August 9, 2023

Read in Browser [[link removed]]

POWERED BY

A day later, we’re still absorbing the blockbuster deal creating ESPN Bet and formalizing ESPN’s entry into sports betting. PENN Entertainment’s total investment is greater than first indicated, reiterating just how much the company is staking its future on this agreement.

Meanwhile, Comcast Spectator pushes back on recent comments [[link removed]] made by the 76ers on Front Office Sports Today about Wells Fargo Center, and the Arizona Coyotes take a critical step forward in their bid to develop a new arena and stay in the Phoenix area.

— Eric Fisher [[link removed]]

Wells Fargo Center Owner Fires Back As 76ers Arena Fight Heats Up [[link removed]]

Bill Streicher-USA TODAY Sports

The owner and operator of Philadelphia’s Wells Fargo Center — home to both the NBA’s 76ers and NHL’s Flyers — has taken direct aim at the 76ers’ attempt to build [[link removed]] a new downtown arena.

Responding to David Adelman’s appearance [[link removed]] this week on the Front Office Sports Today podcast, Comcast Spectator said the chair of the 76ers’ arena development project misstated key components of the ongoing facility debate, which has increasingly roiled both the two organizations and the city at large.

“Philadelphians deserve the facts, not mistruths and distortions being said about the new Wells Fargo Center, game and event scheduling, and more,” a Comcast Spectator official told Front Office Sports.

Among the items under dispute is that Wells Fargo Center ranks “near the bottom in every major category” in an NBA fan satisfaction survey, according to Adelman. That league survey, obtained by Front Office Sports, indicates the current arena ranks 14th in the NBA on overall game experience satisfaction, and either matches or approaches overall league averages in several categories ranking arena operations and game experience.

Adelman also said Comcast Spectacor “scrapes” more than 200 calendar days per year at the arena for events and concerts beyond 76ers and Flyers games, a figure the company says is “neither true nor mathematically possible.”

Adelman did correctly say that 28 of 30 NBA teams play in downtown arenas, with only San Antonio’s newly renamed [[link removed]] Frost Bank Center joining Wells Fargo Center outside its city center.

Comcast Spectator has sought to counter Adelman’s plan with a $400 million renovation [[link removed]], as well as a supplemental development project at the sports complex in South Philadelphia to be announced later this year.

Adelman said the Wells Fargo Center improvements were “cosmetic” in nature, but the company argues that “nearly everything but the foundation, steel, and concrete has been replaced with state-of-the-art materials and amenities.”

The 76ers’ lease at Wells Fargo Center expires in 2031.

ESPN Bet Preps November Launch With Spending To Reach $3.5B [[link removed]]

Christopher Hanewinckel-USA TODAY Sports

ESPN Bet will launch sometime in November, PENN Entertainment announced during an earnings call on Wednesday, as the company pivots from Barstool and rebrands its sportsbook during the beginning of the football season.

Company president and CEO Jay Snowden is bullish on using the final two months of 2023 to set up ESPN Bet [[link removed]] for a strong run through the NFL playoffs, Super Bowl, and March Madness. “We’re going to be out there launching at a time where, maybe with everyone else, new customers have burned through those promotional dollars on first-time deposit matches.”

PENN will match its annual $150 million payment to ESPN with equal marketing spend, bringing its total investment in this venture to at least $300 million per year. “We’re certainly not going to be cheap about our approach,” Snowden said.

Combined with the $500 million in warrants PENN is granting to ESPN, that brings its total investment up to $3.5 billion over the 10-year deal.

Snowden is confident that reaching 20% of the U.S. online sports betting market share is attainable, with ESPN’s robust live sports portfolio driving consumer interest: “The key differentiation for us … is going to be the things that we can do around media integration, video, and maybe potentially live streaming. There’s a lot of things that we can do, because of who our partner is here, that others won’t be able to.”

Still to be determined is if and when PENN’s retail sportsbooks will take on physical ESPN Bet branding. “ESPN folks have not had a chance to visit our properties yet,” Snowden explained. “So, we’re going to go through a process, and there could be potentially some ESPN-branded retail sportsbooks on plan.”

Multiple times during the call, Snowden pointed to a planned investor day in December for more updates on specific plans beyond the launch, claiming that 2025 would be the year he expects to “start to see the returns” on investment.

SPONSORED BY TEAMSNAP

Revolutionizing Youth Sports

In the last 20 years, the sports world has undergone a tremendous evolution. From rule changes to technological advances, they have benefited both professional and youth sports leagues alike.

In our latest webinar, Making Youth Sports Accessible in the Modern Age [[link removed]], presented by TeamSnap, we took an inside look at how youth sports teams and organizations utilize technology to make youth sports more accessible to all. The discussion features representatives from organizations across the youth sports industry, including Lance Lee, Director of Community Impact at TeamSnap.

Watch it on demand [[link removed]] now!

Coyotes Plan To Buy Land In Mesa For New Arena [[link removed]]

Joe Camporeale-USA TODAY Sports

The Arizona Coyotes have found a new plot of land to potentially build a new arena and remain in the Phoenix market.

Less than three months after a stinging ballot-box defeat [[link removed]] for a proposed arena and mixed-use development in Tempe, the Coyotes and team owner Alex Meruelo have signed a letter of intent to purchase a plot of land in Mesa as the possible site of a sports arena and entertainment district.

The project would seek to replicate the core of the $2.1 billion project proposed in Tempe, including a 16,000-seat arena, hotels, shops, restaurants, and housing.

Since the Tempe rejection, both the Coyotes [[link removed]] and NHL [[link removed]] had been adamant about remaining in the Phoenix area if possible. The Coyotes, however, have no intention of pursuing another referendum approval. Team president Xavier Gutierrez said in June, “Our goal is to try to get to a straight line and have a resolution as quickly as possible.”

“The Coyotes remain committed to building the first privately funded sports facility in Arizona history and ensuring the Valley as the club’s permanent home,” the team said Wednesday.

Located in the Phoenix area’s East Valley, Mesa is also home to two MLB Cactus League complexes: the Chicago Cubs’ Sloan Park and Hohokam Stadium, the Spring Training home of the Oakland A’s.

Even with the letter of intent for the land purchase, the Coyotes said they’ll continue to explore other potential development sites in the East Valley. For now, the team remains [[link removed]] at Arizona State University’s 5,000-seat Mullett Arena.

The Coyotes’ local TV situation, however, remains tenuous [[link removed]] amid ongoing turmoil with Bally Sports Arizona and its bankrupt parent, Diamond Sports Group.

Conversation Starters At Tuesday’s Orioles game, following reports that the Orioles had indefinitely suspended broadcaster Kevin Brown after comments on the team’s losing record against the Rays, the Camden Yards crowd chanted [[link removed]], “Free Kevin Brown.” Get the best of both worlds with Wendy’s BOGO $1 [[link removed]]. Buy any of these fan faves: Dave’s Single, Spicy Chicken Sandwich, 10 PC Nuggets, or Medium Frosty, and get another for $1. Let’s BO GO!* New (and surprising) exclusive data from Vision Insights on brand partnerships in sports: If you’ve ever wondered which sponsorships perform best, check out the latest report [[link removed]] on which types of partnerships generate the most positive fan sentiment.*

FRONT OFFICE SPORTS TODAY

ESPN Jumps into Sports Betting

ESPN upended the sports betting landscape by striking a deal with PENN Entertainment. Front Office Sports writer Doug Greenberg joins Front Office Sports Today to break down what this means for the sports network and why it finally decided that now was the time to make this long-awaited move.

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

Editor's Picks Tennessee Titans Share Renderings for $2.1 Billion New Stadium [[link removed]]by Andrew Cohen [[link removed]]It will be the largest publicly-funded stadium in U.S. history. The Mountain West Is Waiting for the ACC To Make Expansion Decisions [[link removed]]by Amanda Christovich [[link removed]]ACC expansion need to conclude “before anything would get serious with us." Maryland Gov. Moore Says Keeping Commanders ‘a Major Priority’ [[link removed]]by A.J. Perez [[link removed]]Maryland Gov. Wes Moore visited Commanders training camp. DISCLAIMER

*Sponsored Content

Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[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