May 24, 2022

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IN PARTNERSHIP WITH

There are two-way players and overachievers — and then there’s Coco Gauff. The 18-year-old tennis star, who has been splitting time between virtual high school classes and professional tennis, recently graduated while in Paris preparing for the French Open. 🎓

Electronic Arts Could Be Eyeing Merger With Media Giant

EA

Electronic Arts is reportedly looking to sell or merge with an entertainment conglomerate.

Several outlets indicated that Andrew Wilson, the video game company’s CEO, recently held discussions with NBCUniversal about a takeover, but the negotiations — which lasted several weeks — fell through because of price and structure disagreements.

That isn’t stopping EA from looking elsewhere. The company is reportedly [[link removed]] holding discussions with other giants like Amazon, Apple, and Disney, and if a deal comes to fruition, wants Wilson to stay on as boss.

The news comes amid other major changes to EA‘s games.

The company ended [[link removed]] its 30-year partnership with FIFA after the pair failed to reach an extension agreement — the duo will release their final collaboration this year. Without FIFA, the series will be called EA Sports FC and will not include World Cup and other FIFA-controlled events. EA Sports FIFA had [[link removed]] more than 150 million accounts during FY2022.In EA’s earnings report earlier this month, Wilson said [[link removed]] developer DICE will be “rethinking the development process from the ground up” for “Battlefield 2042,” adding that EA will take “a long view” on the franchise. ‘It’s in the Game’

EA wouldn’t be the first video game company to be taken over by a media giant. Earlier this year, Microsoft announced plans [[link removed]] to buy Activision Blizzard for $68.7 billion. Shortly after, Sony said it planned to purchase gaming studio Bungie for $3.6 billion.

Broncos, Potential Owners Take Next Step in Sale Process

Ron Chenoy-USA TODAY Sports

All five ownership groups bidding for the Denver Broncos reportedly submitted proposed amendments to the sale contract last week after their lawyers were asked to mark up the agreements before any exclusive negotiations are determined.

The requests [[link removed]] come ahead of the deadline for second-round bids in June.

The purchase amount could fetch a record price for a professional sports team. Outlets have indicated [[link removed]] the sale price could surpass $5 billion and possibly top the recent $5.2 billion price tag [[link removed]] for Chelsea FC, which is in the process of being finalized.

Todd Boehly, who is leading the consortium expected to take over Chelsea FC, also leads a group in the running for the Broncos.Rob Walton, heir to Walmart founder Sam Walton with a $58 billion net worth [[link removed]], is another bidder.Josh Harris, co-chair of Harris Blitzer Sports & Entertainment and a Philadelphia 76ers owner, leads a group that includes Earvin “Magic” Johnson.There are two other unknown groups vying for the team. Matter of Months

Sports Business Journal reported that the winning bid is expected to be announced before the start of training camp in July. The agreement will then be subject to full league vetting, final negotiations, and approval — a new owner is expected to officially be in place by Sept. 12, the start of the regular season.

IN PARTNERSHIP WITH KAULIG RACING

Forming the Next-Gen Racing Team

To build a winning team, Matt Kaulig established core values – having fun and being competitive. Whether in business or in sports, he knew that to win he had to build the best.

And that approach paid off – in NASCAR’s history, Kaulig Racing [[link removed]] is the fastest team to reach a win in the last 50 years.

In the second episode [[link removed]] of our new series, Behind the Wheel With Matt Kaulig, our Editor in Chief Ernest Baker chats with Matt Kaulig about the team’s early success, going from a one-car team to a three-car team, acquiring two charters, and partnering with Chris Rice.

Watch now [[link removed]].

EBay Taps Wayne Gretzky for NFT Launch

OneOf

EBay is launching an NFT platform with help from The Great One.

The longstanding resale and auction platform has partnered with NHL legend Wayne Gretzky on its first NFT collection.

The collectibles, starting at $10 and rising up to $1,500, consist of 3D-renderings and animations of signature Gretzky moves.EBay partnered with blockchain company OneOf to produce the NFTs. OneOf uses a proof-of-stake system which is more energy efficient than the more common proof-of-work systems.The Gretzky collection is the first in a series that eBay will produce featuring athletes who have appeared on the cover of Sports Illustrated.

With $87 billion in gross merchandise volume last year, eBay remains a major trading hub. The company’s app is third [[link removed]] among mobile retail platforms in U.S. users behind Amazon and Walmart.

“OneOf and eBay are bringing transformative Web3 technology to the next 100 million non-crypto-native mass consumers,” said OneOf CEO Lin Dai.

Top Grades

After removing [[link removed]] card-seller PWCC from its platform last year over fraud allegations (which PWCC categorically denies), eBay has been upping its own offerings in the trading card space.

Earlier this month, eBay began offering [[link removed]] grading services through Professional Sports Authenticator for cards over $2,000.

‘League of Legends’ Boosts Tencent’s $21.3B Quarter

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Video games accounted for 32% of Tencent’s total revenue in Q1 2022.

The Chinese tech conglomerate generated [[link removed]] $21.3 billion in Q1, an 8% increase year-over-year — the slowest revenue growth for the world’s largest video game developer since 2004.

The results edged the $20.2 billion in revenue the company generated in Q1 2021.

Tencent saw a surge in revenue in Q1 for its latest “League of Legends” title but declines in revenue from “Call of Duty Mobile,” “Moonlight Blade Mobile,” and other titles.

Domestic games made up 24% of Tencent’s total revenue in Q1.International games accounted for 8% of revenue, up from 7% in Q1 2021.

CNBC reported that Tencent has lost roughly $470 million in market value since its peak last year. The tech giant looks to get back on track after Chinese regulators resumed [[link removed]] approvals for new video game licenses in April, ending a nine-month crackdown on the world’s largest gaming market.

The decision to suspend licenses for new games comes after Chinese state media branded online games “mental opium” and added that they have a negative impact on the health of minors — which led to new regulations restricting children to three hours of gaming per week.

Imminent Changes

Last week, Tencent announced [[link removed]] that it will be changing the organizational structure of its sports business department. The conglomerate plans to cancel six of its internal business groups.

About 100 employees of the department will be laid off — roughly a third of its workforce.

SPONSORED BY FIDELITY

Inspiring Others With Imperfection

Shawn Johnson East [[link removed]] achieved her dreams of being an Olympic athlete and gold medalist by age 16. So naturally, when she retired four years later, she wasn’t sure what would come next.

The fame Shawn gained on the global stage presented her with opportunities on TV shows like Dancing with the Stars and Celebrity Apprentice, but her second act goes far beyond network TV.

She has published several books, is part-owner of a professional soccer team, and manages dozens of other businesses with her husband. She’s also a mother of two young children, the stars and subjects of their viral YouTube channel, The East Family.

Check out the latest episode of Second Acts [[link removed]], presented by Fidelity [[link removed]], to learn more about Shawn’s chaotic next chapter.

Conversation Starters When it comes to the business of sports, Front Office Sports has you covered — that’s why Digiday just named us a finalist for their Best Newsletter award. But we want your thoughts, too. All you have to do is take a quick reader survey here [[link removed]]. The best part? You have a chance to win some cool Front Office Sports merch or a $500 Visa gift card! Ben Simmons, who is close to selling his New Jersey mansion to Philadelphia Phillies outfielder Nick Castellanos for $4.6 million, is now reportedly [[link removed]] looking to sell his Hidden Hills, California, home for $23 million — around $5.5 million more than he paid. The Golden State Warriors, who have a league-high $179 million payroll, [[link removed]] went up 3-0 over Dallas in the Western Conference Finals thanks to the team’s collective strength — with the Splash Brothers and Draymond Green back to their dominant best. 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

Do you own any NFTs?

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

Monday’s Answer

67% of respondents have shopped at Foot Locker.

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]] Edited by Matthew Tabeek [[link removed]]

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