July 7, 2021

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So, you’ll be able to watch Poirier-McGregor 3 at the movie theater for $25 this weekend. Big move by AMC. 🍿

SoulCycle Thrives As People Return ‘In Droves’

SoulCycle/Design: Alex Brooks

Equinox’s SoulCycle is reaping the benefits of renewed interest in in-person fitness experiences.

“They are coming back in droves, which has been great,” SoulCycle CEO Evelyn Webster told Yahoo. “We’ve seen tears of joy. We’ve seen waitlists.”

Webster says over 50% of SoulCycle’s locations are now open after many were forced to close during the pandemic. SoulCycle’s closures led to $350 million in losses last year.

In May, the company said New York’s new membership sales had increased 55%. By then, all fitness centers nationwide had reached 83% of their January 2020 traffic levels. Planet Fitness, 24 Hour Fitness, and Orange Theory have seen a surge in attendance, too.

SoulCycle is doing its best to simultaneously compete in the connected fitness space, an industry expected to reach $60 billion in the next six years.

  • It started selling $2,500 stationary bikes with a $40 per month Equinox+ subscription that lets you stream SoulCycle classes at home.
  • Universal Music Group’s entire catalog was licensed to Equinox+, which powers SoulCycle’s consumer bike.

Peloton — which expects $4 billion in revenue this year — and several other competitors have made at-home fitness incredibly crowded, giving more reason to re-prioritize brick-and-mortar gyms.

Before the pandemic, Equinox made over $1 billion in revenue each year with membership dues starting at $2,200. SoulCycle does not offer memberships, only pay-as-you-go or bundled class prices.

NFT Market Cruises to $2.5B in Total Sales in H1

Borussia Dortmund/Design: Alex Brooks

The NFT market is as hot as ever, with non-fungible tokens collectively making $2.5 billion in total sales in the first half of 2021.

That figure shows explosive growth from the $13.7 million in sales over the same period last year. NFT sales grew to $81.1 million in the latter half of 2020, and then achieved exit velocity with NBA TopShot. 

  • TopShot sales hit $505.8 million in the first quarter of 2021. Sales fell each month in Q2, when the platform totaled $207.9 million in revenue.
  • Monthly sales on NFT platform OpenSea hit a new high of $150 million in June.
  • Beeple, who holds the record for the largest NFT sale at $69 million, completed the launch of his new NFT platform WENEW by selling an NFT of Andy Murray’s 2013 Wimbledon victory for $177,777. 

Spurred by the success of TopShot, other leagues and teams are getting in on the action.

NBA TopShot maker Dapper Labs is launching a European soccer-focused NFT platform with Fantastec SWAP featuring Real Madrid, Borussia Dortmund, and Arsenal, among other teams. Fantastec SWAP now has over 2 million NFTs on its platform.

MLB launched its first NFT auction in partnership with Fanatics-backed Candy Digital on July 4. The auction, which commemorates Lou Gehrig’s 1939 “luckiest man” speech and will benefit ALS charities, ends Thursday.

SPONSORED BY NFLPA

NFL Players: More Than Meets the Eye

NFL players are focused on being the best they can be on the field.

But when they aren’t thrilling fans with their football talents, NFL players are pursuing other hobbies and interests, like cooking, music, gaming, community involvement, entrepreneurship, and more.

Whether it’s Jets RB Michael Carter’s passion for photography or Saints DE Payton Turner being a self-declared Star Wars nerd, NFL players are so much more than what we see on television. Through the NFLPA’s #AthleteAnd initiative and its deep player knowledge, your brand can better understand the passions of 2,000+ NFL players and connect with their “And” to form more authentic partnerships.

Check out this video to hear from NFL rookies about their interests beyond the game.

Volkswagen Offloads Bugatti to Porsche, Rimac

Bugatti-Rimac/Design: Alex Brooks

Volkswagen is offloading the high-end Bugatti brand to its subsidiary Porsche, which will own 45% of the company, and electric luxury carmaker Rimac, which will own 55%. 

Bugatti, founded in 1909, ceased selling cars in the 1950s but was revived in 1987 and bought by VW in 1998. Juventus star Cristiano Ronaldo is a known enthusiast of Bugatti, which sells certain models for over $10 million.

While Bugatti’s storied racing history is contained in the first half of the 20th century, Porsche competes in the GT series and the all-electric Formula E series, among others. In December, VW slimmed down its racing involvement to a small set of electric races.

Porsche, which is considering an IPO to fund its move into electric models, plans to leverage the technological innovations that could come out of the partnership.

  • Rimac, founded in 2009, sells electric powertrain and battery technology, as well as unique vehicles like the Rimac Nevera, which sells for $2.4 million. 
  • Earlier this year, Porsche raised its stake in Rimac to 24% at a valuation of $939.4 million. 
  • Bugatti, whose signature Chiron model starts at $3 million, has generally lost money. Porsche sells many models at five-figure prices and has been consistently profitable.

Volkswagen reported total sales of $263.5 billion in fiscal 2020, an 11% year-over-year decrease, which the company attributed to the COVID-19 pandemic.

AT&T Out as San Antonio Spurs’ Minority Owner

ATT Center/Design: Alex Brooks

AT&T sold off its minority interest — about 7% — in the NBA’s San Antonio Spurs, Front Office Sports has learned.  

As a result, the Spurs are also on the hunt for a new naming rights sponsor for their home arena. It’s expected the venue will remain known as AT&T Center until the contract expires in fall 2022. 

With the Spurs valued at $1.85 billion, it’s estimated that AT&T made about $125 million from its original investment in the Spurs more than two decades ago. The chunk of the team held by AT&T was part of the 30% stake in the franchise that investment firm Sixth Street and tech billionaire Michael Dell purchased last month. 

“This sale is a result of the ongoing strategic review of our balance sheet and assets to identify opportunities for monetization,” Fletcher Cook, VP of corporate communications for AT&T, said in an email to FOS.

It’s been a big year for sports arena naming rights: 

  • In March, the Miami Heat landed a 19-year deal with crypto company FTX that pays about $7 million per year. 
  • Highmark Health became the stadium sponsor for the Buffalo Bills in a deal worth $6 million annually. 
  • Caesars agreed to a 20-year, $200 million deal for the Superdome, home of the New Orleans Saints.

At around $2 million per year, AT&T’s naming rights agreement with the Spurs was one of the cheapest in pro sports — even for a franchise in one of the smaller U.S. markets.

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Conversation Starters

Conversation Starters

  • What can we learn from the first week of NIL? What kinds of deals have athletes already signed? Sports attorney and New York Law School professor Dan Lust joins Front Office Sports College reporter Amanda Christovich to answer all these questions and more on Wednesday, July 7 at 1 p.m. ET.  Register here for the event. 
  • Head of PlayStation Studios Hermen Hulst disagrees that his company is in an “arms race” with Microsoft to acquire video game studios, saying PlayStation is very selective about its acquisitions.
  • Sha’Carri Richardson will not compete in any Tokyo Olympics events. Her name was absent from the U.S. track and field team’s official roster following her suspension for a positive marijuana test.
  • Former Nike executive Jason Dunlap was named as the new president of CrossFit.

Question of the Day

Do you drink wine?

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Tuesday’s Answer
49% of respondents have watched a professional women’s soccer match.

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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Written by Abigail Gentrup, Owen Poindexter, Justin Byers, A.J. Perez

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