Adam Silver ramps up December start date talks, Fox Corp. revenue rises 2% despite light football slate, Lululemon publishes ‘impact agenda,’ and Nike plans 700 layoffs.
NBA Faces $1B Decision
Kim Klement-USA TODAY Sports
The NBA could lose $500 million to $1 billion in revenue if it does not begin a 72-game schedule in December, increasing urgency around discussions with the National Basketball Players Association. League revenue dropped 10% for the 2019-20 season due to the pandemic.
Next season, the NBA could lose up to $4 billion if fans are limited at games. To cushion the losses, the league has explored other ways it could increase team revenues such as expanding guidelines on categories like sports betting, hard alcohol and casinos. Those combined categories could provide up to $100 million.
2019-2020 Lost NBA Revenues:
$8.3 billion in total season revenue, a drop of $1.5 billion, or 10%.
$800 million in lost gate receipts.
$400 million in lost sponsorship and merchandise sales.
$200 million “net negative impact” from tensions with China.
Fox’s Disney Bump
Ron Chenoy-USA TODAY Sports
Fox Corp. revenue increased to $2.72 billion in its most recent quarter, up 2% year-over-year. A $462 millionpayment from Disney for a previous sale of cable and studio assets helped boost income to $1.11 billion, up from $499 million the same quarter last year.
A thinner slate of NFL and college football games, however, contributed to Fox’s broadcast network ad revenue falling 15% year-over-year. Renewed ad spending and a now-full sports schedule are expected to reverse the trend in the upcoming quarter.
CEO Lachlan Murdoch said Fox has an option to buy a piece of FanDuel, which is owned by Flutter Entertainment. Fox and Flutter are partners in the Fox Bet sports betting platform.
NBA Skills Coach Drew Hanlen on Building Pure Sweat Basketball’s Brand
Renowned NBA skills coach Drew Hanlen didn’t build his brand with bad social media content.
Hanlen puts his trust in Air, a cloud storage and collaboration tool, to easily access hundreds of hours of practice footage with his clients to post to his social feeds and grow his business.
Hanlen recently took time to chat with FOS about building the brand of Pure Sweat Basketball and how he gets results for his clients.
Saul Young-News Sentinel via Imagn
Lululemon plans to invest $75 million into “equitable wellbeing programs” by 2025. The investment is part of the company’s first “impact agenda,” which aims to make it a more sustainable business and minimize its environmental impact.
Along with the investment, Lululemon will also expand to full gender pay equity and make 100% of its products with sustainable materials by 2030.
The company’s revenues were up 2% year-over-year to $902.9 million as consumers have stocked up on workout apparel and yoga accessories. Lululemon is also looking to the connected fitness space for growth following its acquisition of Mirror for $500 million in June. Its shares are up nearly 40% year-to-date.
Nike Layoffs Coming
Nike is planning on eliminating 700 jobs at its Oregon headquarters by early January as part of a broader restructuring plan. Previously, the company had estimated that it would be cutting roughly 500 roles.
CEO John Donahoe announced in July that the company would be spending up to $250 million eliminating jobs worldwide as it refocused its business around selling directly to consumers through its digital and online platforms. Nike said it had 75,400 employees in May, down nearly 2,000 from a year earlier.
Nike had revenues of $10.6 billion in the first quarter of its 2021 fiscal year, down roughly 1% year-over-year. That included an 82% increase in digital sales during the quarter. Nike shares are up 21.9% this year.
How Today’s Brands Are Maximizing Sponsorship ROI With Their Own Analytics
Join us for a webinar on Thursday, November 5th at 1 PM ET as representatives from Dell Technologies, Stanley Black & Decker, GumGum Sports and FOS CEO Adam White discuss:
How Dell and Stanley Black & Decker are approaching sponsorship analysis today
Examples of how they are using their own data to drive business decisions and partnership discussions
Best practices for how brands can utilize data to optimize sponsorship performance
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