10/26/00:
The Indians & The Browns Are Bringing Some Big Green To Cleveland
SUSIE GHARIB: The line, if you build it, they will come
has special meaning in Cleveland. The new Gateway Sports Complex and the Browns
Stadium, where we've been broadcasting all week long, have attracted millions
of visitors downtown. And as Erika Miller reports, the teams are a symbol of city's
rebirth.
ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: It's
easy to understand why Cleveland baseball fans have a reputation for being fiercely
loyal. All 43,000 seats have been sold out at every Indians home game for the
past five seasons. That's a record for any major league baseball team. Most visitors
come to cheer for the home team, which has won five American League central titles
in the past six years. But they are also drawn to the new state of the art ballpark,
Jacobs Field, which is part of the Gateway Sports and Entertainment Complex. The
owner of the Cleveland Indians says there was little reason to travel to the neighborhood
before.
LARRY DOLAN, OWNER, CLEVELAND INDIANS: It wasn't nice before.
There were adult movie theaters. People would not come down here for positive
reasons and when this site was selected and this facility was built, the transformation
was-I can't even say it was predictable, but it was marvelous.
MILLER: But a team doesn't have to win games to have a winning
relationship with fans. Even the Cleveland Browns, which had a losing season on
the field, have had a championship at the box office. The Browns have sold out
all 72,000 seats in every home game in their new Browns Stadium. Carmen Policy,
CEO of the Browns, says building a new football stadium was necessary for the
team's survival.
CARMEN POLICY, CEO, CLEVELAND BROWNS: Stadium economics
has dictated that only those who are in the position to make the kind of revenues
that a new stadium brings to the table are able to compete at the highest level.
MILLER: The success of Cleveland's new sports venues has
spilled over into surrounding neighborhoods, bringing millions of visitors and
dollars to downtown Cleveland. Since it was created in 1994, Gateway is credited
with adding at least 4,500 new jobs to the economy. It has been hailed as an urban
success story, an example of a public/private partnership encouraging economic
renewal. But some critics question the score.
ROLDO BARTIMOLE, COLUMNIST, CLEVELAND FREE TIMES: Why should
the people of Cleveland, where the percentage of poverty that is around 40 percent,
pay for the entertainment of people coming out of other areas and who have money
to pay for their own entertainment? The injustice of it is what aggravates me
and a lot of other people.
MILLER: According to the county finance department, the
Gateway Complex cost $425 million to build, $65 million of which was private funding.
The remaining $360 million is being paid for by the public in the form of a 15
year tax on tobacco and alcohol and tax exempt bonds. The public is also picking
up most of the tab for Brown Stadium, which has exceeded initial cost projections
by at least $60 million. The bulk of the public's portion is being paid for through
municipal bonds, supported by a city parking tax as well as a 10 year extension
of the sin tax. Plus, both Gateway and Brown Stadium are partially exempt from
property taxes. But sports leaders defend their turf.
POLICY: I don't believe there's anything that really says
as loudly as is being said in terms of the sports facilities here in Cleveland
that this community is about being, you know, a first class city.
MILLER: Brown Stadium and the Gateway project showcase what
a well planned and well situated sports complex can do for a downtown region.
While the degree of economic benefit is debatable, there can be little doubt about
the impact of these new facilities on civic pride. Erika Miller, NIGHTLY BUSINESS
REPORT, Cleveland.
Nightly Business Report transcripts are available on-line post broadcast.
The program is transcribed by FDCH. Updates may be posted at a later date. The
views of our guests and commentators are their own and do not necessarily represent
the views of Community Television Foundation of South Florida, Inc., Nightly Business
Report, or WPBT. Information presented on Nightly Business Report is not and should
not be considered as investment advice. © 2000 Community Television Foundation
of South Florida, Inc.
10/26/00: One On One With Good Sport Mark McCormack,
Chairman & CEO, IMG
SUSIE GHARIB: We were talking a few moments ago about the
sports revival in Cleveland. Well, the man who pioneered the sports marketing
business is based right here in Cleveland, Mark McCormack. He was a young lawyer
in Cleveland with a passion for golf. In 1960, he signed his first client, Arnold
Palmer. His company, IMG, is now a billion dollar empire representing the who's
who of sports including Tiger Woods, Pete Sampras, Scott Hamilton and Derek Jeter.
"Sports Illustrated" named McCormack the most powerful man in sports.
And when I met with McCormack recently in New York City, I began by asking him
why IMG still has its headquarters in Cleveland.
MARK MCCORMACK, CHAIRMAN & CEO, IMG: Well, I think it's
a wonderful city to live in. I mean, first of all it's centrally located in the
United States. It is half way between New York and Chicago. It's got good airline
connections directly to Europe now and other places. I think its residential areas
are great. It's a great place to raise children. Education is great in Cleveland.
I think everything about the city is a place you are proud to be part of. I feel
very fond about Cleveland. I was sorry that the Browns left and I'm glad they're
back.
GHARIB: Mr. McCormack, we've seen an incredible boom in
sports, athletes becoming celebrities and multi-millionaires, obviously your business
has benefited from all of this. Is this trend going to continue? Well, I think
what's happening into sports is like everything else with communications and the
Internet and it's going to become more and more global. I think within the next,
within this century you'll see NBA franchises internationally, NFL franchises
overseas, major league baseball play in a World Series that involves Japan and
Taiwan and Venezuela and the Dominican Republic and Cuba, along with the U.S.,
and I think sports will become more and more global.
GHARIB: You just pulled off the biggest contract for Tiger
Woods, $100 million with Nike (NKE). How much higher are these contracts going
to go?
MCCORMACK: Salaries keep getting bigger and bigger in team
sports. Your television rights for leagues and events is getting bigger and I
don't think there's any necessary ceiling. Supply and demand will do it.
GHARIB: Golf is the hottest sport right now. What sport
do you think is going to be the next craze?
MCCORMACK: Well, I think soccer in America is going to be
the next craze. I think soccer is for sure the biggest sport in the world. It
isn't the biggest sport in America yet, but it's played at the school level all
throughout America. The U.S. Soccer team did well in the Olympics, finished in
fourth place. The women won the world championship in front of 100,000 people
at the Rose Bowl a few years ago and I think soccer is the next big sport in the
United States.
GHARIB: And who is going to be the next superstar, the next
Tiger Woods, the next Michael Jordan?
MCCORMACK: Wow, I mean it depends upon the sport. I think
Vince Carter obviously in the NBA is the next superstar. He's absolutely an extraordinary
athlete. I think Cleveland Browns quarterback Tim Couch might be one of the best
new quarterbacks in the league and that's going to be pretty exciting as well.
But every sport has their aspiring superstar and many existing superstars.
GHARIB: In your new book you say in this era of e-mail,
cell phones and faxes, still it's the power of the personal touch that seals the
deal. What is the most important tip here?
MCCORMACK: I see people sending e-mails to someone 40 yards
away from them in an office. I think it's disrespectful of an employee to send
an e-mail to him or her when you can walk down the hall and talk to them. I think
people want to think that you care about them as human beings and their families
and their worries and their concerns and their hopes and their dreams. And if
you can't make friendships and relationships that way, all the technology in the
world will not make you a success.
GHARIB: Mr. McCormack, I know there's been a lot of discussion
about succession. Generally, it doesn't look like you show any signs of slowing
down here. In this era of so many mergers and acquisitions, would you consider
selling the company?
MCCORMACK: I have no desire ever to sell it. I have no desire
to ever go public with it. I think a private company is just fine and I have a
very top and very loyal senior management team that I would hope will go on running
the company after I've gone into never-never land, or hopefully to heaven.
GHARIB: Thank you very much, Mr. McCormack, and best of
luck to you.
MCCORMACK: Thank you
Nightly Business Report transcripts are available on-line post broadcast.
The program is transcribed by FDCH. Updates may be posted at a later date. The
views of our guests and commentators are their own and do not necessarily represent
the views of Community Television Foundation of South Florida, Inc., Nightly Business
Report, or WPBT. Information presented on Nightly Business Report is not and should
not be considered as investment advice. © 2000 Community Television Foundation
of South Florida, Inc.
10/26/00: The Smuckers' Secret For "Jamming"
For Generations
SUSIE GHARIB: If you hear the start of the phrase "with
a name like Smucker's (SJM)," well, you can probably finish it from memory.
The J.M. Smucker company based in Orrville, Ohio, has one of America's best known
corporate names and as Linda O'Bryon reports, it also makes some of America's
best selling products.
LINDA O'BRYON, NIGHTLY BUSINESS REPORT CORRESPONDENT: For
the J.M. Smucker Company, this is the sound of success. It's the production line
of apple butter, jars rolling through the plant in Orrville, Ohio and then on
to grocery store shelves. Smucker's is a rarity in American business these days.
It's the country's number one maker of jams, jellies and preserves. But it's also
a century old family run firm with a commitment to community.
RICHARD SMUCKER, PRESIDENT, J.M. SMUCKER COMPANY: Well,
I think we are a somewhat unique company as a 103 year old company. The fact that
we're located in a small Midwestern town and have been here in the same town for
103 years does make it somewhat special. We've had employees that have been around,
second and third generation employees, so not only is the family in this fourth
generation, some of our employees are at least in their third generation.
O'BRYON: The company has leveraged that unique family name
in its advertising, creating what analysts say is one of the most recognized brands
in the food industry.
JOHN POSTERARO, FOOD ANALYST, SIDOTI & COMPANY: It's
definitely a selling point. These products are high quality products. People know
the name. People develop emotional-have developed an emotional bond with the Smucker's
brand name over time and, you know, it's perceived in the marketplace as a high
quality product.
O'BRYON: And Smucker's is expanding internationally. It
recently acquired companies in Brazil and Scotland in addition to its businesses
in Canada, Mexico and Australia.
TIM SMUCKER, CHAIRMAN, J.M. SMUCKER COMPANY: We have grown
in the-outside the U.S. through acquisitions and there sometimes we use our brand.
Sometimes we use a brand that's known in that particular country. Australia is
a good example of that. Our brand there is IXL and we're the number one brand
in Australia with that brand.
O'BRYON: Smucker's is also expanding through new products
under its own name like Uncrustables, a thaw and serve peanut butter and jelly
sandwich now being test marketed.
R. SMUCKER: For years my grandfather had said we should
be making a peanut butter and jelly sandwich, not just the peanut butter and the
jelly that the consumer would have to take home and make themselves. But we never
figured out a way to do that, that it would be as good as a homemade sandwich
and recently we've been able to do that.
O'BRYON: Analysts like the firm's stock. Sidoti's Posteraro
has a "buy" rating on it with a target price of $29. But to the Smucker
brothers, there are things more important than the stock price.
T. SMUCKER: I think the most fun that I have, the most thing
I, the one thing I enjoy most about it is our job, my job and my brother's job
is walking around the plant. And if you really understand that your consumer is
the same kind of, has the same kind of needs and wants that you do and you're
trying to provide something that will make their life just a little bit happier,
that's a fun business to be in.
O'BRYON: And one the family intends to stay in. The fifth
generation of Smuckers is now working its way through the corporate ranks. Linda
O'Bryon, NIGHTLY BUSINESS REPORT.
Nightly Business Report transcripts are available on-line post broadcast.
The program is transcribed by FDCH. Updates may be posted at a later date. The
views of our guests and commentators are their own and do not necessarily represent
the views of Community Television Foundation of South Florida, Inc., Nightly Business
Report, or WPBT. Information presented on Nightly Business Report is not and should
not be considered as investment advice. © 2000 Community Television Foundation
of South Florida, Inc.
10/26/00: Paul Kangas' Wall Street Wrap Up
PAUL KANGAS: In any case, stocks on Wall Street began the
day modestly higher in a technical snapback from yesterday's sell-off. At 10 a.m.,
the Dow Industrial Average managed to post just a 17-point gain though, while
the NASDAQ Index recouped only 23 points of yesterday's hefty 190-point tumble.
Upon seeing how feeble the early rebound was, disappointed investors moved to
the sell side, especially in that tech sector again. So by 11:30 this morning,
the Dow fell to a 15-point deficit; the NASDAQ Index posted a 72-point loss. The
reevaluation of the tech stocks to lower levels continued into mid-session and
well into the afternoon as the tech-laden NASDAQ Composite Index plunged 140 points
down to the 3080 level at 2:30 p.m. But the Industrial Average was off only 29
points. That relative firmness in the blue chips triggered a sharp rally which
lifted the Dow to a 111-point gain at 3:30 p.m., but some late selling cut that
to a closing advance of 53.64 points putting the Dow at 10,380.12. The NASDAQ
Composite Index finally came in with a gain of 42.61 ending at 3272.18.
Big board volume today very close to what it was yesterday,
down about 10 million shares; still very active. A little bit more down volume
than up volume, about 41 more million shares.
And the Transport Index had a good day, rising over 53 points.
Utility Index down nearly 5 1/2.
The Closing Tick though slightly bullish at +330.
Standard & Poor's 500 down nearly 1/2 point.
The 100 up 1.48.
MidCap 400 gained 5 1/3 points.
And the Bridge Futures Price Index down nearly 2 points.
New York Stock Exchange Composite fell just over 3.
But and then a lot of plus sign, Value Line up 2.22.
4.55 gain in the Russell2000 Small Cap.
And the Wilshire 5000 up 5.15.
The bond market was boosted nicely early today by the third
quarter employment cost index which rose just a modest 0.9 percent, that was a
slower pace than the 1 percent rise which was generally expected. Then, the early
NASDAQ sell-off prompted some flight-to-quality buying, but that evaporated when
stocks rallied late in the session.
So, tax free and corporate issues ended mostly unchanged.
While the Treasury market was narrowly mixed.
The 5-year notes fell 3/32.
No change at all in the10-year note.
30-year bond up 9/32.
And the Lehman Brothers Long-Term Treasury Bond Index fell
nearly a point and one-half.
Finally a day where the plus sides were in the majority
over the minus signs and that included the Dow Industrial Average, up 53.64. The
broader market just barely higher, though, and 42 new highs for the year as against
108 new lows.
Topping the active list, Nortel Networks (NT) up $0.50.
Not much compared to yesterday's 18 point loss. However, after the market closed,
JDS Uniphase (JDSU), another photo optical company, came in with better than expected
earnings, $0.18, $0.02 above Street expectations. Revenues up a handsome 23 percent
and that rallied all of the fiber optic stocks, including Nortel, which in after
hours trading was up to $47 a share.
AT&T (T) still falling. Of course, there's going to
be a dividend cut with this restructuring.
Corning (GLW) closed down $6.88, but in after hours trading
was up to $75 on the JDS news.
Lucent Technologies (LU) up $0.94.
EMC (EMC) fell $3.88, fifth in volume.
General Electric (GE) down $0.81.
Sprint PCS Group (PCS) lost $4.
Nokia (NOK) edging up $0.25.
A $0.38 point gain in Pfizer (PFE).
And Wal*Mart (WMT) down $2.50. Some large overhanging blocks
of stock traded today.
American International (AIG) down $6.06 despite third quarter
earnings $0.60, up from $0.54 last year. Revenues up 16 percent.
Earnings were in line with expectations, but UBS Warburg
Brokerage downgraded the stock from "strong buy" to just a "buy"
on valuation.
DaimlerChrysler (DCX) edging up $0.30. The bad news was
expected. Third quarter profits fell 78 percent from last year. The Chrysler division
alone lost $512 million.
Fluor (FLR) was down $1.56. The company sees lower than
expected third quarter earnings coming in at $0.45 to $0.50 a share.
IBM (IBM) the biggest point gainer in the Dow today, up
$5.19.
PepsiCo (PEP) fell $1.50. First Boston Brokerage downgraded
it from "buy" to "hold."
And WellPoint Health (WLP) had a good day, up $5.44. Third
quarter earnings $1.38, $0.08 better than Street expectations. Revenues up 24
percent. CIBC and Lehman Brothers Brokerages both increased earnings estimates
on WellPoint.
Orthodontic Centers of America (OCAI) up $5.25. The company
in with third quarter earnings, $0.33, up from last year's $0.25. Revenues up
a whopping 30 percent. The company also plans to withdraw a proposed 4.4 million
share stock offering. That represented dilution. That won't happen.
Reebok International (RBK), that's the big shoe and apparel
marketer, up $2.94. Third quarter operating earnings, $0.56, $0.05 above the Street
estimate.
Harman International Industries (HAR) which, of course,
has that high quality audio speakers and so forth, a $6.01 gain. The story, yesterday
earnings were better than expected. First quarter, $0.21, up from $0.14. Today
First Boston upgraded the stock from "buy" to a "strong buy."
Friedman Billings Ramsey (FBR), a brokerage, up $1.13. Real
turnaround there. Third quarter earnings of $0.10 versus a loss of $0.47 a share
last year. Revenues doubled during the period.
Harte-Hanks (HHS) down $4.50, the big percentage loser.
Third quarter earnings lower than expected at $0.30 a share.
And Flowers Industries (FLO) down $2.31. You heard earlier
it's going to sell its stake in Keebler (KBL). But today the Janney
Montgomery Scott Brokerage downgraded the stock from "buy"
to just a "hold."
NASDAQ trading, a gain of 42.61, a long way from where it
was in the morning. The volume up a bit from yesterday, very active, 18 stocks
higher for every 19 lower.
JDS Uniphase (JDSU) closed up $3.44. In after hours trading
it was at $83 on those better than expected earnings.
Sun Microsystems (SUNW) down $6.63.
Cisco (CSCO) up $2.94.
Juniper Networks (JNPR) down $5.50, but it was 5 points
higher than that in after hours trading.
So was SDL (SDLI), which rose $6.38 during the regular session.
CIENA (CIEN), this is another photo optical connected stock,
down $5.38, but it recovered all of that after hours.
Microsoft (MSFT) up $3.19. Move there.
Applied Micro Circuits (AMCC) down $9.50.
VeriSign (VRSN) fell $5.13.
And Ariba (ARBA) had a good day, up $17.52.
Meridian Insurance Group (MIGI) up $9.19. State Auto Mutual
will acquire this company for $30 a share.
And Virata (VRTA) down $16.06. Second quarter earnings $0.13
versus a loss last year, but UBS Warburg still downgraded the stock from "strong
buy" to just a "buy."
And Clarus (CLRS) dow |
