SportsBall’s Post

💲 Sports: King of the Buck When we talk about sports league revenue, it’s widely known that the NFL is top of the table – and by quite a long shot. 💰 It’s estimated that last season, the NFL’s 32 teams garnered a combined total of ~$21bn. That’s 70% higher than the NBA and MLB brought in. Now, when we talk about sports revenue, the numbers are always high. But let’s put that figure into perspective; 🏀 The NBA Revenue (2023/24): ~$11.3bn ⚽ The Premier League Revenue (2022/23): ~$7.9bn 🏎️ Formula 1 Revenue (2023): ~$3.2bn So where does the gap come from? 📺 Television deals. During the NFL season, games get broadcast on Mondays, Thursdays and Sundays. Being the most viewed sport stateside, media companies go deep into the pockets for the rights to broadcast them. As it currently stands, the NFL has broadcast deals with Amazon, CBS, ESPN/ABC, Fox and NBC which run until 2033. And you guessed it – there is a hefty price tag attached to that. 🔥 +$100bn to give you an idea. But the NFL is being more innovative when it comes to unlocking more revenue too. Back in August, NFL owners approved new ownership rules in a 31-1 ruling, whereby owners can offload up to 10% of their common equity to private equity firms. The rules; 1️⃣ Min buy: 3% ; Max buy: 10% 2️⃣ No single fund can invest in more than 6 teams 3️⃣ Minimum hold period: 6 years 4️⃣ Funds need to have $2bn in committed capital 5️⃣ No one team can represent more than 20% of a single fund So you can expect this revenue figure to continue it's upwards trajectory. #sports #sportsbusiness #sponsorship #rights

✅🖥️ Crain’s Chicago Business (6/3): “The Chicago Sports Network is the name of the venture launching in October. The channel will stream more than 300 live games, post-game coverage and 24/7 multi-sport programming, according to a statement from the network. Both the Blackhawks and the Bulls will have their preseason games aired in October, while the Sox will make their debut on the network in 2025. The network is a partnership between the teams and Nashville-based Standard Media, which owns four local stations in Nebraska, Rhode Island, Missouri and Kentucky. The move comes as the teams' contracts with NBC Sports Chicago are set to end on Oct. 1. NBC has been the teams' broadcast channel since 2004. The network lost the Chicago Cubs when the team signed a deal with Sinclair Broadcast Group to create the Marquee Sports Network in 2020. The Chicago Tribune first reported on the aim to launch the new regional sports network in May detailing the many hurdles the teams seem to have overcome, including having to get the NBA, MLB and NHL to sign off on the plan and to work out complicated rights fees as cable providers such as Comcast have "blacked out" regional sports networks due to contract disputes.” 🏀🏒⚾️⬇️ #streamingtv #ctvadvertising #livesports https://lnkd.in/e-zmfan3

The Varsity * Look for Charter and Paramount to sign short-term extension today, which is a positive harbinger that a deal is in sight. Paramount will make its P+ ad-supported tier available to Charter basic subscribers. Charter has a similar arrangement with Disney and D+.  * DirecTV agreed to Diamond's "glide path" strategy that will migrate the Bally Sports RSN's to a digital tier over the next couple of years. Diamond's Comcast deal ends today and unless they agree to a long-term extension, it’s possible that the Bally Sports R.S.N.s will be dark on Comcast systems on Wednesday. And if Diamond is unable to work out a “glide path” deal with Comcast, it’s unlikely that the company will exit bankruptcy. * One of the biggest questions in the NBA rights auction centers on WBD’s matching rights, and how they might be deployed. NBCU has said that if it wins a package, it will carry some NBA games on its broadcast network. WBD doesn’t have a broadcast network, and the company has apparently not reached out to other broadcasters about a potential joint bid. * The NFL is negotiating to take an equity investment in ESPN, but talks have not progressed much in the past couple of months. ESPN is also talking to the NBA, MLB, and NHL, along with major technology companies and telecom players. * RIP Tom Phillips, a man who ran a newsletter company in suburban Maryland that hired me as a young reporter in 1994, where I first covered all aspects of the cable industry. Also, women’s sports has gotten so popular, so fast, that marketing efforts around it have been slow to catch up. The effort to usher more corporate professionalism into the women’s sports space continues on Thursday with the Sports Innovation Lab’s NewFront, in New York. Invites were sent out to more than 200 media buyers and brand marketers.

Curious how U.S. Sports Leagues make money? Per this chart from Visual Capitalist, central revenue, which largely consists of media and broadcast deals, is the most important revenue source for the NFL and NBA. while the NHL and MLB rely more on ticket sales as a primary revenue source. Since 2018, the NFL has grown from 61 of the top 100 most watched TV broadcasts to 93 in 2023. Adding to this, streaming platforms are increasingly signing contracts with the NFL, including Netflix paying $150 million to stream two 2024 Christmas games and Amazon paying $1 billion to stream Thursday night games exclusively on digital. Additionally, the NBA recently signed an 11-year $76 billion deal with ESPN, Amazon, and NBC that is worth more than double its previous contract. Moreover, this trend of significantly increasing media deal values is seen across every major league amid high consumer demand for professional sports. For the MLB, local media is a vital source of revenue, with nearly a quarter of revenues coming from this source—more than any other sport by far. In fact, each day an average 2.3 million viewers watch MLB games on regional sports networks. Meanwhile, the NHL makes the highest share of revenue from seating and suite sales compared to major sports leagues, at 44%, due to it attracting less lucrative TV contracts. https://lnkd.in/e_Uqj8Zf #valuation #NFL #NHL #NBA #MLB

The U.S. sports betting industry generated $11 billion in revenue in 2023, a 45% percent increase from 2022, with legalization spreading to 38 states, up from just one in 2018. Notably, DraftKings has emerged as one of the few successful SPACs. Americans predominantly bet on the NFL (81%), NBA (54%), and MLB (44%), yet 93% of sports bettors lose money, and the NFL has suspended 10 players for gambling over the past two years, with the NBA recently suspending 1 player for life. Media companies are evolving into sportsbooks (e.g., ESPN), while sportsbooks are becoming media companies (e.g., FanDuel). This crossover is evident in the increased betting handle on BetMGM, which saw this year's LSU-Iowa NCAA matchup shatter records on the women's side. Considering these trends, how do you think the integration of media and sports betting platforms will shape the future of fan engagement and sports entertainment?

As the National Basketball Association (NBA) Finals begin, the league is finalizing a $76 billion, 11-year media deal, solidifying NBCUniversal and Amazon as key players. NBC will pay $2.5 billion annually for about 100 games, and #Amazon's $1.8 billion deal includes regular-season games, the in-season tournament, and "play-in" games. ESPN’s $1.5 billion deal reduces its game count but includes its new streaming service, Venu. Warner Bros. Discovery (WBD), a long-time #NBA broadcaster, is out for now but hopes to reach a new agreement. Despite CEO David Zaslav's skepticism about #NBCUniversal's spending, WBD reiterated its NBA commitment. Mark Zamuner, president here at Juice Media, believes fragmented media deals benefit content producers and the league, potentially increasing rights fees 2.5 times. He also sees significant growth potential in women’s sports. “To see the value generation of women’s sports and its growing audience—that is greatness to see,” Zamuner said. “Long-term lockups and value generation, especially with consumer choice, offer great upside.” NBA sponsorship revenue rose to $1.5 billion this past season, up 7%. The in-season tournament drew 58 brands, with major sponsorships for future events.  Read more here: https://lnkd.in/gR57WhEB

Zaslav's NBA Missteps May Be Savvy In The Long-Term... if the NBA has an opt-out clause Warner Bros. Discovery subdivision Turner Sports has held the rights to broadcast NBA games since 1988—nearly 40 years—and now seems poised to lose them to a combination of NBC Sports and Amazon (Disney is renewing its existing agreement with the NBA). Without the NBA, TNT will have less value to both Warner Bros. Discovery and its linear distribution partners. “About $2.5 billion in fees from pay-TV operators and $700 million or so in advertising sales”, according to Bloomberg’s Lucas Shaw, will be at risk. Without TNT, the Warner Bros. Discovery media conglomerate’s economics of scale and “free money”—recurring monthly revenues from pay-TV distributors across millions of homes and at a low churn rate—are projected to inevitably decline. With less scale, the more compelling the rationale is for Warner Bros. Discovery's walled gardens to become more permeable, if not for the media conglomerate to be broken apart. In this sense, Warner Bros. CEO David Zaslav’s failure to renew his NBA deal is poised to be the proverbial straw that broke the camel’s back of the Warner Bros. Discovery media conglomerate. But, there is a case to be made that Zaslav is being a bit savvier than his media critics suggest. If the biggest sports rights deal in the marketplace—the NFL receiving $110 billion across five partners—has a growing likelihood of being terminated in 2029 by the NFL via an opt-out clause, then why wouldn’t the NBA’s deal include a similar clause with similar odds of being used? And if you are Zaslav and his management team, why would you take that risk? [click on comment below to read the full essay] ✳️Key Takeaway✳️ If the NBA is indeed following the NFL’s playbook, it will likely opt out of its new deals with NBCUniversal and Disney/ESPN merit within the next seven years. Whether intentionally or unintentionally (or both), Warner Bros. Discovery's loss of NBA distribution rights actually may be smarter in the long run. Warner Bros. Discovery National Football League (NFL) National Basketball Association (NBA) The Walt Disney Company ESPN

DFS 2.0 is bridging a gap in the sports entertainment space. Just look at the wild success of Fliff Inc this NFL season: Within the first WEEKEND of the NFL season, active user numbers reached six figures. This is the first NFL season where we’re seeing real competition in the DFS 2.0 space, and it’s clear why: these products meet the needs of both fantasy players and would-be sports bettors. They operate under fantasy regulations, giving them broader reach across the U.S., but offer a lighter, more accessible experience than traditional sports betting. It captures the excitement of placing a bet without the high barriers to entry. That leads to a surge in users, even in markets where sports betting is illegal, and surprisingly, a growing audience in states with regulated betting, too. These products are easier to engage with and less intimidating than placing a real-money wager. The massive growth we’ve seen from brands like Fliff sends a clear message: whether sports betting is legal or not, there’s a huge demand for a more casual, entertainment-focused experience. And DFS 2.0 is filling that gap perfectly.

I was just reading an article about ESPN Bet planning to launch in New York, the largest U.S. betting market. Penn Entertainment is buying Wynn Interactive’s mobile sports betting license for $25 million, after missing out on licenses awarded in 2021. This move could potentially make ESPN Bet a formidable competitor in the sports betting market. What are your thoughts on ESPN Bet entering the New York market, and how do you think it will impact the sports betting landscape? https://lnkd.in/etSyd2kF Blue Chip Sports Management Marymount Sports X Marymount Storytellers PENN Entertainment, Inc DraftKings Inc. ESPN CBS MGM Flutter Entertainment Plc National Football League (NFL) National Basketball Association (NBA) Nike #ESPNBet #SportsBetting #NewYorkMarket #PennEntertainment #WynnInteractive #Competition #SportsIndustry #MarketExpansion #SportsGambling #BusinessStrategy #MarketImpact #SportsFans #IndustryInsights #SportsBusiness #ESPN #BetOnSports #SportsNews #MarketGrowth #BusinessDevelopment #ESPNBetLaunch #SportsBetters #MarketEntry #IndustryCompetitors #Sports

NBA Rejects Warner Bros.’ Bid to Match Amazon’s Offer The high stakes roller-coaster that was the bidding war for rights to a new NBA games package between Amazon Inc. ($AMZN) and Warner Bros. Discovery ended after the stock market closed today. In a statement the NBA said, “Warner Bros. Discovery’s most recent proposal did not match the terms of Amazon Prime Video’s offer and, therefore, we have entered into a long-term arrangement with Amazon.” The NBA’s dismissal of Warner’s attempt to secure a spot in the new rights packages, which have already been arranged for Amazon, Disney ($DIS), and NBCUniversal ($CMCA). These packages are set to commence after the 2024-2025 season. To remain a contender, Warner might need to pursue legal action, seeking a court ruling that the NBA has denied its alleged right to match the terms of a package that includes games it currently broadcasts under its existing agreement, which expires at the end of the next NBA season in 2025. On Monday afternoon it looked like the tide was moving Warner’s way when several news outlets reported that Warner had matched Amazon’s offer on the NBA rights. However, Warner Bros. ($21B mkt cap) maneuverability was limited as they clearly did not have the buying power that online retailing behemoth Amazon ($1.94T mkt cap) has.  The package loss also heeds the probable end of one of sports TV’s most popular shows, TNT’s “Inside the NBA,” featuring Charles Barkley, Shaquille O’Neal, Ernie Johnson and Kenny Smith, at the end of the 2024-25 season. Warner shares have drifted 2.75% lower in the afterhours trading session and are off 25% year-to-date. Shares of Amazon are 0.50% higher in the Ahs session and have gained 19% year-to-date. #NBA #StockMarketNews #equitytrading #Basketball