The Athletic is preparing to "more than double its staffing and expand to new professional sports markets after securing a new investment round" that has raised $20M, according to Benjamin Mullin of the WALL STREET JOURNAL. The funding round was led by Evolution Media, the "growth-stage investment company" founded by TPG Growth and CAA. Before this round, The Athletic raised $10M in two rounds "led by Courtside Ventures." By the end of '18, The Athletic "plans to have between 200 and 350 employees, up from its current staff of 120." The company "currently has a foothold in 23 markets across the U.S. and Canada, and plans to expand to roughly 45 markets by the end of the year." The Athletic co-Founder Alex Mather said that city sites for Boston and L.A. are "in the works." The company is also "planning to establish teams dedicated to coverage of NFL and the NBA nationally." Mather also said that the company’s subscribers have "reached six figures," though he declined to "be more specific." While the company "isn’t yet profitable," Mather said that some of the company’s earliest markets -- places like Chicago -- have "more than 25,000 subscribers and are profitable." The Athletic said that "roughly 90% of its subscribers renew annually," and the company is "currently growing its oldest markets at a rate of about 20% month-over-month" (WSJ.com, 3/5). Crain's Detroit's Bill Shea tweeted, "Another major capital injection for The Athletic. My takeaways ... 1. Investors still like it 2. Not yet profitable 3. Sub churn rate is low 4. Dipping toe into sponsorship revenue 5. What's the cash burn rate? 6. Fast expansion" (TWITTER.com, 3/5).
