Cosmopolitan $ 5.65 billion sale of Blackstone – Front Office Sports

MGM Resorts is aggressively dabbling in mobile sports betting, but has not forgotten its roots: it purchases the Cosmopolitan casino and resort operations of Las Vegas in a $ 5.6 billion deal.

The Las Vegas Destination Strip was purchased by private equity firm Blackstone in 2014 for around $ 1.8 billion and will change hands when the deal closes in 2022. The Cosmopolitan hosts a bookmaker run by William Hill, property of Caesars Entertainment.

• MGM will pay $ 1.63 billion to become the Cosmopolitan’s casino and resort operator. The physical property is sold to a group of investors including a Blackstone Trust, Stonepeak Partners and the Cherng Family Trust for approximately $ 4 billion.
• MGM will enter into a 30-year lease, with three ten-year renewal options.
• Blackstone said so invested $ 500 million in the property under renovations and additions. It’s turning a $ 4.1 billion in profits on the investment, including the cash flow generated by The Cosmopolitan.

MGM is looking to take full control of BetMGM, the sports betting company it owns 50-50 with Entain. The online bookmaker is available in 14 states and MGM has sponsorship agreements with the NFL, NBA, MLB, and NHL.

In July, black stone acquired a majority stake in Certified Collectibles Group, promoting the collection platform to more than $ 500 million. In April, he joined an $ 80 million funding round for sports media and league start-up basketball. In May 2019, he took a minority stake of $ 204.9 million in the betting platform SuperBet.

He had previously explored buying stakes in Serie A and Sportradar.

Peloton has had a dramatic year, but its financing options are nonetheless prized for their stability by the banking sector.

Peloton contracts with lender Affirm to offer zero-interest loans on its connected bikes and other fitness equipment, which are then often packaged and sold to financial institutions looking for a safe bet.

• Peloton, Affirm’s biggest customer, generated around 20% of lender’s $ 870.5 million revenue for the year ended June 30.
• Unsecured loans to Peloton clients made up the bulk of the $ 845 million Affirm has garnered since 2020 through the packaging of zero interest loans. The interest on these loan packages starts at just over 1%.
• In August, the home fitness giant lowered the price of its signature bike to $ 1,495 from $ 1,895. His treadmill sells for $ 2,495. It resumed sales of treadmills on August 30, following a costly recall.

The company recently launched its own clothing line and is it is believed to be working on a rower.

While Peloton’s revenue from product sales fell in the second quarter, subscriptions to its training service have continued to grow.

The company more than doubled the number of connected fitness subscribers to 2.3 million in the fiscal year ending June 30, bringing in $ 541.7 million to this segment.

Last month, the Washington Spirit of the NWSL named Ben Olsen, former player, coach and executive chairman of DC United. Now there could be a change in ownership, as co-owner Y. Michele Kang calls on majority owner and CEO Steve Baldwin to step down.

Baldwin’s leadership looked promising in 2019 when he said professional female footballers should be paid more than men and Predicts NWSL Could Reach $ 30-50 Million in annual sponsorships.

A recent league survey on several allegations of verbal abuse by former team coach Richie Burke has turned into a larger discussion of female employees in a misogynistic workplace.

• The team has lost 40% of its female staff on its website since the start of the season.
• At the end of last week, fans launched a protest, limiting “match day activities” including “flag flying, chanting and playing the drums” until there was have a new owner.

Baldwin reportedly told Kang in August that he would sell him his shares, but has since changed his mind.

Kang bought a stake in the team last year, adding to the Spirit roster. other dominant owners including Chelsea Clinton, Jenna Bush Hager and Briana Scurry, the former American goalkeeper. In May, Washington Capitals star Alex Ovechkin became an investor.

The growing number of investors comes as the league gains popularity among fans – by the end of the 2020 season, TV audiences have grown by 500%.

Less than two weeks after the Los Angeles Clippers struck a 23-year, $ 500 million deal with Intuit for the naming rights to its new arena, the team are said to have secured more than $ 300 million in a deal with Aspiration.

Online banking is Intuit Arena’s primary financial partner and will display advertisements throughout the site. The building, which will open in Inglewood in 2024, costs $ 1.2 billion, adding to the $ 66.2 million owner Steve Ballmer paid for the land and $ 300 million for the Forum.

Aspiration focuses on respecting the environment, which fits in well with the Clippers’ goal of making the Intuit Dome 100% carbon-free.

• Philadelphia 76ers coach Doc Rivers is an investor in Aspiration. The company has raised $ 450 million nowadays.
• Last month, the financial services firm reached a deal to go public via the SPAC merger with InterPrivate III Financial Partners, which will market the combined company to $ 2.3 billion.

Ballmer, who bought the Clippers for $ 2 billion in 2014, wants to make Intuit Dome the the most sustainable arena in the world. It would save 10 million gallons of water per year and reduce vehicle travel by 15% through carpooling incentives.

Aspiration will also partner with the team to launch a fund, offering “fans the opportunity to offset their own carbon impact every time they buy a ticket.”

Intuit Dome will generate estimated annual economic activity of $ 260 million for Inglewood. The Clippers are valued at $ 2.75 billion.