1 00:00:00,040 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,520 --> 00:00:10,440 Speaker 2: This is the business of sports. 3 00:00:10,520 --> 00:00:13,960 Speaker 3: Our aim is always to leverage the global appeal of football. 4 00:00:14,120 --> 00:00:18,280 Speaker 3: Having representation in college sports is even more important than. 5 00:00:18,200 --> 00:00:21,119 Speaker 4: Pro Ten percent of Americans now claimed sokup could be 6 00:00:21,239 --> 00:00:22,040 Speaker 4: that favorite sport. 7 00:00:22,160 --> 00:00:26,000 Speaker 1: We estimate the youth sports audience has three trillion dollars 8 00:00:26,000 --> 00:00:29,480 Speaker 1: in spending power. The nature of baseball is, it is 9 00:00:29,520 --> 00:00:31,000 Speaker 1: worldwide and it is flooring. 10 00:00:31,160 --> 00:00:34,600 Speaker 5: I'm very happy for the WNBA and how the NBA 11 00:00:34,840 --> 00:00:36,120 Speaker 5: has embraced them. 12 00:00:36,200 --> 00:00:38,440 Speaker 2: Sports books are not going anywhere, and sports betting is 13 00:00:38,479 --> 00:00:40,960 Speaker 2: only growing. We have a super team running this league, 14 00:00:41,000 --> 00:00:42,600 Speaker 2: and this league is here and it's here to stay. 15 00:00:42,760 --> 00:00:46,280 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 16 00:00:47,280 --> 00:00:50,360 Speaker 5: This is the Bloomberg Business of Sports. A we explore 17 00:00:50,400 --> 00:00:52,720 Speaker 5: the big money issues in the world of sports. 18 00:00:52,800 --> 00:00:55,440 Speaker 2: I'm Michael Bahr, I'm Vanessa Prano and Maglion. 19 00:00:55,200 --> 00:00:58,160 Speaker 5: And I'm Randa Williams. Coming up today, we are going 20 00:00:58,200 --> 00:01:01,480 Speaker 5: to be talking about the goat of all goats, reigning 21 00:01:01,560 --> 00:01:03,640 Speaker 5: World Cup champion Lionel Messi. 22 00:01:04,200 --> 00:01:06,480 Speaker 6: He's not here with us in the studio sadly, but 23 00:01:06,560 --> 00:01:07,759 Speaker 6: we have the next best thing. 24 00:01:07,959 --> 00:01:09,680 Speaker 2: The guy who wrote the book on him. 25 00:01:09,959 --> 00:01:12,600 Speaker 5: But first we are going to start introducing the start 26 00:01:12,640 --> 00:01:15,839 Speaker 5: of the show with a little news blast and give 27 00:01:15,959 --> 00:01:19,080 Speaker 5: context to the biggest headlines of the week. The Major 28 00:01:19,160 --> 00:01:23,280 Speaker 5: League Baseball Players Association has made their first formal proposal 29 00:01:23,600 --> 00:01:27,480 Speaker 5: in collective bargaining talks with Major League Baseball. We know 30 00:01:27,600 --> 00:01:30,319 Speaker 5: that these talks are not going to be easy for 31 00:01:30,400 --> 00:01:33,679 Speaker 5: both sides, Randall, can you give us some context on 32 00:01:34,080 --> 00:01:38,520 Speaker 5: what Baseball is heading for for the negotiations this offseason? Sure? 33 00:01:38,560 --> 00:01:41,080 Speaker 7: So I'll start by saying that if you thought the 34 00:01:41,360 --> 00:01:46,520 Speaker 7: WNBA and the WMBPA conversations around collective bargaining or tents, 35 00:01:46,560 --> 00:01:49,120 Speaker 7: that I would imagine this is going to be twice 36 00:01:49,320 --> 00:01:53,400 Speaker 7: as tense. And so the MLBPA made their first proposal. 37 00:01:54,120 --> 00:01:58,960 Speaker 7: According to ESPN, the proposal included sharing more local television revenue, 38 00:02:00,160 --> 00:02:05,400 Speaker 7: included a competitive balance tax for top spending clubs, a 39 00:02:05,520 --> 00:02:08,760 Speaker 7: rays of a base competitive balance tax from the threshold 40 00:02:08,760 --> 00:02:11,160 Speaker 7: from two hundred and forty four million to three hundred million, 41 00:02:11,400 --> 00:02:13,600 Speaker 7: and so many other details. And of course this is 42 00:02:13,639 --> 00:02:16,480 Speaker 7: going to be a very very long collective bargaining session. 43 00:02:16,680 --> 00:02:19,640 Speaker 7: There is concern from both sides really about a work 44 00:02:19,639 --> 00:02:23,840 Speaker 7: stoppage and really the principal issue is whether there should 45 00:02:23,840 --> 00:02:28,320 Speaker 7: be a minimum spending requirement from owners or a cap. 46 00:02:28,400 --> 00:02:31,400 Speaker 7: And if you ask, we talked to multiple baseball players 47 00:02:31,440 --> 00:02:33,840 Speaker 7: throughout this year. They are allergic to a cap. It 48 00:02:33,880 --> 00:02:36,000 Speaker 7: is fatal to them. They do not believe in it. 49 00:02:36,280 --> 00:02:38,200 Speaker 7: And so if there is a cap, I would expect 50 00:02:38,200 --> 00:02:40,200 Speaker 7: a lockout. And if there isn't one and there's a 51 00:02:40,240 --> 00:02:44,920 Speaker 7: minimum spending requirement from owners, they are going to oppose that. 52 00:02:45,040 --> 00:02:48,000 Speaker 7: And so what is the balance is going to be 53 00:02:48,120 --> 00:02:50,320 Speaker 7: the instrumental thing that I think we're all going to 54 00:02:50,360 --> 00:02:53,560 Speaker 7: find out because baseball has tremendous momentum right now. If 55 00:02:53,600 --> 00:02:55,760 Speaker 7: you think about the last couple World Series, probably the 56 00:02:55,760 --> 00:02:59,120 Speaker 7: greatest World Series that I've ever watched, and the stars 57 00:02:59,160 --> 00:03:02,120 Speaker 7: are continuing to or larger. It's sort of a resurgence 58 00:03:02,160 --> 00:03:05,680 Speaker 7: of baseball. And if there is a stoppage similar to 59 00:03:06,160 --> 00:03:08,959 Speaker 7: the potential stoppage that could have happened in a WNBA, 60 00:03:09,040 --> 00:03:11,919 Speaker 7: that it could stop momentum. I know that both parties 61 00:03:11,960 --> 00:03:14,160 Speaker 7: want to avoid that, but they have some issues to 62 00:03:14,200 --> 00:03:14,840 Speaker 7: discuss first. 63 00:03:14,960 --> 00:03:16,400 Speaker 6: I was just going to say that Randall, I mean, 64 00:03:16,400 --> 00:03:19,440 Speaker 6: it's funny that these things both happen for the WNBA 65 00:03:19,560 --> 00:03:22,520 Speaker 6: and the MLB right when they're both leagues are surging, 66 00:03:22,840 --> 00:03:26,440 Speaker 6: So couldn't be a worse time for both parties to 67 00:03:26,480 --> 00:03:29,200 Speaker 6: start negotiating one of the most important things that they 68 00:03:29,200 --> 00:03:31,880 Speaker 6: have to negotiate. It's not a simple CBA for either 69 00:03:31,919 --> 00:03:33,880 Speaker 6: of these parties, and I think it's because of the 70 00:03:33,919 --> 00:03:37,040 Speaker 6: momentum that they're both having that MLB the players have, 71 00:03:37,240 --> 00:03:39,440 Speaker 6: you know, really hard ground to stand on. But the 72 00:03:39,480 --> 00:03:43,120 Speaker 6: reality is that the spending floor is what that they 73 00:03:43,120 --> 00:03:46,160 Speaker 6: would maybe agree to, but the cap is is something 74 00:03:46,320 --> 00:03:47,600 Speaker 6: I don't think they'll ever get to. 75 00:03:48,160 --> 00:03:51,040 Speaker 7: Yeah, I don't think a cap is likely, but it 76 00:03:51,080 --> 00:03:55,160 Speaker 7: really depends on how long old owners are willing to 77 00:03:55,200 --> 00:03:57,280 Speaker 7: lose money on a lockout and how long players can 78 00:03:57,280 --> 00:04:00,480 Speaker 7: hold down on one. That's really what it comes down TONBA. 79 00:04:00,640 --> 00:04:02,800 Speaker 7: The stakes were very high, but they also had a 80 00:04:02,840 --> 00:04:05,440 Speaker 7: lot of time. Like you have to think the WNBA 81 00:04:05,600 --> 00:04:09,880 Speaker 7: or the WNBPA opted out of that collective bargaining agreement 82 00:04:09,920 --> 00:04:12,440 Speaker 7: I believe in that was either twenty I believe I 83 00:04:12,520 --> 00:04:15,680 Speaker 7: was twenty four the end of twenty twenty four, and 84 00:04:15,720 --> 00:04:18,360 Speaker 7: then they bargained for over a year. Baseball doesn't have 85 00:04:18,400 --> 00:04:20,799 Speaker 7: that luxury. They're going to need to get the battle 86 00:04:20,880 --> 00:04:23,120 Speaker 7: to the medal and get something done or make some 87 00:04:23,200 --> 00:04:25,599 Speaker 7: progress at some point so that games aren't lost. 88 00:04:25,880 --> 00:04:28,880 Speaker 5: Well, I remember the work stoppage back in the early nineties, 89 00:04:28,960 --> 00:04:33,160 Speaker 5: and man, it just killed the game. And you know, 90 00:04:33,320 --> 00:04:37,040 Speaker 5: it took a home run derby with Sammy Sosa and 91 00:04:37,120 --> 00:04:40,520 Speaker 5: Mark McGuire and to least get some interest back. So 92 00:04:40,600 --> 00:04:43,560 Speaker 5: I'm hoping we're going to be keeping a close eye 93 00:04:43,839 --> 00:04:47,080 Speaker 5: on those negotiations throughout the year. Now, let's talk some 94 00:04:47,320 --> 00:04:51,960 Speaker 5: soccer as we are joined in the studio by Paul Tenio. 95 00:04:52,080 --> 00:04:55,240 Speaker 5: He is the senior writer at The Athletic and the 96 00:04:55,279 --> 00:04:59,480 Speaker 5: author of The Messy Effect. Paulul Welcome to the Bloomberg 97 00:04:59,520 --> 00:05:02,760 Speaker 5: Business Sports. This book, by the way, which is great, 98 00:05:03,080 --> 00:05:08,320 Speaker 5: is coming out June second. And I understand now why 99 00:05:08,520 --> 00:05:10,840 Speaker 5: a lot of people are reading this book because this 100 00:05:10,960 --> 00:05:15,240 Speaker 5: man is loaded. He is one point forty five billion 101 00:05:15,320 --> 00:05:19,360 Speaker 5: dollars worth of money according to Forbes magazine. 102 00:05:19,800 --> 00:05:21,640 Speaker 4: Yeah, well that's that's certainly what he's done to the 103 00:05:21,680 --> 00:05:23,800 Speaker 4: valuation of Inter Miami. And when you talk about what 104 00:05:24,000 --> 00:05:26,800 Speaker 4: his impact has been in Major League soccer, the short 105 00:05:26,880 --> 00:05:29,880 Speaker 4: term impact, we have to start with the money. The 106 00:05:30,000 --> 00:05:33,479 Speaker 4: money that is just phenomenal across the league. Of what 107 00:05:33,560 --> 00:05:36,640 Speaker 4: he's done, the valuation of the team has more than doubled. 108 00:05:36,920 --> 00:05:39,200 Speaker 4: The revenue has gone through the roof more than two 109 00:05:39,279 --> 00:05:41,520 Speaker 4: hundred million dollars in revenue, the first MLS team to 110 00:05:41,560 --> 00:05:44,880 Speaker 4: accomplish that. The number one best selling Adidas jersey in 111 00:05:44,920 --> 00:05:50,080 Speaker 4: the world. Sold out stadiums across the entire league, teams moving, 112 00:05:50,520 --> 00:05:52,680 Speaker 4: you know, for example, Sporting Kansas City moving from their 113 00:05:52,680 --> 00:05:56,080 Speaker 4: soccer specific stadium to Arrowhead and then selling out Arrowhead. 114 00:05:56,360 --> 00:05:59,440 Speaker 4: So you know, Chicago Fire had the most revenue in 115 00:05:59,480 --> 00:06:02,440 Speaker 4: a single game ever playing against Inner Miami because Messi 116 00:06:02,560 --> 00:06:05,280 Speaker 4: was coming to town. So this is the short term 117 00:06:05,320 --> 00:06:09,320 Speaker 4: impact that he's had, and it really is now about 118 00:06:09,360 --> 00:06:11,640 Speaker 4: how do you take that and make a longer tail 119 00:06:11,680 --> 00:06:13,920 Speaker 4: out of it? How do you make the messy effect 120 00:06:14,080 --> 00:06:17,560 Speaker 4: last longer than just now when he's playing, because he's 121 00:06:17,600 --> 00:06:18,480 Speaker 4: not going to play forever. 122 00:06:19,040 --> 00:06:21,200 Speaker 2: I love that, and how are they going to do that? 123 00:06:21,200 --> 00:06:23,240 Speaker 6: Obviously, the World Cup is this year, he'll be playing, 124 00:06:23,279 --> 00:06:25,960 Speaker 6: you know, here in the US, which is amazing, and 125 00:06:26,040 --> 00:06:28,560 Speaker 6: obviously everyone will be able to see him, the US 126 00:06:28,600 --> 00:06:31,240 Speaker 6: team and all of that, But how do they continue 127 00:06:31,360 --> 00:06:33,960 Speaker 6: the messy effect after the World Cup is over. 128 00:06:34,440 --> 00:06:36,720 Speaker 4: Well, that's a lot of what this book is actually about. 129 00:06:36,760 --> 00:06:38,359 Speaker 4: As much as I try to take people into the 130 00:06:38,400 --> 00:06:40,400 Speaker 4: locker room, I try to take them into the boardroom 131 00:06:40,440 --> 00:06:43,080 Speaker 4: in MLS because the owners are trying to make these 132 00:06:43,120 --> 00:06:45,760 Speaker 4: decisions of what do we have to do in MLS, 133 00:06:45,760 --> 00:06:49,839 Speaker 4: in the league to make it matter that when MESSI 134 00:06:49,960 --> 00:06:52,840 Speaker 4: was here to take this moment and extend it. And 135 00:06:53,160 --> 00:06:55,799 Speaker 4: I think a great example is David Beckham. When David 136 00:06:55,800 --> 00:06:59,160 Speaker 4: Beckham came to the LA Galaxy, he changed the league 137 00:06:59,200 --> 00:07:01,720 Speaker 4: not just because of his celebrity, but because they created 138 00:07:01,720 --> 00:07:04,560 Speaker 4: a new rule, the Designated Player rule, to allow the 139 00:07:04,600 --> 00:07:06,120 Speaker 4: Galaxy to sign David Beckham. 140 00:07:06,520 --> 00:07:08,400 Speaker 5: And that rule changed. 141 00:07:08,040 --> 00:07:11,360 Speaker 4: The face of Major League Soccer forever. Allowed big stars 142 00:07:11,360 --> 00:07:14,440 Speaker 4: to come like Tierryanrie and s Latan Ibrahimovich and Kaka 143 00:07:14,440 --> 00:07:18,559 Speaker 4: and eventually Messy. So the rule was enacted by the owners. 144 00:07:18,640 --> 00:07:21,160 Speaker 4: It's on the owners now to change the way MLS 145 00:07:21,160 --> 00:07:23,680 Speaker 4: operates in order to make this league more competitive, more 146 00:07:23,720 --> 00:07:26,840 Speaker 4: competitive in the domestic sports landscape where you're competing with 147 00:07:26,880 --> 00:07:29,960 Speaker 4: the NFL and the NBA, college football, Major League Baseball, 148 00:07:29,960 --> 00:07:33,840 Speaker 4: the NHL, and more competitive in the global soccer landscape. 149 00:07:33,920 --> 00:07:36,720 Speaker 4: Right the economy that exists all around the world for 150 00:07:36,800 --> 00:07:40,160 Speaker 4: this sport, they need to change their roster rules and 151 00:07:40,200 --> 00:07:43,480 Speaker 4: so from MLS's perspective, that's where the decisions are being 152 00:07:43,800 --> 00:07:47,120 Speaker 4: made and still need to be made. From a Miami perspective, 153 00:07:47,160 --> 00:07:49,800 Speaker 4: I think Cordemas has a really good idea about it. 154 00:07:49,880 --> 00:07:52,200 Speaker 4: And again it goes back to the example of Beckham. 155 00:07:52,760 --> 00:07:55,280 Speaker 4: When Beckham signed an MLS, they gave him in his 156 00:07:55,360 --> 00:07:58,720 Speaker 4: contract is right, this trigger to have an expansion team. 157 00:07:58,760 --> 00:08:03,120 Speaker 4: That expansion team became in Miami, which eventually brought Messi. Right, well, 158 00:08:03,160 --> 00:08:04,760 Speaker 4: what did it do for Major League Soccer to give 159 00:08:04,800 --> 00:08:09,280 Speaker 4: him an expansion team? It kept Beckham's brand linked to MLS. 160 00:08:09,360 --> 00:08:11,440 Speaker 4: Still to this day, David Beckham, one of the biggest 161 00:08:11,440 --> 00:08:13,600 Speaker 4: celebrities in the world, goes out and talks about how 162 00:08:13,640 --> 00:08:16,200 Speaker 4: great Major League Soccer is. You can't pay for that. 163 00:08:16,640 --> 00:08:21,040 Speaker 4: I guess you can, well, interer, Miami's trying to do 164 00:08:21,080 --> 00:08:22,280 Speaker 4: the same thing with Messi. 165 00:08:22,760 --> 00:08:23,640 Speaker 5: So what did they do. 166 00:08:23,680 --> 00:08:25,760 Speaker 4: They gave him ten percent ownership in the team on 167 00:08:25,760 --> 00:08:28,600 Speaker 4: the first contract, more percentage into the team on the 168 00:08:28,640 --> 00:08:31,560 Speaker 4: second contract. They build a new stadium. They name it 169 00:08:31,600 --> 00:08:34,600 Speaker 4: the Linel Messi Stand, where the fans are in the stadium. 170 00:08:35,040 --> 00:08:38,480 Speaker 4: When he stops playing, Messi's brand is still going to 171 00:08:38,520 --> 00:08:40,600 Speaker 4: be attached to Inner Miami because he's going to be 172 00:08:40,640 --> 00:08:43,120 Speaker 4: an owner. And the longer that you can create that 173 00:08:43,200 --> 00:08:46,280 Speaker 4: relationship in the mind of consumers, the longer that this 174 00:08:46,440 --> 00:08:49,880 Speaker 4: is Lionel Messi's Inner Miami, the longer you're going to 175 00:08:49,920 --> 00:08:52,480 Speaker 4: get that Messi effect, the longer you're going to get 176 00:08:52,520 --> 00:08:55,320 Speaker 4: people that buy Inner Miami jerseys because it's linked to Messi, 177 00:08:56,000 --> 00:08:57,960 Speaker 4: players that want to sign because they want to play 178 00:08:57,960 --> 00:09:00,960 Speaker 4: for Messi's team. And so that that's what Interer Miami 179 00:09:01,000 --> 00:09:03,120 Speaker 4: has done. I think it's actually quite brilliant to say. 180 00:09:03,360 --> 00:09:06,160 Speaker 4: And now Messi's bought in, literally twenty percent of the 181 00:09:06,200 --> 00:09:08,679 Speaker 4: team bought in saying I want to grow this brand 182 00:09:08,720 --> 00:09:10,960 Speaker 4: more and it's a really smart business move. 183 00:09:11,240 --> 00:09:14,320 Speaker 6: Do you imagine Messi being in owner the way that 184 00:09:14,440 --> 00:09:16,400 Speaker 6: David Beckham is very forward facing? 185 00:09:16,440 --> 00:09:16,600 Speaker 8: Though? 186 00:09:16,640 --> 00:09:18,400 Speaker 2: Do you imagine that he'll do that after his career 187 00:09:18,480 --> 00:09:18,760 Speaker 2: is over? 188 00:09:19,559 --> 00:09:24,320 Speaker 4: No, you know, Beckham is a different beast. This is 189 00:09:24,360 --> 00:09:27,160 Speaker 4: a marketing machine. I mean, you know you still see 190 00:09:27,240 --> 00:09:30,880 Speaker 4: him in underwear ads and cologne ads and all the 191 00:09:30,920 --> 00:09:34,280 Speaker 4: different things that all the brands that he's touching still 192 00:09:34,679 --> 00:09:36,760 Speaker 4: and he doesn't mind getting in front of a microphone, 193 00:09:36,760 --> 00:09:39,200 Speaker 4: and he never has. When he came to MLS, he 194 00:09:39,240 --> 00:09:41,400 Speaker 4: did a whole day of interviews out on the field 195 00:09:41,400 --> 00:09:43,160 Speaker 4: at home Depot Center, which is what it was called 196 00:09:43,160 --> 00:09:46,079 Speaker 4: at the time. With every national news outlet. Messi has 197 00:09:46,120 --> 00:09:49,680 Speaker 4: given one press conference since he arrived in twenty twenty three. 198 00:09:49,760 --> 00:09:52,439 Speaker 4: He is an introvert. He doesn't like doing media unless 199 00:09:52,480 --> 00:09:54,840 Speaker 4: it's media in Argentina with the people that he trusts 200 00:09:54,840 --> 00:09:56,880 Speaker 4: and likes, or in Spain with the two newspapers he 201 00:09:56,920 --> 00:10:00,680 Speaker 4: deals with. And so I do think that you're gonna 202 00:10:00,720 --> 00:10:02,920 Speaker 4: get less of the salesman, you're gonna get less of 203 00:10:02,960 --> 00:10:05,600 Speaker 4: the guy in front of the microphone. But that hasn't 204 00:10:05,600 --> 00:10:07,559 Speaker 4: mattered for his entire career. I think that's one of 205 00:10:07,640 --> 00:10:10,880 Speaker 4: the most alien things about Messi is that he's so 206 00:10:11,240 --> 00:10:13,760 Speaker 4: good at what he does, he's so good at soccer 207 00:10:14,120 --> 00:10:16,959 Speaker 4: that people follow him even though they get very little 208 00:10:17,000 --> 00:10:19,760 Speaker 4: access to him. And in a world where access matters 209 00:10:19,800 --> 00:10:22,280 Speaker 4: more than ever, where you can follow what athletes are 210 00:10:22,320 --> 00:10:24,920 Speaker 4: doing on Instagram and you can. They're all trying to 211 00:10:24,920 --> 00:10:27,319 Speaker 4: have their own production companies, and they're all Lebron's got 212 00:10:27,360 --> 00:10:29,960 Speaker 4: his shows. Messi does none of that, almost none of it. 213 00:10:30,040 --> 00:10:32,040 Speaker 4: You know, his team puts him in some advertisements, but 214 00:10:32,040 --> 00:10:35,640 Speaker 4: that's about it. And and yet he is one of 215 00:10:35,679 --> 00:10:40,200 Speaker 4: the most brilliantly popular athletes in the world. So will 216 00:10:40,240 --> 00:10:41,800 Speaker 4: that continue after he's done playing? 217 00:10:41,880 --> 00:10:42,320 Speaker 5: I think so. 218 00:10:42,480 --> 00:10:44,920 Speaker 4: I think having the legacy of the greatest of all 219 00:10:44,960 --> 00:10:46,640 Speaker 4: time is going to have a you know it's going 220 00:10:46,679 --> 00:10:51,440 Speaker 4: to last, but it will be interesting to see how 221 00:10:51,559 --> 00:10:54,320 Speaker 4: much he leans in, how much he's present, how much 222 00:10:54,320 --> 00:10:57,480 Speaker 4: he lends his face even sitting in the stadium to 223 00:10:57,559 --> 00:10:58,040 Speaker 4: that part of it. 224 00:10:58,080 --> 00:10:59,760 Speaker 5: And I think that. 225 00:11:00,000 --> 00:11:02,600 Speaker 4: But what's interesting is towards the end of my writing 226 00:11:02,600 --> 00:11:05,360 Speaker 4: this book, actually after I filed the first draft of 227 00:11:05,400 --> 00:11:08,040 Speaker 4: this book, when Messi I got into the book that 228 00:11:08,080 --> 00:11:10,200 Speaker 4: Messi signed the contract extension and he goes down to 229 00:11:10,240 --> 00:11:12,560 Speaker 4: the stadium and he's there with the other owners, hort 230 00:11:12,640 --> 00:11:15,120 Speaker 4: Hi Moss and Jose Moss and David Beckham and their families, 231 00:11:15,720 --> 00:11:17,880 Speaker 4: and the stadium's under construction at the time, and they 232 00:11:17,920 --> 00:11:20,319 Speaker 4: do a video of him signing his extension, and then 233 00:11:20,360 --> 00:11:23,280 Speaker 4: the four owners walk around the stadium with their families. 234 00:11:23,320 --> 00:11:26,520 Speaker 4: Beckham's parents were there, the Moss brothers brought their families 235 00:11:26,520 --> 00:11:29,480 Speaker 4: and Messi's family was there, and I think that's when 236 00:11:29,480 --> 00:11:33,040 Speaker 4: it hit him. I think, like the physical manifestation of 237 00:11:33,080 --> 00:11:36,520 Speaker 4: his ownership, the stadium being built, Like he knew like, 238 00:11:36,600 --> 00:11:38,720 Speaker 4: I'm an owner, I'm not just a player, and that 239 00:11:38,800 --> 00:11:41,480 Speaker 4: had been true since he signed, but to be standing 240 00:11:41,480 --> 00:11:44,280 Speaker 4: in the stadium that you own a part of hits 241 00:11:44,280 --> 00:11:47,440 Speaker 4: home pretty hard. And I think you've seen him since 242 00:11:47,440 --> 00:11:49,960 Speaker 4: then start to maybe exert a little bit more control, 243 00:11:50,000 --> 00:11:52,960 Speaker 4: a little bit more actively within the team right now, 244 00:11:53,320 --> 00:11:55,400 Speaker 4: and I think it's because he enjoys the idea of 245 00:11:55,400 --> 00:11:57,959 Speaker 4: being an owner. So I do think we might see 246 00:11:58,040 --> 00:12:00,920 Speaker 4: him be a little bit more involved than most people 247 00:12:00,920 --> 00:12:03,559 Speaker 4: would guess, just based on the history of how little 248 00:12:03,600 --> 00:12:04,960 Speaker 4: he wants to interact. 249 00:12:05,240 --> 00:12:08,080 Speaker 6: That was senior writer at The Athletic and author Paul Scenario, 250 00:12:08,200 --> 00:12:09,880 Speaker 6: And you know what, there's so much more soccer to 251 00:12:09,920 --> 00:12:13,160 Speaker 6: talk about, more about how Messi's changed the MLS and 252 00:12:13,320 --> 00:12:15,560 Speaker 6: what this World Cup is going to do to boost 253 00:12:15,559 --> 00:12:17,840 Speaker 6: the sport in the US. So stay with us because 254 00:12:17,880 --> 00:12:20,760 Speaker 6: we are going to continue this conversation with Paul Scenario 255 00:12:20,960 --> 00:12:21,800 Speaker 6: up next. 256 00:12:21,679 --> 00:12:24,679 Speaker 5: That is straight ahead on the Bloomberg Business of Sports 257 00:12:24,920 --> 00:12:29,079 Speaker 5: for Vanessa Perdomo, mag leon and Randall Williams. I'm Michael Barr. 258 00:12:29,160 --> 00:12:31,960 Speaker 5: You are listening to the Bloomberg Business of Sports from 259 00:12:32,000 --> 00:12:33,960 Speaker 5: Bloomberg Radio around the world. 260 00:12:37,480 --> 00:12:40,080 Speaker 3: Out here in the middle of all these acres, it 261 00:12:40,120 --> 00:12:42,880 Speaker 3: can feel like you're the only person on earth. And 262 00:12:42,960 --> 00:12:47,320 Speaker 3: sometimes that's how it feels when you're going through tough times, trouble, sleeping, 263 00:12:47,880 --> 00:12:51,360 Speaker 3: your mind racing. So what do we do We get help? 264 00:12:51,920 --> 00:12:54,360 Speaker 3: There are people in our community who are here for us. 265 00:12:54,800 --> 00:12:57,680 Speaker 3: Sometimes just talking to someone can make all the difference 266 00:12:57,720 --> 00:13:00,480 Speaker 3: in the world. Find more information at Love Your Mind 267 00:13:00,480 --> 00:13:04,240 Speaker 3: Today dot org. That's Love Youormind Today dot org. Brought 268 00:13:04,240 --> 00:13:06,760 Speaker 3: to you by the Huntsman Mintwelfth Institute in the Ad Council. 269 00:13:07,880 --> 00:13:12,520 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 270 00:13:13,160 --> 00:13:15,800 Speaker 5: This is the Bloomberg Business of Sports where we explore 271 00:13:15,880 --> 00:13:18,040 Speaker 5: the big money issues in the world of sports. 272 00:13:18,120 --> 00:13:20,800 Speaker 2: I'm Michael Laar, I'm Vanessa Perdomo Maglione, and. 273 00:13:20,800 --> 00:13:24,400 Speaker 5: I'm Randa Williams. We are back talking with Paul Tenorio. 274 00:13:24,600 --> 00:13:27,760 Speaker 5: He is the senior writer at The Athletic and the 275 00:13:27,800 --> 00:13:31,240 Speaker 5: author of The Messy Effect, to talk more about soccer 276 00:13:31,400 --> 00:13:35,440 Speaker 5: in the US as the World Cup is just days away, 277 00:13:35,800 --> 00:13:39,680 Speaker 5: so let's get right back into our conversation with Paul Tenio. 278 00:13:40,320 --> 00:13:42,760 Speaker 7: At some point, when Messi does hang up his cleats, 279 00:13:43,559 --> 00:13:45,960 Speaker 7: do you think we'll have a presence at the ownership level. 280 00:13:46,120 --> 00:13:48,840 Speaker 7: I remember reading about Michael Jordan in the nineties and 281 00:13:48,880 --> 00:13:51,679 Speaker 7: when they were collective bargaining and all these different figures, 282 00:13:51,679 --> 00:13:55,240 Speaker 7: whether it be NFL WNBA recently, where players are standing 283 00:13:55,240 --> 00:13:58,040 Speaker 7: at the podium and having conversations with owners, whether that 284 00:13:58,120 --> 00:14:01,640 Speaker 7: be from the union side or from the ownership level, 285 00:14:01,679 --> 00:14:03,640 Speaker 7: and saying listen, guys, like I understand you guys have 286 00:14:03,679 --> 00:14:05,880 Speaker 7: a lot of money, and I respect your business acumen, 287 00:14:06,080 --> 00:14:07,760 Speaker 7: but at the same time, I played in this league. 288 00:14:07,800 --> 00:14:09,320 Speaker 7: I've made a lot of money in this league, and 289 00:14:09,360 --> 00:14:11,240 Speaker 7: this is what's best for the league. I imagine if 290 00:14:11,280 --> 00:14:14,280 Speaker 7: Messi could have a tremendous impact if he was speaking 291 00:14:14,280 --> 00:14:16,760 Speaker 7: to owners in that way, But it doesn't sound like 292 00:14:16,840 --> 00:14:18,040 Speaker 7: that is going to happen. 293 00:14:18,280 --> 00:14:20,680 Speaker 4: Yeah, I mean, I think the owners should be counting 294 00:14:20,680 --> 00:14:23,160 Speaker 4: their blessings that Messi doesn't like to do media, right, 295 00:14:23,280 --> 00:14:26,200 Speaker 4: because if he just came out now as a player 296 00:14:26,280 --> 00:14:29,640 Speaker 4: and said, hey, this league needs to spend more and 297 00:14:29,720 --> 00:14:31,600 Speaker 4: I have in my book, he says it privately to 298 00:14:31,640 --> 00:14:33,960 Speaker 4: hold him oss. What more can I do? Right, I'm 299 00:14:33,960 --> 00:14:36,760 Speaker 4: feeling I'm doing my job. I'm feeling all these stadiums, 300 00:14:37,040 --> 00:14:39,560 Speaker 4: we're driving revenue into the league that didn't exist before, 301 00:14:40,200 --> 00:14:42,400 Speaker 4: and what are the owners doing with it? 302 00:14:42,520 --> 00:14:42,720 Speaker 8: Right? 303 00:14:43,440 --> 00:14:45,480 Speaker 4: Would it matter if he walked into the boardroom and 304 00:14:45,520 --> 00:14:49,080 Speaker 4: said that, Absolutely? Absolutely it would? And you know, I 305 00:14:49,080 --> 00:14:51,720 Speaker 4: don't know what his role David Beckham's I think gone 306 00:14:51,760 --> 00:14:54,680 Speaker 4: to two board meetings, one recently that I was at, 307 00:14:54,720 --> 00:14:57,280 Speaker 4: and of course it has an impact. You know, those 308 00:14:57,320 --> 00:15:00,760 Speaker 4: owners they like to be around powerful people, and they 309 00:15:00,840 --> 00:15:04,040 Speaker 4: like to be around celebrity athletes. Right, That's why they 310 00:15:04,040 --> 00:15:05,840 Speaker 4: buy teams. They want to feel like they're part of 311 00:15:05,880 --> 00:15:09,160 Speaker 4: the team. Right, And so yeah, when Beckham walks into 312 00:15:09,200 --> 00:15:12,640 Speaker 4: that room, you better believe that he's like a magnet 313 00:15:12,680 --> 00:15:16,240 Speaker 4: and what he says carries weight. And I would hope 314 00:15:16,280 --> 00:15:20,040 Speaker 4: that MESSI leverages that opportunity. And I think, you know, 315 00:15:20,440 --> 00:15:23,640 Speaker 4: it's it's something he should want to do. When you 316 00:15:23,720 --> 00:15:25,440 Speaker 4: own a stake as big as he's going to own 317 00:15:25,480 --> 00:15:28,400 Speaker 4: in the team, you should be saying what's best for 318 00:15:28,440 --> 00:15:30,560 Speaker 4: the business. And who knows the business better than I do? 319 00:15:30,640 --> 00:15:33,960 Speaker 4: I'm the one who played right, But I don't know 320 00:15:34,000 --> 00:15:37,880 Speaker 4: I could see him, you know, maybe communicating through the 321 00:15:37,920 --> 00:15:41,640 Speaker 4: Moss brothers. But I do think it's important when we 322 00:15:41,680 --> 00:15:44,920 Speaker 4: talk about dynamics of boardrooms. I mean, personalities are very 323 00:15:44,920 --> 00:15:47,840 Speaker 4: different in there. You know that Phil Anshoults is not 324 00:15:47,960 --> 00:15:50,120 Speaker 4: going to approach a meeting the same way jrde Mastas. 325 00:15:50,320 --> 00:15:53,320 Speaker 4: You know, he's a much bigger personality mosses. And but 326 00:15:53,400 --> 00:15:56,120 Speaker 4: when Phil Answers shows up, you know it's important. How 327 00:15:56,160 --> 00:15:59,920 Speaker 4: do those owners interact gets you to the votes. It's 328 00:16:00,040 --> 00:16:02,440 Speaker 4: almost like you're in Congress and you have to whip 329 00:16:02,560 --> 00:16:05,080 Speaker 4: votes up right. You've got to create a coalition and 330 00:16:05,160 --> 00:16:08,200 Speaker 4: start to build consensus. And I think that's where people 331 00:16:08,240 --> 00:16:11,080 Speaker 4: like David Beckham and Messi can be really important. Because 332 00:16:11,120 --> 00:16:12,760 Speaker 4: if you're an owner and Messi sits down with you 333 00:16:12,800 --> 00:16:14,280 Speaker 4: to have a coffee and says that why don't you 334 00:16:14,280 --> 00:16:16,760 Speaker 4: come vote with me, I think he's got a good 335 00:16:16,840 --> 00:16:18,720 Speaker 4: chance to bring some votes over to their side of 336 00:16:18,760 --> 00:16:22,840 Speaker 4: the table. Hopefully MLS makes these roster rule changes before 337 00:16:22,880 --> 00:16:25,680 Speaker 4: Messi has retired from the league. To your point of like, 338 00:16:26,040 --> 00:16:28,920 Speaker 4: how do you get some of this bounce from the 339 00:16:28,920 --> 00:16:31,000 Speaker 4: World Cup? How do you bring more players. You got 340 00:16:31,040 --> 00:16:33,400 Speaker 4: to give the owners the freedom and flexibility to spend 341 00:16:33,400 --> 00:16:35,880 Speaker 4: the money to bring them. And Messi's going to play 342 00:16:35,880 --> 00:16:37,560 Speaker 4: in this World Cup. Maybe he's going to win too 343 00:16:37,600 --> 00:16:40,520 Speaker 4: in a row. Maybe he'll pass Mondona as you know, 344 00:16:40,560 --> 00:16:43,080 Speaker 4: bringing multiple World Cup titles to Argentina in his time. 345 00:16:43,880 --> 00:16:46,840 Speaker 4: Don't you want to take that and bring more players 346 00:16:46,920 --> 00:16:49,600 Speaker 4: to play while people are watching MESSI? I think that's 347 00:16:49,640 --> 00:16:52,040 Speaker 4: really important. We'll see if the league can get there. 348 00:16:52,880 --> 00:16:54,720 Speaker 4: You know, obviously in my book, I kind of lay 349 00:16:54,760 --> 00:16:56,200 Speaker 4: it out there to say this is the last step 350 00:16:56,240 --> 00:16:58,920 Speaker 4: needed and for the athletic I'll keep to covering every 351 00:16:58,960 --> 00:17:02,360 Speaker 4: single meeting and trying to see what these conversations are. 352 00:17:02,400 --> 00:17:05,479 Speaker 4: But the reality is there's a CBA negotiation coming up 353 00:17:05,520 --> 00:17:08,879 Speaker 4: to Don Garber is going to be out as the commissioner. 354 00:17:08,880 --> 00:17:11,480 Speaker 4: A new commissioner is going to come in. Getting that 355 00:17:11,560 --> 00:17:15,280 Speaker 4: decision right is critical. I mean, Garber's done an incredible 356 00:17:15,320 --> 00:17:18,600 Speaker 4: job building the infrastructure of MLS, bringing in expansion owners 357 00:17:18,600 --> 00:17:22,199 Speaker 4: and focusing the money on stadiums and training grounds. But 358 00:17:22,280 --> 00:17:24,239 Speaker 4: the next commissioner has to come in and know how 359 00:17:24,280 --> 00:17:26,320 Speaker 4: to get a big media rights deal and how to 360 00:17:26,359 --> 00:17:29,280 Speaker 4: move the product forward, how to move the soccer forward 361 00:17:29,560 --> 00:17:32,200 Speaker 4: so that people say it's worth watching this the same 362 00:17:32,200 --> 00:17:34,479 Speaker 4: way it's worth waking up on a Saturday morning and 363 00:17:34,520 --> 00:17:36,480 Speaker 4: going to the local pub and jeering for Arsenal or 364 00:17:36,480 --> 00:17:41,080 Speaker 4: Liverpool and Manchester United whoever. And so that's why I 365 00:17:41,080 --> 00:17:43,560 Speaker 4: think the next two years coming out of the World 366 00:17:43,640 --> 00:17:46,920 Speaker 4: Cup are going to say a lot about what MLS's 367 00:17:46,960 --> 00:17:47,679 Speaker 4: future looks like. 368 00:17:48,080 --> 00:17:50,040 Speaker 6: I think the interesting thing is that you wrote an 369 00:17:50,119 --> 00:17:54,359 Speaker 6: article recently about how this team has a completely different 370 00:17:54,440 --> 00:17:56,360 Speaker 6: job than the ninety four team did. Right the ninety 371 00:17:56,400 --> 00:17:58,560 Speaker 6: four team came in and they established the MLS and 372 00:17:58,600 --> 00:18:01,919 Speaker 6: they kind of introduced soccer to you know, to the US. 373 00:18:02,200 --> 00:18:04,480 Speaker 6: But I love that you said you compared it actually 374 00:18:04,520 --> 00:18:06,200 Speaker 6: to the ninety nine ers and what they were able 375 00:18:06,240 --> 00:18:09,440 Speaker 6: to do and how they made the US believe in soccer. 376 00:18:10,000 --> 00:18:13,199 Speaker 6: What is the job of this twenty six team. You know, 377 00:18:13,280 --> 00:18:15,960 Speaker 6: obviously if they don't win, how far do they need 378 00:18:16,000 --> 00:18:18,399 Speaker 6: to get to? And like Randall was saying, I mean 379 00:18:18,440 --> 00:18:20,000 Speaker 6: not a lot of them play in the MLS, So 380 00:18:20,119 --> 00:18:24,360 Speaker 6: how does them having success then translate to the US 381 00:18:24,480 --> 00:18:25,159 Speaker 6: soccer market. 382 00:18:25,680 --> 00:18:28,120 Speaker 4: The further this team goes in the tournament, the more 383 00:18:28,200 --> 00:18:30,760 Speaker 4: it's going to kind of galvanize the country around them 384 00:18:30,800 --> 00:18:33,560 Speaker 4: right the way. And that's where ninety nine was so crucial. 385 00:18:33,640 --> 00:18:37,280 Speaker 4: Right a sold out Rose Bowl, Brandy Chastain scoring the penalty, 386 00:18:37,359 --> 00:18:40,280 Speaker 4: ripping off her shirt. Everyone was watching that game. 387 00:18:40,400 --> 00:18:42,480 Speaker 2: It was the greatest moment and it was incredible. 388 00:18:42,520 --> 00:18:46,040 Speaker 4: It was incredible, and it changed the way people thought 389 00:18:46,080 --> 00:18:49,639 Speaker 4: about soccer in this country, not just with youth participation 390 00:18:49,760 --> 00:18:51,600 Speaker 4: but in general, like, oh, we can have a really 391 00:18:51,600 --> 00:18:53,959 Speaker 4: good soccer team, right, and then the men have not 392 00:18:54,000 --> 00:18:56,160 Speaker 4: been able to kind of carry that legacy. They haven't 393 00:18:56,160 --> 00:18:57,840 Speaker 4: been able to do what the women have done and 394 00:18:57,880 --> 00:19:00,959 Speaker 4: that's been consistent. So the further the team goes, the 395 00:19:00,960 --> 00:19:04,159 Speaker 4: more they can start to change minds about men's soccer 396 00:19:04,160 --> 00:19:07,720 Speaker 4: in this country. And then after that, the onus goes 397 00:19:07,760 --> 00:19:10,359 Speaker 4: back to Major League Soccer. Okay, if you are able 398 00:19:10,400 --> 00:19:13,360 Speaker 4: to make a run, how do you now change your 399 00:19:13,359 --> 00:19:15,760 Speaker 4: business so that your product lives up to what the 400 00:19:16,000 --> 00:19:19,560 Speaker 4: people just watched the World Cup? Because those players are 401 00:19:19,880 --> 00:19:22,200 Speaker 4: when they play well, they have a high quality level. 402 00:19:22,200 --> 00:19:24,359 Speaker 4: But you're gonna see a difference when you turn on 403 00:19:24,400 --> 00:19:26,320 Speaker 4: an MLS game versus what you just watch at the 404 00:19:26,320 --> 00:19:31,000 Speaker 4: World Cup. They have to close that gap. I call 405 00:19:31,040 --> 00:19:34,879 Speaker 4: it the perception gap. You have the actual quality gap, 406 00:19:35,160 --> 00:19:38,399 Speaker 4: which is solved by money. Pour more money into the product. 407 00:19:38,440 --> 00:19:40,600 Speaker 4: You can close that quality gap, but you have to 408 00:19:40,600 --> 00:19:43,640 Speaker 4: close the perception gap too. Kind of casual sports fans 409 00:19:43,640 --> 00:19:45,800 Speaker 4: to say, man, MLS not real pro soccer, It's not 410 00:19:45,840 --> 00:19:47,320 Speaker 4: at the same level. I'm not going to pay attention 411 00:19:47,359 --> 00:19:49,960 Speaker 4: to it. Diehard soccer fans statement MLS is not the 412 00:19:49,960 --> 00:19:53,680 Speaker 4: premier league I'd rather wake up on a Saturday morning. Okay, Well, 413 00:19:53,800 --> 00:19:56,560 Speaker 4: MLS is actually better than most casual fans think it is, 414 00:19:57,000 --> 00:19:59,720 Speaker 4: but it's right on where those diehard soccer fans think 415 00:19:59,760 --> 00:20:02,000 Speaker 4: it is. So how do you close that gap of 416 00:20:02,040 --> 00:20:04,240 Speaker 4: the casual sports fan to say this league is actually 417 00:20:04,280 --> 00:20:06,959 Speaker 4: better than you realize. Well, you do it by bringing 418 00:20:06,960 --> 00:20:10,920 Speaker 4: more quality in. You do it by creating momentum. And 419 00:20:11,200 --> 00:20:12,159 Speaker 4: the national team is the. 420 00:20:12,160 --> 00:20:12,640 Speaker 5: Start of that. 421 00:20:12,680 --> 00:20:15,560 Speaker 4: The national team can create momentum where people say, all right, 422 00:20:15,600 --> 00:20:17,600 Speaker 4: I want to watch soccer. I want to watch soccer. 423 00:20:17,680 --> 00:20:20,040 Speaker 4: MLS has to take that and carry that momentum forward 424 00:20:20,320 --> 00:20:22,879 Speaker 4: and put a better product on the field. It's really 425 00:20:24,000 --> 00:20:26,920 Speaker 4: I get frustrated sometimes covering this league. You can feel 426 00:20:26,960 --> 00:20:28,720 Speaker 4: it when I write my columns on the athletic I'm like, 427 00:20:29,480 --> 00:20:31,639 Speaker 4: it's not a hard man. People want to watch the 428 00:20:31,680 --> 00:20:34,320 Speaker 4: best product that they can get. Put a better product 429 00:20:34,359 --> 00:20:37,000 Speaker 4: on the field and more people will watch it. And 430 00:20:37,320 --> 00:20:40,320 Speaker 4: that's what MLS has to do to and I think, 431 00:20:40,960 --> 00:20:43,399 Speaker 4: but I do think there's a huge responsibility on the 432 00:20:43,440 --> 00:20:47,320 Speaker 4: shoulders of this national team to build belief. That's not 433 00:20:47,520 --> 00:20:49,880 Speaker 4: easy to do. You got to go win, you got 434 00:20:49,880 --> 00:20:53,560 Speaker 4: to beat some big teams. You got to have iconic moments. 435 00:20:53,920 --> 00:20:56,679 Speaker 4: That's what we all love as sports fans. You know, 436 00:20:56,720 --> 00:20:59,360 Speaker 4: we can pick out games that we watched in whatever 437 00:20:59,480 --> 00:21:02,680 Speaker 4: sport and remember those moments that stick with us. Maybe 438 00:21:02,760 --> 00:21:05,640 Speaker 4: it's a big national moment, like Brandy Chastain. The other day, 439 00:21:05,640 --> 00:21:07,760 Speaker 4: I was telling the story my colleagues. We went to 440 00:21:07,840 --> 00:21:09,359 Speaker 4: DC for a meetup planning. 441 00:21:09,119 --> 00:21:09,600 Speaker 5: The World Cup. 442 00:21:09,640 --> 00:21:12,159 Speaker 4: My uncle was there and we're talking about going to 443 00:21:12,320 --> 00:21:14,600 Speaker 4: an NFL game in DC at RFK Stadium, and I 444 00:21:14,640 --> 00:21:17,159 Speaker 4: watched from behind the end zone. Darryl Green intercepted the 445 00:21:17,200 --> 00:21:19,960 Speaker 4: Scott Mitchell pass, return it for a touchdown and overtime 446 00:21:20,000 --> 00:21:23,320 Speaker 4: they won. I can remember the whites on Darryl Green's 447 00:21:23,320 --> 00:21:25,359 Speaker 4: eyes getting big as he caught the interception. That's how 448 00:21:25,359 --> 00:21:28,000 Speaker 4: close I was, and it stuck with me. That's sports. 449 00:21:28,760 --> 00:21:32,800 Speaker 4: Can MLS start to create those moments that actually resonate 450 00:21:32,800 --> 00:21:34,600 Speaker 4: with people they're not yet. 451 00:21:34,800 --> 00:21:37,720 Speaker 6: The biggest criticism with that and bringing in more talent. 452 00:21:37,760 --> 00:21:39,240 Speaker 6: It's kind of what you were saying to before, is 453 00:21:39,280 --> 00:21:41,680 Speaker 6: that they have to just be able to get more 454 00:21:41,720 --> 00:21:44,600 Speaker 6: players in because people say, yes, well, Messi's here, Dan 455 00:21:44,640 --> 00:21:47,359 Speaker 6: Beckham came. They all came towards the end of their career. 456 00:21:47,600 --> 00:21:52,040 Speaker 6: So getting bigger stars in their prime is the answer 457 00:21:52,119 --> 00:21:55,399 Speaker 6: to that. Like you were saying, it's just changing the rules. 458 00:21:55,480 --> 00:21:56,199 Speaker 8: I think so. 459 00:21:56,240 --> 00:21:57,960 Speaker 4: And I think part of it is also this tension 460 00:21:58,000 --> 00:22:01,120 Speaker 4: in this idea around competitive balance, which is based off 461 00:22:01,160 --> 00:22:03,560 Speaker 4: of the NFL model, which is not a surprise because 462 00:22:03,600 --> 00:22:05,879 Speaker 4: the founding owners of MLS are the Craft family and 463 00:22:05,920 --> 00:22:09,240 Speaker 4: the Hunt family, and they are NFL families and they 464 00:22:09,320 --> 00:22:12,600 Speaker 4: and competitive balance has mattered to the NFL. But that's 465 00:22:12,680 --> 00:22:15,320 Speaker 4: not the only way to do things. You know, the 466 00:22:15,440 --> 00:22:18,159 Speaker 4: NBA has a lot of fans. It's competitive balance is 467 00:22:18,200 --> 00:22:21,280 Speaker 4: not the same as the NFL. People still watch the playoffs, 468 00:22:21,880 --> 00:22:25,359 Speaker 4: you know, and and so baseball the same thing. You know, 469 00:22:25,400 --> 00:22:28,600 Speaker 4: people like to root against or for the Yankees and 470 00:22:28,600 --> 00:22:31,200 Speaker 4: it's okay to have a big team that everyone loves 471 00:22:31,280 --> 00:22:35,159 Speaker 4: or everyone hates. When the Warriors were a dynasty, people 472 00:22:35,160 --> 00:22:35,679 Speaker 4: were watching. 473 00:22:35,720 --> 00:22:37,560 Speaker 5: It's the Thunder right now, yeah, or the Thunder. 474 00:22:37,680 --> 00:22:39,359 Speaker 4: You can root form, you can root against them, but 475 00:22:39,440 --> 00:22:42,679 Speaker 4: people are watching. That's what matters. And so you know, 476 00:22:42,720 --> 00:22:45,720 Speaker 4: you have to let go of some idea of competitive balance. 477 00:22:45,520 --> 00:22:46,920 Speaker 5: But it's not mutually exclusive. 478 00:22:47,040 --> 00:22:49,240 Speaker 4: Just because you're spending more money doesn't mean all of 479 00:22:49,280 --> 00:22:53,600 Speaker 4: competitive balance goes away. MLS's ownership group thirty owners are 480 00:22:53,880 --> 00:22:58,399 Speaker 4: some of the richest owners in sports. So yeah, maybe 481 00:22:58,440 --> 00:23:00,720 Speaker 4: Salt Lake is not going to compete in the same 482 00:23:00,760 --> 00:23:03,879 Speaker 4: way as LA, but that's true today. That doesn't change 483 00:23:03,880 --> 00:23:05,160 Speaker 4: because more money is being spent. 484 00:23:05,440 --> 00:23:08,080 Speaker 7: I would also say sometimes it's better to have a titan, 485 00:23:08,359 --> 00:23:11,639 Speaker 7: and whether that be from a storytelling perspective, like you 486 00:23:11,680 --> 00:23:13,960 Speaker 7: look at the dynasties and the people who knock them off, 487 00:23:14,000 --> 00:23:16,080 Speaker 7: it often becomes as you said, some of the biggest 488 00:23:16,080 --> 00:23:18,760 Speaker 7: stories in sports is like when someone has gone to 489 00:23:18,760 --> 00:23:21,760 Speaker 7: the finals or the Super Bowl. I mean my comparison 490 00:23:21,880 --> 00:23:23,400 Speaker 7: to be the Patriots went to the Super Bowl five 491 00:23:23,400 --> 00:23:24,000 Speaker 7: times in a row. 492 00:23:24,040 --> 00:23:24,960 Speaker 5: It felt like and. 493 00:23:24,960 --> 00:23:27,479 Speaker 7: Even and when they were losing, I was rooting for that, 494 00:23:27,520 --> 00:23:29,840 Speaker 7: but then when they were winning, it was agonizing. And 495 00:23:29,880 --> 00:23:32,080 Speaker 7: I think when you have that emotional connection, it really 496 00:23:32,119 --> 00:23:33,560 Speaker 7: really matters for fans in sports. 497 00:23:33,640 --> 00:23:36,000 Speaker 4: Heymn And that's the argument that some of these owners 498 00:23:36,000 --> 00:23:38,359 Speaker 4: are making in the board meetings right now that it 499 00:23:38,440 --> 00:23:43,199 Speaker 4: is okay to have these sort of powerhouse teams Bayern 500 00:23:43,280 --> 00:23:47,000 Speaker 4: Munich in Germany, Manchester United in England. You can go 501 00:23:47,080 --> 00:23:50,720 Speaker 4: around and look at the you know, the Yankees, the 502 00:23:50,760 --> 00:23:54,119 Speaker 4: Dodgers like these. We talk about these teams in a 503 00:23:54,160 --> 00:23:58,400 Speaker 4: way because they were those dominant teams, but it is storytelling. 504 00:23:58,440 --> 00:24:01,160 Speaker 4: Sports is the best reality the television we can get, 505 00:24:01,640 --> 00:24:04,760 Speaker 4: and we like to root for the giant and against 506 00:24:04,800 --> 00:24:07,600 Speaker 4: the Giant, and you can again you can get people 507 00:24:07,640 --> 00:24:10,480 Speaker 4: to care. And that's where I think MLS has to 508 00:24:10,520 --> 00:24:13,480 Speaker 4: understand that going from a local product to a national 509 00:24:13,480 --> 00:24:16,840 Speaker 4: product is Yes, I understand the equation of it's hard 510 00:24:16,840 --> 00:24:19,160 Speaker 4: to fill seats in the stadium if you don't think 511 00:24:19,200 --> 00:24:20,040 Speaker 4: your team's gonna win. 512 00:24:20,640 --> 00:24:23,120 Speaker 5: That's true, but it's harder to get people to. 513 00:24:23,080 --> 00:24:25,760 Speaker 4: Tune in to watch if you don't have an interesting 514 00:24:25,800 --> 00:24:29,160 Speaker 4: story to tell. And every year the story's changed. In MLS, 515 00:24:29,200 --> 00:24:32,960 Speaker 4: there's no consistency. There's no team that we see grow 516 00:24:33,359 --> 00:24:36,159 Speaker 4: together into a dynasty and then fall apart. You know, 517 00:24:36,240 --> 00:24:38,720 Speaker 4: they're so intent on competitive balance, and the cap is 518 00:24:38,760 --> 00:24:41,840 Speaker 4: so restrictive that these teams fall apart from year to year, 519 00:24:42,440 --> 00:24:45,159 Speaker 4: and that's hard to follow for a casual fan. So, 520 00:24:45,760 --> 00:24:48,480 Speaker 4: you know, what kind of story can MLS start to 521 00:24:48,520 --> 00:24:51,840 Speaker 4: tell from the macro level about its own growth and 522 00:24:51,880 --> 00:24:53,919 Speaker 4: then in the micro level season to season, can they 523 00:24:54,000 --> 00:24:56,680 Speaker 4: start to have some teams that people learn to root 524 00:24:56,720 --> 00:24:59,520 Speaker 4: for or root against that start to actually resonate globally 525 00:24:59,600 --> 00:25:02,919 Speaker 4: or nash That's a big part of the future of 526 00:25:02,960 --> 00:25:03,560 Speaker 4: this league. 527 00:25:03,960 --> 00:25:08,000 Speaker 5: Paul Tenurio, senior writer for The Athletic and author of 528 00:25:08,040 --> 00:25:11,960 Speaker 5: The Messy Effect. The book comes out June second. Thank 529 00:25:12,000 --> 00:25:14,119 Speaker 5: you so much, ma Man for coming in and talking 530 00:25:14,160 --> 00:25:16,760 Speaker 5: with us on the Bloomberg business of sports. We appreciate it. Oh, 531 00:25:16,760 --> 00:25:17,359 Speaker 5: it's a pleasure. 532 00:25:17,359 --> 00:25:19,560 Speaker 6: Thank you so much for having me our thanks to 533 00:25:19,560 --> 00:25:22,800 Speaker 6: Paul Tenio, senior writer at The Athletic and author of 534 00:25:22,840 --> 00:25:23,680 Speaker 6: The Messy Effect. 535 00:25:24,000 --> 00:25:27,119 Speaker 7: Up next, we are talking about the fastest race on 536 00:25:27,160 --> 00:25:30,080 Speaker 7: the water Sale GP as they bring their boats into 537 00:25:30,080 --> 00:25:31,160 Speaker 7: New York City this week. 538 00:25:31,480 --> 00:25:34,280 Speaker 5: That is straight ahead on the Bloomberg Business of Sports 539 00:25:34,560 --> 00:25:38,439 Speaker 5: Michael Barr with Vanessa Pernobo Maglione and Randall Williams. You 540 00:25:38,600 --> 00:25:41,480 Speaker 5: are listening to the Bloomberg Business of Sports from Bloomberg 541 00:25:41,600 --> 00:25:42,919 Speaker 5: Radio around the world. 542 00:25:45,920 --> 00:25:48,760 Speaker 6: Everything I have I owe to the Adult Lyriacy Center 543 00:25:48,840 --> 00:25:51,440 Speaker 6: and getting my high school diploma at age twenty two. 544 00:25:51,680 --> 00:25:54,920 Speaker 1: Find free and supportive adult education centers near you at 545 00:25:54,920 --> 00:25:56,520 Speaker 1: Finish Yourdiploma dot Org. 546 00:25:56,680 --> 00:25:59,560 Speaker 2: Brought to you by Dollar General Literacy Foundation and the 547 00:25:59,600 --> 00:25:59,919 Speaker 2: ad CAN. 548 00:26:01,800 --> 00:26:05,800 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 549 00:26:06,960 --> 00:26:09,679 Speaker 5: Thank you for joining us on the Bloomberg Business of Sports, 550 00:26:09,720 --> 00:26:12,080 Speaker 5: where we explored the big money issues in the world 551 00:26:12,119 --> 00:26:12,640 Speaker 5: of sports. 552 00:26:12,720 --> 00:26:15,600 Speaker 2: I'm Michael Barr, I'm Vinnessa Perdomo Magleon, and. 553 00:26:15,560 --> 00:26:18,679 Speaker 5: I'm Randa Williams. New York City. You've heard of that place. 554 00:26:18,800 --> 00:26:22,320 Speaker 5: It's the place to be for sports this summer. We 555 00:26:22,400 --> 00:26:25,320 Speaker 5: know that Knicks are in the finals for the first 556 00:26:25,320 --> 00:26:29,119 Speaker 5: time since nineteen ninety nine. The World Cup is coming 557 00:26:29,160 --> 00:26:32,639 Speaker 5: in just a few weeks, and this weekend coming into 558 00:26:32,840 --> 00:26:35,200 Speaker 5: the New York Harbor is sale GP. 559 00:26:35,800 --> 00:26:39,359 Speaker 7: Vanessa, you recently spoke with sale GP managing director Andrew 560 00:26:39,440 --> 00:26:41,000 Speaker 7: Thompson ahead of the race this week. 561 00:26:41,560 --> 00:26:41,960 Speaker 2: That's right. 562 00:26:42,000 --> 00:26:44,240 Speaker 6: I spoke to him about how in just six years 563 00:26:44,280 --> 00:26:47,199 Speaker 6: they've grown their business to now thirteen teams soon to 564 00:26:47,240 --> 00:26:50,560 Speaker 6: be fourteen according to co founder Sir Russell Coots, and 565 00:26:50,600 --> 00:26:53,160 Speaker 6: how they're adding new races and what markets they're looking 566 00:26:53,160 --> 00:26:53,560 Speaker 6: to enter. 567 00:26:53,880 --> 00:26:56,960 Speaker 5: Let's take a listen to Vanessa's conversation with sale GP 568 00:26:57,160 --> 00:26:59,000 Speaker 5: managing director Andrew Thompson. 569 00:26:59,560 --> 00:27:00,520 Speaker 2: So this is now. 570 00:27:00,720 --> 00:27:02,159 Speaker 6: You know, this race has been on the schedule for 571 00:27:02,200 --> 00:27:04,399 Speaker 6: a little bit. Now, how is this year going to 572 00:27:04,400 --> 00:27:05,800 Speaker 6: be different than others? 573 00:27:06,240 --> 00:27:08,639 Speaker 9: Yeah, look, it's been great to come back to New 574 00:27:08,720 --> 00:27:11,000 Speaker 9: York City, you know, coming back here. 575 00:27:12,000 --> 00:27:13,840 Speaker 8: You know the city is on fire with sports at 576 00:27:13,840 --> 00:27:14,240 Speaker 8: the moment. 577 00:27:14,320 --> 00:27:16,919 Speaker 9: The Knicks are just having or seems to be an 578 00:27:16,960 --> 00:27:19,400 Speaker 9: awesome season, and you know they'll be in the finals soon. 579 00:27:19,480 --> 00:27:24,399 Speaker 9: So yeah, look, I think we're looking to bring the 580 00:27:24,440 --> 00:27:27,680 Speaker 9: show back to Governor's Islands. So you know, our hospitality 581 00:27:27,720 --> 00:27:29,280 Speaker 9: facilities all on Governor's Island. 582 00:27:29,480 --> 00:27:33,359 Speaker 8: A difference this year is that Aspectator facilities are. 583 00:27:33,240 --> 00:27:37,440 Speaker 9: Actually on boats, So we've kind of rented a fleet 584 00:27:37,600 --> 00:27:40,200 Speaker 9: of I believe it's fifteen pretty big boats they can 585 00:27:40,240 --> 00:27:42,679 Speaker 9: be lining the race course. So that's going to be 586 00:27:42,720 --> 00:27:47,640 Speaker 9: quite quite the spectacle on the on the bay out 587 00:27:47,680 --> 00:27:49,880 Speaker 9: there and in front of the Statue Liberty, and it's 588 00:27:49,920 --> 00:27:52,880 Speaker 9: going to be a huge expectacle to see all these 589 00:27:52,880 --> 00:27:56,879 Speaker 9: boats lining the race course. But then also, you know, 590 00:27:56,920 --> 00:28:03,040 Speaker 9: we'll have twelve boats out there and this year this 591 00:28:03,160 --> 00:28:05,320 Speaker 9: wasn't planned as such, but there's going to be a 592 00:28:05,359 --> 00:28:08,040 Speaker 9: really strong breeze that's coming through over the weekend, so 593 00:28:08,480 --> 00:28:11,320 Speaker 9: these boats are going to be absolutely ripping through the 594 00:28:11,400 --> 00:28:14,960 Speaker 9: harbor approximately sixty miles per hour, So there's going to 595 00:28:14,960 --> 00:28:17,880 Speaker 9: be a lot of action for the fans to watch 596 00:28:17,960 --> 00:28:19,960 Speaker 9: right in front of them, right in front of them 597 00:28:19,960 --> 00:28:20,879 Speaker 9: on the on the boat. 598 00:28:20,960 --> 00:28:22,440 Speaker 8: So yeah, it's going to be quite the spectacle. 599 00:28:22,640 --> 00:28:24,200 Speaker 6: And this is the first year you guys are doing 600 00:28:24,200 --> 00:28:27,120 Speaker 6: the boats as the grandsons, right tell me about the decision, 601 00:28:27,520 --> 00:28:28,480 Speaker 6: you know to change that. 602 00:28:28,800 --> 00:28:32,960 Speaker 9: Yeah, look, look, I think our racing is our product 603 00:28:33,040 --> 00:28:35,560 Speaker 9: is stadium racing. It's kind of what we've what we've 604 00:28:35,600 --> 00:28:37,919 Speaker 9: set out to do with sale GP, And what I 605 00:28:37,960 --> 00:28:41,520 Speaker 9: mean by stadium racing is bringing the racing close to 606 00:28:41,560 --> 00:28:46,160 Speaker 9: shore so spectators can sit in grandstand or hospitality facilities 607 00:28:46,360 --> 00:28:48,600 Speaker 9: and see the boats in front of it literally kind 608 00:28:48,600 --> 00:28:52,360 Speaker 9: of five meters away and the whole race confolds in 609 00:28:52,360 --> 00:28:55,440 Speaker 9: front of the spotatoes on the shoreline, and that's something 610 00:28:55,480 --> 00:28:58,320 Speaker 9: that's never really been done in the sport of sailing before, 611 00:28:58,400 --> 00:29:01,560 Speaker 9: and so that's, you know, it's new concept for the sport. 612 00:29:01,760 --> 00:29:04,959 Speaker 8: And what we found last year in Governor's Island. 613 00:29:05,440 --> 00:29:10,960 Speaker 9: We built our stadium facilities there, and to be honest, 614 00:29:11,320 --> 00:29:15,240 Speaker 9: it was quite a logistical challenge to get spectators out 615 00:29:15,320 --> 00:29:18,160 Speaker 9: to Governor's Island, in the sense of they had to 616 00:29:18,560 --> 00:29:21,480 Speaker 9: board a boat in Manhattan, the boat got them over 617 00:29:21,560 --> 00:29:24,120 Speaker 9: to Governor's Ireland and they had to walk through Governors 618 00:29:24,120 --> 00:29:27,080 Speaker 9: Ireland to the tip of Governor's Island to get to 619 00:29:27,160 --> 00:29:30,160 Speaker 9: those facilities. And we kind of thought that that we 620 00:29:30,320 --> 00:29:34,240 Speaker 9: kind of reviewed that and our viewers. Actually people are 621 00:29:34,280 --> 00:29:37,120 Speaker 9: getting on boats anyway, so you know, we can actually 622 00:29:37,200 --> 00:29:40,760 Speaker 9: provide a really good experience for people to observe the 623 00:29:40,840 --> 00:29:43,200 Speaker 9: race and probably as close as they would be from 624 00:29:43,200 --> 00:29:45,040 Speaker 9: the shore in any case, and you know, they'll have 625 00:29:45,080 --> 00:29:47,600 Speaker 9: the commentary, they'll have the broadcast on those boats, they'll 626 00:29:47,640 --> 00:29:50,200 Speaker 9: have F and B on those boats. So you know, 627 00:29:50,520 --> 00:29:52,840 Speaker 9: we took a view that actually, that's probably a better 628 00:29:52,920 --> 00:29:55,880 Speaker 9: experience for our funds here, and so yeah, we took 629 00:29:55,880 --> 00:29:58,280 Speaker 9: that decision, and yeah, we expect the funds are going 630 00:29:58,320 --> 00:29:59,200 Speaker 9: to have an awesome time. 631 00:29:59,320 --> 00:30:01,120 Speaker 6: I think it's really interesting to be able to pivot 632 00:30:01,200 --> 00:30:03,960 Speaker 6: that quickly. You know, tell me about how you guys 633 00:30:04,080 --> 00:30:06,560 Speaker 6: use strategy and how you talk to the fans. You know, 634 00:30:06,760 --> 00:30:08,760 Speaker 6: how quickly you guys can pivot from things like that. 635 00:30:08,960 --> 00:30:12,440 Speaker 9: Yeah, it's definitely something that we've focused on in the 636 00:30:12,480 --> 00:30:18,080 Speaker 9: last twelve months because we've matured as a sports property. Really, 637 00:30:18,120 --> 00:30:21,080 Speaker 9: we're looking at how we can enter into long term 638 00:30:21,120 --> 00:30:23,880 Speaker 9: deals with venues so that we have certainty about what's 639 00:30:23,920 --> 00:30:27,280 Speaker 9: going to happen next year. And our goal really is 640 00:30:27,320 --> 00:30:31,000 Speaker 9: to have venue deals that run five ten years so 641 00:30:31,040 --> 00:30:35,080 Speaker 9: that we can improve year on year. Really, what we're 642 00:30:35,120 --> 00:30:37,680 Speaker 9: looking to do is, as soon as the event finishes, 643 00:30:37,720 --> 00:30:40,880 Speaker 9: we get feedback straight away from fans, whether that's on site, 644 00:30:40,920 --> 00:30:44,360 Speaker 9: but then fans will fill in online forms and kind 645 00:30:44,360 --> 00:30:47,440 Speaker 9: of really tell us what they'd like to see improved. 646 00:30:47,560 --> 00:30:50,040 Speaker 9: We review that as a management team right the way 647 00:30:50,080 --> 00:30:53,320 Speaker 9: to senior leadership in that Sir Russell Coots and all 648 00:30:53,360 --> 00:30:56,920 Speaker 9: of our management team are really reviewing all that feedback, 649 00:30:56,960 --> 00:30:59,360 Speaker 9: and then we work with our events team to then 650 00:30:59,400 --> 00:31:01,880 Speaker 9: come up with the concept for the next year and 651 00:31:02,200 --> 00:31:05,120 Speaker 9: really look at those improvements year on year that we 652 00:31:05,160 --> 00:31:08,080 Speaker 9: can make, and also to make the event more efficient, 653 00:31:08,200 --> 00:31:11,920 Speaker 9: make it run kind of on a better cost basis. 654 00:31:11,960 --> 00:31:15,200 Speaker 9: For us, that's something that you know, we want to 655 00:31:15,200 --> 00:31:16,960 Speaker 9: make sure that we focus on too, is how can 656 00:31:17,000 --> 00:31:20,040 Speaker 9: we be more slip with our operations. So there's kind 657 00:31:20,040 --> 00:31:22,560 Speaker 9: of internal review external of you bring the two together, 658 00:31:22,840 --> 00:31:27,000 Speaker 9: but pretty shortly thereafter we put the event concept together 659 00:31:27,040 --> 00:31:29,720 Speaker 9: and it's kind of a twelve month cycle. Straight away 660 00:31:29,800 --> 00:31:32,040 Speaker 9: we're into the planning of the event for the next year, 661 00:31:32,080 --> 00:31:33,720 Speaker 9: we're in for procurement of the event for. 662 00:31:33,840 --> 00:31:36,840 Speaker 8: Next year, and really what we want to aim to. 663 00:31:36,800 --> 00:31:39,640 Speaker 9: Do is actually put tickets on sale on the Sunday 664 00:31:39,720 --> 00:31:41,760 Speaker 9: night of the event for the next year, so if 665 00:31:41,800 --> 00:31:43,640 Speaker 9: you've just been to the event, you can bang get 666 00:31:43,640 --> 00:31:46,280 Speaker 9: your early early price in for the next year and 667 00:31:46,360 --> 00:31:47,040 Speaker 9: kind of move. 668 00:31:46,880 --> 00:31:47,280 Speaker 8: On from there. 669 00:31:47,400 --> 00:31:50,040 Speaker 9: We're not quite at that stage yet, but certainly that's 670 00:31:50,040 --> 00:31:50,920 Speaker 9: something we're looking to do. 671 00:31:51,480 --> 00:31:55,760 Speaker 6: How different is each city's you know, race and how 672 00:31:55,800 --> 00:31:58,360 Speaker 6: often can you replicate you know, what you have in 673 00:31:58,400 --> 00:32:00,320 Speaker 6: New York too to somewhere else in our Are you. 674 00:32:00,240 --> 00:32:01,840 Speaker 8: Looking to do that? Yeah? 675 00:32:01,880 --> 00:32:05,640 Speaker 9: Absolutely, I mean Fundamentally, what we're looking to set up 676 00:32:05,640 --> 00:32:10,280 Speaker 9: on shore is hospitality facilities which are long and thin. 677 00:32:10,440 --> 00:32:12,680 Speaker 8: And you know, what we've seen in. 678 00:32:12,640 --> 00:32:16,280 Speaker 9: The past in sports or cilly in sports sailing is 679 00:32:16,520 --> 00:32:21,080 Speaker 9: you know, people set up a rectangular hospitality facility, and 680 00:32:21,440 --> 00:32:23,400 Speaker 9: what we were observing was that all of our guests 681 00:32:23,440 --> 00:32:26,280 Speaker 9: would go right to the shoreline straight away. So what we've 682 00:32:26,320 --> 00:32:28,640 Speaker 9: done there is just kind of have a lot much 683 00:32:28,680 --> 00:32:32,480 Speaker 9: longer thin our hospitality structures long ashore. And then next 684 00:32:32,520 --> 00:32:36,120 Speaker 9: to that we we have grandstands, which are again quite 685 00:32:36,120 --> 00:32:40,040 Speaker 9: long in the thin, but you know as we as 686 00:32:40,040 --> 00:32:43,080 Speaker 9: we get more popular that they're getting higher and higher. 687 00:32:43,320 --> 00:32:46,480 Speaker 9: And then also we operate a new product called our 688 00:32:46,560 --> 00:32:51,760 Speaker 9: Valor Beach Club, which is a much a high energy 689 00:32:52,000 --> 00:32:55,680 Speaker 9: kind of music, much more much kind of modeled on 690 00:32:55,720 --> 00:32:59,160 Speaker 9: the French Riviera and those beach clubs down there, and 691 00:32:59,480 --> 00:33:02,840 Speaker 9: really bring a fun atmosphere to our racing. So those 692 00:33:02,920 --> 00:33:05,000 Speaker 9: three products are really kind of what we're looking to 693 00:33:05,080 --> 00:33:09,120 Speaker 9: achieve at every race. So it's not the geography isn't 694 00:33:09,200 --> 00:33:12,040 Speaker 9: always the same at every location that we go to. 695 00:33:12,200 --> 00:33:14,960 Speaker 9: Sometimes we're on a i guess a green field site 696 00:33:15,080 --> 00:33:18,600 Speaker 9: right close to shore. Sometimes it's a tarmac solution, which 697 00:33:18,640 --> 00:33:24,120 Speaker 9: is probably better for the setup of our facilities. So yeah, fundamentally, 698 00:33:24,200 --> 00:33:26,120 Speaker 9: we have a standard set of products and we have 699 00:33:26,200 --> 00:33:27,560 Speaker 9: to adapt them from time to time. 700 00:33:27,640 --> 00:33:28,760 Speaker 8: But as I said. 701 00:33:28,560 --> 00:33:32,280 Speaker 9: Before, we're looking for our operations to be produced on 702 00:33:32,640 --> 00:33:35,959 Speaker 9: a much more slick basis, so that we must standardizing 703 00:33:36,360 --> 00:33:38,640 Speaker 9: how we produce them and then you know that that 704 00:33:38,680 --> 00:33:42,640 Speaker 9: allows our cost to decrease and frankly deliver a better 705 00:33:42,680 --> 00:33:45,680 Speaker 9: product to our funds. So yeah, but yeah, at the 706 00:33:45,720 --> 00:33:48,800 Speaker 9: same time, we also have the beauty of sal gp 707 00:33:48,960 --> 00:33:51,000 Speaker 9: in my view, is that we are going to these 708 00:33:51,160 --> 00:33:55,640 Speaker 9: iconic locations and so in a way that those differences 709 00:33:55,640 --> 00:33:57,720 Speaker 9: are almost part of our products. So for example, in 710 00:33:58,120 --> 00:34:01,520 Speaker 9: Rio de Janeiro, we're right on the shoreline with those products. 711 00:34:01,920 --> 00:34:04,600 Speaker 9: Then we have Sugarloaf Mountain on one side and Christ 712 00:34:04,640 --> 00:34:07,360 Speaker 9: of the Redeemer statue on the other side. So the 713 00:34:07,400 --> 00:34:09,799 Speaker 9: beauty of it is almost like a standardized product, but 714 00:34:09,960 --> 00:34:13,440 Speaker 9: in iconic locations that are that are beautiful in their 715 00:34:13,480 --> 00:34:13,879 Speaker 9: own way. 716 00:34:14,080 --> 00:34:16,399 Speaker 6: Yeah, and you guys just announce Hong Kong and Roll 717 00:34:16,480 --> 00:34:19,080 Speaker 6: that are rejoining next year. How do you choose the 718 00:34:19,160 --> 00:34:21,520 Speaker 6: different the new cities that they'll be adding on. 719 00:34:21,840 --> 00:34:25,320 Speaker 9: Yeah, look, as I said, we're wanting to do longer 720 00:34:25,400 --> 00:34:28,719 Speaker 9: term deals with all of our venues and kind of 721 00:34:29,239 --> 00:34:33,240 Speaker 9: have definite dates where CLGP will be in a market 722 00:34:33,320 --> 00:34:35,400 Speaker 9: in a certain period of time, so that the fans 723 00:34:35,520 --> 00:34:38,560 Speaker 9: know that there will be a CELGP event on this 724 00:34:38,600 --> 00:34:43,240 Speaker 9: weekend year after year. What we're doing at the moment 725 00:34:43,280 --> 00:34:46,920 Speaker 9: is almost like announcing slots. So we have thirteen slots 726 00:34:46,960 --> 00:34:50,520 Speaker 9: for the twenty twenty seven calendar, and then yeah, they're 727 00:34:50,560 --> 00:34:53,400 Speaker 9: kind of they're regionalized as well. So we have Asia Pacific, 728 00:34:53,520 --> 00:34:55,920 Speaker 9: which you know is kind of where Hong Kong fits 729 00:34:55,960 --> 00:34:58,759 Speaker 9: in alongside Perth Australia, and then we have the Americas, 730 00:34:59,280 --> 00:35:03,880 Speaker 9: just announce some Francisco, we have New York and Halifax 731 00:35:03,920 --> 00:35:06,320 Speaker 9: and Canada as well as Rea Engineer. And then we 732 00:35:06,360 --> 00:35:09,200 Speaker 9: announce the slots in Europe, which for twenty twenty seven 733 00:35:09,280 --> 00:35:12,879 Speaker 9: is Germany, UK of Lentcia and Spain and Rome and Italy, 734 00:35:12,920 --> 00:35:14,480 Speaker 9: and then we move on to the Middle East. So 735 00:35:14,880 --> 00:35:18,920 Speaker 9: we must do it in sections, and yeah, it's really 736 00:35:19,920 --> 00:35:22,799 Speaker 9: the demand is certainly growing, which is good for us 737 00:35:22,840 --> 00:35:23,480 Speaker 9: as a business. 738 00:35:24,680 --> 00:35:25,680 Speaker 8: But yeah, I think. 739 00:35:25,480 --> 00:35:28,040 Speaker 9: Over time we will add more slots as we get 740 00:35:28,080 --> 00:35:31,160 Speaker 9: more efficient analogistics and we can go to more venues. 741 00:35:32,360 --> 00:35:34,080 Speaker 8: But yeah, we kind of, as I said, we do 742 00:35:34,120 --> 00:35:37,640 Speaker 8: it on a regional basis. We work with there's a. 743 00:35:37,640 --> 00:35:41,319 Speaker 9: Lot a lot of I guess inbound referrals at the 744 00:35:41,320 --> 00:35:44,080 Speaker 9: moment in that those cities who are kind of fighting 745 00:35:44,440 --> 00:35:46,920 Speaker 9: to host the LGP, right, so that's great for us, 746 00:35:48,280 --> 00:35:50,400 Speaker 9: and then we work with the host city really to 747 00:35:51,440 --> 00:35:54,160 Speaker 9: kind of really figure out what they are looking to deliver, now, 748 00:35:54,160 --> 00:35:56,920 Speaker 9: whether that's kind of eyeballs on the harbor, whether it's 749 00:35:57,239 --> 00:35:59,080 Speaker 9: you know, kind of working with local schools and local 750 00:35:59,120 --> 00:36:02,080 Speaker 9: communities to deliver sailing programs. So we kind of we 751 00:36:02,840 --> 00:36:07,160 Speaker 9: tailor our host venue commercial deals to those requirements. 752 00:36:08,239 --> 00:36:10,319 Speaker 8: And then yeah, we kind of certainly cander from there. 753 00:36:10,800 --> 00:36:13,120 Speaker 6: When you're looking, you know, in the future, when there's 754 00:36:13,160 --> 00:36:15,319 Speaker 6: going to be a ton more teams, I mean, you know, 755 00:36:15,800 --> 00:36:17,719 Speaker 6: sir Russell had said that, you know, looking to get 756 00:36:17,719 --> 00:36:20,200 Speaker 6: to twenty or twenty four teams in the future, do 757 00:36:20,239 --> 00:36:22,440 Speaker 6: you then have to look at the venues again to 758 00:36:22,480 --> 00:36:24,640 Speaker 6: see if all of the boats will be able to 759 00:36:24,840 --> 00:36:25,440 Speaker 6: race together. 760 00:36:25,520 --> 00:36:26,919 Speaker 8: Yeah, yeah, for sure. 761 00:36:27,000 --> 00:36:32,319 Speaker 9: It's certainly a logistical challenge, and really our technical facilities 762 00:36:32,440 --> 00:36:35,759 Speaker 9: is quite a challenge because you know, having in the 763 00:36:35,800 --> 00:36:39,520 Speaker 9: future twenty teams or requiring the same amount of spaces 764 00:36:40,200 --> 00:36:45,040 Speaker 9: is significant. And you know, we're coming to iconic harbors 765 00:36:45,080 --> 00:36:46,160 Speaker 9: around the world and. 766 00:36:46,560 --> 00:36:48,600 Speaker 8: You know, you look at New York City here, there's 767 00:36:48,600 --> 00:36:49,280 Speaker 8: not a lot of space. 768 00:36:50,840 --> 00:36:52,960 Speaker 9: It's not a very developed right, So you know, we've 769 00:36:52,960 --> 00:36:55,359 Speaker 9: got a great relationship here with the Brooklyn cruise ship 770 00:36:55,400 --> 00:36:57,120 Speaker 9: term and all, and we've you know, got a great 771 00:36:57,200 --> 00:37:00,520 Speaker 9: space here and that that tends to be that type 772 00:37:00,560 --> 00:37:03,319 Speaker 9: of environment work for us where we'll partner with a 773 00:37:03,360 --> 00:37:05,080 Speaker 9: cruise ship terminal and there tends to be a lot 774 00:37:05,120 --> 00:37:10,040 Speaker 9: of space on our harbor there. But yeah, we're looking 775 00:37:10,080 --> 00:37:12,479 Speaker 9: at ways that we can improve e logistics. We're looking 776 00:37:12,520 --> 00:37:16,960 Speaker 9: at some right now we have to, for example, assemble 777 00:37:17,000 --> 00:37:20,440 Speaker 9: and disassemble the boats in every location we go. So 778 00:37:20,800 --> 00:37:23,080 Speaker 9: we're looking at how we can work with our partner 779 00:37:23,120 --> 00:37:27,200 Speaker 9: deeply world to provide a more best spoke logistical solution 780 00:37:27,400 --> 00:37:30,160 Speaker 9: such that the boats can just go onto a ship 781 00:37:30,280 --> 00:37:33,560 Speaker 9: and be loaded onto ship without actually disassembling them. Then 782 00:37:33,600 --> 00:37:35,759 Speaker 9: we go to the next location and they'll kind of 783 00:37:35,800 --> 00:37:37,920 Speaker 9: be craning straight off that ship onto the water. So 784 00:37:37,960 --> 00:37:41,759 Speaker 9: that's certainly something that we're looking at. I think as 785 00:37:41,800 --> 00:37:44,560 Speaker 9: we look at new markets, we're certainly looking at markets 786 00:37:44,560 --> 00:37:48,160 Speaker 9: where we can add audience and you know, kind of 787 00:37:48,360 --> 00:37:50,840 Speaker 9: as you were saying before, you know, adding a Brazilian 788 00:37:50,880 --> 00:37:53,640 Speaker 9: team last year was huge for our audience in Brazil. 789 00:37:53,680 --> 00:37:55,520 Speaker 9: And then we bought a race into Real. 790 00:37:55,440 --> 00:37:58,680 Speaker 6: Was it because there was already a big racing community there. 791 00:37:58,800 --> 00:38:02,840 Speaker 9: Yeah, I mean kind of we analyze our audience data 792 00:38:03,040 --> 00:38:06,160 Speaker 9: and look at the growth in the audience and I 793 00:38:06,200 --> 00:38:09,120 Speaker 9: think Brazil was certainly one of our markets that was 794 00:38:09,200 --> 00:38:11,320 Speaker 9: higher ranked. They didn't have a team, and so that 795 00:38:11,800 --> 00:38:14,200 Speaker 9: was kind of behind our decision making there. 796 00:38:14,239 --> 00:38:17,240 Speaker 8: And yeah, I think there's a number of markets out. 797 00:38:17,120 --> 00:38:21,560 Speaker 9: There that have that either have already a reasonable audience 798 00:38:21,719 --> 00:38:24,080 Speaker 9: or the potential for an audience that we're looking at 799 00:38:24,160 --> 00:38:24,720 Speaker 9: in the future. 800 00:38:25,239 --> 00:38:27,839 Speaker 2: That was Andrew Thompson, the managing director of Sale GP. 801 00:38:28,320 --> 00:38:30,919 Speaker 5: And that is it for today. Thank you for joining 802 00:38:31,000 --> 00:38:34,120 Speaker 5: us to and again next week for the latest on 803 00:38:34,239 --> 00:38:37,040 Speaker 5: the stories moving big money in the world sports. 804 00:38:37,200 --> 00:38:39,279 Speaker 6: And don't forget to catch our podcast on all your 805 00:38:39,320 --> 00:38:42,400 Speaker 6: podcast platforms, and go to Bloomberg dot com to subscribe 806 00:38:42,440 --> 00:38:44,920 Speaker 6: to the Bloomberg Business of Sports newsletter. 807 00:38:44,680 --> 00:38:47,439 Speaker 2: To stay up to date on all our juicy insights, and. 808 00:38:47,360 --> 00:38:50,279 Speaker 5: They are juicy too. You are listening to the Bloomberg 809 00:38:50,360 --> 00:38:54,080 Speaker 5: Business of Sports Bloomberg Radio around the world, but stay 810 00:38:54,120 --> 00:38:54,560 Speaker 5: with us. 811 00:38:54,640 --> 00:38:58,160 Speaker 7: Today's top stories and global business headlines are coming up 812 00:38:58,560 --> 00:38:59,520 Speaker 7: right now. 813 00:39:00,960 --> 00:39:01,160 Speaker 1: Four