Peloton announced it will expand its relationship with Taiwanese manufacturer Rexon Industrial Corp. — and stop in-house bike production — in its latest effort to cut costs.

The fitness company will also suspend operations at its Tonic Fitness Technology, Inc. facility through the end of the year. Bloomberg reports that around 600 Tonic employees will be laid off as part of the transition. Peloton acquired the manufacturer in 2019 for $47.4 million.

“We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility,” Peloton CEO Barry McCarthy said. 

Peloton lost around $757 million in its most recent earnings report.

The announcement represents a major shift from a year ago, when Peloton was fighting to meet demand.

• Last year, Peloton revealed plans for a new $400 million factory in Ohio. The company said in February that it would scrap those plans and scale back its number of delivery centers and warehouses.
• In December 2020, Peloton announced it would acquire fitness equipment maker Precor for $420 million.

Peloton’s Plans

Since McCarthy took the CEO role in February, Peloton has made a number of moves to stay afloat. After cutting 2,800 jobs, Peloton raised membership prices, announced a rowing machine, and signed an agreement with JPMorgan and Goldman Sachs to borrow $750 million in long-term debt. 

The company is also testing a rental format for its equipment.

The WNBA isn’t quite ready to expand its number of teams next season, but the league isn’t passing up other opportunities to grow.

Commissioner Cathy Engelbert announced this week that 40 games will be played during the 2023 season, a record for the league. 

• The 2022 season saw teams play a record 36 games after viewership records were broken during the 2021 season.
• The league’s current collective bargaining agreement allows no more than 44 per season.

“I’d like to go for 44 at some point when we have a good footprint to do that,” Engelbert said ahead of Sunday’s WNBA’s All-Star Game.

Additionally, Engelbert announced the league will use charter flights for all its league Finals games, as well as increase the bonus-pool money to $500,000 for the playoffs — doubling what each championship winner receives.

Securing the league’s next domestic media rights deal is also “top business priority” for Engelbert. ESPN is paying the WNBA a reported $25 million per year through 2025 for its current package.

“We need to make it easier for fans to watch our games, to know where our games are.”

Expected Expansion

Engelbert hopes to have two more teams in the league by 2024, and no later than 2025.

“Now we have to find the right ownership groups with the right commitment and financial wherewithal to really be committed to standing up a WNBA team in their city.” Engelbert said multiple cities are interested.

Atlético Madrid has confirmed a multiyear shirt sponsorship deal with cryptocurrency exchange platform WhaleFin worth $42.3 million annually, per 2Playbook. 

WhaleFin will take over from trading platform Plus500 at the start of the 2022-23 season following the expiration of the Israel-based company’s contract this offseason. 

• Plus500 reportedly paid $17 million per year.
• WhaleFin parent company The Amber Group will be a digital wealth partner.
• Its deal includes branding at Estadio Metropolitano, Atletico’s home field since 2017. 

Atlético — the 13th-most valuable soccer team in the world at $1.5 billion — has had success on the pitch, finishing third in La Liga this past season and being crowned champions in 2021. 

The club has generated $396 million in revenue in 2022, up from $368 million in 2021. However, Atlético has an operating income of only $45 million, compared to $62 million last year.

Joining the Party 

Atlético joins other top-flight soccer clubs in securing new shirt deals. 

In June, Paris Saint-Germain secured a deal with Qatar Airways worth as much as $72 million per year. The same month, AC Milan extended its deal with Puma, which will reportedly pay Milan $31.5 million per year under a five-year contract.  

Earlier this month, Manchester United entered a shirt-sleeve deal with IT firm DXC Technology, while its Premier League rival Liverpool is in talks for a shirt deal that could fetch a record $100 million per year.

Standard Chartered originally paid Liverpool $25 million annually.