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Saturday, June 22, 2024

FOS Year In Review: The Biggest Stories of 2022

  • FOS takes a look back at one of the most impactful years in the business of sports.
  • From watershed moments in media rights and college sports to a calendar year that included the Olympics, Super Bowl, and World Cup.
Steph Curry celebrates in front of fans after winning NBA final 
Kyle Terada-USA TODAY Sports
Chelsea-FC
Chelsea FC
Russel Wilson "Broncos Country Lets Ride!" banners hang on side of Empower Field at Mile High in Denver
Ron Chenoy-USA TODAY Sports
Amazon-NFL
Maria Lysaker-USA TODAY Sports
Disney is open to potentially selling an equity stake in ESPN.
Kirby Lee-USA TODAY Sports
Dan Snyder investigations
Brad Mills-USA TODAY Sports
Danielle Parhizkaran - USA TODAY NETWORK
Microsoft
Shutterstock
Peloton
Brad Penner-USA TODAY Sports
Oakland-Athletics
Oakland Athletics
US-Soccer
Bruce Kluckhohn-USA TODAY Sports
Lionel Messi and teammates lift World Cup trophy during post game ceremony
Yukihito Taguchi-USA TODAY Sports

Sports served as a rare centralizing force in 2022.

Fans showed up, tuned in, bought merchandise, and, in the U.S., found a growing appetite for sports like Formula 1 and soccer, and activities like pickleball and disc golf. Meanwhile the “Big Four” of the NFL, NBA, MLB, and NHL have never been more valuable.

Media deals reached new heights while sports betting presents a potentially massive revenue stream and stadiums and arenas are being reimagined as economic centers.

While supply chain issues weighed on nearly every part of the global economy and the slow leak of cable subscribers to streaming services continued to upend the media world, sports stood apart for their steadiness.

As the calendar flips to 2023, we look back on a year in which sports’ ability to cross generations and demographics proved ever more important in our culture.

Multibillion-Dollar Franchise Sales

2022 set a new price standard for team sales.

In May, the Premier League’s Chelsea FC were sold to a group led by Todd Boehly for a worldwide record $5.3 billion. Months later, the Walton-Penner family ownership group purchased the Denver Broncos for $4.65 billion — the most for any North American team.

Washington Nationals team celebrates after home run by first baseman Joey Meneses 

Number of Sports Teams For Sale Grows As Prices Soar

Several teams are on the market following scandals involving their owners.
December 12, 2022

Now, the Phoenix Suns and Mercury will be sold to Mat Isbhia for $4 billion — a record for an NBA team, pending approval.

  • Team sale prices are only expected to rise.
  • Forbes found in its September report that the world’s 50 most-valuable sports teams are worth 30% more than they were a year prior.

Just before Christmas it was reported the Washington Commanders could sell for a number “well north” of $7 billion. MLB’s Washington Nationals, the Premier League’s Liverpool FC, and the NWSL’s Portland Thorns and Chicago Red Stars are just some of the other teams still exploring sales.

– Abigail Gentrup

Big Tech’s Sports Rights Takeover

Just a few years back, tech giants were more bogeymen than reality in live sports.

Giant streamers were able to pick off cheaper game packages from international leagues, but the U.S. rights for the NFL, NBA, MLB, and MLS were still controlled by linear TV networks.

During the NFL’s media negotiations in 2021, Amazon Prime Video made history by becoming the first all-digital platform to score an exclusive NFL package.

Stadium with NFL logo at the mid-field line

Hey Google, Turn On ‘NFL Sunday Ticket’ on YouTube TV

The deal is reportedly worth $2 billion annually for seven seasons.
December 22, 2022

It was a landmark moment. Live sports is one of the last building blocks holding up the aging pay TV model.

Amazon’s $11 billion deal to air “Thursday Night Football” through 2033 opened the door for others: 

  • In March, Apple made one of its first forays into sports by signing an $85 million annual deal with MLB to stream Friday Night games. 
  • In June, Apple and Major League Soccer signed a 10-year, $2.5 billion deal to exclusively stream every MLS match starting in 2023.
  • The year closed with Google’s YouTube TV snatching the NFL’s Sunday Ticket package via an estimated seven-year, $14 billion deal. Satellite giant DirecTV had controlled the rights for 28 years.

Entering 2023, Amazon and the NBA are exploring ways to collaborate. If the NBA doesn’t renew with ESPN or TNT, look for Amazon to try to bookend its NFL package with a billion-dollar NBA deal.

– Michael McCarthy

Disney’s Succession Theatrics

A shadow CEO. Palace intrigue. Blood in the water. All taking place, incongruously, at the Happiest Place on Earth.

The entertainment industry was rocked the evening of Sunday, Nov. 20 when former Disney boss Bob Iger swooped in after less than a year in retirement to help oust CEO Bob Chapek.

ESPN’s majority owner Disney is one of the most powerful players in sports, controlling tens of billions of dollars in live rights with pro leagues and college sports bodies, ranging from the NHL, NBA, and MLB to the SEC Conference and College Football Playoff.

Head shot of Disney CEO Bob Iger

Disney Just Surprised Everyone and Made Bob Iger CEO Again

Iger will face key media rights decisions on the NFL and NBA.
November 21, 2022

Iger’s corporate coup against Chapek was the juiciest executive suite shakeup since, well, ex-ESPN CEO John Skipper stepped down in late 2017, due to a cocaine extortion plot.

  • As recounted by the Wall Street Journal, Iger’s undermining of Chapek should be a cautionary tale for other new CEOs operating with their predecessor breathing down their neck.
  • Iger has agreed to serve as a stopgap CEO for two years. That sets up another bruising succession battle, which, of course, will involve ESPN.
  • Given his experience in Hollywood, digital media and sports, ESPN’s 53-year-old chairman Jimmy Pitaro is seen as a natural successor to Iger.

There’s even speculation Disney’s financial woes will force it to spin off ESPN — ending its 25-year corporate history under the Mouse House.

– Michael McCarthy

College Sports’ Most Important Year?

In 2022, college sports experienced seismic shifts that pushed the industry more toward a pro sports-like structure than ever.

On June 30, UCLA and USC shocked the industry by announcing they would join the Big Ten in 2024. Then, the Big Ten inked the largest conference-wide media rights contract in college sports history: a mid-$7 billion deal with CBS, NBC, and Fox. 

The Big 12, led by new commissioner Brett Yormark, signed a six-year, $2.28 billion renewal with ESPN and Fox to keep itself afloat.

The first full year of NIL came to a close. Athletes cashed in big — and the sky didn’t fall. Worth almost $1 billion, it was marked by lucrative deals for the biggest stars, memorable social media endorsement campaigns, and the beginning of NIL collectives.

Texas Longhorns offensive lineman lifts up star running back Bijan Robinson after scoring a touchdown

College Football’s Future Is Here. Bowl Games May Have To Keep Up.

A 12-team playoff is a win, but what happens to bowl games?
December 17, 2022

Women’s college sports were at the forefront of the conversation all year.

  • The NCAA made improvements to the NCAA women’s basketball tournament — though several structural changes still haven’t been implemented.
  • Ratings soared.
  • The nation celebrated the 50th anniversary of Title IX, only to see Roe v. Wade overturned the following day — jeopardizing the future ability of countless athletes to participate in sports.

The year ended with the announcement that the College Football Playoff would expand to 12 teams starting in 2024 — a move that will rake in billions for FBS football and allow more parity than ever.

– Amanda Christovich

From Congress to the Courtroom

From Brett Favre to the Washington Commanders to Jon Gruden, Front Office Sports led the coverage when sports intersected with courts this year.

In the spring, FOS broke news of allegations the Commanders used “two books” that painted differing pictures of the team’s finances, along with allegedly holding back ticket revenue from the league.

Washington Commanders sale could be the most expensive.

Commanders Could Sell For ‘Well North’ of $7B

Snyder has reportedly received offers “well north” of $7 billion.
December 23, 2022

The heat on Commanders owner Dan Snyder intensified before — and even after — it was announced he’d explore a sale of the team in November.

  • The House Oversight Committee deposed Snyder for nearly 11 hours in July as part of its investigation into the team. Snyder “gave misleading testimony about his efforts to interfere” with an outside NFL investigation, according to the final report released earlier this month.  
  • The team is a defendant in two lawsuits filed by District of Columbia Attorney General Karl Racine. Maryland and the Commanders agreed to a $250,000 settlement. A probe by Virginia’s attorney general remains ongoing.
  • Snyder and the Commanders are still subject of a second outside NFL investigation along with one launched by the Department of Justice.

Meanwhile, Favre’s connection to the Mississippi welfare scandal became clearer in 2022. Brands and media companies began to slowly — and quietly — back away from Favre in September as even longtime sponsor Copper Fit paused its relationship with the Hall of Fame quarterback. 

Favre has denied he knew the $8 million of funds he was linked to — including $5 million for a volleyball center at his alma mater, the University of Southern Mississippi — came from federal welfare funds. 

But a series of FOS reports called Favre’s denials into question.

“That’s horse—t,” said one source involved with the pharmaceutical company Prevacus that Favre backed. “They all knew.”

Gruden’s lawsuit against the NFL survived multiple challenges in 2023. The same for former Miami Dolphins head coach Brian Flores’ racial discrimination lawsuit against the league. Meanwhile, LIV Golf’s lawsuit against the PGA Tour is still more than a year off from a trial.

– AJ Perez

Sports Betting Out of the Shadows

Unsurprisingly, sports betting had a breakthrough year in the United States.

The implementation of mobile sports betting in New York caused a huge spike in revenue:

  • At $1.68 billion, Q3 2022 was the highest-revenue quarter in American legal sports betting history. 
  • Through three quarters, the industry’s $4.78 billion in revenue is already more than the previous full-year record ($4.34 billion in 2021).

The Qatar World Cup boosted those numbers, as the Final between Argentina and France was the second-most bet-on game of the year behind the Super Bowl. The tournament as a whole was expected to generate $1.8 billion in bets in the United States.

Lionel Messi preparing to shoot in front of two French defenders in World Cup final

Only Super Bowl LVI Had More Bets Than World Cup

The World Cup final was one of the most wagered-on events.
December 22, 2022

The industry also innovated, as Caesars Sportsbook streamed an NFL game for the first time in early December.

Still, sportsbooks are fighting the illegal side of its industry, as Amercians reportedly place $63.8 billion in illegal bets each year.

– Doug Greenberg

The Gaming Industry’s Wild Ride

The video game industry was taken by storm in January when Microsoft announced plans to acquire “Call of Duty” and “World of Warcraft” owner Activision Blizzard in a deal valued at $68.7 billion.

The acquisition would make Microsoft the third-largest gaming company by revenue, but the deal could collapse amid regulatory scrutiny. 

  • The Federal Trade Commission has sued to block Microsoft’s acquisition of Activision, saying the sale would give Microsoft “both the means and motive to harm competition.”
  • On Wednesday, the tech giant filed a response to the suit arguing that its presence within the mobile gaming market is minimal and that blocking the deal would be unconstitutional. 

The deal is also under regulatory scrutiny in the U.K., Australia, and the European Union.

Microsoft-Xbox

Microsoft Fights for $69B Activision Blizzard Merger

Microsoft made its case for its acquisition of Activision Blizzard being pro-competitive.
December 28, 2022

Microsoft and Activision weren’t the only gaming giants coming together in 2022. In January, Sony agreed to acquire Bungie — the original creator of “Halo” — for $3.6 billion.

– Justin Byers

Fitness’ Spin Cycle

The fitness industry had major high and lows with game-changing products, major lawsuits involving the biggest players, and personnel switch-ups.

Peloton was at the forefront: the company hired a new CEO, cut thousands of jobs, introduced a rowing machine, struck deals with other retailers for the first time, hiked prices, cut in-house manufacturing, and settled infringement lawsuits.

Peloton is recalling 2.2. million bikes.

Peloton Cuts 500 More Jobs to ‘Save’ Company

The layoffs mark Peloton’s fourth round of cuts this year.
October 6, 2022

While gyms including Planet Fitness rebounded, other fitness companies including Soulcycle and Tonal were forced to cut their workforces as customers’ pandemic fitness routines changed.

But fitness is still drawing heavy investment. Lululemon announced a fitness subscription, Virgin Active, Hydrow, and Aviron raised capital, and new club concepts were debuted.

– Abigail Gentrup

Sportswear Giants Put Their Foot Down

Two of the largest sportswear giants killed some of their biggest respective partnerships over antisemitism. 

In October, Adidas cut ties with Ye, formerly known as Kanye West, after he went on multiple antisemitic tirades. The company ceased production of its Yeezy brand and stopped payments to Ye. Adidas said it would lose $246 million in profits by the end of 2022 due to the decision.

Adidas Cuts Ties With Kanye West

Adidas will take a $247 million hit to its Q4 net income.
October 25, 2022

Just a few weeks later, Nike suspended its relationship with Kyrie Irving after the Nets guard posted a movie that peddled antisemitic conspiracy theories.

In December, Nike permanently ended its deal with Irving, and stopped production of the “Kyrie 8s.” Irving was temporarily suspended from the Nets, but reinstated soon after issuing an apology.

– Amanda Christovich

The Stadium Boom

The arms race to develop first-class facilities for sports teams reached a new level in 2022. 

Since 2000, taxpayers have spent roughly $4.3 billion toward costs associated with new stadiums and arenas for pro sports teams, per CNBC. That number will continue to rise.

Earlier this year, the Tennessee Titans announced plans to build a new domed stadium in Nashville that is estimated to cost $2.2 billion. The 1.7 million-square-foot stadium will feature a translucent roof and will allow Nashville to host major events, including the Super Bowl.

Renderings of new Tennessee Titans stadium

Titans Eye 2026 Kickoff for New $2.2B Stadium After Key Vote

A new stadium for the Tennessee Titans is closer to reality.
December 21, 2022

The Buffalo Bills are also getting a new home stadium that is projected to cost $1.4 billion

Expected to open for the 2026 season, the facility will receive $850 million in funding from New York’s state budget. The stadium will be open-air and could have a capacity of 60,000-62,000. 

NFL franchises aren’t the only teams getting new digs. The Philadelphia 76ers plan to build a new $1.3 billion arena, while the Oakland A’s have proposed a $12 billion waterfront stadium complex.

– Justin Byers

Megastars…Mega Money

Major League Baseball made headlines with its extravagant contracts as usual: Aaron Judge led the way with his landmark nine-year, $360 million contract with the New York Yankees.

Carlos Correa’s bizarre saga is ongoing: The prized shortstop opted out of his Minnesota Twins pact, agreed to a record infielder deal (13-year, $350M) with the San Francisco Giants, then agreed to a new deal (12-year, $315M) with the Mets when he failed his physical — only to fail his physical with New York, too.

USWNT celebrates after winning tournament

House Passes Equal Pay for Team USA

The bill now heads to President Joe Biden.
December 23, 2022

In the NFL, Russell Wilson and his massive $245 million Denver Broncos contract is quickly looking like one of the worst front office decisions in league history. The Colorado Avalnche’s Nathan MacKinnon became the NHL’s highest-paid player by AAV. The Saudi-backed LIV Golf made lots of players very rich via guaranteed money. 

And with the U.S. House of Representatives passing the Equal Pay for Team USA Act, the USWNT and USMNT will split $13 million from the latter’s advancement to the knockout stage at the Qatar World Cup.

– Doug Greenberg

Top Tier Events

February’s Winter Olympics in Beijing nearly feel like an afterthought after one of the most epic sports calendar years.

Super Bowl LVI, which saw the Los Angeles Rams edge out the Cincinnati Bengals 23-20 at SoFi Stadium, proved again why the event has sports’ biggest gravitational pull in the U.S.

  • Conventional metrics put viewership numbers at over 112 million.
  • A survey conducted by the NFL and Nielsen, which sought to count people who watched the game in groups and at restaurants and bars, found that 208 million watched the game in the U.S. alone.
  • A staggering 90% of U.S. TVs that were on during the game were tuned in.

Formula 1’s arrival in Miami in May didn’t draw those kinds of numbers, but took on a life of its own in a different way. The event proved far bigger than the race, with the likes of Michael Jordan, Serena Williams, Tom Brady, David Beckham, and a laundry list of celebrities descending on Miami for the race.

Lionel Messi and Kylian Mbappe before the World Cup final

A Chaotic World Cup Still Delivers The Perfect Final

A complicated, controversial World Cup ultimately produced the perfect ending.
December 18, 2022

In June, the Golden State Warriors won their fourth title in eight years by topping the Boston Celtics, and Steph Curry solidified his legacy with his first NBA Finals MVP.

  • According to Nielsen, the six-game series averaged 12.4 million viewers — up 22% from the previous year.
  • The clincher averaged 14 million.

The year was topped off by a World Cup in Qatar that was equal parts stunning and controversial. 3.6 billion people watched at least some part of the tournament, as Argentina’s Lionel Messi secured the only missing piece to his legendary career with his first World Cup title.

– Owen Poindexter

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