March 8, 2021

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Front Office Sports

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Turns out, investing in sports data is a really good bet.

Sportradar Going Public at $10B Valuation

Jerome Miron-USA TODAY Sports/Design: Alex Brooks

Sportradar has an agreement to go public at a $10 billion valuation. Should the deal go through, it will be the biggest sports-related SPAC merger in history.

The data aggregator signed a letter of intent to merge with Horizon Acquisition Corp. II, a blank-check company led by Los Angeles Dodgers minority owner Todd Boehly. The SPAC raised $525 million in an IPO last year.

Sportradar is registered in Switzerland, and the SPAC is based in the Cayman Islands, which may allow the deal to sidestep concerns around U.S. taxation related to purchases of foreign companies.

Sportradar has spent the last two decades establishing itself as a premier provider of sports-related data. It has partnerships with the NBA, NFL, MLB, NHL, Nascar, FIFA, and many other leagues. In 2018, shortly after the U.S. Supreme Court allowed states to legalize sports betting, it was valued at $2.4 billion.

  • U.S. customers provided just 6% of the company’s overall revenue in 2019.
  • Sportradar positioned itself as a risk mitigator for leagues experiencing an influx of betting. Last month, it said it would offer gambling fraud detection to any league for free.
  • The company markets its API as an immediate source of data from box scores to player movement tracking. Its partners include Google, Facebook, Twitter, DraftKings, FanDuel, CBS Sports, Yahoo Sports, and over 1,000 more.

Boehly’s first sports-related SPAC is still seeking a company to acquire and take public. One big winner of the deal? Canadian pensioners — the Canada Pension Plan Investment Board is among Sportradar’s biggest investors.

New Balance Focuses on Women’s Lacrosse

Brine Lacrosse/Design: Alex Brooks

New Balance is responding to the growing presence of women’s sports.

The company announced that its subsidiary Brine will rebrand itself exclusively as a women’s equipment manufacturer by ceasing production of men’s lacrosse gear, per Sportico. The brand will also change its logo and messaging.

Since 1922, Brine has served as a manufacturer of lacrosse, soccer, volleyball, and field hockey equipment and was acquired by New Balance in 2006. 

Brine has had overlapping product lines with sister company Warrior, which New Balance acquired in 2004. The product overlap and growth of women’s lacrosse led New Balance to shift its focus. 

“Warrior will be our brand for men, and now Brine will be a brand for women. [We’re] differentiating ourselves in the market where most brands are playing in this space for both,” Warrior CEO Cindy Abbott told Sportico. 

Brine’s rebranding comes amid increasing emphasis on creating equal opportunities for women in sports. Last week, a group of Olympians led by Alex Morgan and Sue Bird launched a media startup driven by women.

“We intend to continue to bring innovation to the lacrosse industry,” Abbot said. “Meanwhile, we’ll continue to focus on surrounding these women with a community and a platform, which will allow them to be seen and heard.”

COURSE

Celebrating The NBA Shotmakers

During last night’s All-Star Game, NBA fans were treated to the MTN DEW 3-Pt Contest. Warriors superstar Steph Curry gave an all-time performance and won the contest for the second time in his career.

Learn how it all comes together in Sports Marketing Essentials, presented by Pepsi Sports. The free online course consists of eight-lessons, including Branded Events and League Activations, where Eric Robinson, Director at Pepsi’s agency, Genesco breaks down how they plan and execute league activations including the MTN DEW 3-Pt Contest during the NBA All-Star Game.

Sign up and complete the course by March 31 to be entered for the chance to win autographed merchandise from Pepsi athletes.

FC Barcelona’s Second Chance on Joan Laporta

FC Barcelona/Design: Alex Brooks

Things are finally looking up for FC Barcelona after a spell of front office turmoil.

Just days after the club’s offices were raided, resulting in the arrest of former president Josep Maria Bartomeu and three other officials, the club has named a new president — Joan Laporta.

“New” doesn’t cover what Laporta means to the team. He previously served as president of the club from 2003 to 2010, winning four La Liga titles and marking superstar Lionel Messi’s debut with the club.

In 2008, rumors escalated that Laporta would resign due to pressure from fellow directors following a majority vote against him — but the vote was not enough to hold new elections. The decision led to the resignation of eight of the club’s 17 board members.

After the reconfiguration, Barça went on to win the treble of La Liga, the Copa del Rey, and the Champions league in 2009. They also won the Supercopa de Espana, UEFA Super Cup, and the FIFA World Club Cup before the end of his first tenure in 2010.

Bartomeu stepped down in October 2020 after 20,000 fans signed a petition calling for his resignation. Laporta officially entered the presidential race in January after presenting over 10,000 signatures — 9,625 of which were validated — and won the election with 54.2% of the vote. 

He will navigate the biggest debt crisis in European soccer at more than $1.3 billion and faces the prospect of  club talisman Messi leaving the team. Barcelona says it expects to lose a total of $600 million due to the pandemic.

“We want the joy and happiness to be back in the club,” Laporta said. “The best thing you can do for Barça is to love it.”

Conversation Starters

Conversation Starters

  • The Indianapolis 500’s first all-female racing team announced its first sponsor. Paretta Autosport will partner with MoneyLion on a sponsorship deal and a program to support women in finance and STEM careers.
  • A University of Oregon track and field facility got a very expensive makeover with the help of Nike co-founder and Oregon alum Phil Knight. Renovations on the century-old facility, due to reopen soon, topped $270 million, according to an estimate by the university. The exact financials are private, per Knight’s wishes.
  • A media, sports, and entertainment SPAC led by Dallas Stars executive James Lites filed for an IPO valued at $250 million. The company board includes NFL legend Roger Staubach and multiplatinum Van Halen rocker Sammy Hagar.
  • Los Angeles Clippers star Kawhi Leonard said he “plans” on playing for Team USA in the 2021 Tokyo Olympics. Leonard will reunite with his former Spurs coach and current Team USA coach Gregg Popovich. Get more stories like this in The Association — a free, daily NBA newsletter. Click here to subscribe.

AWARD

Nominate the Next Rising 25

Like Starter jackets in the 90s, they’re innovative and shaking up the sports industry. 

The Front Office Sports Rising 25 Award, presented by Anheuser-Busch, celebrates the careers of the brightest young stars in the business of sports. To date, we’ve honored 100 individuals and we’re looking for our next groups of innovators. 

Know someone whose innate passion and tireless dedication is making an impact? Tell us about them by nominating them for the Rising 25 Award. Nominations open now through Wednesday, March 23rd.

Market Movers

Market Movers

U.S. stocks experienced gains as progress towards a COVID-19 relief package is made. Here’s a look at how sports-related stocks performed:

Up:

GameStop Corp. (NYSE: GME) gained 40.64%

ViacomCBS Inc. (NASDAQ: VIAC) gained 12.69%

Hibbett Sports, Inc. (NASDAQ: HIBB) gained 11.74%

Down:

fuboTV Inc (NYSE: FUBO) dropped 8.75%

Allie Esports Entertainment Inc. (NASDAQ: AESE) dropped 8.61%

Gravity Co., Ltd. (NASDAQ: GRVY) dropped 7.01%

(Note: All as of market close on 3/8/21)

What to Watch

What to Watch

The Colorado Avalanche (13-7-2) host the Arizona Coyotes (11-10-3) tonight at Ball Arena. The last time the teams met, the Avalanche won 3-2 over the Coyotes. Colorado has won four of its last six games. 

Dennis Gilbert is out for the Avalanche due to COVID-19 protocols. 

How to Watch:

9 p.m. ET on ESPN+

Betting Odds:

Avalanche -1.5 || ML -186 || O/U 5.5

Pick: Coming off back-to-back overtime games against the Ducks, the Avalanche will want to gain momentum in the West Division against a Coyotes team searching for consistency. The Coyotes are 1-6 in their last seven games against the Avalanche. Take Colorado and lean over.

Who ya got? Reply to this newsletter with your prediction for the Coyotes-Avalanche winner and final score. Nail it, and you get a mention in Tuesday’s FOS PM. Don’t forget to include your Twitter handle.

Shoutout: Jan Blachowicz was the winner of UFC 259’s main event versus Israel Adesanya. The light heavyweight bout went all five rounds, with all three judges scoring four rounds in Jan’s favor. None of our readers predicted the upset!

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Written by Owen Poindexter, Justin Byers, Abigail Gentrup

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