May 12, 2021

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All eyes will be on Medina Spirit come Saturday at the Preakness, but the biggest winner is going to be NBC. 📺

Electronic Arts Reports Lukewarm Fiscal Q4

Electronic Arts/Design: Alex Brooks

Electronic Arts reported earnings for the quarter ending March 31, 2021, and the results fell short of expectations.

The “Madden” and “FIFA” publisher generated $1.34 billion in revenue in its fiscal Q4 2021 compared to $1.38 billion for the same period a year before.

Full-year revenue was completely flat at $5.6 billion — the same as fiscal year 2020. 

“FIFA 21” has amassed more than 25 million console and PC players since its October 2020 release, “Madden” added a record number of new players during the year, and “Apex Legends” reached 100 million lifetime players.

However, EA’s year may best be defined by its spending sprees and big-name partnerships.

  • Completed its $1.2 billion acquisition of British racing game developer Codemasters in February.  
  • Announced “EA Sports PGA Tour,” which will feature the Masters through an exclusive partnership with Augusta National Golf Club. 
  • Completed its $2.1 billion purchase of developer and publisher Glu Mobile. 
  • Acquired Metalhead Software, the Canada-based game studio behind the “Super Mega Baseball” franchise. 

Last week, Activision Blizzard — one of the few video game companies with stature equal to EA’s — reported $2.28 billion in Q1 2021 revenue, up 27% year-over-year.

Conor McGregor ‘Certainly Interested In’ Soccer Club

Mark J. Rebilas-USA TODAY Sports/Design: Alex Brooks

For Conor McGregor’s next trick, he will attempt to turn whiskey earnings into a soccer team.

The UFC fighter turned heads last month when he tweeted that he was “certainly interested in”  buying a sports team, including Manchester United. That was before fans stormed the field on May 2, protesting the current owners, the Glazer family.

With fans desperate for a change, the Irish Times reported that the Glazers open to selling — but for $5.6 billion. However, ESPN says the family is “unfazed by the hostility and unlikely to sell.”

McGregor would need more than the proceeds from the recent $600 million sale of his whiskey brand, Proper No. 12, if he wants to buy the storied club. His net worth is now estimated at around $250 million, and the team is worth around $4.2 billion, per Forbes. 

The 32-year-old said on Sunday that he also has his eye on a more affordable property: Celtic FC of the Scottish Premiership, recently valued at $98.7 million. McGregor said he wants to own a sports team “at some stage,” adding, “I feel I could do big things for a club.”

Spotify founder Daniel Ek is also shopping for a soccer team. He put together a bid for Arsenal with team legend Thierry Henry, but no sale appears imminent.

Meanwhile, McGregor, who is 22-5-0, is not done as a fighter. He will take on Dustin Poirier for the third time in front of a full-capacity crowd in Las Vegas on July 10.

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Fresh Off $12.8B Valuation, Fanatics Roster Grows

Fanatics/Design: Alex Brooks

Sports retail powerhouse Fanatics is coming off a $12.8 billion valuation and doesn’t appear to be slowing down.

The 26-year-old retailer has been on fire for the past several months: 

  • May: Signed Trevor Lawrence to an exclusive deal
  • March: Raised $320 million in funding and began selling products on Amazon
  • February: Announced Fanatics China, expected to be worth over $1 billion
  • December: Acquired sports-themed merchandise retailer WinCraft
  • September: Purchased collegiate headwear brand Top of the World
  • August: Raised $350 million in a Series E round

With its global e-commerce operation up 30% year over year, Fanatics expects to eclipse $3 billion in sales this year. 

It operates sites for the NFL, MLB, NFL, NHL, PGA, MLS, UFC, and NASCAR, and has more than 300 total partners.

On Tuesday it added a 13th NBA team to its roster, the Phoenix Suns. With the Suns’ omnichannel retail partnership, Fanatics will oversee the team’s online, mobile, and venue shops.

The NFL and MLB invested $150 million in Fanatics in 2017, according to a CNBC report. In turn, each league received $100 million equity increases in their holdings in Fanatics in the 2020 raise.

Electric Racing Revolution Rolls On

McLaren Racing/Design: Alex Brooks

The money and prestige associated with Formula 1 racing inspired some of the world’s best car designers. Now, those same minds are trying their hand at electric vehicles. 

One of those aforementioned designers is Gordon Murray, who created Formula 1 racers for BMW and McLaren, helping to put the latter on the map as a force in the racing world.

He’s currently on a mission to build “the world’s lightest, most efficient, and advanced EVs.”

Gordon Murray Group, the company Murray founded after leaving McLaren in 2005, is developing a “skateboard” chassis for mid-size vehicles and SUVs. The design is flexible enough to be included in a wide range of vehicles. 

“It means we invest a lot of money, but it means we can sell the platform more than once,” Murray explained.

McLaren is in the midst of a similar pivot: the company signed an agreement allowing it to enter the all-electric Formula E race for the 2022-2023 season. The team sits in third place in the Formula One standings, looking up at first-place Mercedes. McLaren is using a Mercedes engine this season.

All new McLaren models will be hybrids by 2026, with plans to produce a fully electric vehicle by the end of the decade. The company’s fiscal 2020 revenue was $1.1 billion — down 48% — which the automaker chalked up to the pandemic.

Aston Martin, which returned to Formula 1 this season, is also embracing EVs as it rebounds from a turbulent 2020 that saw its CEO ousted. The luxury brand plans to have 90% of sales be electric or hybrid models by 2030. Q1 revenue leapt 153% year-over-year to $345.6 million.

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Conversation Starters

Conversation Starters

  • Climate Pledge Arena’s renovations will exceed $1 billion on top of an adjacent $75 million private parking garage and $25 million for signage. Construction on the Seattle arena is ongoing, with the goal of finishing before the NHL season starts in October.
  • Sean Culkin, the Kansas City Chiefs player who wanted to convert his entire NFL salary to Bitcoin, has been released. He would have made $920,000.
  • Bally Sports regional sports networks — recently bought by Sinclair — is developing a “direct-to-consumer” streaming service app, which will include enhanced playback capabilities and gamification. Sinclair hopes to launch the app next year.
  • Jesse Winker could be the most under-the-radar star in MLB. The Reds outfielder is leading the National League in batting (.359) and OPS (1.052), and he’s second in OBP (.421) and third in slugging (.631). Get more stories like this in Sports Section, a free, daily newsletter. Click here to subscribe.

Question of the Day

Do you think Conor McGregor will ever own a sports team?

 Yes    No 

Tuesday’s Answer
23% of respondents play Roblox.

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Written by Owen Poindexter, Justin Byers, Abigail Gentrup

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