June 28, 2023

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Good afternoon. Eric Fisher [[link removed]] here. The highly anticipated Fanatics-DraftKings battle royale for PointsBet’s U.S. operations ended quickly and decisively, as the Michael Rubin-led Fanatics is now set to complete the acquisition and gain a much bigger foothold in American sports betting.

Meanwhile, it’s another day and another Chicago suburb pitching the Bears, while German soccer giant Bayern Munich ends a Qatari deal.

Aurora Throws ‘Proverbial Hat In The Ring’ For Bears [[link removed]]

Dennis Wierzbicki-USA TODAY Sports

Add Aurora, Illinois, to the ever-expanding list of Chicagoland municipalities courting the Chicago Bears.

The self-described “City of Lights” and fictional setting of the “Wayne’s World” skits and movies formally made its pitch to lure the Bears, with city leaders sending [[link removed]] a “letter of interest” to the NFL team.

“Welcoming a historic organization such as the Chicago Bears would enhance our bold vision for Aurora and will provide … a new home to begin the next phase of your storied history,” wrote Aurora mayor Richard Irvin.

The Aurora entry — also described by local officials as “throwing [the city’s] proverbial hat in the ring” — arrives amid a “stalemate” [[link removed]] for the Bears in Arlington Heights over a tax dispute and joins rival stadium bids from Naperville [[link removed]], Waukegan [[link removed]], and the city of Chicago [[link removed]].

But the Aurora bid also arrives with complications. Located roughly 45 miles from downtown Chicago, Aurora is about as remote an option as Waukegan. No NFL stadium would be further from its home market downtown, beating the roughly 40 miles [[link removed]] from the 49ers’ Levi’s Stadium to downtown San Francisco.

Aurora officials said the Bears “responded quickly and positively” upon receiving the Irvin letter.

The initial proposal at Arlington Heights involved a domed stadium and entertainment district capable of hosting major events such as the Super Bowl and Final Four — and carried a projected cost of $5 billion. That vision will represent the core of wherever the Bears decide to build their new home.

Fanatics Eyes Major Betting Market Entry With PointsBet Win [[link removed]]

Kyle Terada-USA TODAY Sports

Fanatics is poised to gain a major boost for its betting operations with the pending completion of its PointsBet U.S. acquisition.

The sports merchandising giant prevailed [[link removed]] late Tuesday in a battle with DraftKings for control of the U.S. operations of the Australian sportsbook. Fanatics raised its prior $150 million bid to $225 million, earning the unanimous recommendation of PointsBet’s board ahead of a shareholder vote set for Friday.

Prior to Fanatics’ initial bid [[link removed]] for PointsBet’s U.S operations, the company was only operational in wide beta in Tennessee and Ohio, with further plans to expand to Maryland and Massachusetts.

PointsBet holds licenses in 14 states, including key betting locales such as New York, New Jersey, Pennsylvania, Illinois, and Michigan. Several of those states wouldn’t have been accessible to Fanatics without an acquisition.

As a result, Fanatics’ purchase gives the company a far greater scale on which to challenge current market leaders FanDuel and DraftKings.

The Michael Rubin-led Fanatics will still face a significant challenge in combining that expanded betting market access with its existing database of more than 95 million customers. PointsBet typically ranks as a minor competitor in many of its existing states, and its $19 million handle [[link removed]] in New York for May 2023 was only 3% of the $561.4 million reported by state market champion FanDuel.

The PointsBet U.S. acquisition also brings the burden of a four-year, $250 million advertising deal that PointsBet holds with NBC and will be part of the purchase.

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Bayern Munich Lets $100M Qatar Airways Deal End [[link removed]]

Geoff Burke-USA TODAY Sports

As financial investment from the Middle East continues to pour into American sports, a major European team is opting against the idea.

German soccer giant Bayern Munich is severing ties with Qatar Airways, which reportedly paid the club more than $109 million over the past five years to display its logo on players’ sleeves.

Bayern and the airline — owned by Qatar’s government — said it was a mutual decision not to renew the contract, which expires Friday. A joint statement [[link removed]] touted the success both sides have had working together.

Supporters of the German club had long been opposed to the deal with Qatar. One fan club member said [[link removed]] there would have been “continued protests,” like displaying banners during Bayern games calling out the team for sportswashing.

The move comes shortly after the Qatar Investment Authority struck a deal [[link removed]] to purchase a roughly 5% stake in Monumental Sports & Entertainment — owner of the Washington Capitals, Wizards, and Mystics — becoming the first sovereign wealth fund to invest in major U.S. professional sports teams.

Qatar’s investment portfolio includes majority ownership of French powerhouse Paris Saint-Germain, which counts Qatar Airways as its primary shirt sponsor.

An interesting aside in the Bayern situation: In 2009, Qatar acquired a 17% stake in Volkswagen — the German carmaker is a minority owner of Bayern through a 9% share in the club held by VW subsidiary Audi.

A new sleeve sponsor will be a top priority for Bayern, which brought in $739 million in revenue during the 2021-22 season, according [[link removed]] to Forbes.

Conversation Starters Where do you think the Chicago Bears’ next stadium should be? Vote [[link removed]] in our poll. Game 3 of the Men’s College World Series drew 3.59 million viewers — ESPN’s most-watched [[link removed]] CWS game ever and the second-largest baseball audience of the year after the U.S.-Japan World Baseball Classic final. Take a tour [[link removed]] of NBA Hall of Famer Ray Allen’s $24 million Florida property, located right on the beach in Coral Gables.

FRONT OFFICE SPORTS TODAY

FOS Today Podcast with Featured Guest Eli Manning

FOS Today breaks down the biggest stories across sports and business, commentary on cultural trends in the space, and interviews with influential athletes and industry-leading executives.

In a new episode, Front Office Sports senior writer Owen Poindexter sits down with former NFL quarterback Eli Manning to talk about how he continues to work with the New York Giants after retirement, his rivalry with brother Peyton Manning, and a behind-the-scenes look at the third season of the “Eli Manning Show.”

With new episodes released daily, Monday through Friday, you won’t want to miss out. Listen now [[link removed]].

If you or someone you know is an athlete, celebrity, or business leader, reach out [[link removed]] to be featured on an upcoming episode.

Editor's Picks Notre Dame Wants to Triple Its Football Media Rights Fees [[link removed]]by Michael McCarthy [[link removed]] and Amanda Christovich [[link removed]]

Notre Dame is looking triple its football media rights fees. But will the Fighting Irish have to join a power conference to accomplish it?

Tennessee State University to Become First HBCU With Ice Hockey Team [[link removed]]by Andrew Cohen [[link removed]]

TSU is partnering with the Nashville Predators, NHL, and NHLPA.

Latest Filing In EA College Football Lawsuit May Delay Game Release [[link removed]]by Amanda Christovich [[link removed]]

Multiple factors could go into the game's release date.

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