September 1, 2022

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Today’s edition of The Leadoff is a big one: The Women’s Euro final smashes records, the Big 12 is starting media rights negotiations, NetEase makes a big acquisition, and SeatGeek raises $238 million. Click here to listen [[link removed]].

Warner Bros. Discovery and BT Sport Close Joint Venture Deal [[link removed]]

BT

A new European sports giant has formed.

On Thursday, Warner Bros. Discovery and BT Sport closed a deal to create a sports media joint venture in the U.K. and Ireland. The 50-50 venture will combine the two companies’ sports rights to create a major new offering for both countries.

The venture combines BT Sport with Eurosport U.K., which will retain their separate brands for now, but have plans to combine under one name. They collectively hold rights to:

English Premier LeagueUEFA Champions LeagueOlympicsGrand Slam tennis tournamentsTour de France and other cycling events

Under the deal, BT Group will receive $107.3 million over the next three years, plus up to $623 million based on the joint venture’s performance. Warner Bros. Discovery will then have the option to buy out BT.

Cuts Coming

Warner Bros. Discovery, which formed in April following a $43 billion merger in which AT&T spun off WarnerMedia, is looking to trim $3 billion in expenses under CEO David Zaslav.

The media giant has had a rocky start, losing around 46% of its value since the merger closed. It currently has a market capitalization of $32 billion.

The company reported $9.8 billion in revenue and a $3.4 billion loss in the second quarter, its first fiscal period as a combined entity.

Gatorade Teams With NFL for Caffeinated Energy Drink [[link removed]]

Matthew Emmons-USA TODAY Sports

Gatorade is pairing with the NFL to launch the brand’s first caffeinated energy drink.

Dubbed “Fast Twitch,” the drink marks [[link removed]] the first time the league has worked with its longtime corporate sponsor to develop an athletic energy beverage.

Fast Twitch is scheduled to hit store shelves in February 2023, but under an exclusive deal with the NFL, players can drink it on the sidelines during the 2022 season.

PepsiCo-owned Gatorade is late to the caffeinated market, but Fast Twitch packs a punch.

A single bottle will contain nearly as much caffeine as two 12-ounce cans of Red Bull, according to CNBC. It has no sugar or carbonation like many existing energy drinks.

Anuj Bhasin, vice president of marketing and general manager for Gatorade Brands, said [[link removed]] that there hasn’t been an “athletic energy solution” that athletes can trust until now.

Energetic Acquisitions

Fast Twitch might be new, but PepsiCo is no stranger to energy drinks.

In August, the conglomerate announced [[link removed]] a $550 million investment in exercise-focused energy drink maker Celsius Holdings. In 2020, it bought Rockstar for $3.85 billion. PepsiCo also has Mountain Dew’s suite of energy products in its portfolio.

SPONSORED BY SALESFORCE

Join Us for a Conversation with Pro Teams

In today’s sports world, the needs and wants of consumers are constantly evolving. Now more than ever, sports organizations are using sales and marketing automation to stay ahead of the game.

Tune in on September 14 at 1 p.m. ET for our next webinar, How to Improve the Fan Experience at the Stadium and Online [[link removed]], presented by Salesforce Marketing Cloud, to learn how three pro teams from different leagues – the Indiana Pacers (NBA), Texas Rangers (MLB) and the Dallas Cowboys (NFL) – are using Salesforce to engage fans, gain insights, and streamline operations.

Register here [[link removed]] to receive an email reminder the day of the event.

Record Crowd Watches Serena Williams Advance in U.S. Open [[link removed]]

Robert Deutsch-USA TODAY Sports

On Wednesday night, a record crowd watched 23-time Grand Slam winner Serena Williams advance to the third round of her last U.S. Open — and final professional tournament.

An audience of 29,959 filled New York’s USTA Billie Jean King National Tennis Center as the 40-year-old — who entered the highly anticipated match as a sizable underdog [[link removed]] — defeated 26-year-old World No. 2 Anett Kontaveit.

The night-session record is just the latest benchmark Serena’s swan song has set so far.

ESPN’s Monday night coverage [[link removed]] of Williams’ first-round win over Danka Kovinic averaged 2.7 million viewers.The win helped Williams reach just under $95 million in guaranteed career on-court earnings.

On Thursday, Serena and sister Venus Williams will compete in the women’s doubles draw for the first time since 2014. They hold a 14-0 record in Grand Slam doubles finals.

Expensive Media Rights

In 2013, ESPN landed media rights to the U.S. Open with the USTA with an 11-year deal [[link removed]] valued at $770 million.

CBS had previously held rights to the tournament for more than 45 years, but the network reportedly turned down a deal that would’ve cost over $30 million annually.

Conversation Starters On Wednesday, musician Timmy Trumpet played [[link removed]] New York Mets pitcher Edwin Diaz’s bullpen entrance song live from Citi Field. The Denver Broncos have signed [[link removed]] quarterback Russell Wilson to a five-year, $245 million extension with $165 million guaranteed, according to multiple reports. On Friday, the College Football Playoff’s Board of Managers will meet [[link removed]] virtually to potentially vote on expansion.

SPONSORED BY CISCO

Golf’s Drive Toward Inclusivity

For a sport often labeled as overly traditional and slow-to-change, professional golf has seen an incredible amount of upheaval lately – much of it played out very publicly and emotionally via everyone from players to fans to golf media.

But meanwhile, a much quieter and more impactful transformation is playing out at all levels of the game. The push towards a more inclusive, diverse future [[link removed]] for the sport is gaining significant momentum and making real progress.

Through the efforts of celebrities like Steph Curry and J.R. Smith, to the Advocates Professional Golf Association and the support of brands such as Cisco [[link removed]], the culture of golf is changing.

Read more [[link removed]] about the growing diversity in golf.

Market Movers

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

RCI [[link removed]]

Rogers Communications Inc.

[[link removed]]

$42.95

[[link removed]]

+0.07%

[[link removed]] VFC [[link removed]]

VF Corp.

[[link removed]]

$41.41

[[link removed]]

+0.56%

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

Vista Outdoor Inc

[[link removed]]

$28.39

[[link removed]]

+1.07%

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

Live Nation Entertainment Inc

[[link removed]]

$90.23

[[link removed]]

+1.39%

[[link removed]] GOLF [[link removed]]

Acushnet Holdings Corp

[[link removed]]

$48.20

[[link removed]]

+2.14%

[[link removed]] T [[link removed]]

AT&T, Inc.

[[link removed]]

$17.48

[[link removed]]

-0.06%

[[link removed]] (Note: All as of market close on 9/1/22) What to Watch

The Baltimore Orioles (68-61) face the Cleveland Guardians (68-60) on Thursday night at Progressive Field.

How to Watch: 6:10 p.m. ET on ESPN+

Betting Odds: Guardians -1.5 || ML -180 || O/U 7.5

Pick: Expect the Orioles to build on Wednesday’s win. Take Baltimore to cover.

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Written by Owen Poindexter [[link removed]], Michael McCarthy [[link removed]], Justin Byers [[link removed]] Edited by Brian Krikorian [[link removed]]

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