May 12, 2021

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The NFL is set to release the 2021 schedule tonight. Time to make travel plans. 📆

Top Athletes Flourished While Leagues Lost Money

Brian Fluharty-USA TODAY Sports/Design: Alex Brooks

Major U.S. sports leagues took a combined $14.1 billion revenue hit in 2020, but times have never been better for athletes with towering personal brands.

Four individual athletes earned more than $100 million in the past year, per Forbes’ 2021 tabulation. Endorsement deals, business ventures, and player salaries were factored into earnings estimates. LeBron James fell just short of the 9-figure club at $96.5 million.

At the top of the list, Conor McGregor earned $180 million, primarily from the sale of his whiskey brand, Proper No. 12. He wasn’t the only one to gain more from his business ventures than his day job.

  • Kevin Durant (10th, $75 million), like James, had his salary contained by the NBA salary cap and league-wide pay cuts as a result of the NBA’s $880 million drop in revenue from 2019 to 2020. Durant cashed in from his early investments in Postmates, which Uber acquired last July, and Coinbase, which went public in April. 
  • Roger Federer (7th) showed the power of his brand. Injuries kept him off the court, but he still brought in $90 million from deals with Rolex, Credit Suisse, Uniqlo, and others.

Soccer stars Lionel Messi (2nd, $130 million), Cristiano Ronaldo (3rd, $120 million), and Neymar (6th, $95 million) earned most of their cash from salaries, despite Europe’s big soccer leagues losing an estimated $7.3 billion in revenue from the pandemic.

Just as notable were the absences: No women made the top 10, nor did any baseball or hockey players, highlighting the challenges those sports have had in marketing their biggest stars.

TaylorMade Golf Sold for Record $1.7B

TaylorMade/Design: Alex Brooks

Centroid Investment Partners, a South Korea-based private equity firm, acquired TaylorMade Golf for $1.7 billion, the largest acquisition ever in the golf goods industry.

“The industry is currently experiencing high demand, increased participation with strong long-term opportunities around the world,” said Centroid CEO Jinhyeok Jeong. 

New York-based KPS Capital Partners, TaylorMade’s previous owner, acquired the company from adidas in May 2017 for $425 million.

TaylorMade, known for its innovation of metal drivers, has become a leading brand in the $80 billion global golf industry since its debut in 1979, endorsed by superstars like Tiger Woods, Dustin Johnson, and Rory McIlroy. 

The company became a hot commodity when it was placed on the market, and Centroid outbid four other groups of global strategic and financial investors. 

Centroid is evidently bullish on golf. 

In March, the firm completed its $170.7 million acquisition of the prestigious South Springs Country Club. The deal marked one of the most expensive golf course sales in South Korea, the third-largest golf market in the world behind the U.S. and Japan.

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Sports Betting Soaring Nationwide

Raj Mehta-USA TODAY Sports/Design: Alex Brooks

Tennessee announced Tuesday that it’s the quickest state to reach $1 billion in sports wagers — just six months after launching sports betting in the state.

What’s happening in Tennessee is comparable to what’s been unfolding across the U.S.

Here’s where other states’ sports wagers stood after six months of operations:

  • New Jersey (9 casinos): $928 million
  • Indiana (14 casinos): $794 million
  • Colorado (35 casinos): $670 million

Colorado reached its first full year of sports betting earlier this week. The state recorded $2.3 billion in total wagers in its first 12 months.

Twenty-six states and Washington, D.C., have legalized sports gambling so far.

Six-month totals drop off a bit after the top four states. Mississippi, for example, brought in around $194 million in the six months after it legalized in August 2018 — before the industry exploded the way it has in the last year.

Another factor: Tennessee only permits mobile betting, while Mississippi explicitly forbids it.

Despite the state-to-state nuances, there’s plenty of money to be made across the country. Goldman Sachs predicts that the betting market will be worth almost $40 billion by 2033.

Conversation Starters

Conversation Starters

  • Sports IQ, a betting software company, raised $7 million in seed funding that includes contributions from MLB executive Theo Epstein, Boston Red Sox CEO Sam Kennedy, and the Kraft Group. The group also includes Seattle Kraken minority owner Mitch Garber and Fenway Sports Group president Michael Gordon. 
  • The Connecticut Whale has become the third privately-owned franchise in the six-team National Women’s Hockey League. Previous owners W Hockey Partners sold to an investment group led by merger and acquisition specialist Tobin Kelly.
  • The NFL will announce its complete schedule for the 2021 season at 8 p.m. ET Wednesday. The defending Super Bowl champion Tampa Bay Buccaneers will host the Dallas Cowboys on Thursday, Sept. 9, in the annual Kickoff Game. The NFL will have a 17-game regular-season schedule for the first time.
  • For the first time since 1979, the Canadiens and Maple Leafs will meet in the Stanley Cup Playoffs. In the previous 15 head-to-head matchups, Montreal has won eight. Get more stories like this in Sports Section, a free, daily newsletter. Click here to subscribe.

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Market Movers

Market Movers

U.S. stocks experienced declines across all three major indexes on Wednesday for a second straight session of losses. Here’s a look at how sports-related stocks performed:

Up:

fuboTV Inc. (NYSE: FUBO) gained 9.90%

Down:

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) dropped 8.99%

Penn National Gaming, Inc. (NASDAQ: PENN) dropped 8.41%

Caesars Entertainment, Inc. (NASDAQ: CZR) dropped 8.30%

Boyd Gaming Corporation (NYSE: BYD) dropped 7.67%

Genesco Inc. (NYSE: GCO) dropped 7.57%

(Note: All as of market close on 5/12/21)

What to Watch

What to Watch

The Utah Jazz (50-19) host the Portland Trail Blazers (40-29) tonight. The teams last met in April when the Jazz won 122-103.

How to Watch:

9:30 p.m. ET on ESPN

Betting Odds:

Jazz -2 || ML -130 || O/U 234.5

Pick: Despite not having Donovan Mitchell, the Jazz remain hot with a 5-1 record in their last six games. Take Utah to cover and lean under.

Who ya got? Reply to this newsletter with your prediction for the Trail Blazers-Jazz winner, final score, and high scorer. Nail it, and you get a mention in Thursday’s FOS PM. Don’t forget to include your Twitter handle.

Shoutout: On Tuesday, we asked readers to pick the winner, final score, and high scorer of the Heat-Celtics tilt. The Heat beat the Celtics 129-121 despite a game-high 36 points from Kemba. FOS reader David Nagelberg (@SportsGuruDave) predicted the Heat winning by eight, while Jack Horsman (@jhorsman5) nailed Kemba as the high scorer.

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Written by Owen Poindexter, Justin Byers, Abigail Gentrup

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