July 27, 2023

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Like many, I’ve become an F1 fan in recent years thanks to the exploding interest in the sport in the U.S. The circuit is enjoying its summer break, but a formal decision on adding new teams to the grid could be just weeks away.

In other news, MLB has extended Rob Manfred’s contract, and recent earnings calls shed light on the monetization habits of a major sportswear brand and the NFL’s newest media partner.

— David Rumsey [[link removed]]

F1 May Settle $1B Expansion Process Ahead Of U.S. Races [[link removed]]

David Kirouac-USA TODAY Sports

Expansion within Formula 1 has been a topic all year long, but the matter could be settled by the time the series returns to the States for October’s U.S. Grand Prix and the inaugural Las Vegas GP the following month.

Influential American racing figure Michael Andretti has shown heavy interest in starting an F1 team via a partnership with Cadillac, while the U.K. racing group Hitech is also seen [[link removed]] as a major player for expansion.

Recent comments from FIA president Mohammed Ben Sulayem suggest a resolution will be reached soon. “I think the final decision will be made within four-to-six weeks,” said [[link removed]] Ben Sulayem, whose organization governs F1 and other racings bodies.

The current 10 F1 teams could stand to split more than $1 billion if two expansion teams are approved. The FIA originally set an expansion fee of $200 million per team, but F1’s recent popularity growth could push that figure past $600 million.

Last month, F1 CEO Stefano Domenicali pushed back on the need to expand beyond 10 teams and said [[link removed]] takeover offers surpassing $1 billion were being turned down.

Adding two new teams would take the F1 grid to 24 cars — its highest figure since 2016, which fielded 11 teams and 22 cars. The maximum number of cars allowed by the FIA for an F1 race is 26.

PODCAST

🎙️ They Said What?

“This is not a Minnesota thing. This is not a Northwestern thing. These are issues that have been a part of college sports.”

— Front Office Sports senior reporter A.J. Perez on how allegations made against Minnesota football coach P.J. Fleck highlight a broader issue of toxicity amongst college sports. To hear more from Perez talking about his exclusive story on Fleck and the Minnesota program, download the latest episode of FOS Today.

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

Rob Manfred Gets Extension Amid MLB’s Resurgence [[link removed]]

Joe Nicholson-USA TODAY Sports

Meet the new boss, same as the old boss.

On Wednesday, MLB owners approved a four-year contract extension for commissioner Rob Manfred, keeping him in place until January 2029 as the league looks to build on the sport’s recent resurgence on the field and at the turnstiles.

The renewal also represents a marked difference from Manfred’s original election in 2014, when his ultimate victory required multiple ballots.

Manfred’s eight-plus years on the job have been decidedly uneven [[link removed]]. MLB annual revenue has risen to nearly $11 billion, and the league has negotiated new media deals [[link removed]] and continues to navigate the disruption [[link removed]] caused by the collapse of regional sports networks. On the other hand, Manfred has dealt with labor strife with the MLB Players Association and stadium issues for Oakland [[link removed]]and Tampa Bay [[link removed]] — and he has notably struggled [[link removed]] at times with his role as the game’s ambassador.

But 2023 perhaps represents the high point of the 64-year-old’s tenure thus far. The league has enjoyed renewed excitement thanks to a trio of new rules [[link removed]] improving on-field action and speeding up games — resulting in projected [[link removed]] attendance growth of 6% to 8%.

“At a critical moment in the history of our game, commissioner Manfred has listened to our fans and worked closely with our players to improve America’s pastime,” said Seattle Mariners owner and MLB executive council member John Stanton.

Salary Comps

Financial terms of the new deal weren’t disclosed, but Manfred is estimated to have earned [[link removed]] about $25 million annually in his prior deal, including bonuses.

The sum is far less than the nearly $64 million NFL commissioner Roger Goodell is estimated [[link removed]] to earn per year, but more than the last known salaries of NBA commissioner Adam Silver and NHL commissioner Gary Bettman — about $10 million each.

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To learn more, register [[link removed]] for FEVO’s virtual keynote on August 9, where they’ll break down all the latest features on their platform.

YouTube TV To Offer NFL Sunday Ticket, Max Streaming Bundle [[link removed]]

Kirby Lee-USA TODAY Sports

Even Google — one of the world’s largest technology companies — needs help monetizing its new NFL Sunday Ticket rights.

Google parent Alphabet disclosed [[link removed]] during its second-quarter earnings call that its YouTube TV platform will work with Warner Bros. Discovery on a bundle combining the NFL’s out-of-market game package with the latter’s Max (formerly HBO Max) streaming service.

The effort brings together the most popular U.S. pro sports league with a major, general-interest streaming platform, significantly expanding NFL Sunday Ticket’s potential reach.

Google completed [[link removed]] a deal with the NFL late last year for the package’s residential rights for an estimated $2 billion per year, supplanting DirectTV, which has since retained [[link removed]] commercial rights.

The streaming collaboration “underscores our joint commitment to bring the highest-quality content and experiences to our customers,” said Philipp Schindler, Google chief business officer, during an earnings call with analysts.

Pricing for the combined offering hasn’t been finalized. YouTube TV announced [[link removed]] its own NFL Sunday Ticket rates for the season, which start at $299, though prices previously fell to as low as $249 during an initial presale.

Verizon Offer

Some Verizon customers will be able to avoid any such charges, as the telecommunications giant is offering [[link removed]] NFL Sunday Ticket for free to those purchasing select smartphones and home internet packages.

Like Google, Verizon is a key business partner of the NFL, and the promotional efforts are all part of the league’s long-stated intention to make NFL Sunday Ticket far more accessible in its new streaming-based structure.

Puma Reports Strong Sales But Still Lagging In U.S. [[link removed]]

PUMA

Puma didn’t need a strong performance from its U.S. offerings to report robust earnings in its most recent quarter.

The German sportswear brand increased sales by 11% to $2.34 billion. The company blamed a 4.4% downturn in the Americas region — which represented 40% of its overall sales — on “ongoing softness in North America,” while it said Latin America “continued to show strong growth.”

The result is perhaps unsurprising given that major product and marketing highlights were generated predominantly outside the North American market.

Puma’s most notable U.S. accomplishments came from golfer Rickie Fowler’s first PGA Tour win since 2019 and Charlotte Hornets star LaMelo Ball’s sneaker tour — of Europe.

The North American numbers are contrasted with a sales increase of 25% in the Europe, Middle East, and Africa region — where Puma continues to make inroads in soccer.

Manchester City — which wears Puma kits — completed a historic treble [[link removed]] by winning the Premier League, FA Cup and Champions League. Puma is also reportedly set to take over [[link removed]] Nike’s position as the supplier of EPL match day balls.

The Asia/Pacific region was the top performer with sales increasing by 26%. Looking ahead, Puma is expecting to reach its full-year outlook [[link removed]] of high-single-digit currency-adjusted revenue growth.

Conversation Starters The Chargers’ Justin Herbert leads all NFL players in average salary, per Spotrac, earning $52.2 million per year. Check out [[link removed]] the Top 10. The Philadelphia 76ers’ training complex in Camden, New Jersey, features two full-size courts mirroring that of the Wells Fargo Center, plus hydrotherapy and rehabilitation spaces, locker rooms, and more. Take a tour [[link removed]]. One of America’s more unique [[link removed]] golf courses has an MLB theme: The Texas Rangers Golf Club is a collaboration between the team and Arlington Golf.

SPONSORED BY PWCC

Tall Boys Basketball Cards Reach New Heights

The 1969 Topps basketball [[link removed]] set brought nationally distributed cards back after a seven-year drought. While its oversized design makes it one of the most famous releases of all time, it also makes it one of the trickiest for collectors and investors looking for quality issues.

So when the best-quality copies from the set do hit the market, they tend to cause a frenzy – even if the players aren’t considered all-time greats. In May and June, 21 PSA 10 copies of 1969 Topps basketball cards set player records on PWCC. Most were the only PSA 10 copies in existence.

Dive into the data with this guide [[link removed]] to Topps tall boy basketball cards, and check out high-flying ‘60s and ‘70s vintage basketball cards [[link removed]] on PWCC today.

Editor's Picks Former Players, Staff Reveal Troubling Allegations of Toxic Culture Under P.J. Fleck [[link removed]]by A.J. Perez [[link removed]]

Former Minnesota football players describe a culture of intimidation.

Kylian Mbappé Reportedly Rejects Saudi Arabia’s Offer [[link removed]]by Andrew Cohen [[link removed]]

Al-Hilal reportedly offered a $776 million salary to Mbappé.

Union Leaders for MLB, NFL, NHL Support Writer’s Strike [[link removed]]by Andrew Cohen [[link removed]]

Lloyd Howell, Bruce Meyer, and Marty Walsh all supported the WGA.

Question Of The Day

Do you plan on attending a college sporting event in the next 12 months?

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

Wednesday’s Answer

56% of respondents own a bike, and 11% don’t yet but want to.

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]]

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