June 30, 2022

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After a couple of seasons affected by the pandemic, next season’s NBA salary cap will balloon [[link removed]] to $123.6 million. That’s an $11.6 million increase — roughly equivalent to the collective increase from 2017-18 through 2021-22.

Minority Owners Sue Tampa Bay Rays, Alleging Fraud [[link removed]]

Kim Klement-USA TODAY Sports

Tampa Bay Rays minority owners claim they’re getting virtually no benefits of ownership and are taking their case to court — again.

A quintet of owners that collectively own 9.6% of the Rays alleged [[link removed]] that principal owner Stuart Sternberg has committed fraud and violated Florida’s Unfair and Deceptive Trade Practices Act.

In its latest suit, the group says its ownership “has been reduced to a mere shell, with no revenues from baseball-related operations, no cash flow, and no responsibilities … to the Limited Partners.”

The group claims that the team was transferred into a business entity, Rays Baseball Club, without their knowledge.They allege that Sternberg failed to disclose a $376 million payment from regional network Fox Sports Sun.The same partners have filed [[link removed]] two other suits against Sternberg this year.

The group now wants to remove Sternberg as general partner.

Stadium Bids Tossed

On Wednesday, St. Petersburg mayor Ken Welch announced [[link removed]] that two proposals for the 86-acre lot that houses Tropicana Field have been tossed out, and the city is reopening the bidding process.

“Our environment has changed in many ways since the initial RFP was issued in July of 2020, and we must ensure the RFP meets our current environment and realities and incorporates the most up-to-date information,” Welch said.

The Rays’ lease at Tropicana Field expires in 2027.

The team has explored a variety of options, including relocating within or outside Florida. Welch said the city aims to decide on the area’s redevelopment plan by the end of the year.

USFL Makes Key Hire As It Seeks Investors [[link removed]]

Vasha Hunt-USA TODAY Sports

The USFL announced earlier this week that it would return for the second season in more markets, with the goal of adding more teams in later years.

On Wednesday, the New York Post reported [[link removed]] that the Fox-owned entity has hired investment bank Allen & Co. to find investors to assist in the league’s expansion.

Fox’s reported investment goal is to raise between $150 million and $200 million.

For the first season, all eight teams played in Birmingham, Alabama, where the league’s office is located.Next season, the USFL wants to play in two-to-four markets that will each host multiple teams.

Fox will move forward with the second season even without an investor. The media entity, which committed $150 million to the USFL over three years, is using some of Fox’s infrastructure to control costs.

The league will use a similar schedule in its second season. This year, the USFL’s 36 regular-season TV broadcasts averaged [[link removed]] around 715,000 viewers across Fox, NBC, FS1, and USA Network. The league’s championship takes place on Sunday.

Big Deals

Allen & Co. recently advised the Denver Broncos on its $4.65 billion sale — a record for a U.S. sports team. The investment bank also represented [[link removed]] the Wilpon family on its majority stake sale of the New York Mets for $2.48 billion in 2020. In 2019, Allen & Co. brokered Joe Tsai’s deal to acquire the Brooklyn Nets and Barclays Center for $3.4 billion.

SPONSORED BY ANHEUSER-BUSCH

Meet The Rising 25 Class of 2022

Now in its sixth year, the Front Office Sports Rising 25 Award [[link removed]] presented by Anheuser-Busch has become one of the most competitive and prestigious awards in the business of sports.

This year, we received over 400 nominations highlighting young professionals whose drive to succeed inspired us. They crushed it in the workplace and carried that spirit “off the field” by championing philanthropic causes and advocating for diversity and inclusion.

Check out the Rising 25 Class of 2022 [[link removed]].

NBA Invests in $100M Kids Social Media App [[link removed]]

Ron Chenoy-USA TODAY Sports

The NBA is investing in a social media hub for the youngest generation.

The league was part of a $17 million funding round in TikTok-like social media company Zigazoo, which targets kids aged three to 12 and has more than 1 million users.

The funding round, which valued Zigazoo at around $100 million, was led by Liberty City Ventures.NBA Top Shot-creator Dapper Labs, German soccer company OneFootball, and gaming company and venture fund Animoca Brands also participated in the round.Previous investors include Serena Williams’s Serena Ventures and Jimmy Kimmel.

The NBA worked with Zigazoo around its All-Star weekend this year, encouraging kids to create basketball-related content.

Next Generation

The investment pairs the NBA with a company looking to provide a kid-friendly environment while exploring cultural trends.

“We’re planning on using the new capital to become the biggest kids company in the world by expanding our Web3 offerings while building towards becoming the leading social network for kids to interact directly with creators and brands in the kids’ media space,” Zigazoo founder and CEO Zak Ringelstein told [[link removed]] CoinDesk.

The company plans to grow into “emerging tech sectors” such as augmented reality and the metaverse — and also seeks partnerships with musicians and music labels.

Sony Seizes PC Gaming Market with New Brand [[link removed]]

Sony

Sony is expanding its reach within the PC gaming market with the launch of Inzone, a new gaming hardware brand that will debut July 8.

Inzone arrives after Sony announced in May that it projects [[link removed]] to pocket $300 million from PC gaming titles in the coming fiscal year. The tech giant, which reported $80 million in PC net sales in FY2021, forecasts a significant jump thanks to its agreement in January to acquire Bungie — the original creator of “Halo” — in a deal valued at $3.6 billion.

Sony will kick off Inzone with three gaming headsets retailing between $99 and $299, as well as two 27-inch gaming monitors, one in 4K.

Inzone will allow Sony to further take [[link removed]] advantage of the $41 billion PC games market.It also puts Sony in direct competition [[link removed]] with PC hardware giants Lenovo and Razer.

The new venture will also help alleviate strain on Sony’s gaming business due to the semiconductor shortage plaguing the tech industry, which has hampered PlayStation 5 sales.

Sony shipped [[link removed]] 2 million PS5 consoles in fiscal Q4, bringing its total shipped to 19.3 million. In FY2021, Sony shipped a total of 11.5 million PS5 consoles, missing its target of 14.8 million.

Self-Investment

Sony is making an effort to invest in itself.

In May, the company said it will allocate [[link removed]] roughly $300 million toward improving its existing software development and expanding its gaming business for the PlayStation 4 and PS5.

SPONSORED BY TICKETMASTER

The Kraken: Elevating the Season Ticket Experience

The next generation of fans is here.

Front Office Sports, together with Ticketmaster, have created Modern Ticketing Essentials: Beyond the Ticket, a free online course [[link removed]] to learn the foundations needed to bring the fan experience to new heights – far beyond the ticket.

The course lineup includes How the Kraken Are Leveling Up for Season Ticket Holders, with discussion around new capabilities that elevate the season ticket holder experience [[link removed]]. The lesson, led by Scott Aller, Sr. Client Development Director at Ticketmaster, includes a panel discussion inside Climate Pledge Arena with Scott Menefee and Bill Chapin from the Kraken, and Dana Hammer, Director of Product at Ticketmaster.

It’s totally free and upon completion, participants will receive a verified digital badge to let everyone know you’re certified. Register now [[link removed]]!

Conversation Starters Athletes, school officials, and experts believe [[link removed]] there is still a major gap in NIL education, with many athletes not even knowing how to begin and others not using school resources. Caden Cox, the first person with Down syndrome to play in a college football game, has signed [[link removed]] an NIL deal with apparel brand Jake Max. Three-time golf major winner Vijay Singh is selling [[link removed]] his Hawaiian estate, which includes five bedrooms, seven bathrooms, an elevator, and a pool, for $23 million. 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

MLB

01:10 PM

Twins (+125) at Guardians (-145)

Bet Now [[link removed]]

MLB

06:05 PM

Braves (+115) at Phillies (-135)

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MLB

06:10 PM

Yankees (-115) at Astros (-105)

Bet Now [[link removed]]

*All times are EST unless otherwise noted.

*Odds/lines subject to change. T&Cs apply. See [[link removed]] for details.

Question Of The Day

Would you attend USFL games if they were closer?

Yes [[link removed]] No [[link removed]]

Wednesday’s Answer

16% of respondents would be interested in a Heimat membership if there was one in their area.

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

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

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