October 24, 2024

Read in Browser [[link removed]]

POWERED BY

Endeavor has made a big move, selling its sports assets—On Location, Professional Bull Riders, and IMG—to TKO, the UFC and WWE parent company. This isn’t a simple sale, however, as Endeavor is the majority owner of TKO. We break down why this deal went down and what it means.

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

Endeavor, TKO Consolidate Sports Assets, Hoping They’re Better Together [[link removed]]

NYSE

Endeavor has made a significant move with its sports assets, striking a $3.25 billion deal to sell On Location, Professional Bull Riders [[link removed]], and IMG to TKO Group Holdings, the parent company of World Wrestling Entertainment and Ultimate Fighting Championship.

On one level, the move is simply a corporate shift from one related entity to another, as Endeavor is also the majority owner of TKO, which split off into a separate holding 13 months ago [[link removed]]. But the transaction also consolidates the company’s key sports assets in a single, publicly traded company while the rest of Endeavor continues its ongoing process, dating to last year, to become private with the aid of private equity giant Silver Lake [[link removed]].

That effort to go private stemmed in large part from a long-held frustration by Endeavor executives that the public equity markets have failed to recognize the full extent and strength of the company’s diverse business. But Endeavor now believes the sports assets will be better served, and more attractive to investors, bundled together in a larger, public holding. To that end, TKO stock, even before this transaction, is up by 57% this year.

“PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally,” TKO president and COO Mark Shapiro said in a statement. “Within TKO, they will help power the growth of our revenue streams and position us to capture even more upside from some of the most attractive parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees. These assets were already built into our business strategy at TKO.”

Growing Focus

In addition to the prior combat sports emphasis of TKO, the latest acquisitions bring that company exposure into numerous other sports, particularly the NFL and Olympics through On Location, the live experiences and hospitality company. On Location has held a dominant position in the Super Bowl ticket market [[link removed]] for many years.

The Endeavor-TKO sports deal is expected to close in the first half of 2025, subject to regulatory and shareholder approvals. Following the transaction, Endeavor will still own 59% of TKO. In addition to this deal, TKO’s board authorized a $2 billion share purchase program and a $75 million quarterly cash dividend.

“This underscores our continued focus on delivering sustainable long-term value for our shareholders,” said TKO executive chair and CEO Ari Emanuel.

There are other shifts happening within the overall Endeavor portfolio, too, as the company previously said it is seeking buyers for its sports gambling and technology businesses OpenBet and IMG Arena. Those operations do not align with the media and live events model central to the rest of the TKO assets.

With this TKO deal, both Emanuel and Shapiro have agreed to waive certain asset sale bonuses they each were entitled to potentially receive. Emanuel was previously in line for a $25 million bonus, and Shapiro was due $100 million. But those forfeitures reflect the internal nature of this overall transaction.

NBA’s Emirates Cup Features New 2024 Courts. What’s Changed? [[link removed]]

NBA

The National Basketball Association unveiled Thursday the floor designs for the second iteration of the Emirates NBA Cup [[link removed]], and while they’re just as distinctive as last year’s, there are still material changes—at least figuratively, if not literally.

As was the case last year for the event previously known as the in-season tournament, the floor designs for the upcoming Emirates Cup feature full-color motifs and no natural wood showing. Again utilizing a unified design template, the designs are aimed at creating a clear visual separation between regular-season games and these tournament matchups. That very different look became a defining element of the debut tournament [[link removed]] last year, and it is poised to be so again in 2024.

The new designs, created by artist Victor Solomon, tie in part into Nike’s NBA Statement Edition [[link removed]] alternate uniforms that will be worn by home teams during the tournament games. Road teams will wear Nike NBA Association Edition [[link removed]] uniforms. A trio of concentric circles in each individual team’s design denotes the three stages of the tournament: group play, quarterfinals, and then the semifinals and final.

But while there are clear carry-overs from a year ago, the NBA is following through on planned efforts to address issues from last year with traction on tournament floors. Several players complained those floors were overly slippery, in part because of the heavy amount of paint involved. The three-point line in Denver’s Ball Arena also needed to be reapplied [[link removed]] after it was wrongly measured for the tournament.

Following the event, won last year by the Lakers, league officials vowed to review and adjust how the floors were designed, built, and installed [[link removed]]. The league has employed a longer production runway for the second year of the tournament to help ensure quality control. The NBA also streamlined that development process, working this time with a single manufacturer, Ohio-based Robbins, one of its existing approved floor vendors.

The NBA Emirates Cup begins Nov. 12 and will run through Dec. 17, again finishing up at T-Mobile Arena in Las Vegas.

SPONSORED BY UPPER DECK

From Fan to Phenom With Anthony Davis

Front Office Sports and Upper Deck have joined forces to celebrate the nostalgia of sports, shining a spotlight on the childhood inspirations, career influences, and life milestones of the world’s most notable athletes.

NBA superstar Anthony Davis [[link removed]] grew up admiring basketball legends and dreaming of playing in the league—now, he faces off against his childhood idols.

In the latest episode [[link removed]] of Athlete Archives, Davis opens up about his journey from being a young fan to becoming one of the game’s top players, sharing personal stories about the players who shaped his path and how surreal it feels to now sign autographs himself.

Watch the full episode [[link removed]].

From Restrooms to Tech, Fans Rave About Intuit Dome Despite ‘Hassle’ [[link removed]]

Colin Salao

LOS ANGELES — Change is never easy. But for fans attending their first event at the Intuit Dome, there is no choice but to embrace it.

Everything about the fan experience at the Clippers’ new $2 billion arena [[link removed]] is new—from the facial recognition used to buy concessions, to The Wall, a 4,500-seat area exclusive to Clippers fans.

Front Office Sports spoke to several people who attended Wednesday’s Clippers home opener against the Suns—from diehard Clippers fans to visiting Suns fans—to get real-time reactions to the experience at the NBA’s newest stadium.

The New Technology

It’s nearly impossible to function around the arena without downloading the “LA Clippers + Intuit Dome” mobile app. This is where fans can scan their face to enter concessions areas and team stores, and also input their payment information to be automatically charged upon exiting those areas.

“It’s a little bit of a hassle,” said Akhil Chopra, who was visiting L.A. from Chicago. “It’s not like we’re super [techy] here.”

Ryan Q., a Suns fan living just outside Los Angeles, said he thinks the features are “cool” but said he believes his parents would struggle.

“I’d have to teach them how to do everything,” Ryan Q. told FOS.

However, both Chopra and Ryan Q. believe the features should get better as time goes along and fans adjust to the nuances. Chopra said the arena’s other tech innovations were “awesome.”

“I think it’s really fan-friendly,” Chopra said. “The activities and all that stuff, they don’t do this in Chicago. … [The Intuit Dome] is a beautiful stadium.”

The Wall

Fan zones within arenas are not new, even in the NBA [[link removed]]. But the Clippers are the first to have one take up around a quarter of the arena—and the only one where there are about 300 spots directly behind the basket in a standing-room-only area called the Supporters Section.

Reid Mitchell is one of the fans who bought a season pass to the Supporters Section—which costs $999 for all 41 games; a $24.37 rate per ticket. He cited the affordability of the tickets as one of the reasons he got it.

“I’m a very passionate fan, so I think it’s perfect for me, being able to stand—and it’s affordable to go to every game,” Mitchell told FOS. “To just be able to cheer the Clippers as they embark on this new era … I couldn’t miss being at the first season of the Dome.”

Rex Osagie, who was seated directly beside the Supporters Section, made the trip from Illinois because he wanted to witness the first Intuit Dome game in person.

“I think it’s awesome. Honestly, I think something like this sets the bar so much higher, and we’ve seen a lot of the new arenas like Chase Center in Golden State,” Osagie told FOS.

The Restrooms

Clippers owner Steve Ballmer, who was dancing around in the Supporters Section [[link removed]] during the opener, consistently bragged about the Intuit Dome having more than 1,100 toilets and urinals. He wanted fans to get back to their seats immediately.

Liam, a Kings fan, raved about how easy the restroom experience was.

“There were so many empty ones,” Liam told FOS.

STATUS REPORT One Up, Two Down, One Push

David Butler II-Imagn Images

TNT ⬆ The network’s NBA opening-night doubleheader Tuesday averaged 2.95 million viewers, up 6% from 2023, as the defending champion Celtics defeated the Knicks and LeBron and Bronny James shared court time together in the Lakers’ win over the Timberwolves.

Liberty University ⬇ A 17-game winning streak by the school’s football team was snapped Wednesday night by winless Kennesaw State, likely ending any hopes of the Flames grabbing a Group of 5 bid for the expanded 12-team College Football Playoff.

Pac-12 ⬆⬇ Oregon State and Washington State will play each other twice during the 2025 college football season in an unusual move rarely seen in the sport. It will be both programs’ first single-season home-and-home since 1945 [[link removed]], as they take unique measures to fill out their schedule before the new Pac-12 relaunches in 2026 [[link removed]].

James Franklin ⬇ The Penn State coach refused to answer questions from reporters Wednesday about two of his former players—Jameial Lyons and Kaveion Keys—who were accused of raping a 17-year-old girl in their apartment July 7. When asked about the case, Franklin walked away from the microphone, and a communications staffer explained that a statement had already been released and there would be no further comment. The two former Nittany Lions are facing multiple charges, including felony rape and aggravated assault without consent.

FRONT OFFICE SPORTS AWARDS

Recognize Your Employer

Whether it’s great leadership; focus on diversity, equity, and inclusion; or commitment to employee well-being, the Front Office Sports Best Employers in Sports Award [[link removed]] recognizes organizations that do right by their employees.

How do we determine who wins the award? We don’t—employees do! The award is based entirely on anonymous survey results from sports industry professionals.

Responses will be evaluated in collaboration with our primary research partner, Canvs [[link removed]], using patented AI technology free from all subjectivity and human bias. There is no word count limit and you can even use slang, text abbreviations, sarcasm, and emoji to complete the survey.

Less than two weeks remain to take the free 2024 employee survey! Complete the survey [[link removed]] by Nov. 6 for a chance to recognize your company as one of the best in the business.

Conversation Starters Kirk Herbstreit is traveling more than 5,000 miles for his football broadcasting duties this weekend. Take a look [[link removed]]. UConn women’s basketball head coach Geno Auriemma said it’s time to “stop the charade of student-athlete.” Listen to his comments [[link removed]]. The Eagles released video of Saquon Barkley pushing for his younger teammates to play late in Sunday’s victory, instead of chasing a rushing record. Watch here [[link removed]]. Editors’ Picks Nick Wright Signing Fox Extension, Cementing Future Face of FS1 [[link removed]]by Michael McCarthy [[link removed]]Wright is one of FS1’s biggest personalities and his show is gaining popularity. OMG: Indie Designers Cashed In on the Most Gimmicky Mets Season Ever [[link removed]]by Hannah Keyser [[link removed]]The Mets’ meme-laden season lives on well beyond their playoff run. LeBron and Bronny James Target of Lawsuit Over 2022 Car Crash [[link removed]]by Margaret Fleming [[link removed]]They made history Tuesday as the NBA’s first father-son teammates. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Events [[link removed]] Video [[link removed]] Podcast [[link removed]] Written by Eric Fisher [[link removed]], Colin Salao [[link removed]], David Rumsey [[link removed]] Edited by Or Moyal [[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