January 25, 2022

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Following several days of speculation and multiple reports, Sean Payton informed the New Orleans Saints on Tuesday that he is stepping away from coaching. Aside from needing to fill Payton’s shoes, the Saints are projected to be at least $60 million over the expected salary cap.

Inter Milan Issues $468.3M Bond To Manage Debt

Inter Milan FC/Design: Alex Brooks

Inter Milan is issuing [[link removed]] $468.3 million in new debt to pay off old debt.

The Serie A club is juggling its finances as it continues to be weighed down by pandemic-related losses. The senior secured notes, issued by its broadcast, media, and sponsorship division Inter Media and Communication, will be due in 2027.

The team said that the new cash would be used to pay off secured notes due this year and repay its revolving credit line.The previous bonds were worth [[link removed]] $423.2 million, along with a $56.4 million credit facility.The team hired Goldman Sachs to work on refinancing its debt, reportedly mandating the bank launch a new bond of roughly the same size as its previous one. The new bonds were graded B+ by ratings agency Fitch. Winning On Field, Losing Off

Inter Milan said it earned $80.4 million in the third quarter of 2021, down 40.4% from $134.9 million the previous year. The club’s $277.2 million loss in their championship-winning 2020-2021 season was the highest ever by an Italian soccer team.

In December, Inter Milan and AC Milan announced a new stadium project slated to cost $733 million.

However, the team may soon access a new source of funds: The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, is reportedly [[link removed]] closing in on a $1 billion purchase of the team.

Saudi-Backed Group Merging ESL, FACEIT in $1.5B Deal

ESL Gaming/Design: Alex Brooks

Savvy Gaming Group has purchased esports tournament and league operators ESL and FACEIT for a combined $1.5 billion to form the ESL FACEIT Group.

Fully backed [[link removed]] by Saudi Arabia’s Public Investment Fund, Savvy Gaming will “fuel ESL FACEIT Group growth with significant long-term investment.” The company was formed in 2021.

ESL Gaming, which reportedly made up $1 billion of the total, formed [[link removed]] in 2020 after ESL merged with Dreamhack — both were owned by the Modern Times Group.

ESL is reportedly one of the biggest esports tournament organizers in the world, primarily known for its Counter-Strike: Global Offensive and Dota 2 tournaments as well as the ESL Pro League. FACEIT, which is privately owned, also hosts tournaments for CS:GO, League of Legends, Rocket League, and others.

The deal is expected to close in Q2 2022 pending regulatory approval.

Saudi Arabia’s Sports Investments

The country’s sovereign wealth fund is led by Prince Mohammed of Saudi Arabia, who has described [[link removed]] himself as part of the country’s first generation of gamers. In the fourth quarter of 2020, the PIF acquired $3.3 billion worth of stock in Activision Blizzard, Electronic Arts, and Take-Two Interactive.

The PIF also recently purchased [[link removed]] the Premier League’s Newcastle United for $409 million.

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Athletic Greens Raises $115M, Valued at Over $1B

Athletic Greens/Design: Alex Brooks

Athletic Greens has raised $115 million in new funding that values the nutritional powder maker at more than $1 billion.

Led by Alpha Wave Ventures, the funding round included new investor and e-commerce entrepreneur Mark Vadon and returning investors SC.Holdings and Bolt Ventures.

Athletic Greens will use the new financing to accelerate the growth of its subscriber base through increased digital and offline distribution. The company will also use the fresh capital for scientific research, launching new products, and broadening the brand’s geographic reach.

The company offers a single 75-ingredient product called AG1.Its 30-serving powder package sells for $99 or $79 with a monthly subscription.

The latest funding follows an initial investment round in July 2021, the company’s first raise with strategic outside investors. The round — led by SC.Holdings — included Formula 1 driver Lewis Hamilton and U.S. gold medalist Shawn Johnson.

Financial terms were not disclosed, but Athletic Greens has a $150 million revenue run-rate.

Growth & Innovation

Athletic Greens will be looking for emerging web3 opportunities and will continue to reach new customers through its network of digital content creators and partners.

The remote-only company, which expects to triple its workforce in 2022, has operations in North America, Europe, China, and New Zealand.

Editor’s note: SC.Holdings is an investor in FOS.

Conversation Starters In The Leadoff, Authentic Brand Group’s CEO expects Reebok’s revenue to double to $10 billion within five years, a San Diego attorney prepares to sue the NFL over the Chargers’ move to Los Angeles, Wynn wants to sell its sports betting unit for $500 million, and Virginia officials bring the Washington Football Team closer to a new stadium. Click here to listen [[link removed]]. Overtime Elite has partnered with Meta Quest to make the Quest 2 the official VR headset of the pro basketball league. The two entities will work to create VR experiences for fans. The USFL’s inaugural game between the New Jersey Generals and Birmingham Stallions on April 16 will be simulcast [[link removed]] on both Fox and NBC. The Baseball Hall of Fame’s mission statement includes a mandate “to preserve the sport’s history, honor excellence within the game, and make a connection between the generations of people who enjoy baseball.” Tuesday’s Class of 2022 results will likely fail those standards [[link removed]] on all three fronts. Subscribe to Sports Section [[link removed]] for more on Cooperstown’s conundrum.

IN PARTNERSHIP WITH KAULIG RACING

Gearing up for 2022

Kaulig Racing [[link removed]] is on the rise. And the team is up for the challenge.

Kaulig Racing was one of the fastest teams ever to win a Cup Race, and the growth hasn’t stopped there. Along with the two current Cup charters, Kaulig has three Xfinity cars on the track.

Not only are they moving up to the NASCAR Cup series [[link removed]], but also building a new racing fan base. Kauling has attracted young talent that they’ll help grow and develop. This also gives them more opportunities to stay relevant and grow alongside new fans [[link removed]].

With their next generation owner, Matt Kaulig, they’re already on the path to becoming the next generation team [[link removed]].

Market Movers

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

VFC [[link removed]]

VF Corp.

[[link removed]]

$66.53

[[link removed]]

+0.09%

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

Walt Disney Co (The)

[[link removed]]

$136.59

[[link removed]]

+0.86%

[[link removed]] T [[link removed]]

AT&T, Inc.

[[link removed]]

$26.48

[[link removed]]

+1.57%

[[link removed]] RCI [[link removed]]

Rogers Communications Inc.

[[link removed]]

$48.72

[[link removed]]

+1.86%

[[link removed]] MGM [[link removed]]

MGM Resorts International

[[link removed]]

$41.98

[[link removed]]

+2.38%

[[link removed]] BYD [[link removed]]

Boyd Gaming Corp.

[[link removed]]

$60.19

[[link removed]]

+3.01%

[[link removed]] (Note: All as of market close on 1/25/22) What to Watch

The Michigan State Spartans (15-3) face the Illinois Fighting Illini (13-5) on Tuesday at State Farm Center.

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

Betting Odds: Illinois -5 || ML -225 || O/U 142* ( Bet on DraftKings [[link removed]])

Pick: Expect Tom Izzo to have the Spartans prepared. Take Michigan State to cover.

Who ya got? Reply to this newsletter with your prediction for the Michigan State-Illinois winner and final score.

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

Written by Owen Poindexter [[link removed]], Abigail Gentrup [[link removed]], Justin Byers [[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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