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 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 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 fourth-quarter revenue to land between $675 million and $700 million, short of analysts’ expectations of $821.7 million.

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. 

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 $375 million.

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

• The seven-time Super Bowl champion will earn $332 million in salary and bonuses over his NFL career, according to Spotrac.
• 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.”

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 $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 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 mini-golf each year, and the industry’s annual revenue exceeds $1 billion.