King James

King James
we are all witnesses

Wednesday, April 21, 2010

Big Ten plus one, two, six?

In many recent reports there has been speculations of the big ten considering adding a team or more to their conference. These were first just rumors but recently Big ten commissioner Jim
Delany publicly expressed the idea of additions and even gave a time line of 12-18 months. It makes sense, college sports are profit maximizers and continue to expand into new markets. In this case some of the teams the big ten has expressed interest include: missouri, syracuse, pittsburgh and rutgers. These east coast schools would potentially bring in fans from the massive New York market to the big ten. But the big ten is being careful, they don't want to expand if an expansion cost won't create more revenue. As of now that desired revenue is around $22 million per team added espn. com reports. Interestingly enough the big ten will also require a $5 million loyalty clause fee from any big east team if this deal actually happens. I'm not even sure if a league fee is legal at the college level. The NCAA is becoming more profit minded every year, they are a business who has an extremely high untaxed revenue every year, yet in the big tens opinion they don't make enough. We will see what happens in the next year and a half but theres not a doubt in my mind the big ten will add a team if not multiple teams to ultimatly increase their revenue as a conferencce.

Wednesday, April 7, 2010

Miami heat.....

Interesting story I heard on sports-center this week. Reports say Miami owners and team management want to schedule less games at home in the beginning of the season due to the heat. They think fans in fact hate the high temperatures at the early season home games and this would make fans happy. But this seems like a extremely poor business decisions (if they actually did this) because ticket sales and filling up the stadium is a big part of their revenue. And as one analyst pointed out in Miami some consumers come to games just for social purposes. For example you might see a celebrity such as part owner Jennifer Lopez. Decreasing the number of home games will limit these fans opportunities as a whole to go to games(no matter what their reason is for going) and decrease your maximum profit potential. I don't know what the management team in Miami is thinking, It's Miami shouldn't fans expect it to be hot.