In today’s edition we discuss Adidas donates $150 million from Yeezy shoe to fight hate speech, Stripe processes $1 trillion dollars in 2023, JKBX launches music investment platform, Kelly Clarkson & Peyton Manning joining Mike Tirico & Snoop Dogg in NBC Paris Summer Olympic coverage, and real estate agent’s commissions to come down. 

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Introducing The Launch Of LVMH Watches

Business

Stripe surpassed $1 trillion dollars in total payments in 2023, he said while trying not to laugh like Dr. Evil from the Austin Powers movies.

The co-founders and brothers Patrick and John Collison attributed the 25% increase from 2022’s payment volume to Stripe’s enterprise business, startups adopting its products, and billing and tax services.

Stipe reached this $1 trillion dollar payment volume milestone only 15 years after they were founded, in comparison to PayPal which took 23 years to reach the same volume.

What does that mean? Probably nothing, but if you ask me it shows Stripe has been more innovative in the products they’ve brought to market, and how they’ve helped to make Stripe the go-to payment processor for software developers through their easy to use API and marketing to startup founders.

Stripe reveals it passed $1 trillion in total payment volume in 2023

Tech

A new investment platform just launched after receiving the SEC’s approval, and it’s bringing an alternative asset class to investors who haven’t had the opportunity to invest in music as an asset.

As a fan of alternative asset classes, like crypto, NFTs, race horses, 2-family homes, and for a little while Pokemon cards, but I digress. I love the idea of being able to invest in musicians I listen to and love.

So how does this work exactly?

The music investment platform JKBX was founded in 2022 by Sam Handel and John Chapman of the venture capital and private equity firm Dundee Partners, and has raised $16.1 million in funding from Spotify, Red Light Management and Bertelsmann Digital Music. Additional backing came from Galaxy Digital, Valor Equity Partners and Tyler and Cameron Winklevoss.

The music investment platform that allows songwriters and recording artists to sell their royalties to investors. JKBX as a company sells royalty shares to retail investors through what’s called a Tier 2 of Regulation A under the Securities Act.

Ready to geek out on SEC regulations?

Regulation A allows companies like JKBX to bring investors into an asset class that previously hasn’t been open to anyone other than institutional investors. JKBX can now market these securities to retail investors who now have the opportunity to own a piece of the music they personally connect with and gain exposure to this non-correlated alternative asset class.

That was a mouthful.

Want to know how this works in practice? We got you covered!

According to an article in Billboard magazine, they give an example of how JKBX sells shares in a song, and how an investor makes money off those shares.

“JKBX is selling 200,000 shares of “Counting Stars,” written by Ryan Tedder (singer/songwriter/producer/member of OneRepublic) and recorded by OneRepublic, for $31.37 apiece. The site gives royalties — songwriter royalties for mechanical, synch, public performance and other income sources — for two years: $261,497.39 in 2022 and $180,839.00 in 2021. With a share price of $31.37 and average annual royalties per share of $1.11, an investment in “Counting Stars” produces an expected annual return of 3.52%.”

Clear as mud? Yea, I thought so.

Basically, they’ve collateralized a musician’s music, sold it as shares, and investors make a percentage or return on the revenue that the song’s royalties bring in.

If they had come out with this kind of alternative asset class musical platform when I was just out of college I’d either be filthy rich right now, or broke from investing in my favorite musicians - but it would have been one hell of a ride!

Music Investment Platform JKBX Officially Launches With SEC Approval

Fashion

Kanye West is in the news again, indirectly, and it’s actually for a good cause in a way.

Adidas is still in the process of offloading merchandise from their Yeezy shoe line, and they just

Adidas had $1.3 billion dollars worth of Yeezy sneakers in their warehouses following the end of their partnership with Kanye West in October 2022 after he spouted off saying antisemitic comments in interviews and on social media. That led to brands and endorsement deals being canceled around the world, and it left Adidas with a lot of unsold inventory. Originally the athletic brand considered destroying the merchandise and writing off the assets as a loss on their balance sheet, but then they had another idea.

What if they sold the product over the next few years, and donate the proceeds to charity?

On Wednesday, March 13, 2024 Adidas announced they were donating $150 million dollars to groups that are fighting antisemitism and other forms of hate.

I love this, because they flipped the script on Kanye West’s hate speech by funding charities that are fighting hate speech. It’s so poetic!

By selling down their inventory of Yeezy sneakers in batches of releases, Adidas has been able to prevent a price collapse in the shoe’s value, and continue to give consumers that they’re looking for while helping to combat hate speech all at the same time.

This is a masterclass in crisis PR, and a lesson I wish Kanye West was well enough mentally to learn from.

Yeezy shoe sales lead Adidas to $150 million in donations to anti-hate groups

Real Estate

You know that insane commission rate real estate agents charge you when you buy or sell your home? Yea, that’s going to change big time now!

The NAR, or National Association of Realtors, agreed to settle with a group of homesellers in this historic landmark antitrust lawsuit by paying $418 million in damages, and best of all eliminating rules on the commissions they charge.

According to an article on CNN “The agreement effectively will destroy the current homebuying and selling business model, in which sellers pay both their broker and a buyer’s broker, which critics say have driven housing prices artificially higher.”

The settlement will result in major changes to how real estate agents conduct business with home buyers and sellers, including:

1) It will prohibit agents’ compensation from being included on listings placed on local centralized listing portals known as MLS.
2) It will end requirements that brokers must subscribe to MLSs that may be owned by subsidiaries of the National Association of Realtors.
3) It will require buyers’ brokers to enter into written agreements with their buyers.

How much can home buyers and sellers expect to see real estate commissions drop by?

Some estimates put the expected drop in real estate commissions 25% to 50% down from where they are today. The national average real estate commission in 2023 was 5.49 percent, so a reduction by 25% could bring that down to 4.11 percent, and a 50% drop could bring it down to 2.74 percent.

I’m sure a lot of us would take that real estate commission and run, but keep in mind this now opens up the commission discussion and makes is a matter of negotiation between you and your real estate agent.

The 6% commission on buying or selling a home is gone after Realtors association agrees to seismic settlement

Sports

This year’s 2024 Paris Summer Olympics are shaping up to be a star studded event, and I’m not just talking about the famous athletes and celebrities that will be attending. I’m talking about the opening ceremony hosts and reporters that NBC is bringing to the Olympics.

NBC recently announced that for the Olympic opening ceremonies they would be including Kelly Clarkson and Peyton Manning alongside 3-time Olympic open ceremony host Mike Tirico, who is back for this 4th time hosting NBC’s Olympics coverage. Also joining in on the Olympic opening ceremonies will be NBC hosts Savannah Guthrie and Hoda Kotb bring the energy of NBC’s The Today Show to Paris.

The 2024 Paris Summer Olympics opening ceremonies are going to be like nothing else that has ever been done in the history of Olympics opening ceremonies.

Gone is the tradition of athletes walking into a huge purpose-built stadium as a team with spectators in the stands. Oh no! France has something uniquely Parisian in store for the world as they host the opening of the Olympics for the 6th time.

Athletes will arrive via boat as they float down the River Seine, with spectators lining the banks of the historic river. A four-mile-long flotilla of more than 90 boats will be carrying thousands of athletes from more than 200 countries past hundreds of thousands of spectators seated on the banks of The Seine and finish their journey at the Eiffel Tower.

According to Mike Tirico “The opening ceremony is going to be so different and unique, down the Seine, down the river, with the athletes on a boat. So, it’s not the stadium where they walk in. It’ll incorporate Paris.”

Both Kelly Clarkson and Peyton Manning are over the moon excited about hosting the Summer Olympics opening ceremonies. For Kelly Clarkson, it’s an opportunity to expand her daytime talk show to an international audience, and for Peyton Manning it’s an opportunity to fulfill a promise he made some 30 years ago to take his mom to Paris someday.

Earlier this year NBC announced that Snoop Dogg would be doing on-site reporting and commentary with NBC Olympics host Mike Tirico, “and provide the large primetime U.S. audience with his unique take on what’s happening in Paris. He’ll explore the city’s iconic landmarks, attend Olympic competitions and events, and visit with the athletes, their friends, and families.” according to a press release put out by NBC.

When asked about bringing his unique commentary to the Olympics for the 2nd time Snoop Doog said “I grew up watching the Olympics and am thrilled to see the incredible athletes bring their A-game to Paris. It’s a celebration of skill, dedication, and the pursuit of greatness.”

“We’re going to have some amazing competitions and, of course, I will be bringing that Snoop style to the mix. It’s going to be the most epic Olympics ever, so stay tuned, and keep it locked. Let’s elevate, celebrate, and make these games unforgettable, smoke the competition, and may the best shine like gold. Peace and Olympic LOVE, ya dig?”

Snoop Dogg’s commentary will be a part of NBC’s Olympic Primetime Show beginning July 26, 2024, on NBC and Peacock.

I have no doubt that Snoop Dogg’s reports will be hysterical, although I’m pretty sure they’ll be  watered down so they’re safe for broadcast on NBC’s Olympic coverage.

So there you have it. Snoop Dogg, born Calvin Cordozar Broadus Jr., will be providing in-depth Olympic coverage and color commentary at the 2024 Paris Summer Olympics in his own unique doggy-style.

I can just imagine what the Greek mythology gods must be saying while they sit up on Mount Olympus looking down on what the Olympics have evolved into.

Kelly Clarkson and Peyton Manning will co-host the Paris Olympic opening ceremony with Mike Tirico

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So much news, so little time. Until tomorrow we’re signing out.

— Chris