Liberty Media, the parent company of Formula One Group, Braves Group, and SiriusXM Group, reported fourth-quarter earnings on Friday, one day after Formula 1 announced it would be canceling the Russian Grand Prix following the country’s invasion of Ukraine.

As a $17.2 billion group, the company Forbes dubbed the world’s largest sports empire last month continues to grow. 

Liberty reported $11.4 billion in total revenue across its three divisions.

Formula One Group’s revenue rocketed 62.3% from $485 million to $787 million, primarily attributed to increased race promotion revenue — the same period the previous year saw limitations on fan attendance.

• F1’s media rights revenue was flat, but sponsorship revenue increased during the quarter.
• Before the cancellation of the Russian Grand Prix, F1 had a record 23 races on its calendar for the year.

Domestic Divisions

The Atlanta Braves had a successful quarter, too, with revenue nearly tripling from $35 million to $102 million. It also completed the sale of its minor league teams in January.

Baseball revenue, which includes ballpark operations, local broadcast rights, and shared MLB revenue streams, grew from $23 million in 2020 to $93 million in 2021. Development revenue, derived from the Battery Atlanta mixed-use facilities, fell from $12 million in 2020 to $9 million in 2021.

SiriusXM, which hosts a variety of sports programs covering NASCAR, ESPN, and others, brought in record revenue for the year at $8.7 billion, exceeding all 2021 financial and operating guidance. As of Jan. 28, Liberty Media owns 81.2% of SiriusXM.

Chelsea FC suddenly finds itself in the middle of a geopolitical conflict.

The Premier League club is owned by Russian oligarch Roman Abramovich, who could face sanctions from the United Kingdom related to his ties to the Russian government and the invasion of Ukraine.

However, the situation is further complicated by the club’s balance sheet: Chelsea is $2 billion in debt to Abramovich.

• Labour Party parliament member Chris Bryant said “Abramovich should no longer be able to own a [soccer] club in this country.”
• Bryant criticized Prime Minister Boris Johnson for mistakenly claiming that Abramovich was already being sanctioned.
• Bryant has also raised the idea of seizing Abramovich’s $203.7 million home.

Should Abramovich face harsh sanctions or have his ownership of the club challenged, he could call in his loan to Chelsea, potentially bankrupting the club. He has an estimated net worth of $13.3 billion, mostly from the steel and metals industry.

A Top Earner

Despite the hefty loan, Chelsea has been among the sport’s top-earning clubs in the world. It is one of six Premier League clubs expected to earn a collective $1.3 billion in sponsorships this season — quadruple what the other 14 clubs will make combined.

Chelsea was hit hard by the pandemic, taking a $196.4 million loss for the fiscal year ending June 30, 2021, compared to a $49 million profit the previous year.

Foot Locker reported a record year in its latest earnings report, but the sportswear and footwear retailer anticipates lowered revenue in the financial year ahead.

The company generated $2.3 billion in sales in Q4 2021, a 6% increase year-over-year. Total full-year sales reached $9 billion in FY2021, a 19% increase compared to the fiscal year prior. 

Foot Locker has diversified its business through acquisitions and mergers over the past year. 

• Last September, it bought athletic apparel retailer Eurostar for $750 million.
• It closed its acquisition of Text Trading Company for $360 million last November.
• The same month, it said it would be merging its Champ Sports and Eastbay brands. 

Foot Locker projects revenue to drop in 2022 due to expectations that it will not sell as many products from its top vendor, Nike. The Oregon-based retailer is selling more of its shoes and apparel directly to consumers. 

No single vendor will represent more than 55% of Foot Locker’s supplier purchases beginning in Q4 2022, compared to 65% in Q4 2021.

Shares of Foot Locker fell nearly 35% on Friday following the news, erasing roughly $950 million in market value.

New Ventures 

In October 2021, Foot Locker announced LCKR, its first private apparel label since exiting the category three years prior. The line is available online and in more than 800 retail locations.

Last December, Foot Locker unveiled Cozi, the company’s first proprietary womenswear brand. Cozi will release seasonal collections throughout 2022, with pieces ranging from $35-$50.