MLS kicks off, DraftKings, YouTube TV’s future: Sports Report
From MLS, to the NFL to DraftKings (DKNG), to YouTube TV streaming rights and Formula One, it’s been a busy week in the world of sports. This week on Yahoo Finance Sports Report, host Joe Pompliano takes a look at some of this week’s biggest headlines in the sports business world that you and your portfolio need to know. New York Giants are looking to sell minority stake in franchise Though the Super Bowl is long over, there’s plenty still happening off the field in the NFL. The New York Giants announced they are looking to sell up to 10% of the team. If the deal goes through, they will be joining the Buffalo Bills and Miami Dolphins in this new trend of NFL teams accepting private equity investors. Back in August 2024, the NFL voted to allow private equity funds to buy stakes in football teams. Forbes most recently valued the Giants at $7.3B, making them the fourth most valuable team in the NFL. DraftKings Q4 earning results In its fourth quarter earnings results, DraftKings announced it generated $1.39B in fourth quarter revenue. The gambling company also shared their iGaming revenue for the first time in company history. Pompliano breaks down DraftKings profits brought in via iGaming versus sports books and why the revenue from both are so significant. YouTube TV and the fragmentation of sports media Last week, YouTube TV was embroiled in a carriage dispute with Paramount Global (PARA). The conflict saw most of Paramount’s channels go dark on the Google (GOOG, GOOGL)-owned streaming service, just weeks before the start of March Madness. Though an extension agreement was made, this isn’t the first time YouTube TV has faced a carriage dispute with a network. The same thing happened in 2021 with Disney (DIS). Pompliano takes a closer look at YouTube TV and how the digital streamer’s business practices, price hikes, and rising costs have further added to a fragmentation of sports media rights. ESPN exits F1 US media rights deal The future of Formula One media rights in the United States remains in flux after it was announced ESPN will not renew its deal with the racing league after the 2025 season. Currently F1 receives $90 million per year from ESPN, but is looking for a higher annual fee. Netflix (NFLX) and NBC both have eyes on the league, so it will be interesting to see where negotiations net out with the racing giant. Plus, San Diego FC CEO and founding partner Tom Penn stops by the show to talk about the team’s inaugural MLS season, which kicks off its first game this weekend. Yahoo Finance Sports Report with Joe Pompliano, a vodcast brought to you by Yahoo Finance and Yahoo Sports, looks beyond the latest sports business headlines, analyzes all the need-to-know news - the teams, trades, and billion dollar deals - so you and your portfolio will win BIG. Yahoo Finance Sports Report is developed and produced by Lauren Pokedoff.
