February 24, 2022

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Major League Baseball has made it clear that canceling regular-season games may soon become reality. Based on last year’s salaries, MLB players could combine to lose $20.5 million for each day of the season missed because of the ongoing lockout.

Sports World Condemns Russian Attack on Ukraine

UEFA/Design: Alex Brooks

The sports world is responding with strong condemnation to Russia’s attack on Ukraine, which erupted Wednesday with aerial strikes and troop invasions.

UEFA is reportedly moving [[link removed]] the May 28 Champions League final out of St. Petersburg. Soccer’s governing body in Europe issued a statement saying it “strongly condemns the ongoing Russian military invasion in Ukraine.”

Several sports organizations and figures made similar rebukes.

The International Olympic Committee stated [[link removed]] it “strongly condemns the breach of the Olympic Truce by the Russian government.” The International Paralympic Committee echoed [[link removed]] that sentiment.Second-division Bundesliga team Schalke is removing the name of Russia’s state-owned natural gas company Gazprom from its jerseys.Chelsea owner Roman Abramovich is facing calls [[link removed]] to be stripped of his ownership after leaked documents showed ties to illicit financial activity with Russia. Aston Martin Formula 1 driver Sebastian Vettel pledged [[link removed]] he would not travel to Russia if F1 holds September’s Grand Prix there. Red Bull Racing’s Max Verstappen said that “when a country is at war, it is not right to race there.”

F1 has taken down a page on its website selling [[link removed]] tickets for its race in Russia.

World Cup Implications

The soccer associations of Poland, Sweden, and the Czech Republic, which are all scheduled to play World Cup qualifying matches in Russia in March, stated they “do not consider traveling to Russia and playing football matches there,” in a joint statement [[link removed]].

The Ukraine Premier League has postponed its season for a minimum of 30 days.

DAZN Suffered $1.3B Loss in 2020

DAZN/Design: Alex Brooks

DAZN reported Wednesday that it lost $1.3 billion in 2020 due to the reduction and cancellation of live events during the initial few months of the pandemic.

The sports streaming service generated [[link removed]] $871 million in revenue in FY2020, a 6% increase year-over-year. In contrast, DAZN saw revenue grow 76% in FY2020 compared to 2019.

DAZN’s financial losses haven’t deterred the sports streaming service from expanding.

Last June, it agreed [[link removed]] to a five-year, $100 million deal with boxing producer Matchroom to broadcast matches in the U.K. and Ireland.The company secured shared domestic media rights with Movistar to broadcast La Liga matches in a five-year, $5.6 billion deal last December.It is reportedly [[link removed]] close to a sublicensing deal with Telefónica to air all La Liga matches next season.

The reported losses follow DAZN’s new financing arrangement with investment firm Access Industries, its majority shareholder, earlier this month. Access Industries agreed [[link removed]] to recapitalize $4.3 billion of new equity in DAZN by converting existing shares and retiring shareholder loans.

Access will also acquire $250 million in new shares leaving DAZN debt-free.

Missed Opportunity

Last month, DAZN was reportedly [[link removed]] close to a deal with telecom company BT Group to acquire BT Sport for $800 million, but the opportunity to secure its coveted English Premier League rights fell through. BT is now in negotiations with Discovery.

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Allbirds Posts Record $97M Quarter

Allbirds/Design: Alex Brooks

Sustainable footwear and activewear company Allbirds reported a record $97.2 million in fourth-quarter revenue. The brand’s full-year revenue increased 27% year-over-year to $277.5 million.

Net revenue increased [[link removed].] 23% from Q4 FY2020 and rose 43% from the same period in 2019. U.S. revenue grew 25% to $76.9 million, with international revenue growing 14% to $20.3 million.

Full-year gross profit jumped 30% to $146.7 million compared to the year prior.

Compared to 2020, Allbirds saw a 112% increase in retail channel sales in 2021.Allbirds opened 13 stores during the year.It also says it reduced the carbon footprint of its top 10 products by 14%.

The company attributed the record quarter to its “strongest new product quarter of the year,” and its “inventory position entering the quarter.” Its full-year revenue increase was attributed to growth in both digital and retail channels.

Co-founder and co-CEO Joey Zwillinger also highlighted the company’s progress in its Allbirds Flight Plan, a “blueprint for reducing our already-low product emissions by 50% by the end of 2025 and 95% by 2030.”

Allbirds Is All In

Allbirds, which sells running and athleisure shoes, announced [[link removed]] Allbirds ReRun last week, its own resale platform.

The company’s 2022 net revenue outlook ranges from $355 million to $365 million, a 28%-to-32% increase from 2021.

Zwillinger said Allbirds sees its 2022 product roadmap as its strongest to date, citing the company’s innovation engine, retail store expansion, and increase international presence to “continue to drive an accelerating toppling growth rate in 2022.”

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Market Movers

U.S. stocks were mixed on Thursday. Here’s a look at how sports-related stocks performed:

WWW [[link removed]]

Wolverine World Wide, Inc.

[[link removed]]

$23.71

[[link removed]]

+0.76%

[[link removed]] MANU [[link removed]]

Manchester United Plc.

[[link removed]]

$13.15

[[link removed]]

+0.92%

[[link removed]] SIRI [[link removed]]

Sirius XM Holdings Inc

[[link removed]]

$6.07

[[link removed]]

+1.42%

[[link removed]] CMCSA [[link removed]]

Comcast Corp

[[link removed]]

$45.93

[[link removed]]

+2.00%

[[link removed]] ELY [[link removed]]

Callaway Golf Co.

[[link removed]]

$23.50

[[link removed]]

+7.95%

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

MGM Resorts International

[[link removed]]

$43.57

[[link removed]]

+8.55%

[[link removed]] (Note: All as of market close on 2/24/22) What to Watch

The Boston Celtics (34-26) face the Brooklyn Nets (31-28) on Thursday at Barclays Center.

How to Watch: 7:30 p.m. ET on TNT

Betting Odds: Celtics -9 || ML -400 || O/U 214.5* ( Bet on DraftKings [[link removed]])

Pick: Expect the Celtics to get back on track after the All-Star break. Take Boston to cover.

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

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

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