May 11, 2023

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More and more people are hitting the links. A new study found that roughly one in seven [[link removed]] Americans played golf in 2022 — resulting in a direct economic impact of $101.7 billion. In six years, golf’s overall participation in the U.S. went from 32 million to 41.1 million.

Proposed Orlando Ballpark Could Be Option for Tampa Bay Rays [[link removed]]

Orlando Dreamers

A proposed ballpark in Orlando could host a new MLB team, but it might try to lure an existing one instead.

Pat Williams, a co-founder of the Orlando Magic, is pitching [[link removed]] a $1.7 billion stadium as a potential landing spot for the Tampa Bay Rays if they can’t strike a deal to stay in St. Petersburg.

His vision, whether for a new MLB team or the Rays, includes a 45,000-seat stadium with retail shops, restaurants, office space, three hotel towers, and a convention center. Williams’ proposal has the development situated on 35 acres of land owned by Orange County.

The site is “6 miles from Disney, 6 miles from Universal. We’re very bullish on these 80 million tourists that will come through here this year,” Williams told the Tampa Bay Business Journal. “And by the time we might start playing, say in 2028, we’re probably going to be at 100 million tourists.”

Williams speculated that a team in Orlando could draw 3 million fans per season, including 2 million tourists. That would place them near the top of the league: The San Diego Padres drew the fifth-most fans in MLB last year with just under 3 million over 81 home games.

Meanwhile, the Rays continue to negotiate [[link removed]] with St. Petersburg after the city picked the team’s proposed ballpark design earlier this year. The two sides still need to come to terms on a $1.2 billion funding plan.

The Rays haven’t committed to staying in the city without a full agreement.

PODCAST

🎙️ They Said What?

“I think there’s a real bromance going on between [Roger] Goodell and [Jeff] Bezos. The NFL tends to pick out a network media partner as a favorite … and right now the favorite media partner is definitely Prime Video.”

— Michael McCarthy, Front Office Sports senior writer, on the NFL’s growing partnership with Amazon. Check out the latest episode of Front Office Sports Today to hear more on the NFL, including the league’s first Black Friday game, its international growth, and how it’s turning the annual schedule release into another must-see event for fans.

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

Disney Cable Revenue Drops As ESPN+ Gains Subscribers [[link removed]]

Christopher Hanewinckel-USA TODAY Sports

The Walt Disney Company saw a 13% revenue increase in its second quarter totaling $21.79 billion, the company announced on Wednesday.

Its direct-to-consumer business also cut [[link removed]] some of its losses, but revenue for linear networks — including ESPN’s platforms — dropped 7% to $6.6 billion.

Domestic cable revenue dropped 4% to $5.6 billion due to higher production costs for the College Football Playoff and NFL games, as well as increased NBA media payouts and higher TV production costs.

Operating losses at ESPN+ and Disney+ decreased partially because of a growth in subscribers at ESPN+, as well as increased pricing. ESPN+ gained 400,000 subscribers during the quarter for a total of 48.2 million. Disney, however, lost [[link removed]] 4 million subscribers at its Disney+ streaming service.

“From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers while establishing a more efficient, coordinated, and streamlined approach to our operations,” Disney CEO Bob Iger said.

ESPN Layoffs

Despite the marginal improvements, the picture at Disney is far from rosy.

The company has triggered multiple rounds of layoffs, many of which have affected ESPN. In doing so, Iger hoped to save $5.5 billion.

The first round [[link removed]] at the sports network took place in April, where dozens of employees lost their jobs. Another round is rumored to take place this summer.

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‘FIFA’ Game Scores One Last Time For Electronic Arts [[link removed]]

EA Sports FIFA

The “FIFA” video game franchise had one more gift for Electronic Arts before ending its iconic relationship with the publisher.

In its preliminary financial results for the fourth quarter and fiscal year ended March 31, 2023, EA reported that “EA Sports FIFA 23” had surpassed the lifetime sales of “FIFA 22” in just six months, making it the most successful launch in franchise history. “FIFA” franchise Q4 bookings — or adjusted revenue — were up 31% year-over-year.

In October, a franchise-record 10.3 million people played [[link removed]] the game in its first week, leading to a better quarter than expected — though not one without setbacks.

EA posted $1.87 billion in Q4 net revenue, a slight increase from the $1.83 billion it reported a year earlier. Net bookings for the quarter rose to $1.95 billion — an 11% increase year-over-year and better than the $1.73 billion expected by financial analysts, according to Bloomberg [[link removed]].

However, added expenses led to a $12 million net loss for the quarter — a stark contrast from a year earlier, when net income was $225 million.

While the company didn’t disclose where those added expenses came from, they could be related to FIFA successor “EA Sports FC,” which has been gathering licensing deals from soccer entities individually.

Notably, in the last few months, EA has extended its rights deals with MLS [[link removed]] and the Premier League [[link removed]], which reportedly signed a six-year deal with the publisher for $600 million.

Treecorp Partners Acquires Brazilian Club for $260M [[link removed]]

Mark J. Rebilas-USA TODAY Sports

A Brazilian soccer club will receive major debt relief from a Sao Paulo-based private equity firm.

Treecorp Partners has agreed to acquire 90% of Brasileiro Série A club Coritiba in a deal valued at $260 million.

About $54 million of Treecorp’s payment will go toward paying off the club’s debts, according [[link removed]] to SportsPro. Another $100 million will be used to upgrade Coritiba’s Couto Pereira Stadium, while $20 million will be spent on renovating the club’s training facility.

Treecorp has also allocated $90 million to support day-to-day team operations.

Coritiba was founded in 1909, making it the oldest soccer club in the state of Paraná. The team currently ranks 19th of 20 teams in Brazil’s top-tier league and won its only Série A championship in 1985.

Money is being pumped into Brazil’s top existing league as it faces potential competition from Liga Forte Futebol, a breakaway project [[link removed]] backed by U.S. investors that has reportedly garnered support from some Serie A and Serie B clubs. The league would be controlled by clubs instead of Brazil’s national federation.

Another Brazilian Takeover

Treecorp’s acquisition comes just a few days after City Football Group completed its takeover [[link removed]] of Brazilian club Esporte Clube Bahia.

Bahia is the 13th soccer club owned by CFG, which paid a reported $200 million for 90% of the club. Bahia is CFG’s second-largest investment after its majority stake in Manchester City.

Conversation Starters Formula 1 is bringing its “F1 Arcade” concept to America for the first time. Set to open in Boston in March 2024 — with 20 more U.S. locations planned — the arcade will feature 60 motion simulators, premium food and drink, and special competitions and prizes. Check it out [[link removed]]. Texas Tech’s Gabe Oladipo broke records [[link removed]] as an All-American thrower on the school’s track team — then decided to play football. Now, he has a training camp invite with the Pittsburgh Steelers. Watch Orlando’s Amway center convert [[link removed]] from a concert venue to a Magic game to a Solar Bears game — back-to-back-to-back.

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Editor's Picks NFL Finance Committee Meets as Commanders Sale Progresses [[link removed]]by A.J. Perez [[link removed]]Members of the NFL finance committee meet on sale of the Commanders. Bob Huggins Loses $1M In Salary After Using Slur [[link removed]]by Amanda Christovich [[link removed]]The $1 million salary reduction is one of the largest financial penalties in college sports. Investment App Commonwealth Hits Big With Mage’s Kentucky Derby Win [[link removed]]by Andrew Cohen [[link removed]]About 400 Commonwealth users had ownership shares in Mage. Question Of The Day

Have you or anyone in your family ever served in the military?

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Wednesday’s Answer

54% of respondents have used a golf simulator and 11% haven’t yet but want to.

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