Author Archives: Joe Favorito

Fantasy Betting Has Long Been Part of the Scene – Just ask Mets and Yankee fans

Fantasy Betting Has Long Been Part of the Scene – Just ask Mets and Yankee fans

By TERRY LYONS, Contributing Columnist
@terrylyons @The Daily Payoff

The intersection of sports gambling and fantasy sports has been a key crossroad of the American sports scene long before the daily fantasy providers were sinking millions into a constant stream of radio and television ads.

While betting on the outcome of games, usually on a money line, might’ve put former Cincinnati Reds great Pete Rose in a predicament, the average baseball fan has long enjoyed the thrill of predicting the future.  Whether handicapping the pitching duel or wagering ridiculously on the very next pitch being a ball or strike, the experience has captivated the fans.

As the current climate continues to change, quicker than the ice melts in Antartica, the leading sports executives are recognizing the change and see the business opportunity on the horizon. But they would only have to look back to the summers of ’74 and ’75  in Queens County, New York to have seen the future.

While the New York Yankees and New York Mets were each playing mediocre baseball, teetering around .500, fans at Shea Stadium were treated to games nearly every night as the Yankees were relocated across the East River when The City of New York renovated Yankee Stadium for two seasons. The Mets’ roster featured Cy Young award winner Tom Seaver, who went 22-9 in ’75 when his club finished 82-80 and 10 games back of the “We Are Family” Pittsburgh Pirates, and the Yanks’ roster included the core of eventual ’77 and ’78 World Series championship teams. Yet the opportunity for a baseball fan that summer was simply the ease of getting great seats at prices that were next to nothing, especially for the displaced Bronx Bombers.

It was the perfect summer for high school buddies to head out to Shea, grab box seats for $5 apiece and play a game we simply called, “Pass the Hat.” We knew it was probably illegal but a harmless form of wagering.
Little did we know, it was an early form of fantasy baseball that kept us fully engaged each and every at bat.

The rules were simple. The game worked best when you had at least four participants, great when you had six or eight. To start, someone would take off their baseball cap and everybody would “ante up” a buck by tossing it into the cap. Batter up and the person holding the hat was eligible to collect the loot if a player got a hit when you were holding it. If the batter made out, you were obligated to toss in another $1 buck and pass the hat to your buddy seated next to you. If a player walked, you passed the hat free of charge, so, in our game, a walk was not as good as a hit. One caveat was the luck of holding the hat when a home run was hit. In that case, not only did you collect the money in the hat, but everyone participating was required to toss another dollar at the lucky winner, and then ante up again before the next batter.

As the years went by, we entertained ourselves with some other variations of our game, including an end-of-inning wonderkind called, “Grass-Mound-or-Other,” which required you to guess where the ball would end up after an inning ending out. After the final out, say a fly ball to left field, we eagerly watched the left fielder jogging towards his dugout to see if he would roll the ball to the pitchers mound and whether it would rest on the dirt hill (3-1 odds) or just off the edge and on the infield grass (even money). If the ball were tossed to a fan in the stands or carried into the dugout, all bets were off unless you had previously designated “other” which would get even money. There were many a times we had to stand on our infield box seats to get the proper angle on a ball tossed over the mound and nearly out-of-sight. It was glorious way to pass the time and highly intriguing, with the proof always shown through the fact neighboring fans would want to “get into” the game.

Surely there are hundreds of other New Yorkers with similar stories and different variations of the games they played at the ball field, and tons of examples of how soccer fans at Arsenal or dozens of other European Premier League clubs can wager on the first goal, the next goal or some other occurrence whether it involved the outcome of the game or just the next statistical transaction.

To date in the North American sports world, no league or venue has been permitted to get into the action because of federal laws. The recent influx of daily fantasy sports (DFS) is the first hint of gaming activity on an “official” basis, as Major League Baseball, via its digital media arm, MLB Advanced Media, has partnered with Draft Kings on an official sponsorship package.

That package consists mostly of touting their “experiential” offerings for tickets and other game enhancements or hospitality and trips.

The NBA partnered with Fan Duel, taking an equity position. However, the DFS offerings, to date, have only been salary cap-style games. The site infrastructures of either Fan Duel or Draft Kings have not been altered to allow in-game adjustments to line-ups or other such variations, such as predicting fantasy stats in an “At Bat” or single inning.

NBA Commissioner Adam Silver has boldly stated his viewpoint to potentially legalize sports gambling and take it away from the off-shore web sites or back-room bookies and into the open. His counterparts in charge of other major sports leagues have not been so forthcoming, especially the NFL and MLB which both seem to be burying their heads in the sand while Silver steps up, communicating transparently by way of his breath-of-fresh-air op-ed piece written in The New York Times last November 13th. http://www.nytimes.com/2014/11/14/opinion/nba-commissioner-adam-silver-legalize-sports-betting.html?_r=0

Wrote Silver in the NYT, “Betting on professional sports is currently illegal in most of the United States outside of Nevada. I believe we need a different approach,” noting the massive amounts of money wagered through “illicit bookmaking operations” or “shady offshore websites,” as he noted the popularity of sports gambling in the international world that is so much a part of the NBA’s global business plans.

In closing, Silver wrote under his by-line, “I believe that sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.”

But what wasn’t a major statement in Silver’s op-ed or yet recognized by the powers-that-be in any of the North American major sports, is the fact more lenient federal and state laws on gaming and fantasy sports will bring about more engagement with the fans.

“It can keep people much more engaged at so many different points in a game,” said Joe Favorito, the Director of Industry Relations and a faculty member at Columbia University’s sports management program. “If a baseball game score is one-sided, you might stay for the entire game,” he said while noting the payoffs for “In-game” wagering/entertainment might be a coupon for a free hot dog in the eighth inning or a promotion to get more 20-somethings to attend a different game, later in the season.

So while the wager doesn’t have to be about money, the bottom line for a sports team, league or venue should now be to use newfound, hand-held “app-crazy” technology and obvious widespread acceptance of gaming, to offer-up another form of in-game entertainment and keep the fans happy. Traditionalists might scoff at the idea, but they don’t have to play, just the way some sports fans go out to the races just to see the horses run or intelligent readers buy Playboy for the articles.

Personally, I’d like to see a much more transparent viewpoint come from the Park Avenue hallways of both Major League Baseball and the National Football League, as those two sports have the most to gain. But, until then, I’ll head out to Yankee Stadium or the new Shea (they call it CitiField), with my old buddies, my baseball cap and $20 or $30 in singles.

 

America’s Best Racing Pays Homage to David Letterman – Sort Of

By @TheDailyPayoff
As the hype builds toward the Belmont Stakes next month and the final leg of the Triple Crown series, America’s Best Racing is joining the parade.
Seizing on the David Letterman end-of-an-era craze – Dave’s last show is happening tonight – ABR thought it would try its hand at at Top 10 list.
Except for the fact that Letterman took over The Late Show five years into the Triple Crown drought and will leave before the spell has been broken, we are not sure what else the two have in common.
But like two weeks ago when the May-Pac fight and the Kentucky Derby happened on the same day, the convergence of the two major media events does have one goal in common.
As Letterman retires on a high note, American Pharoah also will attempt to go out a winner.

Here’s ABR’s Top 10 List

http://www.americasbestracing.net/the-latest/news-stories/2015/5/19/top-ten-reasons-its-been-37-years-since-the-last-triple-crown/

American Pharoah Top Dog in Preakness Horse Race

By Frank Scandale @FScandale @TheDailyPayoff

If the Road to the Triple Crown is paved with obstacles, those betting on favorite American Pharoah don’t see them as of the second leg of the quest.

The winner of the Kentucky Derby is sitting as the solid favorite today, with odds ranging from 4-5 today to 10-13, for instance, despite his rail position. His Derby runner-up pals are sitting just behind him with various bookmakers and racing columnists.
Racing observers and odds make

Yet, not everyone is going with the prevailing thinking based on the Derby’s outcome. More on that later.

Racing observers and odds makers alike are fairly consistent in their choices of Pharoah, Firing Line and Dortmund in some order of Win, Place and Show.

“I think the top three Derby horses repeat in the Preakness,” said Jay Kornegay, vice president of race and sports operation at Westgate Casino in Las Vegas. “The order of finish might be different.”
VegasInsider.com lists Bob Baffert’s two colts, American Pharoah and Dortmund at 4-5 and 7-2, respectively. While Firing Line is listed at 4-1. http://www.vegasinsider.com/horse-racing/odds/preakness/
It has Diving Rod the next closest at 12-1.
OddsShark puts Pharoah at 10-13, Dortmund and Firing Line both at 17-4. http://www.oddsshark.com/horse-racing/preakness-stakes-odds

New York Times writers Joe Drape and Melissa Hoppert also produced their picks and analysis of the race with Drape bucking the prevailing thinking by picking Firing Line, and Hoppert going with Dortmund http://www.nytimes.com/2015/05/15/sports/handicapping-preakness-stakes.html?partner=rss&emc=rss&smid%3D=tw-nytsports&_r=0

Then there is Joe Kristufek. He’s seeing it a little differently.

One of America’s Best Racing ambassadors and the racing analyst for Churchill Downs, Kristufek is picking Divining  Rod to break into the top three and even threaten for the win.

“As far as loooking at it from the perception of the Derby, it seems obvious those horses could run 1-2-3 again,” Kristufek admitted. “But I’m interested in Divining Rod. That horse has a tremendous pedigree.”

He said Divining Rod’s mother is Precious Kitten, who has earned $2 million, and his uncle is Kitten Joy, one of the best sires ever.

“The family lineage all around on Divining Rod is impressive,” he said. “Being the contrarian, and looking for value potential…you can look at this race two ways. Lots of fans want American Pharoah to win and compete for the Triple Crown. Or you can look at it from a wagering perspective and look for value.

“And I think this horse is going to run a huge race,” he said.

Kristufek also noted that Diving Rod has had five weeks off, unlike most others who have had just two weeks off. He’s also in the 7th post positon of a possible eight that plays to his natural speed that will keep him close with little chance for interference on the outside.

He said the morning line was 12-1 on Diving Rod, but said you might get 8-1, which would be fair.

“He’s going to have to take another big step forward in the Preakness,’ Kristufek said.

The race, held at Pimlico Race Course in Baltimore, MD, is shorter than the Derby, so some think Dortmund has a better chance this time of upsetting American Pharoah.

Post time is 6:18 ET and the race can be seen on NBC.

Deflategate Suspension Shifts Odds on Patriots’ Super Bowl Chances

By Frank Scandale @Fscandale @TheDailyPayoff
Las Vegas odds makers say the four-game suspension meted out to Patriots’ quarterback Tom Brady triggered adjustments in their outlook on the Super Bowl champs repeating, but all bets are off on final lines until an appeal is heard.
For those who put the season opener against Pittsburgh back on the board, their point spread against Pittsburgh also got much tighter.
All of this might have been expected given untested, back-up quarterback Jimmy Garappolo is the likely on-deck replacement. But what is still uncertain for odds makers is how many games ultimately Brady will be suspended on appeal, which was filed by Brady Thursday and agreed to be heard personally by NFL Commissioner Roger Goodell.

That decision by Goodell is in itself a controversy, as the players’ union had urged the commission to appoint a neutral party.

All this drama is being played out in public while sports books such as Johnny Avello, executive director of race and sports operations at Wynn Las Vegas, are busy adjusting lines and watching this like a Shakespearean play. Avello said after the news came out on the lengthy suspension, he made adjustments to who wins Super Bowl, dropping the odds for the Patriots from 7-1 to 9-1.

Johnny Avello Horizontal 2 4Mg

“I was giving the odds at 5-2 to win the AFC conference and now it’s 4-1,” Avello added. “The reason is if they miss him for four games, the other teams could get possible jumps. Miami, Jets, Buffalo all have been lowered a bit…if it is two games, I’ll back off a little bit, maybe go to 8-1.”
The opening game is Pittsburgh and without Brady Avello says its a pick ’em game. The second game at Buffalo will be “difficult.” Jacksonville is up next and at home and he gives the Pats a win there, but the fourth game (after the bye week) is a tough game with Dallas.
“They could be 2-2 after four games if he’s not around, Avello said. “The Super Bowl champs get a tougher schedule.”
He also believes the Pats will not look for another quarterback.

Meanwhile, Jimmy Vaccaro, head of South Point Casino’s Race and Sports Marketing division, said the point spread for the Patriots-Steelers opener dropped to 1.5 from six points once the suspension was announced.
“Brady can move a game about six points. But with lots of time to prepare, and you adjust for the Superbowl win, we move it up a tick, Vaccaro said. “As for the rest of the division…the Jets, Bills and Miami, they are all about even. So now if you put the four games without Brady, the division up for grabs. We are just waiting an seeing how many games this suspension will be.”

Jimmy Vaccaro

Jimmy Vaccaro

Bookmakers in general had the Patriots to win 10.5 games prior to the suspension but now lowered to 10 games on the over/under.
”You have to remember that Tom Brady is the top quarterback in the league, but you can’t throw away the rest of the team. It is still a Superbowl winning team.”

Jay Kornegay, vice president of race and sports operations at Westgate Las Vegas Resort and Casino, said originally there was not much of an adjustment planned as nothing in the investigation suggested a four-game suspension was likely.

Jay Kornegay

Jay Kornegay

“We were thinking a fine and a one-game suspension,” said Kornegay, a lifelong Broncos fan and Colorado self-professed “homer.” “And a one-game suspension would make minor adjustments.”
Once The Wells report came out, Kornegay took the opening game against the Steelers off the board, where the Pats had been a six-point favorite.
“Once they announced four games, it was chaos for day and we had to make adjustments,” he said.
Additional fallout included raising the Super Bowl champs’ odds for a repeat to 8-1 from 7-1 after the suspension was announced. They also simultaneously changed the Denver Broncos line to 12-1 from 14-1 on the news.
The odds of the Pats winning the AFC conference was raised to 7-2 from 3-1, as well.
Oddsmakers explained the reason for the relatively minor adjustments was because they knew Brady would appeal and there’s a good chance the suspension would be reduced.

“These numbers are based on a two-game reduction already factored into this line,” Kornegay said, adding the line would be adjusted again if the four games are upheld.
Though initially Westgate took the Patriots-Steelers game off the board, it is now back on with the Patriots a two-point favorite. Why?
“They’ve done this before with Matt Cassel (2008 season when Brady got injured in the opener and was out all season) and won about 10 or 11 games (11 actually). They’ll be at home and they’ll be a lot of emotion there.”
He also thinks Coach Bill Belichick will come out blazing with something to prove.

Now, let’s see what the line is on that bet.

 

DraftKings Finds Another Partner With A Million Dollars At Stake

By @TheDailyPayoff

You have to give it to DraftKings for looking high and low to find not just the bigger partnerships, but the most creative niche ones to draw attention in their Mano a Mano battle with Fan Duel as leaders in daily pay sports fantasy.

It’s latest partnership came Tuesday, when DK joined forces with another “disruptor” in sports, the Boston-based, The Basketball Tournament (TBT), a single-elimination, five-on-five, winner-take-all, open-application tournament.

The pair joined forces to come up with a promotional partnership for their 2015 event, which runs in July and August on ESPN (another DraftKings partner by the way). One of the 96 teams will get some elite status as being the “official” DK entry in the field.

Here’s how it works according to the press release: In order to win the DraftKings sponsorship, teams and their fans will compete in a DraftKings daily fantasy game centered on the NBA Conference Finals. Whichever fan or TBT participant wins the contest will also win a premium experience for himself or herself, a guest, and each member of his or her team.

The DraftKings sponsorship package includes travel to a region of the team’s choice, DraftKings-sponsored uniforms, and an apparel package from other official TBT providers, including Rock ‘Em Socks and iSlides. The uniform sponsorship represents a first for DraftKings and a first for TBT as well.

The interesting aspect of the partnership is its ties to the play in the NBA Conference Finals. This way a wide number of the participants ( 96 teams in the field when it is unveiled)  makes for a solid growth pattern for a sport – hoops – that is not as much in the DK sweet spot as say baseball or the NFL. It also gives DK visibility in July when fans might be away from pay fantasy and are getting ready to gear up for NFL, which remains the big money area for pay fantasy.

“Our business is built around the passion of sports fans. The idea that anyone can build and be part of a championship team in The Basketball Tournament aligns perfectly with our DFS offering,” said Jeremy Elbaum, Vice President of Business Development at DraftKings in the release. “At DraftKings, any given day someone could skillfully create the perfect line-up and become a millionaire.”

In 2015, The Basketball Tournament will have 96 teams playing for a winner-take-all prize of $1 million. Opening rounds begin July 10-12 at regional sites in Los Angeles and Atlanta and continue July 17-19 in Chicago and Philadelphia with the winners playing down to an August 2 final in New York. ESPN’s platforms will carry a bulk of the early round games, with the semi-finals and finals airing live on ESPN as previously reported.

The question looms will this type of promotion change the game for Draft Kings? No. However like some of their other niche partnerships they are showing creativity and flexibility that brings casual sports fans to their platform and helps increase brand loyalty overall. Every time they touch a fan in a sport they are interested, they have a chance at conversion and for sure anyone interested in TBT is a core hoops fan or participant. It is low cost, with a chance at solid impact for DraftKings, and a nice talking point for an event looking to find its footing, a solid bet on a partnership for all involved.

The Road to the Triple Crown Releases More Ads to Promote Racing Season

AmericaPharoah-2By @TheDailyPayoff

With 2015 Kentucky Derby champion, American Pharoah, officially aboard the Road to the Triple Crown, America’s Best Racing today released episode 2 of its sequel 3-part series of digital video ads filmed and produced by ABR Films promoting the Road to the Triple Crown.

The series of ads follows a prior four-part ad series designed to spur interest in the industry through the three legs of the Triple Crown effort, said to be one of the most difficult achievements in sports.

Having only happened 11 times, with the last time occurring in 1978 when Affirmed won The Kentucky Derby, The Preakness and the Belmont Stakes, the horse folks are pinning their hopes on this year is American Pharoah.
Pharoah won the Derby to put himself in position to win the Triple Crown’s second leg, The Preakness on this Saturday.

You can view ad no. 2 of the sequel campaign here: https://youtu.be/p3rau7_JlPI

Episode 1 can be viewed here: https://youtu.be/HqcJw2jUSX8

For those interested in the original four-part series, you view them below.

Episode 1 can be viewed here: https://www.youtube.com/watch?v=BAxtFGM05bw

Episode 2 can be viewed here: https://www.youtube.com/watch?v=_TfYQYTocAo

Episode 3 can be viewed here: https://www.youtube.com/watch?v=Ns_esR_RXZQ

Episode 4 can be viewed here: https://www.youtube.com/watch?v=Kj5IXiMM1ws

More Probable Than Not Observations on Deflategate and Other Sports Trends

By Terry Lyons @terrylyons @TheDailyPayoff

After four months of speculation, accusation and humiliation, the National Football League via an independent investigation came down from their Park Avenue mountaintop to decry, in a 243-page report, “that it is more probable than not” that New England Patriots QB Tom Brady and two locker room attendant/ball boys were involved and aware of circumstances involving the improper deflation of footballs used in this year’s AFC Championship football game.

With that in mind, I thought it might be useful to examine a few other occurrences that might be “more probable than not.”

First, regarding the football game in question: Because of the 45-7 score in favor of the Patriots, it is more probable than not that the slightly deflated footballs utilized by the Patriots had no bearing on the outcome of the game. However, it is more probable than not that they helped inflate the number of fantasy points accrued by RB LaGarrette Blount.

With the report conducted by Ted Wells and a team of lawyers from Paul, Weiss, Rifkind, Wharton and Garrison coming down and the NFL soon to dole-out punishment, it is more probable than not that back-up QB Jimmy Garoppolo will be starting when the NFL season kicks off with the Patriots vs. Pittsburgh Steelers game on September 10th.

Leading up to that date, it is more probable than not that Patriots head coach Bill Belichick will no longer be quoting Mona Lisa Vito.

Away from football, it is more probable than not that basketball fans raised their eyebrows when Madison Square Garden boss Jim Dolan hired Isiah Thomas to be the president and co-owner of the New York Liberty. It is also more probable than not that Bill Cosby will not be a WNBA owner.

In boxing, it is more probable than not that a few million fans who purchased the Mayweather-Paquiao pay-per-view for $99 will be stupid enough to do it again if there is a rematch.

In hockey, it is more probable than not that viewers will change the channel from a playoff hockey game unless Emmy Award winning play-by-play man Doc Emrick is calling the game.
http://www.nj.com/devils/index.ssf/2014/05/listen_amazing_doc_emrick_soundboard_lets_you_hear_all_of_legendary_nhl_announcers_quirky_phrases.html

It is also more probable than not that I would never look to CNBC or USA Network for a Stanley Cup playoff hockey game.

Along those lines, for some reason, I have tabbed TruTV as a favorite on my remote, but I haven’t watched a minute of TruTV other than NCAA March Madness.

It is more probable than not that most of the NBA’s postseason awards will leak to the media before they are officially announced by the league. Similarly, it is more probable than not that the NBA Players Association will screw-up their own version of postseason awards.

It is more probable than not that the NCAA will intervene and put a stop to open, free transfers of graduate students. And, it is more probable than not the NCAA will not care when there is significant backlash from the players, err, student-athletes.

It is more probable than not that, after David Letterman and Jon Stewart retire, the funniest late night tv act will be the NBA on TNT’s Ernie, Shaq, Kenny and Charles.

It is more probable than not that the NBA will ignore the problem of “Hack-A-DeAndre Jordan” and just let the trend play out.

It is more probable than not that NBA reporters will not bring up what might be in James Harden’s beard.

It is more probable than not that Tim Duncan will be playing next April 25th, on his 40th birthday.

Heading into The Players Championship, the fifth major so-to-say, it is more probable than not that Tiger Woods will not catch Jack Nicklaus or … Wilt Chamberlain.

It is more probable than not that LA Clippers reserve power forward Big Baby Davis will never be mistaken for the Royal baby.

And now for some serious predictions:

It is more probable than not that American Pharoah will not win the Triple Crown, but I like his chances.

It is more probable than not that the Stanley Cup Finals will involve teams that no one cares about.

It is more probable than not that Golden State will win the NBA championship, and I like their chances even more than American Pharoah’s.

And lastly, it is more probable than not that there are already too many candidates for the 2016 Presidential election.

Monmouth Park Sets to Open, But With An Uncertain Future for Legalized Sports Gambling

By Joe Favorito @JoeFav @TheDailyPayoff

This weekend millions will take to the road to celebrate everything from graduations to communions and confirmations to Mother’s Day, but on Saturday racing and gambling enthusiasts and sports business people will also travel to Monmouth Park for the opening of the 70th season at the Jersey Shore’s crown jewel.

With one eye on the past and another on the future, those hopefuls wonder what the future will bring at Monmouth in Oceanport, NJ, where supporters continue the quest to bring a new face to the racing venue.

The park’s current owners, the Governor’s office and a host of state legislators continue to push for year-round casino gambling like what is now featured at the at former Yonkers Raceway, now Empire City Casino on the trotters side, where the racing is but an appetizer for the legal gambling.

The state will put up a referendum for vote in November that would allow casino gambling at two North Jersey sites, the Meadowlands and maybe Jersey City and if it passes, Monmouth Park and even struggling Atlantic City would get a piece of the financial pie.

The work that the New Jersey Horsemen’s Association has done in making the track already fan and family friendly in their four years of ownership has been strong. Corporations can get their own race for a fraction of the cost of a trip to a Mets or Yankees game, and can even make some money legally while you root your favorite thoroughbred’s home. The weekend of the Haskell will bring big crowds and some other Stakes weekends will also swell the stands, but for the most part a day at Monmouth is a day, unfortunately, where crowds are rare.

The big lure for many on the business side remains that ongoing fight to bring legalized sports gambling to the track and marry it with live thoroughbred racing. Challenges continue to be put forth and fought back in the courts, and dates keep getting delayed for when a legal sports book can start, even as a trial with non-financial prizes.

As far as horse racing as a stand-alone draw, last week’s Kentucky Derby with New Jersey-owned American Pharoah winning in front of a record crowd of 170,000 at Churchill Downs continues to show that elite racing has a pulse. Whether that can translate over business at regional tracks away from The Breeders Cup or The Triple Crown or even Saratoga or Keeneland on a consistent basis in the northeast remains a dream, despite all the charm and the effort that has been put into making Monmouth more of a destination. Critics say the horse racing demographics  are too old, the meets too long and the lack of star power too prevalent to ever bring horse racing back to the masses.

Whether sports gambling will save brick and mortar facilities like casinos and racetracks is part of the national debate on wagering. If most of the gambling, which experts say could be in the billions, is done on a mobile device, why would millennials, a favorite target of supporters, flock to a racetrack? Las Vegas has taken the time to build itself as a warm weather destination with many things to do beyond gambling on games, so the draw is the experience, not the gambling room per se. A track like Monmouth during its racing season could use sports gambling as the bait, and could use its location, its grounds for concerts and other events, and then the thrill of horse racing as the switch to fill the stands.

If that happens, you could see brands investing in marketing in and around the track on weekends, with new food offerings and other services like we see at ballparks popping up with a vested interest in growing the fan experience. The track would also get a solid infusion of capital from whoever its traditional betting partner would be. Right now it appears that William Hill, the British bookmaker that is one of several betting houses to have set up a business structure in the US, might be the partner of choice. Monitoring the gambling debate, it already owns a bar at the track and sponsor the Haskell. There the investment was low risk, high reward should sports gambling shake out and Monmouth becomes a daily and weekly hub on the gambling side.

Where all this plays out is now anyone’s guess. Pay fantasy companies like Draft Kings and Fan Duel have invested and raised millions taking advantage of the pay fantasy loophole in Federal law right now.

At the recent Sloan MIT Sports Conference most media types in the sport, and league officials from the NBA and MLB (who are monitoring the situation as closely as the horse racing industry) were uniform in saying that the states challenging the Federal overturn of sports betting laws will not be successful. They say ultimately sports gambling will be handled, and regulated by a consistent federal law. The estimate was that it would happen, but not before at least 3-5 years, factoring in a Presidential election cycle which could slow the process in 2016.

Until then, a beautiful track like Monmouth will continue to operate and tread water with the hopes of a change and an upswing in overall business, while trying to ride a wave of casual interest that its primary tenant, the thoroughbreds, may have as the Triple Crown plays out.

After that, the hope of warm weather and some strategic marketing will try to lure casual fans to supplement the die-hards as the track, and the horse racing industry in general, remains in flux as a sports business, with a glorious past and the promise, maybe of better days ahead with bets going down on the Rangers and Yankees bolstering the run for home just beyond the grandstand glass.

Coming Up on the Rail…You Decide the Filly’s Name

By @TheDailyPayoff

If you ever wondered where folks get those clever names for race horses, this could be your chance to get in on the action.

Who named Soapstone Prairie, for example, and why?

America’s Best Racing and Ninety North Racing are letting the public in on the process and are hoping you can name a two-year-old filly by reading up on its background and pedigree and then coming up with a creative name.

The person who submits the winning name will receive, along with a guest, the opportunity to experience a full day of racing fun when and if the horse being named races.

“We’re strong believers in the value of showing people that horse racing is approachable, accessible and, ultimately, a lot of fun,” said Dan Tordjman, brand ambassador for America’s Best Racing. ” Our partners at Ninety North Racing stand behind that message and behind our push to strengthen the sport at every level.

“We thank them for allowing us the opportunity to share in a big part of the experience of what it’s like to own a racehorse,” Tordjman continued. “In fact, some might say naming a horse is the best part of ownership, and the thrill of winning is only eclipsed by thrill of hearing a name you came up announced in the winner’s circle.”

The day will include watching morning training along the backstretch, meeting the horse named by the winner, and spending the day enjoying the races from a box at either Saratoga Race Course or Belmont Park in New York.

First suggestion is to look at the horse’s pedigree and backstory below, follow The Jockey Club guidelines for horse names, come up with a creative name for the horse and email it to [email protected], along with your name, age and location.

Entries must be submitted by May 29, 2015. The person who submits the winning name will be contacted via email and announced on America’s Best Racing social media platforms as well as AmericasBestRacing.net.

DanContestInsideThe horse was foaled, or born, on March 15, 2013. She’s a 2-year old filly, a female horse, and she’s the daughter of Proud Citizen and Tiz Maie’s Day. That makes her a full-sister to Went the Day Well, who finished fourth in the Grade 1 Kentucky Derby in 2012 after winning the Grade 3 Spiral Stakes.

Ninety North Racing purchased the filly in January 2014. She has trained in Florida and recently shipped to New York, where the owners plan to race her. If all goes according to plan, she could be running as soon as June or July at Belmont Park.

So, do you have a name you’d like to submit? See if it’s eligible by testing it out in The Jockey Club Online Names Book, which allows you to check a name to see if it is currently in use or otherwise unavailable. (Hint: Beat the Odds, Dack Janiels, Babyneedsnewshoes and Soap Town Road, for instance, is already taken.)
https://www.registry.jockeyclub.com/registry.cfm?page=namesrch

For more details on naming a horse, check out The Jockey Club’s official guidelines.

– See more at: http://www.americasbestracing.net/en/the-latest/news-stories/2015/5/6/ninety-north-racing-abr-name-the-horse-challenge/#sthash.fQyEo299.dpuf

Elite former Athletes Tackle Gambling, Fantasy and Life After Playing

By Joe Favorito @JoeFav and Frank Scandale @FScandale @TheDailyPayoff

No matter what the sport or the level of management, the infusion of gambling and fantasy gaming into the conversation is hard to avoid. Tuesday night at the regular monthy gathering of the New York Sports Venture Capital proved the point as three elite former athletes took turns tackling those and other hot topics.

Former member of the New York Giants Charles Way, former ATP pro Patrick McEnroe, and former college basketball star and ex-coach of the New York Knicks and Vancouver Grizzlies Stu Jackson did not hold back when talking about the issues and challenges athletes face post playing career, nor did they shy away from the issue of analytics, fantasy and gambling.

Television personality Julie Alexandria kicked off the night by focusing on the breaking news of the day – Isiah Thomas back in basketball in New York, this time with the WNBA’s NY Liberty team.
McEnroe said his first reaction was, “Are you kidding me?”

From there the night moved fast.

While some of the time was spent talking about how the athletes managed challenges, filled the gaps in their lives after a lifetime of training and playing and forming new careers in business, the conversation soon turned to analytics and pay fantasy for both the athletes and the business of sport.

McEnroe, who recently finished his run as USTA Director of Professional Player development and remains active in broadcasting, talked openly about the issues of gambling in tennis, a sport which he said is the second-most wagered on sport in the world. He said most of the players do not earn much on the circuit – and is a proponent of changing the way prize money is distributed – so the temptation to shave a match at the lower levels is great. He said players at those lower levels have been suspended for questionable playing.

Jackson, now Associate Commissioner for The BIG EAST Conference, talked about the need for an understanding of analytics to get ahead in business and the value fantasy gaming has brought to the NBA in terms of fan engagement.

“There is no doubt pay fantasy has been very important to the engagement of fans, especially young fans today, and I think everything leagues like the NBA have done to embrace, rather than shun, the gaming/gambling space is the right thing to do. It’s not going away, it’s only going to grow,” Jackson added.
Jackson said he is a fan of fantasy because it will help the sport grow globally.

He also said he is a big proponent in analyzing data. “The day of saying, “I know it when I see it,” is over.”

McEnroe, admittedly not a fantasy player, was a lot more direct about the issues and opportunities technology, and fantasy sports, have in tennis. “Hey tennis was first with electronic line calls which have now become a part of the game, and we need more innovation to keep going,” McEnroe said.

Asked how his brother, famed hothead superstar John McEnroe, would have fared with the replays changing the calls, Patrick quipped that his brother still would have argued with the technology.

“As far as fantasy, I view it as gambling and although I don’t play, we know it (gambling) goes on and the sport has had its issues with scandal because of the wide discrepancy in pay for the athletes. As long as there is still such a wide gap and gambling is out there unregulated, there will probably continue to be some problems,” McEnroe said. “Fantasy is like legalized betting.”

Way, now of the staff at the NFL, deflected most of the talk around the gaming/gambling issue, not surprising given the NFL’s stance as being the most dogged public opponent on the issue of legalized gambling. However,he acknowledged the need for continued engagement through analytics and the growth of fantasy as an engagement tool, although he did add that, “Unlike other sports, success in football is much more tied to chemistry and culture, something which analytics helps but doesn’t take precedence over at this point.”

How all this ties into the careers of today’s athletes is not perfectly clear, but all three acknowledged that the success post-career must involve deep thought and commitment to surrounding yourself with the right people on the business side as you did when you were playing. That will now involve more of an understanding of analytics for business or sport, while keeping an eye on the growing business of gaming as it evolves into a lucrative profession for some athletes post-career; not in being a greeter in a casino as happened in year’s past, but as a trusted advisor for companies looking to engage in sport through analytics and potentially pay fantasy.

Where all the pay fantasy, legal gambling aspect of sport goes in the future remains up for great debate in the United States, but the conversation across sports continues to lead back to one thing; the business of engaging fans is more and more tied to data, analytics and fan engagement through fantasy, whether you are on the tennis court or the gridiron, and the pot continues to grow.

Pacquiao Injury Fallout Growing

@TheDailyPayoff

The fallout is growing across the globe from the recent disclosure that Filipino boxer Manny Pacquiao was injured going into the ” Fight of the Century” against Floyd Mayweather.

The prime minister of Cambodia is refusing to pay up on a $5,000 bet he made on the Mayweather-Pacquiao fight because of he says the fight was not judged fairly, according to a report by CNBC.com.

Last Saturday, millions placed their bets – and lost – on the “Fight of the Century” when Floyd Mayweather Jr. beat Manny Pacquiao, including, Hun Sen, the Prime Minister of Cambodia.
http://www.cnbc.com/id/102649001

Pacquiao allegedly failed to disclose shoulder injury prior to the fight is causing reverberations throughout the boxing and betting worlds.

Pacquioa’s promotor , Rob Arum, revealed right after the fight that the boxer had a torn rotator cuff sustained during training about a month prior to the fight, according to various reports, including Al Jazeera http://www.aljazeera.com/news/2015/05/pacquiao-faces-sanctions-shoulder-injury-150505081507006.html

Apparently, his camp failed to notify the Nevada Athletic Commission until before the fight when Pacquiao requested an anti-inflammatory shot.

The Telegraph is also reporting that Pacquioa could be prosecuted for the infraction, citing the New York Daily News as saying the Nevada Athletic Commission is investigating. http://www.nydailynews.com/sports/more-sports/pacquiao-failure-disclose-injury-perjury-article-1.2210373

Success of Road to the Triple Crown Ad Series Spurs Sequel

derbyBy @TheDailyPayoff

The last in a series of four ad videos promoting the Triple Crown quest was released by America’s Best Racing following a successful campaign that saw more than a quarter million views.
As American Pharoah launched the first leg of the Triple Crown with his victory at the Kentucky Derby last week, ABR said it will unveil a sequel series entitled #RoadtoTC during the two weeks leading up to the second leg of the race trilogy, the Preakness Stakes.
Episode 4 produced by ABR Films entitled “The Road Less Traveled: The Road to the Triple Crown,” can be seen here:

The ABR launched the series as a way to promote interest in the horse racing industry using a series of ads that tugged at the heart strings and presented captivating visuals.
The Triple Crown was last won in 1978 when Affirmed won the Kentucky Derby, the Preakness and the Belmont Stakes. Now American Pharoah is in the position to do it again.
The Preakness on Saturday, May 16.

Episode 1 can be viewed here: https://www.youtube.com/watch?v=BAxtFGM05bw

Episode 2 can be viewed here: https://www.youtube.com/watch?v=_TfYQYTocAo

Episode 3 can be viewed here: https://www.youtube.com/watch?v=Ns_esR_RXZQ

Sports Illustrated Swimsuit Cover Model Shakes Up Yonkers Raceway

By @TheDailyPayoff

With all the hoopla surround the May-Pac fight and the Run for the Roses, one popular figure stood out in events connected to both star-studded spectacles.

And she was hard to miss.

The Sports Illustrated Swimsuit cover model, Hannah Davis, made waves
first at The SI draft party in Las Vegas, posing with pro athletes on Thursday night, then at Yonkers Raceway on Saturday in New York to host the Empire City Casino’s Kentucky Derby festivities.

2015045542436b37318The 24-year-old Davis, who appeared in her third Sports Illustrated swimsuit editions this year, took photos with fans and signed autographs during the afternoon. Just two days prior, she was doing similar duty at the SI Draft Day Viewing Party at the SLS Las Vegas Hotel & Casino, according to SI.com http://www.si.com/swim-daily/2015/05/01/hannah-davis-attends-si-draft-day-party-las-vegas

Davis, the girlfriend of legendary Yankee player Derek Jeter, joined harness driver Tyler Buter, WVOX Radio personality John Marino, and WAG Magazine’s Georgette Gouveia on the blue-ribbon panel selecting the winner of Empire City’s annual “ Fancy Derby Hat Contest”. The contest was held trackside as part of the festivities and a grand prize of $750 was awarded .

Davis is also the new face of DirectTV, ousting former pitchman Rob Lowe recently. http://www.si.com/swim-daily/2015/04/10/hannah-davis-directv-ads-talking-horse

As Davis posed with fans as well as Buter, one of the leading drivers at Yonkers, there was some disgruntlement coming from Buter’s camp.

“I hate being constantly stalked by the paparazzi,” Buter said.

Yeah, right.

Beats and Burger King Steal the Show on An Amazing Sports Weekend

By Joe Favorito @Joefav @TheDailyPayoff

The first few days of May brought its share of interesting sports stories, from boxing to horses and plenty in between.
However from a sports business perspective, two surprising pops certainly deserved recognition for their ingenuity and creativeness.

Starting with the banning of journalists not just from the Pacquiao -Mayweather fight but from the PGA Tour (Stephanie Wei), the weekend included Yankee Alex Rodriguez tying Willie Mays’ homerun and the firestorm of recognition or non-recognition the Yankees will use, a new Kentucky Derby Champion, and amazing endings in the NBA and NHL Playoffs.

But on the business side of things, some thoughts to mull over.

Beats Beats The League Sponsor: A growing phenomenon with the NFL Draft (and it will be interesting to see if it also happens with the NBA Draft) is the issue of the top picks choosing to control their own ceremony and avoid showing up when their name is called on Draft Day. Once an honored rite of passage, top players have chosen to stay away and do their own controlled celebrating remotely, with this year both Jameis Winston and Marcus Mariota deciding to forego the traditional handoff of the jersey and avoid all the trappings of Chicago for locales of their own.

Now while that may seem to be unique for the draftees, it creates an environment for ambush marketing that is almost unparalleled, and Beats By Dre certainly took advantage of not one, but three top draft picks (still unsigned and not beholden to league rules with regard to sponsorship at official events) being able to sport their gear.

Mariota released a Beats by Dre commercial hours before the draft, but topped that by sporting his own headphones live on national TV during his official call from the Tennessee Titans. Meanwhile ,Winston held a pair of red Beats when picked by the Tampa Bay Buccaneers, and fourth pick Amari Cooper did the same during his selection money shot.

While there is little the league can do other than find new and innovative ways to appease league sponsors like Bose with added value down the line, the remote announcement of top stars could lead to a whole new issue with brand piracy and augmentation as more players chose to avoid the official celebration at Draft and carve their own identity from a remote location.

Beats again scored big and beat the system on Draft Night like they had done in previous year’s pre-Bose with Richard Sherman, Colin Kaepernick and with the London Olympics. Other ambush brands take note.

Floyd and The King: All the hype that went into Pacquiao-Mayweather I (any doubt there will be a II or even a III?) became a great deal of white noise as the bout finally came around, as commentators ran out of pre-fight stories and behind the scenes looks hours before the two superstars entered the ring in Las Vegas. So as the cameras turned to the fight entrances, speculation started swirling on who would end up in whose entourage on the way to the ring. From Kimmel to Bieber, the unique and the bizarre found their way into the lens, and then suddenly there he was, the most bizarre of all, The Burger King.

It wasn’t some legendary fighter of the past, it was the costumed, somewhat strange looking image of the massive burger chain character himself, suddenly popping up before millions, just behind Floyd Mayweather as he made his way in. Then in a flash, he was gone.

Now there certainly wasn’t any shortage of brands that looked to make their way into and on the shorts, the trainers clothes, and the ring for the fight, all battling NASCAR-like for the right positioning as the fighters made their way into view for the pay-per-view and the global audience. But The Burger King? On a day when YUM Brands and its chains were front and center with their Kentucky Derby Sponsorship, Burger King (assuming it was a paid sponsorship and not some bizarre coincidence) suddenly stole the social world in the minutes leading up to the fight, something which is next to impossible to do in such a controlled atmosphere for an event that was not even on commercial or traditional broadcast television.

What made it even more unique was there was no real own up on behalf of BK corporate or its agency Scout Sports and Entertainment, part of Horizon Media (which is rumored to have brokered the guerilla-like appearance on behalf of their client) as of Sunday night.

Was it a one off? Is the King going to pop up in other unique locales as part of a new and fun rebrand for the chain? How much was invested and what was the timing? Who was in the suit? All of which will probably be answered in the coming days, but for timing, buzz and uniqueness, the Burger King insertion may have been the best, and most unique, scene stealer from a day of amazing events in sports business.

Now neither of these two brand enhancements happened in a vacuum for sure. They were well thought out, well timed and professionally done. While many brands try to make things “happen,” great execution takes time, money and forethought, and for those reasons beats By Dre and Burger King owned the day at their respective times, and certainly set the stage for who or what can come along next when the eyes of the world turn to athletes and big events in the coming weeks.

Preakness, NHL Finals, The Players Championship, you are up next.

When Fantasy Became An Obsession

By TERRY LYONS @terrylyons Contributing Columnist for @TheDailyPayoff

It started with the very best of intentions.
But as with so many major (or minor) vices in life, it quickly grew into an obsession. The weekly NFL Fantasy League, a competition involving a bunch of writers in the Dallas-Fort Worth area and a few PR gurus in Dallas, LA and New York, morphed into a full-blown NBA Fantasy Sports League.

The year was 1983 and in a Boston Globe column, Celtics forward Larry Bird casually described the way he determined how impactful every player’s statistics were on a nightly basis as he tried to figure out a way to compete against his nemesis Earvin “Magic” Johnson despite the fact they only saw each other twice a season. Bird added the “positive” stats – points, rebounds, assists, blocked shots and steals then subtracted the “negative” stats – missed field goals and free throws, turnovers and personal fouls.

Little did he know at the time, but Bird had created the best possible formula for an NBA fantasy sports game. At a later date, it was determined that some personal fouls might actually be a “positive” occurrence, so that stat was banished from the equation and “The Larry Bird League” was officially created.

To protect his innocence, I will leave-out the name of the commissioner and mastermind of the Larry Bird League, but suffice to say, he was (and still is) one of the best writer-reporters the NBA beat has ever seen. He went to the lengths of actually having Larry Bird draw the order of the league draft nearly every year, usually at an NBA preseason tilt in Hartford, CT or Springfield, MA. In one instance, maybe in 1986 or ’87, while the Larry Bird League commissioner was busy conducting the annual draft while covering games on the east coast, one of the Bird League franchise owners was at The Fabulous Forum in LA, covering Magic Johnson and the LA Lakers.

That rival Bird League team owner met-up with the one and only Magic Johnson for a pregame interview, some 12-24 hours after that year’s fantasy draft had been conducted, and he explained the situation to the Magic Man.

“I got you with the fifth overall pick,” he told Johnson.

“Fifth?” Magic questioned, his competitive instincts surfacing.

The writer had to explain that in the Bird League you had to fill out a line-up based by position, and the top centers were a hot commodity and were often first-round picks. centers like Hakeem Olajuwon and Patrick Ewing were always gobbled-up early.

“Oh, okay,” said Magic, still not quite understanding the concept of fantasy sports.

Then, as only Magic Johnson could put it, complete with that friendly smile, “So? Who we got?”

That was the end of innocence in our world of fantasy sports.

Fast-forward to the 1992 Olympic Games in Barcelona, the year the one and only USA Basketball Dream Team was to prove they were the best team ever assembled in any sport. Ever.

One or two nights before the opening ceremonies were to take place, the esteemed commissioner of the Larry Bird League, on assignment to cover the Olympic Games, had managed a feat almost as difficult to obtain as a gold medal in the Decathlon. The commish obtained admission into one of the most secure locales on the planet, outside of the Situation Room in The White House. He was in the lobby of the Hotel Ambassador, just a few steps off the Ramblas in Barcelona. It was the hotel headquarters for the Dream Team.

It was early in the evening and the order of the draft needed to be determined because the actual draft would be taking place only hours later at 7 Portes seafood restaurant in Barcelona. Not all the regulars of the usual NBA Bird League were on hand, but a few others eagerly snapped up the expansion franchises, because we needed all fantasy team owners to be on hand for a live draft to be conducted over dinner, on – probably – the last night of the Olympics we’d actually have a decent dinner, aside from fast food gorging or a press room “Jamon and cheese.”

The lobby of the Dream Team hotel in Barcelona was pretty small, as the Hotel Ambassador was designed to be a small, commuter hotel, not much different than a Marriott Courtyard or Holiday Inn Express. The rooms were rather small and the lobby bar had only six or eight chairs. On the night of our draft, Bird sat at one of them, on the far right side, chatting with a few of his buddies who accompanied him on the trip. They were going to take in an Olympic baseball game and bird had a USA Basketball hat on, as he always did.

I had my back to Bird and we were excitedly planning for the upcoming draft, gathering all team rosters and making sets so each franchise owner would be able to draft later that night. Of course, we were also strategizing a bit, noting that the USA players, many who would only play 15-20 minutes per night, might go in the second or third round.

Suffice to say we were totally ignoring Bird and his small entourage and we thought he was ignoring us.

The commissioner of our league had scribbled out the numbers – 1-through-8 – on little pieces of paper and he crumpled them up into tiny pieces.

Now, the important part!

Not a single word was said.

I turned around, pivoting, so-to-say, on the great Larry Bird, who proceeded to remove his cap and hold it out as he rolled his eyes and shook his head just slightly.

The Bird Commissioner reached over, past me, and tossed the tiny papers into the baseball hat. Bird handed me the cap and I raised it as high as I could so Larry had to reach up to pick the papers – one at a time – out of the cap, thus determining the order of our draft.

Upon Bird selecting the seventh team, I brought the cap down to eye level and we all observed the one piece of paper left in the cap.

I grabbed the paper, unfurling it as I did, and Bird promptly placed the cap back where it belonged – on his scruffy, blond locks.

We went back to our business and Larry returned to his cold cervaza San Miguel on the bar and continued his conversation with his two friends.

Bird knew the routine.

Now, the reason for that interesting intro is simple. Our basic fantasy NFL league had become the prototype for an NBA fantasy sports game and that morphed into the Olympic Games basketball version where Puerto Rico’s leading scorer Jose Ortiz or Australia’s Andrew Gaze were pure gold, in fantasy terms. Brazil’s Oscar Schmidt, now a Hall of Famer, was another fantasy juggernaut and so was the late Drazen Petrovic or his Croatian teammate Tony Kukoc, although Michael Jordan and Scottie Pippen shut Kukoc down mightily in the two games against the USA. Charles Barkley of the USA was the most valuable American player, as he led the team in scoring and I remember being happy with “a couple top Argentines” drafted in the middle rounds.

Fast-forward two years to the 1994 World Championship of Basketball, held in Toronto, and one of our colleagues, who had attended the 1990 World Championship and ’92 Olympics and had a keen fantasy mind, drafted Richard Matienzo, the top Cuban player in our “WCOB” Bird League. Matienzo was Cuba’s leading scorer and rebounder, but he failed to show up to the team’s August 11, 1994, game against Germany. He had defected.

“He left the hotel Wednesday night with his friends but he hasn’t come back,” said Cuba’s head coach Miguel Calderon Gomez to The New York Times, refusing to speculate as to the whereabouts of his player.

In the cold, cruel world of fantasy, where the previously productive player would now be getting giant goose-eggs on a nightly basis, we applied the “Doug Moe Rule,” which quite simply was “Tough Shit.”

With the foundation laid solidly, our group expanded our fantasy borders to all types of competition. If it worked for the NFL, the NBA and the Olympics, it surely worked for NBA Summer League, correct?

Yes, some of the writers actually held a Midwest Rookie Revue Bird League one summer. And, that was not the most far-fetch fantasy league we conducted. There were impromptu leagues for ice hockey at the Nagano Olympics, there were team-based games for World Cup soccer, there were single night fantasy games for the annual NBA All-Star Game and The Finals. There were great Ryder Cup golf leagues, MLB All-Star leagues and Kentucky Derby Fantasy leagues. You name it, we did it.

The most ridiculous?

One winter night while attending a women’s corporate basketball game in Manhattan where some of the NBA Entertainment staffers were competing, and two of the longtime members of the Larry Bird League were in attendance, so we quickly scratched out the roster numbers of the players on the two teams.

Let’s just say, I remember I won because I had attended a few games before the Rec league game that night, scouting the players, of course. So, I can now confess, and thank star NBAE power forward-center Kathleen Reidy who always put up a double-double.

Gambling in the Sports Digital Space with Chris Russo

By Joe Favorito @JoeFav @TheDailyPayoff

As we enter perhaps the busiest sports gambling weekend in some time, there are few who understand the convergence of digital, fantasy and sport better than Chris Russo.
Russo has been ahead of the curve in his time at the NFL, in his time as the founder of what was Fantasy Sports Ventures and became The Big Lead, and now is back in the business with Fifth Generation Sports, a boutique agency with capabilities in marketing, research, digital and social media with access to investment capital that will again look to be ahead of the curve in the highly fluid and volatile world of sports and digital.

94AE3405CA33487F91B4EF5BFE56E370.ashxThe Daily Payoff caught up with Russo to ask him about his new venture, where the opportunities, and more importantly where the misconceptions are in the digital sports business.

TDP: You have been involved in a number of startups in sports and digital, what will your latest project now be doing?

CR: Fifth Generation Sports will be focusing on the business of sports and technology. We’ll provide a range of consulting and intelligence services. I’ve also completed a relationship with MESA Global, a boutique investment bank, and I’m excited about helping build a sports M&A practice at MESA.

TDP: Fantasy Sports ventures was ahead of the curve when it launched. Are you surprised with the way the business of pay fantasy has now exploded?

CR: I am not really surprised that pay fantasy has become a huge business. The leading companies in the space have done a great job with their products and marketing. Also, the fantasy business was becoming stale and needed some type of major innovation. Daily fantasy is the perfect formula because it brings in new audiences and also makes daily sports like basketball, baseball, and hockey attractive, while football continues to be very popular.

TDP: What is the key to success in any fantasy opportunity going forward?

CR: I believe that many new opportunities to be developed in the coming years will be tied to the daily fantasy ecosystem. I expect that there will be a number of new products and services that provide some type of value to the daily player. Also, products that best leverage mobile consumption will be more likely to succeed.

TDP: How important is mobile activation?

CR: Mobile is critically important to any digital sports property. In many cases, more than half of the digital usage is driven via mobile. Unfortunately, the monetization of mobile sports is lagging, as it is in other sectors, but I do believe that the dollars will ultimately follow the eyeballs.

TDP: Who are some of the people you follow in the business and why?

CR: I don’t necessarily follow specific people but keep an eye on areas of innovation in digital sports. There are many interesting developments in OTT (Over The Top) , for example. We’ve already discussed the amazing growth of daily fantasy. Also, there has been a lot of excitement in the youth and high school sports space.

TDP: The NFLt announced their long-awaited YouTube deal. How important is that partnership for the YouTube brand?

CR: YouTube brings an enormous audience, and I think it makes sense for the NFL and other sports leagues to leverage that platform for fan development purposes. While the audience has been there for many years, my sense is that the monetization opportunity for the leagues in this context, and in social media generally, is increasing, which is why we see renewed focus on these types of deals.

TDP: How important is it for a digital sports brand to be global? Is hyper-local content enough?

CR: I believe that being a global brand is important for many sports properties and businesses, but not necessarily for all. Digital gives virtually every sports property a low cost way of creating a global footprint, but making money overseas may only be viable in the short run for certain properties. Regarding local content, I think the most important trend is the creation of new software and publishing tools that enable the local sports entities to efficiently create their own content. This allows a bottom up approach to local sports vs. the top down approach was which used in the early days of the internet.

TDP: What’s the biggest misconception people have about the fantasy space?

CR: The biggest misconception is that it’s very easy to make a lot of money in fantasy sports. While it’s true that several of the companies are doing very well, the space is extremely competitive and there are many companies that need to work hard simply to keep afloat. While I would encourage new companies to pursue their fantasy sports initiatives, it’s not an easy road.

Chris Russo Bio:
Chris Russo is a recognized industry leader and innovator in digital sports media. Mr. Russo’s diverse experience in digital sports includes his tenure as head of digital media for the NFL, his entrepreneurial success as CEO of Big Lead Sports, and his current roles as President of consultancy Fifth Generation Sports, Senior Advisor at MESA Global and adjunct professor at NYU’s Tisch Institute for Sports Management, Business and Media. Highlights of his career include:
NFL
Mr. Russo served as Senior Vice President, New Media for the National Football League. In that role, he had broad P&L responsibility for the digital media business unit and oversaw all day-to-day operations, including content, advertising sales, marketing, and business development. He completed digital media transactions with total value in excess of $1 billion, including arrangements with Sprint, eBay, Yahoo, CBS Sports, AOL, and Sirius Radio. He launched the NFL’s first-ever fantasy football products and also played a critical role in the creation of the “NFL Internet Network” business model, aggregating NFL.com and 32 team sites into a unified property. Mr. Russo received the Sports Business Journal 40 under 40 Award for 3 consecutive years and is a member of the Sports Business Journal Hall of Fame.
Big Lead Sports (aka Fantasy Sports Ventures)
Mr. Russo served as Chairman and CEO of Big Lead Sports (aka Fantasy Sports Ventures), the largest independent online sports property in the U.S., reaching more than 20 million unique users and consistently ranking in the top 5 among all online sports properties. At Big Lead Sports, Mr. Russo aggregated 500+ sports sites via strategic acquisitions and business arrangements. He completed innovative ad programs with brands such as Coke, Sprint, Coors, and Gillette/P&G. Big Lead Sports was nominated for a “Best in Digital Media” award by the Sports Business Journal. In 2012, Mr. Russo sold the company to USA TODAY.
NYU
Mr. Russo currently serves as Adjunct Instructor for the Tisch Institute for Sports Management, Business and Media. In that role, he teaches NYU’s Digital Media course to graduate students. In 2013, Mr. Russo received the NYU Sports Business Society Media Award for career accomplishments.
Mr. Russo received his BA from Northwestern University and his MBA from Harvard University.

Derby Game Seeks to Give Away $1 million

By Frank Scandale @Fscandale @TheDailyPayoff

If you combine a little bit of skill with a paddock full of luck, you could be walking away with $1 million this weekend when the 141st running of the Kentucky Derby goes off.
At the very least, the creators and backers of this inaugural online event hope the casual horse racing fans become more attached to the sport as they try to grow the audience with a combination of betting and appreciation for the sport.
Walter Hessert, co-founder and chief product officer of DerbyGames, a social online horse racing game, said the odds are better to win if you pay even a little attention to the Kentucky Derby leading up to the race Saturday.
The goal is to pick each of the 20 horses in their exact order of finish to win the $1 million.

“The odds are long.  If you know nothing, a completely random entry is 1 in 20 factorial.  But, knowing just a little about the horses improves your odds a lot,” Hessert said.Those interested in participating in the Derby Million Dollar Challenge should go to www.derbymillion.com and rank the Derby horses in the correct order of finish to win the $1,000,000 grand prize.

Entry is free through Saturday, May 2 at 12 pm ET. Along with their rankings, contestants must provide their name, a valid email address and zip code. Contestants will be encouraged to share their entry with their friends using the hashtag #DerbyMillion and if the winner of the grand prize entered the sweepstakes through a friends referral link, then that friend wins $100,000 – so it “pays to share,’ Hessert said.

Hessert’s company partnered with America’s Best Racing, a multi-media fan development and awareness-building platform initiated by The Jockey Club,
in an effort to combine those with a love of the sport with those who enjoy wagering on the horses.
“It’s a fun way to digitally engage the audience for that Derby day,” he said. “Then we get to follow up with emails and develop more fans, which is the goal.”

BBC To Boost Its Sports Station

The BBC is planning a revision of its digital sports station 5 Live Sports Extra in a move that is likely to prove controversial with its commercial rivals.

5 Live management are understood to be considering a range of options including putting more sport on the station as well as other content from 5 Live and possible tie-ups with other stations, The Guardian reported today.

The station, which currently broadcasts on a part-time basis, is one of the BBC’s least listened to national services.

View Original Source: http://www.theguardian.com/media/2015/apr/24/bbc-plans-5-live-sports-extra-reboot?CMP=ema_546

Talking Sports, Media and Digital with Tom Richardson

Tom Richardson is the founder and president of a consulting outfit focused on the intersection of sports and media. He has worked in pro sports, taught college classes, lectured, consumed copious amounts of relevant and random information, is father to a pair of Millennials and a former English major.
Seemingly everywhere on the sports and media scene, Richardson exudes boundless energy, insatiable curiosity and unmitigated opinion about a wide range of subjects.
We asked Richardson about his involvement in all things sports, digital, and venture capital.

Your Preferred Titles: Founder and President, Convergence Sports & Media; Adjunct Professor


Duties: CEO/CMO/CRO/CTO — chief cook and bottle washer; teaching, mentoring


HomeTown: Massapequa, Long Island, NY

First Paid Job: Cutting lawns around the neighborhood ($3/lawn!) starting around age 12

Favorite Sport: Football

Favorite Team: Giants

Your most important Epiphany: Your reputation is your most important asset

Your Life Credo: Follow the golden rule

Twitter : @ConvergenceTR

 

Tom Richardson

TDP: Tell me about your company Covergence Sports & Media and how it integrates into the landscape of gaming

TR: Convergence, which I founded in 2004, is consulting and advisory business that works with a variety of companies, from well-established properties to start-up ventures, in sports, media and entertainment. The focus is on helping companies develop products and services profitably, to leverage assets in order maximize value and to compete more effectively in a converged media world. Working from time to time with gaming companies (e.g. early sage fantasy sports company, data provider), we’ll focus on business and strategic planning, digital marketing, business development, resourcing, etc.

TDP: How did you get involved with the NY Venture Community sports group, and what is its greatest asset these days?

TR: One of the founders, Jeff Volk, is a longtime sports industry colleague and friend of mine. I started helping out informally early on and gradually got more involved and became the first board member. The greatest asset is the knowledge that is shared and the camaraderie that is fostered at each live event. NYVC Sports has become a catalyst in broadening and energizing an already robust sports/investment/tech network in/around NY City.

TDP: Where do you see the biggest opportunities on the horizon regarding gambling, sports and technology?

TR: The rapid proliferation of tracking technologies is ushering in a bit of revolution in the area of sports data and team/player performance analytics. Examples include MLB’s Statcast, NBA’s SportVU and the things that the NFL are dong with Zebra Technologies. The output of all those initiatives could be the poster child of the “Big Data” movement. There’s an enormous amount of data that is being generated, much of which would be of great interest to gamers and gamblers. So I think the biggest opportunity is in the “productization” of all this data, finding B2B and B2C applications that will find a sustainable market.

TDP: Tell me how you first landed on the Digital side and had you any inkling it would grow so quickly and diversely as it did?

TR: I joined the NFL in the pre-Internet era but I knew about the early online business (companies like Prodigy and Compuserve) from my prior job at Ziff-Davis, the leading publisher of computer magazines. So I lived and managed through the transition while at the NFL, where we did the first online deal (w/ Prodigy) and the first CD-I and CD-ROM deals in pro sports. And that led to NFL.com. At that point I got a good sense of the potential and where things might go and I quickly became hooked on the digital side of the business. So I eventually moved to the NHL, where I was the GM of the league’s digital business.

TDP: How does the digital technology change the gambling , egaming and fantasy landscape? What are its limits?

TR: The immediate, real-time aspect of data capture and sharing is obviously making everything faster, which is a good thing for people who trade on or or make livings around data. Also, the world is now truly flat – it’s a global business where customers can come literally from all corners of the earth. That point, as well as the rapid growth of Over The Top video, is helping propel eSports into a huge, global sports business.

TDP: Tell me about your academia life and how it dovetails with the sports world?

TR: I’ve been teaching sports business (mostly digital media and marketing) for almost five years Columbia, NYU and Iona. It’s a labor of love for me for two reasons: 1) I love to learn, so keeping up with things, as good teachers should, comes naturally to me. I read a lot of articles and white papers, listen to a lot of podcasts and watch a lot of videos about the sports, media, entertainment, technology, start-ups, etc. That learning helps me stay fresh and enables me to put a complicated subject into the proper perspective for students; 2) I like to meet and interact with younger people — the millennial generation. As “digital natives,” they often have interesting insights and perspectives on this rapidly changing world and business environment. So while they learn form me, I also learn from them, which helps me as a consultant — I’m able to keep my finger on the pulse of the market.

TDP: How do you see Over The Top (OTT) content delivery changing the sports media, and by extension, fantasy and gaming landscape?

TR: OTT is a game changer for a few reasons: 1) Just about anyone can do it, so it’s great tool for “attacker brands” — those that are competing against the big incumbents; 2) There’s an immediate global reach, which means the potential audience can be found and engaged faster and cheaper than ever; 3) There’s interactivity as well as social elements that create like-minded communities around passions; eSports (and Twitch) is a great example; 4) There’s a high level of user tracking and measurement that allows for efficient and valuable targeted marketing and advertising.

TDP: Tell us something that very few people know about you.

TR: I spend a lot of time on/with music. I’m an avid self-taught guitar player (been hooked since age 15) and a self-taught hacker piano player. I’m also a big listener (in my office, on the train, walking around Manhattan) and lyric tweeter — on Twitter, @lyricbuff is my scrapbook of great lyrics worth remembering and sharing.

Kentucky Derby Top 10 Best Bets

By Jerry Bossert @jerrybossert for @TheDailyPayoff

The Kentucky Derby, the most exciting two minutes in sports, will be run this Saturday for the 141st time before an estimated crowd of 160,000 people at Churchill Downs and another 16 million watching on television. Nearly $130 million will be bet on the race and here’s a look at my top 10 contenders for the “Run for the Roses.”

Upstart – Born in New York, this colt has quickly risen up the Derby trail as he’s never finished off the board from seven starts, winning three times. His ability to lay close to pace and still have plenty left to kick home makes him dangerous. ODDS: 18-1.

Materiality – Has tons of ability winning all three of his career starts but has to overcome the curse of Apollo (1882), who remains the last horse never to start as a 2-year-old and win the Derby. ODDS: 12-1

Dortmund - One of the Top Favorites at Posttime

Dortmund – One of the Top Favorites at Posttime

Dortmund – He’s probably going to be the second-choice in the wagering, having not lost from six starts and he already owns a win at Churchill Downs. His trainer Bob Baffert has won the race three times and his father, Big Brown, won the Derby in 2008. ODDS: 6-1.

 

Based on his Monday workout, American Pharoah moves into the top favorite spot.

Based on his Monday workout, American Pharoah moves into the top favorite spot.

American Pharoah – Worked super at Churchill on Sunday and will likely go off as the favorite having won his last four starts going away, giving Baffert the top two betting choices in the field. Last year, he was voted the champion 2-year-old colt and this year he’s won both of his starts easily but was facing overmatched opponents. ODDS: 5-1.

Frosted – Closed at 40-1 in the final Derby future bet but will be a much shorter price in the Derby after winning the Wood Memorial, snapping a three-race losing streak. Prior to the Wood, the colt underwent a minor operation to correct a breathing problem and now with a clear throat he may be heard loudly on Saturday. ODDS: 40-1.

Firing Line – If you like Dortmund, you have to like this speedy colt as he finished second beaten only a head the two times they’ve met. Away from Dortmund, Firing Line rolled, scoring by over 14 lengths in the Sunland Derby. ODDS: 13-1.

The colt with the natural diet

The colt with the natural diet

Mubtaahij – If it’s hay, oats and water you want for your Derby winner, this is your colt as he will be the lone starter not to race with Lasix, the anti-bleeding medication that has flooded American racing. This will be his first start in America after racing in the desert in Dubai. ODDS: 8-1.

Carpe Diem – Maybe money can buy your way into the Derby as this horse cost $1.6 million to purchase. He’s earned $1.5 million so far on the racetrack and will try to seize the day in a big way on Saturday. ODDS: 10-1.

International Star – Will become an international star if he prevails in America’s most famous horse race on Saturday. Has won his last three starts but is stepping up in company, which may put out his flame. ODDS: 17-1

Tencendur – Was listed at 11-1 in the final Derby future pool as part of the mutuel field but will be a much bigger price on Saturday being on his own. He still has an outside chance to light up Broadway for owner Philip Birsh, the CEO of Playbill, after finishing a much improved second in the Wood Memorial. ODDS: 11-1.