March 8, 2021

Read in Browser

Front Office Sports

POWERED BY

It’s been a tough trip around the sun for brick-and-mortar fitness, but things are looking up.

How Gyms Found a Way Through the Pandemic

Barry's/Design: Alex Brooks

Fifty-four million Americans have received at least one COVID-19 vaccination shot as of last Thursday, and with that comes more people getting back to pre-pandemic routines, including going to the gym.

In January, Planet Fitness had its first net increase in memberships since the start of the pandemic. It now plans to restart marketing campaigns that were paused for a year.

Others have found creative ways to carry on operations.

  • L.A. fitness studio Barry’s set up shop in the parking garage of the Beverly Center shopping mall so it could offer classes in an open-air setting.
  • Startup BOLD offers small-group workouts in pods made from shipping containers. Another, Hydra Studios, offers well-ventilated private suites for workouts.

It’s not all green shoots, however. An estimated 6,000 gyms and fitness studios have closed, and many individuals have rediscovered jogging and cycling, as well as investing in home equipment. Peloton has struggled to keep up with demand for its stationary bike.

One survey found that 76% of respondents have tried working out at home during the pandemic, and 66% preferred it to the gym.

Congress is considering sending gyms a lifeline. Bipartisan legislation introduced in the House in February would provide $30 billion to gyms and other health and fitness facilities. It could be the push gyms need for a full-scale return to prominence.

NFL Might Tackle Digital Collectibles

Adam Hunger-USA TODAY Sports/Design: Alex Brooks

Digital collectibles have taken the sports memorabilia scene by storm, and caught the NFL’s attention.

“We’ve taken a hard look about that market and where we intend to play in the future. The digital video [memorabilia] like Top Shot is interesting,” NFLPA executive director DeMaurice Smith told Yahoo Sports.

Top Shot, a digital marketplace where NBA highlights or “moments” are bought, sold, and traded in the same fashion as trading cards has become a growing revenue stream for the league.

“NFTs in general, of which Top Shot is the first and a leader, could turn into a top three revenue source for the NBA over the next 10 years,” Dallas Mavericks owner Mark Cuban told USA Today Sports.

Last week, a LeBron James dunk highlight sold for $208,000. In the past 30 days, Top Shot has seen over $260 million funneled through its marketplaces, according to CryptoSlam.

Sorare, a soccer-based digital collectible firm, raised $50 million during a Series A funding round. Topps, a leading trading card manufacturer, is starting to tap into the industry as well — job posts state that the company is looking to add designers to create digital collectibles.

With Top Shot and Sorare establishing a foundation and Topps potentially entering the market, the NFL, America’s most-watched league, probably won’t be left out for long.

COURSE

How the MTN DEW 3-Pt Contest Happens

Before last night’s NBA All-Star Game, fans were treated to the MTN DEW 3-Pt Contest. Warriors superstar Steph Curry gave an all-time performance and won the contest for the second time in his career.

Learn how it all comes together in Sports Marketing Essentials, presented by Pepsi Sports. The free online course consists of eight-lessons, including Branded Events and League Activations, where Eric Robinson, Director at Pepsi’s agency, Genesco breaks down how they plan and execute league activations including the MTN DEW 3-Pt Contest during the NBA All-Star Game.

Sign up and complete the course by March 31 to be entered for the chance to win autographed merchandise from Pepsi athletes.

NBCUniversal Hasn’t Given Up on Cable Yet

Nick Wosika-USA TODAY Sports/Design: Alex Brooks

NBCUniversal wants to make USA Network relevant again, and offset the effects of parent company Comcast’s decision to shut down NBC Sports Network.

Once a hot primetime channel, USA has since lost value for cord-cutters who can stream live sports and entertainment, but NBCU is making an effort to build the cable network back up.

Some of the conglomerate’s live sports content that isn’t heading to Peacock will instead make its way to USA — NHL, NASCAR, and English Premier League broadcasts in particular.

“This will make USA Network an extraordinarily powerful platform in the media marketplace and gives our sports programming a significant audience boost,” said NBC Sports Group Chairman Pete Bevacqua.

USA could look to increase its pay TV subscriber fees because of the sports content being added to the network, according to Bloomberg.

Some are less optimistic that there’s anything traditional TV can do to retain its bleeding customer base.

“Sports won’t solve what ails these networks,” analyst Michael Nathanson told Bloomberg. “The core concept of tune-in entertainment on linear networks is no longer attractive to younger customers. So their reach is falling.”

Last year, broadcast networks and pay TV accounted for just a chunk of Comcast’s revenue — $21 billion of the total $103.6 billion in sales.

Exodus of Chinese Money from European Soccer

Inter Milan/Design: Alex Brooks

A sea change in European soccer is underway, with money flowing out from the East and in from the West.

From 2015 to 2018, likely following cues from Chinese President Xi Jinping, Chinese investors bought majority stakes in Southampton, West Bromwich Albion, Inter Milan, Parma, and nine other clubs. Chinese investors also took minority stakes in teams like Manchester City and Lyon, and got involved in broadcasting and stadium deals.

Now, having barely broken in their owner’s chairs, many of those investors are reversing course.

  • There are currently fewer than 10 European soccer teams with Chinese investors; in mid-2017, there were over 20. 
  • The owners of Southampton and West Bromwich Albion, both Chinese billionaires, are reportedly looking to sell some or all of their stakes, as is Nanjing-based Suning Holdings Group, which owns Inter Milan.
  • In September, the English Premier League canceled its broadcasting contract with PPTV, a subsidiary of Suning Holdings, just one year into a three-year, $700 million deal.

American investors are partly filling the void, having purchased Parma, Roma, ACF Fiorentina, Toulouse FC, and Burnley.

China is still pouring money into soccer, just within its own borders. Construction has started on a $1.7 billion, lotus-shaped soccer stadium in the Guangzhou province, and the country is believed to have ambitions to host the 2030 World Cup.

WEBINAR

Engaging the New Generation of Fans

As fans return to venues and we look ahead to a post-pandemic future, sports is facing an even bigger obstacle: Engaging Gen Z fans and athletes. Amid a pandemic that has exacerbated declines in youth participation and viewership, sports’ Gen Z problem must be addressed before it becomes a full-fledged crisis.

Join Ryan McConnell and Steve Kulp of Kantar Sports MONITOR on March 10th at noon ET as they explore the issues shaping the future of sports and sports marketing, including:

  • Fresh insights from the 2021 Sports MONITOR fan engagement study (4,500 sports fans)
  • Getting Gen Z’s attention in a fractured media landscape
  • Amateurism, pay equity, and social justice through the eyes of younger fans
Conversation Starters

Conversation Starters

  • Goldin Auctions hosted the $1.795 million sale of a Kobe Bryant rookie card over the weekend — one of the most expensive trading cards ever.
  • MLS club Orlando City could be sold to the Wilf family, per The Athletic. The family also owns the Minnesota Vikings.
  • CBS announced a multiyear agreement to create and broadcast the HBCU All-Star Game. The event begins next year in New Orleans during Final Four weekend.
  • The NFL likely won’t release its 2021 schedule until the second week of May, a much later reveal than usual.

Question of the Day

Are you ready to get back to brick-and-mortar gyms?

 Yes   No 

Friday’s Answer
On Friday, we asked you to reply with which emerging sport or league you think will become significantly more popular over the next decade.

The most common responses were: Major League Soccer, Premier League Lacrosse, and esports.

Advertise Awards Learning Events Video Shows
Written by Owen Poindexter, Justin Byers, Abigail Gentrup

If this email was forwarded to you, you can subscribe here.

Update your preferences / Unsubscribe

Copyright © 2021 Front Office Sports. All rights reserved.
460 Park Avenue South, 7th Floor, New York NY, 10016

Subscribe To Our Daily Newsletters

  • This field is for validation purposes and should be left unchanged.