Pink's Bottom Line on Media, Money and Sports
SiriusXM, the restaurant industry and the Los Angeles Rams
In today’s newsletter, I discuss Howard Stern’s new agreement with SiriusXM, the state of the restaurant industry and the quiet emergence of the Los Angeles Rams.
MEDIA: Howard Stern and SiriusXM
Radio personality Howard Stern will stay at SiriusXM satellite radio for another five years as Stern and SiriusXM announced today that they reached a new agreement.
Underscoring the importance of Stern to the satellite radio provider, SiriusXM stock moved higher immediately following the announcement that it had secured the popular radio personality to a new deal.
Pink's Bottom LineWith Stern on board for the past 15 years, SiriusXM has seen its business grow dramatically.
However, as podcasting and video streaming gain traction and momentum around the country, SiriusXM faces strong competition outside of its core satellite radio business.
While SiriusXM company has made acquisitions both in music streaming and in podcasting to help handle these competitive challenges, signing Stern to a new deal is crucial as it keeps its biggest star on its biggest moneymaking service.
MONEY: Restaurant Business
The coronavirus pandemic has pummeled the restaurant business, and results from a new survey by the National Restaurant Association only confirm that.
The Association’s survey results show that nearly nine in ten restaurants say that revenue already has plunged 36%, and restaurant owners don’t anticipate that things will get better any time soon.
Eight in ten of those surveyed have expectations of sales revenue declining even further next quarter, and 58% expect layoffs and furloughs to remain in effect in some form.
Pink's Bottom LineIt is exceptionally dire news for the restaurant industry as it looks to recover from the devastating impact of the coronavirus pandemic to its business.
If the restaurant industry can weather the next three months — likely with help of additional government assistance — it potentially could emerge, albeit in a very weakened state, and ultimately look to grow again in the second half of 2021.
SPORTS: Los Angeles Rams
While it was only two years ago that the NFL’s Los Angeles Rams played in the Super Bowl, many had considered the team coming into this year as perhaps the third or fourth best team in its own division.
Now, with three-quarters of the season complete, the Rams are tied for the lead in the NFC and quietly looked poised to become a real factor in the post-season.
The oddsmakers agree — sort of — with the Rams as the third favorite to win the NFC and represent the conference in the Super Bowl. FanDuel Sportsbook has the Rams at +500 to win the NFC behind New Orleans (+220) and Green Bay (+350).
(Note: If you’re unfamiliar with sports betting, the Rams at +500 to win the NFC means that if a bettor wagers $100 on the Rams to win and the Rams do indeed win, that bettor wins $500.)
Pink's Bottom LineLos Angeles is 8-4 this season with two of those losses coming against division opponent San Francisco, a team that traditionally gives the Rams problems — the 49ers have beaten the Rams the last four times the teams have played.
I expect the Rams to win their division and to finish the season 11-5, which would include wins in their last four games over division rivals Arizona and Seattle.
A division title puts the Rams in a very strong position to make some noise in the post-season, particularly if either New Orleans or Green Bay stumbles.
Jeremy Pink is COO of Geniecast, a leading virtual content and experience company. He is also currently an advisor to companies in media and financial tech. Jeremy is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. Jeremy is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)