Disney released its finalized upfront negotiations, showcasing its dedication to streaming live sports and a significant boost in advertising revenue. 

The Mouse — which owns streaming services Disney+, ESPN+, and Hulu — saw more than 40% of upfront ad commitments go to streaming.

Hulu’s ad revenue is expected to reach $3 billion this year, on par with Disney’s linear networks. The ESPN+ subscriber base grew 75% year-over-year to 13.8 million in the first quarter.

“We led with streaming this year,” said Rita Ferro, president of Disney advertising sales. “You always hear how broadcast leads in the upfront, and we saw an opportunity this year to change that, and we did well.”

In May, Ferro said an upfront priority of Disney’s was “leaning into the unrivaled breadth and depth of our sports portfolio.” In the last year, the Mouse has done just that.

• Announced a seven-year deal with the NHL for linear and streaming platforms, reportedly worth $400 million per season.
• Inked an 11-year deal with the NFL that includes two Super Bowls, more regular-season games and a playoff game for $2.7 billion per year.
• Began a seven-year deal with MLB for roughly $550 million per year.
• ESPN+ bought rights to the English- and Spanish-language coverage of LaLiga at $175 million per year.

“We’re committed to sports because we value live sports, which drives viewers and interest like nothing else,” CEO Bob Chapek said at a conference.

The Premier League’s soccer clubs reportedly suffered the biggest collective loss in their history last year. 

The world’s richest soccer league lost $1.4 billion despite generating $6.3 billion in revenue for the 2019-20 season, according to Deloitte. 

After games were halted and broadcasters sought rebates due to the global pandemic, clubs experienced a 13% drop in revenue. 

Last season marked the first time the combined revenue of clubs had fallen since the Premier League launched in 1992. 

The losses are now impacting how clubs conduct business, particularly during the transfer window. That period, which allows clubs to buy and sell players, opened on June 9 and closes on Aug. 31. 

“I think we will see a relatively quieter summer,” said Dan Jones, head of Deloitte’s Sports Business Group. “But of course, what can always happen in the transfer market is you can get one or two big deals.” 

Premier League teams are currently rebounding thanks to the renewal of broadcasting deals, digital inventory, and ticket sales.

• 20 top-flight clubs agreed to a three-year, $7 billion renewal of domestic broadcast partnerships with Amazon Prime, BBC Sport, BT Sport, and Sky Sports. 
• The league could generate $432 million from digital inventory in 2021, according to a study by Horizm.  
• Fans are permitted back into stadiums, but teams are limited to 25% capacity or 10,000 fans. 

“The Premier League went into the COVID crisis way stronger than other leagues, and it is coming out of it stronger,” added Jones.

Market analyst Hindenburg Research released a report on Tuesday with harsh allegations against Bulgaria-based gaming technology company SBTech — which merged with DraftKings when it went public through a SPAC merger in June 2020.

The research firm estimates that around half of SBTech’s revenue comes from markets where gambling is banned.

DraftKings’ stock dropped more than 11% at market open on Tuesday but partly recovered thereafter.

DraftKings denied Hindenburg’s claims, stating that “SBTech does not operate in any illegal markets” and that DraftKings reviewed SBTech’s business practices and was “comfortable with the findings.”

DraftKings has never turned a profit and is not expected to until 2026. It has a slew of partnerships with the NBA, NFL, UFC, NASCAR, PGA, and media companies.

Hindenburg revealed it is short-selling DraftKings and will profit from drops in its stock. Hindenburg is also facing a lawsuit from investment firms Catalyst Capital and Callidus Capital over allegations of a short-selling conspiracy.

Credit Suisse issued a buy rating for DraftKings, saying the dip in price represented a good opportunity. The stock quickly generated buzz on the Reddit forum wallstreetbets, which became famous for pumping GameStop.

The sports betting operator brought in $312 million in Q1 earnings, up 253% year-over-year from $89 million.

Editor’s note: Front Office Sports is a media partner with DraftKings.