March 14, 2024

Read in Browser [[link removed]]

POWERED BY

Under Armour brings back its founder in an operational leadership role as the sports footwear and apparel market continues to show weakness. … The Jazz have some good news regarding their new local broadcast plan away from any regional sports network, but is it the whole story? … Plus: More on the College Football Playoff, potential NFL tampering, Korean MLB fans, and Jon Gruden.

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

Under Armour Turns to Its Founder As Industry Turbulence Continues [[link removed]]

Tommy Gilligan-USA TODAY Sports

As a reckoning continues across much of the athletic footwear and apparel market, one of the key players has turned again to its founder in search of a new spark.

Under Armour has brought back founder Kevin Plank as president and CEO. Plank—who had been executive chair of Under Armour’s board—replaced Stephanie Linnartz, a former Marriott executive who had arrived with a three-year recovery plan for the brand but was on the job for only a year.

Company officials have not detailed the full reasoning behind the shift or its timing. But Under Armour’s stock has fallen more than 70% since late 2021, and the fiscal ’24 outlook has been lowered each of the last two quarters, now sitting at an expected 3% to 4% decline in revenue.

“As the company continues to navigate several post-pandemic consumer, industry, and brand-specific factors, we are working hard to reconstitute our strengths and make thoughtful, balanced decisions to drive enduring success,” Plank said.

Industry Downturn

Under Armour is hardly alone in facing such large-scale challenges, and a holiday-season malaise [[link removed]] in the market has led to more grim news in early 2024. Adidas just posted [[link removed]] its first annual loss since 1992, while Nike is in the midst of a $2 billion cost-cutting effort that involves [[link removed]] layoffs.

The Maryland-based Under Armour, however, could be facing the greatest set of challenges. Formed by Plank as an upstart challenger to many of those established, historically steeped giants, the company has struggled mightily in recent years to maintain the strong brand affinity it enjoyed in its early years, and it has had other challenges, such as the ​​ end [[link removed]] of an on-field licensing deal with the NFL, the payment of a $67.5 million settlement [[link removed]] to UCLA following a bitter contract breach dispute, and a series of embarrassing revelations [[link removed]] over a toxic work culture.

Investors have not conveyed initial confidence in the return to Plank, as Under Armour shares fell more than 10.7% on Thursday to $7.23 per share, sinking to a level not seen in more than 13 years.

“Mr. Plank’s return is a clear signal that Under Armour’s strategy isn’t working, and supports our field work that [the company’s] key performance indicators continue to deteriorate,” investment banking advisory firm Evercore said in an analyst’s note.

Big Exception to the Trend

Dick’s Sporting Goods on Thursday bucked the trend seen by many of the manufacturers, as well as its own stock slide seen during the second half of last year, and reported quarterly and full-year sales and earnings that beat analyst projections. The company’s shares soared more than 15% to $216.81 per share. A key element of the growth at Dick’s are the brand’s 12 House of Sport stores, with that experiential retail experience expected to expand to more than 75 locations by 2027.

“House of Sport is a significant part of our future growth story,” said Lauren Hobart, Dick’s president and CEO. “All of our core strategies are coming to life, in a dialed-up way, [whether it be] our differentiated product, the access we have there, the service model, or the experiences.”

SPONSORED BY ACURA

Energy That Drives

[[link removed]]

Acura has been a challenger since its beginning—raising the bar, rebelling against the norms, and redefining what it means to drive since 1986. Now, Acura’s making that same energy, electric.

Introducing the all-electric Acura ZDX [[link removed]]. Crafted using the same formula that brought us electrified supercars, the ZDX features a Bang & Olufsen® sound system, DC Fast Charging capability, and a high-performance Type S model with an estimated 500 horsepower, making the ZDX Acura’s most powerful [[link removed]] SUV to date.

Unlock the energy [[link removed]].

THE TAKEAWAY Putting on a Brave Face

Rob Gray-USA TODAY Sports

The Jazz are among a growing number of teams, either by force or by choice, separating from the traditional regional sports network model for broadcasting of local games, and they are developing their own, team-controlled frameworks to show live games in-market. Mirroring the path of the Padres [[link removed]], Diamondbacks [[link removed]], Suns, Mercury [[link removed]], Golden Knights, [[link removed]] and Coyotes [[link removed]], the Jazz have created [[link removed]] their own streaming service, Jazz+, and are also airing their games on over-the-air TV station KJZZ.

The early returns, say the team, have been strong. Team officials told NextTV [[link removed]] that more than 20,000 people have signed up for Jazz+, which costs $15.50 per month or $125.50 annually, and that the team’s total TV audience is up by 53% compared to last year.

“We’re betting on ourselves,” Caroline Klein, chief communications officer for the Jazz and parent company Smith Entertainment Group, told NextTV. “We own all of our ad inventory.”

This messaging model follows both the tone and rough timing of several of the other teams no longer operating in the RSN model. Soon after the Padres and Diamondbacks parted ways with the bankrupt Diamond Sports Group, MLB and the teams issued press releases similarly conveying the large jump in broadcast reach as a result of the new framework. There also have been big ratings increases reported for the Golden Knights, Suns, and Coyotes.

Crucial and unanswered questions remain: How do the revenues from local broadcasting for these teams compare as a result of the switch, and when will they match the old model? Is that even possible? Klein did acknowledge that “we definitely took a hit with revenue,” without providing specifics, adding the changeover “was not a quick fix.” Diamondbacks owner Ken Kendrick also said recently how the separation from DSG has introduced “challenges on our side of the table, the economics of what the revenue streams that the [local] television will create for us.”

Teams such as these are essentially at the tip of the spear when it comes to navigating the historic transformation of sports media now unfolding. But detailing a big jump in reach and engagement after exiting the RSN model, and only that, still leaves out a critical part of the equation.

—EF

ONE BIG FIG Money Madness

Kirby Lee-USA TODAY Sports

$2.72 billion

Amount of money that U.S. adults will legally bet on the 2024 men’s and women’s NCAA tournaments, according to the American Gaming Association [[link removed]]. That figure is roughly 2.2% of the total handle legally wagered by Americans in ’23. The men’s bracket selection show will air on CBS at 6 p.m. ET on Sunday, and the women’s bracket reveal will follow at 8 p.m. on ESPN.

FRONT OFFICE SPORTS AWARDS

Now’s Your Chance

Whether hosting Formula One, the WNBA, or the Triple Crown, sports venues house some of the world’s most beloved brands and loyal fans.

Don’t miss your opportunity to showcase your venue’s success.

Employing data-driven methodology, the Best Venues Award [[link removed]] recognizes the sports venues’ implementation of technology, mobile app capabilities, food options, transportation, venue design, and mixed-use development components, as well as VIP and overall guest experiences.

The submission period for Best Venues is open through April 8 at 11:59 p.m. ET.

Learn more about the award and submit your venue [[link removed]].

STATUS REPORT One Up, Two Down, One Push

Mark J. Rebilas-USA TODAY Sports

CFP future ⬆ A new College Football Playoff format could be getting closer after ACC and Big 12 presidents authorized their commissioners to adopt a proposed framework, according to Yahoo! Sports [[link removed]]. The new structure in question would see the Big Ten and SEC combine to earn about 58% of CFP revenue, while the ACC and Big 12 would split 32%.

Eagles, Falcons ⬇ The NFL is reviewing [[link removed]] whether tampering policies were violated by Philadelphia, which signed running back Saquon Barkley to a three-year deal worth up to $37.75 million, and Atlanta, which signed quarterback Kirk Cousins to a four-year contract worth up to $180 million.

Korean MLB fans ⬇ Anyone hoping to see Shohei Ohtani (above) and his debut with the Dodgers in next week’s Seoul Series may have to pay more than $3,000 for a ticket, five times face value, and sit next to a random scalper. Bloomberg has more [[link removed]].

Jon Gruden ⬆⬇ The embattled NFL coach is returning to the professional ranks—in Italy. The European Football League’s Milano Seamen announced [[link removed]] Gruden will work as an adviser, and it said he has already started working with the coaching staff. Gruden, fired by the Raiders in 2021, has an ongoing lawsuit [[link removed]] against the NFL.

Conversation Starters Andrew Toles, a former MLB player diagnosed with schizophrenia, hasn’t played baseball since 2018. Still, the Dodgers continue to re-sign him [[link removed]] to a $0 deal each year, which enables him to access essential mental health services and insurance. MLB kicks off its inaugural Spring Breakout on Thursday, featuring a four-day series showcasing top prospects competing against one another, aimed at enhancing the promotion of the game’s future stars. Do you want to watch it? Let us know [[link removed]]. PrizePicks has cemented itself as a leader in NBA Daily Fantasy and the No. 1 sports server on Discord. In our recent article [[link removed]], we explore the numbers behind the meteoric rise of NBA Fantasy.* Editors’ Picks Chiefs’ President Threatens Team Could Leave Kansas City If Voters Don’t Give It Money [[link removed]]by Alex Schiffer [[link removed]]The Hunt family’s cheapness continues to show after Super Bowl title. AP Survey Finds 55% of U.S. Adults Oppose College Athlete Unionization [[link removed]]by Margaret Fleming [[link removed]]But 53% are in favor of revenue sharing. Sources: ‘Sports Illustrated’ and Swimsuit Edition to Be Broken Apart [[link removed]]by A.J. Perez [[link removed]]Authentic could retain the ability to use the swimsuit rights as part of a live-events business. 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]], Catherine Chen [[link removed]]

If this email was forwarded to you, you can subscribe here [[link removed]].

Update your preferences [link removed] / Unsubscribe [link removed]

Copyright © 2024 Front Office Sports. All rights reserved.

460 Park Avenue South, 7th Floor, New York NY, 10016