Pink's Bottom Line on Media, Money and Sports

Golf ratings climbing, rents declining and Nuggets and Porter, Jr. surging

While it’s only edition three of this newsletter, we’re off to a very strong start. We’re seeing major growth in the number of subscribers and a sharp increase in overall viewership. Thanks to everyone who shared the newsletter with others via social media, email or otherwise. As always, if you have any thoughts or comments, please send them to me directly or post them in the comments section of the newsletter for everyone to see. Now, here’s today’s edition:

MEDIA: Major TV Ratings

The PGA Championship, golf’s first major tournament of this strange season, began earlier today - it’s the first of seven golf majors scheduled over the next eleven months, thanks to scheduling postponements or cancellations due to the Coronavirus.

Since golf resumed play earlier in June after a three-month hiatus, both CBS and The Golf Channel, the two main rights holders of golf, have seen their television ratings climb sharply in comparison to a year ago.

Here’s why. For a few weeks, golf was one of only a few major sports that viewers could watch. Second, the networks have done a terrific job with coverage of the events. Third, most of the events have been very competitive.

Pink’s Bottom Line

I am expecting blockbuster ratings for this year’s PGA for a number of additional reasons.

First, Tiger Woods is participating – that’s always good for a ratings boost. Second, CBS coverage extends to primetime for Saturday and Sunday night so it should reach a bigger audience. Third, and most importantly, golf viewership clearly has momentum. There’s natural social distancing among players, and the sport has been able to hold events with little or no problems to date.

If a compelling storyline emerges during this week’s PGA, I think the event could post historically high ratings for the final round on Sunday night.

MONEY: Big Cities, Small Rents

If you’ve tried to rent an apartment in New York, San Francisco or just about any other major city in the United States, you know that rents can be prohibitive and that they seem to increase every month.

However, a quick review of the latest Zumper National Rent Report shows a very different story for the month of July.

According to Zumper, rents flatlined or even decreased in most major cities. Among the ten most expensive rental market cities in the United States, San Jose, Miami and San Diego performed the best, showing no increase or decrease in price for a one-bedroom apartment in July compared to June. All other top ten markets showed declines in one-bedroom rents from June to July, with Washington, DC showing the steepest drop, down 4.8%.

Pink’s Bottom Line

This trend has picked up steam over the past few months and it show no signs of abating any time soon. The decline in rents in America’s big cities likely represents a flight from crowded cities and a desire for more space in general.

However, look for rents to stabilize by the end of the year. Major real estate markets often prove very resilient – think New York city’s market post 9-11 — and I expect that we’ll be looking at increasing rents again by this time next year in most major cities.

SPORTS: Fascinating NBA Nugget

While much of the focus in the Western Conference of the NBA remains largely (and deservedly so) on the two teams from Los Angeles, the Clippers and the Lakers, I urge you to take notice of the Denver Nuggets.

In particular, Denver’s Michael Porter, Jr. looks like he just might have a major impact for the Nuggets come playoff time. In his past two games, Porter, Jr. scored 30 and 37 points, respectively, in Denver victories over San Antonio and Oklahoma City this week. 

Porter, Jr., the 14th selection in the 2018 draft, didn’t play in the 2018-2019 season, and has seen limited minutes this year due, in both cases, to injury. Keep in mind that Porter, Jr. was ESPN’s second highest rated prospect for the prep class of 2017. He’s a huge talent who has been plagued with injury since his high school days.

Pink’s Bottom Line

Denver is for real. With an emerging Michael Porter, Jr., a slimmed down Nikola Jokic and a big-time scorer in Jamal Murray, the Nuggets will be a tough out for any team in the playoffs.

That said, if current seedings hold, the Nuggets are on a collision course to face the Houston Rockets in the first round the playoffs. That would be one of the best first round match-ups in years.

If that series does happen, though it’s very likely playoff seedings will change before then, I think the Nuggets-Rockets series winner has a great chance to win the Western Conference. In the meantime, watch the Nuggets and Porter when you have a chance – you won’t be disappointed.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.