Short-form video app Triller, which has grown its audience through fighting sports, is going public through a reverse merger.

Triller parent TrillerNet will buy publicly traded Seachange International Inc., a video delivery software provider, in a deal valuing Triller at around $5 billion.

The valuation is quadruple the $1.25 billion figure from Triller’s $250 million funding round in October 2020.

• Investors will pour $250 million into the company as part of the deal.
• Triller explored other avenues including a SPAC merger, a direct listing, and acquisition by a larger company.
• Bally’s explored buying Triller, as did other companies outside the sports and gaming space, sources told Front Office Sports in October.

The combined company will be called TrillerVerz Corp and helmed by Triller CEO Mahi de Silva.

A Fighting Chance

Triller says it has over 300 million active users. It launched boxing league Triller Fight Club with rapper Snoop Dogg in December 2020.

The company doubled down on combat sports with its April acquisition of Fite TV and technology company Amplify.ai. Those transactions, combined with March’s purchase of music competition platform Verzuz, totaled around $250 million.

Triller is looking to shift from pay-per-view bouts featuring celebrities and retired fighters like Mike Tyson to sanctioned title fights.

In 2019, AC Milan and Inter Milan announced plans to build a new stadium to replace the historic but antiquated San Siro. The project that will cost about $733 million.

Yesterday, the clubs settled on a design. They chose architecture firm Populous’ plan — a sprawling blueprint called “The Cathedral.”

The new stadium will be “groundbreaking in terms of innovation and sustainability,” the clubs said. Between a greenery area outside the stadium and water and electricity technology, the clubs say the stadium will be both carbon-neutral and LEED-certified.

The project will also include a pedestrian-only district “dedicated to sport and leisure.”

Populous touts a long resume with stadium development. It led plans for the main stadiums at the Sydney 2000 and London 2012 Summer Olympics, Yankee Stadium, Emirates Stadium, and Tottenham Hotspur Stadium, among others.

Upgrades Galore

The project is just one of several European soccer stadiums slated for major renovations or replacement.

• Members of FC Barcelona approved a $1.69 billion project to upgrade Camp Nou. 
• Real Madrid has been in the midst of a $700 million project to renovate the Bernabeu.

The trend also follows that of NFL stadiums in the U.S., where reports of requests for new billion-dollar stadiums continue to surface.

Under Armour and Columbia were downgraded by market analysts Stifel, highlighting the challenges facing the sports category.

Analyst Jim Duffy lowered the two brands from “Buy” to “Hold” — while lowering Nike’s price target but maintaining its “Buy” rating.

The analyst foresaw short-to-mid-term concerns limiting the upside of both brands.

• Under Armour may have elevated levels of inventory, which could encourage price cuts and promotions.
• Columbia could be impacted by warm weather and a shortened snow season.
• Both could be affected by an economy-wide drop in demand due to government stimulus money running out.

In-Person Retail Lagging

Both Nike and Under Armour have struggled to get foot traffic at their retail stores back to pre-pandemic levels. In November, both saw in-person visits fall 11.9% below the same period in 2019, according to Placer.ai, and Nike has not matched 2019 levels in any month since April.

Under Armour’s net revenues rose 7.8% year-over-year in the third quarter to $1.5 billion, with net income nearly tripling from $38.9 million the previous year to $113.4 million.

It remains to be seen if rising COVID cases in the U.S. lead to renewed interest in apparel and at-home fitness.

On Wednesday, California reimposed a mask mandate for all indoor businesses, including gyms, with certain exceptions in cases where everyone involved is vaccinated.

Less than two months after their season ended, National Women’s Soccer League players are calling for free agency.

Currently, players do not have a say in what franchise they belong to or where they’ll be traded because the league has not agreed to a collective bargaining agreement with the players. Even Alex Morgan, the third-highest-paid female soccer player as of this year, was traded last week.

• Wherever players land, earnings continue to be a concern.
• A majority of the league’s players earn less than a living wage, with about one-third making just $22,000.

Julie Foudy, former USWNT player and Angel City FC co-owner, told Business Insider she doesn’t “think it’s a survivable, viable model.”

Angel City FC will join next year for the league’s 10th season, along with San Diego FC, for a total of 12 teams.

Free Agency Outlook

Under free agency, players would be able to choose which team they play with for a certain period, similar to the WNBA and MLS versions, which both require players to play five years before entertaining other offers.

USWNT’s Ashlyn Harris, who was traded in the last few weeks, says that until the league can offer larger contracts, “free agency is important.”