Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Note 7 — Goodwill

As a result of acquiring a controlling interest in SportBLX, we recorded goodwill of $50.6 million as part of the purchase price allocation. The goodwill acquired was fully allocated to our Sports technology platform. In December 2020, we recorded an impairment charge of $42.3 million. See the 2020 Goodwill Analysis below for additional information.

The following table presents the changes in goodwill:

	SportBLX
	(in millions)
Balance as of December 31, 2018	$	—
Acquisition		50.6
Balance as of December 31, 2019		50.6
Impairment charges		42.3
Balance as of December 31, 2020	$	8.3

2020 Goodwill Analysis

During the fourth quarter of 2020, management engaged in a strategic and financial assessment of the Sports Technology Business. In assessing recoverability of the goodwill recorded as part of the purchase price allocation from the SportBLX acquisition, we compared the carrying amount of the goodwill with its implied fair value. To determine the estimated fair value, we used the cost approach, a valuation technique that involves determining the total asset value of a business and reducing that value by the amount of its outstanding liabilities. As a result of this assessment, we determined the carrying value of the goodwill exceeded its fair value. Consequently, we recorded an impairment charge of $42.3 million in the Consolidated Statements of Operations for the year ended December 31, 2020. The impairment of goodwill was driven by a number of factors affecting our Sports Technology Business in 2020 including, but not limited to, the outbreak of COVID-19 and its impact on sports globally, the performance of the business and its capital position.

See Note 2 - Summary of Significant Accounting Policies as well as Critical Accounting Policies and Estimates within the Management’s Discussion and Analysis section for further background and information on goodwill impairments.