The first official Formula 1 race was held in 1950, and over the last 71 years there’s never been a full-time F1 driver from China — until Tuesday, when Alfa Romeo Racing added 22-year-old Guanyu Zhou to its team.
Peloton Looks to Raise Cash, Offers $1B in Stock
Peloton/Design: Alex Brooks
Peloton announced plans to sell $1.1 billion of its Class A common stock in an effort to come up with more cash as demand for its products slows.
The reported public offering of 23.9 million shares at $46 each contradicts the connected fitness company’s statements earlier this month that it didn’t need additional funds, despite a temporary hiring freeze and cutting its full-year revenue outlook by as much as $1 billion.
Peloton missed Wall Street revenue estimates of $810.7 million in fiscal Q1 2022, bringing in only $805.52 million — but new products and services continue to roll out.
The company recently unveiled the Peloton Guide, a connected strength product sold in a bundle for $495 with the company’s new heart rate armband.
Peloton also began offering five classes on Delta Air Lines flights at the beginning of the month.
As part of the sale, Peloton expects to grant the underwriters a 30-day option to purchase additional shares of up to $150 million at the public offering price.
The company said accounts advised by T. Rowe Price Associates and affiliates of Durable Capital Partners and TCV are already interested in purchasing shares.
As of Tuesday’s market open, Peloton shares have fallen almost 70% year-to-date.
Endeavor Reports $1.4B in Third-Quarter Revenue
Ed Mulholland-USA TODAY Sports/Design: Alex Brooks
UFC and WME parent company Endeavor posted $1.4 billion in third-quarter revenue on Tuesday, recording $63.6 million in net income.
The company says it delivered its “best nine-month, year-to-date period in UFC history,” for the span ending Sept. 30, despite third-quarter revenue for its owned sports properties division falling by $10.6 million year-over-year to $288.5 million.
Endeavor’s events, experiences, and rights segment jumped $62.1 million to $446.3 million, though it was “partially offset by a decrease in media rights revenues.”
During the quarter, Endeavor made a number of moves to expand its sports business.
The company announced its intent to acquire sports betting company OpenBet from Scientific Games for $1.2 billion.
It closed its reported $60 million acquisition of sports digital agency Mailman Group in July.
It participated in Fanatics’ $350 million funding round in September.
The company is also reportedly teaming up with private equity firm Silver Lake to buy minor league baseball teams, and agreed to a deal with eBay last month to sell sports memorabilia.
Endeavor increased its full-year revenue guidance to between $4.89 and $4.95 billion.
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On Holding is off to the races after posting its best quarter to date.
The Roger Federer-backed running shoe brand recorded$235.2 million in net sales in the third quarter, a 68% year-over-year increase.
Direct-to-consumer sales grew 93% year-over-year, accounting for $81.6 million of the total. Wholesale revenue grew 56.7% to $153.4 million.
The brand showed strength in North America and Europe, which respectively comprised 51.5% and 40.5% of its total sales.
The company’s adjusted EBITDA was $40.8 million.
On went public in September, raising $746 million through an IPO, with an estimated market value of $7.3 billion. Its stock leapt over 20% on Tuesday, bringing it to more than 13% above its initial price.
Federer has been the face of the brand since investing an undisclosed amount in 2019. In addition to its shoe sales, On offers a shoe subscription for its Cyclon model, made from recyclable materials.
The company acknowledged supply chain issues that are likely to affect its earnings in the near term, citing factory closures in Vietnam and higher shipping costs.
Conversation Starters
In today’s Leadoff, more U.S. cities will likely host the World Cup, McLaren denies reports that it had been purchased by Audi, and Vivid Seats and powersports marketplace RumbleOn report their third-quarter earnings. Click here to listen.
The Guardians roller derby team and the Cleveland Guardians MLB team — formerly known as the Cleveland Indians — have reached a settlement in which both teams will keep the “Guardians” name.
The NHL is the first major North American sports league to announce a schedule change to its fall 2021 season because of a COVID-19 outbreak on at least one of its teams.
The Los Angeles Angels are going boom-or-bust to get back to the postseason. On Tuesday, the club reached an agreement with former Mets flamethrower Noah Syndergaard on a one-year, $21 million contract. Subscribe to Sports Section for more on the deal.
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Market Movers
Stocks were up across all three major indexes on Tuesday. Here’s how sports-related stocks performed:
(Note: All as of market close on 11/16/21)
What to Watch
The Brooklyn Nets (10-4) host the Golden State Warriors (11-2) tonight at Barclays Center.
How to Watch: 7:30 p.m. ET on TNT
Betting Odds: Nets -3 || ML -150 || O/U 222*
Pick: Expect the Nets to come out on top in the absence of Klay Thompson. Take Brooklyn to cover.
Who ya got? Reply to this newsletter with your prediction for the Warriors-Nets winner and final score.
Shoutout: Congrats to FOS reader Mia Mundy for correctly predicting the Bulls’ win over the Lakers last night!
