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The Top News In #Sportsbiz – 09.16.13 – 09.23.13


This week’s top news in the #SportsBiz includes Orlando City Soccer eyeing a spot in Major League Soccer.  Other news includes Fox holding a Super Bowl ad contest, fantasy sports proving to be a viable business, Toyota and NASCAR holding a tweet race, and Manchester United cashing in on sponsorships.  Read on.

Sports Jobs

Orlando City Soccer eyeing MLS

Orlando City SoccerAs Orlando City Soccer looks to make the jump to MLS, locals can look to start eyeing new jobs with the team.  Orlando City Soccer says the move would create 35 new jobs.

Orlando has long been vying for an MLS team.  The Orlando City Lions are looking to do just that by leaving the USL Pro circuit and building a new and qualified stadium.  Creating the new stadium is will cost about $85 million.  With the new site located near the Amway Center, the bill would likely be split between the team, city, and surrounding counties.

With a new stadium in place, the Orlando City Soccer Club will be set to make the jump to the pros.  This will create 35 new front office positions, including communications, marketing, operations and corporate and ticket sales. The jobs would pay an average of $45,485 a year, according to city records.  City spokeswoman Heather Fagan was optimistic:

“An MLS team in Orlando is more than just a new sporting amenity for our residents.  It brings jobs and economic opportunity to Orlando and the entire region.”

Under a state job-creation incentive program, the team’s parent company, Orlando Sports Holdings LLC, would be eligible for $3,000 for each new position it creates. The incentive would total as much as $105,000, based on the company’s estimate of 35 new jobs over the next two years.

An MLS team looks promising not only for soccer fans, but for Orlando and the surrounding communities.

You can read more here.

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Sports Media

Fox contest offers Super Bowl ad spot

Fox Sports Super Bowl XLVIIIOn February 2, 2014, Super Bowl XLVIII will be played.  Airing rights for the big game go to Fox.  In light of the situation, Fox is holding a contest and the prize is a 30 second pre-game ad spot.

Many people watch the Super Bowl, even ones that aren’t interested in the game itself.  There are even people that watch the game just for the commercials, which is a rare thing in today’s world.

It’s safe to say the Super Bowl attracts a large audience, to put it simply.  This is likely the reason that ad spaces for this year’s Super Bowl are nearly sold out, never mind the fact that these 30 second spots are going for about $4 million.

With a pre game spot up for grabs, marketers will be able to participate in the contest by submitting proposed commercials to the Fox Sports Media Group and paying an entry fee of $150,000.  Fans will then get a chance to view the ads on Fox Sports’ Website or Youtube channel.  They will then be asked to vote for the ad that is “most Super Bowl worthy”.

The 30 second pre game spot is said to run at about $850,000.  To promote fan voting, Fox will run an extensive campaign in social media outlets that is scheduled to begin on the first weekend in January. “We’ll be putting a ton of media behind it,” said Neil Mulcahy, executive vice president for sales at the Fox Sports Media Group, a ton being “a few million dollars.”

You can read more on the “social experiment” here.

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Social Media In Sports

Toyota is holding a ‘Tweet Race’

Toyota Tweet RaceIn connection with the Chase for the Sprint Cup, Toyota and NASCAR are teaming up to promote a “Tweet Race”.  What exactly is a Tweet Race?

Throughout the Chase, fans will be enticed to tweet out #TRTR as well as a hashtag consisting of their favorite driver’s name.  Fan’s can then check out to see who is winning the Tweet Race.  A virtual race track will be set up so fans can track the drivers in real-time.

Three participants will be selected to win a weekly prize. Two will come from the pool of the winning driver’s supporters, and the third will be a wild card, awarded to the most creative tweet of the week.  The end of the 10-week Chase will see one grand prize winner receive tickets to the 2014 Daytona 500.  Keith Dahl – Toyota National Motorsports and engagement marketing manager – explains the purpose:

“The Tweet Race is a way for fans to virtually participate in the Chase for the championship, as well as support their favorite Camry driver,”

This promotion is based off of an earlier promo that NASCAR ran with Sprint.  Fans were to tweet their favorite driver’s number with the hashtag #Sprint 60 as many times as possible during the last 30 laps of the Coke Zero 400. The driver with the most tweets won a mini trophy and a $10,000 check toward their favorite charity.

It seems NASCAR has found a way, once again, to incorporate social media into their sport.  It makes sense.

You can read more here.

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Sports Business

Fantasy sports are business friendly

Adrian PetersonFantasy sports are certainly a growing sector in the business world.  Last year, people paid $1.7 billion to participate in fantasy leagues.  The money is there, and a few companies like Fantasy Sports Insurance are capitalizing.

FSI is a new and innovative Disability Insurance policy that protects a fantasy team owners’ investment in their team should a key player(s) suffer a “season changing” injury.  Say you draft Adrian Peterson in a league that cost you $100 to participate in and he goes down for the season.  If you purchased insurance for Peterson before he got injured, you would receive an insurance compensation.

The company paid out more then $15k in losses due to injuries to key players in 2012.  The website includes a list of players that are eligible for insurance.  One of the most popular players to insure this season is Adrian Peterson.

With so much money being thrown around in the fantasy sports world, companies like FSI are finding great ways to capitalize.

About Fantasy Sports Insurance

  • FSI is a new and innovative fantasy insurance product.
  • FSI returns your financial investment in your fantasy league, should your key player(s) suffer a “season changing” Injury.
  • Fantasy Sports Insurance policy is underwritten by an “A” rated insurance company.
  • Re-coup all costs you have incurred in fielding your fantasy team and continue with your season!
  • Lessen the disappointment and aggravation of losing your top fantasy player(s).

You can read more here.

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Sports Sponsorship

Manchester United rakes in profit

Manchester UnitedLast season, Manchester United earned its 20th English League Title.  Perhaps this is part of the reason the team has hit a record revenue level of $540 million.  The Glazer family – American businessmen – places the success on sponsorship deals.

Not only did Manchester Untied float on the New York Stock exchange earlier this year, but sponsorship deals have been through the roof.  A few of their sponsors now include ‘Mr. Potato’ as their official snack-partner, Russian airline Aeroflot is now involved, and US car manufacture Chevrolet who will be the club’s shirt sponsor for next season.  Executive vice chairman Ed Woodward explained:

“We are very proud of our results.  Our commercial business continues to be a very powerful engine of growth enabling the team to continue to be successful. We won our 20th English League title last season and are delighted to have David Moyes lead our football team into a new and exciting chapter. We look forward to a successful 2013-14, both on and off the pitch.”

Merchandising and product licensing has helped the team net $215 million.  In all, that puts commercial revenue up by 30 percent.

Perhaps other soccer teams will take notice of the moves that Man U is making and adjust their own strategies.  Although, not every soccer team sees the success that Manchester United enjoys.

You can read more here.

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