August 13, 2025

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Front Office Sports - Asset Class


Although the NFL and ESPN are championing their recent agreement as a victory for fans, experts tell
Front Office Sports there is no guarantee regulators will approve the transaction.

—Ben Horney

NFL Lobbying Blitz Shows Political Pitfalls for ESPN Deal

Kirby Lee-Imagn Images

The NFL and ESPN are touting their blockbuster pact as a win for fans, but the road to closing could be bumpy, as evidenced by the fact that the league has reportedly already begun a lobbying blitz on Capitol Hill.

The “non-binding” agreement sees the league taking a 10% equity stake in the broadcaster, with ESPN picking up NFL Network and the rights to distribute RedZone to pay-TV operators. The stake is valued at between $2 billion and $3 billion, according to The Wall Street Journal. If approved, the NFL would continue to own RedZone and retain digital rights. It represents the latest in a string of transactions in which media partners are taking equity stakes in the leagues they televise and cover.

The fact that it’s “non-binding” means the two sides still have to negotiate definitive terms, but experts say its announcement at this point is not unusual. Looming larger are the questions of whether President Donald Trump will wade into the situation and whether regulators will decide the deal has potential anticompetitive or anti-consumer effects.

The league has already reached out to 30 congressional offices to talk about how the deal will “result in greater consumer choice,” Reuters reported—indicating that, internally, the NFL understands there are potential roadblocks, even as it champions the agreement in public as one that will benefit fans and make it easier for consumers to watch football. Among the supposed benefits to consumers that ESPN and the NFL are touting is the potential for additional RedZones, including in college football, as well as the NBA and NHL.

At least one lawmaker isn’t buying what the NFL and ESPN are selling.

“If history tells us anything, billionaires in boardrooms are going to gouge hard-working Americans without thinking for a second of the impact on the fans,” Rep. Pat Ryan (D., N.Y.) told Front Office Sports. “I’m particularly concerned by any deal that would make games exclusive or unavailable for folks who can currently watch on cable.” In the aftermath of the ESPN deal, the league is reclaiming four NFL Network games and looking to possibly sell them in a package to streaming services, Bloomberg reported last week.

Ryan pointed to Amazon’s exclusive Thursday Night Football package and 2024’s Peacock-only NFL playoff game as proof fans could lose out. “It’s time for Congress to re-examine sports leagues’ antitrust exemption and put power back where it belongs: with the fans,” he said.

Steve Ross, professor of law at Penn State, tells FOS that while he certainly sees how the deal will benefit the NFL and ESPN, he’s not so sure consumers will come out ahead.

“I see this as a long-term deal by a bunch of rich people to get richer,” he says. “I see how they might make more money, but it’s not clear if the NFL is going to be marketed more effectively because ESPN and the NFL are now partners somehow.”

The Trump Piece

It’s unclear whether the opinions of Ryan and Ross are shared by the dozens of lawmakers the NFL has reportedly been talking to since the deal was announced. Another question is whether Trump will enter the fray, and what side of the matter he might fall on. 

It’s impossible to know what Trump might do “because he’s so unpredictable,” Irwin Kishner, co-chair of the sports law group at Herrick Feinstein LLP, tells FOS.

“Is he going to get in the middle of this the way he recently did with the Commanders stadium deal?” Kishner says. “Who knows?” There, Trump last month threatened to kill a $3.8 billion stadium deal between the Commanders and District of Columbia leaders should the Commanders not revert to their prior name. 

Ari Fleischer, the former White House press secretary to President George W. Bush, told FOS that the proposed deal is “political catnip” for Trump, who has a long history of failing to buy NFL teams and has been at odds with the league over politics and new kickoff rules.

Legal Hurdles Ahead

Trump’s personal whims notwithstanding, the agreement will almost certainly trigger review under the Hart-Scott-Rodino Antitrust Improvements Act, which requires companies to notify the Federal Trade Commission and Department of Justice before completing certain large transactions. The HSR process gives regulators a chance to determine whether a deal may substantially lessen competition, and to block it if necessary.

“I suspect it is required,” says Kishner. “The question I would have [as another broadcaster] is how does this affect my business? Am I getting left behind? What do I do to counteract or compete against this?”

Reuters reported the DOJ is expected to perform a “substantive review” of the deal, and that it could take up to a year for the deal to obtain U.S. antitrust approval.

Disney and ESPN (which is owned by Disney) already know a thing or two about the difficulty in completing deals due to potential antitrust issues. Earlier this year, Venu Sports, a planned streaming joint venture between Disney, Fox, and Warner Bros. Discovery, was shuttered amid controversy. 

Fubo had sued over the formation of Venu last summer, arguing it violated U.S. antitrust law. Fubo succeeded in blocking the intended debut of Venu last fall, and the case was still ongoing when the saga came to a sudden end in early January, with Disney agreeing to buy a majority stake in Fubo and the parties dropping the lawsuit. 

The Disney-Fubo deal is still working its way through the system, and it too has faced pushback, including from satellite TV carriers DirecTV and EchoStar, which filed letters with the U.S. District Court arguing that Disney simply paid Fubo “to ensure cooperation from an aggrieved competitor.”

“The federal government has a coterie of things to protect the airwaves and so forth,” Kishner says. “If the government is against it, it’s going to make life harder [for the NFL and ESPN].”

Ross sees potential parallels to past antitrust battles. In the 1950s, the federal government forced DuPont to sell its 23% stake in General Motors over concerns it would distort purchasing decisions. Perhaps more pertinent is a case in another country. In the 1990s, the U.K. government blocked the proposed acquisition of Manchester United by Sky Sports. 

Ross says that deal failed on “two grounds”: First, the U.K. Monopolies and Mergers Commission was “concerned that if Sky executives were at the [English Premier League] table, this would distort the EPL’s decision-making concerning to whom they would license their games.”

Second, the regulator was worried it would be unfair if a team was owned by someone more focused on making money from media rights than winning games.

Ross says to consider the following: What happens if another league is being launched and wants to reach a commercial agreement with ESPN, but success of the league could be adverse to the NFL. “How does ESPN respond?” Ross says. Same goes for a vice versa situation—if there’s some deal that ESPN wants to do that might not benefit the NFL.

“I don’t see what’s on the plus side for the consumer,” Ross tells FOS. “The NFL is such a gorilla, and these deals allow a lot of discretion in how you negotiate. That creates room for distorted incentives and informal pressure.”

—Dennis Young contributed reporting.

Crystal Palace Loses Final Europa League Appeal After Ownership Snafu

Daniel Cole-Reuters via Imagn Images

Crystal Palace will not be playing in the Europa League next season after losing an appeal at the Court of Arbitration for Sport.

The Swiss-based international arbitration court on Monday rejected an attempt from the English soccer club to appeal a UEFA decision booting it from the 2025–26 Europa League, ruling that John Textor failed to follow the European soccer governing body’s multi-club ownership rules.

The saga has been going on all summer. Two clubs Textor held significant ownership stakes in through Eagle Football Holdings Limited—Crystal Palace in the U.K. and Olympique Lyonnais in France—each qualified for the Europa League last season. But under UEFA rules, teams with shared owners who have “decisive influence” can’t compete in the same continental tournament. 

There have been several recent instances of UEFA enforcing the multi-club rules as more investors enter soccer. In June, Irish club Drogheda United lost its appeal of a UEFA decision removing the team from its 2025–26 Conference League due to non-compliance with multi-club ownership rules (both Drogheda United and Danish side Silkeborg IF are owned by U.S. investment firm Trivela Group).

Crystal Palace and Textor had projected confidence earlier in the summer, especially after Lyon was relegated to the second level of French soccer, Ligue 2, over financial irregularities. But after a successful appeal in July the French club found its way back to Ligue 1—and the Europa League.

Meanwhile, Textor tried to become compliant under UEFA rules by offloading his 43% stake in Crystal Palace to Jets owner Woody Johnson, but last month the UEFA determined that deal was too late and kicked Crystal Palace out of the Europa League, handing its spot to Nottingham Forest. According to the UEFA, all ownership changes needed to happen before March 1 in order to be in place for the next season. Part of the reason Textor failed to sell his Crystal Palace stake in time is because ownership apparently did not see multiple UEFA emails notifying clubs of a new deadline for owners with stakes in multiple teams to put their shares in a blind trust. The messages were reportedly sent to Crystal Palace’s general email address.

Following an in-person hearing on Friday in Switzerland, a three-person panel for the CAS determined that Textor held shares in both teams and was a board member with “decisive influence” at the time the UEFA assessed the situation.

“Regulations are clear and do not provide flexibility to clubs that are non-compliant on the assessment date, as [Crystal Palace] claimed,” CAS said in its Monday statement.

Crystal Palace will still get to play in European competition next season through the UEFA Conference League, one step down from Europa. The exact financial difference for a club that competes in Europa League versus the UEFA Conference League was not clear, but is without question a substantial amount. Clubs that played in the 2023–24 Europa League were guaranteed a minimum payout of at least $4.2 million (€3.63 million) from the UEFA, compared to $3.4 million (€2.94 million) for clubs that qualify for the Conference League, according to information provided by the UEFA to teams that year. The total payout for clubs in Europa League can rise much higher depending on performance, TV market share, and other factors.

The outcome represents a cautionary tale for would-be soccer investors looking to replicate the hypergrowth that Wrexham’s celebrity owners have seen in recent years.

“The fact that Ryan Reynolds pulled it off is not because Wrexham had any special sauce,” one industry source recently told Front Office Sports. “It’s a pipe dream for people to think they can be Ryan Reynolds.”

Eagle Football Holdings, Nottingham Forest, and UEFA did not immediately respond to requests for comment. Crystal Palace beat Liverpool on penalties for the Community Shield on Sunday.

JOIN US AT TUNED IN

The biggest names in sports media will be at Tuned In on Sept. 16 in New York. The incredible speaker lineup includes:

  • NBA commissioner Adam Silver
  • MLB commissioner Rob Manfred
  • AUSL commissioner Kim Ng
  • ESPN chairman Jimmy Pitaro
  • Fox Sports CEO Eric Shanks
  • NBC Sports’s Maria Taylor
  • CBS Sports announcer Ian Eagle
  • NBC Sports announcer Noah Eagle

And just announced: ESPN host Stephen A. Smith and OutKick founder Clay Travis will close the day by debating sports, politics, and the business of both. Learn more and get your tickets here.

Kalshi, Polymarket Competitor Novig Lands $18M in Funding

Jovanny Hernandez/Imagn Images

Kalshi and Polymarket have dominated prediction markets with provocative contracts and social media theatrics, but an upstart called Novig has entered the fray with $18 million in new funding and ambitions to become the U.S. market leader.

New York–based Novig—named for its lack of vig, or built-in commission—runs a peer-to-peer prediction platform for betting on sports outcomes using Novig cash or Novig coins (coins are unredeemable and for fun; cash can be redeemed for “monetary prizes”). The platform is available as an app, which currently covers all major leagues, including the NBA, WNBA, NFL, and MLB.

“Sportsbooks sell you on the dream you can make lots of money,” Jacob Fortinsky, the 27-year-old CEO and cofounder of Novig, tells Front Office Sports. “In reality, the second you make good money they say ‘your money is no good here.’”

From Harvard to $2B in Trading Volume

Founded in 2021 by Fortinsky and Kelechi Ukah while at Harvard University, Novig says it has seen “explosive growth” since launching publicly in September 2024, claiming a more than 50-fold increase in monthly trading and more than $2 billion in annualized volume. Fortinsky declined to share how many people currently use the Novig platform.

The Series A funding was led by Forerunner Ventures, with contributions from venture-capital firms Y Combinator, NFX and, Perceptive Ventures, and Gaingels. Including the Series A, Novig has raised about $33 million total since its formation. It also counts legendary NFL quarterback Joe Montana as one of its investors.

The money is significant but not at the level of Kalshi or Polymarket; the former recently raised $185 million at a $2 billion valuation, while the latter reportedly raised more than $200 million at a $1 billion valuation.

Betting Without the Sportsbook Model

Novig debuted as a regulated sportsbook in Colorado but quickly pivoted to its current sweepstakes format, now available in 38 states.

“We realized the traditional sports betting regulatory environment was not friendly to peer-to-peer,” says Fortinsky.

Right now, Novig is all sports—unlike Kalshi and Polymarket, which allow users to trade on issues like whether it will rain in New York City on a given day or whether President Trump will shake Vladimir Putin’s hand before their upcoming summit in Alaska.

Fortinsky calls Novig “the most advanced prediction market under the hood but also the most accessible,” modeled after major sportsbooks but offering better odds. The start-up plans to expand beyond sports and could pursue a federally regulated exchange, depending on the outcome of Kalshi’s legal battle with the Commodity Futures Trading Commission (CFTC).

“It does feel like we’re entering into the golden age of prediction markets,” Fortinsky tells FOS. “It feels inevitable that they’ll take over.”

Avoiding the Spectacle

Kalshi has embraced political flashpoints, while Polymarket has leaned in to crass gimmicks like bets tied to WNBA games where dildos were thrown on court.

Fortinsky calls such tactics “intentionally provocative,” and says Novig prefers to stay focused on building the best product.

“That may be why not everyone has heard of us,” he says. “We aren’t doing public stunts in the same way that some competitors are. But we almost have blinders on. We’re trying to build the best product, that’s where all our attention is focused.”

The mission, he adds, is “rooted in consumer advocacy” to fix an “exploitative” industry.

“We’re more than happy to be second movers,” Fortinsky says. “They can fight the legal battles, then we’ll swoop in and deliver the best experience for users.”

Deal Flow

Wyc Out As Celtics Governor

Mar 2, 2025; Boston, Massachusetts, USA; Boston Celtics majority owner Wyc Grousbeck cheers on the Celtics during the during the second half against the Denver Nuggets at TD Garden.

Paul Rutherford-Imagn Images

  • Wyc Grousbeck will not stay on as lead governor for the Celtics as originally intended once the team’s $6.1 billion sale closes, meaning incoming owner Bill Chisholm will take the reins years earlier than initially planned. Grousbeck will remain as alternate governor and CEO through the 2027–28 season, two sources familiar with the matter tell Front Office Sports. Alternate governors vote on league matters when the primary governor is absent. The news comes just ahead of the anticipated closing of the transaction; sources recently told FOS the NBA’s board of governors is expected to vote on the deal, announced in March, by the end of next week.
  • Skechers has escaped a lawsuit challenging its blockbuster $9.4 billion sale to private-equity firm 3G Capital, with the suit being voluntarily dropped not long after the judge said the shareholder’s initial arguments were not up to snuff. The suit from Key West Police Officers & Firefighters Retirement Plan, filed in May, has been voluntarily dropped without prejudice, meaning the plaintiff can refile these same claims again. 
  • Jump, a software platform for professional sports teams cofounded by Alex Rodriguez, has amassed $23 million in a Series A funding round led by Reddit cofounder Alexis Ohanian and his venture capital firm Seven Seven Six. The Jump platform is meant to provide teams with a single app that can handle everything from ticketing to merchandise and concession sales. The first pro teams to use the service were the NWSL’s North Carolina Courage and the United Soccer League’s North Carolina FC, and the NBA’s Timberwolves will use it this upcoming season.
  • Batbox, maker of an immersive baseball simulator with plans to open Topgolf-esque venues in the U.S., has landed $3 million in a follow-on investment from an existing backer, growth capital fund Emerging. The new funding enables the business to “secure full ownership of its core technology and IP, including key patents and software rights,” according to a press release shared with Front Office Sports. Formed in 2019, Batbox simulators are already available in more than 70 locations across the U.S. and Latin America. 
  • A business cofounded by NFL quarterback Aaron Rodgers and actor Ryan Rottman that’s envisioned as the IMDb for athletes has relaunched under a new name with a subscription-based model for its database that costs $29.99 a month or $199.99 annually. AthleteAgent.com, formerly Online Sports Database, provides contact, representation, investment portfolio, and other information for NFL, NBA, MLB, NHL, and MLS athletes, with plans to soon roll out more sports, including golf.

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