October 18, 2021

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In the team’s first season with WNBA superstar (and Chicagoland native) Candace Parker, the Chicago Sky beat the Phoenix Mercury to win its first championship — the 10th franchise in league history to accomplish the feat.

Disney Reportedly Exploring ESPN Spinoff

Mark J. Rebilas-USA TODAY Sports/Design: Alex Brooks

As Disney expands its streaming business, it’s reportedly considering cutting loose its property most tied to linear television: ESPN.

The news outlet Puck said that Disney CEO Bob Chapek asked top aides to look into a possible ESPN spinoff. Multiple private equity firms have reportedly approached Disney about the possibility.

In a separate report, a person close to Disney who wished to remain anonymous called the reports inaccurate.

The Mouse has found that its flagship sports network’s goals are sometimes at odds with other parts of the company.

  • Because ESPN commands $10 per cable subscriber per month from cable networks, Disney loses money anytime someone drops their cable subscription for ESPN+ ($6.99 per month of $69.99 per year).
  • ESPN is contractually tied to long-term rights deals with linear providers. Disney CEO Bob Chapek mentioned “constraints” around current rights contracts in August when discussing the possibility of combining Disney+, ESPN+, and Hulu.
  • Disney+ had 116 million subscribers as of July 3. ESPN+ had 14.9 million.

A split from the family-oriented Disney could allow ESPN to make a more fulsome embrace of sports betting.

The company is reportedly looking to license its name to a sportsbook in a deal worth at least $3 billion but has not yet launched its own betting platform.

Google’s Fitbit Purchase Under Regulatory Scrutiny

Fitbit/Design: Alex Brooks

Google bought Fitbit in January, but for U.S. and Australian regulators, it’s not a done deal.

The U.S. Department of Justice and the antitrust-focused Australian Competition and Consumer Commission are still investigating the $2.1 billion deal, according to Rod Sims, who heads the Australian regulatory agency.

Sims explained Friday that his agency was still determining whether the deal presents privacy issues regarding the tech giant’s huge store of consumer data.

Google agreed to restrict the use of Fitbit data in its ad targeting to gain approval from the European Commission in September 2020.

The Fitbit acquisition represents Google’s major foray into wearables — it shares a wearable tech platform with Samsung — amid other major tech and fitness companies pushing into the category.

  • The Apple Watch integrates with the company’s Apple Fitness+ workout subscription program and has been steadily adding health tracking features.
  • Facebook and Peloton are both working on biometric-tracking wearables.
  • Facebook has explored integrating data from its Oculus Move VR workout system into Apple’s health app.

This is not Google’s first antitrust challenge.

Last month, Google filed an appeal of a $5 billion fine issued by the European Commission over antitrust claims regarding its Android operating system — the largest such fine ever issued by the governing body.

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Another Crown Gambling License in Jeopardy

Crown Resorts/Design: Alex Brooks

Once considered a global gambling empire, Crown Resorts is now facing a revoked license for its flagship casino.

A public inquiry into Crown’s suitability to operate a casino in its home city of Melbourne has revealed a number of alleged illegal acts by the company, including unpaid taxes and enabling money laundering. 

Crown was deemed unsuitable to operate its $1.7 billion Sydney casino in February — just months after it opened — because of similar accusations. That verdict hasn’t affected its jersey sleeve sponsorship with the South Sydney Rabbitohs rugby club.

However, multiple M&A discussions surrounding Crown have collapsed since the Sydney report, as an additional investigation into its Perth casino moves forward.

  • Star Entertainment pulled its $9 billion merger proposal in July.
  • Blackstone‘s $6.2 billion offer was rejected in March.
  • Talks with Oaktree Capital have fallen apart, as well.

Crown briefly held a more aggressive position in sports betting after it took over BetEasy in December 2014 and rebranded it as CrownBet three months later — only to sell it for $117 million in 2017 to cut debt.

A suitability report on the casino’s Melbourne location was presented to the Victorian government Friday, but the findings will remain private for now.

Victoria’s minister for gaming said the government will release its final decision on Crown’s operations in the Australian state by November 1.

NBA’s Top Earners to Make $714M Combined

Jayne Kamin-Oncea-USA TODAY Sports/Design: Alex Brooks

The King has kept his crown — for an eighth-straight year — after Forbes unveiled its rankings of the NBA’s highest-paid players.

The league’s top 10 earners this season will pocket a combined $714 million, up 28% from last season.

Four-time NBA MVP LeBron James is set to earn $111.2 million this upcoming season between his $41.2 million salary and an estimated $70 million from off-court ventures.

Some of King James’ rivals and teammates aren’t far behind.

  • Golden State Warriors guard Stephen Curry ($92.8 million)
  • Brooklyn Nets forward Kevin Durant ($87.9 million)
  • Milwaukee Bucks power forward Giannis Antetokounmpo ($80.3 million)
  • Los Angeles Lakers guard Russell Westbrook ($74.2 million)

NBA players have benefited from a salary cap that’s nearly doubled in the past decade. This season, the cap is $112.4 million with a luxury tax threshold at $136.6 million.

Off the court, the NBA’s highest-paid players are set to make more than $305 million combined this season, surpassing last year’s record total of $260 million — when the NBA had to slash player salaries by 20% due to financial woes caused by the pandemic.

The league projects a return to pre-pandemic revenue levels for the 2021-22 season thanks to the return of live fans and increased sponsorship opportunities.

The NBA’s 75th season tips off on Tuesday.

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Conversation Starters

Conversation Starters

  • South Carolina made Dawn Staley the highest paid Black head coach in women’s basketball with a seven-year, $22.4 million contract.
  • MLB will require its teams to provide housing for minor league players beginning in 2022.
  • LSU is terminating football coach Ed Orgeron’s contract and paying his full buyout — $16.9 million in 18 installments from this December through the end of 2025.
  • MLS commissioner Don Garber said major domestic leagues “don’t really have a vote” when it comes to deciding on a biennial World Cup.

Question of the Day

Do you think Disney will spin off ESPN?

 Yes   No 

Friday’s Answer
47% of respondents plan on watching this year’s Super Bowl halftime show.

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