August 20, 2024

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The legal battle between FuboTV and Venu Sports may make the latter dead on arrival. Does that actually matter to parent companies Disney, Fox, and WBD?

— Eric Fisher [[link removed]], David Rumsey [[link removed]], A.J. Perez [[link removed]], and Colin Salao [[link removed]]

Legal Battle Forces Disney, Fox, and WBD to Weigh Venu’s Future Value [[link removed]]

FOS Illustration

The legal battle surrounding Venu Sports, as expected, has escalated, with a formal notice by the streaming property’s three backers to appeal a preliminary injunction [[link removed]] blocking the service’s debut. But the bigger question is still how much the bundle truly matters to Disney, Fox, and Warner Bros. Discovery.

The trio of media giants filed its notice of appeal late Monday against FuboTV, and is now taking the antitrust case to the U.S. Court of Appeals for the 2nd Circuit.

“We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction,” the companies said. “Venu Sports is a pro-competitive option that aims to enhance consumer choice.”

Corporate Priorities

Despite that legal move, industry chatter continues to rise as to whether Venu Sports will actually see the light of day and, if it does, how meaningful it will really be. Long before U.S. District Court Judge Margaret Garnett issued her ruling, Disney CEO Bob Iger made clear that Venu Sports was only one component of a much larger corporate strategy to embrace streaming and navigate broader media industry disruption.

In particular, Iger has frequently discussed plans [[link removed]] to introduce a stand-alone, direct-to-consumer version of the flagship ESPN network in the fall of 2025, an effort that is a major initiative for all of Disney.

“That will be a very, very immersive—and obviously sports-centric—app, which will have features that this combination with Fox and Warner Bros. Discovery will not have, such as integrated betting, integrated fantasy … [and] merchandise capabilities,” Iger said in February of the forthcoming DTC version of ESPN.

During recent earnings calls, executives from WBD and Fox offered more overt support for Venu Sports, with WBD CEO David Zaslav calling it something that “will appeal to cord-cutter and cord-never fans not currently served by existing pay-TV packages.” Fox CEO Lachlan Murdoch, meanwhile, reiterated a somewhat modest projection [[link removed]] of five million subscribers for the service by 2029.

But both WBD and Fox are smaller than Disney, in terms of revenue, and WBD’s TNT Sports is particularly in the midst of reconstituting its sports portfolio after the NBA did not renew its rights deal with the network. Those factors give Venu Sports a larger profile within those companies. The service will also primarily rely on backend technology from Fox.

The Winning Streak Continues

FuboTV’s stock, meanwhile, continued its strong market rally since Garnett granted the injunction against Venu Sports.

After rising 17% on Friday [[link removed]], and another 17.6% on Monday [[link removed]], shares in the streaming company increased an additional 7.8% on Tuesday to reach $1.94 per share. The stock is now trading at its highest levels since the end of February.

Court Sides With the NFL Again in $14 Billion Sunday Ticket Lawsuit [[link removed]]

Kirby Lee-USA TODAY Sports

With football season right around the corner, the high-profile, $14 billion NFL Sunday Ticket lawsuit that played out over the summer continues to take twists and turns in court.

On Tuesday, U.S. District Court Judge Philip Gutierrez made a final judgment [[link removed]] in favor of the NFL on all accounts, and the plaintiffs are now expected to file a motion to reconsider ahead of taking the case to the U.S. Court of Appeals for the 9th Circuit, a step below the Supreme Court.

Gutierrez, on Aug. 1, had overturned a jury verdict [[link removed]] ordering the NFL to pay $4.7 billion, which would have been tripled under antitrust law [[link removed]]. On Monday, the plaintiffs filed an objection [[link removed]] to the NFL’s proposed order that asked Gutierrez to terminate claims for injunctive relief.

In simpler terms, the league didn’t want to have to make changes to how it distributes NFL Sunday Ticket, in addition to not paying out any damages. But the plaintiffs were arguing that the NFL should have to make some operational changes, even if it doesn’t pay damages. Gutierrez, who is retiring in October, has once again sided with the NFL.

Money Game

Google, which is not part of the controversial lawsuit, is entering its second season with NFL Sunday Ticket rights, at a cost of $2 billion annually.

YouTube and YouTube TV, both owned by Google, are offering more customizable multiview streaming options [[link removed]] this season, which figures to be a popular addition [[link removed]] among subscribers.

The base price of Sunday Ticket increased by $30 this month, up to $379 for YouTube TV subscribers, and $479 for the à la carte option. Sunday Ticket subscriptions are also now available to purchase via the Apple App Store—but at a higher rate of $680. Apple takes a 30% cut of purchases made through its app store.

Apple users can still choose to purchase a Sunday Ticket subscription with a Google account for the cheaper price and use the same YouTube or YouTube TV app on their Apple devices.

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ONE BIG FIG Follow the Cash

John David Mercer-USA TODAY Sports

$825,000

The new annual salary [[link removed]] for Alabama football’s general manager, Courtney Morgan. The three-year contract represents a record for a college GM, and pays Morgan similarly to a top-tier position coach. Morgan’s initial contract, which was finalized in February after he followed head coach Kalen DeBoer from Washington, paid $500,000 per year, but overtures from USC prompted the Crimson Tide to redo his deal just six months into it.

STATUS REPORT Three Up, One Down

Susan Mullane-USA TODAY Sports

Pickleball ⬆ Jannik Sinner and Novak Djokovic (above), the top two male tennis players in the world, respectively, are dropping their rackets for paddles and facing off at The Head NYC Mash Up on Thursday. Djokovic, who has won 24 Grand Slams in tennis, said in July at Wimbledon that tennis is “endangered” [[link removed]] due to the rise of sports like padel and pickleball. “If we don’t do something about it, as I said, globally or collectively, padel, pickleball in [the] States, they’re going to convert all the tennis clubs into padel and pickleball because it’s just more economical,” Djokovic said. The exhibition will also be Sinner’s first appearance after he was found to have “no fault” despite twice testing positive for a banned substance, according to The Athletic [[link removed]].

NASCAR ⬇ The FireKeepers Casino 400 at the Michigan International Speedway was delayed due to rain. When the race resumed Monday, thousands of people were stuck outside the gates and appeared to have missed the start of the race [[link removed]].

USMNT ⬆ The team will play a friendly on the road against Mexico at the Estadio Akron in Guadalajara on Oct. 15. It’s the first friendly between the two sides played in Mexico since 2012. It’s also expected to be the first game with Mauricio Pochettino [[link removed]] at the helm.

Coya ⬆ The training and performance app, backed by Texas Rangers minority owner [[link removed]] Zulu Assets, has hit the market after a prior soft-launch period. The company combines wearable biometrics and personalized one-on-one coaching. But it has a rather different business model as it is based on developing custom, 10-week programs before allowing users to depart with information to develop better health and wellness habits.

FRONT OFFICE SPORTS EVENTS

Added to the Lineup: Collier of Roku

Join Front Office Sports on Sept. 10 in NYC as we bring to life our inaugural Tuned In [[link removed]] sports media summit.

Led by senior media reporter Mike McCarthy, Tuned In will feature engaging discussions with leaders within the sports media space—ranging from athletes and on-air talent, to media moguls and league executives who are instrumental in shaping the future of how fans view sports.

Enjoy intimate conversations with industry newsmakers, such as Charlie Collier of Roku Media, while we unpack emerging topics from sports betting and athletes-turned-media moguls, to streaming, media rights, and more.

In addition to your participation in these top tier conversations, your ticket will include premium networking opportunities, lunch, and a post-event cocktail hour.

Tickets are going fast— reserve your seat [[link removed]] now.

Conversation Starters Women’s hockey star Amanda Kessel has established a career off the ice, and she just received a promotion [[link removed]?] to be the manager of minor league operations for the Pittsburgh Penguins. Her brother Phil played for the Penguins from 2015 to 2019. Former Pro Bowler Adewale Ogunleye told FOS at the Huddle in the Hamptons event [[link removed]] which football stadiums have the best atmospheres. The Backyard Sports video game franchise is making a comeback, and it just dropped a trailer. Check it out [[link removed]]. Editors’ Picks Adidas Wins Court Battle With Investors Who Say They Should’ve Been Warned About Kanye West [[link removed]]by Margaret Fleming [[link removed]]A federal judge said the company did not commit securities fraud. NFL Sunday Ticket Is Fixing Its Biggest Product Flaw This Season [[link removed]]by David Rumsey [[link removed]]Multiview will now be much more customizable. Warriors Coach Steve Kerr Endorses Harris in Unusual DNC Speech [[link removed]]by Alex Schiffer [[link removed]]The Warriors coach invoked Stephen Curry and talked about leadership. 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]], A.J. Perez [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

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