July 2, 2021

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Lionel Messi is a free man — for now — and in position to land a huge deal. Where do you think “La Pulga” will end up?

College Athletes Cash In

Douglas DeFelice-USA TODAY Sports/Design: Alex Brooks

The NCAA was dragged to the table, against its will, to let college athletes profit off their names, images, and likenesses — but a new day has finally arrived.

The NIL era officially began when the clock struck midnight on July 1. Throughout the entire day, athletes and brands wholeheartedly jumped into an industry that some estimate could be worth $1 billion.

  • Florida State QB McKenzie Milton and Miami QB D’Eriq King signed on as co-founders of NIL marketplace Dreamfield.
  • Twins Haley and Hanna Cavinder, Fresno State basketball players, inked deals with Six Star Nutrition and Boost Mobile.
  • Arkansas WR Trey Knox inked the first-ever college partnership with PetSmart.
  • Iowa basketball player Jordan Bohannon signed with a fireworks store and Nebraska volleyball player Lexi Sun is launching a clothing line.

Unilever will commit $5 million to promoting Degree deodorant through partnerships with college athletes over the next five years.

GoPuff offered every college athlete a sponsorship deal, and hundreds have already taken up the company’s offer.

Opendorse facilitated at least 1,000 deals in its first 24 hours, while the NFLPA confirmed its agents can work with college athletes, according to a letter obtained by NFL Network.

It’s only the beginning, but NCAA sports will never be the same again. 

“We’re just extremely excited,” Dreamfield co-founder Luis Pardillo told Front Office Sports.

Rockets Owner Expands SPAC Deal by $2 Billion

Troy Taormina-USA TODAY Sports/Design: Alex Brooks

Houston Rockets owner Tilman Fertitta has more on his plate than rebuilding the franchise.

The billionaire expanded the SPAC merger taking Fertitta Entertainment public to include more restaurant and hospitality companies.

Fertitta bought the Rockets for $2.2 billion in 2017.

The additions will lift the valuation of the combined company from $6.6 billion up to $8.6 billion. The properties added to the deal include Catch Hospitality Group and Mastro’s Restaurants, among others.

  • Fertitta will own around 72% of the company and be its chairman, president, and CEO. 
  • Fertitta Entertainment already includes Golden Nugget Hotel & Casinos, Golden Nugget Online Gaming, and restaurant company Landry’s.

The merger with FAST Acquisition agreed to in February initially had Fertitta claiming a 60% stake, with investors like Fidelity and BlackRock contributing $1.2 billion for roughly 35% of the business.

Landry’s said on Wednesday that shareholders have agreed to purchase $1.24 billion in stock upon completion of the merger.  

The combined companies’ net revenues are estimated at $917-$920 million for the second quarter of 2021. FAST previously raised $200 million in its August 2020 IPO.

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Mets Owner Buys Sports Memorabilia Giant

MLB/Design: Alex Brooks

Collectors Holdings, a group co-owned by New York Mets owner Steve Cohen, has acquired Goldin Auctions — an auction house for trading cards and other sports collectibles. 

The acquisition will help Goldin compete with other sports collectible companies like Topps, which reported $166.6 million in sales for its fiscal quarter ending April 3.

Topps expects 2021 sales to range between $740 million and $760 million.

The sports memorabilia industry is worth an estimated $15 billion year — Goldin is one of the space’s leaders. 

  • Goldin raised $40 million in a February round led by The Chernin Group that included Kevin Durant, Dwyane Wade, Mark Cuban, and Bill Simmons. 
  • Goldin broke its annual sales record only three months into 2021, reaching $100 million by March. 

Collectors Holdings was founded with the initial purpose of purchasing Collectors Universe, owner of trading card grader PSA.

Earlier this year, Cohen, along with hedge-fund billionaire Dan Sundheim and sports card collector Nat Turner, took Collectors Universe private at an $853 million valuation.

Tennis Only Shows Love to Superstars?

Peter van den Berg-USA TODAY Sports/Design: Alex Brooks

Australian professional tennis player Christopher O’Connell won 82 matches in 2019 but only pocketed around $15,000, according to The New York Times. 

O’Connell has been ranked as high as No. 111 in the world, but to support his dream, the 25-year-old has cleaned boats and worked retail. 

“If you are not in the top 100, you are basically not making any money,” former Wimbledon doubles champion Vasek Pospisil told the Times. 

On the other hand, Roger Federer, who has won 20 Grand Slam titles, is the seventh-highest-paid athlete in the world with total earnings of $90 million for 2021, per Forbes. 

About half of the NBA’s and NFL’s total revenue is distributed to its players, while the $53.4 million in prize money at last year’s U.S. Open amounted to around 14% of the tournament’s gross revenues. 

Unlike many other professional sports, tennis doesn’t have a union. 

  • Pospisil teamed with Novak Djokovic to establish the Professional Tennis Players Association, an organization that negotiates on behalf of players. 
  • The PTPA is backed by a trio of billionaires: hedge fund manager Bill Ackman, Spin Master co-founder Anton Rabie, and Just Energy Group founder Rebecca Macdonald. 

Female players have yet to voice any support of the PTPA, while Federer and Rafael Nadal also oppose the group. 

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Conversation Starters

Conversation Starters

  • Halfway into 2021, global consumers have spent $44.7 billion on mobile games — a 17.9% increase year-over-year.
  • The NFL fined the Washington Football Team $10 million following an investigation into the team’s culture.
  • After five teams and 16 years, Chris Paul is headed to the NBA Finals for the first time. This is the Suns’ championship to lose. Find out why in The Association, a free, daily NBA newsletter. Click here to subscribe.
  • Which former college athletes would have earned the most from NIL? FOS reader Joe Rizzo said Reggie Rush, Daniel Goldstein mentioned Bo Jackson, Tyler Overly called out the Miami Hurricanes football teams of the 1980s, and Blake Molina said Tim Tebow, Baker Mayfield, RG3, and Cam Newton. Nice answers!

Question of the Day

How many times per month do you purchase breakfast at a fast-food restaurant or diner?

 None   1 to 4   More than 5 

Thursday’s Answer
58% of respondents think college athletes should be paid.

Today's Action

*All times are EST unless otherwise noted.
*Odds/lines subject to change. T&Cs apply. See draftkings.com/sportsbook for details.

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