We believe a series of global macro tailwinds will help drive value creation across the TMT sector. Additionally, the sports industry offers its own secular trends that will further support significant value creation across the asset class. Below is a roundup of industry news highlighting some of these themes and related transactions.
- ESPN plans to launch a direct-to-consumer (DTC) service, merging ESPN+ and its flagship ESPN network, possibly by 2025.
- ESPN is in talks with various sports leagues, including the NFL and NBA, to include their streaming content in the expanded ESPN+ service.
- The addition of local games, especially considering regional sports network (RSN) turmoil, would enhance ESPN's position in the streaming world and provide revenue opportunities for major league teams.
YouTube TV helps increase NFL Sunday Ticket subscribers to 1.3m
(The Unbundling and Re-bundling of the Media Ecosystem / Changing Video Consumption Habits)
- Google has gained 1.3 million subscribers for the NFL's Sunday Ticket streaming service, marking an 8.33% increase over the previous satellite-based subscription numbers.
- The NFL transitioned Sunday Ticket to a streaming platform to attract younger viewers, and this shift has been successful in increasing its user base.
- Google paid up to $2.5 billion for the rights to Sunday Ticket, with the aim of integrating it into its video ecosystem, and it has successfully attracted new subscribers, especially through its YouTube TV platform. Google's primary focus remains improving the Sunday Ticket experience and driving subscriber growth.
- U2's "The Claw" stage, or "The Spaceship," returned in a Las Vegas performance, marking the first time it has been used in a decade.
- The spectacular circular stage, designed by Willie Williams and Mark Fisher, wowed audiences with its advanced technology, including a 5G connection and massive LED screens.
- U2's performance in Las Vegas received positive reviews, with praise for the band's energy, stage presence, and the innovative use of technology in their show.
- Caitlin Clark and the Iowa women's basketball team set an NCAA women's basketball attendance record by hosting DePaul at Kinnick Stadium with 55,646 spectators. The basketball court was positioned in the north end zone of the football stadium.
- The "Crossover at Kinnick" event featured a heartwarming tradition where both teams and the crowd waved to the Children's Hospital, emulating a football game's first-quarter gesture. Iowa's athletic department also donated $250,000 to the hospital.
- Caitlin Clark, who had a remarkable triple-double performance with 34 points, 11 rebounds, and 10 assists, led Iowa to a 94-72 victory over DePaul. While the attendance set an NCAA record, it fell short of the women's sporting event attendance record set by the Nebraska volleyball team in August. Iowa's women's basketball team is known for its recent success and will open its season on November 6.
- A highly anticipated Cricket World Cup match between India and Pakistan has drawn the attention of tens of millions of sports fans in South Asia. The long-standing rivalry has faced political obstacles, resulting in a lack of bilateral series for several years.
- India has dominated previous encounters, with Pakistan yet to defeat India in any Cricket World Cup match. The 7-0 scoreline in favor of India remains a point of contention among rival fans.
- The upcoming match has generated significant excitement, with both teams winning their first two games in the tournament. Pakistan is in India for the first time since the 2016 T20 World Cup, and the match will take place at the Narendra Modi Stadium in Ahmedabad. The expectations are high, and fans are looking forward to a competitive contest between the two cricketing giants.
- MLB's average time of a nine-inning game in 2023 was just under 2 hours and 40 minutes, marking the fastest time of game in nearly 40 years. Games were notably shorter in 2023 compared to the previous seasons, with a 24-minute reduction from 2022.
- MLB's total attendance in the 2023 season reached 70,747,365, breaking the 70 million marks for the first time since 2017. The increase in attendance was the largest growth for a non-COVID-impacted year since MLB expanded to 30 teams in 1998.
- The 2023 season saw more action on the field, with increased scoring and stolen bases. Runs per game and stolen base attempts both rose in 2023, contributing to the excitement of the season. The growth in attendance was significant, with 26 out of 30 MLB teams experiencing an increase in attendance from 2022 to 2023.
- The season-opener between the Chicago Blackhawks and Pittsburgh Penguins set a record with 1.43 million viewers on ESPN, making it the most-watched regular season NHL game in ESPN history, excluding the Winter Classic games.
- Subsequent games, such as the Tampa Bay Lightning vs. Nashville Predators and the Vegas Knights vs. Seattle Kraken, drew fewer viewers, with 598,000 and 691,000 total viewers, respectively.
- Connor Bedard, a rising star, had a notable performance, securing his first career point and goal in the NHL, contributing to the Blackhawks' win.
- The Dallas Cowboys vs. San Francisco 49ers game on NBC's "Sunday Night Football" drew an average of 26.3 million viewers, marking the network's most-watched Week 5 game since acquiring rights in 2006. Despite the Niners' blowout victory, it represented a 54% increase from last year's Week 5 game.
- CBS also had impressive viewership, averaging 23.1 million viewers for the game between the Kansas City Chiefs and Minnesota Vikings in Week 5.
- Both NBC and CBS have experienced strong starts to the NFL season, with "Sunday Night Football" averaging 23.8 million viewers through five weeks and CBS achieving its best five-week start since 1998. Additionally, both networks reported record streaming numbers for the games and the season.
- Shannon Sharpe's part-time role on ESPN's "First Take" has proven to be a significant talent acquisition, as he co-starred in three of the four most-watched episodes of the show this year. Monday's episode with Sharpe, Stephen A. Smith, and Molly Qerim drew 852,000 viewers, second only to an episode that aired after a player's on-field heart attack in January.
- Sharpe's debut on "First Take" on September 4th averaged 727,000 viewers, and his Tuesday morning appearance after Aaron Rodgers's season-ending injury pulled 726,000 viewers.
- Several factors contribute to Sharpe's success, including the timing of his entry into ESPN during the kickoff of the NFL's 2023 regular season. The chemistry between Sharpe and Smith positions Sharpe as a potential heir apparent to Smith should he leave the show, and Sharpe is confident that "First Take" will remain dominant even if Smith departs.
- Disney's Hotstar set a new global on-demand video streaming record by drawing 35 million concurrent viewers for an ICC World Cup 2023 cricket match between India and Pakistan. This record surpassed the prior mark of 32 million concurrent viewers set during this year's Indian Premier League championship match.
- The achievement highlights India's growing prominence as a sports power, showcasing the immense popularity of cricket in the country.
- India's emergence as a sports and streaming powerhouse is significant, considering it recently became the world's most populous country.
- The opening weekend of the 2023/24 A-League Women's season in Australia set multiple attendance records, with significant fan support for women's soccer.
- The Central Coast Mariners vs. Newcastle Jets match attracted 5,735 fans, setting a regular season attendance record. The Sydney FC vs. Western Sydney Wanderers derby later in the day drew 11,471 spectators, breaking the previous record.
- The first two games of the A-League Women's season surpassed the attendance record for any round in the top-flight's history, reaching 15,995 fans. The Sydney fixture also set a record for a domestic women's soccer match in Australia.
- Zixi is collaborating with Visaic to enhance the Visaic Interactive Platform (VIP), a SaaS product for sports organizations. VIP uses AI-based tools for live streams to boost audience engagement.
- The partnership aims to integrate Zixi's Software-Defined Video Platform, adding features like live DVR, game stats, highlights, and downloads to VIP.
- Zixi's ZEN Master tool will provide support for live-event broadcasts, including alerts and monitoring, offering more streamlined and efficient streaming capabilities while reducing computing resources by 95%.
- The NBA is considering the possibility of hosting regular-season games in Spain as part of its international expansion efforts.
- NBA Commissioner Adam Silver has expressed openness to exploring opportunities for the league to expand its presence beyond North America.
- The league has previously organized preseason and regular-season games in various countries, including Spain, as a means of promoting the sport and engaging with fans globally.
- The New Zealand All Blacks' rugby brand retains its position as the most valuable among international rugby teams, followed by England and France.
- The All Blacks have a brand value of approximately $175 million, while England's brand is valued at around $165 million, and France's at approximately $155 million.
- This assessment highlights the enduring global appeal and strong commercial presence of the All Blacks in the world of rugby.
- Denver Broncos have transferred controlling ownership from Rob Walton to son-in-law and CEO Greg Penner, aligning ownership structure with day-to-day management and meeting NFL bylaws. Some of Walton's shares have been transferred to Penner's four children.
- The Broncos are facing challenges on the field with a poor performance, finishing 5-12 last year and starting 1-4 this year, including a difficult matchup against Kansas City. The team is entering a new era under the new ownership.
- Buffalo Bills owner Terry Pegula fired COO John Roth and senior VP Kathryn D'Angelo due to an ethics issue involving their romantic relationship. Unlike the Broncos, the Bills are seen as Super Bowl contenders and are undergoing significant facility transitions, including building a new stadium in Orchard Park, New York, costing at least $1.7 billion. The Sabres are planning major upgrades to their arena, KeyBank Center.
- Endeavor, a publicly traded company with a market cap of $9.35 billion, has confirmed submitting an official bid to partner with the PGA Tour, following reports of new investors showing interest in the tour. The exact financial details of Endeavor's bid and the size of the stake they seek in the PGA Tour Enterprises commercial entity remain undisclosed.
- Other potential investors like Fenway Sports Group and Arctos Sports Partners have also been reported as interested in partnering with the PGA Tour. This indicates that at least five other investment entities are vying for involvement with the PGA Tour.
- Endeavor, which recently merged its UFC promotion with WWE to form TKO Group Holdings, is a prominent player in the sports and entertainment industry, owning the Professional Bull Riders traveling competition, and they believe they can bring value to the PGA Tour.
- Ted Leonsis, who has built a multibillion-dollar sports entity over 25 years, expressed his interest in buying a Major League Baseball (MLB) team as a strategic move to fill a gap in his sports portfolio and provide year-round programming for direct-to-consumer marketing.
- Leonsis is focused on the D.C. market and is not interested in teams outside of Virginia or D.C. His sports empire includes the NBA's Wizards, NHL's Capitals, WNBA's Mystics, Capital One Arena, and 100% ownership of the newly re-branded regional sports network Monumental Sports Network.
- Two potential MLB teams for Leonsis' ambitions are the Washington Nationals and Baltimore Orioles. Both teams explored potential sales, but the sale of either franchise is complicated by a decade-long legal dispute over TV rights for the teams, who own a stake in MASN. Leonsis is known for his ambition to build the world's most valuable sports and entertainment company in the greater Washington area.
- USL Championship club Orange County SC is aiming to raise approximately $2.5 million by offering small shares of equity in the team to soccer fans in the United States and Europe. This marks the first time an American club has sought investment from both domestic and foreign supporters through crowdfunding.
- The equity is available at a total team valuation of $50 million, allowing for around 5% of the club to be owned by fans. Orange County SC is already in the process of raising $1.235 million from U.S. investors via the Republic investment platform and plans to raise a similar amount from European investors using the equity crowdfunding platform Seedrs.
- Investors who participate will not only acquire equity in the club but will also receive tiered rewards based on their investment level, including exclusive owner's perks and season tickets in the President Club. Orange County SC emphasizes its commitment to player development and recently secured a new long-term lease agreement for its home games at Championship Soccer Stadium in Irvine.
- CVC, Europe's largest private equity group with €161 billion under management, is preparing to announce its intention to float in Amsterdam, allowing it to sell shares in an entity that will receive its management fees and part of its carried interest (profits from profitable investments). This move will provide an exit opportunity for CVC shareholders, including Singapore's GIC, Kuwait Investment Authority, Hong Kong Monetary Authority, and US asset manager Blue Owl Capital.
- The timing of the CVC listing is not final, and it may be adjusted due to heightened geopolitical uncertainty and rising interest rates. However, the fund manager, which postponed its IPO last year during the Russia-Ukraine conflict, is more determined to proceed this time.
- CVC is likely to offer close to the minimum number of shares required under Dutch rules, which could allow its shares to start trading next month if it announces its intention to list soon. CVC is planning to list about 10% of its shares, with Dutch rules requiring a free float of at least 25% of subscribed capital, but exceptions can be made.
- Qatari businessman Sheikh Jassim bin Hamad Al-Thani reportedly withdrew his $6.1 billion offer to acquire Manchester United, leaving British billionaire Jim Ratcliffe as the primary contender in the club's sale saga.
- Jim Ratcliffe is nearing the acquisition of a 25% stake in Manchester United, subject to approval from the club's board. If approved, Ratcliffe could gain control over certain on-field team operations.
- The Glazer family is expected to retain a majority stake in the club, but Ratcliffe's investment may be a first step toward potential future majority ownership of Manchester United. The timeline for the next steps in the sale process remains uncertain.
- The East Asia Super League (EASL) is aiming to become one of the top three basketball competitions globally, with its CEO, Matt Beyer, expressing optimism about its growth potential.
- The second season of EASL features eight teams from countries like the Philippines, Japan, and South Korea, and is backed by Fiba. The immediate goal is to complete the season successfully in terms of revenue, budget management, and execution.
- EASL is planning expansion, with the aim to include teams from the Chinese Basketball Association (CBA) in the next season. This expansion is expected to open new audiences and commercial opportunities, particularly in China and Southeast Asia, potentially covering over two billion people. The league also aims to achieve high viewership figures, with a goal of exceeding 100 million live viewers for the season, while building a dedicated fan base and community engagement.
- NFL players Patrick Mahomes and Travis Kelce, golfer Rory McIlroy, and boxer Anthony Joshua are among the latest investors in Alpine Racing, the Formula 1 (F1) team owned by French automotive giant Renault.
- The team was valued at just over $900 million earlier in the year when a group led by RedBird Capital, Otro Capital, and actor Ryan Reynolds acquired a 24% stake for $218 million (€200 million). The new athlete-laden investors are part of that transaction on the Otro Capital side.
- This investment highlights the significant changes in F1's business landscape, driven by factors like embracing new media, expanding into international markets, and cost cap measures. Alpine Racing currently ranks 6th in F1's constructor standings, and this influx of athlete investors reflects the growing interest in F1 as a global sport.
- The Primeland Group consortium has acquired a majority stake in A-League club Perth Glory, marking a change in ownership for the Australian soccer team.
- This consortium, led by Jason Brewer, has taken over the club's ownership and aims to strengthen Perth Glory's position in the A-League, contributing to the growth and development of the team.
- The change in ownership highlights the ongoing investment and interest in Australian soccer, as Primeland Group seeks to enhance the club's prospects and engagement with fans and the local community.
- Sports analytics company Zelus Analytics has raised $50 million in a Series A funding round, led by venture capital firms Mithril Capital and Elysian Park Ventures. This significant investment reflects the growing interest in sports data and analytics.
- Zelus Analytics specializes in providing data-driven insights and performance analysis to sports organizations, helping them make informed decisions to enhance athlete performance and team strategies.
- The company intends to use the funding to expand its technology and analytics capabilities further, positioning itself as a prominent player in the sports analytics industry, serving professional and collegiate teams, and potentially extending its reach to other sectors.
- Avenue Sports & Entertainment, a sports and entertainment investment firm, has teamed up with NBA star Stephen Curry and Milwaukee Bucks co-owner Marc Lasry to secure the rights for a San Francisco franchise in the TGL (The Gaming League), an esports venture.
- TGL is set to launch in 2024, focusing on the world of competitive gaming. The collaboration between Avenue Sports, Stephen Curry, and Marc Lasry aims to expand the league's presence and engage with the growing esports audience.
- This partnership reflects the increasing interest and investment in the esports industry, with notable figures like Stephen Curry and Marc Lasry looking to leverage the market's potential by securing a San Francisco franchise in TGL.
