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NFL Fans in NY, LA, DAL and CHI Could Miss NFL Action on Thanksgiving
More than 2 million Dish Network (DISH) subscribers will miss out on Thanksgiving Day NFL football (and SEC football on Friday and Saturday) if a pricing dispute with CBS isn’t solved within the next 24 hours. DISH dropped CBS Corp. (CBS) channels in 18 major markets after the 2 sides were unable to agree on a new carriage deal by Monday evening’s deadline. CBS is reportedly asking for the same terms it receives from its other distributors and believes it deserves a retransmission fee increase as CBS is the most watched DISH channel. DISH has balked at the demands; arguing CBS is asking for an increase on programming with declining viewership or that can be found free over the air.
Howie Long-Short: DISH reported Q3 revenue declined 5% YOY (to $3.58 billion), attributing the loss to a one-time removal of 145,000 subscribers in Puerto Rico and U.S. Virgin Islands (related to Hurricane Maria). The company added 16,000 subs during the quarter, offsetting losses in pay TV subscribers with the addition of an estimated (by Evercore analysts) 224,000-264,000 Sling TV streaming service subscribers. DISH shares are down 14% YTD.
Fan Marino: Cowboys and Chargers fans may want to consider taking DISH up on their proposed solution. Fans can drop their local channels in exchange for a $10 reduction on their monthly bill and have DISH install an antenna, at the company’s expense. It’s a slight inconvenience, but it beats missing the game.
Helmet That “Best Reduces Head Impact Severity” Now Available to High School Players
VICIS has announced it will be making its Zero1 helmets available to high school players, in time for the 2018 season, through a newly-launched online marketplace. The Zero1 differs from traditional helmets in that its outer shell acts like a bumper, deforming or yielding upon contact. A layer of flexible columns helps the helmet to absorb impact before it reaches the head. A 2017 joint study between the NFL and the NFLPA of 33 helmets, named the Zero1 as the helmet that “best reduces head impact severity”. The $1,500 helmet is currently being worn by players on at least 15 NFL teams and 20 college football teams.
Howie Long-Short: VICIS also announced it has raised some additional capital ahead of its high school expansion plan; a $7 million round that includes an investment from Seahawks QB Russell Wilson. The company has raised nearly $50 million to date, but all the money has come from medical professionals, athletes or P.E. firms. If you want a way to play the company, try Oakley; part of the Luxottica Group, the world’s largest eyewear company. Oakley is the maker of the VICIS EDGE Shield, that each helmet comes with. The company trades over-the-counter under the symbol LUXGF.
Fan Marino: High school athletes who pre-order by March 31, 2018 can expect delivery by July 31, 2018. The company is offering payment plans as well as referral programs that provide discounts, to help with the steep price of the fully customizable helmet. It is worth noting that Alex Smith, Jerry Rice, Tony Dorsett and Roger Staubach are members of the company’s board.
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NASCAR’s Declining Ratings and Attendance Now Affecting Drivers
NASCAR sponsorship dollars are declining due to declining television ratings and race attendance, and as a result teams are opting for development drivers who command lower salaries over proven veterans. At the peak of NASCAR’s popularity, the top teams would spend $30 million to run a car; with the sport’s most popular drivers earning $10 million/year in salaries. Today’s teams run cars for half of what they did just 15 years ago, and those unable to put together lucrative sponsorship packages are passing on high-priced drivers. Matt Kenseth, a former Champion without a team for 2018, recently explained the environment saying, “I think it’s a very tough time for car owners to find the money that they need to field competitive race cars with competitive personnel.”
Howie Long-Short: NASCAR is in trouble and I don’t see a quick fix here. Any solution relies on increasing viewership, but CEO Brian France refuses to even acknowledge the decline; recently touting “22 or 23” events that experienced a YOY rise in attendance. You can compare the cable television figures for yourself. All but one Cup Series race had a YOY ratings decline. How to solve a problem the company refuses to acknowledge?
Fan Marino: Martin Truex Jr. won Sunday’s Championship race at Homestead-Miami Speedway, holding off Kyle Busch to win his first Monster Energy Championship. The race drew a 2.7 overnight rating, down 18% YOY (3.3) and a staggering 39% (4.4) lower than the 2015 finale.
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What is JohnWallStreet?
JohnWallStreet is not a person or location, but a destination for the educated sports fan.
While we won’t be publishing “hot takes” on LeBron’s relative greatness to Jordan, we will be offering up the most relevant sports related finance news, in easily digestible bites, with commentary from both the equities analyst and sports fanatic perspectives.
We’ll cover publicly traded professional teams & stadiums, television networks, apparel & footwear companies, equipment companies, ticketing companies, content and facilities providers. If it trades on Wall Street, and has a sports angle, it’s in our wheel house.
Howie Long-Short and Fan Marino will be providing their expert opinions on each story. They have slightly different areas of expertise. Fan Marino is a firm believer that the SEC is the premier football conference. Howie Long-Short knows it as the Securities & Exchange Commission. Fan Marino lives and dies with the college selection of 5 star, blue chip recruits. Howie Long-Short spends his days analyzing blue chip stocks. Howie Long-Short knows that Black Monday occurred on October 19th, 1987. Fan Marino swears it happens every January after Week 17. You get the point.