Pro Weekly Update (5/13/2022) - Front Office Sports

May 13, 2022

Happy Friday!

Pro is back this week with an updated Deal Tracker and Scouting Report on the impact that short-form video platforms are having on the sports industry. In this report, we look at current sports properties levering short-form video and how the world’s largest social media platforms are increasingly investing in building out those video products. If you have any comments, please reach out to me at liam@fos.company.

Sports Executives Taking Short-Form Video Seriously

TikTok/Design: John Regula

Short-form video has increasingly become the main draw for the global 4.6 billion global social media users. The virality of TiKTok has enabled companies, brands, and individuals to build massive followings resulting in greater distribution.

Currently, marketers and executives are paying close attention to the continued evolution of TikTok’s various features including shopping and how e-commerce can benefit teams, leagues and sports personalities. The creator economy and influencer marketing are areas for increasing growth in sports.

Some sports entities have already tapped into the TikTok ecosystem specifically in order to engage in collaborations and crossover brand promotion. The trend has resulted in social-forward brands that leverage the creativity inherent in these short-form videos. Examples include:

The Washington Commanders hired 19-year-old internet personality Katie Feeney (6.8M TikTok followers) as their lead social media correspondent.
Bleacher Report hosted 10 TikTok influencers ahead of the recent New York Rangers-Pittsburgh Penguins playoff game to generate content for the B/R Open Ice hockey vertical.
The Indianapolis Colts tapped TikTok comedy duo the Cheeky Boys to announce the team’s third-round pick in last month’s NFL draft.
The Savannah Bananas of the Coastal Plains League have heavily leaned into TikTok. The baseball team has amassed more than 2.4 million followers in two years — a number greater than dozens of major U.S. pro sports teams. The team boasts a staff of three videographers who plan 20-30 video content pieces per game — all maximized for shareability.

From a growth perspective, TikTok has been the top platform for short-form video distribution. In just four short years, the company has become one of the most popular apps in the world with over 1 billion active users.

TikTok’s ad revenue is expected to triple this year to $11.64 billion from $3.88 billion in 2021, surpassing Twitter and Snapchat combined at $5.58 billion and $4.86 billion, respectively.

While TikTok leads the pack, Instagram has also gotten into short-form video. In 2020, the company introduced reels, and its new video content has proven to be 22% more engaging than traditional video content. Additionally, on Meta’s most recent earnings call, the company indicated that reels already make up more than 20% of time spent on the app.

The social platform has also become a home for sports content. According to a Morning Consult survey, roughly half of TikTok users (49%) said they would be very interested in following sports game highlights on social media, indicating that users are steadily shifting their sports consumption habits to the platform.

Want to learn more? Check out the full Scouting Report here.

ICYMI: Last week, we published another Heat Check on cloud infrastructure and the impact on sports. You can access that report and our other research at Pr o HQ

Deal Tracker

This week’s Pro Deal Tracker highlights:

Team Liquid, operator of an online esports community platform that provides gaming news content to its users, raised $35 million in venture funding in a deal led by Ares Management.
Stream Layer, developer of a video engagement operating platform designed to reimagine the media experience through interactive viewing experiences, raised $8 million in venture funding from Las Vegas Sands & Drive by DraftKings.
Highlight, developer of a Web3 community membership platform, raised $11 million of seed funding in a deal led by Haun Ventures.
Ness, developer of blockchain games in a mythological universe, raised $9 million of seed funding from undisclosed investors.
Haegin, operator of a game development company intended to offer casual mobile games for everyone, raised $78 million in Series B venture funding from Kakao Games, Netmarble Games, and VNG.

Try out the full Deal Tracker.

Written by Liam Killingstad