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.
- Brightcove, a streaming tech specialist, has partnered with the NHL to enhance the delivery of video content across the league's official website, mobile app, and franchise platforms.
- The collaboration aims to improve video management, distribution, and monetization, offering fans high-quality feeds, fast load times, and greater reliability.
- Brightcove also has partnerships with Yahoo Sports, ATP Tour, MLS, and USOPC, making the NHL its notable addition, while the NHL has separately partnered with Sense Arena for VR training across all 32 teams.
NFL+ Prices Jump With NFL Network, RedZone Additions
(Changing Video Consumption Habits; The Unbundling and Rebundling of the Media Ecosystem)?
- NFL+ introduces new pricing tiers: $9.99/month for base tier and $14.99/month for premium tier.
- NFL Network added to base tier, while premium tier includes NFL RedZone.
- Price increase follows industry trend, aims to enhance value with more live content, amidst ongoing efforts to secure investment for NFL Media.?
Streamers Circling For NBA’s Local Rights Amid DSG Troubles
(Changing Video Consumption Habits; The Unbundling and Rebundling of the Media Ecosystem; Value of Live Content)
- Prominent companies like Disney, Apple, Amazon, YouTube, and DirectTV are interested in obtaining local streaming rights to the NBA if Diamond Sports Group (DSG) decides to reject some of the 15 teams' local rights it currently carries.
- DSG, the parent company of Bally Sports, is in the process of finalizing carriage renewal discussions with Comcast, DirecTV, and Spectrum. The completion of these deals is crucial for DSG's financial stability and could impact the availability of NBA local rights.
- The NBA is closely monitoring the situation, especially as DSG's situation evolves, and the league's considerations intersect with the ongoing sale of its national rights. The landscape is further complicated by potential streaming-based scenarios and other factors.
'Messi Effect' Sparks Surge in MLS Season Pass Subscribers
(The Unbundling and Rebundling of the Media Ecosystem; Changing Video Consumption Habits)?
- Lionel Messi's impact doubles MLS Season Pass subscribers: Inter Miami's owner, Jorge Mas, reveals a significant surge in MLS Season Pass subscribers since Lionel Messi's arrival, showcasing the "Messi Effect" on the league's viewership.
- Apple CEO Cook acknowledges streaming service progress: Tim Cook approves of the streaming service's growth and shares Jorge Mas' statement about Messi's influence on MLS Season Pass.
- Subscriber count remains undisclosed: While MLS hasn't confirmed the exact numbers, reports suggest substantial growth in subscribers, with Spanish-language viewership for Messi matches exceeding 50%. Messi's contract reportedly ties his earnings to new MLS Season Pass subscriptions. The league's embrace of direct-to-consumer distribution is reshaping the sports media landscape.
- MLB experiences increased attendance with nine weekends surpassing 1.5 million total attendees this season, compared to only five such weekends combined in the previous four full seasons (2018-19 and 2021-22).
- The Miami Marlins achieve a milestone with a record three-game attendance of 100,001 during their series against the Yankees at loanDepot park, including a third-largest non-Opening Day crowd of 35,043. Concession sales through Levy reach $2.1M for the series, marking the first time a series exceeded $2M since the park's 2012 opening.
- Despite ranking lowest in the NL, the Marlins observe a 26.5% increase in average attendance to 14,181 compared to the previous season.
- England's 2-1 victory over Colombia in the Women's World Cup quarter-final drew a peak TV audience of 7.2 million on ITV.
- Australia's Matildas' win against France garnered an average of 4.17 million viewers on Seven and 7Plus, with 472,000 viewers on 7Plus, marking its largest streaming event.
- The Matildas' victory was a major TV sports broadcast success in Australia, possibly the highest since the 2000 Sydney Olympics, and their upcoming semi-final against England is anticipated to maintain high viewership in both countries.
- Fox CEO Lachlan Murdoch reaffirms strong support for existing pay-TV infrastructure, emphasizing its value for monetizing sports assets and content.
- Despite the growing prominence of streaming, Murdoch believes that traditional linear television remains crucial and envisions a coexistence of both pay TV and direct-to-consumer models.
- Fox anticipates that the inclusion of Oregon and Washington in the Big Ten will bolster its media rights deal and football franchise, enhancing its partnership with the conference and the Big Ten Network.
- FanDuel reports a significant increase in WNBA game betting, with 22 games generating handles of $1 million or more this season, compared to just seven in previous years.
- The WNBA has seen a 46% year-over-year increase in viewership midway through the season, prompting discussions about potential expansion.
- Betting on women's sports, including tennis, golf, and WNBA, is on the rise, attributed to increased awareness, superstar athletes, and a symbiotic relationship between betting and viewership.
- The prize fund for this year's Women's Open golf tournament has increased by 23% to $9 million, with the champion set to earn $1.35 million.
- American Insurance Group (AIG) has extended its title sponsorship of the Women's Open through 2030, emphasizing its commitment to gender pay equity.
- The 2023 Women's Open is currently underway, and AIG's continued support is seen as a positive step for the future of women's golf.
- WNBA Commissioner Cathy Engelbert plans to visit Denver to explore potential expansion and meet with a group advocating for a new team in Colorado.
- Denver has emerged as a strong candidate for new WNBA teams, with a group, including Robert Cohen of IMA Financial Group, showcasing potential venues for play and practice.
- Other cities being considered for WNBA expansion include the Bay Area, Nashville, Toronto, Charlotte, Philadelphia, Portland, and Austin; however, player concerns and prioritizing current player treatment have been raised, with potential expansion possibly occurring by 2025.
- PENN Entertainment Inc. has entered a 10-year deal with ESPN to rebrand its online sportsbook, involving $1.5 billion in cash and $500 million in warrants.
- The company has unloaded ownership of Barstool Sports to its founder for $1 and is absorbing a significant writedown to change media partners, indicating strategic shifts and potential challenges.
- While PENN aims to leverage the ESPN brand to grow its sports betting and iGaming market share, industry experts remain skeptical about the deal's potential to achieve significant market expansion and meet high expectations.
- Laura Ricketts, co-owner of MLB's Cubs and a minority owner of the WNBA's Sky, leads an investor group's agreement in principle to purchase NWSL's Chicago Red Stars, ending controversial ownership by Arnim Whisler.
- The deal is estimated at around $35.5 million, highlighting the growth of NWSL, though it falls short of the $53 million paid for Bay FC's expansion fee.
- Laura Ricketts, known for her philanthropic efforts, emerges as a more prominent sports owner, taking the lead in the Red Stars acquisition and expressing commitment to boost women's soccer's momentum in Chicago.
- PFL is rumored to be close to acquiring Bellator, which would enhance its fighter roster, viewership, and potential for global expansion, possibly supported by a $100 million Middle East investment, accelerating its goal of becoming a co-leader in the industry.
- PFL is hosting a playoff event at Madison Square Garden where men's heavyweights and women's featherweights compete for spots in the 2023 PFL World Championships and $1 million prizes.
- PFL aims to establish itself as a significant competitor to the UFC, entering its fifth postseason and vying to be considered the second-best MMA brand.
- The German Football League (DFL) is considering resuming talks about external investment to drive growth opportunities for the Bundesliga, despite previous rejections by clubs for private equity investment in the media rights business.
- DFL's co-chief executives, Marc Lenz and Steffen Merkel, aim to continue discussions with clubs on long-term development and potential financing options, emphasizing the need for the league's progression.
- Alongside exploring external investment, DFL is focused on securing a new domestic rights deal before Euro 2024, with preparations underway and discussions ongoing to create compelling rights packages and attract potential partners like Sky, DAZN, and possibly Amazon.
- FC Barcelona secures vital funding through creation of Barca Media: Barcelona establishes Barca Media, a $1 billion valued company listed on the U.S. stock market, to address financial concerns and support player salaries.
- Strategic merger and investor acquisitions: Barca combines digital content units with SPAC Mountain & Co. I Acquisition Corp to form Barca Media, bolstering its Web3, blockchain, and metaverse initiatives. New investors, including LIBERO football finance AG and private investors advised by NIPA Capital B.V., acquire stakes in Barca Vision, a part of Barca Media, to ensure financial stability.
- Socios.com and Orpheus Media involvement: Socios and Orpheus had initially agreed to purchase 49.5% of Barca Vision for $109 million each, but now, due to club guidelines, they are selling partial stakes, while new investors step in to secure portions of these stakes.
- Drake Star Capital anticipates a consistent influx of investments in the latter half of 2023.
- Notable investments include Canal+ investing $200 million in Viu, Tonal raising $130 million, and FZ Sports securing $74 million in funding.
- Around $6 billion in new funds were established for sports and media investments, with esports, fantasy, and betting driving deal volume and media/broadcasting driving deal value. Public funding amounted to $1.3 billion, with a significant raise from Entain. Endeavor's $9.3 billion merger of UFC with WWE contributed to headline M&A figures, totaling $5.2 billion after accounting for this. Future investments are expected in sports technology, particularly in fan engagement, AI, ticketing, and venue management.
- Indian authorities greenlight $10 billion merger between Sony and Zee: Regulatory approval granted for the merger of Sony and Zee, two major media companies in India.?
- Significant consolidation in Indian media landscape: The merger creates a powerhouse in the Indian media industry, with combined assets and resources aiming to reshape the entertainment and content distribution landscape.
- Strategic move for global expansion and competition: The merger enables Sony and Zee to enhance their global reach, content offerings, and competitive position in the rapidly evolving media and streaming market.
- A report presented to Netball Australia highlights potential financial challenges for the Super Netball club competition, indicating a projected loss of over AUS$7.5 million by 2026.
- Despite previously reporting a profit, Netball Australia's CEO, Kelly Ryan, acknowledges that the league has been experiencing losses and is exploring models for capital injection.
- Super Netball's future is uncertain due to financial struggles, low viewership on Foxtel's Kayo streaming platform, and competition from other women's sports leagues like AFLW and WBBL. The league's sustainability and approach need to be reevaluated in light of these challenges.
- Fantasy Life, a fantasy sports and sports betting media company, secured $2M in a friends and family funding round from a group of strategic investors.
- Notable investors include prominent athletes like Joe Burrow and Josh Allen, along with industry figures like Casey Wasserman and Chad Hurley.
- The funding allowed Fantasy Life to expand its media offerings and enhance its website capabilities, positioning the company for further growth in the fantasy sports and sports betting market.
- Sports streaming company DAZN is acquiring women's soccer content platform Ata Football, which broadcasts top-tier women's soccer matches from European leagues like France's D1 Féminine and Italy's Serie A Femminile.
- Backed by 777 Partners, Ata Football operates an over-the-top (OTT) streaming platform and acts as a sales agency, sublicensing rights to broadcasters such as CBS Sports.
- DAZN intends to establish a women's sports vertical within its business with the acquisition of Ata Football, aiming to capitalize on the growing interest in women's soccer and expand its coverage and influence in this area.
- Arccos, a golf tracking specialist, has secured $20 million in a Series C funding round led by the PGA Tour.
- As part of the investment, Arccos becomes the official game tracker for the PGA Tour and gains support from prominent golf apparel brands like Ping, TaylorMade, Cobra Puma Golf, and Topgolf Callaway Brands.
- Arccos offers a comprehensive shot-tracking system with AI-powered tools for real-time data analysis on golfers' shots across over 40,000 courses worldwide, contributing to the advancement of data-driven insights in golf for players, coaches, and product designers.
- SportsVisio has raised $3 million in funding to revolutionize basketball capture using AI technology.
- The company employs computer vision and deep learning to enable players, coaches, and observers to film basketball games using a phone on a tripod, automatically tallying statistics and offering highlight creation tools.
- Founded in 2021, SportsVisio's technology detects jersey numbers in videos, attributing sports actions to the players and plans to expand to other sports while democratizing access to advanced training knowledge and content creation. Sapphire Sport led the funding round as part of its strategy to invest in sports-adjacent tech companies with innovative AI applications.
