August 25, 2023

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ESPN’s long-anticipated plans for a direct-to-consumer version of its flagship channel could get a helping hand from one of the most accomplished companies in streaming.

Meanwhile, we get a taste of college football this weekend with a fun slate of Week 0 matchups from the ever-shifting conference landscape, and one English soccer team loses a key investment.

— David Rumsey [[link removed]]

Amazon Joins Growing List Of Suitors In Talks With Disney About ESPN [[link removed]]

Ron Chenoy-USA TODAY Sports

Disney CEO Bob Iger must have known his move to explore potential equity partners for ESPN would yield interest from many of the biggest entities in sports, media, and entertainment — and now, that search could pay off big.

Following previously reported interest [[link removed]] from the NFL, NBA, MLB, as well as telecommunications giant Verizon [[link removed]], Amazon is now the latest to discuss acquiring a minority stake in ESPN, according [[link removed]] to The Information.

Amazon’s discussions, like those of Verizon, have been centered on aiding in the development of a full, direct-to-consumer version of ESPN, something Iger said recently is “not a matter of if, but when.”

Amazon’s entry as a potential partner is notable, as the company has made no secret of its desire [[link removed]] to add more sports content to join flagship streaming properties such as the NFL’s “Thursday Night Football.”

The company is also currently [[link removed]] in the mix for a NASCAR rights package. And like with Verizon, Amazon is a business partner of ESPN, distributing its content through Prime Video and Amazon Fire TV.

The latest talks, however, remain preliminary.

Last month, Iger said Disney is open [[link removed]] to selling part of ESPN to a strategic partner, as the company is “dealing head-on with some of our biggest challenges,” including accelerating decline in linear reach.

More recently, ESPN has also seen subscriber growth for ESPN+ stall [[link removed]], at least temporarily. Iger also said [[link removed]] the company is “not necessarily looking for a cash infusion” in the equity sale talks, but rather “partners that are going to help ESPN transition to a [direct-to-consumer] model. That can come in the form of content, or distribution and marketing support, or both.”

High Price Point

The network is also considering charging between $20 and $35 per month for the direct-to-consumer version. Such a price would easily stand among the highest in all of sports streaming, rivaling and perhaps surpassing the comparable $29.99 for direct-to-consumer versions of RSNs such as NESN and MSG.

ESPN is also the most expensive channel among basic cable networks.

PODCAST

🎙️ They Said What?

“If SMU and Stanford agreed to relinquish their share of media rights revenue, for example — split 14 ways … it doesn’t really move the needle.”

— Amanda Christovich, Front Office Sports reporter, on why some ACC member schools are hesitant to add SMU, Cal, and Stanford. For more on the ACC and realignment, download the latest episode of FOS Today.

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

Facility Arms Race Rages On As College Programs Revamp To Stay Relevant [[link removed]]

Caitie McMekin/News Sentinel / USA TODAY NETWORK

The days of college football games played in cavernous concrete bowls with metal benches are increasingly numbered as schools continue to outdo each other with facility renovations and state-of-the-art amenities.

At least a dozen Power Five conference schools are currently in the midst of large-scale stadium upgrades, along with a growing number of smaller-conference universities and independents.

And rather than attempting more modest renovations, many of the projects are extending well into nine figures — despite wildly different circumstances.

A $700 million overhaul [[link removed]] to Penn State’s Beaver Stadium, which will stretch over the next four years. $400 million in improvements [[link removed]] to Florida’s Ben Hill Griffin Stadium (a.k.a., The Swamp), one of college football’s toughest places for visiting teams. A $337 million plan to modernize [[link removed]] Tennessee’s Neyland Stadium, a budget increase from an initial $49 million. A $300 million upgrade [[link removed]] to Kansas’ David Booth Kansas Memorial Stadium that will see the traditional basketball power seek to boost its football presence in a remade Big 12. $162 million in renovations [[link removed]] for Oregon State’s Reser Stadium at the “worst possible time” amid a crumbling Pac-12 Conference.

The underlying factors driving the facility push are varied. Not only are pro football stadium enhancements [[link removed]] quickly resetting fan expectations, but the 2024 expansion [[link removed]] of the College Football Playoff will include on-campus games, while ongoing conference realignment [[link removed]] is rapidly elevating facility standards, and recruiting competition is increasing further in the NIL era.

“It’s real,” said Terry Tumey, athletic director for Fresno State, which is planning a $250 million athletic facility renovation that includes work to Valley Children’s Stadium.

“We are no longer in a hypothetical mode. We understand the external pressures that we have and the changing landscape of collegiate athletics.”

SPONSORED BY CHEVROLET

My Other Passion: J.K. Dobbins

[[link removed]]

As one of football’s best young running backs, J.K. Dobbins is mostly known for his work on the field. But like many professional athletes – J.K has his own passions off the field.

In our new series, My Other Passion, presented by Chevrolet, we hit the outdoors [[link removed]] with some of the most recognizable athletes in sports to explore their interests outside the arena.

Learn how J.K. Dobbins grew up fishing in Texas, how it helps him practice patience on and off the field, the importance of family, his thoughts on the upcoming season and more.

Watch episode one [[link removed]] now.

USC’s Transition To The Big Ten Will Be Lucrative, Challenging [[link removed]]

Tim Heitman-USA TODAY Sports

This weekend, the USC Trojans officially start winding down a century-long tenure in the Pac-12 before their move to the Big Ten — with all the pressure and uncertainty that entails.

“There’s an excitement in the air,” former USC quarterback and new NBC analyst Matt Cassel told Front Office Sports ahead of Saturday’s Week 0 matchup with San Jose State.

USC and UCLA — which kicks off its season Sept. 2 against Coastal Carolina in Pasadena — will receive full revenue shares from the Big Ten’s $1 billion annual media rights deals (Oregon and Washington will accept reduced shares) while facing much stiffer competition.

And while the Trojans have never made the College Football Playoff — which will pay conferences $6 million for each team that makes it this year — Big Ten teams have appeared eight times compared to the Pac-12’s two.

The Trojans are thinking playoffs, Cassel said, and “anything less than that will feel like it was a little bit of a letdown.”

Long Road Ahead

Off the field, the road gets literally longer. New USC athletics director Jen Cohen, who previously held the position at Washington, will now navigate [[link removed]] thousands of additional miles of cross-country travel for conference games — 15,000 miles roundtrip [[link removed]] during USC’s inaugural Big Ten season.

Some around college football have raised concerns [[link removed]] about the added travel’s impact on the well-being of athletes, particularly in non-revenue sports. But Cassel is bullish on more Rose Bowl-style matchups like USC-Ohio State on a consistent basis.

“Now you’re going to get to see them in a regular season,” Cassel said, pointing to the Big Ten’s dissolvement of divisions, which will provide more varied gameday scenarios.

Everton Woes Continue After $190M Deal with MSP Sports Capital Collapses [[link removed]]

Everton FC

One of the Premier League’s most embattled clubs keeps taking hits — this time to its bank account.

Everton FC has lost a potential investment of up to $190 million from U.S.-based investment group MSP Sports Capital.

Led by Phoenix Suns vice-chair and minority owner Jahm Najafi and longtime sports executive Jeff Moorad, MSP had planned [[link removed]] to receive up to 25% of the club in return for the investment. But an exclusivity period surrounding the proposed agreement ended, and the deal is now dead, reportedly [[link removed]] in the face of opposition from existing club lenders.

Rights and Media Funding Limited — whose loan facility with Everton was extended to $253 million this year — is said to have demanded [[link removed]] “high tens of millions” from MSP before any investment funds reached the club.

The club is now looking to reopen talks with Florida-based 777 Partners, which is steadily amassing [[link removed]] one of the world’s leading soccer portfolios and had previously considered [[link removed]] an investment.

Rocky Road

The demise of the MSP deal extends a long run of difficulty for Everton.

The club barely avoided relegation last season and has started the new season in last place. A new stadium is under construction, but costs have risen [[link removed]] more than 50% to $945 million. Without the enhanced revenue from the new facility, club losses have reached $500 million over the last five years. Everton is also under investigation for potentially violating Premier League spending rules.

Conversation Starters Former New England Patriots legends Rob Gronkowski, Tom Brady, and Julian Edelman have all signed [[link removed]] broadcasting deals with Fox Sports. The Pensacola Blue Wahoos — the Double-A affiliate of the Marlins — listed [[link removed]] their entire stadium on Airbnb. For $5,143 per night, you get 10 beds in the clubhouse, all-night access to the field, batting practice, a full tour, food and merch add-ons, and an on-call staff. Kobe Bryant paid $6 million for 10% of BodyArmor in 2014. That stake [[link removed]], inherited by his family, is now worth $400 million. Editor's Picks Saudi PIF Targets MMA and Qatari Fund Acquires Padel Tour [[link removed]]by David Rumsey [[link removed]]The Professional Fighters League is seeking new investment. Inside Tiger Woods’ Two-Story PopStroke Near Palm Beach Airport [[link removed]]by Andrew Cohen [[link removed]]It will include two mini golf courses and a rooftop pool. Shannon Sharpe Positioned As Perfect Successor To Stephen A. Smith [[link removed]]by Michael McCarthy [[link removed]]Sharpe could inherit a morning show that nearly triples Bayless’ audience. You Can Now Bet on Pickleball [[link removed]]by Andrew Cohen [[link removed]]FanDuel is the first U.S. sportsbook to offer pickleball betting. Question Of The Day

Do you work remote or in-office?

Remote [[link removed]] Hybrid [[link removed]] In-Office [[link removed]] N/A [[link removed]]

Thursday’s Answer

80% of respondents have purchased athletic clothes in the past year.

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