November 13, 2023
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In the complex world of collegiate finances, it’s often difficult to draw a straight line between athletic department expenses and annual costs for general student bodies. It will be interesting to see how Texas A&M’s students and non-revenue sports fare in the wake of the Aggies’ unprecedented $75 million buyout [[link removed]] of fired football coach Jimbo Fisher. With other schools such as Arizona also facing [[link removed]] broader fiscal stress and considering cutting teams partly due to athletic department spending, the Texas A&M story is only beginning.
— Eric Fisher [[link removed]]
Bayern Munich Breaks Revenue Record With Nearly $1B [[link removed]]
Kirby Lee-USA TODAY Sports
German soccer powerhouse Bayern Munich is one of the most profitable clubs in the world — and its most recent financial results prove why.
The team reported record revenue of nearly $914 million for a 2022-23 season that brought a 33rd Bundesliga championship and saw the club reach the quarterfinals of the UEFA Champions League.
The club’s previous revenue record was $802 million during the 2018-19 season, the last before the pandemic. Net profit for Bayern Munich last season was $38.2 million, representing an increase of more than $24 million compared to the previous year.
The financial success shouldn’t be that surprising, as Bayern was the only Bundesliga team to make a profit [[link removed]] in all three pandemic-affected seasons.
Bayern Munich’s most recent valuation [[link removed]] from Forbes is $4.86 billion — far and away the highest in German soccer and sixth in the world.
Over the summer, Bayern Munich ended [[link removed]] a lucrative deal with Qatar Airways that had reportedly brought in more than $100 million for the club. But in August, the club signed a major, five-year contract [[link removed]] with Visit Rwanda.
Bayern is currently second in the Bundlesliga standings, just two points off first-place Bayer Leverkusen. The club also sits in first place of its Champions League group, having won all four of its group-stage matches thus far.
CAA Forms Sports-Focused Investment Bank In Continued Expansion Push [[link removed]]
Shutterstock
In one of the first major moves since being acquired [[link removed]] in September by French billionaire Francois-Henri Pinault in a $7 billion deal, Creative Artists Agency is forming a new sports-focused investment bank in partnership with dealmaker Michael Klein.
CAA’s merchant bank Evolution Media Capital is working with M. Klein & Company to create CAA Evolution, a new investment bank and advisory firm targeting the global sports, media, and entertainment industries.
The new entity will work on deals such as multibillion-dollar team sales and media company maneuvers, as well as advise on capital raising such as initial public offerings — areas previously considered largely outside the scope of CAA and Evolution Media Capital. The move pushes the agency into the kind of large-scale deal financing and advising that has been the province of firms such as the Raine Group and LionTree.
Over the past year, much of the agency world has seen an accelerating push for scale as consolidation continues to sweep through the business. Most recently, Excel Sports Management acquired [[link removed]] REP 1 Football, bringing that agency into on-field player contract work for NFL players.
MKC will continue to operate as a separate firm outside of sports, media, and entertainment.
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How America’s Best Teams Do Black Friday
The best time to start planning for Black Friday and Cyber Monday was two months ago. The second best time is … right now.
If you need some last-minute ideas, be sure to check out FEVO’s 15-step guide [[link removed]] to maximizing BFCM ticket sales, which was compiled with the help of the sales and marketing pros from nearly 800 of America’s best sports teams.
Inside you’ll find:
How the Mariners kickstart their suite sales on Cyber Monday Everything that goes inside the Flyers’ signature “Santa Sacks” University of Florida Football’s early-bird holiday hack
Aimed at empowering sales and marketing professionals in sports ticketing, this guide is your roadmap for achieving exceptional results this holiday season. Read it here [[link removed]].
AC Milan’s Dubai HQ Furthers Middle Eastern Ties In European Soccer [[link removed]]
AC Milan
The Middle East and European soccer are becoming increasingly intertwined — and one of Italy’s biggest clubs is the latest to join in on the movement.
AC Milan has opened [[link removed]] an official headquarters in Dubai, making it the first Italian club to plant formal roots in the MENA region. Casa Milan Dubai is situated in the Dubai International Financial Center.
The Serie A giants are one of many European soccer clubs that have major sponsorship ties with the Dubai-based Emirates airline, along with the likes of Real Madrid, Arsenal, Lyon, and Benfica.
The United Arab Emirates is no stranger to European soccer. City Football Group, the multiclub owners of Manchester City and many others around the world, is controlled by a member of the Abu Dhabi Royal Family.
Middle East Extension
Elsewhere in the Middle East, the Saudi Pro League continues to become more of a force as it lures top European stars. Backed by Saudi Arabia’s Public Investment Fund, the SPL spent [[link removed]] nearly $1 billion on transfer fees just over the summer — and that’s not including billions of dollars in player contracts.
Saudi Arabia will host the 2034 FIFA World Cup, following the 2022 tournament in Qatar.
French soccer powerhouse Paris St. Germain is owned by Qatar Sports Investments, which has reportedly been in discussions [[link removed]] about investing in Italian club Sampdoria.
Editor’s note: AC Milan owner RedBird Capital is an investor in Front Office Sports.
Conversation Starters Jimbo Fisher will be paid more to not coach [[link removed]] Texas A&M than his former quarterback Jameis Winston has been paid over his entire NFL career. In February, Klutch Sports CEO Rich Paul launched his own sportswear [[link removed]] brand with New Balance, Klutch Athletics. Now, he’s signed his first NIL athlete, Kentucky basketball star Justin Edwards. This weekend’s Formula 1 Las Vegas Grand Prix will introduce [[link removed]] the first “F1 Wedding Chapel.” Editor's Picks Sources: Top Leader of ESPN’s ‘Andscape’ Poised To Leave [[link removed]]by Michael McCarthy [[link removed]]Raina Kelley, editor-in-chief of 'Andscape' since 2021, was the third leader of the platform, which launched in 2016. College Football Playoff Moves Closer to Format Change [[link removed]]by Doug Greenberg [[link removed]]The CFP is poised to move to a five-and-seven format. ESPN’s Financial Success Raises Questions About Cost-Cutting and Layoffs [[link removed]]by Michael McCarthy [[link removed]]Disney's financials reveal a surprisingly profitable and powerful ESPN. That's leading ex-staffers to wonder why they were laid off. Careers in Sports
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