January 24, 2022

Read in Browser [[link removed]]

POWERED BY

The Los Angeles Rams told ticket seekers that public sales for Sunday’s NFC Championship Game against the San Francisco 49ers will be restricted to residents of Greater Los Angeles. Not surprising given that the last time the teams met at SoFi Stadium, it looked like a Niners home game.

Peloton Shareholder Calls For CEO Removal, Sale

Peloton/Desjgn: Alex Brooks

Peloton shareholder Blackwells Capital has sent a letter to the fitness company’s board of directors calling for the removal of CEO, chairman, and co-founder John Foley over concerns about the company’s performance.

With a stake under 5%, alternative investment management firm Blackwells Capital also wrote [[link removed]] that the board “must consider selling the company to a strategic acquiror.”

The letter emphasized Peloton’s failure to act on opportunities in the market presented by the pandemic, giving a multitude of examples.

The company’s stock is below its IPO price and down more than 80% from its high.In the last year, Peloton underperformed every other company in the Nasdaq 100. In Q1, Peloton recorded [[link removed]] a $376 million net loss compared to a net gain of $69.3 million the year prior.Shareholders have lost nearly $40 billion in wealth while Foley has received more than $115 million from regularly selling stock.

Blackwells Capital attributed Peloton’s position to “high fixed costs, excessive inventory, a listless strategy, dispirited employees, and thousands of disgruntled shareholders.”

Potential Sale

The firm also detailed the benefits of a sale, specifying the company’s attraction to “any number of technology, streaming, metaverse, and sportswear companies.” It listed Apple, Disney, Sony, and Nike as examples.

Peloton recently hired McKinsey & Co. to evaluate its costs and business. A recent CNBC report [[link removed]] said the company was halting production and reviewing its workforce. The claim was later refuted by Foley.

According to The Wall Street Journal, Foley and other insiders control [[link removed]] more than 80% of the company’s voting power.

KKR Buying Cycling Company for $1.8B

Accell Group/Design: Alex Brooks

KKR & Co. is betting on the cycling boom going the distance.

The private equity firm is buying [[link removed]] Dutch bike maker Accell Group NV for $1.8 billion. The price represents a 26% premium on Accell’s closing price as of Friday. The company’s stock leapt around 26% on Monday.

Accell, a leading European e-bike producer, lists 20 brands based in five European countries under its umbrella.KKR plans to take Accell private.The deal, which is expected to close in the third quarter, received unanimous support from Accell’s board.

While the cycling market has been riding high since the start of the pandemic, electric bikes are doing especially well. U.S. e-bike sales rose [[link removed]] 240% year-over-year for the 12 months ending July 2021, compared to 15% growth to $8.5 billion for cycling equipment revenue.

KKR Staying Active

Meanwhile, KKR’s bid for Telecom Italia was complicated [[link removed]] by the appointment of Pietro Labriola as the Serie A broadcast rights holder’s new CEO. The attempted purchase of Italy’s largest telecommunications company could also be affected by the political situation, should Prime Minister Mario Draghi be replaced.

A KKR-owned SPAC could [[link removed]] take PetSmart public in a $14 billion deal.

SPONSORED BY DRAFTKINGS

Set Your NFL Conference Championships Picks

The playoffs [[link removed]] are in full swing, and there’s never been a better time to join the action. Enjoy can’t-miss offers, an easy-to-use interface, and more when you play daily fantasy sports on DraftKings.

Why DraftKings [[link removed]] Daily Fantasy Football?

New customers play free [[link removed]] for over $1M in prizes each week during the playoffs Compete against your friends or other users for big prizes Draftkings is THE place to sweat daily fantasy sweat. Daily. Weekly. By game. By quarter.

Download the app [[link removed]] and make your picks!

NY Mobile Sports Betting Could Break $1B In First Month

Kimberly P. Mitchell/ Design: Alex Brooks

The first several days of legal sports betting in New York have already seen record numbers — and the state is on track to break $1 billion in bets in its first month.

New Yorkers bet $603.1 million between Jan. 8-16 using four mobile sportsbooks, according to the New York State Gaming Commission. The gross gaming revenue between the four operators — Caesars, FanDuel, DraftKings, and BetRivers — topped $48 million.

The state is on track to reach or top the current [[link removed]] monthly record, held by New Jersey, which logged $1.3 billion in October.

The trend follows a massive [[link removed]] opening weekend of $150 million.

Raking in Taxes

Betting operators and fans weren’t the only ones to cash in — New York State did, too.

New York’s tax rate on betting revenue is 51%, meaning the state has already made $24.6 million — more than any other state, according [[link removed]] to PlayNY.The record was previously held by Pennsylvania, which made $23 million in November.

With the launch of BetMGM on Jan. 17 and pending launches of other sportsbooks, the numbers could continue to climb. The state of New York could make $249 million this year and over $100 million more in 2023. By 2027, $518 million could pour in annually.

Conversation Starters In The Leadoff, Liberty Media is the world’s largest sports empire, U.S. sports betting surpassed $52 billion in 2021, some universities are piling up millions in debt to compete, and D1 Capital Partners leads a $32 million funding round for a fantasy sports platform. Click here to listen [[link removed]]. FuboTV has acquired exclusive U.S. rights [[link removed]] to select UEFA matches through a six-year sublicense with Fox Sports. The deal will begin in June with the UEFA Nations League. Los Angeles Chargers chairman Dean Spanos has been sued [[link removed]] by two of his nephews. They allege Spanos secretly diverted money in 2018 from a family trust that owns 36% of the NFL team. As if Kansas City Chiefs quarterback Patrick Mahomes’ first five years in the NFL haven’t already confirmed his GOAT potential, Sunday’s game-tying drive with 13 seconds left just made it emphatically clear. At only 26-years-old, it’s reasonable to wonder if he can eventually challenge Tom Brady [[link removed]] as the greatest postseason QB ever. Subscribe to Sports Section [[link removed]] for more on Mahomes and the Chiefs.

IN PARTNERSHIP WITH KAULIG RACING

Sportsman, Entrepreneur and Philanthropist

Meet Matt Kaulig.

From starting LeafFilter in his basement, to establishing a winning race team, Kaulig has continually developed new ventures that flourish.

Starting with a Cup car sponsorship in 2014, Kaulig decided to build his own racing team from the ground up in 2016. Through their passion, commitment and competitiveness, Kaulig Racing [[link removed]] has fifteen wins, including his first NASCAR Cup series win at Indy in 2021.

Along with his reputation of being a successful entrepreneur, Kaulig has emerged as a mega-donor and philanthropist. Much of Kaulig’s philanthropic work is focused on the well-being and health of children. Kaulig Giving [[link removed]] has given to over 150 501c3 organizations.

Learn more about Matt Kaulig and his network of brands [[link removed]].

Market Movers

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

LYV [[link removed]]

Live Nation Entertainment Inc

[[link removed]]

$107.58

[[link removed]]

+0.07%

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

Vail Resorts Inc.

[[link removed]]

$282.86

[[link removed]]

+3.29%

[[link removed]] CWH [[link removed]]

Camping World Holdings Inc

[[link removed]]

$33.73

[[link removed]]

+6.57%

[[link removed]] ELY [[link removed]]

Callaway Golf Co.

[[link removed]]

$25.14

[[link removed]]

+8.13%

[[link removed]] SGMS [[link removed]]

Scientific Games Corporation

[[link removed]]

$59.01

[[link removed]]

+8.35%

[[link removed]] NLS [[link removed]]

Nautilus Inc

[[link removed]]

$4.98

[[link removed]]

+10.18%

[[link removed]] (Note: All as of market close on 1/24/22) What to Watch

The Texas Tech Red Raiders (15-4) face the Kansas Jayhawks (16-2) on Monday at Allen Fieldhouse.

How to Watch: 9 p.m. ET on ESPN

Betting Odds: Kansas -6.5 || ML -290 || O/U 139.5* ( Bet on DraftKings [[link removed]])

Pick: Expect the Red Raiders to keep things close. Take Texas Tech to cover.

Who ya got? Reply to this newsletter with your prediction for the Texas Tech-Kansas winner and final score.

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

Written by Abigail Gentrup [[link removed]], Owen Poindexter [[link removed]], Amanda Christovich [[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 © 2022 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]]