January 26, 2022

Read in Browser [[link removed]]

POWERED BY

Jake Paul has announced an investment in Endeavor, UFC’s parent company. The YouTube star and MMA fighter says his investment is focused on raising fighter pay and providing long-term health care. Endeavor went public last April.

MLB Labor Talks Heating Up

Jayne Kamin-Oncea-USA TODAY Sports/Design: Alex Brooks

Major League Baseball and its players’ association are beginning to make progress toward a new collective bargaining agreement.

The two sides met on Monday and Tuesday, with the players making an offer and rejecting most or all of the owners’ previous proposal.

The players proposed [[link removed]] raising the minimum MLB salary to $775,000 from $570,500. MLB has reportedly countered [[link removed]] at $615,000 for first-year players. Both sides have proposed a bonus pool for players under minimum salaries based on the Wins Above Replacement statistic. MLB suggested a $10 million fund, while the players want it to be $105 million.Forty-six percent of players made under $500,000 in 2021.

The MLBPA also reduced its requested increase in revenue sharing funds from large market to small market teams to $30 million from $100 million.

Larger Issues Loom

The two sides are still at a standoff on several issues, and MLB executive Dan Halem said [[link removed]] that the league is willing to lose 2022 regular-season games to hold their ground.

On Monday, the MLBPA dropped its request that players be able to reach free agency earlier than after six years of service time (a system teams regularly manipulate to gain most of a seventh year).

MLB shed its proposal to restructure the arbitration system, which guides most player salaries for their fourth-through-sixth years of team control. The players have asked for a fourth year to be put under the arbitration system instead of a minimum salary.

Olympic Sponsors Weigh Boycott Stance, Risk Losing Customers

IOC/Design: Alex Brooks

Olympic sponsors are torn on marketing tactics leading up to the 2022 Beijing Winter Olympics as government officials stage diplomatic boycotts over China’s alleged “genocide and crimes against humanity.”

The companies risk missing out on marketing opportunities by not capitalizing on campaigns, but could also lose customers by supporting a controversial Olympics.

Former IOC chief marketing officer Rick Burton pointed out that sponsors also “have businesses to operate in China.” Ten of the 12 largest Olympic sponsors, which include Procter & Gamble, Coca-Cola, and Intel, combine for $110 billion in annual revenue [[link removed]] in China, according to Bloomberg.

Despite running large, global ad campaigns in previous Games, companies differ in their approach [[link removed]] this year.

P&G’s messaging focuses on the athletes, and marketing decisions are made “tactically and individually by market,” according to its finance chief Andre Schulten.Coca-Cola is only running a campaign in China this year. The company has also voiced its concerns over Qatar hosting the 2022 World Cup for similar humanitarian issues.Intel, one of the top five U.S. sponsors, has openly agreed with the U.S. government regarding their concerns.

During the 2014 and 2016 Games, top-tier sponsors contributed more than $1 billion combined to the IOC.

Political Involvement

The IOC said it “must remain neutral on all global political issues,” and some companies are following its approach. The Olympics’ official timekeeper, Swiss watchmaker Omega SA, said it doesn’t “get involved in certain political issues” and has launched a new watch for the Games.

SPONSORED BY GEMINI

See 10x Returns on Crypto Investments

Did you miss out on the past 10 years? Join Gemini [[link removed]] for the next 10.

Whether you’re an experienced trader or just getting started, they have all the tools [[link removed]] you need to buy, sell, and store your crypto.

Start buying bitcoin for as little as $5 and get started [[link removed]] today.

Everton Owner Invests $135M in Club, Increases Stake

Everton FC/Design: Alex Brooks

Everton owner Farhad Moshiri has invested an additional $135 million in the Premier League club, increasing his stake to 94%, up from the 66% stake he previously owned.

Moshiri bought Everton in 2016 for $270 million and has since spent more than $674 million to improve the club through the transfer market. The Iranian businessman will fund his latest investment by converting loans from his Blue Heaven Holdings company into equity.

Everton will use the funding to improve the club’s transfer options and support the construction of its new stadium.

Last August, Everton began [[link removed]] construction on the $693.7 million project located in the Bramley-Moore Dock area of Liverpool. Russian holding company USM secured naming rights to the stadium in a 10-year, $277.5 million deal.

Moshiri’s injection of fresh capital comes after Everton posted [[link removed]] a combined loss of $357 million for the last three financial years.

The club lost [[link removed]] $194.1 million in the 2019-2020 season, per Deloitte. That was the worst hit among all Premier League clubs, which collectively lost roughly $1.4 billion that season.

More Poor Results

Last week, Everton parted ways with manager Rafa Benitez after only 200 days in the role, citing results that failed to “meet expectations of anyone associated with the club.”

Benitez was Everton’s sixth manager since 2017.

Athletes Unlimited Tips Off Inaugural Basketball Season

Athletes Unlimited/Design: Matt Sullivan

There’s a new professional women’s basketball league that features a unique format, top-flight athletes and backers, and major broadcast networks.

Athletes Unlimited tips off its inaugural season on Wednesday in Las Vegas — the latest in the brand’s growing portfolio of women’s sports leagues.

The season will run for five weeks, and its timing between January and February was chosen to complement the WNBA schedule.Each week, teams will have rotating rosters, and an individual player will be crowned champion — a format that’s “ideally suited for basketball,” CEO and co-founder Jon Patricof told Front Office Sports.Big names participating include Courtney Williams, Lexie Brown, and Natasha Cloud.CBS Sports Network and FOX Sports both inked deals to broadcast games.

The 44 players will make combined compensation of more than $1 million — an average of more than $20,000 per player.

After five weeks, the league will judge success on more than just fan response. “The No. 1 success metric for our league, especially for the first season, is how was the athletes’ experience both on the court and off the court?” Patricof said.

A New Empire?

Athletes Unlimited launched in 2020 and also runs leagues in volleyball, softball, and lacrosse. The leagues, which feature the same format as basketball, were created to capitalize on untapped [[link removed]] U.S. markets.

The brand’s board of advisors also features sports industry heavy-hitters including Jessica Mendoza, Kevin Durant, Taylor Rooks, Rich Kleiman, and Abby Wambach. It also has major brand support including deals with Nike and GEICO, as well as a new deal with EY.

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]].

Conversation Starters Solana blockchain-based sports betting exchange Aver announced [[link removed]] it has raised $7.5 million in a seed funding round. A bill was introduced in Virginia that would prohibit [[link removed]] high school athletes from signing NIL deals. Dwayne “The Rock” Johnson’s performance brand [[link removed]] Project Rock has been named [[link removed]] the official footwear partner of UFC. The NFL’s four Divisional Round playoff games this past weekend saw viewership increase 21% year-over-year to an average [[link removed]] of 37.1 million viewers. Today's Action

NHL

07:00 PM

Sharks (+175) at Capitals (-205)

Bet Now [[link removed]]

NCAA

09:00 PM

LSU (+165) at Kansas State (-195)

Bet Now [[link removed]]

NHL

10:00 PM

Bruins (+150) at Avalanche (-170)

Bet Now [[link removed]]

*All times are EST unless otherwise noted.

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

Question Of The Day

Are you more interested in a brand after seeing them advertise with FOS?

Yes [[link removed]] No [[link removed]]

Tuesday’s Answer

51% of respondents think Reebok will make a successful comeback.

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

*If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2357)(IL). Gambling problem? Call 1-800-GAMBLER (NJ/WV/PA/MI), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN). 21+. NJ/PA/WV/IN/IA/CO/IL/TN/MI/VA only. Odds and lines subject to change. Eligibility restrictions apply.” See [[link removed]] for details.

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]]