October 14, 2022
POWERED BY
Tom Brady’s namesake brand just signed its first long-term partnership. Jackson State quarterback Shedeur Sanders, son of Deion Sanders, will work with the BRADY brand by testing products, in addition to wearing apparel in public and at games. The GOAT himself called Sanders “one of the most influential players of his generation.”
Dale Zanine-USA TODAY Sports
Soccer’s popularity is picking up steam across the globe, and this year’s Major League Soccer regular season was a clear sign of its growth in North America.
The league hosted more than 10 million fans during the 2022 regular season, marking the highest ticket revenue clubs have ever generated — and far exceeding the record 8.6 million fans in 2019, according to Forbes.
Atlanta United FC led the league’s average attendance with 47,116 fans, while Charlotte FC broke the single-game attendance record when it hosted 74,479 fans at the start of the season.
On Disney networks, viewership reached 356,000 for people aged 2 and up — the league’s highest average ever. FOX Deportes and ESPN Deportes had a 13% year-over-year viewership increase, and TSN in Canada saw an 8% increase.
MLS recorded increases in merchandise sales, viewership, and online engagement.
MLS isn’t slowing down.
Next year, the league will add a new team — St. Louis City SC — and start a new, exclusive media deal with Apple reportedly worth at least $2.5 billion.
“It’s all with a view to the 2026 World Cup being here, Canada, and Mexico, and the ability to really draft off that incredible moment, which will be the biggest sporting event the world’s ever seen at that point,” said David Bruce, MLS senior vice president of brand and integrated marketing.
Chelsea FC
Chelsea’s new owners think it could be the top-earning soccer team in the world.
Clearlake Capital Partners co-founder and managing partner José E. Feliciano said that the Premier League club is “one of the best sports properties in the world” and has the potential to double its revenue.
Feliciano also noted that Chelsea’s women’s team could see huge growth.
“There’s no reason why that property should not be several hundred million dollars of revenue,” he said.
The new ownership group is expected to invest in expensive repairs to Chelsea’s Stamford Bridge stadium.
Renovations could raise the venue’s capacity by 40% to around 60,000, comparable to Arsenal’s Emirates Stadium. Arsenal brought in $108.7 million in matchday revenue in the 2018-19 season — compared to Chelsea’s $85.6 million.
A revamped facility could also allow the team to earn more from luxury boxes.
SPONSORED BY DRAFTKINGS
From sports betting to NFTs, DraftKings has the action you crave this NFL season.
DraftKings Daily Fantasy Sports let’s you:
With NFL in full swing, get your game on and play for millions in contest prizes for the remainder of the season!
Vuori
Activewear brand Vuori continues to expand as it aims to compete with giants in the industry including Nike and Lululemon.
Vuori — which has thrived as an online retailer and is backed by Japanese investment firm SoftBank — opened its first brick-and-mortar store in New York on Thursday as part of a plan to open about 30 locations globally by the end of 2022.
In October 2021, Vuori received a $400 million investment from SoftBank valuing the company at $4 billion. The investment marked one of the largest ever in a private apparel company.
The activewear market is expected to grow to $546 billion by 2024 as several top brands have benefited from increased profits and investment due to pandemic-related demand.
Lululemon generated $1.87 billion in revenue in Q2 2022, a 29% increase year-over-year, surpassing Wall Street estimates of $1.77 billion. The company, which has 600 stores worldwide, has maintained its outlook of doubling revenue to $12.5 billion from 2021 to 2026.
Nike — the world’s most valuable sportswear brand at $33.2 billion — posted $12.69 billion in revenue in fiscal Q1, a 4% uptick compared to the same period last year.
The company saw its net income fall 22% year-over-year to $1.5 billion during the quarter and reported inventories of $9.7 billion — a 44% increase compared to Q1 2022.
Kirby Lee-USA TODAY Sports
NFL owners are in a standoff over who is responsible for paying a $790 million settlement.
The charge comes from a settlement with the state of Missouri over a lawsuit regarding the Rams’ move from St. Louis to Los Angeles in 2016.
Missouri has already received its funds from the NFL, which totaled $513 million after attorney’s fees. In June, officials voted to move the money from low- or no-interest funds to high-interest ones.
The Athletic reported in May that the NFL garnished $7.5 million from each of the other 31 teams — a total of $232.5 million — to help cover expenses related to the move. Many owners were reportedly angered by the move.
Kroenke had agreed to indemnify other owners, many of whom were not expecting to pay anything related to the move.
He has argued that his efforts to build a stadium and fanbase in Los Angeles, as well as his willingness to take on the Los Angeles Chargers as tenants after their move from San Diego in 2017, should be factored into the negotiations.
SPONSORED BY KORE
Twitch. Snapchat. E-Sports.
A decade or two ago, terms like these would mean nothing to us…but now, they’re some of the biggest influences in the sports industry – as both engagement platforms, and areas ripe for sponsorship.
But with new opportunities come new challenges, and the sporting world is no exception. As sports sponsorship models have evolved over the years, so too have the tools that brands and rights holders use to manage them.
Join us on October 25 at 1 p.m. ET as Owen Poindexter, Editor at Front Office Sports, sits down with Marc Roots, Chief Product Officer at KORE, and Scott Tilton, Executive Vice President at KORE and Founder of HookIt, for a conversation about The Evolution of Technology in Sponsorship.
Register for the webinar right here.
*All times are EST unless otherwise noted.
*Odds/lines subject to change. T&Cs apply. See draftkings.com/sportsbook for details.
Do you prepare your own tax filings?
Thursday’s Answer
38% of respondents plan to watch the MLS Playoffs this year.
If this email was forwarded to you, you can subscribe here.
Copyright © 2022 Front Office Sports. All rights reserved.
80 Pine Street Suite 3202 New York, NY 10005
