Sports Business

Sporting goods IPO plays winning China game

18 Jan 2024

Amer is growing fast in the home market of Fujian-based Anta, which co-bought the maker of Arc’teryx parkas and Salomon skis in 2019. Using Nike, Lululemon and On as guides imputes a $15 bln valuation. But chunky debt and the Wilson tennis brand weaken its competitive edge.

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.

Paramount casts itself in next season’s M&A hit

21 Dec 2023

By starting talks with potential acquirer Warner Bros Discovery, the Redstone family is effectively putting its $10 bln media empire in play. There are multiple ways to structure a deal, and many possible suitors. It’s just not clear debt-laden WBD is the best for the role.

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.

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.

WWE McMahon’s slugfest loss is shareholder win

13 Nov 2023

The person behind the professional wrestling firm is selling shares just after it merged with Endeavor’s UFC. That could be a precursor to him bowing to Hollywood mogul Ari Emanuel. McMahon may feel it’s anticlimactic. But giving investors clarity on leadership is a victory.

Endeavor’s envy could become contagious

7 Nov 2023

The $12 bln talent agency and WWE owner led by Hollywood mogul Ari Emanuel is eyeing options after billionaire François-Henri Pinault paid a rich price for peer CAA. Silver Lake, with 71% of the vote, wants to take it private. A stingy bid risks making minority investors jealous.

Disney nudges ESPN closer to break-up prime time

19 Oct 2023

The entertainment giant disclosed the finances of the sports network in which boss Bob Iger wants to sell a stake. At first glance, ESPN could be worth nearly $30 bln. The shape of any deal is up for grabs, but at least Disney shareholders have a clearer view of what they own.

Sports teams’ trophy status boosts private equity

10 Oct 2023

A stake sale could value the NBA’s Golden State Warriors at $7 bln, making it one of the world’s most valuable teams. Billionaires’ scramble for trophy assets is pumping up price tags. That makes sports one of the safest bets around for buyout shops taking a piece of the action.

Retailer ‘shrink’ becomes too big to box up

3 Oct 2023

American stores lost $73 bln to theft last year, a nearly 20% rise from 2021, while Target just blamed crime for nine closures. Few chains report specifics, however, stirring doubts about anecdotal evidence. Consistent disclosure would help keep investors from getting fleeced.

Capital Calls: Pelululemon

28 Sep 2023

Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.

UFC’s Saudi challenge may be less than a body blow

22 Sep 2023

After its WWE merger, the mixed martial arts promoter’s $15 bln parent TKO faces a smack from Saudi-backed PFL. But the latter is targeted more at non-US fans, a lesser market for UFC. Saudi may also struggle to scale up enough to deliver the knockout blow it managed with golf.

John Malone wields hammer over media coffin

6 Sep 2023

A dispute has cut Charter’s cable viewers off from Disney content. Charter backer Malone is betting traditional TV is fading, risking $17 bln of rich fees for Disney. Forcing a showdown makes sense. It’s hard to see why distributors should subsidize the pivot to streaming.

US retailers lace up for battle on two fronts

25 Aug 2023

Shares in retailers like Foot Locker and Macy's have tumbled this week after unveiling dim outlooks. Price-conscious consumers are part of the problem, but others, like Dick’s Sporting Goods, are also citing theft. Both are big issues, and neither looks to be improving.

Saudi binge is fiscal free kick for European clubs

18 Aug 2023

The Kingdom’s top league has spent some 600 mln euros this year buying star soccer players, like striker Neymar. The boom in transfers helps Europe’s teams meet new wage rules. It could be an own goal, but Saudi’s dream of becoming a football powerhouse looks like a distant risk.

Wynn shrewdly pares online betting chips

14 Aug 2023

In the face of fierce competition from MGM, DraftKings and others, Wynn Resorts is concentrating its digital sports betting in markets with actual casinos. Like poker, online betting is a winner-takes-most game. That means there will be loads of losers.

Capital Calls: Robinhood, Influencers, Inflation

3 Aug 2023

Concise views on global finance: The $10 bln brokerage’s first profitable quarter does little to quell growth fears; Adidas and AB InBev are unexpectedly resilient amid an online storm; the Bank of England has a longer inflation fight on its hands than its peers.

Saudi Mbappé bid even less rational than it looks

25 Jul 2023

State-owned Al Hilal offered $1.1 bln in fees and pay for soccer star Kylian Mbappé, reports say. Spain’s LaLiga gets less in international broadcast revenue a year. Saudi’s nascent league would gain, but the data doesn’t suggest either it or “sportswashing” overall will work.