July 13, 2022

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Did you watch “Malcolm in the Middle” back in the 2000s? The star, Frankie Muniz, became a millionaire overnight as a teenage actor, and one of his passions was luxury sports cars — he had dozens of them.

Now his main focus is auto racing: “When I originally started racing in 2005, my passion for street cars went away.” The 36-year-old says he’ll be driving in NASCAR by 2023.

Listen to or watch the full conversation on the first episode of our new podcast, My Other Passion. We got you covered on Apple [[link removed]], Spotify [[link removed]], and YouTube [[link removed]]. Enjoy. 🎧

Nike, Fanatics Team Up for College Sports Apparel [[link removed]]

Fanatics

Fanatics has entered a long-term, exclusive deal with Nike to manufacture college sports apparel.

The Fanatics College division already has deals with most Nike-sponsored schools, but will now collaborate with Nike itself. Fanatics Commerce CEO Doug Mack says the company plans “to maximize the value of Nike’s college partnerships by creating faster speed-to-market of fan gear.”

Financial terms weren’t disclosed. Manufacturing is reportedly set to begin in Summer 2024.

Fanatics, which has a $27 billion valuation [[link removed].], will make Nike-branded replica jerseys, fan apparel, sideline apparel, headwear, and other items.Nike will continue to focus [[link removed]] on in-game player products. The Swoosh is also extending its licensing relationship with collegiate partner Branded Custom Sportswear.

Nike reportedly outfitted a record [[link removed]] 48 teams in the most recent NCAA basketball tournament and outfits more than half of Division I football programs.

The deal with Fanatics will reportedly include Clemson, Georgia, Ohio State, Oklahoma, Oregon, and Penn State, among others — all currently Nike schools — and focus on the growth of women’s apparel. Fanatics already manufactures [[link removed]] NFL and MLB Nike fan apparel.

Nike reported [[link removed]] $12.23 billion in fourth-quarter revenue last month.

Further Expansion

After acquiring [[link removed]] Topps trading cards for $500 million in January, Fanatics negotiated NCAA sports cards licensing agreements to build a network of more than 100 universities.

Fanatics also struck a deal with OneTeam Partners to produce customizable college player jerseys and has deals with more than 200 student-athletes.

Connected Fitness Giant Tonal to Cut 35% of Workforce [[link removed]]

Tonal

Smart home gym-maker Tonal is slashing 35% of its workforce — adding to a growing list of connected fitness companies restructuring their businesses, according to CNBC.

Tonal — backed by a star-studded group of investors including Serena Williams, LeBron James, Steph Curry, and others — is cutting its workforce to become profitable [[link removed]] as it aims to go public.

The fitness company currently employs roughly 750 people.Before the pandemic, its workforce stood at just over 110 employees.The company has yet to become profitable since its launch in 2015.It also plans to cut back on advertising to alleviate customer acquisition costs.

Tonal benefited from high demand for connected fitness equipment during the pandemic. In March 2021, it completed [[link removed]] a $250 million Series E funding round at a $1.6 billion valuation.

Led by Dragoneer Investment Group, the round included L Catterton, Sapphire Ventures, Cobalt Capital, and athletes Drew Brees, Mike Tyson, Sue Bird, and Maria Sharapova.

To date, Tonal has raised $450 million in fresh capital.

Connected Cuts

Tonal joins Peloton in connected fitness companies cutting jobs. On Tuesday, Peloton announced [[link removed]] it will suspend operations at its Tonic Fitness Technology, Inc. facility. Around 600 Tonic employees will be laid off as part of the transaction, according to Bloomberg.

Peloton acquired the Taiwan-based equipment manufacturer in 2019 for $47.4 million.

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Crypto’s Impact on Esports and Gaming

Over the last few years, esports and gaming has grown exponentially. What was once only considered a hobby is now a legitimate, competitive segment of the sports world that is constantly evolving.

The rise of blockchain technology [[link removed]] and cryptocurrencies have made a significant impact on the evolution of the esports industry.

In Lesson 3 of Crypto in Sports Essentials [[link removed]], Steve Arhancet, CEO & Owner of Team Liquid, sits down with Team Liquid member and professional gamer, Juan ‘Hungrybox’ DeBiedma, to discuss how the mainstream adoption of cryptocurrencies and NFTs is changing the landscape of the industry and improving the fan experience for all.

Sign up [[link removed]] for the course today.

Cubs Co-Owner Interested in Piece of Chicago Sky [[link removed]]

Kamil Krzaczynski-USA TODAY Sports

One of the Chicago Cubs’ co-owners could add another Windy City team to her portfolio.

Chicago Sky owner Michael Alter has reportedly [[link removed]] held preliminary talks with Laura Ricketts about becoming a potential investor in the WNBA team.

After the Sky won the 2021 WNBA Finals, Alter expressed his willingness to bring on investors — clarifying that it wasn’t for a lack of financial resources, but rather to increase the team’s value.

Without confirming discussions, Alter told [[link removed]] the Chicago Tribune that Ricketts “is a very prominent sports team owner,” adding, “If she is someone who wanted to get involved and had an interest in her, then we would certainly talk about it.”

Laura Ricketts, along with siblings Tom, Pete, and Todd, purchased [[link removed]] all but 5% of the Cubs in 2009 for $845 million through Chicago Baseball Holdings. They acquired the rest in 2019. The family also redeveloped the area around Wrigley Field and has plans to add a sportsbook to the stadium.The Ricketts were one of the final bidders for Chelsea FC earlier this year but withdrew [[link removed]] from negotiations in the late stages.

The Sky and the Cubs have worked with each other before. The former signed [[link removed]] a multiyear deal with the latter’s Marquee Sports Network in May to carry select Sky games.

Community Relations

Ricketts and her wife Brooke Skinner reportedly are interested because the team aligns with their philanthropic efforts.

Alter said, “She has been civically active here in Chicago, which is very important to us.”

Conversation Starters In The Leadoff, Big Ten media rights could increase up to 25% in value, the NBA votes to make the postseason play-in tournament permanent, the Premier Hockey Federation continues to expand, and Peloton cycles out in-house manufacturing. Click here to listen [[link removed]]. Big 12 commissioner Brett Yormark has declared [[link removed]] that the conference is “exploring all options” for expansion. Drew Brees is being eyed [[link removed]] by Amazon Prime Video as one of the stars of a “Quarterbacks Only” megacast of “Thursday Night Football,” sources tell Front Office Sports. Love the Front Office Sports newsletter? We’re looking for ambassadors who would like to be paid to promote the newsletter. Fill out this form [[link removed]] to be considered for the program.

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New Podcast Is Live 🚨 Listen Now 🚨

My Other Passion, presented by Netsuite [[link removed]], brings you conversations with the most influential athletes, celebrities, and executives about what drives them – beyond the game.

In our first episode [[link removed]], Ernest Baker, Editor in Chief of Front Office Sports, sits down with Frankie Muniz, who’s famous for his role in the hit sitcom “Malcolm In The Middle,” but has spent years pursuing his passion as a race car driver since he stepped away from Hollywood.

With the help of Netsuite [[link removed]], the #1 Cloud Financial system that gives visibility and control of your financials, inventory, and more, this is the first of many authentic and in-depth conversations we’ll dive into with the most influential people.

Tune in every Wednesday for new episodes on Spotify [[link removed]] and Apple Podcasts [[link removed]], and make sure to subscribe so you never miss out on future episodes.

If you or someone you know is an athlete, celebrity, or business leader, reach out [[link removed]] to be featured on an upcoming episode.

Market Movers

U.S. stocks were mixed on Wednesday. Here’s a look at how sports-related stocks performed:

BYD [[link removed]]

Boyd Gaming Corp.

[[link removed]]

$50.35

[[link removed]]

+1.49%

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

Vail Resorts Inc.

[[link removed]]

$212.76

[[link removed]]

+2.04%

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

Comcast Corp

[[link removed]]

$39.97

[[link removed]]

+2.51%

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

Planet Fitness Inc

[[link removed]]

$72.67

[[link removed]]

+3.64%

[[link removed]] T [[link removed]]

AT&T, Inc.

[[link removed]]

$20.45

[[link removed]]

-0.39%

[[link removed]] (Note: All as of market close on 7/13/22) What to Watch

Watch some of the best soccer players in the world compete in Liga MX.

Last season, Atlas FC took home both the Apertura and Clausura championships. This year, the 17 other Liga MX clubs will look to claim the top spot.

How to Watch: Stream Liga MX action on ESPN+ [[link removed]]*

*Sponsored content. Game availability differs by market, check your local listing.

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

MORE FROM FRONT OFFICE SPORTS:

The Leadoff [[link removed]] - Daily business of sports podcast

Front Office Sports Pro [[link removed]] - The most promising opportunities where sports meets industry

Front Office Sports Learning [[link removed]] - Professional education at the speed of culture

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