August 25, 2022

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Monday’s match between Manchester United and Liverpool was a streaming blockbuster [[link removed]] for NBC. United’s 2-1 victory aired exclusively on Peacock — and drew an average of 796,000 U.S. viewers, the largest ever Premier League audience for the service.

Peloton’s Q4 Revenue Is Down 28% [[link removed]]

Peloton/ Design: John Regula

Peloton CEO and president Barry McCarthy began his shareholder letter by noting “significant progress” in the company’s comeback despite its losses.

The connected fitness company reported [[link removed]] a 28% year-over-year decline in Q4 revenue to $678.7 million, falling short of estimates [[link removed]] of $718.2 million.

Revenue from the company’s connected fitness products fell 55% year-over-year to $295.6 million. The segment includes contributions from Precor, which Peloton acquired [[link removed]] for $420 million last year.Subscription revenue increased 36% to $383.1 million. Peloton ended the quarter with 2.97 million connected fitness subscriptions.

Peloton’s net loss reached $1.24 billion, more than three times the $313.2 million net loss posted during the same period last year.

Peloton posted an operating loss of $1.2 billion, with $415 million related to restructuring charges. The company announced [[link removed]] 2,800 job cuts and an $800 million restructuring plan in February. Earlier this month, it revealed [[link removed]] another 784 jobs would be eliminated, as well as a reduction in the number of store locations.

Peloton’s Comeback

In Q4, Peloton released its first connected strength offering, the Peloton Guide, and expects to launch [[link removed]] a connected rowing machine by the “holiday season.”

On Wednesday, it announced [[link removed]] Amazon would begin selling select products, marking Peloton’s first time teaming up with another retailer.

Earlier this month, Peloton increased prices for its Bike+ and Tread.

Peloton expects first-quarter revenue between $625 million and $650 million, with subscribers staying flat. The company did not provide a financial outlook for FY2023.

HBCUs Set to Cash In Playing Notre Dame, UCLA [[link removed]]

Alan Poizner / USA TODAY NETWORK

Historically black colleges and universities across the country are starting to cash in on the popularity and expensive media rights deals of college football’s blue-chip programs.

Some of the most storied programs have sought out HBCUs to fill holes in game schedules for upcoming seasons, which has provided lucrative opportunities and brand exposure for HBCUs.

“The revenue we’ll be generating will be huge,” said [[link removed]] North Carolina Central University athletic director Louis Perkins. “I don’t want to say it’s essential for our survival, but it’s very, very important.”

HBCUs, which enter these games as heavy underdogs, are handed big checks via game guarantees.

Tennessee State will earn $1 million to play Notre Dame on Sept. 2, 2023, in South Bend.UCLA will pay Alabama State $590,000 for a game on Sept. 10, 2022, at the Rose Bowl. The Bruins will also pay NC Central $700,000 for a game on Sept. 16, 2023, at the Rose Bowl. More Opportunity

HBCUs have recently gained more notoriety in college football as NFL legends Eddie George and Deion Sanders have joined the coaching ranks at Tennessee State and Jackson State, respectively — and big brands and companies are also taking notice.

Earlier this month, CBS announced a deal [[link removed]] with Allen Media Group’s HBCU Go — the largest broadcaster for sports at HBCUs — while Jordan Brand secured [[link removed]] a 20-year pact with Howard University, one of the country’s most prestigious HBCUs.

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Hibbett Underwhelms in Second Quarter [[link removed]]

Hibbett, Inc.

Hibbett, Inc. posted unfavorable results in the company’s latest earnings report.

The athletic apparel retailer generated [[link removed]] $392.8 million in net sales in fiscal Q2 2023 — a 6.3% decline from $419.3 million for the same period last year. The lackluster sales were attributed to inflationary pressures and supply chain constraints due to increased freight costs.

Comparable sales fell 9.2% during the quarter compared to Q2 2022.In Q2 2023, brick-and-mortar comparable sales declined 11.9% year-over-year.E-commerce sales — which made up 15% of total sales — increased 8.3% in fiscal Q2.

Hibbett, which projects better results in fiscal Q3 due to back-to-school sales, failed to meet Wall Street earnings estimates of $2.26 in Q2, with a profit of $1.86 per share.

The company reported a net income of $24.7 million during the quarter, down from a net income of $46.7 million in Q2 2022 — when shares earned $2.86 apiece.

Positive Outlook

Hibbett improved its inventory position during the second quarter in anticipation of back-to- school sales. The Alabama-based company reported an inventory of $366.2 million as of July 30, up 68.9% compared to Q2 2021 and a 66.5% increase from the first quarter of FY2023.

Hibbett — which operates 1,117 Hibbett and City Gear stores across 36 states — has raised its full-year outlook despite the underwhelming Q2. The company expects net sales to increase in “the low-single-digit range” compared to FY2022.

Conversation Starters In The Leadoff, Amazon embarks on a new era with its first exclusive broadcast of an NFL game, Ted Leonsis explores a bid for the Washington Nationals, Amazon also secures a deal with Peloton, and the NFL remains king of TV ratings with a strong start to the preseason. Click here to listen [[link removed]]. Ricky Williams won the Heisman Trophy in college and earned a rushing title in the NFL. When he needs motivation, he’ll throw on old highlights to remind himself that he’s capable of greatness — but for the most part, he’s looking forward. In a new episode of our My Other Passion podcast, Williams talks about making peace with his controversial exit from the NFL, the realities of running his Highsman business, and much more. Check it out on Apple [[link removed]], Spotify [[link removed]], or YouTube [[link removed]]! Horse racing channel TVG Network will be rebranded [[link removed]] as FanDuel TV, and former NFL Network host Kay Adams will anchor a new morning show for the betting company.

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In the fourth episode [[link removed]] of our series, Behind the Wheel With Matt Kaulig, our Editor in Chief Ernest Baker chats with Matt about building successful partnerships with innovative strategies and the unique opportunity to connect with fans behind the track through the gear garage.

Watch now [[link removed]].

Market Movers

U.S. stocks experienced gains across all three major indexes on Thursday. Here’s a look at how sports-related stocks performed:

WWE [[link removed]]

World Wrestling Entertainment, Inc.

[[link removed]]

$69.68

[[link removed]]

+0.04%

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

Live Nation Entertainment Inc

[[link removed]]

$95.31

[[link removed]]

+0.77%

[[link removed]] TTWO [[link removed]]

Take-Two Interactive Software, Inc.

[[link removed]]

$125.42

[[link removed]]

+1.33%

[[link removed]] VSTO [[link removed]]

Vista Outdoor Inc

[[link removed]]

$30.60

[[link removed]]

+1.73%

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

Genesco Inc.

[[link removed]]

$64.14

[[link removed]]

+3.05%

[[link removed]] MTN [[link removed]]

Vail Resorts Inc.

[[link removed]]

$238.34

[[link removed]]

-0.03%

[[link removed]] (Note: All as of market close on 8/25/22) What to Watch

Pearland, Texas (3-1) takes on Nolensville, Tennessee (3-1) in the Little League World Series.

The game marks a matchup between the Southeast Region and the Southwest Region in the tournament’s elimination bracket.

How to Watch: 7 p.m. ET on ESPN

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

Front Office Sports Pro [[link removed]] - The most promising opportunities where sports meets industry

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