August 5, 2022

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Have you checked out Front Office Sports’ podcast The Leadoff? In today’s edition, the Big Ten wants $1.5 billion annually for media rights, South America submits a four-country bid for the 2030 World Cup, Paramount+ gets a boost from the UEFA Champions League, and Bally’s reports mixed results in Q2. Click here to listen [[link removed]]. 🎧

Formula 1, Atlanta Braves Fuel Liberty Media’s Q2 [[link removed]]

John David Mercer-USA TODAY Sports

Liberty Media reported its second-quarter financial results on Friday, recording revenue increases across Formula 1, Braves Group, and Sirius XM.

Revenue for F1 increased [[link removed]] 49% year-over-year to $744 million. The division announced a number of deal extensions and renewals during the quarter, which held seven races.

F1 announced the extension of the Australian Grand Prix through 2035.It renewed its exclusive broadcasting deal with Bandeirantes in Brazil through 2025.F1 renewed its Netflix deal for the fifth and sixth seasons of “Drive to Survive.”Liberty Media agreed [[link removed]] to purchase 39 acres of land for $240 million for its new Las Vegas Grand Prix, starting in 2023.

F1 states that the first half of the 2022 season has seen record attendance in both grandstands and the Paddock Club. The division also has a goal to hit net-zero carbon by 2030.

Braves’ Book

Liberty Media’s Braves Group division, which includes the Atlanta Braves, reported a 20% year-over-year increase in revenue to $260 million and a 16% increase in operating income to $37 million.

Baseball revenue — comprising ballpark operations, local broadcasting rights, and MLB revenue streams — jumped 21% to $247 million, and development revenue increased 8% to $13 million. At the end of the quarter, the Braves’ attendance was up 23% compared to the pre-pandemic 2019 season, and the team had 24 game sellouts as of the All-Star break.

Both F1 and the Atlanta Braves were affected by pandemic-related capacity limitations in 2021.

Evergrande to Collect $818M Refund after Canceled Stadium Deal [[link removed]]

Evergrande Guangzhou FC

Real estate developer China Evergrande Group is set to receive $817.8 million after canceling a contract to build a new stadium for China’s most successful soccer club.

Evergrande initially struck a deal in 2010 to purchase [[link removed]] Guangzhou FC — formally known as Guangzhou Evergrande Taobao FC — for $15.5 million.

Ten years later, Evergrande signed a contract to acquire [[link removed]] land-use rights for a new stadium in the city of Guangzhou for $1 billion, which included plans to have a seating capacity [[link removed]] of 100,000.

Evergrande had already begun construction on the now-canceled $1.8 billion project.It expects to lose roughly $186 million for the total book value of the property.A government body had taken over control over the stadium in 2021.Rights will go back to the city’s Municipal Planning and Natural Resources Bureau.

The cancellation of the deal comes amid financial woes for Evergrande, which is over $300 billion in debt [[link removed]] — more than any other company in the world, according to Markets Insider.

Approximately $20 billion of the developer’s debt is from investors [[link removed]] outside China.

Also Struggling

Guangzhou FC has also had financial struggles of its own.

Last year, the club listed all its players on the transfer market in an attempt to raise fresh capital. Evergrande had also considered selling a controlling stake in Guangzhou FC.

The club reportedly has lost between $155 million to $310 million per year as of September 2021.

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, just announced 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]].

DraftKings Reports $466M Quarter, Raises Guidance [[link removed]]

DraftKings

DraftKings raised its full-year revenue guidance Friday after the sportsbook and fantasy sports giant exceeded expectations in its latest earnings report.

The Boston-based company generated [[link removed]] $466 million in revenue in Q2 2022 — a 57% increase year-over-year — surpassing Wall Street estimates [[link removed]] of $438 million in revenue.

DraftKings operates mobile betting in 17 states — roughly 36% of the U.S. population.Its sportsbook’s monthly customers hit 1.5 million, up 30% compared to Q2 2021.The company expects full-year revenue to range between $2.08 billion and $2.18 billion.Its previous guidance was between $2.05 billion and $2.17 billion for FY2022.

In May, DraftKings closed [[link removed]] its acquisition of Golden Nugget Online for roughly $450 million, a sharp decline from the $1.56 billion all-stock deal [[link removed]] expected in August 2021.

DraftKings also benefited from the launch of its sportsbook and iGaming products in Ontario in Q2 2022, which helped the company increase its guidance by more than $30 million.

Coming Soon

DraftKings has the opportunity to gain market access in Maryland, Ohio, Kansas, and Puerto Rico — all of which have legalized mobile sports betting.

Securing licenses in those four jurisdictions would provide DraftKings with access to an additional 8% of the U.S. population, bringing the company’s total reach to 44% of the country.

DraftKings could also gain market access in Massachusetts after the state’s legislature recently passed [[link removed]] a bill — pending executive action — to legalize retail and mobile sports betting.

Conversation Starters Pat McAfee announced on his show that he’ll be hosting [[link removed]] six simulcasts for ESPN college football games this season. On Tuesday, MLB had more than 11.5 million article views [[link removed]] on its website and apps — the highest single-day traffic in the 22-year history of its digital platforms. ESPN has announced [[link removed]] it is beginning production on a documentary about Basketball Hall of Famer Bill Walton as part of its “30 for 30” series.

FRONT OFFICE SPORTS LEARNING

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Each course includes video lessons followed by a brief quiz and provides a deep understanding from top brands and experts in the field across various subjects. Upon completion, you’ll earn a digitally verified badge to share on social media.

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Enroll now [[link removed]].

Market Movers

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

FOX [[link removed]]

Fox Corporation

[[link removed]]

$31.00

[[link removed]]

+0.49%

[[link removed]] GCO [[link removed]]

Genesco Inc.

[[link removed]]

$58.86

[[link removed]]

+0.74%

[[link removed]] DIS [[link removed]]

Walt Disney Co (The)

[[link removed]]

$106.73

[[link removed]]

-0.25%

[[link removed]] LYV [[link removed]]

Live Nation Entertainment Inc

[[link removed]]

$96.90

[[link removed]]

-0.72%

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

Las Vegas Sands Corp

[[link removed]]

$38.35

[[link removed]]

-0.85%

[[link removed]] (Note: All as of market close on 8/5/22) What to Watch

​​The Los Angeles Sparks (12-19) face the Atlanta Dream (13-18) on Friday night at the Gateway Center.

How to Watch: 7:30 p.m. ET on CBS Sports Network

Betting Odds: Dream -5.5 || ML -215 || O/U 157.5

Pick: Expect the Sparks to get back on track after five consecutive losses. Take L.A. to cover.

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

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