July 15, 2022

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It might not sound impressive that the Baltimore Orioles have won 10 games in a row — until you consider that they’ve done it as the lowest-spending [[link removed]] team in baseball. The Birds are the first team in over 30 years to win 10 straight with MLB’s lowest Opening Day payroll.

NBA Tops $10B in Revenue for First Time Ever [[link removed]]

Darren Yamashita-USA TODAY Sports

NBA commissioner Adam Silver said the league posted a record year for revenue with the 2021-22 season, surpassing $10 billion for the first time.

The league, which is about to enter its 76th season, reported the results following two shortened seasons hampered by limited fan attendance amid pandemic-related restrictions.

For the 2018-19 campaign, revenue for the NBA reached [[link removed]] $8.8 billion.A season later, the league generated $8.3 billion in revenue.The 2020-21 season saw [[link removed]] roughly a 33% drop in revenue compared to the year prior.That season, sponsorships brought in a record $1.46 billion in revenue.

The NBA, like many other professional sports leagues, has benefited from expensive media rights deals — its coveted rights make up roughly $2.6 billion of the league’s annual revenue.

Changes to be Made

On Tuesday, the NBA board of governors voted [[link removed]] to make the highly competitive playoff play-in tournament permanent. The tournament’s inclusion was previously approved on a year-to-year basis, but its growing popularity with teams and fans pushed the NBA to keep it around.

Silver is also advocating lowering [[link removed]] the minimum NBA Draft eligibility age from 19 to 18. The NBA’s minimum age prevents high school players from being selected.

As a result, prospects have taken different routes to reach the NBA, including opportunities overseas and the NBA’s G League Ignite team — which allows young players to be paid.

Yankees Swing for the Fences With Jersey Patch Deal [[link removed]]

Vincent Carchietta-USA TODAY Sports

MLB will begin allowing teams to sell space on their uniform sleeves for the first time in the 2023 season — and the New York Yankees are ready to strike a deal.

The Bronx Bombers have recruited [[link removed]] Legends to manage the search. The Yankees, who own a stake in Legends, are reportedly looking to sign a multiyear deal.

It’s unclear how much the 27-time World Series champs are looking for, but it won’t be cheap. Forbes last valued the Yankees at $6 billion — the second-most valuable franchise in the world and a big hike from MLB’s average of $2.07 billion. On top of that, the team hasn’t sold the naming rights to the iconic Yankee Stadium.

“I would characterize the investment as a top-tier naming rights-type investment,” Chris Hibbs, president of Legends’ Global Partnerships division, said.

MLB could reportedly generate between $350 million to $400 million per year through the teams’ jersey patch deals — averaging $13.3 million per franchise. In 2021, MLB brought in [[link removed]] $1.13 billion in corporate sponsorships.

Legendary Service

The Yankees and the Dallas Cowboys founded Legends in 2008 and still collectively own [[link removed]] more than 40% of equity.

The company’s initial focus was on concession operations and retail merchandising within their stadiums. Since expanding to include hospitality and sponsorships, the company reached a $1.3 billion valuation after investment firm Sixth Street acquired a majority stake last year.

Legends launched its Global Partnerships division in February 2020 and lists SoFi Stadium, Allegiant Stadium, and the University of Notre Dame among its clients.

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Play DraftKings This All-Star Weekend

Major League Baseball is headed to Hollywood for the 2022 All-Star Game [[link removed]]. And for the first time since 1980, Dodger Stadium will host the game.

With the Home Run Derby taking place on Monday, July 18, and the All-Star Game on Tuesday, July 19, there’s plenty of action to get involved in.

Enter the Daily Fantasy Baseball contests on DraftKings [[link removed]] for your shot at huge cash prizes during All-Star Weekend. Pick a Contest, Draft your Lineup, Sweat the Sweat, and Check Results.

Get your game on [[link removed]] – make your picks now!

Firm Headed by Former 49ers QB Nears $7B Raised [[link removed]]

Mark J. Rebilas-USA TODAY Sports

Steve Young is widely known for winning three Super Bowls with the San Francisco 49ers, but the NFL Hall of Fame quarterback has had just as much success in the boardroom.

On top of providing business counseling for current and former players, Young and longtime business partner Rich Lawson have raised $6.8 billion across four funds through HGGC LLC, which has completed [[link removed]] $50 billion in deals. The firm has commitments from [[link removed]] over 170 Limited Partners across 25 countries.

HGGC focuses on middle-market companies in four sectors: business and tech-enabled services, consumer, financial services, and software and technology.

HGGC’s Fund IV completed its $2.54 billion raise in June and has already invested in nine companies.

In November 2021, HGGC and Snapdragon committed [[link removed]] a $240 million growth investment to Fullscript, a platform powering “the expansion and accessibility of integrated medicine.The same month, HGGC completed [[link removed]] a majority investment in PF Atlantic, a top-15 Planet Fitness franchisee. PF Atlantic rebranded to Grand Fitness Partners as part of the investment.In April, HGGC formed [[link removed]] Aspire Holdings to invest up to $300 million in RIAs.

Since launching in 2007, the company says it has completed more than 500 investments, add-on acquisitions, recapitalizations, and liquidity events.

Looking Ahead

Young, who had a reported [[link removed]] $200 million net worth last year, wants to pay his success forward. This year, Young and Lawson spread equity in HGGC in preparation for shared ownership.

Riot Games Punishes Top Esports Team Owner for Toxic Workplace [[link removed]]

TSM

Riot Games has found the owner of an affiliate esports team guilty of violating company policy relating to harassment, profanity, and hate speech.

Andy Dinh, the owner of Team SoloMid — the most valuable [[link removed]] esports company in the world at $540 million — is now facing repercussions for creating a toxic work environment.

The 30-year-old, who has led TSM since 2009, has been placed [[link removed]] on a two-year probation.Owned by Chinese conglomerate Tencent, Riot Games has also fined TSM $75,000.Proceeds from the fine will be donated to a mental health or anti-bullying charity.

Riot Games’ guilty verdict ends a second investigation into Dinh and his behavior.

In January, following a report of “mental abuse,” TSM launched its own probe. But in May, TSM’s investigation concluded [[link removed]] that there was “no unlawful conduct” by Dinh.

Emerging Companies

Riot Games and TSM have a relationship that stems from the root of competitive gaming.

TSM operates esports teams for Riot Games-produced titles “League of Legends” and “Valorant,” while Riot Games operates their respective esports leagues.

As one of the most popular esports companies in the world, TSM has garnered the attention of emerging companies in tech.

In June 2021, TSM secured a $210 million deal with cryptocurrency exchange FTX — rebranding to TSM FTX. In January, FTX raised [[link removed]] $400 million in a Series C funding round, valuing the company at $32 billion.

However, that value could now be affected by the recent crypto crash.

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At the Top of Their Game

Front Office Sports presents The C-Suite, a weekly LinkedIn Live interview series where Chief Content Officer Lisa Granatstein sits down with sports leaders who are driving global business and changing culture.

The series kicks off on Tuesday, July 19 [[link removed]] with Amy Choyne , [[link removed]] Chief Brand Officer of the United States Tennis Association. Get the latest on next month’s eagerly anticipated US Open, the USTA’s plans to grow its business, and the challenges and changes impacting tennis.

Join the conversation Tuesdays at 1 p.m. ET. Future events include:

Karin Timpone, EVP, Chief Marketing Officer, MLB (July 26) Tim Ellis, EVP, Chief Marketing Officer, NFL (Aug. 2) Jessica Berman, Commissioner, NWSL (Aug. 6)

Visit Front Office Sports’ Upcoming Events [[link removed]] page to attend and be notified when events go live.

Conversation Starters Ahead of the weekend’s Open Championship at the Old Course at St. Andrews, Tiger Woods has reportedly [[link removed]] been the largest betting liability for several sportsbooks. On the first day of unrestricted free agency Wednesday, Johnny Gaudreau signed [[link removed]] a seven-year, $68.3 million deal with the Blue Jackets for a $9.8 million average salary and cap hit – less money than other teams could offer. Excel Sports Management and agent Casey Close are suing [[link removed]] Dough Gottlieb for libel, with Close alleging that the radio host defamed him in a tweet regarding contract negotiations for Freddie Freeman. Alex Rodriguez sat down with Front Office Sports to discuss [[link removed]] his new “Step Up to the Plate” initiative with Anheuser-Busch to help Hispanic students seeking careers in sports business. Today's Action

MLB

06:40 PM

Phillies (+135) at Marlins (-155)

Bet Now [[link removed]]

MLB

07:10 PM

Tigers (+155) at Guardians (-180)

Bet Now [[link removed]]

MLB

08:40 PM

Pirates (+120) at Rockies (-140)

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

Do you watch the NBA?

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

Thursday’s Answer

62% of respondents watch women’s sports on TV.

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

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

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