Live sports aren’t coming to Netflix anytime soon. 

On Tuesday’s earnings call, Netflix co-CEO Ted Sarandos said that the company would “have to see a path to growing a big revenue stream and a great profit stream with it” before it could add live sports.

But even if the streamer doesn’t offer live sports, it isn’t completely missing out. Sarandos added that the company will continue to explore sports-related content and documentaries.

• Netflix has seen great interest in its “Formula 1: Drive to Survive” docuseries, and launched its fourth season last month. 
• Since the show debuted, F1’s viewership has increased nearly 50%. Netflix co-CEO Reed Hasting previously said it would consider buying the rights to F1.
• The streamer has also expanded into gaming, building on its storytelling knowledge. “We think we can build a big revenue and profit stream by adding games,” Sarandos said.

Netflix’s Nightmare

The company has bigger concerns at the moment than hopping into live sports. The streamer reported its first quarterly subscriber loss in more than 10 years — 200,000 customers, a significant difference from its expected addition of 2.5 million. 

As of market close on Wednesday, the company’s stock was down more than 35%, dropping the company’s value by more than $45 billion. Despite the low numbers, Netflix’s first-quarter revenue still increased 10% to $7.9 billion.

On Wednesday, Lululemon announced an ambitious business plan following a historic fiscal year.

The athletic apparel retailer’s “Power of Three x2” strategy states that it will reach $12.5 billion in revenue by 2026 — twice the amount it earned in 2021.

Lululemon will continue its investment in women’s apparel and the North American market. But it will put significant emphasis on growing two other areas of the business: menswear and the international market.

• By 2026, the company plans to increase men’s apparel revenue to twice the amount it garnered in 2021.
• Its international market revenue should quadruple, the brand said.
• Over the next five years, Lululemon expects a 15% growth in total net revenue CAGR.

The plan also includes a component for environmental sustainability and supporting diversity.

CFO Meghan Frank called the plan “bold but realistic” in a statement.

A Historic Year

The news follows Lululemon’s March earnings report release, which revealed the company earned a total of $6.25 billion in annual revenue in 2021 — a record.

A large chunk of those sales came during the fourth quarter, when Lululemon earned $2.1 billion in total revenue.

Name, image, and likeness collectives — groups of alumni, boosters, donors, and/or local businesses that have pooled funds to offer deals to a specific school’s athletes — have begun forming nationwide. 

After just a few months, it appears they’re starting to make an impact on the football recruiting landscape — by offering six- to seven-figure checks to future players.

• Two football recruits have signed deals with collectives for $1 million or more, and one has signed a contract for $500,000, according to The Athletic.
• The outlet previously reported that a 2023 recruit signed a whopping $8 million deal with their school’s collective.

The news demonstrates how some have found ways to use NIL as an aboveboard form of pay-for-play. 

The NCAA has yet to publicly come down on schools for these issues. But with the current legal landscape, it may not have the authority to stop them.

Coaches’ Conundrum

Multiple high-profile FBS coaches have slammed the new NIL developments, including Clemson’s Dabo Swinney, Alabama’s Nick Saban, and UNC’s Mack Brown.

“It needs to be stopped — or it’s going to change the direction of college football,” Brown said Tuesday following spring practice.

It’s unclear whether NIL collectives themselves will severely alter the recruiting landscape or just become the latest tool for the wealthiest programs and their allies to bait recruits — as they already do with perks like lavish locker rooms and other promises.

The Atlanta Braves have reversed their stance on not asking for public funding for a development in Cobb County, submitting a $200 million request.

The team had pledged to privately develop the area surrounding Truist Park, which opened in 2017 with the help of $300 million in public funds.

• Representatives of the Braves and Truist Financial presented a proposal to Cobb County officials on Tuesday asking for tax breaks to help cover the cost of a planned $200 million, 250,000-square-foot office tower overlooking the ballpark.
• Braves officials disputed the notion that they were going back on their word, saying that the team isn’t asking for the tax breaks, “Truist is.”
• The bank holding company will lease space in the new development, which will be owned by the Braves.

Public Enemy

The Buffalo Bills secured $850 million, including $600 million from New York State — a deal that did not poll well among New Yorkers. On Tuesday, the Carolina Panthers terminated a planned $800 million headquarters over a public funding dispute.

Commissioner Rob Manfred has reportedly sought to retain a precedent of public funding for new stadiums, which could complicate a potential move to Las Vegas by the Oakland A’s.

It is not clear if a lack of public funds would derail the planned development. Truist has already announced relocations related to the development, and a representative from the bank said the funding was “one factor” that would determine the scope of the project.