May 17, 2022

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Nike is honoring its 50th anniversary by bringing back [[link removed]] a series of classic ads. This week, the sportswear giant teased a one-minute commercial on Twitter called “Seen It All” featuring Mars Blackmon — a character played by Spike Lee in his 1986 film “She’s Gotta Have It” and in several Nike ads beginning in the late ‘80s, famously starring opposite Michael Jordan.

Women Joining Sports Betting Apps at Faster Rate Than Men

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Sports betting is gaining popularity as it becomes legalized in more states, and last year, the amount of women participating grew at a much faster rate than that of men.

More than 4.6 million women joined [[link removed]] sports betting apps in 2021, according to Global Wireless Solutions, and female user rates grew 115% compared to 2020.

FanDuel added around 1.7 million female users last year.DraftKings brought in an estimated 900,000 women.

While the number of men on sports betting apps was 250% more than women in 2021, men’s growth rate was only 63%.

Some of the biggest sportsbook apps in the U.S. reportedly now have more female users than male, including BetRivers and its associated New Jersey outlet SugarHouse (54% to 46%). Fewer than 380,000 men signed up with the company last year, compared to around 600,000 women.

Despite the higher growth rate, women use the apps less frequently than men. The study found that 70% of women engage with the apps for a mere one-to-five weeks per year compared to 61% of men.

New Numbers

The overall number of sportsbook app users has doubled over the last two years, with the top 5% of users claiming more than half of all app usage.

In 2021, sports betting revenue increased 179.7% from 2020 to a record [[link removed].] $4.3 billion from [[link removed]] $57.2 billion in handle.

McLaren to Acquire Mercedes’ Formula E Team

McLaren Racing

Mercedes-Benz won’t be racing in Formula E next season, but its team will be: McLaren is acquiring Mercedes’ squad and will join the series for its ninth season.

The transaction replaces one major racing name with another, after Mercedes stung [[link removed]] the all-electric racing series last August with its announcement that it will not compete in the series after this year.

Formula E CEO Jamie Reigle hailed the news, saying that the series will be “the only place to see McLaren go head-to-head with historic motorsport names including Porsche, Jaguar, Maserati, and Nissan.”McLaren CEO Zak Brown added that “Formula E has racing at the center but will be strategically, commercially, and technically additive to McLaren Racing overall.”McLaren also competes in Formula 1, IndyCar, and Extreme E.

The ninth season will be the first for Formula E’s Gen3 vehicle, which was unveiled last month.

Racing as Marketing

The team will continue to be led by Ian James, who is transitioning to McLaren after around 20 years at Mercedes.

Prior to the announcement, James noted to Front Office Sports that the pandemic and Mercedes’ push to go all-electric in its consumer models by 2030 forced tough decisions.

“Motorsport is a testbed for new technologies that can then filter through into the road cars, but it’s also a marketing platform,” said James.

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‘NBA 2K22’ Drives Take-Two to $930M in Q4 Revenue

2K

Take-Two Interactive exceeded its own expectations in the company’s latest earnings report behind impressive sales of “NBA 2K22.”

The company, which owns major video game publishers including Rockstar Games and 2K, generated [[link removed]] $930 million in revenue in fiscal Q4, surpassing its forecast [[link removed]] of revenue ranging between $835 million and $885 million.

The stronger-than-expected-quarter is a jump from the $839.4 million in revenue Take-Two reported in fiscal Q4 2021.

The “Grand Theft Auto,” “NBA 2K,” and “Red Dead Redemption” franchises, in particular, drove results.

Digitally delivered revenue reached $833 million in fiscal Q4, up 9% year-over-year.The largest contributor was “NBA 2K22” with over 10 million copies sold since Sept. 9, 2021.Over 165 million copies of “GTA V” have been sold to date.

Take-Two has planned 18 releases for the rest of the year, including a new 2K sports title.

The company also has a unique opportunity to tap into the world’s most popular sport after FIFA decided not to renew [[link removed]] its deal with Electronic Arts last week. However, there are “no current plans to discuss” a deal between Take-Two and FIFA, according [[link removed]] to CEO Strauss Zelnick.

Expanding Portfolio

In January, Take-Two announced [[link removed]] it will buy mobile game maker Zynga in a deal valuing the company at an implied enterprise value of $12.7 billion.

The acquisition will be funded with $2.7 billion in financing from JPMorgan Chase, Take-Two’s balance sheet, and a debt issuance.

As NCAA Threatens More NIL Regulation, States Back Off

Jenna Watson/IndyStar

Last week, the NCAA announced revised NIL guidelines meant to discourage schools and boosters from using deals as recruiting inducements — and said some programs could be subject to investigation.

But while the governing body attempts to exercise more regulation over NIL, another group is doing the exact opposite: state legislatures.

Since 2019, 24 states have passed NIL laws, according [[link removed]] to a Bloomberg tally.

Originally, the laws were put in place to ensure that athletes could participate in NIL even if the NCAA didn’t change its own policy. Now it’s clear that some laws prohibit moves that could help schools with recruiting — like the ability for athletic department staff to arrange deals for athletes.

Many states are now repealing or amending [[link removed]] their laws to help their local schools:

In February, Alabama became the first state to fully repeal its law.An amendment to Missouri’s law allowing [[link removed]] schools to arrange deals was passed last week and awaits the governor’s signature.Mississippi passed a similar amendment.Legislators in Florida are considering loosening their restrictions, as well. Enforcement Conundrum

As the Bloomberg article pointed out, it’s unclear how states plan to police deals that violate their own laws. So far, none have publicly punished schools or athletes for NIL activity.

It may not behoove them to reprimand their own local schools and athletes, either. That alone could make a state look like a less-than-friendly destination for an athlete seeking deals.

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Conversation Starters Some of the beverage prices for this weekend’s PGA Championship have folks talking [[link removed]], with water coming in at $6 a bottle and beer prices reaching $19. A number of outlets reported [[link removed]] Drew Brees would not return to NBC after one season as a studio and game analyst, but Brees tweeted that he was undecided on his next steps. Michael Jordan’s 23XI Racing team won the AdventHealth 400 at Kansas Speedway on Sunday, marking the six-time NBA champion’s second [[link removed]] NASCAR victory. From the PGA Championship to the French Open & the Indy 500, Atmosphere Sports is bringing sports back to the center. Learn more [[link removed]].*

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Question Of The Day

Does your company leverage hospitality opportunities to engage clients or prospects?

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Monday’s Answer

38% of respondents have invested in cryptocurrency.

Disclaimer

*The “Contest” is open only to individuals who are at least 21 years old at the time of entry, and are legal residents of the 50 United States or the District of Columbia (excluding Washington and Nevada). Void where prohibited or restricted by law.

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

Written by Abigail Gentrup [[link removed]], Owen Poindexter [[link removed]], Justin Byers [[link removed]], Amanda Christovich [[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

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