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

The beverage company has made a $550 million investment 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 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 Rockstar as the fourth-most popular energy drink in a U.S market, worth reportedly $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 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 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 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. 

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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 $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 Barcelona to “deliver new long-term revenue streams.” 

The pact with Socios.com follows Barcelona’s agreement 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 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 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.