Profit Players Newsletter 4/17

Author

Nate Rodgers
April 17, 2024

This Week’s Biggest Loser

The 88th Masters concluded on Sunday with Scottie Scheffler taking home the victory after he cruised through the back 9 on Sunday. The leaderboard was filled with PGA tour pros and more glaringly, not LIV members. There were 13 LIV players who played in the masters, and only 2 shot under par. These LIV players shot a shocking 82 over par for the tournament. The narrative that going to LIV will have a negative effect on your golf career, may be coming true. Last year’s Masters champion, John Rahm, won the tournament as a PGA Tour player, now as LIV player, he shot 9 over par.

Notable Scores from LIV Players

  • Dustin Johnson: +13 (Missed Cut)

  • Bubba Watson: +10 (Missed Cut)

  • Brooks Koepka: +9 (45th)

  • Joaquin Niemann: +4 (22nd)

  • Bryson DeChambeau: -2 (6th)

One major factor that still remains in the balance is the imminent merger between LIV and the PGA. The LIV tour is burning through money as it is estimated that they have already accrued $2 billion in expenses in just two seasons. What makes that $2 billion even more impressive is that the LIV tour has continued to struggle to get viewership and revenue to increase. A TV deal The CW network negotiated by LIV is estimated to be worth only $3 million where as its counterpart, PGA has a TV deal worth $700 million. With no conclusion to the merger in sight, will we see LIV crash in burn or will the PGA sweep in and fix things?

Shohei Ohtani is changing more than just baseball

Tax Day has now come and gone in the United States. However, amidst this deadline, some California legislators are focusing on future tax years, particularly in light of Dodgers superstar Shohei Ohtani's unprecedented $680 million in deferred compensation from his 10 year, $700 million contract. This has spurred a legislative bill urging the U.S. Congress to establish a cap on deferred compensation, potentially allowing states to capture more tax revenue. The California Center for Jobs and the Economy estimates that Ohtani could save up to $98 million in state taxes by relocating to a different state once his playing days are over, prompting concerns about tax inequality.

(Mark J. Terrill / Associated Press)

Beyond California, deferred compensation is gaining traction, especially in sports contracts, reflecting a broader trend of rising salaries and creative compensation structures. This also has become a more heightened issue for Shohei as his interpreter, Ippei Mizuhara, stole millions from the star and is now facing charges of tax fraud. Experts anticipate challenges in the passage of the bill at the federal level, especially given competing priorities and the upcoming presidential election in 2024.

Notable Athletes who have deferred contracts

  • Max Scherzer - $105 million deferred

  • Christian Yelich - $30 million deferred

  • Chris Sale - $50 million deferred

  • Francisco Lindor - $50 million deferred

  • Stephen Strasburg - $80 million deferred

It is becoming increasingly popular for athletes to defer money for both tax reasons, but also as a way to prepare for retirement. Athletes like Christian Yelich of the Brewers, will be getting paid $2.5 million per year until he turns 50. This is also most common for MLB players as some players from the 1990s are still getting payouts today.

The WNBA is here to stay

The WNBA draft happened last night and to no one’s surprise, Iowa’s Caitlin Clark went first overall in the draft. The WNBA is seeing an unprecedented uptick in interest over the last few months, but many fans are wondering if this interest is here to stay or this is just a quick spike in interest that will ultimately fade. The numbers indicate that women’s basketball and the WNBA is here to stay. In fact, the WNBA has increased average regular season viewership by over 250% since just 2020.

Caitlin Clark’s impact on women’s basketball ratings has broken through to the next level, as a record 2.45 million viewers tuned in to ESPN Monday night to watch as the Iowa star was selected No. 1 in the 2024 WNBA Draft by the Indiana Fever. The previous high mark was set 20 years ago, when 601,000 viewers saw UConn’s Diana Taurasi get snapped up by the Phoenix Mercury. This mark of viewership was the first WNBA related broadcast to surpass 1 million viewers since 2008!

The future is bright for the WNBA and most of the recent success can be attributed to Caitlin Clark. Other stars who already play in the WNBA have helped increase the leagues notoriety as well. Sabrina Ionescu recently went toe to toe with NBA superstar Steph Curry in a 3-point contest. Kelsey Plum and A’ja Wilson led the Las Vegas Aces to back to back WNBA championships and many exciting stars are leaving college this year to join the WNBA. Many are comparing this time in the WNBA to that of Magic Johnson and Larry Bird in the sense that they were the beginning of the new era of what is now the modern day NBA. The WNBA is most definitely here to stay.

Quick Reads

  • Ryan Reynolds and Rob McElhenney’s Wrexham earned back to back promotions with their win on Saturday

  • US Soccer broke ground on their new $200 million headquarters in Atlanta

  • New York City FC was granted plans for their new soccer specific stadium in Queens, New York

  • Arizona Coyotes will be relocating to Salt Lake City, Utah beginning next season

  • The WNBA has plans to expand to 16 teams within the next few years with Philadelphia, Denver, and Nashville as potential host cities

Jobs Openings in Sports

Games of the Week

  • Miami Heat vs Philadelphia 76ers - Wednesday @ 7 PM

  • Atlanta Hawks vs Chicago Bulls - Wednesday @ 9:30 PM

  • Texas Rangers vs Atlanta Braves - (Friday-Sunday)

  • Manchester City vs Real Madrid - Wednesday @ 3:00 PM

  • Bayern Munich vs Arsenal - Wednesday @ 3:00 PM

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