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 52% year-over-year to $565 million, continuing a trend from H2 2021. 

The U.S. bicycle market was estimated 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 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 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 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 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 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 with Manchester United and a five-year, reportedly $391 million deal with Arsenal.

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 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 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 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 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 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.