July 7, 2022

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Have you subscribed to Front Office Sports’ podcast The Leadoff? In today’s episode [[link removed]], we cover Lululemon’s international expansion, the U.K.’s investigation into Microsoft’s $68.7 billion deal with Activision, and more important stories in the business of sports.

Plan to Keep Bears in Chicago Includes Dome for Soldier Field [[link removed]]

Quinn Harris-USA TODAY NETWORK

The Chicago Bears have explored the possibility of leaving their iconic Soldier Field home, but a city committee may have a solution to ensure the team stays put.

The Lakefront Museum Campus Working Group is expected to recommend [[link removed]] that Chicago “explore the feasibility” of building a dome atop Soldier Field, the Bears’ home since 1971.

The project would allow Soldier Field to host major events, including the Super Bowl. Estimated costs range from $400 million to $1.5 billion, per [[link removed]] Sports Business Journal.Plans would include stadium renovations and potentially selling naming rights.

The committee, led by Chicago mayor Lori Lightfoot, wants a dome after the Bears signed [[link removed]] a purchase agreement in 2021 for the 326-acre Arlington International Racecourse property.

The deal — valued at $197.2 million — would provide a potential site for a new Bears stadium, but it’s roughly 30 miles north of downtown. The Bears have a lease at Soldier Field that runs through 2033, per [[link removed]] WGN News.

The team would be forced to pay [[link removed]] $84 million to the city if the lease is broken before 2026. The sale of the Arlington site is expected to close between this year and 2023.

Expensive Upkeep

Soldier Field, which opened in 1924, has already had extensive renovations.

The facility — owned by the Chicago Park District — underwent renovations between 2001-2003 at a reported cost of $733 million, including $432 million in taxpayer dollars.

Sports Deals Face Uncertainty After Crypto Platform’s Bankruptcy [[link removed]]

Nathan Ray Seebeck-USA TODAY Sports

A number of sports deals are in limbo after cryptocurrency platform Voyager Digital filed for bankruptcy.

Voyager says “prolonged volatility and contagion” forced the Chapter 11 filing. According to the filing, Voyager estimates [[link removed]] it had more than 100,000 creditors and between $1 billion and $10 billion in assets, with an equal amount of liabilities.

Last week, Voyager suspended all withdrawals and trading.

Voyager had announced an agreement in December with the NWSL — one of the league’s largest in history — in which the players were to receive a portion of the deal in cryptocurrency and financial education on cryptocurrencies.

The NWSL isn’t Voyager’s only tie to sports.

Voyager paid [[link removed]] one bitcoin in April 2021 — around $60,000 at the time — to the Oakland A’s for a full-season suite-ticket package. Bitcoin is now trading at roughly $20,000.Six months after announcing its A’s deal, Voyager became an international partner of the Dallas Mavericks.Former NFL player Rob Gronkowski announced a marketing deal with Voyager last fall, NASCAR driver Landon Cassill extended his Voyager partnership in December, and NBA Hall of Famer Tracy McGrady and NFL Hall of Famer Marshall Faulk serve as advisors. Crypto Crash

Voyager isn’t the first crypto platform whose misfortunes have affected the sports industry. Despite the complete collapse of Terra’s crypto “stablecoin,” MLB’s Washington Nationals continue to promote its Terra Club. Also, FTX backed out of a jersey patch deal with the Los Angeles Angels.

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Metaverse Builder Seals $470M Deal for Esports Organization [[link removed]]

Team Rogue

Metaverse builder Infinite Reality has closed its deal to acquire esports and entertainment conglomerate ReKTGlobal, Inc. for $470 million, valuing the combined entity at $2.47 billion.

The acquisition marks [[link removed]] Infinite Reality’s first investment in competitive esports and allows the company to expand its reach in Web3 and the metaverse with ReKTGlobal’s community.

ReKTGlobal has a number of investors and fans with sports-related backgrounds, including NBA center Rudy Gobert, NFL safety Landon Collins, and ATP player Taylor Fritz.

The acquisition covers areas of business including social, gaming, and NFTs.It will also combine the offices of both companies.

An acquisition wasn’t always the plan for ReKTGlobal.

Earlier this year, the New York-based company was in talks [[link removed]] to go public via a merger with Bull Horn Holdings Corp, a blank-check company backed by former NBA player Baron Davis.

Sales Decline

The video game industry may have to reset itself, as game sales are expected to decline annually for the first time since 2015 due to a looming recession, per [[link removed]] Ampere Analysis.

The decline follows a boost in the market due to COVID-related restrictions and the release of new consoles from tech giants Microsoft and Sony in 2020.

The global games and services market grew 26% from 2019 to 2021 and reached a record $191 billion. The market is expected to reach $188 billion in 2022, down 1.2% year-over-year.

However, the sector is projected to get back on track in 2023 with $195 billion in sales.

Conversation Starters The Big Ten Conference will likely pursue [[link removed]] Notre Dame after swiping USC and UCLA from the Pac-12 last week. WNBA superstar Brittney Griner has pleaded [[link removed]] guilty in a Russian court to drug charges, according to Reuters. Formula 1 teams and FIA officials will meet in Austria on Friday ahead of the Austrian Grand Prix to discuss [[link removed]] compromises pertaining to this season’s $140 million budget cap. The World Baseball Classic will officially return [[link removed]] in 2023 with host cities that include Miami, Phoenix, Tokyo, and others.

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Market Movers

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

WWE [[link removed]]

World Wrestling Entertainment, Inc.

[[link removed]]

$65.00

[[link removed]]

+1.59%

[[link removed]] WYNN [[link removed]]

Wynn Resorts Ltd.

[[link removed]]

$57.77

[[link removed]]

+1.87%

[[link removed]] CLAR [[link removed]]

Clarus Corp

[[link removed]]

$21.10

[[link removed]]

+1.93%

[[link removed]] ZBRA [[link removed]]

Zebra Technologies Corp.

[[link removed]]

$304.99

[[link removed]]

+2.29%

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

Vail Resorts Inc.

[[link removed]]

$219.80

[[link removed]]

-0.36%

[[link removed]] MANU [[link removed]]

Manchester United Plc.

[[link removed]]

$10.85

[[link removed]]

-0.64%

[[link removed]] (Note: All as of market close on 7/7/22) What to Watch

The 2022 NHL Draft takes place on Thursday night at the Bell Centre.

Who will the Montreal Canadiens select with the No. 1 overall pick?

How to Watch: 7 p.m. ET on ESPN

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

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