Category Archive: Business

Sneaker Wars Part 5: Why Stephen Curry Can Potentially Make Basketball an Even Greater International Phenomenon

The Artistry of Stephen Curry_NYTimes
From the article, The Artistry of Stephen Curry, New York Times

Stephen Curry is 6 ft 3 (1.91 m) tall and 190 lbs (86kg) – above average tall, but kinda small for NBA standards. And yet, if he makes the US Men’s basketball team, and the US wins the gold medal in Rio this summer, Curry has the potential to stand on top of the international basketball marketing world.

After Curry’s Golden State Warriors won the NBA championship last May, and after the holiday shopping season, Curry’s jersey is the most popular. The only shoe more popular than Michael Jordan’s for Nike is Curry’s for Under Armour. This fascinating ESPN article explains, in fact, how Nike lost Curry to Under Armour in one of the great sports marketing signings of all time. According to sports marketing impressario, Sonny Vaccaro, the man who signed Jordan for Nike, Curry didn’t fit the mould, and was overlooked by Nike, which already had Curry under contract.

“He went to Davidson,” said Vaccaro. “He was always overlooked. He was skinny, he was frail, he was all the things you weren’t supposed to be. He never got his due. All of a sudden, like a bolt of lightning, Steph Curry is on the scene. And this is the hardest thing for Nike to swallow right now. What you’re witnessing is a phenomenon. This is like Michael signing with Nike in ’84. He’s going to morph into the most recognizable athlete. And why is he going to be that? Because he’s like everybody else.”

tall and short in basketball
The long and the short of it in basketball.

The average height of a human male ranges from 5ft7in/170 cm to 5ft11in/180 cm tall. So relative to the average height of an NBA player, which probably averages a foot taller, Curry is, well, short. And yes, he is an athletic freak whose body control is at a level of balletic precision. But more importantly, he is the greatest three-point shooter of all time. And while an NBA team loves the athletic big guy who can shoot threes (e.g.; Detlef Schremph, Kevin Durant), the three-point line is the realm of the guard, either the point guard or shooting guard, the shortest guys in the game.

Actually, the NBA has always had a love for the tall guy. There’s an obvious structural reason for that. When James Naismith created the game of basketball, he conveniently attached a peach basket to the rails of a running track that ran above the floor of the gym in Springfield, Illinois in 1891. Those rails happened to be 10 feet off the ground.

“That arbitrary decision to put the basket at ten feet caused the game of basketball to take shape around the tallest players,” said Roman Mars, in this fascinating piece called “The Yin and Yang of Basketball“, in one of my favorite podcasts, 99% Invisible.

As the game developed, it became obvious that the taller you are, the easier it is for you to defend the basket, and certainly, to score. And in the 1960s, the slam dunk became popular, particularly among black players. As the 99PI podcast went on to explain, the dunk became a symbol of black power, and was seen as such a threat that the NCAA, America’s governing body for college sports, banned the slam dunk from 1967 to 1976.

While the NCAA decision was likely a racially-driven one, the slam dunk was also primarily the domain of the tall player. And at that time, the NBA was getting a bit boring as people basically threw the ball into the tall center, who would take a very high-percentage shot. The ABA, an emerging competitor basketball league, saw an opportunity to draw fans that the NBA could not: they introduced the three-point line in 1967. As ABA commissioner, George Mikan (a big man in the NBA himself) said, the three pointer “would give the smaller player a chance to score and open up the defense to make the game more enjoyable for the fans.”

Twelve years later, the NBA also adopted the three-point shot, a radius some 25 feet (7.6 meters) from the basket. And while it was seen as a gimmick and seldom attempted in the early years, the three-point shot has become a strategic tool in the coach’s toolkit, and the

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Rikidozan’s Killer: Only the Tokyo Olympics Could Overshadow the Death of Japan’s Greatest Pro Wrestler

 

rikidozan unleashed

Rikidozan was one of the most well-known people in Japan in the 1950s. Starting out as a sumo wrestler, Rikidozan made his mark taking on American wrestlers, and defeating them. This time is only a few years removed from the end of the American occupation, a psychologically disorienting time as Japanese swung from superior overlords in Asia to beaten and despairing at the end of the Pacific War. Taking on the Americans in the ring and knocking them into submission (even if they were to script), built up the morale of the Japanese, and made Rikidozan a national hero of unparalleled stature.

The picture below is a testament to Rikidozan’s pulling power. In the 1950s in Japan, black and white televisions were available, but were still too expensive for the common person. Movie theaters were booming, but they could not show live broadcasts. So when there was a major event broadcast live, the major Japanese networks like NHK and NTV would set up televisions at train stations, temples, shrines and parks and invite people to watch free of charge. And no one pulled in the crowds like Rikidozan.

street corner tv 3
AP Photo/Max Desfor

One December evening in 1963, Rikidozan was at a night club called The New Latin Quarter in downtown Tokyo when he apparently bumped into another person as he was leaving the rest room. Rikidozan apparently demanded that the other person, a gangster named Katsushi Murata, to apologize. Murata did not, Rikidozan wrestled Murata to the ground, and Murata sent a knife blade into the wrestler’s abdomen. Rikidozan died a week later.

Ten months later, on October 23, on the second-to-last day of the Tokyo Olympics, Japan was again reminded of Rikidozan when they read the news that Murata had been sentenced to 8 years in prison.

The Tokyo Olympics lifted the spirits of Japanese throughout the country in those magical two weeks in October, 1964. Rikidozan, the Father of Japanese Pro Wrestling, had already been doing that for years.

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Petrobras Scandal: Bottom of the Brazilian Barrel or Light at the End of the Tunnel

Petrobras 3

Brazil is facing the worst economy in 25 years. The Zika virus is feeding fears, particularly for expectant mothers. And while the Rio Olympics are presenting an opportunity to shine the international spotlight on Brazil, the underclass are generally feeling that the only people who will benefit from the Games will be the fortunate rich and powerful.

And then, there is Petrobras, a government entity embroiled in a bid rigging scandal between officials in the state-owned energy company and construction companies that wish to win Petrobras projects. A secret cartel of construction companies work with Petrobras officials to select the construction company, purposely agree to exorbitant payments, after which the construction companies kick back payments back to the collaborating Petrobras officials, who use that money to fund friendly politicians, which is helpful for a state-owned organization. It is estimated that the scandal has resulted in over USD5 billion changing hands in various illegal transactions. That’s astounding.

Petrobras bidness 2

I have not done this explanation justice, which is why I want to point you to this very clear and effective explanation of the Petrobras Scandal, and the historical and political context, by Zach Beauchamp.

In Brazil right now, if anything can go wrong, it seems it will go wrong – just on the verge of commencing Brazil’s greatest party of them all, the Olympic Summer Games in Rio.

But one thing we can say about the Petrobras Scandal, something that Beauchamp points out at the end of his article. This scandal, which has been tabloid fodder for months in

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Rule Youself: Under Armour’s Affirmation of the 10,000 Hour Rule

“I am, indeed, a king, because I know how to rule myself.” – Pietro Aretino

There’s a powerful message in the Under Armour “Rule Yourself” campaign. Being the best is hard work!

The most recent iteration of the Rule Yourself campaign features the greatest swimmer of all time, Michael Phelps, who hopes to add to his record number of gold medals at the Rio Olympics later this year. But as the commercial is trying to convey, Phelps’ achievements didn’t come only because he has natural talent, but because he applied an unnatural effort, sacrificed, and then achieved.

A few weeks ago, Under Armour released a commercial featuring members of the US women’s gymnastics team, also putting on display the rigorous training regimen of athletes competed to reach the highest levels of excellence.

There was a time people would say there is genius in the world, that the Mozarts and Tiger Woods of the world were born with talent. They were the chosen ones. There may very well be genetic advantages that can be parsed out. But a more likely explanation is that they worked hard at their craft. And in fact, research has shown that the greatest of the great, in any discipline, have often applied at least 10,000 hours of practice.

outliersOne of the populizers of this hypothesis is the acclaimed journalist, Malcolm Gladwell, who has developed a knack for featuring the best of the best in his stories. In the book, Outliers: The Story of Success, he writes extensively about the 10,000 hour rule, and quotes author and neurologist, Daniel Levitin to explain.

“The emerging picture from such studies is that ten thousand hours of practice is required to achieve the level of mastery associated with being a world-class expert – in anything,” writes the neurologist Daniel Levitin. “In study after study, of composers, basketball players, fiction writers, ice skaters, concert pianists, chess players, master criminals, and what have you, this number comes up again and again. Of course this doesn’t address why some people get more out of their practice sessions than others do. But no one has yet found a case in which true world-class expertise was accomplished in less time. It seems that it takes the brain this long to assimilate all that it needs to know to achieve true mastery.”

Ten thousand hours.

It is as large a number as it seems. If 10 years is 3650 days, and thus 87,000 hours, then to get to 10,000 hours over ten years, you would have to spend nearly 3 hours a day training or practicing. Imagine a 20-year-old woman who makes the Olympic Games. From the age of 10, she’s spending finding time on the rink once or twice day, with longer days on the weekends…for ten years. This doesn’t include the travel time for her and her parents, the pain, the emotional highs and lows, the struggle to maintain school attendance and grades, and an even more heightened sense of self and insecurity as she struggles in her quest through puberty and her teens.

They make it look easy. But it isn’t. For first, you must rule yourself.

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Floyd Mayweather: Olympian, Undefeated World Champion, Moneygrabber

Mayweather on his Victory Tour
Floyd Mayweather, Jr on tour with his million dollar watch

On May 2, 2015, Floyd Mayweather Jr and Manny Pacquiao fought in a much-anticipated welterweight boxing championship. Mayweather won “The Fight of the Century” in a unanimous decision, which was also the highest grossing pay-per-view fight in history.

Despite the popular view that the match was mediocre in quality, and a letdown from the hype, Mayweather reinforced his reputation as the best “pound-for-pound” boxer in the sport, perhaps in the history of boxing. After all, Mayweather is now 47-0 in his professional boxing career. The last time he did not win a match was at the 1996 Summer Olympic Games in Atlanta, when he lost on points to Bulgarian, Serafim Todorov, in a controversial decision that was heavily protested by the US team. He won the bronze in the featherweight class, but ever since, Mayweather has been golden.

Floyd Mayweather and tiger
Floyd Mayweather, Jr with his pet tiger

After the Pacquiao victory, someone must have put it in his head that more glory and riches were waiting for him on the road, not as a boxer, but as a person’s whose presence people felt compelled to be in. Thus was born the “2016 European Victory Tour”. At these events scheduled throughout England in February, Mayweather charged £70 (USD100) for a picture with the champ, and £600 (USD830) for dinner and a chance to listen to a Q&A session with Mayweather. At this talk, you would have heard how he arrived in his own £40 million jet (USD55 million), or seen the USD1 million watch he bought in Dubai.

You can splurge like that, I suppose, if you’ve earned over three quarters of a billions dollars in an undefeated professional boxing career.

The question is, did he really need to go on tour and charge people a hundred bucks for a selfie?

Here are a couple of interesting articles on the Mayweather tour:

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“Ooops! We Forgot the Olympic Cauldron!” And Other Tales of Epic Design Flaw

Winning National Stadium Design
Winning design for 2020 Olympics National Stadium

 

Oops!

If you’re going to design an Olympic Stadium, you have to include plans for a very large cauldron that feeds the Olympic flame for two weeks.

Due to increasing costs that strained the patience of even government bureaucrats, the stadium design by world renowned architect, Zaha Hadid, was scrapped quite suddenly, pitting the Japanese government and the Tokyo Olympic Organizing Committee in a pissing match with the architect.

Subsequently, new designs were rushed into competition, and the winning architect stated that the stadium would not be completed in time for the 2019 World Rugby Cup, which has been particularly unpleasant and embarrassing for the organizers.

And now it was revealed that the winning architects forgot to design a place for an Olympic cauldron, something that the IOC specifically stipulates must be visible both inside and outside the stadium. On top of that, the new design will rely heavily on wood in the interior part of the stadium. As you should be reminded, wood is susceptible to burning. And bringing a massive fire close to wood may have negative ramifications.

But the designers will move things around and find some innovative fix that will allow a fantastic stadium to be built. After all, they caught this design flaw early. Let us not forget, there have been many instances where design flaws hidden or ignored eventually led to disaster. Here’s a great link called, The 50 Worst Architecture Fails. And here are a few of the more interesting fails:

The Aon Center
The Aon Center in Chicago, Illinois

The Aon Center: This skyscraper in Chicago, Illinois used carrara marble on the exterior of this building. When a marble slab fell off and crashed into the roof of the neighboring building, they decided that it was safer to spend USD80 million to resurface the building than wait for another marble slab to fall to earth.

Lotus Riverside
The Lotus Riverside in Shanghai, China

The Lotus Riverside: This 13-story residential structure in Shanghai, China fell over due to the effects of an underground parking lot being built underneath. Actually, the reason is kind of complicated. Here’s how the article explained it: “When creating a parking structure beneath the building, workers had placed removed earth into a nearby landfill The weight of the added dirt caused the banks of a bordering river to collapse and the resulting water infiltrated the building’s base, turning the foundation to mud and causing the building to topple onto its side.”

highway 19 overpass
Highway 19 Overpass in Laval, Quebec, Canada

Highway 19 Overpass: A 20-meter section of an overpass in a Montreal suburb simply broke off and dropped to the road below, killing five people in their cars.

Tacoma Narrows Bridge: Opened on July 1, 1940, this suspension bridge in Tacoma, Washington lasted only four months. Yes, when you don’t pay for support materials like trusses and girders, you definitely save money. There are other costs however. Watch this amazing video of the bridge actually breaking apart in the 40 mph wind.

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Usain Bolt Making Insane Bread

Bolt in ANA commercial
Usain Bolt in first ANA commercial

World’s Fastest Man and two-time Olympic champion in the hundred meters, Usain Bolt earned $15,000 in track competitions in 2015, according to Forbes. But in terms of endorsements, the sprinter from Jamaica pulled in a cool $21 million.

Puma alone invests $9 million a year lacing Bolt up. Rio, more gold and deeper reservoirs of endorsements are potentially around the corner for Bolt in August.

Adding to those riches is ANA, otherwise known as All Nippon Airways, which just signed the six-time Olympic gold medalist to an endorsement deal. And the first use of the Bolt brand comes in this television commercial of Bolt dancing to the well-known pop song, “Tokio”, written by a band called “Tokio“.

At the end of the commercial, Bolt says “Bolt-un deru?” (ボルトんでる？) It’s a Japanese play on the phrase “bu-tton deru” (ぶっ飛んでる), which means “crazy”, but in this case probably means “going crazy” in a fun, exciting way. An ordinary way of saying it, more appropriately for ANA perhaps, is “taking off”.

So what do you think of Usain Bolt’s moves?

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The Sneaker Wars Part 4: From Merch to Signature Shoe, NBA Players Are All in the Act

barkley and johnson draped in american flag
Picture of Charles Barkley and Magic Johnson with the American flag draped over their shoulders to cover the Reebok logos on their jacket. Barkley and Johnson had agreements with other footwear brands. John Stockton and Chris Mullin, 1992 Dream Team teammates, look on.

Here’s a fascinating article from Yahoo Sports about the sports footwear industry and the NBA, and a few facts:

Fact #1: Only 10 NBA players currently have their own “signature shoe” with a US-based brand. In case you’re interested, they are: LeBron James, Kobe Bryant, Kevin Durant and Kyrie Irving at Nike; Chris Paul, Russell Westbrook and Carmelo Anthony at Jordan Brand; Derrick Rose and Damian Lillard at adidas (James Harden’s shoe will launch in 2017); and Stephen Curry at Under Armour.

Fact #2: A shoe deal for an NBA lottery pick (a person who is in the top 5 or 10 of the NBA draft of high school, college or available international players) could mean earning from USD200 to 700K per year. The article points out that Andrew Wiggins, who signed a 3-year contract with the Cleveland Cavaliers for over USD17million, also signed a 5-year agreement with adidas for another USD11 million.)

Fact #3: Every player in the NBA has a relationship with a sneaker brand; even the benchwarmers, players looking just to make a training camp roster, can get what is called a “merch” deal. Such an agreement with a footwear marketer gets them a free allotment of footwear for practices and games.

Fact #4: Sneaker brands scout out basketball prospects at the college and high school levels, just like basketball scouts do

Fact #5: Nike has dominant share of the NBA player market, as 68% of the 300+ players wear the Swoosh. Adidas is number 2 at 15.6% with about 70 players wearing the three stripes.

For past stories in “The Sneaker Wars” series, see below:

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McDonald’s Guerilla Marketing at the 1996 Atlanta Olympic Games

 

citi field not so clean venue
The home field of my New York Mets, CitiField, displays over 20 sponsors in this particular view. You wouldn’t see any ads in an Olympics venue.

For the International Olympic Committee, the “Clean Venue” policy has been inviolate. No advertisements or hint of commerce is allowed to be seen on or within the Olympic stadium. Not even the top global sponsors are allowed to show their logos in the stadium despite paying millions to market using the Olympic brand. They do so, somewhat ironically, because the Olympic brand, with the clean venue as a symbol, represents ideals beyond consumerism.

Olympic turnaroundAs Steve Jones of head of Coca Cola’s Marketing in the 1990s put it, “A clean field of play is an Olympic equity. One of your core assets. The field of play is an important branding space that you own. Own every inch of it! Sharing your branding space dilutes the Olympic brand. Don’t compromise your greatest opportunity to build brand power. There is no valid loss of revenue argument when the risk is loss of brand equity.”

Thus, the IOC aggressively protects the Olympic brand, and can at times seem obsessive. Michael Payne, author of the great sports marketing book, Olympic Turnaround, wrote about how McDonalds, a TOP Olympic sponsor, perhaps somewhat intentionally, snuck their logo into the eyesight of thousands, if not millions, during the Opening Ceremonies of the 1996 Atlanta Summer Games. Payne, who was a member of the IOC’s marketing team, got a phone call just as the ceremonies were under way.

“Have you seen the broadcast image of the athletes coming over the ramp?” screamed the brand protection manager. “What are we supposed to do about the McDonald’s sign?”

I ran around the stadium to see the problem myself. There, as the athletes marched over the ramp, in the distance was a large elevated McDonald’s neon sign. It provided a perfect backdrop for each nation as they came into the stadium. The sign might have been in the distance, located by the temporary McDonald’s restaurant at the Olympic Park, but on television it looked like it was attached to the main stadium. The sign had to be switched off – and fast.

The McDonald’s restaurant was near the Olympic sponsor hospitality village. I called the IOC manager at the village, and told her to get over to the McDonald’s restaurant and find someone to turn off the lights. She got to the restaurant, by the time the athlete parade had reached the letter c, and Cambodia was stumbling down the ramp. She found it closed and locked up. Understandably, all members of staff were in the stadium watching the ceremonies.

“Then break in,” I yelled to the IOC manager – by now we were up to Denmark in the athletes’ parade, and there was no way for the television cameras to avoid the neon advertising sign. “They will arrest me”, she pleaded.

“They will arrest all of us if we do not get that sign switched off now.” so an IOC manager proceeded to break into a partner’s restaurant to get their sign switched off.”

There was a break in, the logo went dark, and the IOC apologized to McDonald’s for the break in, although it’s unclear how the lights of the logo were left on.

Now, I’m sure this happened. But I have looked closely at the video of the 1996 opening ceremonies in Atlanta, and I just don’t see the McDonald’s sign. Admittedly, this youtube is not a high resolution video.

Fortunately, i was saved by a reader who provided me with a photo of the shining Mickey D logo. Thank you tylerkochman!

McDonalds at 1996 Atlanta Games
Click on photo to go to source, and see photo 45 in the gallery.
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The Greatest Upset Ever in the History of Boxing – Witnessed in Tokyo 26 Years Ago

Buster Douglas knocks out Tyson

He gave up 5 inches in height, over 11 pounds in weight and 12 inches in reach to the contender, but there was no doubt in anyone’s mind that the 23-year heavyweight champion, Mike Tyson, was going to win, and win easily. Journeyman, Buster Douglas had fought well in previous years to deserve a shot, but little else.

In fact, very few betting houses accepted bets on the fight. One that did had Tyson, the undefeated champion from New York, a 42-1 favorite. But on this day yesterday, February 11, 26 years ago, the son of a boxer from Columbus, Ohio, delighted 40,000 fans at the Tokyo Dome, and shocked the boxing world. As ringside commentator, Jim Lampley said at the end of the fight, “Let’s go ahead and call it the biggest upset in the history of championship fights. Say it now gentlemen, ‘James Buster Douglas – undisputed heavyweight champion of the world’.”

Boxing history was made. But why was it made in Tokyo? According to Japan hand, Robert Whiting, holding the fight in Japan was an attempt to bring excitement to a fight that was expected to be a Tyson massacre, at a time when Japan was the hottest economy in the world.

Buster Douglas knocks out Tyson 2

They held the fight in Tokyo for economic reasons. Most fight fans in the U.S. thought the match with Douglas would be inconsequential — just a warm-up for an anticipated match with Evander Holyfield. Holding it in Japan would generate more interest. Moreover, at that time, Japan was at the peak of its economic power, buying up expensive properties like Rockefeller Plaza and Columbia Studios.

Staging a heavyweight title match would be yet another important status symbol. The Nikkei had just hit its all-time high two months earlier and the yen was the world’s most powerful currency. So it made economic sense for Don King and the rest of the Tyson team to hold the fight there.

Here it is, the end of that incredulous fight. Were you there?

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