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TechGraphs Report: On Deck Sports and Technology Conference

Earlier this week, NYC’s Bohemian National Hall played host to hundreds of sports executives, entrepreneurs, and others looking to learn about the very latest in sports technology. Since 2013, the On Deck Sports and Technology Conference (organized and presented by SeatGeek) has provided a forum to showcase what products are “on deck” to help fans follow, analyze, and participate in sports.

On Deck has a slight bent towards sports startups, so a decent amount of the conference was geared more towards raising capital, scaling businesses, etc. Still, there were plenty of fascinating talks, panels and interviews for anyone interested in straight sports tech.

Statcast And Beyond

Possibly the most entertaining talk of the day was Joe Inzerillo’s (CTO, MLBAM) update on MLB’s Statcast, which is finally getting its moment in the sun this season. For those who needed a refresher on how Statcast operates, Inzerillo discussed its missile-technology radar system, its stereoscopically-placed cameras, and how these allow each Major League ballpark to track the movements of every player on the field (plus the ball) at any given time.

Once Statcast has this information, as Inzerillo pointed out, it can then provide real-time data on pitch velocity (actual and perceived), player velocity and reaction time, and a horde of other quantitative metrics, plus more advanced data on a 12-second delay, like fielding route efficiency. This data is just inherently cool (as you likely know if you’ve seen a Statcast-enhanced game or highlight on television), but it’s also already being used to both question and confirm existing baseball strategies.

For an example of the latter, Inzerillo looked at the fallacy of sliding into first using Statcast to plot Eric Hosmer’s 1B slide in Game 7 of the last World Series. Hosmer hit a peak speed of 20.9 MPH before sliding and being out by less than a tenth of a second. If he had just kept running, Statcast found, he would have been safe by nearly a foot. Statcast is already getting noticed by clubs, and even players — batters like to talk smack, apparently, over who has the highest exit velocity.

During questions, Inzerillo was slightly cautious about committing to the future of Statcast, but he did mention that minor league stadiums were a natural next step, and that there was plenty of work being done on developing new metrics. Statcast already tracks ‘defensive range’ for fielders, for example, but since a player doesn’t travel the same speed in every direction, there’s a need to find the more amorphous ‘effective defensive range’ and how it changes–such as during defensive shifts.

On the football side of things, Sportradar’s Tom Masterman talked about the NFL’s NGS (Next Gen Stats) platform, which is collecting data on every single game in 2015 to track, analyze, and visualize how players are moving on the field. NGS is already being distributed to clubs, media, and health and safety personnel; the long-term goal is to have X,Y,Z coordinates for every player and official, plus the ball.

Go Bucks

On Deck’s attendees weren’t just league officials and startup managers–the conference started with a live interview of Wes Edens, who became co-owner of the NBA’s Milwaukee Bucks in 2014. Much of the conversation focused on the new Bucks arena, which was being voted on by the Milwaukee city council literally as the interview was ongoing. As it’s currently planned, the presently-unnamed arena will focus heavily on keeping fans digitally connected — giving attendees plenty of WiFi, for example. At the same time, Edens noted, they want to avoid fans using technology to become distracted from the game going on in front of them. (Edens used the phrase “Instagram culture”, specifically, though he noted that he himself has had these sorts of problems before.)

Edens was similarly balanced when the discussion turned to analytics. One of the first things Edens did after buying the Bucks was to build their analytics program — bringing on employees, consultants and even discussing methodologies with other owners. There’s definitely a “golden age” of analytics in basketball going on.  Edens even thinks the NBA will end up surpassing the MLB as the leader in sports technology. But when he was asked about how the players feel?

“It’s a good question,” Edens replied. “There’s definitely lines that can be crossed” with having too much data being made public, at least when it can affect the privacy of the players (such as rest/injury issues).

Edens also briefly discussed the role of the referees and the potential benefits of replay and “the new center across the river“. Could we see yet more referee technology, even an Oculus Rift-type headset for NBA officials, in the future? “Totally possible.”

Era of Mobility

When it came time to look at how fans themselves were interacting with sports, technologically, it became clear that mobile is “it.” In that panel about growing sports startups I mentioned earlier, representatives from SeatGeek, FanDuel and Krossover all praised the importance of the mobile web for their companies–SeatGeek’s rep described it as a “tale of two companies”, pre- and post-mobile, and Krossover’s founder mentioned they’re considering dumping their web app altogether in lieu of just being on smartphones and tablets. When Yahoo Sports’ VP of engineering presented a chart showing their fantasy football traffic from this season’s Week 1, the fraction of non-mobile data was a pretty small sliver at the top.

Yahoo fantasy data graph
Trust me, it’s there.

Even companies you might never expect to get in the mobile game are joining and succeeding. Jeremy Strauser had 20 years of gaming experience at EA Sports and Zynga before joining one of the most loved and enduring brands in the sports industry, Topps. Yep, they’re digital playing cards.

Topps first got into the digital game 4 years ago and how has three top-selling sports card apps, plus a newly launched Star Wars-themed set. Why should you be interested in buying trading cards on your phone? One starting point is the capabilities the digital platform provides — literally hundreds of thousands of different designs, the ability to create all manner of rare and unique cards, etc.

Topps is also rolling out a daily fantasy sports feature (DFS was a major topic of conversation at On Deck) that allows you to compete using the players in your card deck and swapping them in and out in real time as they go up to pitch or bat. It probably doesn’t hurt, either, that they won’t take up space under your bed or get thrown out by your mom when you’re away at college.

Topps conference talk

Coming To Your Hometown

If you want to look for the next wave of sports technology, though, look to your neighborhood.

Rather than providing new tools or analytics for MLB, the NFL or the NBA, the newest sports apps want to help you participate in sports in your own town. On Deck wrapped up with a “Startup Pitch Contest” a la Shark Tank where teams had four minutes to present their groundbreaking app to a group of judges. The six competitors included:

  • Wooter – a search engine for finding and joining sports and activities like local rec leagues. Wooter provides profiles for leagues looking to form teams, players looking to join them, and the tools to process payment and set up other logistics.
  • NextPlay – helping youth coaches conduct tryouts and league drafts. For $15/month, instead of taking a stopwatch, a bunch of handwritten notes, and an Excel spreadsheet to put together youth rosters, NextPlay handles all the data collection and analytics itself. Their beta has been used by “a couple hundred organizations” and over 10,000 athletes.
  • ScoreStream – filling a gap in local journalism by crowdsourcing reports on high school sports.

With a really impressive presentation, broad coverage (10,300 HS games covered last week alone) and the #1 iOS app for high school sports, I really thought Scorestream would walk away with the prize, but it ended up going to…

  • SidelineSwap, a P2P marketplace for sporting goods. SidelineSwap has over 43,000 registered users who’re interested in trading out sporting gear just collecting dust in their basement or garage. They’re working on building partnerships with youth organizations and promoting used college-branded material, which should play very well with their chief audience of high school students.

On the whole, On Deck was a whirlwind experience for learning about cutting-edge sports tech. This report only covers part of everything I caught there. Watch for further updates and profiles soon!


A La Carte Sports Watching Is En Route

The NBA Finals have been wrapped up for just one week, but already the association is looking to the 2015-16 season. Even before the Golden State Warriors were crowned champions, the NBA announced a major change to their streaming League Pass service. Beginning next season, you’ll be given the option to purchase individual games or team packages, provided you’re out of the team’s local market.

As presently designed, the new League Pass will be compatible with computers — Windows and Mac — as well as Android and iOS devices. For those with Fire, Windows, Blackberry or other operating systems, you may be on the outside looking in. The NBA Game Time app (which is required to view League Pass on mobile devices) does support Amazon Fire devices, but support for Game Time was dropped for Windows devices in July of last year.

The importance of the NBA deciding to offer a more a la carte style cannot be understated, as now more light is cast on other sports leagues, particularly the NFL. As Engadget notes, the NFL is currently fighting a lawsuit from a fan regarding the limits of their Sunday Ticket service, specifically being forced to pay hundreds of dollars to see their favorite team 16 games per year even though they live thousands of miles away from the team’s location.

The murky waters of territorial or cable blackouts has been explored before, just ask a local Dodgers fan, and as Time Warner continues to lose money, it seems possible the 25-year and $8.3 billion dollar deal could get reworked. With sports fans and non-sports fans alike clamoring for an a la carte service, the answer could come not from a cable provider, but rather a group who knows a few things about entertainment in Sony.

During the Electronic Entertainment Expo this year, Sony announced an option purchase specific channels on their Playstation Vue services. It is an ambitious undertaking and perhaps Sony is simply dipping their toes in the water rather than diving right in the streaming market. Right now their Vue service is available in just five cities in the United States: Los Angeles, San Francisco, Chicago, Philadelphia and New York. Playstation 3 and 4 owners in those cities who are tired of the paying a cable bill can pick up a number of individual channels — or a more traditional package — including Fox Soccer, Showtime and Machinima for prices ranging from $3.99 to $14.99.

Given the push for a la carte services, a recent poll conducted by DigitalSmiths and posted via DSLReports shows an interesting trend. If sports fans are the driving force of streaming or pay-as-you-go streaming options, the survey had an interesting way of showing it.

alacarte

ESPN ranked 20th among preferred channels, behind non-sports channels such as Animal Planet, Food Network and the History Channel. ABC and CBS ranked first and third respectively, however it would be a stretch to call those sports channels given their diverse programming. The same could be said for NBC (4th), Fox (7th), TBS (15th) and TNT (17th). Where ESPN was the first sports exclusive channel, both Fox Sports 1, NBC Sports, NFL Network, MLB Network plus the Golf Channel and Tennis Channel managed to make the list.

Kudos to the NBA for seizing an opportunity to gain new fans after a strong ratings performance in the finals. Perhaps more professional leagues or streaming service options will follow suit and offer a more personalized option.

(Header image via Wikipedia)

Congressional Republicans Reintroduce Bill To Outlaw Online Gambling

Looking at my Venmo app the past couple weeks one might think that sports gambling in the US was legal. Gambling related debts have shown up frequently in my feed in the aftermath of the Super Bowl on the payments sharing app. But with the reintroduction of a bill to Congress that would make all online gambling illegal, bettors might want to start relabeling their Venmo gambling debts as “groceries.”

With sports gambling legal in only four states, the vast majority of wagers are placed with local bookmakers or offshore gambling sites. Mirroring Prohibition-era legislation and the US war on drugs, American gaming laws are puritanical, archaic, and often counterproductive. Some estimate only one percent of sports wagers are made legally and third-party “runners” often place bets at legal sportsbooks to launder money for criminals.

Which makes it odd that a group of Congressional Republicans would reintroduce a bill titled Restoration of the Wire Act (RAWA), named after the 1961 law criminalizing wagers made over wires. The legislation would outlaw online gaming, save for fantasy sports, which is exempted by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). Fantasy sports are classified as a game of skill (poker is somehow not), so it is legal at the federal level, with 40 states having laws on the books that follow suit.

You may have been able to surmise RAWA hasn’t been met with unified Republican support given this isn’t its first trip through Congress. In fact, in an interview earlier this year Senator John McCain said about legalized sports gambling, “We need a debate in Congress. We need to have a talk with the American people, and we need to probably have hearings in Congress on the whole issue (sports gambling) so we can build consensus.”

This coming after Adam Silver, commissioner of the NBA, stepped forward in an op-ed for the New York Times, calling for Congress and other professional sports leagues to explore legalizing sports gambling, writing, “I believe that sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.” Quickly getting past the irony of the fact that the NBA was the last pro sports league to have a point shaving scandal, Silver’s stance is more pragmatic than bold.

It turns out that casinos, who stand to benefit the most from a lack of competition, are the influencers behind the reintroduction of RAWA by Congressional Republicans. As Steven Silver of Above the Law Redline wrote, the ringleader behind the casino industry’s push to pass RAWA is Sheldon Adelson, the billionaire casino owner. Silver, a former sports reporter and lawyer, noted Adelson, “has openly admitted that he would be willing ‘to spend whatever it takes’ to halt the spread of gambling over the Internet.”

Adelson has been using his deep pockets to influence US gaming legislation as well as to finance the Coalition to Stop Internet Gambling, which, as the USA Today notes, “warns of children gambling on their smartphones and tablets.” This last bit is nothing more than laughable moralistic cover and obfuscation for the real issue at hand — protection of Adelson’s business interests.

Alison Siciliano, of the Coalition for Consumer and online protection said in response to the reintroduction of RAWA, “casino magnate Sheldon Adelson has relentlessly twisted the arms of members of Congress to pass an ill-conceived ban on Internet gaming.”

With fantasy sports apps like FanDuel and DraftKings predicted to handle more entry fees than all Las Vegas sports books combined by the end of this year, it’s easy why Adelson sees online gambling as a threat to casino gaming. However, with online gambling’s increasing popularity and power players like John McCain and Adam Silver sticking their necks out for legalization, it’s unlikely Sheldon Adelson will have enough firepower to shut down the entire enterprise.

(Header image via flickr)

Cable Bills Are Going Up In 2015 Due To Sports Programming

With the seemingly inexorable rise in the price of sports programming, it seemed inevitable that cable operators would have to charge subscribers for the privilege of watching American sports. According to Multichannel News, that time has already come with Time Warner Cable, as they have announced that they will be adding a $2.75 sports surcharge to subscribers’ bills starting in January 2015.

In the announcement, Time Warner cable claimed that the cost of cable sports programming has risen 91% since 2008, and according to Patrick Hruby of Sports on Earth, the average cost of a regional sports network has has risen 52 percent over the past five years. This is certainly conceivable with the types of TV deals being reached in the past few years, like the 9-year $24 billion NBA-ESPN deal in October of this year.

In Forbes, Maury Brown noted the irony of Time Warner’s announcement after their struggle to get distribution for SportsNet LA, the regional sports network they manage. The costs of carrying the channel jumped after they made a 25-year deal worth over $8.35 billion  to broadcast Los Angeles Dodgers games. This led to a standoff between TWC and other cable operators like DirecTV for distribution rights, leading nearly 70% of Los Angeles area residents unable to watch Dodgers broadcasts this past season.

After the Supreme Court’s ruling against cable disruptor Aereo, and with John McCain’s Television Consumer Freedom Act having little hope of passage in Congress, there doesn’t seem to be much hope for governmental intervention in the cable arena. Regardless, speculation of an approaching sports cable bubble persists. However, it will likely take years for this bubble to burst, requiring an increasing rate of cord-cutting and rising prices for cable subscribers.

(Header photo via NewYorkTrendNYC)

NBA Announces Exclusive FanDuel Deal

The NBA just agreed to a 4-year deal with fantasy website FanDuel according to both TechCrunch and ESPN. For daily fantasy players, this means FanDuel will be the exclusive website to get your hoops fix at. Already on the NBA Fantasy site you can be linked to FanDuel and expect the association to promote it on their apps as well as their streaming ads and commercials.

Currently FanDuel offers both free and pay-to-win leagues. The prizes for these range from cash to game tickets to merchandise. Now with the association in their pockets, FanDuel and the NBA, along with money from venture groups such as Shamrock Capital Advisors and NBC Sports Ventures, will be able to reach and attract even more customers.The growth in the daily fantasy industry is on a massive rise, as FanDuel has increased by 650,000 paying players in the past three months after never before having even a third of that many in a single quarter. FanDuel claims they project to make approximately $600 million in entry fees this calendar year while handing back $540 million in prizes.

While this is new territory for the NBA as a whole, five teams had prior deals with FanDuel; the Brooklyn Nets, New York Knicks, Orlando Magic, Dallas Mavericks and Chicago Bulls. The move also includes NBA league executive Sal La Rocca as a FanDuel board member, further strengthening the ties between the two entities.

With competitor DraftKings snapping up the NHL, this deal makes sense for FanDuel. Given the massive interest and ease of use for daily fantasy leagues, it appears as though both FanDuel and DraftKings will the main entities of daily leagues going forward. With both sides throwing around millions of dollars, the money is driving even more attention to fantasy sports.

(Image credit to NBA.com) 

A New Way to Stream NBA Games May Be Coming

Given the success of MLB.tv and MLS Live, it was only a matter of time before another major sport followed suit with an all new online streaming service. With a clear shift in how people prefer to receive their sports services — so called cord-cutters are dropping television service in favor of online streaming — the NBA announced a deal yesterday that could see a major change in how fans watch games.

The nine-year TV agreement between the league, ESPN/ABC, TNT and Time Warner won’t officially start with the 2016-17 season, but it could include some good news for those who want to stream games without a cable/satellite package. Per the Wall Street Journal:

As part of its deal, ESPN negotiated a package of games for the online video service. The NBA’s “League Pass” offering already allows users to stream live regular-season games that aren’t televised nationally and aren’t available in their home market.

But ESPN has been cautious about letting its most valuable content—live professional sports games—outside the walls of pay television. Its streaming app WatchESPN is only available to pay-TV customers, so the new online service represents a shift in approach….

It isn’t clear whether the online service will be a subscription offering or a “transactional” one in which people will pay for individual games. The parties are considering licensing the package to wireless carriers such as Verizon that are building online video services, one of the people familiar with the matter said. The number of games that will be made available for the online service is still being decided.

The significance of being able to view games without a cable or satellite plan cannot be understated. The existing NBA League Pass allows one to stream out of market games online for 149.99 for the strictly streaming version — including mobile — or 199.99 for the stream + television package. On the worldwide leader side, WatchESPN requires an existing paid TV subscription to view games, so this new service must be something built from the ground up.

Curiously rather than the NBA buying out its own streaming services, NBA League Pass and NBA TV, the online games continues to be handled by the Turner Broadcasting Company. To outsource something as big as this and still not maintain full, top-down control is a questionable move, especially when considering past criticisms of NBA League Pass.

Assuming ESPN’s streaming service has nothing to do with the previous frustrations with League Pass, this could usher in a new era of free streaming sports for internet-only subscribers. ESPN has a solid history of online services, as ESPN 360/ESPN 3 were stable platforms, and given their renewed partnership with the NBA, ESPN should  invest considerable resources to their NBA centered streaming service.

(Header photo via Keith Allison)