From Front Office Sports <[email protected]>
Subject FOS PM: Nike Sues Lululemon
Date January 5, 2022 9:41 PM
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January 5, 2022

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The NFL is slated to host Super Bowl LVI at SoFi Stadium in Los Angeles, but it has a backup plan if COVID restrictions in California create problems. The league has reportedly reached out to AT&T Stadium, home of the Dallas Cowboys, and Arlington officials say they’re ready to host the game if needed.

Nike Sues Lululemon for Patent Infringement

Mirror/Design: Alex Brooks

Two fitness industry giants are now ensnared in conflict.

On Wednesday, Nike filed a lawsuit against Lululemon, alleging the latter’s sale and distribution of the Mirror Home Gym and other apps constitutes infringement of “several” patents.

In the complaint, which Front Office Sports reviewed, Nike detailed its history of fitness apps and workout technology that track athletes’ performance. The Oregon-based company alleges that Lululemon is now using the same technology that it developed.

On Nov. 3, Nike sent a letter to Lululemon informing it of the claim. Lululemon refused to stop production and sale of the products.

Nike is requesting not only that Lululemon stop making these items, but that it receive damages and “profits for any continuing post-verdict infringement.”

Neither of the two companies immediately responded to requests for comment.

More Disputes

This isn’t the only time Lululemon has been embroiled in a dispute over intellectual property.

Peloton previously filed a lawsuit against Lululemon, alleging it had copied [[link removed]] apparel designs. In response, Lululemon counter-sued.

76ers and Devils Owner to Buy Real Salt Lake

Kelvin Kuo-USA TODAY Sports/Design: Alex Brooks

Philadelphia 76ers and New Jersey Devils co-owner David Blitzer has a deal in place to add another team to his portfolio: Major League Soccer’s Real Salt Lake.

Blitzer will become [[link removed]] the controlling owner of the club in a deal that also includes the Real Monarchs of the USL Championship, a Division II league associated with MLS, and Rio Tinto stadium.

Arctos Sports Partners, which recently became [[link removed]] the first private equity investor with stakes in NHL teams, is also involved in the transaction.

The deal will put Blitzer in rare territory among sports owners. In addition to the Devils and 76ers, Blitzer has equity in:

The Pittsburgh SteelersThe Premier League’s Crystal PalaceBundesliga’s FC AugsburgThe New York Yankees’ triple-A affiliate Scranton Wilkes-Barre RailRidersThe Belgian Jupiler Pro League’s Waasland-Beveren

He is also nearing [[link removed]] the purchase of a 35% stake in MLB’s Cleveland Guardians.

The Hot MLS Market

With soccer growing in the U.S., which is set to host the World Cup in 2026, MLS teams have been hot commodities as of late.

The Houston Dynamo and the NWSL’s Houston Dash were sold to Ted Segal for an estimated $400 million in May 2020, and the Wilf family, owners of the Minnesota Vikings, bought Orlando City SC, the Orlando Pride, and their stadium for between $400 million and $450 million.

The league is seeking [[link removed]] around $300 million annually in its next media rights deal.

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Intel Targets Gamers with New Graphics Chips

Intel/Design: Alex Brooks

Intel is ramping up its hardware capabilities as it expands in the gaming industry.

The company said [[link removed]] Tuesday that it has begun selling new PC gamer-focused graphics chips as it looks to challenge Nvidia in that market.

Intel has deals with Samsung, Dell, and Lenovo, among others, to offer the chips in 50 different models, the company announced at this week’s Consumer Electronics Show in Las Vegas.

The company’s new set of chips target [[link removed]] lower-end PCs which have less space and cooling capacity than other models.Intel announced a total of 22 new CPUs, largely replacing the company’s current lineup.Intel’s “Adjacent” wing of its consumer-focused segment, which includes graphics chips, earned $710 million in the fiscal quarter ending Sept. 25, 2021, down 34.6% year-over-year. The rest of the segment earned $9 billion, up 2% year-over-year. Nvidia Still Final Boss

Nvidia reported Tuesday that its newest graphic chips will be in 160 PC models on Tuesday. The Santa Clara-based company’s gaming segment made $3.2 billion in the fiscal quarter ending Oct. 31, 2021, up 41.8% year-over-year.

Last month, the Federal Trade Commission sued [[link removed]] to block a $74 billion merger between Nvidia and SoftBank-owned Arm, a chip technology company.

Conversation Starters In The Leadoff, FIFA’s president foresees biennial Euros, ONE Championship raises $150 million at a $1 billion valuation, an F1 team builds an electric prototype for Mercedes-Benz, and Fanatics struck a deal to buy Topps. Click here to listen [[link removed]]. Wasserman has agreed [[link removed]] to purchase The Montag Group, a New York-based talent agency, for an undisclosed amount. As part of the acquisition, the Montag Group will end its affiliation with Jay-Z’s Roc Nation. Alabama and Georgia are expected to pocket [[link removed]] $4.2 million of the $6 million they each earned for their appearance in the semifinal and national championship games. The SEC will keep the remaining funds, which are provided by the College Football Playoff. After Ja Morant dropped 36 points in Monday’s 118-104 road victory over the Nets, is he the best point guard in the league? It’s a bold suggestion — but the argument isn’t a stretch. Subscribe to Sports Section for more [[link removed]] on the 22-year-old budding star.

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Market Movers

U.S. stocks were mixed on Wednesday. Here’s a look at how sports-related stocks performed:

RCI [[link removed]]

Rogers Communications Inc.

[[link removed]]

$48.34

[[link removed]]

+0.37%

[[link removed]] DIS [[link removed]]

Walt Disney Co (The)

[[link removed]]

$155.23

[[link removed]]

-0.39%

[[link removed]] VFC [[link removed]]

VF Corp.

[[link removed]]

$74.18

[[link removed]]

-2.54%

[[link removed]] LYV [[link removed]]

Live Nation Entertainment Inc

[[link removed]]

$117.55

[[link removed]]

-2.63%

[[link removed]] MTN [[link removed]]

Vail Resorts Inc.

[[link removed]]

$308.34

[[link removed]]

-2.68%

[[link removed]] (Note: All as of market close on 1/5/22) Sponsored by Learn More [[link removed]] Listing of securities is not a recommendation to trade. Sponsored by Learn More [[link removed]] Listing of securities is not a recommendation to trade. What to Watch

The Golden State Warriors (29-7) face the Dallas Mavericks (19-18) tonight at American Airlines Center.

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

Betting Odds: Warriors -5.5 || ML -220 || O/U 215* ( Bet on DraftKings [[link removed]])

Pick: Expect the Warriors to build on their two-game win streak. Take Golden State to cover.

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

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

Written by Amanda Christovich [[link removed]], Owen Poindexter [[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

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