October 27, 2022
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The NBA’s ongoing media rights negotiations are influencing everything the league is doing now — from anti-tanking measures to talks of a midseason tournament. Senior writer Michael McCarthy joins Owen Poindexter on this week’s episode of The Newsroom to break down what’s happening and how much money is at stake. Listen and watch on Apple [[link removed]], Spotify [[link removed]], and YouTube [[link removed]].
Comcast’s Revenue Drops Without Olympics [[link removed]]
Comcast
Comcast is feeling the post-Olympic blues.
The media conglomerate reported [[link removed]] a 1.5% year-over-year decline in third-quarter revenue to $29.8 billion and a net loss of $4.6 billion, compared to $4 billion in net income the year prior. Comcast added 14,000 broadband subscribers.
Comcast’s NBCUniversal was awarded the U.S. media rights for the Olympic Games from 2021 through 2032 at a $7.65 billion price tag. The first Games under that deal were the Tokyo Olympics in the third quarter of FY2021.
NBCUniversal’s Q3 revenue fell 4.3% year-over-year to $9.6 billion, with its media segment dropping 22.7% to $5.2 billion — excluding the Olympics and the Super Bowl, it increased 4.4%.Advertising revenue declined 35.1%, primarily due to the Olympics.
The company also said goodbye [[link removed]] to its Olympic Channel at the end of the quarter, not long after shutting down its sports network at the end of last year.
Paid subscribers for Comcast’s streaming service Peacock, which posted [[link removed]] a loss of $614 million, surpassed 15 million — a nearly 70% increase year to date.
Sky’s Show
Comcast posted [[link removed]] an $8.6 billion write-down on its pay-TV operations for Sky, the European media and entertainment company Comcast acquired in 2018 for $39 billion.
The segment, which renewed [[link removed]] its broadcasting deals for the Masters Tournament and PGA Tour in the U.K. and Ireland in Q2, posted a 14.7% year-over-year decrease in third-quarter revenue to $4.3 billion, but added 320,000 customers.
SkyShowtime, the joint venture with Paramount Global, launched in September.
Microsoft CEO: Gaming ‘Resilient’ During Economic Uncertainty [[link removed]]
Microsoft
Video games have become a bright spot for Microsoft amid challenges within the tech industry.
“It’s proven over years, at times of economic uncertainty for families, gaming is somewhat resilient to those issues,” Microsoft Gaming CEO Phil Spencer said [[link removed]].
Microsoft proved itself in 2008 during the global financial crisis when it recorded its Best Calendar Year on record for Xbox sales after it cut prices to compete with Nintendo’s Wii.
Microsoft’s latest earnings report backs up Spencer’s statement.
Microsoft posted [[link removed]] $50.1 billion in revenue in fiscal Q1, an 11% increase year-over-year.Its Xbox content and services business saw revenue decrease by 3% during the quarter.Microsoft offers its latest generation of consoles for $499 (Xbox Series X) and $299 (Series S).It subsidizes the cost of the consoles from $100 to $200 per unit.
The gaming industry took a step back [[link removed]] in the first half of this financial year following a surge of interest and spending at the height of the pandemic, mostly due to the ongoing chip shortage and supply chain disruptions.
Road Block
In January, Microsoft announced [[link removed]] plans to acquire Activision Blizzard for $68.7 billion, making the tech giant the world’s third-largest gaming company by revenue.
The all-cash deal has been investigated [[link removed]] by the Competition and Markets Authority — a U.K. antitrust watchdog. The CMA detailed concerns over the deal harming [[link removed]] Sony’s PlayStation subscription offerings and the streaming business of rivals Google, Amazon, and Nvidia.
As a result, the deal was not initially approved by the CMA and has been sent to a second review stage.
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Jack Bech is a sophomore tight end at LSU, and one of the team’s up-and-comers. Born and raised an hour away, Bech is living out his dream playing for the Tigers, and he wants to help others who are less fortunate live out their dreams too.
That’s why he pledged a portion of his NIL earnings to the Dreams Come True Foundation, a non-profit that grants dreams to children in the state with life-threatening illnesses.
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MSG Sports Corp. Loses $36M Despite Knicks, Rangers Boost [[link removed]]
Danny Wild-USA TODAY Sports
The owner of the New York Knicks and Rangers saw positive returns from the beginning of their seasons, even as the Knicks’ long-term struggles on the court may be hurting their value.
Madison Square Garden Sports Corp. saw its revenue rise 28% year-over-year to $24.1 million in their fiscal first quarter ending Sept. 30.
The company still took a $35.9 million operating loss, a tick larger than the $34.9 million loss in the same period last year.The Knicks and Rangers saw combined season-ticket renewals top 90% for the 2022-23 season.The company said that suite license sales “remain robust” and that the majority of suites are under multiyear agreements.
MSG Sports is issuing a one-time dividend of around $175 million to its shareholders and has authorized a $75 million share buyback.
Knicks Bumped from Top Spot
The Golden State Warriors broke the Knicks’ seven-year streak as the most valuable NBA team, per Forbes’ annual rankings [[link removed]]. The reigning NBA champions reached a value of $7 billion, becoming the first team other than the Knicks and Lakers to claim the top rank in two decades.
The Knicks were second at $6.1 billion, followed by the Lakers at $5.9 billion.
The Knicks have made the playoffs only once since the 2013-14 season, losing in the first round in 2020-21. The Warriors have been NBA champions four times in that stretch and reached the Finals in two additional seasons.
Conversation Starters In The Leadoff, MLB generates an estimated $1.2 billion in sponsorship revenue, tension grows in Qatar before the FIFA World Cup, China wants to host the 2031 FIFA Women’s World Cup, and NBA stars invest in vintage jersey maker Mitchell & Ness. Click here to listen [[link removed]]. ABC’s coverage of the U.S. Grand Prix at the Circuit of the Americas in Austin averaged [[link removed]] 1.3 million viewers, down 7% from 1.4 million last year. The U.S. Department of Justice has included [[link removed]] Augusta National and the United States Golf Association in its antitrust investigation of the PGA Tour pertaining to LIV Golf. Hear representatives from the NBA and the Buffalo Bills talk about the changes in content strategy and the value of AI technology in our upcoming webinar, How AI Can Boost Fan Engagement in Sports Video. Register here [[link removed]].†
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Market Movers
U.S. stocks were mixed on Thursday. Here’s a look at how some sports-related stocks performed:
ZBRA [[link removed]]
Zebra Technologies Corp.
[[link removed]]
$275.23
[[link removed]]
+1.59%
[[link removed]] PLNT [[link removed]]
Planet Fitness Inc
[[link removed]]
$61.44
[[link removed]]
-0.23%
[[link removed]] WWW [[link removed]]
Wolverine World Wide, Inc.
[[link removed]]
$17.16
[[link removed]]
-0.89%
[[link removed]] GCO [[link removed]]
Genesco Inc.
[[link removed]]
$47.36
[[link removed]]
-1.19%
[[link removed]] LYV [[link removed]]
Live Nation Entertainment Inc
[[link removed]]
$78.17
[[link removed]]
-2.08%
[[link removed]] (Note: All as of market close on 10/27/22) What to Watch
The Baltimore Ravens (4-3) face the Tampa Bay Buccaneers (3-4) on “Thursday Night Football” at Raymond James Stadium.
How to Watch: 8:15 p.m. ET on Amazon Prime Video
Betting Odds: Buccaneers -2 || ML -125 || O/U 46
Pick: Expect Tom Brady and his offense to get back on track. Take Tampa Bay to cover.
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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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*Invesco is not affiliated with Jack Bech or LSU.
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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