The shoe resale industry gets a big investment boost, COVID-19 continues to prove a difficult hurdle for sports, video games keep up a red-hot 2020, and Peloton pedals past false Amazon competitor in a crowded connected fitness industry.
That’s Shoe Biz
Ron Chenoy-USA TODAY Sports
With a new $1.75 billion valuation, Goat Group is living up to its name. The sneaker resale platform raised $100 million in Series E funding, more than tripling its previous $550 million valuation in the process.
The new round of funding — from D1 Capital Partners — will be used to launch new apparel and product categories, as well as back efforts to get more brands to sell products directly on the platform. Goat Group’s previous investors include Foot Locker, Accel, Index and Upfront Ventures.
Online sneaker sales are taking off. Goat Group’s chief competitor, StockX, reached a $1 billion valuation last year. Global resale market could reach $30 billion by 2030
Global sneaker market: $100 billion
Global resale market: $6 billion
U.S. sneaker market: $21 billion
U.S. resale market: $2 billion
Sneaker Retailer Digital Sales Growth:
Nike: 82% year-over-year online growth in its fiscal first quarter
Adidas: 93% e-commerce growth in its second quarter
James Guillory-USA TODAY Sports
Just 10 days into the season, the ACC has already seen four football games impacted by the COVID-19 pandemic. Notre Dame, the conference’s special guest, is the latest to be impacted with its Saturday game likely a no-go after seven positive tests.
Virginia Tech has yet to play a game this season after dealing with several outbreaks on the team. The season is likely to finish with teams in the conference playing a varying number of games, which has unknown implications on the postseason.
While sports in the U.S. are underway, the Notre Dame situation is just the latest high-profile road bump. By next year, the U.S. could provide the most significant challenge to making sure the postponed Tokyo Olympics go off without a hitch.
The U.S. currently has the most confirmed COVID-19 cases and deaths in the world and just 15 countries welcome those traveling from the states without special permission. That could put an added pressure on officials looking to mitigate the spread of the coronavirus in Japan next summer as they consider various options.
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Legends of the Fall Guys
Fall Guys has continued to rock the video game industry as it was the top-selling PC game in August, as well the No. 2 gaming category on Twitch. Overall, the video game industry has maintained its torrid 2020 pace spurred by the pandemic.
Digital gaming global revenue reached $82.8 billion through August, a 13% increase year-over-year, according to Nielsen. Twitch is back on the upswing after a June and July dip following the height of stay-at-home orders.
In the U.S., video game sales jumped 37% year-over-year in August. Game sales in the U.S. are up 22% through the first eight months of the year.
Video Game Fast Facts:
August global digital games revenue: $10.8 billion, 16% year-over-year growth
August U.S. video game revenue: $3.3 billion
Premium sports games global revenue: $321 million
Twitch August hours watched: 1.47 billion, 57% year-over-year growth
Fall Guys August hours watched: 106 million
Michael Sears-Milwaukee Journal Sentinel via Imagn
Amazon appeared to be stepping into the connected fitness industry on Tuesday as reports of a $500 “Prime Bike” spread across the internet. It even caused Peloton shares to drop more than 4%, just a week after Apple also announced its entry into at-home workouts.
Initial reactions thought a connected bike from Amazon could be a major challenger to Peloton — especially with a price difference of nearly $1,500. However, the e-commerce giant denied any connection to the product released by Echelon, scrubbing mentions of the alleged partnership from the product page and listing the bike as “unavailable.”
While Apple Fitness+ will still be a major tech company challenger, Peloton stocks were back up yesterday. Peloton will look to build on its fourth quarter subscriber growth of 113% — it has added more affordable products to stay competitive as players continue to enter the connected fitness space.
Don’t Stop The Fitness Funding:
Freeletics, an AI-powered fitness coaching app, has joined this year’s hunt for cash by connected fitness start-ups. The app closed on a $25 million Series B round after a $45 million Series A in 2018.
Other fitness start-ups to receive funding during the pandemic include Zwift ($450 million) and Tonal ($110 million). Lululemon acquired fitness start-up Mirror for $500 million this summer.
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Latest On FOS
President Donald Trump publicly took interest in the Big Ten’s restart as part of his presidential re-election strategy to return the nation to normal before election day, according to political scientists who spoke with FOS. For local politicians, it was an appeal to voters and a way to avert a local financial crisis.
“I understand that there’s a huge economic impact on not having fans, but at the same time … is that a risk worth taking?” noted virologist Dr. Angela Rasmussen said on the danger of NFL teams welcoming back fans.
MLB is making the independent Atlantic League of Professional Baseball its first “partner league.” The ALPB will test new rules and technology MLB may want to introduce at the major league level.
Less than two months after its deal with the NBA, Hyperice announced it would become the UFC’s official recovery technology partner. CEO Jim Huether told FOS these deals are a major way to differentiate the athletic recovery company.
Question Of The Day
Have you ordered food for delivery using an app in the last 30 days?
27% of respondents have purchased something from Nike online this year; 16% have purchased Nike products in-person this year; 18% have purchased both in-person and online; and 39% have not purchased Nike products this year.