February 25, 2021

Read in Browser

Front Office Sports

POWERED BY

Nightclubs are old news. Put on your best outfit and go for a run.

Designer Clothes Built for Sweat

Photo: Gucci, Louis Vuitton, Prada/Design: Alex Brooks

Gucci jogging pants cost $2,100, Louis Vuitton dumbbells go for $2,860, and technical Prada sneakers will set you back $950.

With the global activewear market projected to reach almost $440 billion by 2026, fashion houses are experimenting with athletic clothing and accessories more than ever.

The crossover isn’t entirely new. Ralph Lauren, Lacoste, and Fred Perry all have athletic roots. Jil Sander collaborated with Puma in 1998. Chanel released a collection in 2010 with everything from golf clubs to surfboards.

But in a world where $2000 Dior Jordans sell out in minutes, the landscape has evolved even further.

“There’s a real market for luxury brands to develop performance-driven higher-priced items,” Julie Gilhart, president of Tomorrow Consulting, told WWD. “What’s on the forefront is those luxury brands applying their luxury with the technology of a Nike or a Lululemon.”

Some have argued that top traditional sportswear brands should already be recognized as leaders in high-end categories.

“If you think about the tenets of luxury — like high-quality craftsmanship, timelessness — many performance brands fit into that,” Sarah Willersdorf, global head of luxury at Boston Consulting Group, said in an interview with Vogue. “For younger consumers, in particular, Nike is as much a luxury brand as many of the true luxury brands.”

Nike revenue fell 4% to $37.4 billion during its fiscal 2020, but digital sales increased 47%. The company says it added over 70 million customers to Nike membership programs since the beginning of the pandemic.

In December, Lululemon reported third-quarter sales of $1.1 billion, up 22% year-over-year.

“It’s not a fashion play,” CEO Calvin McDonald said about the company’s sartorial status. “Some of the fashion brands look at it as an opportunity, but I think rooted in our business is technical performance.”

A Different Story for Some Leagues and Athletes

Photo: Y. Taguchi/D. Medley-USA TODAY/Design: Alex Brooks

While many major sports leagues are playing full schedules with limited fans, the world’s third-most decorated gymnast is waiting on the sidelines with the Tokyo Olympics looming.

Simone Biles has used the extra time to work on a rarely-attempted move: the Yurchenko double pike, a vault no female gymnast has ever performed in competition.

Olympic warmup events are among the competitions that remain shut down a year into the pandemic. With less capital to implement solutions and sustain losses, a number of leagues are simply waiting it out.

  • Minor League Baseball canceled its season for the first time in 120 years in 2020, with implications spilling over into this year’s campaign.
  • The XFL — acquired over the summer by RedBird Capital Partners, Dwayne “The Rock” Johnson, and Dany Garcia — canceled its 2021 season.
  • National Lacrosse League called off its 2021 season, too.

The common denominator: revenue for smaller leagues is highly dependent on in-person fans. Major professional sports can fall back on TV and sponsorship deals, as well as their capital reserves.

When you factor in the cost of safely administering events, the financial justification is that much more difficult.

The Ivy League, less concerned about revenue, still canceled its sports seasons this year over safety and logistics concerns. Brooklyn Nets owner and Yale alumnus Joseph Tsai attempted to fund a three-week lacrosse tournament bubble but his offer was rebuffed.

AWARD

Nominate the Next Rising 25

Like Starter jackets in the ’90s, they’re innovative and shaking up the sports industry.

The Front Office Sports Rising 25 Award, presented by Anheuser-Busch, celebrates the careers of the brightest young stars in the business of sports. To date, we’ve honored 100 individuals and we’re looking for our next groups of innovators.

Know someone whose innate passion and tireless dedication is making an impact? Tell us about them by nominating them for the Rising 25 Award. Nominations are open now through Wednesday, March 23rd.

Another Federal NCAA Reform Bill Introduced

Design: Alex Brooks/Front Office Sports

A new federal bill concerning the rights of college athletes to profit from their name, image, and likeness was introduced Wednesday, this time by Sen. Jerry Moran (R-Kan.), a ranking member of the Senate Commerce Committee.

The Amateur Athletes Protection and Compensation Act pulls elements from previous bills originated on both sides of the aisle.

“It is no secret that college athletics have grown into an increasingly profitable, billion dollar industry,” Moran said in a statement. “However, the rules surrounding athlete compensation have not been modernized.”

The bill would allow athletes to obtain representation and sign endorsement deals. It would also create a body to oversee and adjudicate NIL in conjunction with the Federal Trade Commission.

Additional provisions:

  • Athletes could enter professional league drafts and then return to school if things don’t work out.
  • Schools would have extra obligations to cover athlete medical expenses and must pay scholarships until athletes gets their degrees.
  • Athletes could transfer schools once without having to sit out a year.

Like other Republican-backed bills, Moran’s states that athletes cannot be considered employees.

Congress has until July 1 — when a Florida law permitting college athletes to be paid for their NIL takes effect — to pass legislation before recruiting chaos ensues. Sen. Cory Booker (D-N.J.), who also introduced a college athlete reform bill, said Congress may not pass a law until that deadline.

Two Wintertime Trends for Unique Times

Photo: The Gondola Shop/Design: Alex Brooks

You don’t need a fancy rink to go ice skating, or a Quebec chalet reservation to enjoy the confines of a gondola with your friends.

Ranging from a few hundred to thousands of dollars, at-home ice rink building kits have seen a remarkable increase in interest.

“COVID sort of triggered everyone to purchase a backyard rink,” Blair Robertson, co-owner of Ice N’Go, told the Wall Street Journal. The Montreal-based company tripled its sales this winter.

NiceRink, a Wisconsin-based company, more than doubled its sales. And Newtown, Mass. company EZ ICE, which can assemble its rinks in under 60 minutes, saw such increased demand it was forced to open additional warehouses and manufacturing sites.

If you’d rather stay seated, some eateries are now incorporating ski gondolas to maintain social distancing guidelines. 

Dominique Bastien, who owns the Gondola Shop in Fruita, Colo., told Fast Company she bought 200 retired resort gondolas several years before the pandemic.

After being contacted by roughly 50 restaurants across the country inquiring about her gondolas, she pounced on the opportunity to pivot from selling to private backyards to providing public dining enclosures.

The gondolas run between $14,000 and $20,000, depending on restoration. While they won’t lift you to a restaurant at the top of a mountain, you can still eat and drink inside one at sea level.

COURSE

Inside the Booming Esports Market

With estimated revenue of nearly $1 billion, esports is considered one of the world’s fastest-growing sports. Many believe it has potential to rival traditional sports events in size and scale.

As one of the first brands to enter the esports space, Pepsi continues to be a major player in the gaming world. Learn more about how this megabrand navigates the world of esports in Sports Marketing Essentials, a free online course sponsored by Pepsi. 

The eight-lesson course includes Esports: Transition from Traditional Sports where Paul Mascali, Head of Esports and Gaming, discusses how Pepsi utilizes a content-first approach to engage gamers and fans.

Register and complete the course by February 28th to be entered for the chance to win an Aaron Judge autographed baseball.

Conversation Starters

Conversation Starters

  • The NBA released the second half of its 72-game regular season schedule, which concludes on May 16. A play-in tournament is set for May 18-21, and playoffs begin May 22.
  • Tampa Bay Buccaneers general manager Jason Licht said that he and coach Bruce Arians would be “elated” if they can get Tom Brady to stick with the team when his two-year, $50 million contract expires after the 2021 season.
  • For the first time in the network’s history, NBC will air Paralympics coverage in prime-time during the Tokyo Olympics this summer.
  • The NBA hasn’t hosted an outdoor game since it experimented with exhibitions at the Indian Wells Tennis Garden over a decade ago, but the idea might be worth revisiting. Get more stories like this in The Association — a free, daily NBA newsletter. Click here to subscribe.

Question of the Day

Have you purchased clothing in the last 30 days?

 Yes   No 

Wednesday’s Answer
51% of respondents subscribe to HBO; 49% don’t but might want to when the new “Space Jam” comes out.

Advertise Awards Learning Events Video Shows
Written by Ernest Baker, Owen Poindexter, Amanda Christovich, Abigail Gentrup

If this email was forwarded to you, you can subscribe here.

Update your preferences / Unsubscribe

Copyright © 2021 Front Office Sports. All rights reserved.
460 Park Avenue South, 7th Floor, New York NY, 10016

Subscribe To Our Daily Newsletters

  • This field is for validation purposes and should be left unchanged.