June 12, 2024

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The basketball community is mourning the loss of yet another giant of the sport as the passing [[link removed]] of iconic player and executive Jerry West—widely considered to be “The Logo”—closely follows the death of Bill Walton.

In today’s newsletter: The demise of a potential merger between Paramount Global and Skydance Media raises more questions about the future of the CBS Sports parent. … The U.S. Open is ending its pursuit of offering the top prize in golf. … Kansas City mayor Quinton Lucas pleads for calm amid rising competition to be the home of a new Chiefs stadium. … A historic contract awaits MLB star Juan Soto this offseason. … Plus: More on Bank of America Stadium, USA Basketball, Puma, and cricket coverage.

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

Paramount-Skydance Merger Off: Opens Door to WBD Deal Revival [[link removed]]

Ron Chenoy-USA TODAY Sports

There won’t be a Paramount Global–Skydance Media merger after all, at least under the previously discussed terms. But the status quo for the CBS Sports corporate parent is essentially not sustainable, strongly suggesting that some type of major move for the company is still on the way.

National Amusements, the Shari Redstone family company that controls Paramount Global, confirmed late Tuesday that it will not move forward on a proposed merger with Skydance Media potentially worth $8 billion, citing an inability “to reach mutually acceptable terms.”

The potential deal with Skydance had sought [[link removed]] to bring together under one corporate umbrella a media company that has rights to the NFL, half of the men’s March Madness, several top college conferences, the WNBA, NWSL, and golf’s Masters, among other key sports assets, along with a fast-growing documentary unit behind such projects as the highly popular Kelce on Amazon Prime Video. The NFL is also an investor [[link removed]] in Skydance Media.

“[National Amusements] supports the recently announced strategic plan being executed by Paramount’s Office of the CEO as well as their ongoing work and that of the company’s board of directors to continue to explore opportunities to drive value creation for all Paramount shareholders,” the company said in a statement.

But what now? Redstone is now reportedly pursuing a straight sale of National Amusements as opposed to a merger like what had been negotiated with Skydance. But as she does that, Paramount has more than $14.6 billion in debt. And despite the extensive battery of top-tier sports rights, the company’s stock has sagged more than 23% in 2024, it has not been as active in the streaming business [[link removed]] as many of its competitors, and its linear TV business faces the same large-scale issues with cord-cutting as the rest of the industry.

“This will add to the long shadow over Paramount as yet another misstep,” wrote Wells Fargo Securities analyst Steven Cahall about the aborted Skydance deal in a note to investors. “The last six months has seen governance weakened, the CEO fired in favor of management by committee, likely internal disruption to rank-and-file morale, massive golden parachutes, and probably a lot of deal-related expenses.”

Revival of a WBD Deal?

The collapse of the Skydance talks quickly gave rise to renewed chatter, at least among some outside observers, of a potential union for Paramount with TNT Sports parent Warner Bros. Discovery. The two companies already share March Madness rights—serving for more than a decade as one of the most unique deals in sports media—and previously explored [[link removed]] a merger this past winter before Paramount moved toward the potential Skydance transaction.

There has been no official word of any renewed talks between the two companies, but both are facing their own growing pressures. WBD is already in the midst of a reconstruction [[link removed]] of its sports portfolio as it faces an uphill battle to retain coveted NBA media rights. It’s worth noting, though, that WBD has its own massive debt load of more than $43 billion and stock issues, with shares down by about a third this year—factors that could complicate any new deal between the two.

Such a merger would still establish “a TV production powerhouse, a more profitable combined studio, and provide WBD with a broadcast network,” said Loop Capital analyst Alan Gould. “However, that deal certainly could not be done under the current administration.”

U.S. Open Won’t Chase Status As Richest Purse in Golf: Here Is Why [[link removed]]

Katie Goodale-USA TODAY Sports

The U.S. Open is done trying to be the biggest purse in golf, for now at least.

This week’s winner at Pinehurst No. 2 in North Carolina will take home a record $4.3 million from a total prize fund of $21.5 million, the USGA announced Wednesday. That’s up from last year’s $3.6 million and $20 million, respectively.

While the U.S. Open purse is the largest among the major championships this year, there are still other tournaments awarding more. In March, Scottie Scheffler won the $4.5 million first-place check at the Players Championship, which had a total purse of $25 million. LIV Golf events also pay out $25 million, when factoring in the individual ($20 million) and team ($5 million) allotments.

More Money, More Problems?

During the 2010s, the U.S. Open purse was consistently the highest in golf, even if only by $1 million. That hasn’t been the case this decade, though, as the Players Championship has topped the U.S. Open each year since ’21.

During the USGA’s pre-tournament press conference, Front Office Sports asked whether there was an ambition to regain status as the richest championship in golf. “We’ll continue to monitor that,” USGA CEO Mike Whan said. “I think there’s probably some, if we went a million higher than some others, they’d just go [another] million, and I’m not really sure that’s the best answer.”

Despite the less aggressive approach, there are not any apologies in order. “We’re proud of our purse,” Whan said. “I’m proud of the fact that we as an organization consistently ask ourselves whether or not we think we’ve got our purse right, our TV [strategy] right. All of those things have changed quite a bit in the last few years, and change is uncomfortable. But I think we’re not only keeping up with the times, but hopefully at least in the landscape of majors, we’re leading.”

LIV May Get New Pathway

There are 12 LIV Golf players competing at this week’s U.S. Open who qualified via exemptions from other recent victories in major championships or open qualifying. But Whan said the USGA could soon offer additional ways for LIV members to enter the field. “We’re going to talk about it this offseason, whether or not there needs to be a path to somebody or somebodies that are performing really well on LIV that can get a chance to play in that way,” he said. “I think we are serious about that.”

SPONSORED BY CISCO

Powering the USGA Through Championship Season

In what is now its sixth season as an official partner of the USGA, Cisco [[link removed]] continues to play a critical role in powering all aspects of the organization 365 days a year.

From seamlessly deploying connected and protected networks at all USGA Championship venues to equipping the USGA’s new home at Golf House Pinehurst with top-tier modern technology [[link removed]], Cisco’s solutions are advancing the sport to ultimately benefit all fans who play, watch, and enjoy the game.

See how [[link removed]] the USGA relies on Cisco.

ONE BIG FIG Approaching Ohtani Numbers

Brad Penner-USA TODAY Sports

$482.5 million

Average projection among 28 MLB executives, agents, and insiders polled by ESPN [[link removed]] of the potential free-agent contract for Juan Soto (above). The Yankees star is due to hit the open market after the 2024 season, and he could sign a deal trailing only the Dodgers’ Shohei Ohtani in nominal value in league history, and perhaps beating that $700 million pact in present-day value given the extensive deferrals [[link removed]] for Ohtani. Soto will have just turned 26 when he reaches free agency, younger than most MLB players when they earn that status, a key factor beyond his talent helping to elevate further the heady contract expectation.

LOUD AND CLEAR Keepin’ It Real

Denny Medley-USA TODAY Sports

“Everybody needs to calm down.”

—Kansas City mayor Quinton Lucas (above), to KSHB-TV [[link removed]] and responding to growing efforts [[link removed]] in Kansas to lure the Chiefs across the border with a deal for a new stadium. Voters in Jackson County, Mo., soundly rejected [[link removed]] in April a sales tax measure to fund stadium projects for both the Chiefs and MLB’s Royals, but Lucas said he is looking to continue facility talks with both teams. “The border war was one of the most counterproductive things that this region has ever seen,” the mayor added.” Our goal long-term needs to be to grow the pie. I’m competing with Milwaukee and Minneapolis, not Mission, Kansas.”

STATUS REPORT Two Up, One Down, One Push

Jon Durr-USA TODAY Sports

Bank of America Stadium ⬇ A proposed [[link removed]] $800 million renovation of the Charlotte facility, to be primarily funded with taxpayer money, is already facing rising opposition from local citizens, according to online comments submitted to the city council and obtained by Axios [[link removed]]. In addition to a broadly rising sentiment around the country against public funding for pro stadiums, a rebuilding Panthers team and the unpopularity of team owner David Tepper are also working against the project.

USA Basketball ⬆⬇ The governing body released [[link removed]] the official women’s team for the Paris Olympics, leaving off Indiana Fever star Caitlin Clark, as expected [[link removed]]. Selection committee chair Jen Rizzotti told the Associated Press [[link removed]] that it would have been “irresponsible” to consider factors such as marketing or TV ratings as a basis for filling the roster. “It was our purview to create the best team we could,” she said.

Puma ⬆ The athletic apparel and footwear company won [[link removed]] a trademark battle against key rival Nike regarding the use of the term footware, as the European Union’s General Court upheld a prior legal victory for Puma. The loss extends what has been a tough stretch [[link removed]] for the Swoosh.

New York–area cricket fans ⬆ Following on expanded availability [[link removed]] of the ongoing ICC Men’s T20 World Cup, the YES Network has struck an agreement with cricket network Willow by Cricbuzz to air seven matches this summer of defending Major League Cricket champion MI New York.

SPONSORED BY HOKA

Racing Toward Change

In the evolving landscape of NIL, HOKA [[link removed]] is reshaping athlete-brand relationships beyond one-off deals.

The renowned athletic brand, in collaboration with Foot Locker, revitalized the USATF National Club Cross Country Championships in December, exemplifying a broader vision for a robust NIL ecosystem [[link removed]].

Unlike short-term deals, HOKA focuses on ongoing growth, mentorship, and community engagement. Examples include University of Colorado runner Kole Mathison and the mentorship between Summit High School’s Ella Hagen and triathlete Heather Jackson.

HOKA’s strategy emphasizes personal development and professional opportunities, ensuring athletes benefit beyond financial gains. By pushing the boundaries of NIL, HOKA aims to inspire the next generation and make a lasting impact on the sports world.

Read the full article [[link removed]] to delve into HOKA’s visionary approach to NIL.

Conversation Starters Jason and Travis Kelce are teaming up [[link removed]] as owners and operators of Garage Beer, where they will oversee brewing, distribution, sales, marketing, and national expansion. New York’s pop-up cricket stadium, constructed for $30 million using recycled grandstands from the Las Vegas Grand Prix, hosted its final ICC Men’s T20 World Cup match Wednesday, USA vs. India. The 34,000-seat structure will be dismantled in the coming weeks. Check it out [[link removed]]. Busy man: Tom Brady, since retiring from football, has delved into diverse ventures, including the acquisition of an electric boat racing team, confirming a $375 million deal with Fox Sports, and agreeing to buy a stake in the Las Vegas Raiders. On Wednesday night, he will be inducted [[link removed]] into the Patriots Hall of Fame. Editors’ Picks The Many Beneficiaries of Dan Hurley’s UConn Career Crisis [[link removed]]by Amanda Christovich [[link removed]]His return inadvertently helped the players, athletic department, and perhaps the conference. One Boom Season Won’t Close the Hole in the WNBA’s Balance Sheet [[link removed]]by Margaret Fleming [[link removed]]Reports say the league and teams will lose about $50 million this year. Fanatics Dives Into Ultra-Niche With G League Trading Cards [[link removed]]by Alex Schiffer [[link removed]]The company will take over the NBA license in 2025. 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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