August 13, 2020

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FC Dallas welcomed fans into the stands last night, Tencent had a solid quarter, at-home weightlifting machines race to be the next Peloton, and sponsors are flocking to Bubba Wallace.

Fan Updates: MLS Plays In Front of Crowd, No Fans At The Masters

Jerome Miron-USA TODAY Sports

FC Dallas hosted Nashville SC in the first out-of-bubble matchup for MLS as the league resumed its regular season last night and became one of the first U.S. major professional leagues to allow fans back in the stadium.

With a maximum capacity of roughly 3,000 fans — 14% of the 20,500 seats in Toyota Stadium — the stands remained relatively empty. Texas has a current executive order setting a 50% limit for venues.

Fans were separated by empty seats to maintain social distancing. They were also required to wear a face mask in the stadium, and had to sign a waiver agreeing not to sue if they were exposed to COVID-19. Based on local protocols, several other MLS markets will welcome fans, including Nashville and Kansas City.

Fan News: 

— The Kentucky Derby, which will be run over Labor Day Weekend rather than its original May date, will admit 23,000 fans and shut down its infield. Last year, Churchill Downs welcomed a crowd of 150,727.

— Dallas Cowboys Owner Jerry Jones plans for fans to be in attendance at AT&T Stadium this season, though he didn’t specify how many.

— As conferences like the Big Ten, Pac-12 and the Big East shelve fall sports, some schools, like South Carolina, are still planning for fans.

— Augusta National Golf Club announced The Masters will be played without fans when it tees off in November.

Tencent Reports 29% Revenue Increase As US-China Tensions Rise

Jeff Curry-USA TODAY Sports

As Tencent waits to see the full effects of President Donald Trump’s executive order targeting business dealings related to its app WeChat, it posted its best quarter since 2018. The Chinese-based technology company reported one of its fastest growing quarters in two years, driven by a 40% increase in online game revenue.

Tencent — which has investments in a breadth of online and mobile games —  saw its revenue grow 29% year-over-year, generating $16.53 billion in the quarter ending in June. Online game revenue was $5.5 billion, fueled by stay-at-home orders across the globe. With those orders waning, the company expects the next quarter to normalize.

The next quarter could be turbulent for Tencent as Chinese-American tensions rise. Despite approximately 19 million U.S. WeChat users, analysts don’t think the WeChat order will impact Tencent all too much. The company also has stakes in a variety of companies ranging from video games to Spotify and Snap, as well as pro sport media rights in China, including a $1.5 billion deal with the NBA.

Following Trump’s order last Thursday, Tencent stock has dropped 6.3% — it had been up 45.5% year-to-date to that point.

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Companies Aim To Become The Peloton of Weightlifting

Tonal

As the more than $30 billion U.S. fitness industry continues to shift to home workouts, there’s a new race to see which smart weight machines can become the next Peloton-type breakout. Tempo, Tonal and Forme Life are three systems working to replace dumbbells and create a connected weightlifting experience.

Tonal’s customers include professional sports teams, like the Minnesota Timberwolves, and it has raised $90 million with an investor list that includes Serena Williams, Klay Thompson and Tony Gonzalez. Tempo has raised a total of $77 million.

Like Peloton, the machines are internet-connected, but focus on AI, cameras and motion sensors to teach users how to lift and guide them through improvements. Tonal and Tempo both sell at just under $2,000, while Forme will retail at $4,295 later this year.

The pandemic has sent gym-goers fleeing — 59% won’t renew memberships according to a recent TD Ameritrade survey — and Peloton has been one of the beneficiaries. In May, Peloton reported sales jumped 66% during its third quarter. Year-to-date, its shares have gained 110%.

Whether or not smart weightlifting machines can do the same has yet to be seen, but perhaps they should: only 21.9% of women and 30% of men meet the recommended two sessions per week of strength training.

Bubba Wallace Attracting Sponsors Following Rise in Visibility

Mark Humphrey/Pool Photo via USA TODAY Network

Bubba Wallace has emerged as one of NASCAR’s most marketable drivers as he has gained national attention for his activism and advocacy efforts around racial equality and inclusivity in racing.

Columbia Sportswear is the latest brand to align with Wallace, NASCAR’s only full-time Black driver, signing a multi-year deal with him yesterday. It marks Columbia’s first-ever deal in the sport.

In recent weeks, Wallace has also signed new deals with Beats by Dre and Cash App. He previously had sponsorships with McDonald’s, Coca-Cola and Maui Jim.

Team ownership may also be in Wallace’s future. His current contract with Richard Petty Motorsports expires after this year, but he has reportedly been offered a stake in the organization to renew his deal.

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What We're Covering

What We're Covering

Football Saturdays bring thousands of people into often small communities to spend money, which could spell trouble for Power 5 conferences, like the Big Ten and Pac-12, who postponed their football seasons.

Simplebet, which debuted in the U.S. Aug. 12, has raised $35 million to date. The company is focused on innovation within in-play betting and a group of A-list investors have bought in.

The week the Pac-12 and Big Ten decided to postpone fall sports seasons has also brought perhaps the most potent movement for college athletes to unionize since the Northwestern football team’s attempt in 2014.

Question of the Day

Would you attend a live sporting event this month?

 Yes   No 

Wednesday’s Answer
38% of respondents have an ESPN+ subscription.

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