October 25, 2022

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Fresh off his record-setting season, Yankees superstar Aaron Judge might make more history this offseason as he enters free agency [[link removed]]. Super-agent Leigh Steinberg has speculated that the Bronx Bomber could command a 10-year contract worth $500 million — which would be the biggest deal in baseball history.

Adidas Cuts Ties With Kanye West [[link removed]]

Calvin Mattheis/Imagn

Adidas is ending its relationship with Ye, formerly known as Kanye West.

The move [[link removed]] comes after the rapper and designer, whose Yeezy brand was produced and distributed by Adidas, made antisemitic comments on social media platforms.

The German company stated [[link removed]] that Ye’s comments are “unacceptable, hateful, and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect, and fairness.”

Adidas will immediately halt production of Yeezy-branded products and end the Adidas Yeezy business.Adidas, which reportedly owns the designs, will also stop all payments to Ye and his companies.

The sportswear brand put its relationship with Ye under review earlier this month after trying to resolve disputes privately. At one point, Ye accused Adidas of stealing his designs.

Dropping Ye is expected to bring a $247 million hit to Adidas’ 2022 net income, and one report suggests [[link removed]] it’s close to a $10 billion decision.

Adidas reportedly earned royalties of around 15% on Yeezy product sales from the partnership, which accounted for as much as 8% of Adidas’ sales, according to a recent report from UBS analysts.

Adidas will provide more information in its third-quarter earnings announcement on Nov. 9.

Ye’s Year

Adidas isn’t the only company dropping Ye, who also recently wore a “White Lives Matter” shirt.

Gap ended its relationship last month, before Creative Artists Agency dropped [[link removed]] Ye as a client, film and television studio MRC Entertainment scrapped a completed documentary about him, and Balenciaga and Vogue cut ties.

Sports Drinks Boost Coca-Cola to $11B Quarter [[link removed]]

Soobum Im-USA TODAY Sports

Coca-Cola continues to rack up revenue from its sports drinks segment.

The beverage giant generated [[link removed]] $11.1 billion in revenue in Q3 2022 — a 10% increase year-over-year and surpassing Wall Street estimates [[link removed]] of $10.52 billion. Sports drinks — which include BODYARMOR, Powerade, and Aquarius — grew 6% during the quarter.

The company reported net income of $2.83 billion, compared to $2.47 billion in Q3 2021.Earnings per share reached 69 cents in Q3 2022, up from a projected 64 cents.Cash flow from operations was $8.1 billion year-to-date, down $1.2 billion year-over-year.

In 2018, Coca-Cola purchased a 15% stake in BODYARMOR, becoming the brand’s second-largest shareholder. Coca-Cola acquired [[link removed]] the remaining shares in November 2021 for $5.6 billion, valuing BODYARMOR — which sponsors professional athletes like Mookie Betts, Naomi Osaka, and others — at $8 billion.

The brand also has deals with UFC and MLS.

’Round the World

Coca-Cola helped launch [[link removed]] the World Cup Trophy Tour, which will visit 51 countries and territories prior to the 2022 FIFA World Cup in Qatar.

The tour began at FIFA’s headquarters in Switzerland and will end in Doha days before the World Cup. The tournament begins Nov. 20 and runs through Dec. 18.

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Juventus Execs Could Face Criminal Charges Following Probe [[link removed]]

Juventus FC

Top executives at Italy’s most valuable soccer team could face a criminal trial, depending on what investigators found in the club’s financial records.

Prosecutors concluded [[link removed]] their investigation into Juventus regarding financial dealings and accounts between 2018-2020. The team is now waiting to hear if there will be criminal charges.

The team is under investigation for taking illegal commissions from player transfers and loans and for false accounting practices regarding those transactions.There are reportedly 15 suspects in addition to the club itself, including club president Andrea Agnelli, vice president Pavel Nedved, and CEO Maurizio Arrivabene.A judge rejected a request that Agnelli be placed under house arrest.

Juventus released a statement on Tuesday saying it “remains convinced” that it “operated according to the laws and rules that govern financial relations” and “international customs of the football industry.”

Loss Leader

Juventus, which is publicly traded, has lost money each of the last five years, including a $253.3 million loss in the 2021-22 fiscal year and a $209 million loss the previous year.

Its stock fell 17.6% on Tuesday to a market cap of $725 million.

The team was valued [[link removed]] at $2.45 billion in May by Forbes, ninth among all soccer teams and first among Italian clubs.

Conversation Starters In The Leadoff, the NBA explores ways to combat tanking, hefty World Cup prices turn soccer fans away, Formula 1 considers an all-female racing series, and Magic Johnson could acquire a stake in the Las Vegas Raiders. Click here to listen [[link removed]]. The Tennessee Titans have released [[link removed]] a first look at the plans for a new state-of-the-art domed stadium set to cost up to $2.2 billion. San Diego Padres CEO Erik Greupner handed [[link removed]] out free gear to the fans who welcomed his team back to San Diego after their playoff run ended against the Philadelphia Phillies.

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Market Movers

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

PENN [[link removed]]

PENN Entertainment Inc

[[link removed]]

$31.50

[[link removed]]

+1.61%

[[link removed]] COLM [[link removed]]

Columbia Sportswear Co.

[[link removed]]

$75.80

[[link removed]]

+1.91%

[[link removed]] UA [[link removed]]

Under Armour Inc

[[link removed]]

$6.56

[[link removed]]

+2.02%

[[link removed]] GOLF [[link removed]]

Acushnet Holdings Corp

[[link removed]]

$45.60

[[link removed]]

+2.84%

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

Nike, Inc.

[[link removed]]

$91.72

[[link removed]]

+4.36%

[[link removed]] GCO [[link removed]]

Genesco Inc.

[[link removed]]

$46.24

[[link removed]]

+5.19%

[[link removed]] (Note: All as of market close on 10/25/22) What to Watch

The Golden State Warriors (2-1) face the Phoenix Suns (2-1) on Tuesday night at the Footprint Center.

How to Watch: 10 p.m. ET on TNT

Betting Odds: Suns -1.5 || ML -120 || O/U 226

Pick: Expect the Suns to build on Sunday’s win. Take Phoenix to cover.

Refer Friends to Score Your Favorite Team’s Jersey

Front Office Sports is celebrating that Paramount+ is home to world-class soccer matches from around the globe by giving away five authentic official jerseys.

How can you score one? Refer your friends and colleagues to Front Office Sports. Copy and paste your unique link below and share it in an email or on your timeline.

NO PURCHASE NECESSARY. Enter between October 24, 2022 @ 12:01 a.m. ET – December 18, 2022 at 11:59 p.m. ET. Open to US residents age 18+ only. 1 entry per person. Void where prohibited. See Official Rules [[link removed]] for details.

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