Credit ratings firms are optimistic about pro sports leagues, the NBA season will start Dec. 22, Peloton sprints into a new fiscal year, and two major video game companies report earnings.
Moody’s Investor Services suggests most municipally-owned stadiums have liquidity to survive the revenue losses from the pandemic. Fitch Ratings is optimistic the setbacks are temporary and are mitigated by current and future media rights deals.
MLB signed a 7-year, $3.75 billion deal with Turner in September — an increase of roughly 65% over its previous agreement — showcasing the potential safety net that future contracts could provide.
The NBA will start the 2020-21 season on Dec. 22 with a 72-game schedule. The National Basketball Players Association voted to approve the season plan following discussions with the NBA’s Board of Governors yesterday.
Beginning the season before Christmas Day and finishing the postseason prior to the start of the Tokyo Olympics in July could be worth an additional $500 million to $1 billion to the league and players.
Arena suites reportedly could be open to fans at 25-50% capacity for the 2020-21 season tip-off, based on local regulations. Up to $4 billion is at stake if fans are limited at games next season.
WHITE PAPER
Learnings From NFL Fans In A Unique 2020 Season
Front Office Sports has teamed up with Satisfi Labs, a Conversational AI platform that creates custom and conversational answer engines for experiential brands and destinations.
Together they examined the start of the NFL season and what insights can be gathered based on fan behavior and questions directed towards their favorite teams.
Peloton reported $757.9 million of revenue in the first quarter of its 2021 fiscal year, up 232% compared to last year.
A 137% year-over-year jump in connected fitness subscriptions helped boost revenues past projections. Peloton revised its 2021 fiscal year estimates upward for revenues and connected subscribers to $3.9 billion and 2.17 million, respectively.
Peloton shares are up 343% year-to-date, with the company now closing in on a $40 billion market cap. In a recent survey, 19% of young adults said Peloton is a must-have brand.
Video game giants Take-Two Interactive and Electronic Arts both reported a decrease in revenue in their latest quarters yesterday.
Take-Two’s digital sales climbed 16%, which drove a 38% jump in profit, despite an overall drop in revenue. Electronic Arts reported a 15% decrease in revenue, but net bookings for the past 12 months were up 8% to $5.577 billion.
A recent revenue estimate projects the video game industry will finish the year up 20% to $174.9 billion, in part because of the pandemic boosting gaming.
2020 Video Game Forecast by Sector:
Mobile — $86.3 billion
Console — $51.2 billion
PC — $37.4 billion
SPONSORED
How the Orlando Magic Approached the Safe Return to Sports
In Orlando, the health of every NBA athlete, trainer, coach and staff member was closely monitored inside the NBA bubble.
AdventHealth, the official health care provider of the Orlando Magic, played a major part in this process, advising Magic team staff and providing guidance throughout the playoffs. Read on to learn more.
Latest On FOS
Latest On FOS
ESPN announced the biggest round of layoffs in the company’s 41-year history yesterday. The job losses will hit behind-the-scenes staffers engaged in the remote production of hundreds of collegiate and pro game telecasts the hardest.
