August 9, 2022

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The PGA Tour is upping the ante when it comes to prize money in an effort to compete with LIV. The latest to benefit: Scottie Scheffler, who took home a cool $4 million bonus [[link removed]] for topping the 2021-22 FedEx Cup regular-season standings. Next season, the Tour plans to award a total of $428.6 million.

Life Time Leans On Pickleball in Post-Pandemic Push [[link removed]]

Life Time

Life Time Inc. opened its first pickleball-only destination in February, but the venue is just a small part of a growth strategy projected to bring the company $1.88 billion in revenue this year.

The health club operator, known for its country club culture, is committed [[link removed]] to becoming the largest indoor pickleball provider in North America. Life Time plans [[link removed]] to have 600 pickleball courts by 2023 — more than doubling the current 250.

“It’s my belief that pickleball will be the largest participatory sport in the U.S. eventually,” CEO Bahram Akradi told [[link removed]] Fortune.

An estimated 4.8 million people played pickleball in 2021, up 15% from 2020.The sport was named [[link removed]] America’s fastest-growing for the second year in a row.

Life Time, which has nearly 160 locations, offers traditional gyms, basketball courts, and full-size pools. Other gyms like Equinox, Akradi said, are “competing with 25% to 30% of the breadth of what we offer.”

More Plans

Pickleball isn’t Life Time’s only plan for growth after the pandemic caused its 2020 revenue to fall to $948 million — roughly half of what it reported in 2019.

Life Time, which also produces events like the New York City Triathlon and the Miami Marathon, is working on building conjoined luxury clubs and coworking spaces. It currently has nine locations and four more on the way.

In 2021, revenue bounced back to $1.32 billion. The company reports its second-quarter financial results on Wednesday.

Gaming Industry Fails to Level Up to Start Fiscal Year [[link removed]]

FOS, rights-free image

The video game industry took a step back in the first half of this financial year following a surge of interest and spending at the height of the pandemic.

Lackluster earnings by some of the largest companies in tech come in the context of issues plaguing the industry, including the ongoing semiconductor shortage. The tech industry has also been hampered by supply chain disruptions and the return of outdoor recreational activity.

U.S. consumers spent [[link removed]] $12.4 billion on games in Q2 2022, a 13% dip year-over-year.Microsoft saw gaming revenue fall [[link removed]] by $259 million in fiscal Q4 2022.Sony’s Game & Network Services segment reported [[link removed]] a 2% decline in sales in fiscal Q1.

Mobile games, which have benefited from their availability, also took a hit in the first half of 2022. The mobile game market reached [[link removed]] $11.4 billion in H1 FY2022, a 9.6% drop year-over-year.

Still Drawing Interest

Mobile games have still piqued the interest of some of the largest companies in private equity, social media, and tech.

Earlier this year, Meta invested [[link removed]] $40 million in Tokyo-based mobile gaming company Playco, while social media giant TikTok has begun pilot testing [[link removed]] games for its app in collaboration with some of the most innovative developers in mobile gaming.

Last month, private equity firm Joffre Capital announced plans [[link removed]] to raise capital to fund a potential bid to acquire full control of digital entertainment and mobile gaming company Playtika — which has a market value of $5.3 billion, according to Bloomberg.

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Jake Paul Raises $50M for Sports Micro-Betting Startup [[link removed]]

Kim Klement-USA TODAY Sports

Jake Paul is leveraging his notoriety to break into sports betting.

The influencer and boxer helped raise [[link removed]] a $50 million Series A funding round for his new sports betting and media company, Betr. The company will target young sports fans with a focus on micro-betting — bets placed on an isolated event within a game or match.

“Micro-betting is the TikTok-ification of sports betting, and I am excited to bring it to the masses through Betr,” said Paul.

The funding round is being led by Florida Funders, Aliya Capital Partners, and Fuel Venture Capital.The round also received investment from retired NFL stars Richard Sherman and Dez Bryant, co-owners of the San Francisco 49ers, Boston Celtics, and Miami Marlins, Simplebet, Magic City Casino, and Stronach Group. Betr’s CEO Joey Levy, co-founder of Simplebet, will helm the betting side, while Paul will run the company’s media division. Last year, Paul’s Anti Fund and former UFC executive Nakisa Bidarian led [[link removed]] a $30 million round in Simplebet, which also focuses on micro-betting.

Paul, 25, said he’s been paid millions to promote sportsbooks.

“They need the influencers,” he said. “Now it’s our turn to take over from the dinosaurs.”

Big-Money Boxing

Paul earned [[link removed]] $45 million over 12 months for his 2021 boxing matches and other ventures, per Forbes.

He told Front Office Sports that he actually earned “about $10 million more than that,” adding, “a lot of times I get paid for sponsorships in Ethereum, so it fluctuates.”

Original Copy of Bobby Bonilla Contract Sells for $180K [[link removed]]

RVR Photos-USA TODAY Sports

Bobby Bonilla’s famous contract is the gift that keeps on giving. Now, it’s a collectors item.

On Saturday night, an original copy of Bonilla’s long-term pact with the New York Mets sold [[link removed]] at a Goldin auction for $180,000 to an anonymous buyer.

The winning bid includes the right to chat with Bonilla and his agent Dennis Gilbert on Zoom calls, a game-used Bonilla bat, a one-of-one NFT, and a day with Bonilla at Citi Field in 2023.

The contract — the copy of which belonged to Gilbert, who brokered the deal — is one of the most unique in baseball history.

In 2000, the Mets eschewed paying $5.9 million to the player in favor of paying him 25 installments of $1.2 million on July 1 every year.Bonilla has received 12 of the 25 payments, which will total $29.8 million in 2035 — when he’s 72.

“It is obvious that certain baseball fans had a true appreciation for the historic nature of the contract,” said Goldin founder Ken Goldin.

Collectibles on the Rise

The collectibles market has seen an explosion of interest — and cash — in recent years.

Goldin told [[link removed]] Front Office Sports in January that his platform hosted $27 million in transactions in 2019, $100 million in 2020, and $330 million in 2021. He projects $500 million this year.

He chalks it up to a new generation of investors looking for alternative opportunities to make money — and have fun while doing it.

IN PARTNERSHIP WITH KAULIG RACING

Mentality for the NASCAR Cup Series

Entering its first full-time season in the NASCAR Cup Series, Kaulig Racing [[link removed]] has established itself for success.

With their core values and culture intact – having fun and being competitive – the full team and drivers continue to stay on track by working hard every day.

In the third episode [[link removed]] of our series, Behind the Wheel With Matt Kaulig, our Editor in Chief Ernest Baker chats with Matt Kaulig about their winning mentality, how ‘having fun’ has inspired the team and the preparation for their first full-time season in the NASCAR Cup Series.

Watch now [[link removed]].

Conversation Starters About 18,100 fans packed into Climate Pledge Arena in Seattle to celebrate Sue Bird’s final regular-season home game on Sunday, the largest [[link removed]] crowd ever for the Storm — or any team in the venue. Former Minnesota Vikings quarterback Christian Ponder is all-in on helping athletes recognize business opportunities after their playing days are over. Check out the new episode of our My Other Passion podcast on Apple [[link removed]], Spotify [[link removed]], or YouTube [[link removed]] to hear Ponder and FOS editor in chief Ernest Baker talk business and behind-the-scenes NFL stories. From the first pitch to the soccer pitch, Atmosphere Sports is bringing sports back to the center with scores, highlights, and more. Learn more [[link removed]].*

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Today's Action

MLB

07:10 PM

Braves (-145) at Red Sox (+125)

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MLB

08:10 PM

Rangers (+160) at Astros (-190)

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MLB

09:40 PM

Giants (+155) at Padres (-180)

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*All times are EST unless otherwise noted.

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Question Of The Day

Would you consider purchasing safety and security software for your vehicle?

Yes [[link removed]] No [[link removed]] I already have it [[link removed]]

Monday’s Answer

31% of respondents collect baseball cards.

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Written by Abigail Gentrup [[link removed]], Justin Byers [[link removed]], Owen Poindexter [[link removed]], Doug Greenberg [[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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