August 6, 2020

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NCAA Division II and III canceled their fall sports championships, BodyArmor continues its climb toward sports drink supremacy, the Seattle Kraken are a hot item, and the WWE brings on a new president.

Tough Decisions

Photo Credit: Richard Wood/Milwaukee Journal Sentinel

NCAA Division II and III canceled their respective fall sports championships after the NCAA allowed each division to make its own determination on whether to play or not. Division I will have until Aug. 21 to decide whether it will hold fall championships. The NCAA did, however, direct the divisions to safeguard student-athlete health, scholarships and eligibility through the coronavirus pandemic.

The decision will not come lightly for Division I, where football can generate as much as 75% of a school’s athletic department revenue — with some of the top programs bringing in as much as $150 million. Even if Division I championships are canceled, the Power 5 conferences could band together and hold their own.

While Division I presidents determine their best course of action, Wednesday was a big day for college sports news:

— UConn became the first Football Bowl Subdivision team to cancel its football season.

— The American Athletic Conference said it would play eight conference football games, while the Mountain West is planning a 10-game schedule with two non-conference games.

— Big Ten football players formed a group to address concerns around playing a season, following in the footsteps of Pac-12 players.

— The Pac-12 is working on an up to $1 billion loan program to help its athletic departments bridge the revenue gap if the 2020 football season is canceled.

Stocking The Armory

Photo Credit: Kelvin Kuo-USA TODAY Sports

As BodyArmor looks to challenge Gatorade for the position as the top-selling sports drink, it will continue to look to superstar athletes to lead its charge. The company recently passed Powerade to become the number two sports drink brand by sales, and is expected to surpass $1 billion in sales this year. It had $400 million in sales in 2018.

That push will be aided by its latest additions to its portfolio of athlete partners, which include Christian McCaffrey, Trae Young, Sabrina Ionescu, CeeDee Lamb, Kemba Walker, Drew Lock and Ronald Acuña Jr. All seven also now have equity stakes in BodyArmor.

BodyArmor founder Mike Repole said that he believes the brand will pass Gatorade as the top-selling sports drink by 2025. It currently has more than 10% market share. In comparison, Gatorade has nearly 70%.

Those efforts were boosted in 2018 when Coca-Cola took a significant stake in BodyArmor and brought it into its distribution network, despite owning Powerade. Coca-Cola previously purchased another brand Repole started: Glacéau, which includes Vitaminwater.

BodyArmor’s Existing Partnership Portfolio:

— Official sports drink of the NCAA, MLS and UFC

— Los Angeles Angels outfielder Mike Trout

— Houston Rockets guard James Harden

— Tennis player Naomi Osaka

— Golfer Dustin Johnson

— USWNT & OL Reign winger Megan Rapinoe

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Let’s Get Kraken

Photo Credit: Seattle Kraken

Still 18 months from its first puck drop, the Seattle Kraken are the talk of the NHL. The Kraken have become the best-selling NHL expansion identity launch, selling four times as much merchandise as the Vegas Golden Knights following their reveal in 2016, according to Fanatics.

Since July 24, Seattle ranks in the top-five selling teams in all sports across Fanatics, and has two of the top-three selling products. The team’s ownership group paid $650 million for the expansion rights, which were awarded in 2018.

Kraken Kounter: 

— 20 million website views within 24 hours of the name reveal.

— 157% increase in social media following in the same span.

— 32,000 season ticket deposits.

— 35% increase in season ticket wait list, now up to more than 51,000.

— 13,069 orders on Seattle’s “Release the Kraken” e-commerce store.

WWE Tags In CAA Exec

Photo Credit: Scott Utterback

WWE, fighting falling television ratings and other coronavirus-related challenges, is tagging in a new senior executive to strengthen its business. Nick Khan, previously CAA’s co-head of television, was named WWE’s new president and chief revenue officer yesterday.

Well known in the world of sports representation after working with broadcasters like Keith Olbermann and Hannah Storm, Khan took on clients like the SEC and Top Rank Boxing to secure their media rights deals. He also helped WWE negotiate its recent deals with Fox and NBCUniversal, which are valued at $468 million combined annually. WWE previously received $130 million annually for those same rights.

Khan’s familiarity with WWE and a ‘deepening friendship’ with chairman and CEO Vince McMahon were cited as major reasons for his jump. His broadcast deal experience could also prove useful as WWE looks for a new TV rights deal in the Middle East and whatever the future may hold for the WWE Network, which is rumored to be for sale.

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What We're Covering

Instagram launched its TikTok competitor Reels in the U.S. yesterday with hopes the sports industry embraces it.

David Roberts, ESPN senior vice president of production, spoke to FOS about the new ESPN Radio schedule.

The NWSL’s commercial success around its Challenge Cup tournament was the result of its new leadership and approach.

NBA owners will contribute $300 million in initial funding to launch the NBA Foundation with the NBPA to create “greater economic empowerment in the Black community.”

Question of the Day

What's your preferred sports drink?

 BODYARMOR   GATORADE   POWERADE   OTHER 

Wednesday’s Answer

30% of respondents said they use supplements for training or workouts.

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