Sports Finance Brief: Vegas Sportsbooks Are Starting To Report Multiple Million Dollar Bets On Mayweather

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VEGAS SPORTSBOOKS TO SUFFER WORST LOSS IN HISTORY, SHOULD MCGREGOR UPSET MAYWEATHER

Las Vegas sportsbooks (MGM, WYNN, LON: WMH) are preparing for what could be their worst loss in history, should heavy favorite Floyd Mayweather lose this weekend’s mega-fight to MMA superstar Conor McGregor. With nearly 90% of all bets made thus far on McGregor, the line has moved from McGregor as a +$1,100 underdog to just +$400 (Sportsbook.com), 24 hours before the fight. While experts agree, McGregor is unlikely to win, many are hoping to see the controversial Mayweather suffer his first career loss. Casino operators believe the smart money, from experienced gamblers, will come in late on Mayweather and balance the books.

Howie Long-Short: When Clemson beat Alabama for the National Championship in January, Vegas said it was one of the 3 biggest losses on a CFB game in the history. WYNN reported high 6 figure losses, while MGM report low 6 figure losses, on the game. If McGregor wins this fight, one Vegas property stands to lose $3 million+. Those are big stakes!

Fan Marino: Heart says McGregor, mind says Mayweather. Glove weight irrelevant. You can’t knock Mayweather out, if you can’t catch him.

Editor’s note: The smart money is, indeed, starting to come in.. 

Listen to the inaugural episode of BroBible’s DEBATE THE SLATE sports gambling podcast about MAYWEATHER x MCGREGOR … 

 

 

NFL PARTNERS WITH TENCENT HOLDINGS TO BROADCAST GAMES LIVE, IN CHINA

The NFL has announced a 3-year agreement with Chinese internet giant Tencent Holdings (HKG: 0700), that will make Tencent Sports the exclusive internet streaming provider of the NFL in China. Live games and on-demand content will be available through Tencent’s mobile application & desktop terminal. The NFL sees China as an emerging market, with live streaming viewership up 17% last season, to 37 million viewers.

Howie Long-Short: Tencent owned social networks Weixin & WeChat have 960 million active monthly users, so there is no shortage of room for growth within the market. My question is, are Chinese football fans willing to pay for live content that airs at 1a and 4a local time on Monday morning?

Fan Marino: Content will include: “All TNF, SNF and MNF games. Select Sunday afternoon games. The playoffs and the Super Bowl.” That’s all good and fine, but how are these new fans supposed to track their fantasy teams without NFL RedZone?

 

FOOT LOCKER MISSES Q2 PROFITS, REVENUE AND MARGIN ESTIMATES; DOWN MORE THAN 50% THIS YEAR

Foot Locker (FL) missed Q2 profits, revenue and margins estimates, driving the stock to a 52-week low. The sneaker and apparel chain is now down more than 50% for the year. FL reported same store sales were down YOY(6%) for the first time since 2009, perhaps signaling the end of the long-running athletic footwear bull market. CEO Richard Johnson stated the company will be aggressive in reviewing its 3300+ store fleet and intends on closing more than the 100 stores announced earlier this year, to get the company back on track.

Howie Long-Short: NKE is telling us they see future growth in direct to consumer sales. FL is telling us that the NKE/AMZN partnership is not an imminent threat to their business. It certainly sounds like cognitive dissonance to me.

Fan Marino: The elephant in the room? Basketball sneakers simply aren’t fashionable with kids right now.

 

U.K. BASED RETAILER TURNING FOCUS TO ESPORTS; RECENT TOURNEY PAID OUT 10X THE U.S. PGA (GOLF)

Game Digital Plc, (LON: GMD) the U.K. based console and video game retailer is turning its focus to Esports after reporting annual revenues of $1.1 billion, down 2.3% from last year. Esports is a rapidly growing arena, with the latest Dota 2 International tournament paying out a record $10.8 million in prize money, nearly 10x the amount Justin Rose won ($1.9 million) for besting the recent U.S. PGA. GMD is actively working to implement a change in strategy, reducing its overall retail footprint and introducing game hubs where customers can play online and compete in tournaments.

Howie Long-Short: Looking for a way to play GMD, without following the crowd? Sports Direct International, Plc (LON: SPD) owns 26% of the company.

Fan Marino: Why do video game players have/need a “backroom staff”? Do they act as trainers for their fingers? Runners for coffee? Emotional support?

 

MOBIL 1 TO REMAIN THE OFFICIAL MOTOR OIL OF NASCAR; EXTENDS SUCCESSFUL PARTNERSHIP TO 20 YEARS

Mobil 1 (XOM) has renewed its partnership with NASCAR through 2023, to remain the official motor oil of the racing sanctioning body. While terms of the deal have not been released, NASCAR sponsorships typically run in the low seven figures on an annual basis. The partnership makes sense on several levels. Recognition of Mobil 1 as a NASCAR sponsor is at a three-year high. NASCAR fans are 30% more likely than non-fans to add or change their own motor oil and more than 50% of teams within NASCAR’s 3 national series use Mobil 1 products.

Howie Long-Short: With NASCAR viewership hitting record lows, I hope Mobil 1 got some sort discount on the renewal.

Fan Marino: Seems strange that NASCAR’s biggest race is their first race of the season (Daytona). Imagine the Iron Bowl or OSU/Michigan kicking off CFB season next weekend.

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