TORONTO--(BUSINESS WIRE)--Playmaker Capital Inc. (TSXV: PMKR) (“Playmaker”), the digital sports media company that delivers authentic content experiences through its portfolio of sports media and technology brands, announced today that it has acquired 100% of the digital assets of underdog dba JuanFutbol (“JuanFutbol”), operator of an assortment of widely popular social media and digital channels as well as leading sports-focused web properties from Soccerly SAPI de C.V., to accelerate Playmaker’s growth in key Mexican and US Hispanic markets.
JuanFutbol delivers authentic digital soccer content to more than 6 million social media followers across Facebook, Instagram, Twitter, TikTok, and YouTube. Collectively, JuanFutbol’s social media content generates a monthly reach in excess of 50 million. The acquisition of JuanFutbol also includes baseball-focused asset, JuanBeisbol, and women’s-focused sports property, FridaPop. JuanBeisbol introduces the first baseball-oriented brand to the Playmaker ecosystem, a top 3 sport in Mexico with strong year-long levels of interest and engagement. FridaPop will complement Playmaker’s other female branded asset, Redgol Fem in Chile, and directly contribute to a concerted effort to increase coverage of women’s soccer and elevate women in sport globally.
Playmaker brand, Futbol Sites, will integrate JuanFutbol’s team of experts in branded content to enhance the execution of sponsored campaigns in the region and more broadly across Latin America and the US. JuanFutbol’s strong track record of partnering with top-tier brands adds market leading relationships and reputation to Playmaker’s direct selling capabilities. The Mexico City based team that includes social media experts, media planners, creatives, video editors, copywriters, designers, and data scientists will be critical in supporting high-value brand partnerships ahead of FIFA World Cup Qatar 2022 and beyond.
“Since the first day of 2022, we knew this year would be a critical one for JuanFutbol as each World Cup year presents great opportunities,” said Miguel Ramirez Lombana, JuanFutbol CEO & Co-Founder. “We feel very fortunate to partner with Playmaker, which we believe is the ideal group to take JuanFutbol, JuanBeisbol and FridaPop to the next level. Playmaker's commitment to building the most relevant ecosystem in digital sports media is unprecedented and we are proud to add our brands and experience to their successful ride."
Mr. Lombana and his Co-Founders are among the most respected digital media entrepreneurs in the region as they bring over 20 years of experience building successful digital sports media properties. In 2000, they launched mediotiempo.com, a pioneer site in the early internet days and a leading sports property in Mexico when it was acquired by Time Warner in 2010.
Playmaker has identified Mexico and the US Hispanic population as important markets for its growth strategy as they cumulatively represent approximately 190 million people, including 37 million people of Mexican descent that currently live in the U.S.1 As Playmaker looks to make further inroads with these fan groups, JuanFutbol’s coverage and exposure to Mexico’s top soccer league, Liga MX, will be instrumental. Liga MX is the most popular soccer league in both Mexico and the US Hispanic markets and it has recently fielded investment interest from global private equity firms for future growth opportunities. In the past year, Liga MX also announced a joint venture with MLS to sell international media rights for a revamped inter-league competition, Leagues Cup, presenting secular tailwinds for Liga MX going forward.2
Additionally, Mexico’s fully regulated sports betting market provides an opportunity for Playmaker to accelerate its direct and affiliate advertising revenue with sports betting operators.
“JuanFutbol is one of the most respected and recognized brands within the sports media industry in Mexico. It is a fantastic complement to our existing portfolio in Mexico and puts us in a unique position in this market,” said Federico Grinberg, Playmaker EVP and Futbol Sites CEO. “Less than 4 months before the start of the FIFA World Cup Qatar 2022, it allows us to have a unique offering in terms of quality and reach for advertisers. Cracks, Bolavip and JuanFutbol together form an unstoppable attack front.”
TRANSACTION DETAILS
Pursuant to the terms of a purchase agreement dated July 26, 2022, Playmaker acquired 100% of the digital assets of JuanFutbol for aggregate consideration of up to US$2.8 million. The purchase price consideration consisted of (i) a closing cash payment of US$400,000, (ii) the issuance of 421,754 Playmaker common shares (the “Playmaker Shares”) on closing, priced at CAD$0.75 per Playmaker Share, and (iii) a target earn-out of US$1.4 million payable to the sellers upon JuanFutbol achieving certain revenue and performance targets, with a maximum earn-out of US$2.1 million if revenue and performance targets are exceeded, in the period of July 1, 2022 to December 31, 2023.
TSX VENTURE EXCHANGE DISCLAIMER
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker’s current expectations regarding future events. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking information contained in this press release includes, but is not limited to, statements relating to (i) the benefits expected to result from the acquisition of JuanFutbol by Playmaker, (ii) the future performance of JuanFutbol, including the achievement of certain targets and its continued expansion and growth and (iii) other statements that are not historical facts. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
ABOUT PLAYMAKER CAPITAL INC.
Playmaker (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that acquires and integrates premier fan-centric media brands, curated to deliver highly engaged audiences of sports fans to tier one advertisers, online sports betting operators, and sports federations and leagues. Leveraging its in-house technology stack, Bench, and with a 360 degree view of sports fans, Playmaker delivers authentic digital content experiences for sports fans and best-in-class results for its partners across the Americas.
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1 Statista, U.S. Hispanic Population Groups 2019
2 Sportico & Yahoo Sports, 16 May 2022
