Credit ratings firms remain confident about the NBA, NFL and MLB despite the leagues reportedly experiencing a combined revenue drop of $13 billion.

Moody’s Investor Services suggests most municipally-owned stadiums have liquidity to survive the revenue losses from the pandemic. Fitch Ratings is optimistic the setbacks are temporary and are mitigated by current and future media rights deals.

MLB signed a 7-year, $3.75 billion deal with Turner in September — an increase of roughly 65% over its previous agreement — showcasing the potential safety net that future contracts could provide.

Revenue Losses by League this Season:

MLB: $7.7 billion

NFL: $4 billion (projected)

NBA: $1.2 billion

The NBA will start the 2020-21 season on Dec. 22 with a 72-game schedule. The National Basketball Players Association voted to approve the season plan following discussions with the NBA’s Board of Governors yesterday. 

Beginning the season before Christmas Day and finishing the postseason prior to the start of the Tokyo Olympics in July could be worth an additional $500 million to $1 billion to the league and players.

Arena suites reportedly could be open to fans at 25-50% capacity for the 2020-21 season tip-off, based on local regulations. Up to $4 billion is at stake if fans are limited at games next season.

Peloton reported $757.9 million of revenue in the first quarter of its 2021 fiscal year, up 232% compared to last year. 

A 137% year-over-year jump in connected fitness subscriptions helped boost revenues past projections. Peloton revised its 2021 fiscal year estimates upward for revenues and connected subscribers to $3.9 billion and 2.17 million, respectively.

Peloton shares are up 343% year-to-date, with the company now closing in on a $40 billion market cap. In a recent survey, 19% of young adults said Peloton is a must-have brand.

Peloton Revenue by Fiscal Year:

Projected 2021: $3.9 billion

2020: $1.8 billion

2019: $915 million

2018: $435 million

2017: $218.6 million

2016: $60 million

Video game giants Take-Two Interactive and Electronic Arts both reported a decrease in revenue in their latest quarters yesterday. 

Take-Two’s digital sales climbed 16%, which drove a 38% jump in profit, despite an overall drop in revenue. Electronic Arts reported a 15% decrease in revenue, but net bookings for the past 12 months were up 8% to $5.577 billion.

A recent revenue estimate projects the video game industry will finish the year up 20% to $174.9 billion, in part because of the pandemic boosting gaming. 

2020 Video Game Forecast by Sector:

Mobile — $86.3 billion

Console — $51.2 billion

PC — $37.4 billion