June 13, 2023

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Good morning, newsletter co-author David Rumsey [[link removed]] here. Congrats to the Nuggets on their first NBA championship — and yet another win for the city of Denver. Today, we’re taking a look at what the victory means for Stan Kroenke’s legacy as an owner of multiple championship teams, and the news that Netflix is close to streaming live sports for the first time.

Nuggets Championship Gives Owner Stan Kroenke Another Title [[link removed]]

Ron Chenoy-USA TODAY Sports

The Denver Nuggets capped off a dominating playoff run on Monday night, winning their first NBA Finals with a 4-1 series victory over the Miami Heat.

For Nuggets owner Stan Kroenke, it’s the fifth [[link removed]] championship won by a team he owns since the beginning of 2022.

The Colorado Avalanche won last year’s Stanley Cup after the Los Angeles Rams claimed victory over the Cincinnati Bengals in Super Bowl LVI. Kroenke’s Colorado Mammoth won the 2022 National Lacrosse League Cup and one of his esports teams, the Los Angeles Guerrillas, took home a title in the Call of Duty League last year as well.

The NBA title also marks a seminal moment for Nuggets center Nikola Jokić, who won back-to-back MVP awards in 2021 and 2022, and now adds a championship ring and Finals MVP to his long list of accolades since entering the league in 2014.

Whether the 28-year-old Serbian has received proper recognition for his play in recent years was a hot topic among media pundits throughout the playoffs.

The Nuggets win ends a Cinderella run of sorts for the Heat, who became the first eighth-seed and play-in tournament team to advance to the Finals.

The NBA moves into the offseason set to welcome another international superstar in Victor Wembanyama, the French teenager that has already energized [[link removed]] the San Antonio Spurs fan base after the franchise won the NBA Draft lottery.

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🎙️ They Said What?

“It’s not about the people upstairs. It’s about the players that have come through that organization.”

— Former NFL superstar Calvin Johnson on why he’s improving his relationship with the Detroit Lions since his retirement. Hear more from the star receiver known as Megatron as he discusses his time in the NFL and business ventures on Front Office Sports Today.

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Netflix Eyes Move Into Live Sports Content [[link removed]]

Allan Henry-USA TODAY Sports

One of the biggest players in streaming video could finally be shifting toward live sports content.

Netflix — which has forged a prominent position in documentary-style sports content with series such as “Drive to Survive” and “Full Swing” but has not acquired live sports rights — is nearing a deal to live stream a celebrity golf tournament this fall with both golfers and Formula 1 drivers, according to the Wall Street Journal [[link removed]].

The event would be held in Las Vegas and feature celebrities from both docuseries. Talks regarding the project are described as preliminary. But even this more controlled effort would mark a strategic shift for Netflix, which ended 2023’s first quarter with 232.5 million subscribers and holds sizable sway over the entire business of streaming.

The tournament is seen in part as a trial balloon for the company without incurring the heavy cost and multiyear commitment of top-tier live sports rights. Prior Netflix bidding efforts for live rights to sports properties such as F1 ultimately lost to more aggressive competitors.

“We’re not anti-sports, we’re pro-profit,” said Ted Sarandos, Netflix’s co-CEO, at an investor conference late last year.

The tournament also marks a further opportunity for Netflix to build an advertising business that remains in its infancy, and represents another piece of fresh content for the streamer while the Writers Guild of America remains on strike from the Alliance of Motion Picture and Television Producers.

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CTV's Impact on Sports Franchise Valuation

Live sports programming has always dominated primetime ratings [[link removed]] on linear television, but streaming content has become extremely popular with younger generations of sports fans, particularly among millennials and Gen Z viewers.

The surge in demand for streaming TV and short-form content has disrupted the traditional TV media rights model and significantly boosted [[link removed]] the valuation of sports franchises. With streaming television’s influence on ever-expanding media rights, franchises across all sports are being purchased at a premium due to their promising growth potential.

Leagues, franchises, and sports that can be innovative and agile enough to stay aligned with the shifting mediums of engagement will have the advantage for capturing the next generations of valuable fans.

Learn how [[link removed]] your company can gain this advantage for connecting with younger sports fans everywhere they’re consuming sports media on connected TV.

NFL’s Jaguars Could Play At Home of Daytona 500 [[link removed]]

Reinhold Matay-USA TODAY Sports

The Jacksonville Jaguars’ planned stadium renovation could temporarily move the team’s home games to one of motorsports’ most famous venues.

The Jags are set to meet [[link removed]] soon with Daytona International Speedway officials about potentially playing there.

The NFL team’s proposed overhaul [[link removed]] of TIAA Bank Stadium — an effort dubbed “the Stadium of the Future” and projected to cost more than $2 billion after related development — hasn’t clarified where the team will play during a construction period that could last between two and four years.

Initial candidates for a temporary venue include Orlando’s Camping World Stadium and Ben Hill Griffin Stadium in Gainesville — the Florida Gators’ home better known as “The Swamp.”

Now, the site of the Daytona 500 is joining the list. The 101,500-seat venue’s existing schedule and layout for racing each present challenges [[link removed]], but both sides remain intrigued with the possibility.

“If the stars align where we could host one game or multiple games, we would be very proud,” said Frank Kelleher, DIS president, to the Daytona Beach News-Journal.

Orlando Stadium Push

Camping World Stadium’s bid to land the Jaguars could receive a boost if Florida Citrus Sports lands $800 million in public funds for facility renovations.

The nonprofit organization that stages several college football games and other events at the stadium has made a new pitch [[link removed]] for tourism tax funds to complete venue upgrades started in 2014.

The facility also currently hosts the Orlando Guardians of the revamped but struggling [[link removed]] XFL.

XFL Owners Optimistic Despite Losses, Declining Viewership [[link removed]]

Raymond Carlin III-USA TODAY Sports

Despite huge financial losses and layoffs after its first season in a revamped format, XFL co-owners Dwayne “The Rock” Johnson and Dany Garcia remain bullish on the spring football league’s future.

Forbes reports [[link removed]] the XFL lost $60 million in 2023 but expects to rake in $100 million in revenue next year — but in May, the league cut [[link removed]] several full-time positions in what it calls a transition to seasonal employment.

The XFL’s optimism stems from capital commitments through Year 4, including ESPN’s $20 million annual rights payment and sponsorship deals with Progressive and Under Armour.

“We’re extremely well-capitalized for the long-term,” said Garcia.

“This is not just an endeavor that’s going to fill up a portfolio and one day we flip it and we’re out,” Johnson added. “This is legacy. This is the long game.”

This season’s XFL championship game drew 1.43 million viewers on ABC after ratings steadily declined [[link removed]] throughout the regular season. The league is battling [[link removed]] for spring football supremacy with the USFL, which will wrap up its second season under Fox’s ownership on July 1.

The rival leagues are resorting to different strategies. With teams in eight different markets, the XFL is looking to capitalize on local fan bases, while the eight-team USFL — which counts NBC as another media partner alongside Fox — is playing this season entirely in hub cities Detroit, Memphis, Canton and Birmingham after playing every game in Alabama last year.

Conversation Starters Formula 1’s F1 Arcade project — which opened [[link removed]] its first F1 Arcade in London at the end of last year — has raised $37.7 million with plans to open more than 30 global locations by 2027. The first U.S. venue will open in Boston in March 2024. The Philadelphia 76ers recently released renderings [[link removed]] of their proposed $1.3 billion arena development, 76 Place at Market East. It’s set to open by 2031. The RBC Canadian Open featured a robotic range picker. See it in action [[link removed]].

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As sponsorship investments continue to soar into the billions worldwide, it’s vital for brands to understand and enhance their ROI.

Together with Nielsen, you’ll explore evolving trends [[link removed]] in sports partnerships, discuss how to calculate true sponsorship ROI, and emphasize the role sports play in a brand’s total marketing approach.

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Editor's Picks Messi’s Miami Real Estate Boom Is Expected to Outsize LeBron’s [[link removed]]by Andrew Cohen [[link removed]]

Realtor Angel Nicolas expects Messi's impact on Miami real estate to surpass LeBron.

FTC Makes Another Move to Block Microsoft’s Activision Blizzard Takeover [[link removed]]by Andrew Cohen [[link removed]]

Microsoft's $69B takeover faces scrutiny in the U.S and U.K.

U.S. Open Club President Embraces Spotlight From Bombshell Merger [[link removed]]by David Rumsey [[link removed]]

The U.S. Open begins Thursday at the Los Angeles Country Club.

NCAA Athlete Advisory Committees Send Bizarre Letters to Congress [[link removed]]by Amanda Christovich [[link removed]]

The letters allegedly used language similar to NCAA talking points.

Question Of The Day

Do you subscribe to Hulu?

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Monday’s Answer

40% of respondents think the PGA x LIV merger is good for the future of golf.

Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by David Rumsey [[link removed]], Eric Fisher [[link removed]], Andrew Cohen [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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