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 a piece of its business to another leader in the industry, or to a private equity firm. 

• Potential investors include 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 for a sale, saying the fitness giant cannot reverse its slide as a public company. Peloton reported a net loss of $439 million in fiscal Q2 2022, up from a $55 million loss in Q2 2021.

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

There’s a Catch 

In April, Peloton announced 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.

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 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 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 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.

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 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, with the equine industry creating around 55,000 jobs statewide.
• The 147th Derby generated $35 million with limited capacity because of the pandemic.

Churchill Downs houses 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 $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.

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 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 — 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.