Hey Sports Tech Fans,
It seems like crypto and blockchain are taking over the sporting world at the moment.
Last week I was talking about NFT collectibles and the boom we have seen there in the sports world, the NBA’s Topshot is at about $250 million in sales. (Bleacher Report are launching their own, story below) and this week the Dallas Mavericks are going to accept Dogecoin for tickets and merchandise.
The Mavericks have accepted Bitcoin and Ethereum for over a year now and it seems Mark Cuban is a big believer in the asset class.
It is a fantastic way for him to acquire crypto coins for the Mavericks balance sheet in a similar move to Tesla and Elon Musk but $1.5 billion of Bitcoin last month. It is a great way to acquire the asset class with no cash outlay, effectively forgoing the dollar for crypto coins.
If the coins are worth more in the future than they are now, then that will be a great investment long term, but obviously its a very big if.
But the strategy is very interesting as it allows the team to acquire the asset without having to pay for them.
It will obviously have an impact on cash flow but the likely numbers of people actually using crypto to pay for tickets and merchandise will likely be very small.
Will other teams and sports adopt this strategy? It is a great way to diversify by simply flipping a switch and allow your fans to pay with crypto if they have them.
The talks of the new NFL broadcasting deal are heating up with a lot of reports circulating after the last few weeks stories of the size of the deals potentially being double the current value. Amazon seem to be well in the mix with a WSJ story saying they are in talks to carry Thursday Night Football games exclusively.
They currently spend about $100 million a season to show them in a non exclusive deal and the article suggests they could be outlaying as much as $1 billion for exclusive rights.
Amazon have been aggressive in acquiring sports rights around the globe in recent years but this would be a major signal of intent.
I would expect them to use Twitch as a platform for simulcasting these games as it has done with its current deal with the NFL.
The new TV deals with all broadcasters and streaming players are likely to be for an 11 year period which is a very long time when you compare it to the other football and European Leagues approaches of shorter contracts of up to 5 years on average.
The deals could be announced as early as next week so we could have official deals to report on for next week’s newsletter.
Have a great sporting weekend,