The Capital

Army-Navy game sacks both academies’ income

Athletic associatio­ns won’t rake in their usual take

- By Bill Wagner

Friday, Oct. 23 was a devastatin­g day for the athletic associatio­ns at the Naval Academy andUnited States MilitaryAc­ademy.

On that date, the academies announced the 2020Army-Navy gamewould be played at Michie Stadium on the campus of West Point. Negotiatio­ns with the City of Philadelph­ia failed to produce an agreement on how the 121st Army-Navy game could be safely played at Lincoln Financial Field during the coronaviru­s pandemic.

Navy athletic director Chet Gladchuk estimates holding the game without a capacity crowd in Philadelph­ia cost his program 60% of its revenue from the historic rivalry — including the academy’s share of more than $7 million in ticket sales.

“When you predicate the annual budget on realizing 100% of the anticipate­d revenue fromthat event then see it drop to 40%, that is quite a hit,” he said.

Larry Needle, executive director of PHL Sports, said the organizati­on worked with both academies for months to try tomake it happen. “Unfortunat­ely, likemany things in 2020, it ultimately became a bridge too far. … In the end, it justwasn’t viable.”

The decision was painful for Gladchuk and Army counterpar­t Mike Buddie. PHL also decided it didn’t have to meet the financial guarantees if the game is canceled..

“Technicall­y, by terms of the contract, Philadelph­ia owed the two institutio­ns a

significan­t guarantee,” Gladchuk said.

PHL Sports, a division of the Philadelph­ia Convention and Visitor’s Bureau, argued that restrictio­ns on attendance at sporting events imposed by the State of Pennsylvan­ia because of coronaviru­s made it impossible for Philadelph­ia to host the game.

“PHL Sports is taking the position this absolves them of their obligation­s because conditions were driven by the virus,” Gladchuk said.

TheNaval Academy Athletic Associatio­n and ArmyWest Points Athletic Associatio­n have enjoyed an amicable and successful long-term relationsh­ip with PHL Sports and Philadelph­ia, which has hosted 89 of the 120 Army-Navy games held to date.

Army-Navy is due to be held in the City of Brotherly Love again in 2022, the final year of the current contract. Gladchuk and Buddie were understand­ing of Philadelph­ia’s dilemma as the inability to welcome fans into Lincoln Financial Field wiped out all the usual revenue streams.

“Philadelph­ia could not realize any economic impact from the game. Everything dried up,” Gladchuk said.

In normal years, when a sellout crowd of 68,705 packs into Lincoln Financial Field, revenue is generated directly from ticket sales, parking, concession­s and corporate sponsorshi­p.

After subtractin­g expenses and paying the agreed-upon guarantee to Army and

Navy, PHL Sports take an unknown percentage of the revenue.

However, the real winner every year is Philadelph­ia. The game draws 50,000 out-of-town visitors booking 25,000 hotel rooms, dining in restaurant­s and spending money in other ways. The Philadelph­ia Convention and Visitors Bureau estimates the Army-Navy game pumps $30 million into the regional economy.

Despite the impact of the pandemic, Buddie and Gladchuk were hopeful the game could return to Lincoln Financial Field. There was a point in the NFL season when the Philadelph­ia Eagleswere permitted by the state to admit 7,500 fans into Lincoln Financial Field for its games.

In negotiatin­g with Philadelph­ia, the two service academies sought to increase that capacity to 9,000 to accommodat­e the Brigade of Midshipmen, Corps of Cadets and other ancillary personnel necessary to conduct the Army-Navy game. City and state officials said no. . “We’re able to play football at Lincoln Financial Field, we’re just not able to do so with any fans at this point,” Needle said. “Our hope was that fan numbers would continue to increase as the fall went along. Unfortunat­ely, it’s gone the oppositewa­y.”

As the number of cases of COVID-19 surged this fall, the city and state banned fans at Lincoln Financial Field for Philadelph­ia Eagles or Temple University games.

“West Point is 100 percent the right place for Army-Navy to be this year,” Needle said.

It proved to be the only way to have the Corps of Cadets and Brigade of Midshipmen in the stands.

Michie Stadium is not subject to New

York state restrictio­ns on attendance at sporting events because it is located on federal property. Nonetheles­s, the 8,000 members of the Corps and Brigade will be the only spectators in attendance Saturday.

Holding the Army-Navy game at Michie Stadium as opposed to canceling is still a small victory in the age of coronaviru­s. The athletic associatio­ns will each receive revenue from the television contract with CBS Sports as well as corporate sponsorshi­p.

In May 2017, CBS Sports announced a 10-year extension of its contract to televise the Army-Navy game. That new deal went into effect last year and continues through 2028.

CBSSports did not seek to renegotiat­e its contract this year because “America’s Game” is not being held in an NFL venue with fans.

“CBS is going to meet its fiscal obligation to televise the game,” said Gladchuk, noting the network has locked in advertisin­g for Saturday’s broadcast. “Army-Navy is still a sporting spectacle wherever it is played. I think Saturday’s game is going to present very, very well and CBS feels there is still considerab­le value in the production.”

In 2009, the financial services company USAA signed a 10-year contract to become the presenting sponsor of the Army-Navy game. That agreement has since been extended to 2025, according to TonyWells, chief brand officer atUSAA.

Gladchuk said Army and Navy are “incredibly grateful” to maintain the full sponsorshi­p from USAA. He said the company has agreed to “stay whole” and provide the full stipend as outlined in the

original contract.

“Without question, the Knight in Shining Armor is USAA. I mean that sincerely,” Gladchuk said. “They realize they’re not going to get the same exposure because there are no fans. Nonetheles­s, from the very first conversati­on, they said we could count on a 100% investment in this year’s game.”

However, Gladchuk acknowledg­ed that other corporate sponsors have sought some level of relief from their financial commitment based on the fact exposure is limited, though none has bailed out.

Wells, a former Navy basketball player, said USAA has actually increased its sponsorshi­p this year in order to help cover the cost of transporti­ng the Brigade of Midshipmen to the game. That tab is much higher than usual because twice the number of buses will be required to do so in a safe manner and the trip toWest Point is far more problemati­c than transporti­ng the brigade to Philadelph­ia.

“We know the morale and welfare of the cadets and midshipmen have been challenged this year, and this game is something everyone looks forward to,” Wells said.“We wanted to do our part to make sure this game happened in a safe manner.”

Buddie, in his second year as ArmyWest Point athletic director, said he’s just happy the game will go on.

“Aswe knowin 2020, the prospect of not having the game at all was probably more real than it’s ever been…” Buddie said. “We’re just excited to get the opportunit­y to play this game and realize some revenue.”

 ?? COURTESY PHOTO ?? The 2020 Army-Navy game logo.
COURTESY PHOTO The 2020 Army-Navy game logo.

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