Serena Williams just shattered her own record for a women’s sports card. Her 1999 Sports Illustrated for Kids Series 4 rookie card sold at PWCC Marketplace for $117,000 — more than double the previous record of $44,280.
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Kirby Lee-USA TODAY Sports/Design:Matt Sullivan
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The National Football League’s sponsorship revenue grew 12% year-over-year from $1.62 billion to $1.8 billion in the 2021-22 season and spiked from $1.47 billion in 2019, according to a study by IEG.
NFL franchises only brought in an additional 4% of revenue for rights fees, while league-wide sponsorship spending grew 23%.
IEG global managing director Peter Laatz says the sponsorship boom is “coming from emerging categories.”
- Led by Microsoft’s roughly $100 million per-year deal, technology sponsorships brought in the most money for the season.
- Sportsbooks, casinos, and lottery sponsorships brought in the second-highest dollar figure, with fees growing 140%. DraftKings, FanDuel, and Caesars — which purchased naming rights to the New Orleans Superdome for $138 million — signed five-year deals to become the league’s official sportsbooks with a combined worth of nearly $1 billion.
- Alcoholic beverages brought in the third-highest amount, with Anheuser-Busch paying more than $250 million per year and Diageo contributing $30 million each year. The league’s wine and champagne rights are still up for sale.
The NFL also spent its first full season with Hyperice, signed a new partnership with Cisco, and expanded its Verizon partnership for 10 years.
Future Revenue Opportunities
One emerging category that hasn’t been seen in the league is cryptocurrencies — the league has held discussions about potential opportunities there, but is still skeptical of the market.
Additionally, for the first time, 18 NFL clubs have the opportunity to grow their revenue through 26 international markets including Canada, Mexico, and Germany.
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Microsoft/Design: Alex Brooks
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Microsoft boasted strong earnings for the fiscal quarter ending Dec. 31, 2021, as its mega-acquisition in gaming looms.
The tech giant posted revenue of $51.7 billion, up 20% year-over-year. Net income climbed similarly, up 21% from last year to $18.8 billion.
While supply chain issues slowed Xbox sales, the company still showed gains in gaming.
- Xbox console sales rose 4% from the same period last year, when supply of the devices was also quite limited.
- Xbox content and services revenue jumped 10% year-over-year.
- Revenue for Microsoft’s entire More Personal Computing segment, which includes its gaming, Surface hardware, and search products, grew 15% to $17.5 billion.
Acquisition Blizzard
The earnings provide a further lift to Microsoft after it agreed to acquire gaming giant Activision Blizzard in a $68.7 billion, all-cash deal. Microsoft ended 2021 with $125.4 billion in cash, cash equivalents, and short-term investments.
Microsoft Gaming CEO Phil Spencer assuaged gamer concerns last week when he said that the company would honor previous agreements made by Activision Blizzard and make the next three “Call of Duty” games available on Sony PlayStation as well as Xbox.
Microsoft, however, is not obligated to continue working with its gaming rival on the hugely popular game series beyond Activision Blizzard’s existing deals.
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Wiggle/Design: Alex Brooks
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Signa Sports United generated $278 million in revenue in Q4 2021, a 10% increase compared to the same period the year prior.
The German bicycle and tennis equipment retailer attributed the growth in revenue to strong consumer demand across its verticals, despite bike supply shortages.
- Signa reported 5.1 million active customers in Q4 2021, a 32% increase year-over-year.
- Full-year revenue reached $983.7 million, up 24% compared to FY2020.
In December 2021, Signa public via a merger with Yucaipa Acquisition Corporation, a blank-check company led by Pittsburgh Penguins part-owner Ronald Burkle. Signa raised $484 million during the transaction, valuing the company at $3 billion.
Signa took advantage of the fresh capital with the acquisition of online cycling store Wiggle, which has annual sales of roughly $500 million.
Plans to Expand in the U.S.
Signa is reportedly close to securing an investment worth more than $370 million from a group that includes Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
The funding would go toward expanding Signa’s presence in the U.S.
Signa earns roughly 10% of its total revenue in the U.S., primarily from its Tennis Express and Midwest Sports properties.
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- In The Leadoff, MLB labor talks heat up, Olympic sponsors weigh diplomatic boycotts and the risk of losing customers, Everton’s owner invests $135 million to increase his stake in the club, and Athletes Unlimited tips off its inaugural basketball season. Click here to listen.
- Carissa Moore won this year’s Vans Triple Crown of Surfing competition, the first time a woman has secured the single-highest prize money ($66,500) in 39 years.
- Athletic Greens recently raised $115 million at a $1.2 billion valuation. The deal is another indication of the move to wellness brand beverages and consumer staples in place of more traditional products in the beverage space. Check out our FOS Insights report for more on the topic.
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| (Note: All as of market close on 1/26/22) |
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The PGA Tour’s Farmers Insurance Open brings the best golfers in the world to Torrey Pines.
Last year, Patrick Reed won the tournament by five strokes but in controversial fashion, taking home $1.3 million. Now, players will compete for a $8.4 million purse this week in San Diego.
How to Watch: 12 p.m. ET on ESPN+ / Stream all of the Farmers Insurance Open on ESPN+*
Who ya got? Reply to this newsletter with your prediction for the winner of the Farmers Insurance Open. We can’t wait to see this tournament at one of the best courses in the world.
*Sponsored content. Game Availabilities Differ By Market, Check Your Local Listing.
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