Sinclair, Tennis Channel take $1.5M stake in Agassi Sports for ad time
What's the deal? SinclairDealroom has a profile for this one. Try Dealroom → Television Group and The Tennis ChannelDealroom has a profile for this one. Try Dealroom → have taken an equity stake in Agassi Sports EntertainmentDealroom has a profile for this one. Try Dealroom → in exchange for two years of advertising inventory. The OTC-listed company, built around tennis stars Andre Agassi and Stefanie Graf, will issue 300,000 restricted shares valued at $1.5 million — 240,000 to Tennis Channel and 60,000 to Sinclair.
What's the endgame? Agassi Sports Entertainment gets promotion across Sinclair and Tennis Channel linear television, digital, and social platforms. It plans to use that reach to build awareness for the Agassi App, "Let's Play Pickleball and Padel," the World Series of Pickleball, and merchandise.
Why now? Investor and media interest in racket sports is rising. Apollo Sports Capital led a $225 million investment in Pickleball Inc. this year, a deal reportedly valuing it at $750 million.
What could go wrong? Agassi Sports Entertainment describes most of its initiatives as planned rather than operating. The company's own filings warn of a limited operating history, no significant revenues, a history of losses, and a need to raise capital that could dilute shareholders.
"Racket sports are experiencing tremendous momentum," said Rob Weisbord, chief operating officer and president of local media at Sinclair, citing the chance to reach fans "while participating in the company's expected long-term growth through our equity investment."
"Reaching fans is central to everything we are building at ASE, and these agreements give us a powerful way to do it," said Ron Boreta, chief executive officer of Agassi Sports Entertainment.
The signal: The deal shows media companies willing to trade ad space for equity bets on racket sports. But at $1.5 million for a firm promoting unlaunched products, it is a small wager next to the nine-figure sums flowing into established pickleball assets.
Read more: byteseu.com
Image credit: StephenGA
