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 League
• UEFA Champions League
• Olympics
• Grand Slam tennis tournaments
• Tour 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 is pairing with the NFL to launch the brand’s first caffeinated energy drink.

Dubbed “Fast Twitch,” the drink marks 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 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 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.

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 — 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 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 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.