March 13, 2024

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College NIL issues and unionization continue to capture increasing attention among lawmakers on Capitol Hill. … Adidas posts its worst year financially since the early ’90s as the athletic footwear and apparel slump grows. … The prospect of Aaron Rodgers in the White House certainly generated a stir, but some healthy skepticism is warranted. … Plus: More on Peyton Manning, women’s soccer, the New York Liberty, and the Saudi Pro League.

— Eric Fisher [[link removed]] and David Rumsey [[link removed]]

NIL in the Crosshairs As Debate Takes Over D.C. [[link removed]]

Kirby Lee-USA TODAY Sports

College administrators have long called for federal legislation to regulate name, image, and likeness deals nationwide—so far without success. On Tuesday, a congressional hearing [[link removed]] dived into college athlete unionization efforts, while an NIL roundtable hosted by Sen. Ted Cruz is stirring up debate thanks to some inflammatory statements from the event’s star-studded guest list.

Here’s what they said:

Nick Saban

On the lack of competitive balance in college sports: “It’s whoever wants to pay the most money, raise the most money, buy the most players, is going to have the best opportunity to win. I don’t think that’s the spirit of college athletics.”

On his wife, Terry, coming out of recent recruiting visits feeling like players and their parents only care about how much they’ll get paid: “All the things I believed in, for all these years, 50 years of coaching, no longer exist in college athletics. … That was a ‘red alert’ that we really are creating a circumstance here that is not beneficial to the development of young people.”

Alabama AD Greg Byrne

On the potential for cutting sports: “It’s the Olympic sports that would be in jeopardy, and that’s men and women. If you look at the numbers for us, at the University of Alabama, with our 19 sports outside of football and men’s basketball, I mentioned we lost collectively almost $40 million, and we funded that through our revenue from a football and men’s basketball standpoint. … There will have to be decisions made because there is not an unlimited supply of money like some believe.”

On the cost of sorting out the new collegiate sports landscape: “What has taken place from the court system, and the litigation that’s involved, and the potential damages that could come along with it are well into eight figures, and those are resources and revenues that don’t exist.”

ACC Commissioner Jim Phillips

On the purpose of NIL contracts: “We want to ensure that NIL deals are not recruiting inducements—that was never the intent. It was about what your abilities allowed you to do, what your name allowed you to do. Not just, hey, you’re a quarterback, you play a position, you get $250,000 without anything relative to services offered, services rendered.”

The Cavinder Twins

Haley Cavinder, on the benefit of NIL: “You can use your name, your brand, your social status on social media, and brands want to work with you regardless of how well you’re performing at your sport.”

Hanna Cavinder, on how NIL offers an alternative to turning professional: “Being able to profit and make as much money as you can in college and being able to both create a brand and set yourself up for the future is very, very important.”

What It All Means

While some of the financial figures revealed by Alabama’s Byrne, in particular, may be a bit shocking, comments from him, Saban, and Phillips shouldn’t come as much of a surprise. Coaches, ADs, and commissioners have been questioning the impact of NIL since its inception. The Cavinder twins, some of the first movers in the space, brought up important points about the benefits of NIL for women’s sports, especially. Will any of these NIL-focused efforts in D.C. speed up significant change? Take your best guess.

Trouble for the Three Stripes: Adidas Posts First Annual Loss Since 1992 [[link removed]]

Amy Kontras-USA TODAY Sports

The tough times are continuing in the athletic footwear and apparel market as industry giant Adidas reported Wednesday its first annual loss in more than three decades.

The German company said it posted a net loss of $82 million in 2023, reversing a $670 million gain in ’22 and representing the first such full-year loss since 1992. The figure arrived as Adidas saw its sales decline 5% to $23.45 billion, and operating profit plunged 60% to $293 million, continuing a slump [[link removed]] seen across the entire category. Key competitors such as Nike continue to be affected by many of the same trends, and that company is in the midst of cutting [[link removed]] $2 billion in costs, in part through layoffs.

The outlook for Adidas for 2024 also suggests a mixed road ahead. While Adidas is projecting “significant” growth in most of its market segments, it is also expecting a mid-single-digit percentage decline in the key North American market, extending a 16% drop there last year.

Adidas CEO Bjørn Gulden sought to put a brave face on the results, and his primary talking points to analysts and investors tracked along an it-could-have-been-worse theme.

“Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year,” he said. “With the exception of the U.S., we now have healthy inventories everywhere.”

About Yeezy

Adidas has now sold most of the $1.3 billion worth of leftover stock from its aborted partnership with controversial rapper Ye, formerly known as Kanye West. After generating [[link removed]] $374 million in sales during the third quarter from Yeezy shoe closeouts, the company paused those efforts in the fourth quarter. Sales resumed last year, with the remaining shoes to be sold at cost. But with only about $328 million in stock left, the Yeezy line is expected to have much less of a financial impact than before.

“We will bring Adidas back again,” Gulden said. “Give us some time, and we will again say, ‘We got this!’”

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THE TAKEAWAY A West Wing Audible?

Michael Madrid-USA TODAY Sports

For nearly a generation, U.S. political coverage has been consumed with what former President Barack Obama and many other academics and pundits have termed “shiny object syndrome,” in which narratives are perpetually tied to the latest distraction, no matter how trivial.

Such a situation has now crept into the sports world as Jets quarterback Aaron Rodgers is now reportedly on the short list [[link removed]] as a potential running mate on Robert F. Kennedy Jr.’s independent presidential campaign. Within minutes of The New York Times’ initial report [[link removed]] Tuesday, sports-talk radio in the Big Apple and elsewhere was agog over the possibility of the four-time NFL MVP and outspoken anti-vaxxer formally entering the realm of politics.

To be clear: The prospect of Rodgers in the West Wing is unlikely on several levels. In addition to the quarterback’s complete lack of public-sector experience and frequent unwillingness to be questioned in nonfriendly settings, Kennedy is currently polling [[link removed]] at about 11%, and is widely seen as more of a potential spoiler [[link removed]] to current President Joe Biden and Republican challenger Donald Trump than a serious candidate to win.

But there is also the potential for an increasing conflict within the Jets organization. Team owner Woody Johnson is a longtime and active Trump supporter [[link removed]], and he previously served as U.S. ambassador to the U.K. during Trump’s prior term. If a Kennedy-Rodgers ticket siphons away enough conservative and independent voters to help reelect Biden, how will Johnson then feel about his $112.5 million signal-caller?

STATUS REPORT Three Up, One Down

David Butler II-USA TODAY Sports

Peyton Manning⬆ The Hall of Fame quarterback (above right) just got another new gig: Olympic host. Manning was just announced as part of NBC’s coverage team for the opening ceremony of this summer’s Paris Games. Meanwhile, Manning continues his pursuit of Bill Belichick (above left) for a media role at Omaha Productions. “If it comes to fruition, I think fans will be excited to see how incredibly brilliant Bill Belichick is when talking about football and how witty and funny he is,” he told The Athletic [[link removed]].

Women’s soccer ⬆ Concacaf unveiled plans for the inaugural W Champions Cup that will see 11 clubs from North America compete for a spot in the new FIFA Women’s Club World Cup that does not yet have a launch date. The W Champions Cup will include a group stage that begins in August, culminating with a final four event at a single location in May.

New York Liberty ⬆ The 2024 WNBA runners-up will see their local game broadcasts move from a paid cable channel to free over-the-air TV this season thanks to a new deal with Fox 5 New York. Last season, Liberty games were shown on YES Network in the New York market.

Saudi Pro League ⬇ After last summer’s nearly $1 billion spending spree [[link removed]] on new players, things could be tighter this year for the competition that is home to Cristiano Ronaldo, Neymar, and other soccer stars. “The deals were not signed for just one season so it is imperative to the clubs to try to act,” SPL chief operating officer Carlo Nohra told Bloomberg [[link removed]]. “They will have to offload players to free up some budget to be able to buy new ones.”

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Introducing the 2024 Tech Playmakers Award

In the last decade, emerging technologies [[link removed]] have transformed the sports media landscape, driving teams, leagues, and sports media organizations to continually evolve.

Front Office Sports and WSC Sports have joined forces to honor the remarkable work of content and product teams shaping the future of fan engagement with the 2024 Tech Playmakers Award [[link removed]]. Here’s how it works:

Every month from now through September, we’ll gather nominations and recognize one winner per month. In October, the grand winner of the 2024 Tech Playmakers Award will be selected from the pool of monthly winners.

Learn more about the award and how to nominate your team [[link removed]] today.

Conversation Starters Eagles guard Landon Dickerson, who is transitioning from an $8 million deal to an $84 million contract, joked [[link removed]] he’s considering buying a new lawn mower when asked about his plans for the substantial jump in earnings. Northwestern has secured its largest program donation [[link removed]] of $5 million, earmarked for the construction of a state-of-the-art softball stadium. The gift will facilitate the development of a new clubhouse, complete with a players’ lounge and locker room, as well as a modern press box. This past weekend saw record-breaking attendance [[link removed]] and TV viewership for women’s college basketball conference tournaments, highlighted by the most-watched game in women’s history on CBS, record attendance for the SEC, and a 462% viewership increase for the Pac-12 championship. Editors’ Picks Sources: ‘Sports Illustrated’ and Swimsuit Edition to Be Broken Apart [[link removed]]by A.J. Perez [[link removed]]Authentic, which owns ‘SI,’ appears ready to license out the venerable franchise. NFL Free Agency: $1B+ Plus in Deals, but the Fine Print Shows True Value [[link removed]]by David Rumsey [[link removed]]Already, well north of $1 billion in contracts, and counting, have been agreed to. Former Jaguars Employee Sentenced to Prison for Theft of $22 Million [[link removed]]by Alex Schiffer [[link removed]]Amit Patel stole millions from the Jaguars over three-plus years. 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]], Catherine Chen [[link removed]]

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