Category Archives: Sports

What game?  Johnny Manziel’s Texas A&M Aggies vs. Alabama on September 14^th.  Returning Heisman Trophy winner vs. the defending National Champion, what a fabulous draw for CBS and the SEC.  Now that the Manziel autograph “scandal” has been dealt with we can all relax, grab a beer and watch some great football in Prime Time in a couple of weeks.

Was there ever any doubt that the NCAA would stand in the way of this unique match-up?  CBS is paying the SEC over a half billion dollars for the rights to broadcast Prime Time SEC Football over the next 10 years, and you better believe they intend to make a profit.  College Football is one of the biggest media draws in the entertainment industry today and no one wants the NCAA, with their archaic rules, to screw it up.

The time has come for the Major Conferences and Universities that want to be in the entertainment industry to withdraw from the NCAA.  The NCAA is an impediment to the players, the fans, the coaches and the Universities who want to see a great “product” on the field.  The NCAA was never intended to be the overseer of a huge entertainment business. The Major Conferences already negotiate their own Media contracts.

As we have seen, over the past few years, the revenue generating capabilities of each school (business) determines how the conferences organize themselves to maximize their profit.  Thus we see Texas A&M in the Southeastern Conference, Boise State in the Big East etc. etc.  It’s a business and they should have the freedom to take the actions they deem necessary to maximize their profits.  All the parties, except one, have this freedom, and of course that is the players.

In a world without the NCAA each Conference would be free to establish their own rules, and the players would decide which school best meets their needs.  If the player’s primary goal were to get an education, he would perhaps choose a school that guaranteed a scholarship for 4 or 5 years.  If the goal were to develop the skills necessary for a career in professional sports they could choose a school with a great coach.  Each Conference would establish its own rules recognizing the vested interest of all concerned, including the players.

In summary, the players deserve a “seat at the table” and a share of the benefits being created.  The current situation is not sustainable and it’s time for a change.

No, I am not talking about the end of the world.  I am far to optimistic about the future to embrace that idea.  To the contrary, we may be about to witness the end of “indentured servitude” for college athletes.  About that, I am optimistic.

The NCAA (often referred to as the owner of the plantation) is facing a situation in which may be about to lose one of it’s most prized and profitable assets, Heisman Trophy winner Johnny Manziel.  Why?  He sold his autograph, but according to the NCAA, his autograph is their property.  Only the NCAA can sell Johnny’s autograph.

What to do?  What to do?  Mark Emmert, the Chief Executive of the NCAA, must not be sleeping well these days.  If he declares Johnny ineligible he exposes the NCAA for what it really is, a multibillion-dollar entertainment business built on the exploitation of those who actually play the game.  As I have written before, the coaches and administrators are “living large” while the players live with rules guaranteeing them a poor standard of living.  The rule broken by Johnny Manziel is just one of those rules that ties the athletes down.

I have never understood how coaches making millions can live with themselves without taking a stand for these young kids they claim to care about.  Is it peer group pressure, fear of being “black listed” by conference administrators, or just the joy of being an “exploitor” rather than an “exploitee?”

Johnny may end up being the guy who “knowingly” or “unknowingly” brought about the demise of the NCAA, as we know it today.  And in my opinion, it is long overdue.

That’s right, the PAC-12 is now “No. 1” in college football, at least when measured by what has become the most important measure of success.  It is not games won, team rankings in the polls, etc. (the SEC is way ahead by those measures).  The measure I am talking about is MONEY!  The PAC-12 recently negotiated a $3 Billion deal for the television rights to their football games, and they are in the process of building a seven-channel television network.

You can read all the details in the December 19th issue of Bloomberg Businessweek, and in that article Commissioner Larry Scott does not try to convince anyone that College Football is not a “business.”  He believes College Sports are a huge business that has not come close to realizing it’s full potential.  He believes College Football will generate revenues comparable to the annual revenues of the NFL.  And that, my friend, is a great “business.”

The difference between Larry Scott and Mark Emmert of the NCAA is that he makes no attempt to perpetuate the myth that College Sports is not a business.  If Universities have a business with a product that can generate billions of dollars in profits, why shouldn’t they?  It’s a free market for the consumers’ dollar.

But if College Sports wants to have a long-term successful business they must stop the exploitation of the players.  You cannot emulate the NFL, or attain their level of success, if the players are not paid.  Whether they like it or not, a union will be organized and agents will represent the most talented players.  If they are smart, College Sports will not oppose these actions.  Just as with the NFL and NBA, College Sports (the franchise owners) will negotiate with the players to arrive at a fair deal.

These changes may seem radical, but with so much money at stake it is not possible to go back to the “good old days.”  Most of our major institutions of higher learning are now in the “entertainment business” and how they manage that business is going to have a huge impact on our educational system.

My buddy, Dave Butler, who is being inducted into the U.C. Berkley Athletic Hall of Fame, asked me if I had any solutions to the problems facing the NCAA.  And of course I do.

1. Scholarships should not be tied to performance on the athletic field.  The stated goal is to give the athlete a chance to get a college degree.  If the student athlete maintains the required GPA, the athlete should be able to attain the goal of graduating even if the coach is not happy with their performance.
2. The “One and Done” practice has nothing to do with education.  Forcing a high school graduate to work for the NCAA for one year should not be legal.  We are the only country in the world that forces athletes to attend one year of college before playing professional ball.  Some players may benefit from the experience, but the choice should be theirs in a free society.
3. The monthly stipend paid to the athlete should provide for a decent standard of living.
4. Unless an individual college sport can pay for itself with ticket sales, alumni donations and student fees the programs should be dropped.  A small percentage of the student bodies at major universities participate in these sports, and they should not be subsidized with revenues generated by the football and basketball programs.

Let me know what you think Dave.

Maybe I should have entitled this piece David Stern “Look Out.” The longer the lockout continues, and the closer you look at what Stern is demanding from the players, the more you realize that it is Stern and not the players who are being unreasonable.  I am an avid fan, and a Miami Heat season ticket holder, and as much as I will miss the game, I do not believe the players should meet his demands.

I know it is hard for many to have sympathy with either the owners or the players, but that does not mean the players should allow Stern to exploit the current economic situation.  Here’s why:

The new collective bargaining agreement is about the future, not the past.  It should not be used to make up for any losses the owners may have realized over the past five years.  We are all aware of just how bad the economy has been during the past five years.  Many businesses have lost money and most individuals have seen their savings take a big hit or worse yet, lost their jobs.  That is what happens during a recession.  Who ever said that the owners of NBA franchises should be “recession proof.”

David Stern stated that a 50/50 split of revenues would make the NBA a true partnership, and feels the 57/43 (in favor of the players) split over the past 5 years is unfair to the owners.  But what he fails to mention is that the owners own an appreciating asset (the franchise) while the players have a depreciating asset (their talent).  If Stern wants a real partnership he should offer the players a 50/50 split on any increase in value when a franchise is sold.  Obviously that is not going to happen.

From what I have read, the losses, Stern is talking about may be computed in accordance with generally accepted accounting principles but here is the problem.  The owners get to write off, as a tax deduction, a portion of their initial investment in the franchise.  That depreciation expense enables the owner to show an accounting loss when in fact the franchise is profitable on a cash basis.  It’s legal but that doesn’t mean the franchise has indeed suffered a loss.  As mentioned before, these franchises “appreciate” over time.  It’s a great business.

Finally, Stern does not want another 5-year agreement, he wants a 10 year deal.  If he can base that agreement on the economic data of the past 5 years, the owners will make a killing when the economy recovers.  He insults the players and fans with his patronizing attitude.  I don’t believe we are all that stupid.

At his age, he obviously wants to go out with a bang.  If he can force the players to accept his terms I am guessing he will be in line for a substantial bonus.

But I am betting he won’t be around much longer.  When an employee puts his or her interest ahead of the employer, the employee usually gets shown the door.  We can only hope.