June 21, 2022

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Have you subscribed to Front Office Sports’ podcast The Leadoff? In Monday’s episode, we cover soccer’s growing popularity in the U.S., Los Angeles’ massive infrastructure plans ahead of the 2028 Olympics, more Angel Stadium fallout, and the Arizona Coyotes’ $1.9 billion development project. Give it a listen [[link removed]].

Seattle Sounders Stake Sale Values Team at $680M [[link removed]]

Joe Nicholson-USA TODAY Sports

There are more and more signs that soccer is on the rise in the U.S., and the latest evidence comes from a stake sale for the Seattle Sounders.

The MLS team was reportedly valued at $680 million in a sale of 3% to 5% of the team to an unknown buyer, according [[link removed]] to Forbes.

The stake was likely sold at a discount because it brings no controlling interest in the club. A controlling stake sale may have brought a higher valuation. The buyer joins notable names such as Seattle Mariners legend Ken Griffey Jr., longtime Seattle Seahawks quarterback Russell Wilson and his wife, the singer Ciara, Microsoft CEO Satya Nadella, the rapper Macklemore, and comedian Drew Carey.The team is majority-owned by businessman Adrian Hanauer, also a minority owner of the Seattle Kraken.

The $680 million valuation would put the Sounders at a level equivalent to a middle-of-the-pack NHL team. The Calgary Flames were valued [[link removed]] at the same figure by Forbes last December, placing them 18th among 32 NHL teams.

Stream Team

Earlier this month, Apple showed [[link removed]] its long-term confidence in MLS with a 10-year, $2.5 billion streaming deal beginning next year. The league is still in talks regarding its linear streaming rights.

It is widely predicted that soccer will see a surge in popularity in the U.S. when it hosts the World Cup in 2026. Seattle was selected as one of the 16 host cities in North America.

Browns Deny Report of Plan for $1B Domed Stadium [[link removed]]

Andrew Weber-USA TODAY Sports

Despite reports that claimed the Cleveland Browns were looking to build a new $1 billion stadium, the team has said that it plans to renovate its current home, FirstEnergy Stadium.

Speculation of a new home field for the Browns has increased after the team denied [[link removed]] a report that said its majority owners Jimmy and Dee Haslam wanted [[link removed]] a publicly funded, domed stadium.

The team is currently conducting a study that focuses on stadium renovations.No price tag has been determined for potential repairs.The Browns’ current lease at the stadium’s site runs through 2028.

The Browns have a head start in renovating FirstEnergy Stadium after Cleveland’s city council approved [[link removed]] $10 million in subsidies to repair pedestrian ramps and other fixes earlier this month.

This latest development comes amid controversy around FirstEnergy — which acquired naming rights in 2013 for $107 million in a deal that runs through 2030.

Earlier this month, the city council passed [[link removed]] a nonbinding resolution 16-1 that the team should remove the FirstEnergy name from its stadium after the company admitted its role in a bribery scandal.

League of Their Own

The Browns could potentially join a growing list of NFL teams renovating or building new stadiums.

In May, the Tennessee Titans announced plans [[link removed]] to build a domed stadium for up to $2.2 billion. The same month, the Buffalo Bills secured [[link removed]] $250 million toward a $1.4 billion stadium project.

The New England Patriots recently broke ground on renovations [[link removed]] at Gillette Stadium that are expected to cost $225 million.

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Crystal Palace Owner Has Upper Hand in Lyon Takeover Race [[link removed]]

OL

Foster Gillett was reportedly set to take over Olympique Lyonnais in early June, but the Ligue 1 team is now in exclusive talks with a different U.S. investor: John Textor.

The co-owner of Crystal Palace FC is in discussions to take over around 66% of the club for $846 million, according [[link removed]] to Forbes. Of that figure, $91 million will go toward acquiring players.

The transaction will reportedly [[link removed]] include a recapitalization of the holding company OL Groupe SA with the firm Holnest, which is owned by chairman Jean-Michel Aulas. It includes other OL Groupe sports teams, including [[link removed]] NWSL club OL Reign.Under French takeover rules, Textor’s stake could end up larger than the original negotiations, as he will be required to make a tender offer to other shareholders.The investment will go toward shares from IDG Capital Partners and Pathé, both of which have less than a 20% stake in the club, as well as Aulas’ shares.

Aulas, who has owned the club since 1987 and currently has a 28% stake, will stay on as CEO and keep the current management team, according to Holnest, Pathé, and IDG.

Textor also recently purchased [[link removed]] stakes in Belgian club RWD Molenbeek and [[link removed]] Brazil’s Botafogo.

The Competition

Gillett, the son of former Liverpool FC co-owner George Gillett, was reportedly [[link removed]] set to acquire Lyon for around $636 million, including a $106 million injection into the team, but talks stalled.

The team reportedly also had a third bidder.

Conversation Starters Jimmy Butler wants to build a powerhouse in the coffee industry. The six-time NBA All-Star sat down with Front Office Sports to talk about his coffee company Big Face Coffee [[link removed]], which originated as a quick cash grab ($20 per cup) in 2020 at the NBA’s Orlando bubble. On Tuesday, four-time major champion Brooks Koepka became the latest golfer to defect [[link removed]] from the PGA Tour to the LIV Golf Invitational Series, per the Telegraph. Cleveland Browns quarterback Deshaun Watson has reached confidential settlements [[link removed]] with all but four of the 24 women who filed civil lawsuits against him, per Houston attorney Tony Buzbee, who represents the 24 accusers. Women’s sports have grown exponentially since the passing of Title IX in 1972. Front Office Sports will celebrate this historic milestone June 23 with a virtual summit [[link removed]] that includes conversations with some of the most influential female athletes and business leaders. Register now.

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Market Movers

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

DKS [[link removed]]

Dicks Sporting Goods, Inc.

[[link removed]]

$75.31

[[link removed]]

+0.05%

[[link removed]] HIBB [[link removed]]

Hibbett Inc

[[link removed]]

$48.06

[[link removed]]

+0.82%

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

VF Corp.

[[link removed]]

$46.36

[[link removed]]

-0.64%

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

Live Nation Entertainment Inc

[[link removed]]

$83.90

[[link removed]]

-1.79%

[[link removed]] MTN [[link removed]]

Vail Resorts Inc.

[[link removed]]

$223.38

[[link removed]]

-2.65%

[[link removed]] (Note: All as of market close on 6/21/22) What to Watch

The St. Louis Cardinals (38-31) face the Milwaukee Brewers (39-30) on Tuesday night at American Family Field.

How to Watch: 8:10 p.m. ET on FS1

Betting Odds: Cardinals -1.5 || ML -130 || O/U 9

Pick: Expect the Brewers to build on four consecutive wins. Take Milwaukee to cover.

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

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