F1 PARTNERS WITH SNAP; LOOKING TO GROW SOCIAL MEDIA PRESENCE, REACH YOUNGER AUDIENCE

Liberty Media’s (LMCA) Formula One and Snap, Inc. (SNAP) have partnered, encouraging fans to shoot and upload video at upcoming F1 events, starting with this weekend’s British Grand Prix. F1, which would actively look to prevent race highlights from hitting social media prior to the Malone takeover, is now looking to grow interest in the circuit by building a social media presence and reaching a younger demographic. The companies will split all ad revenues generated, but no additional terms of the deal have been released.

formula-1-logo

Formula 1 and Snap Inc. announce new global partnership

Fan Marino says: My F1 knowledge goes 2 drivers deep. Michael Schumacher and Mario Andretti. That is in the HISTORY of the sport. Marketing their stars, has never been F1’s strength. This deal will help bring attention to, if not interest in, the circuit within the U.S.

Howie Long-Short opines: I can add Ayrton Senna to the list–but only because his documentary is on Netflix. I don’t know a single fan of F1. USA is a huge opportunity for F1 under Liberty’s control, but they have a long way to go.

NFL BROADCASTERS EXPECTING DECLINE IN AD REVENUES FOR ’17 SEASON

The NFL’s 4 main broadcast partners: ESPN (DIS), NBC (CMCSA), CBS & FOX (FOXA), are bracing for a fall in advertising revenues for games during the 2017 season. A decline in TV ratings, the recent switch of advertisers from traditional TV to online media, the overabundance of games being shown on television and drastic spending cuts by the drug and auto companies, are all contributing to the poor ad performance. Even with an increase in price of spots for the 2017 season, total ad revenues are trending a few points below the 2016 season.

nfl_logo

ESPN, Broadcasters Are Said to Confront Football Ad Slump

Fan Marino says: No one needs 9 hours of football on a Sunday, eliminate SNF. The short week kills the quality of play, eliminate TNF. No Saturday Games. 2 games on Sunday, 1 on Monday.  Boom!  Problem solved.

Howie Long-Short opines: Way too early to call a trend here r.e. ratings. Lot of horrible games last year, plus that whole election thing. For broadcasters like CBS and FOX, sports are still their safest bet for viewership. But with their over-reliance on advertising, an economic slowdown is the bigger risk.

MSG SIGNS BOOKING/MARKETING PARTNERSHIP WITH PRUDENTIAL CENTER; IN BOOKING WAR WITH AEG LIVE

Madison Square Garden (MSG) has signed a booking and marketing partnership with the Prudential Center (home of the Devils), in an attempt to bring more marquee events to New Jersey. MSG, which owns world class venues and has won various booking awards, is in a heated battle for venues with AEG Live, with the companies preventing acts from performing at competitor owned venues. Irving Azoff, Jim Dolan’s partner in Azoff MSG Entertainment, explains in a must read 400 word statement, the MSG side of the story.

prucenter

The Madison Square Garden Company and Prudential Center Announce Booking and Marketing Partnership

Fan Marino says: No terms of the deal have been released, but the new revenue should help to offset at least a fraction of Tim Hardaway Jr’s generous new contract.

Howie Long-Short opines: MSG has a long way to go to make this a real business for shareholders. I’m not ready to bet on JD and the Straight Shots here.

JAWBONE GOING OUT OF BUSINESS

Jawbone; the company that pioneered Bluetooth headsets and wireless speakers before turning its focus to health & fitness trackers, is going out of business and has begun liquidating assets, after 18 years. With 450 employees and a valuation of $3 Billion in early 2015, the company had among the most hyped fitness trackers; but logistics issues, competition from companies like FitBit (FIT) and a softening market for wearable fitness tech has caused the company to struggle since. Jawbone has a pending lawsuit against Fitbit (FIT) and 5 former employees over the alleged theft of trade secrets.

46280-a4d592dc7db7c8ae7f45b6c918158b2a

Jawbone Is Going Out of Business

Howie Long-Short opinesSounds like a lot of Silicon Valley investors took a hard one to the jawbone. The wearables business is deadly competitive.

Mrs. Fan Marino says: Bummer! Their blue tooth headsets were great for an active runner (like me). Fitbit counts steps and calories for the lazy (like Fan Marino). Should have stayed in their lane!

YOGAWORKS SETS TERMS FOR IPO; TO BECOME 1ST PUBLIC YOGA STUDIO

YogaWorks, which owns and operates 50 yoga studios within 6 U.S. markets, has plans to raise $65 Million by offering 5 Million shares between $12-$14. The yoga chain, which plans to list on the NASDAQ Global Market under the symbol YOGA, is not currently profitable, losing $9.4 Million in 2016. Net Revenues however, are growing, and the company says it’s been deferring revenue by converting members from a subscription based to class pass model.

2-weeks-of-yoga-for-15-2768222-regular

YOGAWORKS, A US YOGA STUDIO CHAIN, SETS TERMS FOR $65 MILLION IPO

Howie Long-Short opines: Dare I say it’s a stretch to call this a hot IPO? Oh God. Sorry. Really though, a yoga studio roll-up sounds even worse than a golf club roll-up (MYCC). This one smells.

Fan Marino says: I’m not convinced stretching can be considered a workout. If you have to crank up the heat to 95 degrees to work up a sweat, are you actually working up a sweat?

TRADITIONAL TV TO LOSE ANOTHER 10.8 MILLION SUBSCRIBERS BY 2021

Kagan, a media research group within S&P Global Market Intelligence, is predicting that traditional pay TV companies (i.e. CMCSA, T) will lose another 10.8 million subscribers by 2021, while virtual services like Sling TV (DISH) and Playstation Vue (SNE), grow collectively to 11 million users. It has been estimated that 18 million households (14% of U.S.) will rely solely on over the top, self aggregated, online content, by that time. The news isn’t all bad though for traditional providers, as households with multichannel subscriptions are expected to remain the solid majority for at least the next 5 years.

playstation-vue-vs-sling-tv

Kagan Releases Multichannel projections through 2021

Howie Long-Short opines: 10.8 million more cord cutters, fully offset by 11 million OTT subs, in 5 years? This would probably be good news, at least for the cable companies that can charge streamers $100 for high-speed broadband.

Adam Dow-Jones comments: Has the furor over cord cutting gone to far I wonder? Not while these numbers continue to be abysmal. Mr. Dow-Jones smells some value in media though as market overprices these declines.

Fan Marino says: I’m literally just ESPN and ESPN2 away from making the move to FuboTV. Look at the channel lineup, what else do you need?

CLUBCORP ACQUIRED BY P.E. FIRM FOR $1.1 BILLION

ClubCorp Holdings (MYCC), the owner/operator of over 200 private golf & country clubs, has been acquired for $1.1 Billion by Apollo Global Management, a P.E. firm. Apollo has agreed to pay $17.12 per share in cash, nearly a 31% premium over the July 7th closing price. The deal, expected to close in Q4 ’17, comes just 3 months after Longtime CEO Eric Affeldt announced his retirement and the firm stated it would not be seeking a sale, despite mounting debt and lagging memberships.

clubcorplogo2

Dallas-based ClubCorp agrees to be bought by private equity giant for $1.1 billion

Howie Long-Short opines: Golf course roll-up strategy, really? Never bought this one. Less than fantastic return for any long-term MYCC shareholders participating in the $14 IPO in 2013. Fortunately for them, Apollo continues the trend of buying out companies flagged for questionable accounting or business models. Good luck.

Adam Dow-Jones comments: Oh boy what a saga this was, between activists on both long and short side. Hardly a great return for IPO shareholders but a nice opportunity for those able to value these hard assets, geared to experiential consumption.

Fan Marino says: If you believe Golf is on the upswing, Acushnet Holdings Corp (GOLF), the owner of Titleist, and Callaway Golf (ELY), both remain public.