July 14, 2021

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In the age of 4K TVs and streaming, it’s hard to believe that the very first color telecast of a sporting event was exactly 70 years ago today — a horse race on CBS.

Peloton Pays Artists at Better Rates Than Top Streaming Services

Peloton/Design: Alex Brooks

On a per stream basis, Peloton blasting your favorite song during a workout supports the artist who made it more than clicking play on the top music streaming services.

Peloton pays musicians $0.03 per stream. Neither Spotify nor Apple Music pays even one full cent, respectively doling out $0.0035 and $0.0068 per stream.

Slate, citing Trichordist’s most recent “Streaming Price Bible,” reported that while Peloton pays musicians more for songs, it accounts for less than 1% of global streams and 1.28% of industry revenue.

As Peloton continues to grow, it repeatedly prioritizes music through collaborations with artists and music-driven entities.

  • It partnered with Beyoncé last year to create themed workout experiences.
  • Peloton presented a three-day virtual music festival at the beginning of July with acts ranging from Nas to Depeche Mode.
  • The company partnered with Verzuz, a music competition venture, in March.

It hasn’t always been a smooth ride. In 2019, Peloton faced lawsuits for over $300 million in damages for the use of unlicensed songs in classes. The company spent at least $31.1 million to settle, per SEC filings.

Peloton’s payments for music royalties and streaming delivery increased by $81.5 million year-over-year for the nine months ending March 31, 2021.

NFL’s Richest Team Owner Backs Private Equity Firm

Jeremy Brevard-USA TODAY Sports/Design: Alex Brooks

David Tepper, owner of the Carolina Panthers, is the founding investor of Andalusian Private Capital, a firm with roughly $800 million in assets that plans to invest in the media and sports sectors, among others. 

Tepper currently has the highest net worth of any NFL team owner: $14.5 billion.

  • In 2019, he agreed to pay $325 million to bring an MLS franchise to Charlotte. Charlotte FC is expected to begin play next year at Bank of America Stadium.
  • He was also part of a $1.78 billion financing round for “Fortnite” creator Epic Games.

Nearly 30 years ago, Tepper founded Appaloosa Management, an American hedge fund specializing in distressed debt. A number of other billionaire sports team owners share his interest in private equity.

New York Mets owner Steve Cohen created his first private-markets fund, Point72 Hyperscale, in 2020. Tony Ressler, owner of the Atlanta Hawks and minority owner of the Milwaukee Brewers, co-founded Apollo Management in 1990 and Ares Management in 1997.

For opportunities beyond direct investments, Andalusian created an affiliate called Andalusian Sports Partners that houses advisory and management services for “certain sports-focused investment funds.”

SPONSORED BY FACEBOOK AND INSTAGRAM

NIL Changes Everything for College Athletes

Now that NCAA athletes can earn money from their name, image, and likeness, their influence — and earning potential — will extend from the field to their social feeds. 

It’s also an opportunity for universities, as prospective NCAA athletes may be enticed by personal brand assistance and marketing opportunities that universities can provide.

Front Office Sports, together with Facebook and Instagram, have created Athlete Marketing Essentials: NIL Certification — a six-lesson online course that breaks down the vast array of tools and services available to help athletes grow their audience, distribute content, and generate meaningful revenue. Topics include athlete safety, building blocks for personal branding, content creation, sponsorships, and monetization.

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Bally’s Adds Beach Volleyball Tour to Acquisitions

Robert Hanashiro-USA TODAY Sports/Design: Alex Brooks

Bally’s acquired the Association of Volleyball Professionals on Tuesday, continuing its unbridled expansion.

The conglomerate has been buying up all types of companies lately.

  • It purchased SportCaller in February and plans to use the free-to-play sports game provider to launch its own games. 
  • That same month, Bally’s acquired Bet.Works for $125 million. The sports betting platform operates in Colorado, Iowa, Indiana, and New Jersey. 
  • It agreed to acquire online gaming operator Gamesys in March for $2.7 billion.

Over the past year, Bally’s has also been named an official sports betting partner of the NBA, MLB, and the NHL, signing multi-year deals with the three leagues. 

The AVP is the longest-running and most famous beach volleyball tour in the U.S. but has experienced ups and downs. The organization was bought out of bankruptcy by Donald Sun for $2 million in 2012 after annual revenue reached nearly $25 million in 2008. 

Bally’s will work with the AVP to help gamify beach volleyball for its sports betting business, as well as drive new viewers to its platforms.

Bally’s inked a 10-year, $85 million deal with Sinclair Broadcast Group last November and rebranded 21 regional Fox Sports channels under the Bally’s name. 

No Fans at Olympics Could Cost Reinsurers $400M

IOC/Design: Alex Brooks

The Tokyo Olympics won’t have spectators and that could cost reinsurers up to $400 million in payouts for ticket and hospitality refunds, according to Fitch Ratings. 

After a COVID-19 outbreak and a fourth state-of-emergency declaration, the Japanese Olympic Committee said that no fans, foreign or domestic, will be allowed to attend. 

The total insurance coverage for the Games that begin on July 23 is estimated to be around $2.5 billion. 

  • Broadcasters have taken out $800 million of coverage.
  • The International Olympic Committee and local host committee took out $1.4 billion.
  • Other parties, such as individual teams and sponsors, took out another $300 million. 

Approximately 600,000 tickets were sold to international fans, with around 68,000 American anticipated. Total ticket revenue was expected to reach $815 million.

There has been an abundance of refund requests — some reaching more than $10,000 — from fans who purchased tickets years ago.

CoSport, the exclusive rights holder for Olympic ticket sales in the U.S., will not refund a 20% handling fee for American fans, adding to the madness.

SPONSORED BY CLIO SPORTS

Go The Distance. Final Deadline: July 23rd

Game on! Enter your best sports marketing work in the 2021 Clio Sports Awards by the final deadline: Friday, July 23rd. 

With mediums and categories ranging from Social Media; Partnerships, Sponsorships & Collaborations; Film; Digital/Mobile; Innovation; Design; Integrated Campaign and more, Clio Sports celebrates excellence in the world of sports marketing.

Need some inspiration from your competition? Check out the highlight reel featuring Gold and Grand winners from last year.

What’s in it for your team? Visit our Why Enter page, or explore the Resource Center for full details on how to enter.

Conversation Starters

Conversation Starters

  • Former NFL quarterback and USC star Mark Sanchez has been hired by Fox Sports as a game analyst alongside Kevin Kugler.
  • DraftKings and FanDuel have put together $20 million in a proposal aimed at legalizing sports betting in Florida.
  • World 1 League, backed by Mark Cuban and Jim Swartz, launched Tuesday in a search for the greatest athletes in “Olympic-style sports via social media challenges and live stadium events.” The league was founded by nine Olympians.
  • Will Louis Oosthuizen finally win another major at this year’s British Open? He captured the 2010 Open but has only recorded six runner-up finishes in majors since then. Read more stories like this in Sports Section, a free, daily newsletter. Click here to subscribe.

Question of the Day

Does anyone in your household participate in a youth or adult sports league?

 Yes   No 

Tuesday’s Answer
62% of respondents are health conscious in their snack choices.

Events Video Games Shop
Written by Abigail Gentrup, Justin Byers

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