Mark Cuban - Public Works, The Inauguration and the next BailOut Scandal « blog maverick

Public Works, The Inauguration and the next BailOut Scandal « blog maverickMark Cuban endorses Obama's plan to spend money on public works projects: “In the big picture this is not a major suggestion. Think of it as something that can be done with no downside and long term benefit.

I personally don’t think a stimulus package of checks or rebates to the consumer will work. I believe consumers are so beaten up and fearful of the future that they will put it in the bank.  Of course 20 years ago that would have been a good thing, These days banks don’t appear to be lending those deposits. So there is no primary or secondary stimulus impact.”

CNN's Dave Bohrman Under Attack For CNN / YouTube "Iron Fist" Content Control

Some publications are attacking CNN's Washington Bureau Chief Dave Bohrman regarding his "iron fist" control over what videos are selected for the CNN / YouTube Republican Debate. Personally, I'm glad he's doing this, and my reason points to an issue highlighted by Mark Cuban about 10 days ago.

People are just plain mean.

Yep. Mean.

They use the Internet to take their issues out on people at a distance and the CNN / YouTube debates are no exception to this. If Bohrman were to let the people speak, the result would be totally imbalanced and absolutely insane. It would also render the Republican Party toast for this election cycle.

So Borhman's got a hard job. I'm personally confident he will pull through.

After Seeing Mark Cuban Dance, Marie Osmond Faints - Video

Well, if you saw Mark Cuban's nerdie dance number, you'd faint too. He was booted. Here's the video...

Mark Cuban Says "Internet Is Boring" But Just Trying To Move The Speed Needle For His Content

In an interview with Lloyd Grove at Portfolio, Dallas Maverick's owner Mark Cuban said "The Internet is dead and boring" and suggested that an increase of Internet speeds to the home of up to 1 G per second would do the trick.

But the question to ask is would the cost to do this launch the creation of a two-tier Internet -- one for the rich and the other for the poor?

Stay tuned.

Mark Cuban's Wrong - Potential UFL Team Owner Says No Based On Zennie's Blog Post

I just received a call from a friend of mine back east, who -- I can't use real names, corporate or otherwise, to protect the persons involved -- told me that a family member who works for a major comunications and media organization with significant monies in sports, happened to be talking about my blog post called "Why Bill Hambrecht and Mark Cuban's UFL - United Football League - Will Fail" while her bosses were overlooking the article on her computer.

"Wow," one of them was reported to have said, "Maybe this guy ( referring to me) -- knows what he's talking about. After all he's made this XFL Simworld and had the Oakland (Alameda County) Sports Commission. He must know something."

Fully on the basis of my post, this organization that owns a large and famous arena decided to avoid making overtures to establish a UFL team.

It proves that, unlike Mark Cuban in the case of the UFL (I don't know the man), there are people out there who listen to the voices of reasons and analysis. "Competing With The NFL", as Cuban puts it, is purely silly.

Mark Cuban Says Advertisers Have Leverage In Pricing Ads For Video - Really?

In his latest blog post, Mark Cuban takes a look at the impact that Nielsen's release of commercial data has had on the discussion of how ads in videos should be priced.

He says "So riddle me this. If the Internet is the ultimate DVR for video, will advertisers put comparable pricing parameters on internet video that they are trying to put on TV DVR commercial viewing ? If they do, and only pay for videos viewed within 3 days of the video being posted, won't that put a huge crimp in the internet video business ?"

My basic reponse is that there's an apples and oranges comparison here. Videos are ran over and over again each day. Plus, because they're within an optimized webpage, they're looked up in a search engine. Thus, if the video concerns a Paris Hilton issue that is discussed on the TV news, the search for that will go up, and thus cause a new round of views for the applicable video.

For the video meter to stop running in this case would be unfair and not negotiable from the standpoint of the video producer. A commercial withing a video, or a sponsored video is part of the video. Thus, it "moves" with the video -- if the video is found on Mamma.com, the ad will be there, and so on.

This is an entirely new approach to commercial message distribution. I don't think one can compare it to current TV commercial economics. I also don't think advertisers really have a good clue what's going on in new media. Many of them can't even define Web 2.0

Mark Cuban Responds To My "UFL Will Be A Failure" Post

Mark Cuban , a key player in the proposed United Football League, responded to my blog post which states in detail why the UFL will fail. He writes

"then again, there are people who read press reports and think they are an expert on someone else's businessplans...

i like our preparation better.

m"

What's interesting is this comment falls right into my take that much of the push behind football league proposals like the UFL is ego. Think about it. Cuban referes to "our preparation" as if he's not willing to listen to outside voices of reason. That's a sure receipe for disaster.

A good analysis must also take into account dissenting voices. Not true for Cuban and the UFL team, it seems. One has to admire -- to a degree -- the PT Barnum level of hubris, but it's also what blinds Mr. Cuban to the spectre of failure.

Moreover, Mark doesn't have a UFL simulation, so he's flying blind!!

But that aside, and while I hold and with a simulation that is the basis for my charge that the UFL will fail...Thanks for the response, Mark!

Mark Cuban's Right - CD's Are On The Decline

Mark Cuban's certainly totally wrong about the football business , but he's right on regarding compact disks and their future as a music distribution system. Just check out his blog and its references.

As I think about it, I can remember the last time I listened to music on the CD and that was in a car. But I've not done that anywhere else: not at home, for example. I watch movies on DVD, but music on CD's? Only in the car. It's a matter of time before one's able to just plug in their iPod and use it as a full car stereo for all cars, not just a few.

But Mark's totally wrong about football; the UFL will fail.

Why Bill Hambrecht and Mark Cuban's UFL - United Football League - Will Fail

Well, all I can say is "here we go again." A group of rich guys with egos -- no women involved here -- think that because they have enough money to start a football league, it will automatically work.

In the newest example, we have the to-be-called United Football League , or UFL. This is an idea started by San Francisco Bay Area investment banking maverick Bill Hambrick, who's firm WR Hambrick and Company I remember as Hambrick and Quist, and who employed a friend of mine from Skyline High School school, Marla Goldstein.

Ok, enough of that.

Hambrick managed to come up with this idea of the UFL and get Internet entrepreneur and Dallas Mavericks owner (funny, how the word mavericks comes up here more than once) to sign on as the first owner of a team. As I understand the UFL concept, they're going to establish cities in areas where the NFL does not have a team, and "compete" with the NFL for players that come out of college "lower than the second round."



OK. Here's the foundation upon which their failure will be based -- if they ever get enough owners to start an eight team league. The lessons of football league failure are captured in that business school case study called The XFL.

In fact, I created a system dynamics online simulation now called the XFL Simworld , and with Forio Business Simulations created a company around it called Sports Business Simulations .

The idea of the XFL Simworld is to make the right business decision to cause the XFL to last longer than the one year it did in reality.

What I've learned after countless hours and years of analysis, and design, and play and test and watching others run the sim is this: people watch people. What I mean in detail is that the XFL's biggest mistake was that it didn't have players people cared to watch. Mark Cuban's right about the "pent-up demand for football" but that doesn't mean anyone will come out and watch you and me play pro football.

What I learned from the XFL Simworld is that the XFL, and now the UFL, stand a better chance of survival if they hire recently retired or close to retiring NFL players and mix them with college players. Why? Because each of the NFL players close to ending their careers either by choice or for other reasons has their own brand name. For example, you know who Keyshawn Johnson is if you're even a causal fan of the game. But do you know who Jacoby Jones is?

Who?

See that's my point. Jacoby Jones is a wide receiver from tiny Lane College, drafted by the Houston Texans in the third round of the 2007 NFL Draft. That's one of the rounds Hambrecht and Cuban say they're going to "compete" with the NFL for players. That's great for the player and for the NFL, because the NFL doesn't have to worry about paying that player who may have dropped to the lower rounds for weird reasons more than a third round pick, and the player at least has another place to go, but don't think there's going to be a bidding war -- in fact, I predict the opposite.

The Jacoby Jones of the world may try to use the UFL as a negotiating ploy, and wind up not being signed by the NFL team. It's basic math -- there are more "third round level" players, than first round level players, so someone else who fell past the eyes of NFL scouts may look better in free agency than the third round pick using an upstart league to cause a bidding war. So Jacoby Jones goes to the UFL and gets the same money he would have earned as a third round pick by the Houston Texans. Fine, so he's happy. Meanwhile, the UFL gets a player no one ever heard of, and no one save for his family, friends, and the curious, will come out to see or turn on the TV to watch.

What Hambrecht and Cuban miss is that football is entertainment. The bottom line is to put people in seats at the stadium and have them watch on television. People follow names. They'd sooner watch a team with Keyshawn Johnson than one with Jacoby Jones. That's one big reason why the XFL failed; it lacked name NFL players to maintain TV ratings. Without them, XFL ratings dropped like a rock, and the league folded after NBC pulled from its commitment.

The UFL faces the same fate for that reason, and one more that's in a way related to the first problem I discuss. It's team location. In the XFL Simworld, the player has the option of having XFL teams in NFL cities, cities of the actual XFL, and warm weather cities. Which combination brings the best attendance? The Warm Weather Option, of course. This scenario was created based on the problems the real XFL faced in having constantly high attendance in all cities.

The best city for this in the XFL system was San Francisco, where the February through May climate was constantly mild, and never burdened with snow. Snow's a big deterent to the fortunes of a new football league hiring players no one has ever heard of. People don't buy tickets to teams that hire unknown players to play in cold weather.

Better to have a Southern Strategy.

With all of this, you'd think Bill Hambrecht and Mark Cuban would have thought more carefully before launching the UFL as a business. But they didn't, and I'm not surprised. There's one common element in all of these "new football league" cases -- ego. Someone always thinks they can clobber, outdo, take advantage of, or just plain be the next NFL. And in all cases, that never comes to pass. The UFL has all of the color of failure for that reason and the ones I gave above. What Hambrecht and Cuban should really do is work to start an NFL team to LA.

In other words, they're not going to beat the NFL, so they might as well join them.