July 27, 2021

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Barstool Sports will be the official sponsor of a New Year’s Day bowl game this season. In June, Jimmy Kimmel got a bowl game in Los Angeles named after him. What’s next?

USA Today Publisher Strikes Landmark Sports Betting Deal

Tim Loerhrke-USA TODAY/Design: Alex Brooks

Gannett, publisher of USA Today and more than 100 daily newspapers in the U.S., landed a deal with a major sports betting company.

The five-year, $100-million agreement with Tipico USA Technology is a first-of-its-kind deal for a major U.S. newspaper publisher. It reportedly includes $90 million in media spend, with Tipico providing sports betting content throughout the USA Today Network.

In May, Gannett recorded a decline in first-quarter revenue but its digital subscription business is growing. 

Ark Invest estimates the U.S. sports betting market will hit $37 billion by 2025 — a significant increase from the current $9.5 billion figure.

  • Eleven states have passed the $1 billion wager mark.
  • In the first three months of 2021, sports betting revenue reached $961.1 million, according to the American Gaming Association.

The sports audience for Gannett is already established. The network has a footprint in 46 states with roughly 200 sports websites after being acquired by GateHouse Media in a $1.38 billion deal two years ago.

Tipico’s foray into the newspaper industry isn’t the first time a betting company has teamed up with a media outlet. The Associated Press, Barstool Sports, CBS Sports, and ESPN have all partnered with sports betting companies.

Technavio expects the global sports betting market to grow by $134 billion from 2020 to 2024.

Hyperice Acquires Core, Enters $4.2B Meditation Apps Market

Core/Design: Alex Brooks

Hyperice announced its acquisition of mental wellness company Core on Tuesday, creating a new division that looks at opportunities beyond physical wellness. 

Terms of the deal were not disclosed, but sources told FOS that prior to the acquisition Core was in the midst of a funding round at a post-money valuation of $40 million. 

The acquisition comes at a time when mental health is at the forefront of wellness.

Core is designed to help people improve their focus and mental strength. The company’s products, which retail starting at $179 with a premium option available for $249, include a mediation trainer and access to meditations. 

Through the acquisition of Core, Hyperice enters a global meditation apps market that is expected to reach $4.2 billion by 2027. 

It also marks the third acquisition for Hyperice in less than two years. 

  • Last year, it acquired NormaTec, an innovator of cutting-edge pneumatic compression systems.
  • It also acquired RecoverX, a San Diego-based company that specializes in intelligent thermal tech.

Following a $48 million funding round in October that included Patrick Mahomes, Russell Westbrook, and Lindsey Vonn, Hyperice is valued at $700 million. 

Hyperice has signed a bevy of partnership deals within the last year that include agreements with the NBA, UFC, WNBA, and the English Premier League.

Editor’s Note: Hyperice is an FOS partner.

SPONSORED BY SPONSORPULSE

Tokyo 2020: Top Missed Sponsorship Opportunities

After a (year) long wait, Tokyo 2020 is officially underway!

To shed light on the competition through a sponsorship marketing lens, SponsorPulse took a look at what categories and brands may be missing out on a significant opportunity to partner with the Olympic Games.

Analyzing the percentage of Americans who have purchased certain categories and engaged with Tokyo 2020, SponsorPulse identified the top 7 missed sponsorship opportunities and their picks of brands that could stand to benefit from a partnership:

1)     Fantasy Sport / Gaming (DraftKings/FanDuel)
2)     Dating App (Bumble/Match Group)
3)     Cryptocurrency (Coinbase/LedgerX)
4)     Smart Speaker (Amazon Alexa/Google Nest)
5)     Real Estate (Zillow/Opendoor)
6)     Headphones (Beats by Dre/Bose)
7)     Ticket sales company (Ticketmaster/Eventbrite)

To receive a free sponsorship opportunity report on Olympics and other sponsorship properties across the globe, click here!

Patrick Mahomes Becomes MLS Owner

Sporting KC/Design: Alex Brooks

Sporting Kansas City announced on Tuesday that Kansas City Chiefs quarterback Patrick Mahomes has joined the Major League Soccer club’s ownership group. 

The investment in Sporting KC adds another team to the NFL superstar’s portfolio, which now includes stakes in multiple sports franchises in Missouri.

The MVP of Super Bowl LIV also owns a minority stake in the Kansas City Royals, while fiancée Brittany Matthews is co-owner of Kansas City NWSL. 

The 25-year-old signed a record contract extension worth up to $503 million in 2020 and stays busy off the field, too. 

  • Last year, Mahomes joined Hyperice, an athletic recovery technology company, as both an ambassador and investor. Other ambassadors include Naomi Osaka, Ja Morant, and Juju Smith-Schuster. 
  • He signed a multiyear partnership in August with BioSteel. The sports nutrition company inked a deal with NBA star Luka Dončić in March.

The average MLS team is worth $550 million, up from $313 million in 2019, per Sportico.

Sporting KC is ranked 10th in MLS with a total value of $550 million following revenue of $25 million in 2020 — down from $45 million due to the global pandemic.

Sporting Kansas City is owned by Sporting Club, which is comprised of local business and community leaders.

Conversation Starters

Conversation Starters

  • ESPN could tap Adam Schefter to work with Peyton and Eli Manning for their alternate “Monday Night Football” telecast during the 2021 NFL season, sources told FOS.
  • The Oklahoma Sooners and Texas Longhorns formally requested an “invitation for membership” from the SEC for 2025.
  • The Olympics saw stunning exits from Naomi Osaka and Simone Biles in a two-hour span.
  • In Monday’s FOS PM, we asked readers if they like the direction college sports is headed with all the talk of realignment. FOS reader Daniel Edwards said it’s “great for college football and college sports in general.” FOS reader David Perry hopes “college football morphs to either an NFL or Premier League model.”

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Helping Athletes Succeed in the New College NIL Era

For the first time ever, NCAA athletes can earn money off of their name, image, and likeness (NIL), which opens up abundant opportunities. 

To help prepare and empower you , Front Office Sports – together with Facebook and Instagram – have created Athlete Marketing Essentials: NIL Certification, a free online course dedicated to this new era of collegiate athletics.

Whether you’re an athlete, a leader within an athletic department, agent, or connected to college sports in another way, this six-lesson course breaks down the tools and services available to help athletes grow their audience, distribute content, and generate meaningful revenue. 

Upon completion, you’ll earn a verified digital certification badge to display on your LinkedIn profile. Plus, you’ll have access to the Facebook and Instagram Safety Guide for Athletes as well as the College Athletes on Facebook and Instagram online hub. 

Register now and get in the NIL game.

Market Movers

Market Movers

U.S. stocks experienced declines across all three major indexes on Tuesday. Here’s a look at how sports-related stocks performed:

Up:

Sirius XM Holdings Inc. (NASDAQ: SIRI) gained 5.17%

The Walt Disney Company (NYSE: DIS) gained 0.43%

Manchester United plc (NYSE: MANU) gained 0.22%

Down:

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) dropped 7.00%

Activision Blizzard, Inc. (NASDAQ: ATVI) dropped 6.76%

Las Vegas Sands Corp. (NYSE: LVS) dropped 3.95%

(Note: All as of market close on 7/27/21

What to Watch

What to Watch

Nigeria takes on Germany in basketball tonight at Saitama Super Arena in the Tokyo Olympics.

How to Watch:

9 p.m. ET on NBC

Betting Odds: 

Nigeria -4.5 || ML -180 || O/U 165*

Pick: Expect Nigeria to bounce back from Sunday’s loss. Take them to cover. 

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

Shoutout: On Monday, we asked readers to make predictions for USA-Australia. The USWNT tied with Australia 0-0. No one saw that coming.

*Odds/lines subject to change. T&Cs apply. See draftkings.com/sportsbook for details.

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Written by Abigail Gentrup, Justin Byers

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