Pink's Bottom Line on Media, Money and Sports
Reality television, the consumer and NBA title odds
I discuss reality television, the American consumer and 2021 NBA title odds in today’s newsletter.
MEDIA: Reality TV and The Bachelorette
The Bachelorette, one of the country’s longest running reality television shows, begins its 16th season tomorrow on ABC.
(Note: Its sibling show, The Bachelor, has run for 24 seasons, and debuted in 2002. The Bachelorette debuted a year later.)
The finale of the most recent season of The Bachelor ran on March 11, at the beginning of the coronavirus pandemic and a few days before lockdowns occurred in much of the United States.
The Bachelor finale posted solid ratings — more than 8.4 million viewers tuned in to watch, which earned the show its largest audience since 2016.
Pink's Bottom Line
However, in the middle of a pandemic, will viewers embrace shows like The Bachelorette, which rely on physical proximity?
I’m not certain, but I do expect this season’s ratings of The Bachelorette to become a bellwether for the popularity of many reality shows in the middle of the coronavirus pandemic.
MONEY: The Week of the Consumer
We’re going to learn a lot about the American consumer this week, and what we learn just might indicate how strong an economic recovery is underway as consumer spending accounts for upwards of 70% of all US economic activity.
On the economic stats front, tomorrow the government releases its report on consumer prices, and on Friday it releases its report on retail sales for September.
Also, beginning tomorrow, Amazon begins its two-day Prime Day sale, and Target kicks off its two-day Deal Days sale.
These are two of the biggest sales of the year for both Amazon and Target, and they now suggest an earlier beginning to the holiday shopping season, which traditionally begins on the Black Friday, the Friday after Thanksgiving.
Pink's Bottom Line
If we see that consumer prices are not rising too substantially and if we see strong retail sales numbers for September, that bodes well for the overall economic recovery.
If Amazon and Target both have strong sales this week, that would show the strength and confidence of the American consumer, which could lead to better overall economic performance.
As such, we’ll have a clearer picture of where things stand both with the consumer and potentially with the strength of the economic recovery by the end of this week.
SPORTS: NBA Title Odds in 2021
The Los Angeles Lakers defeated the Miami Heat last night in Game 6 of the NBA Finals and won the team’s first NBA title in 10 years. LeBron James, who was named the series MVP, and Anthony Davis led the way for the Lakers.
Before this season began, FanDuel Sportsbook had the Lakers chances to win the NBA title this year at +440 though the Los Angeles Clippers, with title odds of +330, were the betting favorite heading in to this season, according to FanDuel Sportsbook.
(Note: For those who aren’t familiar with sports betting, the Lakers’ number of +440 means that for every $100 wagered on Los Angeles to win the NBA title, a bettor would earn $440 should the Lakers win. It’s equivalent to 4.4 to 1 odds.)
Pink's Bottom Line
So, who’s the favorite to win the NBA championship next year?
No surprise — it’s these same Lakers who are +380 favorites, according to FanDuel Sportsbook.
The Clippers (+460) and the Milwaukee Bucks (+640) are the second and third favorites, respectively, to capture the NBA championship next season, according to FanDuel Sportsbook.
One team that intrigues me the most for 2021 is a team that has been forgotten for much of 2020. It’s the Golden State Warriors, who at +1400 according to FanDuel Sportsbook, are the sixth most likely team to win the NBA title next year.
The Warriors played in five straight NBA Finals from 2015 to 2019, and they won three championships during that span.
They also have their three core players — Stephen Curry, Klay Thompson and Draymond Green — returning at full strength.
Watch out for Golden State next season.
Jeremy Pink is former CEO of private-equity backed Broadcast Sports International where he led the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore. Jeremy currently serves as an advisor, consultant or board member to companies in New York, London, Hong Kong and Dubai in the media, technology, sports and financial tech sectors.
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.