Peloton’s issues have reached the accounting department.

The company is delaying its annual 10-K filing with the Securities and Exchange Commission as it irons out details related to its ongoing restructuring effort.

• The comprehensive annual filing, which typically contains details not included in a company’s annual report, is required by the SEC within 60 days of the end of a fiscal year.
• Peloton, which ended its fourth quarter on June 30, filed a form with the SEC on Monday explaining that its filing will be late.
• Peloton cited its “recent announcement to exit its last-mile warehouses” and the need to assess its financial reporting related to that move.
• Accounting firm Ernst & Young also needs to complete audits regarding that change.

Peloton’s stock dropped 8.4% on Tuesday and has fallen more than 22% since its fourth-quarter earnings release last week. The beleaguered connected fitness company has lost over 90% of its value in the last 12 months.

Everyday Struggle

Peloton is laying off staff and instituting cost-cutting measures following a Q4 in which its revenue fell 28% year-over-year to $678.7 million.

Since February, Peloton has announced 3,584 job cuts, store closures, and a redesign that will allow customers to assemble its bikes on their own.

Fanatics is expanding its retail presence in sports — via the Olympic Games.

The digital sports platform has entered a merchandise licensing and retail agreement with LA28, the 2028 Summer Games’ organizing committee, and Team USA. Financial terms of the deal weren’t disclosed.

• The deal gives Fanatics the right to operate in-venue retail locations during and around the Games. It will also outfit LA28 volunteers during the Games.
• Fanatics previously handled online merchandise for Team USA.

Fanatics, which hit a $27 billion valuation earlier this year, joins Nike and Ralph Lauren Corp. as Team USA apparel partners. Nike, whose deal could reportedly be worth as much as $200 million, provides on-field gear, and Ralph Lauren outfits athletes for ceremonies.

Last October, Fanatics and the International Olympic Committee announced plans to build the first-ever permanent e-commerce platform for the Olympics Games up to 2028.

Deal After Deal

Earlier this week, Fanatics signed a 10-year deal with MLB’s Baltimore Orioles to oversee the team’s retail locations at Oriole Park, marking Fanatics’ fifth MLB team with full in-venue services. The platform will also open a new East Coast distribution center in Maryland.

This year alone, Fanatics has entered a long-term, exclusive deal with Nike to manufacture college sports apparel, acquired Topps trading cards for $500 million, and negotiated NCAA sports licensing agreements to build a network of more than 100 universities.

Fanatics claims it serves “over 900 leading sports properties.”

Sony is tapping into the fastest-growing gaming category: mobile games. The Tokyo-based conglomerates plans to launch a PlayStation mobile gaming unit.

Mobile games should allow Sony to expand its reach after its Game & Network Services segment reported a 2% decline in sales in fiscal Q1. Sony is also facing a $5.9 billion class-action lawsuit over allegations of overcharging customers for games and in-game purchases. 

• The PlayStation Studios Mobile Division will operate outside of Sony’s console business.
• Nearly two years after PlayStation 5 hit the market, Sony still can’t meet demand for the console due to ongoing supply chain issues.

On Monday, Sony announced the acquisition of mobile gaming developer Savage Game Studios, which is currently developing an unannounced AAA mobile title.

The company said it would allocate $300 million toward improving its video game business on an earnings call in May. It acquired video game giant Bungie for $3.6 billion in January.

PC Strategy 

There’s a lot of money in PC gaming, too. In July, Sony launched Inzone, a PC gaming hardware brand that sells gaming headsets and monitors.

The company reported $80 million in PC net sales in FY2021 but projects it will pocket $300 million from its PC gaming business in the coming fiscal year.

The Oakland A’s appeared to have dodged another obstacle to building a waterfront ballpark.

A superior court has rejected challenges to the environmental impact report that the team released in December 2021 and the city council certified in March. 

The Union Pacific Railroad Company and other marine, port, and transportation interests challenged the city’s certification of the report in a trio of lawsuits the following month.

• The impact report was required by the California Environmental Quality Act for a project of this size. 
• The A’s have proposed a new waterfront ballpark, as well as 3,000 units of housing, 270,000 square feet of retail space, parks, restaurants, and a 400-room hotel as part of a $12 billion project.

The materials submitted by the group challenging the report “do not identify any meaningful changes” and “merely support the conclusions of the EIR,” according to the court’s ruling.

Vegas Awaits

The A’s are simultaneously pursuing the Oakland development and a move to Las Vegas. The team is largely in agreement with the city of Oakland on a new deal, but the city needs to come up with funds for infrastructure improvements to the area surrounding the proposed development.

A $279.5 million appropriation in California’s budget covers much of those funds, but the project could hinge on a $113 million grant from the U.S. Department of Transportation’s Mega program, which supports large projects.