Baseball is a distant second to football in the lobbying arena. Like the NFL, Major League Baseball (MLB) is concerned with copyright issues. With Congressional focus on drug testing reaching a high level in the mid-2000s, MLB also engages in lobbying efforts related to drug testing. One area on which baseball focuses more than other sports leagues is immigration policy since the sport has a large percentage of players that come from abroad, including Cubans who are effectively defecting when they come to the U.S. to play.
Ultimate Fighting Championship (UFC) came in a surprising third in lobbying expenditure. Since it pay-per-view events comprise the bulk of its revenues, UFC lobbies hard to prevent online and satellite piracy.
If fans "steal" the matches, it's a major impact on revenues since the league does not generate much in the way of licensed merchandise when compared to the major sports leagues.
Three relatively high profile sports organizations spent less than $100,000 on lobbying efforts in 2011. The National Basketball Association (NBA) spent just $85,000 last year, despite its large domestic audience and recent labor strife. NASCAR's lobbying expenditure totaled $90,000 last year. The National Hockey League (NHL) spent a pittance: less than $5,000.
|
Organization |
2011 |
Q1 2012 |
|
National Football League (NFL) |
$1,620,000 |
$300,000 |
|
Major League Baseball (MLB) |
$520,000 |
$70,000 |
|
Ultimate Fighting Championship (UFC) |
$410,000 |
$110,000 |
|
U.S. Olympic Committee |
$360,000 |
$90,000 |
|
Bowl Championship Series (BCS) |
$350,000 |
$70,000 |
|
Professional Golf Association (PGA) Tour |
$340,000 |
$100,000 |
|
National Thoroughbred Racing Association |
$260,000 |
$60,000 |
|
NFL Players Association (NFLPA) |
$230,000 |
$30,000 |
|
National Collegiate Athletic Association (NCAA) |
$170,000 |
$40,000 |
|
NASCAR |
$90,000 |
$20,000 |
|
National Basketball Association (NBA) |
$85,000 |
$25,000 |
|
Major League Baseball Players Association (MLBPA) |
$79,435 |
$7,238 |
|
Professional Golfers Association of America (PGAA) |
$72,000 |
$18,000 |
|
U.S. Soccer Foundation |
$49,000 |
$21,000 |
|
International Boxing Federation |
$40,000 |
$10,000 |
|
United States Tennis Association |
$20,000 |
$40,000 |
Source: First Street Research Group
The fact that millions of dollars are spent on lobbying in Washington is a reflection of the impact legislation can have on the various sports entities. Sports can be hurt or rewarded by Federal legislation. Every major sports entity is somehow involved. First Street Research will report its findings, which based on reporting by the leagues themselves, on a quarterly basis. As some of the major sports leagues face upcoming labor issues and the BCS plans an overhaul of its bowl series, the aggregate level of sports lobbying activity is bound to rise.
A native of Newark, Jed Hughes is Vice Chair of Korn/Ferry and the leader of the executive search firm's Global Sports Practice. Among his high profile placements are Mark Murphy, CEO of the Green Bay Packers; Larry Scott, Commissioner of the Pac-12 Conference; and Brady Hoke, head coach of the Michigan Wolverines. Earlier in his career, Mr. Hughes coached for two decades in professional and intercollegiate football where he served under five Hall of Fame coaches: Bo Schembechler (Michigan), Chuck Noll (Pittsburgh Steelers), Bud Grant (Minnesota Vikings), John Ralston (Stanford) and Terry Donahue (UCLA). Follow him on Twitter @jedhughesKF.
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