Highlight Reel: EPL Surpasses Liga MX to Claim Premier Position in the US ⚽️

Plus, why Nike's cost-cutting practices could be seen as a red flag and a few industry predictions for 2024 from yours truly...

Jan 05, 2024

Welcome to Sports Pundit, the sports business newsletter delivering insights from across the industry.

In today’s email;

Premier League Continues to Score State-side ⚽️
Nike’s $2 billion of Cost Cutting is a ‘Red Flag’ 🚩
Some Industry Predictions for 2024 🔮

I hope you all had a wonderful break over the holidays and I’m wishing you all the best for 2024!

If you’d like to know what is (or at least what I think is) in store, check out the MBA Sport Business Alliance’s inaugural podcast where I joined Kelsey Smith and Alex Abrams for a chat.

Best wishes,

Andy 😊 🙏

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SCORING IN THE US

EPL Surpasses Liga MX to Claim Premier Position in the US ⚽️

Saturday’s Liverpool vs Arsenal match was the most watched Premier League game ever in the US, averaging 1.96 million viewers on NBC Sports/ Peacock.

This might not seem like a lot given the scale of the potential US market, but, as James Tree (VP, Football at IMG) pointed out, this is a "really important barometer" as to the direction of travel for the league.

If you add in the Hispanic audience, which is missing from this reported number (as they tune in via NBC’s Spanish-language channel Telemundo), the total audience is likely closer to 2.3 million viewers - a level of attention which only Liga MX would typically be able to rival.

As World Soccer Talk (WST) reported last week, this could be seen as part of a wider trend with the Premier League in the process of leapfrogging Liga MX to become the most-watched soccer league in the US (English and Spanish-language combined).

Historically, Liga MX has always been the most popular. However, World Soccer Talk’s Kyle Fansler suggests that we’re now not only seeing the Premier League get more viewers, we’re also witnessing a decline in relative viewership of Liga MX.

What he said:

It’s difficult to pinpoint a specific reason for the declining viewership in Liga MX, but the intra-league competition Leagues Cup between MLS and Liga MX could be a significant factor. The competition between Liga MX and MLS was not perceived favorably by fans of Liga MX clubs. So much so that Liga MX was unable to sell the rights to the competition in Mexico.
Also, many of the Leagues Cup matches involving Liga MX were streamed behind the MLS Season Pass paywall. Preventing fans of Liga MX clubs from watching many of the games may have upset many loyal supporters before the Apertura began.
Similarly, many of the Liga MX games are only available on the paid streaming service ViX. Fans of Liga MX clubs in the United States have been used to watching most of the games for free, so the ViX paywall may have been too much for many fans to stomach.
It’s not surprising, therefore, that giving American fans so many chances to watch the Premier League via streaming, English TV, and Spanish TV has helped set records in viewership that NBC Sports regularly touts [such as at the beginning of this post].

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HIGHLIGHTS

The PDC World Darts Championship final on Wednesday secured a domestic audience of 4.8 million - Sky Sports’ best-ever non-football audience in the UK 🎯
The NWSL’s Portland Thorns have been sold to the Bhathal family for a record US $63 million ⚽️
MLB, NHL, and NBA games could soon come to Amazon Prime as the e-commerce giant weighs up an investment into Diamond Sports Group 📺
The IPL 2024 auction has received a remarkable 57% increase in viewership compared to last year, peaking at 22.8 million 🏏
The NCAA has announced a new eight-year, $920 million TV deal with ESPN covering 40 different championships, including women’s basketball 🏀
TKO Group has combined the partnerships divisions of the UFC and WWE into one global arm as part of a bid to harness greater operational efficiencies 🥊
Cryptocurrency firm BingX have agreed a sleeve sponsorship deal with Chelsea FC, replacing digital asset brand, WhaleFin, whose deal was cut short ⚽️

CUT IT OUT

Nike’s Cost Cutting Plans are a Red Flag 🚩

Following just a 1% increase in sales at its latest earnings report, Nike has said that it sees the potential to save up to $2 billion in costs over the next three years by "simplifying our product assortment, increasing automation and use of technology, streamlining our organization, and leveraging our scale to drive greater efficiency."

John McClymont, Principal - Operations and Logistics Solutions at Operational Innovations, is not so convinced that simply making operations leaner will entirely weather the storm for the world’s biggest sports apparel brand.

What he said:

[The fact] they're aiming for a massive $2 billion cost reduction [despite already having profits of $1.9 billion,] hints at a deeper issue, possibly a strategy to pour more into branding efforts to stay relevant and competitive.
But what has really changed? A shifting consumer base - Gen Z and fast social.
These young consumers are rewriting the rules of brand engagement. Big names can work, but they're also looking for authenticity, and connection.
Add to this the rise of smaller brands. Nike's recent moves pulling back from wholesalers, opened the door for these players in the lower to mid-price ranges. [In doing so,] They proved to customers that quality and style don't have to come with a classic Nike price tag.
To me, this all points to a larger issue.
Nike's cost-cutting might end up being a band-aid. A quick fix the deeper challenge of staying relevant and valued in a rapidly evolving consumer landscape.
When companies start thinking they can cut their way to prosperity, red flags go up. Trimming costs will help in the short term, but sooner or later you find yourself right back to where you started.
Why? Because at some point, you have to stop cutting, or you will impact the quality of your product or service (and if you are in that position, it's an extremely difficult storm to get out of).

It’s also worth noting this insight from Matt Hymers, CEO and Founder of Connected Fanatics, who has suggested that the threat for Nike and other product-led brands goes even deeper…

[The real issue is that] product led brands can’t possibly keep up. They’ve optimised themselves into oblivion. The only differentiator is design. Counterfeit detection has been doubling year on year for a decade. Technology has abolished the barriers of entry they once owned. Sustainability, morally and legislatively, is a threat to the entire business model. Seamless, human, connected technology-based experiences are the only viable differentiator. Verifiable vertical networks are taking over.
In this decade we’ll see a billion dollar software company that is a clothing brand. They’ll be the most profitable an sustainable ever and wipe the floor with the current giant incumbents.

Wether you agree or not, this assertion certainly provides some food for thought…

THE PODCAST

Want to hear more from my conversation with Stefano?

We discuss moving from the Premier League to the National League, setting benchmarks, looking for lessons from outside football, engaging with and empowering youth, being transparent with your fans, and much much more.

Listen to the full podcast via the link below - and I’d love to hear what you think!👇

Listen Now

SOCIAL CLUB

The Sports Pundit Social Club (SPSC) was designed to enable you as readers to hang out with one another without the heavy cost that often goes with traditional sports industry events.

If you’d like to attend an upcoming event, you can reserve your place using the links below:

🎡 London, UK

Thursday 18th January, 5.30pm @ Goldwood’s Sports Pub & Kitchen - RSVP (Hosted by Andy Marston)

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Thursday 18th January, 5.30pm @ North Westward Ho - RSVP (Hosted by Rich Johnson)

🗽 New York, US

Thursday 18th January, 6.30pm @ The Four Faced Liar - RSVP (Hosted by Drew Rauso)

🎬 Los Angeles, US

Thursday 18th January, 6pm @ The Brig - RSVP (Hosted by Kelsey Smith)

If you’d like to request a future meet up location (current suggestions include Melbourne, Dublin, and Lisbon), please register your interest below 👇

Do you have a cool office space or venue and want to host a future event? Drop me a note at andy@sportspundit.co

JOB BOARD

Technology Delivery Executive, Girona FC - City Football Group (Manchester, UK)
Digital Strategy Manager - The Football Association (London, UK)
Brand and Campaign Manager - Red Bull Racing (Milton Keynes, UK)
Vice President of Football Technology - NFL (New York, US)
Game Production Strategic Projects - NBA (New York, US)

Do you have a job you’d like to promote to the amazing readers of this newsletter? Drop me a note at andy@sportspundit.co

Sports Pundit