July 13, 2023

Read in Browser [[link removed]]

POWERED BY

As the summer moves forward, it’s all about the money. The NFL is sitting pretty as new figures show it continues to rake in the cash, while next week’s Open Championship has boosted its purse but is staying realistic.

Meanwhile, a U.S. soccer league is considering promotion and relegation, and Disney rethinks an international sports property.

— David [[link removed]]

NFL Nearing $25B Revenue Goal And Isn’t Slowing Down [[link removed]]

Kirby Lee-USA TODAY Sports

The NFL is getting closer to its long-stated goal of $25 billion in annual revenue.

With Amazon’s new $1.2 billion media rights deal for “Thursday Night Football” taking effect last season, the league brought in nearly $12 billion in national revenue, according to Forbes — a 7% increase over last year’s [[link removed]] $11.1 billion .

With teams’ local earnings added in, the NFL likely closed in on $20 billion in total revenue in 2022.

Distributing revenue evenly among the league’s 32 teams, every club received $372 million from the NFL’s national pot last year. The majority of that payment — $249 million — comes from media rights deals totaling more than $10 billion annually.

And the total pot will only continue to grow. This season, YouTube is taking over the rights to “NFL Sunday Ticket” — paying $2 billion annually compared to DirecTV’s $1.5 billion yearly fee.

Despite the huge media rights fee the NFL sees each year, the league reportedly has the option to opt out [[link removed]] of each deal after seven years. Should the league choose to do so, it would likely see an even further increase in revenue.

The current media deals could also be back-loaded so that annual payments eventually increase well beyond the average annual value. In that case, even if the league doesn’t opt out, it could still significantly increase its earnings.

PODCAST

🎙️ They Said What?

“We’ve done something historic working alongside the [women’s national team] to make sure that both groups — men and women — are paid equally … We get to push that forward, and hopefully more and more teams, countries, and federations do that going forward.”

— Soccer star Tim Ream on promoting equal pay for male and female athletes internationally. To hear more from Ream on his time with the USMNT, the Premier League and more, check out the latest episode of Front Office Sports Today.

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

Open Championship Still Trails In Golf’s Prize Pool Arms Race [[link removed]]

The R&A/Open Championship

The Open Championship purse is getting a substantial increase over last year, but still ranks last among golf’s four major championships.

Next week’s tournament — which starts July 20 at Royal Liverpool in England — will pay out $16.5 million, including $3 million to the winner. That prize pool lags behind [[link removed]] the U.S. Open ($20 million), Masters ($18 million), and PGA Championship ($17.5 million).

Before the birth of LIV Golf, the major championships and the Players Championship were the highest purses in golf each year. This season, only the U.S. Open matched the $20 million purse offered at the PGA Tour’s elevated events and LIV Golf tournaments, while the Players offered $25 million.

Despite the increased prize money throughout golf, the majors have still attracted the best fields and drawn the most eyeballs.

The governing bodies that run each of those four events — the USGA, R&A, PGA of America, and Augusta National — also have the most control of the professional game. They hold four of the seven spots that determine who receives Official World Golf Ranking points.

Deep Pockets

Golf’s landscape will continue to change into 2024 and beyond as the PGA Tour attempts to finalize its controversial deal with Saudi Arabia’s Public Investment Fund. The PIF could invest [[link removed]] more than $1 billion into the Tour through the alliance.

SPONSORED BY CHEVROLET

Chevy Silverado

[[link removed]]

The Chevy Silverado [[link removed]] has what it takes to do it all. Among its powerful selection of engines is the standard TurboMax™, which offers 430 lb.-ft. of torque and combines impressive power with uncompromising durability.

Available features like the Multi-Flex Tailgate, the 13.4-inch diagonal touch-screen, and up to 14 camera views* provide ultimate comfort and convenience. Options like the lineup of factory-lifted trucks, the available Z71 Off-Road package, and the ZR2 Bison Edition offer the extreme capability you need to make easy work out of the most difficult terrain.

Any truck can help you make a living. This one helps you build a life.

Explore the Chevy Silverado [[link removed]].

Promotion, Relegation Could Come To U.S., But It’s Complicated [[link removed]]

Nate Billings, The Oklahoman

A system of team promotion and relegation — critical to how many global leagues operate, particularly in soccer — could finally be headed to the U.S.

The United Soccer League is reportedly set [[link removed]] to vote next month on a season format in which teams would move between the USL Championship and League One depending on the final standings. The two leagues are the respective second and third divisions of the American soccer pyramid below MLS.

If approved, the move would be a first in major U.S. sports, one designed to boost interest and visibility for the USL — which has grown [[link removed]] steadily but still faces challenges in a crowded sports market.

The vote isn’t slated to implement the new system straight away, but rather certify sufficient owner interest to proceed.

Cultural Obstacles

While promotion and relegation remains a fixture in European soccer — even to damaging financial effect [[link removed]] — massive obstacles remain before any such system could take broader hold in the U.S.

Most U.S. pro stadium development and projects involve at least some element of public money or infrastructure aid, contributions often joined by legal covenants mandating the teams in question remain in their respective cities and leagues.

MLS commissioner Don Garber has been lukewarm at best about promotion and relegation for that league, saying [[link removed]] earlier this year, “I don’t see how that works today, but I can’t look far enough in the future to say never.”

Disney Rethinks India Business Amid Revenue Slump, Losing IPL Rights [[link removed]]

Andy Marlin-USA TODAY Sports

Disney’s media business in India has gone from cricket to crickets, so to speak — bringing potentially big changes in the corporate outlook of the ESPN parent.

The company is reportedly [[link removed]] looking at “strategic options” for its Star India television and streaming business — which four years ago was a key part of entertainment assets acquired from Fox in a $71.3 billion deal and seen as a crucial tool in Disney’s pivot to streaming.

But after the loss of crucial Indian Premier League cricket streaming rights last year, Star India’s fortunes have dramatically fallen. Its Hotstar streaming service — which integrated with Disney+ and dramatically boosted the overall subscriber count of that platform — dropped from 61.3 million subscribers in October 2022 to 52.9 million as of April 2023.

More losses are expected when Disney next reports quarterly earnings next month.

In its last quarter, Hotstar generated only 59 cents in revenue per subscriber for Disney, down 20% from December 2022 and just 8% of the comparable $7.14 average for domestic Disney+ subscribers.

Talks remain at an early stage, and it’s still unclear whether Disney will pursue a sale or merely recapitalize Star India.

Disney is still in the midst [[link removed]] of shedding 7,000 jobs — about 3% of its global workforce — in a bid to reduce $5.5 billion in costs. The most recent effects included another round of cuts [[link removed]] at ESPN.

Meanwhile, Disney CEO Bob Iger on Wednesday completed a two-year contract extension keeping him in place through 2026.

Conversation Starters The Walt Disney Co. announced [[link removed]] that CEO Bob Iger has signed a contract extension through 2026. One of the Savannah Bananas’ rules for ‘Banana Ball’ says that if a fan catches a foul ball, it’s an out. Last night, someone caught one [[link removed]] to end the game. Chris Eubanks played three years of tennis at Georgia Tech before turning pro and even took a side gig as an analyst to keep going. This week at Wimbledon, he reached [[link removed]] his first Grand Slam quarterfinal and won $439,000 — about 1/4 of his entire career earnings. Lionel Messi’s $60 million car collection [[link removed]] includes a $36 million Ferrari believed to be the most expensive car ever auctioned — and he outbid rival Cristiano Ronaldo to get it.

FRONT OFFICE SPORTS LEARNING

Professional Education at the Speed of Culture

Brush up on your skills and supercharge your career.

Try one of our interactive courses on Front Office Sports Learning [[link removed]], designed to help professionals stay on top of today’s ever-changing sports landscape.

Manage lessons at your own pace and gain a deeper understanding from top brands and experts in various subject matters. Each course consists of a series of video lesson modules, followed by a brief quiz. Upon completion of each course, you’ll earn a verified digital badge to share on your social platforms.

From modern ticketing solutions [[link removed]] and the rise of cryptocurrencies [[link removed]] to the new world of NIL [[link removed]] and the metaverse [[link removed]], FOS Learning courses explore it all.

Find the right course for you.

Question Of The Day

Have you watched a boxing match in the last year?

Yes [[link removed]] No [[link removed]]

Wednesday’s Answer

13% of respondents bet on 1-3 sporting events a year and 32% bet on more than 4.

DISCLAIMER

*Safety or driver assistance features are no substitute for the driver’s responsibility to operate the vehicle in a safe manner. Read the vehicle Owner’s Manual for important feature limitations and information. Some camera views require available accessory camera and installation. Not compatible with all trailers. See your dealer for details.

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]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

If this email was forwarded to you, you can subscribe here [[link removed]].

Update your preferences [link removed] / Unsubscribe [link removed]

Copyright © 2023 Front Office Sports. All rights reserved.

80 Pine Street Suite 3202 New York, NY 10005