The Business of Sports

What a week. Shocking, interesting and disturbing....are some of the words I would use.
The amount of $$$$ we are talking about here are staggering.

Number 1 - The Sale of MLSE

Maple Leaf Sports and Entertainment has been sold.

This deal was a blockbuster to say the least...and I did not see it coming. The two partners are Rogers and Bell...corporate enemies, both competing for the same customers, both jockeying for your hard earned money...whether it is your TV, your phones or your Internet...they want your business.

Suddenly these two "enemies" are "partners" in a huge, shocking deal, purchasing the brand known as MLSE from the Teachers Pension Fund. They now are 75% owners, with Larry Tanenbaum owning 25%, and the new partners only had to pay $1.32 billion dollars. That's all. What a deal!!

The possibilities of media opportunities that is pairing can provide are absolutely mind boggling and it is really going to be interesting to see what happens.

I thought about what it would have been like to be in the meeting where the decision was made to make this purchase. I am sure at some point, someone would have said, what are the longtime future prospects like for MLSE....will there be a down turn in interest? I think we know the answer to that. The answer is a resounding NO! The addiction to the Maple Leaf brand is nothing short of astounding. Have a look at any bar on the night of a Leaf game...or look at the insane media frenzy surrounding the Leaf's after any event...practice, game...anything. The real obsession though take place down at the ACC. If you go into the Real Sports Bar, where the prices are ridiculous, it is lined up forever. If you are lucky enough to get into a game...you will be privileged to lineup for a beer and a slice of pizza for $16. That is one medium beer and a slice.

Oh yes, I think this insanity will continue to play out for a very, very long time.

Only two question remain. Will my cable bill go up? And the big one...Will we win the Cup....after all, that is all we care about.

Number 2 - The Los Angeles Angels

The USA has gone through some pretty tough times over the last few years, people losing their homes and jobs...and trying deperately to figure it all out.
Albert Pujols and C.J. Wilson do not have this problem. Both players were signed to mega deals this week and the face of The Angels has been radically changed.

The deal with Pujols is for 10 years, includes a full no-trade clause and is worth between $250 million and $260 million, a source told MLB.com. Ken Rosenthal reported on MLB Network that the exact value is $254 million, which would place it second behind the record-setting 10-year, $275 million contract Alex Rodriguez signed with the Yankees in December 2007. Wilson gets five years and $77.5 million, with a full no-trade clause for the first two years and a partial no-trade clause (featuring eight teams) for the last three.  AMAZING MONEY. How ever will they pay for this? (sarcastic tone)

The Los Angeles Angels, following these huge signings,  have reached a lucrative long-term agreement with FOX Sports. The Los Angeles Times reported the pact is worth at least $3 billion for a length of 20 years. The deal has yet to be officially announced. Money...wow...where does it all come from.

The insanity of the money in these two deals are without description...but they are all made possible simply because of sports fans. We go to the games, watch them on TV, buy the merchandise, drink the beer etc. etc. ...and we do it with excess, year after year. We are the reason these deals can be made. Seems kind of funny to me somehow.