DailyFinance.comhttp://www.dailyfinance.comDailyFinance.com%http://www.blogsmithmedia.com/BlogURL%/media/feedlogo.gifDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Can Pay-As-You-Go Auto Insurance Save You Money?http://www.dailyfinance.com/2011/04/04/can-pay-as-you-go-auto-insurance-save-you-money/http://www.dailyfinance.com/2011/04/04/can-pay-as-you-go-auto-insurance-save-you-money/http://www.dailyfinance.com/2011/04/04/can-pay-as-you-go-auto-insurance-save-you-money/#commentsFiled under: ,

If you're driving less, you might be eligible to spend less on auto insurance with pay-as-you-go plans. But these per-mile policies come with some drawbacks.The pay-as-you-go trend has already spread to a wide variety of consumer services ranging from wireless to software. Now it looks like auto insurance might be the next industry to jump on the bandwagon.

The idea behind it is simple: People should only pay for the insurance coverage that they actually use. In other words, drivers who drive less would pay less for insurance.

Consumer groups and some economists have demanded this type of coverage for years, and their lobbying has paid off. Last month, Progressive Insurance began advertising its Snap Shot Discount pay-as-you-go product nationally. Its available in 32 states.. State Farm and Allstate also offer similar deals in a handful of states.

Texas spearheaded the movement: It was the first state to allow such coverage back in 2001, while California -- a state that often begins auto trends -- only began permitting it in December.

Big Discounts for More Data

The industry argues that these policies can save consumers a bundle. Progressive estimates potential savings of $150 a year, for example. "Pay-as-you-go insurance can be an excellent choice for people who drive very few miles during the week," Chris Kissell, managing editor of Insurance.com, writes in an email.

Sponsored Links
But experts caution that pay-per-mile policies aren't right for everyone. For one thing, to determine eligibility, insurers typically install a device that tracks customers' driving habits for some time -- usually about six months, Kissell says. "Some drivers may not be comfortable with this and may see it as an invasion of privacy," he writes.

Some of the programs also have strict rules about when customers can drive and may disqualify customers from getting the discount if the tracking device shows that they often drive late at night, he adds.

An Invasion of Privacy?

Progressive's program has drawn the ire of consumer groups because it requires drivers to install a "Snapshot" device, which monitors how far -- and when -- people drive. The device, about the size of a garage-door opener, collects data for 30 days before the company decides if a driver is eligible for the pay-as-you-go discount.

Carmen Balber of Consumer Watchdog argues that drivers should not have to give up their rights to privacy to get a good rate on car insurance. She also argued that drivers who are on the road late because they work the late shift are unfairly penalized by these programs.

Progressive, the fourth-largest auto insurer, began working on the concept of usage-based insurance in
1998 and made it broadly available in 2008. It rejects the notion that consumers are getting a bad deal, saying that about a quarter million drivers have signed up.

"Snapshot is best for people who drive less, in safer ways and during safer times of day," Brittany Senary, a Progressive spokeswoman, writes in an an email. "Those are the drivers who are most likely to get a discount." Drivers' rates are guaranteed not to increase as a result of Snapshot, she says, adding that the discount isn't based on location or speed. "The device does not have GPS, so we don't know where the car is," she writes.

More Per-Mile Programs

Like Progressive, Allstate also requires drivers to install a vehicle-monitoring device about the size of a pack of cigarettes to quality for its per-mile policy. Customers get a 10% discount for enrolling in the Drive Wise program, which launched in Illinois in December and could expand to other states this year, and could be eligible for additional discounts, depending on their driving habits. "Is a rewards-based program," spokeswoman Stephanie Sheppard says in an interview. "There are no penalties."

State Farm's Drive Safe and Save program gives customers a 5% discount for enrolling, as well as the possibility of additional discounts depending on the miles they drive. The program is currently offered only in California and Ohio, although the company plans to expand it to Illinois and Texas. In California, drivers can simply report their mileage, but in other states, State Farm only enrolls drivers whose vehicles are equipped with On Star, which can track vehicles' miles. As with Progressive, the savings from this plan can be considerable, but also can vary widely.

Saving the Environment

Not only does usage-based auto insurance save consumers money, it's also good for the environment, according to a 2008 report from the Brookings Institution,

"Just as an all-you-can-eat restaurant encourages more eating, current insurance pricing encourages more driving," the report says. "The extra driving that results from this inefficient system leads to more accidents, more congestion, more carbon emissions, more local pollution, and more dependence on oil. This pricing system is also inequitable because low-mileage drivers subsidize insurance costs for high-mileage drivers, and low-income people drive fewer miles on average."

Permalink | Email this | Comments

]]>Allstateautoauto insuranceauto insurance premiumsauto insurance pricesauto insurance ratesauto insurance savingsauto insurance termsautomobileautoscarcar insurancecar insurance costscar insurance premiumscar techcarsCarSafetyDrivinginsuranceinsurance companiesinsurance industrymileagemileage-based insurancepay as you drivepay as you gopay as you go auto insuranceper mileper-mile insuranceprogressiveprogressive insurancestate farmusage-based billingvehiclevehiclesJonathan BerrMon, 04 Apr 2011 09:00:00 ESTNew York Cabbies Fare Badly as Gas Prices Soarhttp://www.dailyfinance.com/2011/03/31/new-york-cabbies-fare-gas-prices-soar-fuel-surcharge/http://www.dailyfinance.com/2011/03/31/new-york-cabbies-fare-gas-prices-soar-fuel-surcharge/http://www.dailyfinance.com/2011/03/31/new-york-cabbies-fare-gas-prices-soar-fuel-surcharge/#commentsFiled under: , , ,

New York Cabbies Fare Badly as Gas Prices Soar New York City's cab drivers want to charge passengers a small additional fee to cover the rising price of fuel even though regulators have rejected such efforts in the past. Cities such as Chicago, Washington, D.C., Philadelphia, Las Vegas and Miami have either recently allowed cabbies to begin levying fuel surcharges or are considering allowing them.

In New York City, which has the nation's largest taxi fleet at 13,237 vehicles, fuel surcharges have long been a touchy issue. The Taxi and Limousine Commission balked at demands from drivers in 2008 for an additional fee. Some drivers even demonstrated in 2008 in front of the commission's offices. Cabbies are asking for the fee today to offset the rapidly rising cost of gas. New York has not raised its cab fares since 2004, and has not approved a fuel surcharge in recent memory.

"It is hurting a lot," says Javid Tariq, co-founder of the New York Taxi Workers Alliance. "Our incomes are getting squeezed."

Sergio Rodriguez of the New York State Federation of Taxi Drivers agrees, telling DailyFinance: "I think that it's something that should be studied .... We have a board meeting Thursday and I am sure it's going to come up." A typical New York City driver earns between $150 and $200 on a good day, and probably spends about $240 to $280 a week on fuel, he says.

Sponsored Links
A spokesman for the TLC, Allan J. Fromberg, says a fuel surcharge is not under consideration because the industry has not requested it. In previous years, the extra fee was unwarranted because a "certain amount of flexibility" was built into the fare, he said. Similar sentiments were echoed by officials in San Francisco and Boston.

"We have not [considered a surcharge] and there are no immediate plans to do so, at this point," wrote Paul Rose, spokesman for the San Francisco Metropolitan Transit Agency, in an email.

Dedrick Stephens, Cleveland's Licenses and Assessments Commissioner, said in a statement to DailyFinance that the city will continue to monitor how gas prices perform. There is currently no surcharge in the city. Regulators in Nevada. who oversee cabs in Las Vegas, are mulling the idea as are officials in Charlestown, S.C., according to media reports.

Expect Gas Prices to Go Even Higher

Earlier this month, the Energy Information Administration (EIA) projected further increases in the retail price of unleaded gasoline because it did not reflect the recent gains in the price of oil. The EIA expects prices to average $3.56 per gallon in 2011, 77 cents per gallon higher than 2010 and about 40 cents above its earlier estimates. The higher prices are forcing the taxi industry and regulators to strike a balance between protecting drivers from financial hardship and preventing fares from rising so fast that they drive away customers and add to traffic congestion.

"That's why we rely on the drivers to help us make the call," says Jim Ney, who oversees the regulation of about 1,600 taxis for the Philadelphia Parking Authority, which will discuss fuel surcharges at a public meeting next month.

One Phoenix cabbie told TV station KTAR that his fuel costs were up 15% to 20%, and the only way he could make up the difference was to work 14 hour days. Officials from the Arizona Department of Weights and Measures, which regulates taxis in the state, could not be reached for comment.

Drivers in cities where additional levies have been approved have hardly hit the jackpot. Cabbies in Miami were allowed to add an additional $1 to fares starting this week to cover the rising gas costs, according to the Miami-Dade Consumer Services Department. The surcharge was approved because gas prices have remained above $3.50 a gallon for three straight weeks, according to EIA data. Washington Mayor Vincent Gray signed an executive order over the weekend allowing a $1 surcharge until at least July. Chicago officials approved a $1 surcharge on cab fares in January, up from 50 cents.

It's not a lot, but for cabbies trying to make ends meet, every additional dollar helps.

*Story was updated to clarify details about gas surcharges in New York.

Permalink | Email this | Comments

]]>cab farecabschicagofuel surchargegas pricesLas Vegaslibyamiamimideast protestsnyc taxinyc taxi lawsoil pricesphiladelphiataxiTaxi and Limousine Commissionwashington dcJonathan BerrThu, 31 Mar 2011 08:30:00 ESTIs Elizabeth Taylor Memorabilia a Good Investment?http://www.dailyfinance.com/2011/03/29/is-elizabeth-taylor-memorabilia-a-good-investment/http://www.dailyfinance.com/2011/03/29/is-elizabeth-taylor-memorabilia-a-good-investment/http://www.dailyfinance.com/2011/03/29/is-elizabeth-taylor-memorabilia-a-good-investment/#commentsFiled under: , , , ,

Interest in Elizabeth Taylor memorabilia is soaring after the movie star died last week.Interest in Elizabeth Taylor memorabilia has surged since her death last week, sending eBay (EBAY) listings and sales soaring. A portrait of the screen legend by artist Andy Warhol is expected to fetch $30 million when it goes on the auction block in New York on May 12, and her jewelery collection sale could raise as much as $150 million for AIDS research. Prices of some Taylor merchandise has reportedly doubled since her death and her movies also are seeing renewed interest.

It's hardly the first time that death has increased a star's cachet. A similar phenomena was seen after last year's death of her good friend Michael Jackson. But, as an investment, is this stuff a good buy? Prices for Jackson's things, for example, remain strong, but not as robust was they once were.

Sponsored Links
The market for memorabilia can fluctuate more wildly than stocks or bonds. The values depend on the celebrity and the mood of the public. Collectibles related to icons such as Marilyn Monroe tend to hold their value better than others, but even then there are no guarantees. Prices also may fall for a celebrity's merchandise as their fans die off. Most silent-movie merchandise, for example, is no longer worth as much as it was 20 or 30 years ago, except when it's tied to a superstar such as Charlie Chaplin.

But Taylor's merchandise is hitting the market at a prime time for cable television shows about collecting, which could give it a boost. Appraisers say that popular shows, such as Pawn Stars, American Pickers, Storage Wars, Cash and Cari, and -- the granddaddy of them all -- the Antiques Roadshow, may give the public the idea that pop-culture items can be investments, or even lottery jackpots.

Heartbreak Hotel

If many fans buy the same collectibles, though, those values are more likely to drop. Take an example from Storage Wars: Professional buyer Dave Hester recently thought his team had hit a big score when it came across an abandoned storage locker filled with 1977 newspapers reporting the death of Elvis Presley. According to pop-culture expert Gary Sohmers, a regular on the Antiques Roadshow, these papers are worth $5 a piece tops. "People went out and bought newspapers like crazy" after Elvis' s death, he says, adding that Hester has not begun unloading the papers yet.

A 1999 auction at Christie's of Marilyn Monroe's personal propriety set the bar for successful celebrity auctions. For example, a pair of her sunglasses, then estimated at a value of $1,500, sold for more than $27,000. Two pairs of the legend's shoes, estimated at $1,500, sold for $34,500. But it's unclear if Taylor's stuff will similarly beat auction expectations.

Antiques Roadshow pop-culture expert Simeon Lipman tells DailyFinance that he isn't sure if Taylor's merchandise will fetch Monroe prices or whether it will retain its value over time. "Marilyn Monroe -- her legend has been growing for 30, 40, 50 years," he says. "I wouldn't have thought that Taylor's memorabilia would bring that kind of interest, but you never know."

And that's the lesson that beginning collectors often forget. Truly iconic items, such as a bat signed by baseball legend Babe Ruth or lyrics by John Lennon, do hold their value and even can bring their owners a profit at a future sale. But most of the memorabilia out there is a risky investment.

Go High or Low

When the economy went sour, most mid-ranged items worth between about $500 and $4,000 lost some of their value. For instance, an autographed John Wayne picture -- worth $1,500 five years ago -- now fetches about $800 to $1,000 at auction, according to Rudy Franchi, an Antiques Roadshow appraiser.

This has been a serious problem for dealers, he says. "Junk is still selling and high-end pieces are doing better than ever," he writes in an email. "It's the mid-range material that is suffering a price decline. This is rather painful for sellers since this category is the bread and butter of the antiques trade. Dealers make 90% of their sales in this tranche and they are no longer able to use auction sales as reliable cash cows."

Part of the reason for the decline is that baby boomers are cleaning out their closets as they begin to retire, flooding the market with collectibles. Many of the mementos from their youth, such as Easy Rider movie posters, are not terribly expensive because millions of them were printed, says Franchi, who specializes in posters. "Every time you put one up for sale ... you have another five hit the market," he says.

The bottom line for wannabe Taylor collectors? Buy her memorabilia because you're a fan, but don't count on it for financial returns. Anyone hoping to make a quick buck may be disappointed.


Permalink | Email this | Comments

]]>Antiqueantiquesantiques roadshowauctionauction houseauction housesauction-houseAuctionHouseauctionscelebritiescelebritycinemacollectiblescollectingcollectionCollectionseBayEbayAuctionElizabeth Taylorelizabeth taylor collectibleselizabeth taylor deathelizabeth taylor itemselizabeth taylor memorabiliamemorabiliamovie starsmoviesMovieStarsnostalgiaJonathan BerrTue, 29 Mar 2011 06:30:00 ESTGuess Who's Making Money? NPRhttp://www.dailyfinance.com/2011/03/24/guess-whos-making-money-npr/http://www.dailyfinance.com/2011/03/24/guess-whos-making-money-npr/http://www.dailyfinance.com/2011/03/24/guess-whos-making-money-npr/#commentsFiled under: ,

NPR, which faces the threat of losing its government funding this year, actually expects to make more money than it spends this year.For more than two decades, public-radio listeners have grown accustomed to the erudite questioning style of Fresh Air host Terry Gross. What many people don't realize is that the program is profitable, although its unclear how much of a windfall it makes for WHYY, the Philadelphia NPR affiliate that broadcasts the show.

"WHYY covered the production costs of Fresh Air for many years. (The program began in the mid-1970s and became a daily NPR show in 1987)," WHYY spokesman Brian Rossiter writes in an email. "In the past few years, as the program's carriage and underwriting increased, WHYY has seen a return on investment. Due to contractual obligations, I can't discuss exact figures on the program's costs and revenues."

Fresh Air, which airs on more than 500 stations, attracts more than 5 million listeners every week. The show isn't the only public-radio hit that brings in more money than it costs. Morning Edition, All Things Considered, and Car Talk are among the shows that return "a margin to our organization," NPR says in a statement to DailyFinance. Another fan favorite, This American Life (TAL), also has earned small profit, says Daniel Ash, vice president for strategic communications at Chicago Public Media, which produces the show.

Into the Black

As a whole, NPR -- as is common for a nonprofit -- usually runs a deficit. According to audited financial statements, NPR's revenue ran a $8.3 million deficit in the 2010 fiscal year, which ended Sept. 30. Revenues rose to $184.3 million from $148.7 million a year earlier, while expenses jumped to $192.5 last year from $166.6 million in 2009. But after cutting staff and scaling back benefits in 2008, NPR expects to make a "modest margin" this year, according to spokeswoman Dana Davis Rehm.

Of course, nobody's making dividends on these earnings. "Any surplus, which is rare, is reinvested with the program," Ash writes in an email. "For two years, during the recent recession, TAL surplus (net earnings) did cover other operating losses at WBEZ. However, moving forward, there is no expectation that TAL revenues will underwrite any other Chicago Public Media initiative."

Questions about the economics of public radio are taking center stage after last week's vote to defund the Corporation for Public Broadcasting. Such a move, NPR and its allies argue, would cripple public broadcasting by depriving millions of listeners access to news programs at member stations. Some local affiliates would go dark, NPR says.

Critics reject its argument as ludicrous. "Taxpayer dollars are not essential to their operation," Rep. Doug Lamborn (R-CO), who is leading the effort to defund NPR, writes in the Washington Examiner. "This fiscal year, Congress appropriated $430 million for the Corporation for Public Broadcasting, NPR's parent organization. In the next fiscal year, that amount is set to climb by $15 million. At a time when our federal debt is increasing by $54,373 every second, and the government is borrowing more than 40 cents of every dollar it spends, we must cut all nonessential government spending."

Should Taxpayers Support NPR?

Much of the anger at NPR's management, particularly by conservatives, stems from last year's mishandled firing of commentator Juan Williams. NPR's reputation was further damaged after one of its top executives was caught -- in a conservative blogger's "sting" -- saying that the network would be better off without federal funding. The uproar over the tapes, which were later found to be distorted, led to the resignation of Vivian Schiller as NPR's CEO.

Debates over whether NPR has a vendetta against conservatives, though, miss the larger issue of the network's financial strength. NPR says its finances have rebounded. NPR makes most of its revenue from program fees and dues that stations pay to broadcast its programs. Its second-largest source of revenue -- and one of the reasons for its financial success -- is that it allows corporations the chance to reach the its well-heeled audience through sponsorships, which it says has enjoyed "strong growth" over the past decade. NPR doesn't run any traditional commercials.

But although the network bristles at the suggestion, critics -- including Williams -- argue that these acknowledgments are little more than commercials. "Their claim that they don't have any commercials is a pretense," says Williams, now a political analyst at Fox News Channel who has called for NPR to be defunded. "They have all sorts of way to do advertising."

Davis Rehm disputes Williams, saying that the messages are limited and bring in nowhere near the amount of money that it would take to fill the budget gap if federal funding disappears.

Nonprofit Pay

Another subject of contention is the salaries of the top NPR talent, which are nothing to sneeze at -- but nowhere near the same league as the salaries of folks like Rush Limbaugh ($38 million) and Katie Couric ($15 million). Gross, who is also Fresh Air's executive producer, earned total compensation of $245,563 in 2008, according to the station's latest 990 filing with the IRS. Ira Glass, host of This American Life, earned $170,605 in 2008, according to Chicago Public Radio.

Meanwhile, the hosts of Morning Edition, Renee Montagne and Steve Inskeep, received compensation of $405,140 and $356,499, respectively. All Things Considered anchor Robert Siegel earned $358,653, while Weekend Edition Saturday host Scott Simon got $364,465, according to NPR's latest 990 form.

All of NPR's on-air staff is unionized, and the non-union staff typically receives salary increases of about 2.5% annually. However, the staff saw no raises during the last fiscal year due to financial pressures as a result of the economic crisis, NPR says.

Davis Rehm tells DailyFinance that these hosts deserve their pay because they helm programs that are among the most popular in radio. "I don't think we have anything to be apologetic about," she says, adding that the broadcasters could earn higher wages elsewhere.

Salaries: Higher than Average?

In an email interview, Gross argued that pay at public radio should be viewed in context. She received no salary at her first public-radio job while she was in graduate school at the State University of New York at Buffalo. Within a year, she was earning several thousand dollars a year. Gross came to WHYY in 1975 to host Fresh Air, which was then a local show.

"I don't remember exactly what my salary was, but it was in the very low two figures. In fact I think it was $10,000, which was a lot more then than it is now," she writes. "I think the highest-paid reporters and hosts who work on national shows make less, usually far less, than their commercial broadcasting counterparts. It's also important to note that most of the people who work in public radio have very modest salaries."

Michael Harrison, publisher of Talkers magazine, argues that some people at NPR receive higher compensation than they would in the for-profit media. Overall, NPR spends more money on its programs' employees than most commercial radio outfits, he says. Gross, for one, would not be able to match her public radio pay in the private sector.

"Sarah Palin and Charlie Sheen would be more attractive to commercial radio than Terry Gross," Harrison writes in an email. "There are people in commercial radio who make far less than people working at NPR and there are people in commercial radio who are making far more. That being said, my observation is that within the middle range of comparable positions, such as engineers, producers and average anchors and announcer types, the NPR employees are better paid."

NPR's Popularity
Of course, NPR is hardly the only group facing the possibility of losing federal funding. Federal spending of all sorts has been under scrutiny and there's a palpable concern that many programs could get cut.

NPR is under attack from critics: A Defund NPR page has been set up on Facebook which has more than 7,100 fans. But the network has plenty of support, too. Progressives, and some conservatives, are rallying to its defense.

Given its surplus this year, though, it might be harder to convince the cash-strapped government of its need for funding. Could NPR wind up being a victim of its own success?

Permalink | Email this | Comments

]]>corporation of public broadcastingcpbfederal governmentfederal spendingfederal spending cutsgovernment fundingmediaNonProfitnonprofitsnprnpr newspublic broadcastingpublic radioJonathan BerrThu, 24 Mar 2011 07:00:00 ESTAT&T + T-Mobile = Bad Customer Service?http://www.dailyfinance.com/2011/03/22/atandt-t-mobile-bad-customer-service/http://www.dailyfinance.com/2011/03/22/atandt-t-mobile-bad-customer-service/http://www.dailyfinance.com/2011/03/22/atandt-t-mobile-bad-customer-service/#commentsFiled under: , , ,

AT&T's (T) proposed $39 billion acquisition of T-Mobile USA will merge the wireless network rated among the worst in customer satisfaction with one rated among the the best. The result is not likely to be good for consumers.

According to a J.D. Power & Associates survey released in February, T-Mobile, now part of Deutsche Telekom (DTEGY), ranked first in Wireless Customer Care Performance for the second year in a row. AT&T, on the other hand, finished dead last.

A Consumer Reports survey released in December also ranked AT&T dead last among U.S. wireless carriers. T-Mobile, finished nine points ahead of AT&T, though it was behind US Cellular, Sprint-Nextel (S) and Verizon Wireless (VZ).

T-Mobile tied for the lead with Verizon Wireless in the American Customer Satisfaction Index survey released last May. Its score of 73 beat AT&T's 69. The survey did note that AT&T's score had improved 3%, indicating that it was making strides in addressing customers' concerns about its service, particularly among iPhone users.

Cobbled Together Through a Series of Acquisitions

One of the reasons why AT&T's service is below average is that the company has cobbled together its wireless business through a series of huge acquisitions in less than a decade.

In 2004 Cingular Wireless, a joint venture of SBC Communications and Bell South, acquired AT&T Wireless for $41 billion, creating the nation's largest wireless company. In 2005, SBC Communications acquired the original AT&T for $17 billion, and subsequently took the AT&T name. It swallowed Bell South for $67 billion in 2006, gaining control over the Cingular Wireless joint venture, and the Cingular name was dropped for the AT&T brand the following year.

These past mergers have not always gone smoothly for consumers and there is no reason to expect the T-Mobile deal will be any different, experts say.

Expect 'Sand in the Gears'

"You are going to have sand in the gears in the merger process," says Jeff Kagan, an independent telecommunications analyst, who adds that he routinely receives "lots of calls and lots of emails" from angry AT&T customers. "The problem is that they are not focused on the customer. They are not focused on the employee.They are focused on the investor."

Parul P. Desai, policy counsel for Consumers Union, publisher of Consumer Reports, argues that little good that can come from the merger since AT&T customers "routinely complain about hidden charges and other anti-consumer practices."

AT&T, for its part, has argued that the merger will be good for consumers by giving them access to more services. CEO Randall Stephenson (pictured) has been quoted as saying that network quality will improve. These arguments don't appear to be gaining any traction -- and a Justice Department antitrust investigation is likely.

Indeed, the media coverage of the deal has been largely negative. Blogger Om Malik is among those who argued that consumers will wind up as losers in the deal because it will leave only three national players -- AT&T, Verizon and Sprint-Nextel -- and result in higher prices.

Putting a Hard-Earned Reputation to the Test

That point was echoed Tuesday by the New York Times, which pointed out that T-Mobile "has long built its reputation by offering affordable, low-rate cell phone plans, including ones that do not require annual contracts or a minimum voice plan." The U.S. wireless arm of Deutsche Telekom, which acquired T-Mobile, then called VoiceStream Wireless, for $50.7 billion in 2001, worked hard to bolster its reputation for customer service.

"They decided early on that was where they were going to plant a stake in the ground," says Kirk Parsons, senior director of wireless services at J.D. Power and Associates, in an interview.

Sponsored Links
That hard-earned reputation will be put to the test if the merger proceeds. In order to realize the $3 billion in savings the companies hope to achieve, duplicate functions such as call centers will likely be eliminated. Customer satisfaction ratings tend to go down for companies that are acquired and may take several months to rebound, according to Parsons.

One plus for the merger is that AT&T and T-Mobile use the same underlying CDMA GSM technology on their networks, which may make combining them easier. How much of a difference it will make, however, remains to be seen.

"AT&T Mobility has had some problems over the last several years with overwhelming demand for wireless data from customers," writes Kagan in a statement on his website. "T-Mobile is the same technology in the network, but is not upgraded to the same extent as AT&T Mobility. There will have to be quite a bit of money and time spent on upgrading the network, but when that is done I think it will improve the experience to AT&T Mobility customers."


Permalink | Email this | Comments

]]>ATTatt t-mobile mergercell phonescustomer servicemergersphone servicePhoneServicesmartphonet-mobilet-mobile att mergerwirelessJonathan BerrTue, 22 Mar 2011 15:00:00 ESTWhy Charging the Homeless for Shelter Is a Good Ideahttp://www.dailyfinance.com/2011/03/17/why-charging-the-homeless-for-shelter-is-a-good-idea/http://www.dailyfinance.com/2011/03/17/why-charging-the-homeless-for-shelter-is-a-good-idea/http://www.dailyfinance.com/2011/03/17/why-charging-the-homeless-for-shelter-is-a-good-idea/#commentsFiled under:

Los Angeles starts charging for homeless shelterThe operator of a homeless shelter in Los Angeles' Skid Row has hit upon an idea that's both economical and therapeutic: charging residents.

Sure, it's $7 a night ($2 of which is saved for the resident), but in these tough economic times every bit helps. As Sandy Banks of the Los Angeles Times recently pointed out, Union Rescue Mission director Andy Bales wants to change the "three hots and a cot" culture of homeless shelters so that residents don't get too comfortable. Moreover, he had little choice.

Continue reading Why Charging the Homeless for Shelter Is a Good Idea


Permalink | Email this | Comments

]]>Charging for homeless shelterHawaii homelessHawaiiHomelesshomelessHomelessShelterLos Angeles homelessLosAngelesHomelessNew York City homelessJonathan BerrThu, 17 Mar 2011 10:00:00 ESTWhat Will the Networks Show If There's No Football?http://www.dailyfinance.com/2011/03/16/what-will-the-networks-show-if-theres-no-football/http://www.dailyfinance.com/2011/03/16/what-will-the-networks-show-if-theres-no-football/http://www.dailyfinance.com/2011/03/16/what-will-the-networks-show-if-theres-no-football/#commentsFiled under: , , ,

The NFL lockout continues, and Americans are wondering what will become of their favorite professional sport. Meanwhile, the television networks -- which spent billions of dollars to secure broadcasting rights to National Football League games -- are being forced to scramble, pun intended, to fill what could become a gaping hole in their programming schedules. For now, it's easy to see why broadcasters are keeping quiet about their contingency plans.

The NFL is big business for News Corp's (NWS) Fox Sports, Comcast Corp.'s (CMCSA) NBC Sports, Walt Disney Co.'s (DIS) ESPN and CBS Inc.'s (CBS) CBS Sports. The networks would owe the league $5 billion even if no downs of football are played next season, ESPN reported, citing DeMaurice Smith, the head of the NFL Players Association. An NFL season is integral to their business plans.

A TV Ratings Blitz

NFL games often lead the lists of the most-watched TV programs during the regular season. TV viewership also hit record levels during last year's regular season, playoffs and Super Bowl. In fact, the NFL championship game was the most widely viewed U.S. television broadcast ever, breaking the record held since 1983 by the series finale of M*A*S*H. NBC's Sunday Night Football was the the most-watched show on TV during the 2010 Fall Broadcast Season, according to the Nielsen Company.

No TV reality show, scripted drama, situation comedy or other sporting event has the ratings of professional football -- and, according to industry insiders, that means advertisers likely won't pay top-dollar for non-football commercial time, either. The game's appeal to audiences of young men -- and increasingly women -- will be hard for any replacement shows to match. Considering the logistics involved in scheduling such a large block of programming, broadcasters may have little choice but to start planning for an NFL season possibly cut short or canceled outright.

Considering their (Non-Quarterback) Options

The financial stakes could especially high for NBC, because football is an integral part of its Sunday prime time line-up. "The most affected would be NBC," says Bill Carroll, vice president of the Katz Media Group -- who notes strong NFL ratings can boost the ratings of other network shows. "There is a residual impact on CBS," he says, "less on Fox."

Sponsored Links
Sports has taken on added importance for NBC, following the recent completion of the Comcast takeover. The Philadelphia-based cable giant also owns the Versus Network, the Golf Channel and 11 regional sports networks. Chris McCloskey, a spokesman for the NBC Sports Group, declined to comment for this story.

ESPN, which took over the Monday Night Football broadcast in 2006 from its corporate sibling ABC, would not discuss what options it is considering if the football season is shortened or canceled. But according to The Hollywood Reporter, which cites a note from Moody's Investor's Service, ESPN would be the network least affected financially if football games are canceled, "because fans will tune in there to see whatever has taken the place of the NFL, and ESPN wouldn't have to pay big money for game rights." It''s hard to imagine, however, hard-core football fans being interested in ice dancing or bowling, just because its on "The Worldwide Leader In Sports".

"We are optimistic that everything will get resolved," says Bill Hofheimer, an ESPN spokesman, in an email. "We are evaluating a number of alternate programming scenarios to minimize the impact of potential lost games. "

Hofheimer's comments were echoed by Lou D'Ermilio, Fox Sports' senior vice president for communications -- who tells DailyFinance that "we are considering contingencies but we haven't made any firm decisions." D'Ermilio declined to elaborate further. CBS Sports did not respond to a request for comment.

Another Season of Replacement Ball?

The networks are in the same quandary the league faced during the 1987 players' strike, which in turn came five years after another labor dispute caused regular season games to canceled. At the time, the NFL decided its fans would rather watch some football than none at all. But replacement football played for three weeks to nearly empty stadiums.

"Replacement ball also spawned a new list of NFL nicknames -- San Francisco Phoney Niners, New Orleans Saint Elsewheres, Los Angeles Shams, Miami Dol-Finks, Seattle Sea-Scabs, Chicago Spare Bears, and so on," writes Clare Farnsworth in a 2002 story in the Seattle Post-Intellegencer. "No one could believe, or wanted to believe, that the league and owners would actually play games in 1987 with hastily thrown-together groups of former college players -- many plucked from their jobs as cops, bouncers and construction workers."

No Settlement in Sight

TV ratings, not surprisingly, suffered in the wake of that strike. But eventually they recovered -- and the NFL became the proverbial goose that lays the golden egg, bringing in some $9 billion in annual revenue that the owners and the NFL Players Association can't figure out how to divvy up. Talks have broken down and media reports indicate a settlement is not in the immediate future. The players' union is reportedly encouraging its top prospects not to attend this year's draft, according to ESPN. And after the lockout began, the union decided to decertify itself. The players also filed an antitrust lawsuit against the league.

Though the media has reported on the potential economic fallout of an NFL strike, most people probably are not considering the potential cultural impact. Without football to fill up their weekend programming, networks may have to turn to such tried-and-true television stars as Donald Trump of NBC's "The Apprentice." And if that doesn't spur fans to press both sides to reach an agreement, nothing will.


Permalink | Email this | Comments

]]>american footballathleticsespnfootballfoxlabor disputenflnfl lockoutNFL strikesportstelevisiontelevision ratingsJonathan BerrWed, 16 Mar 2011 07:00:00 ESTRestaurants Gear Up for Increased Seafood Demand During Lenthttp://www.dailyfinance.com/2011/03/12/restaurants-gear-up-for-increased-seafood-demand-during-lent/http://www.dailyfinance.com/2011/03/12/restaurants-gear-up-for-increased-seafood-demand-during-lent/http://www.dailyfinance.com/2011/03/12/restaurants-gear-up-for-increased-seafood-demand-during-lent/#commentsFiled under: ,

Lent, the 40-day season of repentance that began on Ash Wednesday and ends with Easter, is a huge deal for the seafood industry -- because Catholics and some other Christian faiths traditionally abstain from eating meat on Fridays during Lent. And restaurants have been gearing up for the increased demand.

John Sackton, editor and publisher of market researcher Seafood.com, estimates that 40% to 50% of some types of seafood are sold for the year during Lent.

"It's significant, but not as significant as it used to be," he says.

A "Valuable Holiday"

Seafood restaurants across the country usually do a brisk business during the period of penitence. For instance, McCormick and Schmicks Seafood restaurant saw a 20% increase in business on Fridays, according to the Pittsburgh Tribune-Review. That's especially true in cities with large Catholic populations, like Pittsburgh . McCormick and Schmicks spokeswoman Tori Harms notes that Lent "is certainly a valuable holiday," and that the chain is running promotions during the season.

Sponsored Links
One big player in the seafood industry is McDonald's Corp. (MCD), which is running television commercials promoting its Filet-o-Fish. The fast food giant is America's largest buyer of fish fillets, according to John Sackton -- purchasing about 50,000 metric tons of seafood every year. That's such a large amount it has raised concerns about potential environmental harm. McDonald's is also working with the World Wildlife Fund, to develop guidelines for companies that supply its fish.

"The guy in charge of buying fish for McDonald's, he was really concerned with being able to buy fish 10 or 20 years from now," said Bob Langert, the company's vice president for corporate social responsibility, in an interview with GreenBiz.com.

And the company's efforts are showing results. The home of the Golden Arches says it has shifted purchases representing more than 18,000 metric tons of fish away from sources that are not sustainable, according to a company web page.

Catering to the Faithful

Though McDonald's is a major player in the seafood industry now, its start was hardly auspicious.

The Filet-O-Fish was invented by a McDonald's operator, Lou Groen in 1962. At that time, Groen was desperate to save his Cincinnati-area restaurant, the chain's first in the region. His customer base was largely Catholic -- and business was suffering especially during Lent. Groen recounted his tribulations in a 2007 Cincinnati Enquirer interview.

Frisch's (the local Big Boy chain) dominated the market, and they had a very good fish sandwich,"

"I was struggling. The crew was my wife, myself and a man named George. I did repairs, swept floors, you name it.

"But that area (where his restaurant was located) was 87% Catholic. On Fridays we only took in about $75 a day. ... All our customers were going to Frisch's.

"So I invented my fish sandwich, developed a special batter, made the tartar sauce and took it to headquarters."

As the article noted, McDonald's chief Roy Kroc wasn't keen on the idea at first -- because he was planning to market his own meatless creation called the Hula burger. Kroc, who is credited with turning McDonald's into an international phenomenon, offered to bet Groen that more customers would buy his sandwich than the Filet-O-Fish, if both were offered on the menu at the same time. Groen accepted and won, selling 350 sandwiches -- and according to the story, Kroc never told him how the Hula Burger sold.

Get info on stocks mentioned in this article:


Permalink | Email this | Comments

]]>christianchristianitydiningfillet-o-fishfishfoodholidayholiday foodholiday foodsholidayslentmcdonaldrestaurantsseafoodJonathan BerrSat, 12 Mar 2011 08:00:00 ESTStink Bugs: A Most Vile Scourge, for Farmers and Homeownershttp://www.dailyfinance.com/2011/03/10/stink-bugs-most-vile-scourge-farmers-homeowners/http://www.dailyfinance.com/2011/03/10/stink-bugs-most-vile-scourge-farmers-homeowners/http://www.dailyfinance.com/2011/03/10/stink-bugs-most-vile-scourge-farmers-homeowners/#commentsFiled under: ,

stink bugIn 1998, Karen Bernhard, a part-time entomologist with the Penn State Cooperative Extension in Lehigh County, Pa., began getting calls from residents who were creeped-out by a foul-smelling, tank-like bug that had decided that the warm confines of a residential home was an ideal place to escape the cold Northeastern winter.

She quickly deduced that it was a species of stink bug, which she figured migrated into the area from another region. Its identity, however, remained a mystery for three more years until Cornell University entomologist E. Richard Hoebke identified the insect as the brown marmorated stink bug, native to Asia.

Since then, stink bugs have morphed from scientific curiosity to a full-on nuisance. The bugs -- which have no natural enemies -- have been wreaking havoc on farmers around the country, decimating fruit and vegetable crops, including corn, soybeans and tomatoes, as well as organic crops without chemical pesticides.

"Serious Pests"

The stink bug gets its name because it emits a vile order through its abdomen as a defense mechanism. People who try to rid themselves of the bugs often need to hold their noses. Squishing them is an especially bad idea.

Penn State's website describes the bug as " a serious pests of fruit, vegetables and farm crops in the Mid-Atlantic region and it is probable that it will become a pest of these commodities in other areas in the United States."

The pests certainly haven't helped the economic recovery. They've reportedly already ruined 40% of some fruit orchards' crops in parts of Pennsylvania, Maryland and West Virginia this year, and experts believe stink bug populations are likely to boom this fall.

From Florida to California

They also may be spreading: Officials in Iowa recently found a dead stink bug in Cedar Rapids, prompting officials to investigate whether a breeding population has been established, according to the Associated Press.

So far, state officials have found only the one stink bug, says Laura Jesse, an extension entomologist at Iowa State University. But, she adds, "We presume from what we have seen out East that we we will have a problem."

Scientists are not sure how the brown marmorated stink bug --- also known as Halyomorpha halys -- got to the U.S., although most figure it was probably via a ship container. When they arrived also is a mystery. The critters have been spotted in 30 states throughout the Northeast, as far south as Florida and even have wound up in California.

Scientists are trying to figure out where they might strike next. "We have a huge list of questions and a very, very short list of answers," Greg Krawczyk, an entomologist with the Penn State University Fruit Research Center in Biglerville, told The Patriot-News of Harrisburg, Pa.

The Scurge of Suburbia

But while the agricultural industry is suffering from these pests, at least one type of business might be benefiting -- exterminators.

Sponsored Links
Over the past few years, stink bugs have increasingly become a scurge of suburbia, as well as of farmland. And many people are turning to exterminators for help, says Ron Harrison, director of technical services for pest-control company Orkin.

"In 2009 and 2010, we were just innundated" with requests for help, he says, adding that he expects the trend to continue this year. Treatments range from the hundreds to the thousands of dollars depending on the size of the property and the amount of the infestation. Like bed bugs, they pose no health risk to humans.

The best time for homeowners to attack the bugs is in the fall, when they're looking for a warm place to hunker down, Harrison says. By summertime, there's "very little value" in trying to eradicate the stink bugs, which are active breeders, because their populations will have soared, he adds.

Pesticides rarely last more than 10 days. The best way to fight the bugs, experts say, is to seal cracks and cervices where they might crawl through. That doesn't always work, though, because the bugs are formidable foes.

Some help may be on the way. Scientists at the University of Delaware say that a parasitic wasp is showing promise as a stink-bug assassin. Others, including a New Jersey man, have invented their own homemade traps. So far, though, a solution has proven elusive.

Permalink | Email this | Comments

]]>agriculturebugsexterminatorsfoodfruithousehold pestsorchardspest controlstink bugsstinkbugsJonathan BerrThu, 10 Mar 2011 09:00:00 ESTGood Riddance: Warner Bros. Finally Cuts Off Charlie Sheenhttp://www.dailyfinance.com/2011/03/07/good-riddance-warner-bros-finally-cuts-off-charlie-sheen/http://www.dailyfinance.com/2011/03/07/good-riddance-warner-bros-finally-cuts-off-charlie-sheen/http://www.dailyfinance.com/2011/03/07/good-riddance-warner-bros-finally-cuts-off-charlie-sheen/#commentsFiled under: , , , ,

Charlie Sheen (right) on Two and a Half MenCharlie Sheen, whose illogical rantings have won him legions of followers on Twitter (and caused millions more to simply wonder), was fired today by the producers of his hit CBS (CBS) TV show Two and a Half Men. This is hardly a shock.

Sheen's behavior has been both odd and frightening, especially to women. Warner Bros., a unit of Time Warner (TWX) finally had enough of Sheen's antics. The producers figured that the show's star -- who was reportedly paid nearly $2 million an episode --- was no longer worth the considerable trouble he created. Still, the move is a financial risk.

Broadcasting & Cable estimates that the studio would lose $80 million if it ends the show right now. It's not clear whether that's going to happen since John Stamos reportedly was in talks to join the cast.. The Hollywood Reporter recently wrote that a permanent shutdown of the sitcom "could jeopardize as much as $250 million in domestic syndication revenue for producer Warner Bros. Television and millions more in lost ad revenue for CBS."

"Dangerously Self-Destructive"

But Two and a Half Men was losing gas anyway. Other CBS sitcoms such as Mike and Molly and Big Bang Theory are flat out funnier. Plus, viewers began to realize that it wasn't clear any longer where Sheen ended and his character Charlie Harper began. As TMZ reported, Warner Bros. told Sheen's lawyers that "Your client has been engaged in dangerously self-destructive conduct and appears to be very ill."

The media now will be counting the days -- make that years -- it will take for Sheen to blow through all his money. Judging from his latest interviews, Sheen doesn't appear to be much of a saver. Also, check out the statement he gave to TMZ, which may be his nuttiest yet:
This is very good news. They continue to be in breach, like so many whales. It is a big day of gladness at the Sober Valley Lodge because now I can take all of their bazillions, never have to look at whatshiscock again and I never have to put on those silly shirts for as long as this warlock exists in the terrestrial dimension.
Let's hope Sheen's family can get him the help he needs.

Permalink | Email this | Comments

]]>big bang theorycbscharlie sheenMike and MollysitcomsyndicationTwo and a Half MentwxWarner Bros.Warner fires Charlie SheenJonathan BerrMon, 07 Mar 2011 18:20:00 ESTIs Cap'n Crunch Easing Quietly Into Retirement?http://www.dailyfinance.com/2011/03/07/capn-crunch-easing-into-retirement/http://www.dailyfinance.com/2011/03/07/capn-crunch-easing-into-retirement/http://www.dailyfinance.com/2011/03/07/capn-crunch-easing-into-retirement/#commentsFiled under: , , , ,

Cap'n Horatio Magellan Crunch, who has sailed the Seven Seas for Quaker Oats since 1963, has fallen into the brand equivalent of the Bermuda Triangle.

The cartoon sailor is nowhere to be found on the Quaker website. Quaker's corporate parent, PepsiCo (PEP), doesn't go out of its way to trumpet its association with the Good Cap'n, either. He doesn't even make an appearance in recipes for yummy treats such as Cap'n Crunch French Toast or Cap'n Crunch Ice Cream Pie.

The last press release I could find about the brand was in 2007 on a not-too-surprising survey that found that 83% percent of kids ages 8 to 13 thought it would be fun to be a pirate. For generations of children, Cap'n Crunch made eating cereal fun. According to nutritionists, this kind of food association is one of the reasons behind America's soaring childhood obesity rates, which have doubled over the past 20 years.

Pressure from Washington

PepsiCo. and other food companies are under pressure from the White House -- especially from First Lady Michelle Obama -- to make their products healthier. Activists have long been irate over the marketing of sweetened cereals such as Cap'n Crunch to children. Last year, PepsiCo vowed to reduce added sugar per serving by 25% and saturated fat by 15% in its products over the next 10 years. This pressure may explain why the Cap'n is less visible than he was in years past. A company spokesperson did not respond to a request for comment.

"Our research shows that PepsiCo is no longer marketing Cap'n Crunch cereal directly to children. In a sense, you could say that they have retired Cap'n Crunch, and that's a good thing," writes Jennifer Harris, director of Marketing Initiatives at the Rudd Center for Food Policy & Obesity at Yale University, in an email. "Unfortunately, children continue to view hundreds of ads per year for high-sugar cereals from General Mills, Kellogg's and Post Foods."

PepsiCo, also the parent company of snack maker Frito-Lay, is a member of the Children's Food and Beverage Advertising Initiative, a voluntary food industry self-regulation program designed to make sure that children under 12 see advertisements for healthy foods. Indeed, the Grocery Manufacturers Association (GMA), the food and beverage industry's main lobbying arm, says on its website that the industry has changed its marketing practices "with more than two-thirds of food and beverage television advertising geared toward kids under 12 used to promote good nutrition, healthy lifestyles and simply making healthy food choices."

No Longer No. 1 Kids' Brand

Cap'n Crunch generated more than $118.6 million in sales last year from supermarkets, drugstores and mass-market retailers, down 6.8% from a year earlier, according to data from Symphony Group/IRI, a Chicago-based market research firm, which excludes sales from Walmart Stores (WMT), club stores and convenience stores. Overall cereal sales were $6.42 billion, down 3.25% versus 2009, the market researcher says. In 2007, PepsiCo called it "the number one kids, presweetened brand in the ready-to-eat cereals category." That's not the case now as private-label brands and competitors such as Cheerios are bigger sellers.

Sponsored Links
"No, [Cap'n Crunch] is not close to the top," says Ryan Stredney, a spokesman for Symphony Group/IRI, in an email. "The whole brand line has under 2% market share of cold cereal."

The cereal sailor is hardly the only underemployed spokesman. Ronald McDonald, too, has been sidelined by McDonald's (MCD) as the fast-food giant tries to present a more sophisticated image to market expensive coffee drinks instead of Happy Meals, Bloomberg News recently reported.

The beloved cereal spokesman may be fading, but PepsiCo still keeps him around. The company includes Cap'n Crunch cereal on its list of brands both on its corporate website and annual report. And his image continues to appear on the cereal boxes. The company also maintains a Cap'n Crunch website, which trumpets that "It's an excellent source of seven essential vitamins and minerals, is low in fat, and contains zero grams of trans fat per serving."

And What About the Sugar?

What the site doesn't discuss is sugar. A single serving of Original Cap'n Crunch has 12 grams of the stuff, which nutritionists say is almost half of the recommended daily intake. It's also less than what's in many other children's cereals. According to Rudd research, the average preschooler sees 642 ads per year on TV, almost all of which are for cereals of questionable nutritional value.

"General Mills has announced that cereal advertised to children would contain 10 grams of sugar or less per serving, with some products already containing 9 grams of sugar. Post Foods is following suit to reduce the amount of sugar in its children's cereals," says Christine Munsell, research associate at Yale's Rudd Center, in an email.

Cap'n Crunch's Crunch Berries is tied for first on Rudd's list of the least nutritional cereals marketed to children and families. Perhaps it's time for the good Cap'n to retire from the cereal navy to avoid walking the plank.


Permalink | Email this | Comments

]]>capn crunchcerealCheerioschildhood obesitychildrens cerealhealth caremichelle obama childhood obesitypost cerealsquaker oatssweetened cerealJonathan BerrMon, 07 Mar 2011 10:00:00 ESTIs Charlie Sheen Insurable? His Career May Depend on Ithttp://www.dailyfinance.com/2011/03/02/charlie-sheen-career-may-depend-on-insurance/http://www.dailyfinance.com/2011/03/02/charlie-sheen-career-may-depend-on-insurance/http://www.dailyfinance.com/2011/03/02/charlie-sheen-career-may-depend-on-insurance/#commentsFiled under: , , ,

Charlie SheenCharlie Sheen, whose bizarre antics have become the stuff of tabloid legend, may find his toughest audience may be in the insurance business, if he wants to work in Hollywood again.

The 45-year-old star of Two and a Half Men wants to restart production on the sitcom, which has been suspended for the season by CBS (CBS) because of his troubling behavior. Sheen has said he wants to do movies including Major League 3, a sequel to his hit 1989 comedy. He even mentioned to a TV interviewer that Sylvester Stallone wanted to do a movie with him. Whether Sheen can resurrect his faltering career may depend on something as mundane as an insurance physical.

Hollywood producers won't shoot a frame of film nor a second of video without insurance policies on their cast members in case they can't do their jobs because of accidental death, illness or injury. The coverage is critical given the huge amount of money that's sunk into a feature film or TV show. Insurance can cost as much as 2% of a production budget, with premiums that range from $35,000 to $250,000. Rates for TV stars are set at the start of each season.

Like other types of insurance, prices for premiums depend on the level of risk involved. Healthy actors are less expensive to insure than those like Sheen, whose lifestyle echoes the depravity of partiers of yesteryear such as Keith Richards and Caligula.

Worth the Trouble?

"Is Charlie Sheen insurable?" asks Dennis Reiff, owner of Reiff & Associates, a New York-based insurance brokerage that has served the entertainment industry for 50 years in an interview. "The answer is, probably yes."

Sponsored Links
Of course, producers will have to decide whether Sheen is worth the trouble despite his obvious talents. James G. Robinson -- CEO of Morgan Creek Productions -- recently told TMZ that he wouldn't stand for Sheen's antics if he gets hired for Major League 3, actually the fourth installment in the series. He speaks from experience having survived Lindsay Lohan's behavior on the movie Georgia Rule. Morgan Creek didn't respond to a request for comment.

Though Sheen's carrying on has raised eyebrows and the occasional call to the police, insurers are most concerned about whether his problems will affect his ability to work, which it usually has not. There were tabloid reports in January that he was partying in Las Vegas with porn stars instead of shooting his sitcom. The actor later went into rehab and has been carrying around drug test results that show he's clean, which he shows at every opportunity to TV interviewers.

Sheen would be asked by the doctor administering the physical exam for insurance what types of drugs -- both legal and illegal -- the actor is taking. For instance, a Sheen policy may include a high deductible or exclude certain types of claims related to illicit drugs, he says.

A Forgiving Place

Actors with a troubled past have at times had to agree to be watched by "babysitters" who are hired by the studios to make sure that the actor stays sober and shows up to work on time. Occasionally, these stars have had to place most of their salaries, except for the union minimums, in an escrow account to guarantee that they'll finish the production.

"That's typically the last option because actors don't like to do that," says Lorrie McNaught, vice president at Aon/Albert G. Ruben Insurance, adding that actors with issues like Sheen's are able to find work in Hollywood all the time. "Almost every artist that we run into has an issue. We run into that all day every day. There are people who have depression, bipolar disease. They have some kind of cancer."

Hollywood, indeed, can be a forgiving place. Robert Downey Jr.'s reputation was in tatters a few years ago because of his repeated arrests for drug abuse, but now that he has gotten sober, he's a big star. The same fate may await Sheen if he can get his act together, which is a big "if" since his latest ex-wife Brooke Mueller took out a restraining order against him and had their twin sons removed from his house.

One prod for Sheen to stay out of trouble may the potential for lower insurance rates, though that might not be much of an incentive these days for the troubled star.


Permalink | Email this | Comments

]]>CBScelebrity insurancecharlie sheenGeorgia RuleHollywoodlindsay lohanmajor league 3sitcomtelevisionTwo and a Half MenJonathan BerrWed, 02 Mar 2011 13:00:00 ESTState Worker Retirements Are Soaring Across the Countryhttp://www.dailyfinance.com/2011/03/02/state-worker-retirements-are-soaring-across-the-country/http://www.dailyfinance.com/2011/03/02/state-worker-retirements-are-soaring-across-the-country/http://www.dailyfinance.com/2011/03/02/state-worker-retirements-are-soaring-across-the-country/#commentsFiled under: , ,

Retired coupleState workers are retiring in droves.

Call it a sign of the troubled fiscal times, when governors are pushing for steep cuts in employee wages and benefits as they seek to restore their states to fiscal health.

Whatever you call it, it amounts to a huge challenge. Many employees of cash-strapped states, such as New Jersey, California and New York, appear headed for the exits -- trying to get out while they still have pensions -- as governors pressure workers and their unions to contribute more toward their health care and retirement.

That's no surprise, considering the Center for Budget and Policy Priorities estimates that 45 states and the District of Columbia face a combined shortfall of $125 billion for fiscal 2012.

Worsening a Brain Drain

Although politics may play a role in some of these departures, they also underscore a demographic reality. According to the Center for State and Local Government Excellence, public sector workers tend to be older and more educated than their counterparts in the private sector. And growth in government employment outpaced private sector employment growth between 1992 and 2008.

The departures now are coming on top of a brain drain of state workers who were axed in budget cuts over the past few years. Another 400,000 government workers could lose their jobs this year. In Wisconsin, Gov. Scott Walker is threatening to lay off hundreds of state workers unless the legislature passes his spending plan, which includes a controversial proposal to strip employees of most of their collective bargaining rights.

In New Jersey, state worker retirements soared by 60% in 2010 as Gov. Chris Christie pressured them to pay more money toward their pension and health care costs. Bloomberg News estimates that the number of retirement applications has reached its highest level in a decade. Christie's battles with the teacher's union also have taken its toll in retirement plans: The number of teacher retirements surged 95% last year, the largest increase of any public sector group, Bloomberg reports.

A Coast-to-Coast Trend

California also saw retirements of its state workers, including teachers and bureaucrats, jump 22.6% to 30,119 in the 2009-2010 fiscal year. That represents the biggest annual gain in retirements since at least 2000, according to the California Pubic Employees' Retirement System (CalPERS), the nation's largest public pension fund. Projections for retirements for the current 2010-2011 fiscal year anticipate 31,800 retirements, according to CalPERS spokesman Bob Burton.

Sponsored Links
Nearly 13,000 New York State workers retired in 2010, up more than 60% from the previous year's 7,449 retirements. The state offered an early-retirement plan for some workers, which boosted the number, according to Eric Sumberg, press secretary for the Office of the New York State Comptroller.

That figure doesn't include New York teacher retirements. Those ranks are expected to swell this year, thanks to a separate early-retirement program for teachers, says John Cardillo, a spokesman for the New York State Teachers' Retirement System. Last year, 5,501 New York teachers retired, slightly lower than in 2009.

According to the Florida Retirement System, 11,639 of its members retired between July 1, 2009, and June 30, 2010. That compares with 10,888 retirements for the year-earlier period, says spokeswoman Lauren Engel.

Early Retirement Incentives?

The Pennsylvania State Employees' Retirement System expects 5,751 members to be added to its annuity payroll in 2011, up from 5,109 in 2010 and 3,806 in 2009. The actual number of retirees "will be highly dependent on whether any changes negotiated as part of the new employee contract provide employees with an incentive to leave earlier or stay longer than they might otherwise have planned," spokeswoman Pamela J. Hile writes in an email.

More than 4,800 Texas state workers retired last year as of August 2010, versus 3,044 for the same period a year earlier. The Employment Retirement System of Texas, which excludes teachers, expect 5,425 retirements this year, says spokeswoman Catherine Terrell.

Finally, in Illinois, officials expect 2,600 retirements in the current fiscal year, according to spokesman Tim Blair. That compares to 2,416 Illinois state worker retirements in the 2010 fiscal year and 2,046 in 2009.

Whether more public workers would leave if they could remains unclear, but the morale of government workers certainly appears to be suffering.

"Morale issues are important to think about," says Elizabeth Kellar, CEO of the Center for State and Local Government Excellence, in an interview. "It's important for the general public to know that we are beating up on the people who take care of us."

Permalink | Email this | Comments

]]>benefitsbrain drainbudgetBureaucratscareercareerscompensationeconomygovernmentGovernment Employeesgovernment employmentgovernment jobsgovernment workershealth carehealth care benefitshealthcarejob marketjobspensionpensionspolicyretirementstatestate governmentstate workersstatesteacherteacher layoffsteacher retirementteachersJonathan BerrWed, 02 Mar 2011 12:00:00 ESTAnd the Oscar for Best Commercial Goes to...http://www.dailyfinance.com/2011/02/27/oscar-academy-award-commercial-ads/http://www.dailyfinance.com/2011/02/27/oscar-academy-award-commercial-ads/http://www.dailyfinance.com/2011/02/27/oscar-academy-award-commercial-ads/#commentsFiled under: , , , ,

Academy Awards 2011Not every viewer of the 83rd Annual Academy Awards broadcast was transfixed by the opening of the envelopes. I, for one, found most of the ceremonies less than riveting. But luckily, much like the Super Bowl, the Oscar broadcast is also becoming as much about the commercials as it is about the big show. And this viewer wound up actually looking forward to those ads.

At least, the spots for Hyundai Motor, JC Penney (JCP), Procter & Gamble (PG) and Best Buy (BBY) didn't have the embarrassing patter between hosts James Franco and Anne Hathaway and the awkward appearance of the legendary actor Kirk Douglas. What was the deal with that opening sequence anyway? And Franco in a Marilyn Monroe outfit? Please.

But advertisers are eager to tap into Oscar's huge audience. Last year's show drew 41.3 million, the highest since 2005. Given the popularity of this year's crop of Best Picture nominees, viewership in 2011 should be strong as well. The advertisers weren't trying too hard, though, because many of the commercials previously aired during the Super Bowl. USA Today reported that 30-second Oscar spots were going for $1.75 million.

Some Commercial Highlights

Hyundai, one of the show's biggest advertisers, has used the voiceover talent of Jeff Bridges since 2007. However, Bridges' voice was replaced in the Oscar ads by Justin Bateman because of Bridges' nomination for Best Actor in True Grit. Academy rules forbid nominees from appearing in ads that air during the show. The South Korean car company dubbed itself as "the exclusive automotive sponsor of the 83rd Academy Awards," which seemed strange considering that there also were commercials from BMW and Acura (HMC). Maybe, it was a title earned for volume: Hyundai aired nine spots. Here's one:



JC Penney put on a full-court press for the show. As MediaPost noted, the 109-year-old department-store chain unveiled a new logo for the show. Penney has been the exclusive retail sponsor for the telecast for the past 10 years. This clip contains all of Penney's Oscar ads:



The spots were fairly pedestrian otherwise. Pop star Jennifer Lopez, now an American Idol judge, shimmied for Procter & Gamble's Venus line of women's razors. "Since [P&G] signed Lopez one month ago, its Facebook membership has grown 25%, says Kevin Hochman, marketing chief for the brand," according to USA Today. You won't wonder why when you see this ad, which was released before the broadcast:



And heavy-metal legend Ozzy Osbourne renewed his Super Bowl ad partnership with teen sensation Justin Bieber for Best Buy. The largest consumer electronics retailer's ad allowed YouTube viewers to pick a new ending for the original ad for the Oscars telecast. Here's are the alternative endings:



So, which of the Oscar ads was the best in show? We'll let you decide: Cast your vote in the comments section below.


Permalink | Email this | Comments

]]>Academy Award broadcastAcademy AwardsAcademy Awards commercialsBest Buy Academy Award adsbest picture oscarHyundaiHyundai Academy Award adsJC Penney Academy Award adsOscar commercialsoscarsProcter and Gamble Academy Award adsJonathan BerrSun, 27 Feb 2011 23:40:00 ESTThis Year's Oscar Nominees Are Hits With the Public, Toohttp://www.dailyfinance.com/2011/02/25/oscar-nominees-box-office-hits/http://www.dailyfinance.com/2011/02/25/oscar-nominees-box-office-hits/http://www.dailyfinance.com/2011/02/25/oscar-nominees-box-office-hits/#commentsFiled under: ,

Oscar statueUsually, the Oscars highlight the chasm between Hollywood's elite and the tastes of average Americans. But not this year.

With the 2011 awards set to be handed out on Sunday, many of the nominees for Best Picture are also popular hits. Toy Story 3, for instance, has grossed more than $1.06 billion and topped the box office last year, according to Box Office Mojo. Other nominees fared well with moviegoers, posting respectable grosses. Even nominees that struggled to find an audience in the U.S. made money because of strong oversees sales (see gallery below).

The Kids are All Right, which starred Annette Benning and Julianne Moore (as lesbian mothers whose children meet the sperm donor who fathered them), earned $29.5 million. Box Office Mojo estimates that the film cost $4 million to make, which is a nice return in any business.

Danny Boyle, who gained fame for Slumdog Millionaire, worked hard to find a U.S. audience for 127 Hours, a nominated drama about a man who finds himself trapped during a mountaineering expedition. It stars James Franco, one of the hosts of the Oscar telecast. The film, which cost about $18 million to produce, has earned $17.5 million domestically but has fared better overseas where it has grossed $25.4 million more. Another art house favorite, Winter's Bone, grossed $7.97 million and cost $2 million to make.



Critics and Audiences Agree

"While there are always films and actors overlooked by the Academy, this year strikes me as being better than most," writes Vogue film critic John Powers in an email. "For Best Picture, 9 of the 10 films were critical and popular hits (Winter's Bone by the standards of small indies about the Ozarks, but still a hit). . . . As I say, this is one of the rare years when critics and paying audiences backed the nominees. Certainly a blockbuster like Inception is a far more interesting movie than, say, The Reader or Revolutionary Road to take a couple of other recent, high prestige examples. Oddly enough, in recent years, the Academy's taste has appeared to have gotten better and a bit edgier -- witness The Hurt Locker winning last year."

Sponsored Links
This is, of course, great news for the Academy of Motion Picture Arts & Sciences, which recently extended its contract with Walt Disney (DIS) to carry the show through 2020. Ratings, which were up 14% in 2010, may be strong again this year because of the popularity of the Best Picture nominees.

The wild card on the broadcast will be Franco and co-host Anne Hathaway, two of Hollywood's brightest young stars stars, who unlike many previous hosts, aren't comedians. However, as Carrie Rickey of the Philadelphia Inquirer notes, noncomedians have often proved to be more successful hosts than professional funny people. It may turn out to be a shrewd bit of casting.

"When the Oscar organizers picked Franco and Hathaway to be the fresh faces of the show, little did they know that 45% of the acting nominees would be 40 and younger," Rickey writes. "Not only are the hosts a draw for younger audiences, but so, conceivably, are nominees like Christian Bale [The Fighter] (37), Natalie Portman [Black Swan] (29), Jennifer Lawrence [Winter's Bone] (20) and Hailee Steinfeld [True Grit]. . . . Will youth attract youth? Maybe not to the broadcast itself, but certainly to Tivo, YouTube and allied downloads."

Something for Everyone

The Oscars remain in this multichannel, multiplatformed media world a mainstay of American popular culture much like the Super Bowl (complete with a heightened focus on the broadcast's advertisements). This year's broadcast has something for everyone, even for viewers who are paid to watch the show.

"Since the Oscars are part of my job, weirdly enough, I look forward to them with the mixture of dread, resignation and excitement that come with any big work assignment," writes New York Times film critic A.O. Scott in an email. "I'm curious about how Franco and Hathaway -- both capable performers but not professional comedians will do, though I think the viewership depends more on the movies than the hosts."

For more Academy Award coverage from AOL, see:


Permalink | Email this | Comments

]]>ABCAcademy Award nomineesAcademy AwardsAnne Hathawayblack swanbox officeHollywoodhurt lockerjames francomovie criticsmoviesOscar hostsoscarstrue gritJonathan BerrFri, 25 Feb 2011 16:00:00 ESTMiddle East Upheavals: Bad for Business, Good for Insurancehttp://www.dailyfinance.com/2011/02/25/political-turmoil-in-the-middle-east-bad-for-business-good-for/http://www.dailyfinance.com/2011/02/25/political-turmoil-in-the-middle-east-bad-for-business-good-for/http://www.dailyfinance.com/2011/02/25/political-turmoil-in-the-middle-east-bad-for-business-good-for/#commentsFiled under: , , ,

Political turmoil in Egypt, Libya and Bahrain are making businesses with investments in those countries nervous -- to the benefit of purveyors of political-risk insurance.Corina Monaghan, an executive with Aon, the world's largest insurance brokerage, spends much of her time these days trying to calm anxious clients worried about the political turmoil in the Middle East. It's not an easy task.

The news is filled with headlines about the fall of dictators such as Egypt's Hosni Mubarak, the rebellion against the 41-year regime of Libyan strongman Moammar Gadhafi and riots in the formerly peaceful kingdom of Bahrain.

Experts are uncertain about what might go wrong next, which is making companies with large investments in the region nervous. Monaghan, a vice president at Aon's political-risk business, is well aware of the pressures her clients are facing.

"They are concerned about how what's happening in their region could affect their bottom lines," she says. "There is a lot of pressure from all sides. . . . The question is: Who is going to be in charge, and how they are going to treat our clients?"

It's Harder to Get Coverage

All the uncertainty may be bad for many businesses, but at least one product has seen a higher demand as a result: political risk insurance.

Sponsored Links
Premiums have doubled in the past month, and that's when a policy is even available. Amid the growing political instability, more clients are being declined for coverage.

And clients who are offered coverage can have as little as two days to decide whether or not to accept it instead of up to 30 days, says Smita Malik, director of commercial insurance at Clements International, which underwrites international schools, nonprofits and nongovernmental organization.

"They have to. . .decide very quickly, " Malik says. "The demand is going up."

Insurance Underwriters Are Nervous, Too

Political-risk insurance has been around for decades and is popular among large multinational firms, such as oil companies, which do business in politically unstable parts of the world. The policies offer protection against adverse government actions such as nationalization, war, civil unrest and terrorism.

Aside from private firms, the Oversees Private Investment Corp., a U.S. government agency that finances companies developing business opportunities in emerging markets, also provides political-risk coverage.

Aon has been increasingly fielding calls from insurance underwriters that are worried about their risk. These companies have started demanding very detailed information about how their clients are protecting themselves from risks, such as their security policies, according to Aon.

"Very rarely does an underwriter come up to me and say `Hey, what's up?'" Monaghan says. But now, she adds, it happens all the time. Until the political turmoil dies down, you can expect this intensified scrutiny -- along with the higher premiums and harder-to-get coverage -- to continue.

Permalink | Email this | Comments

]]>aonbahrainbahrain protestsegyptegypt demonstrationsegypt protestsegyptianegyptian governmentegyptian protestsGadhafiinsurancelibyalibya demonstrationslibya protestslibya unrestlibya violencemidde eastmubarakmubarak regimeopicpolitical riskpolitical risk insurancepoliticsJonathan BerrFri, 25 Feb 2011 12:00:00 ESTCoping With Autism in New Jersey's Budgethttp://www.dailyfinance.com/2011/02/23/coping-with-autism-in-new-jerseys-budget/http://www.dailyfinance.com/2011/02/23/coping-with-autism-in-new-jerseys-budget/http://www.dailyfinance.com/2011/02/23/coping-with-autism-in-new-jerseys-budget/#commentsFiled under: , , ,

New Jersey Gov. Chris Christie has proposed a budget that maintains spending for autism services -- but the reality is that other cuts will likely still affect these services. Last year, New Jersey Gov. Chris Christie pledged himself a supporter of autism services. "You have an advocate for your issues in the governor's office and I am that advocate," he told members of Autism NJ, a nonprofit that provides services for children and adults with autism spectrum disorders in New Jersey.

Christie, a rising star in the Republican party, has kept his word. Autism NJ saw its state funding slashed by $155,000 when the state's Fiscal Year 2011 budget was being debated last year. The original $655,000 contract was set at $500,000 and remains at that level in the governor's fiscal 2012 budget proposal announced yesterday.

"The restoration of the contract in near totality -- in tough fiscal times -- is a more compelling story," writes Nicole Brossoie, a spokeswoman for the New Jersey Department of Human Services, in an email.

New Jersey: A Leader in Autism Services

Autism is a particularly tough issue for Christie. For reasons that are not clear, the state has one of the highest levels of autism in the U.S. The developmental disorder affects about 1 in 110 children, including my 4-year-old, who receives services through our local school district. New Jersey officials have set up such a strong system of autism services that some experts believe it encourages people to move to the state. Democrats in the Legislature, including former Speaker John Roberts, have taken a personal interest in the issue.

New Jersey has been at the forefront of the autism awareness movement for years. A 2001 government study in Brick Township found that the prevalence of autism was much higher than anyone expected, which may have helped increase awareness of the condition.

The Pain on the Road to Fiscal Recovery

Even so, Garden State residents who are dealing with the disorder must face fiscal realities. After all, Christie's $29.4 billion spending plan for fiscal 2012 proposes to cut overall state spending by 2.6%.

He called on state workers to contribute more toward their health care and benefits and preached a message of fiscal tough love. "At a time when New Jersey families remain among the highest-taxed in the nation and the climate for job growth remains tepid, the only responsible way to deal with the reality of depressed revenue levels is through fiscal restraint," he said.

Meanwhile, autism activists say that Christie has followed through on his promise to protect autism programs from cuts. Overall, he has maintained existing autism spending in his proposal: His budget actually increases funding for early-intervention efforts, which are designed to identify and help young children, and also spares the state's Division of Developmental Disabilities from major cuts, according to Statewide Parent Advocacy Network.

"In New Jersey, autism is a big deal," says Deborah Howlett, president of New Jersey Policy Perspective, a Trenton think tank that is often critical of the governor, in an interview. "It's a tough fiscal environment to keep that promise."

More Sacrifices Likely to Come

Of course, Christie's move last year to slash more than $1 billion from education aid did affect services to students with autism and other disabilities.

This year, the governor is proposing to increase aid to districts by an additional $250 million. But that "in no way" makes up for the money that was slashed in the previous spending plan, says Diana Autin, co-founder of Statewide Parent Advocacy Network. She adds that her organization also remains concerned that proposed cuts to Medicaid would make it more difficult for families to get the services that they need to care for their loved ones with autism.

But until states' economies improve, New Jersey -- along with many other states -- will likely continue to have to make tough choices. What happened in New Jersey is happening in states across the county as they try to balance their books under difficult economic conditions, says Peter Bell, executive vice president of Autism Speaks. Many programs are facing "significant" budget cuts, he says.

Note: This story has been updated with new information.

Permalink | Email this | Comments

]]>autismautism spendingchris christieeconomygovernmentgovernment spendinggovernmentspendinghealthhealth carehealthcarenew jerseynew jersey budgetnew jersey governornew jersey state budgetstate budgetstate governmentstate governmentsstatesJonathan BerrWed, 23 Feb 2011 21:00:00 EST'The King's Speech' Sheds Light on Stuttering, but Not Its Costhttp://www.dailyfinance.com/2011/02/20/the-kings-speech-sheds-light-on-stuttering-but-not-its-cost/http://www.dailyfinance.com/2011/02/20/the-kings-speech-sheds-light-on-stuttering-but-not-its-cost/http://www.dailyfinance.com/2011/02/20/the-kings-speech-sheds-light-on-stuttering-but-not-its-cost/#commentsFiled under: , ,

Colin firth - The King's SpeechThe King's Speech, which tells the tale of how King George VI overcame his stammer to deliver a moving speech to his countrymen as they fought the Nazis in World War II, is considered a front-runner to win the Oscar for Best Picture next weekend. For people with speech problems today, however, the battle to get treatment continues.

Getting health insurers to cover the costs of speech therapy can be difficult, which presents a big problem for the 3 million Americans who stutter. The Stuttering Foundation estimates that 5% of all children go through a stuttering phase that lasts for six months or longer, although most are able to recover. About 1% have a longer-term problem that lingers to adulthood like King George VI

Continue reading 'The King's Speech' Sheds Light on Stuttering, but Not Its Cost


Permalink | Email this | Comments

]]>Academy AwardsBest Picturehealth insuranceKing GeorgeOscarstutteringStuttering FoundationThe Kings SpeechJonathan BerrSun, 20 Feb 2011 09:00:00 ESTBaseball Makes a Mighty Pitch in China and Africahttp://www.dailyfinance.com/2011/02/20/baseball-aims-for-the-fences-with-moves-on-china-and-africa/http://www.dailyfinance.com/2011/02/20/baseball-aims-for-the-fences-with-moves-on-china-and-africa/http://www.dailyfinance.com/2011/02/20/baseball-aims-for-the-fences-with-moves-on-china-and-africa/#commentsFiled under: , ,

Phillies PitcherBaseball may be America's game, but it's eager to expand in international markets. Recently, it has tried to recruit fans in China and Africa, but results have been mixed.

Major League Baseball is having a particularly hard time in China. As The Economist recently noted, the late Chairman Mao reportedly considered the game a symbol of the "decadent West" and encouraged the Chinese people to play basketball. This goes a long way toward explaining the National Basketballs Association's continued popularity in the People's Republic. Meanwhile, baseball has tried mightily to make inroads in the country for years, but continues to struggle.

"Despite a big promotional budget, MLB has not made much of an impression. It has brought branded clothing to Chinese stores, but not balls or bats," The Economist says. "Fields are rare. MLB is trying, belatedly, to rectify this, funding a development centre at a school in Wuxi that has access to a field created by expatriates."

Remember Harry Kingman?

Taiwan, which China considers a renegade province, has a league of its own, and the 12U Youth Baseball World Championship is scheduled to be held in Taipei in July. However, across the Taiwan Strait, the world's most populous country is still a baseball wasteland. In fact, China has only produced one Major Leaguer: Harry Kingman, a child of American missionaries, played for the New York Yankees between July 1, 1914 and August 20, 1914.

The minor leagues are even worse. According to Sean Forman, president of Sports Reference, no Chinese-born players have ever suited up for a minor league team.

Still, baseball isn't giving up on China. In 2007, MLB launched a grassroots program called Play Ball! at 120 elementary schools across China. At the same time, former players and coaches -- including Hall of Famer Cal Ripkin Jr. and Milwaukee Brewers slugger Prince Fielder -- have conducted clinics in China. And in terms of TV programming, MLB signed a new broadcasting deal with three partners in China that expanded the audience for regular-season games, the All-Star Game and the World Series.

Out of Africa

MLB's prospects in Africa are more promising. While baseball is played in many African countries, it's probably most popular in South Africa, where Texas Rangers Pitcher C.J. Wilson recently conducted clinics. More than 250,000 players participate in adult and youth leagues, according to the South African Baseball Union.

MLB scouts have already found some promising talent there, signing eight South Africans and one Nigerian, according to an MLB spokeswoman. Anthony Philips of South Africa briefly played shortstop for the AAA affiliate of the Seattle Mariners, and Dylan "Sharky" Unsworth, a promising young pitcher from South Africa, also plays in the Mariners system. In 2008, Gift Ngoepe, a South African playing for the Pittsburgh Pirates, became the first black African to sign a Major League contract. The infielder is still in the minor leagues.

Sponsored Links
The Africa Baseball and Softball Association continues to promote the sport, which must vie for attention against more popular pastimes such as soccer and cricket. Baseball games are televised in Africa over ESPN.

However, while baseball doesn't always receive TV coverage, it is growing in popularity. "In countries such as Nigeria, South Africa, Cameroon, Tunisia, Uganda, Senegal and even Cote d'Ivoire, to name a few, national championships are held regularly and are covered by media," Isidore Tameu, an ASBA spokesman, tells DailyFinance. "Unfortunately, media coverage does not always fulfill the hopes and expectations of the federations. Efforts are currently being implemented by ABSA for finding effective ways to increase the visibility of baseball in the media."

South Africa's temperate weather make it especially suitable for baseball because it can be played all year round.
The quality of the baseball, though, still needs to improve. South Africa got crushed in the 2009 World Baseball Classic, conceding 22 runs.

In an interview, Paul Archey, baseball's senior vice president of International Business Operations, says South Africa is at a place in its development where Australia was 15 years ago. Australian baseball has improved mightily in recent years and now has a professional league. In fact, the land down under has produced an impressive 25 U.S. major leaguers.

Eyes on the Ball

More foreign-born players are flocking to the minor leagues thanks to the Creating Opportunities for Minor League Professionals, Entertainers and Teams Act, which freed baseball teams from having to compete with other employers for H2b visas for foreign workers. In 2007, the law was signed into law by President George W. Bush, a former owner of the Texas Rangers.

As baseball grows internationally, Africa is becoming a promising resource for major league teams. As for China, baseball's future is a bit more questionable, but MLB will likely keep its eye on the ball there as well. After all, 1 billion people make for a mighty deep bench.

Permalink | Email this | Comments

]]>africabaseballbusiness of sportschinamajor league baseballpittsburgh piratespittsburgh pirates - mlbSeattle Marinerssouth africataiwanJonathan BerrSun, 20 Feb 2011 09:00:00 ESTDespite Public Perception, Government Workers Aren't Living Largehttp://www.dailyfinance.com/2011/02/18/Wisconsin-protests-government-workers-arent-livin/http://www.dailyfinance.com/2011/02/18/Wisconsin-protests-government-workers-arent-livin/http://www.dailyfinance.com/2011/02/18/Wisconsin-protests-government-workers-arent-livin/#commentsFiled under: ,

Government workers are in an uproar over Wisconsin Governor Scott Walker's (R) plan to sharply curtail their collective bargaining rights, along with similar efforts in Ohio and Indiana. They were already fuming at New Jersey Governor Chris Christie's plan to make them pay more for health care and pension costs. Much of their anger appears justified.

Though the media often reports on eye-popping, six-figure salaries of government officials, such as school superintendents and other political appointees, most public-sector workers don't do nearly as well. Typically, they earn about 6% less than workers in the private sector.

Not Exactly "High Off the Hog"

The average salary of a member of the American Federation of State County and Municipal Employees (AFSCME), the largest union representing government workers, is about $45,000, according to Kerry Korpi, the union's director of research and collective bargaining. Data from the Bureau of Labor Statistics shows the median salary of a U.S. worker at $43,640. The average AFSCME member collects a pension of about $19,000 a year.

'It's not like they are living high off the hog," Korpi says.

Some members of the Communications Workers of America in Trenton, which represents New Jersey workers, are working second or third jobs to make ends meet, according to Thomas Palermo, president of CWA Local 1039. "We have had some people that have had financial difficulty," he says, adding that his members earn about $50,000 annually, which underscores the high cost of living in the state.

In response, Gov. Christie has argued that benefits to state workers are "wildly out of proportion with the private sector," Bloomberg News says, adding that he tried to eliminate automatic cost-of-living increases last year and stopped paying into the pension plan.

Layoffs and Furloughs Abound

Though government workers traded in lower salaries for better benefits and job security, these jobs are far less secure than they used to be. A 2010 survey by the National Association of State Budget Officials found that many states were slashing their payrolls through layoffs and furloughs. That trend has continued this year.

"In fiscal 2011, 24 states reported that they would be laying off state personnel," the survey says. "Of these 24 states, 22 had also reduced the number of full-time positions in 2010."

For instance, Georgia Governor Nathan Deal (R) has proposed eliminating 2,000 state jobs, most of which are already vacant. Raises are being delayed for state workers in Nebraska and Idaho. Lawmakers in Texas, facing a $27 billion deficit, are considering eliminating more than 9,000 jobs.

Job losses at state and local governments are expected to continue through the end of this year and the beginning of next year or even until 2014 when a rebound in tax receipts may lead to more hiring, according to Gus Faucher, an economist at Moody's Analytics. The firm expects state tax revenues to grow 6.6% in fiscal 2011 and 7.2% in fiscal 2012. States will continue to struggle, however, because federal stimulus funds have dried up.

Ditching Pension Plans for 401(k)s

The costs of benefits for state workers are rising, just like they are for their counterparts in the private sector. States are eager to ditch pension plans for 401(k) plans, though Korpi -- as other union officials -- argues that pensions give workers "more bang for their buck" given the recent volatility in the stock market. "Nearly half of all baby boomers are estimated to outlive their savings," Korpi says, adding that workers in pension plans don't have to worry about swings in the stock market since losses are amortized over 30 years.

Sponsored Links
Workers in 18 states have filed suit to block plans to pare pension costs by increasing employee contributions, raising the retirement age or curbing cost-of-living increases, according to Bloomberg News. Pensions have not, however, reached the crisis point that some have claimed. The Pew Center on the States pegs the differences between what states owe and what they have set aside for retiree health benefits at $1 trillion. When local governments are included, that figure rises to as much as $3 trillion.

As the Center for Budget and Policy Priorities argues, the figure "calculates liabilities using what is known as the 'riskless rate,' because the pension obligations themselves are guaranteed and virtually riskless to the recipients. In contrast, standard analyses based on accepted state and local accounting rules, which calculate liabilities using the historical return on plans' assets, put the unfunded liability at about a quarter of that amount, a more manageable (although still troubling) $700 billion."

Faucher agrees that in the long run, the states need to address the problem, but it doesn't have to happen immediately. Nor can it be ignored for long, however. Struggling states such as California, Illinois and New York are behind in payments to vendors and beneficiaries. "As cash constraints have intensified, states have been forced to hoard cash for payroll and debt service payments to bondholders at the expense of local liquidity," according to Moody's.

Health Care Costs Remain a Sticking Point

According to the National Conference of State Legislatures (NCSL), states provide health care to about 7 million public employees and their dependents. Many state workers, however, pay next to nothing for their health care. In 2010, the average U.S. worker paid $4,000 for family coverage, an increase of 14% over 2009, according to the Kaiser Family Foundation. That's well above the $2,256 the NCSL estimated in 2009 that state workers pay in a survey.

A 2009 NCSL survey found that the average monthly premium for individuals on state plans was $474, of which the employee paid $38. Workers bore $188 of the $1,062 monthly coverage for families. It's no surprise that states are increasingly asking retirees to shoulder more of the costs for their health care.

And the costs are rising at an astronomical rate. Taxpayers in Wisconsin are expected to pay $1 billion toward premiums for state workers, up from $423 million in 2001. Walker, though has more options than taking away rights from workers such as restructuring the state debt, which would save him $165 million. The Badger State needs to plug a deficit of about $136 million.

It Takes Two

Making government workers pay additional money toward their health care seems to be a reasonable request by state governments. It's wrong, however, for state workers to be blamed for the irresponsible fiscal decisions of elected officials. It takes two parties to agree to a union contract.

Unfortunately for workers, the public is against them. A recent Gallup poll shows that support for unions remained at a historic low. The tough times for states and their employees are far from over.

Permalink | Email this | Comments

]]>Chris Cristieeconomygovernor Chris Christiegovernor Scott Walkernew jerseypublic sectorpublic sector jobsState PensionstateswisconsinJonathan BerrFri, 18 Feb 2011 14:30:00 EST