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 them free to get creative.

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

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 last week. 

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

Over 90% of certain sports team properties, including 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 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 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.

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 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 online gaming operator Gamesys Group for $2.7 billion.
• Monkey Knife Fight, a daily fantasy sports site, was purchased in a $90 million deal.
• Bally’s acquired 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 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 a $14.7 million net loss in its third quarter with $314.8 million in revenue.

Hurdles Ahead

Standard General said 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.

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.