July 29, 2021

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After going public today, Robinhood has a valuation of about $32 billion — double what the Cowboys, Yankees, and Lakers are worth combined.

Peacock, Olympics Bolster Comcast Revenue Jump

Comcast/Design: John Regula

Comcast’s total revenue jumped 20.4% in Q2 — up to $28.55 billion — and NBCU’s Peacock streaming service is a big reason why the conglomerate exceeded analysts’ expectations.

Peacock has 54 million signups as of this week, with more than 20 million active monthly users. 

CEO Brian Roberts said the Tokyo Olympics, which were a hot topic on Thursday’s earnings call, are an important incentive for Peacock subscribers.

  • NBCU said it will turn a profit despite “bad luck” amid the global pandemic and vowed to spend more money on sports to improve their product for the Winter Olympics. 
  • The Olympics aren’t Peacock’s only vital sports content. In January, the service struck a five-year deal with WWE worth more than $1 billion, adding over 1.2 million subscribers from the WWE Network.

Roberts said that the company is including Peacock at no additional cost for its 20 million Sky customers across Europe later this year. 

Sky TV showed a 28% revenue increase, posting $5.2 billion in the second quarter. Though the revenue increase is a positive sign, the network’s adjusted EBITDA margins fell 25.3% to $560 million.

As of July 15, NBCU had sold 85% of its in-game advertising inventory for Super Bowl LVI, the largest round of sports upfront negotiations in company history. It increased the asking price for ads up to as much as $6 million per 30-second spot.

DraftKings to Open Betting-Themed Sports Bars

Byron Hetzler-The Southern Illinoisan/Design: John Regula

DraftKings helped drive sports betting from physical locations to mobile devices, but now it’s creating its own live betting experience.

The company is teaming up with sports bar chain Sports & Social to create co-branded dining establishments with a sports betting focus.

The first two locations will be in Nashville and Detroit, pending respective regulatory approval in Tennessee and Michigan. The Nashville location will not have any betting kiosks or windows: Tennessee only permits sports betting on mobile devices. 

The Detroit venue won’t directly facilitate sports betting either, but will have screens throughout showing odds, scores, and games.

  • DraftKings is active in 14 states. Sports betting is legal in 32 states and established in some capacity in 22.
  • The company’s revenue vaulted to $312 million in Q1, up 253% year-over-year.
  • Sports & Social is owned by the Cordish Companies, a private company that operates commercial and residential property including restaurants, gaming establishments, and developments in sports venue districts.  

The companies indicated that more cities would be announced soon. Sports & Social has locations neighboring Busch Stadium in St. Louis and Truist Park in Atlanta. 

Editor’s note: DraftKings is an FOS partner.

SPONSORED BY PANINI

Drafted One Minute, NBA Rookie Cards the Next

During tonight’s 2021 NBA Draft, history will be made and dreams will come true for the league’s next wave of stars — and Panini America will be ready to celebrate by making some trading card history of its own. 

On Tuesday, the Panini Instant website launched the 32 cards that will comprise the 2021 NBA Draft Night set. Although the cards feature silhouetted images now, the cards will be updated in real-time as selections are made, meaning each new draftee’s first trading card with his new NBA team logo will be available just minutes after his name is called.

Visit the Panini website for more information.

Gray’s $925M Acquisition of Quincy Media Approved

Byron Hetzler-The Southern Illinoisan/Design: John Regula

Gray Television’s $925 million acquisition of Quincy Media was approved by the Department of Justice on Wednesday. 

The deal gets regulatory approval under the condition that Gray divests 10 broadcast TV stations in seven local markets. Quincy mostly operates in the Midwest.

The acquisition is Gray’s latest move to tap into new markets. 

  • Last month, it formed Gray Sports + Entertainment Sales to represent the company’s internal content production portfolio.
  • Gray acquired Raycom for $3.6 billion in 201, adding 142 television stations across 92 markets.
  • Gray plans to acquire Meredith Corporation for $2.83 billion in total enterprise value. Meredith recently sold Sports Illustrated to Authentic Brands Group for $110 million.

Gray’s deal for Quincy was first announced in February. Per FCC guidelines, no entity can reach more than 39% of all U.S. households; Quincy owned stations in 102 markets, reaching over 25% of U.S. TV households. 

There could be more stipulations. Earlier this month, the FCC proposed a $518.28 million fine against the company, saying Gray violated rules by owning two full power stations in the same designated market area that were rated among the top four in the market. 

The DOJ and FCC will go through similar talks soon regarding the WarnerMedia and Discovery merger.

Conversation Starters

Conversation Starters

  • Clothing company Title Nine pledged $1 million to the USWNT Players Association to support their fight for equal pay.
  • China’s Fosun Sports Group purchased a minority stake in esports team Evil Geniuses, valuing the team at $255 million post-investment.
  • Cinedigm is launching Real Madrid TV, a free streaming channel built around the soccer team.
  • Everybody expected an American to win the gold medal in the women’s Olympic gymnastics all-around. Nobody expected it to be Sunisa Lee. With Simone Biles pulling out of the individual all-around to tend to her mental health, the 18-year-old Lee carried on America’s dominance. Get more stories like this in Sports Section, a free, daily newsletter. Click here to subscribe.

SPONSORED BY RELO METRICS

Modern Sports Marketer’s Checklist

Modern sports marketers are paving the way for a new era of sponsorship measurement—an era powered by detailed, objective and integrated data that brands can take action on fast. 

In Relo Metrics’ (fka GumGum Sports) new guide, discover 5 tactics that the most data-driven sports marketers are using to have more transparency, maximize benefits from partnerships, identify new opportunities and grow their budgets. 

For real life examples of how brands like Dell Technologies and Stanley Black & Decker optimize sponsorship ROI, download the guide.

Market Movers

Market Movers

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

Up:

Vista Outdoor Inc. (NYSE: VSTO) gained 5.69%

Genesco Inc. (NYSE: GCO) gained 2.75%

Lululemon Athletica Inc. (NASDAQ: LULU) gained 2.49%

Down:

Las Vegas Sands Corp. (NYSE: LVS) dropped 3.62%

Penn National Gaming, Inc. (NASDAQ: PENN) dropped 3.40%

Rush Street Interactive, Inc. (NYSE: RSI) dropped 3.27%

(Note: All as of market close on 7/29/21

What to Watch

What to Watch

The U.S. women’s basketball team takes on Japan tonight in Group B.

How to Watch:

12:40 a.m. ET on USA Network

Betting Odds:

USA -19 || ML -2500 || O/U 162.5*

Pick: Expect Team USA to send a message. Take USA to cover. 

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

Shoutout: On Wednesday, we asked readers to make predictions for Yankees-Rays. The Yankees beat the Rays 3-1. No readers predicted the upset by New York. 

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

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Written by Callie Lawson-Freeman, Abigail Gentrup, Owen Poindexter

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