July 21, 2021

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Giannis dropped 50 points and led the Milwaukee Bucks to their first title in 50 years. That $228 million supermax extension was worth every penny.

Netflix Lags in Subscriber Growth, Looks to Gaming

Netflix/Design: Alex Brooks

Netflix has become the industry standard in streaming, but its second-quarter earnings saw the giant slow down to catch its breath. 

The California-based company added 1.5 million net new subscribers in Q2 — its lowest quarterly showing to date.

The pandemic may be partly to blame for shutting down production on many of its original shows, and the rise of services like Disney+ and HBO Max has cut into its market dominance.

  • Netflix posted $7.34 billion in Q2 revenue, a 19.4% year-over-year increase.
  • The company said it expects to add 3.5 million subscribers in Q3, down from initial estimates of 5.5 million. 
  • Shares fell 4% in after-hours trading.

In an effort to find new subscribers, Netflix is looking to a new source: gamers. The company wrote in its letter to shareholders, “We view gaming as another new content category for us, similar to our expansion into original films, animation, and unscripted TV.”

The company added that games would be included in members’ subscriptions at no extra cost, and that it would initially focus on mobile games. It plans to publish its first games in 2022.

Broncos Sale Could Fetch Record Price

Isaiah J. Downing-USA TODAY Sports/Design: Alex Brooks

It’s yet to be determined who’ll end up winning the current struggle for ownership of the Denver Broncos, but experts believe the team could fetch the highest price ever for a pro sports franchise.

The three-time Super Bowl champions may attract offers of well over $2.5 billion, said sources. That would top three recent purchases:

  • Joe Tsai paid a record $2.35 billion for the Brooklyn Nets in 2019.
  • David Tepper purchased the Carolina Panthers for $2.28 billion in 2018.
  • Tilman Fertitta bought the Houston Rockets for $2.2 billion in 2017.

At a valuation of $3.2 billion apiece, the Broncos are tied with the Boston Celtics for No. 25 on Forbes’ 2021 list of the world’s most valuable sports teams. Franchise value is up 65% over the last five years.

The price tag also narrows down the list of potential Broncos buyers, who range from Amazon’s Jeff Bezos (worth over $200 billion) to Peyton Manning (who earned $248.7 million in salary alone during his 18-year career). 

As Denver’s favorite son, Manning could easily put together an investment consortium, said consultant Lee Berke, who’s advised more than 50 pro teams.

A lawsuit filed by late owner Pat Bowlen’s family against the trust controlling the team was just dismissed in court. That increases the possibility of an outside sale. Bowlen originally bought the Broncos for $78 million in 1984. 

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Notre Dame’s Streaming Service Shows Potential

Matt Cashore-USA TODAY Sports/Design: Alex Brooks

Notre Dame’s brand is one of the strongest in sports, and its new venture — Fighting Irish TV — builds upon that by offering fans more content to binge.

The school’s streaming service is available on Apple TV, Google Play, and Amazon and includes everything from live games and interviews to archived games and highlights.

  • Notre Dame’s pro day generated more than 58,000 minutes of viewed content in one day on the platform.
  • The school is now considering a subscription model, though it’s not clear how much they would charge.

Because the Fighting Irish have no conference affiliation, they were able to sell broadcasting rights to NBC in 1991.

NBC’s most recent extension with Notre Dame was signed in 2013, began in 2016, and runs through the 2025 season. It’s worth a reported $15 million annually.

However, the school still makes sacrifices to stay independent. “There is no financial advantage to Notre Dame being independent in terms of operations,” Notre Dame athletics director Jack Swarbrick told The Athletic in 2019. “It costs us money. We would be much better off all-in with the ACC or any Power 5 conference.”

Andrew Focil, founder of WMT — the web developer Fighting Irish TV launched with — thinks other teams can get in on the OTT action, adding that conversations are already in the works.

MLB’s Sticky Stuff Crackdown Could Cost Some Pitchers Millions

Vincent Carchietta-USA TODAY Sports/Design: Alex Brooks

MLB’s new rules against pitchers using foreign substances — commonly referred to as “sticky stuff” — are already having far-reaching consequences and could affect future earnings for numerous players.

With offense at record lows, MLB instituted regular checks on pitchers for sticky substances, with the threat of a 10-game suspension should any be found. Seattle Mariners pitcher Hector Santiago received the first such suspension in June. 

The upcoming free agent class has a host of pitchers who may see their market value defined by their results since the crackdown.

  • The Washington Nationals’ Max Scherzer, who has indicated that he used to use sticky stuff, is finishing up a seven-year, $210 million contract.
  • San Francisco Giants’ Kevin Gausman has been one of the top pitchers this season, and will be a free agent at season’s end. He is making $18.9 million. 
  • Others — such as the Mariners’ Kendall Graveman, who has been less effective since the crackdown, and the Boston Red Sox’s Garrett Richards, who has seen a major drop in fastball spin since the crackdown — could see potential earnings fluctuate over the coming months.

Not all soon-to-be free agents have been affected adversely, however. Chicago’s Lance Lynn, who is making $10 million this season and scheduled to become a free agent at season’s end, agreed to terms on a two-year, $38-million contract extension with the White Sox on July 17.

As for MLB, the league is likely happy with the results: strikeouts are down and offense is up since the crackdown took effect on June 3.

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Conversation Starters

Conversation Starters

  • QB Aaron Rodgers reportedly declined a two-year extension offer from the Green Bay Packers that would have made him the highest-paid player in the NFL. 
  • WWE SmackDown viewership rose nearly 9.74% to 2.3 million viewers, compared to the average 2.1 million it saw during the pandemic.
  • MLB superstar Shohei Ohtani signed an exclusive partnership deal with Fanatics that makes the company the lone distributor of his merchandise and memorabilia.
  • Data-driven sports marketers are utilizing these 5 tactics to get more transparency, maximize benefits from partnerships, identify new opportunities, and grow their budgets. Find out all in this new guide from Relo Metrics.*

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Question of the Day

What's the most you've spent on a bottle of liquor?

 Less than $50   $50-$100   $100+   N/A 

Tuesday’s Answer
29% of respondents work within their company’s IT department.

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