August 3, 2020

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COVID-19 continues to impact Major League Baseball, Pac-12 players want demands met before football season, Electronic Arts and Under Armour top earnings expectations, and TikTok’s U.S. future is in limbo.

Baseball in Jeopardy

Photo Credit: Albert Cesare via Imagn

Twenty percent of Major League Baseball games previously scheduled for Sunday weren’t played because of positive coronavirus tests on multiple teams. MLB planned for outbreaks similar to that of the Miami Marlins, but the season remains on the brink of cancelation as COVID-19 affects more teams.

Through Sunday, 17 different MLB games have been postponed in a season less than two weeks old. If the season finishes without further cancelations, the games are expected to be made up through doubleheaders. The league could also determine the postseason based on winning percentage.

TV partners have already been warned that a shutdown could come as early as today and to find alternative programming, according to ESPN’s Keith Olbermann. A stoppage in play could be catastrophic for networks, as Fox and Turner nearly sold out of their MLB ad inventory after television networks lost an estimated $420 million in April without sports.

On Friday, MLB Commissioner Rob Manfred told MLB Players Association Executive Director Tony Clark that protocols need to be followed more closely or the season could be shut down as early as this week. On Saturday, he told ESPN’s Karl Ravech “there is no reason to quit now – we have had to be fluid, but it is manageable.”

Player Demands

Photo Credit: Darren Yamashita-USA TODAY Sports

Pac-12 Conference football players have issued demands to be met before they step on the football field this fall. The demands came at the end of a week where the ACC and SEC announced their fall football plans, joining the Pac-12 and Big 10 as Power 5 conferences that have revealed their intentions to play.

“The coronavirus has put a spotlight on a lot of the injustices in college athletics,” Cal offensive lineman Valentino Daltoso told Sports Illustrated. “The way to affect change and the way to get your voice heard is to affect the bottom line. Our power as players comes from being together. The only way to do this is to do something collectively.”

Among the player demands: 

— Mandatory COVID-19 safety measures set by a third party and ability to not play without losing eligibility or roster spot.

— 50% of each sport’s total conference revenue distributed evenly among athletes in their respective sport and 6-year athletic scholarships.

— Freedom to secure representation and earn money for use of name, image, and likeness rights.

— Preserve existing sports by eliminating excessive expenditures, such as cutting administrator pay and bonuses.

— Efforts to end racial injustice in college sports and society, with additions like a permanent civic engagement task force.

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Under Armour, Electronic Arts Beat Estimates, Go Two Ways

Photo Credit: EA Sports

Both Electronic Arts and Under Armour ended up with well-received earnings reports following very different quarters. Electronic Arts saw its revenue increase nearly 21% year-over-year during its strongest financial first quarter in its 38-year history.  Under Armour posted higher-than-expected revenue numbers; however, revenues were down nearly 41% from the previous year.

EA’s report was likely a result of the multitude of stay-at-home orders across the globe as revenue reached $1.46 billion for the quarter ending June 30, up from last year’s $1.21 billion. Shares for EA have risen roughly 31% since the beginning of the year.

Under Armour, which had a tumultuous quarter, said it was encouraged by its ecommerce sales and momentum as stores reopened. However, it warned that sales could dip as much as 25% in the second half of 2020. UA’s stock has lost nearly 51% of its value this calendar year.

Earnings To Watch This Week:

8/3: Take Two Interactive

8/4: Activision Blizzard, Fox Corp., Sony, and Walt Disney

8/5: Discovery Communications and Roku

8/6: Adidas

Time’s Up?

Photo Credit: Kelley L Cox-USA TODAY Sports

TikTok’s future in the U.S. remains up in the air after several news-filled days for the video-sharing social network. On Friday, President Donald Trump said he planned on banning TikTok after weeks of criticising the app and its parent company ByteDance over security issues and its ties to China.

Microsoft has emerged as a buyer for the platform’s U.S. operations, with the company announcing yesterday that it would continue its pursuit after consulting with Trump. Discussions between ByteDance and Microsoft are expected to conclude by September 15, but Microsoft warned that “there can be no assurance that a transaction which involves Microsoft will proceed.”

Any significant change or true ban to TikTok would be a hit to the sports industry, which has flocked to the platform to reach the coveted Gen Z audience. TikTok was downloaded more than 315 million times globally in the first quarter of 2020, a record for any app during a single quarter.

The unsteadiness around TikTok in recent weeks has caused teams to shy away from further investment in the platform, an MLS team social media executive told FOS. Other team content creators said they’ll continue to use TikTok until it’s banned, and that if it is, it won’t be the first platform to come and go.

Notable Sports TikTok Followings: 

Overtime: 11.9M followers

NBA: 11.5M

ESPN: 10.5M

WWE: 6.6M

House of Highlights: 6.1M

NFL: 4.4M

Benny The Bull: 2.7M

Golden State Warriors: 1.9M

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What We're Covering

What We're Covering

Louis Riddick, Brian Griese, and Steve Levy are positioned to be ESPN’s new “Monday Night Football” announcer team.

Minor League Baseball teams are turning to golf to fill their empty stadiums amid a canceled season.

WNBA teams have looked to monetize content and unique merchandise opportunities as ways to generate revenue locally while playing in the league’s Florida bubble.

Question of the Day

Do you have a TikTok account?

 Yes   No 

Friday’s Answer

59% of respondents don’t believe college sports will be played this fall.

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