Also: Fanatics CEO Michael Rubin sells his stake in the 76ers and Devils. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
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The NFL’s Growing Concern Over Jon Gruden Lawsuit

Orlando Ramirez/USA TODAY Sports

As NFL commissioner Roger Goodell advocated patience when it came to Washington Commanders owner Dan Snyder’s future, lawyers were prepping for a legal hearing in a related matter that could prove even more troublesome for Goodell and the league. 

The lawsuit filed by former Las Vegas Raiders coach Jon Gruden against the NFL last November has easily survived every legal challenge so far. At Thursday’s hearing in Las Vegas, District Court Judge Nancy Allf even refused to issue a stay in the case ahead of an expected appeal.

Sources told Front Office Sports there’s a growing concern around the NFL about the litigation, wherein Gruden alleges Goodell and the league were behind the leaked derogatory emails. The NFL denied it was the source of the emails, which led to Gruden’s resignation.

  • Allf denied the NFL’s motion to dismiss the case at a May hearing. 
  • Last week, Allf also denied the NFL’s motion to compel arbitration, which would have put proceedings out of public view
  • The current NFL Constitution and Bylaws — a document the league’s lawyers had sought to keep under seal — was disclosed in the case, according to court documents obtained by FOS. 

Who Leaked? 

The source of the leaked emails obtained during the course of the first NFL outside investigation into the Commanders has been debated for months. The Commanders and Snyder — who faced five new investigations after the emails were published — have also denied being the source

“Somebody wanted Gruden out,” a source told FOS.

Fanatics’ Success Forces CEO to Sell Stake in 76ers, Devils

Kyle Terada-USA TODAY Sports

Two major pro sports teams have a new owner.

Fanatics CEO Michael Rubin has reportedly sold his 10% stake in Harris Blitzer Sports & Entertainment, which owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils.

David Adelman announced on Twitter that he would be joining the ownership group, with ESPN reporting that he took a “substantial share” of Rubin’s stake. The remainder will reportedly be split between Josh Harris, David Blitzer, and other limited partners.

The transaction, which comes after Arctos Sports Partners bought a minority stake in June, values HBSE at roughly $2.5 billion.

Adelman — the CEO of Campus Apartments, co-founder of FS Investments, and founder of Darco Capital — already has ties to the 76ers as the chairman of real estate development company 76 Devcorp, which he created with Harris and Blitzer.

  • The group plans to build a $1.3 billion arena for the team called 76 Place.
  • The project, which the team says could bring in $400 million annually for the city, has a target end date of 2031.

Forbes last valued the 76ers at $2.45 billion and the New Jersey Devils at $775 million.

Rubin’s Reasons

Rubin announced in June that he would divest his stake in the company, as Fanatics’ new offerings would conflict with ownership rules.

Earlier this year, Fanatics launched trading cards and collectibles and has contracts with “thousands of athletes.” This month, Rubin said the company would launch sports betting in January.

Leonsis Closer to Adding Nationals to Trove of Teams

Geoff Burke-USA TODAY Sports

A leading contender has emerged to buy the Washington Nationals, potentially setting up a D.C. sports empire.

Ted Leonsis, owner of the Washington Capitals, Wizards, and Mystics, tops the list, per The Athletic.

  • Leonsis is working with Carlyle Group co-founder David Rubenstein.
  • Leonsis’ Monumental Sports & Entertainment also has stakes in the Capitals and Wizards’ Capital One Arena, NBA G-League team Capital City Go-Go, regional sports network NBC Sports Washington, and multiple esports teams.
  • The Lerner family, which purchased the Nationals for $450 million in 2006, said in April that they hired investment back Allen & Company to explore a sale. Forbes valued the team at $2 billion in March, 12th in Major League Baseball.

In addition to Leonsis and Rubenstein, former CEO of three MLB teams Larry Lucchino, Freedom Mortgage CEO Stanley Middleman, and co-founder of private equity firm MBK Partners Michael B. Kim have shown interest in the Nationals.

The MASN Problem

One obstacle to a sale is that the Nationals do not currently have the same ability to profit from their regional sports network, MASN, because the Baltimore Orioles hold a 67% stake.

The unique arrangement was established as compensation for the Orioles when the Nationals moved into their region from Montreal in 2005. 

The Nationals are tangled in multiple lawsuits around MASN, including one in which a judge has ruled that the team is owed around $100 million in rights fees for broadcasts between 2012 and 2017. The Orioles are appealing that ruling.

Conversation Starters

  • In The Leadoff, the Tennessee Titans could receive the most public money ever for an NFL project, new data released by the NCAA reveals the extent of pandemic budget declines during the 2020-21 season, FIFA rejects several bids for media rights to the 2023 Women’s World Cup, and the Professional Fighters League links up with DAZN for a European launch. Click here to listen.
  • On Friday, plaintiff lawyers in the case Gee v. NCAA revealed they’re seeking a minimum of $1.8 million in damages from the NCAA for allegedly causing the death of former USC linebacker Matthew Gee.
  • Here’s a behind-the-scenes look at “Thursday Night Football” with the Arizona Cardinals in their 42-34 win over the New Orleans Saints at State Farm Stadium.

Market Movers

U.S. stocks experienced gains across all three major indexes on Friday. Here’s a look at how some sports-related stocks performed:

VFC

VF Corp.

$27.68

+0.76%

MTN

Vail Resorts Inc.

$211.39

+1.88%

WWE

World Wrestling Entertainment, Inc.

$78.10

+1.89%

RCI

Rogers Communications Inc.

$38.71

+1.98%

DKS

Dicks Sporting Goods, Inc.

$109.88

+2.20%

MGM

MGM Resorts International

$33.91

+4.31%

(Note: All as of market close on 10/21/22)

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