The SBJ/SBD editorial staff compiled the top sports business stories of '17, in no particular order. After looking at L.A.'s Olympic bid and Disney's BAMTech investment yesterday, today we examine the rise of esports and changes at U.S. Soccer.
ESPORTS CONTINUES RISE: The trickle of new money into esports turned into a flood in '17 as Riot Games and Activision Blizzard both sold permanent spots in their top-tier leagues for eight figures each. Stability was the difference-maker, with investors drawn to promises of long-term revenue sharing and no more relegation-and-promotion. Meanwhile, the flurry of investors shored up the best teams, creating a bigger divide between the elites and the also-rans.
FANATICS ON A ROLL: Fanatics, America’s biggest online sports retailer, continued its upward trajectory in 2017. Joining Major League Soccer, Major League Baseball and the NFL Players Association, the NFL purchased a 3% stake in Fanatics, which valued the company at $3.19B. Fanatics bought VF’s Licensed Sports Group for $225M and created a college division with the acquisition of Fermata Partners. In September, it closed on a $1B funding round led by SoftBank, allowing for international expansion.
SHOCKER IN CHARLOTTE: With December came shocking news in the NFL, as the "#MeToo" movement brought down one of the longest-tenured and most-admired owners in the league. Panthers owner and founder Jerry Richardson, who brought the NFL to the Carolinas and was deeply embedded in the region, decided to sell the team amidst allegations of workplace misconduct from former team employees. The sale generated much talk of the team's future in the Queen City, including possible renovations to Bank of America Stadium, or a new venue altogether.
DISAPPOINTMENT, CHANGES FOR U.S. SOCCER: Almost two months after the U.S. men’s team failed to qualify for the World Cup for the first time since 1986, Sunil Gulati announced he would not seek re-election when his term as president of U.S. Soccer ends next year. Gulati oversaw huge growth in the sport in the U.S. during his 12 years leading the sport’s national governing body, but calls for his resignation came immediately after the men’s loss to Trinidad and Tobago in October, which also led to coach Bruce Arena’s departure. Eight people will run for the post, including Gulati’s VP, Carlos Cordeiro, and Soccer United Marketing President Kathy Carter.
NFL TEAMS ON THE MOVE: NFL owners voted 31-1 to approve the Raiders’ move to Las Vegas beginning with the '20 season. Only Dolphins Owner Stephen Ross dissented, citing concern over the pace of relocations. The vote came only three months after the Chargers opted to move to L.A. after repeated failed attempts to get a new stadium built in San Diego. The team is playing two seasons at StubHub Center, with 30,000 seats, before moving in with the Rams at a new stadium under construction in Inglewood.
