July 7, 2022

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Just four years after the Browns selected Baker Mayfield with the No. 1 overall pick, the QB is on his way out of Cleveland and heading for Carolina. Mayfield was traded [[link removed]] for a 2024 conditional fifth-round pick — which will save the Browns over $8 million in salary and cap space.

Lululemon Continues to Expand Internationally [[link removed]]

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Lululemon Athletica announced plans to expand into Spain, marking the company’s first new European market since 2019.

With two Spanish stores and a local e-commerce site, the expansion [[link removed]] will aid Lululemon’s goal of quadrupling its international revenue from 2021 to year-end 2026.

The company currently operates nearly 40 stores and three local-language sites across France, Germany, Ireland, the Netherlands, Norway, Sweden, Switzerland, and the U.K., with shipping on its European site available to other countries.

Spain’s e-commerce site will launch in late July.The first Spanish brick-and-mortar store will open their doors in Madrid and Barcelona in September.

The expansion is part of Lululemon’s “Power of Three x2” strategy, which states [[link removed]] that it will reach $12.5 billion in revenue by 2026 — double its 2021 revenue. Along with continuing to invest in women’s apparel and the North American market, Lululemon is also putting emphasis on menswear and the international market.

Lululemoney

Lululemon reported [[link removed]] a 32% year-over-year increase in first-quarter revenue to $1.6 billion and expects its full-year revenue to range between a record $7.6 billion and $7.7 billion. During the quarter, the company opened five stores, bringing its global total to 579.

The global sports and fitness clothing market is expected [[link removed]] to reach $221.3 billion by 2026.

ACC, Pac-12 Reportedly in Talks for Las Vegas ‘Championship Game’ [[link removed]]

Kirby Lee-USA TODAY Sports

After last week’s shocking revelation [[link removed]] that USC and UCLA will join the Big Ten in 2024, other conferences could be banding together to recoup their losses.

The ACC and Pac-12 are reportedly discussing a “loose partnership” that would see the two conferences play a “championship game” in Las Vegas, per CBS Sports [[link removed]].

Both conferences have a common media rightsholder in ESPN, so the proposal is seen as a way to increase the value of their common offering.

The ACC’s deal with the sports network lasts through 2036.But the Pac-12’s — in addition to its contract with Fox — ends in 2024.

The departure of the two Southern California schools came at the worst possible time for the conference, with one sports TV executive describing [[link removed]] it as a “disaster.” USC and UCLA’s exit will likely tank any hopes the conference had of significantly boosting its current $250 million-per-year deal.

Amid all of the turmoil, the Pac-12 announced [[link removed]] that it is expediting its media rights negotiations to begin immediately.

Pac-12 No More?

The hypothetical title game could be over before it begins — six Pac-12 programs are reportedly [[link removed]] in talks to join the Big 12.

If Arizona, Arizona State, Colorado, Utah, Oregon, and Washington defect, they would leave the conference with just four teams.

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Microsoft’s $68.7B Deal for Activision Under U.K. Probe [[link removed]]

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Microsoft’s potential acquisition of Activision Blizzard is being investigated by the Competition and Markets Authority — a U.K. antitrust watchdog.

In January, Microsoft agreed to purchase Activision in an all-cash deal valued at $68.7 billion, making the Washington-based tech giant the world’s third-largest gaming company by revenue.

The CMA is considering whether the acquisition will harm competition.It will also evaluate whether the deal will correlate to high prices or reduced choices.The regulator has a deadline [[link removed]] of Sept. 1 to expand its investigation.

The CMA joins two other antitrust regulators reviewing Microsoft’s deal. The Federal Trade Commission is also evaluating it, joining the Australian Competition & Consumer Commission.

Microsoft has anticipated the regulatory scrutiny and has vowed to “fully cooperate” with the investigation, according to Microsoft’s corporate vice president and general counsel Lisa Tanzi.

Mixed Results

Microsoft posted [[link removed]] $49.4 billion in revenue in fiscal Q3, an 18% increase year-over-year. The company’s Xbox content and services revenue grew by 4% during the quarter, helping its More Personal Computing segment generate $14.5 billion in revenue — up 11% year-over-year.

On the other hand, Activision has taken a step back.

It reported [[link removed]] $1.8 billion in revenue in Q1 2022, compared to $2.3 billion for the same period a year prior. Monthly active users reached 372 million in Q1, down from 435 million in Q1 2021.

Activision attributed the lackluster results to the underwhelming launch of “Call of Duty: Vanguard,” due to competition from other publishers and an average reception from gamers.

Manchester United Scores Deal With U.S. Tech Firm [[link removed]]

Manchester United

Manchester United has entered a deal with IT firm DXC Technology.

DXC will become [[link removed]] the club’s digital transformation partner and shirt-sleeve sponsor, replacing Kohler on the men’s, women’s, and youth’s home, away, and third kits. Teamviewer and Adidas are also principal partners on the club’s new kit, which launches later this week.

Terms of the deal weren’t disclosed, though Kohler’s agreement was worth [[link removed]] $23.84 million per season.

The U.S.-based firm will take control of the club’s website and media platforms, including the club’s app, which is the most downloaded sports app in 68 global markets.DXC will use data analytics to manage relationships with the team’s 1.1 billion fans and Man U’s business operations.

DXC will also become a presenting partner of the Manchester United Foundation, through which the pair will work together on education programming and STEM workshops in the greater Manchester area.

DXC’s Deals

The deal is DXC’s first major soccer sponsorship and adds to the firm’s sports portfolio. DXC is an official supporter of the organizing committee for the 2024 Olympic and Paralympic Games in Paris and has had partnerships [[link removed]] with IndyCar and Australian rugby union club Brumbies.

DXC, which was spun off from Hewlett Packard Enterprises in 2017, most recently recorded [[link removed]] $4.01 billion in fourth-quarter revenue and $539 million in net income. Manchester United reported [[link removed]] $192 million in revenue in its most recent quarter, despite recording a net loss of $35 million.

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Conversation Starters Sue Bird and Diana Taurasi have been revealed [[link removed]] as the cover athletes for NBA 2K23’s WNBA Edition, marking the first time that NBA 2K has featured multiple WNBA players on a cover. So far this year, the top [[link removed]] network for sports event viewing by minutes watched is NBC at 117.2 billion minutes, followed by CBS (98.1 billion), ESPN (95 billion), FOX (63.4 billion), and TNT (52.1 billion). Odds providers have quickly and concisely turned around odds for sportsbooks to cash in on LIV Golf, and sportsbooks will likely continue [[link removed]] to integrate the offshoot golf league as long as the money keeps flowing. 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

07:10 PM

Marlins (+155) at Mets (-180)

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MLB

09:40 PM

Giants (+115) at Padres (-135)

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MLB

07:10 PM

Yankees (-165) at Red Sox (+140)

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*All times are EST unless otherwise noted.

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

Question Of The Day

Have you purchased any Lululemon products in the last three months?

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

Wednesday’s Answer

30% of respondents plan to watch the UEFA Women’s Euros.

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

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

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