Last Week Today: August 2 – August 8, 2021 Sponsorship News
This is part of our "Last Week Today" series that includes a weekly roundup of the past week's most exciting and industry-altering news. Check back on our blog every week for updates! These stories cover sponsorship news for August 2 – August 8, 2021.
Nation Going Live Boosts Live Nation
After a long, dark year for the event ticket industry, Ticketmaster, the parent company of Live Nation, is seeing exponential revenue growth in 2021 as fans clamor to get back to games and concerts. With year-over-year revenue increases in Q2 2021 of over 650%, being the primary ticketing system for the NFL, NHL, and NBA has been a big reason for this turnaround. While it remains to be seen how the Delta variant will impact events this fall and winter, we are already seeing vaccine or testing requirements being put in place to help ensure the safety of attendees looking to cheer on their favorite athletes or musicians in person.
Team Values Not Fazed by Pandemic
While teams didn’t have fans in 2020 and lost money because of it, the pandemic year did the opposite to the value of teams, especially in the National Football League. In a year when most NFL stadiums sat empty during games, the average team value rose almost 15% to around $3.5 billion. Much of this is due to the NFL’s recent agreements in the new media space with streaming (and financial) powerhouse Amazon. One can only expect that the league is expecting a windfall of revenue as betting regulation continues to become less of an issue, opening the door for new sponsors and in-stadium betting.
Conference Shake Up Rattles Financials
The Big 12 is in for big losses once the Universities of Oklahoma and Texas leave for the SEC in a few years. A recent report showed that the loss of the two football powerhouses could impact television revenue for the Big 12 by 50%. While the move by the Sooners and Longhorns is inevitable, the main question is what decisions will the Big 12 make over the next few years to mitigate that negative financial impact? Rumors are of the Big 12 is interested in combining with the Pac 12, (a conference that has experienced their own recent media revenue shortcomings) are already circling. Let the era of college super-conferences begin.
Liberty Rides F1 to Record Revenues
As the media rights home of the increasingly popular Formula 1, along with SiriusXM, Liberty Media has seen record revenues during the first half of 2021. In Q2 alone, Liberty recorded revenue of around $2.8 billion, a number that was closer to $1.9 billion in 2020. Formula 1 has been the major catalyst for this increase as the ‘Drive to Survive’ Netflix series continues to introduce more global fans to the sport. The year-over-year Q2 jump from $24 million to $501 million in revenue tells the story of the rapid growth in this sector of motorsports. As if the year couldn’t start any better for Liberty, they’ve also seen a huge increase as the broadcasting home of the Atlanta Braves.
Be on the lookout next week for the usual round-up of sponsorship news.