Table of Contents

• NFL’s games in Brazil, Europe are key to more reve …

• Talking with the CEO of tennis

• Top Tickers

• Why Private Equity firms are opening the door to r …

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NFL’s games in Brazil, Europe are key to more revenue growth

NFL's global expansion takes a major leap forward with first game in Brazil

The NFL is bringing the action to South America for the first time, marking a historic milestone in its mission to grow globally. With 5 games planned this season in Europe and South America, Commissioner Roger Goodell emphasized that international growth is pivotal to the NFL’s long-term revenue strategy.

After generating $13 billion last season, the league is now turning to emerging markets like Brazil, Germany, and the UK, not just for new fans but also to boost sponsorships and media deals. For instance, the NFL went from two sponsorship deals in Germany in 2022 to 15 today, showing the potential impact of these games.

The NFL’s Global Markets Program is another key driver, allowing 25 teams to build brand awareness and fan bases across 19 countries, including the Miami Dolphins expanding into Argentina plus Colombia and the Rams into Japan plus South Korea. The league’s strategy goes beyond just game-day excitement, aiming for lasting brand recognition worldwide.

Roger also spoke on the NFL’s growing presence on streaming platforms like Amazon, Peacock, and YouTube. While traditional broadcasting remains a core avenue—85% of games are still aired on broadcast television—the shift to streaming ensures that the NFL meets fans where they are.

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Talking with the CEO of tennis

The business of tennis: navigating challenges and growth opportunities

As the U.S. Open wraps up, with record-breaking attendance and a surge in fan engagement, tennis is at a pivotal moment. Over a million fans have attended the tournament, highlighting the sport's immense popularity. Yet, challenges remain. Complex scheduling, late start times, and underperforming tournaments throughout the year are hindering tennis' growth outside the Grand Slams.

Lew Sherr, CEO of the USTA, outlines the sport’s focus on innovation. Initiatives such as fan week have proven a success, with over 216,000 fans attending free events. Partnerships, celebrity engagement, and new infrastructure investments are boosting tennis' profile. However, Lew notes the broader issue: 70% of tennis fans only follow Grand Slams. To combat this, there is increasing interest in creating a tennis "Premier League" to draw attention year-round.

In an era of global investment in sports, private equity firms and sovereign wealth funds are eyeing tennis. While this brings opportunities for revenue growth, Lew emphasizes the need to balance top-tier and lower-tier tournaments to ensure the entire ecosystem thrives. The rise of pickleball has also sparked debate, with USTA addressing concerns over shared facilities while using pickleball courts to introduce new players to tennis.

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Top Tickers

Some of the most active and relevant securities and quotes (compared to previous day's closing price)

Why Private Equity firms are opening the door to retail investors

When the door opens to retail investors, private equity firms could face greater regulatory scrutiny impacting the high fees seen historically

Private equity, once reserved for institutional investors and ultra-wealthy individuals, is slowly becoming more accessible to retail investors. While this opens a new revenue stream for firms like EQT, CVC, and Partners Group, it also introduces fresh challenges.

A regulatory shift has allowed these firms to tap into the affluent market, diversifying their investor base. However, this new landscape may increase scrutiny, particularly around high fees that private equity firms have long enjoyed. As retail participation grows, balancing access with the traditional fee structure will be key.

Morningstar’s latest analysis assigns a narrow moat to these firms, citing strong proprietary deal flow and long-term client relationships as barriers to entry. While EQT excels in tech and healthcare, CVC is more traditional, and Partners Group focuses on tailoring solutions to investor needs.

Yet, challenges remain: CVC, in particular, faces criticism over a weak balance sheet and controversial fee structures that prioritize founding shareholders over ordinary ones. For investors, focusing on recurring management fees and avoiding dependence on volatile performance fees is crucial.

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Cheers to learning transfer! Ever played poker? At Susquehanna International Group, new traders aren’t just learning the intricacies of financial markets—they’re also sharpening their poker skills. As part of a 10-week training program, recruits spend over 100 hours playing Texas Hold'em, honing their ability to take calculated risks and make decisions with incomplete information. This isn’t just a game—it's a way to teach traders how to assess probabilities and execute well-timed strategies.

Poker and trading share a vital connection: both require a deep understanding of risk, an ability to read the situation, and the patience to wait for the right moment to act. As Todd Simkin, a veteran at Susquehanna, explains, playing poker teaches traders to “think in probabilistic terms,” a mindset that is crucial when making high-stakes financial decisions.

From the poker table to Wall Street, it’s all about sizing bets, managing risk, and understanding the probabilities—skills that can lead to big wins, whether in poker hands or financial markets.

Success (in finance) isn’t about avoiding risk—it’s about managing it wisely…

Wish you a good start into the coming week!

Irg

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