The Wrap: Moneyball | Stake

The football world recovers from 48hours of turmoil, how your age dictates your success and the power of cross-industry innovation.

5 Reaching 52 Week Highs

      • PetIQ (PETQ) +10.5% in the last week
      • Boston Beer Co (SAM) +3.1%
      • Tyson Foods (TSN) +2.1%
      • Hershey Co (HSY) +2.1%
      • Accenture (ACN) +1.2%

Moneyball

Bless Gary Neville. As the football world recovers from 48hours of turmoil, let us understand how US$550m can be promised to clubs seemingly out of nowhere. Where does all this money come from?

No prizes for knowing its broadcasting rights. The biggest sports leagues in the world derive the majority of their revenue from broadcasting deals. TV networks bid for the rights to a sports series and recoup the outlay through ads and/or subscriptions.

The NFL reigns supreme in broadcasting revenue. Last year they generated US$5.9b in broadcast revenue, a figure that will grow past US$10b by 2023. Just last year, CBS generated US$525m in revenue from Super Bowl ads. They paid approximately US$1.1b to broadcast games throughout the whole season, including a Super Bowl.

6 of the top 10 codes by broadcast revenue involve the Beautiful Game. The English, Spanish, German, Italian and French leagues all generate over US$1b annually.

Manchester United (MANU) is listed on Stake. The stock rose 10% on Monday after the Super League was announced before falling 9% from its peak as the league was annulled. In 2020, the club made US$173m from broadcasting and US$635m in total revenue, down from US$306m and US$800 the year prior.

It’s an incredible loop. National icons, childhood heroes, and billions in revenue all made possible by 30-second promos for companies from Coca-Cola to local lawn mowing services. People devote their lives to an athletic pursuit, and it’s made possible by someone, somewhere, buying soft drinks… in a very simplified form.

Golden Oldies

While the record for the youngest unicorn founder seems to be broken every year, research is showing that youth does little in determining entrepreneurial success. In fact, it may be a disadvantage.

Studies out of Wharton Business School concluded that older entrepreneurs have a massive edge in starting successful businesses.

It’s not surprising that older entrepreneurs do better given more experience and technical knowledge as well as better access to capital and networks, their advantage is underestimated. A 50-year-old founder is 180% more likely to achieve high success. At ages 25 and 45 come the most significant increases in the probability of success.

In the United States, the average age of a founder is 42. Focussing solely on high-end industries like tech, VC-backed companies or patent owning companies, the age rises to 43; a figure consistent with the average age in Silicon Valley.

Listen to a podcast/read the transcript on the study here.

Top 5 Gainers

  • PPD Inc (PPD) +20.7% in the last week
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  • Cel-Sci (CVM) +18.9%
  • Harley Davidson (HOG) +12.7%
  • GSX TechEdu (GSX) +12.2%

Top 5 Fallers

  • Riot Blockchain (RIOT) -34.9% in the last week
  • Marathon Digital Holdings (MARA) -34.2%
  • Silvergate Capital (SI) -27.5%
  • QuantumScape (QS) -26.8%
  • Skillz (SKLZ) -23.3%

Trade Teaser

10 cards numbered 1-10 are laid out on a table face down. You and an opponent each pick one up. The person with the highest card wins. After checking your cards, you and your opponent are given a chance to trade but both have to agree to the trade. If you have the #3 card, would you trade or not trade? Why? Answer last week – X=1, Y=0, Z=9. 

What We’re Reading: @TrungTPhan Cross-Industry Innovation 

Twitter threads can condense thousands of pages of books into a series of 280 character tweets. While the details may be spared, they’re amazingly powerful in delivering a message simply.

A great follow, in this thread @TrungTPhan shines a light on “cross-industry innovation”: ideas were taken from one sector and made to work in a completely different field.

Read about how the oil industry pioneered autotune in music or how the Dyson vacuum is inspired by a sawmill, here.