March 1, 2023
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The lucrative model of regional sports networks is crumbling — but the new Scripps Sports division could rescue the MLB, NBA, and NHL teams left hanging. In an FOS exclusive [[link removed]], executive Brian Lawlor talks to senior reporter Mike McCarthy about the diverse options his company can offer teams and leagues.
Markets Formula 1’s Huge Growth Drives Big Year for Liberty Media [[link removed]]
David Kirouac-USA TODAY Sports
Liberty Media rode the surging popularity of Formula 1, an uptick in revenue from the Atlanta Braves, and strong results from SiriusXM to a profitable fourth quarter and full year in 2022.
F1, which begins its 2023 season this weekend in Bahrain, grew [[link removed]] fan attendance 36% from 2019 to 5.7 million. F1’s full-year revenue rose 20% from 2021 to $2.6 billion, $1.2 billion of which was passed on to teams.
The racing series’ operating income more than doubled to $239 million.
Quarterly revenue dipped 8% to $568 million, which Liberty attributed to one fewer race in Q4 2022 than in the same period the previous year.
The Atlanta Braves, MLB’s only publicly traded team, saw revenues rise only slightly despite winning the World Series in 2021. The Braves were bounced out by the eventual National League pennant winner Philadelphia Phillies in the Division Series in 2022 — giving them only two postseason home games to the previous year’s eight.
The Braves saw average home game revenue rise from $6 million to $6.4 million, leading to a 4% increase to $588 million in total 2022 revenue. Increased operating expenses led to a $15 million loss on the year.
Liberty Media is set to split off the Braves into a separate stock listing called Atlanta Braves Holdings, Inc.
Markets Liverpool Returns to Profit After Two Straight Years of Losses [[link removed]]
Liverpool FC
Liverpool has returned to profit for the first time since the 2018-19 financial period — just as it looks for possible investors.
The Premier League club reported [[link removed])%20to%20%C2%A3594m.] a $128.8 million increase in revenue to $714.9 million for the period ending May 31, 2022, with a before-tax profit of $9 million.
Following the 2018-19 profit of $50.6 million, Liverpool posted losses of $5.8 million and $55.4 million for the 2020-21 and 2019-20 periods, respectively.
Media revenue fell $6 million to nearly $314 million, which was attributed to the longer 2019-20 season.
Commercial revenue increased $34.9 million to $297 million thanks to “strong growth in partnerships and the reopening of non-matchday operations with the global retail stores and stadium tour and museum centre [sic].” Eight new partnerships were struck during the period, and the team renewed its deal with EA Sports.
Meanwhile, matchday revenue jumped $99.8 million due to the return to full capacity.
Earlier this month, Liverpool principal owner John W. Henry clarified [[link removed]] that while Fenway Sports Group isn’t selling the club outright, it is talking with investors about a possible minority stake sale.
RedBird Capital Partners, which bought an 11% stake in FSG in 2011 for $640.7 million, has reportedly [[link removed]] held talks with FSG on increasing its stake.
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Markets UFC, Sports Give Endeavor Big Boost in 2022 [[link removed]]
Craig Kidwell-USA TODAY Sports
Endeavor’s owned sports properties segment has been a workhorse for the UFC and WME parent company.
The global sports and entertainment giant reported [[link removed]] $5.27 billion in full-year revenue, up from the $5.08 billion it reported the year prior, with its owned properties segment bringing in $1.33 billion — up 20% from $1.11 billion in 2021.
The growth is partially attributed to “increased media rights fees at UFC, as well as greater sponsorship, licensing, commercial PPV, and event-related revenue from more UFC events with live audiences.” UFC enjoyed record sponsorship sales volume and 21 consecutive sellouts during the year.
Revenue for Endeavor’s events, experiences, and rights segment reached $2.5 billion for the year, driven by experiences including the Miami Open, Super Bowl LVI, and NCAA March Madness.
Its representation segment for the full year fell nearly 23% in revenue to $1.5 billion, while net income reached $321.7 million.
Endeavor posted a fourth-quarter net loss of $225.7 million and a 16% decline in fourth-quarter revenue to $1.26 billion, attributed to the sale of its content business in January 2022. Excluding Endeavor content, revenue would have reportedly [[link removed]] increased 7% for the quarter.
In the three months ending Dec. 31, Endeavor reported a 9% increase in revenue for its owned sports properties segment to $301.4 million.
Endeavor anticipates 2023 revenue to fall between $5.83 billion and $5.98 billion.
Conversation Starters LIV Golf Series’ benefactor, Saudi Arabia’s Public Investment Fund, filed an amicus brief [[link removed]] calling a judge’s ruling — that the fund and chief Yasir Al-Rumayyan were subject to discovery in LIV’s legal battle with the PGA Tour — as “an extraordinary infringement on the sovereignty of a foreign state.” La Liga has tapped [[link removed]] Panini America as the presenting partner for the third edition of the eLaLiga U.S. Challenge. Jalen Carter, the 2023 NFL Draft’s potential No. 1 overall pick, is the subject [[link removed]] of an arrest warrant from an accident in January that left a team recruiting analyst and offensive lineman dead.
PRESENTED BY PITCHBOOK
Bringing the NWSL to the Bay
When Leslie Osborne [[link removed]] learned that Los Angeles would be getting its very own NWSL team – now Angel City FC – she knew if L.A. was getting a team, she had to do everything she could to bring a team to the Bay Area.
So for the last two and a half years, Osborne and her co-leaders of #NWSLToTheBay have been partnering with investors in Silicon Valley to make this dream a reality.
In the third and final episode of Driven with Michelle Wie West [[link removed]], in partnership with PitchBook, learn about Osborne’s experience attracting investors, raising funds, and bidding for an NWSL expansion team. Plus, Osborne’s own experience as an entrepreneur of Hustle Beauty and as a venture capital investor.
Watch the full episode [[link removed]] now.
What to Watch
The Cleveland Cavaliers (39-25) take on the Boston Celtics (44-18) on Wednesday at TD Garden.
How to Watch: 7:30 p.m. ET on ESPN
Betting Odds: Celtics -5 || ML -205 || O/U 219
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