May 19, 2021

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Between all of these apps, wearables, and reopening gyms, all of us should be on point this summer. 💪

Equinox Shifts Business Plan, Scores Big With App

Equinox/Design: Alex Brooks

When it came to navigating post-pandemic complications for the fitness industry, Equinox saw an opportunity to run away from the competition. 

The result? An advantage over the brand’s buzzier rivals in the lucrative connected fitness game, which is projected to reach $60 billion in the next six years.

Equinox began selling stationary bikes last year with a $39.99 per-month subscription through an app called Equinox+ to stream SoulCycle classes from home — and even added Universal Music Group’s entire catalog to its portfolio.

The upscale fitness chain’s membership dues started at $2,200 pre-pandemic, making over $1 billion in revenue each year. 

Now, Equinox is using a “tribrid” model for at-home, in-person, and outdoor workouts — it’s currently experimenting with “In the Wild” outdoor gyms.

“We really believe that physical and digital are complementary,” Simon Belsham, president of Equinox Media, told CNN Business. “We think we’ve created the ‘HBO of fitness’ because on HBO there’s no bad programs.”

Equinox is taking advantage of rival Peloton’s recent misfortunes. In the past year Peloton has:

  • Recalled treadmills following dozens of injuries and the death of a child
  • Faced scrutiny over delivery times
  • Been accused of using improperly licensed music

With around 100 U.S. locations, Equinox shifted its business plan amid the pandemic, closing a number of locations at a loss of roughly $350 million last year.

Equinox is in talks with a SPAC from Golden State Warriors minority owner Chamath Palihapitiy for a merger that could value the company at over $7.5 billion, according to Bloomberg.

Wearables Offer New Type of Athlete-Fan Connection

WHOOP/Design: Alex Brooks

Most fans will never have a heart-to-heart conversation with NFL star Patrick Mahomes, but at least they can now compare heart rates.

Mahomes wears a WHOOP bracelet that tracks heart rate, movement, respiratory rate, and other metrics. The company also calculates metrics on sleep quality, recovery, and more. 

On Tuesday, WHOOP released biometric data for the 2020-2021 season on the Kansas City Chiefs quarterback, showing that Mahomes spends most games at a heart rate of 150-190 beats per minute — around twice that of the average adult.

WHOOP, which has raised around $200 million to date at a $1.2 billion valuation, is just one of many brands setting a pace in the wearables market.

  • Oura, which sells a ring that tracks health metrics, raised $100 million from the Los Angeles Dodgers’ Elysian Park, among others, earlier this month.
  • The Apple Watch is a key part of the tech giant’s push into fitness. 
  • WearOS by Google, working with Samsung, announced upcoming fitness and wellness features with FitBit, which Google bought in January. 

WHOOP includes its bracelet in its app subscriptions, which cost $30 per month, or $288 for an entire year.

In early May, the company partnered with the PGA Tour and NBC’s Golf Channel to show the live heart rates of Rory McIlroy and Justin Thomas during the Wells Fargo Championship broadcast. 

“Understanding how these athletes not just train, but sleep and recover and really deal with stress is going to be very intriguing to fans,” WHOOP CEO Will Ahmed told Front Office Sports.

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Sports Documentary Boom Continues

Jasen Vinlove-USA TODAY Sports/Design: Alex Brooks

For years, Derek Jeter was the New York Yankees’ diplomat to the press, a steady presence through team struggles and clubhouse drama. A new documentary series from ESPN promises a deeper look at The Captain.

Jeter, who retired in 2014 at 40, was the face of the dominant late-’90s Yankees and won five World Series titles. He made $266 million from his playing salary, and his endorsement deals included Jordan and Gatorade. 

“The Captain” will be produced in association with Major League Baseball and The Players Tribune, an athlete-focused publication Jeter founded in 2014 and sold to Minute Media in 2019. 

Jeter owns about 4% of the Miami Marlins, which he acquired with Bruce Sherman and others for $1.2 billion in 2017. 

Sports documentaries are in a boom period.

  • Fox hinted at an unscripted Tom Brady series this week.
  • Documentaries on John Madden (Fox Sports), Joe Montana (Peacock), and Kevin Garnett (Showtime) are also in the works.

“The Captain” will debut on ESPN and ESPN+ in 2022. ESPN+ subscriptions grew 75% in the fiscal second quarter to 13.8 million, helping Disney reach $15.9 billion in revenue. 

ESPN and Netflix’s “The Last Dance,” about Michael Jordan and the Chicago Bulls dynasty, was wildly successful. The 10-part series averaged 6.1 million viewers for episodes 1 and 2 across ESPN and ESPN2 in 2020.

LeBron vs. Steph: Portfolio Edition

Robert Hanashiro-USA TODAY Sports/Design: Alex Brooks

The NBA’s new play-in tournament debuted Tuesday, but the marquee matchup is tonight: Steph Curry vs. LeBron James.

Implemented to give fringe playoff teams a postseason chance, this new win-or-go-home pathway has led to a battle between basketball royalty.

Both superstars are forces off the court, too.

Through SC30 Investments, Curry — who made $74.4 million in 2020 — has put together an impressive portfolio. 

  • Investor in Tonal, the at-home fitness startup also backed by Amazon.
  • Investor in Step, a financial services app that’s also backed by Alex Rodriguez.
  • Co-founder of Unanimous Media and marketing platform Slyce, and also an investor in beverage company Oxigen.

James — who made $96.5 million in the past year — is even more prolific on the business side.

  • Co-founder of The SpringHill Company, home to Uninterrupted and HBO’s “The Shop.”
  • Stakeholder in Fenway Sports Group, owner of the Boston Red Sox and Premier League club Liverpool.
  • Investor in Blaze Pizza, which plans to open 500 locations by the end of 2021. 
  • Co-founder of Ladder, a sports nutrition company. 

As for their teams, the Warriors are narrowly more valuable at $4.7 billion to the Lakers’ $4.6 billion, according to Forbes.

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Conversation Starters

Conversation Starters

  • Stanford is reversing the decision it made last year to eliminate 11 varsity sports programs at the school.
  • Gov. Andrew Cuomo announced that the New York City Marathon will take place in-person this year, with 33,000 entrants compared to the usual 55,000.
  • Bad Robot Games, a 3-year-old division of J.J. Abrams’ entertainment company, raised $40 million in a Series B funding round led by Galaxy Interactive.
  • The NFL released pandemic-related rules for its upcoming season, closely mirroring those of last year — though fully vaccinated ticket holders have more leeway.

Question of the Day

Do you think the Lakers or Warriors will win tonight?

 Lakers   Warriors 

Tuesday’s Answer
60% of respondents are open to using CBD.

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Written by Abigail Gentrup, Justin Byers, Owen Poindexter

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