Amazon finished off the year touting its impact on NFL viewership.

The tech and retail giant posted net sales of $149.2 billion in the fourth quarter of 2022, up 9% year-over-year — 12% on a currency-neutral basis.

• The year was Amazon’s first as the exclusive broadcaster of “Thursday Night Football,” which averaged an audience of 11.3 million, according to combined metrics from Amazon and Nielsen — less than the 13.3 million the previous year on linear TV.
• Viewership rose 11% “among hard-to-reach 18- to 34-year-olds,” and Amazon was first streamer to place in Variety’s top 100 primetime telecasts, with four TNF broadcasts.
• Prime Video also has rights to the Premier League and some New York Yankees games. 

The company is reportedly working on a standalone sports app.

Amazon’s full-year net sales grew 9% to $514 billion, though its net income plummeted from $33.3 billion in 2021 to a $2.7 billion loss last year.

NBA Rebound

Amazon missed out on “NFL Sunday Ticket” after the league selected Google for the out-of-market games package, but the giant is lingering as a contender for NBA rights.

Amazon’s ability to reach younger viewers could appeal to the league as it seeks $50 billion to $75 billion in its next rights package.

Apple recorded its largest annual quarterly revenue decline since September 2016, but it has live sports to look forward to in Q2.

The technology company reported $117.15 billion in first-quarter revenue, falling short of analysts’ estimates of $121.1 billion and marking a 5.5% year-over-year decline. Net income reached nearly $30 billion, a drop from $34.63 billion during the same period the year prior.

• Apple’s products segment accounts for $96.39 billion of total net sales.
• Services accounted for the other $20.8 billion.

Apple revealed that it now has 2 billion active devices — up from 1.8 billion last January — which CEO Tim Cook partially attributes to “a lot of first-time buyers in the case of the Apple Watch.”

Its wearables, home, and accessories segment, which includes the Apple Watch, brought in revenue of $13.48 billion.

Ready to Play

MLS Season Pass launched on the Apple TV app on Wednesday as part of the league’s 10-year deal — worth at least $2.5 billion — with Apple. The service will broadcast every live MLS regular-season match, the Audi MLS Cup Playoffs, and Leagues Cup. 

Apple secured a multiyear deal in September to sponsor the NFL’s new Super Bowl halftime show for an undisclosed amount.

In March, the company announced an exclusive deal with MLB for “Friday Night Baseball,” in which Apple TV+ exclusively airs a weekly MLB doubleheader.

Last month, it was reported that Apple was exploring a bid for U.K. media rights to the Premier League.

Major League Baseball teams are figuring out the value of the real estate on their uniform sleeves.

The Cincinnati Reds inked a deal with Kroger worth $5 million annually, according to Sports Business Journal, to put the grocery store chain’s logo on the team’s uniforms. The Arizona Diamondbacks struck a patch deal with tech company Avnet.

• This will be the first season MLB teams are permitted to sell jersey patch sponsorships.
• The Houston Astros are reportedly moving toward a deal with energy company Oxy.
• The San Diego Padres were the first team to sign a jersey patch deal, linking up with Motorola in April 2022 on a deal worth around $9 million per season. 
• The Boston Red Sox followed suit in November with a 10-year, $170 million pact with MassMutual.

The market for jersey patches has developed slowly as teams seek to establish an appropriate value for the new offering, but it may pick up as the MLB season approaches. The Los Angeles Angels are set to announce a deal on Saturday.

Sponsor Drop

Sports sponsorship revenue reached $8.6 billion in the 12 months ending with August 2022, according to a study by SportsPro and KORE Software. That represented a 12% drop from $9.8 billion over the previous 12 months.

Soccer accounted for nearly half of that sum, with $4.2 billion in sponsorship value, followed by motorsport with $1 billion and basketball with $655 million.

Fanatics is strengthening its collectibles presence with a new livestreaming commerce service. 

The company — last valued at $31 billion following a $700 million funding round — has hired former Snap Inc. executive Nick Bell to serve as the CEO of the company’s new division, Fanatics Live.

Fanatics Live will have an app and website with the goal of selling trading cards and collectibles through content and entertainment.

• Fanatics Live is set to launch in the second half of the year.
• Fanatics will receive a percentage of each transaction. 

Bell said an early focus will be “breaking,” a practice by which sellers decide how to allocate random cards from a box live online to those who have bought a “spot.”

The service will initially only focus on trading cards, which is still a relatively new industry for Fanatics. 

Fanatics Trading Cards launched in 2021, and Fanatics acquired Topps for $500 million in 2022. Topps holds the rights to trading cards for MLB, MLS, UEFA, Bundesliga, and Formula 1, while Fanatics has exclusive deals with the NFL and NBA starting in 2026.

Sports Segments

The company is also making a name for itself in sports betting, launching its first sportsbook inside an NFL stadium (the Washington Commanders’ FedEx Field) in January. Fanatics Betting and Gaming CEO Matt King aims to have the brand operating in all legal states by September. 

As it continues to grow, Fanatics projects around $8 billion in revenue for 2023.