File this one under "Get over yourself you washed up former running back."
Jim Brown, a former star running back for the Cleveland Browns, is suingSony (NYSE: SNE) and Electronic Arts (NASDAQ: ERTS) because a football player on the All-Browns team in a video game wears his number and looks like him. He's seeking an injunction and unspecified damages to punish the company for "taking a free ride on the trade value" of his name.
Oh please. Mr. Brown, no one is going to buy or not buy a video games because it contains or doesn't contain your likeness. The "trade value" of your name is precisely zero. Somewhere between starring in The Dirty Dozen, serving as an announcer for Ultimate Fighting, and numerous arrests related to assault and spousal abuse, people just kind of lost interest.
This isn't a material event for Sony or Electronic Arts, but it's an interesting tale of the long half-life of a former star's ego. It's also a great waste of the legal system's resources.
You can say a lot about the Swiss (sorry Mom!), but at least they are always on time. There is a great article over on the BBC that details Switzerland's obsession with time. Everywhere you turn in Switzerland, there's a watch, a clock, or a timer of sorts. I love visiting my Mom who's a recent transplant to Zurich. The trains, the shows, food service -- everything is exactly on time.
It's going to be interesting when hordes of tourists from across Europe and hinder pour into Switzerland June 7 for the start of the European football (that's soccer to you and me) championships. Extra trams and trains are already being rolled out to make sure fans make it everywhere they need to go -- on time.
So, how does one think about "playing" the Euro 2008?
This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.
Imagine that you were only allowed to watch one sport on television for a whole year. Worse yet, imagine that you had to choose between two very popular sports all by yourself. The choice is up to you. Which will it be, NASCAR or the NFL? Will you select the gridiron wars or the need for speed? I shudder just at the thought of having to make such a life-altering choice.
On the one hand, I revel in the bone-crunching, close contact rivalries that play out every week on those hundred yard fields. The talent, the strategy, the sheer brutality of it. On the other hand, horsepower runs in my blood. The tension is palpable when watching those precisely tuned cars fighting for inches of superiority at the hands of fearless drivers. How could I choose between the pavement or the mud? How unfair would that be?
Hoping to capitalize on the shuttering of NFL Europe, the All American Football League is scheduled to kickoff its inaugural season on April 12 ... or, it was.
In a statement on the league's website, the AAFL stated the following:
Since inception, the League's finances have been indirectly tied to the $300 billion federally guaranteed student loan asset backed securities market. [...] Every effort is being made to insure that the '08 season will be played as planned, but this depends upon a locating new majority owner with the needed liquidity [...] Otherwise, the inaugural season will be postponed to '09.
Eek. Is there no end to the reach of subprime's wretched tentacles? Is nothing sacred? Not even football? The league was set to pay its players an average of $100,000 for year-round players, and $50,000 for part-timers. The goal is/was to attract the best non-NFL players in the world, but instability could make that tough. In addition, the league has not yet secured a TV deal -- which could also be made difficult by the uncertainty.
Maybe we can get Ben Bernanke on this one. If we're going to help people stay in homes they shouldn't have bought in the first place, then Uncle Sam should definitely intervene to give football fans something better than Arena Football during the long off-season.
While sagging global music sales may be down, spelling hard times for music labels and the like, the proliferation of cribbed (read, downloaded illegally) music is actually driving concert sales to record levels.
Anyone heard of Live Nation (NYSE: LYV)? It only happens to be a real player in this industry. Live Nation recently announced its global ticketing initiative, which is set to debut next January. Live Nation is partnering with European firm CTS Eventim, which will provide the back-end technology and other related services for LYV's ticketing business.
So, what does this new business mean to a company that is a mover and shaker in the the promotion and production of live music shows, theatrical performances, and specialized motor sports events?
With weather forecasts predicting frigid conditions for this weekend's NFC championship game at Lambeau Field, here are two stocks that are sure to warm up the shirtless Packer fans.
China Water and Drinks (NASDAQ: CWDK) is China's leading supplier of bottled water. Obviously for football fans, this water will be used to make piping hot coffee to drink at the game. The company is growing very quickly, and while other high-flying Chinese stocks have gotten slam-dunked, CWDK is actually trading up 50% YTD.
Maybe the shirtless faithful should take a trip to the nearest mall and go shopping at American Eagle Outfitters (NYSE: AEO). American Eagle has gotten hit along with the rest of the retail sector, but the company sports a P/E of 10.4, a PEG of just 0.74, and a nice little dividend of 2.1%. With the expected economic pick-up in second half '08, retailers should benefit, and American Eagle is well poised to help investors profit as well.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position long or short in any stock mentioned as of 1/18/08.
With New Year's in a few days, everyone is busy making their resolutions. The most popular of all New Year's resolutions is the need to lose weight. So with that in mind, here are two stocks that could benefit from weight-loss resolutions.
Nike (NYSE: NKE) engages in the design, development, and marketing of footwear, apparel, equipment, and accessory products worldwide. You can't start your exercise program without going out and buying a pair of shoes, and a sweat suit. The stock is trading just off their all time high and with a P/E of about 19 the stock look attractive. With '08 being an Olympic year, Nike is sure to benefit from all the exposure. With its recent 19.9% purchase of the UK Umbro, Nike looks to grow its European business, which has been growing strongly anyway. Expect Nike to continue moving higher in '08.
Former Green Bay Packer great Max McGee, age 75, died this past Saturday evening in a tragic fall from his roof as he was cleaning off the autumn leaves. Max McGee is a legend, as he will always be remembered as the football player who scored the very first Super Bowl touchdown on January 15, 1967. It was a 36-yard pass from Hall of Fame quarterback Bart Starr. Max made a tremendous one-handed catch on the play. NFL Films has shown the play thousands of times.
The stories about Max are also of legendary status. Known as a "social" gentleman, Max was out all night before the Super Bowl, thinking he would not play even one down, as he was winding down his illustrious career. Early into the first quarter, the starting wide receiver separated his shoulder. Coach Vince Lombardi screamed, "McGee, get your %^& in there!!!" Having forgotten his own helmet in the locker room, Max borrowed a teammate's and went on to catch seven passes for 138 yards and two touchdowns: the game of his life. He should have been named the MVP of the game, but back then, those awards went to quarterbacks. Max McGee forever cemented in the hearts of pro football fans, one of the gutsiest and greatest performances in NFL history. Max McGee went on to a very successful business career as a principal partner launching the Mexican restaurant chain Chi Chi's. Max was also the radio voice of the Green Bay Packers from 1979-1998.
That part of Max is all well-documented and known. What I want to share, as his next-door neighbor, is the stuff of real legend -- the private Max McGee, the extremely generous Max McGee.
Nike (NYSE: NKE) is buying British shoe company Umbro for just under $600 million. It does not seem to be a very big deal for the world's largest athletic apparel company, but Nike may be running out of new markets to attack.
Umbro soccer-related apparel, footwear and equipment is sold in more than 90 countries, according toCNNMoney. The news site indicates that the deal was backed by the Football Association, the governing body for English soccer.
A look at the Nike product line may provide a glimpse into the value of the deal.
Nike has a big footprint in running and basketball shoes. It also has a number of products for track, tennis, and golf along with its own line of soccer footwear. The company has diversified into clothing and equipment including watches, glasses, and golf balls.
To put it simply, Nike, with $4.7 billion in revenue last quarter, may be running out of markets for easy growth. Buying a company with an established niche in a market may be a faster way to get in than trying to go it alone.
Douglas A. McIntyre is an editor at 247wallst.com.
As American major league sports approach the saturation point in the U.S. market, they are increasingly looking overseas for growth opportunities. Since basketball has been embraced in countries as diverse as Slovakia, China and Brazil, the NBA is clearly leading the pack in this effort. Next week, however, as reported by The Wall Street Journal (subscription), the National Football League will attempt once again to find cleated footing in the European market for American-style football.
The patsies for this effort will be the Miami Dolphins and New York Giants, who will face off in London on Sunday the 28th. Neither team, I'm sure, is eager to interrupt its mid-season routine in this way (although the Dolphins, winless to date, might appreciate having an ocean between themselves and their irate fans). This represents a new initiative for the league, which has tried to promote the NFL in Europe with exhibition games, which didn't work, and by establishing a minor-league NFL with franchises in major European cities. The league announced this week that it was folding this NFL Europa after 15 years.
League commissioner Roger Goodell made the absurd statement recently that they are "looking at" holding a Super Bowl in London, which makes me wonder if he's had his bell rung a few too many times. Basketball thrives internationally, I believe, because it does not require much equipment and does not directly compete with already entrenched, similar sports. It is also a sport that, even played badly (that's me), can be enjoyable. Football, on the other hand, required a tremendous amount of equipment, special facilities, and isn't much fun for the schmucks (I speak from experience) who block and tackle.
Europe already has football-- a type that allows everyone to play, that requires everyone to run and get fit rather than pork up, and has a history much older than Red Grange. I doubt the NFL will have any more luck converting them to our game than Major League Soccer has had establishing its sport in the U.S.
Having established yourself as a fantasy football guru, are you interested in trying out your talents with your very own NFL franchise?
Well according to a Forbes Special Report, the average NFL team would set you back $957 million. By contrast, only one Major League Baseball team is valued above that -- The New York Yankees at 1.026 billion. No other team is worth more than $617 million. The Dallas Cowboys are the most valuable team in sports, worth an estimated $1.5 billion.
The value of the NFL's television deals remains huge, with 75% of Americans saying they watched a game on TV last season. NFL teams are also the most profitable sports franchises, perhaps driven by the league's cost controls that some would deride as anti-competitive.
Seeing the value these teams have, entrepreneurs including Dallas Mavericks owner Mark Cuban are exploring the possibility of setting up a new football league to rival the NFL.
On his blog, he has written that the NFL "not designed for a competitive environment. Competition for top players, even if the UFL gets just a few, increases prices at the top end for all teams. Every star will get paid more, but still have to fit under the cap. That forces teams to use more low cost players, at the expense of signing the middle of the roster. That gives us access to quite a few very, very good NFL players ..."
As long as there's no competition, the NFL's value is huge. But will its structure and salary cap system make it vulnerable to a well-funded upstart?
Full Disclosure: I was a huge Joe Montana fan back in his glory days with the 49ers, and I still have a huge poster of him on the wall in a closet.
Joe Montana's place as one of the greatest quarterbacks of all-time is secure but, sadly, the same cannot be said about his skills as a hedge fund honcho. According to a piece in The New York Post, "HRJ Capital, a California investment firm that counts the Hall of Fame quarterback on its roster, saw almost all of the gains ratcheted up so far this year at one of its hedge funds get wiped out as the housing crisis tackled the markets."
The fund of funds (a hedge fund that invests in other hedge funds) lost 12.3% in the first two weeks of August because of investments in hedge funds that had subprime exposure. Montana also has a couple former teammates with him at the firm, Ronnie Lott and Harris Barton.
Should investors in his fund be worried? Of course not! This is Super Joe! The Comeback Kid!
I wonder if he owns HanesBrands (NYSE: HBI), which plastered Montana's face all over television commercials in the early 1990s, and paid him a nice endorsement fee.
It's been nearly 25 years since Donald Trump since Donald Trump bought the New Jersey Generals off the ill-fated USFL. Now another obnoxious mogul, Mark Cuban, is trying to start a new football league.
According to CNNMoney's Chris Isidore, "there are as many as three different groups looking at trying to start yet another league in the coming years. Two of the efforts would try to start leagues in the spring, when the NFL is in hibernation and some of the former leagues, like the USFL, briefly succeeded."
Bill Hambrecht and Cuban are looking at starting the UFL, and Cuban has argued on his blog that the league's collective bargaining agreement structure is :not designed for a competitive environment. Competition for top players, even if the UFL gets just a few, increases prices at the top end for all teams. Every star will get paid more, but still have to fit under the cap. That forces teams to use more low cost players, at the expense of signing the middle of the roster. That gives us access to quite a few very, very good NFL players ..."
Hambrecht has suggested that each team would be able to sell 1/3rd of its shares to the public through IPOs. So not only would the USFL provide opportunities for billionaires to own teams, but also average Joe's: Cool!
Back in December, I wrote about the difficulty that the NFL Network was having in getting off the ground. Last season, the network made 8 games available exclusively on the network hoping that it would spur fans to call their cable operators and demand the network. But it didn't happen.
According (subscription required) to The Wall Street Journal, Time Warner Cable (NYSE: TWC) and Cablevision are refusing to carry the network. Comcast (NYSE: CMCSA) has pulled the NFL Network from millions of homes and the NFL sued, lost, and is appealing. The league has even set up a nice astroturfish website to make its case to the public.
The NFL has had a difficulty relationship with networks, who feel that they are being gouged. Many industry observers view the NFL Network as an effort to say to ABC, ESPN, FOX, etc. "We don't need you. We can do this ourselves if we want." This may be more about leverage in contract negotiations than actually establishing the NFL Network as a viable station.
Of course, that will plan will backfire wonderfully if they can't get cable operators to carry it.
Thousands of football fans and video game junkies will flock to stores tomorrow to buy the latest-and-greatest version of Madden, the indisputable leading brand in football video games. In the first week of sales, the game should sell at least 2 million copies.
From all of this Madden madness which should rise in coming weeks, there are two potential ways to make money: Electronic Arts (NASDAQ: ERTS) and Circuit City Stores (NASDAQ: CC).
Electronic Arts is the creator and owner of the Madden brand. Understandably, the success of the newest Madden in coming weeks should be directly correlated to the news flow for the stock. The company's third and fourth quarters should be incredible, not only attributable to Madden but also from the company's other popular games. The issue then becomes: is all of this priced into the stock? The answer to that question could go either way. While the stock is up about 10% so far in August, bulls in the stock argue that analyst estimates for the upcoming quarters remain low.