Monday, October 22, 2012

Office Of Sports Marketing Gives Maryland Huge Boost

The sports-travel industry is a $182 billion business, responsible for bookings of more than 47 million hotel room nights annually in the United States. In the United States alone, 27 percent of all travel is sports-related, and more often involves parties of three or more.

As a result of this thriving industry and in an effort for the state of Maryland to become engaged in this arena, Gov. Martin O'Malley created the Maryland Office of Sports Marketing in 2008. The endeavor is a strategic partnership between the Maryland Stadium Authority and the Department of Business and Economic Development. Its mission is to enhance Maryland's economy, image and quality of life through the attraction, promotion, retention and development of regional, national and international sporting events.

Terry Hasseltine, the former deputy executive director of the Kentucky Sports Authority, leads the initiative. For his previous role, Hasseltine was successful in developing a 24-member community marketing collaborative to promote the state of Kentucky as a sports-travel destination. His accomplishments included bringing the 2008 Ryder Cup and 2010 AllTech FEI World Equestrian Games to the commonwealth.

Appointed in 2008, Hasseltine wasted little time establishing Maryland as a significant player in the sports industry. During the past four years, the Maryland Office of Sports Marketing has engaged in more than $1 billion in event recruitment and secured more than $400 million in economic impact for the state.

"My primary focus is to market and promote Maryland as a sports-event and -travel destination," Hasseltine said.

In May 2009, the office launched its first significant marketing tool with a state-of-the art Web site, MarylandSports.us, which features a searchable sports facility directory. The site's intended audience is sporting- event and -travel industries in the state, national and international markets. Currently, the Office of Sports Marketing is expanding its online efforts, tradeshow presence, marketing and attention to focus on a program known as TEAM Maryland (TEAMMaryland.us).

"TEAM Maryland is a statewide initiative designed to collectively market Maryland to the entire sports-event industry by creating a synergistic approach to the way we market all of Maryland as a sports destination," Hasseltine said. "TEAM Maryland is presently comprised of 13 county partners, but the network of venue/facility, sponsor prospects, corporate support, service providers, media, etc. … continues to grow daily here in Maryland, nationally and internationally."

Under Hasseltine's leadership, the office has been instrumental in leading various bid-development and event-support opportunities. Among the events and initiatives that Hasseltine's office has played a significant role in securing for the area are the Army-Navy Game (2011, '14 and '16); the NCAA men's lacrosse Final Four (2010, '11, '14); 2009 World Football Challenge, in which international soccer powerhouses Chelsea and AC Milan faced off before 72,203 people at M&T Bank Stadium; several key USA Track & Field events; the Atlantic Coast Conference men's soccer championship; and the Grand Prix of Baltimore.

The Maryland Office of Sports Marketing was also successful in bringing one of the world's premier season-long action sports events, the Dew Tour, to Ocean City. Hasseltine said the tour's first stop in 2011, the Pantec Open, set an attendance record, as 73,000 came to the event from July 21-24. According to the SportsBusiness Journal, there were more than 1.3 million viewers for the two days the Ocean City event was broadcast on NBC (July 23 and 24). That represents a 1.3-percent audience spike from the previous year for the overall five stages of the tour.

The event returned to Ocean City in 2012, and the Maryland Office of Sports Marketing reported that the Dew Tour drew the largest attendance on record, with 93,000 spectators. The agency has secured the event for a third consecutive year in Ocean City in 2013.

Tom Noonan is the president and CEO of Visit Baltimore, the official destination development and marketing organization for the Greater Baltimore region. He said that when he came to Baltimore in January 2007, he was surprised to find out that Maryland didn't have a sports commission, and was glad when he heard about the formation of the Maryland Office of Sports Marketing.

"Having Terry and his office has put Baltimore on the sports landscape," Noonan said, "and that didn't exist before. From professional sports to youth sports, Terry is constantly looking at events to bring to our area and build our recognition. From a city standpoint, we are continually looking at ways in which we can help the Office of Sports Marketing become more successful."

Hasseltine said the office was working to solidify a number of additional endeavors that would take place in Maryland.

Hasseltine said having good relationships with the Ravens, Orioles and the MSA was critical to his office's success, and having the assets of the Camden Yards Sports Complex was favorable and vital to its work.

Mike Frenz, executive director of the MSA, said the Maryland Office of Sports Marketing had helped the state profit from the big business of sports, while creating opportunities for citizens and visitors to enjoy new experiences in state-owned facilities.

"Where Terry has been invaluable to the state of Maryland in general and Camden Yards in particular is in identifying events and activities that are good for prospective venues, and helping submit bids to attract them," Frenz said. "Many facility operators around the state are not familiar with the process, especially those involved in youth and amateur sports, a particularly lucrative segment of the tourism market.

"Here at Camden Yards, Terry has been instrumental in big-ticket events, like neutral-site college football. We have Maryland and Navy playing games here in the next five years. … [We are] also welcoming the NCAA's men's lacrosse championship back to Baltimore, where it enjoys great popularity, in 2014."

As the national and global sports landscapes continue to transform, the Maryland Office of Sports Marketing has created a more robust means and developed a communication plan for helping the state become a desirable destination in the sports-event industry.

"We have helped numerous partners around the state grow existing events by helping them gain access to more facilities," Hasseltine said, "and engaging them in conversations with leadership that can make progressive changes to allow more opportunities for success."

There are a number of case studies, best practices and formulas to determine how sports affect the state's economy, but Hasseltine said the simplest way to think about the impact of sports travel was a phrase he often uses to define the measure of sports events on a community: "Heads in beds, food in bellies, gas in cars, credit cards and cash on counters, butts in seats."

Noonan said the Maryland Office of Sports Marketing had benefited the local community.

"We are starting to see more recognizable events," Noonan said. "What's great is to know we have the right person going after those events. ... We have the right guy in Terry as a partner."

October 2012 print edition of PressBox

Tuesday, October 9, 2012

The Dollars And Nonsense Of The NFL's Lockout Of Officials


NFL referees approved a new eight-year deal with the league Sept. 29, by a vote of 112-5, and officially ended a labor dispute that raised the ire of fans, players and coaches. The new agreement between the league and the game officials is the longest in NFL history.




"The long-term future of our game requires that we seek improvement in every area, including officiating," commissioner Roger Goodell said in a statement. "This agreement supports long-term reforms that will make officiating better. The teams, players and fans want and deserve both consistency and quality in officiating."

Both sides made concessions for the sake of getting a deal completed. Under the new agreement, which runs through the 2019 season, game officials' salaries will increase from an average of $149,000 per year in 2011 to $173,000 in 2013, and then rise to $205,000 by the end of the deal. A major issue for both the NFL and the NFL Referees Association was the retirement plan for officials. The current defined pension plan will remain untouched for current referees through the 2016 season, or until an official earns 20 years of service with the league. The defined benefit plan will then be frozen.

Beginning in 2017, retirement benefits will be provided for new hires, as well as existing officials, through a defined contribution arrangement. According to the NFL, that structure is composed of two elements: an annual contribution the league will make on behalf of each game official, starting with an average in excess of $18,000 per official and increasing to more than $23,000 per official in 2019; and a partial match by the NFL on any additional contribution an official makes to his 401(k) account.

Beginning with the 2013 season, the NFL will have the option of hiring a number of officials on a full-time basis to work year-round. The league will also have the option to hire additional officials for training and development purposes and may assign those officials to work NFL games. The NFL will determine the number of extra officials.

Unlike the officials in the other three major leagues in North America -- MLB, the NBA and the NHL -- NFL referees only work part-time. The majority of officials hold positions in full-time jobs. One of the league's most recognizable officials, Ed Hochuli, is a successful trial attorney, while 22-year senior referee Mike Carey owns a ski and snowboarding equipment manufacturer.

Although the contract was not ratified until Sept. 9 at a meeting in Texas, Goodell temporarily lifted the lockout so a veteran NFL officiating crew could work the "Thursday Night Football" game between the Ravens and Cleveland Browns Sept. 27. When that crew took the field at M&T Bank Stadium, the crowd greeted it with a standing ovation.

In an ESPN and Global Strategy poll conducted before the end of the lockout, fans surveyed said the replacement officials had a negative impact on the league's reputation and would impact how much football they watched if the entire season was played with the substitutes.

During games the replacement crews worked, teams appeared to play more aggressively and skirmishes between opposing players occurred more frequently than during previous seasons. The frustration about the replacement officials reached a crescendo when a controversial call on the final play of the "Monday Night Football" game Sept. 24 cost the Green Bay Packers a win against the Seattle Seahawks.

As time expired, Seattle quarterback Russell Wilson threw a Hail Mary pass into the end zone, and both Green Bay safety M.D. Jennings and Seattle wide receiver Golden Tate had their hands on it. One replacement official signaled touchdown, while another called it a touchback. The replacement officials ruled that Tate had caught the pass, resulting in a touchdown and a 14-12 Seattle victory, though replays showed that the ruling should have been in Jennings' favor.

The controversial call dominated not only the sports world, but also mainstream media during the days following the game. Moreover, the call dealt a major credibility blow to the worldwide brand that is the NFL. President Barack Obama and Republican presidential hopeful Mitt Romney even weighed in on the disputed call and the use of replacement officials.

Dave Curley, the senior vice president of the Maryland-based company Sandy Hillman Communications, has overseen media relations for events such as the World Series of Poker and the Grand Prix of Baltimore. He said the NFL brand may have taken a hit, but fans would likely have short memories as the season progresses.

"For a league that prides itself on delivering the world's premier sports entertainment experience -- and that is fiercely protective of its image -- there's no question the use of replacement referees diminished the NFL's standing in the minds of many in the short term," Curley said. "The issue is whether there will be any lasting impact on the NFL's reputation. I tend to doubt it.

"After a few weeks of business as usual, I suspect that debacles such as the one in the Seahawks-Packers game will be largely forgotten. That having been said, ask me the question again if the Packers miss the playoffs or home-field advantage by a single game."

Not only did the debacle during the Seahawks-Packers game affect team records, it also had significant financial ramifications. ESPN sports business reporter Darren Rovell said the call could potentially cost Green Bay around $2 million in postseason revenue if the team failed to host a home playoff game. Additionally, the call caused a seismic shift in the millions of dollars wagered on the game as oddsmakers listed Green Bay as a 3.5-point favorite. If the play had been ruled an interception, the Packers would have covered the spread with a five-point, 12-7 victory.

John Avello, director of the race and sports book at the Wynn in Las Vegas, told ESPN.com that the call shifted more than $150 million in total bets worldwide. Mike Perry of Sportsbook.ag told the Web site he estimated the swing in money to be between $200 million and $250 million.

During a conference call with reporters Sept. 27 to announce the tentative agreement between the NFL and the NFLRA, Goodell said the uproar about the "Monday Night Football" controversy was not connected to the timing of the deal. He said the two sides had been involved in significant negotiations during the previous couple of weeks, but did acknowledge the Seahawks-Packers game may have pushed the parties further along.

Brian Kessler of Pasadena watched the Monday night game with his son and said he thought the outcry about the controversial call was the impetus to end the lockout.

"I have been following football for over 30 years and never seen anything so ridiculous," Kessler said. "When you have guys from the Lingerie Football League officiating NFL games, something bad is just bound to happen. I think the NFL is probably lucky that the team that got screwed by the replacement officials is publicly owned. … If that happened to a team with a private owner, one of their own, I guarantee you the NFL would have been singing a different tune after that game instead of defending those officials."

The NFL announced it would pay the 112 replacement officials for Week Four even though they did not work the games. Replacement referees will receive $3,500, while the other fill-in officials will be paid $3,000.

Originally Posted Oct. 1, 2012 at PressBoxOnline.com