August 5, 2022

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Footwear reseller Zadeh Kicks LLC scammed [[link removed]] customers by overselling sneakers — to the tune of $70 million. How? In 2021, for example, the company took 600,000 orders for the Nike Air Jordan 11 Cool Grey variant — but filled only 6,000. Fortunately, the Department of Justice took notice. 👟

Four Countries Submit Joint 2030 World Cup Bid [[link removed]]

AUF

Four South American countries are looking to bring the World Cup back to its place of origin for its 100th anniversary.

Original host Uruguay is submitting [[link removed]] a joint bid for 2030 with Argentina, Chile, and Paraguay.

If successful, there would be consecutive World Cups in the Americas: The U.S., Mexico, and Canada are hosting the 2026 tournament.Spain and Portugal have also submitted a joint bid. The U.K. and Ireland considered doing the same but instead chose to focus on the 2028 UEFA European Championship.Bulgaria, Romania, Greece, and Serbia explored [[link removed]] a joint bid, but it is unclear whether they will go ahead with it. China has also shown interest.

Qatar is spending [[link removed]] an incredible $220 billion on this year’s World Cup, but much of that sum will support long-term infrastructure. Russia spent $11.6 billion on hosting in 2018, and Brazil $15 billion in 2014.

Risk vs. Reward

A South American joint bid has nostalgia on its side but would face a handful of challenges. Argentina would likely host [[link removed]] the bulk of the tournament, but debt issues could make the requisite infrastructure spending a political challenge.

The 2013 Confederations Cup in Brazil brought protests on government spending priorities.

Should the World Cup take place on its typical schedule of June and July, fans and players may encounter less-than-ideal temperatures in the 30s and 40s Fahrenheit.

UEFA Champions League Sparks Paramount’s Growth [[link removed]]

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Paramount saw big streaming subscriber growth as it looks to bolster its sports portfolio.

In the second quarter, Paramount+ added 4.9 million subscribers to reach 43 million, after removing 1.2 million subscribers in Russia following the country’s invasion of Ukraine. The company reached 64 million subscribers across all its streaming platforms.

CEO Bob Bakish cited the UEFA Champions League among the content that drove acquisition and engagement.

The company also holds rights to:

National Football LeagueSEC College footballNumerous soccer properties including NWSL, the UEFA Europa League, Concacaf, World Cup qualifying matches, and the Premier League in certain territories.

Paramount saw revenue grow 19% year-over-year to $7.8 billion in Q2. Direct-to-consumer revenue leapt 56% to $1.2 billion.

The growth cuts against the broader narrative around streaming services: Netflix lost around 1 million subscribers in Q2, while Peacock’s numbers were flat at 13 million.

Roku Too

Paramount+ will grow [[link removed]] its reach this month after striking a deal with Roku to join the company’s roster of add-on services. Roku, which had 63.1 million active accounts as of July 28, will offer $4.99 per month ad-supported and $9.99 ad-free services.

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NFL Veteran's New Business Venture

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.

Bally’s Generates $552M in Revenue During Quarter [[link removed]]

Jerome Miron-USA TODAY Sports

Bally’s Corporation reported mixed results in the company’s second-quarter earnings report.

The casino, gaming, and entertainment company, which has access to online sports betting licenses in more than 10 states, generated [[link removed]] $552.5 million in revenue for the second quarter ending June 30.

The results were up from the $267.7 million in revenue the company reported in Q2 2021.

Bally’s North America Interactive segment — which covers sports betting, including online sportsbook Bally Bet — reported $18 million in revenue but posted a net loss of $24.8 million.

Net income reached $59.5 million in Q2 2022, compared to $68.9 million in Q2 2021.Adjusted EBITDA hit $141.2 million, up from $82.8 million for the same period last year.Full-year revenue is projected to range between $2.2 billion and $2.3 billion in FY2022.

Bally’s latest earnings report follows previously announced plans to repurchase shares. Earlier this month, the company agreed [[link removed]] to buy back $103 million worth of shares via Dutch auction.

It will repurchase 4.69 million common shares at $22 per share, excluding fees.

Shareholder Offer

In January, investment firm Standard General LP — Bally’s largest shareholder — offered [[link removed]] to buy the company’s remaining shares at $38 apiece, valuing Bally’s at nearly $2.07 billion.

Standard General, which holds a 21% stake in Bally’s, said it would fund the purchase of the company’s remaining shares through sale-and-lease-back and other long-term financing.

In May, Bally’s rejected [[link removed]] Standard General’s takeover offer, saying it was deemed too low.

Sports Fuel FuboTV’s $221.9M Quarter [[link removed]]

fuboTV

FuboTV reported $221.9 million in second-quarter revenue, a significant jump from the $130.9 million reported during the same period last year.

The sports-focused streaming service logged a net loss of $116.3 million — compared to the $94.9 million net loss reported in 2021 — but still saw promising numbers for the quarter.

Revenue for FuboTV’s North American streaming business grew [[link removed]] 65% to $216.1 million. Ad revenue in North America increased 32% year-over-year to $21.7 million.Paid subscribers in North America jumped 41% to 946,735. In the “Rest of World” (France, Spain), FuboTV ended the quarter with 347,000 paid subscribers — a 130% increase — and $5.8 million in total revenue — a 75% increase.

FuboTV’s shareholder letter stated [[link removed]] that the company’s “subscriber count came under pressure primarily due to underperformance of specific sports content during a typically low-growth part of the year.”

During the quarter, FuboTV expanded its Latino offering with the renewal of UnivisionTelevisa’s networks. The renewal coincided with the beginning of the Liga MX soccer season.

New Offerings

On Thursday, FuboTV announced the expected launch of Fubo Sportsbook in two additional markets in the coming weeks, including New Jersey. The company currently has sportsbooks in Arizona and Iowa. FuboTV is also in internal and external discussions regarding the future, as it will no longer pursue wagering independently, and the division is under review.

FuboTV launched a “first-of-its-kind” gaming experience during the quarter, which allows FuboTV subscribers to interact with sports content, earn points, and engage with friends.

FRONT OFFICE SPORTS PRO

The Continued Growth of Blockchain Gaming

Front Office Sports Pro [[link removed]] provides actionable, timely insights on the most promising opportunities where sports meets industry. Each month, members receive three industry reports, access to our private market deals database, industry investor directory, and weekly emails providing insights from the platform.

Our most recent report [[link removed]], the Continued Growth of Blockchain Gaming, explores:

The blockchain gaming industry grew 2,000% in the past year from Q1 2022. The first half of 2022 saw top funds in the NFT and blockchain gaming space raise a cumulative $10.5 billion in the capital. According to the Newzoo report, the Game Industry was estimated to be worth $192.7 billion by the end of 2021.

Be the most-informed member of your team with cutting-edge reports on the most tactical opportunities where sports meets industry. No jargon, no BS, no agenda.

Join today [[link removed]]!

Conversation Starters During a recent interview, John Daly said [[link removed]] he “begged” Greg Norman to let him play for LIV Golf, citing the Saudi-backed venture’s willingness to compensate players for pro-ams as a central reason. Accusers of Cleveland Browns quarterback Deshaun Watson and their attorneys have criticized [[link removed]] the NFL’s investigative and disciplinary process, and NFL commissioner Roger Goodell reportedly [[link removed]] won’t handle Watson’s appeal. In this week’s edition of The C-Suite, a weekly LinkedIn Live interview series, Front Office Sports Chief Content Officer Lisa Granatstein sits down with Tim Ellis, Chief Marketing Officer of the NFL to discuss the league’s growth strategies, fandom, and the future of football. Click here [[link removed]] to watch. Today's Action

MLB

09:40 PM

Rockies (+110) at Diamondbacks (-130)

Bet Now [[link removed]]

MLB

08:05 PM

White Sox (-165) at Rangers (+140)

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MLB

10:10 PM

Padres (+125) at Dodgers (-145)

Bet Now [[link removed]]

*All times are EST unless otherwise noted.

*Odds/lines subject to change. T&Cs apply. See [[link removed]] for details.

Question Of The Day

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Thursday’s Answer

28% of respondents research a potential employer’s sustainability and community efforts when evaluating if they want to work for that company.

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

Written by Owen Poindexter [[link removed]], Justin Byers [[link removed]], Abigail Gentrup [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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