June 30, 2020

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The NBA plans on painting “Black Lives Matter” near center court and inside both sidelines in the arenas it will use in Orlando, according to ESPN.

Insurance Volley

Photo Credit: Credit: AELTC/Bob Martin via USA TODAY Sports

Wimbledon, which was scheduled to start on Monday, is set to receive more than $100 million thanks to a pandemic insurance policy. Tournament organizers canceled the event for the first time since 1945 because of the coronavirus.

Wimbledon is one of the rare sporting events to purchase pandemic insurance, paying roughly $2 million a year the last 17 years – a strategy that dates back to the SARS outbreak in 2002.

While that more than $100 million will only pale in comparison to the tournament’s projected $300 million in revenue, CEO Richard Lewis said it is “financially very stable.” But, it will not have the insurance security next year, as Lewis said getting that coverage is “impossible in the current climate.”

However, that isn’t expected to affect the tournament’s long-term viability. If the pandemic continues into next year and limits attendance, Wimbledon organizers could model the tournament after what the U.S. and French Open tournaments do in the coming months.

Professional tennis will effectively restart in August with the Citi Open, which will lead into the U.S. Open. Both tournaments will be held without fans. The plan at the U.S. Open specifically is to put players in a bubble until they are eliminated from the tournament, including at the TWA Hotel at John F. Kennedy International Airport. Despite the safety efforts, top players like Rafael Nadal are still wary of international travel and may skip the tournament, while possible travel restrictions between Europe and the U.S. loom large for other stars.

Fox Drops Golf

Photo Credit: Rob Schumacher-USA TODAY Sports

Fox Sports and the U.S. Golf Association are ending their 12-year, $1.2 billion media rights deal seven years early. The broadcast deal includes the U.S. Open, which is scheduled to start on September 17 after being postponed in June.

NBC Sports, which previously held the rights before being outbid by Fox in 2015, is acquiring the rights from the network and will assume the remainder of the deal through 2027. NBC is also expected to pay just $37 million per year – Fox had been paying $93 million per year.

Broadcast News

— Without live sports, U.S. advertising revenue fell 31% in May year-over-year while April was down 35%. Without the NBA playoffs, WarnerMedia saw a 45.5% ad revenue drop, while ABC and ESPN parent Disney saw its ad revenue drop 39.6%.

— Former NFL quarterback Colin Kaepernick is working with writer-director Ava DuVernay on a six-episode Netflix series called “Colin in Black & White.” The show will detail his teenage years growing up as a Black child in a white adopted family.

— DAZN CEO Simon Denyer is leaving his position, and will reportedly be replaced by current DAZN Chief Revenue Officer James Rushton. The shakeup comes as DAZN has worked to raise money, withheld rights payments for content not delivered, and furloughed staff.

— ESPN announced the Nathan’s Famous Hot Dog-Eating Contest will air live for the 17th straight year on July 4. However, it will be held at a private location on Coney Island in front of no fans.

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Lululemon’s Mirror

Photo Credit: Mary Chao

Lululemon is making a play into the fitness industry as it will buy startup Mirror for $500 million. Last year, the Vancouver-based athleisure company invested $1 million into Mirror, most known for its nearly $1,500 wall-mounted machine that streams workouts with a $39 monthly fee.

“This isn’t just about getting guests to buy apparel,” Lululemon CEO Calvin McDonald told the New York Times. “This is about strengthening our community and our loyalty and our relationship with our guests and memberships, and it’s going to be its own revenue stream model, which we’re excited about.”

Mirror’s revenue is projected to be more than $100 million this year as it aims to break even or bring in a profit next year. Mirror’s founder Brynn Putnam, who will remain the company’s CEO, said the home fitness platform gained traction during the pandemic.

The pandemic was not a “trigger” for the acquisition, though Lululemon did see sales drop 17% to $652 million in the quarter that ended May 3. The same period did see direct-to-consumer sales jump 70% and it reported Monday it has more than $800 million in cash.

The purchase comes as Lululemon seeks to further its connection with its customers, a loyal community it calls “Sweatlife.” Last year the brand organized and hosted more than 4,000 events, including yoga sessions and half marathons and the brand opened a 20,000-square-foot experiential shop with a yoga studio, healthy food restaurant, gym, and meditation area in Chicago. It’s also testing a membership program for $128 per year, which includes exclusive merchandise access, a free pair of yoga pants, free yoga classes and free shipping on online orders.

Positive Tests

Photo Credit: Russell Isabella-USA TODAY Sports

Utah Jazz forward Rudy Gobert’s positive coronavirus test in March shut down the sports world, and while it’s now starting back up, athletes are still testing positive. Gobert’s case in particular has left him with lasting effects, including trouble smelling.

As MLS looks to start back up next month in Florida, more than 26 people connected with the league tested positive, including 18 players. Since training started on June 4, 668 MLS players have been tested, with a 2.7% positive test rate. The NBA recorded a 5.3% positive test rate when it announced its latest test results Friday, or 16 positives out of 302 tested.

Orange County, Florida, where the two leagues will resume action this month, has a 15.9% positive test rate over the past five days.

The NHL has tested 250 players at club training facilities more than 1,450 times in total, with 15 players returning positive results. The league is also aware of 11 other players, including Toronto Maple Leafs star Auston Matthews, that have tested positive outside the league’s protocols.

To try to adopt baseball to this new normal, MLB announced new features – including health and safety protocols – as it heads into its training camp this week. Other new rules include the designated hitter in the National League and teams starting extra innings with a runner on second base.

Health and safety features: 

— Each team must submit a written COVID-19 action plan

— Spitting is prohibited

— Wet rag for pitchers in lieu of licking fingers

— Expanded dugout and bullpen spaces required at ballparks

— Mobile app lineup cards

Because of concerns related to COVID-19, Washington Nationals players Ryan Zimmerman and Joe Ross have opted out of the abbreviated 2020 season, as has Arizona Diamondbacks pitcher Mike Leake.

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What We're Covering

What We're Covering

Special Olympics Chief Marketing, Development, & Communications Officer Kelli Seely joins Fundamentals today at 12:30 pm ET.

League of Legends publisher Riot Games appears to have another esports hit on its hands with the launch of its new FPS video game Valorant.

19-year NBA veteran Jamal Crawford is helping to bring a new basketball gym concept global in an effort to grow the game.

Question of the Day

How many hours a week do you spend playing video games?

 0   1-3   4+ 

Monday’s Answer

45% of respondents listen to one or fewers podcasts a week; 28% listen to two or three podcasts a week; and 27% listen to four or more podcasts a week.

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