Barcelona’s New Plan to return to its Prime 🥤
Plus what is the most valuable F1 team, Why United want a wage cap, and this two year old has more followers than Naomi Osaka.
Welcome to Athletic Interest.
Barcelona have tried everything to get back in their prime, but why go the hard route of buying expensive new players when you can simply give your existing squad an energy drink called Prime and hope that does the trick?
Joking aside, Barcelona are reportedly going to be sponsored by Prime Hydration, the sports drink created by YouTubers Jake Paul and KSI, starting next season.
This is a significant move for Prime, with their first foray into sports sponsorship with Arsenal helping the drinks brand record a massive $250m in sales last year.
Demand for the sports drink has become so frenzied that shops have had to limit purchases per person to avoid stampedes of Prime-obsessed kids. Associating the drink with a huge global brand like Barcelona will not only lend extra sporting credibility but also potentially open new markets in Europe and South America.
What is the most valuable Formula 1 team? 🏎
The parallels between Ferrari and Manchester United are incredible. Both wear red and are somehow the most valuable teams in their respective leagues despite being nowhere near the top for years. If we continue this football/F1 analogy, that makes young challenger Red Bull the Man City of Formula 1. This makes sense, as both teams are funded by strange coloured liquids with a weird taste.
Before we get too lost in this thought experiment, let’s get to the main point…Sportico has just released a list of the most valuable Formula 1 teams of 2023. It’s somewhat unsurprising, with Ferrari and Mercedes taking the top spots, and consistent strugglers Haas and Williams propping up the table.
Sportico has explained that the ranking is based on a combination of total revenue, profits, and expert opinion. While it is unclear on the accuracy, the figures seem to confirm recent statements from F1 CEO Stefano Domenicalli where he claimed that teams were rejecting offers in the billions. Also, there is the recent news that an investment group including Ryan Reynolds has purchased a stake in Alpine which values the French team at around $900m, just shy of their Sportico valuation.
NFL fever has taken over Germany 🇩🇪 🏈
People like to joke that NFL is only popular in the U.S. but it looks like the American version of football has finally found a home outside the U.S…in Germany.
The NFL has become so popular in Germany that tickets for the game between Miami Dolphins and Kansas City Chiefs in Frankfurt on November 5th sold out in just 15 minutes, with one ticket re-sale site experiencing a 753% traffic increase from Monday to Tuesday. The ticket prices are approaching $900.
This surge in demand comes after the NFL hosted its first regular season game in Germany last year which saw around 3 million people attempt to get tickets. The speed with which NFL has taken hold in Germany (and to a lesser extent in the U.K.) will vindicate the league’s decision to host 5 international games this year and could encourage further exploration of a potential European-based franchise.
Carlos Alcaraz signs with Luis Vuitton 🎾
If you want to sell something, hire a tennis player! This may seem like an odd suggestion, but turn on your TV or look at the billboards and you will probably see some big names like Federer, Nadal, or Williams trying to sell you everything from Swiss chocolates and French water to German cars and Italian clothes.
What is true of the older generation is also proving true of the younger. With several big names retiring, it looks like advertisers have found their replacement…Carlos Alcaraz. The Spanish maestro has just been announced as the latest Luis Vuitton ambassador, with the company joining BMW, Nike, Rolex, and Babolat in the 20-year olds’ sponsorship portfolio.
With Alcaraz a favourite for Wimbledon, it shouldn’t be a surprise to see his sponsorship income rise further as his career progresses. Alcaraz could become one of the most marketable athletes on the planet.
Man United wants a salary cap for Women’s football. ⚽️
Mentioning a salary cap or financial regulation for football is a great way to find yourself being followed down an alleyway by football agents and beaten senseless by their overstuffed wallets.
While it may be a controversial topic, it does appear to be the future, with UEFA planning a cap based on revenue for all European clubs starting next season. At least, that is how it will work for Men’s football. The Women’s game in Europe is still without any significant financial regulation, a status which is worrying some teams, including Manchester United.
United are calling for a hard cap across the Women’s game, a move that they argue will level the playing field early on and prevent smaller clubs from being priced out by larger opponents.
One argument against such a move at the moment is that Women’s football is still developing and any hard cap would reduce investor interest. The opportunity to pay your way to success was a major contributor to the success of the Men’s game over the last 20 years.
👟 The Boot Room
📈 Nike sales rise but profits fall (and it’s your fault.)
Nike has just released its results for the fourth and final quarter of the financial year and there are two key takeaways:
Sales for Q4 hit $12.83B a rise of 5%, bringing total year sales to $51.2B, a 10% rise.
Profits have fallen, with net income in Q4 dropping to $1.03B. This has left Nike with a yearly net income of just $5.1B, a 16% drop on the previous year.
There are a number of factors contributing to the sales increase, the most notable being recovering demand in the Chinese market after the government eased several Covid restrictions.
The loss in profits is a little more complex, but in a nutshell, inflation has reduced overall consumer spending (that’s you!) which has forced Nike to invest more money into advertising to grow sales. This increased cost has cut into profits.
You also have to consider higher costs in production and logistics and overall fluctuations in currency values.
This is not a problem exclusive to Nike, with several other sports apparel brands feeling the effects of rising costs and slowing demand in places like North America and Europe. As it looks like demand will continue to slow in these areas, it is an uncertain time for companies across the industry.
🎮 Nike bets big on gaming with Fortnite deal
Nike is launching a virtual experience in combination with Fortnite in an attempt to move beyond just physical shoes and connect with customers using the metaverse.
“Airphoria” is a virtual island inspired by AirMax design codes in which Fortnite players can go on a sneaker hunt. Five large virtual sneakers hover above the island and represent five major moments from the history of the Air Max brand.
This is a big move from Nike and shows that they still have faith in the metaverse, a medium that has been subject to some hesitancy of late. Nike has also been working on allowing people to design and sell virtual sneakers within the Metaverse, and it’s not the only major shoe brand making a play in this space. Both Adidas and Puma have also revealed similar plans for virtual sneakers and brand-inspired worlds.
📱 Social Media Madness
🐣 2-year-old Man City Star becomes internet sensation
There are influencers that have spent years analysing social media algorithms and creating content to earn themselves a few hundred thousand followers, and then there is the 2-year-old kid of Man City footballer Phil Foden that gains 2 million followers overnight just because he was photographed with the Champions League trophy.
Foden brought his kid onto the pitch after sealing the treble and little Ronnie was an instant hit with the press and fans, with some accounts and media outlets posting more photos of Ronnie than of his father. This newfound fame has translated into more than 2 million Instagram followers. Ronnie actually has more followers than some major actors, athletes, and influencers, including Emma Raducanu, Naomi Osaka and Rob McElhenney.
While he may or may not decide to follow his dad into football, little Ronnie’s future as an influencer has already been secured.