Showing posts with label Business Models. Show all posts
Showing posts with label Business Models. Show all posts

Tuesday, September 25, 2012

NFL Zebras Not the Only Animals in Owners' Sights

Hey, d'ja see the Packers-Seahawks game last night?  Cool how it ended, huh?

The NFL replacement officials are in way over their heads - so far that the integrity of the entire league is in question.  Evidence of their incompetence arises in every quarter, if not in every set of downs.  But, it's time to refocus: it's their employer, NFL Commissioner Roger Goodell, who planned the current lockout of the regular referees, in collaboration with certain activist owners; it's Goodell who hired the replacement refs, put them on the football field, gave them a whistle, and let them loose with insufficient training and experience; and it's Goodell and this handful of owners who are the only remaining parties to insist that nothing is wrong with the status quo.

There's obviously more to the NFL owners' posture in the current lockout of the regular referees than just the cost savings at stake, a relative pittance; else the league would have ended the lockout unilaterally after Week 1.  That they haven't suggests the following motivations:

(1) PRECEDENT: Not only does a hard-line posture toward the regular referees demonstrate the owners' resolve in the instant dispute; in their minds, it likely also sets a precedent for future contract negotiations with the Players' Association, a much bigger economic opportunity.  It also signals a strategic rigidity with respect to labor unions and salaried workforces in general, both in the owners' non-NFL businesses and in American society at-large.  The message: Negotiation itself is off the table.
 
(2) IDEOLOGY: The current generation of NFL owners came of age when President Ronald Reagan broke the Professional Air Traffic Controllers' Organization (PATCO) by hiring and training replacements.  As Paul F. Campos wrote today at Salon.com, appropriating the contemptuous jargon of ownership-class lionizer Ayn Rand and referencing her avid adherent: "Paul Ryan's beloved Packers were robbed last night -- because the owners are putting the 'moochers' in their place."

(3) PEER PRESSURE: Rigidity in the face of common sense allows the owners to display their boss-class status to and gain the affirmative, personal approval of their fellow sports team owners and business peers, whom they run into at Board meetings, Chamber of Commerce meetings, and country clubs and are, in fact, the only constituencies who actually matter to them.

(4) COMBATIVENESS: The hardened, combative societal attitudes evidenced first in America's so-called culture wars, then in its "red state-blue state" political divide now pervade all walks of life, including the business of sports.  An entire generation has grown up with categorical attitudes that are uninformed by critical thinking.

(5) LOMBARDI-ISM: (I could get exiled from Wisconsin for this.)  Former Packers coach and NFL demigod Vince Lombardi's famous line,"Winning isn't everything; it's the only thing [that matters]!" has been inflated to the status of received wisdom throughout American society.  It is, in fact, a sophomoric locker-room slogan, not an organizing principle for the modern world.

(6) VANITY: The owners continue, stubbornly and conceitedly, to deny a gross, strategic error that they have committed in public, as doing so would be an admission of their own fallibility; thereby compounding the problem.

(7) COLLUSION: The consistent pattern of the NFL, NBA, and NHL using nearly identical, hard-line labor tactics suggests that their executives are motivated by and doing the sector-wide bidding for the money-center banks, including Bank of America and Citibank, that serve the sports, media, and entertainment industries.  These financial players are often equity investors as well as the principal lenders to ownership groups.  Their influence in the sports world is an underreported story; whether they are also instigators in the recent spate of lockouts is a matter of speculation.

What troubles me most is that this infestation of hostile tactics toward players and officials could spread further.  In particular, Major League Baseball Commissioner Bud Selig's vaunted two-decade stretch of labor peace with the Baseball Players' Association, with no strike or lockout since the World Series washout of 1994, is surely threatened unless he and his eventual successor can wrangle MLB owners into a collective posture that does not rely principally upon the threat of work stoppages to achieve economic ends.

  *  *  *

UPDATE: After a 31-hour negotiating session following the Green Bay-Seattle game, the NFL and the NFL Referees Association agreed on the terms of a new, eight-year contract.



Friday, April 23, 2010

Too Much of Nutting: Pirates Lose, 20-0

Having lived in Pittsburgh three times in my life, including one particularly great day in the crib listening to the radio when Bill Mazeroski hit his World Series-winning home run (so I'm informed by a reliable source), I remain a fascinated outside observer of the city's major sports franchises.

I stayed up last night to see the defending Stanley Cup champion Pittsburgh Penguins' well-fought, triple-overtime defeat at the hands of the Ottawa Senators in the first round of the playoffs. Nearly losing the team to bankruptcy and relocation several times in the team's history, Pittsburgh fans have thoroughly enjoyed the Penguins' 21st Century renaissance.

I'm ruefully following the sordid train-wreck of an off-field life of Steelers' quarterback Ben Roethlisberger, with his motorcycle crash, barhopping misconduct, alleged assaults and improprieties, and now, a multiple-game league suspension. But frankly, I'm more interested in the long-term trajectory of the team's fortunes. Big Ben's shoestring tackle following a turnover saved one Super Bowl opportunity for Pittsburgh, and his perfectly placed touchdown pass to Santonio Holmes won another. Never mind that Roethlisberger is a risk-taking lunatic and Holmes is now history; the "Stillers" will always be intriguing.

Then, there's yesterday.

The Pittsburgh Pirates -- home to Honus Wagner, Pie Traynor, Willie Stargell, Dave Parker, and Manny Sanguillen; winner of National League pennants and World Series championships as recently as 1979 -- have now had a losing record in 21 consecutive seasons.

Yesterday, they capped off more than two decades of sub-.500 futility with a historically awful, 20-0 drubbing at the hands of the formerly awful, recently capable Milwaukee Brewers.

The Pirates players are reportedly angry and embarrassed. The front office, manager, and coaching staff are surely embarrassed. Ultimately, however, it's all about the ownership and its commitment, or lack thereof, to providing the financial resources for on-the-field success.

For the Penguins, former NHL superstar Mario Lemieux assumed a leadership role and parlayed an ownership share borne of unpaid back salary, a willingness to partner with moneyed interests, his dogged persistence through health problems and arena issues, and his status as franchise and league icon into a consistently successful, entertaining Stanley Cup winner. Around the NFL, the Rooney family is a highly regarded class act, and its stewardship of the Steelers has brought championships and cause for celebration to Pittsburgh.

In contrast, the Pirates' ownership group, led by the Nutting family, fields a persistently losing team with the lowest player payroll in Major League Baseball while remaining profitable due to large revenue-sharing sums from wealthy teams. That's a stick in the eye to the dwindling core of traditionalist fans that, along with casual scenery-seekers, constitutes the Pirates' fan base. Losing is no disgrace, but not even trying -- in this case, an indictment of the team's cynical, miserly ownership rather than its struggling, overmatched players -- is a travesty.

Supposedly, ownership and the front office have a 5-year plan to invest in minor league talent that will blossom into major league competence. That's a formula that worked recently for the Brewers, as Prince Fielder, Rickie Weeks, Tony Gwynn, Jr., Ryan Braun and J.J. Hardy progressed through the ranks to the major league level. Time will tell whether the Nuttings and their front men in the front office will offer a hot prospect a groundbreaking, millionaire-making contract as the Brewers did with Weeks, but the signs are not promising; at least one recent top prospect, catcher Matt Wieters, was bypassed in the 2007 amateur draft by the Pirates as too expensive to sign. He's now the starting catcher for the Baltimore Orioles. And the beat goes on.

It makes me wonder whether Bud Selig's overriding powers as MLB Commissioner, which reputedly can be invoked at will for the good of the game, can be invoked to effect a much-needed change in the ownership of the Pittsburgh Pirates.

Baseball in Pittsburgh has lost its way, but the solution is simple. It's time for Commissioner Selig and his fellow owners to kick the Nuttings out of the crib. The irony is that if they do, it will be the Pirates that can grow up.

Wednesday, April 14, 2010

A Cheshire Cat, With Wings

Andrew Weiland of BizTimes Milwaukee posted an article today about the post-merger rebranding of Milwaukee-based Midwest Airlines as Frontier Airlines: "Only the Cookie Remains".

Midwest had some great amenities in its heyday as Midwest Express: 2x2 leather seating, enough legroom for actual human persons, and real meals featuring real food on real tablecloths. With direct flights that avoided an O'Hare connection, Midwest truly was, as the slogans went, "Milwaukee's Hometown Airline" offering "The Best Care in the Air."

It was a wonderful experience. Passengers were happy cats. Clearly, it couldn't last.

One by one, the amenities disappeared as airline price competition and a moribund travel economy, post-9/11, brought cost-cutting imperatives and forced Midwest to consider consolidation. The company's Board of Directors rebuffed a takeover bid from AirTran Airways, only to sell soon thereafter to Republic Airways, which had also bought Denver-based Frontier Airlines.

Everyone seems relieved that Midwest's fresh-baked chocolate-chip cookies, customarily handed out to passengers during the descent, will continue to be part of the customer experience as the fleet is repainted in Frontier's colors. Really? Was it only about the cookies, all along?

The smile may remain, but this cat's disappeared. Like Grizabella, only time will tell if she has another life left in her.


Tuesday, November 17, 2009

Yankees Win, Blah Blah Blah

Speaking of Philadelphia, weren't they just in a World Series? It's been only two weeks since the end of the baseball season, but the victory by the Yankees over the Phillies has already receded from front-of-brain consciousness.

For me, the iconic play of the postseason came in Game 4: Johnny Damon's alert steal of third base when nobody was covering the bag. That play showed verve and spirit. Other than that, not much comes to mind. Hideki Matsui hit a bunch of homers and doubles in the final game, and Mariano Rivera pitched more than one inning a few times. Andy Pettitte pitched with his usual Pete Sampras-like countenance. Derek Jeter got on base some, I'm pretty sure. Must have. A-Rod had a big game at some point, didn't he?

Ever the fair-weather fan, I tried to get excited about the Yankees win, which (unacceptably to some) was nine long years in coming. I'd grown up in Upstate New York during the losing Yankee seasons of the late 1960's and early 1970's, post-Mickey Mantle, pre-Thurman Munson and pre-Reggie Jackson. After pitching ace Mel Stottlemyre, graceful outfielder Roy White, and the late Bobby Murcer, the talent level on those teams fell off sharply. Recalling those lean years, I hold that a championship is never to be taken for granted -- even by a pinstriped franchise with a payroll large enough to fund NASA.

In that spirit, I caught some of the 2009 post-parade ceremony at City Hall. Honestly, I've never seen a more subdued, workmanlike celebration. With few exceptions, the players sauntered out when their names were called, most looking for all the world like they'd rather be somewhere else, or wanted a fee for their appearance. (In fairness, serious hangovers could have been involved.) Keys to the city were presented by Mayor Bloomberg to each Yankee player, including minor-league call-ups, as well as every last team employee down to the shoeshine kid. A few short speeches were made; a few onlookers cheered.

Most of the speakers credited Yankees owner George Steinbrenner, now in failing health, and his sons for their massive spending on star players that has driven and disrupted the economics of baseball for three decades. To finance astronomical salaries, ticket prices have risen over the years, and have now reached the level of the absurd in the new Yankee Stadium. It's no longer New York's barbers and cabdrivers who can afford to attend the games, especially in the seats closest to home plate, but bankers, lawyers and celebrity politicians. Perhaps this explains the curiously underwhelming response when the final out of Game 5 was recorded. "The-e-e Yankees win!" said the team's broadcaster. The fans cheered; the players put on special caps and t-shirts; the loudspeakers played We Are The Champions. All according to plan.

(Is noone aware that Queen's vainglorious winner's anthem was meant to be ironic?)

Excellence through expectation and execution is admirable in business and sports alike, but only in the corporate world is it enough. Sports requires passion as well as achievement to hold fan interest and build loyalty. As the Yankees report to spring training in 2010 and prepare to defend their 27th championship -- will Manager Joe Girardi change his number from 27 to 28? -- the best they can hope for if they succeed is not ecstasy but relief at meeting the annual plan.

Meanwhile, baseball enthusiasts everywhere else will hope that their team can stoke up, catch lightning, and take down the mighty Yanks. Explosive exuberance awaits the franchise and its fans whose players can, just once, overachieve wildly, steal a pennant and a championship, and reach the very pinnacle of their professional existence.

          Irrational, yes; impossible, no --
          We're in first place! Go, Brewers, Go!


Tuesday, March 17, 2009

Pass the Hat...and the Plate

My favorite rock-cabaret chanteuse, Amanda Palmer of The Dresden Dolls, has conducted a reportedly successful economic experiment on her recent tour swings through the U.S., Europe, Australia, and New Zealand. Touring in support of her new solo CD, Who Killed Amanda Palmer?, Palmer enlisted The Danger Ensemble, an Australian theatrical art performance company, and featured string instrumentalists Zoe Keating and Lyndon Chester as accompanists.

One problem: the tour economics for a live performer, with travel, room & board, tour bus rental, equipment managers, etc., did not allow for salaries for the supporting cast. A veteran of street performing, Palmer's solution was to have The Danger Ensemble pass the hat (or rather, two burlesque boots) around the willing audiences. Supported generously during her modestly priced shows, The Danger Ensemble performers made more money through voluntary donations than they would have on salary.

Palmer and her traveling team have also solicited donations-in-kind: food, lodging, even driving errands such as last-minute deliveries of boxes of newly minted CDs and band merchandise ("merch") to tour stops, in exchange for tickets, merch, and time with the performers. Her advance teams of fan volunteers distribute promotional posters and flyers, and a semi-organized group called The Brigade arranges amateur performance artists, such as living statues and costumed models, to greet concertgoers outside the clubs. Friends and fans appear as extras in her music videos.

Palmer, a prolific blogger and interview subject, has written openly about the business aspects of her occupation in a time of chaotic transition in the music industry. She believes voluntary patronage of artists of all types will become the new business model for working musicians, and she cautions new singers and bands that the rock band fantasy of simply showing up for a gig, getting paid, and leaving without fostering a close, continuing connection to the fans is no longer possible.

Fortunately, the Internet bolsters that connection. Palmer's close, caring, and technology-enabled relationship with her fans -- an intentional decision from the early days of The Dresden Dolls -- has yielded her the goodwill, social capital, and email lists that allow her to go to her audience repeatedly for voluntary, tangible support. Will it last? Is artist patronage, not by foundations but by average fans, a sustainable business model?

In "Christopher Lydon", an early Dresden Dolls song, Palmer's girl protagonist torches for the mellifluous NPR interview host, who ignores her on-air declaration of love for him. Jilted, she sings, "Thank you for everything, but I'm not listening anymore/Nor do I plan to contribute to NPR!" If Palmer's right about the new role of patronage at all levels of the music industry, there's a lesson in that lyric for all working musicians.


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