March 23, 2022

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Formula 1’s popularity in the U.S. continues to gain steam. The 2022 Bahrain Grand Prix season opener drew 1.35 million U.S. viewers — the most-watched F1 race on cable since 1995.

NFL Opens Door to Blockchain Deals

Kirby Lee-USA TODAY Sports/Design: Alex Brooks

Crypto companies have voraciously sought sports sponsorships — and now they can do so with the most popular league in the U.S.

The NFL adjusted [[link removed]] its policy toward blockchain-based companies on Tuesday, permitting teams to seek sponsorships in that realm.

The move allows for “promotional relationships without undertaking excessive regulator or brand risk.”

The league initially blocked all team sponsorships with crypto and blockchain-related companies.Teams are still barred from advertising blockchain companies on stadium signs and may not promote cryptocurrency or blockchain fan tokens.Team deals will be no longer than three years, for now.Teams were also granted certain permissions to pursue NFT partnerships. In September, the league struck [[link removed]] a deal with NBA Top Shot producer Dapper Labs on an NFT project.

Teams may see the Golden State Warriors’ $10 million deal with crypto trading platform FTX as a precedent when negotiating.

The league will discuss the changes with owners at the league’s annual meetings, which commence on Saturday.

Official Crypto Sponsor

The NFL itself could open the bidding for its official blockchain sponsor. Coinbase became [[link removed]] the NBA’s exclusive cryptocurrency platform sponsor in a four-year, $192 million pact in October.

The Los Angeles Lakers renamed their home Crypto.com Arena in November in a $700 million deal.

Top 20 Soccer Clubs Total $9B In 2020-21 Revenue

Manchester City FC/Design: Alex Brooks

Deloitte’s Football Money League report, which covers the highest revenue-generating soccer clubs, found that the top 20 combined for $9 billion in revenue during the 2020-21 season.

In soccer’s first full season since the start of the pandemic, teams saw revenue grow [[link removed]] 1% from the season prior, but nowhere near the $10.3 billion brought in during the 2018-19 season.

For the first time ever, Manchester City jumped five spots to become the top earner on the list, bringing in $711.3 million. And for the first time, it landed ahead of Manchester United, which brought in the fifth-highest revenue at $615.5 million.

Real Madrid took second, recording revenue of $706.7 million.Bayern Munich was third with $674.4 million in revenue.Barcelona, which topped last year’s list, dropped to fourth with $642.1 million.

The Wolverhampton Wanderers made the list for the first time with $241.8 million in revenue, and Aston Villa made its first appearance on the list in 10 years with $228.7 million.

Soccer Segments

The Premier League took over the list with 11 clubs, La Liga placed three, Serie A and the Bundesliga had two each, and Ligue 1 and the Russian Premier League ended with one each.

Average revenue for the teams dropped 12% from 2018-19 to $451.1 million, with matchday revenue at $122.4 million, the lowest in the study’s history. Deloitte says clubs may have missed out on more than $2.2 billion during the last two seasons.

SPONSORED BY KORE SOFTWARE

Unpacking the Industry in 2021

Using their unmatched insights and data set, KORE examines the state of the sport and entertainment industry in 2021 with their first annual review [[link removed]].

KORE provides readers with a retrospective outlook [[link removed]] of the current state of the industry, as well as what to expect next, by diving into how brands are spending in sponsorship, the return of the fan, and how the future of sponsorship is trending.

Download the report [[link removed]] to read about industry trends, the ones to watch and what’s next.

Judge Rejects Attempt to Block $320M Angel Stadium Sale

Kirby Lee-USA TODAY Sports/Design: Alex Brooks

The sale of Angel Stadium moved closer to being finalized on Monday after a judge rejected [[link removed]] claims that the City of Anaheim failed to meet due process requirements.

The lawsuit dates back to a 2019 agreement by the city to sell the stadium and surrounding 150 acres to SRB Management, a new company started by Los Angeles Angels owner Arte Moreno.

“None of these claims have merit,” Orange County Superior Court Judge David Hoffer wrote, rejecting the People’s Homeless Task Force’s notion that the sale was negotiated without sufficient public input.

The $320 million transaction calls for $150 million for the city and $170 million for affordable housing and a park.The deal entails the construction of a mini-city surrounding the stadium with hotels, shops, and restaurants.Moreno agreed to keep the Angels in Anaheim through 2050 as part of the pact. The team’s current lease runs to 2038.The city would get 466 units of affordable housing and $652 million in tax revenue over 30 years, according to a study commissioned by Moreno.

The two sides have 10 days to file an appeal of Hoffer’s ruling.

State Settlement

The sale also received pushback from the California Department of Housing and Community Development, which ruled that it violated an affordable housing law.

Anaheim and the state government are negotiating a settlement, which could force the city to pay a $96 million fine that would be used to expand affordable housing in Anaheim.

Sony Acquires Another Gaming Studio

Sony/Design: Alex Brooks

Sony is once again adding its name to the recent flurry of acquisitions taking place across the gaming industry.

The tech giant has agreed to acquire Montreal-based video game development company Haven Studios for an undisclosed amount. Sony and Haven Studios will work together to develop new and original intellectual property with a multiplayer experience for PlayStation consoles.

The deal for Haven Studios adds to a growing list of acquisitions by major gaming companies.

In January, Microsoft announced plans to acquire [[link removed]] video game holding company Activision Blizzard in a $68.7 billion, all-cash deal.Earlier this month, Epic Games announced plans to acquire independent music storefront Bandcamp for an undisclosed amount.

Sony’s purchase also marks its second gaming-related acquisition in 2022. In January, the Tokyo-based company agreed [[link removed]] to acquire video game developer Bungie, the original creator of “Halo,” in a deal valued at $3.6 billion. Sony’s deal for Bungie follows Microsoft’s acquisition of the company in 2000 for an undisclosed amount. Bungie split from Microsoft in 2007.

Hot and Cold

Sony generated [[link removed]] $26.5 billion in revenue in the quarter ending Dec. 31, 2021, a 12.5% increase year-over-year.

The company saw its gaming sales reach $7 billion during the quarter, an 8% drop compared to the same period the year prior, due to the semiconductor shortage plaguing the tech industry.

Sony also reported $2.3 billion in gaming hardware sales, a 22.3% downtick year-over-year.

SPONSORED BY FIDELITY

Renee Montgomery started her career in Storrs, Connecticut, where she was a key cog in the UConn Huskies’ 2009 Women’s National Championship team.

Drafted 4th in the WNBA, she won 2 WNBA championships while also being named an All-Star and 6th Woman of the Year in her 11-year professional career. Renee retired in 2021 after sitting out the 2020 season to focus on social reform and justice.

Her basketball career was just a precursor to her second act, which includes titles such as podcast host, sports broadcaster, Vice President and Co-Owner of multiple professional sports teams.

Most recently, she expanded into the entertainment world with the launch of Think Tank Productions with her wife Sirena Grace.

In the latest episode of Second Acts, sponsored by Fidelity [[link removed]], Renee shares her journey from WNBA star to sports business and media mogul. Watch now [[link removed]].

Conversation Starters The Rising 25 Award is back! We’re looking for the brightest young stars in the business of sports. Nominations for the Class of 2022 are open through April 18th. [[link removed]] Safelite secured a deal [[link removed]] with the Columbus Blue Jackets to become the NHL team’s first-ever jersey sponsor. The Blue Jackets are the first team in the league to announce a sponsor for all three jerseys. Speedo has reportedly [[link removed]] terminated its deal with Russian swimmer Evgeny Rylov for attending a pro-war rally. Phil Mickelson will not [[link removed]] play in the Masters golf tournament for the first time in 28 years. Naomi Osaka has signed [[link removed]] a “long-term partnership” with cryptocurrency exchange FTX in which the tennis player will receive an equity stake in the company. Today's Action

NHL

10:07 PM

Blackhawks (+100) at Ducks (-120)

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NBA

07:30 PM

Jazz (+205) at Celtics (-255)

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NHL

09:37 PM

Canucks (+205) at Avalanche (-240)

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*All times are EST unless otherwise noted.

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

Question Of The Day

Do you think the NFL will eventually allow cryptocurrency promotions?

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

Tuesday’s Answer

45% of respondents have purchased a Nike product in the last three months.

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

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