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Philosophies of Baseball Team M anagement Pages 6-10 ILR Sports Business Society 2015-2016 Ü I

£ For more information on % Sports, Inc. or the ^ ILR Sports Business Society, £ please contact Advisor Kevin Harris > at [email protected].

Executive Board

Magazine Staff ggi Advisor Kevin Harris yfc, Co-President Sarah Gilman '16 Editor-in-Chief Jason Lefkovitz "16 Co-President Ethan Cramer Gibb Layout Editor Sabrina Smith #18 i wh President of Magazine Jason Lefkovitz '16 Associate Editor Karthik Sekharan '17 VP of Magazine Karthik Sekharan "I LVr/fer Natalie Allen'19 m President of Radio Ben Denson "16 SK- Wr/fer Stephen Driscoiri8 Jjq* VP of Radio Ben Gilman '18 M/r/fer Ben Gershenfeld '19 President of Blog Adam Malz '16 ^ Writer Jamie Hill'18 tßu VP of Blog Skyler Kanfer '17 tVr/fer Damian O'Sullivan "17 VP of Events Josh Klein '18 £ Writer Sam Robiner'19 VP of Operations Matthew Hakimian r^j Writer Madeleine Roglich '18 ^ W. Writer Daniel Solomon '19 Co-VP of Marketing Sabrina Smith '18 MJ* Co-VP of Marketing Alex Zalesne '18

f y+if The ILR Sports Business Society, an independent student ^ Director of Finance Evan Lefkovitz '16 *"j- - organization located at Cornell University, produced and is Director of Career | responsible for the content of this publication. This publica- t'on was not reviewed or approved by, nor does it necessarily Services Alicia Glick'17 express or reflect the policies or opinions of, Cornell University or its designated representatives. Volume VIII, Issue 1: Fall 2015

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A tv 'iV v vl & i g i v Also Featuring /V SrT jJ■TV v ;> P u -.t ml- jci ! Will the WNBA Stay Afloat? By Madeleine Roglich Page 4 Current Philosophies Final Destination: Los Angeles - of Baseball Team The Possibility of Relocation in Management the NFL By Stephen Driscoll Page 11 The NBA's New Fashion Statement: Corporate Logos on MAJOR LEAGUE BASEBALL Uniforms? Out with the Old, in with the By Ben Gershenfeld Youth: Why MLB General Page 13 Managers Should Build Their The NHL's Fork in the Road: Teams Around Young Talent Sin City or Quebec City By Daniel Solomon By Natalie Allen Page 6 Page 15

Wins for Sale: A Look at The Story of Dude Perfect: the Price of a Win in Major Redefining What it Means to be League Baseball a Professional Athlete By Jamie Hill By Sam Robiner Page 17 Page 8 Legal Concerns in the Booming Industry of Daily Fantasy Sports By Damian O'Sullivan Page 19 Will the WNBA Stay Afloat?

Madeleine Roglich ‘18 “becoming interested in the WNBA is not airtime to women in 2009 (1.4 percent of so simple as finding value in it. Enjoying all coverage) than it did a decade earlier The Women’s National Basketball the league [on a consistent basis] requires (2.2 percent).9 This lack of coverage also Association (WNBA) was formed in 1996 attention that many sports fans may already extends beyond sports news shows to tele­ and began play in June of 1997 after it was be giving to the NBA, the NFL, college casts of live games. Specifically, “[only] approved by the National Basketball Asso­ football, and the other more established 30 live [WNBA] games [are] televised ciation (NBA) Board of Governors.1 In the options.”7 Thus, unless a WNBA fan has a each season on ABC, ESPN, ESPN2, and mind of the Board, the new league would vested interest in, or specific allegiance to, WatchESPN.”10 In contrast, under the mas­ be a great venture for the NBA: NBA ex­ a certain team or a specific player, said fan sive new TV agreement between the NBA ecutives were tapping into the previously may simply not attend games. The only way and ESPN/Tumer to take effect at the start unexplored market that was professional to attract such casual fans, then (and thus of the 2016-2017 NBA season, the NBA women’s basketball in the U.S, where more deviate their attention from other sports will have 164 nationally televised games and more women were playing sports such leagues) is to make the WNBA fan expe­ annually.11 Although one may point out that as basketball.2 However, the WNBA lasted rience worthwhile and memorable. How­ the sheer difference in scope between these 3 seasons before it already found itself sur­ ever, even a cursory observation of WNBA two leagues could explain this disparity, I rounded by red ink.3 Yet this trend seemed arenas across the country will tell you that assert that the disparity is still important poised to turn around, for keen observers the WNBA has not created such experienc­ to acknowledge because it illustrates the of the WNBA’s marketability acknowl­ es. For instance, compared to other sports WNBA’s struggle for adequate exposure to edged a burgeoning pool of prospective leagues with more money, the WNBA does sports fans. fans. Specifically, “the growing popularity not have as many promotions, such as The WNBA also currently suf­ of women’s college basketball, as well as giveaways and in-game entertainment, for fers from a “talent drain,” as some of the the growing number of women who have attendees.8 Without best players in the league played sports, [had] helped create an audi­ such extra engage­ low fan turnout have recently been find­ ence that didn’t exist in the league’s early ment, fans could ing better opportunities years.’’4 Unfortunately, this reversal of for­ reason that they are can undermine the abroad. For example, Di­ tune has not materialized, as the league’s better off watching energy and intensity ana Taurasi, one of the the game on TV or, business struggles continue even today. that sports fans best all-around players in To begin, the WNBA has encountered even worse, watch­ the league, received $1.5 stagnant attendance at its games.5 This ing highlights after­ revel when million from her Russian problem has now perhaps even worsened, wards. Furthermore, attending a sporting team to sit out of the WN­ as the 2015 season featured the lowest at­ it is worth noting BA’s season this past sum­ tendance rate in the history of the league.6 that low attendance event, which could mer. In contrast, ESPN re­ I believe that this trend can be partially ex­ could bring about dissuade even more ports that she makes only plained by the WNBA’s struggles to keep an additional down­ $107,000 as a member fans engaged while they’re simultaneous­ ward pull on future fans from coming to of the WNBA’s Phoenix ly attracted to competing sports leagues. attendance. Specifi­ the games in the fu­ Mercury.12 Surely, no one As stated by sports reporter Eric Freeman, cally, low fan turn­ would wisely turn down out can undermine ture.” Diana’s olfer from the the energy and in­ Russians. This issue of tensity that sports fans revel when attend­ retaining top talent could actually destroy ing a sporting event, which could dissuade the WNBA’s fan base altogether, possibly even more fans from coming to the games alienating even the most passionate fans in the future. who count on the league to showcase the In light of this, one may think that the best women’s basketball in the world. WNBA could instead find popularity Despite all of these challenges, I would through the medium of television. How­ argue that the future is not necessarily ever, TV has really not been helpful either pessimistic for the WNBA, for there are in reaching fans, as the WNBA does not many things the league can do to stop the receive nearly as much coverage as other bleeding. To start, the league needs to be professional sports leagues. For example, more proactive in creating higher levels Photo courtesy of The New York Times according to a 2010 USC study, coverage of in-game entertainment and giveaways Even top WNBA players like Diana Taurasi of women’s sports has actually declined, earn less money to play in the WNBA in order to attract fans to the league. As than they do to play in other countries. with ESPN’s SportsCenter devoting less aforementioned, the WNBA is competing

4 Sports, Inc. Photo courtesy of Dave Schilling/Vice.com Such a plethora of empty seats is a common occurrence in arenas throughout the WNBA, a league struggling to attract fans to games. with other sports leagues for the attention Works Cited For You.” Deadspin. 6 Oct. 2014. of sports fans and thus needs to provide 1. “History - WNBA.” WNBA. 2015. 12. “Diana Taurasi’s decision to sit out should as enjoyable an experience as possible for 2. DeMause, Neil. “WNBA: Hoop Skills Not spark WNBA salary changes.” ESPN. 4 such fans. Second, in terms of media cov­ Enough for Women’s Teams.” AlJazeera Feb. 2015. erage, the league must discover additional America. 29 Aug. 2014. 3. DeMause, Neil. “WNBA: Hoop Skills Not ways to get their content to their audience. Enough for Women’s Teams.” AlJazeera For instance, paying for more games to America. 29 Aug. 2014. be live-streamed is a legitimate possibil­ 4. DeMause, Neil. “WNBA: Hoop Skills Not ity in this era of “cord-cutting.” Also, the Enough for Women’s Teams.” AlJazeera league can try and partner with particular America. 29 Aug. 2014. news stations to receive more primetime 5. “Attendance Project: WNBA.” Kenn.com news coverage that vast amounts of people Blog. 2015. will see. Furthermore, expansion of social 6. Lombardo, John. “With 20th season ahead, media is always a great way of reaching league sees attendance, ratings drop.” Sportsbusinessdaily.com. 21 Sept. 2015. out to a younger, more active generation 7. Freeman, Eric. “Adam Silver admits comprised of more female athletes than WNBA is less popular than NBA thought the past. Finally, the WNBA needs to find it would be.” Yahoo! Sports. 17 Sept. 2015. ways to increase salaries so that they could 8. Kiley, David. “WNBA is a League of Their outcompete other women’s professional Own...And Mine Now.” Bloomberg.com. basketball leagues for top talent. It will ob­ 16 Aug. 2005. viously not be easy to find the money for 9. Messner, Michael and Cooky, Cheryl. such drastic increases in salary, but prior­ “Gender in Televised Sports.” University itizing the issue can compel teams and the of Southern California Center for Feminist Research. Jun. 2010. league to be innovative in uncovering new 10. “ESPN, WNBA Extend Agreement.” revenue streams. With such changes, I be­ ESPN. 28 Mar. 2013. lieve that the WNBA has a fighting chance 11. Draper, Kevin. “What The NBA’s Insane Madeleine Roglich is a sophomore in the Dyson to be financially successful in the long run. New TV Deal Means For The League And School. She can be reached at [email protected].

Fall 2015 5 Out with the Old, in with the Youth: Why MLB General Managers Should Build TheirTeams Around Young Talent Daniel Solomon ‘19 142 games for the ninth time in his career. However, after his David Steams, the recently age-29 season, Bench never hired General Manager of the topped even 130 games played Milwaukee Brewers, has said in a single season. By his age- that a franchise “can’t build a 34 season, his OPS+ (which team through free agency[...] measures a hitter’s production The trick is to develop a pro­ compared to the league average cess and a system that allows of 100) was 98.3 Similarly, on you to consistently generate the mound, the great Roy Hall- that [prospect] pipeline, even as aday experienced a decline. For you are competitive at the Ma­ a portion of his career, “Doc” jor League level.”1 It is diffi­ was considered the best pitch­ cult to know when to invest in a er in baseball. He won two Cy Major League Baseball player. Young Awards, started multiple Players typically hit the open All-Star games, and even threw market after their peak years, a post-season no-hitter. He was fresh off putting up gaudy sta­ so good that the Phillies chose tistics. But in the modem day, to trade for him over retaining when exorbitant contracts are Cliff Lee, a man who nearly Photo courtesy of hngn.com annually handed out to the top pitched them to a World Series David Stearns joins a bloc of MLB general managers that prefer free agents, I assert that general title. However, although Halla- building their teams around young talent. managers should put their focus day was consistently dominant helps. And it’s not only because inant until 2011, when these on acquiring young talent. through his age-34 season, top­ of aging players’ declining pro­ players were all 31 or 32 years It is well documented that ping 200 innings eight times duction: by investing heavily in old. But after that, they simply player ability declines with and playing only two seasons older players, teams also limit broke down. Utley dealt with age. According to a study by with ERAs of over 4.00, Fa­ their abilities to trade for pros­ numerous back injuries. Ryan Mitchel Lichtman of Hardball ther Time eventually (and per­ pects, to promote young and Howard infamously tore his Times, players haps inevitably) talented players, and to sign Achilles tendon, which sapped peak between “It is well caught up with him. other players to supplement a his power and precluded him 26 and 28 years Halladay was a be­ competitive core. from even staying on the field old, and begin documented low average pitch­ Recent historical examples for much of the past four years. drastic declines that player er in his final two illustrate the flaws in investing Before getting traded to the at around 33 years: his ERA+ (a heavily in older players. Look Los Angeles Dodgers, Rollins years old.2 And ability declines statistic that mea­ no further than the Philadelphia had become a below-average yet such ravag­ with age. ” sures a pitcher’s Phillies, a team that finished hitter, with his batting average es of the thirties ballpark-adjusted last in the National League peaking at a paltry .252 since are not limited to fringe play­ performance compared to that East for the second straight 2011.5 Ruiz has also been a ers: even great players experi­ of the league average of 100) time this year after winning below-average hitter accord­ ence declines due to injury or dropped to 90 and 55 in his fi­ the World Series as recently ing to OPS+ in two of the last production. Take, for example, nal two years respectively.4 as 2008. In that time span, the three seasons.6 However, at the Johnny Bench, who is arguably Therefore, while teams can team’s core remained largely same time, their salaries have the greatest hitting catcher in build success around a core of the same, with players such as risen: Utley earned $15 million baseball history - an MVP, a players, the key to maintain­ Jimmy Rollins, Chase Utley, in his last year with the Phillies leader on Cincinnati’s Big Red ing success is knowing how Ryan Howard, and Carlos Ruiz as opposed to the $7.5 million Machine, and a force behind the long to keep them. Signing all all playing on the team until as he earned in 2008,7 Howard plate. Yet, like most players, he members of a dominant team to recently as 2014. The oldest of earned $15 million more this had two careers, one before the long-term contracts does more these players was just 29 during past year than he did 7 years age of 30 and one after. In his to damage a franchise’s abil­ the Phillies’ championship run, ago,8 Rollins was paid $5 mil­ age-29 season, Bench played in ity to stay competitive than it and the team remained dom­ lion more,9 and Ruiz (who was

6 Sports, Inc. making the Major League minimum in Championship Series four times. This in­ sive imports, and the 2013 Red Sox, who 2008) earned $8,500,000 in 2015.10 Clear­ cludes three straight years after their for­ resembled more of a cluster of aging vet­ ly, then, the Phillies have rewarded past be­ mer superstar Pujols’s departure. erans who all had highly productive cam­ havior instead of paying their players based The Rays, meanwhile, have made a paigns. But, for the most part, the evidence on expected future production. A dominant habit of trading players one or two years seems to indicate that baseball is a young team rotted to the point where it is now a before free agency in order to capitalize on man’s game. Most of the recent champions “cellar dweller,” desperately trying to re­ trade returns. Following the 2010 season, - the Giants and the Cardinals, specifically build its farm system and to develop a new the Rays traded Matt Garza to the Cubs. As - have been founded on homegrown talent. core of players. Unfortunately for them, in a result of the deal, they have Chris Archer, And this year’s champion was no different: an effort to build a contender, they’ve dealt a pitcher who was a fringe contender for the Kansas City Royals epitomize the con­ away promising players such as Travis this year’s Cy Young Award and someone cept of building from the farm up. Thus, d’Amaud, Carlos Carrasco, Jonathan Sin­ who has emerged as a true ace. They’ve general managers should pay for a player’s gleton, and Jarred Cosart." also signed him to a contract that gives rise, not his fall. Instead, teams should model them­ the team control though his age-33 season selves after the St. Louis Cardinals and the at no more than $8.25 million per year.17 Works Cited Tampa Bay Rays. For the most part, these Additionally, the James Shields trade that 1. Adam McCalvy, Brewers introduce Stea­ teams buy players’ 20s and let other teams netted them Wil Myers and the subsequent ms as new GM, Major League Baseball, buy their more expensive 30s. They are cal­ deal that brought in Steven Souza, Jr. were 11/21/2015 2. Mitchel Litchtman, How do baseball play­ culated in whom they keep and whom they brilliant. The team managed to trade an ex­ ers age? (Part 1), The Hardball Times, let go. And they make savvy trades that al­ pensive pitcher that would be impractical to 12/21/2009 low them to remain competitive. Take, for include in their long-term budgetary plans 3. Johnny Bench Player Page, Baseball Ref­ example, what the Cardinals did after their (Shields) for a Rookie of the Year Award erence, 2015 2011 championship. They let Albert Pu­ winner (Myers). Then, following a down 4. Roy Halladay Player Page, Baseball Ref­ jols, their most valuable season from Myers, they suc­ erence, 2015 player and one of the best while teams cessfully shipped him to San 5. Jimmy Rollins Player Page, Baseball Ref­ players in team history, can build success Diego in a deal that brought erence, 2015 leave via free agency. In­ in an above-average defen­ 6. Carlos Ruiz Player Page, Baseball Refer­ stead of giving him $240 around a core of sive outfielder with power at ence, 2015 7. Chase Utley Contract, Salary Cap Details million,12 they paid Yad- the plate and more controlla­ players, the key and Breakdowns, Sportrac, 2015 ier Molina $75 million ble years than Myers (Sou­ 8. Ryan Howard Contract, Salary Cap Details over five years,13 pitcher to maintaining za). By avoiding long-term and Breakdowns, Sportrac, 2015 Adam Wainwright $97.5 success is knowing deals, they haven’t had to 9. Jimmy Rollins Contract, Salary Cap De­ million over five years14 pay a declining Carl Craw­ tails and Breakdowns, Sportrac, 2015 (a bargain compared to how long to keep ford, Matt Garza, or Melvin 10. Carlos Ruiz Contract, Salary Cap Details the 7 year, $210 million them. ” Upton, Jr. All of these play­ and Breakdowns, Sportrac, 2015 contract awarded to top ers are now burdens to their 11. Rob Neyer, The Hunter Pence trade just keeps on giving (to the Astros), Fox Sports, pitching free agent Max Scherzer15), and new teams. Furthermore, when the Rays 7/2/2014 they signed Allen Craig to an affordable do invest in long-term contracts, they do so 12. Albert Pujols Contract, Salary Cap Details and tradable five-year, $31 million con­ at discounted rates. They bought out Evan and Breakdowns, Sportrac, 2015 tract.16 When Craig’s production faltered, Longoria’s 20s, and subsequently signed 13. Yadier Molina Contract, Salary Cap De­ his contract gave the team the flexibili­ him to a relatively team-friendly six year, tails and Breakdowns, Sportrac, 2015 ty to trade him for John Lackey, who has $100 million extension,18 an inexpensive 14. Adam Wainwright Contract, Salary Cap proved to be a great addition to the Cardi­ rate for an elite third baseman. As a result Details and Breakdowns, Sportrac, 2015 nals’ pitching staff. When they needed a of such strategies, the Rays have made the 15. Max Scherzer Contract, Salary Cap Details shortstop, the Cardinals’ lack of massive postseason in four of the last eight seasons, and Breakdowns, Sportrac, 2015 16. Allen Craig Contract, Salary Cap Details commitments allowed them to sign Johnny an incredible rate for a team in such a small and Breakdowns, Sportrac, 2015 market. Peralta to a four-year deal. And, courtesy 17. Chris Archer Contract, Salary Cap Details of their hesitancy to give big contracts, It’s not a perfect equation, but winning and Breakdowns, Sportrac, 2015 they haven’t blocked players with potential teams generally field players younger than 18. Evan Longoria Contract, Salary Cap De­ to contribute in the majors. Simply look 30. According to Bo Mitchell of Sporting tails and Breakdowns, Sportrac, 2015 at staples of their starting rotation: Carlos News, of the 26 World Series winners be­ 19. Bo Mitchell, Statistically speaking, Angels Martinez, Michael Wacha, Jaime Garcia, tween 1986 and 2011, the average age by and Red Sox have championship character­ Lance Lynn, and Adam Wainwright are position was above 30 for only third base istics, Sporting News, 4/31/2012 all productive homegrown players. Only and designated hitter, the latter of which is Wainwright is older than 30. Following this often reserved for aging players no longer method, the Cardinals have successfully capable of effectively playing the field.19 reached the playoffs in six of the last sev­ Yes, there are exceptions, such as the 2009 Daniel Solomon is a freshman in the ILR School. He en years, making it to the National League Yankees, who were built largely on expen­ can be reached at [email protected].

Fall 2015 7 Wins for Sale: A Look at the Price of a Win in Major League Baseball

Sam Robiner ‘19 stead skip ahead to the important part. Es­ It’s not necessarily a number that represents sentially, WAR calculates how many wins a how much a given player deserves to be “Your goal shouldn’t be to buy players, certain player’s performance is worth com­ paid or how much a team should pay him. your goal should be to buy wins. ” - Jonah pared to a minor league-level player that It’s certainly not meant as a predictor for Hill/Peter Brand, Moneyball could be bought on the free market for the how much a player is going to earn in free major league minimum salary ($507,500 in agency. Instead, as Dave Cameron writes, A lot of things used to cost less. In 2015).6 the question that cost-per-win answers is 1996, the year I was bom, you could buy One of the valuable things about WAR, “how much would you expect to have to a gallon of gas for $1.23, a dozen eggs for at least in theory, is that it gives us the op­ pay to replace this performance in free $1.31, and a year of tuition at an average portunity to compare the contributions of agency if you knew that you were going four-year, private university for around players regardless of their position or role. to get this level of value exactly?”7 Most $12,800.12 You could also buy a field-box All the factors that would ordinarily make importantly, it forces front offices to detach ticket at Yankee Stadium for $25 to go comparing a closer to a right fielder unfea­ themselves from the medieval philosophy watch a team that paid somewhere around sible are accounted for - again, theoreti­ that they have to buy a particular type of $668,207 for each win.3,4 cally - by WAR. Thanks to this tidy little player in order for them to be a good team. The majority of even avid baseball fans metric, we can say confidently that closer Once teams embrace this idea, it opens are probably not familiar with that last one, Andrew Miller (2.0 WAR) was more valu­ up all sorts of possibilities in terms of ros­ so let me back up a bit and explain what able to the 2015 Yankees than right-field­ ter construction, as GMs don’t have to re­ exactly that means and what exactly Jonah er Carlos Beltran (1.9 WAR). Awesome, place lost WAR with identical production Hill meant by that Moneyball quote. right? from a single player who happens to play Since the 1962 season, the MLB sched­ Now that we’ve established a universal the same position or hit in the same spot ule has included 162 regular-season games system for comparing player performance, in the lineup. Instead, they can replace the for each team. The general goal for teams we can liken signing free agents to paying lost production by shopping around for the is to win around 89 or 90 of these games for an expected number of wins. best deals, allocating money however they to qualify for one of the five (since 2012) The first question to consider is what want to try to restock their 25-man roster. playoff spots in each league.5 player cost-per-win data actually tells us. The 2012 Cardinals provide a good exam- Where do these 89 or 90 wins come from? They come from the performance of players, who can be acquired in a variety of ways. Most often, they’re drafted and developed by the club, swapped as part of a trade, or signed to contracts in baseball’s closest approximation of a free market en­ vironment: free agency. The current era of sabermetrics and sta­ tistics has brought about a paradigm shift in how general managers go about obtain­ ing these wins. Players are no longer seen primarily as a number of home runs, RBI, and stolen bases but as a quantitative mea­ surement of value in terms of the player’s contribution to scoring a run or earning a win. (There are thousands of articles on fangraphs.com and other sites about in­ teresting metrics like wOBA, UZR, and wRC+, but I promise to keep it relatively basic here.) One of the most important sta­ tistics for measuring player value is Wins Above Replacement (WAR). In order to keep my promise, I’ll spare Photo courtesy of mlb.com you the gory details of the dizzyingly com­ Some pundits erroneously claim that it is categorically unwise for teams to offer plex algorithms that calculate WAR and in­ superstar players like Clayton Kershaw such exorbitant contracts.

8 Sports, Inc. pie. After the Angels and their into a single roster spot. People $10-15 million players that vidual player is a cost-efficient $254 million lured Albert Pujo­ who put stock in this will often are good but won’t get top-tier addition to his existing roster. ls, one of the greatest hitters of pontificate that a six-win player money or give top-tier produc­ On the other hand, cost-per-win his generation and a perennial costs more than three two-win tion. Bottom line: if you’re the on an entire team basis comes 8-WAR contributor, Cards GM players, so front offices can ex­ Dodgers or the Yankees and into play more for FanGraphs John Mozeliak had the opportu­ ploit this inefficiency by avoid­ you can swing long-term con­ and ESPN writers to comment nity to reel in fellow power-hit­ ing these Stanton-esque mega­ tracts worth somewhere close on a GM’s performance or on ting free agent first baseman deals. to a quarter of a billion dollars, general salary trends around the Prince Fielder. But Mozeliak, Some of this makes a it can be worth the investment. league. who has guided his team to the decent amount of logical sense, Remember that statement when With that said, as far as second-highest win total in all but, as Matt Swartz and Dave Mike Trout hits free agency in teams go, there are no real sur­ of baseball since he took over Cameron prove at length on five years. prises about which teams have in 2008, looked beyond this FanGraphs.com, the data just None the lowest cost- simple substitution, preferring doesn’t support the premise.910 of this as far as teams per-win numbers. to replace Pujols’ WAR by sign­ Yes, Clayton Kershaw has the is to say go, there are For example, the ing Carlos Beltran to play right richest contract ever given to that teams 2015 Astros were field and by locking up Yadier a pitcher, by far. The Dodgers should no real the second-thrift­ Molina behind the plate. The gave him $30 million this year. start load­ surprises about iest team in the two combined for 9.4 WAR in But there he was, leading the ing up on league, spend­ 2012 without the long-term risk pack again with an 8.6 WAR." $ 2 0 0 + which teams have ing $71,951,200 of Pujols or Fielder.8 No matter how you calculate million the lowest on their 86-win, Sabermetricians in all 30 cost-per-win - and there are contracts, playoff-bound MLB front offices have been plenty of ways to calculate as that’s cost-per-win team.13’14 Also, searching for a philosophy that it - that production is actual­ not al­ numbers.” this was not a best capitalizes on the market ly a bargain at $30 million. ways the team that won inefficiencies of the game for Check out the data from Table right move for a team (Moze­ because of its richest play­ some time now. One of the ma­ 1 below, compiled by Swartz, liak did just fine without Pujols ers: the top 52% of that pay­ jor debates surrounding player showing cost-per-win values or Fielder). However, no GM roll accounted for only 14% cost-per-win is whether or not of players in different contract with a decent amount of cash of the team’s WAR.15 Instead, teams get as much bang for tiers across multiple seasons.12 should categorically shun A-list players like George Springer their buck by investing heavily The data supports the idea that free agents as bad investments. ($512,900/3.7 WAR), Car­ in pricy superstars as they do by superstars, in general, cash I feel obligated to make a los Correa ($507,500/3.3 distributing cash more evenly checks that are relatively rea­ quick side note here about the WAR), and Dallas Keuchel among free agent signings. sonable, proportional to their accuracy of specific cost-per- ($524,500/6.1 WAR) provided There is some sentiment production. Evidence for this win (CPW) values: for a variety Houston tons of astoundingly around the game that the Mi­ can be found in the far-right of reasons, the actual numbers cheap production.16 guel Cabreras, the Clayton Ker- column, which shows that, be­ should be taken with a grain of This is possible because the shaws, and the Giancarlo Stan­ tween 2007 and 2011, players salt. Different methods of cal­ MLB compensation system is tons of the world are overpaid in the most expensive salary culating CPW vary so drastical­ designed for young players to for their production due to the tier almost exactly matched the ly that the numbers themselves be grossly underpaid. The Col­ scarcity of their caliber of play­ average cost-efficiency for all should only be used to make lective Bargaining Agreement er and the benefit of consolidat­ players. In fact, the worst deals comparisons, such as the chart between the owners and players ing a massive amount of WAR seem to be for the mid-level, displayed below, within one stipulates that most players ar­ method of calculation. en’t afforded the opportunity to Groups 2007- Another important note to freely negotiate with all teams of FA- 2007 2008 2009 2010 2011 make is the distinction between on the open market until they 11 eligible $/WAR $/WAR $/WAR $/WAR S/WAR individual player cost-per-win have spent six years in the big $/WAR Players and entire teams’ cost-per-win. leagues. Therefore, it’s ideal to The reason I’ve focused more be able to stock up on pre-free All $4.9 $5.4 $5.6 $5.1 $6.1 $5.4 on player CPW until now is that agency talent, like the Astros >$15MM $4.1 $5.2 $5.9 $6.1 $6.3 $5.6 it’s much more useful for front and Royals, to maximize the $10 $11.4 offices to try to build a team amount of highly cost-effi­ 15MM $4.7 $5.7 $6.9 $8.2 $6.5 by piecing together individu­ cient production on your roster. $5- al players’ production. When Surely, the more Carlos Correas $5.9 $6.5 $5.3 $3.9 $4.8 $5.2 a GM looks at a prospective you have, the more easily you 10MM free agent signing, his job is can afford to make mistakes S0-5MM $4.5 $4.1 $3.6 $2.6 $3.4 ! $3.6 to evaluate whether that indi­ like the Astros, who paid Scott Table 1

Fall 2015 9 Feldman $10 million for a single win above ury tax on the most cash-flushed teams, as Works Cited replacement. opposed to the more prevalent salary cap 1. “1996 Economy / Prices,” 1990sflashback. As I briefly mentioned earlier, another system, which sets a more strictly enforced com. application for team CPW data is to ana­ limit on annual payrolls in other American 2. Karen W. Arenson, “College Tuition Rates lyze general salary trends over the past sports. Show Steady Growth, Report Says,” The New York Times Online, September 26, several decades. Remember those 1996 In fact, some fans may be tempted to 1996. Yankees I mentioned? That team sport­ question, in a league that places no severe 3. Business o f Baseball Spreadsheets and ed a $61,511,870 payroll.17 They had the constraints on spending, whether it even Documents, roadsidephotos.sabr.org. highest cost-per-win and the highest to­ matters if their team is good at finding wins 4. Benjamin Kabak, “The Economics of Yan­ tal payroll in the MLB in 1996 (by more below market value. After all, how many kee Tickets,” riveraveblues.com, March than 10%), despite 3.3 WAR in dirt-cheap Yankee fans complained in 1996 when 14, 2008. production from a rookie shortstop named their exceedingly pricey team won the 5. Cork Gaines, “What it Takes to Make the Derek Jeter.1819 World Series? Probably none. Playoffs in Baseball,” Business Insider, Two decades later, these total payroll But even the GMs in large markets April 21, 2011. 6. “Major League Baseball: Minimum Player and team CPW numbers would rank far like L.A., New York, and Boston don’t ac­ Salary 2003-2015,” statista.com, 2015. below the lowest in the league. Only the tually get blank checks from their owners. 7. Dave Cameron, “The Dollar Value of a seven poorest teams fall short of nine-fig­ All owners are businessmen, and, if I can Win,” FanGraphs, December 4, 2009. ure payrolls.20 Even if New York’s 1996 generalize for a moment, all businessmen 8. 2012 Cardinals Statistics, FanGraphs. value is adjusted for inflation, it’s still only share a certain partiality for money. While 9. Dave Cameron, “Linear Dollars per Win, a third of the 2015 Dodgers’ staggering it’s true that teams like Tampa Bay and Again,” FanGraphs, November 4, 2011. $314,168,414 payroll.21 Oakland may have to be a little craftier to 10. Matt Swartz, “A Retrospective Look at Graph 1 below, with player CPW data extract their 89 wins from bargain-bin free the Price of a Win, Part Two,” FanGraphs, for free agent signings dating back to 1996, agents and homegrown, dirt-cheap talent, February 15, 2012. 11. Clayton Kershaw Statistics, FanGraphs. shows the trend.22 the reality is that baseball operations staffs 12. Matt Swartz, “A Retrospective Look at Forbes pins this massive spike in free from coast to coast are ballooning in size, the Price of a Win, Part Two,” FanGraphs, agent money on a variety of factors, in­ with the hopes of stretching each dollar all February 15, 2012. cluding “baseball’s unmatched inventory the way to a championship. Dollars may 13. 2015 Astros Payroll, Cot’s Contracts. of live, DVR-proof content, real estate de­ not be as stretchy as they were a couple of 14. Barry Petchesky, “2015 Payrolls And Sal­ velopment around stadiums, higher profit­ decades ago, but at least now we’re all ask­ aries For Every MLB Team,” Deadspin, ability (which reduces the need for capital ing the right questions about what it takes April 1, 2015. calls), and the incredible success of Major to buy a win. 15. 2015 Astros Statistics, FanGraphs. League Baseball Advanced Media, the 16. Ibid. 17. Business o f Baseball Spreadsheets and sports’ digital arm that is equally owned by Documents, roadsidephotos.sabr.org. the league’s 30 teams.”23 I would add that 18. Business of Baseball Spreadsheets and it’s also a result of baseball’s somewhat Documents, roadsidephotos.sabr.org. unique system of a relatively lenient lux­ 19. Derek Jeter Statistics, FanGraphs. 20. MLB Payrolls, Sportrac.com. 21. Ibid. 22. Lewis Pollis, “How Much Does a Win Re­ ally Cost?” SB Nation, October 15, 2013. 23. Mike Ozanian, “MLB Worth $36 Billion As Team Values Hit Record $1.2 Billion Average,” Forbes, March 25, 2015.

Sam Robiner is a freshman in the College of Arts and Sciences. He can be reached at [email protected].

10 Sports, Inc. Final Destination: Los Angeles - The Possibility of Relocation

in the NFL Photo courtesy of sportstechie.net Although Qualcomm Stadium needs some major renovations, the City of San Diego has been hesitant to provide the necessary funds. Stephen Driscoll ‘18 and a new stadium would cost reduce a planned tax rebate to ested in building a stadium in • ------upwards of $1 billion.4 close the budget gap. order to revitalize a struggling Since 1995, Los Angeles Second, legislators may be Finally, the reluctance to neighborhood of the city/coun- has been without a National unwilling to fund stadiums due build a new stadium is only ty. Many cities, such as Cincin­ Football League (NFL) fran­ to the debt the city (and its re­ compounded when the city/ nati, Baltimore, and Los Ange­ chise. However, the future spective county) usually incurs county government has not les, have used sports complexes prospects of football in LA to fund the projects. For in­ yet relinquished its debt from as centerpieces of redevelop­ have suddenly changed, as the stance, in March of 1996, the a prior stadium investment, as ment plans targeted at specific San Diego Chargers, St. Louis citizens of Hamilton County is the case in Alameda County neighborhoods.5,1314 Rams, and Oakland Raiders are (Cincinnati) approved a half a (Oakland), which still holds Therefore, it seems that the all considering relocation there. percent increase on their sales debt from a stadium renovation Chargers, Raiders, and Rams This begs the obvious question: tax to fund the building of a new in 1997.'° would have a lot of leverage why are all of these teams so football and baseball stadium However, these doubts are in negotiations with their re­ eager to move to LA seemingly for their teams, the Bengals and still usually resolved, for, after spective cities over publicly out of nowhere? Reds respectively.5 Since then, weighing all such costs, many funded stadiums. Each of these For all three of these teams, the burden of these stadiums, cities do end up providing teams is on a year-to-year ba­ the desire for relocation stems financed primarily through significant public funding for sis with their respective leases, from concerns over their cur­ public funds, has sunk the city sports stadiums." The reason allowing them, as the current rent stadiums. What compli­ under the proverbial mountain cities pay for these stadiums tenants, the opportunity to ne­ cates the situation is that, in all of debt. In 2015, for example, is largely twofold. First, there gotiate for concessions such three of these cities, the owner Hamilton County spent around is surely a set of incentives for as stadium renovations and of the arena is not a compa­ $53 million on servicing the state and city governments to replacements in their current ny but rather the city govern­ stadium debt and operating try to bring a team to their area cities. At the same time, with ment.1,2’3 This phenomenon costs.6 These costs represented and keep it there. Americans the inherent flexibility of the could theoretically complicate around 6% of expenditures for love sports, and their politicians current year-to-year contracts, stadium negotiations, for cities the county, a significant propor­ enjoy the prestige that a sports the teams may also consider have a lot of reasons to be skep­ tion for something that numer­ franchise moving to a different tical about stadium construc­ ous economists agree produces brings.12 “For all three of city altogether.151617 tion and renovation. no real economic benefit (i.e. Most impor­ these teams, the As articulated in the First, the sheer cost of the most stadiums sit empty for tantly, poli­ last paragraph, the enterprise is surely daunting for large portions of the year, gen­ ticians fear desire for threat to relocate cities. As an illustrative exam­ erate less return on investment the potential relocation could in turn hold a ple, the City of San Diego has than other projects, and, unlike backlash lot of weight in ne­ for the last twenty years been other developments, saddle the against them stems from gotiations with cities unwilling to significantly ren­ city with debt for extended pe­ if the team concerns over intent on appeasing ovate its current stadium, the riods of time).7,8,9 For Hamilton were to relo­ their sports-loving 48-year-old Qualcomm Stadi­ County, the combination of this cate because their current inhabitants. um, or build a new one for the debt and a sluggish economy of a govern­ stadiums. 99 In fact, such pre­ simple reason that desired ren­ forced the county to, among ment refusal dictable acquiescence ovations would cost between other things, increase property to provide funds for an arena. from host cities has occurred in $250 million and $353 million, taxes, sell off a hospital, and Second, a city may be inter­ the case of the Rams, as the city

Fall 2015 11 of St. Louis has offered over $388 million diums profitable in otherwise unprofitable Economics of Sports Stadiums,” Atlantic of public funding for the Rams’ stadium.18 markets.24 Specifically, when the city funds Magazine, September 7, 2012 However, the Rams apparently view the stadium construction and assumes owner­ 9. Dennis Coates and Brad R. Humphreys, advantages of moving to LA as more fi­ ship of that stadium, it ends up completely “Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, nancially lucrative than the lure of public subsidizing the costs of running the stadi­ and Mega-Events?,” Econ Journal Watch, money. First and foremost, the Rams have um while conceding 100% of the revenue September 2008 made a proposal calling for the construc­ generated during the football games, the 10. Matthew Artz, “Floyd Kephart submits tion of multi-use developments in Ingle­ most profitable events, to the team.25 Thus, final plan for Oakland Raiders stadium,” wood, CA, which may signal a new era of LA is an especially intriguing alternative: San Jose Mercury News, August 21, 2015 stadium construction.1419’20’21 The Rams it offers the potential for a profitable new 11. CBS Minnesota, “NFL Stadium Fund­ owner, Stan Kroenke, has partnered with stadium even without subsidization from ing Information: Stadiums Opened Since Stockbridge Capital Group, the primary the Los Angeles government. Again, as 1997,” December 2, 2011 developer of the adjacent 238-acre Hol­ aforementioned, the LA market is lucrative 12. Michael Powell, “Bucks’ Owners Win, at Wisconsin’s Expense,” New York Times, lywood Park, to propose a massive com­ in and of itself. August 14, 2015 plex with the stadium as the draw.22 This In conclusion, these possible moves to 13. Lauren Schuker Blum, “Downtown L.A. development will feature the construction LA are all still theoretical until they receive Goes From Gritty to Glitzy,” Los Angeles of homes, office buildings, malls, and oth­ NFL approval. Thus, there is still time for Times, April 10, 2014 er facilities to complement the stadium.20 the situations in all of these cities to resolve 14. Darrell Preston, Aaron Kuriloff and Rod­ Building in this way would allow for the themselves.25 However, with talks in all ney Yap, “Rebirth Eludes Baltimore team, in the words of Stanford economist three cities seemingly stalled, I would ar­ as Camden Reality Lags Promises,” Roger Noll, to “...be embedded in larger gue that it is becoming increasingly likely Bloomberg.com, November 25, 2013 commercial and residential projects, with that football will return to LA in the very 15. Sam Farmer, “San Diego Chargers Won’t Exercise Clause to Terminate Stadium the sports team being like an anchor tenant near future. Lease,” Los Angeles Times, December 16, at a shopping center.”21 In addition to this 2014 bold sports complex, the Rams are surely Works Cited 16. Matthew Artz, “Oakland Coliseum board also intrigued by various advantages of the approves Raiders lease extension.” San LA market in general, such as greater na­ 1. St. Louis Regional Sports Authority, stlrsa. Jose Mercury News, March 6, 2015 tional media coverage, a larger market for org 17. “Rams’ dome running out of money,” sponsorships and naming rights, and great­ 2. Oakland Alameda County Coliseum Au­ ESPN.com, June 11,2014 thority, oraclearena.com er stadium revenue from events other than 18. Darrell Preston and Tim Jones and James 3. The City of San Diego, sandiego.gov football games.23-24 Nash and Bloomberg, “How much will 4. Matthew T. Hall, “Architects aim to pre­ San Diego, St. Louis, Oakland pay to keep Meanwhile, the Chargers and Raiders serve Qualcomm Stadium,” San Diego NFL?,” The Chicago Tribune,” November have surprisingly dealt with the unwill­ Union Tribune, September 15, 2011 11.2015 ingness of San Diego and Oakland respec­ 5. Darrell Preston and Aaron Kuriloff, “Cin­ 19. Tim Logan and Angel Jennings, “Tax tively to provide enough public funding cinnati Stadiums Bury County Govern­ breaks do figure into NFL stadium plan in (or, in Oakland’s case, any public funding) ment in Debt,” Bloomberg.com, December Inglewood,” Los Angeles Times, January to build new stadiums. Apparently, these 17, 2013 12.2015 cities are cognizant of the various disad­ 6. 2015 Budget in Brief, Hamilton County 20. Tim Logan, “Stadium economics: How Ohio Government vantages of funding stadiums that were building a venue in Inglewood makes fi­ 7. Adam M. Zaretsky, “Should Cities Pay for discussed earlier in this article. But, re­ nancial sense,” Los Angeles Times, Febru­ Sports Facilities?,” Federal Reserve Bank ary 25, 2015 gardless of the reasons, it is clear that this of St. Louis, April 2001 21. Clifton B. Parker, “Sports stadiums do is a problem for the two franchises, for it 8. Pat Garofalo and Travis Waldron, “If You not generate significant local economic is city funding that makes their current sta­ Build It, They Might Not Come: The Risky growth, Stanford expert says,” Stanford News, July 30, 2015 22. Sam Farmer and Roger Vincent, “Owner of St. Louis Rams plans to build NFL stadium in Inglewood,” Los Angeles Times, Janu­ ary 5, 2015 23. Tim Logan, “In stadium financing game, Goldman Sachs dominates,” Los Angeles Times, May 23, 2015 24. Dan McSwain, “Are Chargers leaving? An­ swer is closer,” The San Diego Union-Tri­ bune, November 14, 2015 25. Arash Markazi, “A 16-year Rocky Rela­ tionship,” ESPN.com, February 5, 2011

Photo courtesy of latimes.com Stephen Driscoll is a sophomore in the ILR School. A virtual depiction of the Rams'proposed sports complex in Inglewood, CA. He can be reached at [email protected].

12 Sports, Inc. The NBA's New Fashion Statement: Corporate Logos on Uniforms?

Ben Gershenfeld ‘19 market, with 77.6% of its play­ over nine years from both Turn­ jersey, Magic Johnson’s purple ers coming from countries oth­ er Sports and ESPN - there are and gold #32 Lakers jersey, and The four major sports er than America.1 plans for how to split the mon­ Larry Bird donning his Celtic leagues in America - Major However, despite Ameri­ ey generated from sponsor ads green and white #33 jersey are League Baseball (MLB), the can sports’ global influence, on uniforms, a step that Com­ iconic examples of such imag­ National Basketball Asso­ international sports have not missioner Adam Silver calls es. Many people, even those ciation (NBA), the National adhered to the American sports “inevitable.”2 close to the business operations Football League (NFL), and tradition in one blatant regard- However, the move has met of the league, are against the the National Hockey League namely, corporate sponsors on staunch criticism from scores of decision to “take away from the (NHL) - have proven to be the uniforms. Interestingly, it seems people who are afraid that the authenticity of the uniform.”3 top leagues in the world in their that America has been the one game will Larry Miller, respective sports. And yet, all to conform within this context. become too the move has met who current­ four of these leagues are still Specifically, smaller American corporate staunch criticism ly serves as looking for new ways to max­ leagues like the NBA Develop­ and lose its president for imize profits. For instance, ment League (D-League), the traditional from scores of the Jordan America’s sports have looked Women’s National Basketball feel. As the people who are afraid brand and is to expand their brands globally. Association (WNBA), and Ma­ National the former The MLB frequently kicks off jor League Soccer (MLS) have Basketball that the game president of its season with a two-game se­ already incorporated ads onto Association will become too the Portland ries in Tokyo, Japan or Sydney, their uniforms. has worked Trail Blaz­ Australia. The NFL has plans in And now, the NBA has itself into corporate and lose ers, is not place to play games each year become the first major Amer­ the fabric its traditional feel.” only worried in England until at least 2020. ican sports league to put plans of Amer­ about losing The NBA held its first NBA in place to join the rest of the ican history and culture, the the authentic feeling of the jer­ Africa Game this past summer world in this surprisingly lucra­ images often associated with sey and the game overall but in an effort to showcase the tive revenue stream. In the new the game involve the jerseys is also afraid of hurting teams game’s talent in other areas NBA television deal that will of the league’s great players in smaller markets.4 According of the world. The NHL has a go into effect in 2017 - a deal and organizations. Michael Jor­ to Sports Illustrated, teams in strong hold on the international that pays the NBA $24 billion dan’s red and white #23 Bulls small markets like the Memphis

Photo courtesy of Getty Images NBA jerseys could soon resemble this brand-clad FC Barcelona uniform worn by soccer legend Lionel Messi.

Fall 2015 13 Grizzlies and Mil­ big reward. Works Cited waukee Bucks would “Baseball outfield Corporate advertise­ only bring in about fences and hockey ments have progressively 1. NHL International: Where players come $800,000, but teams become a part of sports. It is from and how much they make, The Hock­ in large media mar­ walls are tattooed impossible to go ten minutes ey News, 8 October 2014 kets like the Los An­ through a televised sport­ 2. John Ourand and John Lombardo, Jersey with slogans and Ad revenue part of the mix, Sports Busi­ geles Lakers and New ing event without a slew logos. It is thus ness Journal, 13 October 2014 York Knicks could of commercials. Baseball 3. NBA Executive Says Ads Coming To add up to $10 million not far-fetched to outfield fences and hockey Front Of Team Jerseys Despite Critics, to their bottom lines.5 walls are tattooed with slo­ ThePostGame, 8 April 2015 This would further the believe that gans and logos. It is thus not 4. ibid financial gap between uniforms will be the far-fetched to believe that 5. Report: Jersey advertisement revenue in­ franchises and would uniforms will be the next cluded in new TV deal, Sports Illustrated, thus perhaps exacer­ next destination for destination for these logos. 13 October 2014 bate the well-docu­ And when the NBA exe­ 6. NBA Executive Says Ads Coming To these logos. ” Front Of Team Jerseys Despite Critics, mented relative lack cutes its plans, I don’t think ThePostGame, 8 April 2015 of parity in the NBA (in the last 15 years, it’s crazy to presume that other sports will 7. ibid there have been 7 different teams to win an follow shortly thereafter. Calgary Flames 8. Lance Madden, Pros and Cons: Corporate NBA championship, compared to 9 in the president Brian Burke concurs that this de­ Ads on NBA Jerseys May Debut in 2013, NFL, 10 in the MLB, and 10 in the NHL). velopment is imminent in the NHL, and he Forbes, 20 July 2012 In response to such concerns, NBA does not like that prospect: “It’s sickening. 9. ibid Deputy Commissioner (and Cornell grad) I hate it. I hate it.”11 10. Kerry Eggers, Silvers lays plans to turn Mark Tatum assures fans of the game that Well, in contrast, I personally don’t NBA gold, Portland Tribune, 10 March the NBA will not rush into this big decision think it looks too bad at all. Imagine.. .“Qa­ 2015 11. NBA Executive Says Ads Coming To and that it will work because it is “widely tar Airways” and “Fly Emirates” on the Front Of Team Jerseys Despite Critics, accepted around the world.”6 In an effort chests of Lionel Messi and Cristiano Ron­ ThePostGame, 8 April 2015 to avoid penalizing small-market teams, aldo respectively,...“Coca-Cola” on LeB- the NBA will try to nationalize all of the ron James’ shoulder,...“Ford” on Alexan­ advertisements instead of localizing them der Ovechkin’s chest,...a golden arch next and creating variability between markets.7 to Tom Brady’s Patriot logo...“Visa” next And with just the sheer amount of revenue to the globally recognized Yankee logo... that the NBA could potentially gain, it is hard to turn down. Forbes reports that the NBA could make around $100 million in revenue per year from corporate ads on uniforms.8 With an estimated 450 play­ ers in the league, each player on average would generate $222,222 for the NBA,9 an amount certainly worth the small company name on a jersey. However, how can the NBA convince critics that the uniforms won’t lose their au­ thenticity? According to Adam Silver, fans of the game won’t even notice the ads. To prove this, he points to instances in the past where players wore ads on their jerseys with little to no flak from such critics. For example, he stated: “During the slam dunk competition on Saturday night of All-Star Weekend, all the contestants were wearing a Sprite logo on their jersey. It was fasci­ nating to me it got almost no attention.”10 I am inclined to agree with the Com­ missioner’s arguments, for these ads will surely not be comparable to NASCAR uni­ forms, which are covered in logos. Instead, there will likely just be a patch near the Ben Gershenfeld is a freshman in the ILR School. shoulder of the jersey, a small price for a He can be reached at [email protected].

14 Sports, Inc. The NHL's Fork in the Road: Sin City or Quebec City

Photo courtesy of globalnews.ca The recent completion of the Videotron Centre, a state-of-the-art facility, is one reason why Quebec City could be a very feasible destination for NHL expansion. Natalie Allen ‘19 refundable).1 as representatives from both cities make Phase two consisted of the two bid­ their pitches for expansion to the NHL’s The day the NHL hockey season ends ders providing the league with informa­ executive committee.4 These pitches are of in mid-June is a sad one for hockey fans tion regarding their projected markets and critical importance as they detail each city’s around the globe. The long 4-month break arena plans. A major factor that influenced specific business proposal, “from how they before a new season begins seems like an whether or not cities made a bid for creat­ will pay the expected $500 million expan­ eternity as the hockey world slows down ing a team was if they could build an are­ sion fee to the ways they’ll manage and ex­ and the NHL-promoted hashtag #IsItOc- na before a decision on expansion would ploit possible revenue streams.”5 toberYet? becomes ever more palpable. To be made.1 The publicly funded, recently As we wait for the third phase to un­ some hockey fans’ delight, the NHL had a built, 18,259-seat arena, Videotron Centre, fold, let’s play the role of the NHL and would be the hock­ busy summer as it took big steps in the ex­ Quebec City weigh the pros and cons of these two possi­ ey home for Que­ ble destinations. pansion process to possibly create a new must acknowledge team by the 2017-2018 season. bec City’s team. On the one hand, Quebec City’s brand This expansion process features three the issue of the The Montreal Ca­ new, high-tech rink, already worn in by a distinct phases. The first phase swiftly rising Canadian nadiern and Pitts­ sellout crowd, suggests that Quebec City burgh Penguins is ready and prepared for a team and will passed as Las Vegas and Quebec City dollar.” were the only two cities, out of a pool of recently wore in have no difficulty filling seats. Fans, long 16, to have their applications for expansion the arena during an exhibition match as a estranged from the Quebec Nordiques, approved by the NHL. Prospective Las preview of what the arena would look like their past hometown hockey team that Vegas team owner Bill Foley and the Que- in full force.2 Meanwhile, the Las Vegas was relocated to Denver in 1995, filled the becor, the force responsible for the bid in Arena is currently under construction, and stands during the exhibition match between Quebec City, were the only two able and its projected completion date is April of the Penguins and Canadiens in desperate willing to put up the required $10 million 2016.3 hope that hockey will soon return.2 down payment ($2 million of which is non­ The third phase is currently underway “Nice atmosphere, beautiful arena, that

Fall 2015 15 was a lot of fun,” Canadiens center David successful addition to the league. Faced with weighing the advantages Deshamais (who grew up around Quebec On the other hand, Las Vegas seems to and disadvantages of both cities, the NHL City and is one of many natives who hope be lagging behind, as its arena is still under is not likely to make a decision until the to see hockey return to their hometown) construction. However, this may not be a next owners’ meeting, which is set to take said.2 Proponents of expansion, such as concern, for the city held a season-ticket place in December.2 With many questions Habs coach Michel Therrien, believe Que­ drive where 13,500 season-ticket commit­ still left unanswered, it is possible that a bec City itself will drive the team to suc­ ments were secured.4 Surely, prospective decision could be pushed back even fur­ cess as it is “a city that has a lot of passion owner Bill Foley has not been discouraged, ther until after the 2015-2016 season. If so, for hockey.”2 claiming that there are passionate hockey hockey lovers would have another exciting However, despite such optimism, Que­ fans in Las Vegas that have “clearly demon­ and eventful summer to look forward to. bec City must acknowledge the issue of the strated that ‘Vegas Wants Hockey!’”4 rising Canadian dollar. The Canadian loo- Nevertheless, although the season-tick­ Works Cited nie “is on a downward trajectory against the et drive showed great promise for a hock­ American dollar,” which has raised ques­ ey market, the NHL executive committee 1. John Wawrow. Las Vegas, Quebec City en­ ter final phase o f NHL expansion process. tions regarding the drastic financial impact must decide whether or not Las Vegas can The Globe and Mail. August 21, 2015. of a new Canadian team.5 Not only would sustain a fan base for a hockey team. Ques­ 2. Pierre LeBrun. Quebec City’s fans, arena the $500 million expansion fee equate to tions have been raised by NHL executives impress teams ahead o f expansion pitch. more than $671 million in Canadian dol­ and fans around the league regarding the ESPN. September 29, 2015. lars, but the exchange rate may also “have “established hockey culture in the area.”5 3. Chris Peters. NHL expansion: Las Vegas, a crippling effect on [a Canadian team’s] There is also concern as to whether or not Quebec City reps meet with executive ability to pay salaries, which are due to hockey can compete for a market with the board. CBS Sports. September 29, 2015. players in American Funds.”5 In spite of city’s already established entertainment in­ 4. Greg Wyshynski. Vegas, Quebec City such concerns, former Canadian Prime dustry. Specifically, Las Vegas is a massive make expansion pitches to NHL exec com­ mittee. Yahoo Sports. September 29, 2015. Minister and Quebecor VP Brian Mulroney tourist city, which has resulted in the city 5. Allan Muir. Las Vegas, Quebec City move has no doubt in his mind that Quebec City facing rejection “by major league sports in one step closer to NHL expansion dream. “can handle the team.”4 It is now up to the the past because of the pervasive presence Sports Illustrated. September 20, 2015. NHL to decide if they believe Mulroney of gambling in the city and concerns about Natalie Allen is a freshman in the 1LR School. that a new Quebec City team would be a the local economy.”5 She can be reached at [email protected].

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Photo courtesy ofdigitaltrends.com The Las Vegas Strip, an epicenter of gambling, epitomizes why some people question whether Las Vegas could ever be a legitimate home for a major sports franchise.

16 Sports, Inc. The Story of Dude Perfect: Redefining What it Means to be a Professional Athlete

Photo courtesy of Yahoo News The members of Dude Perfect (from left to right): Coby Cotton, Garrett Hilbert, Cody Jones, Tyler Toney, and Cory Cotton. Jamie H ill‘18 they bet a sandwich to see who done it all. Fast-forward 6 Vi made video into a multi-million could one-up the other guys. years from their college days, dollar company? They don’t play organized They realized what they were 154 uploads, 1 billion views, To start, partnerships with professional sports. They don’t doing was pretty cool and and 7 million subscribers later,' various companies, a major part have uniforms. They don’t play started uploading the videos to and they’ve turned their home of the group’s business strategy, games on national television. YouTube. Starting with simple videos and a bet on a sandwich has been crucial for Dude Per­ And yet, they make millions backyard hoops, the guys have into an Internet sensation. fect’s success. For example, of dollars for playing sports augmented their act, which The guys have been fea­ one of Dude Perfect’s major and have athletic endorsements now features incredible basket­ tured on Jimmy Kimmel, Good partnerships is with Whistle just like Peyton Manning, Ti­ ball shots from the third deck of Morning America, Regis and Sports, which is a media com­ ger Woods, and LeBron James. a football stadium, the catwalk Kelly, CBS Evening News, pany that connects sports to all Who on earth could I possibly in an arena, and even from an Fox and Friends, and the ES- social media platforms. The be referring to? The answer: airplane. They’ve thrown base­ PY’s and were nominated for Whistle aids in production of Dude Perfect, a group that is balls through the windows of a a Teen Choice Award. They’ve Dude Perfect’s videos and pro­ redefining what it means to be moving car, kicked a field goal expanded their brand past just motes such videos across mul­ a star in the sports in­ through the videos to include iPhone apps, tiple platforms. Following the dustry. they’ve uprights and clothes, phone cases, mugs, union, Dude Perfect’s base of If you have heard turned their into a bas­ and a book to reach a net worth subscribers increased from 2.2 of Dude Perfect, then ketball hoop, north of $5 million.2 They’ve million to 7 million and con­ you understand the home videos maneuvered even collaborated with people tinues to grow.3 Other fruitful magnitude of its brand. and a bet ping-pong in the sports world, from indi­ corporate partners include Fiat, For those of you who balls through viduals such as Tyler Seguin, which closed down an airport are unfamiliar, I’ll give on a sandwich an incredi­ Johnny Manziel, Ryan Tanne- to create a video combining its you a rundown. Dude into an ble obstacle hill, and Dale Earnhardt Jr. to car’s stunts and Dude Perfect’s Perfect is a group of course, and entire teams like the Seattle Se- trick shots. five buddies who start­ Internet so much ahawks. Furthermore, Dude Per­ ed making trick-shot sensation.” more. They So how exactly did a bunch fect has been able to capitalize videos in college when seem to have of college guys turn a home­ on the entertainment aspect

Fall 2015 17 in the middle of the stadium to have tens Works Cited “Dude Perfect is of thousands of cheering fans.’ With your own camera, and your own backyard, you 1. Dude Perfect YouTube Channel Stats, Vid- able to position can become somebody who attracts fans all StatsX.com, 10/29/15 itself as a group of over the globe.”4 2. Dude Perfect Net Worth, CelebrityNet- Dude Perfect is surely more than just Worth.com 3. Mason Lemer, How The Whistle Is Build­ “normal” people YouTube videos, t-shirts, and interviews: ing a Sports Network for the YouTube Age, who are more they’ve become an important addition to Contently.com, 9/26/14 relatable to sports the sports landscape. Not every young ath­ 4. Michael McCarthy, Online trick shot sen­ lete or sports fan can be as good as LeBron sations Dude Perfect become offline sports fans than James, but these guys have become a new stars, SportingNews.com, 12/19/14 type of inspiration. They’re regular guys superstar that have managed to make it big doing athletes are. ” what they love. In addition, they have not only brought themselves success but have of the sports industry. The guys produce also managed to carve out a whole new high-quality and fun content that appeals niche in the sports industry. An impressive to a broad demographic and allows them to legacy for five buddies with a camera! dominate this niche of sports. Dude Perfect targets sports fans and provides a unique alternative to traditional games and sport­ ing events. They’ve also transitioned into comedy with their series of “Stereotypes” videos, expanding their influence on enter­ tainment and furthering their appeal. Dude Perfect is able to position itself as a group of “normal” people who are more relatable to sports fans than superstar athletes are. As Whistle Sports executive vice president Brian Selander said: “They serve as an inspiration to athletes all over Jamie Hill is a sophomore in the the world. They say, ‘You don’t have to be School of Hotel Administration. She can be reached at [email protected].

Photo courtesy of bordombash.com Dude Perfect filming its iconic bowling trick shot video.

18 Sports, Inc. Legal Concerns in the Booming Industry of Daily Fantasy Sports

Damian O’Sullivan ‘17 opment illuminates important legal ques­ general (e.g. increased crime rates, unem­ • ■ • tions about the increasingly widespread ployment rates, suicide rates, and other so­ Advertisements for daily fantasy and profitable industry and contributes to cial issues associated with gambling addic­ sports (DFS) gambling are becoming in­ the discussion over the le- ality tion). In addition, even when considering creasingly hard to miss when watching and morality of sports %etting the tax revenues that would ostensibly be televised sporting events. The industry in general. aised through legalized sports bet- has become incredibly profitable in recent To begin, sports bet­ a m a f t ®n!Ting, PASPA advocates estimate that, years, raking in over $1 billion in entry fees ting in general has been INGS',(Tor every dollar brought in by gam­ from over 1.5 million a hot topic o f\ b lin g revenues, states would spend Americans in 2014.' u ... critics point debate since hree dollars addressing the aforemen­ FanDuel and Draft- the passage of the Profes­ tioned social costs of gambling.3 The Kings are now mas­ out that DFS sional and Amateur Sports Pro­ NFL, MLB, NHL, and NCAA also sym­ sive in scope, receiv­ features all of tection Act of 1992 (PASPA), pathize with this position, citing the need ing investments from, which prohibited such betting to maintain the integrity of sports and even or forming sponsor­ the fundamental in all but four states. In response supporting a motion to expand the ban to ship deals with, the elements of to this piece of legislation, two remove the Nevada loophole.4 On the other NBA, MLB, and 28 opposing schools of thought on hand, opponents to PASPA contend that, in of the 32 NFL teams.2 traditional sports betting have materialized. spite of these claims reflecting the ills of However, in the wake gambling: On the one sports gambling, an $80- hand, pro- 380 billion illegal sports of such financial suc­ a consideration, cess, the industry has ponents t f c m f D u e l gambling enterprise exists come under legal in­ a prize, of the law (although reliable figures vestigation for their point out are admittedly difficult to practices. This devel­ and chance.” the social costs of gambling in estimate because it is an illegal industry)5

Photo courtesy of CBS Sports NBA Commissioner Adam Silver advocates for the legalization of sports gambling to ensure the regulation of a currently illegal multibillion-dollar operation.

Fall 2015 19 of Justice and FBI are currently investigat­ ing allegations that a DraftKings employ­ ee used insider information regarding the rates at which players were getting drafted in order to turn a $25 entry fee on rival site FanDuel into a whopping $350,000 payout. Such allegations illuminate the notion that DFS sites must be regulated if they remain legalized. Otherwise, how would websites like DraftKings ensure that their employ­ ees behave honestly and maintain the integ­ rity of DFS? As we can see, the recent media atten­ tion directed at DFS compels us to reflect and ask ourselves a lot of questions about sports betting and DFS in particular. Im­ pending legal proceedings will provide re­ vealing insight into what our legal system feels about such questions.

Photo courtesy of Getty Images Works Cited New York Attorney General Eric Schneiderman's cease and desist order to DFS companies illuminates doubts about the legality of daily fantasy sports. 1. Ed Miller and Daniel Singer. “For daily and operates primarily through offshore skill of the participants and are determined fantasy sports operators, the curse o f too websites and underground bookmaking op­ predominantly by accumulated statistical much skill.” Sportsbusinessdaily.com. July erations. In other words, the efforts to pre­ results of the performance of individuals 27, 2015 vent sports gambling have not only failed in multiple real world sporting or other 2. Jackie Wattles and Chris Isidore. “Fantasy to do so but have also forced these dealings events.”7 Thus, according to the law, DFS sports giants ban employees from games into an unreg­ cannot be considered gambling because over cheating concerns.” Money.cnn.com. ulated mar­ “Such allegations it requires a greater degree of skill and October 6, 2015 ket in which illuminate reliance on statistics than betting pure­ 3. James Butler. “Sports Betting is a Dead criminal en­ ly on the outcomes of games. However, End.” Usnews.com. June 15, 2012 4. John Kindt. “Sports Betting Means Crime, terprises profit the notion critiques of this exemption have recent­ Addiction, and Costs to Taxpayers.” Us- much like Pro­ that DFS sites ly brought DFS under legal scrutiny. news.com. June 15, 2012 hibition did For example, critics point out that DFS 5. “Gambling in the United States.” National with alcohol must be features all of the fundamental elements Gambling Impact Study Commission Re­ in the 1920s. regulated if of traditional gambling: a consideration, port. 1999 Instead, NBA a prize, and chance.8 In addition, poker 6. Adam Silver. “Legalize and Regulate Commissioner they remain offers a persuasive counterexample to Sports Betting.” New York Times. Novem­ Adam Silver legalized.” DFS as a game that is considered gam­ ber 13,2014 suggests that bling even though, like DFS, it involves 7. Jeffrey Rodefer. “Professional and Ama­ teur Sports Protection Act of 1992.” Gam- legalizing the industry and allowing it to skills that could provide a competitive bling-law-us.com. March 5, 2007 be effectively monitored would not only advantage. With such logic, the Nevada 8. Jeff Hwang. “Is Daily Fantasy Sports protect gamblers from theft and other harm Gaming Board determined that DFS is in Gambling? O f Course It Is.” legalsportsre- but would bolster the integrity of the game fact gambling and needs to be regulated port.com. July 28, 2015 through measures such as monitoring un­ as such. New York Attorney General Eric usual line movements, licensing gamblers Schneiderman recently agreed and issued a to ensure standards, verifying age, exclud­ cease and desist order to DFS companies ing gambling addicts, and educating con­ for engaging in illegal gambling. This de­ sumers on responsible gambling.6 cision issued a massive blow to the DFS DFS had for a while managed to evade this industry by removing their revenues from debate, for the Unlawful Internet Gambling New Yorkers, and it remains to be seen if Enforcement Act, which prohibits forms of other state courts will see likewise in the online gambling including poker and sports future. betting, makes a special exemption for fan­ DFS has not only been questioned tasy sports. The law characterizes fantasy for its characterization as a form of legal sports as a realm in which “winning out­ betting but also for the nature of its daily comes reflect the relative knowledge and operations. Specifically, the Department Damian O'Sullivan is a junior in the ILR School. He can be reached at [email protected].

20 Sports, Inc. Special thank you to Cornell Print Services

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