The phrase Josh Kroenke and his multibillionaire father Stan use is “rhinoceros hide.” That’s the gift Josh gained from his unforgiving, unconventional rise from heir to the throne to the throne: Thick skin … the guts to fire a coach or let a general manager walk without batting an eye … the moxie to diffuse an angry British fan base … the self-assurance not to have to say “screw you” to all the cynics who thought he’d end up coasting on daddy’s (and mommy’s) money.
He didn’t coast. Because, truth is, they didn’t know a damn thing about him or his parents or his grandparents or the Mora, Mo., work ethic that runs raucously through his veins. Make no mistake, this Great American family -- the one that gave us Sam Walton and SoFi Stadium, the one that collects championships like they grow on trees -- has its newest success story.
For this week’s cover story, SBJ’s Tom Friend profiles Josh Kroenke, and it’s not of the rags-to-riches variety. It’s riches-to-riches. With a twist.
SBJ Voices: The NBA’s local solution, MLB’s offseason to-do list and 'Big Get' Mike McCarley
On Episode 112 of the Sports Media Podcast, the NBA agreed to a deal with the bankrupt company Diamond Sports Group, which runs the Bally Sports-branded regional sports networks. Hosts Andrew Marchand of the N.Y. Post and SBJ’s John Ourand discuss how that deal affects the 15 NBA teams that have Diamond deals; how the deal could impact the league’s national TV negotiations; and what the deal means for Diamond Sports. Marchand and Ourand also discuss how MLB will approach its offseason from a sports media standpoint.
Mike McCarley, the founder and CEO of TMRW Sports and the TGL, joins the pod as “The Big Get” this week and explains why he, Tiger Woods and Rory McIlroy decided to launch this venture. McCarley details what viewers should expect when it launches in January on ESPN. A long-time veteran of the sports media business, McCarley details the market for sports media rights and offers his two cents on LIV Golf.
Sweat equity is the focus of the latest episode of SBJ Live as SBJ’s Chris Smith leads an in-depth discussion with Dave and Nate Checketts about Rhone, the Checketts’ men’s activewear company, also talking about the investment landscape in the sports industry -- from team ownership to new leagues -- to opportunities in sports apparel and sports tech.
Also, SBJ I Factor features an interview with EVP Chris Allphin of Elevate Sports Ventures. Allphin, a member of SBJ’s Forty Under 40 class of 2015, sat down with SBJ’s Bret McCormick to talk about his career path, his evolution as a leader and the importance of live experiences in sports and how they can bring communities together.
Did you miss the sports business stories that SBJ's Abe Madkour is following? Check out this week’s episodes of Morning Buzzcast.
On the job
We’ve heard everyone's concerns about jobs and internships, and we want to help. SBJ is teaming with TeamWork Online to connect students to listings for internships and entry-level positions in sports business. We’ll highlight several jobs in this newsletter and provide links to the complete lists. TeamWork Online provides the following tools for job seekers looking to find their niche in the sports business.
- Profile builder to match you to jobs
- Job applications to your favorite sports or live event organizations
- Face-to-face career fairs and networking events
- Information on educational programs and universities to strengthen your skills
Some positions that are available:
ASM Global adds to Legends’ deep menu of venue services
Legends’ announcement last week that it officially reached an agreement to acquire ASM Global creates a company that can handle every aspect of a sports venue’s lifespan, from feasibility studies around a stadium or arena’s initial conception right on through to daily operations once it’s built. The deal, worth more than $2.4 billion according to industry sources, was first reported in the summer and is one of the largest in the sports venue industry’s history.
Facility management was one of the last pieces missing from Legends’ venue-services arsenal. The acquisition of ASM Global, which sold for roughly 16 times its annual revenue EBITDA of around $150 million, brings to Legends’ balance sheets the benefits of venue management deals, namely that they’re long-term and often with stable entities, such as municipalities or universities. Moody’s noted in March 2023 that ASM Global had booked $594 million in revenue during the preceding 12-month span and that the company had a more than 90% retention rate on its venue-management deals. Those deals can open the door to ancillary services, like food and beverage or premium and sponsorship sales.
As part of the deal, Canadian private equity firm Onex Partners (majority owners) and AEG sold their stakes in ASM Global, as did Levy, which owned a small portion of the company from when it was known as SMG, prior to its 2019 merger with AEG Facilities, which created ASM Global. Onex bought SMG from Ares Capital in early 2018 for an undisclosed amount.
Levy’s exit -- terms weren’t disclosed -- was almost inevitable given Legends’ F&B business will likely be paired with ASM Global’s venue-management and F&B capabilities. ASM Global owns a concessionaire called Savor, though it hasn’t been a major factor in the sports venue domain.
Read Bret McCormick’s full story on SBJ’s website.
MLS clubs taking advantage of expanded postseason
The expanded MLS postseason format has drawn an array of criticism from fans, media and players for its nontraditional format and the number of teams involved, but top business executives at the club level appreciate the added revenue opportunities it provides, reports SBJ's Alex Silverman in this week's magazine.
The format change expanded the field from 14 teams to 18 teams (out of 29 league clubs overall), added a wild-card play-in game in each conference and transitioned first-round matchups from single-elimination matches to best-of-three series. The new format guarantees at least eight teams in each conference host a home playoff match. The new format provides more matches for its new national media partner, Apple. There’s also league-level upside from the renewed deal with playoff presenting sponsor Audi, which Navigate Research estimates to be worth $12.5 million annually over two years.
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