October 14, 2022

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Tom Brady’s namesake brand just signed its first [[link removed]] long-term partnership. Jackson State quarterback Shedeur Sanders, son of Deion Sanders, will work with the BRADY brand by testing products, in addition to wearing apparel in public and at games. The GOAT himself called Sanders “one of the most influential players of his generation.”

MLS Draws Record Attendance for 2022 Season [[link removed]]

Dale Zanine-USA TODAY Sports

Soccer’s popularity is picking up steam across the globe, and this year’s Major League Soccer regular season was a clear sign of its growth in North America.

The league hosted more than 10 million fans during the 2022 regular season, marking the highest ticket revenue clubs have ever generated — and far exceeding the record 8.6 million fans in 2019, according [[link removed]] to Forbes.

Atlanta United FC led the league’s average attendance with 47,116 fans, while Charlotte FC broke the single-game attendance record when it hosted 74,479 fans at the start of the season.

On Disney networks, viewership reached 356,000 for people aged 2 and up — the league’s highest average ever. FOX Deportes and ESPN Deportes had a 13% year-over-year viewership increase, and TSN in Canada saw an 8% increase.

MLS recorded increases in merchandise sales, viewership, and online engagement.

The league added 600,000 net followers on social media platforms, a 65% year-over-year increase.Sales for jerseys launched in 2022 on MLSstore.com increased 10% from last year. MLS Movement

MLS isn’t slowing down.

Next year, the league will add a new team — St. Louis City SC — and start a new, exclusive media deal [[link removed]] with Apple reportedly worth at least $2.5 billion.

“It’s all with a view to the 2026 World Cup being here, Canada, and Mexico, and the ability to really draft off that incredible moment, which will be the biggest sporting event the world’s ever seen at that point,” said David Bruce, MLS senior vice president of brand and integrated marketing.

Chelsea Owner Says Team Could Double Its Revenue [[link removed]]

Chelsea FC

Chelsea’s new owners think it could be the top-earning soccer team in the world.

Clearlake Capital Partners co-founder and managing partner José E. Feliciano said [[link removed]] that the Premier League club is “one of the best sports properties in the world” and has the potential to double its revenue.

Clearlake purchased [[link removed]] Chelsea along with Los Angeles Lakers, Dodgers, and Sparks co-owner Todd Boehly for $5.3 billion in a deal approved by the league in May.The club earned $558.3 million in revenue in the 2020-21 season, eighth among all soccer teams. Manchester City was first with $730.1 million.Chelsea’s revenue [[link removed]] was $509.5 million in 2018-19, the last season unaffected by the pandemic.

Feliciano also noted that Chelsea’s women’s team could see huge growth.

“There’s no reason why that property should not be several hundred million dollars of revenue,” he said.

Stamford Bridge to Profits

The new ownership group is expected to invest in expensive repairs to Chelsea’s Stamford Bridge stadium.

Renovations could raise the venue’s capacity by 40% to around 60,000, comparable to Arsenal’s Emirates Stadium. Arsenal brought in $108.7 million in matchday revenue in the 2018-19 season — compared to Chelsea’s $85.6 million.

A revamped facility could also allow the team to earn more from luxury boxes.

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Expanding Vuori Eyes Lululemon, Nike in $546B Activewear Market [[link removed]]

Vuori

Activewear brand Vuori continues to expand as it aims to compete with giants in the industry including Nike and Lululemon.

Vuori — which has thrived as an online retailer and is backed by Japanese investment firm SoftBank — opened its first brick-and-mortar store in New York on Thursday as part of a plan [[link removed]] to open about 30 locations globally by the end of 2022.

Vuori could have nearly 60 brick-and-mortar locations by 2024.Last month, the California-based company began ecommerce operations in China.It has been profitable and expects sales to jump more than 70% in 2022.

In October 2021, Vuori received [[link removed]] a $400 million investment from SoftBank valuing the company at $4 billion. The investment marked one of the largest ever in a private apparel company.

Active Competition

The activewear market is expected [[link removed]] to grow to $546 billion by 2024 as several top brands have benefited from increased profits and investment due to pandemic-related demand.

Lululemon generated [[link removed]] $1.87 billion in revenue in Q2 2022, a 29% increase year-over-year, surpassing Wall Street estimates of $1.77 billion. The company, which has 600 stores worldwide, has maintained its outlook of doubling revenue to $12.5 billion from 2021 to 2026.

[[link removed]] Markets [[link removed]] | by Abigail Gentrup [[link removed]] Lululemon Raises Outlook As Revenue Soars [[link removed]] Lululemon reported $1.87 billion in second-quarter revenue. September 2, 2022

Nike — the world’s most valuable [[link removed]] sportswear brand at $33.2 billion — posted [[link removed]] $12.69 billion in revenue in fiscal Q1, a 4% uptick compared to the same period last year.

The company saw its net income fall 22% year-over-year to $1.5 billion during the quarter and reported inventories of $9.7 billion — a 44% increase compared to Q1 2022.

NFL Owners Tussle Over $790M Rams Settlement [[link removed]]

Kirby Lee-USA TODAY Sports

NFL owners are in a standoff over who is responsible for paying a $790 million settlement.

The charge comes from a settlement with the state of Missouri over a lawsuit regarding the Rams’ move from St. Louis to Los Angeles in 2016.

Rams owner Stan Kroenke previously agreed to pay for legal expenses related to the move. Kroenke is now arguing that his promise was to cover legal fees, not settlement funds.Owners will vote on who will pay at the upcoming owners’ meetings on Tuesday in New York.

Missouri has already received [[link removed].] its funds from the NFL, which totaled $513 million after attorney’s fees. In June, officials voted to move the money from low- or no-interest funds to high-interest ones.

Angry Owners

The Athletic reported [[link removed]] in May that the NFL garnished $7.5 million from each of the other 31 teams — a total of $232.5 million — to help cover expenses related to the move. Many owners were reportedly angered by the move.

Kroenke had agreed to indemnify other owners, many of whom were not expecting to pay anything related to the move.

He has argued that his efforts to build a stadium and fanbase in Los Angeles, as well as his willingness to take on the Los Angeles Chargers as tenants after their move from San Diego in 2017, should be factored into the negotiations.

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Technology is Changing the Sponsorship Game

Twitch. Snapchat. E-Sports.

A decade or two ago, terms like these would mean nothing to us…but now, they’re some of the biggest influences in the sports industry – as both engagement platforms, and areas ripe for sponsorship.

But with new opportunities come new challenges, and the sporting world is no exception. As sports sponsorship models have evolved over the years, so too have the tools that brands and rights holders use to manage them.

Join us on October 25 at 1 p.m. ET as Owen Poindexter, Editor at Front Office Sports, sits down with Marc Roots, Chief Product Officer at KORE, and Scott Tilton, Executive Vice President at KORE and Founder of HookIt, for a conversation about The Evolution of Technology in Sponsorship [[link removed]].

Register for the webinar right here [[link removed]].

Conversation Starters For the first time, MLB will give away a free 2022 MLB Postseason Commemorative Ticket NFT to any fan who attends [[link removed]] a 2022 playoff game. The number of sponsorships across women’s professional sports grew [[link removed]] 20% year-over-year, according to SponsorUnited. Big 12 commissioner Brett Yormark shared [[link removed]] his plans with Front Office Sports to keep the conference alive. Today's Action

MLB

01:07 PM

Guardians (+120) at Yankees (-140)

Bet Now [[link removed]]

NCAA

08:00 PM

UTSA (0) at FIU (0)

Bet Now [[link removed]]

MLB

08:37 PM

Dodgers (-125) at Padres (+105)

Bet Now [[link removed]]

*All times are EST unless otherwise noted.

*Odds/lines subject to change. T&Cs apply. See [[link removed]] for details.

Question Of The Day

Do you prepare your own tax filings?

Yes [[link removed]] No [[link removed]] No, but I want to [[link removed]]

Thursday’s Answer

38% of respondents plan to watch the MLS Playoffs this year.

If this email was forwarded to you, you can subscribe here [[link removed]].

Written by Abigail Gentrup [[link removed]], Owen Poindexter [[link removed]], Justin Byers [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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