The wheels are spinning faster and faster for the connected stationary bike maker.

Peloton issued convertible notes with the intention of raising up to $1 billion, and successfully secured the entire amount.

The company was originally looking for $600 million, but widespread interest drove the amount higher. It will pay 0% interest on the notes until they mature in Feb. 2026.

Convertible notes are a type of short-term debt, combining the security of corporate bonds with the growth potential of equity. Investors can receive a modest return at a scheduled date, similar to bonds, or convert their investment into company shares. They’ve become a popular fundraising method.

• The convertible note market topped $100 billion in 2020.
• Square, Uber, Tesla, and the DISH Network are among the companies that have issued convertible bonds over $1 billion in the past two years.

Peloton will use some of the new funds to invest further in manufacturing and logistics, and to reach more customers. It previously bought fitness equipment giant Precor for $420 million, and committed $100 million to improving much-maligned delays in its supply chain.

With the pandemic keeping people away from gyms, Peloton appears to be seizing the opportunity to grow its market share. Apple is making a similar push with its Fitness+ service.

F.C. Barcelona, the first and only sports team to pass $1 billion in annual revenue, may be in the midst of a financial crisis.

The pandemic is in part to blame for looming costs, but the team also has the highest salary bill in Europe. Its roster includes soccer star Lionel Messi, who signed a contract for almost $675 million. His deal expires in June and he’s reportedly looking to switch teams.

“There are only a few clubs in the world capable of meeting Messi’s salary and his ambition, and none were eager to pay a premium for a player they might be able to get for free this summer,” said Jordi Moix, Barcelona’s former vice president for economic affairs.

Barcelona recorded a loss of $117 million in 2020, and expects the total amount lost due to the pandemic to top $600 million. The club revised its forecast revenue for next year down $250 million.

“Clearly a lack of leadership, the leadership of the board being afraid to say no, is one of the key things that needs to be avoided going forward,” said Victor Font, a candidate for the club’s next president.

Barcelona’s previous president Josep Maria Bartomeu and the club’s entire board of directors resigned in October 2020. Bartomeu had been the subject of mounting criticism for his handling of the club.

The way sports fans watch live games continues to evolve. 

This week, the Golden State Warriors launched a second-screen experience called Game Mode in its team app, which allows fans to interact with one another while watching live games.

The feature’s development by Accenture and audience engagement platform LiveLike is part of a growing trend to offer supplemental content to live viewing experiences. With limited fan attendance still a factor across sports, the second-screen experience is in the spotlight.

Last year, Facebook revealed a second-screen experience app named Venue. The app launched as a companion to NASCAR’s Food City 500 race, and bills itself as a more curated experience with athletes, journalists and social personalities providing live commentary. 

Major League Baseball’s live broadcasts are supplemented with apps like iScore Baseball and MiLB First Pitch; NFL GameDay in True View offers a similar experience for football.

Of course, it remains to be seen if any of these services will gain mainstream traction. Twitter — which reported its second-ever billion-dollar quarter last week — remains a clear favorite for the second screen of many sports fans.

This past Sunday’s final match of the Call of Duty League’s opening weekend of play was the most-watched regular season game in the league’s history.

When traditional live sports viewership took a hit last year, CDL viewership was up 23% year-over-year for its regular season and over 100% for the championship event, Activision Blizzard told Front Office Sports.

It’s the second year in CDL’s transition from live stadium competitions to remote online events.

“We want to see esports grow as an industry and we’re continuing to see more and more personnel, talent, franchise owners and investors coming in from traditional spaces into our space,” said Head of Leagues for Activision Blizzard and Call of Duty Commissioner Johanna Faries.

CDL’s success in its inaugural season placed it in a rare position among esports leagues. It had a 27% share of live esports on YouTube in the first quarter of 2020; that grew to 44% by Q3.

“I think that bodes well for how quickly we’re going to see growth here — not just for CDL and the Overwatch League, but again for the entire industry,” said Faries.