June 1, 2022

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In a move to celebrate the late John Madden, EA Sports has decided to put its namesake on the cover of all three editions of “Madden NFL 23.” Madden, who died on Dec. 28, last appeared on the cover 34 years ago. The Madden franchise has sold more than 150 million copies since then, generating more than $4 billion in sales.

Crypto Companies Upend List of NBA’s Top Sponsors [[link removed]]

Kirby Lee-USA TODAY Sports

The NBA’s top sponsors in the 2021-22 season came from industries familiar to longtime sports fans, with one exception: crypto.

Cryptocurrency companies rocketed [[link removed]] to the NBA’s second-largest category with $100 million to $150 million in sponsorships — after placing 43rd the previous season — according to an analysis by consulting firm IEG.

Only technology companies, which spent more than $170 million on NBA sponsorships, topped the crypto industry.

The NBA hit a record $1.6 billion in sponsorship revenue in 2021-22, up 13% year-over-year. The surge in crypto deals has come almost entirely from five companies: Crypto.com, Webull, Coinbase, FTX, and Socios cover 92% of the industry’s NBA spending.

Arena deals made the biggest splash, with FTX securing rights to the Miami Heat’s arena last year in a 19-year, $135 million deal, and Crypto.com replacing the Staples Center by inking rights to the home of the Los Angeles Lakers, Clippers, and Kings in a 20-year, $700 million agreement in November.

The NBA ranked third in total sponsorship dollars among U.S. sports leagues in 2021, trailing the NFL ($1.8B) and MLB ($1.7B).

Familiar Faces

Other than crypto companies, there was little movement among the NBA’s other top sponsor categories. Banks, telecom companies, and sports apparel and footwear placed third through fifth, with $100 million to $150 million in sponsorships apiece.

Beer, insurance, automotive, retail, and lottery, betting, and gaming companies rounded out the top 10, with each spending $70 million to $100 million.

SeatGeek and RedBall Call Off $1.35B Merger [[link removed]]

Darren Yamashita-USA TODAY Sports

Ticketing platform SeatGeek and blank-check company RedBall Acquisition Corp. have mutually agreed to terminate a merger that would have valued the combined entity at $1.35 billion.

The two parties agreed to terminate [[link removed]] the merger due to unfavorable market conditions. RedBall and SeatGeek cited particular concern regarding growth in tech companies. The two companies first agreed [[link removed]] to take SeatGeek public via a merger in October 2021.

RedBall and SeatGeek’s merger would have combined two companies rooted in sports.

SeatGeek provides ticketing services to teams including the Dallas Cowboys, Brooklyn Nets, and Liverpool FC.RedBall is co-founded by Oakland A’s executive and minority owner Billy Beane and RedBird Capital founder Gerry Cardinale.

The dissolved merger is also a missed opportunity for investors. The union included [[link removed]] a $100 million investment from Kevin Durant’s Thirty Five Ventures, Utah Jazz owner Ryan Smith, and others. SeatGeek also has previous investors including [[link removed]] Eli and Peyton Manning, Carmelo Anthony’s Melo7 Tech Partners, Nas, and private equity firms Elysian Park Ventures and TCV.

Strong Results

SeatGeek generated [[link removed]] a record $82.5 million in revenue in Q4 2021, up from $4.8 million for the same period the year prior. Full-year revenue for the company reached $186.3 million in 2021.

The strong results follow an underwhelming FY2020. SeatGeek saw its revenue drop from $142 million in 2019 to $33 million in 2020, largely due to the pandemic and fan limitations at in-person events.

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$773M Deal Creating Sports TV Giant Under Investigation [[link removed]]

BT

Just when BT Group seemed to have found a new corporate home for BT Sport and its coveted Premier League rights, a planned venture with Warner Bros. Discovery faces new challenges.

The U.K.’s regulatory Competition and Markets Authority said [[link removed]] it was opening an investigation with BT’s deal with Warner Bros. Discovery to determine if the deal creates an anti-competitive media environment.

The $773 million deal would link BT Sport with U.K. Eurosport.BT Group would earn $113.6 million over three years, plus up to $660 million based on the combined entity’s performance.Warner Bros. Discovery would then have the opportunity to buy out BT and take full control of the sports media company.

The first phase of the regulator’s probe will be completed by July 28.

The British telecommunications giant has been seeking to offload BT Sport, first nearing a deal with DAZN before pivoting to a split project with Discovery.

Mega Merger

The deal, which the two sides said should close by the end of the year, would create a powerful sports media force in the U.K. and Ireland.

In addition to the Premier League, the new entity’s broadcast rights would include the UEFA Champions League, the Olympics, Grand Slam tennis tournaments, UFC, and the Tour de France.

Eurosport and BT Sport would initially remain separate brands before uniting under one name at some point in the future.

Conversation Starters In The Leadoff, the $130 million sale of a stake in New Zealand Rugby faces a critical vote, Premier League teams are raising season-ticket prices, the Arizona Coyotes’ $1.7 billion arena project nears a key vote, and the Indy 500 welcomes 325,000 fans. Click here to listen [[link removed]]. The House Oversight Committee has asked [[link removed]] NFL commissioner Roger Goodell and Washington Commanders owner Dan Snyder to appear for a hearing on June 22. Dustin Johnson has been paid [[link removed]] at least $125 million to change his mind and play in the Saudi-backed LIV Golf Invitational Series, according to The Telegraph. The Utah Jazz have become notorious for overachieving in the regular season, then crashing out early in the playoffs. ESPN reported Tuesday that head coach Quin Snyder might be on his way out [[link removed]], despite two years left on his contract. Subscribe to Scoreboard for more [[link removed]].

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The Impact of Crypto on the Sports Industry

Historically, professional sports teams and leagues have always been relatively slow to adopt change because they are rooted in tradition. In the last few years however, the mainstream adoption of cryptocurrencies, NFTs and blockchain technology has forced the sports world to take notice.

Sports leagues, teams, athletes and fans have quickly embraced crypto and its resulted in significant impacts on sponsorships, fan engagement, experiences and so much more. To learn more about the impact, Front Office Sports has partnered with Coinbase [[link removed]] for its latest course, Crypto in Sports Essentials [[link removed]].

This five-lesson course will help those looking to deepen their understanding of the growing connection between the blockchain and the sports industry. Participants will earn a digital verified badge to display on their social channels upon completion.

Sign up [[link removed]] for the course today.

Market Movers

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

GOLF [[link removed]]

Acushnet Holdings Corp

[[link removed]]

$41.21

[[link removed]]

+0.24%

[[link removed]] NKE [[link removed]]

Nike, Inc.

[[link removed]]

$119.07

[[link removed]]

-0.35%

[[link removed]] LYV [[link removed]]

Live Nation Entertainment Inc

[[link removed]]

$95.04

[[link removed]]

-1.06%

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

VF Corp.

[[link removed]]

$49.99

[[link removed]]

-1.98%

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

MGM Resorts International

[[link removed]]

$34.36

[[link removed]]

-2.66%

[[link removed]] (Note: All as of market close on 6/1/22) What to Watch

The PGA Tour’s Memorial Tournament brings the best golfers in the world to Muirfield Village Golf Club in Dublin, Ohio.

Last year, Patrick Cantlay won his second Memorial Tournament in a playoff, taking home $1.67 million. This year, PGA Tour players will compete over four days for a $12 million purse.

How to Watch: 7 a.m. ET on ESPN+ / Stream all of the PGA Championship on ESPN+ [[link removed]]*

*Sponsored content. Game availability differs by market, check your local listing.

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Written by Owen Poindexter [[link removed]], Justin Byers [[link removed]] Edited by Matthew Tabeek [[link removed]]

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