March 29, 2021

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Good news to start the week: after holding up billions of dollars in trade for six days, the ship that was stuck in the Suez Canal is finally free.

Golf Courses Reimagined as Warehouses and More

USA Today Sports/Design: Alex Brooks

Your next Amazon shipment might come from a former golf course.

Golf has gotten a lift during the pandemic as an outdoor sport with easy social distancing, but that’s not enough to counteract two other market forces —  more courses than the market needs, and companies hurting for warehouse space amid surging online commerce.

Amazon and UPS recently took over shutdown golf courses to open up large warehouses, according to Bloomberg. 

In addition to warehouses, some courses have been turned into housing developments and parks, while others have repurposed space for baseball fields, putt-putt golf courses, disc golf, skate parks, and community-supported agriculture. One course in Houston was converted into a “detention pond” to absorb water from Hurricane Harvey.

The number of U.S. courses increased each year from 1987 to 2005, according to the National Golf Foundation, adding 4,567 in total. Since then, however, the golf courses have seen net closures nearly every year, losing 1,645 over that span.

Now, many course owners are finding the land they own to present a great opportunity.

“With golf, you’re just limited to the income of the ongoing business concern,” Keith Cubba, national director of Colliers’ Golf Course Advisory Services, told Bloomberg. “There’s going to be a much higher yield on 200 acres of residential or commercial.”

Jordan’s ‘Bright’ Future With NASCAR

Air Jordan, 23XI Racing/Design: Alex Brooks

Michael Jordan could change the course of motorsports. 

The six-time NBA champion and three-time Daytona 500 winner Denny Hamlin teamed up in 2020 to launch 23XI Racing, which competes in the NASCAR Cup Series. Bubba Wallace, the only Black driver in NASCAR, is the behind the wheel.

Wallace has yet to produce a win on the track, but his racing team’s apparel is already a hot commodity. 

In December, 23XI’s first merch release sold out within five minutes, recalling flashes of the frenzy that led the Air Jordan I to more than $100 million in sales its first year on the market. The Jordan brand has made MJ $1.3 billion since he signed with parent company Nike in 1984.

“The future for them is just stunningly bright,” NASCAR managing director of consumer products Paul Sparrow said to GQ about 23XI.

If the racing team continues to see success with its apparel, it could very well end up competing more directly with Puma in the category. The German sportswear brand, a leader in motorsports fashion, welcomes it.

“The bigger awareness the general public has of motorsports, the better it is for all of us,” PUMA’s head of business unit marketing motorsport Anja Egger told GQ. 

The Jordan brand has yet to officially work with 23XI, but it may only be a matter of time.

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Michigan: A New Online Sports Betting Leader

MotorCity Casino/Design: Alex Brooks

Watch out Nevada, New Jersey, and Pennsylvania — Michigan is quickly becoming one of the premier online sports betting markets in the country.

Retail sports betting in the state launched in March 2020, and online betting has exceeded expectations since it went live in January 2021.

“It is difficult to imagine how an online debut could have gone any better,” PlayMichigan.com analyst Matt Schoch told SBC Americas. “It took less than 40 days to transform Michigan into one of the largest U.S. gaming markets.” 

Michigan’s online sportsbooks recorded a sports betting handle of more than $300 million in February, the first full month of operation. The total lifetime online handle for Michigan stands at $417 million, bringing in $45 million in revenue and $2.2 million in tax dollars for the state. 

Michigan currently has 12 online sportsbooks in operation. BetMGM alone has seen $19.4 million in revenue from a handle of $174 million. 

FanDuel partner MotorCity Casino isn’t far behind. The operator has the state’s largest total handle at $192.6 million and has brought in $8 million in revenue.

“Michigan has long had the potential to be a top-five market, but its rapid ascent shows just how much pent-up demand was unleashed,” said Jessica Welman of PlayMichigan.com.

Sports Sponsors That Heavily Pollute Called Out

Nagoya Grampus/Design: Alex Brooks

Companies are being accused of disingenuously using sports sponsorships to convey a dedication to health despite a lack of climate action.

A recent report by the New Weather Institute, found that more than 250 advertising and sponsorship deals in 13 different sports include some of the biggest corporate polluters.

“We know about ‘greenwash’ — when polluters falsely present themselves as environmentally responsible,” said Andrew Simms, co-director of the institute. “This is ‘sports-wash’ — when heavily polluting industries sponsor sport to appear as friends of health activity, when in fact they’re pumping lethal pollution into the very air that athletes have to breathe.”

The report found the car industry to be the largest high-carbon sector for sports sponsorships, with 199 different sports deals. Toyota has 31 of those, most notably signing on as a global Olympic sponsor in 2015 for nearly $1 billion. Airlines and oil and gas companies were the most active high-carbon sports sponsors after automakers.

English football club Forest Green Rovers was recognized as the world’ first carbon-neutral club in 2018, and Arsenal signed the UN’s Climate Action Framework last year. The new report is calling on more teams and leagues to reconsider their partnerships.

“Sport has been a game-changer in raising awareness and rapidly shifting opinions and policy on vital issues ranging from child poverty to racism,” said Simms. “Now we could be set to do the same for climate change.”

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Conversation Starters

Conversation Starters

  • Serie A clubs approved the sale of the Italian soccer league’s media rights to DAZN for $2.95 billion. DAZN replaces Sky as Serie A’s broadcaster; the deal runs from 2021 to 2024.
  • MSG Entertainment is set to acquire MSG Networks in an all-stock, fixed exchange ratio transaction that will rejoin the companies and help the entity more aggressively pursue the sports betting market.
  • Peacock has begun to remove racist and offensive WWE content. The streaming service operated by NBCUniversal is reportedly having its entire WWE video library reviewed.
  • Major League Baseball stadiums have helped more than 1 million COVID-19 vaccination shots be dispensed. Mass vaccination centers have been set up at 11 ballparks.

Question of the Day

Have you been golfing yet this year?

 Yes   No   Soon 

Friday’s Answer
On Friday, we asked you to reply with which sports podcasts you’re listening to the most these days.

We received several dozen responses, with ESPN Daily appearing the most, along with multiple shows from The Ringer network.

Advertise Awards Learning Events Video Shows
Written by Owen Poindexter, Justin Byers, Abigail Gentrup

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