European TV ends self-destructive soccer splurge 26 Jun 2018 The financial balance of power is shifting from clubs to groups like Sky, Telefonica and Canal Plus. The sport gets less money. But halting rights inflation gives telecom companies cash to invest in mobile networks while media groups can better compete with Netflix and Amazon.
Viewsroom: Disney, Comcast go from zero to berserk 21 Jun 2018 The Magic Kingdom and the cable company are driving up the price for parts of Twenty-First Century Fox in a global M&A battle that throws financial logic out the window. But does it make sense strategically? Plus: India’s cricket league takes a few pages from the NFL playbook.
Review: The other side of Trumpismo 15 Jun 2018 Mexico and the U.S. share complex, ever-deeper ties that contradict Donald Trump’s hostile rhetoric, Andrew Selee writes in “Vanishing Frontiers.” Bicultural businesses, movies and even co-hosting soccer’s 2026 World Cup are better signposts to the future than nationalist rants.
FIFA’s $25 bln backers could end up on losing team 14 Jun 2018 Soccer’s governing body may tap investors like SoftBank to fund two new tournaments. They’d have to be almost as lucrative as the World Cup before the backers see a return. Like SoftBank CEO Masayoshi Son’s other bets, it hinges on creative thinking and generous assumptions.
India Insight: IPL bats for global sports crown 11 Jun 2018 More people may have tuned in for the final of the 11th season of the Indian cricket league than the NFL’s Super Bowl. Salaries are starting to rival English soccer’s Premier League, and advertising dollars are rising fast too. It’s a stunning Indian growth story with room to run.
Amazon’s softly-softly UK soccer move is smart 7 Jun 2018 The e-commerce group made its first foray into UK football rights. But it won’t screen as many games as Sky and BT. The restraint means the group run by Jeff Bezos should easily break even, and suggests it’s more interested in scoring tactical goals than tackling rivals head-on.
Vivendi’s soccer loss may be winning tactic 30 May 2018 Chinese-owned Mediapro beat the media conglomerate’s pay-TV group Canal Plus in a 1.2 bln euro auction for rights to show France’s top matches. The winner is taking a gamble since the value of those rights leapt 60 percent. Vivendi avoided overpaying and can withstand the loss.
World Cup Soccernomics 29 May 2018 Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.
Numbers add up to Germany retaining World Cup 29 May 2018 Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.
Football is imperfect hedge for hedge fund mogul 24 May 2018 Appaloosa’s David Tepper brings a winning attitude to Carolinas' Panthers, which he’s buying for $2.3 bln. America’s biggest sport is all about active management and performance - a welcome break from the pressures squeezing hedge funds. But data geeks are targeting the NFL too.
Paddy Power turns M&A into a fantasy sport 23 May 2018 The Dublin-based group is merging its U.S. assets with fantasy-sports business FanDuel. If a recent Supreme Court ruling leads to nationwide legal sports betting, loss-making FanDuel’s users could become valuable punters. The catch is that payback could be a while in coming.
WWE is a leading contender for content champion 22 May 2018 Vince McMahon’s wrestling kingdom may be close to inking a deal with Fox for its popular "SmackDown." The agreement would bring more than $1 bln for the rights to broadcast the program, much more than NBC has been shelling out. WWE deserves a champion’s belt for savvy partnerships.
Get ready to gamble – on U.S. sports betting 15 May 2018 The Supreme Court ruled that the feds can’t stop states legalizing wagers on basketball and other games. It will push a $150 bln black market into the light and gives firms like DraftKings and Paddy Power, sports leagues and media outlets like ESPN a grab at the revenue pot.
Videogame-watching IPO magnifies clash of clans 11 May 2018 Huya is set to list at a $2.6 bln valuation, or nearly eight times revenue. The startup gives investors a shot at a market whose audiences for "League of Legends" and other games exceed the NBA's. Backer Tencent's stake in Chinese e-sports rival Douyu also offers a useful hedge.
Arsenal manager’s weak second half instructs CEOs 20 Apr 2018 Frenchman Arsène Wenger is hanging up his boots at the North London soccer club after 22 years. A golden age of winning seasons followed his arrival in 1996, but Arsenal underwhelmed for the last decade. As with corporate bosses like WPP's Martin Sorrell, he hung around too long.
Busting EU sport cartel lines already fat pockets 11 Apr 2018 Antitrust authorities raided groups including Fox in a TV-sports cartel probe. Usually, such moves help consumers. But if the cartel had helped hold down inflated media rights, the main beneficiaries from its end would be already loaded teams and athletes.
Solid takeover hurdle trips up Foxconn of sneakers 11 Apr 2018 Taiwanese contract footwear maker Pou Chen wanted full control of its Hong Kong affiliate Pou Sheng. The $1.4 bln deal was nixed, however, by just 4 pct of investors. There's a risk that the rigorous system can be gamed, but it commendably tilts in favour of outside shareholders.
Indian cricket plays well for Disney and Murdoch 6 Apr 2018 Fox’s Star India is paying almost $1 bln to secure its monopoly over Indian cricket. It is unusual to see a company in play splashing the cash so freely. That suggests Disney, which is keen to buy parts of Rupert Murdoch's empire, shares his enthusiasm for this growth market.
Korea can aim for Olympic economic bronze 9 Feb 2018 Hosting typically leads to financial defeat. The 2018 Winter Games will cost about $13 bln. In 2002, TV revenue equaled 30 pct of Salt Lake City's smaller tab. Pyeongchang won't land that split nor probably match Vancouver's. It should, however, skate past super-pricey Sochi.
BT belatedly remembers it’s a telecom business 2 Feb 2018 Under new chair Jan du Plessis, the former UK telephone monopoly seems more focused on network investment than costly TV forays. It is building more fibre internet lines and may declare a truce with rival Sky on soccer rights. That should please both regulators and shareholders.