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Volume 6 No. 248

Finance

The Canterbury Rugby Union and Super Rugby side Crusaders extended their reach and have "taken minority ownership stakes" in American professional rugby side Seattle Seawolves, according to STUFF. The Canterbury union is a major stakeholder of the Crusaders and both said that they will "do what they can to help develop players for the Seawolves." The Seattle-based team was formed last year and will kick off its inaugural season in the new North American professional competition, Major Rugby League, in April. Canterbury Rugby CEO Nathan Godfrey said, "As the oldest rugby organization in New Zealand, we are excited to have secured a small stake in the future of professional rugby in the U.S." Crusaders CEO Hamish Riach said that his franchise would be "looking to help" the Seawolves. New Zealand sporting rights company FHG Ltd. brokered the deal (STUFF, 2/14).

Morgan Stanley forecast that Formula 1 "will burn up" $216.1M of net losses over the next three years, according to Christian Sylt for FORBES. The "grim outlook" was disclosed in a recent report from the bank. It follows the news that F1's revenue in '17 "crashed" by $18M to $1.8B fueled by the loss of the German Grand Prix and several sponsors including insurance firm Allianz and financial services company UBS. It was the first year F1 owner Liberty Media was "in the driving seat" and the fall was the "biggest of the past decade." Despite "promising to give a boost to the business," Liberty failed to sign any new races or major sponsorship deals to "compensate for the ones it lost." Morgan Stanley’s report forecast that an increase in fees from broadcasters will "drive growth in F1’s revenue" but one of the bank’s own sources contradicted this. F1’s "biggest single cost" is the payment of prize money to the 10 teams, which equates to 68% of its underlying profit. This profit share is expected to come to $1B this year followed by $1.1B in '19 and $1.2B the year after (FORBES, 2/12).