Harness racing is just around the corner

By Dr. Nicholas J. Hadgis
Dean and professor
Widener University School of Hospitality Management

The late Fitz Eugene Dixon, Jr., former Chairman of the Board of Trustees of Widener University, thoroughbred horse breeder/owner and former Pennsylvania Racing Commission Chairman once stated that “gaming rode into Pennsylvania on the back of a racehorse.” At the request of Governor Ed Rendell, Fitz helped to spearhead the effort to pass legislation that would permit slot machines at race tracks in Pennsylvania rallying the support of horse breeders/owners along the way.

The legislation required that part of the revenue from slot machines would go to horse racing and that the owners of race tracks would get licenses to operate slots casinos, thus the term “racino” was coined. Funding for racing from slots has enabled purses in Pennsylvania to be higher than other states and, consequently, the value of horses at auctions as well as the number of horses in foal in the state, has increased.

In efforts to improve the track experience for racing patrons, casino operators, such as Harrah’s, have built new tracks or remodeled existing ones adding new grandstands and quality food and beverage facilities that complement the racing and gaming experience. The racing fans and casino customers, however, tend to represent two different markets and, currently the casino executives consider themselves fortunate to get a 4% to 5% crossover of people betting on races as well as enjoying the casino. Efforts are being made to increase this number through advertising of incentives and special race days. The casino operators think that the advent of table games will bring a new segment of gamblers to their facilities that are more likely to bet on horses than are the current slots players.

The horse racing industry has been in economic decline nation-wide for years. While Pennsylvania racing has benefitted from the funds flowing to it from the gaming industry, executives in the racino business concede that, given its current economics, the horse racing industry is in a death spiral and the slots funding in Pennsylvania is simply buying it some time. The “sport of kings” needs major revisions in how money flows into it and in making a day at the track more user friendly for a new generation of fans.

Harness racing beings April 23 at Harrah’s Chester Casino & Racetrack.

NCAA Equality

By Gregory Cermignano
Associate Professor of Accounting and Business Law
Widener University School of Business Administration

The Men's NCAA tournament is coming down to the final weekend, and TV coverage abounds. We can even find coverage of the Men's NIT. The Women's NCAA tournament has finally come off of the pay-per-view channels (the only place to find all of the opening round games) and moved to the regular ESPN channels, while the Women's NIT is nowhere to be found. We have worked hard in America to attempt to create some equality for women. We have various pieces of legislation (like Title IX), which have helped. But are we doing enough? Should the airwaves be forced to treat the presentation of all of these events with equality? Should we have a choice of what to watch? This blogger thinks so.

NCAA Madness - A payoff for more than the fans

Here is a nice look at how the business of sports affects top B-Ball coaches. Who said "it's just a game"?

http://www.businessweek.com/magazine/content/10_14/b4172058546496.htm

The Union Brand

By Brian Larson
Associate Professor of Marketing
Widener University School of Business Administration

Okay, so the first game of the MLS newbies, the Philadelphia Union, didn't go so well on the pitch. A 2-0 loss with penalties galore is probably not how the franchise envisioned their official entry into professional sports history. Is this going to be the end? While there has been some grumbling ... and even worse yet, some apathy from the region's sport consumers and media, I don't think anyone is really giving up on the idea of having a really good MLS franchise here.

First of all, the fact that the Union has "fans" is spectacular. How many times does someone spend time and money supporting Cheese Whiz? Building a fan base that is vocal and willing to follow a brand is difficult: having a fan base that will do that BEFORE the brand ever played a game... priceless. These Sons of Ben, aren't going anywhere away from the team anytime soon. Fan avidity is a powerful thing. Once fans have it to the point that they identify with a team, player, colors, logo and so on; it doesn't go away on a whim. Naturally, any good team marketer will cultivate that passion and appreciate it. Don't take fans for granted of course, but realize that the fans the Union already has are going to give the Union the benefit of the doubt. Building a sports brand takes a long time, but the Union is on their way. Building a winning dynasty on the pitch might prove equally challenging.

Violence in Sports

By Gregory Cermignano
Associate Professor of Accounting and Business Law
Widener University School of Business Administration

Violence in sports. Often these terms seem synonymous. A basketball player for the Baylor University Women's basketball team recently was caught on tape throwing a punch at an opponent after the opponent seemed to pull her down. We all remember the incident with Mike Tyson and Evander Holyfield's ear. In an NCAA Men's tournament game on Friday, a post player accidentally caused an opponent to need 6 stitches. This seemed to be an accident. However, are violent acts – both intentional and seemingly unintentional – symptoms of something more? Are they symptoms of the culture? Does this violent conduct help the sport financially? Does it sell more tickets? Does it convince people to tune in on their televisions more frequently? It seems that in many instances people attend sporting events because of the violence. A problem seems to be, however, that these athletes and this conduct affect our kids. Whether athletes like it or not, many of our kids seem to choose them as their role models. Should the courts then step in any more than they do and police this conduct? What would the sports world say about this? Would it affect ticket and merchandise sales if athletes always acted as model citizens? These are questions for thought that we can discuss over the next few days, especially as the NCAA tournament continues.

More March Madness

By Joseph P. Fuhr
Professor of Economics
Widener University School of Business Administration

March Madness is back, and if some people have their way, in the not too distant future there will be even more March Madness. There are some who are proposing that the tournament should be expanded to 96 teams. I suspect that we shall see this occur in the next few years. Why? The two most powerful forces in college basketball, the media and the coaches, want it. The media want it because they can generate more revenue as the number of games is expanded. The coaches want it because what institution will fire a coach who has made the NCAA tournament? From an economic point of view it makes sense because it will generate more revenue for not only the media, but also for the institutions and coaches.

What about the quality of the games? Will it deteriorate as more teams of lower quality enter the tournament? Does it make sense to have a championship tournament that allows the “best” 96 teams to compete? Will the fans gain from this experience? Remember this is the same NCAA that does not have a champion decided on the football field because of the money generated by bowl games. So get ready for more March Madness and be ready to answer the real pressing question: How do we fit a 96 team pool onto one piece of paper?

Temple vs. Villanova in the NCAA Tournament?

By Brian Larson
Associate Professor of Marketing
Widener University School of Business Administration

In theory, Temple and Villanova can’t meet in the NCAA Tournament until the Final Four. In fact, this battle between the two Philadelphia Big Five powerhouses is taking place in bar rooms and board rooms throughout the City of Brotherly Love. For alumni of these two institutions, it’s about bragging rights. But which of these two institutions has the most to gain financially from the tournament?

The economy has wreaked havoc on the endowments of private universities, and on state funding of public institutions. Both institutions would love to see a bump in fundraising as a result of the tournament. However, both Temple and Villanova may be victims of their own success.

Though both teams have had their ups and downs over the years, neither is a stranger to the NCAA Tournament. Temple is making its 28th appearance (third straight) in the big dance, including two Final Four appearances. Villanova punched its ticket for the 31st time (six straight), including four Final Four appearances and a National Championship in 1985. In addition, both teams receive regular exposure on national television.

You will not hear the word “Cinderella” associated with Temple or Villanova as it has been with such teams as Gonzaga or Butler in the past or Wofford this year. In 1996-97, before Gonzaga’s successful NCAA Tournament run began, the institution raised $8.4 million from alumni and foundations. In the year following Gonzaga’s Elite Eight finish in 1998-99, the college raked in $16.5 million.

The bottom line is that making the NCAA Tournament is not the expectation at Temple or Villanova--winning in the tournament is. To see a measurable bump in fundraising that can be directly attributed to the basketball team at either institution, it’s Final Four or bust. With teams like Kentucky, Duke, Baylor, West Virginia, Purdue and Wisconsin standing in their way, that’s a tall order.