August 1, 2022

Read in Browser [[link removed]]

POWERED BY

Have you checked out Front Office Sports’ podcast The Leadoff? In today’s edition, MLB TV ratings hold steady against cord-cutting, Formula 1 is developing carbon neutral fuel, sports revenue helps Amazon to a big quarter, and speculation over Madison Square Garden’s future persists. Click here to listen [[link removed]]. 🎧

PepsiCo Invests $550M In Exercise-Focused Celsius [[link removed]]

Celsius

PepsiCo is taking a bigger stake in the energy drink space.

The beverage company has made a $550 million investment [[link removed]] in Celsius Holdings, an energy drink maker that recorded a first-quarter domestic revenue increase of 217% to $123.5 million.

The long-term distribution deal gives Pepsi a minority stake of about 8.5%. The company will nominate a director to serve on Celsius’ board.

Celsius adds to PepsiCo’s energy drink portfolio, which already includes Rockstar as well as Mountain Dew drinks Amp, Game Fuel, and Kickstart.

Celsius targets young, active consumers who exercise. The brand has a line of energy drinks, performance energy drinks, recovery fuel, and other beverages.The brand claims its drinks have thermogenic properties that help accelerate metabolism and burn calories, and don’t use artificial preservatives or sugar.

In Pepsi’s earnings call earlier this month, CEO Ramon Laguarta said [[link removed]] that “in beverages, non-sugar is growing three times the speed of full sugar.”

Celsius Rising

Celsius isn’t the first energy drink company Pepsi has invested in recently. The company bought Rockstar for $3.85 billion in 2020. This year, Celsius took over [[link removed]] Rockstar as the fourth-most popular energy drink in a U.S market, worth reportedly [[link removed]] $16 billion.

Pepsi entered an exclusive distribution agreement with Bang Energy in 2020, but the relationship ended in June following a legal dispute between the companies.

Browns’ Deshaun Watson to Miss 6 Games if Ban Holds [[link removed]]

Ken Blaze-USA TODAY Sports

Browns quarterback Deshaun Watson was suspended six games on Monday for violating the NFL’s personal conduct policy.

The relatively short length of the ban, handed down by retired federal judge Sue L. Robinson over dozens of allegations of sexual misconduct, sparked [[link removed]] outrage — but NFL commissioner Roger Goodell could tack on more games.

“Pursuant to the collective bargaining agreement, the NFL or the NFLPA on behalf of Watson may appeal the decision within three days,” the NFL noted in a statement. The league is reviewing Judge Robinson’s imposition and “will make a determination on next steps.”

The NFLPA said [[link removed]] it will “stand” by Robinson’s decision.

Watson faced 25 lawsuits over his conduct during massage sessions, complaints that began to hit a Texas court in March 2021. One case was dropped, and Watson has since settled 23 of the 24 civil suits.

Watson Pocketbook Barely Touched

After the Browns acquired Watson in March via a trade with the Houston Texans, Watson signed a fully guaranteed five-year, $230 million contract.

The deal included a nearly $45 million signing bonus.The extension was set up with a base salary for the 2022 season of about $1 million, meaning he will be out $345,000 if the six-game ban holds.

Watson, who sat out the entire 2021 season with the Texans, was not charged by police, and two grand juries convened chose not to indict him. Watson has denied any wrongdoing.

Editor’s note: For more on this story, click here [[link removed]].

SPONSORED BY MAJOR LEAGUE SOCCER

The League’s New Co-Brand Credit Card

Major League Soccer [[link removed]] and Avant [[link removed]], a credit-first neobank that gives consumers access to the financial solutions they deserve, announced today a multi-year partnership designating Avant as the League’s Official Credit Card Partner!

This partnership will result in the creation of the fan affinity credit card.

Cardholders will have access to benefits including ticket pre-sales, express entry to select major events, and merchandise. Additionally, cardholders will earn rewards points on purchases that can be redeemed for cash back, tickets to MLS matches, and merchandise.

To celebrate the new partnership, MLS and Avant will take to the streets of the Twin Cities leading up to the 2022 MLS All-Star Game on Aug. 10, to offer consumers compelling experiences and prizes for fans that participate in contests, including a chance to win a trip to MLS Cup.

Learn more [[link removed]].

Barcelona Sells 25% Stake in Media Arm for $102M [[link removed]]

FC Barcelona

FC Barcelona has struck a deal to sell a 24.5% stake in Barca Studios, the club’s media production arm, to blockchain-based fan engagement company Socios.com for $102 million.

Selling a portion of Barca Studios will help the La Liga club — which reported $1.56 billion in debt in October 2021 — alleviate its financial woes and compete in the player transfer market. In June, Barcelona’s economic VP said the club needs [[link removed]] $535 million to avoid financial devastation.

Socios.com has deals with more than 150 sports organizations, including the NFL.Barcelona and Socios.com will collaborate to build Barca Studios’ digital portfolio.The deal will also allow [[link removed]] Barcelona to “deliver new long-term revenue streams.”

The pact with Socios.com follows Barcelona’s agreement [[link removed]] in June with private equity firm Sixth Street to sell a 10% stake in its TV rights in a deal worth up to $278 million.

Barcelona doubled down in July after securing a deal [[link removed]] with Sixth Street to sell an additional 15% stake in its media rights for reportedly $327.5 million, bringing the firm’s total stake to 25%.

Teamwork

Barcelona’s deal with Socios.com stems from a pact between the club and its delegates.

In June, delegates approved [[link removed]] the cession of up to 25% of income from Barcelona’s TV rights for 25 years, as well as the sale of a minority share of its licensing and merchandising division.

Barcelona had estimated it could earn roughly $631 million for the deals.

Conversation Starters The NCAA Transformation Committee suggested [[link removed]] allowing college athletes to transfer as many times as they wanted without penalty, but Division I officials are reportedly planning to vote against it. Massachusetts’s Sports Betting Conference Committee has reached [[link removed]] an agreement on a bill that would legalize wagering on professional and collegiate sports. Amazon has hired [[link removed]] the sports-comedy team “Dude Perfect” to create an alternate stream of “Thursday Night Football,” according to the Wall Street Journal.

SPONSORED BY LINKEDIN

At the Top of Their Game

Front Office Sports presents The C-Suite, a weekly LinkedIn Live interview series where Chief Content Officer Lisa Granatstein sits down with sports leaders who are driving global business and changing culture.

This week the series continues on Tuesday [[link removed]] with Tim Ellis, EVP and CMO of the National Football League. Get the behind-the-scenes look at the NFL’s growth strategy, from reaching audiences where they’re streaming to expanding the field of play to a global audience.

Visit Front Office Sports’ Upcoming Events [[link removed]] page to attend and be notified when events go live.

Market Movers

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

BYD [[link removed]]

Boyd Gaming Corp.

[[link removed]]

$55.11

[[link removed]]

+0.57%

[[link removed]] LVS [[link removed]]

Las Vegas Sands Corp

[[link removed]]

$37.70

[[link removed]]

+1.05%

[[link removed]] MSGS [[link removed]]

Madison Square Garden Sports Corp

[[link removed]]

$155.13

[[link removed]]

+1.72%

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

World Wrestling Entertainment, Inc.

[[link removed]]

$71.04

[[link removed]]

+1.94%

[[link removed]] UA [[link removed]]

Under Armour Inc

[[link removed]]

$8.35

[[link removed]]

+2.14%

[[link removed]] DKS [[link removed]]

Dicks Sporting Goods, Inc.

[[link removed]]

$95.90

[[link removed]]

+4.63%

[[link removed]] (Note: All as of market close on 8/1/22) What to Watch

The Boston Red Sox (51-52) face the Houston Astros (67-36) on Monday night at Minute Maid Park.

How to Watch: 8 p.m. ET on ESPN

Betting Odds: Astros -1.5 || ML -180 || O/U 7.5

Pick: Expect the Red Sox to keep things close. Take Boston to cover.

Refer Friends, Win Merch

Ready to rep your favorite newsletter? Refer your friends and colleagues to Front Office Sports and you could win FOS merchandise.

It’s easy to spread the word. Copy and paste your unique link below and share it in an email or on your timeline.

Your custom referral link:

[link removed] [[link removed]]

Or use these one-tap sharing methods:

Email [[link removed]] Twitter [[link removed]] Facebook [[link removed]]

Your referral count: 0

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

Written by Abigail Gentrup [[link removed]], A.J. Perez [[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]