July 11, 2023

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Good afternoon. Eric Fisher [[link removed]] here. MLB’s All-Star Game, one of baseball’s greatest annual celebrations, is tonight — even if, for this longtime fan, the midseason classic hasn’t been quite the same since players stopped wearing their own uniforms. But the stars are bigger than ever, and one of the biggest, Shohei Ohtani, is set for another moment in the spotlight with his forthcoming free agency.

Meanwhile, foreign investment in pro teams continues to accelerate, both in the U.S. and abroad.

Ohtani’s Next Contract Will Bring Historic Sums, Big Risks [[link removed]]

Jayne Kamin-Oncea-USA TODAY Sports

Shohei Ohtani is poised to shatter MLB free-agency records this winter — but will it be a wise business decision to sign him?

As the Los Angeles Angels’ two-way phenom gets set to start Tuesday’s All-Star Game in Seattle — and is again the talk of the sport amid another historic [[link removed]] season — a contract in excess of $500 million appears all but certain.

That number would easily set league records for both total size and average annual value — but Ohtani could ultimately command $600 million.

“He’s going to get a lot of money, and he deserves it. There’s no other player like him,” said Atlanta Braves catcher Sean Murphy.

Ohtani drives a wide range of fan engagement and revenue metrics for the Angels and MLB. His jersey ranks [[link removed]] second in MLBShop.com sales this season, and he has built an endorsement portfolio valued [[link removed]] at an annual $35 million. But he’s getting tired [[link removed]] of losing on an Angels team that hasn’t reached the postseason since 2014 and is continually beset with ownership [[link removed]] and stadium [[link removed]] issues.

Contract Caveats

Signing Ohtani to such a gigantic contract will almost certainly raise unprecedented questions about MLB payroll management. A deal would likely commit the signing club to a top-tier payroll for nearly a decade at a time when the link between player spending and on-field success is being inverted [[link removed]] like never before — and MLB pitcher injuries remain problematic [[link removed]].

The Angels also could potentially trade [[link removed]] Ohtani at the Aug. 1 deadline in order to gain a better return, instead of losing him in free agency.

NBA: No Full Team Ownership By Sovereign Wealth Funds Anytime Soon [[link removed]]

Darren Yamashita-USA TODAY Sports

As the influence of foreign money in U.S. sports continues to draw increased interest and controversy, the NBA will continue to restrict majority ownership of its basketball teams.

NBA commissioner Adam Silver said [[link removed]] “there’s no contemplation right now” about allowing sovereign wealth funds take full control of franchises. Silver didn’t rule out the idea entirely, though: “I don’t want to say what could ever happen.”

The Qatar Investment Authority recently acquired [[link removed]] a 5% stake for a reported [[link removed]] $200 million in Monumental Sports & Entertainment — the owners of the Washington Wizards, the NHL’s Capitals, and the WNBA’s Mystics.

The commissioner acknowledged skyrocketing team valuations make it difficult for a single individual to make a large investment in a team.

“In part, the reason why we’ve opened up investment opportunities to private equity firms, sovereign wealth funds, is because we’re running out of individuals, frankly, who are in a position to write those kinds of checks,” he said.

Money Talks

Qatar’s MSE investment represented the first sovereign wealth fund to buy into an American sports league via those NBA, NHL, and WNBA teams. It wouldn’t be shocking to see another foreign entity follow suit with other teams in those leagues.

The next domino — a sovereign wealth fund buying a stake in an MLB or NFL team — has yet to fall.

SPONSORED BY SAILGP

Welcome Aboard the Fan-Owned Team

Ever considered owning a professional sports team? How about running the team from anywhere in the world? Or choosing your team’s nickname, uniform, or even the team itself?

This could become a reality. SailGP [[link removed]] is opening the door to blockchain-powered fan ownership. They’re the first global sports league to amend their rules of participation to allow for a community-owned and managed team.

The Fan-Owned Team [[link removed]] aims to join SailGP during Season 4 or 5 and is being enabled by a multi-year partnership with NEAR.

Own part of a pro team in a global league and help shape the future of sport. Learn more [[link removed]].

Another U.S. Firm Wants To Raise $220M To Invest In Soccer Teams [[link removed]]

Sevilla FC

An American firm — one of the biggest multi-club owners in soccer — is looking to raise a significant chunk of change to expand its global ambitions.

Miami-based private equity firm 777 Partners is setting its sights on raising $220 million to fund its soccer portfolio, according [[link removed]] to Bloomberg.

Currently, 777 Partners owns or has stakes in:

La Liga club Sevilla Italian club Genoa FC (currently in Serie B) Belgian club Standard de Liège French club Red Star FC Brazilian side CR Vasco da Gama Australian club Melbourne Victory FC

The firm has also previously explored [[link removed]] investing in Premier League club Everton. The structure of the potential fundraising is still to be determined.

The multi-club model is increasingly popular as the world’s savviest business people realize the opportunities available in professional sports.

City Football Group is perhaps the most prominent example, with EPL champions Manchester City leading a cohort of nearly a dozen clubs. Chelsea owner Todd Boehly is experimenting with the model via his company BlueCo, which purchased Ligue 1 club RC Strasbourg Alsace.

Eagle Football Holdings — led by former FuboTV executive chairman John Textor — owns four clubs including the EPL’s Crystal Palace and Ligue 1’s Olympique Lyonnais. RedBird Capital Partners controls AC Milan and French club Toulouse.

Conversation Starters The Blue Jays’ Vladimir Guerrero Jr. won Monday night’s Home Run Derby — and its $1 million prize — joining [[link removed]] his father, Hall of Famer Vladimir Guerrero, as the first father-son duo to win the competition. As part of his prize, Guerrero will also take home [[link removed]] a three-pound, Seattle-inspired Home Run Derby chain. The USWNT has arrived at the Women’s World Cup to compete for a third-straight title. Check out [[link removed]] their five-star New Zealand marina hotel.

SPONSORED BY ISOS CAPITAL MANAGEMENT

The Influence of CTV on Sports Franchise Valuation

Live sports programming has always dominated primetime ratings on linear television, but streaming content has become extremely popular [[link removed]] 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 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 [[link removed]].

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.

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

Editor's Picks Senator Calls for PGA Tour to ‘Avoid the Sellout’ of LIV Golf Deal [[link removed]]by A.J. Perez [[link removed]]

The hearing revealed some details of PGA Tour-LIV Golf partnership.

Microsoft Beats FTC to Move Forward With Activision Blizzard Takeover [[link removed]]by Andrew Cohen [[link removed]]

A judge denied the FTC’’s injunction request to block Microsoft’s deal.

‘WembyMania’ Pulls 2nd Most-Watched Summer League Telecast [[link removed]]by Michael McCarthy [[link removed]]

The rise of Wembanyama comes at the right time for the NBA.

Win an NFL Sunday Ticket Subscription

The NFL season is just around the corner, and we’re helping one lucky winner take their fandom to the next level.

We’re giving away a one-year subscription to NFL Sunday Ticket on YouTube TV, giving you access to every out-of-market NFL game so you don’t miss out on any of the action!

To enter, simply complete one or all of the actions on this page [[link removed]]. Contest ends on July 21, 2023. See Official Rules [[link removed]] for details.

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