June 14, 2022

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Rick Ross is already a South Florida legend, and now he wants to make an even bigger mark: The rapper and music executive wants to purchase [[link removed]] a 5% stake in the Miami Dolphins. Ross said he wants to “bring financial literacy for the youngsters” on a team recently valued at $3.42 billion.

Apple and Nike Teaming Up on Sports Content [[link removed]]

Front Office Sports

In the new race for top sports media content, two of the most recognizable U.S. brands are teaming [[link removed]] up.

Nike and Apple are joining forces for a series of films.

The multiyear tie-up will see Apple Original Films work with Nike’s Waffle Iron Entertainment and Makeready.Waffle Iron produced the 2021 movie “The Day Sports Stood Still” on athlete-backed social justice initiatives, and “Promiseland” on Memphis Grizzlies star Ja Morant.Apple is currently developing a Formula 1 movie starring Brad Pitt, produced by star Mercedes driver Lewis Hamilton.

Apple and Nike have worked together previously: Apple CEO Tim Cook has served on Nike’s board of directors since 2005, and Nike created its own versions of the Apple Watch SE and Series 7. The two brands teamed up in 2006 for the Nike + iPod Sports Kit.

Apple’s Bite at Sports Media

Starting with its hit Premier League-focused show “Ted Lasso,” Apple TV+ has had a growing presence in sports media.

It made its first foray into live broadcasting this year in a deal with MLB for Friday night games worth $85 million annually. It is weighing bids for pricier properties, including “NFL Sunday Ticket,” which could fetch $2.5 billion per year.

The company has also produced a documentary on the New England Patriots and a docuseries on NBA legend Magic Johnson.

Leonsis Among 28 Parties Eyeing Nationals Bid [[link removed]]

Geoff Burke-USA TODAY Sports

Twenty-nine teams would like to acquire Washington Nationals star Juan Soto, but the MLB club is seeing comparable interest from parties looking to buy the whole team.

The Nationals are fielding offers, and 28 people or groups have expressed [[link removed]] interest.

Washington Capitals, Wizards, and Mystics owner Ted Leonsis is believed to be interested and a natural fit. The Lerner family, the current owner of the Nationals, are also part-owners of the Capitals and Wizards.However, Leonsis’ initial bid for the Nationals was reportedly below those of other suitors. Former Boston Red Sox, San Diego Padres, and Baltimore Orioles CEO Larry Lucchino is reportedly heading [[link removed]] an interested group.

Forbes valued [[link removed]] the Nationals at $2 billion in March. The New York Mets were sold for $2.4 billion in November 2020.

The MASN Effect

The team has a unique factor complicating any potential sale: Its local sports rights are held [[link removed]] by the Mid-Atlantic Sports Network (MASN), an entity owned 67% by the Orioles.

The arrangement, established as compensation for the Orioles when the Nationals (then Expos) moved into their media territory from Montreal in 2005, ties the Nats to an independent regional sports network that has cut costs in recent years after dropping from 5.6 million subscribers in 2018 to 3.6 million this year.

The Nationals and MASN are facing off in multiple lawsuits, including one in which a judge has ruled that the network owes the team around $100 million in rights fees for broadcasts between 2012 and 2017. The Orioles are appealing the ruling.

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Implementing NFTs With The Chicago Bulls

One of the most well-known use cases of blockchain technology [[link removed]] as it relates to sports are NFTs. Online marketplaces such as NBA Top Shot – where you can own and trade officially licensed NBA and WNBA NFTs – have gained popularity in the last two years.

However, there is so much more to the world of sports NFTs – they allow organizations to create unique partnership opportunities and fan experiences, and they even allow fans to create and grow teams and leagues of their own in the metaverse.

Learn more about NFTs in the Field of Sports in Lesson 4 of Crypto in Sports Essentials [[link removed]], where Liam Killingstadt, Director of Insights at Front Office Sports, sits down with Dan Moriarty of the Chicago Bulls to discuss all this and more.

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

AC Milan Owner Believes Club Deserves New $733M Stadium [[link removed]]

AC Milan

AC Milan owner RedBird Capital Partners believes the Italian soccer club deserves a new stadium to ensure a bright future.

“A brand of this scale should have infrastructure that is indicative of its football prowess and global potential,” RedBird founder Gerry Cardinale told [[link removed]] the Financial Times.

A new stadium for AC Milan — which, based on different reports, could range from 50,000 to 70,000 seats — would also mean a new [[link removed]] home for fellow Serie A rival Inter Milan, who have been co-tenants at the historic Giuseppe Meazza Stadium at San Siro since 1947.

AC Milan has already kickstarted the process of building a new stadium.

In 2020, Italy’s heritage authority approved the demolition of San Siro.The club has hired [[link removed]] architecture firm Populous for the project coined “The Cathedral.”The development is estimated to cost roughly $733 million.

Last month, RedBird finalized a deal [[link removed]] to purchase AC Milan for $1.3 billion from New York-based investment firm Elliott Management, which will keep a minority stake in the club.

RedBird, which has $6 billion in assets [[link removed]] under management, won its bid for the club over Investcorp — the Middle East’s largest alternative assets manager.

Things Looking Up

A potential new home for AC Milan comes amid promising results both on and off the pitch.

AC Milan won its 19th Serie A title in the 2021-22 season, and the club is currently the 14th-most-valuable soccer team in the world at $1.2 billion, per [[link removed]] Forbes.

It has generated $257 million in revenue in 2022, up from $165 million in 2021.

Gaming Companies Taking Steps to Create Inclusive Environments [[link removed]]

Shutterstock

Having become notorious for unhealthy work conditions and allegations of sexism and discrimination against women, the video game industry is working to become a more inclusive environment.

Activision Blizzard is among a growing list of video game companies embracing transparent pay in an effort to combat wage discrimination and unfavorable work conditions.

In April, Activision added two women, Lulu Cheng Meservey and Kerry Carr, to its board.However, the discrepancies aren’t exclusive [[link removed]] to the U.S,. as men at U.K. game companies made 17.1% more than women in 2021, per Gamesindustry.biz.

The desire to implement change comes amid several controversies shrouding the industry.

Activision was facing a class-action lawsuit in California that claimed the video game publisher misled investors regarding allegations of sexual harassment and discrimination.

The lawsuit — filed by shareholders in 2021 — was dismissed [[link removed]] in April.

Riot Games, the developer of “League of Legends,” faced legal issues of its own after it agreed to pay [[link removed]] a $100 million gender discrimination settlement in December 2021.

PlayStation is also facing a potential [[link removed]] class-action gender discrimination lawsuit in California by a former employee after a federal judge dismissed her initial lawsuit in April.

Taking a Stand

The need for change within the gaming industry has empowered its workforce.

In May, employees of Raven Software — a subsidiary of Activision — voted [[link removed]] to form a union, which would be the first for a public gaming company in the U.S.

Activision plans to negotiate [[link removed]] with the Communications Workers of America over a collective bargaining agreement.

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How Texting Is Driving Revenue for Sports Teams

On average, consumers send 13 texts per day and take action within 47 seconds. Leverage this market and you can see up to 40x ROI. It’s time to stop emailing and start texting.

During the 2021–22 NHL season, The Philadelphia Flyers had a $2,800 spend on the VOZZI [[link removed]] sms platform and brought in $92,000 in revenue.

In April of 2022, Mississippi State University sent out a season renewal text to 4,140 targeted fans. The result: $212,000 in renewals costing a mere $200 to send.

VOZZI [[link removed]] is an all-in-one texting platform changing the way teams interact with fans. Utilize mass and one-on-one texting to compliantly drive revenue, build data, and communicate. Schedule a demo [[link removed]] today.

Conversation Starters WWE announced [[link removed]] that 15 college athletes will be added to its NIL program, totaling 31 athletes from seven sports and conferences. NASCAR announced [[link removed]] on Sunday that the Busch Light Clash will return to the Los Angeles Coliseum in 2023. Steph Curry has helped [[link removed]] the NBA dominate social and digital spaces. The Golden State Warriors’ Instagram page added more than 1.2 million followers this postseason alone, with Curry’s playoff content accounting for 231 million views leading up to Game 3. From the U.S. Open to Wimbledon, Atmosphere Sports is bringing sports back to the center. Learn more [[link removed]].*

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Question Of The Day

Are you interested in watching content from Apple and Nike?

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Monday’s Answer

45% of respondents think they’ll attend 2026 World Cup matches.

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

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

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Front Office Sports Pro [[link removed]] - The most promising opportunities where sports meets industry

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