For Adidas, sales are steady again, but the business model has changed.
Adidas Focused On China and E-Commerce
Adidas/Design: Alex Brooks
When the fog clears from the pandemic, Adidas’ business operations will have transformed.
Adidas weathered the pandemic in the last quarter of 2020 with a 53% bump in online sales, and revenue growth in Greater China — trends the company intends to continue in its next chapter.
The Herzogenaurach, Germany-based company also announced a partnership with Peloton, signaling a bet on the home fitness movement.
While the company has reopened over 95% of its stores around the globe, in-person retail will take a backseat to online sales in the company’s growth strategy.
In a five-year plan released alongside its Q4 earnings on Wednesday, Adidas said it plans to double e-commerce sales to between $9.5 billion and $10.7 billion by 2025. The company will invest over $1.2 billion in the digital transition.
It also expects sales to grow by 20-30% in Latin America, Asia-Pacific, and Greater China this year.
China in particular will be a focus for the shoe and apparel maker. The company is reorganizing its bookkeeping to separate out the Greater China region from Japan, South Korea, Southeast Asia, and the rest of the region.
Adidas announced last month that it plans to fully divest Reebok, casting off an underperforming brand as it looks toward a new era.
McGregor’s Massive Whiskey Payout
Proper No. Twelve/Design: Alex Brooks
Conor McGregor is set to double his net worth and he didn’t have to fight to do it.
The former UFC champion and his manager Audie Attar are reportedly selling their 51% stake in Irish whiskey Proper 12 to Mexican spirits giant Becle — owner of Jose Cuervo and 1800 Tequila.
McGregor launched Proper 12 in 2018. Becle had a 20% share at the time, but increased its stake to 49% last year for more than $230 million. The whiskey’s name references McGregor’s hometown of Crumlin in postal district Dublin 12.
McGregor and Attar are expected to split roughly $155 million under parent company Eire Born Spirits in the sale. McGregor made $48 million last year and $5 million for his shock loss to Dustin Poirier at UFC 257, per Forbes.
Despite harsh reviews, many are still interested in Proper 12. In 2018, the brand was limited to two bottles per customer in Tesco Ireland due to high demand and sold out of a six-month supply in 10 days. It’s since expanded to the United States, United Kingdom, and Australia.
Becle released its 2020 full-year earnings in February. The conglomerate’s net sales increased 19.4% year-over-year to $1.7 billion.
McGregor has other business ventures with his apparel brand August McGregor and Reebok, which pays the MMA fighter roughly $5 million per year. “I’m 30 now, say by 35 I’ll be a billionaire,” he said in 2018.
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Foreign Spectators Denied at Tokyo Olympics
IOC/Design: Alex Brooks
After months of speculation, Japan has decided to block foreign spectators from attending the Tokyo Olympics and Paralympics to prevent the spread of COVID-19, per Kyodo News.
The Summer Games are scheduled to run from July 23 to Sept. 5 and were expected to host around one million foreign spectators.
“We would really like people from around the world to come to a full stadium, but unless we are prepared to accept them and the medical situation in Japan is perfect, it will cause a great deal of trouble also to visitors from overseas,” Seiko Hashimoto, president of the Tokyo Olympic committee, told reporters last week.
The decision was difficult for the Japanese government, as the games were set to stimulate the country’s economy.
The one-year delay from the originally scheduled 2020 games caused costs to surge to at least $15 billion.
The financial hit will be compounded with no foreign spectators. Japan projected ticket revenue to reach almost $830 million.
Governing bodies anticipate a decision on domestic attendance in April. Around 4.45 million tickets were sold in Japan, but roughly 810,000 refund requests have already been made.
The 2018 Winter Games in PyeongChang, South Korea saw 80% of its ticket sales come from local spectators.
The NFL and NFLPA agreed to a salary cap of $182.5 million per team for the 2021 season. The new salary cap number is an 8% decrease from last season’s $198.2 million. Cap limits had increased every season since 2011.
Epic Games is acquiring Capturing Reality, a photogrammetry software for 3D scans. While terms of the deal were not disclosed, Capturing Reality will continue to operate independently as it integrates to Epic Games’ Unreal Engine developer suite.
The XFL and CFL could become business partners. The XFL is set to return in 2022. The CFL canceled its 2020 season after the Canadian government failed to provide $30 million in aid.
For this year’s March Madness, Indianapolis will host 68 teams playing 67 games in a semi-bubble including five hotels, six arenas, and thousands of traveling players, coaches, and staff. Front Office Sports College takes you inside the largest sports bubble yet. Click here to subscribe.
Celebrating NBA Shotmakers
During last weekend’s NBA All-Star Game, fans were treated to the MTN DEW 3-Pt Contest. Warriors superstar Steph Curry gave an all-time performance and won the contest for the second time in his career.
Learn how it all comes together in Sports Marketing Essentials, presented by Pepsi Sports. The free online course consists of eight-lessons, including Branded Events and League Activations, where Eric Robinson, Director at Pepsi’s agency, Genesco breaks down how they plan and execute league activations including the MTN DEW 3-Pt Contest during the NBA All-Star Game.
Sign up and complete the course by March 31 to be entered for the chance to win autographed merchandise from Pepsi athletes.
GameStop shares dropped by 40% in 25 minutes due to a pause for volatility. The stock topped its record closing high at $348.59 per share before the decline. Here’s a look at how sports-related stocks performed:
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) dropped 2.22%
(Note: All as of market close on 3/10/21)
What to Watch
The Dallas Mavericks (18-16) host the San Antonio Spurs (18-14) tonight at American Airlines Center. The teams stand at a respective eighth and seventh in the Western Conference.
Luka Doncic will be back for the Mavericks after sitting in the team’s last game before the All-Star break due to back stiffness.
How to Watch:
8:30 p.m. ET on NBA TV
Mavericks -4 || ML -162 || O/U 226
Pick: The Spurs have been solid on the road going 8-3 in their last 11 games away from San Antonio. They’ve also proven they can compete with the Mavs, narrowly losing 122-117 in January. Dallas won three straight before the break, but could be in for a tough test against a division opponent. Take the Spurs to cover and lean under.
Who ya got? Reply to this newsletter with your prediction for the Spurs-Mavericks 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:We asked you to pick the winner and final score of Tuesday night’s matchup between the Devils and the Capitals. FOS reader Matt Noskow (@edjsports) came closest, picking the Capitals — who won 5-4 — to win 4-3.