Tensions building in NASCAR? Bally Sports renews three local media deals and the legacy of Dan Wieden
A big thank you to my great colleague, Reginald Walker, who picked me up all week last week as I was on the IR. He did such a great job. I was worried I'd be the Wally Pipp of the Morning Buzzcast. But it's great to be back with you today, and I hope to see all of you in New York next week for the World Congress of Sports, October 11th and 12th. Register now. Next week, the World Congress of Sports.
And this is your Morning Buzzcast for Monday, October 3rd. Good morning, I'm Abe Madkour. Thanks for listening to the Morning Buzzcast. You know, instances like Saturday in Indonesia just anger you, frustrate you, breaks your heart. How more than a hundred people can lose their life around a soccer match just doesn't make sense. A minute of silence was observed before soccer matches around the world on Sunday in honor of the victims of the disaster at the stadium in Indonesia that claimed more than 120 people. Most of the victims were trampled upon or suffocated as chaos really erupted after the game on Saturday night. Witnesses described police officers beating fans with sticks and shields before shooting tear gas directly into the crowds. This was all after a surprising loss for the home team, but it was all so unnecessary, and we'll have to watch how the leadership in global soccer responds. But a terrible day and a terrible night in Indonesia on Saturday.
Let's move on. We've talked a lot about Saudi Arabia on the Buzzcast. Now Saudi Arabia is betting big on esports and gaming. Reuters reported that Saudi Arabia's Savvy Games Group, which is owned by the Public Investment Fund, the Sovereign Wealth Fund, will invest more than $37 billion in initiatives aimed at making Saudi Arabia a global hub for gaming and esports. Yes, you heard that right, more than $37 billion. This will include taking minority stakes in gaming companies and plans to acquire a leading game publisher. The bottom line here, this ambitious strategy is all designed to make Saudi Arabia the ultimate global hub for the gaming and esports industry by 2030. Now, we've seen the PIF's interest in LIV Golf, we've seen their ownership of Newcastle. Now Saudi Arabia's PIF fund is looking toward esports and gaming. Certainly a story to watch.
A story in NASCAR that's getting more and more attention, and it's all related to driver safety and the Next Gen car, you have seen some drivers get injured, and now one of the most outspoken driver-owners, Denny Hamlin, has been calling out NASCAR's leadership. This is a story that escalated over the weekend in Talladega. Before Sunday's race, Denny Hamlin said the new car needs to be totally redesigned after two drivers suffered concussion-like symptoms in crashes this year. He was joined on Saturday by driver Chase Elliott, who is generally very quiet, never speaks out, but Chase Elliot said how disappointed he was that NASCAR is in this situation. It should be noted, Chase Elliott went on to win Sunday's race at Talladega. Hamlin said on Saturday the reason NASCAR is in the position is "Bad leadership," and he went on to call for new leadership. That was on Saturday.
But after Sunday's race, Denny Hamlin was singing a little different song. He praised NASCAR's President, Steve Phelps, he said he's great friends with Steve Phelps, that Phelps is the leader that NASCAR needs, but he said Phelps is not who he directed his comments toward. So Denny Hamlin taking on the leadership at NASCAR is not new. Let's just say there is real tension between Denny Hamlin and the France family, and this comes while NASCAR will start talks on a new TV deal and renewing its charter agreement. So Denny Hamlin, an owner-driver, very outspoken right now about NASCAR's leadership, and that certainly adds to tension both in the garage area and in the boardroom.
Let's move on. We know that Steve Ballmer of the Clippers has big ideas and big plans, and part of that's always focused on the media presentation of his team's games. While there's always been speculation that Steve Ballmer would want to create his own sports network or look for some new innovative ways to broadcast his games, look what he did with Second Spectrum, now he will remain on traditional linear television with Bally Sports, as the Clippers and Bally Sports finalized a new media deal that keeps the majority of the Clippers' games on Bally Sports. The agreement is said to be for multiple years, so if you're a Clippers fan right now, you'll see your games on television in three ways. Bally Sports, KTLA, or exclusive national broadcast. So, the Clippers staying with Bally Sports for the foreseeable future.
The deal with the Clippers comes as Bally's has actually extended a few other team deals. They recently renewed the Predators with Bally Sports South, and the Pacers with Bally Sports Indiana. This comes as SBJ's John Ourand has reported that Diamond Sports Group, which is the parent of Bally Sports, has retained the investment banks LionTree and Moelis. Now, the move to hire these banks has led to several industry executives believing that the group's 21 regional sports networks are being prepared to be sold. Now, regardless of that, deals are still getting done at the local level. So we've seen three here, Bally's with the Predators, Bally's with the Pacers, and now Bally's with the Clippers, all extending local media deals.
Let's stay with Bally's, because we've also talked about how Bally Sports is rolling out its direct to consumer service in a number of its market coverage areas. That allows people who don't want to pay for the traditional cable service to still subscribe to a direct to consumer service to watch their local teams' games. One market that Bally's is in is in Cleveland, and here's an interesting twist to the service, the Cavaliers will pay the cost of the Bally Sports+ subscription for all Cavaliers United members. Those are people with full season ticket plans, half season ticket plans, maybe corporate sponsors. This will allow fans to subscribe directly to Bally Sports+ and not have to subscribe to a traditional cable provider. Now, that service costs $19.99 a month, but again, if you're a Cavs United member, the team will pay this monthly fee. We haven't seen much data on the usage or consumption of the local Bally's direct to consumer service, but certainly this offer will help people in Cleveland engage with their local teams and subscribe to that direct to consumer service.
Let's end on a few things here. The future of the Baltimore Orioles has come up quite a bit on the Buzzcast. We know what the Angelos family has said time and again, that they plan to remain in the city, and one good indication of this is that the Orioles apparently intend to sign a new lease with the Maryland Stadium Authority committing them to remain in Baltimore. This would come, of course, as the Angelos family is in the midst of a courtroom dispute over control of the team. Now, a formal signing has not taken place, but Orioles CEO John Angelos sent a memo to front office staff expressing his plan to lock the team into a committed lease sometime in the next few weeks. So no date has been set for the lease signing, but all indications are that the Orioles will sign a lease to remain in Baltimore for the foreseeable future.
And finally, we'll end on a sad note. How many times in your life have you heard it or said it? Just do it. It's such a part of our cultural lexicon and the man who came up with this term, Dan Wieden, died Friday at the age of 77. Dan Wieden, along with his late partner David Kennedy, formed Wieden+Kennedy, which became one of the most influential ad agencies in the world, and also one of the world's largest independent ad agencies. The agency today employs 1,500 people at eight offices around the world, but more than that, Wieden+Kennedy is well known in the sports world. They of course did work for Nike, they did work for ESPN, they've done work for Formula 1. They created so many key phrases and so many key creatives and cultural touchpoints that were part of the world that we live in. Think of Lil' Penny, think of Charles Barkley saying he's not a role model, think of Mars Blackmon, Bo Knows, and of course, Just Do It. All the work of Wieden+Kennedy, and Dan Wieden will be remembered as one of the advertising world's most influential figures.
So that is your Morning Buzzcast for Monday, October 3rd. I'm Abe Madkour. Thank you for listening. Again, still time to register for the CAA World Congress of Sports. I'd love to see you there. Until I see you next week, stay healthy, be good to each other, I'll chat with you tomorrow.