In this week's newsletter, we spotlight the evolving trends in viewership across platforms, with a focus on how sports content consistently attracts and retains viewers. We also explore the shifting landscape of video consumption, driven by media companies adapting to consumer preferences, heralding a new era in media engagement.
- The Professional Women's Hockey League (PWHL) is experiencing a strong start in its inaugural season, drawing over 5,000 spectators per game for six teams, with Minnesota leading at an average of 8,658 fans.
- The league has attracted 50,856 fans across its first 10 games, selling jerseys and T-shirts rapidly. Its TV broadcasts, which are as polished as major men's sports, are aired on the same networks, enhancing the league's prestige.
- Playing some games in NHL venues and broadcasting on networks like Bally Sports North has given the PWHL significant visibility, surpassing previous women's pro hockey leagues. While acknowledging higher startup costs, league officials are committed to the long-term success and professionalization of the league.
- The Bills-Steelers AFC Wild Card game, rescheduled to a late Monday afternoon due to bad weather, attracted 31.1 million viewers on CBS, slightly up from last year's Dolphins-Bills game and higher than the 2022 Sunday CBS window viewership. The game achieved high local ratings in both Buffalo and Pittsburgh.
- FS1's studio shows saw a viewership boost following Wild Card weekend, with "The Herd" recording its best live audience ever and "First Things First" also drawing a significant viewership in its time slot.
- Fox's broadcast of a women's basketball game featuring Caitlin Clark garnered the network's third-best viewership for a women's college hoops game, while ABC's coverage of the Sprouts Farmers Market Collegiate Quad set a record for regular-season NCAA gymnastics meets on ESPN networks.
- Warner Bros. Discovery Sports reports a 13% year-over-year increase in Discovery+ audiences for the Australian Open, with live coverage in ten markets showing a 17% rise in minutes watched.
- Significant audience growth was observed in several markets, including Finland (45%), Denmark (26%), and Germany (24%), with the Eurosport app experiencing increased live match consumption, notably in Hungary (25%) and France (13%).
- Digital engagement extends beyond live coverage, with Eurosport.com seeing a 17% increase in unique users for general tennis content and a 49% rise in free video minutes watched, alongside doubled video views and engagement on Eurosport’s tennis YouTube channel and Instagram during the first week of the Australian Open. Warner Bros. Discovery anticipates this trend to continue as the tournament progresses into the quarter-final stage with several major European players.
- Rugby League Commercial (RLC) has launched SuperLeague+, a new global direct-to-consumer streaming service for the UK's top rugby league division, operated by Endeavor Streaming. This service will stream all 167 matches of the competition live internationally, starting with the season opener on February 15.
- In the UK and Ireland, 106 Super League games will be live on SuperLeague+, with the remaining 61 games available delayed and on-demand, complementing Sky Sports' extended rights to broadcast all six matches in each Super League round live for the first time, covering seasons 2024 to 2026.
- SuperLeague+ will offer a variety of subscription and pay-per-view packages, exclusive fan content like highlights, archive material, dedicated club sections, original programming, and extra viewing features like multi-view. This initiative is part of IMG's digital transformation strategy for Rugby League Commercial, aiming to expand the sport's reach and attract younger audiences.
- The shift from traditional cable bundles to individual streaming services has led to fragmentation in sports broadcasting, causing fans to subscribe to multiple services to watch all their favorite teams. This change has been challenging for regional sports networks (RSNs), which have been slow to adapt and are now trying to recoup lost revenues from declining cable subscriptions by launching streaming services, despite these digital subscriptions being less profitable.
- The concept of a New York sports bundle, encompassing multiple RSNs like MSG Networks and the YES Network, is seen as a necessary step to provide fans with more comprehensive content and potentially reduce subscriber churn. However, the economics of such a bundle remain challenging, with its success depending on pricing strategies and possible cooperation with Pay TV distributors.
- The re-bundling of sports content into more comprehensive streaming packages is seen as an essential evolution in media, with companies like Amazon potentially playing a role. This approach may not fully replace the profitability of the old pay TV model, but it's seen as a necessary step to make these streaming businesses viable and potentially profitable.
- Major League Rugby (MLR) has announced the addition of a new expansion club, Anthem Rugby Carolina (RC), which will join the league in the 2024 season. Anthem RC will play their home matches at American Legion Memorial Stadium, marking the return of a two-conference structure in the league.
- The introduction of Anthem RC, along with the Miami Sharks, comes despite the recent loss of the New York Ironworkers and the Toronto Arrows from MLR. This expansion is part of a strategic partnership between MLR, USA Rugby, and World Rugby, aiming to strengthen the sport's growth in the US ahead of the Rugby World Cups in 2031 and 2033.
- MLR CEO Nic Benson expressed enthusiasm about the launch of Anthem RC, highlighting its significance in promoting rugby in the US. This move is seen as a critical step in providing a clear pathway for player development and increasing opportunities for USA Rugby as the country prepares for upcoming Rugby World Cups. The 12-team 2024 MLR season is scheduled to start on March 2nd.
- Lionel Messi's signing with Inter Miami CF has significantly boosted Major League Soccer's (MLS) visibility and appeal. His arrival coincided with key league initiatives like an Apple streaming deal and the Leagues Cup tournament. Messi's presence attracted celebrities to games and drove a substantial increase in Inter Miami's revenue, along with a positive financial impact on other MLS clubs.
- The average value of MLS teams has risen to an estimated $678 million, with four clubs surpassing the $1 billion valuation. The league's overall estimated revenue increased by 27% last season, primarily driven by Messi's influence, more matches, and a new club addition. Local revenue constitutes the majority of this total, and the league has incentivized teams to boost revenue by reducing the share of ticket revenue collected by MLS.
- Looking ahead, MLS faces challenges and opportunities in retaining the new fanbase attracted by Messi's presence, especially with upcoming major soccer events like the 2024 Copa America and the 2026 men’s World Cup in the U.S. The league is considering adjustments to roster rules and exploring funding avenues to attract more star players, while teams are implementing strategies to convert new fans into long-term supporters.
- Ryan Smith, owner of the Utah Jazz, has announced his Smith Entertainment Group's (SEG) bid for an NHL expansion franchise, emphasizing the importance of formalizing Utah's interest with a concrete plan. SEG has not yet started a process at the NHL Board of Governors level, but there appears to be a positive relationship developing with NHL officials.
- Smith and SEG are focusing on acquiring an NHL expansion team for Utah, rather than considering relocating existing teams like the Arizona Coyotes. This approach aligns with their strategy to support the league in any possible way, with expansion being a natural process for this.
- The bid for an NHL team in Utah has gained momentum and is moving into a new phase, with strong support and interest from various stakeholders. The prospect of adding one or two new franchises to the NHL is seen as almost inevitable due to the potential for substantial expansion fees, and cities like Salt Lake are actively pursuing bids to support their case.
- The top 20 clubs in the 2022/23 Money League generated a record €10.5 billion in total revenue, a 14% increase over the previous year and higher than pre-pandemic levels. This growth was driven by record matchday revenues of €1.9 billion, with 13 of the top 20 clubs reporting their highest-ever matchday income, particularly in Bundesliga, Serie A, Ligue 1, and La Liga.
- Commercial revenue also reached a record high for Money League clubs, totaling €4.4 billion in 2022/23, a 16% increase from the previous year. This revenue stream now represents the largest income source for these clubs, with significant growth attributed to improved retail sales, non-matchday event revenues, and the recovery of sponsorship income affected by the pandemic.
- Broadcast revenue saw a modest increase of 5%, with average broadcast revenue for Premier League clubs rising due to a 30% increase in the value of the league's international broadcast rights. However, growth in broadcast revenue was limited overall due to existing domestic broadcast cycles in Germany, Italy, and France, and flat new domestic rights cycles in England and Spain. Private equity investment, such as CVC Capital Partners' investment in Ligue de Football Professional, provided additional revenue boosts for some clubs.
- The German Football League (DFL) is in the final stages of selecting a strategic partner for the Bundesliga, having narrowed down the choice to either CVC Capital Partners or Blackstone. This decision follows a unanimous agreement to continue negotiations with both firms after they, along with EQT, presented improved proposals in January.
- The DFL is selling a stake of up to 8% in its media and commercial rights business, with the partnership expected to span a maximum of 20 years. The deal is projected to be valued between €800 million and €1 billion. The primary focus of this partnership will be on enhancing the league's digitalization and internationalization.
- The process of selecting a private equity partner has been controversial among fans, with numerous groups expressing opposition and protests expected at stadiums. This development follows similar moves in European football, like LaLiga's €1 billion investment deal with CVC for infrastructure projects.
- Russian billionaire Dmitry Rybolovlev is considering selling his majority stake in AS Monaco, a French Ligue 1 football club, and has engaged Raine Group as an advisor for the potential sale. Rybolovlev acquired 66% of the club's shares in 2011 for just $1 when the club was in France's second tier, with the Grimaldi ruling family of Monaco holding the remaining shares.
- Since Rybolovlev's acquisition, AS Monaco has achieved significant success, including promotion to Ligue 1 and winning the French title in 2017. The club is now open to either a total or partial divestment, with no guarantee of a transaction's conclusion following this strategic review.
- Ligue 1 clubs have become increasingly attractive to foreign investors in recent years, with several clubs being acquired by American and other international investors. Examples include Arctos Sports Partners acquiring a stake in Paris Saint-Germain, BlueCo buying a majority stake in RC Strasbourg, Bill Foley investing in FC Lorient, and John Textor acquiring Olympique Lyonnais, among others.
- Sony Pictures Networks India (SPNI) terminated its proposed US$10 billion merger with Zee Entertainment, citing that the merger conditions, including the closing date of 20th January, were not met. Sony also expressed concerns over Zee's financial performance and leadership issues, particularly the future role of Zee CEO Punit Goenka and an ongoing investigation into fraud allegations against him.
- Zee Entertainment disputes Sony's claims and is considering legal action. They argue that all necessary steps for the merger were taken in accordance with the merger cooperation agreement and regulatory approvals. Zee also asserts that CEO Punit Goenka was willing to step down for the merger's success.
- In response to the merger's cancellation, Sony is reportedly seeking a US$90 million termination fee from Zee, who categorically denies any breaches of the merger terms. Zee plans to explore all available options to protect its stakeholders' interests, including potential legal action.
- Saudi Arabia is showing interest in investing in cricket, possibly in The Hundred or the Indian Premier League (IPL), rather than setting up its own domestic Twenty20 competition. This shift in focus is due to an International Cricket Council (ICC) ruling limiting new domestic events to four overseas players per team and requiring compensation to players' parent clubs. ECB Chairman Richard Thompson suggests that Saudi Arabia might first invest in bringing IPL games to the Middle East, following their model of hosting established competitions.
- The England and Wales Cricket Board (ECB) is not selling The Hundred but is open to the idea of teams being sold off or entering joint ventures, with significant interest from various investors, including potentially Saudi or Indian money. The ECB plans to transfer ownership of the eight teams in The Hundred to host clubs next year, allowing them to sell stakes to investors. IPL teams are also interested in investing, with Delhi Capitals reportedly close to acquiring a major stake in Hampshire County Cricket Club.
- The Hundred is considering adding two more teams for the next domestic broadcast cycle in 2028, and there's a significant increase in wages for players, especially women. The top women players in The Hundred will now be paid UK￡50,000, a significant increase from last year. Despite this, the ECB has not committed to equal pay by 2025, as recommended by the Independent Commission for Equity in Cricket, although the pay gap is narrowing.
- Saudi Arabia's Public Investment Fund (PIF) has entered into a multiyear partnership covering Formula E auto racing, Extreme E off-road racing, and E1 powerboat racing, marking the first time one sponsor has backed all three formats. This deal, under the Electric 360 branding, aims to enhance the visibility and development of these electric motorsports events.
- PIF already has significant stakes in these sports: 5% in Formula E and 50% in both Extreme E and E1. Saudi Arabia has hosted Formula E races since 2018 and will debut the E1 powerboat racing in Jeddah in early February. This move aligns with the country's broader strategy to diversify its economy and develop sports as a key sector.
- The partnership reflects Saudi Arabia's commitment to investing in sports and entertainment for its citizens, contributing to the country's GDP growth and diversification away from oil dependency. PIF's portfolio includes investments in various sports like golf, tennis, soccer, and boxing, and the country is also showing interest in manufacturing electric vehicles.
- Two Circles, a data-driven sports marketing agency, is set to be taken over by Charterhouse Capital Partners, a UK-based private equity firm, in a deal valued at around ￡250 million. This acquisition is expected to catalyze a series of further acquisitions by Two Circles, with a shared vision for growth between the company's senior management and the incoming owners.
- Under previous ownership by Bruin Capital, Two Circles expanded through acquisitions of TRM Partners, LiveWire Sport, and Sports Ink, and opened an international office in Melbourne. The agency plans to continue expanding its geographical footprint, with the first post-takeover acquisition expected by spring. Target markets for growth include Germany and India, where Two Circles currently has a limited presence.
- Two Circles has a track record of robust organic profit growth, with recent revenue growth from ￡36.9m in 2021 to ￡55.4m in 2022, and operating profit increasing correspondingly. The company is diversifying its business models through joint ventures and partnerships, enhancing revenue streams across sponsorship, licensing, ticketing, and hospitality. The current leadership team, including co-founder Gareth Balch, will remain post-takeover, with a focus on putting fans at the center of the sports industry to drive growth and compete with other entertainment mediums.
- Skydance Media, led by David Ellison, has made a preliminary takeover bid for Paramount Global, a major media conglomerate that includes CBS, Paramount+, and various cable channels like MTV, Comedy Central, and Nickelodeon. Ellison has initiated discussions about merging Skydance with Paramount Global to form an enlarged company.
- The deal would give Ellison control over CBS, one of the 'big four' major US television networks, the streaming service Paramount+, and a significant portfolio of cable channels. CBS holds broadcasting rights for major sports events, including NFL, NCAA's March Madness, and Uefa soccer competitions.
- Ellison plans to finance the acquisition with the help of investors, including his father Larry Ellison (co-founder of Oracle) and private equity firms RedBird Capital Partners and KKR. Paramount Global, valued at close to $10 billion, is reportedly open to a sale due to challenges in the cable industry and the need to compete in the streaming era. Warner Bros Discovery (WBD) has also shown interest in a potential merger with Paramount to create a stronger competitor to Netflix and Disney+.
- TGI Sport, a virtual advertising, media, and marketing company part-owned by Bruin Capital, has acquired Insignia Sports International, a cricket management agency specializing in representing international cricketers, coaches, and commentators. This move is part of TGI Sport's aggressive expansion in the talent representation market, though the terms of the deal were not disclosed.
- Insignia, known for its cricket talent management, operates from the Kia Oval in South London and has a partnerships business in South Africa. TGI Sport, co-owned by Bruin Capital and Quadrant Private Equity, gained prominence with several acquisitions in the virtual advertising technology sector and has been expanding its presence in athlete management, including acquiring Australian sports marketing agency TLA and SFX Group.
- Martin Jolly, the global chief executive of TGI Sport, sees the acquisition of Insignia as a strategic fit to enhance their offerings in cricket, aiming to become the leading cricket talent agency globally. This acquisition aligns with TGI Sport's commitment to cricket through various engagements, including technology partnerships, sponsorships, and consultancy, and extends their talent roster to include notable cricketers like Kieron Pollard, Jofra Archer, and Sophie Devine.
- Silver Lake, a US private equity firm holding a majority stake in Endeavor, is planning to sell parts of the sports and entertainment company after taking it private. Endeavor, owning entities like IMG, WWE, UFC, and Professional Bull Riders, announced last October it was exploring strategic alternatives for its publicly listed stock.
- Silver Lake, which owns 71% of Endeavor, will soon submit a bid to Endeavor’s independent directors, who will assess the offer with the help of advisers. The specific parts of Endeavor that Silver Lake intends to sell have not been disclosed, but it's reported that the talent agency WME will not be affected.
- Endeavor recently created TKO Group Holdings, merging UFC and WWE interests, and owns 51% of this entity, which will remain listed. Silver Lake's involvement with Endeavor dates back to 2012, and includes significant acquisitions such as IMG and UFC, with Endeavor going public in April 2021. CEO Ari Emanuel has emphasized evaluating strategic alternatives to maximize shareholder value.
- The NBA has invested in Fastbreak.ai
, an artificial intelligence scheduling technology developer, with NBA Equity participating as a seed round investor. This partnership aims to incorporate Fastbreak.ai
's AI technology into the scheduling processes of the NBA.
- In addition to the NBA, Fastbreak.ai
's technology will also be used for scheduling in the Women's National Basketball Association (WNBA), the G League, and the NBA2K League. The NBA joins other sports organizations like the NHL, SEC, and Major League Pickleball in utilizing Fastbreak.ai
's services.
- The collaboration is part of the NBA's strategy to integrate advanced technology solutions into its complex scheduling process. Fastbreak.ai
, which closed a $5.2 million seed financing round last year, will benefit from the NBA's financial and resource support to further expand its operations.
- Boomerang, a digital lost-and-found platform, has successfully raised $4.9 million in a seed funding round led by LightShed Ventures, with contributions from other investors including GGV, SeventySix Capital, and leAD’s Lake Nona Sports & Health Tech Fund.
- High-profile individuals such as musician Drake, Equinox founder Lavinia Errico, and NFL players Odell Beckham Jr., Christian Kirk, and Kenny Clark have also invested in the Miami-based company.
- Boomerang's software, designed to facilitate the management and return of lost items, is primarily used by airports, resorts, and sports venues, including Cleveland Browns Stadium, Nissan Stadium, and State Farm Arena. Since its inception in 2011, the company has raised a total of $7.7 million.
