SBJ Morning Buzzcast
SBJ Morning Buzzcast: July 5, 2024
(upbeat music) Hope everybody had a great July 4th. Hope you enjoy your holiday weekend. This is your morning buzzcast for Friday, July 5th. I'm Ape Madcore. Thanks for listening to the buzzcast. Do you want to know one of the best rivalries in sports is shaping up in Southern California between the MLS LA Galaxy and LAFC. It's really strong what those two teams have built as they have shared that Los Angeles market for the last seven seasons since LAFC was launched. And on July 4th, Thursday, they were playing each other while sharing the top spot in the Western Conference standings. That was for the first time and boy, did the fans come out to support? LAFC beat the galaxy before more than 70,000 at the Rose Bowl. Remember, LAFC plays at BMO Stadium, LA Galaxy plays at Dignity Health Sports Park. The two facilities are just about 10 miles apart, but for this July 4th match, they moved it to the Rose Bowl for the second straight year and were rewarded with the second largest crowd in MLS this season and the 14th largest in MLS history. Again, very impressive and that rivalry seems to be something special. Well, NASCAR is back in Chicago this weekend for the second straight July 4th weekend. The series takes over the city and turns Grant Park into a city race course. There's the XFINITY series on Saturday and there is the Cup Race on Sunday on NBC. The Chicago Street Race won the 2023 sports business award for event of the year. And NASCAR is again hoping to draw thousands of fans and especially new fans who are just starting to engage with the sport. Last year's race certainly had major challenges. There was awful rain, it was almost biblical like rain, but it was still considered a success. So NASCAR would like to build off that and the early forecast is for sunny skies throughout the weekend in Chicago. You know, there's been a lot of talk and discussion around the softness of the esports business. It just doesn't have nearly the investments, the buzz, and the results have been underwhelming. Let's add the NBA's 2K League to the list of companies still trying to figure it all out as that esports league for basketball teams is going through a total reorganization and revamp of its entire business. This league launched in 2018 with great fanfare. There was talk that 2K League franchises could eventually be worth millions and millions of dollars in the future. There was talk that the gamers would make more money potentially than NBA stars. It was co-owned by the NBA and take too interactive, but the league has never found its footing. And last week a town hall was held and significant layoffs were announced and a new approach for the future was outlined. What does that mean? It means the 2K League is reimagining its business, it's reimagining itself as a global entertainment business that will be social first and also a new digital media brand. So what that all means, pretty cryptic. It could be relying on influencers, it could be looking to create new experiences, but the bottom line is there is still great unpredictability on the future and the business viability of esports. You know, more changes at Manchester United, we've noted on the buzz cast that new investor, Jim Ratcliffe was looking to make changes to the business side of the club. He has felt for a while that Manchester United has too many employees and the club does have one of the biggest staffs of any team around the world. They average more than 1,100 employees per month and that is much more than most US-based franchises. Well, he is announcing more and more change as Manchester United staff will be cut by 250 employees this summer. They're gonna try to put more of the revenue behind the football or soccer side of the operations. So the changes are coming in all departments and all levels of the club. The team said that only one group is safe from any staff changes and that is Manchester United's foundation, the club's official charity partner. So again, Jim Ratcliffe feeling that Manchester United too bloated, too inefficient, making staff cuts. Let's stay with soccer. I've been admiring the work in pursuit of excellence by KC Current Owners Chris and Angie Long. We know the efforts they are taking to make their organization best in class, including financing and building the first stadium built specifically for a women sport. Well, it's paying off as the franchise will generate $40 million in revenue this year. That's according to the Wall Street Journal and that is a big, big revenue number for an NWSL club. And to show what a game changer, their new facility has become, take in this stat. Halfway through this season. CP KC Stadium, which seats 11,500 fans, the facility has been sold out for every game. The team currently has a waiting list of more than 3,000 fans. And the team is already planning to expand the facility. So that shows what a revenue driver this facility has become. Now, the team will still not make money this year, even with that top line $40 million in revenue. Ownership said it is still investing across the franchise and the team currently has just over 100 staffers. So again, they're still investing in the team. The team will not make money this year, but all signs are that this franchise is certainly heading in the right direction. And remember, you'll be able to see CP KC Stadium on November 23rd, as the current will show off their new building in hosting the NWSL Championship game. But one franchise certainly to keep your eye on. And finally, we'll end with this. The big three basketball league founded by IceCube continues to push its new franchise model. They have sold their third team to a group of investors in Houston. It's being acquired in a deal worth $10 million to part of a group that includes Mitchell Carroll, who is also a minority owner of the Astros. Remember, the big three is looking to add new ownership groups. It's transitioning to a traditional franchise model where teams are based in cities. Previously, the big three own all of its teams, but they put all 12 teams on the market, outside investors have acquired teams now in LA, Miami, and Houston, so three strong markets. It's not clear where the Houston team will play. I will say the big three traditionally plays in NBA arena. So the big three continuing to change its model by selling a franchise to investors in Houston for a reported $10 million. And so that is your morning buzz cast for Friday, July 5th. I made Matt Corps have a great July 4th holiday weekend. Stay healthy, be good to each other. I'll speak to you on Monday. (upbeat music) (upbeat music) (upbeat music)