Celtics

16 for '16: Rick Horrow's Top Sports/Business Issues of the Year

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16 for '16: Rick Horrow's Top Sports/Business Issues of the Year

With Tanner Simkins

1) After a 108 year wait --what a game, indeed. The Chicago Cubs-Cleveland Indians Game 7 World Series matchup may go down as the best baseball game in history, and the viewer numbers reflect just that. Despite a 17-minute rain delay and a late finish, the drama kept fans around the country glued to the TV. With the Cubs win, Theo Epstein can now be credited for snapping two of baseball’s largest title droughts – in Chicago and Boston. “Give all the credit where it’s deserved,” said Cubs Chair Tom Ricketts. Over 40 million TV sets; millennials glued to mobile devices; over 200 countries; economic impact in Chicago well over $200 million for the eight games at home and nine away games attracting thousands of baseball pilgrims to Wrigleyville. Net impact: great for baseball, great for the Cubs. It’s happened. Cubs fan such as myself can now go in peace. By far, the biggest sports story in the history of the universe. Economic impact corresponds with social and intergalactic benefits – five million people at a downtown parade. In the future, the time capsule on 2016 baseball will be fun to open, indeed.

2) Many maintain that sport and politics do not - or at least should not - mix, yet the result of the 2016 presidential election will surely have an impact on the future of American sport for many years to come. Before the vote, there were widespread concerns that a Donald Trump presidency could harm Los Angeles’ ongoing bid to host the 2024 Olympic Games and any potential push from the U.S. Soccer Federation to stage all or part of the 2026 FIFA World Cup – which some had suggested America might co-host with Mexico.  Other sports industry followers speculate that the prospect of uncertain trade relations with other countries could negatively affect major league growth aspirations abroad. Whether any of that is actually the case remains to be seen. On the plus side, Trump’s experience as a sports league, team, and facility owner could mean that he will forge policies beneficial to the sports industry both at home and abroad. The jury is still out on whether the LPGA and PGA Tour will embrace the Trump properties in years ahead.

3) This was the year of the NFL tricast, digital streaming, shared rights, and more.  While experts claim different reasons why, that mix resulted in a TV ratings downturn for the league. And the problem might not go away anytime soon. Many of the year’s primetime games had the lowest ratings in 10 or so years. Analysts close to the issue argue a change in consumer preferences as the underlying reason. Whether it was the daily fantasy bubble somewhat popping, primetime competition like the presidential debates, content cannibalization with the NFL available more places than ever before, or simply lackluster game storylines – the NFL downturn was a major deal in 2016. The biggest story is really the convergence of all types of new media – with implications for rights holders, “de-couching,” stadiums and arenas, and the entire sports industry.

4) Live events take center stage, for social interaction and gifting in a “experience economy.”  StubHub has just released its annual “Year in Live Events” report. Peyton’s last game. Kobe’s last game. The Cubs’ World Series win. Hamilton. Those are just a few of the major highlights from a year in live events. According to StubHub, the top 10 bestselling events of the year were all sporting events. Led by Super Bowl 50 in Silicon Valley, which outsold the previous Super Bowl by 7%, and the World Series, which was the highest-selling World Series ever on StubHub, other best-selling live events included Adele’s tour, which led all music acts with the No. 1 selling tour spot and the runaway Broadway hit, “Hamilton: An American Musical,” drove at least four times the sales of any other theater production in company history. Fans also flocked to see Peyton and Kobe’s final games, championship appearances for Cleveland in both basketball and baseball, UFC taking its first match to New York City and soccer’s globally popular Copa America Centenario. International NFL games and futbol (soccer) matches led as the top five international events with the highest sales from U.S. ticket buyers. This past year, the live events industry thrived, with a perfect storm of firsts, lasts, and multiple milestone events that were captured only as StubHub can, with a global marketplace that spans sports, music, and theater. It will be interesting to see how events in the new year stack up to an historic 2016. 

5) From an international sports perspective, Brexit was big news in 2016. With restrictions regarding player’s age and nationality, a shift in the European Union paradigm mixed all this up for EPL clubs. Moving forward, European soccer’s competitive balance should level out if Brexit-caused restrictions prove as tough as many expect. Maybe Britain’s exit means two steps back for UK football or one step forward for the global game such as that in the South America, for example. Maybe policy makers find a way to keep European football strong. Regardless, the issue continues to be something to watch…heads up rugby and cricket fans, too. Uncertainty rules the day, as the European economy evolves to adjust to the unpredicted result.  Look for sports to respond accordingly.

6) This year the world lost golf's patriarch, Arnold Palmer. His stellar playing career aside, Palmer’s biggest achievements stretched well beyond the game. Known today as the originator of sports marketing, Palmer was one of the first athletes to turn his name into a brand. Using his image and business acumen, Palmer's empire was valued at approximately $700 million upon his death. Over the years, he was endorsed by dozens of companies, had his hand in founding IMG and the Golf Channel, even in commercializing his famous ice tea/lemonade blended drink -- effectively founding sports marketing along the way. Through strategic messaging and brand management, Arnold Palmer became the prototype for all of today's sports stars. “The King” as he was known, will be missed. Arnold Palmer was more than a golfer – he defined an evolving, broad sports business in a way no one else could.

7) The Rams stole NFL headlines this season with their return move to Los Angeles.  Since then the balance of power has shifted among NFL owners and the Rams have cemented themselves as LA’s pride once again, despite poor performance throughout the season.  The Ram’s “honeymoon period” in the Coliseum and the construction of their new Inglewood stadium was one of the year’s most closely followed sports business sagas. Now the fun really begins: “franchise musical chairs” should be resolved in the next three months with the San Diego/Los Angeles Chargers and the Oakland/Las Vegas Raiders.  An early chapter in a very long book.

8) 2016 inched a little bit closer to gender equality.  There is much more work to be done, but here are some highlights: we celebrated the 20-year anniversary of the WNBA; “leaning in” is at all-time high; we saw social movements like Girls For STEM, and a push for workplace equality.  The discerning issue of the wage gap was raised in the tennis community, and then pushed further when TEAM USA soccer spoke out.  Another positive development was the summer announcement of the Indy in Tech Championship coordinated, presented, and sponsored by Guggenheim Life. The LPGA event debuts next Labor Day weekend in Indianapolis, and provides unparalleled benefit for workforce training, robotics, STEM, and other positives. More to come on that story over time. Gender equity is far away, but there were many moments in 2016 where it was supported rather than tossed aside, and that's a good thing.

9) 2016 was a blockbuster year for mergers, resulting in over $1.8 trillion in deals made. Some mega-mergers with sports implications include Microsoft and LinkedIn, Verizon and Yahoo, AT&T and Time Warner and Charter.  The phenomenon was fueled by the year’s oddly low interest rates and other reasons making 2016 ripe with blue chip M&As.  When we drill down into the sports industry, examples include WME-IMG acquiring the UFC for $4 billion; the DraftKings and FanDuel merger; and Disney buying a $1 billion stake in MLBamtech. The sports and business worlds are clearly loved by vertically integrated, global, mega corporations that include media, management, events, and properties.  The stage is set for more power moves in 2017.  

10) The year just concluded saw the growth of eSports, virtual reality, 3D printing, big data, drones, IoT, and other tech marvels. Esports was a $892 million market in 2016, making it a major focus for brands and publishers, according to a report from SuperData. In the overall scope, esports is just a small part of what’s now a $91 billion market for digital games and playable media, with consumers spending $41 billion on mobile gaming in 2016. But we also had a handful of tech mishaps in 2016, whether it was Samsung’s exploding phone’s, the FBI being unable to retrieve data off of a locked iPhone, or NFL team staffs’ on-again, off-again love affair with using Microsoft tablets on the sidelines. The most memorable tech failure of 2016 was the downfall of GoPro -- the camera company marketed to thrillseekers had a market value of $12 billion a few short months after its 2014 IPO. Now after one disastrous earnings report after another, GoPro is valued closer to $1 billion.  These days, event properties must be coupled with significant technological advances to have a chance of success in an evolving marketplace.

11) 2016 was the rise of adidas.  Adidas is now banking on signing top rookies, luring them in with multimillion-dollar deals. Just this past year, adidas signed six of the top 10 NBA draft picks.  In addition to adidas’ renewed focus on players, there’s no underestimating the influence of its celebrity partnerships with Kanye West, Pharrell Williams, and Selena Gomez.  Some standout adidas athletes include Lionel Messi, David Beckham, Roger Federer, and James Harden.  However, the sporting goods industry, especially at the retail level, has taken a massive hit.  Once nationwide, brick and mortar chains like Sports Authority, Bob’s Stores, Eastern Mountain Sports, and Sports Chalet have all filed for bankruptcy. Yet, adidas is thriving with new executive leadership, key player signings, powerful brand influencers, and re-commitment to lifestyle marketing.  Adidas shares are up 56% this year. Nike is down 17%, Skechers down 17%, Under Armour down 37%. Retail wars still take center stage – revenues generated will be important for athletes, agents, colleges, teams, and leagues.

12) Athletes at all levels turned to their sport as a vehicle of peaceful issue-raising. Colin Kaepernick kneeled in protest, Dwyane Wade, Kyle Kover, Chris Paul, and Carmelo Anthony pushed for social unity amidst the Black Lives Matter movement, cleats were worn in support of the country by Odell Beckham, Jr. and others. Athletes drove discussion on social media, in our communities, and elsewhere -- whether you agree or disagree with whatever cause, the influence of sport is ever present. Hopefully, all sports fans and non-sports fans alike recognize rights granted under the First Amendment, but also understand the responsibilities of role models as well.

13) LeBron James’ return to Cleveland resulted in the city’s first professional sports championship since 1964. The Cavs did so in stunning fashion, overcoming a 3-1 series deficit and winning in a Game 7 “nothing gets better than this” moment for any sports fan. Now, the Cavaliers a $140 million upgrade of Quicken Loans Arena to be complete by 2020. The upgraded facility will also provide a catalyst for mega-events – like the All-Star Game – which should add additional impact for the city once referred to as “the Mistake by the Lake.” In many ways, the Cavaliers victory was as big a sports story for Cleveland and the basketball world as the Cubs were for baseball – maybe even bigger. Another example of sports as a social and economic catalyst.

14) Pokemon Go was the most googled thing in 2016, according to Google Trends, beating out iPhone and Donald Trump, which placed second and third, respectively. Pokémon Go made more than $600 million in revenue for its developer, Niantic Labs, another $115 million in revenue for Nintendo, and added nearly $7.5 billion to the company’s market value. The Pokemon Go app passed Twitter and Facebook in daily users in less than two weeks. Sports teams everywhere are constantly chasing engagement, and Pokemon Go offered creative contests, giveaways, and social media interactions to those teams and leagues that embraced the hysteria. The future trend clearly focuses on interactive consumer events, fueled by social media.  Look for much more in 2017 and beyond.

15) In a year in which we lost Muhammad Ali and Arnold Palmer, we also saw two “best evers” retire from their sport. 2016 was the year of the Kobe Bryant farewell tour, and the sheriff, Peyton Manning, riding off into the proverbial sunset. For Kobe, the end came in typical Black Mamba fashion -- not only did he receive a standing ovation in each city he played in during the season’s final stretch, but his last playing day, April 13th, was dubbed “Mamba Day” by Nike and backed by their full marketing support. Manning’s exit came after winning Super Bowl 50 following a fitting jersey-number matching “18” year career.  From a performance and sports marketing perspective, these two are some of the best to ever just do it.  The passing and retirement of mega superstars should give us cause to reflect on how important sports becomes to an entire society – especially in the social media age.

16) Yes, there were socioeconomic concerns, the Zika epidemic, minor crimes, and PR issues like the Lochte scandal, but for the most part, Rio 2016 was a homerun.   The USA took home 121 medals, of which 46 were Gold. Michael Phelps took home five Gold medals during his last Olympics, fellow swimmer Katie Ledecky earned four Gold medals, and gymnast Simone Biles took home Gold. Team USA in the Paralympics took home 115 medals, 40 of which were Gold. How Brazil fulfills its post-Olympic promises defines the international side of the story – golf expansion, infrastructure development, home building, transportation improvements, and the like. Now, the world awaits the IOC’s big decision next September – will it be Paris, Budapest, or LA?
 

Marcus Smart physically cleared to play

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File Photo

Marcus Smart physically cleared to play

The Celtics might have a big piece back for Tuesday night's Game 5 against the Bucks. 

Marcus Smart, out since last month after undergoing thumb surgery, has been physically cleared to play. The Celtics have yet to announce whether Smart will definitely play Tuesday, but it's hard to imagine the ultra-competitive Smart wouldn't. 

Smart's potential return might go a long way towards the Celtics reclaiming their series lead after winning Games 1 and 2 before dropping two straight in Milwaukee. His impact on games against the Bucks during the regular season illustrated how much his defense can help. 

Haggerty: For first time in series, Bruins feeling the heat

Haggerty: For first time in series, Bruins feeling the heat

TORONTO -- For the first time in their first-round series against the Maple Leafs, it looks like the Bruins are a little shaken, somewhat rattled, and more than a little frustrated.

The Bruins' top line was held off the score sheet for the third time in the best-of-seven series in Boston's 3-1 loss in Game 6 at the Air Canada Centre Monday night, which tied the series at 3-3 and set up Game 7 Wednesday at TD Garden. Not coincidentally, the Bruins are 0-3 in the series when getting zero point production from Patrice Bergeron, Brad Marchand and David Pastrnak.

DJ BEAN

But this was markedly different from the first couple of Boston losses in the series, where it seemed like Toronto was basically holding on for dear life. In those games, it felt like goalie Freddie Andersen and the Maple Leafs managed to escape rather than accomplish anything sustained or significant against a Boston attack that felt relentless and inevitable.

This time, a stouter Leafs defense blocked 21 shots and battled every step of the way with speed and admirable tenacity. And, of course, Toronto received another standout effort from Andersen, who seems to be getting into the heads of the Boston players.

Especially Marchand, Bergeron and Pastrnak. They still managed to squeeze off 26 shot attempts and a half-dozen scoring chances, but, by the third period, Marchand and Pastrnak both seemed to be feeling the pressure of not scoring. They began doing things they hadn't previously done in the series, getting overly fancy with a lot of their moves in the offensive zone and turning the puck over rather than pushing with precision and hard work toward the net.

"That's playoff hockey," said Marchand. "Regardless of what happened tonight or any other game, you've got to let it go. You just need to worry about the next one. We'll focus on that and let this one go . . . They just kept coming. They're a good team. They've been resilient all year, so you've got to give them a lot of credit.

"If anybody told us at the beginning of the year that we'd be in a Game 7 in the first round at home, I think we would have taken it. It's tough given the position that we're in, but we're just going to look forward to the next game. That's all that we can control. Whatever happened in the last six games doesn't really matter anymore. We're going to be fighting for our lives, and it's going to be a lot of fun."

It sure didn't seem like Marchand was having much fun in Game 6. He couldn't hang onto a loose puck in the D-zone slot late in the second period, and the sequence ended with Mitch Marner snapping home a backhander that broke a 1-1 tie and put Toronto ahead to stay. Whether it was forcing plays that weren't there, over-passing at points when a simple shot would have been better, or missing the net too often while trying to be too fine picking corners against Andersen, the frustration showed for Marchand and his linemates.

That's not a good look for a top-heavy team like the Bruins, which relies on those top forwards to score for playoff success. After piling up 20 points in the first couple of games in the series, the top line has no points and a minus-16 plus/minus rating in the three losses.

"Maybe there was a little bit of [frustration], but you need to go back to the drawing board and find the character that we've shown all year," said Bergeron. "Now it's all about that one game. You can look back all you want, but now that's where you're at and that's the position that we're in. You have to prevail and be good.

"The bottom line is that we need to bear down and be better. It's as simple as that. It's how it should be . . . We have some amazing young players that are in this locker room, and I know they're going to step up. That's the approach that we're going to have, and that's it. There's not much more to be said other than we need to be better."

The question now facing the Bruins is a deep, difficult one.

Should Bruce Cassidy perhaps break up the top line, making the Bruins attack a little less imbalanced and top-heavy? Should he perhaps move Pastrnak down to the David Krejci line while moving David Backes, Rick Nash or Danton Heinen up with Bergeron and Marchand? Should he insert Ryan Donato into the series for a spark of offense and perhaps try him on his off-wing with Bergeron and Marchand in a move that might spark them with a different kind of energy?

By the end of Monday night's Game 6, the Bruins top players almost looked like the weight of carrying Boston's offense had finally begun to wear on them. That's a dynamic that needs to be fixed quickly. Home ice, a couple of adjustments, and the immediacy of a winner-take-all Game 7 might do the trick.

If not, that weight on the collective shoulders of Bergeron, Marchand and Pastrnak will be the thing that ultimately drags the Bruins down.

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