The next battle for sneaker brand placement is taking place inside the metaverse.

Both Nike and Adidas have established digital properties and key partnerships as they look to establish a presence in popular virtual environments. 

Nike took steps to vertically integrate its production of NFTs and other digital goods on Monday with the acquisition of RTFKT, which produces NFTs, sometimes paired with a physical collectibles such as sneakers.

Nike filed trademarks for its signature swoosh logo and “Just Do It” slogan in digital forms and environments in October. 

Adidas made a similar move earlier this month by linking with popular NFT collection Bored Ape Yacht Club. The partnership includes PUNKS Comic, which combines NFTs with physical comic books, and crypto/NFT influencer gmoney NFT.

Trillion-Dollar Opportunity

• In November, Adidas announced a partnership with cryptocurrency exchange Coinbase, without providing further details.
• Just prior to that, metaverse company The Sandbox revealed that Adidas had purchased a plot of virtual land.
• Nike has its own virtual space within Roblox — called NIKELAND — where users can play games and check out products.

Estimates for the metaverse’s economic impact range from $1 trillion, according to investor Grayscale, to Epic Games CEO Tim Sweeney’s prognostication of a “multi-trillion part of the world economy.”

Major League Soccer’s eight-year broadcasting rights deals with Disney’s ESPN, Fox, and Univision expire at the end of the 2022 season.

As it considers new contracts, the league will be able to use its rising viewership as collateral to negotiate for a much higher payday — it currently receives $90 million per year. 

More than 12 media companies have reportedly expressed interest already, including Amazon, Apple, WarnerMedia, and ViacomCBS. 

The league moved from the 13th-most popular league in 2019 to the seventh-most popular this year, according to a survey by MoffettNathanson.

• In 2021, national MLS broadcasts grew 3% from 2019 to an average of 285,000 viewers per game across Fox, Disney, and Univision.
• Midseason, ABC/ESPN reported that year-over-year viewership rose 50%, Fox/FS1 increased 14%, and Univision/UniMas grew 21%. 

MLS also reportedly has the youngest fan base in North American pro sports.

Future of MLS

Previously, MLS sold its broadcasting deals for local, national, and international audiences separately, but will look to bundle them in one package going forward.

The league is also aiming to lock down a 30th team in the next 10 months. Two other teams begin play in 2023; another new addition would start after that season.

Google is trying to work out a new deal with Disney for YouTube TV, but time is running out.  

YouTube TV notified users that it could lose ESPN, ABC, FX, and other Disney channels — including the SEC and ACC networks. 

YouTube’s parent company, Google, is negotiating a new deal with the Mouse as its current agreement ends Dec. 17.

The pair have yet to reach an “equitable” deal, according to YouTube. The company’s statement asked Disney and its other partners to “treat YouTube TV like any other TV provider,” specifically when it comes to rates.

Previous Carriage Issues

Disney isn’t the only company that’s struggled to reach a deal with Google.

• In October, YouTube TV had to agree on a “short” extension with NBCUniversal to keep NBC channels, including regional sports networks, on the service. 
• Last week, Google struck a “multiyear extension” with streaming platform Roku to continue its distribution of YouTube TV, but only one day before the app would have been pulled from Roku.

YouTube TV plans to reduce its monthly fee from $65 to $50 if the two sides are not able to reach an agreement.

Disney, which offers a streaming bundle that includes Disney, Hulu, and ESPN+ for $13.99 each month, emphasized its commitment to the renewal.

Chicago is close to allowing in-person sports betting at professional sports stadiums — with help from some of the city’s most notable sports figures. 

An ordinance with support from Cubs chairman Tom Ricketts, Blackhawks owner Rocky Wirtz, and White Sox and Bulls owner Jerry Reinsdorf has been approved by Chicago’s City Council Joint Committee on Licensing and Zoning.

Despite the approval, integrating in-person sports betting at venues has faced criticism due to concerns of the viability of Chicago-based casinos amid increased competition.

Soldier Field Plans

Chicago’s willingness to implement in-person sports betting at professional sports venues has also impacted the Chicago Bears and the team’s desire to build a new stadium. 

• The Bears, who have called Soldier Field home since 1971, signed a purchase agreement in September for the Arlington International Racecourse property in a deal valued at $197.2 million. 
• The benefits of the Arlington site include an option to have an enclosed stadium and a sports betting lounge. 
• Bears president Ted Phillips stated that the Chicago Park District has refused “to engage in good-faith discussions” about integrating sports betting opportunities at Soldier Field.

Illinois, which requires in-person registration to wager on sports, has reported $556 million in sports betting revenue with a total handle of $7.3 billion since March 2020 — when it became legalized in the state.