FED APPROVES SALE OF CABELA’S CREDIT CARD BUSINESS; ELIMINATES LAST HURDLE IN BASS PRO SHOPS ACQUISITION

The Federal Reserve System has approved the proposed acquisition of World’s Foremost Bank (Cabela’s credit card business) by Synovus Bank, eliminating the last significant hurdle in Bass Pro Shops’ purchase of Cabela’s (CAB). Under the proposed deal, Synovus (SNV) would assume $1.2 billion in deposits, $4.1 billion in non-deposit liabilities and the balance of World’s assets, approximated to total $5.7 billion. Capital One (COF) would take over credit card receivables upon completion of the deal. Back in July, Cabela’s shareholders overwhelmingly voted (78%) in favor of selling the retail business for $4.2 billion. The deal is expected to close by October 3rd.

Howie Long-Short: Cabela’s shareholders are breathing a sigh of relief, as the Fed’s October 3rd deadline was quickly approaching. The company recently reported Q2 profits/earnings, with YOY same store sales down 9.7% and profits down 25% from 2016 figures. Had the deal not been approved, Bass Pro Shops almost certainly would have walked away or demanded a lower sales price.

Fan Marino: There is apparently a trend of teenagers jumping into the large aquariums at Bass Pro Shops. Anything for the Snapchat!

http://www.kgwn.tv/content/news/Bass-Pro-Shops-closer-to-buying-Cabelas-443059603.html

CAPS/WIZARDS TO PLAY AT CAPITAL ONE ARENA; CAPITAL ONE TO PAY $10 MILLION/YEAR FOR NAMING RIGHTS

Capital One (COF) has purchased the naming rights to Washington’s downtown sports arena, formally known as the Verizon Center and will rename the building, Capital One Arena. The deal is reportedly worth $100 million over 10 years, a significant jump from their previous agreement, and now among the most lucrative naming rights sponsorships in the league. Monumental Sports & Entertainment, which manages the venue, announced a separate $40 million investment into arena with the money going to a new data based effort to analyze fan preferences and a new POS system designed to create more efficient lines.

Verizon Center to become Capital One Arena, starting now

Howie Long-Short: If you are going to measure ROI for a naming rights deal based on social mentions, Capital One should do well. Both the Caps & Wiz are expected to be playing deep into the ’18 playoffs.

Fan Marino: Do you really need to spend $40 million to analyze fan preferences? It’s a simple formula: better food + cheaper beer + more bathrooms = happy fan.