MarketLine Blog

Posts about Sports

eSports continues to grow in popularity: However challenges like match-fixing amplify the need for more regulatory bodies

MarketLine

eSports has grown at an impressive pace in recent years, and this rise has attracted the interest of globally recognized sponsors and sporting clubs. As the speed of internet has increased as have broadband connectivity levels, and the ease of playing games online has substantially increased. Sensing this opportunity brands like Intel and Red Bull as well as sporting clubs like Paris Saint-Germain and the Philadelphia 76ers have entered eSports as sponsors. However as the popularity of eSports has increased, so have the challenges it faces. One notable example is… Read more

Sky high golf equipment prices counter-productive

MarketLine

Sales of golf equipment have fallen noticeably in recent years, with the sport’s traditional markets of the US, Europe, and Japan particularly affected. Falling participation levels are driving a fall in equipment sales as people baulk at the price of golf and slow play issues make a sport for which many simply do not have time in a society that demands people spread themselves thinly hard to access. This has impacted manufacturers with TaylorMade-adidas in particular experiencing severe problems. A constant churn of new equipment has led to a need… Read more

Bernie Ecclestone departs F1

MarketLine

The business model utilized in Formula One under the regime of Bernie Ecclestone and the ownership of CVC served the purpose of making shareholders rich. Yet, this was achieved at the expense of the sport. TV audiences have been in decline for a long time, several teams are struggling to survive, races are leaving traditional areas of support and the fans are unhappy. New owner, Liberty Media, must address these problems if Formula One is to regain impetus and become sustainable for all interested parties in the long term. For… Read more

Football spending – Driven on by TV revenue and relegation fear

MarketLine

Headline grabbing transfer fees, staggering sums paid to agents, and a record-breaking total summer transfer spend by English Premier League clubs has prompted questions over how far football’s extravagance can go. In response, Mino Raiola, agent to Manchester United’s world record signing Paul Pogba, stated that he expects to see the first £200m ($305.6m) transfer fee paid within three to four years. With the new deal to broadcast Premier League games coming into play this summer, clubs have vast financial resources available to them, with an estimated £2.78bn ($4.2bn) flooding… Read more

Nike: England sponsorship deal in jeopardy

MarketLine

In modern sport, funding is a large key to success and in no sport is that more apparent than football, the ultimate game of the haves and have nots. International football has not escaped the phenomenon with England plowing in money as if it is an endless resource while Ghana’s players insisted on cash only payments at the 2014 World Cup amid fears that they would not be paid otherwise. Wembley Stadium, world-leading salaries and a state-of-the-art football center do not come cheap and the money has to come from… Read more

UK Bookmakers hedge bets with consolidation

MarketLine

July 25 2016 saw the latest move towards consolidation in the UK gambling industry as online bookmaker 888 Holdings Plc (888) and casino operator The Rank Group Plc (Rank) approached longtime incumbent William Hill Plc (William Hill) about a potential merger. The merger would create one of the largest gambling groups in the world and the share prices of all three protagonists responded well to the announcement. UK takeover rules dictate that 888 and Rank now have until August 21 2016 to submit a formal offer. This is somewhat of… Read more

Sports Direct: Working conditions scandal fallout must be managed to minimize damage

MarketLine

Recent revelations about Sports Direct’s working practices have been largely made via exposé reporting from The Guardian. Secret filming in the company’s Shirebrook warehouse led to claims of a culture of fear, pay of less than the national minimum wage, unpaid after-hours work, and questionable punitive practices. This was then followed by written reporting and interviews with workers, both from the warehouse and from stores. Although terminology like ‘Victorian workhouse’ and ‘Gulag’ is sensationalist and unwarranted, Sports Direct was forced to respond to the claims in a bid to limit… Read more

UK Bookmakers hedge bets with consolidation

MarketLine

July 25 2016 saw the latest move towards consolidation in the UK gambling industry as online bookmaker 888 Holdings Plc (888) and casino operator The Rank Group Plc (Rank) approached longtime incumbent William Hill Plc (William Hill) about a potential merger. The merger would create one of the largest gambling groups in the world and the share prices of all three protagonists responded well to the announcement. UK takeover rules dictate that 888 and Rank now have until August 21 2016 to submit a formal offer. This is somewhat of… Read more

Corporate Sponsorship: Companies hypersensitive to damaging controversies

MarketLine

When a company is giving serious thought to sponsoring an event or club, or signing an individual to a costly endorsement contract, it takes several factors into consideration. The benefits that a company is seeking by entering into such arrangements are namely revenue growth, an improved corporate image, and increased brand equity as a result of greater consumer awareness. This is a double-edged sword however, as scandals involving sponsored celebrities or organizations can reflect badly. In many instances, there is no obvious link between the sponsor and the sponsored party…. Read more

WWE Inc: the NXT big thing?

MarketLine

WWE is the largest wrestling promotion globally, and listed on the New York Stock Exchange. Its recent financial performance has seen revenue and net income grow, with growth across most segments. In physical figures however the company’s TV ratings and live event attendance is down, with its key demographic of older males alienated by the company’s ham-fisted approach to mainstream appeal. One way the company has won back some wayward fans is the NXT brand, available exclusively on the WWE network. The successor to the Florida Championship Wrestling developmental territory,… Read more

The Olympic Stadium and West Ham’s deal of the century

MarketLine

The Olympic Games was held in London in 2012 much to the joy of the majority of the British public. After an arduous bidding process, the London delegates overcame the bid from Paris and scenes of jubilation from famous sports personalities and members of the royal family were filtered around the world. The Olympics is viewed as a festival of sporting accomplishment and it requires a huge investment from the government, and in turn, the people of the nation in which the event is being hosted. Once the bid was… Read more

BT Sport and UEFA: Poor European football viewing figures continue to cause concern

MarketLine

BT turned up the pressure on its rival Sky in November 2013 when it announced that it had acquired the rights to become the exclusive UK broadcaster of the UEFA Champions League from 2015. The Champions League is the pinnacle of European club football and the presence of clubs such as FC Barcelona, Bayern Munich, Manchester United, and Real Madrid ensures that there is great global interest. The competitions final is now the worlds most-watched sporting event, attracting a global TV audience of around 180 million in 2015. By way… Read more

Under Armour issues new shares, underlying concerns persist

MarketLine

On March 16, 2016, Baltimore-based performance apparel giant Under Armour announced it was to issue new stock in the form of new Class C shares. The new shares, which do not carry voting rights, became ‘live’ on April 8, effectively halving the share price. These shares are traded under the ticker UA:C, while the Class A shares continue to float under UA on the NYSE. Both classes of these openly-traded shares exist alongside the company’s Class B shares, all of which are beneficially owned by founder and CEO Kevin Plank,… Read more