September 28, 2021

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Former first-team all-state wide receiver LeBron James popped up on the “Monday Night Football” ManningCast and confirmed that Jerry Jones offered him a Cowboys contract during the 2011 NBA lockout. The King says Pete Carroll discussed bringing him to the Seahawks, too. What could have been…

Endeavor Acquiring Sports Betting Firm OpenBet

NYSE/Design: Alex Brooks

Endeavor is buying OpenBet from Scientific Games for $1.2 billion in cash and stock.

The acquisition will bolster Endeavor’s role within the sports betting ecosystem, which is already anchored by IMG Arena, a service that works with more than 470 sportsbook brands.

  • “The combination will further capitalize on the tremendous upside we see coming from this fast-growing industry,” said Endeavor CEO Ari Emanuel.
  • OpenBet and IMG Arena will deliver official data, video streams, and betting technology solutions to sports leagues, federations, and sportsbooks worldwide.

Endeavor generated $1.1 billion in revenue in Q2 2021 – a $650 million increase compared to the same period a year ago. The return of live events led to the biggest first half of the year in the Endeavor-owned UFC’s history.

OpenBet marks the second acquisition for Endeavor in three months. The company’s Chinese subsidiary acquired sports digital agency Mailman Group in July for $60 million.

Endeavor raised $511 million in its IPO in April. A private placement brought the total to $1.8 billion and made New England Patriots owner Robert Kraft and AC Milan owner Paul Singer stakeholders in the business.

MGM Buying Cosmopolitan Operations in $5.6B Deal

The Cosmopolitan/Design: Alex Brooks

MGM Resorts is moving into mobile sports betting, but it hasn’t forgotten its roots: It’s buying The Cosmopolitan’s casino and resort operations as part of a $5.6 billion deal.

The Las Vegas Strip destination was purchased by private equity firm Blackstone in 2014 for about $1.8 billion. It currently houses a sportsbook run by Caesars Entertainment-owned William Hill.

  • MGM will pay $1.63 billion to become The Cosmopolitan’s casino and resort operator. The physical property is being sold to an investor group including a Blackstone trust, Stonepeak Partners, and the Cherng Family Trust for around $4 billion.
  • MGM will enter a 30-year lease, with three decade-long options for renewal.
  • Blackstone said it invested $500 million in the property in renovations and additions. It is turning a $4.1 billion profit.

In a separate affair, MGM is looking to take full control of BetMGM, the sports betting outfit it owns 50-50 with Entain.

In July, Blackstone acquired a majority stake in Certified Collectibles Group, valuing the collectible platform at over $500 million. In April, it joined an $80 million funding round for sports media and startup basketball league Overtime. In May 2019, it took a $204.9 million minority stake in betting platform SuperBet. 

The company previously explored buying stakes in Serie A and Sportradar, as well.

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Washington Spirit Calls on Majority Owner to Sell

Washington Spirit/Design: Alex Brooks

Last month, the NWSL’s Washington Spirit named former D.C. United player, coach, and executive Ben Olsen president. Now, there could be a shift in ownership, as co-owner Y. Michele Kang is calling on majority owner and CEO Steve Baldwin to step down.

Baldwin’s leadership looked promising in 2019 when he said professional women’s soccer players should be paid more than men and predicted the NWSL could reach $30 million to $50 million in annual sponsorships.

A recent investigation by the league into multiple allegations of verbal abuse by the team’s former coach Richie Burke turned into a wider discussion between female employees about a misogynistic workplace. 

  • The team has lost 40% of its female staff listed on its website since the start of the season.
  • Late last week, fans launched a protest, limiting “game day activities” until there is new ownership.

Baldwin reportedly told Kang in August that he would sell his stake to her but has since changed his mind.

Kang bought a stake in the team last year, adding to the Spirit’s list of prominent stakeholders including Chelsea Clinton, Jenna Bush Hager, and Briana Scurry, the former U.S. women’s goalkeeper. Washington Capitals star Alex Ovechkin became an investor in May.

The growing number of investors comes as the league experiences a spike in popularity — by the end of the 2020 season, there was a 500% jump in TV viewership.

Clippers Secure $800M in 10 Days for Intuit Dome

Kelley L Cox-USA TODAY Sports/Design: Alex Brooks

Less than two weeks after the Los Angeles Clippers made a 23-year, $500 million deal with Intuit for naming rights to its new arena, the team has reportedly secured more than $300 million in an agreement with Aspiration.

The online bank will display ads throughout the venue. The building, set to open in 2024, costs a reported $1.2 billion, adding to the $66.2 million owner Steve Ballmer paid for the land and $300 million for The Forum.

Aspiration is focused on being green-friendly, matching well with the Clippers’ goal of making the Intuit Dome 100% carbon-free.

  • Philadelphia 76ers coach Doc Rivers is an investor in Aspiration. The company has raised $450 million to date.
  • Last month, it entered an agreement to go public via SPAC merger with InterPrivate III Financial Partners, which will value the combined company at $2.3 billion.

Ballmer, who purchased the Clippers for $2 billion in 2014, wants to make Intuit Dome the most sustainable arena in the world. It will reportedly save 10 million gallons of water per year and reduce vehicle trips by 15% through carpool incentives. 

Intuit Dome will generate an estimated $260 million in annual economic activity for the surrounding Inglewood neighborhood.

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Conversation Starters

Conversation Starters

  • Famous cricket tournament The Ashes may not take place, as COVID-19 continues to spread in Australia and England is reluctant to tour.
  • The Sacramento Kings confirmed that Arctos Sports Partners acquired a minority stake in the franchise, with majority owner Vivek Ranadivé also increasing his stake in the team.
  • GNC has secured an exclusive retail partnership with Podium Nutrition, whose products will be available at GNC.com and in stores nationwide.
  • The Yankees arrived in Boston outside the postseason picture, but thanks to Giancarlo Stanton’s historic weekend of hitting, they left Fenway with the top AL Wild Card spot. Get more stories like this in Sports Section, a free daily newsletter. Click here to subscribe.

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