Also: U.S. sports betting sets records in 2023 for handle and revenue. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
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Front Office Sports

POWERED BY

An unlikely power broker is holding up the Washington Capitals and Wizards’ plans for a new arena in Alexandria, Va. … Americans bet nearly $120 billion on sports (legally) in 2023. … Manchester United’s new minority owner has a bigger stake than originally expected. … Are the A’s chances of moving to Las Vegas decreasing? … And we look back at the formation of the U.S.’s biggest stock racing series.

David Rumsey

Meet L. Louise Lucas, Pro Sports’ New Power Broker

Sen. L. Louise Lucas

One of the most powerful figures in pro sports is an 80-year-old Virginia legislator who has no prior experience in the industry but has a long and decorated history as a civic activist. And she just might deliver a fatal blow to a proposed $2 billion arena and mixed-use development in Alexandria, Va., for the Washington Wizards and Capitals. 

L. Louise Lucas, an influential Virginia state senator who chairs that body’s finance and appropriations committee, has already come out strongly against the project led by Monumental Sports and Entertainment chair Ted Leonsis, calling it “not ready for prime time.” In delivering the senate’s proposal for the upcoming state budget, Lucas did not include funding for the arena project, and she doubled down on her firm objections to the proposal.

“We’re not going to let billionaires build their fortunes on the backs of our taxpayer dollars,” Lucas said. “As you know, [MSE] is talking about going public at some point, after taxpayer dollars have gotten them to the point where they want to get to, and under my watch, I say, ‘Hell no.’”

That stance sets up a fight within the Virginia legislature, as the state assembly’s budget proposal does include support for the arena project, and with Gov. Glenn Youngkin, also a strong advocate. The budget battle will now play out over the next two-plus weeks until the end of the legislative session March 9. 

This upcoming period will be something of a referendum on the political power of Lucas, and whether she can maintain enough political support, particularly among fellow Democrats, to continue the opposition against the Alexandria arena. She has been in state politics for more than three decades after starting her professional life as a trailblazing shipfitter at the Norfolk Naval Shipyard and later becoming a health-care entrepreneur. 

In addition to fighting along party, racial, and gender lines, Lucas has long been familiar with the geographic divide in Virginia, where political interests in the Washington suburbs frequently battle for resources and priority against those in the downstate Tidewater region that includes her hometown of Portsmouth. 

An Unlikely Social Media Star

In the meantime, Lucas and her staff have been running a fervent social media campaign against the arena project, and Tuesday leveled another blow against Leonsis and Youngkin, posting, “The GlennDome financing is based on ticket sales to the new arena. Looking at the projections, that appears to include Wizards playoff tickets. Wizards? Playoffs? I was still at the shipyard the last time they were relevant in that discussion and they were still called the Bullets.”

She also railed against those criticizing her for voicing her beliefs, tweeting, “The last thing anybody should ever try to do is bully me. I was a teenage mother who broke the gender barrier with a physical job at the shipyard. At 80 years old I will kick their ass and make sure everyone is watching. Not calling any names YET but you know who you are.”

The arena effort, however, has only reignited what has been more than two years of active social media combat by Lucas against the Republican Youngkin.

U.S. Sports Betting Sets Records in 2023 for Handle, Revenue

Circa Resort & Casino

The U.S. sports betting industry previously projected 2023 to be the first 12-figure year for total handle. That expectation, as it turned out, was a bit too modest.

The American Gaming Association said the U.S. sports betting business finished with a record $119.8 billion in handle, a whopping 27.8% increase from 2022, blowing past those prior projections of hitting $100 billion for the year, and coming on the heels of a robust, football-driven fourth quarter for the year that easily surpassed the January to September handle growth rate of 22.9%. 

The full-year increase owes to several factors, such as five new jurisdictions becoming operational in 2023, including top performers Ohio and Massachusetts, as well as the high-profile arrival of ESPN Bet.

Among the other key findings in the AGA annual report released Tuesday:

  • U.S. sportsbook revenue grew 44.5% to $10.9 billion, also a record, led by New York’s $1.7 billion as the Empire State continues to be a highly coveted jurisdiction for operators despite a 51% tax on operators.
  • Trailing New York among top states in sportsbook revenue were (in order): New Jersey, Illinois, Ohio, and Pennsylvania. 
  • More than $40 billion alone was bet between October and December, up by 34.4% from the same period in 2022. 

Tap the Brakes?

Future growth at similar rates, however, could be harder to come by as top-population states California, Texas, and Florida continue to show resistance to varying degrees toward legalization, and 38 states plus D.C. now allow sports betting. North Carolina is the latest and will begin activity next month after legislative approval last June. 

“There’s a lot fewer states left on the board [for legalization],” said Chris Cylke, AGA senior vice president of government relations. “Some of them have pretty significant political challenges in terms of getting sports betting itself enacted.”

ONE BIG FIG

An Even Bigger Stake

View of a Manchester United corner flag at Old Trafford stadium.

Manchester United

27.7%

The percentage of Manchester United now owned by British billionaire Jim Ratcliffe. The Premier League club confirmed his $1.3 billion deal for 25% of the team has been completed after receiving all necessary approvals. A further investment of $200 million (to be focused on upgrading infrastructure at Old Trafford) increased Ratcliffe’s stake. That should continue to grow with another $100 million to be invested by the end of the year.

TIME CAPSULE

Feb. 21, 1948: Start Your Engines

Peter Casey-USA TODAY Sports

On this day 76 years ago: The National Association for Stock Car Auto Racing was officially formed after several weeks of meetings in Daytona Beach, Fla. Bill France Sr. had been leading talks with drivers, race promoters, and other stakeholders in the fledgling sport.

France, whose son Bill Jr. and grandson Brian also served as CEOs of NASCAR, died in 1992, but his family still owns and operates the sanctioning body today as an influx of $7.7 billion is set to enter the sport via new media rights deals that kick in next year.

Conversation Starters

  • White Sox owner Jerry Reinsdorf and Related Midwest are asking Illinois for $1 billion in public funds for a new downtown stadium.
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  • Join Front Office Sports and the School of Sport, Tourism and Hospitality Management (STHM) at Temple University on March 6 at 1 p.m. ET for The Future of Fan Interaction—a thought-provoking discussion about the transformative impact virtual reality and the metaverse will have on how we watch and interact with sports.*
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