May 10, 2022

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Mikyla Grant-Mentis continues to be a trailblazer on and off the ice. The 23-year-old just signed a one-year, $80,000 deal with the PHF’s Buffalo Beauts that will make her the highest-paid pro women’s hockey player in history. The deal [[link removed]] comes under the PHF’s new $750,000 salary cap.

Peloton Borrows $750M As Downward Cycle Spins

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Peloton reported third-quarter revenue of $964.3 million, a 24% year-over-year drop from the $1.26 billion it posted the year prior, and a net loss of $757.1 million, a significant difference from last year’s third-quarter net loss of $8.6 million.

The fitness company is running out of cash.

Peloton ended the quarter with $879 million in unrestricted cash and cash equivalents. Earlier this week, the company signed an agreement with JPMorgan and Goldman Sachs — the banks that led Peloton’s IPO — to borrow $750 million in five-year term debt.

The company fell short of analysts’ revenue estimates [[link removed]] of $972.9 million despite a net addition of 195,000 connected fitness subscribers during the quarter, a 42% year-over-year increase.

With a total of 2.96 million connected fitness subscribers, Peloton expects its higher subscription prices will lower that number.

Peloton announced [[link removed]] in April that subscriptions will raise by a respective $5 and $6 in the U.S. and Canada starting June 1, but hardware prices will fall.Connected fitness products generated $594 million in sales during the quarter. Subscriptions brought in $370 million.

As of market close Tuesday, the company’s stock was down 8.7%.

Tough Turnaround

In his effort to get Peloton on the right track, CEO Barry McCarthy said third-party retailers will soon be a part of the mix.

Peloton expects [[link removed]] fourth-quarter revenue to land between $675 million and $700 million, short of analysts’ expectations of $821.7 million.

Tom Brady Lands Richest TV Deal in History With Fox

Kim Klement-USA TODAY Sports

When he retires from the NFL, Tom Brady will step into the richest contract in sports TV history.

Brady will make between $20 million and $25 million a year as Fox Sports’ No. 1 analyst alongside announcer Kevin Burkhardt, sources told Front Office Sports [[link removed]].

That will carry the 44-year-old Brady past the $18 million annual salaries of Troy Aikman at ESPN and Tony Romo at CBS Sports.

Brady’s pact is believed to be longer than the typical five-year deal. His total deal could be as long as 10 years for $250 million, said sources. According to the New York Post, Brady’s 10-year-deal with Fox could be worth [[link removed]] $375 million.

By comparison, Aikman’s new deal will pay him over $90 million [[link removed]] over five years, while Romo’s will pay him $180 million [[link removed]] over 10 years.

The seven-time Super Bowl champion will earn $332 million in salary and bonuses over his NFL career, according to Spotrac [[link removed]].After briefly retiring in February, Brady announced he’s returning to the Tampa Bay Buccaneers for his 23rd NFL season. Fox Reports Earnings

Fox, which will televise two of the next three Super Bowls, announced Brady’s hire during its third-quarter earnings call on Tuesday.

The network reported $3.45 billion in revenue and $290 million in net income, bolstered by $1.3 billion in ad revenue.

Year-over-year profits were down, however, due to “increased digital investment, higher sports programming rights amortization and production costs, and the write-down of certain scripted entertainment programming.”

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Entertainment Venues Keep Drive Shack on Fairway

Drive Shack

Drive Shack, owner of golf-related leisure and entertainment businesses, generated $69 million in revenue in Q1 2022, up from $61 million for the same period last year.

The results were driven by Drive Shack’s American Golf segment, its traditional golf business, which posted [[link removed]] $54.6 million in revenue in Q1, a $1.8 million increase compared to Q1 2021.

The company’s entertainment golf business, which includes Drive Shack venues and indoor golf experience Puttery, generated $14.2 million in revenue during the quarter, a 72% increase compared to the same period last year. Despite the favorable growth, Drive Shack reported a net loss of $18.9 million in Q1 2022, up from a loss of $10.9 million in Q1 2021.

Its two Puttery locations generated $4.4 million in revenue in Q1 2022. Drive Shack venues reported a $1.6 million increase in revenue compared to Q1 2021.

Drive Shack has announced plans to invest in the development of new Puttery venues, and the company is on track to open seven locations by the end of 2022. In June, Drive Shack will open a Puttery in Washington, D.C., with venues coming to Houston and Chicago in Q3 2022.

Major Investment

In July 2021, four-time golf major champion Rory McIlroy and his investment group, Symphony Ventures, invested [[link removed]] in Puttery. Symphony has committed at least $10 million for 10% ownership of each venue that opens through 2023.

More than 130 million people play [[link removed].] mini-golf each year, and the industry’s annual revenue exceeds $1 billion.

Conversation Starters In The Leadoff, the world’s most popular sport sees growth in the U.S., the Indian Premier League plans to launch a women’s league as viewership rises, Adidas and Foot Locker are teaming up, and sports-focused streaming service FuboTV reports a record quarter. Click here to listen [[link removed]]. Formula 1 and NASCAR finished side-by-side at the stripe viewership-wise on Sunday. The inaugural Crypto.com Miami Grand Prix averaged [[link removed]] 2.6 million viewers on ABC, mirroring NASCAR’s viewership for the Goodyear 400 at Darlington Speedway that was broadcast on FS1, according to numbers released by the networks on Tuesday. On a New York Yankees roster stacked with marquee names and big contracts, a journeyman pitcher making just over league minimum is stealing the spotlight in the Bronx. On Monday, Nestor Cortes flirted [[link removed]] with a no-hitter against the Texas Rangers in the latest superb outing for the 27-year-old lefthander. Cortes (1-1) lowered his ERA to 1.41 against the Rangers — third in the American League. After months of speculation, one of soccer’s top prizes is finally on the move [[link removed]] to one of the sport’s biggest spenders — which could pay off in a first Champions League trophy. On Tuesday, Manchester City announced an agreement with Borussia Dortmund for the transfer of star striker Erling Haaland on July 1, 2022. Subscribe to Scoreboard for more [[link removed]].

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Market Movers

U.S. stocks were mixed on Tuesday. Here’s a look at how sports-related stocks performed:

MGM [[link removed]]

MGM Resorts International

[[link removed]]

$36.19

[[link removed]]

+0.78%

[[link removed]] GOLF [[link removed]]

Acushnet Holdings Corp

[[link removed]]

$40.29

[[link removed]]

-0.32%

[[link removed]] ARMK [[link removed]]

Aramark

[[link removed]]

$34.61

[[link removed]]

-1.28%

[[link removed]] FL [[link removed]]

Foot Locker Inc

[[link removed]]

$27.67

[[link removed]]

-2.47%

[[link removed]] VFC [[link removed]]

VF Corp.

[[link removed]]

$46.28

[[link removed]]

-4.58%

[[link removed]] ELY [[link removed]]

Callaway Golf Co.

[[link removed]]

$17.93

[[link removed]]

-4.63%

[[link removed]] (Note: All as of market close on 5/10/22) What to Watch

The Dallas Mavericks face the Phoenix Suns on Tuesday at the Footprint Center. The Western Conference second-round playoff series is tied 2-2.

How to Watch: 10 p.m. ET on TNT

Betting Odds: Suns -6 || ML -250 || O/U 215

Pick: Expect the Suns to bounce back from two consecutive losses. Take Phoenix to cover.

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Written by Abigail Gentrup [[link removed]], Michael McCarthy [[link removed]], Justin Byers [[link removed]]

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