July 26, 2022

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Shareef O’Neal — son of Shaquille — refuses to give up on his dreams of playing pro hoops. Despite open-heart surgery in 2018 and foot injuries in 2020 and 2021 — health problems that forced teams to overlook him in the NBA Draft — Shareef just signed a six-figure [[link removed]] deal with G League Ignite after playing for the Lakers’ Summer League squad.

Powerade, BODYARMOR Pour into Coke’s $11.3B Quarter [[link removed]]

Jay Biggerstaff-USA TODAY Sports

Coca-Cola reported $11.3 billion in second-quarter revenue Tuesday, outpacing analysts’ estimates of $10.56 billion and growing 12% from the same period last year.

The company’s sports drink segment grew [[link removed]] 7%, primarily attributed to the growth of BODYARMOR and Powerade.

After purchasing 15% of BODYARMOR in 2018, the company acquired [[link removed]] the brand’s remaining shares for $5.6 billion in November 2021. Coca-Cola’s earnings report is BODYARMOR’s second full quarter under the brand.

During the three months that ended July 1, 2022, Coca-Cola recorded net charges of $13 million related to the acquisition. The charges include transition and transaction costs, employee retention costs, and “the amortization of noncompete agreements, net of the reimbursement of distributor termination fees.”

Net income reached [[link removed]] $1.91 billion, down from the $2.62 billion it recorded one year ago. The company said its second-quarter revenue grew due to higher pricing and an increase in global case volume.

Coca-Cola raised its full-year outlook, expecting organic revenue growth of 12% to 13% compared to its previous guidance of 7% to 8%.

Pixel Pour

During the quarter, Coca-Cola released [[link removed]] a new flavor called Byte, which is supposed to taste like pixels. The drink appeared globally on Pixel Point, an island in the video game “Fortnite.” The company previously stated [[link removed]] the flavor was inspired by the global gaming community.

IPG, PMG Win Coveted Nike Account Following $1B Review [[link removed]]

Nike

Nike finished its largest global media review in a decade and is now reportedly splitting its business between two companies — one for domestic business and the other for international.

The estimated $1 billion review covered the Nike and Jordan brands in the company’s major markets.

According to Campaign US, IPG Mediabrands’ Initiative will cover [[link removed]] Nike’s international integrated planning and buying business, and independent agency PMG will take the company’s North American side.

The Swoosh’s domestic account is estimated to be worth $300 million to $400 million. Nike reported [[link removed][1].pdf] $12.2 billion in fourth-quarter revenue.

Nike’s media planning for North America was previously handled by Wieden + Kennedy, Nike’s creative agency of record for more than 35 years. Wieden + Kennedy reportedly participated in the pitch. Along with becoming Nike’s integrated media agency of record for North America, PMG becomes a global digital capabilities partner through which Nike will leverage its technology infrastructure.

Nike’s international account was previously divided between Mindshare and Assembly. Mindshare reportedly pitched to keep the account.

Other brands that reportedly pitched for the accounts include Dentsu Media, Havas Media, and Omnicom Media Group.

Brand Buddies

IPG Mediabrands won Nike’s Converse brand in 2018, 15 years after Nike acquired [[link removed]] it for $315 million. Converse was not up for review as part of the process, which was originally set to wrap up in the spring.

Final contracts for the review reportedly weren’t signed until late July.

SPONSORED BY QUINTEVENTS

NBA and QuintEvents form NBA Experiences

The NBA and QuintEvents [[link removed]], a global industry leader in experiential packages at some of the world’s largest events, have announced a multi-year partnership [[link removed]] making Quint the Official Experiences Provider of the NBA.

This new partnership provides the NBA with a minority equity stake in Quint and launches the platform NBA Experiences, featuring immersive live experiences both on-and-off the court at marquee NBA events and offering best-in-class fan engagement.

NBA Experiences will provide unprecedented access to the NBA by offering customized experiential packages at league events throughout the NBA calendar year, including NBA All-Star, NBA Draft presented by State Farm, NBA Summer League and NBA Global Games.

Learn more about NBA Experiences [[link removed]].

Fantasy Sports Company Valued at $485M, Eyes Sports Betting [[link removed]]

Underdog Fantasy

Fantasy sports company Underdog has raised $35 million in Series B funding, valuing the business at $485 million.

BlackRock, the world’s largest [[link removed]] asset manager with $9.57 trillion in assets under management, participated in the round, which included sports betting and tech-focused VC firm Acies Investments.

The round will allow Underdog to add more than 100 new employees to its workforce, expand into the U.S. sports betting market, and build innovative licensed sports betting products.

Underdog plans to launch [[link removed]] in Ohio and Colorado in 2023.The app has a $10 million NFL Best Ball tournament — the largest season-long fantasy pool ever.The company has yet to disclose its total number of customers.

BlackRock and Acies joins existing Underdog investors Mark Cuban, NFL wide receiver Odell Beckham Jr., Kevin Durant’s Thirty Five Ventures, NBA guard Trae Young, rapper Nas, and others.

Previous Round

Underdog’s latest influx of fresh capital follows a $10 million funding round [[link removed]] in May 2021 led by tech investor and general partner of venture fund SV Angel Kevin Carter. The round included Detroit Lions quarterback Jared Goff, ESPN’s Adam Schefter, and the Action Network.

The investment arm of Philadelphia 76ers and New Jersey Devils owner Harris Blitzer Sports & Entertainment — HBSE Ventures — also participated [[link removed]] in Underdog’s Series A funding round.

Conversation Starters In The Leadoff, the Green Bay Packers report record revenue, Fanatics secures a deal with the University of Alabama, MLB and its player association fail to reach a deal on an international draft, and Cricket Australia lands a $250 million rights deal with Disney. Click here to listen [[link removed]]. Fox Sports is poised [[link removed]] to name Daryl Johnston as its No. 2 NFL game analyst this season, sources tell Front Office Sports. The NFL and SiriusXM extended [[link removed]] their broadcast agreement that began in 2004 for another five years.

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What’s more, OddsChecker has partnered with Front Office Sports to give away 10 FREE NFL jerseys to new subscribers before the 2022 season kicks off. All you have to do is:

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Market Movers

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

FL [[link removed]]

Foot Locker Inc

[[link removed]]

$26.36

[[link removed]]

+0.13%

[[link removed]] ELY [[link removed]]

Callaway Golf Co.

[[link removed]]

$21.56

[[link removed]]

-0.28%

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

AT&T, Inc.

[[link removed]]

$18.30

[[link removed]]

-0.65%

[[link removed]] MGM [[link removed]]

MGM Resorts International

[[link removed]]

$29.92

[[link removed]]

-2.32%

[[link removed]] WWE [[link removed]]

World Wrestling Entertainment, Inc.

[[link removed]]

$69.41

[[link removed]]

-2.99%

[[link removed]] (Note: All as of market close on 7/26/22) What to Watch

The New York Yankees (66-31) face the New York Mets (59-37) on Tuesday night at Citi Field.

How to Watch: 7:10 p.m. ET on TBS

Betting Odds: Yankees -1.5 || ML -120 || O/U 8

Pick: Expect Aaron Judge to have a strong night. Take the Yankees on the moneyline.

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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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