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 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 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 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 22 races.

Formula 1’s 2023 calendar will likely 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 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.

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 $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 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.

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 $1.24 billion in revenue in Q2 2022, a 6% decline year-over-year, failing to meet Wall Street estimates 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 “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.