Sports

Anta Sports puts ultimate buy rating on itself

17 January 2020

After outrunning short-sellers, the Chinese apparel giant is issuing 1 bln euros of convertible debt that pays nothing and can’t be swapped for equity until shares rise 40%. Strong take-up will signal confidence Anta can repeat its success reviving Fila with Finland’s Amer.

NBA legend’s globalization lesson still unfinished

2 January 2020

David Stern, who died on Jan. 1, revamped a flailing U.S. basketball league by turning athletes into billion-dollar brands. The star system he created as commissioner is a slam dunk, but the spirit of cross-border openness that helped the NBA go global has lost some bounce.

Soccer giant will field Chinese star to kick sales

30 December 2019

Super-clubs like Manchester United and Real Madrid need new revenue streams as growth from the traditional pay-TV cash cow slows. In 2020, a top team will look to boost merchandise and sponsorships in a huge market by fielding a sub-par Middle Kingdom athlete.

Tokyo brings home the Olympic gold in 2020

24 December 2019

Cities are often saddled with debt from hosting the games, and mismanagement has stretched from Montreal to Rio. Japan is setting new positive standards in sponsorship and sustainability, making medals from used phones. Add on short-term stimulus, and it can top the host podium.

Under Armour is unwitting ad for good governance

4 November 2019

Flagging growth and federal accounting probes are bad, but in a normal company they wouldn’t knock 20% off the shares. The $7 bln apparel maker, though, is not normal. An unfireable boss and jumbled accountability make it hard to convince investors anything at all is going right.

Viewsroom: General Motors strike runs on hot air

10 October 2019

Workers downed tools over three weeks ago, despite last-minute concessions by the U.S. carmaker. Job-security fears are a sticking point. So is the union’s need to prove its worth after a kickbacks scandal. Plus: U.S. basketball plays smart defense on China’s Hong Kong backlash.

China’s shot at NBA draws political foul

9 October 2019

State TV won't screen preseason games in the country after boss Adam Silver backed a manager who supported Hong Kong protesters. The basketball association has put its $4 bln business and partners at risk, but it is pushing back anyway. It can become a rallying point for others.

“South Park” makes an anti-diplomat out of Viacom

8 October 2019

The animated series is banned in China after it poked fun at Hollywood’s willingness to self-censor. Owner Viacom’s business in the PRC makes it vulnerable to reprisals. For now, it can enjoy the soft power that comes from being one of few U.S. brands prepared to speak its mind.

Chinese sportswear IPO races to buyout return

4 October 2019

Topsports is being valued at a hefty $6.7 bln, overcoming many industry and market hurdles. It means Hillhouse and CDH will have more than doubled their money on paper from the 2017 LBO of parent company Belle. That leaves plenty of wiggle room to revive the footwear business.

College football learns to play by market rules

3 October 2019

Young U.S. athletes generate $1 bln in revenue for their governing body – yet their rewards are tightly capped. When demand is high and the supply of elite talent low, as in football, something has to give. A new California law is a nod to what other industries realized long ago.

Li Ning’s sprint easily confused for a marathon

19 September 2019

The $7 bln Chinese sportswear maker’s shares have nearly tripled this year and now fetch a higher valuation multiple than Nike, Adidas and Anta. A new co-CEO from Uniqlo may help build on the turnaround. Fierce competition and an economic slowdown, however, will slow the pace.

Tencent e-sports stars would play better as a team

23 August 2019

Shares in China’s DouYu have crashed since its first results as a U.S.-listed company. Video-game streaming rival Huya is gaining users faster, spends less on sales, and is not as reliant on top gamers. For Tencent, a big investor in both, it’s a new reason to push for a merger.

The Exchange: Soccer gets smart

30 July 2019

It’s summer, which means top teams like Barcelona and Manchester United are brandishing their cheque books in the player-transfer market. But the way soccer clubs choose their stars and fund the purchases is changing. Researcher Sophie Tomlinson and financier Jason Traub explain.

Chinese IPOs get a red card from foreign investors

26 July 2019

Wanda Sports raised $190 mln in a downsized New York listing, following DouYu and other companies that have shelved or valued offers cheaply due to poor demand. The U.S.-China trade war is making buyers wary of mainland issuers, and better returns can be found elsewhere.

Big Ski is a boon for investors, if not for skiers

22 July 2019

Vail Resorts’ $264 mln deal for Peak Resorts brings 17 mostly bunny hills to the operator of some of North America’s sweetest slopes. Like all things ski-related, the price is high. But Vail can justify the 100%-plus premium by jamming skiers into its premier mountains.

China’s Topsports takes eye off e-commerce ball

17 July 2019

Two years after a $6.8 bln buyout of Belle, the shoe retailer has unveiled IPO plans for its athletic-wear chain. A Beijing-backed fitness push should help sustain sales growth. A dependence on Nike and Adidas is a worry, though, as is the lack of emphasis on its online strategy.

Anta outruns short-sellers at surprising pace

9 July 2019

The $18 bln Chinese athletic-gear maker is under attack again, this time from Muddy Waters, which accuses it of fraudulently inflating profit margins. Despite an abundance of doubters, the stock is up a third this year. Resisting scepticism may be a less challenging sport.

U.S. soccer’s unsporting pay is an own goal

8 July 2019

The American women’s team that clinched the World Cup title on Sunday is fighting for equal wages. As with similar battles playing out in the corporate world, arguments about metrics and comparability cloud a simple point: closing the pay gap is good for long-term profit.

Wanda’s Ironman IPO could lose a little weight

4 July 2019

The triathlon-to-soccer arm of tycoon Wang Jianlin’s empire plans a $500 mln U.S. listing. China's legions of fans and the prospect of the 2022 Olympics in Beijing will be a draw. But a share sale eases only some of its debt load; less burdened rivals may beat it to the finish.

India’s bling cricket league reflects rich reality

10 May 2019

All eight teams in the country’s top tier are turning a profit. Shared revenue, salary caps and room to expand combine for a winning pitch. That makes it easier for tycoons like Mukesh Ambani and Saijan Jindal to justify ownership through their flagship conglomerates.