Sports is big business and growing exponentially around the world. Exec Digital looks at why some sports owners succeed and others fail miserably
By Kevin Doyle
Some are larger than life, walking sound bites seemingly more recognizable than many of their high-priced operatives. Others are benevolent overseers, running remarkably efficient operations while shunning the spotlight. And there are those so inept it makes you wonder why they got into the business to begin with.
They are the owners of professional sports franchises worldwide and theirs is an exclusive club. Many dabble but few last the long run and fewer still meet with sustained success. Whether it’s football or, well, football – soccer for the American readers in the crowd – sport is, first and foremost, big business. Very big business.
In 2003, not a single professional franchise in the world was worth US $1 billion. Today, research tells us an astounding 28 franchises have eclipsed that barrier. Across the globe, men and women are paid princely sums to play children’s games. For proof, look no farther than the world-record £80 million Manchester United accepted from Barcelona for the rights to the exquisite Cristiano Ronaldo on June 11.
The bottom line – put forth decades ago by the truly egocentric American football owner, Al Davis – is simply this: “Just win baby!”
The Los Angeles Angels’ all-star outfielder Torii Hunter echoed that sentiment in May. Speaking with Sports Illustrated, Hunter said: “You can have all the money in the world but be in last place and [be] miserable. [Angels’ owner] Arte Moreno wants to win. When you got a guy like that, I want to be a part of that team.”
We present three who have changed the playing field:
The rock star
Dallas Mavericks’ owner, Mark Cuban, is just that – a maverick. He made his bones and a few billion during the dot.com boom, wears his heart on his sleeve and most often dresses in t-shirts and jeans. He rubs plenty of people in the stodgy NBA hierarchy the wrong way with his exuberant and occasionally outlandish behavior.
He berates referees for blown calls and acts much like an overpaid cheerleader while whipping Dallas diehards into a frenzy from his courtside seats. He’s never met a microphone he didn’t like and has an opinion – on everything. Read his blog (www.blogmaverick.com) when you have a moment. You might be surprised.
He also knows how to run a franchise. Cuban purchased the majority stake in the Mavericks in January 2000 for $285 million from H. Ross Perot Jr. At the time, the Mavs were a perennial also-ran with a mediocre playoff history. In the nine years since Cuban’s purchase, the Mavericks have won 69 percent of their regular-season games, made nine consecutive playoff appearances and played in the NBA Finals for the first time in 2006.
The team has increased in value to $486 million (£300 million) on Cuban’s watch. His commitment to winning and willingness to pay whatever amount is necessary to keep the Mavs competitive has made him a hit with players and fans alike.
The fan who would be owner
Bob Kraft has been a staunch fan of the NFL’s New England Patriots since the franchise was founded in 1960. It’s hard to imagine, however, that he envisioned owning the team when he bought season tickets for his family in 1972. Or is it? In 1985 he quietly put in motion a plan that would lead to his eventual purchase of the team iin 1994.
First he bought an option for land on which the team’s former stadium was located, then bought the stadium and its lease out of bankruptcy court in 1988. Former owner James Orthwein offered Kraft $75 million to buy out the remainder of the lease so he could move the Patriots to St. Louis in 1994; Kraft countered with what was an NFL record $175 million to purchase one of the league’s more moribund franchises.
My, how times have changed. Since Kraft’s arrival, the Patriots’ value has grown to the point where they are now ranked fourth among the world’s highest-valued franchises at $1.32 billion. Every home game has been sold out for 15 years and, in 2002, the team moved into the palatial Gillette Stadium.
Under Kraft-y Bob, the Patriots have emerged as the closest thing to a dynasty in a league that embraces revenue sharing and is built for parity among its teams. Kraft’s management team and coaching staff has produced five Super Bowl appearances and three Super Bowl championships since his arrival.
The international interloper
To sport fans, Roman Abramovich is known, first and foremost, as the Russian owner of the Premier League’s Chelsea. He also has money to burn, ranking as the 51st richest person in the world with a net worth of around £7.5 billion. In Russia, he served on the State Duma and was the Governor of Chukotka from 2000 to 2008, but those are different stories for a different time.
Since paying £60 million for Chelsea in 2003, Abramovich has spent more than 10 times that amount with the ultimate goal of making Chelsea an immediately recognisable worldwide brand. Since Abramovich’s takeover, Chelsea has captured six major European football trophies – the Premier League, League Cup and FA Cup twice each, success bettered only by Manchester United.
Though he is no longer the richest football club owner in Britain – that honour belongs to Manchester City’s Sheikh Mansour bin Zayed Al Nahyan with a wealth in the vicinity of £15 billion – there are those who argue Abramovich’s involvement with Chelsea distorted the football transfer market in Europe.
Abramovich attends nearly every Chelsea game, but his tempestuous personality makes him notoriously difficult to work for. Since 2007, he has sacked a series of team managers, including José Mourinho, Avram Grant and Luiz Felipe Scolari. This year manager Guus Hiddink returned to his permanent position as Russian National Team manager following the conclusion of the English season.
In the final analysis, some own teams to feed their ego, others do so for the love of the game. If there is one thing the members of this closed club know to be true, it is this: Whether in person or on television, an endless supply of insatiable fans will pay the freight to watch adults play the games of their youth at the highest possible level.