FOS PM: NYT buys The Athletic

The USFL returns after a 36-year hiatus and plans to start in April. The eight-team professional football league has also partnered with Strategic Education Inc. – owners of Strayer and Capella University – to provide the league’s players and staff with a tuition-free, debt-free college program.

Athletic CEO and co-founder Alex Mather once said he wanted to let the newspaper industry “keep bleeding until we’re the last ones standing.”

The sports subscription site was acquired by a news company on Thursday as The New York Times agreed to buy The Athletic for $ 550 million, The Times said in a press release after markets closed on Thursday.

The cash deal is expected to be finalized in the first quarter. The Information was the first point of sale to report the sale.

The selling price – although much lower than the $ 800 million Sources said the company’s Front Office Sports executives are looking for a sale – that means investors outside of those raised in the last round ($ 50 million in January 2020) will see a significant return.

FOS was the first to report that talks between The Times and Athletic, which stalled last summer, have resumed.

How they will mesh

  • It’s unclear how the two will bundle the subscriptions into a single monthly or yearly subscription. The Athletic costs $ 71.99 per year, although many subscribers pay a very discounted rate.
  • Athletic had more than 600 employees in September. Sources told FOS that Mather and his co-founder Adam Hansmann were determined to keep all employees under a deal.
  • The Times newsroom is represented by NewsGuild of New York, and the union would likely seek to bring The Athletic reporters into the fold.

Acquisition reinforces The Times’ goal of earning 10 million digital subscribers by 2025. As of September, The Athletic – which has yet to turn a profit – had 1.2 million subscribers.

The New York Times Co. currently has a market capitalization of $ 7.9 billion.

Brad Penner-USA TODAY Sports / Design: Alex Brooks

Legalized online sports betting is arriving in New York City faster than expected, with four sportsbooks going live on Saturday morning.

New York first legalized sports betting in 2013 but action limited to casinos. A federal case in 2019 extended betting to retail sports betting, but New Yorkers will now be able to place a bet in the palm of their hand or computer.

This weekend’s launch in New York City follows an April deal to allow online sports betting in the state, but through a lottery model and sports betting limits.

  • Each operator is required to pay a 51% tax rate to the State for 10 years.
  • State tax revenues could reach $ 500 million by 2025, by Controller Thomas DiNapoli.
  • Online sports could potentially compensate 90% of the New York betting handle.

Strong competition

A group formed by DraftKings, BetMGM, Bally’s and FanDuel was approved in November for sports betting licenses, while another group comprising PointsBet, Caesars Entertainment, Wynn Resorts, Rush Street Interaction, Resorts World and Kambi Group also won. his offer.

DraftKings, FanDuel, Caesars, and BetRivers will be the first four sports bets to put online.

Fanatics, Penn National, Fox Bet and bet365 were among the operators that did not get license approval in the state.

With over 20 millions residents, New York will become the the biggest online sports betting market in the United States

Reebok / Design: Alex Brooks

Reebok and Sports Illustrated owner Authentic Brands Group has remained as active as ever, but it won’t be in public markets anytime soon.

The conglomerate has officially canceled its IPO plans, according to to a filing with the SEC on Wednesday. He originally filed for the offer in July.

Rather, the group raised funds through private sources, notably through a November investment from CVC Capital Partners and HPS Investment Partners which valued ABG at $ 12.7 billion.

  • ABG purchased a 55% stake in DB Ventures from David Beckham to $ 271 million earlier this week.
  • He agreed to buy Reebok from Adidas in August 2021 for $ 2.5 billion.
  • The company hit a OK last month with JD Group to bring the brand of footwear and clothing to more than 2,850 stores. ABG expects the brand’s retail sales to exceed $ 5 billion This year.

ABG also owns the clothing brands Airwalk, Prince Sports, Tapout and Volcom, the fashion brands Nine West, Juicy Couture, Brooks Brothers, Aeropostale and Barneys New York, as well as the name, image and likeness rights to Mohamed Ali, Shaquille O’neal, and Julius Erving. O’Neal owns a significant stake in the company.

IPO still in progress

ABG CEO Jamie Salter said the company is still planning to go public, but likely will in 2023 Where 2024.

In the SEC filing, the company requested that its filing fees be credited for any future filing with the agency.

  • In The Leadoff, the NHL and 20 of its teams sue insurers for pandemic-related reimbursements, Liteboxer launches new VR offerings with Meta’s Oculus, Anta gains ground on rivals, and Sony launches new VR headset and game title exclusive. Click here to listen.
  • UK video game sales hit $ 5.6 billion in 2021, or 3.3% decline compared to the previous year. The drop is attributed to the semiconductor shortage plaguing the tech industry.
  • NBCUniversal will do its utmost blanket of the Beijing Winter Olympics available on Peacock through its premium subscription option. The Games are scheduled to take place from February 2 to 20.
  • Do you love the sports business as much as we do? FOS is growing rapidly and has several open positions within our editorial, sales and growth teams. Start 2022 on the right foot and apply now if you think you would be a good fit!

(Note: All at market close on 01/06/22)

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The Boston Celtics (18-20) face the New York Knicks (18-20) tonight at Madison Square Garden.

How to watch: 7:30 p.m. ET on TNT

Betting odds: Celtics -1.5 || ML -125 || O / U 207.5 * (Bet on DraftKings)

Take: Expect the Knicks to build on Tuesday’s home win. Take New York to cover.

Who do you have? Respond to this newsletter with your prediction for the winner of the Celtics-Knicks and the final score.

* Dimensions / lines subject to change. The T & Cs apply. See for details.

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