Sports

New Nike boss could consider becoming Big Sneaker

18 Oct 2024

The $126 bln athletic wear maker is struggling with a weak consumer, fashion missteps and a saturated market. Fresh CEO Elliott Hill can try and design his way to growth or go big. A tie up with rival Adidas would consolidate share with the benefit of chunky cost savings.

NFL gives buyout barons a view from cheap seats

28 Aug 2024

The US football league is giving private equity firms access to a coveted investment venue. Returns like the one on the $6 bln Washington Commanders are tempting enough for Carlyle and others to accept tough terms and cede some profit. It’s a steep price for a lousy ticket.

Paris Olympics warrant medal for budget restraint

26 Jul 2024

The French capital has forked out $9 bln on the Games, but compared to some previous hosts the cost overruns have not been excessive. Pre-existing infrastructure helped. Given France’s political ructions and high deficits and debt, such relative sangfroid is well timed.

Good luck finding a new Boston Celtics pot of gold

2 Jul 2024

The leprechaun-logoed NBA champs are for sale after two decades under venture capitalist Wyc Grousbeck’s group. At a mooted $6 bln, the investment return would top US stocks and private equity. A repeat depends on the dubious scenario of broadcast rights rising wildly again.

NFL can turn a $5 bln court loss into a touchdown

1 Jul 2024

The American football franchise may have to pay billions after a jury deemed bundling teams’ Sunday games to be anticompetitive. The NFL is TV’s biggest prize, so a single package commands top dollar. But other leagues prove dicing up rights can spark a wider feeding frenzy.

Building the WeWork of workouts will be a stretch

21 Jun 2024

Life Time is flexing its luxe brand of gyms to fitness-crazed New Yorkers and Bostonians. Selling property slims the business model, but fattens the long-term rents backed by uncertain membership fees. Putting mega-clubs into malls and office towers also bulks up the fad factor.

Oaktree can still score a skilful goal with Inter

6 Jun 2024

The US fund ended up owning the loss-making Italian club after the previous owner missed a payment. Fetching valuations similar to what Elliott secured for rival AC Milan looks tricky. Yet American interest in soccer and on-field success point to a sale price exceeding $1 bln.

Basketball deal will help settle TV score

7 May 2024

Comcast is trying to steal NBA rights from rival Warner Bros Discovery for its Peacock streamer and NBC network. The indebted owner of TNT and HBO is probably tempted to pass up the $2.5 bln annual cost. But with live sports so pivotal for viewership, it would be a big miss.

Motor-racing deal faces quick antitrust pitstop

11 Apr 2024

F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.

Adidas catch-up remains off the necessary pace

13 Mar 2024

The $37 bln sneaker maker is emerging from its Yeezy trainer crisis. CEO Bjorn Gulden’s focus on fashionable trainers is helping to grow sales. But given the ropey economic outlook, which is hitting rival Nike, investors don’t yet look convinced he can deliver on his ambitions.

Capital Calls: Temu’s spending

12 Feb 2024

Concise views on global finance: The Chinese shopping app’s Super Bowl commercial is part of a broader effort to win market share. It’ll help companies like Meta, but Temu now has a chance to muscle in on Amazon’s turf and force the e-commerce giant to compete.

PGA political golf drama is Saudi’s Trump card

12 Feb 2024

Senators accused former Citi banker Michael Klein and other consultants of siding with PIF over an agreement with the PGA and its investments in the US. While the golf tie-up remains in flux, political scrutiny is intensifying. A delay could work in the Saudis' favor.

Taylor Swift offers masterclass in animal spirits

9 Feb 2024

The pop megastar finds herself in the middle of multiple fierce contests, from the Super Bowl to streaming to the US presidential election. Competition works wonders for asset prices, and Swift is no exception. The question is whether she can reliably pick a winner.

China’s challenges come dressed in sportswear

5 Jan 2024

Li Ning, which sells athletic goods and leisure wear, was the worst-performing Hong Kong blue chip in 2023. A real-estate play bombed while cost-conscious shoppers are switching back to cheap local brands and foreign rivals like Nike. The retailer reflects its country’s woes.

Man Utd deal is messy substitute at trophy price

27 Dec 2023

Tycoon Jim Ratcliffe’s purchase of a 25% stake values the British club at a hefty $6.2 bln. That still leaves him running behind the Glazer family with no easy path to control. A fuzzy turnaround plan means the Red Devils’ fortunes on the pitch may not recover soon either.

Baseball star’s payday channels Goldman’s Gus Levy

12 Dec 2023

Shohei Ohtani is deferring 97% of his $700 mln deal with the Dodgers and will cash checks until 2043. The structure gives the team co-owned by Guggenheim’s CEO financial wiggle room. This aspect of Moneyball embraces a long-term greedy ethos that’s extreme even for Wall Street.

Soccer will inch towards financial rationality

8 Dec 2023

TV income is stagnating or shrinking in the big European leagues, and regulatory limits on clubs’ spending will soon bite. Chelsea, Man United and others must either do a much better job at monetising their vast global fanbases, or finally clamp down on player salaries.

NCAA gets B for paying jocks; for an A, drop the C

6 Dec 2023

The National Collegiate Athletic Association’s plan to uncap amateur earnings while attending school is a long-overdue change for good. Its blueprint has flaws, however, and keeps control in the hands of a few. A good next step would be to separate sports from higher education.

Saudi’s Indian cricket play works for both sides

30 Nov 2023

The kingdom is looking to invest as much as $5 bln in the Indian Premier League. In this Viewsroom podcast, Breakingviews columnists discuss what it means for the sport and how it sizes up against Riyadh’s growing global sporting ambitions.

 

With Saudi, India can push new cricket boundaries

20 Nov 2023

India is on course to dominate the sport despite its defeat in the cricket World Cup final at the weekend. The kingdom has discussed a deal valuing the Indian Premier League at $30 bln, per Bloomberg. It’s a wise departure from Riyadh’s heavy-handed approach to sports investing.