Highlight Reel: UK Athletics Adopts British Cycling Events’s Blueprint 🏃♂️
Plus, some perspective behind the Caitlin Clark salary controversy, and there's a new amateur par-3 golf league.
Welcome to Sports Pundit, the sports business newsletter delivering insights from across the industry.
In today’s email;
UK Athletics Announce Launch of Athletic Ventures 🏃♂️
Caitlin Clark WNBA Salary Causes Controversy 🏀
A New Amateur Par-3 Golf League ⛳️
Thanks to Henrik for coming on the Podcast - and thanks to everyone who has listened and shared feedback!
Looking forward to seeing lots of you in London on Wednesday (24th)!
Happy Friday!
Andy 😊 🙏
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A NEW WAY TO RUN…
UK Athletics Adopts British Cycling Events’s Blueprint 🏃♂️
UK Athletics has partnered with London Marathon Events and the Great Run Company to form a new entity named Athletic Ventures, aimed at promoting the development of athletics throughout the UK.
This new venture is set to organise several significant events, including Birmingham's 2026 European Athletics Championships and the yearly Diamond League UK athletics competition.
Moreover, Athletic Ventures will play a crucial role in supporting the UK’s prospective bid to host the 2029 World Athletics Championships.
The newly formed company is tasked with identifying and securing commercial partners for various levels of the sport, from local grassroots events to national championships.
By uniting some of the UK's most prominent running and athletics events—including the London Marathon, the Great North Run, and RideLondon—under a single organisational banner, the initiative follows in the tyre-tracks of British Cycling, which launched British Cycling Events in February.
Sports Pundit says:
In my view, it’s a smart move. By establishing separate entities to handle the organisation and commercial aspects of major events, these governing bodies can potentially mitigate financial and operational risks.
For instance:
If these ventures face financial difficulties or fail, the governing bodies might limit their financial exposure, as the liabilities could potentially be confined to the joint venture or subsidiary, rather than impacting the entire operations of the governing bodies.
These entities can operate with a degree of flexibility that might not be possible under the more rigid structures of the parent governing bodies. This could include experimenting with new event formats or sponsorship models without the same level of scrutiny or bureaucratic constraints that might apply within the main organisation.
Moreover, these joint ventures and subsidiaries are likely designed to be more commercially aggressive. By focusing specifically on commercial partnerships and broader event management, these organisations can tailor their strategies directly towards generating income. This could involve negotiating sponsorship deals, broadcasting rights, and merchandising in ways that might be more innovative or aggressive than typically pursued by the governing bodies themselves.
By employing this approach, UK Athletics and British Cycling aim to not only foster the growth of their respective sports but also to innovate in how these sports are presented and funded.
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HIGHLIGHTS
The eight first-class counties successful in bidding for the new professional women's tier-one sides have been revealed by the ECB, which will invest £19 million on the project by 2027 🏏
FA Cup replays will be scrapped from the first round next season as part of a six-year agreement with the Premier League to strengthen the domestic competition ⚽️
Rugby League has launched two brand new social channels dedicated to the Women’s game – including the world’s first TikTok account run exclusively by players 🏉
An unprecedented total prize pool of more than $60 million has been unveiled for the inaugural Esports World Cup this summer in Riyadh, Saudi Arabia 🎮
YouTube Stars Dude Perfect score $100M-plus investment From Highmount Capital "to pursue bold new opportunities and projects" beyond traditional channels 📺
Rosberg Ventures, the VC fund founded by F1 World Champion Nico Rosberg, has launched a $75M ‘fund of funds’ 💸
CHANGING THE GAME
Clark Causing Interest in WNBA to Reach Fever-Pitch 🏀
Monday's WNBA draft garnered immense attention, boasting a viewership of 2.5 million. This surge in interest was fuelled by the selection of Caitlin Clark as the first pick by the Indiana Fever, shining a spotlight on the league's brightest star.
However, that initial thrill soured into frustration for many upon learning of Clark's modest first-year salary of $76k, contrasting starkly with the magnitude of her talent and impact.
While some suggest that Clark's potential for lucrative endorsement deals, including a rumoured $20 million partnership with Nike and the prospect of a signature shoe line, could mitigate this financial gap, others point to alternative opportunities that she could have, or should have, taken - such as the offer of $3 million from Ice Cube's BIG3 league.
Yet, Alex Abrams (Founder of Sports Business Playbook) contends that these debates overlook a broader point:
What he said:
“Yes, she's wildly underpaid, but that salary is all she's legally allowed to make (not including personal endorsements) under the league's current collective bargaining agreement, which is negotiated between the league and the players' union.
No, comparing her salary to National Basketball Association (NBA) rookies doesn't make sense given the W is a separate league that is 50 years younger and generates 2% of the NBA's total annual revenue ($200 million vs. $10 billion).
No, she can't be given equity in a team due to the CBA, and she also shouldn't be so shortsighted to just take the first lucrative contract that comes her way for a marketing stunt like the Big3.
All of that being said, come 2025 when the new media rights deal for the W and a new CBA are both up for renegotiation, Clark's superstardom will be at the forefront of both conversations. From these negotiations, we will hopefully see some tangible progress that benefits the players as a whole.
This is the paradox of Caitlin Clark. Her arrival on the scene is shining a bright light on the structural inequities that have plagued women's sports for so long while also giving us hope that she will be one of the change agents that carries women's basketball into its next iteration -- an economically viable, high growth product.”
P.S. Caitlin Clark's Indiana Fever jersey has become the top-selling jersey for a draft pick
FURTHER READING
The Sports Business Is Growing Faster—and Attracting More Money—Than Anyone Imagined By Andy Serwer, Baron’s 💰
After NWSL Title and Star Investments, Gotham FC Looks for Next Step By Asli Pelet, Sportico ⚽️
Clippers announce special season ticket for 'The Wall' fan section in new arena By Ian Casselbury, Yahoo Sports 🏀
Golf’s passion for fashion isn’t slowing down By Lona Price Jones, Thoughts + Sports ⛳️
Paul Elliot: Fighting Racism, Increasing Diversity By Adrian Goldberg and Charlie Methven, Where’s the Money Gone? 🤝
High-Stakes Amateur Par-3 Golf League Threatens to Further Shake Up Sport By JohnWallStreet ⛳️
THE PODCAST
Want to hear more from my conversation with Henrik?
We discuss transitioning from software to hardware, manufacturing in Copenhagen, differentiating from the competition, placing emphasis away from the professional game, the opportunity for women’s sport, and much, much more.
Listen to the full podcast via the link below - and I’d love to hear what you think!👇
The Sports Pundit Social Club (SPSC) is designed to bring together a diverse collective of executives, founders, investors and athletes from across the sports industry.
This month, we’re two down and have got one to go. Join me in London on Wednesday (24th) for a happy hour at Greenwood Sports Pub & Kitchen in Victoria, with execs, founders, investors, and athletes.
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JOB BOARD
Media & Sports Partnerships Specialist - Snapchat (London, UK)
Senior Engagement and Partnerships Manager - Manchester City FC (Hybrid, UK)
Head of Growth - Middlesex Cricket (London, UK)
Manager, Club Strategy - Major League Baseball (MLB) (New York, US)
Director, Business Development and Deal Execution - National Basketball Association (NBA) (New York, US)
Do you have a job you’d like to promote to the amazing readers of this newsletter? Email me 📩
The Highlight Reel is brought to you by the Global Institute of Sport!
The Global Institute of Sport is the leading destination for Master's degrees, executive education and professional qualifications in sport around the world.
They count world-famous stadiums and surrounding venues among their state-of-the-art campus facilities across the globe, including London's Wembley Stadium, Miami's DRV PNK Stadium and Melbourne Cricket Ground.
Ready to master the global sports industry? Enquire today about their in-person and online courses.
Next month I’ll be heading over to New York as we relaunch the the Social Club in collaboration with Maxwell, a social club set in the heart of Tribeca. If you’re based in New York, it would be wonderful to see you there, please feel free to drop me a message if you’d like to grab a coffee while I’m around.
RSVP for New York (Wednesday 22nd May) 👉 Here
RSVP for London (Thursday 30th May) 👉 Here