August 18, 2021

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Live fans impact more than ticket revenue. A new study by the University of Leeds and Northumbria University found home advantage was nearly cut in half in empty stadiums.

Disney Contemplates Combining Disney+, ESPN+, and Hulu

Disney+/Design: Alex Brooks

Could Disney+ one day include ESPN+ and Hulu? According to Disney CEO Bob Chapek, “possibly.”

On an investor call following last week’s earnings report, Chapek indicated that the company was still determining the right mix of bundles and standalone services but was open to folding its three best-known streaming services into a single offering.

  • Disney currently bundles all three services together for $13.99 per month.
  • Disney+ (116 million subscribers) costs $7.99 monthly, while ESPN+’s 14.9 million subscribers pay $6.99.
  • Hulu (41.6 million subscribers) offers several monthly price points, from $5.99 for ad-supported membership to a $64.99 live television plan that offers NFL, NBA, NHL, and NCAA games.

“So far, [the Disney bundle has] worked really, really well,” Chapek said. “Is there an opportunity for improvement by considering something different going forward? Possibly, but we’re going to continue to learn.”

He added that “a good chunk” of Disney’s marketing focuses on the bundle and that the churn rates for the combined package “are even lower” than those of Disney’s individual streaming services.

The company already packages content from its Star network into Disney+ in Europe, Canada, Australia, New Zealand, and Singapore. Chapek noted “constraints” around current rights contracts that would make merging multiple services more complicated in North America.

All in all, Disney boasts just under 174 million streaming subscribers, nearing Netflix’s 209 million. Fiscal third-quarter revenues rose 45% year-over-year to $17 billion.

U.K. Pledges $319M for Olympic Success

Rob Schumacher-USA TODAY Sports/Design: Alex Brooks

United Kingdom prime minister is pledging $319 million to the British Olympic team after its success at the Tokyo Games.

Great Britain and Northern Ireland only took home 65 medals, but their winnings were spread across 25 different disciplines, “broader than any other country,” according to the U.K. government.

The U.S. won a total of 113 medals, China won 88, and the Russian Olympic Committee picked up 71.

The new funding is the latest way the U.K. has shown its commitment to sports and fitness.

  • The U.K. government announced Tuesday it’s investing $464.2 million in transforming active travel via infrastructure upgrades to encourage walking and cycling.
  • Next year, the country is set to host the Commonwealth Games — in which more than $1 billion has been invested. It will be the largest sporting event in London since the 2012 Olympic Games.

The $319 million figure marks a 43% increase on what was received leading up to the 2020 Tokyo Olympics. The funds will go toward coaching athletes and scouting the next class of Olympians.

Chief executive of U.K. Sport Sally Munday said the funds are “crucial” for success at the 2024 Games in Paris.

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Lakers Switch Drink Sponsor from Gatorade to BioSteel

Kirby Lee-USA TODAY Sports/Design: Alex Brooks

The Los Angeles Lakers struck a drink sponsorship deal with Canadian-based BioSteel, ending a long-term relationship with Gatorade, per CNBC. 

Terms of the deal were not disclosed. Industry experts estimate beverage deals with top NBA franchises can reach up to $5 million per season. 

The partnership will help the Lakers recover from losses suffered during the pandemic, with revenue dipping to roughly $400 million in 2021 from $434 million last year. 

Gatorade will still make its presence felt in the NBA as the naming rights holder of its developmental league — now dubbed the G League.

BioSteel, which also makes protein powders and other products, is gaining momentum within a global sports drink market expected to reach $32.61 billion by 2026. 

  • Cannabis firm Canopy Growth purchased a majority stake in the company for roughly $40 million in 2019. 
  • Last August, Patrick Mahomes signed a multiyear partnership with the company. 
  • In March, NBA Star Luka Dončić made the brand his first equity investment. 

Sponsorships continue to bring in significant revenue for the NBA.

The league generated a record $1.46 billion in sponsorship revenue during the 2020-21 season, a 6% increase year-over-year.

Ted Segal Foresees Big Future for Houston Soccer

MLS/Design: Alex Brooks

With the World Cup coming to the U.S. in 2026, Houston Dynamo and Dash owner Ted Segal told Front Office Sports he foresees a “step change in enthusiasm [for U.S. soccer] that accrues to the benefit of MLS and NWSL.”

Segal bought the teams in June for an estimated $400 million.

MLS hopes to leverage that expected enthusiasm in its upcoming media rights negotiations.

  • Segal praised MLS for requiring all local media deals to sunset at the same time, so that the league could package rights to broadcasters.
  • The current eight-year media rights package with ESPN and FOX has an estimated total value of $600 million, plus another $120 million from Univision.

Segal is contributing to Houston’s bid to be one of 10 U.S. cities that host the World Cup, along with three each in Canada and Mexico. He added that “there could be up to $1 billion worth of benefits to the city of Houston,” from related tourism and economic activity.

Segal got more good news from the recently released 2020 census: The Houston population grew nearly 10% to 2.3 million over the last decade.

“If you’re a long-term believer in the sport, you want to be in as large of a city as possible,” he said.

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Conversation Starters

Conversation Starters

  • The Washington Football Team is the first NFL team to promote responsible sports betting through the American Gaming Association’s public service campaign.
  • Billionaire investor Ron Burkle was sued again for nearly $1.4 million in unpaid bills after bailing on Sacramento’s Major League Soccer effort.
  • The New York Gaming Commission has approved rules for mobile sports betting in the state.
  • In their latest report, Satisfi Labs identified key game day trends that athletic programs need to anticipate as they prepare to kick off a new season. Download the findings.*

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