Editor’s Note: Welcome to a daily column we run here at BroBible breaking down the day’s biggest stories in sports business with commentary from the sports money and sports fanatic perspectives. It comes to us via our friends at JohnWallStreet. You can sign up here for their daily email newsletter.
Production-Technology Showcase Disguised as Golf Match
Capital One’s The Match: Eldrick Woods v. Phil Mickelson will take place on Friday (11.23) at 3p EST. While the two will compete for $9 million, the showdown between “Tiger” and “Lefty” is as much a production-technology showcase as it is a golf match. Turner Sports plans to introduce “first-of-its-kind integrations centered on predictive data”, camera angles delivered by drone and live betting odds during a marquee sporting event for the first time (for U.S. viewers); TopTracer shot tracking (shows real-time trajectory, flight path) and Virtual Eye real-time animations will also be used during the broadcast. The PPV golf event is being sold for $19.99.
Howie Long-Short: You’ll notice AT&T (T) is the common thread throughout this deal; the company now owns (since its $85 billion acquisition of Time Warner in late ’16) Turner Sports (broadcasting the event), DirecTV, AT&T U-Verse and B/R Live (3 outlets selling the event), HBO (doing pre-fight promotion) and Bleacher Report (social, BTS coverage).
The predictive data viewers will see (think: shot probability) is being generated from an algorithm combining ShotLink Intelligence (i.e. archive with insight/analysis of every shot hit during tour play) with the unique characteristics of the course being played (Shadow Creek, Las Vegas).
You may recall the name TopTracer, as we wrote on the company’s decision to license its technology to traditional driving ranges; software that enables golfers to play virtual versions of the world’s premier golf courses, from the convenience of their neighborhood range. Topgolf Entertainment owns TopTracer, having acquired the company back in 2016 when it was still known as Protracer.
After each hole, MGM Resorts Race & Sports Books (in partnership with GVC Interactive Gaming) will update their proprietary feed to the live PPV broadcast with real-time odds and money lines. While in-game betting is going to be huge as sports betting becomes more widespread, don’t expect this event to move the needle for MGM (or any other sportsbook); only those located in NJ and NV will have the ability to act on the real-time odds displayed during the broadcast within the company’s mobile app. It’s worth noting that Shadow Creek Golf Course is an MGM Resorts International property.
Turner Sports (T) elected to forego traditional commercial spots during the PPV event to provide the audience (not accustomed to buying golf) with an optimal viewing experience, so just 3 premium brands will be marketed to viewers during the event; Capital One (title sponsor), AT&T (official wireless and data services partner) and Audi (official automotive sponsor) are all sponsoring integrations (think: drone coverage, 4K option) supposedly additive to the broadcast.
Fan Marino: Speaking of Topgolf, the company is expanding aggressively; looking to reach 50 markets by the end of 2018 as it prepares for a 2019 IPO. Executive chair Erik Anderson explained the company is “a candidate to go public for sure” because “like Starbucks, people connect with us.” Sure, Topgolf is popular, but like Starbucks? Who makes Topgolf a part of their everyday routine? Topgolf isn’t public, but Callaway Golf (ELY) owns +/-14% of the company.
Topgolf competitor Drive Shack is also making headlines, having announced NYC’s first golf entertainment complex is coming to Randall’s Island Park in 2020. The company currently has just a single location (Orlando), but 6 others are under construction. Unlike the market leader (Topgolf), Drive Shack is publicly traded on the NYSE under the symbol DS; shares are down -21% since the company reported a Q3 loss (-$15 million), while missing revenue estimates by +/- $1 million ($87 million), 2 weeks ago.
What is JohnWallStreet?
JohnWallStreet, located at the intersection of sports and finance, is 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 business news, in easily digestible bites, with commentary from both the sports money and sports fanatic perspectives.
We’ll cover publicly traded professional teams & stadiums (MSG, RCI, BATRA, MANU), television networks (DIS, FOXA, CMCSA, CBS, TWX, MSGN), apparel & footwear companies (NKE, UAA, ADDYY, FL, LULU), equipment companies (GOLF, ELY, FIT), ticketing companies (EBAY, LYV) content and facilities providers (CHDN, DVD, ISCA,TRK, LMCA). 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.