May 2, 2024

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The Bears’ lakefront stadium proposal isn’t a departure from ongoing facility projects in other NFL markets, but that hasn’t stopped the local resistance from continuing to build. … A senior executive departure and forthcoming layoffs marks the latest hit in a lengthy decline for Peloton. … Jordan Spieth isn’t clear on the PGA Tour’s player equity program. … MLB has a strong April at the gate, continuing the league’s attendance momentum. … Plus: More on limited team partners, the Bundesliga, U.S. soccer, and sports betting.

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

Bears’ $4.7 Billion Stadium Pitch Caught in a Game of Political Football

Chicago Bears

On the surface, what the Bears are proposing [[link removed]] for their new $4.7 billion lakefront stadium is hardly radical by current NFL standards. The team’s pitch for a new stadium adjacent to Soldier Field, with about $2.3 billion in private money, easily beats the team-level contributions for forthcoming facilities in Buffalo [[link removed]] and Tennessee [[link removed]], both in actual amount and percentage of overall development cost, and could also overtake what is being discussed in Kansas City and Cleveland [[link removed]].

And despite the ongoing debate about the best use and preservation of Chicago’s downtown museum campus, no private landowner would be displaced in this project. The office of Illinois Gov. J.B. Pritzker, however, has already branded the Bears’ effort, as currently constructed, as a “nonstarter.”

Such is the highly delicate nature of the city- and state-level politics surrounding the team’s stadium pitch. Even with the massive popularity of the NFL nationally and the Bears locally, and the particulars that the team has offered to date, the Bears’ proposal is running hard into broader realities and a general resistance to even a perception of enriching a wealthy team owner with taxpayer funds.

“As the governor has said, the current proposal is a nonstarter for the state,” said Alex Gough, a spokesman for Pritzker. “In order to subsidize a brand-new stadium for a privately owned sports team, the governor would need to see a demonstrable and tangible benefit to the taxpayers of Illinois.”

Conversations between the team and Pritzker’s office are still ongoing, and the Bears said they “share a commitment to protecting the taxpayers of Illinois and look forward to future discussions.”

State-level support is likely critical for the stadium, as the team in particular has not identified a funding source for three phases of infrastructure development that are projected to total $1.5 billion, only saying last week, “There are dollars that we believe exist at the state level, maybe the federal level, and potentially the city level.”

Back in the City

Chicago mayor Brandon Johnson, whose full support of the lakefront proposal has already rankled critics, continues to face further criticism for his position. Recent local columns and editorials have opined that Johnson “is playing fantasy football [[link removed]] with our money,” and that “the Bears are looking out [[link removed]] for the Bears.”

Should the downtown stadium development fizzle out, officials in suburban Arlington Heights said [[link removed]] they remain ready to restart talks with the Bears.

Peloton Timeline: CEO Changes, Layoffs, Recalls, and Falling Stocks [[link removed]]

Hilton

Peloton, the once-booming leader in the at-home fitness space, announced Thursday that CEO Barry McCarthy is stepping down and about 400 jobs, or 15% of its workforce, would be cut. It’s just the latest bad news in what has been a roller coaster for Peloton since going public in 2019. Here’s a snapshot of major events in recent years.

Dec. 5, 2019: The release of a holiday ad deemed controversial by some coincides with Peloton’s stock dropping [[link removed]] more than 10% in a matter of a few days.

⬇️ Stock value: $31.31 Dec. 23, 2020: Peloton stock hits an all-time high on the back of skyrocketing business during the COVID-19 pandemic that closes gyms and keeps hundreds of millions of customers in their homes.

⬆️ Stock value: $162.76 Feb. 4, 2021: The company reports [[link removed]] its first billion-dollar fiscal quarter and pledges to spend $100 million to speed up shipping times to meet increasing demand. Later that month, a Saturday Night Live skit [[link removed]] pokes fun at the brand’s popularity.

⬇️ Stock value: $146.79 Dec. 31, 2021: Peloton stock finishes the year down 76% as the at-home fitness craze slows.

⬇️ Stock value: $35.76 Feb. 8, 2022: Cofounder John Foley steps down [[link removed]] as CEO and becomes executive chairman just weeks after major shareholder Blackwells Capital called [[link removed]] for his removal. McCarthy, a former CFO at Spotify and Netflix, takes over as CEO as the company announces it will cut 2,800 jobs.

⬇️ Stock value: $37.27 Sept. 12, 2022: Foley and fellow cofounder Hisao Kushi exit [[link removed]] the company altogether after another 800 jobs were eliminated [[link removed]] the month before.

⬇️ Stock value: $11.07 Jan. 5, 2023: Peloton agrees to pay [[link removed]] a $19 million civil penalty for failing to immediately report treadmill defects—which caused [[link removed]] a child’s death—to the U.S. Consumer Product Safety Commission.

⬇️ Stock value: $8.58 May 11, 2023: A recall of 2.2 million Peloton bikes is announced [[link removed]] due to a seat defect on original models sold as far back as ’18.

⬇️ Stock value: $6.86 Oct. 18, 2023: Peloton strikes a deal [[link removed]] to offer NBA and WNBA games from compatible devices via its new entertainment hub. The live sports play came two months after Peloton’s first name, image, and likeness deal [[link removed]] with Michigan athletics.

⬇️ Stock value: $4.80

On Thursday, Peloton stock closed at $3.14 after dipping below $3 for part of the day. Two interim CEOs were announced as the company said it would begin a comprehensive search for its next long-term leader.

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ONE BIG FIG Ballpark Counts

Arizona Republic

26,927

Major League Baseball’s average attendance through April, marking a 0.9% increase from last year and the league’s best total for April since 2017. MLB is continuing its momentum at the gate from last year [[link removed]] as pace of play improvements introduced in ’23, particularly the pitch clock, have also carried over into this season. Beneath the top-line increase, though, is a notable dichotomy as 18 of the league’s 30 teams are down [[link removed]] in attendance, and the A’s are drawing minor-league-level crowds [[link removed]] at the Oakland Coliseum. Helping to overtake all of that is a set of clubs, including the Diamondbacks (above), Orioles, and Rangers, that have translated success on the field in ’23 to double-digit-percentage increases at the gate this season.

AWARD

Established in 2017, the Front Office Sports Rising 25 Award [[link removed]] celebrates the brightest young stars in the business of sports.

Know someone whose innate passion and tireless dedication is making an impact? Recognize them by nominating them for the award.

🏆 Nominations are open now through May 17.

LOUD AND CLEAR About That Player Equity Program ...

Aaron Doster-USA TODAY Sports

“It’s very confusing.”

—Jordan Spieth (above), on the rollout of the PGA Tour’s player equity program. Speaking ahead of this week’s tournament in Texas, the CJ Cup Byron Nelson, Spieth was asked about the ownership stakes [[link removed]] some golfers are receiving in the newly formed PGA Tour Enterprises, of which he was reported [[link removed]] to be getting $30 million. “It still is confusing for us players on when it’s vested, what’s the best idea for taxes. … It’s fairly complicated,” he said. The equity grants will be worth 50% of their value after four years, 75% after six years, and 100% after eight years, at which point a player would be able to sell their stakes.

While Tiger Woods was reported to be receiving $100 million of equity and Rory McIlroy $50 million, Spieth said he doesn’t know exactly how much other players are receiving, but he did say some have been surprised with how much, or how little, they’re getting. “I’ve not heard people upset with the process as much as maybe just in general the idea of if they missed out on it, and there were obviously guys excited about it, too,” he added.

STATUS REPORT Three Up, One Down

Jeff Swinger-USA TODAY Sports

Limited partners ⬆ The Mariners have added [[link removed]] new minority team owners in Microsoft vice chair and president Brad Smith and his wife, Kathy Surace-Smith. Meanwhile, a small percentage of the Bills was recently transferred to Laura Pegula, the daughter of Buffalo’s majority owners Terry and Kim Pegula, according to The Athletic [[link removed]].

Bundesliga ⬆ Germany’s top soccer flight will place [[link removed]] five teams in next season’s UEFA Champions League, up from four this year, thanks to Borussia Dortmund’s victory over Paris Saint-Germain in Wednesday’s first leg of the UCL semifinal.

American soccer ⬆ U.S. youth international player Cavan Sullivan (above), 14, has signed a historic deal with the Philadelphia Union, per The Athletic [[link removed]]. Sullivan will play for the MLS team until he turns 18, at which point he will transfer to Manchester City, which will pay up to $5 million for his rights.

Sports betting ⬇ Money spent on advertisements for legal sports wagering in 2023 decreased 21% from the year before, according to a new study [[link removed]] from the American Gaming Association.

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Conversation Starters Omaha Productions has released the first teaser for Full Court Press, a new four-episode docuseries spotlighting Caitlin Clark, Kamilla Cardoso, and Kiki Rice. Watch here [[link removed]]. After tweeting “CRY” at Islanders fans last week, the Hurricanes proceeded to eliminate New York from the Stanley Cup playoffs. Now, Carolina is selling T-shirts [[link removed]] with the same message on them and proceeds are going to the National Diaper Bank Network, which provides diapers to babies in need. As part of its new Icons series, Airbnb will offer guests a chance to stay inside the Ferrari Museum in Maranello, Italy. The package includes a bedroom, bathroom, a private tour of the museum, dinner at Cavallino restaurant, a lap around the Pista di Fiorano track, and VIP paddock area access for the Emilia Romagna Grand Prix. Check it out [[link removed]]. Editors’ Picks Charles Barkley: the Richest Free Agent in Sports TV History? [[link removed]]by Michael McCarthy [[link removed]]If TNT loses its NBA media rights, the ‘Inside the NBA’ star has an out clause. Ryan Garcia’s PED Positive Latest in Long Line of Erratic Behavior [[link removed]]by Alex Schiffer [[link removed]]Garcia stunned Devin Haney last month, but it has come out that he tested positive twice before the fight. Big 12 Commissioner Wants to Expand NCAA Tournament, College Football Playoff [[link removed]]by Alex Schiffer [[link removed]]To Brett Yorkmark, ‘More is more.’ 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]]

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