February 16, 2021

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Sorry, iPod and iPhone. Tim Cook believes Apple’s lasting legacy will be what the company does for fitness.

Apple’s Next Move

Apple

Apple CEO Tim Cook wants you to take a break from the devices and move your body. 

“I really believe that if you zoom out to the future and then look back and ask, ‘What has Apple’s greatest contribution been?’ it will be in the health and wellness area,” Cook told Outside Magazine.

With gyms closed or limited, Apple is bringing the workout experience into homes through Fitness+, a subscription service it launched in December.

Fitness+ combines many of the tech giant’s hardware and software capabilities: Apple Watch’s heart rate monitor, Apple Music for playlists, iPads to present classes with workout data displayed natively.

“Never discount the amount of innovation that can be in the future,” Cook said. “To use a baseball analogy, we are in the early innings.”

Fitness hardware and subscriptions have seen impressive investor interest lately.

  • Lululemon acquired Mirror for $500 million last June.
  • Amazon, Stephen Curry and several other star athletes joined Tonal’s $110 million funding round in September.
  • Peloton went public at $27 per share in September 2019 and has seen its stock price reach as high as $171 since then.
  • Beachbody is going public via a SPAC with a nearly $3 billion dollar valuation.

So how does Apple prioritize turning off the screens when its products have largely enabled our dependence on them? Cook admits he doesn’t know, but is searching for a solution.

“We take the challenge to continue innovating in that space just as seriously as we take the challenge to keep innovating in each of the product categories we’re in,” he said.

Beyond workouts, a recent Mount Sinai study found the Apple Watch could detect heart rate variability changes that can help identify COVID-19 — a testament to the potential of Apple’s health and wellness ambitions.

JPMorgan: Sports Betting Poised for Huge Growth

Kevin R. Wexler-NorthJersey.com

The world’s largest bank thinks the recent rise of sports betting only marks the beginning of what will be massive growth for the market.

The nascent industry, which brought in an estimated $1.5 billion in revenue in 2020, will balloon to $9.2 billion in revenue by 2025, according to a new 33-page report from JPMorgan.

The growth presents a huge opportunity for U.S. media companies in particular. “Media networks are only scratching the surface when it comes to the value they can drive for betting platforms,” the analysts wrote.

Even so, there has already been significant movement concerning the convergence of sports betting and media.

  • In January 2020, Penn National Gaming announced a $163 million investment in Barstool Sports for a 36% equity stake, with warrants that, if exercised, would give Penn majority control after three years.
  • PointsBet became the exclusive betting partner for NBC Sports in August in a five-year deal worth approximately $500 million.
  • Streaming service FuboTV acquired gaming company Vigtory last month. Fubo expects to launch a sportsbook by the end of this year, leveraging Vigtory’s technology to integrate betting into broadcasts.
  • BetMGM signed a deal with The Athletic last month making it the sports media company’s exclusive gambling partner in the U.S.

Sports betting has been legalized in 25 states, with all but five presently running operations.

The three most populous states, California, Texas, and Florida — which have a combined population of around 90 million — have all yet to legalize, but legislation that would do so has been proposed in each.

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Video Games Are Taking Over Hollywood

Borderlands

Video game movies and TV shows have been a staple in entertainment for decades — long before the nine-figure heights the industry sees today.

However, there’s no doubt that the rate at which blockbuster video game franchises get picked up by Hollywood has accelerated. In recent months, a dizzying number of announcements have made headlines.

  • Gearbox and 2K’s first-person shooter “Borderlands” will be adapted into a film starring Cate Blanchett, Kevin Hart and Jack Black.
  • Konami’s “Metal Gear Solid” is headed to the big screen as well, with “Star Wars” actor Oscar Issac starring as Solid Snake.
  • Naughty Dog and Sony’s “The Last of Us” will be adapted for an HBO series. “The Mandalorian” star Pedro Pascal and “Game of Thrones” actor Bella Ramsey have signed on. “The Last of Us Part II” sold four million copies in three days last year — the fastest-selling PlayStation exclusive ever.

New “Mortal Kombat” and “Resident Evil” films are also on the way, and last week a sequel was announced for “Sonic the Hedgehog,” which grossed $319 million last year.

Experts estimate the video game industry will reach $196 billion in revenue by 2022. As gaming soars, film and TV studios will continue to tag along.

Shaq-Advised SPAC to Take Beachbody Public

Kirby Lee-USA TODAY Sports

Blank check company Forest Road Acquisition raised $300 million in an IPO near the end of 2020, resulting in acquisition interest from 50 companies.

“When we raised our SPAC, we were determined to find a company with a strong, proven business model,” said Tom Staggs, Forest Road board member. “Beachbody is a perfect fit.” Beachbody and at-home connected cycling provider Myx Fitness will merge with Forest Road, with Myx becoming part of Beachbody.

The merger gives the combined company a $3 billion valuation. Forest Road is led by three former Disney executives, and lists Shaquille O’Neal and Martin Luther King III among strategic advisors.

Beachbody expects to generate $1.1 billion in revenue this year, up from last year’s $880 million. In addition to Beachbody on Demand and Myx, the company owns digital streaming platform Openfit. In December, Openfit acquired Ladder, a nutrition company founded by LeBron James and Arnold Schwarzenegger, who remain minority shareholders.

The SPAC craze has been unavoidable in the sports industry.

  • Houston Rockets owner Tilman Fertitta’s Fertitta Entertainment will go public after announcing a $6.6 billion merger with FAST Acquisition.
  • DraftKings went public last year after a $2.7 billion merger with SBTech and Diamond Eagle Acquisition.
  • Private investment firm RedBird Capital and famed Oakland A’s executive Billy Beane created RedBall Acquisition to acquire a professional sports franchise.
  • Alex Rodriguez and Colin Kaepernick announced new SPACs earlier this month.
  • Atlanta Braves and Formula One owner Liberty Media’s new SPAC raised $500 million in its January IPO.

SPACs have already raised $38 billion in 2021 — nearly half of the record $83 billion raised in 2020.

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Conversation Starters

Conversation Starters

  • LeBron James says he “seriously considered” an offer from Jerry Jones to try out for the Dallas Cowboys when the start of the 2011-12 NBA season was delayed by a lockout.
  • Former NFL wide receiver Vincent Jackson was found dead in a Florida hotel room at age 38. No cause of death has been determined.
  • Stanford athletes have raised $40 million to save the university’s athletics department after the school decided to discontinue 11 varsity sports programs last summer.
  • What’s next for live sports? Download Samsung’s new guide, The Future of Fandom, to hear from leading minds across the sports, marketing, and technology worlds on reopening safely — and reimagining the fan experience.

Question of the Day

Have you exercised more or less over the last 3 months?

 More   Less   Same 

Friday’s Answer
34% of respondents planned on watching the Daytona 500; 66% did not.

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Written by Owen Poindexter, Justin Byers, Abigail Gentrup

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