From Front Office Sports <[email protected]>
Subject Peloton Nears Minority Stake Sale
Date May 6, 2022 11:29 AM
  Links have been removed from this email. Learn more in the FAQ.
  Links have been removed from this email. Learn more in the FAQ.
May 6, 2022

Read in Browser [[link removed]]

POWERED BY

There’s no better place to throw a party than South Florida, and Miami’s Hard Rock Stadium complex will host a Super Bowl-style Formula 1 grand prix race on Sunday. About 300,000 people — and some of the most famous DJs — are in town all week as the region turns one race into a week-long party.

The FOS feature live from Miami drops in our Saturday morning newsletter. 🏎

Peloton Eyes Investor to Acquire 15% to 20%

Peloton

Peloton is pursuing potential investors that could acquire a stake of around 15% to 20% in the fitness company, according to The Wall Street Journal.

No deal is imminent, but the fitness giant is looking to sell [[link removed]] a piece of its business to another leader in the industry, or to a private equity firm.

Potential investors include [[link removed]] Amazon and Nike.Its value currently sits at around $5.6 billion but has reached nearly $50 billion.Shares of the company were down more than 3% in after-hours trading on Thursday.

Peloton’s willingness to relinquish a stake in the company comes as no surprise after activist investor Blackwells Capital — which holds less than a 5% stake — called [[link removed]] for a sale, saying the fitness giant cannot reverse its slide as a public company. Peloton reported [[link removed]] a net loss of $439 million in fiscal Q2 2022, up from a $55 million loss [[link removed]] in Q2 2021.

Change is hopefully coming for Peloton, as it recently hired McKinsey & Co. to evaluate [[link removed]] its cost structure and potentially eliminate jobs.

There’s a Catch

In April, Peloton announced [[link removed]] it is cutting the prices of its hardware but raising its subscription fee. The original Peloton bike’s price dropped $300 to $1,195, the Bike+ fell $500 to $1,995, and the treadmill’s was cut by $150 to $2,345.

Subscription fees increased $5 each month to $44 in the U.S. and $4 each month to $55 in Canada, but no other international markets saw an increase.

WNBA Tips Off Season With Major Momentum, Somber Tone

Joe Camporeale-USA TODAY Sports

The WNBA’s 2022 season tips off Friday with arguably more momentum behind it than ever before — whether due to rising viewership or deeper pockets.

The league’s 2022 draft, held last month, notched [[link removed]] more than 400,000 viewers — 20% more than last year and a record since 2004.The trend follows a pattern of overall viewership growth during last year’s season.The WNBA also announced [[link removed]] a $75 million capital raise in February, lifting the league’s total valuation to $1 billion.

The excitement comes, however, amid internal controversy.

Commissioner Cathy Engelbert said funds will not go toward immediately increasing player salaries or providing accommodations like charter flights. An SI report [[link removed]] in March detailed how the New York Liberty were punished by the league for providing charter flights. Players expressed their outrage on social media.

Earlier this week, the Seattle Storm’s Breanna Stewart called for a CBA revision, decrying the lack of overall roster spots as rookies got cut.

A Somber Tone

However, the WNBA isn’t ignoring some of the more disturbing developments affecting its players.

The league announced all 12 teams’ courts would feature decals of the initials and No. 42 jersey of Phoenix Mercury star Brittney Griner, who has been detained in Russia since February.

The league also released a statement in support of reproductive rights after a draft of a Supreme Court decision was released earlier this week that, if codified, would overturn Roe v. Wade.

SPONSORED BY STIHL TIMBERSPORTS

The Most Extreme Race This Weekend

The STIHL TIMBERSPORTS® season kicks off tomorrow with the U.S. Trophy event, featuring the nation’s top-12 ranked lumberjack sports athletes. The competitors race through four disciplines, back-to-back, in grueling knockout matchups, all in less than two minutes – faster than the Kentucky Derby.

STIHL TIMBERSPORTS® [[link removed]], the Original Extreme Sport, started in 1985 at regional U.S. logging competitions and has grown to become a worldwide phenomenon with National Championships in 27 countries.

The Trophy event is the sport’s most physically demanding competition. Only the fastest will come out on top. Watch the U.S. Trophy event LIVE on YouTube [[link removed]] tomorrow, May 7, at 2 p.m ET.

Kentucky Derby Looks To Hit Its Pre-Pandemic Stride

Jim Owens-USA TODAY Sports

The 148th Kentucky Derby takes place this Saturday at Churchill Downs, held at full capacity for the first time since 2019 — and with full wallets to match.

Local officials anticipate the “most exciting two minutes in sports” will reach or exceed the $400 million the Derby weekend usually brings [[link removed]] in, higher than the initial projection of $324 million.

Separately, the Derby Museum says the event has a $217 million economic impact on the region, per an economic impact report [[link removed].], with the equine industry creating around 55,000 jobs statewide.The 147th Derby generated [[link removed].] $35 million with limited capacity because of the pandemic.

Churchill Downs houses [[link removed]] the exclusive Millionaires Row, which boasts $36,000 tables, and The Mansion, offering a $1,000 mint julep.

As of Wednesday, occupancy citywide was an estimated 85% — 2% more than in 2019. Downtown was estimated to be at 94% on Wednesday, just short of the pre-pandemic rate of 97%.

Last year, Churchill Downs announced [[link removed]] $211 million in renovations to be completed by 2024. Next year’s Derby is expected to have 7,100 all-inclusive seats as part of the Turn 1 Experience, with upgrades to the Homestretch club, a new hotel, gaming positions, and amenities at Derby City Gaming coming later.

Four-legged Finances

The Derby has a prize purse of $3 million, with the winner receiving $1.86 million — a remarkable separation from second place’s $600,000.

The Kentucky Oaks event at Churchill Downs on Friday — a race for 3-year-old female horses — has a $1.25 million prize purse [[link removed]].

WWE Revenue Jumps 27% to New Record

Joe Camporeale-USA TODAY Sports

WWE reported a 27% increase in first-quarter revenue to $33.4 million, a quarterly record for the entertainment company. Net income reached $66.1 million, up from $43.8 million the year prior.

Operating income rose [[link removed]] 42% to $92.4 million during the first three months of the year, when WWE landed a number of deals.

The company expanded its original programming deal with A&E, which includes more than 130 “new hours of WWE-themed series and specials.”WWE announced a new broadcasting deal with MBC Group to air live events, live episodes of “Raw” and “Smackdown,” and additional WWE content.It also struck a deal with Fanatics — which has a $27 billion valuation [[link removed]'s%20$320M%20Investment%20Led%20Fanatics%20Funding%20Round&text=Major%20leagues,%20players%20associations,%20and,at%20a%20$27%20billion%20valuation.] — for NFT trading cards, e-commerce, and licensed merchandise.

WWE 2K22, the company’s flagship video game, also made its debut during the quarter.

The WrestleMania Movement

WWE’s flagship event WrestleMania took place at the start of the second quarter, providing insight into the company’s next earnings report, when it expects to earn an all-time record in revenue. WrestleMania became WWE’s highest-grossing and most-attended event in its history with 156,352 fans.

WrestleMania was also the most-viewed WWE premium live event in the company’s history — a respective 54% and 61% increase for unique viewership globally and domestically. It trails only Super Bowl LVI for the most-watched event on Peacock to date.

SPONSORED BY NIELSEN

How Women's Sports are Changing Sponsorship Models

Historically bundled with men’s sponsorship opportunities, often as an afterthought, properties are increasingly unbundling them amid rising interest [[link removed]] and investment in women’s sports overall.

Rights holders are also capitalizing on the increased interest, as evidenced by examples like last year’s TV deal between the Women’s Super League (WSL) and both the BBC and Sky Sports – during the first three months of the 2021-2022 WSL season, per-game viewership [[link removed]] was up more than 500%.

With more women’s sports being televised and increased sponsorship opportunities specific to women’s sport, many brands are effectively reaching consumers they weren’t reaching through sponsorships in men’s sport.

Learn more [[link removed]] about the impact of women’s sports on sponsorship models in Nielsen’s latest report.

Conversation Starters Average attendance for the NWSL’s opening weekend hit a new record [[link removed]] of 10,000 fans per game. The previous record was in 2016 with 7,880 viewers. Miami Heat’s Tyler Herro, this season’s recipient of the Sixth Man of the Year award, finished with 18 points and seven rebounds against the 76ers on Wednesday. The youngest player to ever win the award is only earning [[link removed]] $4 million this year. The Seattle Sounders became the first [[link removed]] MLS club to win the CONCACAF Champions League on Wednesday. Netflix’s “Formula 1: Drive to Survive” has been renewed [[link removed]] for its fifth and sixth seasons. Question Of The Day

Do you plan to watch or attend a WNBA game this season?

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

Thursday’s Answer

58% of respondents plan to watch the NHL’s Stanley Cup Playoffs.

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

Written by 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 Pro [[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

Front Office Sports Learning [[link removed]] - Education at the speed of culture

Copyright © 2022 Front Office Sports. All rights reserved.

80 Pine Street Suite 3202 New York, NY 10005

Advertise [[link removed]] / Update your preferences [link removed] / Unsubscribe [link removed]
Screenshot of the email generated on import

Message Analysis