sales with how the team is playing," said Sheila Morrison, the store manger for Modell's Sporting Goods in Arundel Mills Mall. "It's not necessarily the new logo as much as it is fans seeing a player doing well, so they come in to get that jersey. Anything fans see at the game, they want."

Merchandise also expanded this year from traditional items as the Orioles partnered with the Maryland Motor Vehicle Association to create Orioles-themed, state of Maryland license plates that feature the new cartoon bird. Bader said there had been a tremendous response from fans about the plates, and the number of sales continues to rise.

Sales of MLB-licensed merchandise were up 10 percent in 2011 from the previous season. On April 4, Howard Smith, senior vice president of licensing at MLB, told the Wall Street Journal's MarketWatch that MLB was even more optimistic that sales would continue to increase in 2012 and that the league hadn't had a start like this during the 14 years he had been with MLB.

As part of MLB's revenue sharing agreement, all 30 teams receive an equal portion of the money generated via league merchandise sales. According to The Licensing Letter, an industry newsletter, MLB reported more than $3 billion in retail sales in 2011.

Mike Gibbons is the executive director of the Babe Ruth Birthplace Foundation, owners and operators of the Sports Legends Museum at Camden Yards. His attraction sits directly next to the main gate of Oriole Park. He said he would have liked to see the schedule pan out differently to increase revenue opportunities, but he still thought it had been a good start to the season.

"I don't think the schedule has been favorable for the Orioles or local businesses by having two series against New York and one against Boston so early in the season," Gibbons said. "I think everyone would like to see those games played later in the summer, or at least as weekend games if played in April and May."

"But as the season has progressed, our store at Sports Legends Museum has certainly seen an increase in traffic. One example is the Kansas City series in late May. We had a great turnout during that home stand, doing twice as much in sales as the same time last season."

Gibbons said this was not the case during previous seasons, when the Orioles played teams outside the AL East during a weekend series in May.

"The club's hot start is certainly good for everyone," Gibbons said.

Monday, June 4, 2012

State Moves Into Phase Two Of Study On Proposed Soccer Stadium

At the request of Gov. Martin O'Malley and Mayor Stephanie Rawlings-Blake, the Maryland Stadium Authority voted May 23 on a Memo of Understanding between the MSA and D.C. United to perform the second phase of a study to build a soccer-specific stadium at Westport.

The venue would be part of Turner Development Group's planned revitalization of the Westport waterfront area, located on the Middle Branch of the Patapsco River.

D.C. United is one of the 10 charter clubs of Major League Soccer and has played its home games at RFK Stadium in Washington since the league's first season in 1996.

In a letter to the MSA dated May 11, O'Malley and Rawlings-Blake said they would like to explore further the viability of this project, based on the results of the previous market and economic study Crossroads Consulting performed on behalf of the MSA.

In December 2010, the Baltimore Development Corporation released the findings of that study to determine the feasibility of a professional soccer stadium in Baltimore. The report analyzed the potential success for two possible scenarios, including a 25,000-seat stadium for D.C. United at Westport.

"The first study looked at whether there was a market for the team and what the economic impact would be in terms of revenue for both the city and state," said Mike Frenz, executive director of the MSA. "In phase two, we will look at the estimated hard costs involved in actually building the proposed stadium."

The initial study determined that a relocated stadium in Westport would have approximately 49-54 events a year, including 17 D.C. United games. It projected that total attendance would vary from 584,750 to 695,100 per year, with total annual spending between $65.7 million and $78 million.

The report estimated a creation of 780 to 940 jobs per year, with annual state tax revenues of approximately $3 million-$3.5 million. The study also concluded that the stadium project would generate $2.3 million-$2.8 million annually in city taxes.

The Maryland legislature has committed $175,000 to pay for this next phase of the study, but the Memo of Understanding requires D.C. United to repay that amount to the state should the team relocate somewhere other than Baltimore. According to Frenz, that provision does not have a time deadline. Should the club choose to relocate 20 years from now to somewhere other than Baltimore, it would still be required to reimburse the state for that amount.

Doug Hicks, senior vice president of marketing and communications for D.C. United, wrote in an e-mail that the items the MSA was exploring represented the final phase of the economic feasibility study for a possible stadium in Baltimore.

"These steps are consistent with the process they follow with any major project and in line with previous statements provided by both MSA and D.C. United," Hicks said. "D.C. United continues to explore opportunities for a new stadium in Baltimore and in Washington, D.C., in order to assure the long-term financial viability of the team."

RFK Stadium is a 50-year-old facility and D.C. United has been reviewing its options for a potential new deal in an updated venue, either in D.C. or another location. Last season, the team signed a two-year lease to remain at RFK Stadium through 2013.

According to March article in Sporting News, the deal afforded both the team and District of Columbia officials "additional time to search for a more permanent home for the league's most decorated club." D.C. United has won the MLS Cup a record four times, while appearing in five league championship matches.

In the Memo of Understanding, D.C. United has agreed to complete 5-percent architectural and engineering plans for the proposed stadium. D.C. United has engaged Dallas-based architectural firm HKS Inc. for the design. The firm's Web site lists Cowboys Stadium, Dodger Stadium and Liverpool Football Club Stadium among projects in its sports portfolio.

Joseph Oakton of Bel Air has played soccer his entire life and said he supports any efforts that could lead to D.C. United playing in Baltimore.

"As an avid soccer fan, I think it would be exciting to have a MLS team playing in Baltimore," Oakton said. "I enjoy the United, but traveling to D.C. is just too inconvenient. But if they were to relocate to Baltimore, I would absolutely go to more of their games."

Later this summer, teams from Barclay's Premier League in England will play at M&T Bank Stadium when Tottenham Hotspur and Liverpool square off on July 28. The game will mark the third time in four years that Baltimore has hosted soccer fixtures featuring elite European teams.

Posted May 28, 2012 on PressBoxonline.com

Andretti Sports Marketing Takes Wheel Of Grand Prix

Published on May 22, 2012 at PressBoxonline.com

Last week, Sports Business Report examined the Baltimore city Board of Estimates’ approval of the contract for Race On LLC and Andretti Sports Marketing to organize the Grand Prix of Baltimore. This week, the focus is on how Andretti Sports Marketing became involved, as well as its plan for 2012.

Can the Andretti name and reputation make it possible for cars again to race the streets of downtown Baltimore during Labor Day weekend? City officials and Race On LLC are hoping it will do just that.

"This has been a difficult process," Mayor Stephanie Rawlings-Blake said, "but Race On and Andretti Sports Marketing have what it takes to move forward and make this world-class sporting event successful for Baltimore."

Race On is a Maryland-based company led by J.P. Grant and Greg O'Neill. They retained Andretti Sports Marketing, a firm led by retired race car driver Michael Andretti, to run all commercial and operational aspects of the Grand Prix. 

John Lopes, president of Andretti Sports Marketing, said negotiation with Baltimore city officials was an eye-opener, because talks were much more involved than city officials in other races the group has organized. Lopes said he thought city officials had gradually developed a comfort level with his team once they learned how Andretti Sports Marketing had successfully turned other races around.

"Everyone involved had to make compromises to make this best for the city," Lopes said. "We spent many sleepless nights reviewing budgets, agreements, etc. J.P. and Greg have invested a lot of money and our job is to get a return on their investment."

Lopes said O'Neill initially contacted Andretti Motor Sports in January, but he opted not to get involved at that time because of the confusion surrounding the race. A few months later, someone recommended Andretti Sports Marketing to Grant when he was seeking the contract from the city. According to Lopes, Grant's first conversation with Andretti wasn't until the last week of April.

"After several conversations, the two finally met and spent a great deal of time looking at the event before deciding to work together," Lopes said. "We then connected Grant and O'Neill, bringing together the two principals in Race On."

Lopes said Andretti Motor Sports had a lot riding on the Grand Prix because of its brand, but he thought it could work. Street races are a distinguishing coup for IndyCar and Baltimore is a key market.



"The biggest positive we noticed in evaluating last year's event is that this place sells tickets like no other race I've seen," Lopes said. "So this could be even bigger and better, especially as Baltimore offers a unique location for this type of event."

The Andretti Motor Sports résumé includes resurrecting race events in Toronto, Milwaukee and St. Petersburg, Fla. Unlike other race organizers, Andretti Motor Sports brings a wealth of racing knowledge to the event, starting with racing royalty in Andretti.

The group also hired Kevin Healy as the event's managing director. Healy, a former AirTran Airways senior vice president of marketing and planning, is also managing director of the Milwaukee IndyFest.
Terry Hasseltine, executive director of the Maryland Office of Sports Marketing, said he saw the strengths that Andretti and his team would bring to the event.

"I think the Andretti name is synonymous with IRL racing and brings instant credibility and management leadership to the Grand Prix of Baltimore," Hasseltine said. "In addition, the Andretti team has hit the ground running with a strategy to put tickets on sale by month's end while engaging key event stakeholders locally as well as around the U.S. to help position the event for success this Labor Day."

Although it may have been a long process for city officials, who terminated contracts with two different companies within a five-month span, it has been a fast-paced process for Andretti Sports Marketing and Race On.

During just 10 days, they accomplished what couldn't be achieved during a period of several months. The new organizers:
• Secured a city agreement
• Put together stable financing with Race On
• Reached sanctioning agreements with both the IZOD IndyCar and American Le Mans Series
• Introduced a new name, logo and Web site
• Established a date for tickets to go on sale.

In addition, Lopes and his team spent two days walking the circuit. They have hired NZR Consulting to build the 2012 track and have held discussions with municipal engineers about improvements to the course.

"We wanted to see how we could improve sight lines," Lopes said, "and make any other adjustments to help maximize the customer experience."
According to Mike Frenz, executive director of the Maryland Stadium Authority, the group also has met with his office about leasing areas of the Camden Yard Sports Complex.

"We thought last year's event was successful as it provided a lot of economic development opportunities and tax revenue for both the city and the state," Frenz said. "We believe this event is worth pursuing and are here to help support the new organizers in respect to what they need from us."

Although there isn't a significant amount of risk for the MSA, financial issues with last year's organizers will require Race On to pay the MSA in advance for the use of property at Camden Yards.

The new organizers have adopted "Race On Baltimore" as their mantra and are building a campaign around that slogan. In addition to its Web site, RaceOnBaltimore.com, the group purchased about 40 different URLs that will direct people to that Web site. It also plans to activate an advertising plan in late July or early August after researching the inventory in the market.

"We will have an outdoor, digital, radio, TV and print media purchasing plan that will be back-loaded for the last three weeks leading up to the event," Lopes said. "All of this will complement our ongoing PR efforts."

Andretti Sports Marketing works in collaboration with agencies from MDC Partners and will use those resources for marketing, PR, hospitality and other services. Lopes said the company's eventual goal was to have a local staff running the race, but timing required bringing his team in for year one.

Segments of the downtown business sector felt alienated by last year's event. Therefore, it's important to the new organizers to get input from the community.

"Ultimately, the way you make a fan is one at a time," Lopes said. "We need to meet the local people and show them that we want them to be a part of this event and benefit from the race."

Tickets for the 2012 Grand Prix of Baltimore go on sale May 28. Visit RaceOnBaltimore.com for details.