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 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 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 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 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.

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 Forbes. Callaway acquired 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 $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.

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 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 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 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 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 a $396 million minority stake in PureGym, and a month later it agreed to buy bike maker Accell Group NV for $1.8 billion.  

In March, CVC acquired 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 to investment opportunities in World Rugby.

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 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.