June 28, 2022

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Matt Kaulig is branching out from fast cars to fastballs. Owner of a NASCAR racing team since 2016, Kaulig joined [[link removed]] David Blitzer as a minority owner of the Cleveland Guardians on Monday — and the group’s 35% stake will value the team at around $1 billion.

Nike Records $46.7B In Full-Year Revenue [[link removed]]

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Nike reported $12.2 billion in fourth-quarter revenue on Monday and $46.7 billion in full-year revenue, a 6% year-over-year increase.

The Swoosh beat analysts’ quarterly estimates [[link removed]] of $12.06 billion but fell 1% from the same period last year. Nike reported net income of $1.4 billion.

Nike Direct revenue increased [[link removed]] 7% to $4.8 billion during the quarter, Nike Brand digital saw its revenue jump 15%, and Nike-owned stores fell 2%. Converse, a subsidiary of Nike, reported $593 million in revenue, down 1% year-over-year.

Revenue for the Nike Brand reached $44.4 billion for the fiscal year.

Nike Direct’s revenue jumped 14% to $18.7 billion, with revenue for Nike Brand digital growing 18% and Nike-owned stores increasing 10%.Converse’s full-year revenue was $2.3 billion, a 6% year-over-year increase.

Nike ended the quarter with inventories of $8.4 billion, a 23% year-over-year increase, and returned roughly $1.5 billion to shareholders during the three months ending May 31. For the full year, Nike returned around $5.8 billion to shareholders.

Next for Nike

Nike’s already been busy in Q1.

The company announced [[link removed]] it is exiting the Russian market — which includes more than 100 Nike stores — three months after it suspended operations following Russia’s invasion of Ukraine.

Nike also unveiled [[link removed]] plans this month to team up with Apple for a series of sports films and authorized a new four-year, $18 billion program to repurchase shares of Nike’s Class B common stock.

Topgolf Expands Offerings with 10-Hole Course, New Locations [[link removed]]

Topgolf

Having established a growing footprint based on its nontraditional golf experience, Topgolf is trying something new: an actual golf course.

In April, the brand opened a 10-hole golf course as part of its new location in El Segundo, California — its first foray into the Los Angeles market.

“I refer to it as the culmination of the Topgolf-Callaway strategy all in one place on about 30 acres,” Topgolf CEO Artie Starrs told [[link removed]] Forbes. Callaway acquired [[link removed]] Topgolf in a deal that closed in March 2021, paying $2.7 billion in stock for the 86% of the company it did not already own.

While the new course is likely the Topgolf offering that most resembles traditional golf, it still has certain unique touches.

The 10th hole allows players to track their first drive using Toptracer technology, which charts the ball’s speed and trajectory. Topgolf acquired Toptracer in 2016.Lights throughout the course allow for night golfing.Electric bikes can be used in lieu of golf carts.

Customers can also leverage Toptracer to play games such as “Angry Birds” at the adjacent three-story driving range.

Driving Growth

Topgolf’s first-quarter revenue hit [[link removed]] $322 million, a 2.3% increase in same-venue sales from 2019 and 31% of parent-company Callaway’s total revenue.

With eight more locations slated to open this year between the U.S. and U.K., plus another in Bangkok, Thailand, the company is set to hit 86 locations in six countries by the end of the year.

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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.

Matchroom Sport in Talks to Sell Minority Stake Worth $215M [[link removed]]

Matchroom Boxing

Matchroom Sport is in negotiations with several private equity firms regarding the sale of a minority stake in the event promotions company, according to a report by Sky News.

The group of private equity firms in talks [[link removed]] for the 25% stake in Matchroom up for grabs includes Luxembourg-based CVC Capital Partners and New York’s KKR and Searchlight Capital.

The 25% stake could fetch an asking price [[link removed]] of roughly $215 million.A sale could value Matchroom at between $739 million and $862 million.No details have been finalized, but a bidder is expected to be chosen in the coming weeks.

Launched in 1982, Matchroom has gained notoriety through boxing. Last year, it agreed to a five-year deal [[link removed]] worth over $100 million with sports streaming service DAZN to broadcast its matches based in the U.K. and Ireland. The deal came after Matchroom announced [[link removed]] an eight-year, $1 billion joint venture with Perform Group — now DAZN Group Limited — in 2018.

Growing Portfolios

A deal for CVC or KKR would add to a portfolio of sports-related investments for the firms.

In December 2021, KKR bought [[link removed]] a $396 million minority stake in PureGym, and a month later it agreed [[link removed]] to buy bike maker Accell Group NV for $1.8 billion.

In March, CVC acquired [[link removed]] a 13% stake in the company that will facilitate France’s Ligue de Football Professionnel sale of media rights in a deal valued at $1.6 billion.

Both firms have also been linked [[link removed]] to investment opportunities in World Rugby.

Optus Snags La Liga Australia Rights with Rate Increase Coming [[link removed]]

Real Madrid C.F.

Optus Sport is expanding its soccer reach in Australia, acquiring exclusive rights to La Liga.

The top-flight Spanish soccer league inked a multiyear deal with the sports broadcaster, owned by Australian telecommunications company Optus.

The deal adds 380 matches to Optus Sport’s calendar.Optus will also broadcast matches from the second-tier league La Liga SmartBank, including promotion playoffs.

Last month, Optus Sport announced it would raise its price to $17.29 per month (or $137.71 annually) or $4.84 per month for eligible Optus customers. The service previously cost $10.37 per month.

High-Scoring Rights

With the coming rate increase, Optus Sport is leaning into soccer to build its subscriber numbers.

Earlier this month it landed Australian rights to the 2024 UEFA European Football Championship, and in November it re-upped [[link removed]] with the Premier League on a six-year deal at $58 million per season — its previous deal was worth $45 million annually.

Optus Sport also holds rights to the English Women’s Super League, the 2023 FIFA Women’s World Cup, CONMEBOL Copa America 2024, and this year’s UEFA Women’s EURO.

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In Case You Missed It

Last week, Front Office Sports held a virtual summit [[link removed]] to celebrate 50 years since the passing of Title IX in 1972. The event featured intimate conversations with some of the most influential female athletes and business leaders, including:

What It Means to Be Bold and Brave with Allyson Felix – Olympian, Activist and Entrepreneur NIL and the Road to Equity for Women in College Sports with Jade-Li English of Klutch Sports Group Trailblazing Pros on Breaking Barriers with WWE Superstar Bianca Belair, Four-time Olympian, and Co-Founder/CEO of Sports Innovation Lab Angela Ruggiero The Collegiate Athlete Experience with UCLA’s Reilyn Turner In the Huddle with Bucs’ Coach Lo

Couldn’t make it? Register here [[link removed]] to access the replay.

Conversation Starters LIV Golf makes its U.S. debut [[link removed]] this week at Pumpkin Ridge Golf Club in North Plains, Oregon, and locals are reportedly unhappy about the Saudi Arabia-backed tournament, which is offering a $20 million prize purse for individuals and a $5 million purse for teams. Adidas announced [[link removed]] it will cover up to $10,000 in travel and lodging expenses for U.S. employees unable to obtain abortions in their home state. The NBA and French soccer star Kylian Mbappé announced [[link removed]] a multiyear partnership in which Zebra Valley, Mbappé’s media production company, will create original content for the league. From the U.S. Open to Wimbledon, Atmosphere Sports is bringing sports back to the center. Learn more [[link removed]].*

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Today's Action

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Red Sox (+120) at Blue Jays (-140)

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Brewers (-115) at Rays (-105)

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Padres (-115) at Diamondbacks (-105)

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Question Of The Day

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Monday’s Answer

36% of respondents think Formula 1 will become a top sport in the United States.

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

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