Amazon has endured historic losses over the past year, but it’s still gunning for top-value sports rights.

The media and ecommerce giant briefly held the distinction of being the only public company to lose $1 trillion in market value.

• A slump over the last month led to a drop in market capitalization of around $879 billion. 
• The company reached a peak market value of $1.88 trillion in July 2021.
• A rally following news that inflation is receding in the U.S. led to a 12.2% jump on Thursday, pushing Amazon’s market cap $978.24 billion.

It’s unclear how many people are watching Amazon’s first season of broadcasting “Thursday Night Football” exclusively. The company’s own estimates show an average viewership of 11.8 million, while Nielsen ratings produce a significantly smaller 10.1 million figure.

Both are a notable dropoff from last season’s 16.4 million on Fox.

NBA on Prime?

Amazon has prioritized the most popular sports leagues in purchasing broadcast rights, such as the NFL and the Premier League — and another top commodity is coming on the market.

Negotiations for the NBA’s next media deal are ongoing, and the league could be seeking up to $9 billion annually.

The league’s current deals with Disney and Discovery’s TNT end after the 2024-25 season.

Endeavor reported $1.22 billion in third-quarter revenue, down from $1.39 billion during the same period last year.

The owner of mixed martial arts promotion UFC and talent agency WME posted a net loss of $12.5 million, compared to $63.6 million in net income in Q3 FY 2021.

• The Events, Experiences & Rights segment brought in revenue of $440.6 million, down $5.7 million year-over-year, primarily attributed to media rights to non-annual events.
• Revenue for its Owned Sports Properties segments jumped to $402.3 million, a $113.8 million increase from last year, partially due to an increase in product and licensing revenues at UFC.
• Endeavor’s Representation segment’s revenue fell $276.4 million to $388.3 million.

Endeavor closed its $800 million acquisition of sports betting company OpenBet during the quarter. The initial agreement was reportedly worth $1.2 billion, but that number fell in July, per an SEC filing. The deal combines OpenBet with IMG Arena, Endeavor’s sports betting unit.

The company expects $5.24 billion to $5.33 billion in full-year revenue.

Ballpark Policies 

During the quarter, Endeavor announced plans to sell Diamond Baseball Holdings to Silver Lake — Endeavor’s majority investor — for $280 million. DBH was formed last year and now includes 10 minor league baseball teams.

Endeavor president Mark Shapiro said at the time that the company’s “relationship with MLB and the MLBPA took priority” — the MLBPA previously claimed Endeavor’s ownership of player agents in its WME Sports division was a conflict of interest.

The NHL’s Ottawa Senators may have found their new owner. 

Billionaire Michael Andlauer has reportedly emerged as the frontrunner to purchase the Senators after the team was placed on the market last week by the two daughters of late former team owner Eugene Melnyk — who bought the Senators for $92 million in 2003. 

Earlier this month, the Melnyk family reportedly hired financial services firm Galatioto Sports Partners to facilitate a sale. Galatioto is also involved in the sale of MLB’s Los Angeles Angels. 

Andlauer, founder and CEO of Andlauer Healthcare Group Inc., has relationships with NHL commissioner Gary Bettman and team owners as a minority partner of the Montreal Canadiens. Andlauer — who joined a consortium led by the Molson family that acquired the Canadiens for $575 million in 2009 — has made plans to sell his stake in the franchise. 

• In December 2021, the Senators were valued at $525 million, per Forbes.
• The valuation ranks the team 28th out of 32 NHL franchises.
• Several bidders are expected to submit offers worth at least $655 million.

Actor and Wrexham AFC co-owner Ryan Reynolds has expressed interest in buying the Senators, according to People, though noting that he would need a consortium of investors with “very deep pockets” to complete a sale. 

New Home 

In June, the Senators reached a memorandum of understanding with the National Capital Commissions and a group of partners for a new arena.

The Senators plan to build the facility in downtown Ottawa, with a long-term land-lease agreement expected to be reached in 2023.

Guenther Steiner, principal of Haas Formula 1 team, knew how big F1’s U.S. popularity had grown when he was stopped multiple times on his way to breakfast in Las Vegas.

He was approached by “at least five-to-10 people,” he told Front Office Sports. “The race is in a year, guys!” 

Steiner was among several F1 representatives in Vegas for its Fan Fest, where drivers tested out a short track and F1 laid out plans for its permanent paddock area.

• Between the paddock development and associated land purchase, F1 is spending $500 million, according to Nevada Gov. Steve Sisolak.
• “The vibe that is already in the city is really hard to describe,” Williams principal Jost Capito told FOS. “It’s unbelievable. Everybody seems to know about Formula 1.”

Coming to America

Both Williams and Haas are strengthening their U.S. ties. Williams plans to add American driver Logan Sargeant to its F1 team in 2023, if he qualifies, and Haas selected MoneyGram as its new title sponsor.

“Now, having an American sponsor and the owner being American, we can take more of that identity on.”

Capito noted that having an American driver won’t be enough — “you need a successful, performing American driver.”

Steiner added that F1’s surging U.S. popularity could lead to more American drivers in a few years, as more aspiring racers look to that path and “not only into NASCAR or IndyCar.”