Edited by Tanner Simkins
In the latest edition of Rick Horrow's Sports Business Podcast, Rick interviews PepsiCo Vice President of Marketing Todd Kaplan and takes you through the biggest sports business stories of the week.
1. Sports investor Bruin Sports Capital received $600 million more to spend. According to the New York Times, Bruin Sports Capital is a sports investment and management company that invests in the technologies of media, marketing, and data surrounding sports. After raising $600 million from two even larger investors – CVC Capital Partners and the Jordan Company – Bruin Sports will be able to expand its portfolio of investments, which already include data analytics, media and streaming companies, and a fledgling drone-racing league. Currently, Bruin, led by Sport Business Handbook contributor George Pyne, has nearly $1 billion invested, including significant stakes in six companies across the modern sports landscape, from sports media start-ups such as The Athletic to a live-event provider selling high-end trips to events like the Super Bowl and the NFL draft. Overall, Bruin Sports Capital's guiding philosophy is that people under 40 watch and consume sports and media in radically different ways from their parents – and this is likely how the strategic company will invest its newly-acquired $600 million: toward attracting future generations of sports and tech fans.
2. The NBA altered its bylaws prior to the start of the 2019-2020 season to allow teams to sell sponsorship packages outside of the U.S. and Canada for the first time. League rules previously prevented teams from participating in any ad campaign or sponsorship event outside of their home market. However, NBA chief innovation officer Amy Brooks told JohnWallStreet that the companies currently participating in the league's jersey patch program – two-thirds of which have an international presence – indicated that the time was right "to grow [the NBA] brand and our partners' brands globally." Loosening bylaws surrounding international marketing rights should help the league grow revenues and connect with fans in other regions. The Washington Wizards were the first NBA franchise to take advantage of the rule change, signing an agreement with Japanese tech conglomerate NEC. The Wizards made Rui Hachimura the first Japanese player ever selected in the first round of the NBA Draft in 2019.
3. Airbnb is set to announce a global sponsorship with the International Olympic Committee running through the Los Angeles 2028 Games, according to SportsBusiness Journal. The deal would represent a significant shift in the home-sharing platform's sports marketing strategy as Airbnb prepares for its IPO in 2020. According to SBJ, the deal would focus on Airbnb's "experiences" strand, which allows hosts to offer access to their hobbies, skills, or expertise as part of offering out their homes for rent. The arrangement is not intended to infringe on the hotel and hospitality business that Olympic organizers require to stage the Olympics. Recent partners joining the IOC's global TOP program have made significant investments, with a joint Mengniu Dairy and Coca-Cola deal back in June being valued at $3 billion over 11 years. Currently, 13 companies comprise the TOP program, getting category-exclusive rights to every Games, the IOC, and national Olympic committees.