FOS PM: Congress Orders WFT Evidence – Front Office Sports

December 15, 2021

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After playing 2021 with an adjusted salary cap of $182.5 million — its lowest since 2018 — the NFL informed its 32 clubs that the 2022 cap will rise to $208.2 million. The $25.7 million raise is the maximum amount agreed upon by the league and NFLPA.

Members of Congress are calling on the NFL to produce all documents and evidence related to Washington Football Team owner Dan Snyder’s alleged interference into an investigation of the team’s workplace culture. 

On Tuesday, the Washington Post published a lengthy report detailing Snyder’s attempts to obstruct the investigation led by attorney Beth Wilkinson. 

The Post reported that Snyder sought to prevent Wilkinson from speaking with a former employee who reached a $1.6 million settlement over sexual misconduct allegations against Snyder himself in 2009. Snyder’s lawyers also attempted to learn the identities of people who had previously spoken to the paper.

Reps. Carolyn B. Maloney (D-N.Y.) and Raja Krishnamoorthi (D-Ill.) issued statements renewing their calls for information from the NFL on the investigation and Snyder’s alleged obstruction.

NFL Remains Tight-Lipped

Maloney and Krishnamoorthi have been leading the charge for more disclosure by the league.

• In October, the two House members wrote a letter to NFL commissioner Roger Goodell, asking for all documents and communications related to the investigation. 
• The NFL missed the Nov. 4 deadline set in the letter and has reportedly not produced any documents related to the investigation, citing time-intensive confidentiality issues.
• The NFL did not publish any report documents, letting Wilkinson give an oral report instead.

The league fined the team $10 million in July, stating that Snyder’s wife Tanya would run its day-to-day operations while he worked on stadium issues.

Private equity firm KKR & Co. has acquired a $396 million minority stake in PureGym, valuing the United Kingdom’s largest gym operator at more than $2 billion. 

The deal will allow PureGym — which has more than 1 million members registered — to add more sites in its current markets and expand across Europe, Saudi Arabia, and the U.S.

KKR acquiring a stake in PureGym adds to a busy year for the firm’s sports and fitness portfolio.

• In May, the firm cashed out most of its position in UFC parent company Endeavor, selling 18.2 million shares for a profit of $437 million.
• It is reportedly preparing an offer to purchase a stake of up to 20% — worth roughly $1.7 billion — in a new company that will hold media rights to Ligue 1.
• In September, the firm announced it was selling its entire $852 million stake in sporting goods retailer Academy Sports.
• Last month, it submitted a takeover bid for Telecom Italia, which holds broadcasting rights to Serie A. 

Ownership History

In 2017, PureGym was acquired by private equity group Leonard Green & Partners in a deal that valued the business at $823 million.

Leonard Green & Partners bought its majority stake from CCMP Capital, a British buyout house, which acquired PureGym in 2013 from founder Peter Roberts for an undisclosed amount. 

Trainiac is now Trainiac by Gympass. The latter announced its acquisition of the one-on-one fitness platform on Wednesday. Terms of the deal were not disclosed.

The news comes after Gympass’ $220 million funding round in June valuing the company at $2.2 billion. At the time, Gympass said it had more than 750,000 training sessions booked for more than 50,000 users. 

Trainiac, which had just three employees, raised a $2.2 million funding round in January.

• Gympass stated the acquisition will “add a new level of personalization.” 
• It also said Trainiac will help develop “sustained, long-term wellness habits.”

Gympass Offerings

Gympass considers itself the world’s largest corporate well-being platform, with 1,300 on-demand classes, 2,000 hours of meditation, weekly 1:1 therapy sessions, and hundreds of personal trainers. 

Trainiac by Gympass will roll out internationally over the course of 2022, starting with U.S. customers in the early part of the year. The U.S. corporate well-being market was estimated at $20.4 billion in 2021.