October 11, 2022

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We’ve got a few plot twists in today’s Leadoff: Roger Goodell believes London could support full-time NFL teams, Saudi Arabia’s soccer club sponsorship deals hit $2.3 billion, a major sponsor redirects money from the Portland Thorns and Timbers, and the F1 cost cap actually boosts Mercedes’ profits. Click here to listen [[link removed]].

Fanatics Making Sports Betting Push into 15 to 20 States [[link removed]]

Fanatics Inc.

Fanatics is making its long-awaited push into sports betting at the start of next year.

“We’re going to start launching in January,” said [[link removed]] Fanatics CEO Michael Rubin at the Sports Business Journal World Congress of Sports.

Rubin said [[link removed]] Fanatics would be in around “15 to 20 states” by the start of the 2023 NFL season.“We’ll be in every major state other than New York, where you can’t make money,” Rubin added. Sportsbook operators are required to pay a 51% tax rate in New York for 10 years. Fanatics applied to operate there last year and was rejected.Rubin added that sports betting and Fanatics’ other business segments “could be $8 billion even in the next decade,” in profits.

In March, Fanatics raised $1.5 billion at a $27 billion valuation.

Built-In Fanbase

Fanatics will leverage its database of millions of customers, a source with knowledge of Fanatics’ sports-betting efforts told Front Office Sports, and its patience getting into the space would likely lead to 30% lower costs overall.

Fanatics is planning to implement a crossover loyalty program between its ecommerce and sports betting.

Industry insiders had speculated that Fanatics would have to acquire an existing betting company, but the source said the purchase of a company like PointsBet — which currently operates in 11 states — isn’t expected.

“They’re a digital company with a good brand,” said Chad Beynon of Macquarie Capital. “But as we have seen, it’s not an easy business to even get 5% market share.”

Chicago Red Stars Players Want Owner Removed [[link removed]]

Daniel Bartel-USA TODAY Sports

More fallout is coming from the U.S. Soccer-commissioned investigation into systemic abuse and sexual misconduct in the NWSL.

Chicago Red Stars players have called on owner Arnim Whisler to sell [[link removed]] his stake after the report — launched following allegations against former Portland Thorns and North Carolina coach Paul Riley — revealed Whisler repeatedly dismissed allegations against former Red Stars coach Rory Dames.

The verbal and emotional abuse claims, which Whisler was aware of “for decades,” date back to 2014, but he took no immediate action to protect players.Last week, Whisler said he would step away from his duties on the NWSL board of governors, as well as give up operational control of the club. The Red Stars voted to remove Whisler as chairman of the board, and the board reportedly [[link removed]] wants to facilitate a sale, too.

“We are united with the board of directors in their decision to remove Whisler from the organization entirely and look forward to finding a new majority owner,” the players’ statement reads.

The club is valued [[link removed]] at a little more than $3.5 million, according to Forbes.

[[link removed]] Teams [[link removed]] | by Abigail Gentrup [[link removed]] Timbers, Thorns Lose Deals Following NWSL Investigation [[link removed]] Alaska Airlines is redirecting its money from the Portland Thorns and Timbers. October 10, 2022 Other Outcomes

The investigation has affected teams across the league.

Orlando Pride head coach Amanda Cromwell and assistant coach Sam Greene have had their contracts terminated for engaging in “retaliatory conduct” toward players.

Alaska Airlines announced [[link removed]] it would redirect its money from the Portland Thorns and Timbers after the investigation revealed owner Merritt Paulson had been supportive of Riley despite the allegations. Paulson stepped down [[link removed]] as CEO on Tuesday.

SPONSORED BY TICKETMASTER

Ticketmaster Taps Into TikTok

Ticketmaster partnered with TikTok, the leading short-form video platform, to allow content creators – including teams, artists, venues and fans – to easily add event ticketing [[link removed]] links directly on their videos before posting to their followers.

Ticketmaster clients across music, comedy, and now sports are leveraging this feature to extend the reach of their events to TikTok’s 1B+ global audience, racking up over 150M views [[link removed]] collectively since the feature’s launch in August.

“We’re always seeking new ways to reach our fans in authentic, engaging and innovative ways. Through Ticketmaster’s integration with TikTok, we are poised to target our fans with rich video content to drive not only engagement but also revenue.” David Eisenberg – VP, Marketing, San Francisco 49ers.

Learn more [[link removed]] about Ticketmaster’s first-of-its-kind partnership with TikTok.

London, Paris Balk At World Cup Watch Parties [[link removed]]

FIFA

Some of the world’s biggest soccer hubs are tuning out the World Cup.

London joined [[link removed]] Paris and other French cities in declining to organize fan zones or watch parties in protest of World Cup host Qatar’s human rights record.

The November tournament “progressively turned itself into a human and environmental catastrophe, incompatible with the values which we expect sport, and especially football, to promote,” said [[link removed]] Marseille mayor Benoît Payan.

Paris mayor Martine Aubry cited concerns over workers’ rights, alleged deaths of foreign workers, and the environmental impacts of the stadiums, which will have outdoor air conditioning.

Qatar is reportedly conscripting hundreds of civilians to work [[link removed]] security at the event.

London drew roughly 7,000 fans to Trafalgar Square in July to watch the Women’s Euro 2022 final, which England won.Officials in French cities Lille, Bordeaux, Reims, Nancy, and Rodez also indicated that they will break from previous practice and not offer fan-gathering sites. Player Protest

The soccer teams of England, France, Germany, Norway, Sweden, Switzerland, Wales, the Netherlands, Belgium, and Denmark all support [[link removed]] the OneLove campaign, which fights discrimination against the LGBTQ+ community.

The teams that will be playing in Qatar, where homosexuality is illegal, have asked to wear OneLove armbands during World Cup matches. England is prepared to pay a fine to FIFA if permission is not granted.

Conversation Starters Invesco QQQ [[link removed]] gives you access to the growth potential of some of the world’s greatest innovators, all in one fund. See how some of those companies are revolutionizing sports and become an Agent of Innovation today.* On Tuesday, WWE’s NIL program “Next In Line,” launched [[link removed]] an NIL recruiting tour that will visit eight FBS schools, including the University of Mississippi and Penn State. TBT Enterprises, creator of The Basketball Tournament, has announced [[link removed]] The Soccer Tournament, a soccer version of its $1 million, winner-takes-all competition. As of Monday, prices for Saturday’s game between Tennessee and Alabama ranged [[link removed]] from $300 to more than $1,000 apiece on both StubHub and Ticketmaster — not including fees.

FRONT OFFICE SPORTS PRO

The Rise of Microtransactions in Gaming

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Our recent report [[link removed]], Microtransactions in Sports Gaming, explores how:

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Market Movers

U.S. stocks were mixed on Tuesday. Here’s a look at how some sports-related stocks performed:

RCI [[link removed]]

Rogers Communications Inc.

[[link removed]]

$37.36

[[link removed]]

+0.19%

[[link removed]] PLNT [[link removed]]

Planet Fitness Inc

[[link removed]]

$60.27

[[link removed]]

+0.22%

[[link removed]] MSGS [[link removed]]

Madison Square Garden Sports Corp

[[link removed]]

$153.86

[[link removed]]

+0.30%

[[link removed]] NKE [[link removed]]

Nike, Inc.

[[link removed]]

$87.42

[[link removed]]

+0.81%

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

Live Nation Entertainment Inc

[[link removed]]

$77.60

[[link removed]]

-0.45%

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

AT&T, Inc.

[[link removed]]

$14.81

[[link removed]]

-0.50%

[[link removed]] (Note: All as of market close on 10/11/22) What to Watch

The Cleveland Guardians (92-70) face the New York Yankees (99-63) on Tuesday night at Yankee Stadium in Game 1 of the ALDS.

How to Watch: 7:37 p.m. ET on TBS

Betting Odds: Yankees -1.5 || ML -205 || O/U 7

Pick: Expect a strong start from Cal Quantrill. Take Cleveland to cover.

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Written by Owen Poindexter [[link removed]], A.J. Perez [[link removed]], Abigail Gentrup [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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