July 29, 2022

Read in Browser [[link removed]]

POWERED BY

Many college athletes have profited from their name, image, and likeness — but maybe not as literally as Decoldest Crawford. The Nebraska wide receiver just became the official [[link removed]] spokesperson for local air conditioning company SOS Heating and Cooling. “If anyone knows which HVAC company is the coldest in Nebraska, it’s him!” SOS posted on social media.

LeBron James’ LRMR Ventures and SC.Holdings Make Strategic Investment in Canyon Bicycles [[link removed]]

Canyon

LeBron James has been cycling since he was a kid. Now, he’s getting in on the business side.

LRMR Ventures, the family office of LeBron James and Maverick Carter, and SC.Holdings, a private equity and strategic advisory firm, are making a strategic investment in Canyon Bicycles, a pioneering direct-to-consumer bicycle brand.

The $30 million investment values Canyon at $750 million.The funds will be used to help Germany-based Canyon expand in the U.S.Groupe Bruxelles Lambert is the majority shareholder of the cycling company.

“LeBron is one of the biggest athletes globally, and he truly cares about cycling,” Canyon CEO Nicolas de Ros Wallace told the Financial Times, adding that James’ expertise in the U.S. sports and retail markets make the partnership “the perfect match.”

A former Nike executive, de Ros Wallace joined Canyon in January after previous chief executive Armin Landgraf stepped down for personal reasons in September.

The U.S. Cycling Boom

The U.S. bicycle market grew during the pandemic, but also faced headwinds from supply chain issues and tariffs on China.

Bike imports to the U.S. (excluding e-bikes) surged to 4.7 million in the first quarter, with port value rising [[link removed]] 52% year-over-year to $565 million, continuing a trend from H2 2021.

The U.S. bicycle market was estimated [[link removed]] at $9.5 billion in 2021.

“The quality of the products, the power of the Canyon brand, and the unique distribution model create a lot of compelling opportunities we wanted to be a part of,” said Carter.

Editor’s note: SC.Holdings is an investor in Front Office Sports.

Adidas Skates Out On NHL Apparel [[link removed]]

Aaron Doster-USA TODAY Sports

Adidas will not renew its deal as the NHL’s official uniform and apparel supplier when its contract expires after the 2023-24 season.

The company replaced Reebok in the 2017-18 season as part of a seven-year deal, which at the time was reportedly [[link removed]] worth at least double the $35 million Reebok paid annually. Reebok had been the league’s official uniform supplier since the 2005-06 season.

The NHL has reportedly started to inform other apparel companies of the transition.

Adidas was uninterested in renewing the deal.The company has reportedly already told players with expiring endorsement deals that the agreements wouldn’t be renewed.

In June, the NHL secured a deal [[link removed]] with Mitchell & Ness to collaborate on licensed apparel and accessories. Terms of the deal weren’t disclosed, but the agreement covers all 32 franchises. Fanatics and several high-profile investors acquired Mitchell & Ness for $250 million in February — five times the amount Adidas sold it for in 2016.

The NHL should be just fine. It has a broadcasting deal [[link removed]] with ESPN until 2028 worth $400 million annually, while Turner Sports holds a separate package worth $250 million annually.

Soccer Stripes

While Adidas may not be seen on the ice, sports fans can always find it on the pitch.

In March, the company announced [[link removed]] a deal to become the kit supplier for Italy’s national team. Adidas is in the middle of a 10-year, $1.3 billion kit deal [[link removed]] with Manchester United and a five-year, reportedly $391 million deal [[link removed]] with Arsenal.

SPONSORED BY HANG

Real Access to Your Sports Heroes

Today’s fans and brands want to connect with athletes and influencers in an authentic way.

HANG [[link removed]] has created the ultimate sports community among athletes, fans, and brands through virtual watch parties with on-camera access to talent, in-real-life events, and content.

With over 1.3M fans and growing, HANG offers brands alignment with today’s biggest stars, a turnkey marketing platform [[link removed]], product/brand content integration, and access to fan data.

Learn more about HANG – Contact Evan Messinger [[link removed]] for updates on their global slate of upcoming events including NFL, College Football, NBA, MLB, World Cup, and more.

Women’s Euro Final Will See Fans Spend $167M [[link removed]]

EURO 2022

Soccer fans are projected to spend $167 million during Sunday’s 2022 UEFA Women’s European Championship final between England and Germany at Wembley Stadium.

The spending will provide an economic boost for the U.K. economy, which is steadily improving after pandemic-related shutdowns and restrictions that hampered potential revenue.

Roughly $56 million will be spent [[link removed]] in pubs, bars, and restaurants, per GlobalData.$112 million will go toward snacks, drinks, and merchandise for fans watching at home.9.3 million people watched the semifinal between Germany and France on Wednesday.

The influx of cash spending follows record [[link removed]] crowds for this year’s tournament. The competition — which is held every four years — drew a total of 248,075 fans with 15 games remaining. The draw surpassed a previous record of 240,055 fans in 2017 in the Netherlands.

Through its first 16 games, this year’s tournament averaged roughly 15,505 fans per contest.

Better Than Expected

This year’s competition — hosted by England for the first time since 2005 — has returned after a one-year pandemic-related delay. In May, the 16-team tournament was projected [[link removed]] to generate $65.6 million in revenue for its nine host cities, according to a study by Ernst & Young.

The estimated revenue was nearly four times the revenue generated by 2017’s competition.

Apple Hits $83B in Revenue, Eyes NFL Rights [[link removed]]

Shutterstock

Apple notched a record June quarter as it looks to make Apple TV+ an essential property for sports fans.

The $2.6 trillion market cap company brought in $83 billion in fiscal third quarter revenue, up 1.9% year-over-year. The growth was driven by a 10.8% rise to $19.6 billion in the company’s services sector, which includes Apple TV+, Apple Arcade, and Apple Fitness+.

CEO Tim Cook touted Apple’s rights deal for Friday Night Baseball in a call following the earnings release, saying it’s “already delighting baseball fans.” Apple has sought to integrate innovations such as predictive stats into its MLB broadcasts.In June, Apple inked a 10-year, $2.5 billion streaming deal with MLS, “giving global soccer fans a whole new way of enjoying their favorite sport,” per Cook.The MLS deal, which starts next year, avoids any blackouts or restrictions.

The company’s stock rose around 3.2% after market.

Big-Ticket Item

After taking a back seat on sports rights for years, Apple has been moving quickly to carve out its space in sports media.

The biggest domino will fall in the coming months: The NFL is taking bids for NFL Sunday Ticket, which it intends to sell to a streaming service. Google and Amazon are reportedly jockeying with Apple for the out-of-market game package.

A report from April said [[link removed]] that Apple may already have a deal in place for Sunday Ticket that could also see the company take a 49% stake in NFL Media.

SPONSORED BY DIGISIGN

The Future of Fan-Interactive Marketing

The greatest engagement a brand can provide is access to the talent.

DigiSign [[link removed]] has taken the traditional autograph experience and modernized it into an efficient, virtual experience for fans to have with their favorite talent – removing the limitations of in-person logistics.

DigiSign allows brands to reach more fans, drive more revenue, and simultaneously achieve ROI goals, all within a foolproof execution – leveraging cutting edge technology and creating the optimal addition to any marketing toolkit.

This reimagined autograph experience creates a monetized opportunity [[link removed]] for brands while also opening up the scope of reach and impressions.

Up your game and join the new autograph experience with DigiSign. Request a demo [[link removed]] now.

Conversation Starters The New York Yankees are planning [[link removed]] a direct-to-consumer streaming service for YES Network, according to president Randy Levine. On Thursday, the Toronto Blue Jays announced [[link removed]] a $300 million, privately funded renovation project for the Rogers Centre aimed at modernizing the fan experience and enhancing player facilities. WNBA commissioner Cathy Engelbert spoke to [[link removed]] Front Office Sports about the Commissioner’s Cup early impact and her plan to continue building the WNBA into a premier sports entertainment platform. Next up on The C-Suite, Front Office Sports’ Chief Content Officer Lisa Granatstein sits down with Tim Ellis, EVP and CMO of the National Football League, to discuss the NFL’s growth strategy. Tune in [[link removed]] this Tuesday at 1 p.m. ET for a behind-the-scenes look.*

*Sponsored Content

Question Of The Day

Have you played the lottery in the last year?

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

Thursday’s Answer

40% of respondents play video games.

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]]

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

Copyright © 2022 Front Office Sports. All rights reserved.

80 Pine Street Suite 3202 New York, NY 10005

Advertise [[link removed]] / Update your preferences [link removed] / Unsubscribe [link removed]