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.
- Meta (formerly Facebook) has partnered with the Rugby World Cup 2023 to provide innovative technology solutions and fan engagement experiences for the tournament.
- The collaboration aims to enhance the fan experience through virtual reality (VR) and augmented reality (AR) applications, allowing fans to engage with the event in new and immersive ways.
- Meta's involvement reflects the growing trend of technology companies leveraging sports events to showcase their innovative capabilities and enhance the global sports viewing experience.
NFL+ Could Stream Exclusive Games
(Changing Video Consumption Habits)
- The NFL is reportedly exploring the launch of its direct-to-consumer (DTC) streaming service, "NFL Plus," which would offer exclusive access to live games and content.
- The proposed service would be a premium offering, providing fans with an additional way to access NFL games and related content, potentially including original programming.
- This move aligns with the broader trend of sports leagues and organizations exploring DTC streaming services to engage with fans directly and diversify their revenue streams in the digital age.
- Notre Dame secured a dominant 42-3 victory over Navy during the Aer Lingus College Football Classic in Dublin, with a sold-out crowd of 39,176 American fans attending, setting a world record for the largest number of Americans traveling internationally for a single sporting event.
- The presence of Pro Football Hall of Famer Joe Montana on the sideline added excitement to the game. Kickoff was delayed by five minutes due to TV coverage of a Premier League game.
- Notre Dame's extensive travel schedule, including the trip to Ireland, will be closely monitored during the upcoming season, as they have eight consecutive games in three states and one foreign country before a mid-October bye week. The event also featured various activities, including business and academic summits, a pep rally, and a Catholic Mass, contributing significantly to the economic impact on Ireland estimated at over $159 million.
- The 2023 U.S. Open set a new single-day attendance record with 73,007 fans, marking the first time in the event's history that it exceeded 73,000 attendees in a single day.
- The tournament has witnessed record-breaking attendance for the first three days, with Monday's attendance of 72,957 being the previous record.
- U.S. Open Fan Week attendance increased by 41% compared to 2022, and Arthur Ashe Kids' Day on August 27 also achieved an all-time attendance record of 40,868, surpassing the previous high of 35,525 set in 2022.
- The SEC dominates early season ticket sales in college football, with five schools from the conference among the top 10 most in-demand teams for the 2023 season.
- Alabama, a powerhouse in the SEC, tops the list, followed by Michigan, Notre Dame, Penn State, and Tennessee, all of which belong to different conferences.
- The SEC schools are collectively outselling the Big Ten, the second most in-demand conference, by 45% in ticket sales. StubHub anticipates significant changes in ticket sales next season due to conference realignment, with new teams joining different conferences, potentially leading to shifts in fan travel, rivalries, and team spotlights.
- Florida State University's college football win over Louisiana State University on September 3rd averaged 9.1 million viewers on Disney's ABC network, marking a 22% increase in viewership compared to the previous year's matchup.
- The game reached a peak audience of 10.3 million viewers, while NBC's coverage of Penn State's victory over West Virginia on September 2nd averaged 3.7 million viewers, peaking at 4.4 million.
- Michigan's win over East Carolina, exclusively shown on Peacock, became the most streamed college football game in NBC's history, indicating a growing interest in digital streaming for sports content.
- Viacom18 secured the broadcast rights for Indian cricket matches for an estimated $720 million.
- The deal covers broadcasting rights for various domestic and international cricket events in India.
- Viacom18 aims to leverage this acquisition to strengthen its presence in the Indian sports broadcasting market.
- The NFL's 2023 season is poised to bring significant changes in the television rights landscape, with an emphasis on digital streaming platforms.
- The Washington Commanders' owner, Josh Harris, is leading a group of investors exploring the acquisition of the NFL Sunday Ticket package, potentially shaking up the distribution of NFL games.
- The NFL's move towards streaming and digital distribution reflects the evolving media landscape, with platforms like YouTube playing an increasingly prominent role in sports content delivery, as the league seeks to engage with a broader and more tech-savvy audience.
- Serie A is seeking to increase its annual revenue from domestic broadcast rights from €930 million to €1 billion per season for the next cycle.
- The league has paused the rights sales process after initial bids from DAZN, Sky, and MediaForEurope (MFE) fell short of expectations.
- Serie A is considering launching its own direct-to-consumer (DTC) streaming service to broadcast live matches in Italy if broadcasters continue to offer bids below the league's asking price. A decision on the rights sale is expected by October 15.
- Nebraska Huskers' women's volleyball team set a new attendance record by hosting a game at Memorial Stadium, traditionally used for football.
- The match against the Omaha Mavericks attracted a crowd of over 35,000 spectators, breaking previous attendance records for women's collegiate volleyball.
- This event highlights the growing popularity of women's sports and the strong support for women's collegiate volleyball in Nebraska.
- The Premier Hockey Federation (PHF), the first North American professional women's hockey league to pay its players since 2015, faced competition from the Professional Women's Hockey Players Association (PWHPA), formed in 2019 by Olympic-level players seeking improved salaries, benefits, and conditions.
- Billie Jean King and Ilana Kloss, owners of the Los Angeles Dodgers, invested millions of dollars to support the PWHPA and tasked Dodgers executive Stan Kasten with establishing a collective bargaining agreement (CBA) for the players.
- The newly rebranded PWHL (Premier Women's Hockey League) aims to ensure long-term success with a focus on consolidating top players, creating an enjoyable fan experience, and engaging with local communities. The league benefits from the promotional support of the NHL and plans to grow domestically and internationally, relying on sponsorship sales, ticket sales, merchandise sales, and media rights for revenue, prioritizing reach over short-term profits. The PWHL sees itself following the footsteps of leagues like the NWSL and WNBA but believes its support and single-entity structure with top players give it significant potential for success.
ESPN To Air College Football Games In Cinemas
(Transformational Growth Levers / Changing Video Consumption Habits)
- ESPN plans to broadcast college football games in cinemas, offering fans an immersive viewing experience on the big screen.
- This move aims to capitalize on the appeal of college football and provide a unique way for fans to enjoy the games in a communal setting.
- The initiative reflects the sports broadcasting industry's innovative efforts to engage viewers and expand its audience beyond traditional platforms like television.
- Private equity firms are increasingly considering college sports as a lucrative investment opportunity due to its potential for growth and revenue generation.
- Investments in college sports can involve various aspects, including media rights deals, facilities development, and team ownership, offering diverse avenues for financial returns.
- The influx of private equity into college sports could lead to significant changes in the industry, affecting how teams operate and potentially altering the landscape of collegiate athletics.
- Fenway Sports Group is expanding its media presence by acquiring an ownership stake in the Pittsburgh Penguins.
- This move aims to strengthen their sports portfolio, which already includes the Boston Red Sox and Liverpool FC.
- The acquisition is expected to provide cross-promotional opportunities and content synergy within the Fenway Sports Group's ecosystem.
- The Professional Fighters League (PFL) is reportedly in discussions to acquire Bellator, a prominent mixed martial arts (MMA) organization.
- If the acquisition goes through, it will create a significant consolidation within the MMA industry, potentially impacting the landscape of competitive MMA promotions.
- This move highlights the ongoing competition and strategic maneuvers within the MMA world as organizations seek to secure their position and attract top talent.
- Thomas Tull is reportedly considering increasing his ownership stake in the Pittsburgh Steelers, a well-known NFL team.
- This move signifies Tull's continued interest and commitment to the franchise, potentially influencing the team's direction and management.
- The report suggests that Tull may partner with fellow owner Harris Blitzer Sports & Entertainment as part of this ownership expansion effort.
- Steve Cohen, the owner of the New York Mets, has purchased a team in the new TGL (The Golf League), which is backed by golf stars Tiger Woods and Rory McIlroy.
- This acquisition reflects the growing interest of high-profile sports figures in expanding their investments into the golf industry.
- TGL aims to bring a fresh and innovative approach to professional golf, with Steve Cohen joining as a prominent stakeholder in this venture.
- Reports suggest that the Glazer family, owners of Manchester United, are planning to take the club off the market, indicating a shift in their stance towards a potential sale.
- This move comes despite previous interest from potential buyers like Jim Ratcliffe's Ineos and Sheikh Jassim, highlighting the Glazers' commitment to retaining ownership of the club.
- The decision not to sell Manchester United suggests that the Glazers intend to continue their involvement in shaping the future of one of the world's most renowned football clubs.
- Apex Capital has launched the Elite Performance Investment Fund, which aims to invest in high-profile athletes and sports professionals.
- The fund has already attracted notable names like Lando Norris, Carlos Sainz Jr., Valtteri Bottas, Christian Eriksen, and Raphael Varane as investors.
- This initiative signifies a growing trend of athletes and professionals diversifying their investments and financial portfolios within the sports industry.
- The ATP and WTA tennis tours are reportedly in discussions about a potential merger, which would be a significant development in the tennis world.
- The talks aim to explore the possibilities of streamlining and unifying various aspects of men's and women's professional tennis, potentially leading to a more cohesive and marketable sport.
- The outcome of these discussions could have a profound impact on the future structure and organization of professional tennis tournaments and events.
- The Rajasthan Royals have reportedly made an offer of ￡25 million to acquire the Yorkshire County Cricket Club.
- This offer signifies the interest of IPL teams in expanding their presence and influence in international cricket beyond the Indian Premier League.
- If successful, this takeover could lead to significant changes in the management and operations of the Yorkshire County Cricket Club.
- Yorkshire County Cricket Club is in "detailed negotiations" to sell Headingley Stadium to Mike Ashley, the owner of Frasers Group.
- This potential sale reflects a trend of private ownership in the world of sports stadiums and venues.
- If the deal goes through, it could impact the future management and development plans for Headingley Stadium under the ownership of Mike Ashley.
- The Pittsburgh Penguins have acquired and are planning to rebrand the SportsNet RSN (Regional Sports Network).
- This move indicates the Penguins' intent to have more control over their media assets and potentially enhance the fan experience.
- The rebranding of the RSN aligns with the changing landscape of sports media and could lead to innovative content and engagement opportunities for Pittsburgh Penguins fans.
- The sports stock index for August showed that sports-related stocks experienced a decline during the month.
- Despite the overall decrease, the sports betting sector continued to perform well, benefiting from a positive perception of the industry.
- The analysis suggests that the sports stock market remains influenced by factors like the regulatory environment and the evolving landscape of sports betting.
- Liberty Media has acquired QuintEvents, valuing the company at $313 million.
- This acquisition signifies Liberty Media's expansion into the ticketing and experiential hospitality market within the sports and entertainment industry.
- The move aligns with Liberty Media's strategy to diversify its portfolio and enhance its presence in the sports and entertainment sector.
