NBA commissioner Adam Silver said the league posted a record year for revenue with the 2021-22 season, surpassing $10 billion for the first time. 

The league, which is about to enter its 76th season, reported the results following two shortened seasons hampered by limited fan attendance amid pandemic-related restrictions. 

• For the 2018-19 campaign, revenue for the NBA reached $8.8 billion.
• A season later, the league generated $8.3 billion in revenue.
• The 2020-21 season saw roughly a 33% drop in revenue compared to the year prior.
• That season, sponsorships brought in a record $1.46 billion in revenue. 

The NBA, like many other professional sports leagues, has benefited from expensive media rights deals — its coveted rights make up roughly $2.6 billion of the league’s annual revenue. 

Changes to be Made 

On Tuesday, the NBA board of governors voted to make the highly competitive playoff play-in tournament permanent. The tournament’s inclusion was previously approved on a year-to-year basis, but its growing popularity with teams and fans pushed the NBA to keep it around. 

Silver is also advocating lowering the minimum NBA Draft eligibility age from 19 to 18. The NBA’s minimum age prevents high school players from being selected.

As a result, prospects have taken different routes to reach the NBA, including opportunities overseas and the NBA’s G League Ignite team — which allows young players to be paid.

MLB will begin allowing teams to sell space on their uniform sleeves for the first time in the 2023 season — and the New York Yankees are ready to strike a deal.

The Bronx Bombers have recruited Legends to manage the search. The Yankees, who own a stake in Legends, are reportedly looking to sign a multiyear deal. 

It’s unclear how much the 27-time World Series champs are looking for, but it won’t be cheap. Forbes last valued the Yankees at $6 billion — the second-most valuable franchise in the world and a big hike from MLB’s average of $2.07 billion. On top of that, the team hasn’t sold the naming rights to the iconic Yankee Stadium.

“I would characterize the investment as a top-tier naming rights-type investment,” Chris Hibbs, president of Legends’ Global Partnerships division, said.

MLB could reportedly generate between $350 million to $400 million per year through the teams’ jersey patch deals — averaging $13.3 million per franchise. In 2021, MLB brought in $1.13 billion in corporate sponsorships.

Legendary Service

The Yankees and the Dallas Cowboys founded Legends in 2008 and still collectively own more than 40% of equity.

• The company’s initial focus was on concession operations and retail merchandising within their stadiums. 
• Since expanding to include hospitality and sponsorships, the company reached a $1.3 billion valuation after investment firm Sixth Street acquired a majority stake last year.

Legends launched its Global Partnerships division in February 2020 and lists SoFi Stadium, Allegiant Stadium, and the University of Notre Dame among its clients.

Steve Young is widely known for winning three Super Bowls with the San Francisco 49ers, but the NFL Hall of Fame quarterback has had just as much success in the boardroom.

On top of providing business counseling for current and former players, Young and longtime business partner Rich Lawson have raised $6.8 billion across four funds through HGGC LLC, which has completed $50 billion in deals. The firm has commitments from over 170 Limited Partners across 25 countries.

HGGC focuses on middle-market companies in four sectors: business and tech-enabled services, consumer, financial services, and software and technology.

HGGC’s Fund IV completed its $2.54 billion raise in June and has already invested in nine companies.

• In November 2021, HGGC and Snapdragon committed a $240 million growth investment to Fullscript, a platform powering “the expansion and accessibility of integrated medicine.
• The same month, HGGC completed a majority investment in PF Atlantic, a top-15 Planet Fitness franchisee. PF Atlantic rebranded to Grand Fitness Partners as part of the investment.
• In April, HGGC formed Aspire Holdings to invest up to $300 million in RIAs.

Since launching in 2007, the company says it has completed more than 500 investments, add-on acquisitions, recapitalizations, and liquidity events.

Looking Ahead

Young, who had a reported $200 million net worth last year, wants to pay his success forward. This year, Young and Lawson spread equity in HGGC in preparation for shared ownership.

Riot Games has found the owner of an affiliate esports team guilty of violating company policy relating to harassment, profanity, and hate speech. 

Andy Dinh, the owner of Team SoloMid — the most valuable esports company in the world at $540 million — is now facing repercussions for creating a toxic work environment. 

• The 30-year-old, who has led TSM since 2009, has been placed on a two-year probation.
• Owned by Chinese conglomerate Tencent, Riot Games has also fined TSM $75,000.
• Proceeds from the fine will be donated to a mental health or anti-bullying charity. 

Riot Games’ guilty verdict ends a second investigation into Dinh and his behavior. 

In January, following a report of “mental abuse,” TSM launched its own probe. But in May, TSM’s investigation concluded that there was “no unlawful conduct” by Dinh.

Emerging Companies 

Riot Games and TSM have a relationship that stems from the root of competitive gaming. 

TSM operates esports teams for Riot Games-produced titles “League of Legends” and “Valorant,” while Riot Games operates their respective esports leagues. 

As one of the most popular esports companies in the world, TSM has garnered the attention of emerging companies in tech. 

In June 2021, TSM secured a $210 million deal with cryptocurrency exchange FTX — rebranding to TSM FTX. In January, FTX raised $400 million in a Series C funding round, valuing the company at $32 billion.

However, that value could now be affected by the recent crypto crash.