Players are earning more than ever, but payroll distribution concerns remain. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
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Front Office Sports

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Super Bowl LVII was the third-most-watched edition of the Big Game in history — but a Nielsen survey reveals that the viewership was likely even higher than the official tally. The survey estimates that the average minute audience was 136 million — a 20% increase from the initially reported numbers.

Leagues

MLB Average Salary Hits Record $4.2M But Disparity Issues Linger

Rich Storry-USA TODAY Sports

Major League Baseball’s average salary is as high as it has ever been, but concerns remain about how payroll is distributed.

MLB saw player salaries rise 14.8% in aggregate in 2022 to $4.2 million, reversing a four-year trend of declining player salaries. 

The New York Mets and the Texas Rangers led the trend, with the Mets giving their shortstop Francisco Lindor a 10-year, $341 million contract and ace pitcher Max Scherzer a three-year deal at a record $43.3 million annual value.

The Rangers have a well-paid middle infield after signing Corey Seager and Marcus Semien to deals worth a respective $325 million and $175 million.

Both teams continued spending in the most recent offseason, with the Mets handing out close to $500 million in guaranteed contracts after the Rangers signed away top pitcher Jacob deGrom in a five-year, $185 million deal.

Such signings widened the gap between big-spending teams and others such as the Oakland A’s and Pittsburgh Pirates, whose 2022 payrolls were a respective $50 million and $59 million, per Fangraphs.

Earlier this month, MLB commissioner Rob Manfred spoke about having “a more national product” to “produce more centrally shared revenue, which, in turn, we hope would reduce payroll disparities.”

He also floated the concept of “direct payroll regulation” and “minimum payroll,” which many took to mean a salary cap.

The MLBPA staunchly opposes a cap, a sentiment its executive director Tony Clark was quick to reiterate following Manfred’s comments.

Athletes

NFL’s Top Talent Agency Gets New Owners

Dak Prescott

Two venture capital firms are buying a majority stake in the NFL’s top talent agency.

Mastry Ventures and General Catalyst have acquired a stake in Athletes First, an agency that has represented eight Super Bowl MVPs and the most first-round NFL Draft picks for three consecutive years. 

The pair have bought out Dentsu, which purchased one-third of the agency in 2015 at a $50 million valuation. Athletes First founder Brian Murphy will remain CEO. 

With more than 450 clients, Athletes First’s roster includes Aaron Rodgers, Dak Prescott, Matt LaFleur, and Ryan Poles. 

It has negotiated more than $11 billion in contracts since its founding in 2001, including Deshaun Watson’s $230 million, five-year pact — the richest guaranteed-money deal in NFL history.

Mastry Ventures and General Catalyst plan to build new platforms for clients to “unlock new opportunities, build enterprises, and establish greater ownership across various industries.”

Mastry Ventures’ portfolio includes Dapper Labs, GOAT, Zoom, and Uber, among others. General Catalyst “has helped support the growth” of companies including Airbnb, Hubspot, and Snap.

World

Japanese Ad Giant Indicted on Bid-Rigging Charges for Olympics

Yukihito Taguchi-USA TODAY Sports

Japan’s largest advertising agency is one of six companies indicted for allegedly rigging bids for the Tokyo 2020 Olympics and Paralympics. 

Dentsu Group, Hakuhodo DY Holdings, Tokyu Agency, Fuji Creative Corporation, Cerespo, and Same Two, along with seven individuals, were indicted on Tuesday following months of investigations into the planning and sponsorship of the Games. 

They’re accused of rigging bids worth $320 million for Olympic “test events,” or dress rehearsals.

Roughly half of the 26 test events only had one firm bidding for each, resulting in contracts awarded with no competition. 

Dentsu president and CEO Hiroshi Igarashi reportedly admitted his firm’s involvement. Koji Henmi, former assistant chief of the sports department at Dentsu, was arrested on Feb. 8 for his alleged involvement in the bid-rigging. Last year, a former Dentsu executive was arrested in a separate probe.

In response, Dentsu claims it had set up a committee of outside experts to review and investigate the case, and Dentsu Japan’s CEO and other executives are set to return some compensation for six months.

If the allegations are proven, Tokyo Gov. Yuriko Koike has said she plans to seek damages from Dentsu and other organizers for driving up the hosting costs for Tokyo and taxpayers.

Law

NFL Lawsuit Claims Racism, Sexism, Retaliation

Ron Chenoy-USA TODAY Sports

The NFL and its main production arm, NFL Films, are facing a lawsuit that makes uncomfortable claims about its workplace culture and media practices. 

The suit was brought by former temporary human resources worker Victoria Russell, who alleges instances of workplace racism and sexism. 

Russell worked as a senior human resources coordinator with the NFL from October 2018 to April 2022, according to her LinkedIn profile, and was an assistant at NFL Films for nine months prior.

Russell, a Black woman, alleged that she was denied raises, certain advancement opportunities, and dedicated workspaces that white and male employees had. She also said that the NFL retaliated by firing her after she complained to the league’s chief diversity officer.

She said that the firing came six months after a promotion, which she says was delayed, and without any prior performance warnings.

She also said that NFL Films tagged lewd content of cheerleaders and female audience members with descriptions such as “cheerleaders rear end,” and “naughty camera work.”

The NFL has denied Russell’s claims. Sources familiar with the league’s thinking told the Wall Street Journal that her contract was not renewed due to her lack of productivity.

With regard to her claims about NFL Films, league spokesperson Brian McCarthy said that it is common practice for images to be marked as “sensitive” so that they won’t be used in future content, and that some of Russell’s descriptions were inaccurate.

Conversation Starters

  • In news provided exclusively to Front Office Sports, La Liga’s North American venture with Relevent Sports Group has added Panini to its $12 million partnerships portfolio. Panini will be the presenting partner for the eLaLiga U.S. Challenge — the sports collectibles publisher’s first-ever gaming deal with a sports league.
  • Charlie Baker will take the reins as NCAA president on Wednesday after Mark Emmert’s decade-long tenure
  • Tom Brady and Netflix are reportedly in talks to host a comedy special called “The Greatest Roast of All Time.”
  • Kansas football has announced plans for a new locker room and weight training facility as part of a larger $350 million football renovation plan. Take a look.
Front Office Sports Today

They Said What?

Major-League-Soccer

Brace Hemmelgarn-USA TODAY Sports

“The competition continues to get better, the quality of play gets better, more foreign players are coming in … There is no ceiling to it, is what I am trying to say.”

— Chris Canetti, president of the Houston 2026 World Cup bid committee, on Major League Soccer’s growth potential. For more on that and the World Cup, check out the latest episode of Front Office Sports Today.

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