Adidas Unscathed by Euro Postponement, Possible Olympics Cancellation

  • Apparel maker estimated only $55 to $77 million in revenue losses if the coronavirus impacts both events.
  • European Championships sales already reflected in fourth-quarter financial performance.

This summer’s European Championships became the latest sporting event to fall victim to the coronavirus on Tuesday. UEFA has officially pushed the international soccer tournament back until next summer, following its suspension of the Champions League and Europa League last week due to the pandemic outbreak. While the long-term impact of Coronavirus on Adidas’ business remains unknown, the postponement of the Euros will not be as substantial to financial performance as analysts believe. Much of the sales derived from the […]

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Players And Teams Pledge to Help Thousands of Part-Time Arena Employees

  • The Bulls and the Blackhawks combined will pay about $3.5 million to cover lost wages for United Center part-time workers for the remaining regular-season games.
  • More than 2,800 hourly event staff are impacted by the suspension of sporting events at Los Angeles’s Staples Center.

The suspension of almost every major professional sports league hit hard for many of the athletes impacted – but the hits are harder for even larger numbers of hourly employees whose pay is impacted as a result of the coronavirus-related cancellations.  Thousands of non-salaried staffers will lose wages with the NBA and NHL taking a hiatus of at least 30 days. The MLB has postponed the start of its season, as has MLS, the PGA, and more. March Madness, which […]

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PwC Survey: Executives Worried About Uncertainty, Looking Past 2020

  • The survey finds 80% of financial leaders concerned about the recession from the coronavirus pandemic.
  • 14% responded that their company is not considering financial actions during the outbreak.

While the sports industry was one of the first to be hit hard by the response to the coronavirus pandemic, the economic ripple effects won’t stop any time soon, according to a PricewaterhouseCoopers survey of U.S. and Mexican chief financial officers. The survey reflects the thoughts of 50 CFOs from U.S.- and Mexico-based companies polled between March 9-11, with 80% coming from Fortune 1000 companies. 54% of those executives said the outbreak has “the potential for significant impact of business […]

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Live Blog: Impact of Coronavirus on U.S. Sports

  • Coronavirus outbreak has lead to the postponement or cancellation of all major college and pro leagues to date.
  • Networks are scrambling to fill hundreds of scheduled programming hours.

Front Office Sports is monitoring news related to coronavirus as it impacts the sports world. This post will be updated with the latest as it develops. March 17th Euro 2020 and Copa America have been postponed for a year, UEFA announced. March 16th MLB has announced that Opening Day for the 2020 season has been pushed back at least eight weeks, in accordance with CDC guidance. May 10 will mark eight weeks from the CDC’s announcement. FiveThirtyEight reports that the […]

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NFLPA Approves CBA to Run Through 2030

  • Deal to add 17th regular season game as early as 2021, players’ share increases to 48%.
  • Playoff expansion from 12 to 14 teams may occur as soon as the 2020 season.

The NFL Players Association passed a new collective bargaining agreement at 11:59 on Saturday, ensuring ten years of labor peace with the owners group and clearing the way for a 17-game season as early as 2021, ESPN reported.  The deal would increase the players’ share of league revenues to 48% from 47% in 2021 and to at least 48.5% when there are 17 regular season games on the schedule. The agreement will also expand the playoff field from 12 to […]

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Ticketing Industry Avoids ‘Apocalypse,’ But Still In Dangerous Times

  • Final Four is a loss of approximately $50 million in ticket resale business.
  • Return in action could create massive demand from fans, depending on economic situations and virus recovery.

For now, the ticketing world has avoided perhaps its worst-case scenario: events without fans. Like the rest of the sports world, however, there are plenty of unknowns in the ticketing space. There are two lenses to look through, Pat Ryan, co-founder of ticket sales strategy company Eventellect co-founder, said. One lense is the ticket marketplace, which is currently in the midst of a devastating scenario. The other is ticket inventory, which is experiencing a more balanced time.   “For marketplaces, whether […]

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Friday Five: NWHL Commissioner and Founder Dani Rylan

  • The NWHL has completed its fifth season since being founded by Rylan in 2015.
  • However, the 2020 Isobel Cup Final, the league's championship game, was postponed as a result of the coronavirus outbraek.

March 13 was supposed to be a celebration for the National Women’s Hockey League, as the league’s Isobel Cup Final was scheduled to be played in Boston. The championship game would have finalized an eventful last 12 months for the fifth year league. On the one hand, the league signed its first-ever revenue-generating media rights deal with Twitch, added a 50/50 commercial revenue sharing agreement with players, and sold the Boston franchise to a group of local investors. However, there […]

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NHL Suspends Season Due to Coronavirus

  • The NHL became the latest league to suspend operations due to the coronavirus outbreak.
  • The league's decision will follow similar announcements from the NBA and MLS, among others.

The NHL has suspended the remainder of the 2019-2020 season. The decision comes on the heels of multiple other leagues and events suspending operations due to the coronavirus outbreak. The NHL will held a conference call with members of its board of governors around 1 pm ET on Thursday, on which commissioner Gary Bettman discussed the suspension of the season and its ramifications, according to sources. There was no objection to the postponement, sources said. It is expected that the […]

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Steven Cohen’s Multiple and the Other Approaches in Sports Franchise Valuation

  • The most likely buyer of a team is an individual billionaire or a consortium lead by a high net worth individual.
  • Sports franchises are generally not valued using an income approach.

(Citrin Cooperman is a proud partner of Front Office Sports) Steven Cohen, the billionaire hedge fund manager who recently ceased negotiations to buy the New York Mets, had a deal on the table for $2.6 billion for an 80.0% stake in the team.  Based on the Met’s 2018 revenue -the most recent publicly available information, this would imply a 21.4x revenue multiple and a capitalization rate of 1.7%.  A capitalization rate is the implied rate of return that an investor […]

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‘I Need a Bob’: The Man Who Helped Dwyane Wade Pioneer Content Ownership

  • Bob Metelus went from part-time photographer to full-time studio owner and director with an A-list clientele - all of which started with his work with Wade.
  • “[Bob’s] the kind of person who can walk into a room and not know anybody and leave knowing 20 people and feel like he’s known them his whole life,” Wade says.

Chris Paul said it first. Jimmy Butler said it next.  Carmelo Anthony, Udonis Haslem, Serena Williams and more eventually decided it for themselves too.  “I need a Bob.” They didn’t need any Bob, though, they needed Bob Metelus – photographer, cinematographer, director, producer and above all, he says, “storyteller.” The problem was, this Bob was taken. He was Dwyane Wade’s. The Miami-based photographer and South Florida native built a brand around his name largely through his work with Wade, although […]

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