SBJ Morning Buzzcast
SBJ Morning Buzzcast: June 28, 2024
A decision against the NFL and why Atlanta should be on your sports business hit list. And this is your morning buzzcast for Friday, June 28. Good morning. I made madcore Thursday was not a great day for the NFL. As late in the day, a jury ruled the league must pay nearly 4.8 billion dollars in damages, which could be tripled under antitrust law to nearly 15 billion dollars. This was a result of the jury's ruling on the DirecTV Sunday ticket case. The jury awarded 96 million dollars to 48,000 bars and restaurants in the commercial group of plaintiffs and 4.7 billion dollars to the 2.4 million residential subscribers of Sunday ticket. The jury believed the league inflated the price of Sunday ticket and the NFL of course is expected and will appeal the verdict. So as SBJ's Ben Fisher reported, up next is a hearing on July 31 where the NFL will argue the judgment is excessive and that the court should set aside the ruling. If that doesn't happen, the NFL will appeal to the 9th Circuit Court of Appeals and if unsuccessful there to the U.S. Supreme Court. So outside of the massive payment by the NFL, the long-term impact of this ruling could change the way sports media rights are packaged, sold and distributed. As one legal expert said, the long-term impact could be if the court rules that sports leagues can no longer pool their media rights and it could lead to other leagues not bundling their rights and could, could eventually lead to more a la carte offerings. In the case of Sunday ticket, it could mean buyers could buy a single team or a single division of packages. So again, a lot of impact by this decision. The next step in this important case will be at the end of July. You know, if you haven't been to Atlanta lately, make sure you make it a point to visit. There is so much going on in the sports business in this market and my two days in the city were well spent. Here's what I saw, a calendar filled with major events while the local teams are all excelling on the business side. Atlanta is becoming even more important as a sports hub and a sports destination and the local teams are almost driving themselves to be among the top performers in their respective leagues. So let's look at the events. Last night they had about 60,000 at Mercedes-Benz Stadium for a Copa America match where the U.S. lost to Panama. One week ago they drew more than 70,000 for Argentina, Canada. The city will host the CFP title game in January. They'll likely host matches in the FIFA Club World Cup next year in '25 and Atlanta has eight. Yes, eight World Cup matches in 2026 over a four week period. That's massive. But it's not just the big events that struck me in Atlanta as the local franchises are as strong on the business side collectively as any market that I see in the United States. Let's go through them quickly. The Hawks, they're better on the court. They've seen significant growth and sponsorship in ticket sales. The renovated State Farm Arena is a template for other arenas going through a renovation. Owner Tony Ressler is leading a massive development at Centennial Yards, which looks to transform the downtown area between State Farm Arena and Mercedes-Benz Stadium into a mixed-use LA live-like destination. Number two, we know the great business success of the Falcons and the United. And there's a lot of buzz, particularly on the Falcons. All suites are sold out. They will likely have a season ticket waiting list for the first time in years. There's optimism about their new coach and new quarterbacks. For the Braves, I have been on the record in my respect for how the Braves operate and think for years. I still don't believe the Braves get credit for the way truest park and the battery have changed the industry. And on the revenue side, the Braves brought in more than $600 million in top-line revenue for the first time in '23. That puts them among the highest in overall revenue in sports, let alone baseball. But there's more. The WNBA Dream, they're seeing significant business growth. They're looking for a new facility. U.S. Soccer is developing a state-of-the-art headquarters and training facility just about 15 miles south of Atlanta. The PGA Tour has one of its marquee stops at the very popular Eastlake, and overtime elites Arena in downtown Atlanta is intimate and versatile. And so there's a lot of events, there's a lot of infrastructure, and there's just a lot of smarts in the community. And what really shouldn't be overlooked is the camaraderie among the organizations. The teams, they're all competitive, but they genuinely get along, and are focused on making Atlanta better. The leadership across the sports business community in that city has had great continuity. Look at how stable these organizations have been, and that's clearly part of the city's strength in sports business. So again, I left Atlanta reminded, again, about what a force it is in the sports business. You know, while in Atlanta, I sat down with Dream President Morgan Shaw Parker, and one of her biggest frustrations in leading the WNBA team is how there just isn't enough licensed merchandise around women's sports and for fans of women's sports. I have heard this for a while, and it was supported by a new study by Sports Innovation Lab in partnership with Klarna that shows fans of women's sports will spend more money on licensed merchandise of their favorite players and teams, but there is not enough merchandise to meet demand. So the study shows that fans couldn't find enough product. That was out of stock, and the bottom line is there is a market for licensed merchandise around women's sports and for fans of women's sports, but it's underserved, and this study and this conversation will certainly open some eyes of those who can make a difference and change this. You know, let's end around the NHL a big deal for the Carolina Hurricanes who received approval of a 20-year lease to remain at PNC Arena, and with that comes an agreement to develop up to 80 acres around the arena. Included in this agreement is $300 million in funding from Raleigh and Wake County for the renovation of the arena, and this represents the largest economic development project in the history of Raleigh. I've talked to some people affiliated with this project and they are incredibly excited about it. They believe it will be transformative for this region, and even the mayor said that fans won't recognize that area in a decade. So there are many changes coming to PNC Arena, which really needs an upgrade, and that should be completed over the next few years. And then we're talking office space, retail, restaurants, and residential units. So again, a major development in Raleigh and another significant mixed-use development project on the books. And finally, we will cap off a big week for the NHL. As just three days removed from Game 7 of the Stanley Cup final, the league will hold its first round of its draft tonight at the sphere in Las Vegas. Rounds 2 through 7 will follow Saturday, and yes, the big story of course is the draft, but the big story is the venue itself, and how the sphere will perform hosting its first ever sports related event. It will also be the first event broadcast live from inside the sphere, and coverage will be on ESPN. So again, the sphere seems to be the story around this weekend's NHL draft. I will be heading to Nashville this weekend for a couple of things going to see Nashville SC seeing some friends, also we have a site visit for an upcoming World Congress of Sports that we will host in Nashville in 2025. I will be back with you on the morning buzzcast on Wednesday. My colleagues will bring it to you on Monday and Tuesday. So I hope you have a great weekend. That is your morning buzzcast for Friday, June 28. I'm Abe Madcore. Thanks for listening. Stay healthy. Be good to each other. I'll speak to you next week. [MUSIC]