January 27, 2022

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IN PARTNERSHIP WITH

The Buffalo Bills-Kansas City Chiefs playoff game was an instant classic. Afterwards, 9,500 Chiefs fans donated $173,000 to the Oishei Children’s Hospital in Buffalo, home to the Patricia Allen Recovery Wing named after Bills quarterback Josh Allen’s late grandmother.

Ohio State Creates NIL Group To Help Athletes Earn More Money

Dylan Widger-USA TODAY/Design: Matt Sullivan

The name, image, and likeness industry is still in its infancy, but after six months, early winners are emerging — and Ohio State athletes top the list.

Since July 1, 220 Ohio State athletes have procured a total of $2.98 million in NIL earnings with 608 reported activities, the school announced. All three stats rank first among departments using Opendorse’s platforms.

Now, the school is implementing a program that creates a new athletic department role that could help maintain its standing.

Ohio State’s NIL Edge Team will “assist in connecting and coordinating NIL activities,” senior associate athletic director Carey Hoyt said. The school will also assign operations directors for “virtually” all of the school’s 36 sports to connect athletes with brands.

If schools can help with NIL, they’ll have a better chance of satisfying current athletes as well as attracting potential recruits.

A Pleasant Surprise

Ohio State is altering its NIL plan now after learning it has more freedom than previously thought, given the national landscape.

The NCAA prohibits explicit pay-for-play — or promising a deal based on what school an athlete attends.Beyond that, the only restrictions are set by schools and state laws. The Buckeyes realized that Ohio’s executive order leaves [[link removed]] them free to get creative.

The Buckeyes aren’t the only entity loosening restrictions. Alabama’s state legislature already voted [[link removed].] to repeal its state law, giving both schools and athletes in the state more freedom.

Potential New Broncos Owner Could Score Major Tax Breaks

Isaiah J. Downing-USA TODAY Sports/Design: Alex Brooks

A sale of the Denver Broncos could lead to billions in tax write-offs for the new owner.

The NFL team is widely believed to be approaching a sale, with former quarterbacks John Elway and Peyton Manning both reportedly interested. Robert F. Smith, who grew up in Denver, has also emerged as a potential bidder, and would be the NFL’s first Black owner, Front Office Sports reported [[link removed]] last week.

The team is currently owned by the Patrick D. Bowlen Trust.

Over 90% of certain sports team properties, including [[link removed]] player contracts, media rights, and trademarks, can be considered “intangible assets” and subject to write-offs over a 15-year amortization period.

A ProPublica investigation [[link removed]] found that Los Angeles Clippers owner Steve Ballmer paid a 12% tax rate on $656 million in income in 2017 and 2018 combined, largely due to amortized depreciation from his $2 billion purchase of the team in 2014. Team owners Phillip Anschutz (Los Angeles Kings), Stan Kroenke (Los Angeles Rams, Denver Nuggets), and Daniel Devos (Orlando Magic) also reportedly paid less than 20% in taxes in those years.The report found that several NBA teams claimed over 90% of their value was in player contracts, which could be used for the owner’s tax benefit. Biggest Team Sale Ever?

The team’s valuation, per Forbes, rose 17% to $3.75 billion in 2021, and a sale could reach $4 billion, sources told [[link removed]] Front Office Sports in September, meaning tax write-offs could top $3 billion.

The current record for a sports team sale is held by Joseph Tsai, who bought the Brooklyn Nets and Barclays Center operations for $3.3 billion in 2019.

IN PARTNERSHIP WITH KAULIG RACING

NASCAR’s Next-Gen Team With a Veteran Leader

The 2022 season will mark the first time that Kaulig Racing has fielded full-time entries in both the NASCAR Xfinity Series (NXS) and the NASCAR Cup Series (NCS). Team President [[link removed]] Chris Rice however, has been well-known throughout NASCAR since the mid-1980s.

Born and raised in South Boston, VA, where his mother ran the local South Boston Speedway racetrack, Rice began working on the pit crew as early as five years old. Now with decades of experience in NASCAR, Rice is using his expertise to help Matt Kaulig transform the culture [[link removed]] at Kaulig Racing with a “whatever it takes” attitude.

Learn more [[link removed]] about Chris Rice and watch Kaulig Racing’s rookie season kick off this February.

Bally’s Shareholder Offers To Buy 79% Stake At $2B Valuation

Ballys Casino/Design: Alex Brooks

Bally’s Corp.’s biggest shareholder Standard General LP offered to buy the company’s remaining shares at a premium of $38 per share — around 30% higher than the stock’s closing price on Monday.

With access to online sports betting licenses in 16 states, a horse racetrack, and 14 casinos across 10 states, the deal would reportedly value [[link removed]] Bally’s Corp. at nearly $2.07 billion. Standard General currently has a 21% stake in the company.

Bally’s has a number of other gaming and sports gambling entities.

The company acquired [[link removed]] online gaming operator Gamesys Group for $2.7 billion.Monkey Knife Fight, a daily fantasy sports site, was purchased [[link removed]] in a $90 million deal.Bally’s acquired [[link removed]] SportCaller, a B2B free-to-play game provider, in 2021 for an undisclosed amount.Telescope, a provider of real-time fan engagement solutions, was also purchased [[link removed]] in 2021 for an undisclosed amount.

In 2020, Caesars sold rights to the Bally’s brand to Twin River Worldwide, a casino operator owned by Standard General. As part of the sale, Twin River Worldwide was rebranded as Bally’s Corp.

Bally’s Corp. recorded [[link removed]] a $14.7 million net loss in its third quarter with $314.8 million in revenue.

Hurdles Ahead

Standard General said [[link removed]] the deal would be funded through sale-and-lease-back and other long-term financing.

According to Bally’s filing, Standard General won’t move forward with the buyout unless it’s approved by a special committee. The deal will also need approval from a majority of Bally’s other shareholders.

Formula 1’s Williams Racing Sells Battery Arm For $220M

Williams Racing/Design: Alex Brooks

Williams Advanced Engineering, a battery technology arm of the Williams Racing Formula 1 team, has been acquired by Fortescue Metals Group in a deal valued at $220 million.

FMG’s purchase of the remaining stake in WAE follows the sale of Williams Racing’s majority share to EKM Capital in 2019 for an undisclosed amount.

The acquisition will help FMG reach its goal of net-zero carbon emissions by 2030 by enhancing the technological capabilities of its industrial equipment. WAE and FMG hope to deliver zero-emission products across all their existing sectors, including racing and automotive.

The deal is expected to close in March 2022.FMG and WAE have been building battery systems together since 2021.

In August 2020, Williams Racing was acquired by New York-based investment firm Dorilton Capital in a deal that valued the Formula 1 team at $179.5 million. The sale was a result of a desire for fresh investment following lukewarm results on the racing track in recent years.

Need for Improvement

Since the team’s F1 debut in 1977, Williams Racing has won seven drivers championships and nine constructors titles. It last won a title or championship in 1997.

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Conversation Starters NFL wide receiver Antonio Brown and his attorney, Sean Burstyn, intend [[link removed]] to pursue legal action against the Tampa Bay Buccaneers for releasing him after coach Bruce Arians allegedly ignored Brown’s claim that he was too injured to play against the New York Jets. As part of a naming rights deal with Fiserv Inc., the New York Boulders’ ballpark will be renamed [[link removed]] Clover Stadium. German hockey league players have called [[link removed]] on the league to consider halting operations due to COVID-19 outbreaks ahead of the Beijing Olympics. FOS is hiring! Check out the multiple positions open here [[link removed]] and send an application our way if you’re interested in joining the team. Today's Action

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*All times are EST unless otherwise noted.

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

Question Of The Day

Do you think NIL groups will help schools recruit athletes?

Yes [[link removed]] No [[link removed]] Written by Amanda Christovich [[link removed]], Owen Poindexter [[link removed]], Abigail Gentrup [[link removed]], Justin Byers [[link removed]]

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