The former president of the MGM Grand casino in Las Vegas was sentenced to one year of probation Wednesday on a federal criminal charge related to his failure to report millions of dollars in wagers by an illegal bookmaker at his casino.

Scott Sibella, the ex-MGM executive, also was ordered to pay a $9,500 and another $100 special assessment by U.S. District Court Judge Dolly Gee in Los Angeles, according to the Associated Press.

Sibella’s probationary sentence was in line with the sentence recommended by prosecutors and his defense lawyers.

“You will never see me in your court again,” the 61-year-old Nevada resident told Gee, as he also apologized to family, friends and former employers, the AP reported.

Sibella pleaded guilty in January to one count of failure to file reports of suspicious transactions required to be made by casinos under the Bank Secrecy Act. MGM Resorts owns MGM Grand, and more than a dozen other Las Vegas properties, including The Cosmopolitan of Las Vegas.

The sentencing comes more than a week after the Nevada Gaming Control Board filed a complaint against Sibella with the state Gaming Commission for conduct underlying the federal criminal case. The new civil complaint is seeking a a fine and action against Sibella’s gaming license.

Sibella, who was president of MGM Grand from August 2017 through February 2019, admitted knowing that a patron of his casino, former minor league baseball player Wayne Nix, ran an illegal bookmaking business, according to the Department of Justice.

“Despite this knowledge, Sibella allowed Nix to gamble at MGM Grand and affiliated properties with illicit proceeds generated from the illegal gambling business without notifying the casino’s compliance department,” the DOJ said in a press release in January.

“Not only did Sibella allow Nix to gamble at the casino, he also authorized Nix to receive complimentary benefits at the casino, including meals, room, board and golf trips with senior executives and other high net-worth customers of the casinos to further encourage Nix to patronize the casino and/or other affiliated properties,” the DOJ added in the statement.

By 2020, MGM Grand had accepted more than $4 million in cash that was illicit proceeds from Nix’s bookmaking business, the department said.

Nix pleaded guilty in April 2022 Los Angeles federal court to one count of conspiring to operate an illegal sports gambling business and one count of filing a false tax return. He has yet to be sentenced for those crimes.

Sibella became president of Resorts World casino, which is owned by Genting Group, in 2019.

He “was terminated by Resorts World when it learned of the investigation of Mr. Sibella regarding conduct at his prior employer,” Sibella’s lawyers wrote in a court filing. “Mr. Sibella is currently unemployed.”

At the time of Sibella’s guilty plea, the DOJ also said it had resolved an investigation into alleged violations of money laundering laws and the Bank Secrecy Act at MGM Grand and The Cosmopolitan. The casinos agreed to settlements that required them to pay a combined $7.45 million, as well as to enhance their anti-money laundering compliance program.

“In their respective [non-prosecution agreements] MGM Grand and the Cosmopolitan each accepted
responsibility for laundering Nix’s illicit funds and failing to properly file suspicious activity reports (SARs) on Nix, who conducted numerous transactions involving millions of dollars at the casinos between 2017 and 2020,” the DOJ said at that time.

Marriott And MGM Resorts International On Monday, it announced a partnership to connect its loyalty programs and give customers more options to take advantage of.

Under the deal, MGM guests in the US can earn Marriott Bonvoy Rewards points and Bonvoy members, in turn, will have access to 17 MGM properties when they spend their points.

The 40,000 rooms MGM offers will increase Marriott’s global portfolio by 2.4%.

The partnership seeks to take advantage of frequent or business travelers, who can be fiercely loyal to certain hotel brands in an effort to cash in on the rewards. These loyalty programs are driving businesses and helping to differentiate themselves from competitors at a time when travel continues to recover from a pandemic shutdown.

“The value is in the quantity and quality of the customer,” MGM CEO Bill Hornbuckle told CNBC in an interview Monday.

Bonvoy has more than 180 million members. If members want to use their rewards points for stays on the Las Vegas Strip, currently, their only hotel option is Hotel Cosmopolitan, which MGM bought in 2022.

When the new partnership launches this fall, Bonvoy members will be able to redeem their rewards at 12 more resorts in the strip and five more MGM resorts nationwide.

Marriott CEO Tony Capuano said MGM Resorts brings a wealth of intellectual property to the portfolio in addition to entertainment, upscale culinary options and other one-of-a-kind experiences.

“It is really an exciting opportunity for our members,” said Capuano.

Capuano said last month that the global hotel chain raised its revenue per available room forecast based on a 26% increase in group business this year.

The convention business has yet to fully recover from the lows of the Covid-19 pandemic. However, the conference calendar is packed, and there is optimism that teamwork, along with increased international visits, may push the results even higher.

Las Vegas is one of the top destinations in the United States for conferences, conventions, and meetings.

When asked if the Bonvoy program would give MGM a competitive edge in the syndicated business against competitors such as CaesarHornbuckle said, “The answer is unequivocally yes.”

Meanwhile, casinos face tough year-over-year comparisons in the second half of 2023, and a partnership with Marriott could give MGM a competitive edge in sports betting business BetMGM, which is jointly owned. get.

MGM sportsbook customers will earn Bonvoy points on certain transactions, and Bonvoy members will see marketing of MGM sportsbooks on the Marriott website.

Adam Greenblatt, CEO of BetMGM, stated in a press release announcing the deal that it would create “a truly powerful rewards program that connects our players and Marriott guests to the comprehensive omnichannel BetMGM experience.”

— CNBC’s Don Gil, Jessica Golden and Casey O’Brien contributed to this report.

The Stanley Cup belongs to Sin City.

The Vegas Golden Knights, in only their sixth season in the NHL, won the league championship on Tuesday night, completing a 4-1 win over the Cinderella Florida Panthers.

Vegas’ rapid rise to the top of hockey has taken the sports world by surprise, but that’s exactly what owner Bill Foley intended when he cut his $500 million expansion fee in 2016..

It’s a remarkable feat for an expansion team in any sport, but especially for an ice hockey team in a desert city that, until recently, served as a desert for professional team sports.

Now, those in Las Vegas have become Golden Knights fans.

“I was in Game 5 of the Stanley Cup Final and T-Mobile Arena was absolutely amazing,” Bill Hornbuckle, CEO of MGM Resorce, told CNBC on Wednesday.

On Golden Knights game days, the MGM property surrounding the team’s home, T-Mobile Arena, is packed with customers. That’s what former MGM CEO Jim Morin envisioned in 2017, when he described his efforts to turn Sin City into a sports city.

It’s more than just hockey, too. Vegas’ success in the NHL also underscores the city’s rapid development into a major player in the sport.

Morin defended the Las Vegas Aces in the WNBA, which MGM owned at the time and later sold to Las Vegas Raiders owner Mark Davis in 2021.

Davis apparently bought into the concept of Las Vegas as a sports destination. He moved his football franchise, long a California staple, to the city in 2020. The team’s Allegiant Stadium will welcome its Super Bowl to Vegas for the first time next year.

The Golden Knights have been contenders since their first season. They quickly garnered a fierce fan base as they reached the Stanley Cup Finals in 2018, losing to the Washington Capitals. Between then and this year’s tournament, the Golden Knights have reached the conference finals twice and only missed the playoffs once.

The team often sells out its home games, which attracts locals and tourists alike. The city is black and gold during the hockey season. MGM Resorts The Golden Knights jersey is worn on a replica of the Statue of Liberty outside New York, New York.

The community spirit surrounding an NHL team is felt throughout the city’s sports scene.

“This is an exciting time for our city as we cement our position as one of the best sports and entertainment destinations in the world,” said Herbuckle.

Sandra Douglas Morgan of Las Vegas is now the president of Readers. She told CNBC in a recent interview that her town is poised to capture the imagination of sports fans everywhere, with its entertainment, dining, shopping, and of course, gambling options.

“We’re going to make sure that we continue to provide Las Vegas and our 40 million visitors from around the world with these life-changing experiences,” she said.

Casinos in Vegas also benefit from the city’s inaugural Formula 1 race, which is scheduled for November. Wynn, for example, offers a five-star weekend package priced at $1 million.

While Las Vegas lost out this year to a Major League Soccer expansion team, it looks like the Major League Baseball team is on its way.

The Oakland A’s signed multiple agreements to move the team to the Vegas location. This week, the Nevada Senate approved a bill to raise $380 million in public funds for a professional baseball stadium. The bill now goes to the state assembly.

Rumors and hopes have persisted for years about the potential of an NBA expansion team, although nothing solid has emerged.

For now, though, Las Vegas is deeply fond of the Golden Knights, a pride that forces locals to brave the intimidating strip tourist and traffic to support their team.

And now the Knights are the kings of hockey.

China is letting go of pandemic lockdowns, and American companies are loving it Procter & GambleAnd Starbucks And MGM Resorts International He says the country’s recovery is boosting their overall sales as consumers in their home markets watch their wallets.

With its large population and bloating middle class, China is a desirable market for many multinational companies that have seen their business grow in the United States. But the no-Covid policy, which imposed severe restrictions to stop the spread of the virus, has hurt the country’s economy — and the revenues of many American companies that sell their goods or services there.

After backtracking on policy in December, China’s economy grew 4.5% in the first quarter. US companies have reported a return to demand in China, boosting their sales at a time when many US consumers are cutting back on their spending.

However, the recovery has not been as quick or dramatic as many investors had hoped. Most companies are still waiting to surpass pre-epidemic sales in China. The travel retail sector is taking longer to bounce back. And apples Sales fell in the China region that includes the mainland, Hong Kong and the neighboring self-ruled island of Taiwan.

Morgan Stanley analyst Kelly Kim wrote in a research note that the consumer team in China expects the recovery to come in three phases: spring break in February through April, summer “revenge spending” in May through July, and a stable recovery starting in August. .

US-based restaurants were among the companies that saw demand return in China. But sales haven’t returned to 2019 levels yet.

Starbucks reported that its same-store sales in China rose 3% in the most recent quarter, reversing a decline. Some Wall Street analysts were still expecting same-store sales for the company’s second-largest market to shrink.

A year ago, the coffee giant shelved its outlook for the year, citing lockdowns in China as one of the reasons for the decision. In that quarter, Starbucks store sales in China fell 23%.

Yum ChinaAnd yum brands The master franchisor in China, also said same-store sales grew 8% in the first quarter. China is Kentucky Fried Chicken’s largest market and Pizza Hut’s second largest.

“We benefited from increased mobility and experienced 40% surplus growth in transit and in tourists. However, same-store sales in these locations in the first quarter remained 20% to 30% below 2019 levels,” Yum CEO says. China Joey Wat to analysts on the company’s phone call.

It also appears that Chinese consumers are traveling again as restrictions are lifted, visiting theme parks and casinos. A host of US companies were helped by an increase in spending on travel and leisure at the start of the year.

Disney It promoted “improving financial results” at its resorts in Shanghai and Hong Kong.

“It’s been really gratifying to see the recovery from the pandemic shutdowns that we’ve seen,” Christine McCarthy, Disney’s chief financial officer, told analysts Wednesday on the company’s conference call.

Macau, the world’s largest gambling hub, has seen a resurgence of tourists after testing requirements for inbound travelers from the mainland, Hong Kong and Taiwan were scrapped. Tourism peaks during the Lunar New Year holiday in late January.

MGM Resorts International operates MGM Cotai and MGM Macau locations in the region. Earlier this month, the casino giant reported a quick return to profitability as traffic at Chinese casinos reached pre-pandemic levels. In the first quarter, its China properties generated adjusted earnings of $169 million, or 88% of the division’s adjusted earnings four years ago.

Airbnb She said the Asia Pacific division last quarter saw its largest year-over-year growth in nights and experiences booked. The company shut down its domestic business in China in 2022, closing all property listings on the mainland to focus on helping Chinese consumers find housing abroad instead.

“We are encouraged by China’s recent lifting of travel restrictions although we expect the recovery to be gradual due to challenges with limited flight capabilities,” the company wrote in its quarterly letter to shareholders.

While many US-based companies are benefiting from China’s recovery, companies are still waiting to see the same recovery in travel retail.

SK-II, a luxury skincare brand owned by Procter & Gamble, has seen its sales rebound in China, with the notable exception of the travel retail segment. Overall, Procter & Gamble’s organic sales were up 2% in China. With consumer traffic picking up, the consumer packaged goods giant expects an even bigger rebound in revenue.

Scott Rowe, Chief Financial Officer, Inc textureCouch’s father, Kate Spade and Stuart Weitzman, said Thursday that the company has begun to see an uptick in domestic Chinese travel, including in Hong Kong and Macau. However, he added that global Chinese tourism is below pre-pandemic levels – and said the prospect of more travel could present opportunities in the future.

At its largest unit in China, Tapestry expects a mid-single-digit gain in revenue for the fiscal year, including an expected increase of about 50% in the next quarter. The company’s sales momentum in China is helping offset weakness in the United States, as North American consumers have become more cautious.

Although many companies are struggling with travel retail in China, at least one company is already seeing its sales bounce back at duty free and tourist destinations.

cosmetic giant cutie It said it has seen consumer traffic return to retailers, and noted more flights to the tropical island and Hainan shopping district, where it has dozens of stores. The French-American company owns Covergirl, Kylie Jenner’s beauty lines, and a wide range of perfume and cosmetic brands. Coty’s travel retail sales increased more than 30% in the quarter.

Inventory abundance affected Coty’s sales in China in its most recent quarter, but April sales were still higher than both the year-ago period and the two years prior.

Piper Sandler analyst Corinne Wolfmeyer called the company one of her favorite beauty stocks in a note to clients following Coty’s quarterly earnings report. It cited its performance in part in China.

“We remain cautiously optimistic about China in terms of the near-term cosmetics market, but for COTY specifically, we view the company’s strategic investments in the region and key product launches as a driver of outperforming market,” she wrote.

CNBC channel Melissa Rybko And Stephen Sykes Contribute to this story.

Fox Acquired the right to purchase an 18.6% stake in sports betting company FanDuel Group from the parent company flutterbut not on evaluation, according to a ruling on Friday from an arbitrator in New York.

If Fox exercises its option to acquire the stake, it will be at a price of at least $3.72 billion.

The decision ends a lawsuit that has lasted more than a year between the two companies over the evaluation of FanDuel, which has emerged as one of the leading sports betting platforms in the United States along with services from kingsAnd the Caesar And the MGM.

The price Fox will have to pay depends on FanDuel’s $20 billion valuation, according to the ruling. Flutter, which owns approximately 95% of FanDuel, acquired a 37.2% stake in the company in December 2021 with an implied valuation of $11.2 billion. Fox argued that the price should depend on this limit.

However, Fox could have been asked to pay much more. Analysts at Jefferies said in March 2021 that FanDuel could be valued at $35 billion, which would estimate nearly a fifth of the stake at nearly $6 billion.

“Fox is pleased with the fair and positive outcome of the Flutter arbitration,” the company said in a statement following the ruling. “Fox has no obligation to allocate capital towards this opportunity unless you exercise this option. This optionality underscores the meaningful ownership share in the market driving the online sports betting process in the US the tremendous value that Fox has created as a premier media partner in the sports betting scene.” American”.

Fox has a 10-year option to acquire the stake, which runs through December 2030. The arbitrator ruled that there would be an annual sliding scale of 5% over the purchase price, meaning the current transaction price would be $4.1 billion.

“Today’s decision demonstrates the confidence we have in our position on this matter and provides certainty about the cost of Fox to buy into this company if they so desire,” Flutter CEO Peter Jackson said in a statement.

As part of the arbitration award, Fox said, Flutter cannot pursue the FanDuel IPO without Fox’s consent or the consent of the arbitrator. However, Flutter disputed this claim and later told CNBC in a statement that Fox had no ban on any potential FanDuel IPO, should that happen.

Flutter had previously considered bringing FanDuel to the public, taking advantage of the booming sports betting market.

Sports betting has continued to grow in the US with more states bringing legal sports betting online – as of November 11. 1, 33 states allow some form of sports betting, with California having two measures to legalize it.

This has resulted in higher revenues as well. Commercial sports betting revenue nationwide through August was $3.97 billion, up nearly 70% year over year, according to data from the Gaming Association of America.

But not all public sports betting companies have benefited from this continued growth. DraftKings stock posted its worst ever drop on Friday after the company reported monthly customer growth that was below estimates even as it revised its revenue forecast upward. DraftKings, which is down more than 59% year-to-date, is now valued at just over $5 billion.

Fanatics are one step closer to launching a much-anticipated sports gambling division, nearly five years after the Supreme Court overturned a rule preventing states from legalizing bets on sporting events.

The sports platform and e-commerce company, which is valued at more than $27 billion, said Tuesday it has appointed Andrea Ellis to be the chief financial officer of its betting and gaming division. Michael Rubin, CEO of Fanatics, said last week that the company expects to launch the unit in January.

Fanatics are entering a crowded market in an uncertain economy at a time when some executives say it is time for consolidation. However, Robin is betting that the company’s e-commerce success will translate into sports betting clients.

Ellis brings technology, product, and process expertise to the die-hard executive team. I worked as a CFO at Lime, the largest stock company for electric bikes and scooters, for the past two years. Previously, I worked with the owner of Burger King Restaurant brands.

At Fanatics, the company said, it will be tasked with expanding the new division and providing strategic and operational leadership.

She will report to Matt King, CEO of Fanatics Betting and Gaming, who was previously the CEO of FanDuel. “We are delighted to welcome Andrea to our team as we approach the launch of a new and dynamic sports betting and online gaming product for the masses,” King said.

The January launch will coincide with the highly profitable NFL playoffs. As the football season begins next fall, fanatics expect to be ready and operating everywhere it is legal to do business.

“We’re going to be in every major state other than New York, where you can’t make money,” Rubin said at the Sports Business Journal’s World Sports Conference event. Last fall, fanatics applied for a New York mobile betting license, but were not selected.

Robin predicts that sports betting and other business segments for fanatics “could reach $8 billion, even in the next decade, in profits.”

With more than 50 sports betting operators emerging in recent years, led by flutterowned by FanDuel, kingsAnd the Caesar and BetMGM (owned by MGM Resorts And the Contain)The fanatics are late to the party. The struggle for market share is intense, and often the first sportsbooks to get a license say they see a first mover advantage.

FanDuel CEO Amy Howe told CNBC at the World Game Show this month that she believes it is only a matter of time before the industry is integrated.

“It is not unreasonable to think that the first two or three [operators] It will lead somewhere between 60 and maybe 70 percent of the market.”

Size matters, said Jason Robbins, co-founder and CEO of DraftKings.

“I think you’ll continue to see the benefits of expanding the way Amy does [Howe] The company and my business are becoming more and more visible with more countries being rolled out and more revenue coming in from the industry.”

Size and scale make the fanatics a formidable competitor in the future, even in the eyes of current market leaders. With his extensive business network and fanatical client database of 94 million, Robin was able to raise an additional $1.5 billion in March with investments from Fidelity, BlackRock and Michael Dell.

Fanatics plan to leverage her network by using the loyalty program across all of her business, according to Robin: “You buy merchandise? You excited to play. You gamble? You excited to get collectibles.”

“So our patience saved us money,” said Robin. “I’d rather let everyone else spend their minds and then have to make money, then get a big checkbook and spend the money when no one else can.”

Zealots three times 50- CNBC Program a company. Subscribe to the original Disruptor 50’s annual Over-The-List weekly newsletter, providing a close look at private companies like the fanatics that continue to innovate in every sector of the economy.

Las Vegas has yet to see signs of an imminent recession, according to the CEO of two major casinos.

Bill Hornbuckle, CEO of MGM Resorts International, said at CNBC’s Evolve Global Summit on Wednesday that he expects inflation and rising gas prices to eventually affect his business, but that “hasn’t happened yet.”

“What’s happened over the past 18 months has been quite literally historic, but if you look at the way we thought we were going to do versus our performance, we’re exactly where we thought we’d be,” Hornbuckle said.

Despite rising inflation, gaming revenue in May was up 7.9% compared to the same period last year, according to the Gaming Association of America. March, April and May represented the best three months in the industry’s history, each exceeding $5 billion in total revenue.

However, Jim Allen, CEO of Hard Rock International, warned in May that record inflation was affecting his clients, while Frank Fertita III, CEO of Red Rock Resorts, said in his quarterly earnings call on May 3 that higher prices were affecting his clients. Only on people who spend less.

Despite increases in food and gas costs, among other things, technological adjustments made during the Covid – such as capsules and various configurations of gaming floors – have allowed MGM resorts to bring more millennials to their casinos than ever before.

“You’ve brought millennials to the table in a way that’s never been there before in this industry,” Hornbuckle said. “We have 20% more millennials business than ever before.” “I am very optimistic about the space.”

Meanwhile, Wynn Resorts CEO Craig Billings is confident it can tackle another economic challenge if necessary.

“I think the industry here in Las Vegas is better prepared, because of Covid, to see what levers we need to pull so we get through whatever comes,” Billings said.

Casino stocks are plummeting even as inflation is rising at rates not seen in four decades and fears of a recession are shaking consumers and investors alike.

Caesars Entertainment’s stock is down 50% so far this quarter. Bally’s stock is down 40% over the same time period, and Penn National Gaming and MGM Resorts are down 35%. For comparison, the S&P 500, which recently entered a bear market, is down nearly 19% this quarter.

However, the country’s commercial casinos had their best April ever, according to the Gaming Association of America. The industry reported $4.99 billion in revenue, up 12.4% year over year. It’s the second highest-earning month ever, after March of this year.

In earnings calls in April and May, casino executives collectively denied seeing any slowdown in customer spending, despite rising gas, lodging and food costs, except for the lowest customer demographic.

In a note published this week, Jefferies gaming analyst David Katz wrote that meetings with management teams in Las Vegas provided “evidence of the split between current operating strength and markets’ expectations of a recession.”

Katz wrote that MGM, Caesars, Wynn Resorts, Boyd Gaming, Golden Entertainment and Red Rock Resorts, which owns Stations casinos, say business levels remain “very strong” in the second and third quarters, with demand pricing and volume levels higher in 2019 and strong bookings. Until 2023, as the conference business and international travel rebounded in Las Vegas.

But Derek Stevens, owner of three properties in downtown Las Vegas, including Circa, tells a different story. In April, he told CNBC that he was beginning to see the impact of inflation based on how much cash is being withdrawn from casino ATMs.

He told CNBC this week that there had been no downtime since.

“It’s really accelerating,” Stevens said. “Every weekend was worse than the previous weekend.”

He described it as a downward spiral: Bars experienced the largest percentage drop, games saw the biggest impact as slots and table games saw a slowdown.

Still, Stevens said, the demand for travel is still there: Bookings at his Las Vegas hotels are flat, with no room discounts. He added that hotel guests are limiting their spending elsewhere, noting that customers are spending less on restaurants, additional pool amenities and other discretionary items.

“If you’re on the West Coast, you might feel it a little faster because of gas prices,” Stevens said, referring to California’s exorbitant fuel costs. “You can see it right away in discretionary consumer spending.”

The Golden State Warriors are back in action.

After two years of pandemic challenges, the NBA franchise has resumed its plan to become the world’s most valuable sports franchise. The Warriors is valued at more than $5 billion, up from $3.5 billion before the pandemic, and is expected to exceed $700 million in revenue this year, according to people familiar with the financial statements.

The club has a plan to drive growth that includes new cash flow into its recently launched Golden State Entertainment division. The project follows similar efforts in rolling out an internal ticket exchange, partnering with a cryptocurrency company, and leveraging the blockchain sector to take advantage of NFTs, or non-fungible tokens.

Just two years after the Warriors moved to the $1.4 billion Chase Center in San Francisco, the team is investing in surrounding properties and retaining an Uber tenant and partner.

The late president and chief operating officer, Brandon Schneider, says the projects are key to becoming a force off the basketball court as it is now.

“Disney started as a theme park,” Schneider told CNBC. “The Warriors started as a basketball team. Look at what Disney has become, and look at what the Warriors have become.”

Schneider spoke to CNBC on April 14, a day removed from the one-year anniversary of his proclamation as President of the Veterans. He took over the role from executive Rick Welts, who retired last year.

He said the Warriors’ goal was to become “worldwide leaders in experiences and entertainment”. He added that the organization would “leverage on the strength of the brand” and innovate in technology “because we are in the Gulf region, the technology center of the world.”

If the Warriors’ strategy ends, it could position the team to overtake the New York Knicks as the NBA’s most valuable franchise.

The Knicks are valued at $5.8 billion and ranked third on Forbes’ list of the most valuable sports teams behind the NFL’s Dallas Cowboys, with $6.5 billion, and the MLB’s New York Yankees, with $6 billion. Warriors are ranked sixth.

“With the path they’re taking, and the efforts they’ve put into the franchise, it wouldn’t surprise me,” said sports valuation expert Bryce Erickson, senior vice president at advisory firm Mercer Capital. “I definitely think it’s possible.”

Sports and hypothesis ratings are often greatly inflated – except for official and public sales. Experts use revenue multiples and add operating income, adjusted for revenue sharing, and any other club-related assets that could include real estate to come up with a number.

But regardless of the high ratings, the Warriors are already outpacing their competition: In 2021, the Warriors led the NBA in basketball-related revenue with $474 million in 2021, according to Forbes. Meanwhile, Knicks’ revenue fell to $421 million from $472 million, likely as a result of pandemic-related losses.

Add revenue from other Chase Center events and other emerging revenue streams for Warrior, and the revenue stream stacks much higher.

Andrew Lustgarten, president and CEO of Madison Square Garden Sports — the holding company behind the Knicks — said the company is looking at sports gambling as an opportunity to increase revenue.

The team struck deals with Caesars and MGM after New York legalized sports gambling. California has yet to legalize this practice.

“MSG Sports has numerous growth opportunities across its businesses and brands,” Lustgarten said in a statement to CNBC. “The Nyx portfolio has a huge upside in a number of key areas, including ticketing, premium hospitality, shirt patch sponsorship, expanding our sponsorship into international markets, and our new partnerships in sports betting and cryptocurrency.”

Erickson said “domestic benefits and market size advantages” could help the Warriors take on the Knicks in revenue. He noted the HBO series “Winning Time,” which chronicles the Los Angeles Lakers’ rise to prominence in the 1980s on a backdrop of innovation.

“Things change,” Erickson said. “Before (Jerry Boss) bought the team, what were the Lakers? They were a struggling franchise in a struggling league. And their timing was impeccable. So, who says that after more than 40 years, the Warriors can’t have the same effect? ​​There is nothing There he says that they cannot, especially from an economic point of view. ”

When asked if the Warriors aim for the highest rating point in the sport, the humble Schneider downplayed the task.

“We think it’s much bigger than that,” he said. “I understand why people are so focused on that and why it’s so interesting, but (owners Joe Lacope and Peter Guber) — they’ll never sell Warriors. So in terms of what a third party wants to value our organization, that’s not our focus.”

The new GSE division of Warriors is expected to create in-house content in partnership with Mandalay Entertainment, a company founded by Guber. GSE will produce documentaries, release a new single featuring K-pop star BamBam, and explore music festivals.

But more importantly, GSE is working to align the Warriors with future licensing revenues from streaming giants like Apple, which this year welcomed sports content on its platform, and Netflix, which will need creativity to solve the subscriber problem.

“We have been in the content business for many years,” Schneider said. The NBA Warriors are already helping break TV viewing records. “We think a lot about direct-to-consumer.”

In February 2022, Warriors launched SuiteXchange, a ticket exchange platform for luxury suites within the Chase Center. It takes advantage of blockchain technology and allows the team to capture data and transaction fees.

“We think Suite Exchange could become a Stub Hub or Ticketmaster for Suites,” Schneider said. “This is just scratching the surface.”

Schneider said the Warriors were in discussions with other clubs to use the service but he did not disclose the teams due to privacy concerns.

“This is just the beginning of the beginning,” Schneider said, pointing to a logo used by stand owners. “This has become a mantra for us.”

The team also topped $2 million in sales in NFT, and earlier this month cemented its partnership with crypto platform FTX, which agreed a $10 million global sponsorship deal with the club in December.

FTX has unveiled a set of 3,000 NFTs, one of which includes two tickets to each home ground playoff game. NFTs sell for $499 each.

Schneider said that as long as warriors innovate and include “the right experiences, the returns are coming.”

Under the Walts’ 11-year tenure, the Warriors overtook the Los Angeles Lakers as the second best team in the NBA.

The Wilts said at least some of that success is due to franchise star Stephen Curry, who has led the Warriors to three championships since 2015 and has become the face of the NBA.

“When your best player is not only the athlete and the talent that he is but also the person that he is, you have a head start trying to create something special,” Willets told CNBC in 2019.

Schneider pledged that the organization would protect and continue to strengthen its main attraction – the basketball team.

The Warriors have the highest payroll in the NBA, spending more than $180 million on their 2021-22 roster as they pursue a fourth NBA title in the past eight years. The club has welcomed the return of co-star Klay Thompson this season. Draymond Green is still wreaking havoc. And the Warriors seem to have a rising star in Jordan Ball.

In 2021, the Warriors agreed to a four-year extension with Curry. The deal kicks off next season and pays the 34-year-old an average annual value, or AAV, of $53 million a season, according to Spotrac, a website that tracks sports contracts.

“We have a plan and we want to be consistently good and we want to invest,” Schneider said. “And we are fortunate to have an ownership group that is willing to invest a lot in what we do on and off the field. This is very important and gives us a competitive advantage.”

And with Curry locked in, the revered jersey patch media assets could be on the verge of breaking another NBA sponsorship record.

The Warriors’ deal with e-commerce company Rakuten expires in 2023 and is said to be paying the team nearly $20 million annually. It’s unclear what the Warriors are seeking for the renewal price, but for comparison, the Brooklyn Nets took a $30 million-a-year deal for their 2021 update with online trading platform WeBull.

Asked where the Warriors want to be in 2030, Schneider said, “Winning championships, doing great things in the community and continuing to grow our global fan base.”

“When we were building Chase Center, we talked about turning into a sports and entertainment company that happened to have a very good basketball team,” he said.

Tequila may soon overtake vodka as America’s favorite alcohol, fueled by consumers’ desire for expensive bottles of agave-based spirits.

Tequila and mezcal were the second fastest growing spirits category in 2021, following only pre-blended cocktails. Agave-based spirits saw sales up 30.1 percent from a year earlier to $ 5.2 billion, according to the U.S. Distilled Spirits Council.

It was also the second largest revenue category after vodka № 1, which is the best-selling alcohol in the United States since the 1970s. With revenue of $ 7.3 billion, vodka still sells about $ 2 billion more annually than tequila and mezcal, but agave-based spirits may be ahead of them in just a few years.

For more evidence of the trend, look no further than casinos. Julian Cox, the famous bartender and CEO of beverages and corporate mixologist for MGM Resorts International, said that the total sales of vodka and tequila in the hospitable giant are increasing.

“No one could believe it,” he said.

Using volume as a measure, vodka still remains king. According to DISCUS, alcohol was sold in 78.1 million cans in 2021, more than twice the volume of the next category: pre-mixed cocktails. Tequila and mezcal are in fourth place with 26.8 million boxes.

High-end tequilas are helping to grow the category, according to Christine Locaschio, head of public policy at DISCUS.

“It’s not just for margaritas,” LoCashio told the trade group’s annual economic briefing on Thursday. “There are so many high-end tequilas that you can drink and enjoy like many other high-end products, such as whiskey and cognac, bourbon and high-quality rum.

Diageo CEO Ivan Menezes reiterated this opinion in a recent call about the company’s profits. The distiller has two luxury tequila brands: Don Julio and Casamigos.

“The attractiveness of the category in demographic groups is significant,” he said. “He passed. Multicultural growth is very strong. It crosses age segments, crosses gender, crosses parts of the day, occasion and nature of drinks. It’s not just shots and daisies, like many years ago. “

The Crown Royal owner predicts that tequila sales will grow faster than the wider alcohol industry over the next five to 10 years. In the first half of its fiscal year 2022, tequila sales increased by 56% compared to the previous period.

Tequila also helps the spirits industry steal customers from beer. Tony Abu Ghanim, a famous mixologist and author of Vodka Distilled, created the beverage programs for T-Mobile Arena and Allegiant Stadium, both in Las Vegas. The menu of the sports facilities includes margaritas prepared with fresh ingredients and 100% agave tequila.

“A lot of people think when they go to an arena or a stadium, ‘I’m just going to drink beer,’ and our feeling was that if we put a better margarita in their hands, they’ll buy margaritas. And this has been proven, “Abu Ganim said.

LoCascio of DISCUS also acknowledged that the presentation of celebrities helped draw attention to the category.

Many celebrities have released their own brands of tequila and mezcal, including actor and former professional wrestler Dwayne Johnson and model Kendall Jenner last year. In addition to the agave jump, they hope to emulate the success of George Clooney’s Casamigos tequila, which was sold to Diageo for $ 1 billion in 2017. Last year, Constellation Brands invested in Breaking Bad colleagues Aaron Paul and Dos Hombres mezcal by Brian Cranston for undisclosed amount.

About 98% of $ 5.2 billion in sales of $ 5.2 billion agave-based spirits are made from tequila, which is produced exclusively from the blue agave plant. Mezcal is a much broader label applicable to any spirit drink made with dozens of types of agave.

“[Mezcal] it’s growing, but it’s still a very small part of that broader category, “LoCascio said.

MGM Coke is optimistic about the future of mezcal, citing the wide variety of flavors and taste profiles. “Mescal is like an aroma bomb,” he said. “For making cocktails, if you use it in the right environment, you have a lot of taste.”

After consumers try cocktails made with mezcal, the next step for the promoters of the category is to introduce them to spirits made with all kinds of agave.

Abu Ghanim said younger consumers were leading, eager to expand their horizons. There is also a geographical element in its growth. Cox, who was previously based in Los Angeles but now works in Las Vegas, said most Sin City visitors remain largely uninformed about the mezcal.

Mezcal is seen as authentic for its roots and tradition, attractive to purists like Cox and Abu Ghanim. Mexico has introduced regulations on what distillers may call mezcal, limiting production to certain states in the country. (Non-certified products may be marketed in the United States as “agave alcohol.”)

“They can’t do a lot of mescal, and that’s the beauty and the art of that,” Abu Ganim said.