September 30, 2024

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The two biggest U.S. satellite-TV companies are set to join forces. They have wildly different approaches to sports packages, opening up new questions. But one familiar element is a private equity company’s role in the satellite deal, just as the role of institutional investors in the sports world continues to grow.

— Eric Fisher [[link removed]], David Rumsey [[link removed]], and Colin Salao [[link removed]]

DirecTV Acquires Dish Network, Backed by PE Surge Across Sports [[link removed]]

News-Journal

There is a new market leader in the U.S. pay-TV business, and it will be controlled by private equity—mirroring the rapid advance of that industry across sports [[link removed]].

As expected in recent days [[link removed]], DirecTV reached an agreement Monday to acquire satellite-TV rival Dish Network from that provider’s corporate parent, EchoStar Corp. The deal—for just $1 and assumed debt of about $9.8 billion—will create by far the country’s top TV distributor with nearly 20 million subscribers. The pact also includes Dish Network’s streaming entity, Sling TV.

A key part of the overall set of pacts will also involve private equity giant TPG Inc., previously a 30% equity partner in DirecTV, buying out the majority shares in the company held by AT&T for $7.6 billion.

“With greater scale, we expect a combined DirecTV and Dish will be better able to work with programmers to realize our vision for the future of TV,” said DirecTV CEO Bill Morrow.

Closing of the deals is targeted for late 2025, subject to various regulatory and shareholder approvals, though TPG’s takeover of DirecTV is not contingent on the Dish Network acquisition.

Desperate Times

The DirecTV–Dish Network agreement completes a contemplation of a merger that goes back more than two decades and was scuttled by federal regulators in 2002. The current pay-TV market, however, is very different from what existed more than a generation ago, most notably through the rise of streaming and major players there such as Netflix and Amazon Prime Video. As a result, securing regulatory approval is expected to be a much easier process than before.

At least in the short term, DirecTV and Dish Network will be operated as separate brands, even as the combined company is based at DirecTV’s current headquarters in El Segundo, Calif. But the combined entity is expected to have greater negotiating strength with programmers and will be seeking an ability to construct more tailored packages for subscribers, in line with what DirecTV just did with ESPN parent company Walt Disney Co. [[link removed]] Given the dominance of sports across the entire U.S. television industry [[link removed]], sports figures to be a key element of that customization.

The merger deal, meanwhile, gives a critical lifeline to the Charlie Ergen–led EchoStar, which has amassed more than $20 billion in overall debt, and will also get refinancing help from TPG to help with its restructuring. That hefty amount of debt helps explain the nominal purchase price for DirecTV.

“It’s hard to argue that a merger shouldn’t happen; it clearly should,” MoffettNathanson principal analyst Craig Moffett wrote in a note to clients. “Consolidation during a period of secular decline is always to be expected.”

Hurricane Helene: Augusta National Hit, Sports Owners Donate Millions [[link removed]]

Michael Madrid-Imagn Images

As communities across the southern U.S. try to recover from the damage caused by Hurricane Helene, one of the most renowned venues in sports is doing the same.

Augusta National Golf Club, home of the Masters each April, was in the path of the storm after it made landfall, and appears to have sustained significant damage. One drone video [[link removed]] of the iconic Magnolia Lane, the road by which golfers enter Augusta National, shows several fallen trees near a practice area and the clubhouse. Another photo [[link removed]] shows fallen trees at one of the many grass parking lots surrounding the golf course.

Augusta National chairman Fred Ridley addressed the situation Saturday. “Our Augusta community has suffered catastrophic and historic impact from Hurricane Helene,” he said in a statement. “We currently are assessing the effects at Augusta National Golf Club. In the meantime, our focus and efforts are foremost with our staff, neighbors, and business owners in Augusta. Our thoughts and prayers are with them as well as everyone throughout Georgia and the Southeast who have been affected.”

The course has been closed since May, for its annual break before typically reopening in October. While repairs inside Augusta National could be costly, it would be hard to imagine the 2025 Masters would be impacted in any way at this point.

Lending a Hand

In response to damage from the wide-reaching storm, many professional sports teams owners and their various charitable foundations have pledged millions of dollars to relief efforts. So far, at least $9 million has been committed from franchises in Florida, Georgia, North Carolina, and Texas:

Panthers, Charlotte FC (The Tepper Foundation): $3 million Falcons, Atlanta United (Arthur M. Blank Family Foundation): $2 million Lightning (Lightning Foundation, owner Jeff Vinik): $2 million Buccaneers (Glazer family): $1 million Texans (team chair and CEO Cal McNair): $1 million

The NFL Foundation, the league’s philanthropic arm, is also donating $1 million to relief efforts. All four NFL teams mentioned above played home games Sunday as originally scheduled.

More Hurricane Impact

After Hurricane Helene last week led to the controversial postponement of the final two games of the Braves-Mets series [[link removed]], more sporting events were impacted over the weekend.

Appalachian State canceled its home football game scheduled for Saturday against Liberty. East Tennessee State beat the Citadel 34–17 in Charleston after the Saturday game was pushed back three hours to 5 p.m. ET. Road closures in the Carolinas delayed ETSU’s arrival by 12 hours [[link removed]], with the football team getting to Charleston at 4:30 a.m. ET. The Citadel declined a request from ETSU for the game to be postponed until Sunday due to other on-campus event conflicts.

UNC Asheville has suspended all classes until Oct. 9, and the athletic department posted a message on social media Monday morning that its staff was safe, with more details about upcoming games coming soon.

In the NHL, the Predators postponed their home preseason game against the Lightning, which had been scheduled for Friday night.

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Join the Mastercard Small Business Community

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Guacamole by Freddie recently participated in Foodies & Fairways [[link removed]], a program in collaboration with Capital One Business that allows local food businesses to sell their signature meals at golf tournaments across the country and receive other tools and benefits. Sign up for the Mastercard Small Business Community [[link removed]] to access the latest resources and support to protect, manage, and grow your own business.

TUNED IN Teton Ridge CEO on ‘Rabid Fan Base,’ Rodeos, and Barstool Formula

FOS illustration

Teton Ridge CEO Deirdre Lester sat down with Margaret Fleming at the Front Office Sports Tuned In [[link removed]?] summit to discuss building a media network for Western sports, the business opportunities in rodeo, and what she previously learned working at Barstool Sports as that media company’s chief revenue officer.

Watch the full interview here [[link removed]].

STATUS REPORT Two Up, One Down, One Push

Kirby Lee-Imagn Images

Chiefs ⬆⬇ The back-to-back Super Bowl champions defeated the Chargers on Sunday to move to 4–0 but lost wide receiver Rashee Rice early in the game to a knee injury the team fears may be a season-ending torn ACL [[link removed]]. Kansas City had already lost running back Isiah Pacheco and wideout Marquise “Hollywood” Brown to injury. With Patrick Mahomes and Travis Kelce still healthy, however, the Chiefs should still be a Super Bowl contender and maintain their status as the NFL’s biggest television draw [[link removed]].

Amazon Prime Video ⬆ The streamer’s record NFL audience [[link removed]] for the Cowboys’ 20–15 victory over the Giants on Thursday night is even higher than first reported. Last week, Amazon announced an average of 16.22 million viewers watched the broadcast, making it the most-streamed regular-season NFL game in history, and the highest Thursday Night Football audience since Prime Video took over the package in 2022. But new data from Nielsen released Monday puts the Cowboys-Giants viewership number at 17.6 million. That figure is just under the NFL’s 17.9 million per-game average regular-season viewership across all networks in 2023 [[link removed]].

Wimbledon ⬆ The All England Lawn Tennis & Croquet Club’s long-discussed expansion plans [[link removed]] have received final approval from the Greater London Authority [[link removed]]. Up to 39 more courts could be built by 2030, which would allow Wimbledon to hold qualifying for the tennis Grand Slam on-site, instead of elsewhere in London as it does currently.

Women’s Super League ⬇ A Manchester United–Chelsea match in the U.K.’s top women’s flight scheduled for Oct. 6 was postponed with just a week’s notice after UEFA on Saturday announced a Chelsea–Real Madrid Women’s Champions League match Oct. 8.

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Tee Off With Taste at the TOUR Championship

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This year’s TOUR Championship in Atlanta wasn’t just about world-class golf—it was also a celebration of local flavors [[link removed]].

Mastercard’s Foodies & Fairways [[link removed]] program in partnership with Capital One Business highlights the city’s dynamic culinary scene, featuring small businesses like Guacamole by Freddie and T’s Coffee & Brews. This unique experience offered fans a chance to savor the city’s best while witnessing top golfers in action.

With mentorships and $10,000 grants on the line, these businesses showcased their creations at The Landing, adding a delicious twist to the championship experience. Plus, get the scoop on other local East Lake staples like Poor Hendrix.

Learn more [[link removed]] about Mastercard’s Foodies & Fairways and the fusion of sport and cuisine by signing up for the Mastercard Small Business Community [[link removed]] to access the latest resources and support to protect, manage, and grow your business.

Conversation Starters For the Cubs’ final home game of the season, outfielder Ian Happ bought beers for fans at Wrigley Field [[link removed]] to thank them for their support. Red Sox Hall of Fame broadcaster Joe Castiglione signed off for the last time after 42 years of calling games. Check it out [[link removed]]. U.S. tennis stars Frances Tiafoe and Ben Shelton told Front Office Sports what their most random purchases have been with prize money. Take a look [[link removed]]. Editors’ Picks The Clippers Will Run the Only Bar in California Open Until 4 a.m. [[link removed]]by Margaret Fleming [[link removed]]Alcohol is illegal past 2 a.m. Not in Steve Ballmer’s arena. How Karl-Anthony Towns’s Trade to New York Got Delayed in Serbia [[link removed]]by Alex Schiffer [[link removed]]The blockbuster trade has yet to be made official. The Padres’ Future Is on the Line This Postseason [[link removed]]by Owen Poindexter [[link removed]]The MLB playoffs could determine the team’s path forward. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Events [[link removed]] Video [[link removed]] Podcast [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

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