Smith & Wesson calls top of gun market 20 Jan 2016 The iconic weapons maker wants to go on a buying spree for sporting-goods businesses. That reflects industry worries that years of bumper sales stoked by fears of gun control are coming to an end. On past evidence, though, such diversification may not offer much relief.
Adidas CEO change starts a sprint amid a marathon 18 Jan 2016 The hiring of Kasper Rorsted from Henkel to replace Herbert Hainer set the German sportswear company’s stock dashing upward. To catch rivals Nike and Under Armour, Adidas will have to up its performance. Expectations look high, though, for a long race with many hurdles.
Host Brazil may challenge for 2016 Olympics glory 24 Dec 2015 The mighty U.S. will be hard to dislodge from the top spot. But a prediction based on population, GDP, the cost of Nikes and past willingness to dope suggests Brazil could break into the top five by medals. Like Team GB in 2012, that will require capitalising on home advantage.
Manchester City deal is good business for China 1 Dec 2015 Sport tends to consume capital rather than create it. Acquired kudos often bridges the gap. The $400 mln investment by two Chinese groups in one of the UK’s most successful teams could break the mould. Still, investors in English soccer still seem to value trophies above profit.
Fantasy sports embrace fantasy of self-regulation 29 Oct 2015 The embattled $4 bln U.S. industry is hastily assembling a governing authority as DraftKings and FanDuel find themselves in the crosshairs. It’s a belated and transparent attempt to ward off outside oversight. Self-policing organizations, however, often have more bark than bite.
Mets and America pull off a slick double play 22 Oct 2015 As the country staggered under dud mortgages, the baseball team fell victim to Bernie Madoff. Infusions of money helped right Uncle Sam, but the Amazins took a far more frugal path. A World Series for the New York club puts an exclamation point on the financial crisis’ end.
Corporate America can learn from Chicago Cubs 20 Oct 2015 The baseball team’s owner, Tom Ricketts, and President Theo Epstein have transformed the lovable losers into World Series contenders through a combination of investment, savvy acquisitions and, above all, patience. It’s a strategy boardroom bosses would do well to emulate.
Couch-sports on TV could be whole new ball game 12 Oct 2015 U.S. cable network TBS is starting a competitive videogame league with talent agent William Morris in a bid to build on the power of live programs. With online viewership for “League of Legends” battles already on a par with events like soccer’s World Cup, it may be a big score.
Scandal exposes long odds for fantasy sports sites 7 Oct 2015 DraftKings and FanDuel rely heavily on fees members pay to bet on pro games. Allegations that employees used inside information to wager may well drive those customers away. Add advertising expenses and legal challenges, and the companies may be headed for blow-out losses.
Ironman and SoulCycle may set CrossFit’s course 25 Sep 2015 Buyout shop Providence Equity quadrupled its investment in the three-part, 140-mile races popular with the hedge fund set. The fashionable and fast-growing indoor cycling chain is pursuing an IPO. CrossFit’s exercise cult should attract investors pumped up on fitness crazes.
England will win the Rugby World Cup 18 Sep 2015 The quadrennial battle for the Webb Ellis Cup begins at Twickenham on Friday. The bookies’ favourite is the New Zealand team. But a Breakingviews data-driven analysis suggests the English rose could triumph – with France edging the always awe-inspiring All Blacks into third.
Chinese mogul takes on extreme triathlon challenge 27 Aug 2015 Wang Jianlin’s Wanda group will buy the operator of Ironman events from its private equity owner for $650 mln. Endurance sports are booming. But turning China’s newly affluent onto day-long stints of running, swimming and cycling looks harder than luring them into Wang’s cinemas.
Olympics committee gets it right with Beijing 2022 31 Jul 2015 The Winter Games won’t boost China’s growth, end repression, or win the country much extra respect. It might help soft power, but then most countries already do whatever China asks. Freed from such false hopes, everyone can sit back, have fun and admire the fake snow.
Planet Fitness runs a race against itself in IPO 6 Jul 2015 A stock sale would make the $10-a-month gym chain the next test of investor appetite to back the seemingly eternal quest to slim down the American consumer. Though it has few public market analogues, and a lot of debt, Planet Fitness’ asset-light strategy may get pulses racing.
Alibaba kicks China’s new tech board to big league 3 Jul 2015 The e-commerce group’s soccer club will list on the “New Third Board”, an upstart exchange with $200 bln of companies that could be China’s answer to Nasdaq. It’s a welcome source of capital for start-ups, but a lack of oversight means investments are only for the brave.
Nike displays unsportsmanlike governance conduct 1 Jul 2015 Founder Phil Knight’s transfer of stock that allows him to elect a majority of the board to a foundation constitutes a foul of sorts. Though investors will give the sneaker giant a pass for its extraordinary performance, their successors may rue that failed call.
New drivers could rev Formula One’s billions 24 Jun 2015 Private equity backer CVC is ready to speed off after a decade of turbocharged returns, while 84-year-old patriarch Bernie Ecclestone may not be doing enough to tune high-tech motor racing’s commercial chassis. Qatari and U.S. owners might just restore full power.
Thruppence: Should World Cup hosts foot FIFA woes? 5 Jun 2015 U.S. authorities are investigating how soccer’s governing body awarded the event to Russia and Qatar. As FIFA’s problems proliferate beyond graft indictments, Breakingviews columnists debate whether it is fair or practical to deprive host countries of the sport’s global fiesta.
Edward Hadas: FIFA and the root of all evil 3 Jun 2015 The soccer federation’s corruption shows how much harm abundant money can do to weak institutions. The problem goes well beyond sport. Modern affluence spreads lucre’s poison to everything from drug crime to the perfectly legal but socially destructive spiral of executive pay.
Match-fit FIFA would give players, fans more ball 2 Jun 2015 Sepp Blatter has resigned as the besmirched president of soccer’s governing body. Needed reform is now unavoidable. FIFA’s best strategy would be to embrace it by enfranchising the beneficial owners of the sport: the players and the fans. It would also usher in better governance.