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.
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Peloton/Desjgn: Alex Brooks
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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 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 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 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 more than 80% of the company’s voting power.
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Accell Group/Design: Alex Brooks
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KKR & Co. is betting on the cycling boom going the distance.
The private equity firm is buying 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 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 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 take PetSmart public in a $14 billion deal.
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Kimberly P. Mitchell/ Design: Alex Brooks
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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 monthly record, held by New Jersey, which logged $1.3 billion in October.
The trend follows a massive 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 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.
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- 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.
- FuboTV has acquired exclusive U.S. rights 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 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 as the greatest postseason QB ever. Subscribe to Sports Section for more on Mahomes and the Chiefs.
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(Note: All as of market close on 1/24/22) |
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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)
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 for details.
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