Ted Leonsis could add a huge piece to his Washington, D.C., sports empire.

The owner of the Washington Wizards, Capitals, and Mystics is reportedly interested in purchasing the Washington Nationals, who are considering a sale. 

Leonsis owns those teams, their home venue Capital One Arena, and a handful of other properties through Monumental Sports & Entertainment, which he founded and leads as CEO and chair.

Leonsis would reportedly team up with Carlyle Group co-founder David Rubenstein, who has a net worth of $4.1 billion, per Forbes. Leonsis has a net worth of $1.6 billion. 

• The Nationals were purchased by the Lerner family for $450 million in 2006. Ted Lerner, 96, handed management of the team over to his son Mark in 2018.
• The team is valued at $2 billion by Forbes, 12th in MLB.
• Allen & Company, which handled the 2020 sale of the New York Mets for $2.4 billion, is conducting an exploratory process for the Nationals, who have not committed to a sale.

Sign Now, Pay Later

The Nationals have used deferred payments in major contracts and owe over $230 million to Max Scherzer, who signed with the New York Mets last offseason, and Stephen Strasburg, who is currently recovering from surgery.

The team also holds around $500 million in debt.

Peloton is cutting the prices of its hardware, but there’s a catch: The connected fitness company is also raising its subscription fee.

The original Peloton bike’s price will drop $300 to $1,195, the Bike+ will fall $500 to $1,995, and the treadmill’s cost will be slashed $150 to $2,345. 

Subscription prices will rise $5 each month to $44 in the U.S., $4 each month to $55 in Canada, and won’t jump at all in other international markets.

“We want more people to be able to afford our hardware,” the announcement read. “This is a strategic decision to play for scale and increase market share.”

• Hardware prices will drop at 6 p.m. ET on Thursday, and subscriptions prices won’t increase until July 1. The regular bike will ship for $250, the Tread for $350, the Bike+ for no charge.
• The company recently announced it would lower the price of its Guide strength-training device by $200.

Peloton’s CEO Barry McCarthy took over for John Foley in February, and the latest change is part of a comeback plan to focus on bringing in more recurring revenue. In March, the company began testing Peloton rentals for a monthly fee, which also includes its subscription service.

Blackwells Banter

Blackwells Capital, an activist investor that has less than a 5% stake in Peloton, is again pushing for a sale of the company, suggesting it’s made little-to-no progress under McCarthy. Shares have fallen nearly 35% since he became CEO.

The Bills are staying in Buffalo, but the team had other options, according to New York Gov. Kathy Hochul.

Responding to listener questions on WNYC, Hochul indicated that San Diego and other cities had reached out to the team.

“I was aware that they were being reached out to by other cities that have lost teams before,” she said. Hochul added that “a significant performer actually was coming forward with a plan to take them to Toronto.” 

“Buffalo’s a very small market,” Hochul continued. “There’s a lot more money to be had in larger cities like San Diego and others who would love to have a team.”

• St. Louis, Oakland, and San Diego have lost NFL teams in recent years.
• State legislators agreed on a $220 billion budget which includes $600 million for a new Bills stadium.
• Erie County is also chipping in $250 million.

Team owners Kim and Terry Pegula had threatened to move the team, reportedly floating Austin, Texas, as a potential destination.

City of Oakland v. Oakland Raiders

While the Raiders have played in Las Vegas since 2020, Oakland is appealing to the Supreme Court in a case against the team, which alleges that the NFL’s allowing the team to move and denying Oakland an expansion team represented a group boycott.

Ruth Henricks, who is suing the Chargers over their move to Los Angeles, wrote a brief in support of Oakland, saying the NFL harmed both cities when they couldn’t meet the league’s “extortionate” demands.

A SHOC Energy, an energy drink backed by Keurig Dr Pepper, has completed a $29 million Series B funding round that included a star-studded group of current and retired professional athletes. 

The company’s latest round featured MLB All-Stars Aaron Judge and Freddie Freeman, golfers Lexi Thompson and Brooks Koepka, NFL defensive lineman Chase Young, NASCAR driver Chase Elliot, and Pro Football Hall of Famer Michael Strahan. 

Existing investors Keurig Dr Pepper, co-founder Lance Collins, and VC firm 7-Ventures also took part in the round. 

A SHOC joins several emerging sports drink brands partnering with athletes to navigate a competitive market. 

• In February 2021, Ready Nutrition teamed up with NBA star Giannis Antetokounmpo and NFL Pro Bowler Aaron Donald.
• NBA star LeBron James became the face of energy drink Mtn Dew Energy after inking a deal with PepsiCo in March 2021.
• In July 2021, sports drink brand X2 Performance raised $16 million in a Series D round that included NFL star Saquon Barkley.

A SHOC also exceeded expectations, as the company originally sought to raise $18 million before high demand increased the round. The company’s post-money valuation was not disclosed. 

Promising Future

Collins has a wealth of experience in the beverage market. He founded Fuze Beverage, which Coca-Cola acquired in 2007 in a deal reportedly valued between $225 million and $250 million.

Keurig Dr Pepper bought his Core Nutrition brand in 2018 for $525 million. Collins was also a co-founder of BodyArmor, which Coca-Cola bought in 2021, valuing the brand at $6.6 billion.