Sports Business

Our 2018 predictions on Reuters TV

31 Dec 2017

From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.

European soccer’s spending splurge will intensify

29 Dec 2017

Transfer fees like the $263 mln Paris St Germain paid Barcelona for Neymar have stoked talk of a bubble. But increased spending is mostly justified by the soaring value of broadcasting rights. If U.S. tech giants join the action in 2018, players will reap the benefits.

Man City can narrow the deficit in Chinese soccer

29 Dec 2017

When it comes to mainland investment in European soccer and vice versa, the score is $3bln-nil. China’s splurge is over, but connecting old teams and new fans still makes sense. The Abu Dhabi-owned group behind Manchester City could be the first heavyweight to go the other way.

Gym chain’s China private equity workout has legs

19 Dec 2017

An ex-Goldman banker’s buyout firm is backing posh Hong Kong gym chain Pure. Fitness investments can turn ugly. One big opportunity, however, is expansion in China where the $4.4 bln health club market is expected to grow 20 pct annually. That sweat could help to pump up returns.

Lululemon retailing regime nears peak fitness

12 Dec 2017

A hot lifestyle brand, a brick-and-click sales model that keeps prices high and a growing opportunity to outfit men has the leisure-wear maker outpacing its flabby peers. Yet growth goals look a stretch and margins struggle to keep up. A premium valuation demands constant toning.

Cox: Popping gun bubble to bring financial casualties

12 Dec 2017

Five years since Sandy Hook, the firearms trade has never had a better friend in the White House than Donald Trump. Yet the industry is in terrible shape, having already fulfilled years of future demand. Storied Remington, maybe others, will face bankruptcy in 2018.

Orange can squeeze out a higher valuation

7 Dec 2017

The telco’s share price has been held back by high investment, price wars, and the French state’s holding. But the company is ahead of rivals in laying fibre broadband and can pay bigger dividends. That will narrow the 16 percent discount at which it trades to European peers.

New Delhi bowls Rupert Murdoch a bouncer

4 Dec 2017

Star India may be forced to share its $2.5 bln cricket rights with a state broadcaster if the league is deemed of “national importance.” That might score the government some points. For Murdoch, who is fielding interest for parts of his Fox empire, it would be a sticky wicket.

Holding: Bet on Supreme Court to lift gambling ban

1 Dec 2017

New Jersey’s suit to legalize sports wagers makes financial policy sense, but the constitutional argument is stronger. Limits on the feds’ power mean states do their own thing on everything from pot to guns. A court already inclined that way is likely to extend it to betting.

Holding: Corporate America loves its bad Boies

10 Nov 2017

The lawyer David Boies may have helped disgraced mogul Harvey Weinstein try to hide his abuses, but don’t expect more than a shrug from the business world. In a realm that prizes results, the defender of the likes of ex-AIG boss Hank Greenberg will remain the go-to consigliere.

UK gambling crackdown boosts M&A odds

7 Nov 2017

A government squeeze on betting machines known as the “crack cocaine of gambling” could knock 20 pct off bookies’ operating profit. Extra regulation makes scale more important. Once the rules are clear, targets like Ladbrokes will be easier to value. Expect a flurry of deals.

College-sports fraud case obscures the real crime

26 Sep 2017

Federal prosecutors have charged 10 people, including four coaches, with using bribes to influence university basketball players. The government says the case exposes the dark underbelly of the sport. But fraud flourishes largely because the NCAA cartel refuses to pay athletes.

NFL fumble leaves broadcasters facing the penalty

25 Sep 2017

President Trump is attacking football players who don’t stand for the national anthem. But falling TV ratings are a deeper-seated problem for the sport. The likes of Disney and Fox that shelled out billions for the rights face pain. But CBS could be in for a major sack.

Cheap data feeds Murdoch’s Indian cricket pitch

7 Sep 2017

Rupert Murdoch-backed Star India is paying $2.6 bln for IPL rights, outbidding new rivals like Facebook. The huge sum highlights the sport’s rapid rise and a rush to secure local content. Cheap mobile data could help lure the viewers and advertisers needed for this to pay off.

Record basketball price is timely bet on Houston

6 Sep 2017

The owner of the Landry's restaurant empire will pay $2.2 bln for the NBA's Rockets. Buying a trophy asset as the city rebuilds after Hurricane Harvey makes for awkward timing. And yet sports often unify a community and the big investment suggests abiding faith in a recovery.

Soccer world will miss Chinese sugar daddies

20 Jul 2017

State media has questioned Suning’s purchase of Inter Milan, part of a $3 billion mainland soccer splurge, amid an offshore M&A clampdown. The acrobatic financing of AC Milan may attract Beijing’s attention next. Benching Chinese buyers could hurt cash-strapped European clubs.

Amazon deal can help Nike get back on track

30 Jun 2017

The $96 bln sportswear maker confirmed it will sell its sneakers on Amazon after years on the sidelines. Though still the dominant brand, it has been losing share mainly to Adidas. The initiative, coupled with its own direct-to-consumer push, could make Nike a pacesetter again.

Soccer attack weirdly converges risk factors

21 Apr 2017

A bombing of Borussia Dortmund's team bus was carried out by a man using leveraged options to bet against the club’s stock, prosecutors say. A similar unsuccessful plot recently involved U.S. retailer Target. The mix of financial weapons and real ones is a disturbing new trend.

Mallya arrest could energise India bad debt fight

18 Apr 2017

Liquor baron Vijay Mallya fled to the United Kingdom after banks sued to recover $1.4 billion. If his arrest leads to extradition it would make an example of the poster child of India’s bad loan problem. That would help New Delhi sell any bailout of state banks to the public.

Skiing business goes tri-polar with Intrawest deal

10 Apr 2017

The $1.5 bln takeover of the operator of Stratton and Steamboat Springs resorts by Aspen Skiing creates a potential rival to primo consolidator Vail. With skier ranks mostly flat, these two will battle it out with independent resorts that will either huddle together or sell.