From Front Office Sports <[email protected]>
Subject A Major F1 Linkup Is In Doubt
Date September 2, 2022 11:33 AM
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September 2, 2022

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The best NFL TV announcers attract the best game matchups when the league makes its schedule — and ESPN’s splash for Troy Aikman and Joe Buck is paying off [[link removed]]. The 20-year partnership is set to call Russell Wilson’s return to Seattle, Rams-Packers, Bengals-Bills, and Super Bowls in 2026 and 2030 for the Worldwide Leader and parent company ABC.

Red Bull, Porsche Formula 1 Tie-Up In Doubt [[link removed]]

John David Mercer-USA TODAY Sports

A heavily rumored Formula 1 partnership between Red Bull and Porsche has reportedly run into some engine problems.

Legal documents filed in Morocco suggested that Porsche had plans to purchase half of Red Bull Advanced Technologies, the F1 team’s technological arm. Recent reports suggest that this is far from a done deal.

Red Bull is assessing [[link removed]] its options for 2026 and beyond, and a tie-up with Porsche seems to be only one of several options.

Honda, which currently supplies Red Bull’s engines, could stay involved in F1 into 2026 and beyond when new engine regulations kick in, perhaps as a Red Bull partner. Meanwhile, Red Bull remains invested in its Red Bull Powertrains segment, which supplies power units to its own team and Scuderia AlphaTauri. It currently works alongside Honda, and is on course to take full control in 2026.

“For 2026, nothing is fixed,” said Oracle Red Bull Racing CEO Christian Horner. “Red Bull Powertrains is established. We have more than 300 people recruited. So, that is our path.”

Future shareholdings and voting rights reportedly present an unresolved issue between Red Bull and Porsche.

Fellow Volkswagen subsidiary Audi announced last week that it would join F1 as a power unit constructor in 2026.

The $85 Billion Question

Also complicating negotiations with Porsche is its planned [[link removed]] initial public offering this month, which could value the automaker at $85 billion.

Red Bull founder Dietrich Mateschitz, T Rowe Price Group, Qatar Investment Authority, and LVMH CEO Bernard Arnault have all reportedly expressed interest in buying a stake.

MLB Seeking to Add Local Games to Streaming Service [[link removed]]

Robert Hanashiro-USA TODAY Sports

Major League Baseball is seeking to rearrange its media ecosystem so local fans can take advantage of its streaming service.

Local broadcasts have long been the property of regional sports networks — which means that along with national broadcasts, they’re blacked out on MLB TV.

“I hope at one point to have in-market [streaming] available,” MLB chief revenue officer Noah Garden told Sports Business Journal.While MLB does not release its subscriber numbers, it was estimated [[link removed]] in 2020 to have around 3.5 million subscribers, generating $430 million in revenue.

The league’s ratings have dropped for flagship events this year, with the All-Star Game seeing its lowest viewership on record with 7.5 million average viewers, and the second Field of Dreams Game dropping to 3.1 million average viewers from 5.9 million last year.

League viewership may be flat overall, but 16 of the league’s 30 teams had [[link removed]] the top- or second-highest rated show on primetime cable in their local area as of July.

Sinclair’s Stream

Meanwhile, the league is facing competition from Sinclair, which launched its Bally Sports+ streaming service at $19.99 per month in August.

The service currently offers Detroit Tigers, Kansas City Royals, Miami Marlins, Milwaukee Brewers, and Tampa Bay Rays games, with plans to expand to its 19 other regional networks. The service will also include in-market NHL and NBA games.

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Microsoft’s Activision Blizzard Takeover Faces In-Depth Probe [[link removed]]

Shutterstock

Microsoft’s deal to acquire Activision Blizzard for $68.7 billion is facing a potential in-depth review by the Competition and Markets Authority, a U.K. antitrust watchdog.

The deal — first announced [[link removed]] in January — could receive approval by the CMA if Microsoft offers remedies to concerns [[link removed]] over decreased competition in gaming consoles.

There are also concerns over multi-game subscription services and cloud gaming markets.The CMA has given Microsoft a deadline of Sept. 8 to address its concerns.The pending all-cash deal would make Microsoft the world’s third-largest gaming company by revenue.

In July, Microsoft submitted [[link removed]] “Second Request” documents to the FTC regarding its deal for Activision Blizzard. The government agency can ask the parties to alter the deal, opt not to object, or issue a court order seeking to block it.

Lackluster Earnings

Both Microsoft and Activision Blizzard took a hit in their last earnings reports following a surge of interest and spending at the height of the pandemic. The gaming market has dealt with constraints, including the ongoing semiconductor shortage and supply chain disruptions.

Activision Blizzard reported [[link removed]] $1.64 billion in second-quarter revenue — surpassing Wall Street estimates of $1.59 billion but down from $2.3 billion for the same period last year.

Microsoft generated [[link removed]] $51.9 billion in revenue in fiscal Q4, its slowest revenue growth since 2020. Its gaming revenue fell by $259 million during the quarter, while its Xbox content and services segment reported a 6% decrease in revenue compared to Q4 2021.

BeIN to Air Bundesliga in MENA Region Again [[link removed]]

Bundesliga

After a two-year blackout, the Bundesliga will return to the Middle East and North Africa.

The German Football League announced [[link removed]] a new three-year rights pact with BeIN Sports in the region that will start immediately. The exclusive deal will show all 306 matches each season and includes the end-of-season relegation playoffs, Bundesliga 2, the German Supercup, and social media clip rights.

BeIN’s relationship with the MENA region has been shaky due to its concerns regarding Saudi Arabia.

BeIN Sports, a Qatari company, filed a complaint with the World Trade Organization in 2018 that accused [[link removed]] Saudi Arabia of blocking BeIN from broadcasting in the Kingdom. It then launched an internal investment arbitration against Saudi Arabia for $1 billion in damages over pirated sports broadcasts from services like beoutQ.BeIN opted out of a Bundesliga rights renewal in 2020 due to piracy concerns and the ban. It reportedly paid [[link removed]] $237 million over the course of its previous deal.Last year, Saudi Arabia lifted [[link removed]] its ban on BeIN.

BeIN holds rights to the Bundesliga in Australia, France, Germany, New Zealand, and Turkey, covering 28 global territories in total.

BeIN’s Broadcasts

The ban didn’t stop BeIN from scoring other similar deals.

In 2020, BeIN secured [[link removed]] the MENA region’s Premier League rights through 2025 as part of a $500 million deal. In 2021, it struck a $600 million pact to broadcast the Champions League and other UEFA tournaments across the region. It also has rights to La Liga and Ligue 1 competitions.

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Tune in on August 31st 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.

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