Nike is reportedly conducting a full review of its media accounts, inviting a host of major ad and media agencies to compete for their portion of around $1 billion.

The process, which Nike hasn’t conducted at this scale in more than 10 years, is only just beginning and is expected to run until spring. 

Nike uses a variety of agencies across different global markets, each of which will have to justify its role as a partner of The Swoosh. Jordan Brand’s media is also up for review, but Converse‘s is not.

• Nike has requested information from GroupM, Omnicom Media Group, Dentsu Media, Publicis Media, IPG Mediabrands, Stagwell Media, and Havas Media. Requests for proposals are expected to begin next year.
• Nike’s ad and promotional expenses reached $3.1 billion in fiscal 2021, down 13% year-over-year due to pandemic-related cutbacks.
• Of that sum, $245 million was spent on media, according to research firm COMvergence, primarily in the Asia Pacific region ($120 million) and North America ($95 million). 

Metaverse Ambitions

Nike is looking more toward digital environments to build its brand: On Monday, it announced the acquisition of NFT fashion and collectibles maker RTFKT. 

Last month it launched Nikeland, a virtual space within Roblox in which users may play games, check out products, and socialize.

La Liga has inked its longest broadcasting rights deal ever — a five-year agreement split by DAZN and Telefónica’s Movistar. The pair will each air five matches per week.

The deal, worth $5.58 billion, starts in the 2022-23 season and ends Movistar’s run as the league’s main domestic broadcaster. 

Telefónica’s current three-year deal with the league is worth roughly $3.32 billion. Despite the number of pay-TV subscriptions falling by 4 million since the 2016-17 season, the new deal is a slight annual increase from $1.1 billion to $1.12 billion per season. 

While the deal’s annual increase is small, the jump shows La Liga’s strength compared to its counterparts.

• Serie A, Ligue 1, and Bundesliga’s domestic broadcasting deals signed in the last year all saw a decrease in value.
• The Premier League rolled over existing deals with the same terms.

Interest In La Liga

In May, La Liga reached an eight-year broadcasting deal with ESPN. In July, Orange, a French telecom company, renewed its sublicensing agreement with Telefónica for rights to La Liga and UEFA club competitions in a $356 million deal.

This month, La Liga also ratified its agreement with CVC Capital Partners in which the equity firm would spend $2.3 billion for an 8.2% stake in a new company that would oversee the league’s media rights. The deal was approved by 37 of 42 teams.

Global investment firm Silver Lake Partners has acquired a 33.3% stake in the Australian Professional Leagues for roughly $100 million, valuing the business at $303 million. 

The deal, which has received regulatory approval, marks the largest ever single-cash injection into Australian club soccer. 

The A-Leagues — which oversee Australia’s top-flight men’s and women’s soccer clubs — will use the funds to support growth and build a fan-centric digital media platform.

Previous Sports Investments 

Silver Lake has $90 billion in assets under management and committed capital, and its portfolio of brands collectively generate more than $227 billion in annual revenue. 

The investment firm has established a notable footprint in sports. 

• It purchased a 10% stake in Manchester City owner City Football Group for $500 million in 2019.
• The firm participated in a $325 million investment round for Fanatics in August, valuing the merchandiser at $18 billion.
• In September, it bought a stake in Pro Football Focus for $50 million, giving the analytics platform a nine-figure valuation.  

Silver Lake has expressed interest in buying a stake in the commercial operations of New Zealand’s All Blacks rugby team.