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Flo story on Bloomberg

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A little Flo content to tide us over while we wait on the damages judgement.

Roughly 500k subscribers. That is the first time I have seen that estimate.

 

Niche Sports Streaming Service Expands While Giants Retrench
2020-12-08 17:00:00.0 GMT

By Brandon Kochkodin
(Bloomberg) -- FloSports Inc., an Austin, Texas-based sports-streaming company, announced Tuesday that it acquired the North American online rights for cycling events held by the Union Cycliste Internationale, the governing body of the sport. UCI events include world-famous road-cycling races such as the Giro d’Italia, as well as events like BMX and mountain- biking championships. FloSports already had Canadian rights to the Tour de France, the world’s premier cycling event, which isn’t part of UCI. Terms of the rights deal weren’t disclosed.

 

Powered by diehard wrestling, cycling and racing fans, FloSports has nearly 500,000 subscribers across more than 25 channels, according to the company. Its cycling channel, FloBikes, saw year-over-year subscriber growth of 122% between last December and this month, even as many sports were shuttered for months on end due to the Covid-19 pandemic. That growth comes with some large traditional players in retreat.


Sports-media giants like Walt Disney Co.’s ESPN have been eliminating jobs and losing subscribers in 2020, while Sinclair Broadcast Group Inc. wrote down the value of its regional sports networks by $4.2 billion just a year after paying $9.6 billion to acquire them. “That sort of speaks to our model, that we’re able to continue to see growth,” said David Weiss, FloSports’ senior vice president for global rights acquisition. “Our model is that we go really deep into sports that otherwise don’t get that coverage.”
 

Focusing on sports that are largely off the radar of ESPN and Fox Corp. allows FloSports to acquire rights for a fraction of what the giants pay for major sports like football or soccer. And FloSports sees another advantage in having a head start in the over-the-top market that its larger competitors have only recently ramped up their focus on. “We were born as a digital entity,” said Weiss. “We had a running start on everyone else that’s moved to OTT.” Founded in 2006 by brothers Mark and Martin Floreani, FloSports began with the idea that there was an audience for the Olympic sports the brothers competed in while in college: Mark was a track star at the University of Texas at Austin, while Martin wrestled at Cal Poly San Luis Obispo. Of course, any success FloSports finds in elevating previously ignored sports to something closer to the mainstream could potentially draw the attention of the ESPNs of the world and threaten to raise future rights fees.
 

“That would be a really good problem for us to have,” said Weiss. “Bring it on.”

 

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5 hours ago, Housebuye said:

Interesting 

average person is paying what, $15/month? ARR $90,000,000

Id love to see the breakdown by sport

i don't know what would make me madder, if the board members at Flo were raking it in and paying the staffers next to nothing or if they staffers are highly paid.....

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12 hours ago, hammerlockthree said:

i don't know what would make me madder, if the board members at Flo were raking it in and paying the staffers next to nothing or if they staffers are highly paid.....

They are almost certainly not profitable. 
  
I know some of the pay scales at Flo - employees are not competitively paid.

 The executives/board probably don’t have crazy salaries. They most likely rely on equity for the high comp. at this point, the equity is likely worth a good amount, but isn’t liquid. 
  
my best guess is they are shopping for a buyer, shooting for around $1 billion (10x ARR would = $900 million). 
  
If that happens, the executive team and investors will probably do well for themselves. I have no idea what the equity allotment is towards other employees, but based on their reputation, probably very low. 
  
Pyles and team were hired because they are were wrestling fanboys, which I love. That also means they had very little leverage when discussing compensation, equity, etc. I know this from my experience going from an avid MMA fan to being employed in the industry due to my passion and dedication to the sport - that was awhile ago (I’m not in that industry anymore).  
  
 

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On 12/8/2020 at 9:26 PM, hammerlockthree said:

i don't know what would make me madder, if the board members at Flo were raking it in and paying the staffers next to nothing or if they staffers are highly paid.....

I don't want to speak for anyone else (and have no idea what the board's thoughts are) but I think Flo has been fair with how they compensate their employees. Unfortunately there's not much of a market for wrestling bloggers. Maybe one day we can unionize and start hauling in the filthy lucre from all the wrestling media industry fat cats. 

and if anyone is looking for where all Flo's subscriber money is going, the first place i'd look is the athletes and media rights holders. a few years ago when ESPN laid off some staff there was some mindless chatter about a sports media rights bubble but in reality sports media rights are still in the midst of a boom time and I don't foresee that ending anytime soon. Flo invests a ton in the sports in which they are involved and that number will only go up in the future. 

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8 hours ago, Jaroslav Hasek said:

I don't want to speak for anyone else (and have no idea what the board's thoughts are) but I think Flo has been fair with how they compensate their employees. Unfortunately there's not much of a market for wrestling bloggers. Maybe one day we can unionize and start hauling in the filthy lucre from all the wrestling media industry fat cats. 

and if anyone is looking for where all Flo's subscriber money is going, the first place i'd look is the athletes and media rights holders. a few years ago when ESPN laid off some staff there was some mindless chatter about a sports media rights bubble but in reality sports media rights are still in the midst of a boom time and I don't foresee that ending anytime soon. Flo invests a ton in the sports in which they are involved and that number will only go up in the future. 

Be interested to see what they spend yearly on lawyers.I know VAC duals are the next one they're going after.Wonder if they spend more on media rights or on lawyers to sue the little guy to get those rights

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