January 28, 2022

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IN PARTNERSHIP WITH

Shedeur Sanders, Jackson State’s quarterback and son of Deion Sanders, signed an NIL deal with Gatorade — becoming the brand’s first-ever HBCU athlete and second NIL signing.

Apple’s Record-Setting Quarter

Apple/Design: Alex Brooks

Apple posted record revenue in the fiscal first quarter of 2022, as it looks to sports and VR for future growth.

The largest publicly traded company in the world by market capitalization brought in $123.9 billion in the quarter ending December 25, 2021, up 11% year over year.

Apple’s services sector, which includes Apple Fitness+, Apple Arcade, Apple TV+, and Apple Music grew 23.8% to $19.5 billion.The “wearables, home and accessories” category brought in $14.7 billion, up 13.3% year-over-year.The company continued to have strong profit margins, tallying $34.6 billion in net income in the quarter.

Apple is ready [[link removed]] to spend billions on live sports in the coming years to drive subscribers to Apple TV+, according to investment firm Wedbush.

The company is reportedly in serious talks with Major League Baseball on a weekday package. It has also shown interest in “NFL Sunday Ticket” which could cost $2.5 billion annually in broadcast rights.

VR on the Horizon

Apple is widely believed [[link removed]] to be working on a VR headset and associated technology. The headset would likely integrate with the company’s existing devices.

The company has made its Apple Watch integral to its subscription fitness program, which incorporates classes, music, and biometric tracking.

Meta, which has hired around 100 engineers from Apple in recent months, has made fitness a central component of its pivot to VR and the metaverse.

Legends’ Expansion Continues with 4Front Acquisition

Mike Tomon / Design: Alex Brooks

Legends continued its expansion outside its core hospitality and experiences business with the acquisition of analytics-focused 4Front.

Mike Tomon, co-president and COO of Legends, confirmed to Front Office Sports that the deal was finalized this week, while declining to provide financial terms. The total value of the deal was between $15 million to $20 million, one source with knowledge of the deal told FOS.

4Front began as PCG, founded by Dan Migala and Josh Kritzler in 2007, and was rebranded in 2018. 4Front expertise has been called upon by the UFC, the Chicago Bears, and Ilitch Sports + Entertainment.

4Front will remain a separate brand operated under Legend’s global technologies solutions division. Migala, a former San Diego Padres executive, will become CRO of the division, while Kritzler will be the COO. Both will also have co-president titles.

Sixth Street investment

Legends began as a joint venture between Yankee Global Enterprises, an affiliate of the New York Yankees, and Dallas Cowboys owner Jerry Jones. This latest deal comes a year after Sixth Street purchased [[link removed]] 51% stake in the company.

Legends was valued at $1.35 billion at the time of the deal last January.

Tomon said Legends remains in “rapid growth mode.”

“The unique piece with Sixth Street is that they have the ability to take a long-term view,” Tomon said.

IN PARTNERSHIP WITH KAULIG RACING

Racing’s 21-Year Old Record Breaker

In 2022, Kaulig Racing looks to continue their rapid rise as they enter their first full-time NASCAR Cup Series (NCS) season. The future is bright with a roster full of up-and-coming drivers [[link removed]], led by one of the sport’s best in Justin Haley.

Though he’s competed in NASCAR races since he was a teenager, Haley burst onto the scene in his rookie NASCAR Xfinity Series (NXS) season in 2019. The young driver secured four top fives and 20 top-10 finishes before finding himself in Victory Lane [[link removed]] in the NCS at Daytona International Speedway during a rain-shortened event.

In 2020 Haley went on to break records [[link removed]], joining the likes of Dale Earnhardt and Dale Earnhardt Jr. as the only drivers to win three superspeedway races in-a-row.

Now he’s tasked with leading Kaulig Racing [[link removed]] in 2022 and beyond.

Blackstone Reports $2.9B in Income in Q4

Bill Streicher-USA TODAY Sports/Design: Alex Brooks

Investment giant Blackstone posted $2.9 billion in net income in Q4 2021, compared to $1.8 billion for the same period the year prior, bolstered by a series of sports and fitness-related deals.

Full-year income reached $12.4 billion for the financial year, up from $2.4 billion in FY2020.

Blackstone has $313.4 billion of assets under management, more than double year-over-year, and has been building its portfolio with fitness-focused and sports properties.

Last April, it took part in an $80 million raise for startup basketball league Overtime.The firm bought a majority stake in Certified Collectibles Group in June 2021.Last October, the firm agreed to buy a majority stake in apparel maker Spanx at a $1.2 billion valuation.

“What’s really happening is an expansion of who we serve and where we invest the capital,” Blackstone president Jonathan Gray told [[link removed]] the Wall Street Journal.

Sports and Media Expansion

The New York firm is expanding in the sports and media businesses, which are growing in popularity and have garnered the attention of investors who seek additional avenues of profit.

David Blitzer, who owns a stake in Crystal Palace FC and is the Global Head of Blackstone’s Tactical Opportunities Group, told [[link removed]] Blomberg to expect more sports deals from the firm.

Blackstone will seek investment opportunities in sports associated with media rights and accompanying content. Investing in teams could also be on the horizon.

F1 Renews Singapore Grand Prix In 7-Year Deal

Singapore Grand Prix/Design: Alex Brooks

Formula 1’s Singapore Grand Prix is slated for at least seven more years as part of a new deal that runs from 2022 to 2028.

Singapore’s estimated [[link removed]] annual cost for hosting Formula 1 is $100 million, according to Channel News Asia. Host organizers Singapore GP Pte. Ltd. and the Singapore Tourism Board reportedly paid $35 million per Grand Prix in the previous contract, which ran from 2017 to 2021.

The race has reportedly [[link removed]] generated more than $1.1 billion in tourism receipts, according to event organizers. This year’s event will take place on Oct. 2.

As part of the deal, the hosts have agreed to a number of changes.

The events will switch to renewable energy sources and focus on recycling. Singapore will conduct a sustainability audit to ensure it’s following Formula 1’s sustainability goals [[link removed]] — Formula 1 aims to be net zero carbon by 2030.The hosts said they will also focus on community relations, diversity, and health and safety. Pandemic Hurdles

The contract comes after the event’s two-year absence due to the COVID-19 pandemic. Singapore only had around 330,000 visitors last year, a steep decline [[link removed]] from 19.1 million in 2019. The F1 pit building was also used as a temporary location for coronavirus patients.

Transport Minister S. Iswaran said in a statement that the event’s renewal will “sustain Singapore’s reputation as a global city.” The event has taken place since 2008.

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Conversation Starters The NHL’s Arizona Coyotes are reportedly [[link removed]] in advanced talks with Arizona State University and OVG Facilities to use the campus’ new multipurpose venue as a temporary home arena. DraftKings, FanDuel, Caesars, BetRivers, Barstool, and BetMGM confirmed [[link removed]] their sportsbooks will go live in Louisiana on Jan. 28. New York Gov. Kathy Hochul expressed optimism [[link removed]] about a new stadium for the Buffalo Bills, but state legislators still need to approve the deal. University of Texas athletics saw revenue [[link removed]] plummet $48.1 million during 2020-21, with football ticket revenue dropping from $44.1 million in 2019 to $8.8 million in 2020. Today's Action

NCAA

09:00 PM

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

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

Have you used any of Apple's fitness products?

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

Thursday’s Answer

71% of respondents think NIL groups will help schools recruit athletes.

Written by Owen Poindexter [[link removed]], A.J. Perez [[link removed]], Justin Byers [[link removed]], Abigail Gentrup [[link removed]]

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Front Office Sports Insights [[link removed]] - The most promising opportunities where sports meets industry

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