Accountability Check: The reality of what I Predicted

I posted this entry last June, when the Dow was at about 12,100.  I almost ate my words a month later when the average climbed to 12,725, but at the beginning of August, the US credit rating was cut and sure enough, the Dow crossed under 11,000.  Not that I'm a great predictor of markets, but it's nice to know that every once in a while, market forces do, in fact, get beaten into submission by rationality.

Frank McCourt Needs to Thank ESPN

Yesterday it was announced that Magic Johnson and his business partners won the bid to purchase the Los Angeles Dodgers for $2 Billion from Frank McCourt, taking him out of bankruptcy and out of baseball. But the man is still going to walk away with $1 Billion after the deal closes, and he won't be completely out of LA's-- or the Dodgers'-- hair anytime soon.  McCourt will still own the land surrounding the stadium, which he no doubt intends to develop into a Caruso-esque transit-oriented development project; which he'll have to do if he's going to cannibalize the parking lot. And as we've come to understand, he'll have a tiny $1B fund to get him started.

To the broader point: Frank McCourt owes his existence from here on out, everything that he gains from this transaction, to ESPN. Well, maybe not the company itself so much as one would be inclined to TiVo a game, use a Kleenex to wipe one's nose, or make a xerox copy of a document. Rather, the sports entertainment industry, with the help of advances in communication technology, is the only reason Frank McCourt will once again be a wealthy man.

The Dodgers $2B price tag is the richest in sports franchise history. This sounds like an amazing feat; surely there's a more valuable NFL franchise or maybe a Euro soccer franchise, even. Nope. But that's only because the chemistry that is involved in this transaction hasn't manifested itself before in this Internet Age; a time when consumers worldwide have more disposable income than ever, and are increasingly spending that discretionary money on entertainment. The Los Angeles metro area is also the largest single media market in the country (especially when you consider that the Angels claim LA), making the potential value of a sports franchise even greater.

With the growth of sports entertainment (even CBS is entering the market due to success with the NCAA men's basketball tournament) through the Internet Age, social networking, mobile apps, merchandising, and an ever-expanding options with which media companies can deliver their content to consumers, the potential value of a franchise further increases. It has become so easy for a fan to connect with their favorite team or player, get updated information, and watch them in action across multiple platforms than ever before, and the possibilities are still growing.

So because of timing, because of technology, and because of Entertainment Sports Programming, Frank McCourt gets to walk away from baseball, after taking the Dodgers through bankruptcy and after going through a bitter divorce trial, still a wealthy man.

Getting Ready for the Long Beach Grand Prix

The 2012 Toyota Long Beach Grand Prix kicks off in just two weeks, and downtown is all abuzz in preparations for the three days of events.

This is the premier event for the year in Long Beach, followed by the marathon and Pride Parade.  Check the image below to see the circuit route and happenings of the weekend.  If you're in the area April 13-15 or don't yet know what to do that weekend, hop on the light rail and come on down to the waterfront to check out the Grand Prix!

Stunning Partisan Fact of the Day

When we look at the partisanship of business, we generally see established businesses subscribe to conservative politics, and young companies tend to adapt more progressive policies.  Even more so, we tend to associate Big Oil with the Republican party.

But did you know.....?  LA-based Occidental Petroleum, the third largest US oil company, made political campaign contributions in favor of Democrats at a clip of 1.47 to 1 in 2008.  True Story.

An LA Fact for the Day

Did you know that the Pueblo of Los Angeles (El Pueblo de Nuestra Senora, La Reina de Los Angeles) is the fist officially chartered city in California?  While true, San Jose was founded a year earlier, it was more of an experiment than anything, and in September of 1781, the pueblo was founded and the history of Los Angeles began.

Clap it up for Honda Marketing

Last June, I wrote a post about a Honda commercial that was a bit critical.  They earned it.  But now I've got to give credit where it's due, and the marketing team over at Honda has redeemed itself.  This little gem keeps me chuckling to myself every time!

Beautiful March Weather: LA Photos

Eat your heart out, Middle America!  This is what the beginning of March looks like on the Santa Monica Bay...

 

 

Bright Sunny March Days: The Calm Before the Storm

Welcome to LA, where the first full week of March is about as calm as the month gets for us Angelenos.  Yet there's a lot to get or be excited about.  The first and foremost is which, it's Southern California in March.  We're forecasted for 81 here in Long Beach, today, and it's still supposed to be the standard 72 and sunny in the South Bay tomorrow.  In Chicago it's 39 today, but hey, a nice 57 and windy tomorrow.

Then there's baseball.  Ah, baseball.  In March, it's just anticipation in town, as the Dodgers and adopted Angels gear up in Arizona for Opening Day in April.  Basketball is in the second half of its season, and the Lakers and Clippers prepare for the stretch-run of the NBA regular season.  The hockey playoff picture begins shaping up, spring football at the universities is arond the corner, and of course, March Madness looms large.  There's even this little even next weekend known as the Los Angeles Marathon.

But this week, the first full week in March, with wonderful weather, the home teams are out of town and the marathon is on the backburner.  This week, as the country brims with anticipation of bracketology, is Championship Week.  And in LA, that means the Pacific Life Pac 12 Championship at Staples Center.  Unfortunately for LA, both USC and UCLA have been eliminated in the early rounds, but Staples and LA Live are still teeming with action as the semis continue tonight, and both the men's and women's championships tomorrow.

I'll be on hand tomorrow, and will be sure to get some photos of the festivities to share.  There's always something going on in LA on the weekend, and this weekend, it's the Pac 12 Tournament!

iPad 3: The Beginning of The End for Cable

Today Apple, Inc. announces the iPad 3, set to hit stores next Friday.  The new tablet will have 4G LTE capability, a retina display, and a quad-core processor, making it fast enough for seamless video and music streaming.

With all of the technological capability that is being packed into these highly mobile and evermore capable tablets, the delivery channel that is cable companies is becoming marginalized.  If I can plug my tablet (iPad) into my TV and stream Netflix through it, Hulu through it, ESPN Now, HBO Go, and similar applications, including content provided by networks such as ABC, NBC, and CBS, then what use do I have for a cable company?

News: Streamable, and in clip-form based on individual stories
Movies: Streamable, thank you Netflix
TV Shows: Streamable, thank you Hulu
Sports: Streamable, thank you ESPN

With the proliferation of 4G LTE adoption and the expanding base of Wi-Fi hotspots all over metropolitan areas, consumers are going to have a video content delivery system that works for them wherever they are.  Consumers are not going to feel the obligation, then, to shell out for the cable company every month when it doesn't provide any added value to them; just an opportunity to view commercials.

It will be an interesting evloution to watch unfold, but my feeling is that the best days of the cable industry are behind it.