May 5, 2023

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Talk about year-over-year growth. Just four months into the 2023 season, Jon Rahm’s PGA Tour prize money [[link removed]] hit $14.5 million — eclipsing Scottie Scheffler’s previous record of $14 million set last season with time to spare. 💰

Chicago Bears Request Demolition, Tax Assessment Appeal For Arlington Park [[link removed]]

Chicago Bears

The Chicago Bears are moving closer to building a $5 billion campus anchored by a $2.2 billion domed stadium.

After closing on the purchase [[link removed]] of Arlington Park for a reported [[link removed]] $197.2 million in February, the team is bracing for a battle with the local government on taxes.

The Bears have formally requested to begin the demolition of Arlington International Racecourse with the village of Arlington Heights.

A team official confirmed [[link removed]] the team had submitted the necessary paperwork, but emphasized that it doesn’t guarantee the organization will build a stadium on the 326-acre property.

The Bears’ lease at Soldier Field runs through 2033, but they can exit the agreement starting in 2026 by paying the city of Chicago $90 million, with the amount decreasing every year until the lease ends.

Taxing Issue

The team could threaten to stay downtown longer if it feels financially slighted.

Earlier this year, Cook County assessor Fritz Kaegi reset [[link removed]] the value of Arlington Park’s land at $197 million — almost six times the $33.5 million value it held when it was a horse track. The new assessment would cost [[link removed]] the Bears an additional $15 million per year in property taxes.

“Paying property taxes is part of being a member of the community,” read a statement from the Bears. “[But] Arlington Park would not be redeveloped by anyone at such an excessive property tax rate.”

The team has filed an appeal with the Cook County Board of Review, which will hear the case in June.

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🎙️ They Said What?

“We wanted to just create, for lack of a better example, a Disneyland for racing. … You can go to a different destination every day.”

— Jeremy Walls, senior vice president and chief revenue officer with the Miami Dolphins, Hard Rock Stadium, and Miami Grand Prix on the experience of attending the Formula 1 race in South Florida. For more on the Miami Grand Prix, check out the latest episode of Front Office Sports Today.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

La Liga Hits $5.4B In Revenue, Tops Pre-Pandemic Levels [[link removed]]

Stephen R. Sylvanie-USA TODAY Sports

La Liga’s revenues have inched past pre-pandemic levels after recent seasons of financial struggles.

Spain’s top soccer clubs are expected to post a combined profit at the end of this season, according to Bloomberg [[link removed]].

Net income for teams in La Liga Santander and La Liga SmartBank reached $30 million for the 2022-23 season following a loss of $154 million last season for Spain’s top two competitions.

Total revenue for La Liga this season is expected to reach $5.39 billion, just surpassing its $5.37 billion total from 2018-19 — the last season before COVID-19 forced fan capacity restrictions inside stadiums.

As capacity restrictions eased last season, total revenue for La Liga surged 23% to $5.33 billion in 2021-22. La Liga ranks second among all European soccer competitions in total revenue, behind the reported $9.2 billion from the English Premier League and EFL Championship.

The pandemic’s impact spurred [[link removed]] La Liga to sell an 8.2% equity stake to British private equity firm CVC Capital Partners in 2021. The firm paid $2.3 billion in exchange for the ownership stake, and La Liga clubs used CVC’s funds to invest in players and improve facilities.

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“WSC Sports has been a key driver in our ability to put out more content in an efficient manner.” – Matt Carstens, Executive Producer and General Manager of the ACC Digital Network in a recent interview [[link removed]] with Front Office Sports.

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Miami GP Invests in ‘Disneyland for Racing’ [[link removed]]

Formula 1

The Formula 1 Miami Grand Prix uses Hard Rock Stadium to support its race, but executives considered running the track across the Miami Dolphins’ home field.

“We definitely looked at it,” said Jeremy Walls, senior vice president and chief revenue officer of the Dolphins, Hard Rock Stadium, and the Miami Grand Prix. “But what’s complicated is we have the Miami Open tennis tournament that finished up a month ago.”

With the F1 race scheduled to take place around the stadium through 2031, the Dolphins invested in some long-term infrastructure.

“We built a $100 million-plus paddock club,” Walls said on the Front Office Sports Today podcast [[link removed]]. “We purchased 12 bridges. Nine of them are permanent on our campus.” The group also made substantial investments in the track itself in response to feedback from drivers, teams, F1, and its governing body, the FIA.

The Grand Prix, which takes place Sunday, will test whether the race can show enduring popularity as the novelty from the first year wears off.

Walls said his team was focused on making the race weekend an experience with much more than just a race. There will be more than 100 restaurants, 40 bars, and numerous shops and hospitality areas throughout the campus.

“We wanted to just create, for lack of a better example, a Disneyland for racing and for adults,” he said. “You can go to a different destination every day.”

Peloton Touts Subscriber Growth Amid Heavy Losses [[link removed]]

Peloton

Peloton CEO Barry McCarthy described its fiscal quarter as the best he has seen with the company, but investors were left cold.

The connected fitness giant booked $748.9 million in the fiscal third quarter ending March 31, missing analyst expectations and causing the company’s stock to tumble 13.5% on Thursday.

Peloton lost an unexpectedly large $275.9 million in the quarter as it continues to struggle with supply chain issues and slackening demand following the end of pandemic closures.

In May, McCarthy said that the company “will relaunch our brand” to target fitness enthusiasts of all kinds, as opposed to the brand’s original core proposition based on at-home cycling. He also said the company would relaunch the Peloton app with a tiered membership structure, calling those campaigns “two of our most important growth initiatives.”

McCarthy touted the company’s 5% year-over-year uptick in connected fitness subscribers, but acknowledged that growth in that category tends to dip in Peloton’s fiscal fourth quarter — and he expects the same to happen this year.

The company has sought to broaden its reach through renting out its equipment and selling refurbished bikes.

Thus far, Peloton has been unable to reverse its tailspin since its acme in late 2020. The company’s stock has fallen 95.3% since and now sits below where it was prior to the pandemic.

Conversation Starters ESPN has announced [[link removed]] plans for a new “30 for 30” documentary on NFL Hall of Famer Reggie White called “The Minister of Defense.” The project includes never-before-seen footage from an interview two months before his 2004 death. This year, general admission Campus Pass ticket holders at the Miami Grand Prix will be able to access the top levels of Hard Rock Stadium — providing a bird’s-eye view [[link removed]] of the F1 Team Village. And for another lofty perspective, take a look [[link removed]] at TNT’s drone inside TD Garden during Game 2 of the Celtics-76ers’ conference semifinal series.

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Thursday’s Answer

33% of respondents plan to bet on the Kentucky Derby this year.

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