This week's news roundup showcases the continuing surge in sports fan engagement, evidenced by unprecedented viewership on both traditional and direct-to-consumer (DTC) platforms, which reinforces the fact that sports is the most valuable IP across the media and entertainment sectors. This week's coverage also highlights the impact disruptive technology is having on the industry, further enabling properties to innovate and improve consumer experiences and athletes' performance.
- The FA Cup third-round match between Liverpool and Arsenal on 7th January set a new UK television audience record for this stage of the competition, with 7.6 million viewers on BBC One and an additional two million streams on BBC iPlayer. This resulted in an average audience of nearly six million, capturing a 44% viewer share.
- This record surpassed the previous high for an FA Cup third-round match, which was 7.3 million viewers for the Liverpool-Everton game in 2020. This season has seen Liverpool and Arsenal involved in another record-breaking viewership event, with their 1-1 draw on 23rd December becoming the most-watched Premier League game in the US.
- Barbara Slater, director of BBC Sport, expressed excitement over the record audiences for the FA Cup and emphasized BBC’s commitment to covering the tournament across various platforms. Liverpool's next FA Cup match is against either Norwich City or Bristol Rovers on 27th January, and they are scheduled to face Fulham in the EFL Cup on 10th January.
- The FOX broadcast of the Green Bay Packers' 48-32 Wild Card Playoff victory over the Dallas Cowboys attracted significant viewership, averaging 40 million viewers and peaking at 43.5 million. This makes it the fifth most-watched Wild Card game ever and the second most-watched game of the NFL season, following the Cowboys' Thanksgiving Day game.
- Compared to previous years' Wild Card games, this match saw a 20% increase in viewership over last year's Giants-Vikings game and surpassed the Cowboys' previous Wild Card win against Tampa Bay. However, it fell short of the 41.5 million viewers for their 2022 Divisional Round loss to the 49ers.
- The game featured a dominant performance by the Packers, who led 27-0 at one point and saw Aaron Jones score three touchdowns. The Cowboys, who have not advanced past the Divisional Round since 1995, suffered another playoff exit, leading to speculation about head coach Mike McCarthy's future with the team, with scheduled meetings and exit interviews underway.
- The Dolphins-Chiefs game on Peacock attracted an average of 23 million viewers, making it a record audience for a streamed NFL game. This success indicates that streaming exclusive playoff matches might become more common. NFL EVP Hans Schroeder mentioned that viewership is a key factor in determining future streaming exclusives. Currently, each NFL broadcast partner gets at least one wild-card game, with future games potentially being bid on by various streaming services like Peacock, Paramount+, Amazon, or ESPN+.
- The industry is recognizing this shift towards streaming as a significant moment in media. Peter King from NBCSPORTS.com expressed surprise at the viewership increase compared to a previous year's game, while THE ATHLETIC's Richard Deitsch and the WALL STREET JOURNAL’s Jason Gay suggest that streaming will play a growing role in NFL broadcasts. Dylan Byers of PUCK.news views this as a strategic business move, leveraging popular content to promote streaming platforms.
- The game's streaming on Peacock mostly avoided technical issues, presenting a standard HD NFL viewing experience online, which contrasts with previous issues in live sports streaming. Social media reactions were mixed, with some seeing this as a loss for sports fans due to additional costs and others recognizing it as an inevitable evolution in sports broadcasting.
- The Korean Baseball Organization (KBO) will implement the Automated Ball-Strike System (ABS), often known as robot umpires, for the 2024 season. This decision follows a period of testing the system in their minor league, the Futures League, since 2020.
- ABS utilizes pitch-tracking technology to accurately determine the baseball's position as it crosses the plate and whether it is within the hitter’s strike zone. The system then conveys this information to an umpire via an earpiece.
- The introduction of ABS in the KBO was officially approved by the organization's board of directors after initially announcing plans for it in October. Meanwhile, Major League Baseball (MLB) continues to test a similar system in its minor leagues, including Triple A, but has no plans to introduce it in the major leagues in 2024.
ECHL to use player tracking tech from Drive Hockey Analytics for All-Star Classic (Building Businesses Around Disruptive Technology / Transformational Growth Levers)
- The ECHL, a professional ice hockey league affiliated with 28 NHL teams, will introduce player-tracking technology from Drive Hockey Analytics during the All-Star Classic on January 15. This technology involves players wearing sensors that gather data on their skating speed, endurance, acceleration, and on-ice position.
- Drive Hockey Analytics, established in 2018, originated as a spinoff from the MAKE+ prototype lab at the British Columbia Institute of Technology. It aims to provide detailed metrics on player performance including shifts, positioning, and other tactical and technical aspects.
- The technology has previously been used in sports contexts, including by the USHL in its Player Development Series in the summer. Drive Hockey Analytics also participated in the Future of Sport Lab’s incubator program, graduating in 2022.
- Major League Soccer has launched the MLS Innovation Lab to integrate new technology and engage digitally savvy fans. The first cohort includes six startups specializing in areas such as player development, fan engagement, and media technology. This nine-month program provides opportunities for these startups to pilot their products at league-affiliated events.
- The inaugural group in the MLS Innovation Lab features a diverse range of technologies, including cognitive reaction training tools, AI translation, gamified mixed reality, precision GPS tracking, automated live sports video cameras, and AI streaming with match analysis. These startups have been selected for their potential impact on various aspects of soccer, from training to fan experience.
- The program, inspired by Commissioner Don Garber and Deputy Commissioner Gary Stevenson, aims to position MLS as a leader in sports innovation. The MLS Innovation Lab offers a unique testing environment, extending from professional to amateur levels, allowing startups to trial their products in real-world scenarios. This initiative reflects MLS's commitment to advancing technology in soccer and enhancing the overall experience for players and fans.
- Qiddiya Investment Company (QIC) has announced the Prince Mohammed bin Salman Stadium as part of Saudi Arabia's Vision 2030 'giga-projects'. This 45,000-seat multi-functional stadium, designed by Populous, features a retractable roof, pitch, and LED wall, and will serve as the home ground for football clubs Al-Hilal and Al-Nassr. QIC has formed 20-year strategic partnerships with these clubs, underlining the stadium's significance in Saudi's sports infrastructure.
- The stadium is a proposed venue for the 2034 FIFA World Cup, reflecting Saudi Arabia's anticipated role as the event's host, and is also lined up for the 2027 Asian Cup. These selections highlight the country's growing presence in the global sports arena. The stadium's cutting-edge design, including holographic technology and eco-friendly features like a cooling lake, aims to provide a unique fan experience and operational efficiency.
- The stadium is a central element of Qiddiya City, a major urban development project featuring a gaming and esports district, a speed park track, golf courses, a water theme park, and Six Flags Qiddiya. With an aim to become a global entertainment, sports, and cultural destination, Qiddiya City encapsulates Saudi Arabia's ambition to be at the forefront of these sectors, offering a diverse range of attractions and facilities.
- The Pop-Tarts Bowl became a significant attraction during the Bowl Season, not just for the game itself, which saw Kansas State defeat North Carolina State, but also for its unique and engaging marketing activations. Pop-Tarts' edible mascot and various promotional activities led the game to become the most-watched postseason matchup through December 30, with 4.3 million viewers and significant social media impact, generating 28.6 million views across various platforms.
- The success of Pop-Tarts' sponsorship at the Bowl game, characterized by memorable moments like the mascot being lowered into a toaster and humorous interactions with the referee, marks it as the largest earned media campaign in the company's history. This innovative approach to engagement resonated with the brand's target demographics, primarily millennials, young adults, and teens, utilizing humor and interactive elements.
- The Pop-Tarts Bowl exemplifies the importance of activations in sports partnerships, as seen with other successful examples like Duke's Mayonnaise Bowl. These activations, going beyond mere brand visibility, involve engaging and memorable in-person experiences that significantly boost the return on investment for the sponsoring brands. The success of such sponsorships may inspire other consumable products to explore similar strategies in the sports industry.
- Penn State has finalized a 15-year multimedia rights partnership with Playfly Sports, focusing on commercial growth through fan engagement, content creation, and enhanced game-day programming. The deal, which goes beyond traditional multimedia rights, is expected to be announced soon.
- The expanded partnership includes the development of a podcast network, membership-based services for fans, and activation around Penn State football game-day experiences. This approach is part of Playfly's broader strategy to offer a comprehensive range of services to its partners, like LSU and Michigan State, tailored to each university's unique needs.
- As part of the agreement, approximately 15-20 Playfly employees will work directly on the Penn State campus. The deal also involves collaboration with Penn State’s Happy Valley United Collective to explore Name, Image, and Likeness (NIL) opportunities, leveraging new workforce dynamics and strategies for monetization and fan engagement. This partnership replaces Penn State's previous arrangement with Learfield for multimedia rights.
- ESPN and the NFL are in advanced discussions for a potential agreement in which the NFL would receive an equity stake in ESPN. In exchange, ESPN, owned by Disney, would take control of NFL Media, including NFL Network, NFL.com, Red Zone, NFL Films, and NFL+. This deal is significant enough that NFL owners and the Players Association are being informed due to revenue-sharing stipulations in the Collective Bargaining Agreement.
- The partnership is viewed as a strategic move for the long-term viability of ESPN, particularly as the network plans to shift to a direct-to-consumer model by 2025. This alliance with the NFL, the most powerful sports league, could bolster ESPN's position in the sports broadcasting landscape.
- The potential agreement could see NFL Network fall under the Disney umbrella, enhancing synergy between ESPN's extensive league coverage and NFL Media assets. This move might also lead to better carriage arrangements for NFL Network. While ESPN currently offers ESPN+ as a separate service, the network aims to provide all its programming directly through its app or continue through cable or satellite providers. The deal is still in progress, with both ESPN and the NFL yet to comment officially.
- The United Soccer League (USL) has sold the Las Vegas Lights franchise to a consortium led by ex-MLB star José Bautista, who will become the chairman and governor of the club.
- Since retiring from baseball, Bautista has ventured into the business realm, being involved in various successful companies such as Marucci Sports, Canada Goose, and Endy Sleep.
- Besides his new role with Las Vegas Lights FC, Bautista is currently a partner and senior advisor at Aquilance, a financial management firm; the Lights FC team itself debuted in the USL Championship in 2018.
- NWSL Commissioner Jessica Berman announced that the process to select a 16th team for the league is in progress, with a possible announcement later this year. This team is expected to start playing in 2026, following the addition of a Boston-based expansion team.
- The league is welcoming two expansion teams this season: Bay FC in the San Francisco Bay Area and the Utah Royals, marking a significant expansion phase for the NWSL.
- Berman highlighted recent investments in the league, including a 40% increase in the salary cap to $2.75 million, emphasizing improvements in league infrastructure, facilities, staffing, and player benefits.
- Apex, an investment vehicle, has joined the ownership group of the San Francisco franchise in the TMRW Sports' TGL golf league, bringing four athlete investors on board: Formula One driver Alex Albon, Manchester City defender John Stones, and Olympic surfers Leonardo Fioravanti and Kanoa Igarashi.
- These athletes will help expand the golf team's fanbase and drive commercial value, participating in TGL events, pro-am tournaments, and charity events to promote the league. Apex's involvement builds on its existing investment in TMRW Sports and aligns it with other team co-owners like NBA stars Steph Curry, Klay Thompson, and Andre Iguodala.
- Apex's investment strategy focuses on leveraging diverse fan bases across sports to boost TGL's visibility and popularity. The company plans to actively promote the San Francisco franchise and the league, anticipating the inaugural season of TGL in January 2025.
- Diamond Sports has agreed to restructure with its major creditors, including a minority investment from Amazon, to emerge from Chapter 11 bankruptcy. This deal will allow Diamond, owner of 18 Bally Sports networks broadcasting 37 teams across MLB, NBA, and NHL, to continue operations despite previously missing a $140m interest payment and facing $8.6bn in debt.
- As part of the restructuring, Prime Video will become Diamond’s primary partner, offering direct-to-consumer access to stream local Diamond channels. This includes live games and additional programming for teams under Diamond's rights. Further details on pricing and availability will be announced later.
- The agreement includes $450m of debtor-in-possession financing from certain debt holders to support Diamond’s operations and reorganization. Additionally, Diamond has settled litigation with its parent company, Sinclair Inc., for $495m in cash and ongoing support services, aiding in Diamond’s separation from Sinclair and funding distributions to certain creditors.
- Utah Sport Commission President & CEO Jeff Robbins highlights Utah's unique public-private partnership in sports, with the state aiming to expand its sports portfolio, including efforts to attract MLB and NHL teams and to host the Winter Olympics again.
- Key initiatives include Big League Utah's campaign for one of the potential MLB expansion teams, led by the Larry H. Miller Company and a coalition of community leaders, and Jazz owner Ryan Smith's pursuit of an NHL franchise. Salt Lake City is also a contender to host the 2034 Winter Olympics.
- The Utah Legislature has allocated over $94M in the past six years for operating, maintaining, and renovating facilities from the 2002 Winter Games, with total investments expected to surpass $140M. These investments are seen as crucial for future sports developments, including potentially hosting major league baseball in Utah.
- The Charlotte Knights, a Triple-A Minor League Baseball team affiliated with the Chicago White Sox, are now officially for sale. Current owner Don Beaver is exploring a potential transaction, with the deal including the Knights and Charlotte’s Truist Field possibly reaching $100 million, a potential record for a MiLB team sale.
- Recent years have seen a surge in the sale of MiLB franchises, with significant deals like the $70 million acquisition of the Worcester Red Sox and the $90 million purchase of the Sacramento River Cats, reflecting the strong market for these teams. This trend is driven by steady attendance figures, profitable margins, and the fact that MLB parent clubs cover minor league player salaries.
- The increase in MiLB team sales follows MLB’s 2020-21 reorganization of the affiliated minor leagues, which resulted in the elimination of 40 franchises and stricter facility requirements for remaining teams. This has led to some team relocations and decisions by long-time owners to sell their franchises.
- Los Angeles FC (LAFC) has become the new majority shareholder of Swiss football club Grasshopper Club Zurich, while Grasshopper Fussball Stiftung retains a minority interest.
- This acquisition is part of LAFC's global strategy to build winning teams and develop young talent, complementing their investments in FC Wacker Innsbruck (Austria) and the Red&Gold Football venture with Bayern Munich.
- LAFC expresses excitement about the partnership, highlighting Grasshopper Club Zurich's prestigious history and talent development. LAFC appoints Harald Gärtner as their first managing director of Europe to oversee their European business strategy and investments.
- The German Football League (DFL) is in the final stages of selecting a strategic partner for a new media company, with CVC Capital Partners and Blackstone as the two remaining private equity firms in contention. This decision came after presentations in Frankfurt, where EQT, the third firm, was eliminated from the process.
- The DFL's decision-making process has involved reducing the number of interested parties from five to two, with financial details of the bids undisclosed. However, initial reports suggested EQT's bid was the highest at €1bn for a 7.9% stake, with CVC and Blackstone offering similar amounts for slightly larger stakes.
- The DFL emphasizes that the partnership will not involve selling DFL shares or affect the 50+1 rule, which limits commercial investor stakes in clubs. The focus is on long-term revenue growth rather than short-term financial gains, and the rights will revert to the league after the contract ends. The process, met with fan demonstrations, is expected to be completed by March 2024, ahead of the DFL's domestic media rights sales.
- The U.S. investment group, The Football Co. (TFC), led by Goldman Sachs Managing Director Peter Grieve as TFC Chair, is in talks with EFL Championship club Watford for a potential minority stake. The discussions value Watford between $190-250M, and there's a possibility of a full takeover in the negotiations.
- TFC, established in early 2023 under Grieve's leadership, aims to create a multi-club ownership model and includes several investors with executive experience in football, business, and marketing.
- The investment group has existing football connections, with Grieve co-owning Zimbabwe's Bantu Rovers and another group member linked to a Slovenian team. TFC has also made acquisitions in South America and the CONCACAF region. It's currently unclear if TFC is Watford's only potential investor or how close the talks are to a conclusion.
- Everton and Nottingham Forest are facing potential points deductions for allegedly breaching the Premier League's profitability and sustainability rules, having reported losses above the permitted threshold for the period up to and including the 2022/23 season.
- Both clubs have acknowledged the breach and the cases have been referred to the chair of an independent judicial panel, who will appoint separate commissions to determine sanctions. This process is independent of the Premier League and member clubs, and final decisions will be made public on the Premier League's website.
- Everton, which was previously docked ten points for a similar breach and is appealing that sanction, criticized the Premier League for penalizing them for the same financial periods. Nottingham Forest acknowledged the charge and expressed confidence in a fair resolution. The clubs have 14 days to formally respond, with hearings to be concluded within 12 weeks from 15th January, and appeals to be finalized by 24th May.
- Jim Ratcliffe has officially submitted an offer to acquire 25% of Manchester United's Class A shares at US$33 per share, as part of his deal to become a minority owner and take responsibility for the club's sporting operations. This includes an investment of US$300 million into the club's infrastructure.
- The offer by Ratcliffe's company, Trawlers Limited, for up to 13,237,834 Class A ordinary shares was confirmed in a SEC filing, representing a 27.69% ownership and 28.71% voting interest in Manchester United upon completion. The Class A share price significantly increased following the announcement of Ratcliffe’s offer.
- Raine Group, which facilitated the investment process for Manchester United, will earn US$31.5 million in fees. The filing also revealed that Sheikh Jassim bin Hamad al-Thani withdrew from the bidding process after failing to provide proof of funds. Meanwhile, Manchester United reported a financial loss in their first-quarter earnings, partly due to increased squad wages.
- The British and Irish Lions are set to launch a women's rugby team for a three-Test series against New Zealand in 2027, with an official announcement expected next week. This follows discussions that started in 2019 and advanced in 2021 with Royal London's support as the principal partner.
- The tour will include additional fixtures to prepare the team, composed of players from England, Ireland, Scotland, and Wales, for the series against the Black Ferns, although a complete schedule is yet to be confirmed.
- A feasibility study funded by Royal London showed positive results for forming a women's team, considering various aspects like rugby, branding, and logistics. The initiative, supported by significant interest, was steered by a group including former Lions and Wales wing Ieuan Evans, who emphasized the importance of this development in women's rugby.
- Bruin Capital invested approximately £30 million in Box to Box Films, the UK production company known for Netflix sports docuseries like 'Formula 1: Drive-to-Survive'. The investment aims to expand Box to Box into self-financed projects, digital content, and explore mergers and acquisitions.
- Box to Box, led by James Gay-Rees, Paul Martin, and Samantha Lawrence, has produced successful series for Netflix and Apple TV, including 'Break Point' and 'Make or Break'. They plan to release new docuseries 'Six Nations: Full Contact' and 'Sprint' on Netflix in 2024.
- Bruin, founded in 2015 and led by George Pyne, sees great potential in Box to Box for business growth and value creation. Bruin has a history of successful investments and sales in the sports industry, including the recent sale of Two Circles to Charterhouse Capital Partners for about £250 million.
- NBA star Giannis Antetokounmpo has launched Improbable Media, a production and brand consulting company focused on incubating and accelerating content creation for talent and brands. The company aims to produce content that provokes conversation, champions the underdog, and inspires commitment to self, family, and community.
- The venture is backed by Verance Capital and GPS Investment Partners, with investment from former NBA player Jay Williams, who is also a co-founder. Jonathan Stern will serve as the CEO of Improbable Media.
- Antetokounmpo's business portfolio already includes investments in the Milwaukee Brewers (MLB), Nashville SC (MLS), and the Los Angeles Golf Club (TGL). Improbable Media's next project is a feature-length documentary about Antetokounmpo titled 'Giannis: The Marvelous Journey', set to debut on Amazon Prime Video on February 19th.
- Eastside Golf, a lifestyle brand founded by former Morehouse College golfers Olajuwon Ajanaku and Earl A. Cooper, has secured a seed funding round of $3.4M led by EP Golf Ventures, a collaboration between Elysian Park Ventures and the PGA of America.
- The brand, established in 2019, aims to broaden golf's appeal and plans to introduce wholesale and women’s apparel lines. Eastside Golf is known for its collaborations with Air Jordan and the NBA and is represented by CAA Sports Licensing.
- The investment places Eastside Golf in EP Golf Ventures' portfolio, which includes companies like Dryvebox and Sensible Weather. EP Golf, with backers like Topgolf Callaway Brands and Richard Fairbank’s Gametime Capital, intends to invest $40M-$50M in over a dozen golf and golf-related startups.
- Apex Capital, an athlete-driven investment fund, has selected three startups for backing through its Impact Program, aimed at early-stage technologies in sports, media, and entertainment. The funding comes from its €50 million Elite Performance Fund and supports Hexis (a personalized nutrition app), Traits (an athlete profiling tool), and VRTL (a virtual fan experience platform).
- The Impact Program attracted over 500 applications from companies in 38 countries across six continents, demonstrating the program's global reach and appeal in the tech startup community.
- Apex Capital's athlete roster boasts prominent names like Trent Alexander-Arnold of Liverpool FC, Formula 1 drivers Lando Norris and Carlos Sainz, and Manchester United players Raphaël Varane and Christian Eriksen. The fund has previously invested in various companies including PlaySight, TMRW Sports, and ScorePlay.
- Denver Broncos linebacker Baron Browning is collaborating with startup Vestible, founded by two ex-Oklahoma State University football players, to sell shares in his future NFL earnings. Vestible plans to offer 60,000 to 100,000 shares at $10 each, giving investors a claim on 1% of Browning's sports salaries as a professional athlete.
- Browning is selling 1% of his current and future earnings, including the final year of his rookie contract and his next deal, in the first of Vestible's proposed series of deals with athletes. This new marketplace allows fans to invest in athletes, with share values expected to rise in anticipation of Browning securing a more lucrative contract after 2024.
- The concept, echoing past celebrity investment models like David Bowie's bonds and the Fantex platform, is pending approval from the Securities & Exchange Commission. Vestible's platform differs by offering a real asset (player salaries) and aims to provide a more direct connection between athletes and fans, with Browning set to receive 80% of the offering price, and the rest going to underwriters and Vestible.
