In this week's newsletter we continue to observe strong proof points for the unstoppable rise of women's sports, changing video consumption habits alongside notable investment and M&A activity.
- PwC's Global Sports Survey reveals that 85% of sports experts predict double-digit revenue growth for women's sports in the next three to five years, with key strategies including increased promotion, live event broadcasting, and enhancing the matchday experience.
- Investment in sports is focusing on teams and leagues (41%), gaming (22%), and technology (17%), with a growing trend towards minority and joint venture investments. Despite financial concerns being a barrier to hosting large events, there is a strong belief in the benefits of new hosting models and utilizing existing venues for sustainability.
- PwC reports that 59% of sports leaders lack a clear Generative AI strategy due to barriers like funding and capability requirements, presenting a competitive edge opportunity for early adopters.
Sky Sports+ Launches for EFL Season Alongside New FAST Channels (Changing Video Consumption Habits / Unbundling and Rebundling of the Media Ecosystem)
- Sky Sports+ will launch on 8th August, providing up to 100 simultaneous live feeds of soccer, tennis, and rugby league at no extra cost to subscribers. It will be accessible on Sky Q, Sky Glass, Sky Stream, Now DTC service, and the Sky Sports mobile app, with a linear channel curating high-profile events.
- The service debuts with the new English Football League (EFL) season, featuring all 36 games from the second, third, and fourth tiers of English soccer live on opening weekend. Sky has committed to broadcasting every EFL club at least 20 times per season under a new ￡935m five-year deal covering over 1,000 matches annually.
- Sky Sports+ will also cover every rugby league Super League match and all men’s ATP and women’s WTA tennis tours, alongside streaming-only enhanced coverage of major events like Formula One. Additionally, three new FAST channels (Sky Sports Stories, Sky Sports Classics, and Sky Sports Vault) will offer documentary and classic content, enhancing the overall viewing experience.
- The International Olympic Committee (IOC) reports that Paris 2024 is on track to break broadcast and digital engagement records, with over 8.5bn social media engagements in the first week, surpassing the entire Tokyo 2020 engagement by 40%.
- Key viewership highlights include 23.4m viewers for the opening ceremony on France Télévisions, record-breaking streaming numbers for Warner Bros Discovery and Peacock, and 34.6m viewers for NBC's coverage on August 3rd, with significant traction on Instagram, Snapchat, and TikTok.
- The strong performance is attributed to increased global interest post-pandemic, innovative media strategies, and engaging coverage featuring popular figures like Snoop Dogg. The IOC is confident that over half of the world's population will follow Paris 2024.
- Manchester United has launched a Web3 fantasy football game in collaboration with training kit sponsor Tezos, featuring player trading cards of all first-team men’s squad members in classic, rare, and ultra-rare editions.
- The hand-drawn trading cards, updated with real-time stats throughout the season, can be used to build five-man squads for the Fantasy United game, allowing fans to compete in mini-leagues.
- Fans with the club’s original digital collection had early access to the cards, which are now available to all fans in packs of seven for $3.86. Manchester United claims this is the first Web3 fantasy football game by a Premier League club.
Venu Sports Sets Price Point for Streaming Launch (Unbundling and Rebundling of the Media Ecosystem / Changing Video Consumption Habits)
- Venu Sports, a joint streaming venture by Disney, Fox, and Warner Bros. Discovery, announced its price at $42.99 per month, launching later in August 2024 in time for the NFL season. Subscribers at launch will lock in this price for 12 months.
- Venu Sports will provide access to linear networks like ESPN, Fox, and TNT, collegiate sports networks, and ESPN+. It will feature live coverage of major sports leagues (NFL, NBA, NHL, MLB), collegiate sports, tennis grand slams, WNBA, UFL seasons, and extensive on-demand content.
- The service is aimed at cord-cutters and those without traditional pay TV, priced between standalone OTT services and comprehensive cable packages. It allows bundling with Max, Hulu, and Disney+, presenting a mid-priced, sports-focused direct-to-consumer option.
Cosm Raises US$250m to Expand ‘Shared Reality’ Venues Globally (Building Businesses around Disruptive Technology / Transformational Growth Levers)
- Cosm, a specialist in immersive technology, has raised over $250m from investors including Steve Winn, Mirasol Capital, Avenue Sports, Rock, Baillie Gifford, and Bolt Ventures to scale its operations, grow its technology and media units, and develop more shared reality venues globally.
- Founded in 2020, Cosm's shared reality venues bridge the gap between physical and virtual sports event attendance, with partnerships with the NFL, UFC, ESPN, NBC Sports, and others, allowing fans to experience live productions of various sports events in an immersive way.
- Cosm, now valued at over $1bn, plans to open its second venue in Dallas later this year, following the success of its first venue in Los Angeles, and has announced a third venue in Atlanta at Centennial Yards.
- Private equity firms and sports funds are exploring investments in NASCAR due to the sport's growing financialization, relatively low team charter costs, and lucrative media rights deals, driving increased market interest and potential for higher returns.
- Trackhouse Entertainment Group secured investment from Marc Lasry’s Avenue Sports Fund, following similar moves by Joe Gibbs Racing and Harris Blitzer Sports & Entertainment. This trend is attracting more investors, including the Steinbrenner family and possibly Andretti Autosport, potentially reshaping the sport’s financial landscape.
- NASCAR is negotiating a new charter agreement that could include rules for private equity investments, such as a potential ban on sovereign wealth funds and acquisition limits. These negotiations are crucial for future investments and the sport's financial stability, as current team charters are seen as valuable assets that guarantee revenue streams and starting spots in races.
- GMR Group, co-owners of the IPL's Delhi Capitals, are set to acquire Hampshire County Cricket Club for ￡120m, gaining full ownership of the club, a 51% stake in The Hundred's Southern Brave, and control of the Utilita Bowl stadium, a Hilton hotel, and a golf course.
- The acquisition makes GMR the first overseas owners of an English cricket county and positions them to become the first outright owners of a Hundred team, with the ECB planning to commence the sale process for The Hundred franchises soon.
- The deal could lead to player sharing between Hampshire and Delhi Capitals, with potential changes to BCCI restrictions on Indian players participating in The Hundred and reflects increasing interest from Indian investors in English cricket, including ongoing talks between Rajasthan Royals and Yorkshire.
- SURJ Sports Investment, controlled by Saudi Arabia's Public Investment Fund (PIF), is reportedly negotiating a $271m investment to create a new elite cycling league, potentially rivaling the UCI WorldTour. This follows interest from other investors, including CVC Capital Partners, and previous exploration by teams like Ineos Grenadiers and Team Visma.
- David Lappartient, president of the International Cycling Union (UCI), is open to Saudi Arabia investing in cycling, provided they collaborate with the UCI and respect its principles, particularly avoiding the creation of a rival league. Lappartient met with Saudi officials during the Paris 2024 Olympic Games to discuss potential cooperation.
- If SURJ's investment proceeds, it would add to Saudi Arabia's growing portfolio, which includes stakes in the Professional Fighters League (PFL) and Newcastle United, as well as ventures like LIV Golf. The PIF is also reportedly interested in forming a new boxing league and acquiring a new Hundred cricket franchise in Durham.
- The London Lions basketball club has entered administration, with Hudson Weir denying that the team has been sold to Lithuanian tech hub Tesonet, despite Tesonet's earlier announcement of a deal to hand over control to Basketball Club ?algiris and provide a short-term loan.
- The Lions' future has been uncertain due to financial difficulties faced by their owner, 777 Partners, leading to the termination of the British Basketball League's (BBL) operating licence and their withdrawal from the EuroCup for the 2024/25 season.
- Hudson Weir has set a deadline of August 9th for bids to acquire the Lions' assets, aiming to find a serious buyer to ensure the club's continued growth and success, with the potential to compete in a new British basketball competition run by Premier Basketball Ltd.
- Starting September 1, Twickenham Stadium will be known as Allianz Stadium, marking the first rebrand since its opening in 1909. This change comes as part of a decade-long naming rights deal with Allianz worth over $127m.
- The partnership with Allianz will provide the Rugby Football Union (RFU) with over $12.7m annually, supporting both elite and grassroots levels of rugby. RFU chief executive Bill Sweeney emphasized that this investment would enhance the stadium experience and help secure the sport’s future amid financial challenges.
- While some supporters expressed dissatisfaction with the exclusion of "Twickenham" from the new name, Sweeney defended the decision, asserting that the partnership is essential for the RFU’s long-term vision.
- Red Bull has acquired 100% of Japanese third-tier soccer club Omiya Ardija from telecommunications firm NTT, marking the first time an overseas company has fully controlled a Japanese professional league team.
- This acquisition aims to grow the Omiya Ardija brand and expand Red Bull's presence in Japan, adding to their extensive portfolio of soccer clubs including RB Leipzig, New York Red Bulls, Red Bull Salzburg, Red Bull Bragantino, and a recent investment in Leeds United.
- The club may undergo a name change, subject to J.League approval, as current regulations do not allow rebranding to include company names. Red Bull will officially take control in September, with plans to enhance the club's status in Japanese football using their expertise and experience.
- FC Cincinnati, co-founded by Jeff Berding, has become the first professional franchise venture partner in Lead One, a pre-seed venture capital fund from Lead Sports, aimed at supporting 10 startups annually in sports and health sectors.
- The partnership aligns with Berding's philosophy of learning from smart people and aims to provide FC Cincinnati with unique access to cutting-edge sports and health tech startups, enhancing fan experiences and organizational growth through real-time market testing and feedback.
- This venture is part of FC Cincinnati's broader strategy to be a best-in-class sports organization by 2031, complemented by their consulting and business development arm, Lion’s Ventures, which focuses on fan engagement, brand building, and innovative real estate projects.
- Shot Scope, a golf shot-tracking and wearables company, closed an $8.5m Series B funding round led by Guinness Ventures with a $4m investment. Other participants included Scottish Enterprise, Growthdeck, The SideBySide Partnership, and Edinburgh-based Equity Gap, with Virgin Money providing $1.9m in debt finance.
- Founded in 2014 and headquartered in Scotland, Shot Scope produces GPS, range-finding, and shot-tracking products, alongside a mobile app. Their products are available in retail outlets such as Dick's Sporting Goods and PGA Tour Superstores.
- The newly acquired funds will be used to fuel the company's global expansion efforts.
- Caesars is selling the World Series of Poker (WSOP) brand to Canadian online gaming investment group NSUS Group for $500m, comprising a $250m cash payment and a $250m promissory note due five years post-closing.
- Despite the sale, Caesars will continue hosting the WSOP live tournament series at its Las Vegas casinos for the next 20 years, maintain WSOP branding in its brick-and-mortar poker rooms, and retain preferential rights to host live WSOP Circuit events.
- The sale, subject to regulatory approvals and other closing conditions, is expected to close before the end of 2024.
- US investment company DCB Sports is set to acquire 100% of Guild Esports, a London-based competitive gaming organization co-owned by David Beckham, after Guild signed a letter of intent. The acquisition, pending due diligence and a definitive legal agreement, aims to provide Guild with a stable financial platform and expand its partnerships.
- Guild Esports, the first esports company listed on the London Stock Exchange, has seen a 99% drop in market capitalization since its 2020 debut. As of July 31, Guild's cash reserves stood at ￡25,000, with liabilities totaling ￡1.36m and a loss of ￡1.8m for the six months ended March 31. The company has generated ￡14m in revenue while incurring ￡26.6m in losses over three and a half years.
- Guild Esports has been exploring various measures to meet short-term liabilities, including securing additional funding and cost reduction initiatives. The deal with DCB Sports is expected to help Guild management achieve its strategic goals of building a world-class gaming-led media brand.
