December 8, 2022


Sports Really Satisfies

FOS PM: F1 Gets $19M from Las Vegas

Rachel Heck has added another accomplishment to her already impressive list. The standout Stanford golfer is Nike’s first-ever Nike Golf NIL athlete. Heck, who won the NCAA Championship last year as a freshman, is the No. 3-ranked amateur in the world.

Kirby Lee-USA TODAY Sports

The Las Vegas Convention and Visitors Authority has committed $19.5 million over the next three years toward Formula 1’s Las Vegas Grand Prix. 

The LVCVA has partnered with Liberty Dice Inc. for the Las Vegas Grand Prix, which will run its inaugural race in November 2023 on a temporary 3.8-mile course on the iconic Las Vegas Strip. 

  • The commitment is one of the largest by the LVCVA.
  • Payment will be made using the board’s general fund.
  • Its general fund consists primarily of room tax revenues from hotels and motels. 

The LVCVA’s unanimous vote to spend $6.5 million per year to sponsor the Las Vegas Grand Prix follows Liberty Media — F1’s parent company — agreeing to purchase 39 acres east of the Strip for $240 million. The area will be used as the pit and paddock complex for the Las Vegas Grand Prix. 

U.S. Growth

The highly anticipated Las Vegas Grand Prix will mark the third race in the U.S. on the F1 calendar. The Miami Grand Prix was held on May 8 at Hard Rock Stadium, and the United States Grand Prix is set for Oct. 23 at the Circuit of Americas in Austin, Texas.

F1 last raced in Las Vegas in 1982 for the Caesars Palace Grand Prix.

As the Denver Broncos inch toward a sale, the hefty price tag — which could be as high as $5 billion — hasn’t dissuaded at least one well-known name. 

Byron Allen — along with several investors — is one of the few bidders still in the mix, according to NBC’s Denver affiliate 9News.

  • There are reportedly about five groups left after 10 submitted initial bids, but 9News reported that the number could oscillate.
  • Josh Harris, owner of the Philadelphia 76ers and New Jersey Devils, is backed in part by Earvin “Magic” Johnson. 
  • Rob Walton is also reportedly in contention. Harris and Walton both recently visited the Broncos’ facilities.

Los Angeles Dodgers and Lakers part-owner Todd Boehly — who just purchased Chelsea FC for $5.2 billion — could still buy the team, but that appears more unlikely.

Stadium Questions

Team president Joe Ellis has said that building a new, potential $2 billion stadium will “be the No. 1 decision the new owner will have to make.” 

A domed or enclosed facility would allow Denver to host a Super Bowl for the first time.

Christopher Hanewinckel-USA TODAY Sports

Taxpayers will not be on the hook for costs associated with the construction of a new stadium for the NFL’s Tennessee Titans, according to Nashville mayor John Cooper. 

The Titans — valued at $2.6 billion — have planned to build a 1.7 million-square-foot, domed stadium, which is estimated to cost between $1.9 billion and $2.2 billion. Slated to open for the 2026 NFL season, the stadium could also host major sporting events, including the Super Bowl

  • The Adams family, owners of the team, will contribute $700 million to the new facility.
  • Tennessee lawmakers have approved $500 million in bonds for the venue.
  • Metro Nashville Sports Authority will add another $700 million to the state’s commitment.

Mayor Cooper’s willingness to not have taxpayers help pay for the Titans’ new stadium comes amid delays to upgrade Nissan Stadium, the team’s home field since 1999. 

Nissan Stadium was scheduled to undergo several maintenance projects in recent years, but a budget deficit and the global pandemic put plans on hold. 

Long-Term Plan 

The Titans’ current lease at Nissan Stadium requires the city of Nashville and taxpayers to pay for maintenance. Currently, the team is owed at least $25 million in completed repairs.

Even though the Titans are expected to pay nearly double the estimated cost of the upgrades to build a new stadium, the move is considered a long-term financial decision.

  • In The Leadoff, Endeavor bounces back with a $1.5 billion first quarter, La Liga reports a drop in revenue caused by the pandemic, Beachbody experiences rough waters in Q1, and the top 10 esports teams are worth an average of $353 million. Click here to listen.
  • Former ESPN host Maria Taylor has become the first female host of NBC’s “Football Night in America.” Taylor debuted on the show as co-host last year and will succeed Mike Tirico, Dan Patrick, and Bob Costas.
  • Three years after being cast off by the Philadelphia 76ers, Jimmy Butler sent Philly home as the leader of the Miami Heat. Miami extended Butler for four years, $184 million last summer. Meanwhile, the 76ers paid the underachieving Tobias Harris $180 million over five years.
  • Connor McDavid is arguably the greatest hockey player in the world at the moment — and he’s putting in a Herculean effort to overcome his Edmonton Oilers’ deficiencies and will them toward a longer playoff run. Despite McDavid’s accomplishments and record contract, Edmonton has won only a single playoff series with the 25-year-old superstar. Subscribe to Scoreboard for more.

Find out exactly what’s happening in the private markets every week with highlights from our Front Office Sports Pro Deal Tracker.

We carefully monitor both public and private market data for a snapshot of the sports business landscape.

This week’s Pro Deal Tracker highlights: 

  • Team Liquid, operator of an online esports community platform that provides gaming news content to its users, raised $35 million in venture funding in a deal led by Ares Management.
  • Stream Layer, developer of a video engagement operating platform designed to reimagine the media experience through interactive viewing experiences, raised $8 million in venture funding from Las Vegas Sands & Drive by DraftKings.
  • Highlight, developer of a Web3 community membership platform, raised $11 million of seed funding in a deal led by Haun Ventures. 
  • Ness, developer of blockchain games in a mythological universe, raised $9 million of seed funding from undisclosed investors. 
  • Haegin, operator of a game development company intended to offer casual mobile games for everyone, raised $78 million in Series B venture funding from Kakao Games, Netmarble Games, and VNG. 

Try out the full Deal Tracker.

(Note: All as of market close on 5/13/22)

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