USC’s 2007 Cuban Commencement: Entrepreneurial maverick Mark Cuban Provides a Vision for Success in Today’s Business Environment

With dates for 2007 school commencements fast approaching across the nation, the University of Southern California joins other major educational institutions in seeking out prominent and noteworthy commencement speakers to inspire their graduates. In this post I am honored to empower myself and nominate Mark Cuban to the USC Honorary Degree’s Committee (HDC) for a Doctorate in Humane Letters and 2007 class commencement speaker. Anyone familiar with professional basketball will immediately recognize Cuban as the flamboyant and highly successful owner of the NBA Dallas Mavericks. But most sports fans may be surprised to learn that Cuban also created two of the hottest and most lucrative internet communication startups of the 21st century, Broadcast.com and HDNet (logo pictured). Cuban’s rapid successes in the sports and business worlds have made him a billionaire in his mid 40’s and recognized by his peers as an innovator in adapting Internet technology to sports entertainment businesses. In the words of James Freedman, President Emeritus of Dartmouth College and author of Idealism and Liberal Education, an excellent commencement speaker should be a “talismans for inspiration and rejuvenation at those hollow moments when we feel depressed and defeated.” Graduation can be a time of uncertainty and emotional stress as students leave the safe confines of a well-structured university environment for the rapid and unpredictable dynamics of the world marketplace. The graduates are looking for heroes to give them confidence that USC has prepared them for their careers and Cuban’s charisma and success record are the best tonic to overcome any fears.

Mark Cuban’s qualifications for USC’s commencement speaker goes far beyond the standards set forth by the HDC. His “extraordinary achievements in scholarship, the professions, or other creative activities” are mercurial in time, diverse in scope, and innovative in concept. Barely out of college, he built up a startup software business called Micro Solutions that he quickly leveraged to create the ubiquitous Broadcast.com, an Internet company that streams live basketball games to paying viewers. Whether through uncanny insight or remarkable business savvy, he sold Broadcast.com to Yahoo and diversified his stock holdings just before the dot.com bubble burst in the late 1990s. While continuing his technology pursuits with the highly profitable HDNet, a high definition cable network company, Cuban jumped at the chance to purchase the Dallas Mavericks and turnaround the ailing franchise. Within a year he had rebuilt the team into a top contender that has challenged for the NBA title over the last five years. He appears to have the Midas touch in every field he enters. Besides Cuban’s outstanding contributions in the Internet entertainment arena he has also made “outstanding contributions to the welfare and development of USC and/or society.” Despite the abrasive demeanor he shows at Maverick basketball games as an owner who encourages criticizing officials and extolling outlandish displays of team solidarity, Cuban is deeply committed to helping society improve the plight of the less fortunate. He has matched every NBA fine imposed on him with millions of his own dollars for worthy charities within the Dallas area. His immediate success with the Mavericks have made him an instant hero among the local community and his enthusiasm is contagious, providing fans a sense of pride and encouragement extending into their own personal lives. Of all the honorary degrees USC could confer on Cuban, including a science degree for contributions exploiting the vast potential of the Internet, Humane Letters is most appropriate for his unbending commitment to using his wealth for the benefit of society.

Like many highly successful men, Cuban is feared by his business competitors and often controversial in his actions. He even once started a public “booing” campaign against former Maverick players who returned to Dallas on opposing teams. But despite these occasional outbursts, Cuban embodies those personal traits central to USC’s Mission statement, “strongly committed to academic freedom and proud of our entrepreneurial heritage.” Inscribed at the base of Tommy Trojan is the Latin motto, “Palmam qui meruit ferat” (Let him who deserves it bear away the palm). Mark Cuban has proven himself a victor among men and it is only fitting that USC award him their highest honors, the palm of Doctor of Humane Letters and 2007 Commencement Speaker.

Image Makeovers: Marketing Sports Heroes

Professional athletes are paid enormous amounts of money to provide entertainment and excitement to the fans. The accompanying stress and stardom provides an environment ripe for inappropriate behavior. It seems like every week some athlete commits a crime or makes some careless remark about minority groups. This week I comment on two other blogs how athlete’s behavior off the field affects their public image and marketing potential. The first blog post focuses on Muhammad Ali’s commitment to personal values at the expense of his career. Although always outspoken and controversial, he has become a sport’s icon for his unbending support of human rights. The second blog post follows the rise, fall, and reinvention of Kobe Bryant’s image among his fans. Unlike most members of professional sports, Kobe received a second chance to rebuild his shattered image and now guards it meticulously. My comments on these posts can be read below.

In response to the blog “To the greatest of all time,” I agree that Muhammad Ali is a true sport’s hero recognized by many fans and athletes today. Back in the 1960’s it was rare for a celebrity sport’s star to voice his opinion on any political subject. Not only was Ali labeled a loudmouth and irreverent poet by newspapers and sports-casters, he directly challenged the military industrial complex. During this dark era of American history, he stood firm and became a popular anti-hero with those opposed to the Vietnam War. Today, popular athletes rarely take positions on anything except non-controversial subjects like clothing and food choices. The blogger states that athletes are “image conscious and seemingly bend over backwards to avoid taking stands that may jeopardize endorsement deals.” Athletes now consult their lawyers and public relations staff before commenting on sensitive subjects. Just last week, Tim Hardaway, in photo to the right, permanently tarnished his popularity by speaking out against gays and lesbians. He immediately tried to retract his statement by saying, “I shouldn't have said I hate gay people or anything like that. That was my mistake.” More importantly, publicly stating he hates gay people will only endanger his own popularity and paycheck. NBA Commissioner Stern’s quick and decisive action to distance Hardaway’s views from the league can only lower his respect from his peers, fans, and employers. Muhammad Ali was forever outspoken and outrageous but never publicly criticized any individual groups. In contrast, Hardaway casually revealed his feelings on gay people during a radio interview and will never be able to achieve Ali’s status as a true hero.

I find this blog an excellent example of how to reinvent a superstar. Kobe Bryant was the prima donna of the championship Lakers during the 2000-04 seasons. Immediately after his acquittal for rape charges, Nike released a commercial with Kobe saying, “Love me or hate me…I hate that I am loved for the exact same reason.” Kobe was frustrated with his love-hate relationship among NBA fans. Los Angeles fans loved him while almost everyone else despised him. Eventually, many LA fans began to blame him for everything wrong with the Lakers, including the firing of Phil Jackson and the trading of Shaquille O'Neal to the Miami Heat. This time period was the nadir of Kobe’s career. They even made a bobble head doll to celebrate his fall from grace (see picture to the left). Fortunately, owner Jerry Buss kept faith in Kobe and used his public relations team to reinvent Kobe’s image. The blogger refers to Kobe as the “Black Mamba” named after a reformed female criminal in DC comics. The choice of a woman character reflects Kobe’s new respect for female values as evidence by his public apology to his wife after committing adultery. This description fits Kobe as perfect as his customized shoes. The “KB824” transformation from reclusive chauvinist to unselfish team player took place over the last few seasons. This year completes the recast as he changed jersey numbers from 8 to 24. The number change had two purposes: (1) boost jersey sales and (2) distance himself from his sordid past. Kobe hopefully has learned his lessons well and will be rewarded “symbolically by his placement adjacent to LeBron at the center of Nike’s basketball future.” Not many people get second chances in recovering stardom. Hopefully Kobe will not pass up this opportunity.

The Latest Sport’s Experience: Games Go 3D-HD to Keep Customers

With the increasing popularity and affordability of home entertainment systems, Nielsen Entertainment/NRG reports ticket sales at local theaters have dropped 9 nine percent in 2005. Although data for 2006 haves not yet been compiled, the results do not look any more optimistic. In an attempt to reverse this declining trend in movie ticket sales, Shari Redstone, president of the National Amusements theater chain said, “We want to transition our theaters from being traditional movie theaters to being community entertainment destinations, and what better way to do this than sports?” The sports entertainment industry must be listening to Redstone because this week two major sporting events, the NBA All-Star game and the NASCAR Daytona 500, are providing 3D-HD programming for select customers. If these business ventures are successful, we should expect to see live sports telecasts in 3D-HD at local theaters soon.

ESPN and FOX Entertainment will introduce pay-per-view packages with 3D instant replay at this year’s NASCAR Daytona 500. By installing GPS trackers on race cars, FOX will be able to use computers to recreate video versions of exciting race situations such as car wrecks and near collisions. Just like XBox’s NASCAR 06 game shown to the right, the broadcasters can select multiple views to show exactly how the accidents occurred and simulate evasive maneuvers that could have prevented the collision. These visual enhancements can only make the viewer feel closer to the action and more connected with the entertainment experience. From a business perspective, increasing the fan’s enjoyment will help increase sales and minimize any initial objections for paying premiums to view the sport. By enhancing the sport’s actions through 3D-HD technology, the sports industry hopes to hold onto the loyal fans that cannot afford to attend the actual sport events but still are willing to pay for the video entertainment.

On the same day that the Daytona 500 is being piped into viewer’s homes on pay TV, the NBA All-Star game is being staged in Las Vegas, Nevada. Almost 3,500 lucky viewers will be selected to witness the first live 3D-HD telecast of an NBA game from the Mandalay Bay Resort & Casino. PACE Technologies, a leader in digital video equipment has specifically designed a Sports Fusion 3D-HD camera system to capture all the actions on the court. The PACE double-lensed camera system is shown in the picture to the left. Michael Rokosa, vice president of engineering for NBA Entertainment said, “Our hopes are to understand the emerging technology and where our world of entertainment is going.” If this event is successful, it will accelerate the transfer of live sport’s arena experiences to local theaters across the nation.

Just like the Daytona 500 event, ticket prices to professional basketball games are slowly becoming unafforable for ordinary fans. But basketball promoters may follow the lead of their counterparts in major league baseball. During the 2004 baseball season, the National Amusements theater chain began screening HD broadcasts of Boston Red Sox games in their Showcase Cinemas throughout New England because of the scarcity of tickets. To help simulate the game-like experience, vendors strolled through the theater aisles hawking popcorn, peanuts, and beer. As Redstone, a diehard Red Sox fan said, “The experience is more important, really, than what you are showing.” Building on this successful model, NBA Entertainment will add 3D effects to giant theater screens to make the fans feel like they can almost touch the ball. With the rapid advancement of technology over the last decade, the possibilities are endless how far the promoters of sporting events can actually involve the fans. Emerging technology holds the promise of satisfying the fan’s ultimate fantasy of playing on his favorite professional team. Some rabid basketball fans would pay a small fortune to be given the opportunity to hit a three point shot over Kobe Bryant and beat the Lakers just before time expired on the game clock. Rokosa told reporters at the pre-game events in Las Vegas, “You know the saying a picture is worth a thousand words? This one is worth two-thousand." Maybe Rokosa really meant a thousand dollars!

Sports Stories: A Look at How Shoes and Rules Change the Competition of Sports

This week’s post connects to two other blogs on Sports and Business. Both posts provide pros and cons on the other author’s viewpoint. My first set of comments are linked to the Sports Business News blog regarding the release of the Marbury One shoe line. I chose this blog because of my personal interest in athletic shoes and Marbury’s attempt to make his shoes affordable for the ordinary guy. My second set of comments are posted on the BBT: The Magazine blog and focus on changing the way sports are played in order to maintain fan interest and team revenues. As a business student, I am always amazed how sports are becoming more exciting to make the fans convinced they are getting their money’s worth. You can either read my comments posted at the other two blogs or just continue reading below.

As an athletic shoe collector I find this article fascinating if not unbelievable. While many high profile athletes make fortunes selling $150+ basketball shoes, Stephon Marbury has discovered a way to sell his own brand of shoes for a ridiculously low price of $15 a pair. I salute him for reaching out and making sure that all kids have the opportunity to achieve greatness regardless of their own economic barriers. In addition to giving back to his community, I feel that the launch of Marbury’s shoe campaign will help get more kids off the streets and onto the basketball courts. Similar to after school programs which help kids stay in school and go to college, Marbury’s shoe program will encourage kids to stay physically fit, avoid drugs, and join athletic teams. All of these actions will help promote health awareness among our youth. To satisfy my curiosity, I checked out the nearest Steve & Barry’s Athletic Store in Culver City last Saturday at 10 AM. It is located next to Macy’s department store in the Fox Hills Mall and the insides resemble a K-Mart or Target environment. I found a huge inventory of Marbury’s shoes available and not that many customers. According to Andy Todd, president of Steve & Barry’s, the shoes were sold out throughout the United States. Instead, I would tend to agree with Bob Basche that “Marbury didn’t have the cache to sell shoes nationally like LeBron James, Michael Jordan, or Dwayne Wade.” As a lifelong Laker fan, I have seen plenty of people wearing Kobe and Jordan jerseys but no one in LA wearing Marbury clothing. If Steve & Barry can make sports shoes affordable to everyone, they will clearly have revolutionized the sports apparel industry.

When I first read your article I couldn’t stop laughing. The suggested new playing rules seem absurd and could never be accepted in our traditional sport’s society. But reflecting on the changes in sports over the last couple of decades, one thing remains constant: the rules will change in order to hold the interests of the fans and make a profit for the owners. The following changes come to mind: (1) adding the designated hitter rule in baseball to eliminate a weak hitting pitcher; (2) decreasing the shot clock interval in basketball to force teams to take more shots; and (3) adding the shootout rule in hockey to eliminate tie games. In each case, the rules were changed to make the sport more entertaining and draw bigger crowds. Let’s take a look at two of your suggestions. If we eliminate football salaries and make players solely dependent on endorsements and fan donations, no one can accuse them of inflated paychecks. On the other hand, only the high profile superstars will command mega level endorsements and force the other players to create their own businesses to generate revenue. Even worse, many of the top players will flock to the giant media centers, such as Los Angeles and New York, to solicit major endorsement contracts. Your other suggestion to add a “Zero G” environment to basketball could add a whole new dimension to how the games are played. Just imagine the score for dunking the ball could be based on the difficulty of the acrobatic maneuver, just like gymnastics. And with today’s technology, creating a Zero G environment is feasible although costly. Who really can predict what the game will look like 10 years from now?