February 21, 2001:
Features
In
the Big Leagues
It isn't all fun and games for executives in today's pro
sports leagues
by Matt Golden and Dan
White
Professional sports leagues
today occupy a place of prominence in our national
culture: Some 80 million Americans watch the Super Bowl each year;
entire television networks have long been devoted to the coverage
of sports; hundred-million-dollar player contracts are old news;
and the sale of the first billion-dollar sports franchise is just
around the corner. Sport is no longer simply about competition;
it's about event presentation, stadium financing, television
contracts, player egos, public expectations, market size, sponsorships,
and revenue sharing. Operating a sports franchise requires not only
a love and knowledge of the game, but a sound understanding of business.
In the following pages, five Princeton alumni who run -- in
varying roles -- major league franchises reveal some of the
not-so-entertaining challenges they face in the world of sports
entertainment.
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Mills,
top, orchestrates all but the play of Knicks such as Latrell
Sprewell, pictured below. (Photography: George Kalinsky) |
Behind the scenes,
Steve Mills '81 controls play for the Knicks
Two hours before the
New York Knicks tip off against the Boston Celtics, Knicks executive
vice president of franchise operations Steve Mills '81 has carved
out some time for an interview. But the demands of running an event
at what he and many others refer to as "The World's Most Famous
Arena" - Madison Square Garden - keep interrupting.
The telephone rings,
and Mills is off to an impromptu meeting with Knicks general manager
Scott Layden, who wants to discuss plans for longtime Knick and
current Seattle Sonic Patrick Ewing's return to the Garden. Mills
later explains, "We caught some heat in the media when 'Oak'
(former Knick and fan favorite Charles Oakley) came back for the
first time because we ran a highlight film of his Knicks career
at halftime, while the teams were in the locker room." Consequently,
Layden and Mills are planning ahead for number 33's February 27
homecoming. "Do we show a video? Should we present a gift?"
Mills wonders before adding, "We'll eventually retire his number,
so we're struggling with what to do now as opposed to then."
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Photography:
NBA Photos
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After a pregame reception
for season ticket holders, Mills paces down a remote hallway that
leads to the bowels of the Garden. "Stevie Mills, I need to
talk to you," hails Knicks point guard Charlie Ward. "Steve,
you got a minute?" asks New York Times sportswriter Chris Broussard.
Then a last-minute briefing from the woman who has choreographed
tonight's elaborate halftime show and it's off to a small booth
way up in the Garden's rafters. Event script - a minute-by-minute
breakdown of all that will be seen or heard by the fans during the
game - in hand, Mills coordinates everything except the score, from
public address announcements to media relations to promotional events.
He makes changes on the fly so that the "event presentation"
will be appropriate whether the game is a blowout or a thriller.
For Mills, who says he
started his career with the NBA "as low as you can start on
the totem pole," the job responsibilities don't end with the
game's final buzzer. "I oversee the financial, marketing, and
community relations operations of the team and the day-to-day operations
of the franchise," Mills explains. "I'm also involved,
because of the way they impact our budget, with player transactions."
Mills joined the Knicks
in September 1999 after a 16-year climb through the NBA's corporate
headquarters. He started as an account executive for the league
in 1983 and caught his big break with a move to the NBA's Special
Events unit. Mills recalls, "I moved into that job as the league
was starting to expand globally. . . . My job was to manage, from
start to finish, the events that the NBA produced. Some of the things
that fell under my umbrella were the All-Star game, the draft, the
draft lottery, NBA corporate meetings, and the international events,
including the creation of the first Olympic 'Dream Team.' That was
a fantastic learning experience because you had to understand the
television, marketing, and public relations sides of the business
as well as event presentation."
Mills was a three-year
starter (freshmen were ineligible for varsity athletics at that
time) at guard for the Princeton basketball team and cites his experience
at Old Nassau and playing for coach Pete Carril as major reasons
for his career success. "Princeton made me a more diverse person,
and playing for Coach Carril was wonderful because he teaches you
a lot about yourself," Mills says. "You learn how to be
disciplined and how to look at yourself critically
so that you can improve upon your flaws
or shortcomings. That has been valuable throughout my career."
So valuable that Mills
has landed his dream job. "As a kid who grew up in New York,"
Mills says, "I couldn't help but be a Knicks fan. Now, I get
to experience, from the other side, what the Knicks mean to this
city and this area. Each time I see someone on the train wearing
a Knicks hat or hear people on the street talking about our games,
I feel a sense of pride and satisfaction."
By Matt Golden
|
Larson,
top, watches over the Mariners (pictured below), including,
bottom left to right, Dan Wilson, Jamie Moyer, and manager
Lou Piniella.
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Chris Larson '81 has
his eye on
the ball - and on the Mariners' bottom line
In 1992, Seattle civic
leaders approached Chris Larson '81 and other local businessmen
with a problem: The owner of the struggling Mariners baseball team
wanted to sell or move the franchise to another city. A Japanese
buyer had offered to keep the team in Seattle but he wanted help
from local investors. Larson was a Seattle native and an ardent
sports fan. More to the point, he had been the fourth employee at
Microsoft - one of the fabled founders who designed the software
products that revolutionized computers and who had become wealthy
in the process.
Larson agreed to buy
in, and the deal was done. Today, Larson, who continues to work
full-time at Microsoft overseeing a group of programmers, is the
sometimes proud, sometimes troubled possessor of a practical Ph.D.
in the economics of owning a sports franchise. After eight years
of financial losses, a new stadium built over budget, and ever-soaring
players' salaries, Larson says if he had known then how bad the
economics are in a small- to medium-sized market, he wouldn't have
signed up.
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Photography:
V.J. Lovero/sports illustrated
|
So he says. Last season
the Mariners captured
the division title and battled the mighty Yankees before losing
in the playoffs. Civic pride is as high as Mt. Rainier, the city
has a jewel of a stadium, and Larson and his business partners had
a profitable year for the first time in their ownership.
Last November, Larson
showed a visitor around the one-year-old downtown Safeco Field.
The roof was open to the unseasonably dry day, and the natural turf
field basked in the sun. Anchored to bedrock by 500 80-foot pilings,
the stadium is in a seismic zone rated the same as California's.
"Take me out to
the ball game will no longer do," says Larson, in glasses,
casual pants and white sneakers. "Now it's take me out and
give me padded seats, waiter service, heated concourse, and a sliding
roof. I'm not involved in day-to-day operations, but as owners we
meet once a month to review budgets and policy. The largest amount
of money, of course, is spent on the ballplayers' salaries. Not
a day went by this past summer that someone didn't ask me about
Alex Rodriguez." (The Mariners' brilliant 24-year-old shortstop
asked for a lottery-sized annual salary of $20 million-plus, then
bolted to the Texas Rangers for $252 million over 10 years. This
came on the heels of two other Seattle superstar departures, those
of Randy Johnson and Ken Griffey, Jr., both of whom were traded
because of their impending free agency.) "We want to break
even or make money and have a great team on the field," says
Larson, "but there has to be a balance."
He attends about two-thirds
of the home games with his wife and five children. "Unlike
the fan watching the field, I'm looking at the accumulation of garbage
and litter during the game and wondering are we shorthanded today,
and who's supposed to clean it up." The minority owners rotate
stints as general manager for the partners' interests. While Larson
has so far put that off, he will eventually take his turn.
In the meantime, he devotes
weekends to soccer chauffeuring for his kids, and he reads voraciously,
especially books on the economics of sports, most of which disappoint
him. "Economists fail to appreciate fully the business justification
for some of the issues, for example, public subsidy for new facilities,"
Larson says. "How long should owners have to lose money before
they move to another market? The public can't have their cake and
eat it too. This stadium cost $500 million to build. The owners
paid one-third of that.
"A baseball team
is a bad business for anybody but the players, but - " He gestures
toward the sparkling emerald field, fresh, crisp, and beckoning.
"We have a tremendous sense of accomplishment at turning the
franchise around. We don't regret it, though we're a lot wiser for
the experience."
By Dan White
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Bittler
helps the Fire flame fan enthusiasm. Photography:
Brett Patterson/Black Star
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Sandi Bittler '90
keeps the Fire blazing
Among the idiosyncrasies
that distinguished Pete Carril, Princeton's longtime men's basketball
coach, was a two-handed set shot that he used to launch with unerring
accuracy during the noontime pickup games that prevailed during
his tenure. From 1986 to 1990, Jadwin was home to another, even
more proficient two-hander, one who parlayed that ungainly looking
shot into the second-place slot on Princeton's all-time scoring
list. Two-time captain of the women's basketball team, Sandi Bittler
'90 set 10 Princeton and five Ivy League records in four years of
play, was a two-time Academic All-America, and was recently selected
as Princeton's Female Athlete of the Century - the male choice being
Bill Bradley '65.
Today Bittler calls the
shots off the court, as vice president for business operations at
the Portland Fire, the Women's National Basketball Association franchise
headquartered at the Rose Garden, across the Willamette River from
downtown Portland, Oregon. Her name is listed second on the team's
management roster, directly after chair Paul Allen, the Microsoft
mogul who owns the Fire as well as the Portland men's NBA team,
the Trail Blazers.
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Photography:
Sandy Tenuto
|
One of five kids, Bittler
grew up in Mercer, Pennsylvania, a small town 60 miles north of
Pittsburgh. "I was a tomboy - always playing ball with my twin
brothers," Bittler says. "I was a shooting point guard,
which translated means I was a ball hog. I liked to have the ball
in my hands at all times." A biology major at Princeton with
medical school aspirations, she went abroad after college to try
pro ball, but came home after two months figuring she'd kill a year
thinking about medical school. She killed her med school ambitions
instead and went to work for the NBA league office in New York City
as a fan services assistant. Answering fan mail with questions like
how many league players were over six feet tall, Bittler says she
became pen pals with prisoners all over the country.
After five months she
moved into marketing, shifting her focus eventually to women's basketball.
She was the primary on-site contact and event manager for the 52-game
pre-Olympics schedule of the 1996 women's national basketball team,
which eventually won a gold medal at the Atlanta games. She also
began researching and helping to develop a business plan for the
newly formed professional women's basketball league, the WNBA.
After six years with
the NBA, she moved to Portland in 1996 to work for Nike as director
of women's sports marketing. "It was great!" she says.
"I got to spend Nike money to create opportunities for women's
sports." She negotiated contracts with more than 100 women's
collegiate programs, launched a local program known as "Three
for All," the first basketball skills competition created exclusively
for girls, and marketed the 1998 U.S. women's Olympic ice hockey
team and the 1999 U.S. women's soccer World Cup team before leaving
to take the Portland Fire job in 1999.
Bittler oversees all
business operations for the Fire, now in its second year as a WNBA
franchise. "We averaged 8,300 fans our first season,"
she says, a small crowd compared to that of the Trail Blazers, who
also play in the Rose Garden and regularly fill the 19,980-seat
arena. "Our biggest challenge is building brand awareness.
There's still an attitude that women's sports are inferior."
One way the Fire tries
to address that problem is by positioning the team differently.
"We have a different atmosphere here," Bittler says. "We
want it to be fan-friendly, family-oriented. Our average ticket
price is $14. [A midrange Trail Blazers' ticket is twice that.]
Portland fans provide a lot of support."
Bittler herself hasn't
touched a basketball in recent years, but she's pleased with her
role in promoting women's sports. "I take pleasure in seeing
how far women's sports have come. I like being part of that,"
she says. And the progress that's come about, in part from her efforts,
may end up providing opportunities not only for others, but for
herself. "I could be running the Pittsburgh Steelers one day,"
she muses.
By Dan White
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Reif
is driving to turn the young Indy Racing League into a top
circuit.
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Fast-moving Bob Reif
'89 takes the wheel at the Indy 500
When it comes to his
job, Bob Reif '89 is not afraid to take chances. Maybe that's because
he already lost everything once. Working on the island of St. Croix
in the real estate business after graduating from Princeton, Reif
was wiped out when Hurricane Hugo devastated the island and robbed
him of everything he owned.
Two years later, feeling
unfulfilled in his stable and lucrative financial analyst job with
Hilton Hotels in New York City, Reif didn't hesitate to make a change.
The former Princeton football player bolted Manhattan for a sports
marketing job in California. He recalls, "It was like a sweatshop.
I was making $250 a week with no benefits and was basically dialing
for dollars - cold-calling for sponsors."
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Photography
courtesy of Indianapolis Motor Speedway
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That first position may
not have been glamorous, but it launched Reif on his sports marketing
career. Through chutzpah and luck, he eventually landed a job at
well-known agency IMG, where he represented such sports notables
as golfer Arnold Palmer, quarterback Joe Montana, and football coach
Mike Ditka. Then it was time for Reif's boldest move yet. Three
days after the Dallas Cowboys announced a ground-breaking sponsorship
deal with Pepsi, he made a late-night call to Blockbuster owner
and Florida sports mogul Wayne Huizenga. "It was 10:00 p.m.
on a Sunday night, and I cold-called Wayne," Reif explains.
"I pitched an idea to bundle the Miami Dolphins, Florida Panthers,
Florida Marlins, and Joe Robbie Stadium [all owned by Huizenga]
for marketing purposes."
Huizenga was sold on
the idea and on Reif, convincing Reif to head up his sports marketing
ventures. Within 50 days of joining Huizenga, Reif had sold naming
rights for the Dolphins' stadium (then named for the team's former
owner Joe Robbie) to Pro Player, a sports apparel division of Fruit
of the Loom, for $50 million. With Reif as his point man, Huizenga
formed Front Row Communications to represent his sports entities
and bought SportsChannel Florida. Reif, who became senior vice president
of the Dolphins, boasts, "We controlled everything in Florida
professional sports south of Orlando."
Huizenga eventually sold
off much of his sports empire, and in December 1999, Reif left the
warmth of sunny Florida for the frozen winters of Indianapolis,
where he is currently chief marketing officer for the Indianapolis
Motor Speedway and the Indy Racing League (IRL). "I had a great
situation with the Dolphins," Reif explains, "but how
much better can things get for that franchise? This is a great opportunity
for me to leave my thumbprint on something in sports."
When Reif arrived, the
four-year-old IRL was struggling. So Reif hired people from professional
football, basketball, baseball, and soccer who had an understanding
of sports marketing. And now, Reif says, "The product has really
taken off." The IRL has a new sponsor, a five-year TV contract,
and more races. Meanwhile, the Speedway annually hosts three of
the largest single-day sporting events in the world: the Indy 500,
which attracts over 400,000 spectators, the Brickyard 400, and the
U.S. Grand Prix. Reif also runs those events, overseeing sales,
marketing, retail, television production, food and beverage, and
a number of business fronts.
But he isn't satisfied
yet. "We want to be the premier racing organization in the
world," he says. "Bigger than NASCAR or Formula One!"
By Matt Golden
|
Lucchino
hopes to work the same magic at San Diego's new park as he
did at Camden Yards.
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Larry Lucchino '67
builds them, and they come
"Jackie Robinson,
free agency, and Camden Yards" - George F. Will *68 on the
three most significant post-World War II developments in baseball
When legendary trial
lawyer Edward Bennett Williams purchased the Baltimore Orioles for
$12 million in 1979, a major issue facing the franchise was the
inadequacy of its stadium, Memorial Park, an antiquated facility
used for both football and baseball. Williams wanted a new ballpark
and assigned his protégé, Larry Lucchino '67, to the
task. Lucchino promptly became the driving force behind the creation
of baseball's most revered and replicated modern ballpark - Oriole
Park at Camden Yards.
While
the project was in its infancy, Lucchino examined the most successful
franchises in baseball - the Yankees, Red Sox, and Cubs - in search
of a common thread. Lucchino says he discovered that "they
all play in baseball-only facilities with charm and character."
So, as mirror-image, multipurpose stadiums were springing up across
the sports landscape during the 1970s and early 1980s, Lucchino's
mission was to convince the government and citizenry of Maryland
that they needed to build a baseball-only facility in downtown Baltimore.
To that end, Lucchino authored an Orioles mantra calling for "an
old-fashioned, traditional ballpark with modern amenities."
His vision included, among other things, a playing field with irregular
dimensions and seating that would place fans close to the game.
And to emphasize the distinction between a traditional ballpark
and a generic stadium, Lucchino began fining all Orioles employees
$5 a pop if they used the S-word (stadium) in reference to the project.
Using funds from a newly
created state lottery, Maryland built Lucchino and the Orioles a
publicly financed ballpark that has become the envy of and blueprint
for the rest of Major League Baseball. Attendance at Orioles games
has surpassed the 3.5 million-per-season mark in recent years, and
downtown Baltimore has benefited from an influx of new businesses
and tourist dollars. Following Lucchino's lead, the Texas Rangers,
Cleveland Indians, Colorado Rockies, Seattle Mariners, San Francisco
Giants, Detroit Tigers, and Houston Astros have each built baseball-only
facilities that derive much of their style from the Camden Yards
model.
Lucchino, now president
and chief executive officer of the San Diego Padres, hopes he can
again breathe life into a financially strapped franchise through
a change of address. He and the Padres are in the midst of a ballpark
project (currently stalled due to financial and legal questions)
that Lucchino describes as "completely different and much harder
than the one in Baltimore by a factor of 10." He adds, "We
are trying to advance the state of the art by building a ballpark
that looks and feels like San Diego." The facility, going by
the working name The Park at the Park, will feature a three-and-a-half-acre
park beyond the outfield fences. That park is designed as an alternative
seating option for Padres fans and will be available for public
use when games are not being played.
If and when it is finally
completed, The Park at the Park will provide a generous revenue
stream for the Padres, which Lucchino believes will allow the club
to better compete with baseball's heavy hitters. "The ballpark
is a tremendously important source of revenue for clubs in the medium
or small media markets," he explains. "This will conceivably
generate increased attendance, premium seating sales, and additional
marketing opportunities. Today, financial resources, along with
player evaluation, player development, and other factors, are critically
important for baseball success."
By Matt Golden
Matt Golden '94 is PAW's
assistant editor; Dan White '65 is a freelance
writer and consultant.
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