December 8, 2022

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The U.S. will warm up [[link removed]] for hosting the 2026 World Cup by staging one of the world’s great cup competitions. Usually held in South America, the 2024 Copa América will be played in the U.S. — and the American, Mexican, and Canadian national teams will all participate.

Netflix CEO Calls Live Sports a ‘Loss Leader’ [[link removed]]

Netflix

Netflix co-CEO Ted Sarandos revealed why the world’s biggest streaming service doesn’t offer live sports.

“We’ve not seen a profit path to renting big sports,” Sarandos said [[link removed]] on Tuesday at the UBS Global TMT Conference in New York City.

While noting that Netflix isn’t completely closing the door on a favorable opportunity, Sarandos characterized live sports as “dramatically expensive” and essentially a “loss leader.”

The company scored $7.9 billion in third-quarter revenue and $1.4 billion in net income.While Netflix has been profitable every quarter this year, other major streaming networks — such as Disney’s bundle of Disney+, ESPN+, and Hulu — have yet to turn a profit. Netflix had 223 million subscribers as of October.

“We’re not anti-sports,” said Sarandos. “We’re just pro-profit.”

Window Shopping

Sarandos’ comments cut against previous reporting that Netflix had looked to acquire [[link removed]] rights to tennis tours as well as purchasing the World Surf League. It also looked into nabbing Formula 1 rights before ESPN signed a three-year contract for $75 million to $90 million annually.

Netflix confirmed in May that it will renew its hit F1 series “Drive to Survive” for a fifth and sixth season. The streamer is also working with “Drive to Survive” producer Box to Box on a series covering top tennis players and the Grand Slam events.

Angels Could Be Sold by Opening Day [[link removed]]

Mark J. Rebilas-USA TODAY Sports

A Major League Baseball team could change hands before the next season starts.

MLB commissioner Rob Manfred floated [[link removed]] the possibility that the Los Angeles Angels could be sold by March 30 — when the 2023 season begins — saying, “My understanding is that the club would like to have the sale resolved by Opening Day.”

Owner Arte Moreno said in August that the team would explore strategic options, including a sale, after a land deal with Anaheim collapsed under corruption charges.Moreno had agreed to purchase the team’s stadium and surrounding land for $320 million.The city could require [[link removed]] Moreno or a future owner to cover around $300 million in repairs, per a previous agreement.

The Angels were valued [[link removed]] at $2.2 billion by Forbes in March, ninth in MLB.

Orioles, A’s in Flux

Manfred also provided commentary regarding other teams, stating that “as long as I have this job, I think you can count on the fact that the Orioles are going to be in Baltimore.”

He was far less certain about the Oakland A’s, alluding to a contractual trigger in the league’s collective bargaining agreement that denies them revenue sharing money without a new stadium deal by Jan. 15, 2024.

Manfred reiterated that the league would waive its relocation fee — which could reach [[link removed]] as much as $1 billion — if the team leaves Oakland.

Meanwhile, the Kansas City Royals will hold their first public meeting on Tuesday for a proposed [[link removed]] $2 billion ballpark and surrounding entertainment district.

SPONSORED BY META

Building Immersive Sports Experiences Through VR

Is virtual reality the next big thing in sports? Quite possibly.

Together with Meta, our latest free course, Metaverse Essentials: Building the Future [[link removed]], dives deep into the ever-evolving connection between sports and the metaverse, exploring where we are today and what the future holds.

Check out the final lesson [[link removed]] of the course, Virtual Reality: Sports & Fitness, where Meta’s Director of Sports Creator Partnerships Kevin Cote sits down with an all-star panel of leaders from X Games, Rezzil, GOLF+, and FitXR to discuss how virtual reality will transform the way sports are played, viewed, and experienced.

Earn your digitally verified badge today! Register now [[link removed]].

‘Call of Duty’ Heading to Nintendo With 10-Year Deal [[link removed]]

Activision

Activision Blizzard’s “Call of Duty” franchise will finally be available to Nintendo consumers.

Microsoft has agreed [[link removed]] to a 10-year deal with Nintendo to bring the popular shooter franchise to Nintendo gaming platforms.

A deal will be finalized depending on Microsoft’s acquisition of Activision Blizzard.

In January, Microsoft agreed to acquire [[link removed]] the video game holding company for $68.7 billion, but the pending transaction is facing [[link removed]] regulatory scrutiny in the U.S., Australia, and the U.K.

The deal can be extended after its initial 10-year period.The latest installment in the franchise — “Call of Duty: Modern Warfare II” — passed [[link removed]] $1 billion in sales in just 10 days after its release on Oct. 28.

Microsoft has also vowed to make “Call of Duty” available for PCs via distribution platform Steam at the same time as its release on Xbox. A similar deal is on the table for Sony, but the Japanese tech giant has yet to accept the offer, as it opposes Microsoft’s takeover of Activision.

Change of Forecast

Nintendo slashed [[link removed]] its full-year sales forecast for the Switch — its best-selling home gaming console ever — following the release of its latest earnings report in November. The company reported $4.5 billion in sales for the six months ending Sept. 30, a 5% increase year-over-year.

Despite the growth, Nintendo has been hampered by the ongoing chip shortage.

Switch sales are projected to reach 19 million units by the end of March 2023, down from a previous projection of 21 million.

Anta Mulls $1B IPO for Louisville Slugger, Wilson Owner [[link removed]]

Shutterstock

The largest sporting goods retailer in China is considering taking one of its brands public.

Anta Sports — a brand often called [[link removed]] “the Nike of China” — is reportedly [[link removed]] weighing an initial public offering of Amer Sports, the owner of sportswear and equipment brands including tennis racket maker Wilson and Louisville Slugger.

In 2018, Anta purchased Amer in a deal valued at $5.2 billion.Anta is in preliminary talks with investment banks to facilitate a potential IPO.Amer could raise at least $1 billion in the transaction.It could go public as early as 2023.

Lululemon founder Chip Wilson — who is valued at $6.1 billion and owns a 20% stake in Amer worth at least $1.2 billion — vowed to help Amer expand [[link removed]] its sales through direct-to-consumer channels. Anta is attempting to make Amer a more globally recognized brand through a revamped focus on product and design.

Amer has a group of investors that also includes Tencent and private equity firm FountainVest.

Financial Status

Anta generated [[link removed]] a record $3.7 billion in revenue for the six months ending June 30, a 14% increase year-over-year. Its Amer segment posted $1.4 billion in revenue during the six months, up 21% compared to the same period last year.

Amer’s growth was attributed to strong sales outside China and continued development in the country — despite its COVID-zero strategy on consumer spending.

SPONSORED BY NETSUITE

Celsius’ Mission to Make the No. 1 Energy Drink

My Other Passion, presented by NetSuite [[link removed]], brings you conversations with the most influential athletes, celebrities, and executives about what drives them – beyond the sports or businesses they’re famous for.

In a new episode, Ernest Baker, editor in chief of Front Office Sports, sits down with Celsius CEO John Fieldly to talk about the extremely competitive energy drink market, his plans to take out Red Bull and Monster, why sports and fitness are so important for Celsius’ brand, and that $550 million investment the company just got from PepsiCo.

Listen now [[link removed]] or watch on YouTube [[link removed]] for future episodes releasing every Wednesday.

If you or someone you know is an athlete, celebrity, or business leader, reach out [[link removed]] to be featured on an upcoming episode.

Conversation Starters The Athletic has been dismissed [[link removed]] as a defendant in a defamation lawsuit brought by suspended Los Angeles Dodgers pitcher Trevor Bauer. The Kansas Royals are embarking [[link removed]] on a “Community Listening Tour” to get feedback from the community about the team’s proposed $2 billion downtown stadium. From buzzer-beaters on the hardwood to Hail Marys in the end zone, Atmosphere Sports is bringing sports back to the center with scores, highlights, and more. Learn more [[link removed]].* Question Of The Day

Are you involved in the annual budget process for your department at work?

Yes [[link removed]] No [[link removed]] N/A [[link removed]]

Wednesday’s Answer

36% of respondents workout 1-3 times a week and 48% workout 4+ times.

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