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headlineswpe71.jpg (15303 bytes)nostalgia and memorabilia

October 2006 Edition


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headlines PE03257A.gif (4096 bytes)

wpe73.jpg (6828 bytes)As the race to win this year's Formula One World Championship reaches a final cliff-hanger in Brazil, Michael Schumacher is considering launching a £300 million charity after he announces his retirement from motor racing. He already has a reputation for generosity and was the largest private donor to the Asian Tsunami Appeal. He also works tirelessly for UNESCO. wpe73.jpg (6828 bytes) Despite a devastating defeat at the Ryder Cup, the USA team players have not failed in their generosity. Generous in defeat, the whole team is also generous in their donations to charity.  Members of the Ryder Cup Team will again distribute over US$2.5 million to charities under an agreement reached with the Professional Golfer's Association of America. Each member plus the captain has contributed US$100,000 to a school/university of their choice plus a similar amount to a charity of their choice. wpe73.jpg (6828 bytes) The jersey worn by the late George Best when he scored six goals during the Manchester United vs, Nottingham game in 1970 was sold at auction at Christies for a staggering US$45,000.   This figure pales in comparison to the US$300,000 approx. paid for Brazilian legend Pele's jersey from the 1970 World Cup Final.  So never throw away those items of memorabilia....  wpe73.jpg (6828 bytes) A contest to transport the famous cricket Ashes urn from London to Australia has been won by Virgin Atlantic.  One lucky urn will be travelling by limo to the plane and then it will be seated in Upper Class. 
Good luck to the person sitting next to "URN" as the urn will be spending 24 hours in quarantine after landing back in Australia.  All good fun and games!wpe73.jpg (6828 bytes)

spotlight on: the Paralympic Paradox

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ShortsandSports has joined forces with PanStadia magazine to undertake research into how best to market Paralympic sports.  If you work in any aspect of the sports industry: from construction of venues to participating in elite events; from manufacturing prosthetics to marketing the events to the sports press, we would welcome your participation in the survey by clicking on the link: 
Paralympic
Paradox
wpe73.jpg (6828 bytes)The Russian Paralympic Movement acts as a surprising good role model for the movement. Twenty thousand Russians participate in paralympic sport, ably assisted by 1,200 sports organizations for athletes with disabilities.
Since 2000, the Government's financing of events in support of the Paralympic Movement has increased seven-fold; and the investment has already paid off. The Russian team came first in the medal table at the Torino 2006 Paralympic Winter Games, with 33 medals, 13 of which were gold.
hot spot: the BetonSports legacy BS00825A.gif (3117 bytes)

At the end of September we find the beginning of the international fallout from USA legislation in response to online gambling and breach of the Wire Act.  In France, reaction has led to a unanimous decision by the Le Conseil d'Administration de la LFP to bring an end to all publicity/advertising of betting organizations by 'les clubs professionnels de Ligue 1 et de Ligue 2' effective immediately.wpe52A.jpg (2926 bytes) Similarly, a German court has ruled that Werder Bremen has to remove the logo of its main sponsor 'bwin' from the players' shirts and stadium billboards. The Bundesliga club said that it would appeal against the ruling and play its next home game with the logo 'we win' on the players' shirts on the basis that although some German states prohibit advertising for private betting companies, there are no federal laws in place. 
This is early days in a new world of litigation when players of all kinds and with any level of involvement in online gambling do run the risk of breaking the law and in doing may also incur the very severe consequences.

hot shot: the TV investigative doc

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The world of football (soccer) continues to suffer the scrutiny of investigative journalism: TV at its best, when programmes such as Panorama go undercover to search out the key players in the world of 'bungs'. 
In case you do not already know: bungs is the term used to describe the buying and selling of players but instead of using the correct channels, an 'unofficial process' is allegedly undertaken by a handful of agents in cooperation with a handful of allegedly corrupt team managers.
Perhaps the status of these transactions can be described in terms of the world of illegal prostitution. Legalize it and the corruption effectively disappears.
If the buying and selling window was less regulated the term 'bungs' might be removed from our vocabulary.
wpe73.jpg (6828 bytes) By the very nature of this high profile, big bucks industry, a 'change of policy' may not completely clean up soccer's act; but at least it will open its doors to public scrutiny rather than the sole domain of the undercover investigative journalist.
BBC's Panorama blew the lid off the world of bungs; but despite a prospective investigation, will anybody be found guilty and penalized to such an extent that others will be deterred?  Especially in a context where even when the deal is done legitimately, there is still the opportunity to muddy the waters.
For example: William Gallas has threatened to sue Chelsea Football Club after Chelsea alledged that he threatened to score an own goal if they did not allow his move to Arsenal.  And this was all aired to the public five days after his transfer.
Why anyone would want to keep a disgruntles employee is a mystery to most of us; and does little to comfort those in British Football who want to see the clean-up of the beautiful game. 


sidelines
wpe10.jpg (9902 bytes) a sound investment

Remember the restructuring of Formula One - a time when Bernie Ecclestone seemingly relinquished some control of the most profitable of sports with a financial restructure which included a major investment from London-based private equity firm, CVC.   Surprise, surprise, the investment paid off! 
The organization - which had not paid a dividend since 1999 - had built up a substantial reserve, probably close to the USD 1 billion. And according to the latest Formula One Administration results (FOA - the rights hold and key cash generating entity behind the sport), the 2004 accounts show a profit of US$281 million on a turnover of just over US$700 million.   And with an outstanding bond now fully paid up, CVC is at liberty to declare a dividend which may realize the full USD 1 billion;  which also happens to be around the level of its recent equity investment in F1.
With a strategy of making investments which generate an internal rate of return of between 21% and 45% - if the price is right and the sport continues to achieve high levels of profitability - CVC may elect to take out a second bond which will be dependent upon securing commercial agreement with eleven F1 teams beyond 2008.  Not an easy target to achieve but certainly within the realms of possibility.


fashion icon
...... the GM Games

London 2012 has declared itself as the first 'GM Games' with the potential for athletes to use genetic doping in an attempt to improve their performance. To combat these developments in designer drugs, Olympic organizers are injecting new funds into drugs' testing, as the science of developing 'fashionable' new drugs races ahead of the game itself.
The IOC has increased its testing budget by US$4 million, half of which has been earmarked for laboratories developing a test for genetic doping.  And it is because of the difficulty in detection and the risk of serious health problems that senior executives are so concerned. 
While it may be good for the science world as it attracts investment from the likes of the IOC, it is the responsibility of the organizers to get their message across to the athletes and their management - which is the flip side of the science element of the equation.
To reinforce that commitment Jacques Rogge, President of the International Olympic Committee (IOC), has recently visited Russia (historically one of the major culprits of taking illegal performance enhancing drugs) as part of his "around the world" tour to meet with world leaders and discuss the role of sport in society.

home and away   ball tampering

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The very complex world of cricket and the high profile debate over ball tampering continues to keep the sport under the spotlight. Earlier this year, the Pakistan Cricket team refused to complete an international match after being accused of ball-tampering. The match in question took place against England when the Pakistan team were playing away at the Oval in London.   Zaheer Abbas - the team's tour manager at that time has already resigned after he failed to ensure that his team completed the match in the light of accusations from Umpire Darrell Hair.  Hair also looked as if he might fall victim to 'a sport in disarray' when he offered to resign for the sum of $500,000.  The lawyers picked up some fees; Hair withdrew his offer and the ICC announce that Hair would officiate in Pakistan's opening match of the Champions Trophy. The more recent resignation of Shaharyar Khan - President of the Pakistan Cricket Board - is an indication of the serious nature of the whole 'incident' and that it may return to haunt the game. 

wpe73.jpg (6828 bytes)No doubt all eyes will remain on the cricket and the upcoming World Cup in the Caribbean.   And just like any other sport, all eyes will be on the organizers who are meeting all the usual criteria of being behind in the their timetable to complete the stadia and new infrastructure in a timely fashion.  And if there is another 'incident', similar to The Oval debacle, the teams should take note that the ultimate cricket sin is not to 'cheat' but to breach their contact and not complete a match. 
And despite the incredulous turn of events, the root of the problem has not yet been resolved.  While it is the gentlemen's rule of thumb that the umpire's decision is accepted in the absence of anyone 'umpiring the umpire', these antiquated traditions may soon prove unacceptable in a time of modern technology when high-speed replays, mobile phones and Hawkeye equipment RULE!


sport culture:
football - spelt like soccer

Surprising to some, football (soccer) is the largest recreation sport in the USA.  Yes. If you thought it was American Football or Baseball you are wrong!   Coincidentally football is not the largest recreational sport in the UK.  It's fishing.
So just how big is the game of football in the US?

As many as 162 teams - from amateur teams to Major League Soccer - take part in the U.S. Open Cup soccer tournament.  The knock-out tournament began in 1914 and MLS have been part of the competition for the last eleven years.  All 12 MLS teams participate and are given byes until the later rounds.  The most successful US city in the competition has been Chicago (the windy city) and their local team "The Fire" which won the grand prize in 1998, 2000 and 2003. This year's recipient of the Dewar Trophy received prize money of $100,000 and the runner claimed a US$50,000 pay check.  A small amount by some standards but probably much in line with the highest prize for the best catch in the UK (a reference to fishing).

starting blocks starting over

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Starting over can often be difficult; but for the reopening of the Superdome in New Orleans, (more than a year after the almost destruction of the city) it was a party and celebration; and yet another indication of 'back to normal' - or almost! A nearly perfect first half was the ideal new beginning for the home team.  A sold-out crowd roared their support as the New Orleans Saints returned to the Louisiana Superdome.   The 23-3 win against the Atlanta Falcons was more than just a football game; it was a homecoming and a new start for the badly damaged stadium which was just one of the many casualties of Hurricane Katrina.  Former NFL Commissioner, Paul Tagliabue spearheaded the renovations at a total cost of US$185 million.  The NFL donated US$15 million towards the cost alongside the US$118 million contribution from the Federal Emergency Management Agency (FEMA).
The gold and black local team colors were everywhere to be seen in the Big Easy on September 15, 2006.  The pre-game concert was a morale booster and an emotional moment for the many who had chosen to return to their damaged city; and the crowd went wild as U2 and Green Day sang 'The Saints Are Coming'. The symbolic re-opening of the home-town stadium was surely a reinforcement of the view that a stadium is much more than just bricks and mortar, and a good omen as New Orleans continues to strive towards its return to normality.
life after..... ageismBS00044A.gif (2229 bytes)

Life after doesn't always start when you retire from your chosen sport.  UK professional soccer players can 'hit the wall' while they are still performing at their peak as leading English Premier Clubs are no longer prepared to offer some of their over 30 year-olds more than just a one year contract.  New ageism employment laws in the UK have put these business practices under scrutiny; and the sports industry had better take heed, as the law often reflects loss. 
Denying the 'right' contract to a well known player such as Thierry Henry (Arsenal) who collects around US$10 million a year; Rio Ferdinand (Manchester United) taking home US$9 million approx; and Chelsea player Andrei Shevchenko with a take-home pay of around the US 14 million mark might prove to be a very expensive 'mistake'. Add onto that amount those sponsor deals which often run alongside a contract, and litigation could lead to even more substantial compensation. 
While the lawyers go down on their knees to say "thanks" for the latest source of income, clubs should look out for the potential 'pitholes' in their employment contracts before they get hit with a 'big one'!
And it is worth comparing the employment status of the 'elderly' footballer in England with the more 'mature' professional athletes in the US.
Age discrimination laws in the US have been in place for a number of years and some compensation awards have been HUGE! 


 

Please click on this link and complete the attached questionnaire if you work in any aspect of the sports industry:
Paralympic
Paradox


quiz on Soccer icon, David Beckham

1.  in what year did Beckham sign his professional contract with Manchester United at Old Trafford?
a.
  1989; b. 1991; c. 1993
2.  Beckham made his debut playing for England in a 1996 World Cup qualifier against which country?
a. 
Moldova:  b. Croatia; c. Russia
3.  Beckham handed his black captain's arm band to a fellow team member and stood down during a 2006 World Cup match against which team?
a. 
Italy; b. Spain; c. Portugal
4.  in which year was Beckham made England Captain?
a.  1998; b. 1999; c. 2000
5.  Beckman was not included in the first international after the appointment of a new England Manager after the 2006 World Cup. Who is the Manager?
a. 
Terry Venables b. Steve McClaren c. Glen Hoddle
6. In which year was Beckham voted BBC Sport Personality of the Year?
a. 2001; b. 2002 c. 2003
7.  How much in pounds sterling did Real Madrid pay Manchester United for David Beckham?

a.  18 million b. 25 million; c. 32 million
8.  In July 1997 Beckham signed a one million pound sponsorship deal for which category of product?
a. mobile phone b. sports clothing; c. toiletries/cosmetics
9.  Who allegedly kicked a boot which accidentally caused a gash above Beckham's eye?
a.  Sven Goran Eriksson ; b. Sir Alex Ferguson; c. Victoria Beckham
10. Beckham captained England for the 50th time in November 2005 against which team?

a. Argentina; b. Brazil; c. France


answers below


what's hot
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wpe73.jpg (6828 bytes) The battle between Wembley Stadium and contractor Multiplex continues to ensue, as Multiplex draws first blood by winning a 20 million pound victory.
In a closed door arbitration hearing, Wembley National Stadium (a subsidiary of the Football Association) was judged to have wrongly withheld payments to its Australian construction company Multiplex.  The sum represents a deduction taken by Wembley from the monthly payments to Multiplex and described as "damages". However, the arbitrators ruled that any damages should come from the 40 million pound bond which the Australian company had deposited against such contingencies. 
This forms just one part of the 150 million pound claim by Multiplex.  Each company blaming the other for the expensive delays, as construction work - which ground to a halt several months ago - continues to delay the opening.  To be continued......

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And in the spirit of David and Goliath, a London local government body - Hackney Council - have received over half a million US$ from Nike.  Nike chose to produce a line of sports wear bearing the name Hackney and using the identical logo as the government body.  The out-of-court settlement was based on a percentage of global sales of the branded trainers, balls and t-shirts, etc.  Nike has apologized, offered to pay all legal costs and will no doubt see the PR benefit from the outcome: the compensation has gone towards sports development for young people.

Dateline
Coming up in 2006:

The Ashes in Australia; The ATP Masters Tennis in Shanghai, China; The Davie Cup Final; the Asian Games in Dohar .....and much more

Quiz Answers
1C; 2A; 3C; 4C; 5B; 6A;
7B; 8C; 9B; 10A  

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all the back issues:

 
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July 2006
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wpe1E.jpg (5388 bytes)June 2006

 

 

May 2006
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