Endeavor reported $1.5 billion in fourth-quarter revenue, totaling $5.1 billion overall in 2021 — its first year as a public company.

Despite beating Wall Street’s revenue expectations, the parent of UFC reported a net loss of $16.7 million for the quarter, totaling a $467.5 million net loss for the year. Endeavor went public via IPO in April.

All three segments of the business saw increases in revenue during the quarter and year.

• The Owned Sports Properties segment, which includes UFC and PBR, saw fourth-quarter revenue increase 3% to $277.3 million and full-year revenue hike 16% to $1.1 billion. Endeavor says 2021 was UFC’s best financial year in its 28-year history.
• The Events, Experiences & Rights segment’s fourth-quarter revenue ballooned 23% to $516.7 million, with full-year revenue up 28% to $2 billion.
• Endeavor’s Representation segment, which includes WME talent, saw revenue increase 161% during the quarter to $717.9 million and 100% to $2 billion for the year.

The company’s sale of all but 20% of Endeavor Content accounted for roughly $700 million of the company’s annual revenue, according to The Hollywood Reporter.

Future Endeavors

Upon the closing of its acquisition of sports betting platform OpenBet — which is anticipated for Q3 — Endeavor plans to add a fourth segment.

Endeavor expects to record between $5.2 billion and $5.45 billion in 2022 revenue. The company’s stock closed at $27.90 on Wednesday.

Sanctions against Russian oligarchs, ripple effects from the pandemic, and poor performances on the field are putting Everton FC in a financial crunch.

The Premier League club is reportedly exploring financing options, including raising equity and debt, after suspending sponsorships with at least three companies connected to sanctioned Russian billionaire Alisher Usmanov.

Other sources indicated that Everton is only raising funds for its new $655.6 million stadium.

• Everton dropped its connections with USM Holdings, which held sponsorships and a $39.3 million naming rights option to the planned stadium.
• The team also suspended deals with Russian companies MegaFon and Yota, removing names and logos from signage, shirts, and other materials.
• Everton will not renew its partnership with jersey sponsor Cazoo, as the two sides could not agree to new contract terms.

The combined loss of those sponsorships approaches $39.3 million annually.

Everton lost a combined $327.8 million in the 2018-19 and 2019-20 seasons.

Relegation Risk

Everton currently sits 17th in the 20-team Premier League, one place above the relegation zone.

An unfavorable finish could bump the team down to the second-division English Football League Championship, which would cut them out of the Premier League’s broadcast rights share. The league has secured $13.6 billion in broadcast rights for the upcoming three-year cycle.

Arctos Sports Partners has quietly built up its baseball portfolio with stakes in some of the most valuable MLB teams.

The private equity firm reportedly holds stakes in five teams, in addition to a minority stake in Boston Red Sox owner Fenway Sports Group. 

Recent reporting has also revealed its stakes in the following teams: 

• Los Angeles Dodgers, valued at $3.6 billion last year, per Forbes (2nd in MLB) 
• Chicago Cubs, $3.4 billion (4th) 
• San Francisco Giants, $3.2 billion (5th)
• Houston Astros, $1.9 billion (12th)
• San Diego Padres, $1.5 billion (17th) 

The Red Sox have the league’s third-highest valuation at $3.5 billion.

MLB has allowed private equity investments in teams since 2019. Teams can sell up to 30% of their equity, and individual funds can own up to 15% of a team.

This month, the league inked a pair of media deals with Apple and NBCUniversal worth a combined $115 million. The league also brings in $1.8 billion annually from deals with Fox ($755 million), ESPN ($550 million), and TBS ($535 million). 

Arctos’ Investments

Arctos holds stakes in teams across a wide range of sports including the NBA’s Golden State Warriors and Sacramento Kings, the NHL’s Tampa Bay Lightning and Minnesota Wild, MLS club Real Salt Lake, and several European soccer teams, as well as in the Premier Lacrosse League.

Arctos announced in October that it raised over $2.1 billion for its flagship fund.

Vail Resorts generated $906.5 million in revenue in fiscal Q2 2022, a 32% increase compared to the same period last year. 

The Colorado-based company — which operates 37 mountain resorts and ski areas — attributes the growth to a strong holiday season through March 6, which saw a 3% increase in total skier visits and a 10% uptick in total lift revenue compared to the same period in 2020.

Vail Resorts reported a favorable holiday season but also saw growth across all segments in fiscal Q2. 

• Its mountain segment generated $90.8 million in revenue in Q2, up 21% year-over-year.
• Lodging reported a $30 million (79%) increase in revenue compared to Q2 2021. 

Vail Resorts projects full-year EBITDA to range between $813 million and $837 million, and the company plans to use the capital to invest in its guest experience. The company will be increasing its minimum wage to $20 per hour and is planning to invest $327 million to $337 million to expand capacity at 14 resorts.

Success On The Slopes

Last December, Vail Resorts agreed to acquire Seven Springs Mountain Resort for $125 million. The deal includes Hidden Valley Resort and the operations of Laurel Mountain Ski Area.

Vail Resorts will acquire all assets related to the mountain operations of the resorts, including ski areas, lodging, and a hotel. The acquisition is expected to generate incremental annual EBITDA of over $15 million for the fiscal year ending July 31, 2023.