Editor’s Note: Welcome to a new daily column we’re running here at BroBible breaking down the day’s biggest stories in sports finance with commentary from the equities analyst and sports fanatic perspectives. It comes to us via our friends at JohnWallStreet, publisher of a free e-mail newsletter focused on sports related public equities. You can sign up here.
DISNEY PUSHING ALTICE TO PICK UP ACC/SEC NETWORKS IN NYC MARKET; SUBSCRIBERS WILL LOSE ESPN IF NO DEAL REACHED BY MONTH END
Disney’s (DIS) contract with cable operator Altice USA (ATUS) expires at the end of the month and the ESPN parent company is asking ATUS to carry the ACC Network, the SEC Network and expand distribution of the ESPN flagship channel (i.e. less skinny bundles w/o it) within the NYC market, as conditions for a renewal. Should talks fail, subscribers would lose access to ESPN. Verizon Communications (VZ), ATUS’ main competitor in the market would likely be the beneficiary should disenchanted subscribers opt to make a change. It is the first of several TV distribution contracts that DIS will work to renew over the next 2 years. If successful, the approach will help DIS stem the loss of subscribers cutting cable or subscribing to skinny bundles that exclude live sports.
Howie Long-Short: Altice became a player in the NYC market when it purchased Cablevision and acquired their 2.4 million subscribers. The company recently announced a one-year, $1.2 billion share buyback plan, that reflects the company’s confidence in hitting near-term financial targets and boost shareholder returns.
Fan Marino: More than 90% of NYC isn’t going to be pleased with the incremental cost increase associated with the addition of the ACC & SEC Networks; but NYC CFB fans are about to get high quality football, heavily subsidized by their irreverent neighbors. Now, if they would only add the Pac-12 Network…
EXCLUSIVE: KEVIN HARVICK DISCUSSES HIS PERSONAL PORTFOLIO
The Monster Energy (MNST) NASCAR Cup Series playoffs are underway, with 16 drivers competing to be crowned Champion at the Homestead-Miami Speedway on November 19th. JWS got the exclusive opportunity to sit down with 2014 Champion, Kevin Harvick to discuss his investment portfolio, sponsorship partners and sports marketing agency.
JWS: How important is it to you to have sponsors that you would invest in?
Kevin Harvick: The companies that you believe in and invest in, are the companies that you want on your car. I can tell you Exxon Mobil (XOM) is in my portfolio.
JWS: How have you managed to maintain long-term partnerships with several of your sponsors?
Kevin Harvick: We’ve been fortunate through the years to develop what we have with the Busch Brand (BUD), Jimmy John’s, who’s been with us since 2009 and Textron (TXT), who started with us back in 2007. We’ve kind of found the niche with each of those companies in terms of what they like to do, how they like to entertain and where they like go.
JWS: Does having KHI Management (his sports marketing agency) help in terms of signing NASCAR sponsorship deals?
Kevin Harvick: The thing that makes us unique and different is that we have a sports agency that represents 2 PGA golfers, Donald Cerrone (UFC) and Harrison Burton (motocross). We’ve tried to make ourselves more diverse so that when we are trying to cut a deal for a NASCAR sponsorship, we have a family of assets that we can blend in; golf tournaments, UFC fights, etc.
JWS: How closely do you follow the market?
Kevin Harvick: I wake up with Maria (Bartiromo). I like to understand what is happening in the world. I spend a lot of time paying attention to it because I’m intrigued by it.
Fan Marino: Textron is a large cap aerospace, defense, security and advanced technologies industrial conglomerate that happens to own E-Z-GO. E-Z-GO sells golf carts. The company reported revenues were up 2.6% YOY to $3.6 billion in Q2 ‘17. Revenue growth was attributed to the company’s May acquisition of Arctic Cat.
Howie Long-Short: The NASCAR Cup Series playoffs started this past Sunday with a race at the Chicagoland Speedway. Harvick currently sits in 3rd place in the standings, 35 points behind the leader (Martin Treux Jr.) The next race is Sunday 9/24 at the New Hampshire Motor Speedway.
CAMPING WORLD TO BECOME THE OFFICIAL SPONSOR OF MLB LEAGUE CHAMPIONSHIP SERIES
Camping World Holdings (CWH) and MLB have announced a multi-year partnership that will make CWH the official sponsor of the League Championship Series’, beginning with the 2017 post season. The mutually beneficial partnership will provide CWH the ability to expand brand awareness through a variety of broadcast, digital, social, mobile and in-park platforms; while offering MLB access to outdoor enthusiasts and new outlets to sell MLB gear. The partnership also makes CWH the presenting partner of Spring Training, will provide exposure for CWH subsidiaries Gander Outdoors, Good Sam, Overton’s, The House & Windward/W82 and gives CWH brands permission to produce MLB licensed items in a variety of consumer product categories. Financial terms of the deal were not released.
Fan Marino: Camping World CEO Marcus Lemonis, a fanatical Cubs fan, is also the star of CNBC’s show “The Profit”. On the show, Lemonis offers struggling small business owners, investment capital and expertise, in exchange for ownership stake. Lemonis earned some good will last fall when he donated 2 of his 4 Field box tickets for Game 3 of the World Series, so a 97 year-old-fan and his son could attend the game.
Howie Long-Short: Camping World Holdings recently reported “record” Q2 ’17 earnings, with net income up 26.3% to $105 million and net income margin up 40 basis points to 8.2%. The company increased revenues 20.7% to $1.3 billion YOY, as it continues to expand its product offerings beyond RVs. This is what Lemonis does. He turns companies around.
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 Security & 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.