July 14, 2023

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The week ends with lots of uncertainty in the sports business.

CAA is nearing an industry-rocking equity deal during a turbulent time for agencies in general. Division reigns at “the summer camp for billionaires” about sovereign investment in sports. The IOC hasn’t determined whether its no-invite to Russia and Belarus will apply to individual athletes.

And virtual reality, whose hype to date has far outpaced its actual reality, gets fresh support [[link removed]].

— Eric [[link removed]]

MLS Appears Ready For Sovereign Investment While NFL Waits [[link removed]]

Syndication: The Columbus Dispatch

Sovereign wealth funds were a major topic at the annual “summer camp for billionaires” wrapping up in Idaho on Friday.

Sports are always a big subject at the Allen & Co. Sun Valley Conference, which brings together the world’s top business executives and power brokers — and this year, respective NFL and MLS commissioners Roger Goodell and Don Garber pulled back the curtain on their leagues’ attitudes toward foreign investment.

Garber confirmed that MLS is open to sovereign money investing in franchises. “The NHL and NBA have looked at having sovereign funds and pension funds,” Garber said [[link removed]]. “MLS (is) looking at the same thing. Very timely news. We’ll likely discuss that at our board meeting in D.C. next week at our All-Star Game.”

The NFL, on the other hand, isn’t as amenable — at least not yet. “We haven’t made the move as other leagues have to have any kind of public investment,” Goodell said [[link removed]]. “It’s something we’ll contemplate at some point in time, but we really like our basic model now, where we have private ownership.”

Both comments are perhaps unsurprising. Although Garber said MLS hasn’t had discussions with wealth funds, the league’s unique ownership structure makes it much easier for foreign investment. Several MLS owners also own NBA or NHL teams — which appear to have no issue with Washington Capitals and Wizards owner Monumental Sports & Entertainment recently selling [[link removed]] a stake to Qatar.

Even more MLS owners are also NFL owners, making their evolving views on sovereign money in soccer a strong indicator of where the NFL could ultimately be headed [[link removed]].

Possible CAA Sale Arrives At Uncertain Time For Agencies, Sports Clients [[link removed]]

Robert Hanashiro-USA TODAY NETWORK

One of the biggest agencies in sports and entertainment could be sold — at a time of unprecedented turbulence for the agency business.

French billionaire Francois-Henri Pinault, husband of Hollywood star Salma Hayek, is nearing [[link removed]] a deal to buy a majority stake of Creative Artists Agency valuing the company at more than $7 billion, Front Office Sports confirmed.

An agreement for the Hollywood powerhouse, at least two months away from completion, could still collapse in a situation complicated by Friday’s news that the actors’ union, SAG-AFTRA, joined [[link removed]] already-striking writers on the picket line — effectively shutting down nearly all film and television production in the industry’s first tandem strike since 1960.

The agency oversees nearly $18 billion in sports contracts and represents stars such as MLB two-way phenom Shohei Ohtani [[link removed]] at a time when sports representation continues to see cutthroat competition for clients, pressure on commissions, consolidation [[link removed]], and rookie-scale contracts and draft slotting — all of which threaten to limit agencies’ ability to negotiate deals.

CAA is majority-owned by Texas-based private equity firm TPG, but the finances of key CAA rival Endeavor, a public company and parent of WME and IMG, offer a window into the ongoing stresses of the agency business. Revenue in Endeavor’s representation segment fell in each of the last three quarters, fueled in part by the 2022 majority sale of the Endeavor Content studio.

Some top CAA execs are interested in extricating themselves from underneath TPG, sources said.

CAA and TPG haven’t commented on the reported sale discussions.

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Russia, Belarus Won’t Receive Invites to Paris Olympics, Says IOC [[link removed]]

Jerry Lai-USA TODAY Sports

Russia and Belarus will not be invited to compete at next summer’s Paris Olympics due to their ongoing war against Ukraine.

On July 26 — one year out from the start of the 2024 Games — the International Olympic Committee will send out formal invitations to the 203 eligible National Olympic Committees. Russia, Belarus, and Guatemala — the latter suspended since September 2022 due to government interference — will not be among the invitees.

Olympians from Russia and Belarus could still be able to compete in Paris, but only as individual, neutral athletes. The IOC reiterated that it will decide whether these athletes can compete in Paris at a later date.

The previous two Olympics in Beijing and Tokyo forced Russian athletes to compete under the “Russian Olympic Committee (ROC)” banner due to the country’s doping scandal. In Tokyo — the most recent summer games — ROC athletes won 71 medals, the third-most behind the USA and China. Belarus brought home seven medals.

Paris Problems And Peacock

The upcoming Games have made several headlines lately, with developments including a police raid [[link removed]] of the Paris 2024 headquarters, the organizing committee’s robust plans [[link removed]] for fan events, and Peacock deciding to stream [[link removed]] every Olympic event live in the U.S.

Conversation Starters Apple isn’t wasting words with its new billboard [[link removed]] welcoming Lionel Messi to Miami. WHOOP has opened its new headquarters [[link removed]] in Boston’s Kenmore Square. The 121,000- square-foot, eight-floor space, which neighbors Fenway Park, features a rooftop cafe, private meditation space, state-of-the-art lab, and apparel design studio. Drake invited Kentucky basketball to practice in his custom, $100 million Toronto home gym [[link removed]] — a.k.a., “The Sanctuary.”

FRONT OFFICE SPORTS TODAY

USMNT’s Tim Ream Ventures On, Off Pitch

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 today’s episode, Front Office Sports senior writer Owen Poindexter sits down with longtime USMNT defender Tim Ream to talk about playing on the American national team, equal pay for male and female athletes, and his new venture with Men In Blazers.

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

Editor's Picks Bob Iger, Adam Silver Promote Apple Vision Pro’s Impact on Sports [[link removed]]by Andrew Cohen [[link removed]]

Both executives envision Apple's headset impacting sports viewing.

FIFA Reportedly Falls $100 Million Short of Women’s World Cup Rights Goal [[link removed]]by Andrew Cohen [[link removed]]

FIFA's first year selling Women's World Cup broadcast rights was a letdown.

Tennessee Football Conducted Recruiting ‘Scheme’ Including Cash Payments [[link removed]]by Amanda Christovich [[link removed]]

Former coach Jeremy Pruitt receives six-year show cause penalty.

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