March 25, 2021

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The real question at this point: who isn’t getting an epic media rights deal? These leagues are cashing in.

NBA Seeks $75B for New Broadcast Rights

Kyle Terada-USA TODAY Sports/Design: Alex Brooks

After the NFL sealed historic 11-year media rights deals for more than $100 billion, the NBA is looking to make headlines for similar reasons.

CNBC reported that the league is aiming for a $75 billion multiyear rights package with Turner Sports and ESPN — $51 billion more than its current deals with the networks’ respective parent companies, AT&T-owned WarnerMedia and Disney.

The deals would pay about $8 billion per year over nine years compared to the current $2.6 billion-per-year contracts, which run through the 2024-25 season. The NBA also has a $1.5 billion streaming deal with Tencent.

The $75 billion goal is not out of reach. For each year of its new NFL rights package, Disney alone will pay the league $2.7 billion — more than the NBA receives annually from all its broadcast partners combined. 

The asking price stems from specific metrics like viewer hours, which help determine the worth of broadcasting rights. That’s good for the NBA, which has seen increased ratings this season.

The last deal between the NBA, Turner Sports, and ESPN took effect in 2016 for nine years at $24 billion, an 180% increase from the prior 2007 agreement.

“The partnership with the NBA is incredibly important to us, and we’re looking forward to getting back at the table with Adam [Silver] and his team when the time is right,” said ESPN president Jimmy Pitaro.

CBS Wins Rights to Serie A in U.S.

Juventus/Design: Alex Brooks

Thanks to a new media rights deal between CBS and Serie A, U.S. soccer fans will get to watch a lot more of Cristiano Ronaldo. The broadcast rights run for three years at $75 million per year, per Associated Press.

“In a strategic area like the U.S. we have increased by more than 30% the value of our rights with a top partner in CBS,” said Serie A CEO Luigi De Siervo.

CBS also owns media rights to the UEFA Champions League, the National Women’s Soccer League, and Argentina’s Liga Profesional de Futbol.

ESPN was the previous owner of Serie A’s U.S. media rights, which it purchased through IMG. In 2017, IMG bought all of the league’s international rights for nearly $450 million per season, then sold them off country by country.

Under the new contract, the league will try to sell rights to each country directly.

Serie A is an Italian soccer league, but five clubs have North American owners: AC Milan, Roma, Fiorentina, Parma, and Bologna. The presence of North American ownership “played a role” in the new CBS deal, per De Siervo.

Streaming service DAZN is in the lead for Serie A’s domestic media rights in Italy with an offer of roughly $1 billion per season. If not assigned by Monday, the offer will expire, triggering a new auction process.

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Living Her Best Life Outside the Octagon

The first woman to hold titles in two weight classes simultaneously, Amanda Nunes is currently on a six-and-a-half-year win streak. Her image inside and outside of the octagon continues to grow and so has her family, as she, and wife Nina Ansaroff welcomed a daughter last fall.

Amanda is one of many athlete investors in Hyperice, the industry leader in recovery technology. In an exclusive Q&A series, Invest in Yourself, she, along with other superstars share how they are investing in themselves and taking their talent and fortune to the next level. 

Amanda shares her unique approach to recovery, the importance of family and how she’s building a career beyond the MMA.

ByteDance Ups Stakes in Battle with Tencent

ByteDance/Design: Alex Brooks

ByteDance has agreed to acquire mobile game developer and publisher Moonton Technology through its flagship gaming studio, Nuverse. The deal values Moonton at $4 billion, per Reuters.

The acquisition allows ByteDance, the owner of TikTok, to more directly compete with Tencent, another Chinese conglomerate, and a global leader in mobile gaming, among other industries. Tencent made a bid to acquire Moonton, but ByteDance matched it last week.

“Through cross-team collaboration and drawing on lessons and insights from its own rapid growth, Moonton provides the strategic support needed to accelerate Nuverse’s global gaming offerings,” ByteDance said.

Tencent reported Q4 2020 revenue of $20.5 billion, a 26% uptick compared to the same period last year. Full-year revenue for FY2020 reached $73.8 billion, up 28% from the year before.

But ByteDance isn’t far behind. The company is on course to generate $27 billion in advertising revenue this year in China. ByteDance also doubled its sales in 2020 to $35 billion despite threats to ban TikTok in the U.S. 

TikTok has more than 100 million users in the U.S and 700 million total monthly active users worldwide. ByteDance has also acquired gaming studios Ohayoo and PixDance, and launched Pixmain, a game publishing arm.

“Be prepared for a long war between Tencent and ByteDance,” Dr. Serkan Toto, CEO and founder of Tokyo-based Kantan Games, told CNBC.

NFL Could Fetch $250M for Its Data

Robert Deutsch-USA TODAY Sports/Design: Alex Brooks

The NFL locked in $113 billion in TV deals through the 2033 season but isn’t done licensing its intellectual property. The league is reportedly in talks to rake in hundreds of millions more annually in data contracts.

With more people betting on sports, data rights have taken on new value, and the NFL wants to cash in. The league could seek up to $250 million per year in its next data distribution contract, per CNBC. 

The NFL currently partners with Sportradar, which processes game and player data provided by the league before selling it to sportsbooks and other companies. Sportradar is in talks to renew its current deal.

Still in its early stages, legal sports betting in the U.S. saw a total of $21.5 billion wagered in 2020 and $1.5 billion in revenue, despite only 20 states having legalized and opened up sports betting.

Sportsbooks have scrambled to associate themselves with NFL teams. FanDuel, PointsBet, DraftKings, UniBet, Bet MGM, and Fox Bet all signed deals with teams between June and September 2020.

The NFL is the most popular league to bet on. A study of 2019 data found that 41% of first-time bettors put money on the NFL, with MLB a distant second at 16%. The structure of NFL games also provides ample betting opportunities — the most popular time to place a bet, according to the same study, is during halftime.

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Key discussion points include:

  • The Impact Of Health & Safety Communication & Tracking 
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Plus, exciting upcoming product news! Register now!

Conversation Starters

Conversation Starters

  • Andretti Acquisition, an automotive SPAC co-led by IndyCar champion Michael Andretti has filed for a $250 million IPO.
  • Razer — a multinational tech company that makes consumer electronics and gaming hardware — reported record full-year revenue of $1.2 billion in 2020, up 48% year-over-year despite the pandemic.
  • European soccer clubs Tottenham and Dortmund, as well as the German Football Association, are now shareholders in German-based soccer media company OneFootball. Arsenal, Juventus, and Real Madrid became shareholders following the company’s acquisition of video publisher Dugout in December.
  • Two title fights. One knockout night. Stream every moment of Miocic vs. Ngannou + Volkanovski vs. Ortega live on Saturday, March 27 exclusively on ESPN+. UFC 260 Prelims at 8PM/ET and Main Card at 10PM/ET.*

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Question of the Day

Have you watched at least one NBA game this season?

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Wednesday’s Answer
30% of respondents invest in cryptocurrency.

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Written by Abigail Gentrup, Justin Byers, Owen Poindexter

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