Tonight in Unpacks: Ohio State's national championship has a rumored price of almost $20 million thanks to two collectives, but will this ever happen again? SBJ's Ben Portnoy explores the relationship between these collectives and the teams they shell out millions for in an Early Access look at next week's magazine.
Also tonight:
- How the NBA shook up the All-Star Game
- Springbok Analytics closes funding round, adds Unrivaled, muscles up in health care
- JGR finds FedEx replacement with freight brand Saia
- Texans already close to announcing new president
Listen to SBJ's most popular podcast, Morning Buzzcast, where Abe Madkour wraps up the week with Commissioner Adam Silver’s comments about a potential NBA Europe, the Texans already closing in on a new president, the Dodgers defending their gargantuan payroll and more.
Two outside fundraising groups powered Ohio State to the CFP title. Will it ever be this same way again?
C
Kodak Black lyrics blared as the victorious Buckeyes puffed on stogies, FaceTimed family members and snapped photos future versions of themselves will reflect on with ear-to-ear grins.
There’s no shortage of resources in Columbus. The school regularly ranks among the most significant revenue-generating athletic departments in the country. During the 2023 FY, it slotted first among all Division I schools in total revenue at $251.6 million — $12 million clear of second-place Texas and almost $40 million north of third-ranked Alabama, per USA Today’s College Athletic Department Database.
“It has progressively gone the way it should go,” Clarett said of the broader landscape of player compensation. “Anybody within any industry, when you’re trying to pioneer something, you may not reap the benefits or reap the rewards from what’s going on. But if you have enough conversations for enough people talking about how things should change, then things will change and they’ll change on their own timeline. … That’s where college sports are at.”
How the NBA shook up the All-Star Game
Last seen
“We had a sort of an internal view of it, first in terms of with our task force, and then we reached out to a number of stakeholders,” Spruell said. “And by the way, a lot of people came to us with ideas, whether it was a fan shooting an email or what have you … The rest of the weekend felt really strong, but the Sunday night game in particular, the actual All-Star Game, [we needed] to bring it to newer heights.”
Spruell said momentum then grew to mirror the Friday game on Sunday, with three teams made up of eight NBA All-Stars being joined by the winner of the Rising Stars Challenge. The theories were, one, the Rising Stars winner will play a million miles an hour and could shock an all-star team “on any given night.” Two, the all-star team that plays them won’t want to be embarrassed and will play more desperately. Three, the overall novel tournament format will inherently get players to play with urgency.
The league has thought all of it through as it brings its All-Star Game off life support, even the remote possibility that Bronny James — as part of the G League team during the Rising Stars Challenge — could end up facing his father in a Sunday night semifinal.
Springbok Analytics closes funding round, adds Unrivaled as it muscles up in health care
S
JGR finds FedEx replacement with challenger freight brand Saia
Joe Gibbs Racing has found a replacement for FedEx in the freight category with Atlanta-based Saia LTL Freight, keeping the NASCAR team in a familiar business space. Saia joins JGR as a multiyear sponsor and will have its colors and logo etched onto the No. 54 Toyota driven by Ty Gibbs for seven Cup Series races in 2025. In 2024, Saia was the No. 6 less-than-truckload carrier based on revenue of $2.8B, according to Transport Topics, with FedEx Freight at No. 1 on revenue of over $9B. Saia chose to join NASCAR over entering the NFL, college football, MLB, soccer and golf, according to Chief Customer Officer Ray Ramu, who said the company was embarking on its first serious sports marketing play. He said the company is looking to build brand awareness and give its employees something to rally around. Saia leadership was drawn to NASCAR because of its national reach and demographic fit. “Our drivers, our dockworkers love racing, so we think it’s two-fold for us: We’ll be able to help brand the company and we’ll have a cultural touch to it as well,” Ramu said. Last year, Saia added 21 facilities to take its count in the U.S. up to 214, which Ramu said “cemented our position as a national LTL freight company across the United States, and we felt that NASCAR would give us the lift that we needed from a branding and marketing perspective to let people know that we’re not just a regional company (anymore).” Saia Senior Director of Corporate Communications Mona Gore also noted that the company liked how team sponsorships in NASCAR allow brands to have a more complete takeover by wrapping a car entirely in its colors, versus things like jersey patches in stick-and-ball sports.
MARKET SHARING IS CARING: Saia, which was founded in 1924, breaks the U.S. into six geographical regions, and it has 10% marketshare in what it calls the South Central, and between 5½% to 6% in the other five, according to Ramu. The company is both B2B- and B2C-focused as it does some residential deliveries, but Saia saw particular B2B potential in NASCAR. It will do hospitality with employees and customers at races. Saia will track the lift in revenue from customers who are invited to NASCAR races and track its share in certain markets where it will be activating around the partnership. The company’s name is pronounced “sigh-uh,” and one of the goals of this deal is to get consumers more aware of how to properly say its name and to recognize its logo. Gore said Saia chose Ty Gibbs, team owner Joe Gibbs’ grandson, to be its driver in part because he’s only 22 years old, providing the opportunity to have longevity to their partnership, and because Ty Gibbs can help share with younger consumers Saia’s message of how important the trucking industry is to the economy.
TO BE OR NOT TO B2B: JGR has prided itself on helping its sponsors find new incremental revenue in the sport by introducing them to other corporate partners who could do business together. Saia is hoping that JGR will be able to do the same thing with it. Ramu: “That’s another thing that’s pretty attractive; there was some of that opportunity in some of the other sports that we looked at; this feels like it’s a very defined process that the industry goes out of their way to connect sponsors to work with one another and that’s pretty attractive to me.” Financial terms of the deal were not disclosed. Saia will handle the deal in house. FedEx left JGR last year after being with the team since 2005.
Texans have new president in mind, sources say
Multiple sources say Texans Chair and CEO Cal McNair, along with a search firm, have already conducted a search and tentatively identified a replacement for team President Greg Grissom, whose departure was announced via press release earlier today.
The hush-hush search and selection, which was conducted without Grissom’s knowledge, first came to SBJ’s attention more than a week ago, but I was unable to confirm the details prior to today’s announcement. The hiring is not fully complete, but industry sources have called it a high-profile selection from outside the organization, and expect an announcement to come as soon as Monday.
McNair declined to comment beyond what he said in the statement: “We will provide updates regarding the team's next president in the coming days." Grissom also declined to elaborate on his prepared statement, which read in part: “Over the past four years, I am incredibly proud of what we accomplished for our fans and for our business.”
Grissom had been with the club since its 2002 founding, but took over the presidency at a tumultuous time in Houston -- one month after troubled team President Jamey Rootes resigned and nine days after the first of dozens of women accused then-franchise QB Deshaun Watson of sexual assault.
Grissom, who had been SVP/corporate development, had a four-year tenure that included two more losing seasons, but following the hire of DeMeco Ryans as head coach and drafting QB C.J. Stroud, attendance improved, with big gains in local TV viewership as the team won the last two AFC South titles, along with a major rebranding and uniform change.
EA Sports College Football finishes 2024 as No. 2-selling game in U.S.
Making a return after 11 years in mothballs, EA’s college football game had a freshman season like no other. EA Sports College Football 25 finished its first run on the market as No. 2 in sales for the U.S., per data from Circana, trailing only Call of Duty: Black Ops 6 (one of the most dominant video game franchises in history).
It was the best-selling game on Xbox platforms (maybe an indication that players there played Call of Duty on Game Pass subscription plan and didn’t buy it). And, of course, it became the best-selling sports game in U.S. history back in November.
And in a good sign for the industry, sales of video game content (that’s software, in-game transactions and the like) was up 2% to $50.6 billion, the second-highest total on record (2021 set the high mark, $52 billion, during the pandemic, when consumers spent more money on gaming than ever before). But there were some weaknesses here.
“On the console side, 2024 digital add-on content spending, which would include things like battle passes, was flat compared to 2023, while full game sales drove the overall decline in console content spending,” said Circana Executive Director/Video Games Mat Piscatella.
Another item to keep an eye on: Spending on in-game transactions could be stronger. “Overall spending on digital add-on content for console was flat this year compared to last, where we have seen growth in the past,” Piscatella said.
For the year, Take-Two Interactive’s NBA 2K25 finished fifth in sales, with EA Sports’ Madden NFL 25 coming in sixth (it was third in 2023), EA Sports FC 25 placing eighth and a newcomer of sorts -- the EA Sports MVP Bundle of College Football 25 and Madden NFL 25 -- rounding out the top 10.
WWE 2K25 had a strong showing, coming in at 13th, with Sony’s MLB: The Show 24 sliding in at 14th. And in another win for 2K Sports, NBA 2K24 placed 20th (it was fifth in 2023).
Drilling into sports games
The big franchises from EA and 2K (this year and last year’s versions) dominate the best-selling list of sports games, though NHL 25 did sneak in at the 10th spot.
The year for sports games in 2024 was “fantastic, thanks to EA Sports College Football 25,” said Piscatella. “Spending on Sports video games, excluding add-on content like DLC/MTX, was up more than 25% this year. EA Sports College Football 25 was a massive hit and really helped the market overall.”
Strength in VR?
Growth in non-console VR sales helped offset a dip in console and PC content sales. “So, the PC, Cloud and Non-Console VR bucket is inclusive of all three. Primarily because, in many cases, there is interoperability between them. But for this case this is primarily a PC story. PC add-on content spending helped offset declines in PC full game spending,” Piscatella said.
Rough year on mobile
While sports is one of console and PC gaming’s strongest categories, it’s not faring as well on mobile in the U.S. Per Sensor Tower Insights Analyst Sam Aune, downloads of sports games are down 19% year-over-year, with a drop of 7% in spending on in-app transactions. But he did highlight some bright spots.
“Hunting Sniper by Sparks Info, launched in March 2023, saw huge growth to become the No. 3 sports game by U.S. in-app purchase revenue,” Aune said. “Additionally, Konami's eFootball grew in-app purchase revenue by over 50% in 2024. Unfortunately, most other top sports games did see decline or stagnation in revenue and downloads.”
The top three sports games by U.S. in-app purchase revenue:
- EA Sports FC Mobile Soccer (EA Sports)
- Golf Clash (EA Sports)
- Hunting Sniper (Sparks Info)
The top three sports games by U.S. downloads:
- 8 Ball Pool (Miniclip.com)
- EA Sports FC Mobile Soccer (EA Sports)
- Madden NFL 25 Mobile Football (EA Sports)
Speed reads
- LIV Golf Chief Media Officer Will Staeger is no longer with the organization in what sources are telling SBJ's Josh Carpenter is a mutual parting of ways.
- The sports licensing industry gathered in Las Vegas for the annual Sports Licensing & Tailgate Show have a clear favorite for the Super Bowl, reports SBJ's Terry Lefton: Bills vs. Eagles.
- NASCAR believes its three official carmakers are satisfied with their ROI in the sport and remain committed to it, despite Ford, GM and Toyota all working on varying entries into rival racing property F1, writes SBJ's Adam Stern.
- PGA Superstore continues to grow at a rapid pace in the U.S., adding eight more this year while also getting a boost from the TGL, notes Carpenter.
- U.S. Ski and Snowboard is working with Ski Austria to develop commercial and sport performance opportunities, reports SBJ's Rachel Axon, marking the first time the national governing body has formed an official partnership with an international peer organization.