Capital Calls: Pelululemon 28 Sep 2023 Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.
UFC’s Saudi challenge may be less than a body blow 22 Sep 2023 After its WWE merger, the mixed martial arts promoter’s $15 bln parent TKO faces a smack from Saudi-backed PFL. But the latter is targeted more at non-US fans, a lesser market for UFC. Saudi may also struggle to scale up enough to deliver the knockout blow it managed with golf.
John Malone wields hammer over media coffin 6 Sep 2023 A dispute has cut Charter’s cable viewers off from Disney content. Charter backer Malone is betting traditional TV is fading, risking $17 bln of rich fees for Disney. Forcing a showdown makes sense. It’s hard to see why distributors should subsidize the pivot to streaming.
US retailers lace up for battle on two fronts 25 Aug 2023 Shares in retailers like Foot Locker and Macy's have tumbled this week after unveiling dim outlooks. Price-conscious consumers are part of the problem, but others, like Dick’s Sporting Goods, are also citing theft. Both are big issues, and neither looks to be improving.
Saudi binge is fiscal free kick for European clubs 18 Aug 2023 The Kingdom’s top league has spent some 600 mln euros this year buying star soccer players, like striker Neymar. The boom in transfers helps Europe’s teams meet new wage rules. It could be an own goal, but Saudi’s dream of becoming a football powerhouse looks like a distant risk.
Wynn shrewdly pares online betting chips 14 Aug 2023 In the face of fierce competition from MGM, DraftKings and others, Wynn Resorts is concentrating its digital sports betting in markets with actual casinos. Like poker, online betting is a winner-takes-most game. That means there will be loads of losers.
Capital Calls: Robinhood, Influencers, Inflation 3 Aug 2023 Concise views on global finance: The $10 bln brokerage’s first profitable quarter does little to quell growth fears; Adidas and AB InBev are unexpectedly resilient amid an online storm; the Bank of England has a longer inflation fight on its hands than its peers.
Saudi Mbappé bid even less rational than it looks 25 Jul 2023 State-owned Al Hilal offered $1.1 bln in fees and pay for soccer star Kylian Mbappé, reports say. Spain’s LaLiga gets less in international broadcast revenue a year. Saudi’s nascent league would gain, but the data doesn’t suggest either it or “sportswashing” overall will work.
Capital Calls: AMC’s meme investor backlash 18 Jul 2023 Concise views on global finance: A new lawsuit looking to force a shareholder meeting adds to growing antagonism between $2 bln movie theater chain AMC and the retail investors who buoyed its business during the pandemic. For boss Adam Aron, meme stock stardom comes at a cost.
Saudi golf shot plays through CFIUS hazards 14 Jul 2023 US lawmakers grilled PGA bosses about the deal they struck with the kingdom’s rival upstart. AT&T’s former CEO also quit a board in protest. Despite the concerns, Riyadh already owns stakes in EV-maker Lucid, video-game maker Scopely and more. Its soft-power game is strong.
Man United sale heads into messy added time 15 Jun 2023 The Premier League soccer club is in the final stages of a tense bidding war. In this Viewsroom podcast, Breakingviews columnists debate the merits of offers from a Qatari suitor and chemicals tycoon Jim Ratcliffe, and what options minority investors face if they are shut out.
Man United takeover drama may end up in court 9 Jun 2023 The $3 bln soccer giant is up for sale. Hedge funds are preparing to fight any attempt by the controlling Glazer family to exclude minority investors from a deal. The club’s relatively low valuation, compared with recent takeovers, suggests a high chance of that happening.
Golf’s Saudi surrender is par for the course 7 Jun 2023 The sport’s main US and European tours are linking their commercial arms with Riyadh-run LIV Golf. Saudi gets the smaller stake despite being the only partner to put in cash. But as it has shown by splashing out on other sports, the chance to polish its image is more valuable.
Capital Calls: Amazon, Aramco 9 May 2023 Concise views on global finance: Rising costs and cautious consumers are driving the e-commerce giant to sell goods through mobile games and push incentives; the $2 trillion Saudi oil company’s new dividend policy is one way to interest investors in future share sales.
Capital Calls: Crypto mysteries, HSBC 5 May 2023 Concise views on global finance: A court decision adds pressure on the US SEC to say which digital assets are securities, which would bring clarity to Coinbase and others; None of the $150 bln global bank’s big investors other than Ping An back an AGM breakup proposal.
Man U sale rejig will perturb other soccer sellers 19 Apr 2023 The Glazers want to sell the Red Devils for $7 bln, but may have to settle for a stake sale to private equity instead. That raises the question of whether club valuations have peaked. If so, the likes of Man City’s Silver Lake may find it harder to secure a lucrative exit.
James Murdoch’s cut-size India deal has some logic 14 Apr 2023 Rupert Murdoch’s son and ex-Disney executive Uday Shankar are pumping $530 mln into a cricket-rights owning joint venture with Reliance Industries, a third of the original amount. India’s streaming war may be heating up, but both sides had good reasons for a rethink.
WWE and UFC merger mania is quite the production 6 Apr 2023 The wrestling heavyweight has agreed to merge with Endeavor’s mixed martial arts franchise in a $21 bln deal. In this Viewsroom episode, Breakingviews columnists discuss why the transaction makes sense strategically, but the financial logic is contorted.
WWE-UFC headlock relies on financial theatrics 3 Apr 2023 Combining the producers of wrestling and mixed martial arts is set to create a new $21 bln company. Grappler-in-chief Vince McMahon gets a richer valuation on paper than partner Endeavor’s outfit. This storyline, including potential synergies, leaves a lot to the imagination.
Kanye West blunder puts Adidas in play 15 Mar 2023 The $28 bln sportswear maker is battling to restore its image after ditching a lucrative but dubious alliance with the musician. That requires CEO Bjorn Gulden to splurge on marketing, hitting dividends and margins. Adidas’s depressed valuation may soon catch the eye of rivals.