December 10, 2021

Read in Browser [[link removed]]

POWERED BY

Peloton can’t catch a break right now. The debut episode of HBO Max’s “Sex and the City” reboot released Thursday had a (*spoiler alert*) character die after a 45-minute Peloton Bike workout. Then the company’s stock hit its lowest point of the year on Friday. 📉

NHL Allows Private Equity Funding, Wild and Lightning Jump In

Dan Hamilton-USA TODAY Sports/Design: Alex Brooks

The NHL became the latest league to allow private equity firms to invest in teams — and two have already jumped at the opportunity.

Arctos Sports Partners is set to buy [[link removed]] stakes in the Minnesota Wild and Tampa Bay Lightning after the NHL’s board of governors voted Thursday to change its rules to allow for institutional investors.

The new rules [[link removed]] follow in the paths of the NBA, MLS, and MLB, which have all rewritten bylaws to allow for new ownership structures.

NHL teams can sell up to a 30% stake to private firms.Individual firms can own up to 20% of a team.Firms can have stakes in up to five NHL teams.The minimum investment required is $20 million.

The league has approved the sale of an up-to-10% stake of the Wild to Arctos, per team owner Craig Leipold. Arctos has also been approved to buy an undisclosed stake in the Lightning.

Arctos’ Sports Investments

Arctos’ flagship fund topped [[link removed]] $3 billion in October after raising $2.1 billion. The firm has a 17% stake in the NBA’s Sacramento Kings at a $1.8 billion valuation, as well as a 5% stake in the Golden State Warriors at a $5.5 billion valuation.

It also holds stakes in Fenway Sports Group and the Premier Lacrosse League.

Fertitta Entertainment Calls Off $8.6B SPAC Merger

Troy Taormina-USA TODAY Sports/Design: Alex Brooks

Houston Rockets owner Tilman Fertitta and the SPAC that was to take his company public have decided to call off [[link removed]] the merger.

Fertitta Entertainment had agreed to go public by merging with FAST Acquisition Corp. in a deal valuing the combined company at $8.6 billion. The company owns Golden Nugget Gaming and restaurant chain operator Landry’s.

The deal had an unusual number of twists and turns for a SPAC merger.

The two sides initially linked up in February on a deal that valued the combined company at $6.6 billion.It was expanded in June to include additional hospitality and entertainment companies, adding $2 billion to the company’s valuation.Earlier this month, Fertitta Entertainment sought to terminate the deal because it had not been completed by its Dec. 1 deadline. FAST sought to force the deal to go through, saying the delay was because Fertitta Entertainment had failed to produce required documents. FAST Still Looking to Deal

Fertitta Entertainment will pay up to $33 million to extract itself from the deal. Part of that sum is contingent on whether FAST goes on to merge with another company.

FAST raised $200 million in an IPO in August 2020.

SPONSORED BY TB12

Tom Brady's Favorite Gift Ideas

Looking for the perfect gift this holiday season? TB12 has a ton of great gift ideas, whether you’re looking to establish healthy habits or take your performance to the next level [[link removed]].

Tom has pulled together an assortment of his favorite gift ideas [[link removed]] – from the popular Plant-Based Protein, to vibrating pliability devices, to the best recovery gear.

TB12 [[link removed]] works for Tom – and it will work for you!

Lululemon Revenue Up Despite Mirror’s Struggles

Mary Chao/Design: Alex Brooks

Lululemon reported third-quarter earnings Thursday, posting a 30% year-over-year net revenue increase to $1.5 billion. Net income jumped from $143.6 million to $187.8 million.

Revenue in North America rose 28%, and international revenue increased 40%. The athleisure [[link removed]] company saw total sales increase [[link removed]] 27%, opening 18 new stores during the quarter for a total of 552 in operation.

Lululemon’s men’s business grew 44% [[link removed]] from the same period last year, and the company aims to double the division by 2023.

Despite the overall earnings jump, Lululemon’s $500 million acquisition of high-tech fitness [[link removed]] brand Mirror isn’t seeing the same success.

The company cut [[link removed]] its outlook for the brand’s sales to between $125 million and $130 million, a significant decline from the previous estimate of up to $275 million.A group of Lululemon employees — past and present — told Business Insider that the two brands were struggling to integrate. Mirror’s CEO Brynn Putnam resigned in September.Mirror’s machine, normally $1,495, is currently on sale for $995. Effects of COVID-19

CFO Meghan Frank says the company also continues to navigate ongoing supply chain issues with COVID-19 variants potentially leading to store closures.

Still, the company raised its revenue forecast to between $6.25 billion and $6.29 billion, up from an earlier projection of $6.19 billion to $6.26 billion.

Conversation Starters In The Leadoff, Amazon considers daily sports shows, Real Madrid secures more funding for its stadium, Vail Resorts acquires Seven Springs Mountain Resort, and the Arizona Coyotes avoid eviction. Click here to listen [[link removed]]. Amazon is interested in taking the “ManningCast” away [[link removed]] from ESPN, sources tell Front Office Sports. Magnus Carlsen defeated [[link removed]] Ian Nepomniachtchi in the FIDE 2021 World Chess Championship, winning $1.4 million for his victory. Athletes Unlimited signed a seven-figure sponsorship deal [[link removed]] with personal finance company Aspiration Financial. Lawmakers approved [[link removed]] a bill to allow online sports betting in Ohio as early as next year. Download [[link removed]] our latest white paper to learn how the Portland Trail Blazers and Florida Panthers are realizing the full potential of their fan data to maximize efficiency, revenue and so much more.*

*Sponsored Content

SPONSORED BY NIELSEN

Changing the Game of College Recruiting

In college basketball, recruiting has always been the game within the game—and the Nielsen Impact Score [[link removed]] is a game changer.

The Nielsen Impact Score is designed to quantify the marketing value [[link removed]] of attending a school through national, local, and digital reach; a key metric for prospective student-athletes factoring NIL deals and growing their personal brand into their college decisions.

Nielsen Sports Managing Director, Jon Stainer says the Nielsen Impact Score, “continues to raise the bar on the value we can bring to sports properties and brands through a data-driven approach.”

Read more [[link removed]] about how the Nielsen Impact Score is helping iconic programs like the Duke University Blue Devils share their story with student-athletes nationwide and build a foundation for long-term recruiting success.

UTA Forms $200M SPAC and Esports Funding Craze Continues

Find out exactly what’s happening in the private markets every week with highlights from our Front Office Sports Insights Deal Tracker.

We carefully monitor both public and private market data to capture a picture of what the sports landscape looks like.

Insights Deal Tracker Highlights This Week [[link removed]]:

UTA, operator of a talent management agency intended to represent esports athletes, streamers, artists, and other entertainment professionals, formed a special purpose acquisition company (SPAC) that was initially priced at $200 million. The EVERY Company, the producer of food products intended to offer animal-free proteins, raised $175 million in a Series C round led by Rage Capital. Metafy, the developer of an e-learning platform designed to provide esports education, raised $18 million in a Series A round from undisclosed investors. Vindex, developer of an esports infrastructure platform designed to help game publishers, esports leagues, and teams deliver engaging experiences to fans around the world, raised $45 million in SAFE notes and early-stage venture funding. Vault AI, the developer of a predictive analytics and marketing platform intended to provide critical audience insights, raised an $8 million Series A round led by Hearst Ventures and Pico Partners.

Try out the full Deal Tracker here [[link removed]].

Market Movers

U.S. stocks experienced gains across all three major indexes on Friday. Here’s a look at how sports-related stocks performed:

PLNT [[link removed]]

Planet Fitness Inc

[[link removed]]

$87.91

[[link removed]]

-0.29%

[[link removed]] T [[link removed]]

AT&T, Inc.

[[link removed]]

$22.85

[[link removed]]

-0.57%

[[link removed]] FL [[link removed]]

Foot Locker Inc

[[link removed]]

$44.4

[[link removed]]

-0.89%

[[link removed]] UA [[link removed]]

Under Armour Inc

[[link removed]]

$19.98

[[link removed]]

-2.01%

[[link removed]] CZR [[link removed]]

Caesars Entertainment Inc

[[link removed]]

$89.01

[[link removed]]

-2.19%

[[link removed]] (Note: All as of market close on 12/10/21) What to Watch

The Brooklyn Nets (17-8) face the Atlanta Hawks (13-12) tonight at State Farm Arena.

How to Watch: 7:30 p.m. ET on ESPN

Betting Odds: Hawks -2 || ML -130 || O/U 228.5*

Pick: Expect the Nets to bounce back from Wednesday’s loss. Take Brooklyn to cover.

Who ya got? Reply to this newsletter with your prediction for the Nets-Hawks winner and final score.

*Odds/lines subject to change. T&Cs apply. See [[link removed]] for details.

Refer Friends, Win Merch

Ready to rep your favorite newsletter? Refer your friends and colleagues to Front Office Sports and you could win FOS merchandise.

It’s easy to spread the word. Copy and paste your unique link below and share it in an email or on your timeline.

Your custom referral link:

[link removed] [[link removed]]

Or use these one-tap sharing methods:

Email [mailto:?subject=Check%20out%20the%20Front%20Office%20Sports%20daily%20newsletter!&body=This%20newsletter%20from%20Front%20Office%20Sports%20summarizes%20the%20four%20biggest%20stories%20in%20the%20sports%20business%20world%20every%20weekday...all%20in%20five%20minutes%20or%20less.+https%3A%2F%2Fsparklp.co%2F0d56433a%2F%3Futm_source%3Demail] Twitter [[link removed]] Facebook [[link removed]]

Written by Owen Poindexter [[link removed]], Abigail Gentrup [[link removed]]

MORE FROM FOS:

Sports Section [[link removed]] - Daily Sports Newsletter

The Leadoff [[link removed]] - Daily Business of Sports Podcast

Front Office Sports Insights [[link removed]] - The most promising opportunities where sports meets industry

Copyright © 2021 Front Office Sports. All rights reserved.

80 Pine Street Suite 3202 New York, NY 10005

If this email was forwarded to you, you can subscribe here [[link removed]].

Advertise [[link removed]] / Update your preferences [link removed] / Unsubscribe [link removed]

An FOS Brand [[link removed]]