FOS Daily 6/10/2020

Adidas has committed to invest $20 million into Black communities over the next four years. The pledge comes after U.S. employees complained about the company profiting off of Black culture and the fact the company’s six-person executive team and 16-person board of directors does not include a Black member.

Along with the investment, the company announced at least 30% of new U.S. hires within Adidas and Reebok will be Black or Latino. Adidas also announced that it would finance 50 university scholarships for Black students in each of the next five years.

Adidas-subsidiary Reebok said it will not extend its deal as the official outfitter and sponsor of CrossFit after CrossFit CEO and founder Greg Glassman tweeted “It’s FLOYD-19” in response to a tweet about the Black Lives Matter protests. Glassman later resigned from his position following further blowback after telling gym owners on a private Zoom call that “We’re not mourning for George Floyd – I don’t think me or any of my staff are.” The ensuing fallout could prove devastating for the popular fitness regimen if more partners and gyms flee from associating with the brand. Across the globe, more than 14,000 gyms pay CrossFit $3,000 a year for its name.

Last week, Nike announced it was donating $40 million to “support the Black community in the U.S,” an effort that followed Michael Jordan and the Jordan Brand also donating $100 million. Nike CEO John Donahoe also said in an internal memo that the company’s diversity and inclusion efforts “have a long way to go.”

UFC’s Fight Island is on as fighters will head to Yas Island in Abu Dhabi next month. The four July dates were announced Tuesday after months of anticipation as UFC tried to find a way to host fights with International fighters.

While UFC has found a way for international competition, the LPGA lost one of its majors as the Evian Championship in France was canceled over international travel concerns. The event was scheduled to field 120 players from 30 countries, but the organization felt “opening the borders, in particular with Asia and the USA, poses a major risk.” 

Other News:

• COVID-19 effects are also at the heart of why Brazil withdrew its bid to host the 2023 Women’s World Cup. Brazil has more than 37,000 COVID-19 deaths and expects its economy to contract by at least 7.4%, so it can’t provide FIFA the financial assurances the organization needs. The event is expected to be awarded June 25 and is now down to Colombia, Japan or a joint candidacy of Australia and New Zealand.
• New Zealand looks to be fully recovered from the coronavirus pandemic as rugby will resume play this weekend, with more than 35,000 fans expected at one game. The country has no active COVID-19 cases – just 1,500 total – and started opening up stores, public transportation and restaurants this week.
• In the U.S., NASCAR is ready to welcome fans at its upcoming races in Florida and Alabama. Up to 1,000 Florida service members will watch Sunday’s race at Homestead-Miami Speedway, while up to 5,000 guests will be allowed in the grandstands at Talladega Superspeedway on June 21.

Barstool Sports continued its diversification into new forms of content yesterday with the launch of the Barstool HooliganZ esports team. The new organization is an extension of its esports and video game vertical Barstool Gametime, which has more than a million followers on TikTok and 74,000 YouTube subscribers.

Barstool has had recent streaming success on Twitch, as Pardon My Take co-host Big Cat has been drawing tens of thousands of viewers while playing NCAA Football 2014. During a recent stream on June 7, concurrent viewers peaked at more than 126,000.

FaZe Clan goes to the movies

As Barstool gets into esports, FaZe Clan will be getting into movies. The esports organization is working with production company Invisible Narratives to produce a self-financed feature-length film set to come out later this year.

FaZe Clan has been working with Invisible Narratives for more than a year as it works to “grow and diversify the FaZe brand.” In April, the organization announced FaZe Studios, which will work on scripted content for TV and film.

The U.S. Tennis Association has reduced its staff by 20% and closed its New York office. The cuts are being framed as a “transformational plan” as the organization works to ensure the U.S. Open is held this year while navigating the coronavirus pandemic.

The U.S. Open’s $400 million in revenue accounts for more than 80% of the USTA’s annual revenue. Last year the tournament attracted more than 738,000 fans, making up most of the organization’s $161 million in ticket revenue. While it has been held at the Billie Jean King National Tennis Center in New York City since 1978, recent rumors suggest it might be moved to Florida or California to mitigate any additional impact from the coronavirus pandemic. 

Regardless, a full field of international players is unlikely, and fan attendance is up in the air. The importance for the tournament, however, doesn’t stop at fan-driven revenue. The USTA generates revenue from an 11-year, $825 million media rights deal with ESPN, which is centered around airing the U.S. Open. The USTA did not buy cancellation insurance, adding additional pressure on the organization.