May 24, 2022

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IN PARTNERSHIP WITH

Racing fans can’t seem to get enough of Formula 1 right now. Through six races, F1 viewership [[link removed]] is up 44% compared to 2021, and Sunday’s Spanish Grand Prix averaged 1.1 million viewers on ESPN2 — the race’s top live telecast on record.

The Curtain Falls on Pepsi’s Super Bowl Halftime Show Run [[link removed]]

Mark J. Rebilas-USA TODAY Sports

The Super Bowl Halftime Show will no longer have the word “Pepsi” in front of it.

Pepsi’s deal with the NFL expired after the 2022 season. The company renewed [[link removed]] its sponsorship deal with the league this week, but per the new deal’s terms, it will no longer serve as the presenting partner for the iconic halftime show.

Financial terms of the new deal were not disclosed. Adweek reported that Pepsi is looking to transition more of its media spend toward digital audiences as traditional broadcast audiences continue to narrow.

This year’s performance featuring Dr. Dre, Snoop Dogg, Mary J. Blige, Kendrick Lamar, and Eminem brought [[link removed].] in 103.4 million viewers.Katy Perry’s 2015 performance had the show’s peak audience at 120.7 million.The lowest audience was 96.7 million for The Weeknd’s 2021 performance. Halftime’s Hefty Tag

With Pepsi out, the rights could reportedly [[link removed]] sell for $40 million to $50 million. Pepsi’s previous deal, which included more than the halftime show, was worth $2.3 billion over 10 years. Before that, Bridgestone paid up to $10 million annually.

The price makes sense. Pepsi earned [[link removed]] $9.4 million in media value for 2021’s halftime broadcast. It also received the most buzz on Twitter for three years in a row compared with other Super Bowl advertisers. Thirty-second commercial spots sold for $6.5 million this year.

Chelsea Set to Begin New Era Under Todd Boehly [[link removed]]

Chelsea FC

Chelsea FC is set to begin a new chapter in its history with the imminent closing of its sale to the group led by Todd Boehly.

The $5.3 billion transaction could be finalized [[link removed]] by Wednesday. The British government received assurances that former owner Roman Abramovich will not receive any money from the sale.

The Premier League approved the deal on Tuesday.

The U.K. sanctioned Abramovich for his connections to Vladimir Putin following Russia’s invasion of Ukraine.

The money will be held in a frozen bank account controlled by the British government. Portuguese officials will need to approve the sale, because Abramovich holds a Portuguese passport.There is some urgency to complete the sale, as a special license allowing the club to operate expires on May 31. The club has been unable to make player transactions or negotiate contracts under its current license. Clearlake’s Role

While Boehly will be the controlling owner of the club and Swiss billionaire Hansjörg Wyss will be a part-owner, neither will have a majority stake in the club.

That distinction belongs to private equity firm Clearlake Capital, which is putting up [[link removed]] 60% of the funds for the $3.1 billion purchase of the team itself and $2.2 billion in commitments to the team and renovations to its Stamford Bridge stadium.

The Santa Monica-based firm’s co-founders attempted [[link removed]] to buy 40% of the Washington Commanders in 2020, but were blocked by team owner Dan Snyder.

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]].

NFL Owners ‘Surprised’ By $232.5M in Rams Settlement Charges [[link removed]]

Mark J. Rebilas-USA TODAY Sports

The NFL agreed to pay $790 million in November to end a legal dispute over the Rams’ relocation from St. Louis to Los Angeles back in 2016.

The amount is [[link removed]] the most the NFL has ever paid to settle litigation, and details about where the money came from are now starting to emerge.

Filed in 2017 by St. Louis, St. Louis County, and the St. Louis Regional Convention and Sports Complex Authority, the lawsuit alleged [[link removed]] the league broke its own relocation rules when the Rams moved.

Rams owner Stan Kroenke agreed to indemnify the league before other NFL owners approved the team’s move in 2016, but wavered on his promises shortly before the trial started on Jan. 10, 2022. Kroenke previously attempted to settle the suit for $100 million.

Instead, the NFL settled and Kroenke’s counterparts paid a portion of it. The league has reportedly taken $7.5 million from the other 31 teams — totaling $232.5 million — a “ surprise [[link removed]]” to the owners, who are left with questions about their budgets. The Athletic reported that the rest likely came from the NFL’s financial reserves.

The owners reportedly still don’t know if the money will be returned from the league.Kroenke continues to resist pressure to pay the sum, arguing that legal costs and settlement payments are different. Owners Divided

New York Giants owner John Mara said [[link removed]] last year that if Kroenke hadn’t agreed to indemnify it, owners wouldn’t have voted in favor of the move. Other owners, including the Dallas Cowboys’ Jerry Jones, advocated for the Rams’ move.

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! In The Leadoff, Electronic Arts could be eyeing a merger with a media giant, Washington Commanders owner Dan Snyder could be voted out by NFL owners, remaining bidders for the Denver Broncos submit proposed amendments to the sale contract, and eBay taps Wayne Gretzky for its NFT launch. Click here to listen [[link removed]]. CBS averaged [[link removed]] 5.27 million viewers for Sunday’s final round of the PGA Championship, per Sports Media Watch. That’s down 21% from the 6.6 million average viewers who watched Phil Mickelson become the oldest winner in major tournament history last year. The Las Vegas Aces seem to have the best of both worlds [[link removed]] — they’re the best team in the WNBA but also have the most room to grow under new coach Becky Hammon. The Aces (7-1) tied the WNBA record for most 3-pointers in a game with 18 in a win on Monday over the Los Angeles Sparks. Subscribe to Scoreboard for more [[link removed]].

SPONSORED BY OUTER

Outdoor Cooking Made Easy

It wouldn’t be summer without al fresco cooking.

That’s why Outer [[link removed]] teamed up with celebrity chef and founder of Prep + Rally, Dini Klein, to create the ultimate outdoor dining cookbook.

This outdoor cookbook is full of delicious grilling recipes [[link removed]], including Steak and Poblano Sandos with Cilantro Lime Crema and Gooey S’mores-Stuffed Cookies with Ice Cream. You’ll have enough recipes to keep you outside all summer long.

Start your summer the right way. Download the FREE cookbook here [[link removed]].

Market Movers

U.S. stocks experienced declines across all three major indexes on Tuesday. Here’s a look at how sports-related stocks performed:

FWONA [[link removed]]

Formula One Group

[[link removed]]

$55.48

[[link removed]]

+1.17%

[[link removed]] MSGS [[link removed]]

Madison Square Garden Sports Corp

[[link removed]]

$159.61

[[link removed]]

-2.75%

[[link removed]] MANU [[link removed]]

Manchester United Plc.

[[link removed]]

$12.57

[[link removed]]

-3.31%

[[link removed]] UA [[link removed]]

Under Armour Inc

[[link removed]]

$8.21

[[link removed]]

-3.53%

[[link removed]] MGM [[link removed]]

MGM Resorts International

[[link removed]]

$31.10

[[link removed]]

-6.75%

[[link removed]] (Note: All as of market close on 5/24/22) What to Watch

The Golden State Warriors face the Dallas Mavericks on Tuesday at American Airlines Center. The Warriors lead the Western Conference Finals series 3-0.

How to Watch: 9 p.m. ET on TNT

Betting Odds: Mavericks -1 || ML -120 || O/U 215.5

Pick: Expect the Mavericks to force a Game 5. Take Dallas to cover.

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Written by Abigail Gentrup [[link removed]], Owen Poindexter [[link removed]] Edited by Matthew Tabeek [[link removed]]

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