Steve Cannella

The cutthroat power struggle within US Soccer is plunging the sport into a downward spiral, with MLS at the forefront of the controversy. Accusations of MLS deliberately sabotaging the USL in a bid to cling onto its dominance are rife, exposing a desperate grasp for power. This calculated move by MLS comes as no surprise, considering its ongoing assault on the USL's modest strides in lower league soccer. The recent demise of USL San Diego serves as a grim reminder of the ruthless tactics employed by MLS to crush any potential competition. Such ruthless maneuvers not only stifle the growth of the sport but also erode the very essence of healthy competition that soccer thrives on. Instead of nurturing an environment of fair play and rivalry, MLS's actions reek of a monopolistic agenda aimed at controlling markets, ultimately tarnishing the integrity of the beautiful game. https://lnkd.in/eEmjB5db

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The Varsity 1. It seems increasingly possible that ESPN’s decision to sublicense games to Warner Bros. Discovery might end up being scrutinized by regulators—for reasons pertaining to Venu, f.k.a. “Spulu,” the streaming sports joint venture between Disney, WBD, and Fox. 2. Operating on the theory that WBD is on the outside looking in with the NBA, many will suggest that WBD should sell its rights for the 2024-25 season to NBC, allowing the network to get back into the NBA business a year earlier than planned. But I don’t expect it to happen. 3. Cathy Englebert on Pat McAfee/Stephen A.: “Being in the mainstream conversation is a good thing. This is what comes with the rise of being a growth stock..." 4. The most notable detail of Diamond's bankruptcy hearing this week affair was the NBA’s lawyer pushing back on a proposed six-week delay. The league, which was once among the friendliest with Diamond, has truly lost its patience with the R.S.N. company. 5. It’s one thing to create a marketing campaign around your biggest sports events, like the Super Bowl or World Series. But Fox Sports is preparing a marketing blitz around a couple of MLB regular season games and a Triple Crown horse race this Saturday. Players of the week: Gary Bettman: If you're going to gave Florida and Edmonton in the Stanley Cup Final, you should have them in the third year of a seven-year deal. (The NHL has already enjoyed a rollicking ratings postseason.) Jimmy Pitaro: If both the NBA Finals and the NHL Stanley Cup Finals go to seven games (I know, a big if…), ABC will feature a big-time sporting event in primetime for 14 of the next 19 nights. Down to the J.V. Eddy Cue: Tomorrow night should have been a huge boon for Apple TV+, which had exclusive rights to the Dodgers-Yankees game. But, Apple is allowing YES Network and Spectrum SportsNet to simulcast the contest in New York and Los Angeles, respectively. Plus, the NBA may be a league with great stars and incredible content, but it’s also benefiting from the fact that there won’t be any other major rights to acquire for the foreseeable future. Other than the UFC, whose deal with ESPN expires next year, there really won’t be any big-time sports rights up for renewal until 2029, which is when the NFL is expected to exercise an out in its contracts. https://lnkd.in/eudYuQak

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🚀 New Analysis Alert: ESPN Bet’s Rocky Start 🚀 Penn Entertainment’s ambitious venture into the U.S. sports betting market with ESPN Bet has been a rollercoaster. From promising initial market reactions to financial challenges and fierce competition, ESPN Bet’s journey is packed with insights and lessons. 📉 Our latest in-depth analysis covers: • The ambitious launch and initial market performance. • Financial struggles and operational hurdles. • Key market share benchmarks and strategic investments. • Long-term viability and what the future holds for ESPN Bet. Read the full story and discover the challenges and opportunities that lie ahead for ESPN Bet in the U.S. market. 📊

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2024 may be shaping up to be the year of the sports-betting scandal, as my colleague Geoff Weiss previously wrote. Yet, there could be some good that comes from it. It's a sign that: "Unfortunately, the system is working," said Sara Slane, who works with teams and other sports properties on betting through her firm Slane Advisory. "It's flushing out when people are betting that should not be betting." Given the growing popularity of gambling and the propensity for athletes to engage in it, it's hardly surprising that we're seeing more betting scandals in sports. But with new technology and practices being rolled out to track and thwart it, along with a spate of high-profile controversies that have made examples of players who break the rules, this year could be the high-water mark for gambling controversies and not the new norm. I spoke with experts, including Matthew Holt at IC360 and Jim Brown at Sportradar, about how the sports world is reckoning with the impact of sports betting's growing popularity and working to stop players from placing potentially career-ending bets. Story in Business Insider:

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This is further validation that working with facilities like ours is good for brands. At the Erie Sports Center we have the added bonus of owning 10 sports clubs with 800-1000 male and female athletes, camps, clinics, leagues, tournaments and events. We also understand the power of activation and ROI for brand partners. We even build some of our corporate partners benefits into our fees to guarantee uptake. We provide free sport to thousands of kids in the community and space for schools and not for profits to fundraise. Sports families for the most part have disposable income and are loyal to brands that support their kids. They are also easy to communicate with regularly. All these kids buy cars, equipment, phones, computers, clothes and fast food. Our location makes the Erie Sports Center a regional brand opportunity as well with 46 tournaments and multiple leagues with teams from Pittsburgh, Cleveland and Buffalo coming in regularly. We reinvest a lot of our corporate sponsorship back into new facilities and free sports clinics and scholarship programs for kids to make sport accessible. When asked how often consumers will buy from companies sponsoring a sport or sports organization they like, 66% responded that they are more likely to purchase from sponsors they like, up from 59% in 2022. Moreover, 20% of respondents have chosen to do business with a brand only because it sponsors a sport or sporting organization that they like, and 28% have recommended a sponsoring company of a sport/organization they like to a friend. #sports #sponsorship #business #eriesportscenter #marketing #advertising #youthsports #eriebusiness #eriecounty #scholarships

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The Power of Athletes: Exploring Player Associations and Transfers Discover how athletes hold the power in their hands, with the ability to transfer multiple times and sell themselves to the highest bidder. Delve into the nature of this phenomenon and its impact on the sports industry. #AthletePower #PlayerAssociations #TransferMarket #CollegeSports #SportsIndustry #AcademicEligibility #HighestBidder #AthleteEmpowerment #SportsContracts #PlayerTransfers

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In honor of tonight's NFL Draft, sharing this fun article looking at the best quarterbacks picked in each round since the draft went down to a seven round format in 1994. Going through the list the stories just leap off the page. High profile busts, unexpected successes, great characters and legendary rivalries spanning decades. Makes it so clear why sports is such a great source for outstanding storytelling. And also, interesting to see how great quarterbacks can come from anywhere. While the first round is stacked with great picks, rounds six and seven hold up pretty well too - Tom Brady and Brock Purdy. In the modern NFL, prospects are fully scrutinized and yet there are still high profile misfires and completely unexpected careers like Brady's and Purdy's. Getting recruiting and hiring right is critical in any business and perhaps never more complex than today. Did the Patriots and Niners know something the rest of the league didn't or did they just get lucky? And if they did figure out something, what can we learn from their approaches to the talent evaluation process? PS - Go Giants! https://lnkd.in/eGwX6rDY

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As Major League Soccer (MLS) strives to make its mark on the global football stage, critical concerns have emerged regarding its monopolistic practices and the alarming trend of overcommercialization, both of which have exacerbated fan disengagement, underscored by abysmal viewership numbers. Recent valuation data underscores the significant valuation disparities between MLS teams and their European counterparts. With an average EV/revenue multiple of 9.8x among 20 listed teams, MLS teams appear to outshine those in the Premier League and Europe's Big 5 leagues. However, this apparent financial success is marred by the stark reality that European clubs like Eintracht Frankfurt and Aston Villa Football Club command considerably lower multiples, exposing deep-seated flaws in MLS's economic model. Upon closer examination, it's evident that 10 MLS teams flaunt multiples exceeding 10x, exemplified by the New York Red Bulls at 11.4x and City Football Group's New York City FC at 12.4x. This discrepancy raises questions about the valuation metrics within the MLS, especially when juxtaposed with European counterparts like Eintracht Frankfurt and Aston Villa Football Club, which are valued at significantly lower multiples, as low as 1.9x and 2.3x, respectively. The roots of this valuation divide lie in various factors, including the implementation of "relegation discounts" on European team multiples, coupled with multiple premiums associated with MLS teams' market sizes compared to European cities. Despite these economic accolades, MLS grapples with a concerning issue of fan disinterest, manifested in dismal viewership figures across the United States. The absence of a open system casts doubt on the league's commitment to fostering genuine sporting competition, as the MLS franchise-based teams maintain their status irrespective of on-field performance.

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Las Vegas' path to being "sport capital of the world" includes attracting major sports franchises. Here’s my newest story on how Las Vegas is going from Sin City to the sports and entertainment capital of the world:

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It is finally NFL Draft week and here is my final mock draft prediction for the New York Giants in my latest article for FanSided GMEN HQ https://lnkd.in/dBkd3RpS

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In the past, Netflix has hedged its investment in live sports. But lately the streaming giant has been taking more and more steps into the arena: a boxing match between Mike Tyson and Jake Paul, a deal to stream two NFL games on Christmas. Management has said live programming creates “cultural moments” relevant not only to viewers, but to advertisers, a new revenue stream that Netflix hopes to scale. Netflix may even have a leg up on its sports streaming peers, according Brandon Katz, an entertainment industry strategist at Parrot Analytics. The company’s huge content repository can help retain viewers who might have subscribed just for live sports, he said, and Netflix’s knowledge of its niche audiences can really strengthen targeted advertisements. “I think there is still a strong, strong affinity for the platform in the long term — I believe advertisers see the upside,” he said. “I believe they see Netflix has, for better and for worse for the industry, managed to overcome every challenge and every setback that’s been thrown at it as an original content producer.” Read more about Netflix and the competitive world of sports streaming in my latest story for CNBC: https://lnkd.in/eZmTfuGW

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In the half-dozen years since the Supreme Court in 2018 effectively allowed legal sports betting in all states, 38 of them and D.C. have to some extent authorized wagering — often with the express purpose of stabilizing state finances by taxing the new business. Sure enough, gambling on games has exploded, mobile sports betting apps have proliferated and Americans are wagering — and mostly losing — increasing amounts of money. They bet nearly $120 billion in 2023, netting the gambling industry close to $11 billion in revenue. And at first glance, it would appear that states are raking in the expected rewards. New York brought in the most in gambling tax revenue last year with $876 million, a 24 percent increase over 2022. Maryland brought in $64 million, and Virginia brought in $74 million. A closer look at the numbers, however, shows that sports betting might not be quite the financial panacea many were expecting — even as the unintended consequences become more evident. States, including big ones such as California and Texas, that are still deciding whether to join the sports betting frenzy should take note — and proceed with caution. https://lnkd.in/edb3rSst

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In last week's SBJ Tech newsletter, I learned more about the new partnership between The Kraft Group & Affiliates | Kraft Sports + Entertainment and Team D3. They have built (and continue to enhance) digital twin versions of Gillette Stadium and Patriot Place. We learn more about the value of the replicas here: https://lnkd.in/e87Dw7xg

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Roger Goodell continues to try and push for expanding the NFL schedule from 17 to 18 games. It's not surprising he continues to push on this given the potential boosts to league revenue. But, the players have a pretty significant bit of leverage for the next five years. As former agent Joel Corry noted on X, Article 31 of the CBA specifically states that, "The League and/or Clubs shall not increase the number of regular season games per Club to eighteen (18) or more games." The league would have to engage the players in a negotiation to make a change. Side agreements can be negotiated during the term of the CBA (which expires in 2030), but the owners cannot unilaterally impose the schedule change. How much are the owners willing to give up to get the extra game, and what would the players want? If I'm the players, maybe I start with no more franchise (and transition) tag, no more 5th year rookie option, and 3 years needed for free agency instead of 4. Or maybe simply demand a larger percentage of the overall revenue pot. There's a lot of ways to go if the players are willing to put up a fight. #sportsbusiness #nflcba #sportslabor #nflschedule https://lnkd.in/efAt29nR