July 28, 2022

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It’s been six months since former Dolphins coach Brian Flores filed a racial discrimination lawsuit against the NFL, yet the league’s internal investigation, led by former SEC chair Mary Jo White, still hasn’t concluded [[link removed]] — with no official updates are forthcoming. However, a source with knowledge of the investigation told FOS that there have been “indications” that White has corroborated at least some of Flores’ claims.

Extra Game Helps NFL Score $4.4B in Ad Revenue [[link removed]]

Jay Biggerstaff-USA TODAY Sports

The NFL was a more valuable media property than ever last year.

The league generated a record $4.4 billion in advertising revenue for its media partners, according [[link removed]] to a report by Standard Media Index — a 14% increase over the 2020-21 season.

The league added a 17th game to the regular-season schedule, growing ad inventory.30-second ad spots increased 3% on average from the previous year to $480,000.Late buys on ads reached $600,000, and up to $800,000 for “Sunday Night Football” on NBC.

NFL games comprised 75 of the 100 most-watched broadcasts in 2021.

Pricey Rights

While the $4.4 billion figure is impressive, it pales in comparison to what the NFL charges its broadcasters for the rights to show its games.

The league’s deals with CBS, NBC, Fox, ESPN, and Amazon will collectively bring in around $10 billion per season for 11 years, starting with the 2023 season.

That’s before adding in NFL Sunday Ticket, which the league is hoping to sell for $2.5 billion annually. The NFL is looking for a streaming service to take the out-of-market games package, with Google, Amazon, and Apple all reportedly interested.

The league is also launching [[link removed]] its own streaming service, NFL+, which will allow fans to watch games within the NFL app. The service could reportedly cost $5 per month.

Formula 1 May Shift Gears, Leave Two Races in Rearview [[link removed]]

F1

Formula 1 contracts for the Belgian and French Grands Prix end this year — and it doesn’t look like the sport will return anytime soon.

The Belgian GP is not on the provisional 2023 calendar, and with multiple revived races in other countries, there may not be a slot for the French GP in the 24-race calendar. The 2022 season ran [[link removed]] 22 races.

Formula 1’s 2023 calendar will likely [[link removed]] feature the return of the South African GP at Kyalami, plus races in Shanghai, Las Vegas, and Qatar.

The Kyalami deal is reportedly not finalized yet.China’s 2022 race is also up in the air due to pandemic-related concerns. The reported plan is to move the race toward the end of the year.

Monaco will have to be finalized, too. F1 reportedly wants to raise its commercial fee above its current $15 million — one of its smallest hosting fees — to match the level of other events. Qatar reportedly [[link removed]] pays F1 $55 million for its contract, while China pays $50 million. France’s current deal is for $22 million.

Driver Dilemma

“I think we all love going to France, to Spa, but at the same time the sport is growing so much that I guess there’s a lot of new places that are, I guess, paying quite a lot of money to be part of Formula 1,” Ferrari driver Carlos Sainz said.

Sainz added that the calendar needs to stay under 25 races.

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Win a Piece of Sports History

Imagine acquiring a Michael Jordan rookie card worth over $200,000 for free.

Whatnot [[link removed]], the largest independent live shopping platform in the U.S., will be giving away pack by pack two of the most iconic sports card boxes ever made: 1986 Fleer (Michael Jordan rookie year) and 2003 Topps Chrome (LeBron James rookie year).

The giveaway will take place this Saturday [[link removed]] at 2 p.m. ET live on the Whatnot app from the National Sports Collectors Convention in Atlantic City, New Jersey.

All you need is the Whatnot app, an account, and be present in the stream to enter for your chance to win a piece of sports history.

Bookmark the free live stream [[link removed]], which will begin this Saturday at 2 p.m. ET, for your chance to win.

Churchill Downs Gallops to Record $582.5M Quarter [[link removed]]

Jamie Rhodes-USA TODAY Sports

Churchill Downs reported record second-quarter revenue of $582.5 million, up from $515.1 million during the same period last year.

Net income also hit a record [[link removed]] $339.3 million, a substantial year-over-year jump from $108.3 million.

The company enjoyed several milestones during the quarter, including the 148th Kentucky Derby at Churchill Downs Racetrack.

Churchill Downs’ live and historical racing segment had a record $275.9 million in revenue.The Kentucky Derby brought in a record Derby Week all-sources handle for the racetrack, back to full capacity after pandemic restrictions in 2021. Churchill Downs Racetrack had a $625.6 million handle during the quarter.The Homestretch Club, a $45 million renovation of the grandstand area, debuted.The company closed on the $291 million sale of 115.7 acres near Calder Casino.

Net revenue for betting brand TwinSpires fell $4.1 million year-over-year. In February, Churchill Downs announced it would exit [[link removed]] its larger online sports betting, iGaming operation, and casino business, but keep TwinSpires and its sportsbooks in casinos.

Net revenue for the company’s gaming segment dropped $1.5 million.

Acquisition Updates

In February, Churchill Downs entered an agreement to purchase “substantially all of the assets” of P2E for $2.45 billion.

The acquisition includes Colonial Downs Racetrack, six historical racing entertainment venues across Virginia, del Lago Resort & Casino in Waterloo, New York, and the operations of Hard Rock Hotel & Casino in Sioux City, Iowa.

Churchill Downs has obtained approval from the Virginia Racing Commission, with other approvals pending.

Dip in Garmin’s Fitness Segment Leads to $1.24B Quarter [[link removed]]

Garmin

Garmin, which experienced a 34% drop year-over-year in its fitness segment, failed to meet expectations with its latest earnings report.

The Kansas-based company generated [[link removed]] $1.24 billion in revenue in Q2 2022, a 6% decline year-over-year, failing to meet Wall Street estimates [[link removed]] of $1.34 billion in revenue for the quarter.

Several of Garmin’s business segments took a hit during the quarter that ended June 25.

Fitness saw revenue reach $272 million compared to $413 million in Q2 2021.Auto sales fell by 6% during the quarter to $139.29 million.Its marine segment reported $242.79 million in revenue, a 7% decline year-over-year.

Known for its GPS devices, Garmin saw two business segments report growth in Q2. The company’s outdoor segment generated $381.92 million in revenue, an 18% increase year-over-year, while its aviation segment grew by 13% to $204.74 million during the quarter.

As a result of the lukewarm second quarter, Garmin downgraded its full-year revenue outlook. It projects to generate $5 billion in revenue in FY2022, down from an estimated $5.5 billion.

Sports Watches

Garmin has prioritized its line of sports watches in FY2022. In January, the company announced [[link removed]] “sweeping updates” to its flagship multisport fēnix smartwatch series.

Its latest fēnix 7 Series watches — which retail between $699 and $999 — feature touchscreens, new training features, solar charging, and protective button guards. The products also offer 24/7 health and wellness tools including Body Battery, Fitness Age, and Sleep Score.

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Crypto at its core is grounded in the idea of empowering the individual through a decentralized currency, providing everyone the freedom to buy, sell and trade without intermediaries.

As professional sports teams and leagues have begun to adopt crypto [[link removed]] in recent years, athletes have capitalized on the freedom and opportunities it provides as well.

In the final lesson [[link removed]] of Crypto in Sports Essentials, WNBA star, Jewell Loyd of the Seattle Storm shares her view on crypto, how she utilizes it to create content, engage in communities and start meaningful conversations. Plus, what the future holds for athletes who are getting involved in crypto at both the professional and collegiate level.

Sign up [[link removed]] for the course today to learn more.

Conversation Starters Want to know what it’s like to be CEO of a Premier League club or launch iconic video games with Microsoft and EA Sports? Peter Moore has done all that and more over the course of his career and he just joined our new podcast, My Other Passion, to talk about it with Front Office Sports EIC Ernest Baker. Listen or watch on Apple [[link removed]], Spotify [[link removed]], and YouTube [[link removed]]. Mets owner Steve Cohen has reportedly [[link removed]] dispatched several of his close associates to lobby New York City mayor Eric Adams and borough officials for one of the state’s three downstate commercial casino licenses. At the one-year mark of the NIL era, Nike, Under Armour, and Adidas have crafted specific strategies and programs to invest [[link removed]] in college athletes. From the first pitch to the soccer pitch, Atmosphere Sports is bringing sports back to the center with scores, highlights, and more. Learn more [[link removed]].*

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Question Of The Day

How often do you play video games?

Often [[link removed]] Sometimes [[link removed]] Never [[link removed]]

Wednesday’s Answer

32% of respondents say their company works with influencers as a marketing channel.

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

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

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