Under Armour is unwitting ad for good governance 4 Nov 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 Oct 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 Oct 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 Oct 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 Oct 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 Oct 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 Sep 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 Aug 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 Jul 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 Jul 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 Jul 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 Jul 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 Jul 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 Jul 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 Jul 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.
Liverpool beats peers for soccer heroics and ROICs 8 May 2019 Overturning a three-goal deficit against Barcelona in the Champions League is one of English soccer’s biggest triumphs. Jurgen Klopp’s side also bests domestic rivals on returns on invested capital. Savvy player sales are key, but bigger sponsorships would be more sustainable.
Disney sports deal is small fumble in long game 6 May 2019 The Magic Kingdom sold some regional networks to Sinclair for $10.6 bln – much less than what was expected. But Disney completes a necessary task to clear its $71 bln deal for bits of Rupert Murdoch’s Fox. The launch of streaming services, with Fox content, is the greater prize.
Europe soccer investors just as irrational as fans 17 Apr 2019 Juventus lost 270 mln euros of market value after the Italian club’s surprise exit from the UEFA Champions League. Victorious Dutch rival Ajax gained just a tenth of that amount. Television revenue alone does not explain the swing. Shareholders, like supporters, are overreacting.
The Exchange: Fomenting rugby fever in Hong Kong 26 Mar 2019 As the city braces for the annual Sevens showdown, organiser Robbie McRobbie tells Breakingviews what the event reveals about its host. From fancy dress and fancier corporate suites, to a real estate dilemma, the sports extravaganza tracks the financial hub’s health and wealth.