July 12, 2022

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As Belarus and Russia’s invasion of Ukraine continues, their sports programs continue to face the consequences. International Olympic Committee member Sir Craig Reedie said [[link removed]] athletes from the two countries will likely not be allowed to compete in qualifiers for Paris 2024 — effectively barring them from the competition before it begins.

Peloton Cycles Out In-House Manufacturing [[link removed]]

Shutterstock

Peloton announced it will expand its relationship with Taiwanese manufacturer Rexon Industrial Corp. — and stop in-house bike production — in its latest effort to cut costs.

The fitness company will also suspend [[link removed].] operations at its Tonic Fitness Technology, Inc. facility through the end of the year. Bloomberg reports that around 600 Tonic employees will be laid off as part of the transition. Peloton acquired [[link removed].] the manufacturer in 2019 for $47.4 million.

“We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility,” Peloton CEO Barry McCarthy said.

Peloton lost [[link removed]] around $757 million in its most recent earnings report.

The announcement represents a major shift from a year ago, when Peloton was fighting to meet demand.

Last year, Peloton revealed plans for a new $400 million factory in Ohio. The company said [[link removed].] in February that it would scrap those plans and scale back its number of delivery centers and warehouses.In December 2020, Peloton announced [[link removed]] it would acquire fitness equipment maker Precor for $420 million. Peloton’s Plans

Since McCarthy took the CEO role in February, Peloton has made a number of moves to stay afloat. After cutting 2,800 jobs, Peloton raised membership prices, announced [[link removed]] a rowing machine, and signed an agreement with JPMorgan and Goldman Sachs to borrow $750 million in long-term debt.

The company is also testing [[link removed]] a rental format for its equipment.

WNBA Expands Schedule, Increases Playoff Money [[link removed]]

Wendell Cruz-USA TODAY Sports

The WNBA isn’t quite ready to expand its number of teams next season, but the league isn’t passing up other opportunities to grow.

Commissioner Cathy Engelbert announced [[link removed]] this week that 40 games will be played during the 2023 session, a record for the league.

The 2022 season saw teams play a record 36 games after viewership records were broken during the 2021 season.The league’s current collective bargaining agreement allows no more than 44 per season.

“I’d like to go for 44 at some point when we have a good footprint to do that,” Engelbert said ahead of Sunday’s WNBA’s All-Star Game.

Additionally, Engelbert announced [[link removed]] the league will use charter flights for all its league Finals games, as well as increase the bonus-pool money to $500,000 for the playoffs — doubling what each championship winner receives.

Securing the league’s next domestic media rights deal is also “top business priority” for Engelbert. ESPN is paying the WNBA a reported $25 million per year through 2025 for its current package.

“We need to make it easier for fans to watch our games, to know where our games are.”

Expected Expansion

Engelbert hopes to have two more teams in the league by 2024, and no later than 2025.

“Now we have to find the right ownership groups with the right commitment and financial wherewithal to really be committed to standing up a WNBA team in their city.” Engelbert said multiple cities are interested.

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Atlético Madrid Scores Shirt Deal Worth $42M Annually [[link removed]]

Atletico Madrid

Atlético Madrid has confirmed a multiyear shirt sponsorship deal with cryptocurrency exchange platform WhaleFin worth $42.3 million annually, per 2Playbook.

WhaleFin will take over from trading platform Plus500 at the start of the 2022-23 season following the expiration of the Israel-based company’s contract this offseason.

Plus500 reportedly paid [[link removed]] $17 million per year.WhaleFin parent company The Amber Group will be a digital wealth partner.Its deal includes branding at Estadio Metropolitano, Atletico’s home field since 2017.

Atlético — the 13th-most valuable [[link removed]] soccer team in the world at $1.5 billion — has had success on the pitch, finishing third in La Liga this past season and being crowned champions in 2021.

The club has generated $396 million in revenue in 2022, up from $368 million in 2021. However, Atlético has an operating income of only $45 million, compared to $62 million last year.

Joining the Party

Atlético joins other top-flight soccer clubs in securing new shirt deals.

In June, Paris Saint-Germain secured [[link removed]] a deal with Qatar Airways worth as much as $72 million per year. The same month, AC Milan extended its deal with Puma, which will reportedly pay Milan $31.5 million per year under a five-year contract.

Earlier this month, Manchester United entered [[link removed]] a shirt-sleeve deal with IT firm DXC Technology, while its Premier League rival Liverpool is in talks for a shirt deal that could fetch [[link removed]] a record $100 million per year.

Standard Chartered originally paid Liverpool $25 million annually.

Conversation Starters In The Leadoff, MBK founder Michael B. Kim is interested in buying the Washington Nationals, Super League clubs accuse UEFA and FIFA of a soccer monopoly, New York’s sports betting tax revenue reaches a record high, and the 2030 Olympics could cost British Columbia $3 billion. Click here to listen [[link removed]]. Texas Tech football has unveiled [[link removed]] a $200 million facilities project — the largest football program investment in the school’s history. The Chicago Bears say they are focused [[link removed]] on building a new venue in Arlington Heights amid reports that the team was exploring adding a dome to Soldier Field.

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Market Movers

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

LSXMK [[link removed]]

Liberty Media Corp.

[[link removed]]

$36.22

[[link removed]]

+0.36%

[[link removed]] CMCSA [[link removed]]

Comcast Corp

[[link removed]]

$39.76

[[link removed]]

+1.14%

[[link removed]] RCI [[link removed]]

Rogers Communications Inc.

[[link removed]]

$46.30

[[link removed]]

+2.55%

[[link removed]] PLNT [[link removed]]

Planet Fitness Inc

[[link removed]]

$71.57

[[link removed]]

-0.80%

[[link removed]] FWONA [[link removed]]

Formula One Group

[[link removed]]

$54.28

[[link removed]]

-1.04%

[[link removed]] (Note: All as of market close on 7/12/22) What to Watch

The Los Angeles Dodgers (56-29) face the St. Louis Cardinals (47-42) on Tuesday night at Busch Stadium.

How to Watch: 7:45 p.m. ET on TBS

Betting Odds: Dodgers -1.5 || ML -155 || O/U 8.5

Pick: Expect the Cardinals to keep things close. Take St. Louis to cover.

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

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