Author: Mark Nagel
FM Issue: Leadership and Operations 2014
On Jan. 28, 2003, the Women’s National Basketball Association (WNBA) announced that the Orlando Miracle had been purchased by the Mohegan Tribe and would be moving to Connecticut and renamed the Sun. As part of the relocation, the Sun would be playing their home games in the Mohegan Sun Arena, which happened to be attached to the Mohegan Sun Casino in Uncasville, Connecticut.
At the time, a variety of observers expressed concern that so closely linking a U.S. professional sport franchise—even if it was not in one of the “Big 4” leagues—with a gambling entity would create potential public relations problems. Some were shocked that then National Basketball Association (NBA) Commissioner David Stern would permit such a relocation given the NBA’s strong previous antigambling stance. However, the move was seen by many as the best and perhaps last chance to save a struggling WNBA franchise. It also appears to have been a test case for the NBA and other prominent professional sport leagues to begin to build a bridge to a new era of partial “open” partnership with gambling interests.
Since the Sun’s move, some of the most prominent U.S.-based professional sport leagues have greatly reduced their restrictions on gambling-oriented sponsorships, while at the same time have publically protested an effort by the State of New Jersey to expand legalized sports betting within its borders. The bounty of available money from gambling sponsorships combined with the various leagues’ apparently contradictory stance toward gambling requires facility managers to be aware of current rules but also prepared to adjust quickly as rules are updated.
The National Football League (NFL) had long maintained a strong anti-gambling stance, with perhaps its most famous employee punishments occurring in 1963 when several prominent players were fined and Green Bay Packers halfback Paul Hornung and Detroit Lions defensive tackle Alex Karras were suspended for engaging in gambling activities. Then NFL Commissioner Pete Rozelle emphasized the importance of keeping gambling away from professional football, and for many years, the NFL did not permit any direct association with gambling organizations (though did maintain strict rules regarding mandatory injury reports, which were seen as important to keep the general public, and gamblers, aware of potential changes in available players each week of the season).
However, a few years ago the NFL began to permit teams to sell upper-deck signage sponsorship deals with casinos. Then, this past March, the NFL further expanded the allowable relationship by permitting facilities to sell lower-bowl signage and naming rights to various areas within the facility, such as club and restaurant levels. Other print, radio and digital advertising opportunities are also now permitted, though the team’s logo cannot appear in conjunction with the partnering casino’s, and only casinos that do not have sports books are permitted to become sponsors.
In Major League Baseball (MLB), direct associations with gambling had been an explicit no-no given the sport’s major problems with gambling influences in the late 19th century and the early 20th century, which culminated in the 1919 Chicago “Black Sox” scandal. However, in the early 2000s, MLB loosened some of its anti-gambling rules and permitted teams to accept advertisements from casinos, as long as the casino does not allow sports gambling. As the decade proceeded, MLB further expanded permitted gambling partnerships. In 2009, Harrah’s become a Signature Partner of the New York Mets and Wisconsin-based Indian tribe Potawatomi Bingo Casino became a presenting sponsor of the Milwaukee Brewers. The Brewers’ deal was believed to be its second-most lucrative stadium sponsorship deal after its naming rights partnership with Miller Brewery.
The NBA hosted its All-Star Game in Las Vegas in 2007 and has remained progressive in its desire to generate revenue. During the economic downturn in the late 2000s, the NBA altered its rules to permit liquor sponsorships. Earlier this year, the NBA and National Hockey League (NHL) approved a multimillion-dollar deal between sponsor Bwin.Party Digital Entertainment and the Philadelphia 76ers (NBA) and the New Jersey Devils (NHL) (both owned by groups headed by Josh Harris). The deal includes placement of nj.partypoker.com on the homepages of the two teams. In addition, inside the Wells Fargo Center in Philadelphia, signage on the “apron” between the court and the front row seats promotes the online poker company. In the Prudential Center in New Jersey, fans attending Devils’ games can learn to play online poker at booths prominently displayed on the arena concourses. Scott O’Neil, CEO of the 76ers noted, “We are at the lookout for innovative opportunities with companies willing to take both chances and risks.”
The Mets, Brewers, 76ers, and Devils are certainly not alone as there now are at least 28 U.S. franchises with gambling sponsorships and at least an additional 20 others that have signed lottery deals, another growing gambling category that was once avoided by the various professional leagues. Gambling-related sponsorships have the potential to expand greatly if Governor Chris Christie and the State of New Jersey win a legal fight against a 1992 federal law—the Professional and Amateur Sports Protection Act—that limits betting on collegiate and professional games to four states: Nevada, Delaware, Oregon, and Montana. Though a victory by New Jersey would not necessarily “force” the professional leagues and the National Collegiate Athletic Association (another sports entity that has stridently fought against New Jersey’s efforts) to expand their relationships with various gambling interests, it is likely that if New Jersey wins, other states will pass similar measures. Gambling in general—and sports gambling in particular—may become more accepted as a legitimate activity, whether in a casino or at a sports facility.
Interestingly, the Mohegan Sun Arena may once again be an indicator for the future. After the Sun had played there for a couple of years, a variety of people noted that it would be a great facility to host prominent Connecticut Interscholastic Athletic Conference (CIAC) events, such as the boy’s and girl’s state basketball championships. Though in 2007 the CIAC held firm in its decision to avoid using an arena associated with gambling, by 2009 it had changed its decision, and a variety of CIAC events have been held in the venue over the past few years.
It may be that professional sport leagues that had long avoided any association with gambling may be taking some of their first steps to a more prominent and lucrative partnership. In 2009, Milwaukee Brewers Vice President Rick Schlesinger noted, “We have to be respectful of our brand…and understand we’re family-focused entertainment. But we also have to expand our reach and tap into unconventional sources of income.”
With more than 500 U.S. casinos and over 100 million Americans visiting them each year, the time may soon arrive where sports and gambling in the U.S. more closely resembles that of many European countries where gambling outlets, including sports books, are prominently displayed in sport facilities. FM
