My condolences to the Paterno family on the passing of Joe Paterno.

While there is no arguing his accomplishments as a football coach, may his final legacy be allowing the world to learn from his mistakes and the mistakes of others involved so that the situation at Penn State never happens again.

When I talk about my various non-sports experience, people tend to laugh when I tell them that my time working at McDonald’s as a teenager was one of the most positive experiences I’ve ever had. I learned so much from that position that applies to any business, so it seems only fitting to share some of those key lessons here in the context of sports business.

1.  No one knows the customer better than your front-line staff.

This is rule number one because I don’t think enough organizations realize the power that their customer-facing staff truly has. Our McDonald’s was a particularly busy location, so our cashiers and floor staff engaged with thousands of customers every week. Through these interactions, we knew what items people wanted, how long they were willing to wait, how much prices mattered, and the general sentiment of our store’s patrons. This information was used each day by managers and staff alike to make sure we were running efficiently and reacting to the needs and preferences of our particular customers.

In sports, the front-line staff includes a wide range of roles, such as sales reps, service reps, box office, concessionaires, ushers, receptionists, gameday interns, guest relations, security, merchandise sales, custodians and more. These are the employees that interact directly with your fans and customers every single day. They know what the fans are saying and feeling. As such, these staff members have very well-educated opinions that can be used to help shape important decisions. Senior management has to set ticket prices, decide on gameday entertainment, select food and merchandise options and build communication strategies. While market research can be used to help influence these decisions, I feel strongly that asking your front-line staff about what the fans want is an important resource that can be just as, if not more valuable that survey results.

2.  Discounts help in the short-term, but value wins in the long-term.

I remember when McDonald’s first came out with the “Dollar Menu” and it was huge!  How can you beat a $1 cheeseburger or $1 french fries? But then Burger King released a “Value Menu”, and then Wendy’s, then Taco Bell. It didn’t take long for everyone to try this approach. This strategy was easily duplicated and in turn, it moved the focus from the product to the price. The same problem exists with coupons and other discount programs. These tactics focus on a quick, immediate transaction – get them in the door and then hope they decide to stay. The problem is that the quality of the product and the product’s value relative to the price have much more of an impact on long-term success.

This concept is very important when it comes to all prices, from tickets to hot dogs. Offering discounts, whether its direct from the team or via a site like Groupon can definitely generate a quick spike in sales, but that revenue is not sustainable. A better approach would be to take a more sophisticated look at your prices to make sure the value proposition is there for the customers, perhaps through variable or dynamic pricing. In addition, we know that customers are very sensitive to food prices in the stadium, but most of the time, it’s actually the combination of price AND quality that they are upset about. Dropping the price of a hot dog won’t help if the hot dog isn’t hot or tasty. Just like the actual tickets, concession items need to have value for the consumer, and that comes from quality as much as, if not more than price.

3.  Don’t underestimate the value of a clean bathroom.

Hopefully you just laughed a little, but when you stop to think about it, this statement is very true. Cleanliness in general is a very important factor when it comes to feeling comfortable and welcome in any venue, and the location where people tend to notice this most is the bathroom. At our McDonald’s, we cleaned the bathroom at least once an hour, and usually even more often than that. Even if we were in the middle of dinner rush, we never skipped this task because we wanted the entire dining experience (which often involves a trip to the restroom) to be a positive one.

No one likes a dirty bathroom, whether it’s at a restaurant or at a stadium. That feeling of being disgusted by something can be a surprisingly “sticky” memory, even if the rest of the game experience is quite positive. Meanwhile, fans have come to expect dirty bathrooms and port-a-johns at sporting event, that when you enter one that’s clean, it can create a surprisingly positive reaction (or at least avoids creating a negative one). Keeping stadium bathrooms clean on a gameday is quite challenging, but even if it means a few extra workers on gameday, I would argue it’s well worth it.

4.  Failures can be your best opportunities.

Who hasn’t had a negative experience at a fast food restaurant at some point, whether it’s receiving the wrong order, sitting at a dirty table or finding a hair in your food? The most important thing to do at this point is to listen first, apologize, fix the issue as quickly as possible and try to replace the bad feeling with a good experience. A single service recovery opportunity can have even more impact on long-term customer satisfaction than hundreds of regular, uneventful visits. As a McDonald’s employee, I was taught to go out of my way to make a situation right whenever a customer has a problem, and 99% of the time, I was able to turn that negative situation into a positive touchpoint with our restaurant.

As much as we try to prepare for every situation, we are faced with failures and mistakes all the time in sports – it is the nature of any service-based industry. The tickets get lost in the mail, the hot chocolate isn’t hot, the shirt is the wrong size, a fan slips on a spilled drink – there are thousand of things that can go wrong. In fact, many times the “failure” isn’t even our fault, such as when a customer loses their tickets or mistakenly purchases counterfeit tickets. Heck, we also get blamed for bad weather or poor team performance! Whenever these situations arise, rather than get frustrated, we need to remember that we are being presented with opportunities to build a better relationship with the fans. We must listen to what they’re saying, even if they just want to vent about the team. We should make sure problems are resolved, maybe even with a refund or complimentary tickets. You might be interacting with the most passionate fan who only comes to one game a year, and if that fan walks away unhappy, it could be the last game they ever come to.

5.  Reward loyalty.

I still remember several of the “regulars” that came to my McDonald’s, and I haven’t worked there in almost 15 years. These customers were regulars because of how we made them feel when they came to our store. We knew their names, how often they came in, and what they always ordered. In fact, when we saw them come in the front door, we started making their meal before they placed their order. If they decided to treat themselves to an additional dessert, we just gave it to them without thinking about the extra $1-2 we could have made. Around the holidays, we gave them a thank you card. and above all, we talked to them and listened to them. As this happened, we started realizing that other customers saw how we treated them, and sure enough, these customers often became regulars themselves. We loved our loyal customers, and did everything we could to make them happy.

In sports, we have an amazing luxury in that our customers are fans of our brand and product, something that many industries don’t experience. But unfortunately, this fact is often taken for granted, when it clearly shouldn’t be. The most time, effort and money should be dedicated to those fans and customers that have shown their loyalty over the years as season ticket holders, suite buyers and corporate partners. These are the audiences that you want to reward with the best value, the best experiences and the best level of service. Some teams try to do this with loyalty or rewards programs, and while those programs can succeed, they aren’t necessary to truly reward loyalty. Visit your best customer in the stands and bring them a small gift or upgrade their tickets. Send out thank you card or birthday emails. Call them to ask how the game was, even if you don’t have anything to sell them. These are all simple ways to reward loyal fans that will have a lasting impact on their relationship with the team.

The latest issue of The Sports Business Exchange from Joshua Duboff was released today and features several great articles, including:

• Perspective From 35,000 Feet Above: Why Steve Jobs was Important to Young Entrepreneurs by Joshua Duboff
• KAEO Startups: Crowd Seats - Daily deals website for tickets to sporting events
• KAEO Startups: Massachusetts Soldiers Legacy Fund - Non-profit to support the education of children who lost a parent in Operations Enduring and Iraqi Freedom
• Making a Marketing Paradigm Shift Within Your Athletic Department by Adam Schemm
• Cheerleading May Not Be Ready For Sport Status, But It Is Big Business by Daniel Scott Benjamin
• The Relationship of Fantasy Football Participation with NFL Television Ratings by John A. Fortunato, Fordham University (a special article from the JSAS Online)

Today’s post is from guest blogger Brian Gainor, founder of Partnership Activation, a leading resource in sports business that showcases sports marketing and sponsorship trends, best practices, and creative activation tactics. Brian has also been featured as a guest writer for Darren Rovell’s CNBC SportsBiz column.

Sports leagues and organizations are turning to Facebook to offer fans more content, access, and interactivity than ever before. As sports entities begin to fully understand the value of social media, Facebook, Twitter, and YouTube have become critical channels in the marketing mix to promote messaging, drive participation and interest, and engage fans on a 24/7, 365 basis.

Teams can no longer rely on Wall posts, photos, and shareable videos to drive consumers to frequently visit their Facebook pages and stay for awhile. As a result, it’s important that teams identify and share best practices in the social media space both internally and externally.

Here are 50 creative ways that teams are engaging fans on Facebook outside the traditional elements:

1. Fans Map – FC Barcelona (Find FC Barcelona fans across the world)

2. Real Madrid Avatars – Real Madrid (Fans can create their own virtual avatar)

3. Arsenal “Like the Players” – Arsenal FC (Fans can easily like all the players on the team)

4. Spread the Word - Manchester United (Fans can easily invite their friends to join the Manchester United Facebook Page

5. Fountain Tire Shootout – Vancouver Canucks (Fans can play a virtual hockey game to win prizes and coupon vouchers)

6. 3-Point Play – Boston Celtics (Fans can compete in an interactive stats-related game to earn points)

7. Summer Salute – Team Lowe’s Racing (Fans can post a military salute or message to troops overseas)

8. Polls / Quizzes – NASCAR (Fans can test their NASCAR IQ via a number of quizzes and polls)

9. NBA Ball of Fame – NBA (Fans can click on basketballs to relive famous moments from the NBA Finals)

10. NBA Turnstile - NBA (Fans can “check-in” to NBA games on Facebook to chat with fans, win tickets and merchandise, and earn badges)

11. Support Your Team on Facebook! – NFL (Fans can scroll through an interactive tab to see where their favorite team ranks in popularity and intensity amongst all teams and within conference/division).

12. Shopping – Liverpool FC (Fans can quickly scroll through ultimate shopping ideas and can get easy access to the team’s mobile application)

13. JetBlue FaceOff – Boston Bruins (Fans can access game information, play games, win prizes, and more)

14. Mavs Spirit Photo Upload – Dallas Mavericks (Fans can submit their best photo wearing Mavericks gear for the chance to have it featured on the team’s Facebook page)

15. Fan Zone - New England Patriots (Fans can interact with polls, listen to live broadcasts, post comments, share virtual gifts, play trivia, and more)

16. Share Your Story – San Francisco 49ers (Fans can share why they are a Faithful Fan for the chance to be featured on 2011 season tickets or in a team commercial)

17. Tickets & Promotions – Philadelphia 76ers (Fans can closely follow current ticket specials and promotions using a tab integrated into the team Facebook page)

18. A Date with SFC – Seattle Sounders (Fans can watch video dating profiles of different players on Seattle Sounders FC and partake in a date auction via Ebay.

19. Guess the Kit – Tottenham Hotspur (Fans have to correctly guess what the team’s new kit (uniform) will look like)

20. Broadcast Schedule – Portland Timbers (Fans can easily see which networks will be carrying the team’s upcoming soccer matches)

21. Locker Room – Los Angeles Lakers (Fans can take a virtual tour of the Lakers locker room)

22. Flickr - Milwaukee Bucks (Fans can scroll through photos of the Bucks’ gameday experience posted on their Official Flickr page)

23. U-Stream – Golden State Warriors (Fans can watch a live webcast with a Warriors player each day during Training Camp

24. Trailblazers.tv – Portland Trail Blazers (Fans can watch exclusive interviews, shows, highlights, pre- and post-game shows, and more)

25. AC Milan Jersey – A.C. Milan (Fans can create their own virtual A.C. Milan Jersey (with a custom name and number) and share it on their Facebook wall)

26. Fantasy Manager – A.C. Milan (Fans can create and manage a virtual team of players and compete against friends for the chance to win team prizes)

27. Ice Dancers – Florida Panthers (Fans could vote on their favorite Ice Dancers in a bracket competition that gave away a free cruise!)

28. Stars Text Alerts – Dallas Stars (Fans can easily sign up to receive basic text alerts or student rush text alerts)

29. Leafs on YouTube – Toronto Maple Leafs (Fans can watch a series of YouTube clips directly within a tab on the team’s Facebook page

30. Photo Pick-Up – Phoenix Suns (Fans can have their picture taken by Suns personnel at a game and retrieve it for free on the team’s Facebook page)

31. Match of the Week – Sporting KC (Fans can receive in-depth information about a premier MLS game each week)

32. Meet the Team – Denver Nuggets (Fans can vote for their favorite players on the Nuggets by “liking” them on the interactive Facebook tab)

33. Letter to Fans – Buffalo Sabres (Fans can read a letter sent from the team’s owner Terrence M. Pegula thanking them for their support)

34. Which Cap Are You Like? – Washington Capitals (Fans can take a quiz to see what Washington Capitals player they are the most like and win an autographed jersey)

35. Foursquare – Tampa Bay Buccaneers (Fans can view the team’s Foursquare profile and access tips and insights on whose checked-in at Raymond James Stadium)

36. Draft Party Sweepstakes – Charlotte Bobcats (Fans can sign up on Facebook to win a VIP experience at the Bobcats Draft Party courtesy of Donatos Pizza)

37. Fan Forum – Dallas Cowboys (Fans can participate in an interactive forum where they can participate in a live discussion board)

38. Showcase – Sacramento Kings (Fans can scroll through to see all of the Kings’ hottest merchandise in their online team store up close)

39. Host UpClose Contest – Indianapolis Colts (Fans can upload a video of themselves hosting a sports segment for the chance to fly to Indianapolis and host a segment on Colts UpClose)

40. Scarf Yourself! – New York Red Bulls (Fans can add an official New York Red Bulls scarf to their profile picture and feature it on the team Facebook page)

41. Support – Atlanta Falcons (Fans can post questions/ideas/problems that they have and a Falcons customer representative addresses them for all fans to see on a live discussion board)

42. Give Your All – All Blacks (Fans can watch a series of vignettes where the All Blacks players talk about giving everything they’ve got when they enter the pitch)

43. Fan of the Week – Chicago Bears (Fans can submit a message/photo detailing why they are the biggest fan for the chance to be featured online)

44. A’s Kids Club – Oakland A’s (Fans can sign up for an Oakland A’s Kids Club Membership directly through the team’s Facebook page)

45. WTA Extra – WTA (Fans can easily scroll through high-res images of the top WTA players and also see information about their world ranking and Twitter feed)

46. Giving – Tampa Bay Rays (Fans can read about the Rays Baseball Foundation and make a donation)

47. Fanographies – Cleveland Browns (Fans can submit their Browns story for the chance to win 2011 season tickets)

48. Bulldog Club – University of Georgia Athletics (Fans can read about the Bulldog Club, make donations, invest in educational opportunities, and more)

49. Charity – PGA (Fans can read about the PGA’s new partnership with Darius Rucker and download a song which benefits PGA Tour Charities, Inc.)

50. UStream Live – Colorado Avalanche (Fans can watch broadcasts throughout the season and sign up to receive email alerts every time they take place)

 

After much tough deliberation and discussions with other trusted peers, I’m excited to announce the winners for the 2nd annual The Business of Sports Awards!

Best Sports Business Blog

• Winner:  Partnership Activation – Another year of tremendous work by Brian Gainor, who consistently seeks out and shares the best practices in sports sponsorship, activation and marketing tactics. In particular, Brian does an excellent job seeking out emerging trends and new ideas, giving his readers the change to stay ahead of the curve. His site is a must-read for any sports marketer.
• Runner-Up:  Sports Marketing and PR Roundup – Joe Favorito was one of the first to get into the sports business blogging world and he continues to produce incredibly valuable content across a wide range of industry topics. Whether the topic is PR, marketing, sponsorships, ticket sales or more, Joe uses his wealth of experience to keep us all informed.

Best Sports Business Twitter Account

• Winner:  J.W. Cannon (@cannonjw) – Beyond being a go-to sports business expert on Twitter, J.W. is one of the most honest and direct professionals out there, always willing to share new ideas and personal opinions. You can learn a lot from his tweets!
• Runner-up:  Liz Mullen (@sbjlizmullen) – Of all the individual SBJ contributors, Liz has the most followers and that can be attributed to the incredible amount of interaction she offers. She has a wonderful talent for mixing personality and enthusiasm with valuable sports business content.

Best Sports Business Content – Company

• Winner:  CNBC – Darren Rovell continues to be arguably the most prominent sports business contributor, and in turn, making CNBC into a top industry news resource. Whether it’s his regular blog posts, video segments or his steady stream of tweets (steady may be an understatement), you will always stay up to date on sports business news through Rovell and CNBC.
• Runner-up:  IEG – Runner-up in this category last year as well,  IEG continues to share their industry insights across multiple channels. Their bloggers at Sponsorship.com provide a wide-range of perspectives and in-depth expertise and their line-up of active Twitter users is always engaging with the online community on almost any sponsorship-related topic.

Best Sports Business Up and Comer

• Winner:  Tariq Ahmad - In a short time, Tariq has made his name known as a top sports and social media expert, highlighed by his session at SXSW on social media and the NBA. Tariq is a very active participant on Twitter, both in sharing his own views and in seeking out other valuable resources that we can all learn from.
• Runner-up:  Joshua Boren – Also featured as a Rising Star by Partnership Activation, Joshua has accomplished a lot in a very short time in the field of venue design and fan experience and his contributions in the digital sports business conversation cover a wide range of topics. I know that he will be a valuable resource for a long time.

Best Alternative Sports Business Content

• Winner:  #SBChat – The creation of Lou Imbriano and J.W. Cannon, #SBChat has become a wonderful way for industry professionals of all backgrounds to come together. Whether the topic is current best practices in sponsorship activation or advice on building a career in sports, this weekly Twitter chat provides quality insights for all participants.
• Runner-up:  The Row Show – Runner-up now in back to back years, the Row Show is a fun, creative and entertaining way to learn about the latest trends in sports and technology. Their show provides a great balance of discussing current events and sharing best practices and useful tips.

Best International Sports Business Contributor

• Winner:  Daniel McLaren – Daniel is the man behind TheUKSportsNetwork.com, a great resource covering a variety of sports business and digital marketing topics from the United Kingdom. Beyond the UK and Euro-specific content, the insights that Daniel provides, particularly when it comes to fan engagement and social media, apply to any sports organization across the globe.
• Runner-up:  Cedric Grundler – Cedric is the created of LeMarketingSportif.com, a French sports business blog covering global sports marketing, sponsorship and communications. While you may need Google Translate for this one, it’s definitely worth it. And for those who are fluent in French, he’s recently started an in-depth podcast interview series (wish I could enjoy those too!)

Best Sports Business Email Newsletter

• Winners:  Sports Business Daily (Paid Subscription) / Sports Marketing and PR Pros (Free) – For this category, we ultimately decided to have two winners, recognizing the best paid and free newsletters available. Every day, in fact multiple time per day, Sports Business Daily keeps their subscribers up to date on every piece of breaking sports business news available, making them a must-purchase subscription for anyone in sports. Meanwhile, Joe Favorito has built up his free weekly newsletter to over 22,000 members. Every Sunday, he shares links to valuable news stories, books, networking events, brands looking to connect and job openings, providing a valuable service to all his subscribers
• Runner-up:  Partnership Activation 2.0 – Every month, Brian Gainor manages to put together a detailed and engaging list of best practices, emerging trends, case studies and rising professionals. While the main focus is around corporate sponsorships, he also includes information on ticketing, social media, brand management and communications. Every example is supported with links and vivid photos to really drive home the value of each tip and tactic.

Best Sports Business Book

• Winner:  Moneyball by Michael Lewis – Not surprising to see this book as the top choice. Moneyball is a rare book that covers both the on-field and off-field aspects of sports business in way that is intriguing and education for fans and industry professionals alike. I don’t think any other sports book of the past 20 years has shifted the landscape of the industry the way Moneyball has.
• Runner-up:  Veeck as in Wreck by Bill Veeck and Ed Linn – While this might not be a sports business book by definition, you can learn a great deal about the industry through the life of Bill Veeck. Veeck was always willing to push the envelope in a constant effort to create a memorable fan experience, an admirable goal that we all should share.

People’s Choice – Sports Business Social Media Contributor of the Year

• Winner:  Darren Rovell - The people have spoken (819 total voters) and with 48% of the vote (394 votes), Darren Rovell is the winner of the 2011 People’s Choice – Sports Business Social Media Contributor of the Year. There is little doubt that Darren has the most extensive reach in creating and sharing sports business content, as demonstrated by his 83,000+ Twitter followers and who-knows how many blog readers. When you combine the quality of his insights, the quantity of posts/tweets/etc, his industry knowledge and his tremendous reach, it’s clear that Darren has created quite an impressive brand for himself in the sports and social media landscape.
• Runner-up:  Brian Gainor – This year’s winner for Best Sports Business Blog and runner-up for Best Newsletter, Brian consistently uses multiple social media channels (his blog, Twitter, LinkedIn, YouTube and more) to share his industry knowledge with all of us. Brian came in 2nd with 20% of the vote (164 votes), and it’s clear from the response and my conversations with others that he’s a respected and appreciated voice when it comes to educating and engaging with those working in sports.

Thank you to everyone who sent in nominations and voted in the People’s Choice poll. This process is very challenging with so many great sports business contributors out there. And of course, congratulations to all of our winners. Make sure you continue to follow them and all of this year’s nominees to learn from their wonderful industry resources.

I’m excited to announce the nominees for the 2011 The Business of Sports Awards! Every spring, we will take a look back to reward the best content and contributors from the sports business community over the past year.

Unlike other sports business awards that recognize the people working within specific organizations, the goal for these awards is to recognize those individuals, companies and websites that create and share the best sports business content and provide the most benefit for the rest of the sports industry. Also, in an attempt to spread the recognition a bit, last year’s winner in each category cannot win again this year.

With all that said, the nominees are…

Best Sports Business Blog: Last year’s winner was SportsBiz with Darren Rovell. This year’s nominees are…

• Athletics Development Frontier
• The Biz of Baseball
• Partnership Activation
• Relationship Architecture
• SponsorPitch Blog
• Sports Agent Blog
• Sports Info 101
• Sports Marketing and PR Roundup

Best Sports Business Twitter Account: Last year’s winner was Kathleen Hessert (@kathleenhessert). This year’s nominees are…

• Brian Gainor (@briangainor)
• J.W. Cannon (@cannonjw)
• Kristi Dosh (@sportsbizmiss)
• Liz Mullen (@sbjlizmullen)
• Lou Imbriano (@louimbriano)
• Maury Brown (@bizballmaury)
• Michele Steele (@michelesteele)
• Paul Hemingway (@paulhemingway)
• Rob Katz (@robkatz)

Best Sports Business Content – Company: Last year’s winner was Sports Business Journal. This year’s nominees are…

• Activ8Social (Website, blog and Twitter accounts)
• Coyle Media (Sports Marketing 2.0, Sports Fan Graph, @sports20, Digital Fan Marketing Summits)
• CNBC (Darren Rovell’s blog, Twitter and video content)
• Forbes (SportsMoney website and blog)
• IEG (Sponsorship.com blog and individual Twitter contributors)
• GMR Marketing (Industry blog and multiple Twitter accounts)

Best Sports Business Up and Comer: Last year’s winner was Peter Amador. This year’s nominees are…

• Brittany Gilman
• Deandra Duggans
• Jared Casden
• Jonathan Norman
• Joshua Boren
• Sean O’Hara
• Tariq Ahmad
• Tim McGarry

Best Alternative Sports Business Content: Last year’s winner was Sports Business Radio. This year’s nominees are…

• #SBChat (Weekly Twitter-based sports business chat)
• #SportsPRChat (Weekly Twitter-based sports PR chat)
• Be Your Own Fan TV by the Goldklang Group (Bi-weekly web video)
• The Migala Report (Monthly web publication)
• The Row Show (Weekly web video broadcast)
• The Sports Business Exchange (Quarterly online journal)

Best International Sports Business Contributor (New Category):

• Ash Read
• Anthony Alsop
• Cedric Grunder
• Daniel McLaren
• Hubert Munyazikwiye
• Jonathan Müller
• Lourdes Turconi
• Shane Harmon

Best Sports Business Email Newsletter (New Category):

• Brian Gainor’s Partnershp Activation 2.0 Monthly Newsletter
• Howard Bloom’s SBN Daily Dose
• Joe Favorito’s Sports Marketing and PR Pros Newsletter
  
• National Sports Forum’s “Selling It” Bi-Monthly Newsletter
• Street and Smith’s Sports Business Daily
• Sponsorship Insights Monthly Newsletter

Best Sports Business Book (New Category):

• Ice to the Eskimos by Jon Spoelstra
• Moneyball by Michael Lewis
• Sports, Inc. by Phil Schaaf
• The Business of Sports by Scott Rosner and Kenneth Shropshire
• The Elusive Fan by Irving Rein, Philip Kotler and Ben Shields
• Veeck as in Wreck by Bill Veeck and Ed Linn

People’s Choice – Sports Business Social Media Contributor of the Year:

• Brian Gainor
• Darren Heitner
• Darren Rovell
• Joe Favorito
• Kristi Dosh
• Lou Imbriano
• Maury Brown
• Pat Coyle

The voting for the People’s Choice award (on the top right of the page) will run through May 15. All of the winners will be announced the following week.

Please Note: The only award that you can currently vote on is the People’s Choice award. However, I encourage you all to leave comments about who you think should win in the other categories. These comments will be considered when deciding on the winners. Thanks!

Over the past eight years, there has been a tremendous growth in popularity of poker as a form of “sports entertainment.” While the game itself is not a sport, it’s coverage on television and across the web has created a deep connection between poker and the sports world. However, as of Friday, the relationship between the sports world and poker took a dramatic turn.

For those that aren’t familiar with what happened, I’ll try to summarize quickly. The FBI and Southern District of New York announced that they were arresting the top executives from the big-three online poker sites (PokerStars, Full Tilt Poker and Absolute Poker/UltimateBet) and they seized the related “.com” domain names. Those arrested are facing charges of bank fraud, money laundering, and violation of UIGEA (Unlawful Internet Gambling Enforcement Act).

Ever since the UIGEA was passed in 2006, there has been a question as to the legality of online poker in the U.S.  The language of the bill focused on financial transactions related to online gambling, but the big service providers mentioned above believed that poker is a game of skill, not gambling, and continued to operate very successfully in the U.S. In fact, the poker industry continued to boom over the past 4-5 years, as you can see from the amount of media coverage it received and the sponsorships involved. Both Full Tilt Poker and PokerStars sponsored poker television coverage on ESPN (World Series of Poker and the North American Poker Tour), NBC (NBC Heads-Up and Poker After Dark) and Fox (PokerStars The Big Game). ESPN.com also had PokerStars sponsored coverage through a web-video show called the Inside Deal. PokerStars was even an NHL sponsor, with prominent exposure at their annual awards show.

Poker also created lots of new “sports” celebrities, people like Phil Ivey, Daniel Negreanu, Chris “Jesus” Ferguson, Phil Hellmuth and many more. Not only were these top  players sponsored by online poker sites, they were popular enough to receive endorsements outside of poker. In looking at the “sport,” there were definitely similarity to NASCAR in terms of individual endorsement potential. You could often see these players wearing logos of their partner companies, and the better they performed at the table, the greater the partner exposure.

In the immediate aftermath of “Black Friday,” the following events have occurred:

• ESPN and ESPN.com have removed all associated with PokerStars, canceled their North American Poker Tour coverage and even stopped showing reruns of older WSOP broadcasts.
• The Big Game on Fox has been canceled, at least temporarily
• Wynn Entertainment and other U.S.-based casinos have ended most of their relationships with online sites
• All three sites have stopped serving U.S. players for real money games
• Top officials that have yet to be arrested could be extradited, depending on their current location (officials for these sites usually live outside the country)
• Funds for U.S. players are temporarily frozen, and there’s a chance this money could be lost altogether.

The big question is, what happens now? The World Series of Poker, which has become a top sports-related brand will probably see a significant drop in participation and television coverage. Top players that rely on online poker for their income may be forced to leave the country, or even worse, could be looking at criminal charges depending on their relationship with the online sites. Poker television as we know it could be over, along with any poker-related sponsorships of U.S. teams or leagues. Meanwhile, the Poker Players Alliance, a lobbying group on behalf of poker players, is trying to rally players to push for legislation to legalize and regulate online poker. Bills on this topic have been discussed in Congress on and off for the past two years, and some people even feel that these recent events could speed up the process of U.S. regulation.

It’s too early to predict what the ultimate results from these charges will be, but there’s little doubt that the landscape of the poker industry has been permanently changed by “Black Friday.” For more coverage of this story, check out Darren Rovell’s coverage or visit www.pokernews.com.

Today’s post is courtesy of guest blogger Emily Huddell from Turnkey Sports & Entertainment.

The inaugural Wharton Sports Innovation Conference (SIC) was held last Friday, April 8, at the University of Pennsylvania’s Wharton School.  Initiated and organized by the Wharton Sports Business Club, the event was conceived as a forum for high-level discussion on “what’s next” in the world of sports business, attracted approximately 250 attendees, and (full disclosure) was sponsored by Turnkey Sports & Entertainment.

The event began with a welcome address by Kenneth Shropshire, Professor of Legal Studies and Business Ethics and Director of Wharton’s Sports Business Initiative. Then, attendees split into sub-groups to attend panels including “Developing Story: Shifts in Sports Media Coverage,” “If You Build It, Will They Come?: Innovations in Stadium Land Use and Surrounding Real Estate,” and “The Social Impact of Sports.”

In one of the day’s first sessions, Barry Blyn (VP of Consumer Insights, ESPN) engaged attendees in a discussion centered on ESPN’s “brand health narrative.” According to Blyn, ESPN’s core focus is the die-hard sports fan (i.e., the individual who identifies as at an 8, 9 or 10 on a 1-10 avidity scale). In their quest to “relentlessly monitor brand health” by understanding the perceptions of this group, Blyn’s team employs many non-traditional means, including father/son BBQs (at which fans’ perceptions and needs are discussed), “ESPN deprivation” experiences, conflict groups, and projects like eulogy creation (in which fans are asked to pretend that the brand has “died” and reflect on its cause of death).

Moving forward, Blyn’s group is focused on determining how SportsCenter should adapt/react to the growth of mobile to retain its appeal. Other goals including developing a true social media strategy, and continuing to create a sense of community with fans with innovations like the World Cup Match Truck.

In one of the morning’s second panels, titled “To the Cloud!”, a stacked panel comprised of Dave Butler (CEO, Paciolan), Sean Morgan (Founder & CEO, Critical Media), Brian Perez (SVP & GM, NBA Digital), Matt Higgins (EVP Business Operations, NY Jets), and Brad Goldberg (CEO, Peak6 Online) and moderated by Len Perna (President & CEO, Turnkey Sports & Entertainment), engaged in a lively conversation about the impact of cloud computing on the sports industry. The panel agreed that though fans may not understand the concept of the cloud, they directly benefit from it in the form of customized and improved in-stadium service.

Other hot button issues tackled by this group included:

• The interplay of broadcast rights and mobile/digital
• The lack of mobile bandwidth in areas/facilities (Perez called it the “single biggest issue” in sports)
• The potential nationalization of team brands via mobile technology/mobile’s effect on the ~75 mile marketing boundaries currently in place
• The role of in-stadium replay
• The development of platforms enabling fans to invite friends to games via social media

The panel’s consensus was that the sports industry must do a better job of implementing initiatives like the NBA’s Fan Night, which allows fans to determine which game airs on NBA TV each Tuesday. According to this group, increased adaptation stemming from going where the fans are and giving them what they want will be crucial as the sports industry strives to remain relevant.

Perhaps the day’s most compelling event was Ted Leonsis’ Keynote Speech. Leonsis, the Founder and CEO of Monumental Sports & Entertainment, spoke about teams’ effect on the metro areas they call home, and their responsibilities as the “caretakers of the emotional well-being” of those cities. He discussed how the Verizon Center has played a crucial role in the revitalization of DC’s Chinatown, changing the arc of the narrative of the city, and turning the area surrounding the arena into a hub of commerce with an annual economic impact of $300 million.

As one who has worked in multiple industries and created and managed companies of varied sizes and types, Leonsis was the perfect person to give the SIC Keynote Speech. The themes of innovation, forward-thinking, creating value for consumers, and keeping philanthropy front-of-mind remained as Leonsis detailed his career with AOL, his roles as a founder of SnagFilms, and his experiences as a member of the Groupon Board of Directors.

Leonsis’ recommendation to students looking to break into the sports industry was, as he put it, “M&M” – math and Mandarin. On the math side, teams’ evolution into “gigantic data factories” means that mastery of statistics and numbers will become a crucial skill set. With regard to the second “m”, Mandarin has more native speakers than any other language, and is the language spoken in Beijing, the political and cultural center of China.

Following Leonsis’ presentation, Chuck Greenberg (Former CEO & Managing Partner, Texas Rangers), Nick Sakiewicz (CEO & Operating Partner, Philadelphia Union), and Stu Siegel (Partner, Sunrise Sports & Entertainment) took the floor as participants in the “Owner’s Roundtable.”

Sakiewicz, possessing the unique perspective of a person who literally created a franchise and a brand from “a blank sheet of paper,” emphasized the importance of the role of data mining as it pertains to improving the in-game experience and building connections with the fans outside of stadium via social media.

Greenberg, meanwhile, was tasked with rehabilitating a storied brand’s image when his group purchased the franchise in 2010. Interestingly, Greenberg noted that, prior to his group’s purchase of the club, the Texas Rangers were perceived as a small- to mid-market franchise… despite the fact that their stadium is literally across the street from Cowboy’s Stadium, capacity ~110,000 and home of “America’s Team.”

In his role as CEO of the club, Greenberg focused on rebuilding trust with Rangers fans and enhancing a sense of community. Said Greenberg, “Sports franchises may be the last great town hall of modern society,” in that they have the ability to connect unrelated individuals from different backgrounds and with varied interests.

Following the “Owner’s Roundtable,” SIC attendees grabbed bag lunches and then attend two more waves of roundtables about the future of international expansion in sports, the impact of social media on sports brands, and innovations in sports analytics.

In “Growing the Gate,” a roundtable focused on innovations in ticketing, participants agreed that teams’ current challenge is creating true communities and a “membership” feel among season ticket holders. Ben Gumpert (Sr. Director, Team Marketing & Business Operations, NBA) noted that the Charlotte Bobcats have already taken steps in this direction by offering season ticket holders access to movie nights and cooking classes with the team’s Executive Chef.

Personalizing the stadium experience for each fan was also a popular concept the group expects to see more of in future years.

When asked how his side of the business has changed as technology has evolved, Dave Butler (CEO, Paciolan) made the point that his business is no longer just about ticket transactions. Instead, Paciolan now considers helping teams better understand their fans, build relationships with them, and figure out how to give them what they need to be their primary responsibility. “The fan teaches us what’s right and what clicks and what doesn’t,” said Butler, adding that Paciolan looks to other industries for innovative ideas but ultimately takes their cue from ticket buying fans.

In the day’s final session, a presentation featuring Joe Banner (President, Philadelphia Eagles), Stan Kasten (Former President, Washington Nationals), Tim Purpura (EVP & COO, MiLB), and Jason Levian (President & Founder, LSRI) titled “The Bottom Line,” panelists discussed the balance of on-field success and success on the books. Kasten summed up the concept mid-way through the session, explaining that “smart’s going to beat rich, but when you’re rich and smart, that’s tough to beat.”

Overall, this event provided insightful and interesting content appropriate for professionals and students alike. Students benefited from sessions geared specifically towards them (“Paying Your Dues: Breaking Into The Sports Business”, etc.), and comments from panelists like the NHL’s Jeff Morander, who noted that teams’ increasing sophistication with regard to technology and analytics opens doors to students looking for jobs in sports with who are comfortable working with data and tech-savvy. Industry professionals, meanwhile, had the opportunity to network with dozens of top-level executives, discuss the future, and openly brainstorm about new concepts and ideas. Given the convenient location (blocks from Philadelphia’s Amtrak station), reasonable cost for attendee badges, and stacked lineup of panelists and speakers, this event is a must-attend for anyone with an eye on the future in 2012.

Today’s guest post is from Emily M. Huddell. Emily serves as the SVP of Client Sales & Service at Turnkey Sports & Entertainment. At Turnkey, she oversees two of the company’s core products, Activator and Prospector.

With the NHL Playoffs starting today, it’s a great time to look at how the NHL differs from other major American sports leagues in crowning their champion.

National Football League (NFL)

Only 12 of 32 NFL teams make the playoffs each year. At 37.5%, the NFL has one of the lowest percentages of teams allowed into the postseason. Four division winners from each conference automatically qualify, plus two Wild Card teams (non-division winners with the best record). At times, this can make for interesting seeding. In 2011, for example, the Seattle Seahawks won the NFC West with a 7-9 record. They were slated to host the first round matchup against the 11-5 New Orleans Saints, the non-division winner Wild Card out of the NFC South. There was quite an uproar about whether Seattle deserved to host that game, but they quieted  (most of) the critics when they pulled out a 41-36 win.

National Basketball Association (NBA)

In the NBA, 16 out of 30 teams (a whopping 53.3%), make the playoffs. Once those 16 teams are seeded, the bracket will never change, regardless of any upsets that occur.

Major League Baseball (MLB)

MLB doesn’t refer to their tournament as the ‘playoffs.’ For baseball, it’s the ‘postseason’ that determines the champion. Only 8 of the 30 MLB teams (the lowest of all major American sports leagues at 26.7%), make the postseason, often coming down to the very last game, and occasionally needing an extra game as a tiebreaker.

Major League Soccer (MLS)

The youngest of the major American leagues, MLS advances 10 of their current 18 teams (55.5%) to the playoffs. Five teams from each conference are seeded, and while the first three seeds get byes, the #4 and #5 seeds play each other for the right to face the #1 seed. Once the bracket is set, no changes are made to account for upsets.

National Hockey League (NHL)

The NHL may just be the most fair when it comes to their playoff system. While they do allow a large percentage of their teams in (16 out of 30 – 53.3%), teams are re-seeded after each round. What this takes into account, that no other major American league does, is the regular season. A lower-seeded team that didn’t perform as well over the course of the 82-game season, doesn’t get an easier path to the Stanley Cup Finals just because they upset the higher seed. Kudos to the NHL for keeping the regular season more relevant than the other four leagues.

What is your favorite playoff system? Do any of these five leagues get it right? Should MLS consider going to the European-style of crowning the regular-season champion and forgoing any regular season?

Image courtesy of NHL.com

It’s time for the 2nd annual The Business of Sports Awards! Every spring, we take a look back to reward the best content and contributors from the sports business community over the past year. Unlike other sports business awards that recognize the people working within specific organizations, the goal for these awards is to recognize those individuals, companies and websites that create and share the best sports business content and provide the most benefit for the rest of the sports industry.

For this year’s awards, we have NINE categories, including three new ones!

• Best Sports Business Blog – The overall best sports business blog
• Best Individual Sports Business Twitter Account - The best individual use of Twitter to help the sports business community
• Best Sports Business Content by a Company – The company that best uses social media platforms across their organization to create and share sports business content
• Best Alternative Sports Business Content - The best sports business content distributed via an alternative, non-blog format
• Best Up-and-Coming Sports Business Contributor – The best new contributor of sports business content (must have just started within the past 12 months)
• NEW: Best International Sports Business Contributor – The best non-U.S. based, global sports business contributor via blog, twitter, etc.
• NEW: Best Sports Business Email Newsletter – The most valuable, insightful sports business email newsletter
• NEW: Best Sports Business Book – For this year only, this can be ANY sports business book, not just those written in the past year.

The winners in these five categories will be selected by The Business of Sports with advice and feedback from other trusted members of the sports business community. The final award will be voted on by The Business of Sports readers…

• People’s Choice – Sports Business Contributor of the Year – Recognizing the individual that has made the greatest contribution to the sports business community through any and all communication channels (web, email, social media, etc).

Now, I need your help with the nominations process!

Please click here now to send in your nominations for any or all of the nine categories!

I will accept nominations until Friday, April 15 and will then announce the finalists (up to 5 per category) the following week. Those individuals that won an award last year are not eligible to win again this year. Thank you for your help!