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The Daily Business Report with Rob Rodgers

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Thursday, December 11, 2008

AFL Season Update


The league's board of directors met in "what had to be a tumultuous conference call" on Wednesday night, and will meet again on Thursday "in an effort to reach a three-quarters majority among the 16 league owners on a course of action."

David Mayo of The Grand Rapids Press describes the owners as being split between "AFL hard-liners", and "NFL bottom-liners" -- owners of NFL and AFL franchises, who "seeing their 100-yard profits shriveling, have become quick to view their 50-yard commodities as expendable playthings." In a separate article, Mayo cites an interview with Grand Rapids Rampage union rep Ahmad Hawkins, who alleges that "the owners of the Colorado Crush and Dallas Desperados are ... pushing hardest to suspend league operations for 2009 and perhaps resume in 2010." The Crush and Desperados are owned by Pat Bowlen and Jerry Jones, respectively, both owners of NFL teams.

According to Mayo, even though AFL teams account for "relatively insignificant operating losses compared to the huge profits NFL teams generate," they are an "easy place to cut" for NFL owners feeling the effect of the economic downturn.

For their part, the AFL's players are willing to make major concessions in order to play next season. The union voted on Friday to cut the salary cap by 30%, from $2 million to $1.4 million. Quoting the aforementioned Hawkins, "If I make $50,000, that's still more than I can make if I go out and try to find a job."

Source: Various

Missouri State Offers Additional Ticket Plans For JQH


Missouri State has announced additional ticket plans for men's and women's basketball, including a "Valley Five Pack" plan for upcoming Missouri Valley Conference games.

The plan includes upper-level seats for five league games for each team. The men's package is for games against Wichita State (Jan. 14), Northern Iowa (Jan. 25), Southern Illinois (Feb. 7), Indiana State (Feb. 14) and Creighton (Feb. 24).

Lady Bears games in the plan are Illinois State (Jan. 19), Creighton (Feb. 1), Drake (Feb. 6), Wichita State (Feb. 21) and Southern Illinois (March 1).

Cost is $65 for the men and $50 for the women.

This weekend, a $5 upper level ticket will be available for the Bears' Saturday game against Central Arkansas and the women's game on Sunday against Arkansas-Little Rock. Fans are encouraged to bring non-perishable food items for collection for a Salvation Army food drive.

Current season ticket holders also may purchase additional individual-game tickets.

Call the box office at 836-7678 for more information.

Source: MSU

Wednesday, December 10, 2008

Arena Football League To Suspend Play In 2009?


The Arena Football League, which has grown steadily in popularity and fan attendance during the past decade, is expected to cancel what would have been its 23rd season in 2009, according to multiple media reports.

The Rocky Mountain News reported Wednesday that league officials are expected to make the announcement before the end of the week. The Kansas City Star later reported that Pete Likens, communications director for the Kansas City Brigade, said the AFL players' union agreed late Tuesday to the decision.

"It's pretty much a done deal to suspend the 2009 season and work toward a single entity-league," Likens said, according to The Star. "We plan to start up again in 2010."

The league, which has been seeking ways to improve its financial footing, said Tuesday it still is not ready to announce a long-term plan. On Tuesday, the release of the 2009 schedule was delayed for the third time, and the league also put off its dispersal draft and the start of free agency.

In a statement released Wednesday, the AFL said: "Despite rumors and reports to the contrary, all AFL teams are continuing to work towards ArenaBowl XXIII. As it has previously stated, the AFL continues to work on long-term structural improvement options.

"Some of the options may impact the 2009 season. There is currently no timetable for an announcement of any kind. We remain grateful to our fans for their enthusiasm and patience."

The AFL's New Orleans franchise folded despite being near the top of the league in attendance the past two seasons. Saints owner Tom Benson, who also owned the VooDoo, said the decision was based on "circumstances currently affecting the league and the team."

The AFL has endured an offseason of uncertainty. No replacement has been named for longtime commissioner David Baker, who abruptly resigned in July two days before the ArenaBowl championship game.

Sports Business Journal reported in October that AFL owners had approved a tentative deal with Platinum Equity, in which the company would invest up to $100 million and assume management control of the league. That deal, however, has yet to be completed, and there are no guarantees of an AFL bailout. A message seeking comment was not immediately returned by Platinum Equity.

The arenafootball2 league, the official development league of the AFL, said it will continue to operate as usual and will play in 2009 -- its 10th anniversary season. The af2 operates entirely on its own and is not directly affected by the AFL's current situation.

The Kansas City Brigade has operated the last three seasons in Kansas City, playing at Kemper Arena for two seasons before moving into the new Sprint Center in 2008.

Source: Rocky Mountain News & KC Star

Illinois Governor Fed Charges Include Cubs Blackmail


The arrest of Illinois governor Rod Blagojevich has uncovered alleged charges related to public funding for Wrigley Field in Chicago.

According to the criminal complaint, the public funding was being used as a threat to get the Tribune Company to fire journalists who weren't friendly to Blagojevich.

From the government's criminal complaint against Gov. Blagojevich (some paragraph breaks added):

13.... b. Defendants Rod Blagojevich and John Harris, together with others, offered to, and threatened to withhold from, the Tribune Company substantial state financial assistance in connection with Wrigley Field, which assistance Rod Blagojevich believed to be worth at least $100 million to the Tribune Company, for the private purpose of inducing the controlling shareholder of the Tribune Company to fire members of the editorial board of the Chicago Tribune, a newspaper owned by the Tribune Company, who were responsible for editorials critical of Rod Blagojevich ....

69. Intercepted phone calls reflect that Rod Blagojevich and John Harris, together with others, are corruptly using and threatening to use the powers of Rod Blagojevich’s office as Governor of the State of Illinois to exert financial pressure on the owners of the Tribune Company, the parent corporation of the Chicago Tribune newspaper, to fire Chicago Tribune editorial board members who were responsible for editorials sharply critical of Rod Blagojevich’s actions as Governor and, among other things, calling for his impeachment.....

72. On the evening of November 3, 2008, Rod Blagojevich talked to Deputy Governor A. Rod Blagojevich stated that he was concerned about possibly being impeached in the Spring and that the Chicago Tribune will be “driving” the impeachment discussion. Rod Blagojevich asked Deputy Governor A to check to see if the Tribune has recently “advocate[d]” that he be impeached. In fact, the Chicago Tribune recently had published editorials critical of Rod Blagojevich.

73. In another call between Rod Blagojevich and Deputy Governor A that occurred a short time later on November 3, 2008, Rod Blagojevich and Deputy Governor A discussed an editorial from the Chicago Tribune regarding the endorsement of Michael Madigan and calling for a committee to consider impeaching Rod Blagojevich. During the call, Rod Blagojevich’s wife can be heard in the background telling Rod Blagojevich to tell Deputy Governor A “to hold up that f*****g Cubs s**t... fuck them.” Rod Blagojevich asked Deputy Governor A what he thinks of his wife’s idea. Deputy Governor A stated that there is a part of what Rod Blagojevich’s wife said that he “agree[s] with.” Deputy Governor A told Rod Blagojevich that Tribune Owner will say that he does not have anything to do with the editorials, “but I would tell him, look, if you want to get your Cubs thing done get rid of this Tribune.”

Later, Rod Blagojevich’s wife got on the phone and, during the continuing discussion of the critical Tribune editorials, stated that Tribune Owner can “just fire” the writers because Tribune Owner owns the Tribune. Rod Blagojevich’s wife stated that if Tribune Owner’s papers were hurting his business, Tribune Owner would do something about the editorial board. Rod Blagojevich then got back on the phone. Rod Blagojevich told Deputy Governor A to put together the articles in the Tribune that are on the topic of removing Rod Blagojevich from office and they will then have someone, like John Harris, go to Tribune Owner and say, “We’ve got some decisions to make now.”

Rod Blagojevich said that “someone should say, ‘get rid of those people.’” Rod Blagojevich said that he thinks that they should put this all together and then have Harris or somebody go talk to the Tribune owners and say, “Look, we’ve got decisions to make now ... moving this stuff forward (believed to be a reference to the IFA helping with the Cubs sale) ... someone’s gotta go to [Tribune Owner], we want to see him ... it’s a political fuckin’ operation in there.” Deputy Governor A agreed and said that Harris needs to be “sensitive” about how he does it.

Rod Blagojevich said there is nothing sensitive about how you do it and that it’s “straight forward” and you say “we’re doing this stuff for you, we believe this is right for Illinois [and] this is a big deal to [Tribune Owner] financially” but what Rod Blagojevich is doing to help Tribune Owner is the same type of action that the Tribune is saying should be the basis for Rod Blagojevich’s impeachment. Rod Blagojevich said Tribune Owner should be told “maybe we can’t do this now. Fire those f******s.”

Deputy Governor A suggested that Rod Blagojevich say, “I’m not sure that we can do this anymore because we’ve been getting a ton of these editorials that say, look, we’re going around the legislature, we gotta stop and this is something the legislature hasn’t approved. We don’t want to go around the legislature anymore.” Rod Blagojevich agreed and said that he wants Harris to go in and make that case, “not me.” Deputy Governor A agreed and said that he likes it. Rod Blagojevich asked Deputy Governor A to put the list of Tribune articles together....

76.... Rod Blagojevich stated that “our recommendation is fire all those f******g people, get ‘em the **** out of there and get us some editorial support.”


Source: Various

Tuesday, December 9, 2008

NFL Cuts 150 Jobs


The economic downturn continues to affect the world of sports.

The NFL will cut 150 jobs, or "more than 10 percent of its headquarters staff", in the next sixty days due in part to the crumbling economy. The cuts will affect "its staff of 1,100 in New York, NFL Films in New Jersey and production facilities in Los Angeles."

The league also announced the cancellation of a preseason game in China.

The NFL "will fall at least $50 million short of projected revenue" for this fiscal year, which began on April 1 and will end on March 31.

Source: NFL

Arena Football League In Trouble?


There are a number of reports out that the Arena Football League is in deep financial trouble. The Denver Post reported that the league could dissolve unless it gets financing by Dec. 19.

Last week, AFL officials said they were working on a long-term solution.

More to follow.

Source: Denver Post

Monday, December 8, 2008

Cubs Parent Company Tribune Files For Bankruptcy


Media conglomerate Tribune Co. filed for bankruptcy protection Monday, as the owner of the Chicago Tribune, the Los Angeles Times, the Chicago Cubs and other properties tries to deal with $13 billion in debt.

The Chicago Cubs and Wrigley Field are not included in the petition.

Severe reductions in advertising this year because of the recession have put pressure on the Chicago-based company. Most of its debt comes from the complex transaction in which the company was taken private by real estate mogul Sam Zell last year.

Although the next major principal payment isn't due until June, analysts say Tribune has been in danger of missing lender-imposed financial targets.

Tribune made the filing Monday in bankruptcy court in Delaware.

Source: Associated Press