🔊 The Future Of NFL Viewership Is Here

📰 TOP STORY
The Rundown On The NFL’s Partnership With Cosm

• This week, the NFL announced a partnership with Cosm, an immersive, shared-reality entertainment venue, to broadcast select games in shared reality at the company’s venues throughout the remainder of the 2024 regular season. The deal includes all Thursday Night Football games on Prime Video, NBC’s Sunday Night Football matchups, Monday Night Football fixtures on ESPN, and select games shown by Fox. Although the company did not disclose the financial details of this deal, it’s a significant step for Cosm and the future of fan engagement.

First, what exactly is shared reality? Shared Reality is an experience that bridges the virtual and physical worlds by merging visuals with the energy of the crowd and an elevated food and beverage service. Cosm is by far the industry leader in this regard. Currently, the company is valued at over $1B and has raised $250M+ to build out arenas across the US.

A few other things to note:

• Currently, Cosm has live venues in Los Angeles (Hollywood Park) and Dallas (Grandscape) and has plans on building a third venue in Atlanta within the next year

• The company’s experiential venues feature large-scale 87-foot-diameter 12K+ LED domes, enabling fans to watch live sports action in a completely new and different way

• Cosm’s domes fit about 700 people with the average ticket price ranging between $22 and $127 (not including food or beverage). They use a dynamic pricing model, similar to concerts or live sports

• The addition of live NFL games adds to Cosm’s already extensive slate of live sports programming including official partnerships with the NBA, UFC, ESPN, NBC Sports, TNT Sports, FOX Sports, Prime Video, and more

Why is this important?

Every sports organization is looking for innovative ways to engage consumers and leveraging technology such as digitalized playing surfaces, personalized content, and stadium interactivity to do so. Immersive entertainment, whether completely virtual, augmented, or shared, is another way leagues can bring a fresh and unique experience to fans. These days, younger fans are more reluctant to attend live games for reasons including prices, parking, crowds, etc… But if they can experience sporting events at a state-of-the-art venue that’s more seamless, less crowded, and fairly priced, that sounds like a much more viable option. I believe Cosm’s biggest challenge will be technological cost and scaling venues, but there’s no question they're on to something major. Would love to hear if you’ve been to one of their venues or are planning on it.

💰 MONEY MOVES 
Two Circles Is On A Buying Spree

• Two Circles Acquires Spring Media. Two Circles, the data-driven sports and entertainment business announced an agreement to acquire Spring Media Group, an international full-service sports media agency. Spring Media’s media rights, live production, and streaming expertise will help bolster Two Circles’ offering, enabling clients to expand their audiences. Financial terms were not disclosed (more here).

• Arctos Is in Talks to Buy Minority Stake in the NFL’s Buffalo Bills. Investment firm Arctos Partners is in talks to acquire a minority stake in the Buffalo Bills, according to people with knowledge of the matter. The firm, led by co-managing partners Ian Charles and David O’Connor, is discussing buying a stake from controlling owner, billionaire Terry Pegula. A transaction hasn’t been agreed to and it’s possible another suitor, or suitors, could emerge (more here).

• Seattle Storm Tops The WNBA As The Most Valuable Franchise. Purchased for $10M from the Clay Bennett group that moved the Sonics to Oklahoma City, the team now tops the WNBA with an estimated value of $151M despite being in a smaller market (more here).

• Jeff Lurie In Talks To Sell Stake Philadelphia Eagles To Susan Kim Family. Philadelphia Eagles owner Jeff Lurie is in discussions to sell a minority stake in the NFL franchise to the family behind Amkor Technology, according to Bloomberg. The deal is yet to be finalized but it reportedly values the Eagles at $8B or more, which would be a record for an NFL sale. It was reported in June that Lurie, who bought the Eagles in 1994 for $185M, was considering the sale of a minority stake in the team and was working with merchant bank BDT & MSD Partners to canvass interest from prospective suitors (more here).

• NHL Franchises Reach Record High Valuations. Sportico recently released the 2024 NHL team valuations. The Toronto Maple Leafs topped the list, with an estimated value of over $3.5B. Also, for the first time in the history of the NHL, there were eight franchises valued at $2B or higher. Joining the Maple Leafs in the $2B+ club were the New York Rangers, Montreal Canadiens, Boston Bruins, Los Angeles Kings, Chicago Blackhawks, Edmonton Oilers, and Philadelphia Flyers (more here).

• Ida Sports Raises $2M Round. Ida Sports, a sole cleat brand that offers shoes exclusively designed for women, has received a $2M investment as it looks to grow its production of cleats designed for women and girls. Michele Kang’s Kynisca led the seed round, which also included participation from Elysian Park Ventures, Firebird Ventures, and Tipt Ventures. The new funding will be invested in product creation and brand marketing efforts. Ida also plans to launch a new initiative that incorporates feedback from female athletes into the design of the shoes (more here).

 🤝 PARTNERSHIPS
The MLS Is Bringing Collectible Moments To Fans

• MLS, MLSPA Partner With Sweet To Introduce MLS QUEST. Major League Soccer and the Major League Soccer Players Association (MLSPA) have partnered with Sweet, a leading digital collectible platform, to launch MLS QUEST, an innovative new way for fans to collect their favorite MLS moments, follow their favorite players and teams, and earn exclusive MLS rewards (more here).

• TCU Partners With Betterguards. Betterguards, a company pioneering ankle brace injury prevention and recovery tech, announced an official partnership with TCU Athletics and its Sports Medicine program. This collaboration provides student-athletes with access to Betterguards’ suite of products (more here).

• Catapult Partners With Multiple Rugby Organizations. Catapult, a sports performance analytics company, announced several partnerships with various rugby organizations including England’s Rugby Football Union (RFU), the Premiership Rugby, and Premiership Women’s Rugby. Catapult will make its full performance analysis suite available to the England men’s and women’s national teams, and Premiership Rugby and PWR teams. The tools will help practitioners and coaches make informed choices on strategy, athlete performance, and injury management (more here).

• Purdue University’s Ray Ewry Sports Engineering Center Forms Partnership With Sports Tech HQ. Purdue University is teaming up with Sports Tech HQ in the center’s new home in Speedway's US headquarters of Dallara, an internationally recognized motorsports manufacturer. Purdue and Sports Tech HQ plan to capitalize on the momentum of the sports tech sector. They are combining their efforts to attract industry leaders and collaborators to Indiana’s capital city (more here).

🔊 ATHLETES & OTHER SPORTS NEWS
The Key To Investing In Sports

• SURJ CEO Danny Townsend On The Key To Sports Investing. SURJ CEO Danny Townsend says patience is key to early-stage investment in sport. He spoke to Bloomberg's Joumanna Bercetche at the Future Investment Initiative forum in Saudi Arabia on SURJ sports strategy and the opportunities they’re most interested in (more here).

• How Bruin Capital’s George Pyne Capitalizes On Sports. In this episode of The Deal, Alex Rodriguez and Jason Kelly talk with Bruin Capital Founder and CEO George Pyne about how he reinvented institutions like NASCAR and IMG before pivoting to investing. Pyne explains what he looks for in a founder, why the risk-reward ratio is important in deal-making, and the opportunities he sees for growth in college sports (more here).

• The US Sports Boom Is A Unique Opportunity For European Investors. In an age of tech disruption, the value of live experiences is skyrocketing and sports remains a cornerstone of entertainment and human connection. As US and Middle Eastern investors continue to pour money into European sports, it’s time for European capital to explore the lucrative opportunities in the booming US sports industry. Here is why investing across the Atlantic could be the game-changer European portfolios need (more here).

• Morgan Stanley Is Launching An Investing Index Tied To Sports Leagues. Morgan Stanley is introducing a new portfolio for investors tied to the most prominent sports leagues called the Parametric Custom Core Sports League strategy. The portfolio, aimed at high-net-worth fans and individuals, will allow them to invest in a curated index of companies with strong sponsorship, media, and advertisement ties to the most prominent sports leagues. It will carry a minimum investment of $250,000 (more here).

• Data-Obsessed Entrepreneur Builds Tech To Help Golfers. Golfers are hungry for performance data. They want to know how far they hit each club, their playing tendencies, and where their strengths and weaknesses are. That’s why golf tech brands like Trackman, TopGolf Tracer, Arccos, and Shot Scope are excelling (more here).

• Women Athletes Are Reshaping College Sports’ Financial Landscape Through NIL Success. NIL has transformed the landscape of collegiate athletics, with women athletes emerging as unexpected leaders across these new opportunities. While initial assumptions suggested men's revenue sports would dominate NIL earnings, the reality has proven far more complex and promising for women's athletics (more here).

• Brera Holdings Provides Insight Into The Changing Landscape Of Sports Ownership Trends Fueling Growth. The rise of multi-club organizations, such as Red Bull, Eagle Football, City Football Group, Qatar Sports Investments, RedBird Capital, and the Friedkin Group is transforming sports ownership. The sports ecosystem has experienced a vast transformation over the last decade. Investors today can not only engage with the sports landscape but also actively shape its evolution, with the emergence of sports-dedicated funds alongside private equity, sovereign wealth funds, and family offices (more here).