March 22, 2022

Read in Browser [[link removed]]

IN PARTNERSHIP WITH

The NFL’s $40 million quarterback club is now up to six following Deshaun Watson’s blockbuster deal. Aaron Rodgers ($50.2 million) is head of the class, followed by Watson ($46M), Patrick Mahomes ($45M), Josh Allen ($43M), Dak Prescott ($40M), and Matthew Stafford ($40M).

Nike Gets Needed Boost from Earnings Beat

Nike/Design: Alex Brooks

Nike saw modest sales growth in its fiscal third quarter as it continues its push toward direct-to-consumer sales.

The Swoosh notched $10.9 billion in revenue, up 5% year-over-year (8% on a currency-neutral basis) in the quarter ending Feb. 28.

NIKE Direct, its increasingly important direct sales platform, accounted for $4.6 billion of the company’s sales, up 15% from the same period last year. The Nike Brand accounted for the vast majority of the company’s revenue — $10.3 billion — while Converse brought in $567 million.Nike Brand grew 13% year-over-year in the EMEA region.

The company beat [[link removed]] estimates of $10.6 billion in revenue, and its stock rose around 6% in after-market trading.

Prior to the favorable earnings, Nike’s stock had dropped 20.9% on the year, as supply chain troubles related to Russia’s assault on Ukraine and difficulties in China have worried investors.

Nike cut off online sales in Russia following the country’s invasion of Ukraine, saying it “cannot guarantee delivery of goods to customers” there.

Sales slipped 5% year-over-year in the Greater China region to $2.2 billion.

DTC Shift

“Nike’s strong results this quarter show that our Consumer Direct Acceleration strategy is working,” said John Donahoe, Nike’s president and CEO.

The company has curtailed relationships with third-party retailers. Foot Locker said it would lose some of its Nike merchandise in the next few years.

Nike is evaluating [[link removed]] $1 billion in media spending in a review expected to last into the spring.

CVC Capital in Talks for $1.7B Stake in French Soccer Media Rights

Ligue 1/Design: Alex Brooks

Private equity firm CVC Capital Partners is in exclusive talks with France’s top soccer organization for a 13% stake worth $1.7 billion in a new entity that will hold its media rights.

A deal would value [[link removed]] the Ligue de Football Professionnel, which oversees Ligue 1 and Ligue 2, at $12.7 billion nearly two years after it took out a $253.3 million loan when its broadcast partner MediaPro stopped making payments on its rights deal worth $877.9 million per year.

Last December, Ligue 1 was valued between $10 billion and $14 billion, making the league’s media rights a hot commodity for potential investors.

Earlier this month, Silver Lake, Oaktree Capital, Hellman & Friedman, and CVC submitted binding bids for the stake, according to Reuters.Reports stated [[link removed]] that Bain Capital, Advent International, and French private equity firms Adrian and BPI also submitted offers.

Bridgepoint Group, Apollo Global Management, EQT Partners, and KKR & Co. were also reportedly interested in bidding as well, though it’s unclear if they did.

Nothing New

In December 2021, Spain’s La Liga ratified [[link removed]] its agreement with CVC for a stake in the league’s media rights. CVC struck a deal worth $2.3 billion in exchange for an 8.2% stake in a new company that will hold media rights for the Spanish soccer league.

The deal, which lasts 50 years, has been opposed by La Liga’s Real Madrid, Barcelona, and Athletic Bilbao. The clubs filed a lawsuit against the pact shortly after it received approval from 37 of the league’s 42 teams, calling the deal “ruinous” for Spanish football.

IN PARTNERSHIP WITH KAULIG RACING

The Path to Racing Success

Matt Kaulig [[link removed]] doesn’t fit the mold of a typical NASCAR team owner. He isn’t a former driver, he is a business owner and former sponsor who saw the value of the marketing behind NASCAR.

From starting LeafFilter in his basement to establishing a winning racing team, Kaulig has continually developed new ventures that flourish. In just six years, Kaulig Racing [[link removed]] has established itself as a leader of the next generation of NASCAR.

In the first episode [[link removed]] of our new series, Behind the Wheel: Inside the Next-Gen of Racing, our Editor in Chief Ernest Baker chats with Matt Kaulig on his unconventional path to racing, success, and what he’s learned along the way.

Watch now [[link removed]].

With Sweet 16 Berth, Saint Peter’s Earns Millions In Publicity

Robert Goddin-USA TODAY/Design: Alex Brooks

Saint Peter’s is the first men’s basketball program in the Metro Atlantic Athletic Conference to make the Sweet 16.

The Peacocks’ Cinderella run has thrust the entire school into the national spotlight, and the publicity-related rewards could extend far beyond the hardwood.

Between about 7 p.m. on March 17 and 8 a.m. Monday, the Peacocks earned exposure worth close to $71 million, Apex Marketing Group confirmed to Front Office Sports. The Action Network first reported the metric.

There are already other noticeable short-term impacts:

The school was the top seller for vendor Trevco this weekend, a university spokesperson told FOS. Sales topped $40,000.Apparel company Homefield started selling Saint Peter’s t-shirts on Sunday. By 1 p.m. ET Monday, the company had already sold 530, per founder and CEO Connor Hitchcock. Star Doug Edert had about 1,500 Instagram followers in January, according [[link removed]] to MarketPryce. He now has more than 20,000. The Big Metric

The biggest financial reward a school can receive — besides the units it earns for its conference — is an increase in enrollment.

Several studies have been published [[link removed]] on the subject, including one titled “The Cinderella Effect: The Value of Unexpected March Madness Runs as Advertising for the Schools.” It found the quantity of applications didn’t go up, but “freshmen enrollments increase for private schools two academic years after a Cinderella run.”

Endeavor Might Be Forced To Sell MiLB Teams

Grace Hollars/IndyStar/Design: Alex Brooks

Endeavor could soon be forced to sell the nine minor league baseball teams it bought in December following the Major League Baseball Players Association’s investigation into the deals.

The MLBPA was looking into whether Endeavor’s purchases violated [[link removed]] its agent regulations, as the company also owns talent agency WME Sports.

Endeavor says that the teams it acquired are operated in a separate entity called Diamond Baseball Holdings and believes there is no conflict of interest.MLBPA-certified agents Jon Rosen, Jim Murray, and Michael Stival are all employed by WME Sports.

In January, the MLBPA warned [[link removed]] WME Sports agents that they would be decertified if they don’t divest from the company.

“The resolution of this dispute may have an adverse impact on our business and may include a sale of our baseball agency business or a sale of DBH,” the company stated in its SEC filing.

Endeavor highlighted that failure to manage conflicts of interest could affect its reputation and financial condition.

Sports Spending Spree

Along with WME, Endeavor owns UFC, Professional Bull Riders, and Euroleague basketball, which all contributed to $1.5 billion in fourth-quarter revenue [[link removed]].

Financial terms of the minor league team acquisitions were not disclosed, but the teams consisted [[link removed]] of Triple-A, High-A, and Single-A affiliates.

SPONSORED BY NIELSEN

How Shifts in Fan Behavior Are Impacting Sports Sponsorships

Consumer trends [[link removed]] have altered how fans interact with each other and with sports properties, resulting in major changes in sports sponsorship models.

One trend that has dominated the conversation over the last several years is the burgeoning world of crypto currencies [[link removed]]. As this industry has grown, its prominence as a sponsorship category has grown exponentially – from 2019 to 2021, the number of crypto, blockchain or NFT sponsorship deals has increased by more than 1,000%.

Learn more [[link removed]] about shifts in fan behavior and how they are impacting how brands and rights holders model sports sponsorships in Nielsen’s latest report.

Conversation Starters One of the NFL’s most unwieldy contracts is on the move. On Monday, the Atlanta Falcons traded quarterback Matt Ryan [[link removed]] to the Indianapolis Colts in exchange for a third-round pick. The Falcons’ all-time leader in wins (120), pass yards (59,735), pass TDs (367), and completions (5,242) is joining a Colts team that will have a new starting QB for the fifth straight season. Subscribe to Scoreboard for more [[link removed]] on the trade. An Oakland City Council member is reportedly [[link removed]] considering sponsoring a ballot measure to let voters decide on the Oakland A’s proposed waterfront ballpark. White Oak has granted Solace Capital Partners a $40 million term loan [[link removed]] for its acquisition of Sun Mountain Sports. Nine soccer clubs in the League of Honduras have secured deals [[link removed]] with online sports betting operator Betcris. Today's Action

NHL

08:07 PM

Golden Knights (+115) at Jets (-135)

Bet Now [[link removed]]

NBA

07:00 PM

Warriors (-400) at Magic (+300)

Bet Now [[link removed]]

NHL

07:37 PM

Flyers (+130) at Red Wings (-150)

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 purchased any Nike products in the last three months?

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

Monday’s Answer

31% of respondents own at at-home rowing machine.

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

MORE FROM FRONT OFFICE SPORTS:

The Leadoff [[link removed]] - Daily business of sports podcast

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

Front Office Sports Scoreboard [[link removed]] - The biggest stories in sports and the numbers behind them

*If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2357)(IL). Gambling problem? Call 1-800-GAMBLER (NJ/WV/PA/MI), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN). 21+. NJ/PA/WV/IN/IA/CO/IL/TN/MI/VA only. Odds and lines subject to change. Eligibility restrictions apply.” See [[link removed]] for details.

Copyright © 2022 Front Office Sports. All rights reserved.

80 Pine Street Suite 3202 New York, NY 10005

If this email was forwarded to you, you can subscribe here [[link removed]].

Advertise [[link removed]] / Update your preferences [link removed] / Unsubscribe [link removed]