August 4, 2022

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Brittney Griner’s cannabis possession trial in Russia has ended, but the WNBA star was convicted and given nine years [[link removed]] in prison — close to the maximum sentence. Now, the 31-year-old could be subject to a prisoner swap at the highest levels of Russian-American diplomacy.

Big Ten Now Expects Even Bigger Media Rights Deal [[link removed]]

Jeff Hanisch-USA TODAY Sports

With the additions of USC and UCLA, the Big Ten now hopes to earn 50% more in media rights fees — at least $1.5 billion annually, sources told Front Office Sports.

If the conference can pull this off, it could become the richest in all of college sports — with a media deal that dwarfs even that of the mighty Southeastern Conference.

The Big Ten told FOS that it “is grateful for the quality and quantity of potential media partners. At this time, it would be inappropriate to speculate during ongoing negotiations.”

Last week, Big Ten commissioner Kevin Warren said publicly that the conference was finalizing negotiations. The Big Ten’s current deal pays around $440 million annually.

Sly Fox

The deal could include a conglomeration of the biggest networks, FOS reported. But there’s growing frustration over the role of Fox Sports in the Big Ten media rights negotiations.

Fox is the conference’s primary TV partner and part-owner of the Big Ten Network. Fox executives are directly involved in the negotiations.

Sports TV executives from the likes of NBC, ESPN, and CBS are uncomfortable submitting financial bids and sharing their information in front of rivals.

“So who do you think is going to get the best game matchups? Fox,” said one source. “Bottom line, Fox is watching out for Fox, not the Big Ten.”

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

Adidas’ Operating Profit Plummets 28%, Faces Legal Battles [[link removed]]

Darren Yamashita-USA TODAY Sports

Adidas reported a 28% decline in second-quarter operating profit to $398.4 million due to suspending its business in Russia, pandemic-related lockdowns in China and Vietnam, and higher supply chain costs.

The company was able to lock in [[link removed]] a 4% increase in currency-neutral revenue. Net income fell [[link removed]] to roughly $368.9 million from around $396.5 million during the same period last year.

On July 26, Adidas cut [[link removed]] its 2022 financial forecast due to a slower recovery in Greater China. It now expects currency-neutral revenues to grow at a rate in the mid-to-high single digits. Previously, it projected growth between 11% to 13%.

A decline in profit isn’t Adidas’ only cause for concern.

The company was recently sued over the authenticity of its NHL jerseys. Adidas is facing a similar lawsuit filed four months ago. Attorneys for the company have reportedly [[link removed]] filed a motion to dismiss. On Wednesday, Kanye West claimed [[link removed]] Adidas made decisions for Yeezy without his approval.

It’s not all bad. Revenue for the company’s football, running, and outdoor divisions all increased by double digits. During the quarter, Adidas released the first drops of its Gucci collaboration and launched both its new Sportswear collection and the next iteration of its Supernova running franchise.

Adidas X LIV Golf?

On Thursday, Adidas CEO Kasper Rorsted told [[link removed]] CNBC that no decision had been made on whether the company would sponsor an LIV Golf team, adding that Adidas wants to “remain a sponsor of the individual.”

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The Evolution of Esports and Crypto

Over the last few years, esports and gaming has grown exponentially. What was once only considered a hobby is now a legitimate, competitive segment of the sports world that is constantly evolving.

The rise of blockchain technology and cryptocurrencies have made a significant impact on the evolution of the esports industry.

In Lesson 3 of Crypto in Sports Essentials [[link removed]], Steve Arhancet, CEO & Owner of Team Liquid, sits down with Team Liquid member and professional gamer, Juan ‘Hungrybox’ DeBiedma, to discuss how the mainstream adoption of cryptocurrencies and NFTs is changing the landscape of the industry and improving the fan experience for all.

Sign up [[link removed]] for the course today.

Acushnet Raises Full-Year Outlook after $658M Quarter [[link removed]]

Titleist

Acushnet — the owner of popular golf brands including Titleist and FootJoy — raised its full-year net sales guidance Thursday following the company’s latest earnings report.

The Massachusetts-based holding company reported [[link removed]] $658.6 million in net sales in Q2 2022, a 5.4% increase compared to the same period last year. Amid supply chain constraints, Acushnet saw its net income reach $66.5 million in Q2, down 18% compared to Q2 2021.

Wall Street analysts projected [[link removed]] $582 million in net sales for Acushnet in Q2 2022.Earnings per share reached 91 cents, compared to an estimated 75 cents.Acushnet reported $1.26 billion in year-to-date net sales, a 4.9% uptick year-over-year.

Following Acushnet’s better-than-expected second quarter, the company raised its full-year financial outlook, with net sales expected to range between $2.2 billion and $2.25 billion in FY2022, up from a previous projection between $2.17 billion and $2.22 billion.

Bread and Butter

Acushnet, which also owns golf brands Vokey Design, Scotty Cameron, and Pinnacle, benefited from top subsidiaries Titleist and FootJoy during the quarter.

FootJoy, a golf apparel brand, reported a 15.8% increase in net sales in Q2 behind an increase in sales volumes, compounded with higher average selling prices across all categories. Driven by new products, Titleist saw its golf club business grow 5.3% compared to Q2 2021.

Conversation Starters In The Leadoff, NBC looks to make the Big Ten into an NFL-like property, a group of LIV golfers sue the PGA Tour, women’s soccer explodes in popularity, and Nintendo profits underwhelm in the company’s latest earnings report. Click here to listen [[link removed]]. Taylor Rooks is joining [[link removed]] Amazon Prime Video as the feature reporter for its “Thursday Night Football” coverage, sources tell Front Office Sports. Retailer Costco now has an entire section [[link removed]] titled “sports events” available on its website, where it offers select professional and college game tickets at discounted prices.

SPONSORED BY NETSUITE

Listen to the New FOS Podcast Now

My Other Passion, presented by Netsuite [[link removed]], brings you conversations with the most influential athletes, celebrities, and executives about what drives them – beyond the sports or businesses they’re famous for.

In our latest episode, Ernest Baker, Editor in Chief of Front Office Sports, sits down with former NFL quarterback Christian Ponder to discuss his experiences in the league, business pursuits after his playing days, and the “unique bond” he shares with other QBs.

Listen now [[link removed]] or watch on YouTube [[link removed]] for future episodes releasing every Wednesday.

If you or someone you know is an athlete, celebrity, or business leader, reach out [[link removed]] to be featured on an upcoming episode.

Market Movers

U.S. stocks were mixed on Thursday. Here’s a look at how sports-related stocks performed:

NLS [[link removed]]

Nautilus Inc

[[link removed]]

$1.99

[[link removed]]

+1.02%

[[link removed]] BC [[link removed]]

Brunswick Corp.

[[link removed]]

$78.17

[[link removed]]

+1.05%

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

Dicks Sporting Goods, Inc.

[[link removed]]

$96.86

[[link removed]]

-0.51%

[[link removed]] FL [[link removed]]

Foot Locker Inc

[[link removed]]

$28.41

[[link removed]]

-1.29%

[[link removed]] RCI [[link removed]]

Rogers Communications Inc.

[[link removed]]

$44.01

[[link removed]]

-1.46%

[[link removed]] CWH [[link removed]]

Camping World Holdings Inc

[[link removed]]

$29.52

[[link removed]]

-1.76%

[[link removed]] (Note: All as of market close on 8/4/22) What to Watch

The NFL is back! Well, preseason football at least. The Jacksonville Jaguars face the Las Vegas Raiders on Thursday night at Tom Benson Hall of Fame Stadium in Canton, Ohio, for the 2022 Pro Football Hall of Fame Game.

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

Betting Odds: Raiders -2.5 || ML -140 || O/U 30.5

Pick: Expect both offenses to start slowly. Take the under for total points.

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Written by Amanda Christovich [[link removed]], Michael McCarthy [[link removed]], Justin Byers [[link removed]], Abigail Gentrup [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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The Leadoff [[link removed]] - Daily business of sports podcast

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