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“Tanking,” or deliberately trying to lose an athletic contest to gain a future competitive advantage, such as earning higher draft pick of prospective players, became the talk of the town or at least of many fans, in many US cities saddled with losing teams in such sports as hockey, basketball, and baseball. If actually practiced, however, tanking would exploit spectator, players, and coaches alike.

The post Let’s tank tanking appeared first on OUPblog.

Last night, the National Book Awards (NBA) ceremony took place here in NYC. There were many things to celebrate at the event, including Jacqueline Woodson’s NBA win for her book Brown Girl Dreaming, First Book Founder Kyle Zimmer being honored for Outstanding Service to the American Literary Community, and Ursula K. LeGuinn’s terrific acceptance speech.

But the event took a bad turn when the MC for the night, Daniel Handler (better known as Lemony Snicket), followed up Woodson’s acceptance speech with these comments:

Handler: I told you! I told Jackie she was going to win. And I said that if she won, I would tell all of you something I learned this summer, which is that Jackie Woodson is allergic to watermelon. Just let that sink in your mind.

And I said you have to put that in a book. And she said, you put that in a book.

And I said, I am only writing a book about a black girl who is allergic to watermelon if I get a blurb from you, Cornell West, Toni Morisson, and Barack Obama saying, “this guy’s ok! This guy’s fine!”

Video here (those comments start at about 39:00)

Author David Perry does a good job on his blog explaining why Handler’s comment is so problematic, so I won’t go into that too deeply. If you’re curious about the history of the watermelon stereotype and why it’s racist, this Atlantic article linked by Perry gives a good rundown. Suffice it to say,  it’s not a nice thing to make jokes about, and particularly not a nice thing to make jokes about in reference to a very talented author when you’re a white man hosting an award ceremony. In front of a huge audience.

But what I really want to talk about is not Handler himself (who, yes, has issued a short apology via Twitter, the first choice Apology Outlet for all those who have made tasteless jokes) but the larger publishing community. Because the joke may have been Handler’s, but the environment which made a joke like that permissible is everyone’s problem and responsibility. It’s well known and well documented that publishing is, to put it lightly, homogenous. According to Publisher Weekly’s most recent salary survey, around 89% of publishing staff identifies as white/caucasian. That means, in a country where nearly 40% of the general population is comprised of people of color, only 11% of publishing staff are—and, I’d venture a guess, probably even less when you start looking at management roles.

Publishing is also notorious for being totally out of touch with diversity and race issues. Take a look at the low numbers of books published by/about people of color over the last 18 years:

Yet, in this year’s salary survey, almost 40% of respondents were neutral or actually disagreed with the statement, “The publishing industry suffers from a lack of racial diversity.” As my grandma likes to say, Denial ain’t just a river in Egypt.

Publishing routinely treats people of color poorly in so many ways: limiting the number of diverse books they will acquire, giving those books meager marketing budgets, whitewashing covers, creating all-white lineups at major book events…the list goes on and on. So it’s really no surprise that Handler would feel that his joke might play well to the largely white and racially unaware audience sitting in that room. And he was right, because people laughed (and, hey, The New York Times even called him “edgy”! Thanks, New York Times!)

An apology from Handler is nice, but that won’t stop this kind of thing from happening again. What is required is a true commitment from publishing: to right wrongs, to make concrete and sustainable efforts to be inclusive, to educate staff on the nuances of racism and privilege and to move toward a state of deeper understanding. There are certainly many individuals within publishing who are already committed to these things. But whether the industry as a whole will ever commit, and what it will take for them to do so, is a question I just don’t know the answer to.

In the meantime, readers and authors aren’t willing to wait, and that’s one big reason why the We Need Diverse Books campaign has done so marvelously. As of today, the campaign has raised over $108,000 to fund various projects that will increase diversity in books. That money is proof that a lot of people care and won’t let the publishing status quo, which hurts so many, reign supreme. I hope publishers will be willing to work with them on many of the initiatives they’ve developed.

In a great speech on sexual abuse in the military, Army chief Lt. Gen. David Morrison said, “The standard you walk past is the standard you accept.” I think that goes for all of us. Hey, publishing, we’ve all walked past a lot of things. Let’s not walk past this too.

By Adam Grossman

On Sunday, the NBA approved the sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer for $2 billion. From a brand management and crisis perspective, it is easy to see why the NBA wanted to approve this sale as quickly as possible. I, among many others, have written about the damage that current owner Donald Sterling has done to both the team and the league.

From an economic perspective, it becomes clearer why the NBA wanted to approve the sale as well. Using virtually any standard valuation metric that exists today, Ballmer has agreed to vastly overpay for the Los Angeles Clippers.

Finance industry professionals (investment bankers, venture capitalists, and private equity firms) primarily use three valuation approaches: inherent valuation, relative valuation, and comparable valuation. Using any of these approaches, it is virtually impossible to see how the Clippers are worth $2 billion.

To complete a valuation of a sports team, you need to start with understanding an organization’s revenue streams. Six revenue streams account for virtually all money earned by a sports organization. Like many new owners buying sports franchises, Ballmer is betting that two revenue streams will increase significantly to make his investment profitable: media rights and subsidy. Media revenue refers to the television, mobile, and digital distribution agreements signed by an individual organization. Subsidy revenue includes all revenue shared by a sports league with individual franchises.

The Los Angeles Clippers revenue will increase significantly in both areas after the 2015-16 season. Both the team’s local media rights deal and the NBA’s league wide revenue deals expire after that season. According to Forbes, the Clippers’ local television rights deal can increase to as high as $75 million per year from its current $18 million per year value. In addition, the NBA’s league wide media rights deal is expected to double from its current $930 million per year value. This means the Clippers will receive double its current media rights subsidy from a new deal – about $30 million per year.

Minnesota Timberwolves-LA Clippers game at Staples Center. Photo by David Jones, 2012. CC BY 2.0 via davidcjones Flickr.

While this is all great news for the Clippers, it does not make the team worth $2 billion. An inherent valuation approach uses a discounted cash flow model to evaluate an asset’s worth. This essentially means looking at how much profit is generated by an organization and discounting the profits based on the potential risk factors. Factor in both idiosyncratic (risk associated with owning the Clippers specifically) and systemic risk (risk associated with any financial asset). In our analysis, the Clippers generated an estimated $11 million in annual operating profit from now through 2015-16 season. Starting in the 2016-17 season when the new media rights and subsidy revenue streams start, the Clippers would generate $54 million in annual operating profit in perpetuity. Using this approach, we found the Clippers to be worth $1.05 billion.

We don’t want, however, to rely on a single technique for our assessment of the Clippers’ value. Therefore, employ a relative valuation approach that compares a company’s value using a standard valuation metric. The most common metric used is a price to earnings (P/E) ratio. This means that you compare the price of an asset compared to the amount of annual profit that asset is generating. For example, the average P/E ratio on the S & P 500 is currently at 18.3. The Clippers would have an estimated 36.8 P/E ratio given our estimated operating profits after the 2016-17 season after Ballmer purchases the team. Using the average P / E Ratio of the S & P 500 would produce a value of $990 million.

The only real argument that could be made for the Clippers being worth $2 billion would be by using a comparable valuation. With this approach, an investor looks at what other similar assets have been sold for to determine a value. You only have to look at the Clippers’ baseball neighbors to see a team that recently sold for a similar amount. The Los Angeles Dodgers were recently sold for $2.15 billion to a group led by Guggenheim Partners. While both are sports organizations, the Clippers and the Dodgers are actually very different types of properties. Because it has a bigger venue and plays many more games, the Dodgers currently make as much or more in annual ticket sales revenue than the Clippers make from all revenue streams. The Dodgers also recently signed a $7 billion 25-year local media rights agreement that will pay it far more in average annual dollars than any new media rights deal the Clippers could negotiate. A more appropriate comparison would be to examine the Clippers compared to other NBA franchises. The Milwaukee Bucks recently sold for a league record of $550 million. Ballmer is now paying 3.6 times more than the record amount paid for an NBA franchise.

To be fair to Ballmer, both the media rights and subsidy deals could far exceed expert expectations. The Los Angeles Lakers recently signed two new media rights deals for their English and Spanish broadcasts for $4 billion over 20 years, an average of $200 million per year. The NFL has recently signed new media rights deals that pay the league $7.25 billion in annual revenue, an average of $227 million per team. If the Clippers end up receiving $150 million per year in media rights revenue and the NBA contract triples from its current value then we would estimate the team being worth $2.05 billion. It is also likely that ticket sales and sponsorship revenue will increase significantly with a new owner.

ESPN’s Bill Simmons recently stated that the sale of the Clippers resembled the purchase of a home without the buyer being able to complete a home inspection. The sale of the Clippers was happening so quickly that it was impossible for Ballmer to know what exactly he was buying. However, Ballmer can (and likely has) completed an inspection of the Clippers similar to the one we just described — and he will discover there is no way to generate a $2 billion valuation for the Clippers.

Adam Grossman is the Founder and President of Block Six Analytics (B6A). He has worked with a number of sports organizations, including the Minnesota Timberwolves, Washington Capitals, and SMG @ Solider Field, to enhance their corporate sponsorship and enterprise marketing capabilities. He is the co-author of The Sports Strategist: Developing Leaders for a High-Performance Industry with Irving Rein and Ben Shields. Read his previous blog posts.

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By Adam Grossman

Donald Sterling’s lifetime National Basketball Association (NBA) ban, $2.5 million dollar fine, and potentially forced sale of the Clippers may seem to fit in the category of previous owners who received a comparable punishment. Marge Schott was forced to sell the Cincinnati Reds for her anti-Semitic and racist comments while owner of the team. George Steinbrenner was suspended twice as owner of the New York Yankees, with the last occurrence spurred by his allegedly hiring a private investigator to examine the history of his team’s star slugger Dave Winfield.

However, Sterling’s comments and the reaction they provoked is an example of the evolution of the modern crisis. This includes:

• Convergence of Sports and Entertainment — Sterling’s comments were first reported on TMZ.com, a site known for celebrity gossip more than sports coverage. This made sense, as TMZ created TMZ Sports because of the convergence of sports and entertainment. More specifically, players, coaches, and even owners are some of the most well-known celebrities in entertainment.
• Influence of Technology on Sports Crisis — Ten or even five years ago, there would have been less of a chance that a crisis would have emerged because of Sterling’s comments. The only reason the Clippers’ owner’s statements were made public is that someone recorded a private conversation on a mobile phone. The comments were then posted on TMZ.com and quickly spread throughout social media. While Sterling’s comments were abhorrent, it was unlikely he thought they would ever be made public. Rather than relying on hearsay of a fan sitting near the Clippers owner at the game, the league, media, and public could directly hear what Sterling had to say in his own words. This is a reminder that every sports fan can become a citizen journalist by turning on their smart phone.
• Pre-crisis Preparation — Sterling’s racial views have been well known and well documented. On his ESPN 980 radio show in Washington D.C., Tony Kornheiser and his Pardon The Interruption co-host Michael Wilbon recently discussed that they had conversations about Sterling’s views ten years ago. In addition, the Department of Justice had filed suit against Sterling alleging that his housing practices violated anti-racial discrimination laws. The NBA could have recognized this as a potential crisis and moved earlier to oust him before these events forced the league’s hand.

Los Angeles Clippers players stand up for the national anthem before the 31 December 2007 game against the Minnesota Timberwolves at Staples Center. Photo by Paul de los Reyes. CC BY 2.0 via Wikimedia Commons.

Virtually every one from players, coaches, and owners to media critics, pundits, and morning newscasters have analyzed the impact that Sterling’s comments had on his team’s and the NBA’s brand. What has received less coverage is why the NBA needed to take this type of action to try to resolve this crisis from an economic perspective. Sterling’s crisis potentially impacts three key revenue streams that demonstrate why his immediate ban makes sense for the NBA.

• Subsidy / Revenue Sharing — Like most major professional sports leagues, the NBA shares revenue among all 30 teams. In fact, the NBA rules dictate that teams keep 50% of their revenue with teams sharing the remaining 50% with the entire league minus expenses for items such as arena operating costs. Therefore, any revenue lost by the Clippers impacts every NBA team. Sterling has taken steps in the past to ensure that the Clippers have remained profitable even when the team is losing. His team’s recent success combined with the Lakers relative decline has made the Clippers a more important franchise for the NBA in the large Los Angeles market.
• Sponsorship – Corporate partners spend millions of dollars with the league and its teams to increase their brand awareness and enhance their brand perception. In particular, the NBA can help companies target young, male, and often African-American audiences. It would be extremely difficult to sell or with current corporate partnerships and sign future corporate partners when their brands could be associated with Sterling. The immediate exit of State Farm and Kia illustrates the possible crisis consequences. While some sponsors have already returned, Sterling’s comments and the uncertainty of whether he will sell the team still threatens their brand.
• In Game – In Game revenue consists of money a sports organization generates through competition. Most in game revenue comes from tickets, concessions, and parking that occurs on game days. The question here is whether fans would stop attending Clippers’ games because of Sterling’s comments. Unfortunately for Los Angeles sports fans, there is an example of another owner who had a similar impact on his organization. When Frank McCourt owned the Dodgers, he was embroiled in a bitter divorce and also took steps that forced the team into bankruptcy. During McCourt’s final year owning the team in 2011, average game attendance declined to 36,173 as compared to 46,172 in 2013. One could have expected a similar 22% decline for the Clippers with Sterling continuing to be the team’s owner.

Sterling’s past actions and recent comments deserved the harsh punishment. Understanding the relationship between crisis and revenue, however, can outline and forecast the possible financial questions of crisis responses. If Sterling fights the ban or refuses to sell the team, the above analysis will play an important role in the future of the club and revenue for the league.

Adam Grossman is the Founder and President of Block Six Analytics (B6A). He has worked with a number of sports organizations, including the Minnesota Timberwolves, Washington Capitals, and SMG @ Solider Field, to enhance their corporate sponsorship and enterprise marketing capabilities. He is the co-author of The Sports Strategist: Developing Leaders for a High-Performance Industry with Irving Rein and Ben Shields.

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The post Banning Sterling makes a lot of cents for the NBA appeared first on OUPblog.

        

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Today we bring you another installment of Youth Media Movers and Shakers. We’ve culled through industry publications looking for the recent executive placements we think you should know about. If you have executive news that you want us to... Read the rest of this post

Blockbuster is back and ready to battle Netflix and Qwikster (with Blockbuster Movie Pass, a service that lets users stream content and rent movies and games-by-mail. Unlike Netflix which has split into two companies, the Blockbuster Movie Pass will... Read the rest of this post

New York Knicks captain Amar’e Stoudemire has inked a deal with Scholastic to pen a middle-grade series called STAT: Standing Tall And Talented. The first book in the series is slated for release in August 2012 with the second and third books to follow in October 2012 and January 2013.

STAT #1: Home Court, will star 11-year-old Amar’e Stoudemire, dealing with sports, bullying and discovering one’s passion. Publisher Debra Dorfman negotiated the deal with Happy Walters from Rogue Sports Agency, Aaron Spiewak from Designers Management Agency and Cathy Hemming from McCormick & Williams Agency.

Stoudemire (pictured, via) had this statement in the release: ”I decided to write for children because although I am an avid reader now, I wish I had read more as a child. I hope that together with Scholastic, we can creatively inspire a new generation to read.”

New Career Opportunities Daily: The best jobs in media.

Jamie Oliver's "Food Revolution" (is halted as the superintendent of the LA School District shuts down filming of the second season because he insists the schools be portrayed in a positive light. Oliver may be let back into schools if he hands over... Read the rest of this post

"Glee" star Matthew Morrison's (debut album gets a thumbs up from his costars, who compare his musical style to Justin Timberlake's. Fox is planning heavy "Glee" promotion during the Super Bowl, with Lea Michele performing at the game and a new... Read the rest of this post

by Lauren

It’s been a busy week around these parts, with Sarah Palin’s book hitting the shelves; publishers ignoring potential breakout hits in a neverending search for obvious frontlist; and debate on Harlequin’s branching out into self-publishing territory. We answered questions on fiction credentials and platform building; admitted to guilty pleasure reading; explained publishing; practically wrote your letter to Santa for you; analyzed the reading habits of youth; asked for short story suggestions; and Chasya told you why she’s here in the first place.

Elsewhere in the blogosphere, the New Yorker’s Book Bench blog posted a covers contest so challenging that even previous winners Jim and I couldn’t get ‘em all. (Seriously, people, what are #2 and #4? They haven’t posted the answers yet, and it’s driving me a bit nuts.) They also interviewed a seriously awesome 4-year-old on his love of books and monsters. Everyone talked about the eminently deserving Colum McCann’s win of the National Book Award. Eric at Pimp My Novel pointed out that we’re writing a lot of books about people’s daughters lately. Michael Cairns at PersonaNonData analyzed e-book pricing. The author behind Belle de Jour, blog-turned-book-turned-TV-show about a prostitute in London, turned out to be a research scientist. And Nathan Bransford made a pretty compelling argument for the eventual supremacy of e-books because people gravitate toward efficiency (on the one hand, I dream about one day having a home library with rolling ladders to reach the higher shelves; on the other, I’m kind of an efficiency nerd).

And now I’m off to figure out how to efficiently fit a library large enough to require rolling ladders in a New York City apartment.

Purdy, Publicity Director

The National Book Award nominees were announced earlier this week. Kudos to all nominees, especially to our friends & compatriots at the nominated University Presses. I am glad to see the great good wisdom of the nominating committee at the NBAs. Congratulations aside, it is tradition here in the OUP publicity dept to host a little friendly contest to see who can pick the most NBA winners. This year I am inviting our blog readers to join the fray and send me your picks.  Details below.

Please note there is a point system in this contest. Correct picks in Fiction and Non-fiction will each receive 1 point each, 2 points for a correct pick in YA literature, and 3 points for a correct pick in the Poetry category. Please, only one submission per person. Send your entry to [email protected].

In the event of a tie, all entrants with the highest score will be placed in a raffle for prizes. Prizes include a copy of Garner’s Modern American Usage (3rd edition), the Oxford American Writer’s Thesaurus, The Oxford Dictionary of Quotations, and the Historical Thesaurus of the OED. One prize per player. I reserve the right to disqualify anyone I feel is trying to game this friendly competition. Awards are announced on November 18th. Winners here will be announced on November 20, 2009. Good luck.

FICTION (1 point)
Bonnie Jo Campbell, American Salvage (Wayne State University Press)
Colum McCann, Let the Great World Spin (Random House)
Daniyal Mueenuddin, In Other Rooms, Other Wonders (Norton)
Jayne Anne Phillips, Lark and Termite (Alfred A. Knopf)
Marcel Theroux, Far North (Farrar, Straus and Giroux)

NONFICTION (1 point)
David M. Carroll, Following the Water: A Hydromancer’s Notebook (Houghton Mifflin Harcourt)
Sean B. Carroll, Remarkable Creatures: Epic Adventures in the Search for the Origins of Species (Houghton Mifflin Harcourt)
Greg Grandin, Fordlandia: The Rise and Fall of Henry Ford’s Forgotten Jungle City (Metropolitan Books/Henry Holt)
Adrienne Mayor, The Poison King: The Life and Legend of Mithradates, Rome’s Deadliest Enemy (Princeton University Press)
T. J. Stiles, The First Tycoon: The Epic Life of Cornelius Vanderbilt (Alfred A. Knopf)

YOUNG PEOPLE’S LITERATURE (2 points)
Deborah Heiligman, Charles and Emma: The Darwins’ Leap of Faith (Henry Holt)
Phillip Hoose, Claudette Colvin: Twice Toward Justice (Farrar, Straus and Giroux)
David Small, Stitches (W. W. Norton & Co.)
Laini Taylor, Lips Touch: Three Times (Arthur A. Levine Books/Scholastic)
Rita Williams-Garcia, Jumped (HarperTeen/HarperCollins)

POETRY (3 points)
Rae Armantrout, Versed (Wesleyan University Press)
Ann Lauterbach, Or to Begin Again (Viking Penguin)
Carl Phillips, Speak Low (Farrar, Straus and Giroux)
Lyrae Van Clief-Stefanon, Open Interval (University of Pittsburgh Press)
Keith Waldrop, Transcendental Studies: A Trilogy (University of California Press)

Have at it:

First off, happily stolen from Nathan Bransford’s blog: J.A. Konrath talks money. If you are a writer, you must check this out. It certainly left me contemplating the meaning of these numbers.

During a time when you hear nothing but negative reports on how publishing is faring, it was nice to read this article on small mystery press Poisoned Pen’s success. PP is also hosting a web conference on October 24, for those of you looking for a reason not to leave the house. I’ll be there, so come say a virtual hello if you’re there.

Apple is happy to report that 22 percent of teens intend to buy an iPhone in the next 6 months, according to a survey of teens. And apparently plans are underway to add a Rock Band app, so we can rock out on the go.

HR Block has a new program to teach high school kids about finances. In a game-like environment, kids have to get a job, pay the bills—and you can even win a scholarship. Sounds like a cool idea, and something adults could learn something from too.

For you writers thinking of doing the NaNoWriMo thing this year: the smart and talented Alexandra Sokoloff is talking all about craft on her blog this month; looks like a great way to be prepared come November.
And I saw that NaNo has a young writers section too, for you teen writers taking the challenge. Chapeau to all of you attempting this contest; I couldn’t do it.

In Twilight news, there’s now a comic book biography of Stephanie Meyer. I thought it looked pretty nifty.

To add to your book wish list, here are the NBA nominees. Publishers Weekly discusses some questions raised by the nomination of David Small’s Stitches, as (apparently) it wasn’t a clear YA title. I'm staying out of this one, as I'm still recovering from my Edgar hissy-fit.

If you’re in the mood for a good short mystery, check out Sniplits. In honor of Bouchercon, they’re having a mystery week (with some free shorts), and they're featuring author Libby Fisher Hellman.

And for a Halloween-themed photo, check-out polar bear Carly and her pumpkin. That’s my kinda girl.

 for David Small, and commentary from Colleen Mondor:
"The issue is not about it being a graphic novel but that it was published for adults ... "

1) Thirteen Reasons Why by my favorite cross-dressing dance partner, Disco Merman Jay Asher. It arrived in my mailbox on Saturday morning and I finished it Sunday afternoon. I probably would have finished it earlier except that one of the other things I'm loving, the_webmeister was visiting from Boston for the weekend.
It's really wonderful when you read a book by someone who you adore as a person and you finish the last word and sigh, "Wow," because their book is just as awesome as they are. When you're two thirds of the way through the book and part of you wants to finish because you're desperate to know what happens but another part of you doesn't want it to end because you are so involved with these characters. You know the feeling. Jay's book reminds us of how our smallest interactions with others can have a profound affect - both for the negative and the good. So Jay - you done good.

2) My daughter decided to crack open the fantastic kids cookbook I bought her for Chanukah two years ago, and she made these yummy chocolate crossaints AND between her and The Webmeister they rustled up "Smoked Gouda and caramelized onion quesadillas", which were also scrummy, despite the slight "learn by doing" gaff of putting a tablespoon of vinegar into the caramelized onions instead of a teaspoon. The best part was that I just sat on the sofa engrossed in Jay's book while all this was going on, emerging only to taste the delicious results.

3) I've been interviewed! Check me out on Barbara Bietz's blog. (Nice alliteration there, Barbara!) It was really fun :-)

4) Even though temperatures in the 70's make it feel distinctly unseasonable, the leaves are turning and it's gorgeous.

5) It's my first Halloween in on a street where people actually go to trick or treat. (At my old house we had a total of 1 trick-or-treater in the 8 years we lived there.) My kids are really into it, and if I must be truthful, which of course I must with my dear blog readers, so am I.

I'm going to be be something writing related for Halloween. You'll have to wait and see.

Funny story though:

I was in Party City yesterday buying that fake spider web stuff for the bushes outside the house and the guy at the cashier was dressed as Little Red Riding Hood, but with boobs.

I asked him if the boobs came with the costume and the cashier next to him said, "No, they're his." Hmmm. O-kay.

So as part of the checkout he asks for my phone number and when we walked away, my daughter (whom I'll remind you is 11) said, "I'm not sure I would give my phone number to a guy dressed in women's clothing."

I'm not sure how wild old me ended up with such a sensible, practically puritanical daughter.

6) The Netflix movies I watched last night: Best in Show, Christopher Guest's hilarious send-up of the dog show culture and a real surprise that I'd not even heard of prior to the Netflix recommendation, Greenfingers, starring the scrumptious Clive Owen.

7) When you've been trying to deal with a problem with your book and you're somewhere not thinking about your book and the solution pops into your head.

Speaking of which, I must get a) write my column and b) get on with said book!