1 00:00:12,960 --> 00:00:15,440 Speaker 1: Welcome to our two parts series here on the Athletic 2 00:00:15,480 --> 00:00:16,360 Speaker 1: Podcast Network. 3 00:00:16,520 --> 00:00:19,360 Speaker 2: I am Mike Smeltz and throughout this series we will. 4 00:00:19,200 --> 00:00:23,000 Speaker 1: Dive deep into the cutting edge of sports how technology 5 00:00:23,239 --> 00:00:26,080 Speaker 1: is changing the way the games are being played and watched. 6 00:00:26,280 --> 00:00:29,200 Speaker 1: In this episode, we'll focus on the fan experience. The 7 00:00:29,280 --> 00:00:32,600 Speaker 1: ticket buying process has changed from a static experience to 8 00:00:32,720 --> 00:00:35,279 Speaker 1: something more akin to signing up for a membership at 9 00:00:35,280 --> 00:00:36,080 Speaker 1: a country club. 10 00:00:36,360 --> 00:00:40,400 Speaker 3: Fans today only have two options. They can buy season 11 00:00:40,479 --> 00:00:43,760 Speaker 3: tickets or they can brave the wild wild West, which 12 00:00:43,800 --> 00:00:47,640 Speaker 3: is trying to navigate resold tickets from brokers and scalpers. 13 00:00:47,680 --> 00:00:51,879 Speaker 3: And I think what we provide is a very unique alternative. 14 00:00:51,440 --> 00:00:52,240 Speaker 2: For fans at home. 15 00:00:52,479 --> 00:00:58,000 Speaker 1: Leagues are increasingly investing in alternative broadcasts to tailor presentations 16 00:00:58,000 --> 00:00:59,120 Speaker 1: for all types of fans. 17 00:00:59,280 --> 00:01:01,240 Speaker 4: The tech element is huge. You know, you don't need 18 00:01:01,320 --> 00:01:04,240 Speaker 4: satellite trucks outside of Peyton Mannox House or outside of 19 00:01:04,240 --> 00:01:07,040 Speaker 4: Eli Manox House. It comes off like a television product 20 00:01:07,120 --> 00:01:08,640 Speaker 4: or like a traditional linear product. 21 00:01:08,800 --> 00:01:12,240 Speaker 1: And the coin process of buying some baseball cards has 22 00:01:12,280 --> 00:01:15,800 Speaker 1: gone virtual with the incredible innovations of NFTs. 23 00:01:16,240 --> 00:01:21,000 Speaker 5: Boys an easy way to explain NFTs. It's like hey show, 24 00:01:21,040 --> 00:01:22,360 Speaker 5: me a picture of the lockmass monster. 25 00:01:23,040 --> 00:01:25,880 Speaker 1: On this episode, you'll hear from each of those experts 26 00:01:25,920 --> 00:01:29,399 Speaker 1: on how the fan experience is changing and will continue 27 00:01:29,440 --> 00:01:32,440 Speaker 1: to change in the future. First up is Chris Giles, 28 00:01:32,640 --> 00:01:36,040 Speaker 1: CEO of fan Rally, a unique company that is changing 29 00:01:36,080 --> 00:01:38,000 Speaker 1: the concept of season tickets. 30 00:01:38,080 --> 00:01:42,200 Speaker 3: Prior to starting fan Rally Iran sports teams, I spent 31 00:01:42,520 --> 00:01:44,640 Speaker 3: a number of years as the COO of the Oakland 32 00:01:44,720 --> 00:01:47,080 Speaker 3: A's and before that spent some time at the front 33 00:01:47,080 --> 00:01:48,280 Speaker 3: office at the forty nine ers. 34 00:01:48,880 --> 00:01:52,880 Speaker 6: And during my time at teams, one thing became abundantly clear. 35 00:01:53,520 --> 00:01:56,840 Speaker 3: Every team today is facing the same challenge, which is 36 00:01:56,840 --> 00:02:01,600 Speaker 3: that young people don't have any interest in owning season tickets. 37 00:02:01,920 --> 00:02:04,280 Speaker 2: That is a potentially huge issue for teams. 38 00:02:04,600 --> 00:02:07,880 Speaker 1: Chile says about eighty percent of teams revenue from tickets 39 00:02:07,960 --> 00:02:12,200 Speaker 1: comes from season tickets, So if younger generations have no 40 00:02:12,320 --> 00:02:16,360 Speaker 1: interest in season tickets, teams are facing down a hard future. 41 00:02:16,520 --> 00:02:19,280 Speaker 3: For as much time and energy as I spent selling 42 00:02:19,320 --> 00:02:24,000 Speaker 3: them in my career, owning season tickets suck. Your schedule 43 00:02:24,120 --> 00:02:27,920 Speaker 3: never lines up with the games. Nobody's life operates in 44 00:02:27,960 --> 00:02:29,359 Speaker 3: these fixed group sizes. 45 00:02:29,400 --> 00:02:31,560 Speaker 6: You're all going out of your way and you got 46 00:02:31,600 --> 00:02:33,000 Speaker 6: four seats, but you only have two. 47 00:02:32,919 --> 00:02:35,400 Speaker 3: Of them that can fild You're making last minute phone calls, 48 00:02:35,639 --> 00:02:39,040 Speaker 3: you have to pay ridiculous fees, and what you really 49 00:02:39,120 --> 00:02:41,720 Speaker 3: get for being a season ticket holder at the end 50 00:02:41,720 --> 00:02:44,600 Speaker 3: of the day is a bundle of tickets that are 51 00:02:44,680 --> 00:02:49,200 Speaker 3: readily available on the secondary market and are really nothing special. 52 00:02:49,520 --> 00:02:52,160 Speaker 1: After Giles's time with the forty nine Ers and the A's, 53 00:02:52,360 --> 00:02:55,280 Speaker 1: he created fan Rally with his partners to address the 54 00:02:55,280 --> 00:02:57,519 Speaker 1: same issues that he saw from the inside. 55 00:02:57,639 --> 00:03:00,680 Speaker 2: Fan Rally offers fans memberships. 56 00:03:00,160 --> 00:03:03,800 Speaker 1: To go to games instead of season tickets. Essentially, a 57 00:03:03,880 --> 00:03:06,840 Speaker 1: fan pays a monthly fee that gives them the ability 58 00:03:06,880 --> 00:03:09,240 Speaker 1: to go to games in a certain area of the 59 00:03:09,280 --> 00:03:11,000 Speaker 1: stadium whenever they want. 60 00:03:11,320 --> 00:03:14,560 Speaker 6: We have a partnership with the Brewers, and let's use 61 00:03:14,600 --> 00:03:15,200 Speaker 6: an example. 62 00:03:15,320 --> 00:03:18,840 Speaker 3: Jamie and Jeff are subscribers to the Brewer's Ballpark Pass 63 00:03:18,880 --> 00:03:21,680 Speaker 3: Plus program and they each pay ninety nine dollars a 64 00:03:21,760 --> 00:03:24,080 Speaker 3: month and they can reserve seats to any game that 65 00:03:24,160 --> 00:03:26,520 Speaker 3: they want to attend. They can book seats in a 66 00:03:26,560 --> 00:03:29,960 Speaker 3: group with other members, so other couple friends that they 67 00:03:29,960 --> 00:03:32,200 Speaker 3: have can get memberships. They can all book seats together. 68 00:03:32,520 --> 00:03:35,560 Speaker 3: But you can also book seats with non member guests. 69 00:03:35,560 --> 00:03:38,880 Speaker 3: So this opens up a ton of flexibility. Each member 70 00:03:38,920 --> 00:03:42,840 Speaker 3: can hold two games at a time and reserve games 71 00:03:42,880 --> 00:03:43,960 Speaker 3: as far out as they. 72 00:03:43,800 --> 00:03:46,760 Speaker 1: Want, So instead of buying an eighty one game package 73 00:03:46,760 --> 00:03:50,000 Speaker 1: for all of the Brewers' home games, Fan Rallies membership 74 00:03:50,000 --> 00:03:52,200 Speaker 1: program offers fans flexibility. 75 00:03:52,400 --> 00:03:54,280 Speaker 2: Members can pick which games they want to go to. 76 00:03:54,600 --> 00:03:57,360 Speaker 1: There's an ability to bundle seats together if a member 77 00:03:57,400 --> 00:03:59,400 Speaker 1: wants to go with a large group of people for. 78 00:03:59,360 --> 00:03:59,960 Speaker 2: A certain game. 79 00:04:00,400 --> 00:04:03,200 Speaker 1: Most of all, for fans, these memberships are less of 80 00:04:03,240 --> 00:04:09,160 Speaker 1: an overall cash commitment than buying that full season ticket package. 81 00:04:08,200 --> 00:04:08,920 Speaker 2: For the teams. 82 00:04:09,240 --> 00:04:13,160 Speaker 1: Fan rally gives organizations a direct connection to their fans, 83 00:04:13,520 --> 00:04:15,600 Speaker 1: a connection that is really hard to get in the 84 00:04:15,640 --> 00:04:17,680 Speaker 1: era of secondary ticket markets. 85 00:04:17,920 --> 00:04:20,560 Speaker 6: I mean, it's a fundamentally new business model. 86 00:04:20,600 --> 00:04:25,560 Speaker 3: So I think overwhelmingly the number one reason why teams 87 00:04:25,680 --> 00:04:29,960 Speaker 3: are building programs on our reservations is it's about building 88 00:04:30,080 --> 00:04:32,800 Speaker 3: direct relationships with the future customers. 89 00:04:32,839 --> 00:04:33,560 Speaker 6: So, if you think. 90 00:04:33,440 --> 00:04:37,280 Speaker 3: About the way that a team's business works today, eighty 91 00:04:37,320 --> 00:04:40,720 Speaker 3: percent of their revenues today are going to traditional season 92 00:04:40,760 --> 00:04:41,680 Speaker 3: ticket packages. 93 00:04:41,800 --> 00:04:43,480 Speaker 6: The lion share are. 94 00:04:43,400 --> 00:04:46,440 Speaker 3: Sold to people you know in the fifty to seventy 95 00:04:46,480 --> 00:04:48,680 Speaker 3: eight range. Now, a lot of times it's going to 96 00:04:48,960 --> 00:04:51,440 Speaker 3: get the best seat, you have to buy the full season. 97 00:04:51,800 --> 00:04:53,800 Speaker 6: You know, everybody has a different approach. 98 00:04:53,960 --> 00:04:56,200 Speaker 3: Some go out and find four to five others to 99 00:04:56,279 --> 00:05:00,159 Speaker 3: share it with. But basically what happens is all of 100 00:05:00,200 --> 00:05:03,160 Speaker 3: the supply on the secondary market comes from those people 101 00:05:03,560 --> 00:05:06,320 Speaker 3: buying really more than they would like to and then 102 00:05:06,440 --> 00:05:09,279 Speaker 3: reselling it. And so the modern consumer today is really 103 00:05:09,360 --> 00:05:12,560 Speaker 3: just circumventing a relationship with the team. They see no 104 00:05:12,839 --> 00:05:15,599 Speaker 3: value in this rigid book of tickets that they can 105 00:05:15,640 --> 00:05:19,200 Speaker 3: buy on the secondary market on a one off basis 106 00:05:19,200 --> 00:05:22,960 Speaker 3: with very little advanced notice, and there's really no value 107 00:05:23,000 --> 00:05:26,960 Speaker 3: proposition for that modern consumer to buy that bundle of 108 00:05:27,000 --> 00:05:27,920 Speaker 3: static tickets. 109 00:05:28,080 --> 00:05:31,279 Speaker 1: Fan Rally works with teams in the NBA, MLB, NHL, 110 00:05:31,360 --> 00:05:34,400 Speaker 1: and college sports, and with this system, the change that 111 00:05:34,560 --> 00:05:36,680 Speaker 1: might be shocking to season ticket holders. 112 00:05:36,920 --> 00:05:37,920 Speaker 2: A fan Rally. 113 00:05:37,680 --> 00:05:41,440 Speaker 1: Member does not have a permanent seat. With fan Rally, 114 00:05:41,560 --> 00:05:44,239 Speaker 1: a member's seat will likely change from game to game, 115 00:05:44,520 --> 00:05:47,800 Speaker 1: So those days of finding that little community of strangers 116 00:05:47,800 --> 00:05:51,400 Speaker 1: among season ticket holders in the same section would be altered, 117 00:05:51,480 --> 00:05:53,000 Speaker 1: but not necessarily gone forever. 118 00:05:53,360 --> 00:05:56,839 Speaker 3: I actually think fan Rally is helping take that same 119 00:05:56,960 --> 00:06:00,000 Speaker 3: exact thing where it has the nostalgia and the commit 120 00:06:00,080 --> 00:06:03,160 Speaker 3: unity you're building around you and applying it to the 121 00:06:03,200 --> 00:06:03,960 Speaker 3: next generation. 122 00:06:04,120 --> 00:06:07,080 Speaker 6: So rather than you know, those people kind of being 123 00:06:07,160 --> 00:06:08,599 Speaker 6: randomly assigned. 124 00:06:08,160 --> 00:06:11,080 Speaker 3: To you and you build community around them as they 125 00:06:11,160 --> 00:06:13,560 Speaker 3: kind of move in and out of the seat neighborhood 126 00:06:13,600 --> 00:06:16,720 Speaker 3: per se, what we're doing is we're allowing the seat 127 00:06:16,760 --> 00:06:20,320 Speaker 3: ecosystem to be completely flexible, so that you can go 128 00:06:20,600 --> 00:06:24,360 Speaker 3: with one other friend, you can go with your entire neighbor. 129 00:06:24,960 --> 00:06:28,680 Speaker 3: And so we're really allowing those kind of highly connected 130 00:06:28,760 --> 00:06:32,040 Speaker 3: moments that sports and powers. 131 00:06:31,120 --> 00:06:32,920 Speaker 6: To really kind of exist in. 132 00:06:32,839 --> 00:06:36,000 Speaker 3: Our modern ecosystem today and allow us to apply those 133 00:06:36,040 --> 00:06:39,280 Speaker 3: experiences to people you know, we care about, and we've 134 00:06:39,279 --> 00:06:43,200 Speaker 3: built relationships that aren't necessarily limited to that community of 135 00:06:43,200 --> 00:06:44,080 Speaker 3: folks in the ballpark. 136 00:06:46,080 --> 00:06:48,760 Speaker 1: For a majority of fans, though, the way they consume 137 00:06:48,800 --> 00:06:52,000 Speaker 1: their favorite sports or teams is through watching the games 138 00:06:52,000 --> 00:06:55,640 Speaker 1: at home. And just as traditional TV has been overtaken 139 00:06:55,680 --> 00:06:59,760 Speaker 1: by streamers, sports broadcasting is beginning to be breached by. 140 00:06:59,600 --> 00:07:03,360 Speaker 2: Those same tech companies. This fall, Amazon will be. 141 00:07:03,360 --> 00:07:06,760 Speaker 1: The exclusive home for Thursday Night Football, the NFL's first 142 00:07:06,839 --> 00:07:08,960 Speaker 1: ever all digital package. 143 00:07:09,080 --> 00:07:11,760 Speaker 4: I don't think Amazon is going to do something as 144 00:07:11,800 --> 00:07:15,200 Speaker 4: overt as you can buy the football in mid air 145 00:07:15,640 --> 00:07:18,800 Speaker 4: during a play, although that would be really technologically, really 146 00:07:18,840 --> 00:07:19,520 Speaker 4: really interesting. 147 00:07:19,640 --> 00:07:22,320 Speaker 1: That is Richard Deitsch, media reporter for The Athletic who 148 00:07:22,320 --> 00:07:25,400 Speaker 1: has covered the behind the scenes drama and intrigue of 149 00:07:25,440 --> 00:07:27,400 Speaker 1: the sports media business for years. 150 00:07:27,560 --> 00:07:31,600 Speaker 4: But you will get obviously ads for Prime all over 151 00:07:31,640 --> 00:07:34,880 Speaker 4: the place. Their interface will allow you to probably have 152 00:07:35,200 --> 00:07:38,040 Speaker 4: a very easy ability to get out of the game 153 00:07:38,120 --> 00:07:41,520 Speaker 4: and to shop. I am sure that they'll designate ads 154 00:07:41,600 --> 00:07:44,960 Speaker 4: that they know would be attractive to the football fans, 155 00:07:45,000 --> 00:07:47,520 Speaker 4: so if you sort of use the traditional ads that 156 00:07:47,600 --> 00:07:52,960 Speaker 4: advertising football fans, you know, beer, automobiles, movies, household products 157 00:07:52,960 --> 00:07:55,880 Speaker 4: that are named products, those kind of things. So I 158 00:07:55,880 --> 00:07:59,000 Speaker 4: don't think that it's going to be super intrusive in 159 00:07:59,080 --> 00:08:02,400 Speaker 4: terms of the commer virualization of you know, being able 160 00:08:02,440 --> 00:08:04,920 Speaker 4: to buy something like interrupting the game. I mean, I 161 00:08:04,920 --> 00:08:09,320 Speaker 4: think they understand very well that the NFL consumer does 162 00:08:09,360 --> 00:08:14,200 Speaker 4: not want something so dramatically different than what they're used to, 163 00:08:14,440 --> 00:08:16,520 Speaker 4: And I think this is already obviously a little bit 164 00:08:16,560 --> 00:08:19,560 Speaker 4: of citicism and skepticism when it just comes to the 165 00:08:19,640 --> 00:08:21,360 Speaker 4: overt selling of anything. 166 00:08:21,680 --> 00:08:25,360 Speaker 1: It is a radical venture for Amazon to broadcast primetime 167 00:08:25,600 --> 00:08:28,200 Speaker 1: NFL games, but the way that those games will look 168 00:08:28,520 --> 00:08:30,480 Speaker 1: will feel very familiar to football fans. 169 00:08:30,640 --> 00:08:35,280 Speaker 4: The one thing Amazon has made clear is that they're 170 00:08:35,320 --> 00:08:39,400 Speaker 4: really interested in what traditional NFL viewers are used to 171 00:08:39,520 --> 00:08:42,240 Speaker 4: when it comes to a quality broadcast. You saw them 172 00:08:42,520 --> 00:08:46,079 Speaker 4: signal that with their acquisition now Michaels. You know, I'm 173 00:08:46,120 --> 00:08:48,079 Speaker 4: not even sure it's arguably at this point is the 174 00:08:48,160 --> 00:08:52,200 Speaker 4: greatest play by play NFL broadcaster in history. They added 175 00:08:52,240 --> 00:08:54,800 Speaker 4: Kirk kerb Street, who, while doesn't have a ton of 176 00:08:54,880 --> 00:08:59,720 Speaker 4: NFL experience, is again considered a quality professional broadcaster, and 177 00:09:00,200 --> 00:09:04,079 Speaker 4: I think is college football fans now have has called 178 00:09:04,200 --> 00:09:08,240 Speaker 4: significant major college football games. Behind the scenes, they brought 179 00:09:08,320 --> 00:09:11,320 Speaker 4: in Fred Goodelli, who is a longtime executive producer of 180 00:09:11,320 --> 00:09:14,480 Speaker 4: Sunday and at football producer who's worked with not only 181 00:09:14,480 --> 00:09:18,520 Speaker 4: Al Michael's but John Madden, considered one of the best in. 182 00:09:18,559 --> 00:09:20,040 Speaker 6: History in terms of production. 183 00:09:20,280 --> 00:09:22,560 Speaker 4: So what Amazon has done, you know, they want to 184 00:09:22,559 --> 00:09:26,080 Speaker 4: have NFL broadcasts at a network quality. Whether they do 185 00:09:26,240 --> 00:09:29,000 Speaker 4: or not, the consumer will decide, but they've made the 186 00:09:29,040 --> 00:09:32,760 Speaker 4: initial investment in terms of quality, and I also think 187 00:09:32,800 --> 00:09:35,120 Speaker 4: you'll see that as they start to put their studio 188 00:09:35,360 --> 00:09:37,959 Speaker 4: shows and shoulder programming together as well. 189 00:09:38,400 --> 00:09:42,600 Speaker 1: Amazon's entry into the sports broadcasting arena comes as ESPN, 190 00:09:42,920 --> 00:09:46,440 Speaker 1: once an upstart themselves, is working to innovate how fans 191 00:09:46,480 --> 00:09:51,040 Speaker 1: watch the games by adding high profile alternative broadcast like 192 00:09:51,080 --> 00:09:54,760 Speaker 1: the Manning cast that became an immediate success, offering football 193 00:09:54,800 --> 00:09:57,200 Speaker 1: fans a totally different viewpoint on the game. 194 00:09:57,360 --> 00:10:00,240 Speaker 4: Mannings are very unique in that both paid any Line 195 00:10:00,320 --> 00:10:03,880 Speaker 4: Manning are really famous people. The show itself is very good. 196 00:10:03,880 --> 00:10:05,000 Speaker 6: They have great chemistry. 197 00:10:05,480 --> 00:10:08,640 Speaker 4: These are quarterbacks of onds, so you've actually learned something 198 00:10:08,640 --> 00:10:11,719 Speaker 4: from them. They've had very high profile guests, so it's 199 00:10:11,760 --> 00:10:13,880 Speaker 4: just an alternative broadcast. It'll be very very hard to 200 00:10:13,960 --> 00:10:16,559 Speaker 4: duplicate because you can't you know, you can't duplicate brothers 201 00:10:16,640 --> 00:10:19,240 Speaker 4: or sisters in a laboratory every day. 202 00:10:19,679 --> 00:10:22,240 Speaker 1: As Deiche said, it is hard to replicate the chemistry 203 00:10:22,280 --> 00:10:22,960 Speaker 1: of the Mannings. 204 00:10:23,160 --> 00:10:24,960 Speaker 2: The technology that it takes to pull. 205 00:10:24,760 --> 00:10:27,800 Speaker 1: Off the Manning cast makes it possible to innovate in 206 00:10:27,840 --> 00:10:28,960 Speaker 1: really exciting ways. 207 00:10:29,160 --> 00:10:31,200 Speaker 4: I think if you're a smaller sport, I think the 208 00:10:31,280 --> 00:10:35,080 Speaker 4: idea with alternative telecast is just makes your sport that 209 00:10:35,200 --> 00:10:38,360 Speaker 4: much more attractive. Take the WNBA for example, you know 210 00:10:38,400 --> 00:10:40,679 Speaker 4: that's a league that's willing to do experimentation. So if 211 00:10:40,679 --> 00:10:43,480 Speaker 4: you have an alternative broadcast, let's say where you're watching 212 00:10:43,480 --> 00:10:45,400 Speaker 4: the game from the point of view of a player 213 00:10:45,440 --> 00:10:48,920 Speaker 4: on the bench, and the WNBA gives you the access, 214 00:10:48,920 --> 00:10:51,040 Speaker 4: it gives the broadcast the access to do that, whether 215 00:10:51,040 --> 00:10:53,880 Speaker 4: it's just cameras on a chair or let's say a player, 216 00:10:53,880 --> 00:10:56,640 Speaker 4: a bench player is wearing some kind of camera microphone. 217 00:10:56,760 --> 00:10:58,920 Speaker 4: I mean, that's cool, and that's the league not basically 218 00:10:58,960 --> 00:11:03,559 Speaker 4: getting behind these alternate telecasts. So maybe the major sports 219 00:11:03,600 --> 00:11:05,520 Speaker 4: in the country might not do that. But whether it's 220 00:11:05,520 --> 00:11:08,079 Speaker 4: like an MLS or a WNBA or something that I 221 00:11:08,120 --> 00:11:10,640 Speaker 4: would fall under niche sports, a lot of these places 222 00:11:10,640 --> 00:11:15,600 Speaker 4: have actually are working with their media partners to actively 223 00:11:15,640 --> 00:11:18,320 Speaker 4: come up with more interesting ways to present the game. 224 00:11:18,720 --> 00:11:20,679 Speaker 4: And so there's a buy in when it comes from 225 00:11:20,679 --> 00:11:22,160 Speaker 4: a lot of these leagues that I'm not sure would 226 00:11:22,200 --> 00:11:23,120 Speaker 4: have been there ten years ago. 227 00:11:23,480 --> 00:11:26,160 Speaker 1: The man cast came along at the perfect moment, a 228 00:11:26,200 --> 00:11:30,000 Speaker 1: moment that wouldn't be possible that the innovations and technology 229 00:11:30,080 --> 00:11:33,080 Speaker 1: that made pulling off a television broadcast from a basement 230 00:11:33,360 --> 00:11:35,760 Speaker 1: look less like something out of Wayne's world and more 231 00:11:35,880 --> 00:11:38,280 Speaker 1: like what an audience is used to seeing on their TV's, 232 00:11:38,360 --> 00:11:39,400 Speaker 1: phones and tablets. 233 00:11:39,640 --> 00:11:43,040 Speaker 4: Check aspect obviously is massive in terms of the ability 234 00:11:43,040 --> 00:11:46,320 Speaker 4: to do alternative broadcasts. And you know, using the Mannings 235 00:11:46,679 --> 00:11:50,720 Speaker 4: for example, you have some kind of camera or studio 236 00:11:50,800 --> 00:11:53,120 Speaker 4: setup wherever Peyton lives and some kind of studio setup 237 00:11:53,120 --> 00:11:55,400 Speaker 4: where Eli lives, and now the technology exists where you 238 00:11:55,400 --> 00:11:58,160 Speaker 4: can see them or fuse those two together where it 239 00:11:58,240 --> 00:12:01,200 Speaker 4: comes off like a television product or like a traditional 240 00:12:01,240 --> 00:12:04,080 Speaker 4: linear product. You know, you don't need satellite trucks outside 241 00:12:04,120 --> 00:12:06,640 Speaker 4: of Peyton Mannings house or outside of Eli Mannings house 242 00:12:07,120 --> 00:12:10,160 Speaker 4: to do this. So the tech element is huge. You know, 243 00:12:10,200 --> 00:12:13,240 Speaker 4: I would consider alternative broadcast. But like, let's even say 244 00:12:13,280 --> 00:12:16,959 Speaker 4: like some well known podcast network sitting around watching a 245 00:12:17,040 --> 00:12:19,880 Speaker 4: game and you're filming the people watching the game talk 246 00:12:19,920 --> 00:12:22,480 Speaker 4: about the game. You know, obviously you can't rebroadcast the 247 00:12:22,520 --> 00:12:23,880 Speaker 4: game because you don't have the rights to it. But 248 00:12:23,960 --> 00:12:26,080 Speaker 4: that's all done because of tech. I mean you can 249 00:12:26,160 --> 00:12:29,280 Speaker 4: now do that because of things like Zoom or YouTube 250 00:12:29,360 --> 00:12:31,880 Speaker 4: or whatever. So the tech element changed the sort of 251 00:12:31,920 --> 00:12:33,839 Speaker 4: the equation when it comes to the thought process of 252 00:12:33,880 --> 00:12:35,040 Speaker 4: alternative broadcast. 253 00:12:35,840 --> 00:12:38,800 Speaker 1: And in the past there have been alternative broadcasts that 254 00:12:38,880 --> 00:12:41,800 Speaker 1: we really don't think of as alternative broadcasts. 255 00:12:43,440 --> 00:12:45,640 Speaker 2: It wasn't all that long ago that if. 256 00:12:45,480 --> 00:12:47,839 Speaker 1: You were a college basketball fan in March, you were 257 00:12:47,920 --> 00:12:51,520 Speaker 1: left at the mercy of programmers deciding which games during 258 00:12:51,559 --> 00:12:55,920 Speaker 1: the NCAA Tournament you'd have on your local CBS channel. Now, 259 00:12:56,000 --> 00:12:59,640 Speaker 1: Ditsch says March Madness, like current day, alternative broadcasts are 260 00:12:59,679 --> 00:13:03,120 Speaker 1: present in ways to maximize choice for viewers. 261 00:13:03,360 --> 00:13:07,440 Speaker 4: You know, having talked to CBS and Turners executives more 262 00:13:07,480 --> 00:13:09,920 Speaker 4: than I can count, you know, one of the things 263 00:13:09,960 --> 00:13:13,120 Speaker 4: that they push, and I think it's accurate, is the 264 00:13:13,280 --> 00:13:17,040 Speaker 4: NCAA tournament March man is in today's form really allows 265 00:13:17,120 --> 00:13:21,280 Speaker 4: you to be the director and producer of your own show. 266 00:13:21,520 --> 00:13:25,360 Speaker 4: You can choose to decide to flip between the you know, 267 00:13:25,480 --> 00:13:27,600 Speaker 4: four different games at once. You go from True TV 268 00:13:27,760 --> 00:13:31,840 Speaker 4: to CBS to TBS, or you can sit on one 269 00:13:31,920 --> 00:13:35,960 Speaker 4: game and watch that game, or you can go online 270 00:13:36,000 --> 00:13:38,200 Speaker 4: and watch it digitally and then obviously have all the 271 00:13:38,200 --> 00:13:42,360 Speaker 4: stats surrounding you on your laptop. Where again, the experience 272 00:13:42,360 --> 00:13:44,880 Speaker 4: for that same consumer fifteen years ago relied on a 273 00:13:44,920 --> 00:13:47,839 Speaker 4: CBS producer to make a decision as to when to 274 00:13:47,920 --> 00:13:50,280 Speaker 4: kick out of your game to go to another game 275 00:13:50,880 --> 00:13:53,000 Speaker 4: that was in the last minute, so you might get 276 00:13:53,000 --> 00:13:55,280 Speaker 4: a buzzer beater. You don't have the access and the 277 00:13:55,280 --> 00:13:59,920 Speaker 4: ability to watch every single NCAA Men's and Women's turn 278 00:14:00,040 --> 00:14:03,280 Speaker 4: them a game in full. And that's purely based on 279 00:14:03,520 --> 00:14:07,360 Speaker 4: giving consumers more choice and more agency when it comes 280 00:14:07,440 --> 00:14:08,880 Speaker 4: to what they watch. And this is what this is 281 00:14:08,920 --> 00:14:11,520 Speaker 4: all about. I mean, the amount of money that people 282 00:14:11,520 --> 00:14:14,880 Speaker 4: now have to spend for multiple streaming services is and 283 00:14:15,080 --> 00:14:18,640 Speaker 4: quite frankly antifan and absurd just giving the amount of 284 00:14:18,679 --> 00:14:21,200 Speaker 4: money so at a base minimum, if you are asking 285 00:14:21,240 --> 00:14:23,720 Speaker 4: people to go into their pocket to pay for multiple 286 00:14:23,760 --> 00:14:26,360 Speaker 4: streaming services, if you're one of those streaming services, you 287 00:14:26,440 --> 00:14:29,320 Speaker 4: better do everything that you can to make that experience 288 00:14:29,400 --> 00:14:30,880 Speaker 4: as good as possible for consumer. 289 00:14:31,040 --> 00:14:35,360 Speaker 1: The manning cast, putting cameras on referees and players, stats 290 00:14:35,360 --> 00:14:38,400 Speaker 1: centric broadcasts, all of it comes down to one goal, 291 00:14:38,600 --> 00:14:42,400 Speaker 1: giving customers, consumers, viewers control and choice. 292 00:14:42,600 --> 00:14:45,000 Speaker 4: Ultimately, you want to be seen as a place that 293 00:14:45,040 --> 00:14:48,120 Speaker 4: gives consumers choice, that makes the consumer feel that he 294 00:14:48,280 --> 00:14:51,440 Speaker 4: or she is directing their own broadcast or producing their 295 00:14:51,480 --> 00:14:54,320 Speaker 4: own broadcast. By giving them more choices in terms of 296 00:14:54,320 --> 00:14:56,880 Speaker 4: how to watch something. You provide that, and I would 297 00:14:57,000 --> 00:14:59,480 Speaker 4: argue that that's good business because then it makes the 298 00:14:59,520 --> 00:15:01,920 Speaker 4: consumer I feel like more connected to your product, and 299 00:15:02,000 --> 00:15:04,120 Speaker 4: the consumer is more connect to your product, the likelihood 300 00:15:04,160 --> 00:15:06,080 Speaker 4: is the consumer will continue to purchase and pay for 301 00:15:06,120 --> 00:15:06,560 Speaker 4: your product. 302 00:15:07,000 --> 00:15:09,080 Speaker 1: Coming back after the break, we'll move from the at 303 00:15:09,120 --> 00:15:12,720 Speaker 1: home viewing experience to the world of memorabilia, where what 304 00:15:12,800 --> 00:15:14,720 Speaker 1: people buy is moving more from. 305 00:15:14,560 --> 00:15:16,760 Speaker 2: The physical world to the digital world. 306 00:15:26,800 --> 00:15:28,680 Speaker 1: Okay, so this is the part of the episode where 307 00:15:28,720 --> 00:15:32,080 Speaker 1: I should explain what an NFT is a non fungible token, 308 00:15:32,200 --> 00:15:34,680 Speaker 1: But for someone not steeped in the digital world, it 309 00:15:34,760 --> 00:15:35,520 Speaker 1: can be difficult. 310 00:15:35,880 --> 00:15:39,640 Speaker 5: I think overall a limited public understanding of what NFTs 311 00:15:39,760 --> 00:15:42,960 Speaker 5: are because it is a complex subject. 312 00:15:43,440 --> 00:15:44,440 Speaker 2: It's very technical. 313 00:15:44,680 --> 00:15:47,360 Speaker 1: That is Bill Shea a senior reporter at The Athletic 314 00:15:47,440 --> 00:15:51,240 Speaker 1: covering the business of sports, and as a sports business reporter, 315 00:15:51,400 --> 00:15:54,960 Speaker 1: Shay is bombarded with public relations emails about how Team 316 00:15:55,160 --> 00:15:58,800 Speaker 1: X player why has released their newest batch of NFTs. 317 00:15:58,960 --> 00:16:00,480 Speaker 5: So it's kind of like being on the Internet in 318 00:16:00,520 --> 00:16:03,560 Speaker 5: the early nineteen eighties, before the internet was even a word, 319 00:16:03,600 --> 00:16:06,920 Speaker 5: people knew and top Shot was one of the first 320 00:16:06,960 --> 00:16:09,080 Speaker 5: to make it really easy you didn't have to understand 321 00:16:09,120 --> 00:16:12,720 Speaker 5: gas fees and wallets and stuff like that. Could basically 322 00:16:12,880 --> 00:16:15,000 Speaker 5: just give them your money and you've got the little 323 00:16:15,000 --> 00:16:16,520 Speaker 5: digital collectible. 324 00:16:16,640 --> 00:16:19,320 Speaker 1: For the purpose of this conversation, the NFTs we are 325 00:16:19,360 --> 00:16:23,240 Speaker 1: focusing on are a form of digital memorabilia. Virtual rings, 326 00:16:23,320 --> 00:16:26,600 Speaker 1: trading cards, video highlights, jerseys, hats, anything a fan would 327 00:16:26,600 --> 00:16:29,640 Speaker 1: normally buy in person, they can get a digital version 328 00:16:30,000 --> 00:16:32,280 Speaker 1: of that same item or piece of history. 329 00:16:32,440 --> 00:16:35,240 Speaker 5: In terms for sports fans, you know seeing the like 330 00:16:35,360 --> 00:16:39,440 Speaker 5: you know digital you know highlights or images, still images. 331 00:16:39,920 --> 00:16:43,520 Speaker 5: It's basically data that lives on an encrypted server. 332 00:16:43,960 --> 00:16:48,080 Speaker 2: It can't be replicated. There's one so you own that 333 00:16:48,560 --> 00:16:48,760 Speaker 2: you know. 334 00:16:48,760 --> 00:16:52,040 Speaker 5: They're they're you know, created by an artist or a 335 00:16:52,080 --> 00:16:54,920 Speaker 5: sweatshop or whoever makes the thing, you know, and then 336 00:16:54,920 --> 00:16:59,480 Speaker 5: they are minted on a blockchain, which is just a 337 00:16:59,560 --> 00:17:02,520 Speaker 5: highly technical way of a bunch of computer servers that 338 00:17:02,560 --> 00:17:05,800 Speaker 5: are really hard or impossible to hack. You're basically buying 339 00:17:05,800 --> 00:17:10,119 Speaker 5: a jpeg or a gift that someone else created, but 340 00:17:10,480 --> 00:17:13,399 Speaker 5: you or I can like write, click and copy that 341 00:17:13,600 --> 00:17:15,800 Speaker 5: make it our Twitter avatar and no one would know. 342 00:17:16,119 --> 00:17:19,960 Speaker 1: The dramatic impact of the pandemic forced businesses into a 343 00:17:19,960 --> 00:17:23,040 Speaker 1: pressure cooker where they had to innovate to survive. For 344 00:17:23,160 --> 00:17:26,959 Speaker 1: sports teams who took a massive financial hit the limited 345 00:17:27,000 --> 00:17:31,000 Speaker 1: games and no fans, many of those organizations dove headfirst 346 00:17:31,040 --> 00:17:35,440 Speaker 1: into building out alternative revenue streams like NFTs. 347 00:17:35,680 --> 00:17:39,199 Speaker 5: You know, coming off of twenty twenty where sports was 348 00:17:39,280 --> 00:17:43,080 Speaker 5: just completely mangled by the pandemic. You know, we had 349 00:17:43,119 --> 00:17:46,720 Speaker 5: a sixty game baseball season, you know, major events all 350 00:17:46,760 --> 00:17:49,840 Speaker 5: out of whack on the calendar, stuff like that, you know, 351 00:17:49,880 --> 00:17:52,880 Speaker 5: and and teams had many teams had to borrow big 352 00:17:52,920 --> 00:17:55,159 Speaker 5: sums of money. You know, it's something like an average 353 00:17:55,160 --> 00:17:57,760 Speaker 5: of one hundred million dollars across baseball to pay the 354 00:17:57,800 --> 00:18:00,920 Speaker 5: bills in twenty twenty, so they amounted to debts. Everybody 355 00:18:01,080 --> 00:18:03,520 Speaker 5: was looking around, like, hey, what are some easy ways 356 00:18:03,600 --> 00:18:06,560 Speaker 5: we can make money that don't require a bunch of 357 00:18:06,760 --> 00:18:11,000 Speaker 5: COVID stuff, you know, limitations and all that. And everybody 358 00:18:11,000 --> 00:18:16,119 Speaker 5: saw what NBA Top Shot was doing, and they were like, whoa. 359 00:18:16,280 --> 00:18:18,960 Speaker 1: Top Shot from the company Dapper Labs is one of 360 00:18:18,960 --> 00:18:22,480 Speaker 1: the leading creators of sports related NFTs. Cha Say's Top 361 00:18:22,560 --> 00:18:26,359 Speaker 1: Shot exploded on the scene, creating a new memorabilium market 362 00:18:26,480 --> 00:18:27,400 Speaker 1: almost by itself. 363 00:18:27,520 --> 00:18:30,280 Speaker 5: In the early sales were in the hundreds of millions. 364 00:18:30,440 --> 00:18:32,720 Speaker 5: Now that wasn't retail, you know, there was the front 365 00:18:32,840 --> 00:18:35,439 Speaker 5: end retail sales of x number of millions. And then 366 00:18:35,480 --> 00:18:38,960 Speaker 5: they have an online marketplace where basically it's like a 367 00:18:39,200 --> 00:18:42,000 Speaker 5: trading card show. You go in, you have your your collection. 368 00:18:42,240 --> 00:18:44,080 Speaker 5: Some of it's like ooh, I'd like to buy that one. 369 00:18:44,119 --> 00:18:46,440 Speaker 5: They can make an offer for, you know, the one 370 00:18:46,520 --> 00:18:50,760 Speaker 5: of one of you know, Lebron dunking on somebody, and 371 00:18:50,880 --> 00:18:54,679 Speaker 5: you agree to a price. And that's where the hundreds 372 00:18:54,680 --> 00:18:57,600 Speaker 5: and hundreds of millions of dollars early on took place, 373 00:18:57,920 --> 00:19:00,479 Speaker 5: with the NBA and the Union getting cut of each 374 00:19:00,520 --> 00:19:01,119 Speaker 5: of those sales. 375 00:19:01,440 --> 00:19:04,920 Speaker 1: Even though the sports related NFT market is new, there's 376 00:19:05,000 --> 00:19:09,240 Speaker 1: already been different generations of innovations. Today, the higher priced 377 00:19:09,280 --> 00:19:12,280 Speaker 1: items that are sold connected back to the non digital space, 378 00:19:12,760 --> 00:19:13,720 Speaker 1: you know, the real world. 379 00:19:13,960 --> 00:19:18,000 Speaker 5: One of the ways that teams and organizations give more 380 00:19:18,119 --> 00:19:21,000 Speaker 5: utility to these things is tying them to real world 381 00:19:21,160 --> 00:19:25,000 Speaker 5: physical items or experiences. You know, some of them have 382 00:19:25,080 --> 00:19:27,320 Speaker 5: been attached to like oh, it's our World series ring. 383 00:19:27,560 --> 00:19:29,640 Speaker 5: You can get a real one if you bid enough 384 00:19:29,800 --> 00:19:31,960 Speaker 5: on this. If you bid you know, one hundred thousand 385 00:19:32,000 --> 00:19:34,600 Speaker 5: bucks you know, you get an actual ring and a 386 00:19:34,680 --> 00:19:37,160 Speaker 5: trip to the stadium and me players throughout a first 387 00:19:37,200 --> 00:19:41,920 Speaker 5: pitch or something like that. Grenkowski did a thing last 388 00:19:42,040 --> 00:19:44,960 Speaker 5: year where you know, you buy his NFTs, the high 389 00:19:45,080 --> 00:19:47,119 Speaker 5: end ones, you get tickets to a game and a 390 00:19:47,200 --> 00:19:49,600 Speaker 5: meet and greet with him. So you know there are 391 00:19:49,760 --> 00:19:53,840 Speaker 5: some physical experiences attached, but you know, the number of 392 00:19:53,960 --> 00:19:56,840 Speaker 5: zeros on the check gets longer and longer on these 393 00:19:56,960 --> 00:19:59,880 Speaker 5: things to get to the those exclusive experience. 394 00:20:00,359 --> 00:20:03,840 Speaker 1: Evangelists of NFTs declared that they are the future for collectibles, 395 00:20:03,920 --> 00:20:07,440 Speaker 1: and others have absolutely no time and could care less 396 00:20:07,520 --> 00:20:10,560 Speaker 1: what an NFT is. So our NFT is the future, 397 00:20:11,119 --> 00:20:14,040 Speaker 1: say says anyone that actually knows that answer should be 398 00:20:14,119 --> 00:20:14,640 Speaker 1: really rich. 399 00:20:14,960 --> 00:20:17,719 Speaker 5: If I knew absolutely, I would be bottling my answer 400 00:20:17,800 --> 00:20:21,200 Speaker 5: and selling it to all the biggest auction houses and 401 00:20:21,600 --> 00:20:24,840 Speaker 5: sports collectible companies. But it has been really amazing to 402 00:20:24,920 --> 00:20:27,560 Speaker 5: see the last two years, not just the collectibles, but 403 00:20:27,680 --> 00:20:30,480 Speaker 5: the digital aspect take over as well. And I will 404 00:20:30,520 --> 00:20:34,040 Speaker 5: say this, You know, people often compare NFTs and I've 405 00:20:34,119 --> 00:20:37,000 Speaker 5: done it in my own research and analysis and writing, 406 00:20:37,320 --> 00:20:39,680 Speaker 5: you know, to the famous booms of the past and 407 00:20:39,760 --> 00:20:43,320 Speaker 5: bubbles like the Dutch famous the Dutch tulip bulbs, you know, 408 00:20:43,480 --> 00:20:47,480 Speaker 5: in the sixteenth century that just exploded the economy. And 409 00:20:47,600 --> 00:20:50,280 Speaker 5: beanie babies in the nineteen nineties, where you know, people 410 00:20:50,400 --> 00:20:55,280 Speaker 5: got crazy for those. People still collects and pay handsome 411 00:20:55,359 --> 00:20:57,639 Speaker 5: sums for beanie babies, but it is a very niche 412 00:20:57,720 --> 00:21:00,040 Speaker 5: population of people. But I feel like an eBay and 413 00:21:00,119 --> 00:21:03,760 Speaker 5: there's ones that sell for thousands and thousands of dollars. Still, 414 00:21:04,960 --> 00:21:09,159 Speaker 5: maybe NFTs become this sort of unique club of people 415 00:21:09,280 --> 00:21:12,040 Speaker 5: because everybody, I mean, they're just everywhere now, and I 416 00:21:12,119 --> 00:21:14,920 Speaker 5: don't know how you find much value in that. You know, 417 00:21:15,320 --> 00:21:18,000 Speaker 5: the market has not settled on these things. 418 00:21:20,280 --> 00:21:24,800 Speaker 1: Each of these stories, membership seating, alternative broadcast, sports related 419 00:21:24,920 --> 00:21:29,240 Speaker 1: NFTs all share a common ideal. Innovations based on what 420 00:21:29,359 --> 00:21:33,199 Speaker 1: a customer wants creates success. The membership seating program being 421 00:21:33,280 --> 00:21:35,600 Speaker 1: led by fan Rally is a sign that sports fans 422 00:21:35,680 --> 00:21:38,919 Speaker 1: want flexibility in how they go to games. The alternative 423 00:21:38,960 --> 00:21:42,080 Speaker 1: broadcasts start about giving fans choice they can become their 424 00:21:42,119 --> 00:21:44,920 Speaker 1: own version of an at home TV producer, and sports 425 00:21:45,000 --> 00:21:48,760 Speaker 1: related NFTs are addressing the desire for memorabilia that is personal, 426 00:21:49,160 --> 00:21:51,760 Speaker 1: one of one, unique, and that is shaable in the 427 00:21:51,880 --> 00:21:54,879 Speaker 1: digital social media world. But as dramatic as the changing 428 00:21:54,960 --> 00:21:58,240 Speaker 1: landscape is for fans, for those inside of sports, the. 429 00:21:58,359 --> 00:22:00,520 Speaker 2: Change is happening at an even faster pace. 430 00:22:00,760 --> 00:22:03,359 Speaker 7: Now they can test all the drills that coaches have 431 00:22:03,480 --> 00:22:06,040 Speaker 7: been doing for years. Now you can say, Okay, we 432 00:22:06,160 --> 00:22:08,720 Speaker 7: did an assessment and then we did this one drill, 433 00:22:09,000 --> 00:22:11,439 Speaker 7: and then after we did another assessment and it changed 434 00:22:11,440 --> 00:22:13,640 Speaker 7: your hip shoulder separation, so that drill. 435 00:22:13,520 --> 00:22:14,000 Speaker 2: Is a good one. 436 00:22:14,400 --> 00:22:16,200 Speaker 7: We did an assessment, we did these other drills. 437 00:22:16,320 --> 00:22:16,920 Speaker 5: They didn't work. 438 00:22:17,080 --> 00:22:18,200 Speaker 7: Let's stop doing those drills. 439 00:22:18,320 --> 00:22:18,480 Speaker 3: You know. 440 00:22:19,200 --> 00:22:21,840 Speaker 1: More on that in next week's episode. This has been 441 00:22:21,920 --> 00:22:25,439 Speaker 1: Mike Smeltz from the Athletic Podcast Network. Thank you for listening.