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10/30/2015
3:11 PM
Page 1
VOL. 36, NO. 44
NOVEMBER 2 - 8, 2015
Focus
35th Anniversary
BANKING: Rise of fintech KeyCorp stakes claim in surging space
Real estate
P. 4
DOWNTOWN: Seller’s market
Young professionals are entering brokerage biz
Condo and townhouse volume lacking
P. 13-21
P. 5
The List
GOVERNMENT: Costly move
CLEVELAND BUSINESS
Employers help to repay big state debt P. 6
Highest-paid hospital executives P. 27
It’s been a tough year to weather
Business of Life
Manufacturing growth in region ‘has really slowed’ BY RACHEL ABBEY MCCAFFERTY rmccafferty@crain.com @ramccafferty
Well Made Music has found its groove with the manufacturing of vinyl records. — Page 22
Network cashing in on Cavs Fox Sports Ohio entered start of season having sold almost 90% of its ad inventory BY KEVIN KLEPS kkleps@crain.com @KevinKleps
It’s good to be the King. Being in business with the King isn’t too shabby, either. For the second straight year, Fox Sports Ohio entered the tipoff of the Cleveland Cavaliers’ regular season with almost all of its advertising inventory sold out. And like the Cavs, who are Las Vegas’ choice to win the championship, the team’s local TV home since 1989 believes 2015-16 will be its most productive season yet.
“Year 2 (of LeBron James being back in Cleveland) is going to be even better,” said Francois McGillicuddy, Fox Sports Ohio’s senior vice president and general manager. “We’re on pace to have a record year.” Fox Sports Ohio said almost 90% of its Cavs ad inventory has been sold. That includes the NBA team’s game broadcasts, the pregame and postgame shows, and ancillary programs such as “Cavaliers in the Paint.” The network also had a 95% renewal rate with existing ad partners, and had a 15% increase in new business (both locally and nationally). Columbia Sportswear, Dos Equis,
Entire contents © 2015 by Crain Communications Inc.
Jimmy John’s and Michelin are among the national advertisers that have been added to Fox Sports Ohio’s partnership stable in 2015. “The Cavs are in high demand,” McGillicuddy said. “We’re nearly sold out.”
Local economy on rebound A key trend McGillicuddy said he likes to share with the network’s employees is Fox Sports Ohio entered the start of the Cavs’ regular season with more advertising sold than it had on the books at the end of the 2014-15 campaign. That season concluded with a six-game loss to the Golden State Warriors in the NBA Finals.
James’ return, as expected, produced prolific ratings for Fox Sports Ohio. The network’s 7.94 average for Cavs broadcasts in 2014-15 ranked second in the NBA and represented a 185% jump from 2013-14. More than half of Fox Sports Ohio’s regular-season broadcasts produced a rating of 8 or higher, and the average rating of 9.54 last March was 409% above the typical audience in March 2014. McGillicuddy said Fox Sports Ohio has a “limited number” of multiyear partnerships, which probably makes the 95% renewal rate even more impressive. “I think this speaks to two things,” SEE NETWORK, PAGE 25
So far, 2015 has been a tough year for many in manufacturing, but Northeast Ohio’s role in the strong automotive sector has helped some local companies stay afloat — or even grow. Reasons for the weakness have ranged from low oil and gas prices to the strong dollar, and few segments have made it out unscathed. Overall, there’s been a “downshift” in manufacturing growth, said PNC Financial Services Group economist Mekael Teshome. He said that’s mainly due to weak global demand, the strong dollar and companies drawing down on their inventories, after building them up for awhile. “That’s a lot to digest at one time, and as a result, manufacturing growth has really slowed down,” Teshome said. While manufacturing helped lead the economy out of the recession toward the end of 2009 and into 2010, a lot of that was due to growth in energy, said Tim Quinlan, an economist for Wells Fargo Securities. That sector began seeing weakness last summer, which has led to less interest in expansion or new investments and volatile pricing. That’s made the value of orders go down, Quinlan said. And recent reports from two locally SEE MANUFACTURING, PAGE 26