Peloton co-founders John Foley and Hisao Kushi are leaving the connected fitness company amid struggles to drive profits after a pandemic boom.

Foley, Peloton’s former CEO, has stepped down as executive chairman, while Kushi will resign as chief legal officer on Oct. 3. Peloton CCO Kevin Cornils announced that he will leave the company on Sept. 23 after working there since 2018.

• Shares of Peloton peaked at $167 in October 2020.
• Its stock was at $11.05 as of close Monday, down nearly 70% this year alone.

Last month, current CEO Barry McCarthy announced that Peloton is “making the hard choices,” leading to the elimination of 784 jobs, along with a major reduction of its brick-and-mortar locations and price increases for its most expensive products.

Peloton, which currently has 88 North American stores, will outsource delivery of its interactive products. It will also raise the price of the Bike+ by $500 (to $2,495), and that of the Tread by $800 (to $3,495).

The company, which went public in 2019, delayed its annual 10-K filing with the SEC in August to sort out details related to its ongoing restructuring. 

Slowing Down 

Peloton generated $678.7 million in revenue in fiscal Q4 — down 28% year-over-year and missing Wall Street estimates of $718.2 million.

Revenue from its connected fitness products fell 55% year-over-year to $295.6 million.

Saudi Arabia is reportedly leading a joint bid with Egypt and Greece to host the 2030 FIFA World Cup.

The Middle Eastern country, which recently expressed interest in hosting the Olympics, would reportedly pay for or contribute to Egypt’s and Greece’s infrastructure costs.

FIFA president Gianni Infantino reportedly likes the idea due to the inclusion of an African nation.

• If the joint bid is successful, the World Cup would be played in the winter to avoid extreme summer temperatures, like the 2022 edition in Qatar later this year.
• An announcement is imminent, according to The Times.

The bid would go up against a joint bid from Argentina, Uruguay, Chile, and Paraguay, as well as one from Spain and Portugal that has support from several soccer executives.

“I am sure that the 2030 World Cup will be played in Spain and Portugal,” UEFA president Aleksander Ceferin recently said. “This bid is a winning one, and we will do everything possible to help two countries that are passionate, live and breathe football, and that have a good infrastructure.”

Saudi Sports

Saudi Arabia’s Public Investment Fund purchased Premier League club Newcastle United for $409 million in 2021 and backs LIV Golf, which has attracted dozens of the world’s top golfers.

Last year, the country hosted its first Formula 1 Grand Prix.

Fitness company Tonal is looking to raise $100 million in financing in a deal that would value the company at $1.9 billion, according to Bloomberg.

The potential funding round for Tonal — already backed by a star-studded group of investors including Serena Williams, LeBron James, Mike Tyson, and Drew Brees — is expected to include existing investors like private equity firm L Catterton and Dragoneer Investment Group.

• The round will allow Tonal to continue growing amid ongoing supply chain constraints.
• It is subject to terms, including the latest investors being paid first if Tonal is ever sold.
• In March 2021, Tonal raised $250 million in Series E funding at a $1.6 billion valuation.
• To date, the company has raised $450 million in fresh capital.

In July, Tonal announced it’s slashing 35% of its workforce and plans to cut back on advertising to alleviate customer acquisition costs, according to CNBC. Before the pandemic, Tonal’s workforce stood at just over 110 employees and currently sits at roughly 750. 

The San Francisco-based company has yet to become profitable since its launch in 2015.

Changing Pace

Tonal adds to a growing list of connected fitness companies restructuring their businesses following an initial pandemic boon.

In August, Peloton announced that it will raise prices and cut nearly 800 jobs, while Equinox-owned SoulCycle will reportedly be closing 19 of its 83 studios in the U.S. and Canada.

Major League Soccer club Real Salt Lake has reportedly secured a stadium naming rights deal with America First Credit Union worth nearly $100 million over 15 years, per Sportico.

As part of the pact, America First — a federally chartered credit union based in Utah that has partnered with RSL since 2005 — will have branding and activations throughout the venue.

• Formerly known as Rio Tinto Stadium, the venue will be renamed America First Field.
• Previously, global mining company Rio Tinto paid $2 million annually for naming rights.

In January, Smith Entertainment Group and David Blitzer — co-owner of the Philadelphia 76ers, New Jersey Devils, Cleveland Guardians, and Crystal Palace — purchased RSL for $400 million.

The deal included private equity firm and MLB, NBA, NHL, and PLL investor Arctos Sports Partners as a limited partner.

More New Names

On Monday, Inter Miami — co-owned by David Beckham — struck a training facility naming rights deal with Florida Blue, the state’s Blue Cross Blue Shield healthcare company.

Located in Fort Lauderdale, the 50,000-square-foot facility — now known as the Florida Blue Training Center — opened in 2020 and cost $60 million to build.

Inter Miami is nearing a deal for a new $1 billion stadium and complex.