20150831-NEWS--1-NAT-CCI-CL_--
8/28/2015
3:16 PM
Page 1
Vol. 36, No. 35
$2.00/AUGUST 31 - SEPTEMBER 6, 2015
Entire contents © 2015 by Crain Communications Inc.
MesoCoat CEO says company didn’t pay its loans because of holding companies’ ties to ‘crook’ — P. 3 12-story Tower City structure could join L.A. business’ growing downtown Cleveland portfolio — P. 4
Convention crowd is ideal target Marketers and advertisers will go out of their way to reach GOP delegates, guests By JAY MILLER jmiller@crain.com
ing and attendance plummeting, and the Tribe winning one playoff series since 2002 — has been well-chronicled. Shapiro has a simple explanation for the most common complaint leveled by fans at the franchise — that the Indians aren’t spending as much as they could, or should. “Always remember the overarching challenge that we have is baseball is a game that shares limited revenue, and then has no salary cap,” said the longtime Tribe executive, who recently was mentioned as a candidate to be the next president of the Toronto Blue Jays. “So just start with that. That makes the bulk of our revenue dependent on local revenue, and those local revenues are not completely, but by and large determined by size
How does a business make an impression on the small city of people who will be in residence in Cleveland for the GOP convention in July? Marketers and advertisers are just beginning to figure out their answer to that question. For University Hospitals, it may be ads on the free trolleys that circulate through downtown. For Coca-Cola, as it has done at past conventions, it may be Coca-Cola-themed recycling containers along the routes from Quicken Loans Arena to the downtown hotels. Or maybe an automaker will take space in a strategically located parking lot to display its latest, glitziest models. The convention crowd is an elite and influential market target comprising affluent trendsetters and decision makers. Some of the marketing will be heavy duty, the wining and dining aimed at those who come to town who might end up making decisions about energy policy or what military hardware to buy. But most of the advertising and marketing will just try to make an impression on the media, lobbyists, other guests and even convention delegates milling around downtown. At past conventions, for example, AT&T passed out ChapStick and cup cozies with the company’s logo. CNN had a headquarters where it handed out CNN ballcaps. “We have clients that are interested but we also have goals” for lining up marketing opportunities,” said Loren Chylla, executive vice president for media services at the Adcom Group, a Warehouse District marketing firm. “We like to be prepared.” Chylla is gathering names of businesses, developing an inventory of signage that he will
See INDIANS, page 22
See CONVENTION, page 23
GETTY IMAGES
The Cleveland Indians invested a combined $104 million in Michael Bourn, left, and Nick Swisher — signings that turned out to be regrettable.
A losing proposition? Shapiro says Dolans haven’t turned a profit during ‘a few’ Indians seasons By KEVIN KLEPS kkleps@crain.com
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The perception is that the Cleveland Indians, who annually have one of the lowest payrolls in Major League Baseball, make millions in profits — thanks to eight-figure checks they receive from television networks and revenue sharing. The reality, according to team president Mark Shapiro, is that the Tribe’s much-maligned ownership has suffered plenty of losses over the years, and any profits the Dolans make go back into the team. “There are not many people who could steward the process better or differently unless they were willing to take huge losses every year — and they’ve taken losses quite a few
years, including this year,” Shapiro said of the Dolan family. “So I’m not sure what the expectations are, but a lot of times the disappointment has to be focused somewhere. And it tends to get focused disproportionately on them, and I think that’s situational and timing more than anything else.” The timing aspect to which Shapiro is referring is the Dolans’ $323 million purchase of the Indians in 2000. The season before the Dolans bought the franchise from Richard Jacobs, the Tribe qualified for the postseason for the fifth consecutive year, and the club’s payroll in the first two seasons of the new ownership was among the largest in the game. What’s transpired since — the Browns returning to the NFL, the Indians’ payroll rank-
ALSO INSIDE: SPORTS BUSINESS — PAGES 15-20 Officially branded Cleveland Browns programs are everywhere (and very valuable).