1 00:00:02,520 --> 00:00:09,920 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is the Business 2 00:00:09,920 --> 00:00:10,720 Speaker 1: of Sports. 3 00:00:10,720 --> 00:00:14,160 Speaker 2: Sports are the greatest unscripted show owner. 4 00:00:14,040 --> 00:00:16,200 Speaker 3: The next generation of players who really grew up with 5 00:00:16,280 --> 00:00:16,759 Speaker 3: tech and. 6 00:00:16,840 --> 00:00:17,600 Speaker 4: Believe in tech. 7 00:00:17,680 --> 00:00:19,960 Speaker 2: Your face is your ticket, your face is your wallet, 8 00:00:20,040 --> 00:00:21,800 Speaker 2: your face is your access to a club. 9 00:00:21,920 --> 00:00:25,640 Speaker 5: These are such iconic and important buildings for businesses. 10 00:00:25,760 --> 00:00:28,520 Speaker 6: For fans, COVID was one of the best things ever 11 00:00:28,600 --> 00:00:29,159 Speaker 6: happened to go. 12 00:00:29,400 --> 00:00:31,479 Speaker 7: The NFL is a bulletproof business. 13 00:00:31,600 --> 00:00:34,240 Speaker 2: Racing is unique because there is absolutely no reason why 14 00:00:34,240 --> 00:00:35,320 Speaker 2: we can't compete with the guys. 15 00:00:35,440 --> 00:00:36,320 Speaker 7: Well, it's pro kickleball? 16 00:00:36,360 --> 00:00:38,720 Speaker 8: Real, Are people really going to tune into this? If 17 00:00:38,720 --> 00:00:41,440 Speaker 8: you're playing moneyball with a huge bag of money, you're 18 00:00:41,479 --> 00:00:42,640 Speaker 8: going to be really, really good. 19 00:00:42,760 --> 00:00:45,880 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 20 00:00:47,280 --> 00:00:50,080 Speaker 7: This is the Bloomberg Business of Sports, where we explore 21 00:00:50,120 --> 00:00:52,120 Speaker 7: the big money issues in the world of sports. I'm 22 00:00:52,120 --> 00:00:56,360 Speaker 7: Michael Barr along with my colleague Damian Zasaur and we'll 23 00:00:56,400 --> 00:00:59,640 Speaker 7: hear from Vanessa Perdomo later on in the show. Coming up, 24 00:00:59,680 --> 00:01:03,920 Speaker 7: we hear from ice Cube. His Big Three basketball league 25 00:01:04,000 --> 00:01:06,640 Speaker 7: just started its season and has a full slate of 26 00:01:06,720 --> 00:01:09,679 Speaker 7: games this weekend. We'll talk to him about how his 27 00:01:09,760 --> 00:01:12,920 Speaker 7: league is growing and becoming real competition for the NBA. 28 00:01:13,360 --> 00:01:15,720 Speaker 3: You know, after the NBA Finals, they really waiting for 29 00:01:16,000 --> 00:01:19,279 Speaker 3: the NFL to start. So it's a lot of fans 30 00:01:19,319 --> 00:01:23,200 Speaker 3: out there just you know, waiting to be entertained, and 31 00:01:23,440 --> 00:01:25,560 Speaker 3: we think we got it with the Big three. 32 00:01:25,959 --> 00:01:26,160 Speaker 4: Well. 33 00:01:26,200 --> 00:01:30,160 Speaker 7: Also here from Fabian Allegra, he's chief brand officer for 34 00:01:30,319 --> 00:01:34,600 Speaker 7: Paris Saint Germain football Club. As the FIFA Club World 35 00:01:34,680 --> 00:01:37,240 Speaker 7: Cup rolls on. All that is on the way on 36 00:01:37,280 --> 00:01:40,640 Speaker 7: the Bloomberg Business of sports. But first, big, big, big, big, 37 00:01:40,680 --> 00:01:43,680 Speaker 7: big big news. This week, the Los Angeles Lakers will 38 00:01:43,720 --> 00:01:46,280 Speaker 7: have a new owner, the Bus family, who've owned the 39 00:01:46,360 --> 00:01:50,440 Speaker 7: Lakers since nineteen seventy nine. When patriarch Jerry Buss bought 40 00:01:50,480 --> 00:01:54,040 Speaker 7: the team it was a struggling franchise for sixty seven 41 00:01:54,080 --> 00:01:57,840 Speaker 7: point five million dollars. Now the team is being sold 42 00:01:57,840 --> 00:02:02,720 Speaker 7: at a record ten billion dollar valuation to Guggenheim Partner's 43 00:02:02,720 --> 00:02:05,760 Speaker 7: CEO Mark Walter. That's on top of being the lead 44 00:02:05,800 --> 00:02:08,720 Speaker 7: owner of the LA Dodgers. Here to break down what 45 00:02:08,760 --> 00:02:12,000 Speaker 7: we know for sure about another record breaking franchise deal 46 00:02:12,280 --> 00:02:16,480 Speaker 7: is Bloomberg Global Sports Business reporter Ira budue Ira Welcome 47 00:02:16,600 --> 00:02:18,400 Speaker 7: to the Bloomberg Business of Sports. 48 00:02:18,840 --> 00:02:19,720 Speaker 8: Thanks for having me on. 49 00:02:19,919 --> 00:02:23,680 Speaker 7: Man oh man, I tell you what news just breaks 50 00:02:23,840 --> 00:02:28,280 Speaker 7: left and right. I'm surprised. I mean, yes, okay, in 51 00:02:28,320 --> 00:02:32,880 Speaker 7: case you didn't hear it. By the way, billionaire, Yes, 52 00:02:33,000 --> 00:02:38,200 Speaker 7: he's loaded Mark Walter. He bought. Actually I should add 53 00:02:38,200 --> 00:02:41,720 Speaker 7: this the controlling stake in the team that is coming 54 00:02:41,840 --> 00:02:46,400 Speaker 7: up from the Bus family. And I understand that Genie 55 00:02:46,440 --> 00:02:48,280 Speaker 7: Buss is still going to operate the team. 56 00:02:48,639 --> 00:02:51,639 Speaker 8: Yeah, she will for a number of years, I think 57 00:02:51,800 --> 00:02:55,440 Speaker 8: was the quote in the original ESPN report, remain as 58 00:02:55,480 --> 00:02:59,240 Speaker 8: the governor and then eventually transition out of that role, 59 00:02:59,280 --> 00:03:02,120 Speaker 8: which means she's keeping you know, at least fifteen percent 60 00:03:02,120 --> 00:03:05,720 Speaker 8: of the team for now. And we've seen deals like 61 00:03:05,840 --> 00:03:08,760 Speaker 8: this lately in the NBA where the governor wants to 62 00:03:08,760 --> 00:03:11,359 Speaker 8: stick around a little bit longer, but it is ready 63 00:03:11,440 --> 00:03:14,720 Speaker 8: to sell majority stake in the team. So it's an 64 00:03:14,720 --> 00:03:17,920 Speaker 8: interesting one. But yeah, I mean, this is a end 65 00:03:17,919 --> 00:03:21,360 Speaker 8: of an era. The Bus family longest tenured ownership in 66 00:03:21,400 --> 00:03:24,720 Speaker 8: the NBA, and you know, bought this team in nineteen 67 00:03:24,760 --> 00:03:28,560 Speaker 8: seventy nine and for a lot less than what Walter 68 00:03:28,680 --> 00:03:29,079 Speaker 8: is paying. 69 00:03:29,400 --> 00:03:33,480 Speaker 7: I saw the crawl. We're talking about this come across 70 00:03:33,520 --> 00:03:36,360 Speaker 7: the TV and at the time, we had company at 71 00:03:36,400 --> 00:03:40,600 Speaker 7: the time, and I thought I saw it wrong. I'm like, no, 72 00:03:41,000 --> 00:03:43,800 Speaker 7: that can't be. It's your turn, John, you go roll 73 00:03:43,800 --> 00:03:48,240 Speaker 7: the dice. That's what That's basically what happened. But yeah, 74 00:03:48,320 --> 00:03:51,600 Speaker 7: I mean, this is amazing, and the my goodness, the 75 00:03:51,680 --> 00:03:55,520 Speaker 7: valuations keep going up. This is for record ten billion. 76 00:03:55,240 --> 00:03:57,160 Speaker 8: Dollars, right, and this is on the heels of that 77 00:03:57,200 --> 00:04:00,760 Speaker 8: Celtics deal at six point one billion, which was the record, 78 00:04:01,320 --> 00:04:03,640 Speaker 8: and they're falling fast. I mean, ten is a lot 79 00:04:03,640 --> 00:04:07,280 Speaker 8: more than six point one and it's not been that long, 80 00:04:07,400 --> 00:04:10,400 Speaker 8: so I think it's pretty surprising. I mean, the Lakers 81 00:04:10,480 --> 00:04:15,600 Speaker 8: are on a very short list of premier, premier franchises, 82 00:04:15,640 --> 00:04:18,919 Speaker 8: not just you know, in a premier elite in a 83 00:04:18,960 --> 00:04:21,559 Speaker 8: top sports league, but also one of the top teams, 84 00:04:21,560 --> 00:04:24,560 Speaker 8: one of the top global brands, and you know, they 85 00:04:24,760 --> 00:04:27,880 Speaker 8: just a lot about them that makes them attractive. But 86 00:04:27,920 --> 00:04:30,960 Speaker 8: also I think Walter just has a record of being 87 00:04:31,040 --> 00:04:33,200 Speaker 8: willing to go big and he's already in the market. 88 00:04:33,240 --> 00:04:33,400 Speaker 7: Right. 89 00:04:33,440 --> 00:04:36,480 Speaker 8: They set a record for a franchise when that group 90 00:04:36,560 --> 00:04:39,279 Speaker 8: bought the Dodgers in twenty twelve for two point one billion, 91 00:04:39,920 --> 00:04:41,800 Speaker 8: and that seems to have worked out pretty well for 92 00:04:41,839 --> 00:04:44,200 Speaker 8: them so far. And now with this there's some interesting 93 00:04:44,240 --> 00:04:47,000 Speaker 8: possibilities what they can do in market, sort of combining 94 00:04:47,440 --> 00:04:50,919 Speaker 8: the Lakers and Dodgers potentially as a media property and 95 00:04:50,960 --> 00:04:52,960 Speaker 8: so on. So, you know, I think they know what 96 00:04:53,000 --> 00:04:55,960 Speaker 8: they're doing, but I also think like these numbers are 97 00:04:56,520 --> 00:05:01,080 Speaker 8: beyond maybe what you could look at the balance and justifying. 98 00:05:02,120 --> 00:05:03,120 Speaker 4: So it's interesting. 99 00:05:03,440 --> 00:05:06,960 Speaker 7: Yeah, I mean, this is one of those stories where well, 100 00:05:07,000 --> 00:05:09,640 Speaker 7: how high can the pot run? I mean, we're going 101 00:05:09,720 --> 00:05:11,919 Speaker 7: to keep going and going. I mean, what's going to happen? 102 00:05:12,160 --> 00:05:14,720 Speaker 8: Yeah, And I think partly what we're seeing is a 103 00:05:14,880 --> 00:05:19,400 Speaker 8: split now between sports properties that are like a plus 104 00:05:19,839 --> 00:05:23,559 Speaker 8: like the Lakers, and maybe if you're a small market 105 00:05:23,600 --> 00:05:26,880 Speaker 8: baseball team, we maybe have hit the peak and we've 106 00:05:26,920 --> 00:05:29,719 Speaker 8: hit the roof, right. I think you're seeing in that 107 00:05:29,800 --> 00:05:32,960 Speaker 8: market the Twins rays other teams like having a little 108 00:05:33,000 --> 00:05:36,680 Speaker 8: trouble fetching the price that they originally wanted. So I 109 00:05:36,720 --> 00:05:39,040 Speaker 8: think they're on the one hand, you could say bubble bursting. 110 00:05:39,080 --> 00:05:41,560 Speaker 8: On the other hand, you can look at these numbers 111 00:05:41,600 --> 00:05:44,120 Speaker 8: and say, there's that you know, we can go on 112 00:05:44,240 --> 00:05:48,120 Speaker 8: forever into the stratosphere. At this rate, it's very interesting, 113 00:05:48,200 --> 00:05:51,200 Speaker 8: you know. And Walter in that group, they have, like 114 00:05:51,240 --> 00:05:54,440 Speaker 8: we said, Dodgers, they already had a piece of the Lakers. 115 00:05:54,520 --> 00:05:58,560 Speaker 8: Now they're becoming majority owners. They are in have stakes 116 00:05:58,560 --> 00:06:01,280 Speaker 8: in Chelsea, in the Premier League, they have some Formula 117 00:06:01,320 --> 00:06:04,479 Speaker 8: one Professional Women's Hockey League sparks. Like they are building 118 00:06:04,520 --> 00:06:08,000 Speaker 8: a very big platform or as they call them now, 119 00:06:08,160 --> 00:06:10,440 Speaker 8: of sporting properties. And I think that's another thing that 120 00:06:10,480 --> 00:06:14,040 Speaker 8: we're seeing is when you can combine these things, maybe 121 00:06:14,040 --> 00:06:16,880 Speaker 8: they're worth more than a standalone properties. 122 00:06:17,320 --> 00:06:20,880 Speaker 7: Our thanks to Bloomberg Global Sports Business reporter Ira Budway 123 00:06:20,920 --> 00:06:24,800 Speaker 7: for joining us from record settings sports franchise deals to 124 00:06:24,839 --> 00:06:28,360 Speaker 7: the golf course. Arcis Golf recently made a few deals 125 00:06:28,360 --> 00:06:32,440 Speaker 7: of their own, acquiring three Atlanta area golf courses. Here 126 00:06:32,480 --> 00:06:35,200 Speaker 7: to talk to us about the deals and the growth 127 00:06:35,279 --> 00:06:39,840 Speaker 7: of golf is Blake Walker. He's chairman, CEO and founder 128 00:06:39,880 --> 00:06:43,320 Speaker 7: of Arcis Golf. Blake Welcome to the Bloomberg Business of Sports. 129 00:06:43,640 --> 00:06:45,680 Speaker 9: Michael, thank you. I'm a big fan of the show. 130 00:06:45,720 --> 00:06:46,400 Speaker 6: Happy to be here. 131 00:06:46,520 --> 00:06:49,560 Speaker 7: Oh you've been too kind to us. Arcis Golf reaches 132 00:06:49,600 --> 00:06:53,080 Speaker 7: two billion dollar value. You bought three Atlanta courses but 133 00:06:53,160 --> 00:06:56,520 Speaker 7: you guys have a lot of history about Arcis golf. 134 00:06:56,520 --> 00:06:57,640 Speaker 7: Can you take us through it, sir? 135 00:06:59,120 --> 00:06:59,440 Speaker 4: Sure? 136 00:06:59,600 --> 00:07:01,880 Speaker 9: You know how I began my career back in the 137 00:07:01,880 --> 00:07:06,000 Speaker 9: early nineties really looking making investments in leisure and sports 138 00:07:06,279 --> 00:07:10,520 Speaker 9: and really began to develop a niche in hospitality, specifically 139 00:07:10,560 --> 00:07:15,000 Speaker 9: golf resorts. And you know, Arcus was something I was 140 00:07:15,040 --> 00:07:17,080 Speaker 9: I was sitting and I as a chief investment officer 141 00:07:17,080 --> 00:07:20,120 Speaker 9: of a large platform. We were about to go public, 142 00:07:20,160 --> 00:07:22,200 Speaker 9: and I looked at the market. This would have been like, 143 00:07:22,280 --> 00:07:26,640 Speaker 9: you know, twenty twelve, twenty thirteen, and there was about 144 00:07:26,680 --> 00:07:28,720 Speaker 9: three and a half billion dollars with a debt distressed 145 00:07:28,760 --> 00:07:31,560 Speaker 9: debt coming due sort of post leadman, and I thought, Wow, 146 00:07:31,600 --> 00:07:35,240 Speaker 9: this would be a phenomenal opportunity to build a platform 147 00:07:35,280 --> 00:07:38,040 Speaker 9: within golf because one of the things I'd thought about 148 00:07:38,440 --> 00:07:42,000 Speaker 9: was that golf was really dependent upon aging baby boomers, 149 00:07:42,080 --> 00:07:44,840 Speaker 9: and I thought, what's going to happen when they age out? 150 00:07:45,080 --> 00:07:47,200 Speaker 9: Golf's got to get younger, it's got to get more diverse, 151 00:07:47,240 --> 00:07:50,800 Speaker 9: and it's got to get decidedly more female. So went 152 00:07:50,840 --> 00:07:53,720 Speaker 9: home told my wife I had this idea, and that 153 00:07:54,080 --> 00:07:57,160 Speaker 9: I wanted to quit my day job. And you know, 154 00:07:57,280 --> 00:07:59,120 Speaker 9: this rate all my equity there and not take a 155 00:07:59,120 --> 00:08:02,280 Speaker 9: salary for a couple of years, and thankfully or surprisingly, 156 00:08:02,400 --> 00:08:03,000 Speaker 9: she said yes. 157 00:08:03,120 --> 00:08:04,800 Speaker 4: So that was when sort of the. 158 00:08:04,720 --> 00:08:08,760 Speaker 9: Odyssey began with Arcus in twenty fourteen. And as you mentioned, 159 00:08:08,920 --> 00:08:11,520 Speaker 9: you know, we we most recently acquired three private clubs 160 00:08:11,520 --> 00:08:13,680 Speaker 9: in Atlanta. A couple of weeks before we acquired the 161 00:08:13,680 --> 00:08:16,440 Speaker 9: Woodlands in Houston, and that was on the heels of 162 00:08:16,600 --> 00:08:19,360 Speaker 9: Championship treat where we host co host the Guest nash 163 00:08:19,400 --> 00:08:22,040 Speaker 9: Woman's Amateur and gray Hawk and Scottsdale in a variety 164 00:08:22,080 --> 00:08:22,480 Speaker 9: of others. 165 00:08:23,160 --> 00:08:24,600 Speaker 2: So, Blake, I wonder if you could just tell our 166 00:08:24,600 --> 00:08:26,520 Speaker 2: audience a little bit about the business model you employed 167 00:08:26,520 --> 00:08:29,160 Speaker 2: at Arcus in terms of, you know, buying these courses, 168 00:08:29,240 --> 00:08:31,560 Speaker 2: you know, upgrading them, renovating them. I mean, I'm looking 169 00:08:31,560 --> 00:08:33,720 Speaker 2: at some pictures here of Fox metalw and Weymouth Country 170 00:08:33,720 --> 00:08:36,200 Speaker 2: Club and some of the renovations and the transformations of 171 00:08:36,200 --> 00:08:37,760 Speaker 2: these two clubs. It's just astounding. 172 00:08:38,080 --> 00:08:41,520 Speaker 4: Take us through that, you know, I. 173 00:08:41,400 --> 00:08:44,880 Speaker 9: Mean, it's it's interesting. We've done this a while and 174 00:08:44,920 --> 00:08:47,560 Speaker 9: we have a preconceived idea from an investment perspective and 175 00:08:47,640 --> 00:08:51,520 Speaker 9: reinvestment specifically, but we do a series of focus groups 176 00:08:51,600 --> 00:08:54,000 Speaker 9: with you know, with members prior to the you know, 177 00:08:54,480 --> 00:08:59,760 Speaker 9: finally investing, and you know, it's really a family centric thesis, 178 00:09:00,320 --> 00:09:04,320 Speaker 9: and it's really built upon our four pillars, you know, 179 00:09:04,360 --> 00:09:08,720 Speaker 9: which are you know, health and wellness, experiential dining, lifetime, 180 00:09:08,760 --> 00:09:13,160 Speaker 9: sports and arts entertainment. And we really use that as 181 00:09:13,600 --> 00:09:15,880 Speaker 9: a day part strategy, much like you would in media, 182 00:09:16,760 --> 00:09:19,320 Speaker 9: for every member of the family, by member by day. 183 00:09:19,440 --> 00:09:23,000 Speaker 9: So that cat bax is very intentional and it's really 184 00:09:23,120 --> 00:09:25,760 Speaker 9: a lot of lifestyle amenities in addition to golf. 185 00:09:26,880 --> 00:09:29,040 Speaker 7: Man, if I told my wife that I wasn't going 186 00:09:29,080 --> 00:09:31,199 Speaker 7: to have a salary for a couple of years, man, 187 00:09:31,360 --> 00:09:33,599 Speaker 7: you'd tell me to go get that greeting job in 188 00:09:33,720 --> 00:09:37,240 Speaker 7: Walmart that I've always dreamed about. You have a very 189 00:09:37,400 --> 00:09:40,960 Speaker 7: understanding wife and made your dream come true. 190 00:09:42,360 --> 00:09:44,160 Speaker 9: Well, you know, Michael, there were days I thought I 191 00:09:44,240 --> 00:09:48,040 Speaker 9: might have that greeter job. So I absolutely understand what 192 00:09:48,080 --> 00:09:50,840 Speaker 9: you're talking about. It could have clearly been a very 193 00:09:50,840 --> 00:09:54,959 Speaker 9: public failure, but I've been I'm a lucky guy. I've 194 00:09:54,960 --> 00:09:57,360 Speaker 9: got to incredibly supportive spouse, and I've got a great team. 195 00:09:57,440 --> 00:09:59,880 Speaker 9: Quite frankly, I mean, really, the journey here has been a. 196 00:10:00,000 --> 00:10:01,880 Speaker 9: A lot of people want to talk about our in 197 00:10:02,040 --> 00:10:04,880 Speaker 9: organic growth. But our organic growth has been special and 198 00:10:04,920 --> 00:10:08,640 Speaker 9: it's really been the direct result of the talented people 199 00:10:08,640 --> 00:10:09,400 Speaker 9: we have on this team. 200 00:10:10,080 --> 00:10:11,760 Speaker 2: So Blake take us through. I mean, I mean, the 201 00:10:11,800 --> 00:10:14,200 Speaker 2: company's been around for nearly eleven years. I mean it's 202 00:10:14,240 --> 00:10:16,559 Speaker 2: got it commands a two billion dollar valuation. I mean, 203 00:10:16,760 --> 00:10:18,600 Speaker 2: who are your partners? You know, I've seen some of these, 204 00:10:18,720 --> 00:10:20,880 Speaker 2: I've seen iFIT. You know you've done some things there. 205 00:10:21,559 --> 00:10:23,560 Speaker 2: You know some AI coach. I believe that you guys 206 00:10:23,559 --> 00:10:25,800 Speaker 2: are testing out. I mean talk to us about you know, 207 00:10:26,080 --> 00:10:28,960 Speaker 2: who the logical partners are that can not only help 208 00:10:29,000 --> 00:10:31,080 Speaker 2: your company but help it grow well. 209 00:10:31,160 --> 00:10:33,360 Speaker 9: It really goes back to that four pillars thesis. I mean, 210 00:10:33,679 --> 00:10:35,600 Speaker 9: you know, I think as you look at our growth 211 00:10:35,640 --> 00:10:37,920 Speaker 9: on a go forward basis, I mean we're partnering with 212 00:10:38,000 --> 00:10:41,040 Speaker 9: people that are best in class from a course design perspective, 213 00:10:41,720 --> 00:10:43,200 Speaker 9: Jumping on a plane here in about an hour to 214 00:10:43,200 --> 00:10:44,000 Speaker 9: work on a project. 215 00:10:44,000 --> 00:10:45,160 Speaker 7: We've got the three or four. 216 00:10:45,200 --> 00:10:47,480 Speaker 9: We have an in house construction team. We work with 217 00:10:47,480 --> 00:10:49,760 Speaker 9: the best designers on the planet. From a health and 218 00:10:49,800 --> 00:10:54,320 Speaker 9: wellness perspective, we're beta testing with a couple of leaders 219 00:10:54,360 --> 00:10:56,719 Speaker 9: in the health and wellness space and a couple of 220 00:10:56,760 --> 00:11:00,599 Speaker 9: hub markets. Currently we're in the process us at the 221 00:11:00,640 --> 00:11:03,360 Speaker 9: final design stages of a social house we're going to 222 00:11:03,400 --> 00:11:06,640 Speaker 9: build in UH in Scottsdale that will be have a 223 00:11:06,640 --> 00:11:10,400 Speaker 9: green grass location. So again, you know, think about younger, 224 00:11:11,200 --> 00:11:16,000 Speaker 9: you know, female, more diverse audience and what those wants, needs, 225 00:11:16,080 --> 00:11:18,840 Speaker 9: desires are in terms of on a daily basis, right, 226 00:11:18,880 --> 00:11:20,320 Speaker 9: I mean, it's where they're gonna it's where they're going 227 00:11:20,360 --> 00:11:21,880 Speaker 9: to dine, it's where they're going to work out, it's 228 00:11:21,920 --> 00:11:24,680 Speaker 9: where they're gonna, uh socially, They're they're going to spend 229 00:11:24,720 --> 00:11:27,880 Speaker 9: time in the social house. It's it's really it's it's 230 00:11:28,040 --> 00:11:29,840 Speaker 9: very similar to if you were bundling it in the 231 00:11:29,840 --> 00:11:30,440 Speaker 9: media business. 232 00:11:30,720 --> 00:11:32,720 Speaker 2: Well, you have also have a very diverse portfolio. Right, 233 00:11:32,720 --> 00:11:35,600 Speaker 2: This isn't just private clubs we're talking about. There's public courses, 234 00:11:35,600 --> 00:11:38,160 Speaker 2: there's municipal courses. Tell us take us through your portfolio. 235 00:11:38,240 --> 00:11:40,600 Speaker 2: I mean, take us through those different business models and 236 00:11:40,640 --> 00:11:43,280 Speaker 2: how you view them. I mean, are they individually looked 237 00:11:43,320 --> 00:11:45,240 Speaker 2: at separately as a part of you know, you know, 238 00:11:45,520 --> 00:11:48,400 Speaker 2: just building better diversification into your portfolio. For example, I 239 00:11:48,440 --> 00:11:51,040 Speaker 2: mean talk to us about you know, the the narrative 240 00:11:51,040 --> 00:11:52,880 Speaker 2: for investing across all three verticals. 241 00:11:53,400 --> 00:11:56,360 Speaker 9: You know that again very intentional and and to grow 242 00:11:56,400 --> 00:11:58,559 Speaker 9: the game. You know, as you look at those aging 243 00:11:58,600 --> 00:12:01,720 Speaker 9: baby boomers and who who the next wave of consumers 244 00:12:01,800 --> 00:12:03,160 Speaker 9: is going to be within golf, it had to make 245 00:12:03,200 --> 00:12:05,960 Speaker 9: it more approachable and more affordable. So for us, it 246 00:12:06,000 --> 00:12:08,240 Speaker 9: was key that about fifty percent of our portfolio be 247 00:12:08,360 --> 00:12:11,600 Speaker 9: daily fee, and so that fifty percent is driven by 248 00:12:11,600 --> 00:12:14,760 Speaker 9: our subscription offering. So if you look at markets like 249 00:12:14,920 --> 00:12:17,840 Speaker 9: Scottsdale where we're building the Social House, we've got over 250 00:12:17,880 --> 00:12:20,880 Speaker 9: ten thousand subscribers in that market, and we also have 251 00:12:21,559 --> 00:12:25,720 Speaker 9: several private clubs everywhere from entry level to one hundred 252 00:12:25,760 --> 00:12:29,640 Speaker 9: thousand dollars initiation fees. And really it's we're trying to 253 00:12:29,640 --> 00:12:33,160 Speaker 9: create an ecosystem where the consumer can be vertically integrated 254 00:12:33,160 --> 00:12:36,880 Speaker 9: as they grow in their career. But again the mental 255 00:12:36,920 --> 00:12:39,439 Speaker 9: model is that four pillars thesis. Really the only difference 256 00:12:39,480 --> 00:12:41,079 Speaker 9: is that breadth and scope of what we offered a 257 00:12:41,200 --> 00:12:43,000 Speaker 9: daily fee versus a private o. 258 00:12:43,080 --> 00:12:45,360 Speaker 7: Well, thanks to Blake Walker for joining us. He's chairman, 259 00:12:45,559 --> 00:12:49,200 Speaker 7: CEO and founder of Arcis Golf. Up next, we turned 260 00:12:49,240 --> 00:12:52,800 Speaker 7: to soccer and the FIVA Club World Cup with chief 261 00:12:52,880 --> 00:12:57,280 Speaker 7: brand strategists of Paris Saint Germain Football Club Babia Allegory 262 00:12:57,559 --> 00:13:00,319 Speaker 7: for Damian Sasaur. I'm Michael Barr. You're listening to the 263 00:13:00,320 --> 00:13:03,640 Speaker 7: Bloomberg Business of Sports and Bloomberg Radio around the world. 264 00:13:06,720 --> 00:13:10,720 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 265 00:13:12,480 --> 00:13:15,000 Speaker 7: This is the Bloomberg Business of Sports, where we explore 266 00:13:15,000 --> 00:13:17,760 Speaker 7: the big money issues in the world of sports. Michael Barr. 267 00:13:18,160 --> 00:13:21,319 Speaker 7: With the FIFA Club World Cup underway, Essa Brodomo got 268 00:13:21,320 --> 00:13:23,320 Speaker 7: a chance to sit down with one of the folks 269 00:13:23,559 --> 00:13:27,160 Speaker 7: behind the scenes at one of the teams participating. Fabian 270 00:13:27,240 --> 00:13:31,480 Speaker 7: Allegra is chief brand officer at Paris Saint Germain Football Club. 271 00:13:31,800 --> 00:13:34,079 Speaker 7: Let's take a listen to their conversation, part of an 272 00:13:34,080 --> 00:13:36,640 Speaker 7: ongoing series focusing on the business of soccer. 273 00:13:37,880 --> 00:13:38,280 Speaker 4: Well, this. 274 00:13:39,760 --> 00:13:44,160 Speaker 10: First edition of the Club World Cup is super exciting 275 00:13:44,240 --> 00:13:48,080 Speaker 10: for Paris A Joana maybe. As you know, we already 276 00:13:48,160 --> 00:13:53,000 Speaker 10: get a strong and a growing US footprint with our 277 00:13:54,160 --> 00:13:58,280 Speaker 10: eighteen official fans club, the three stores that we have 278 00:13:58,400 --> 00:14:03,400 Speaker 10: in New York, Miami and Lesliga US, the academies as 279 00:14:03,400 --> 00:14:09,679 Speaker 10: well and our US dedicated Ecomes platform. So for US 280 00:14:09,720 --> 00:14:14,800 Speaker 10: it's a way not to We're not visiting in a way, 281 00:14:14,840 --> 00:14:19,120 Speaker 10: we're moving in. And the concept that we have for 282 00:14:19,280 --> 00:14:24,440 Speaker 10: PG House in Los Angeles will be a unique and 283 00:14:24,640 --> 00:14:31,800 Speaker 10: immassive ub on Melose Avenue, blending football, fashion, art and 284 00:14:31,840 --> 00:14:33,320 Speaker 10: lifestyle experiences. 285 00:14:33,480 --> 00:14:35,320 Speaker 6: I mean the DNA of the club. 286 00:14:36,080 --> 00:14:36,800 Speaker 2: Yeah, I love that. 287 00:14:36,880 --> 00:14:37,320 Speaker 7: I love that. 288 00:14:38,080 --> 00:14:40,240 Speaker 5: I love the what you put it there. You're you're 289 00:14:40,240 --> 00:14:43,840 Speaker 5: not visiting, You're moving in and expanding right your footprint 290 00:14:43,840 --> 00:14:46,800 Speaker 5: that you already have here. And you guys are in 291 00:14:46,960 --> 00:14:49,440 Speaker 5: you know, Group B along with you know, one of 292 00:14:49,680 --> 00:14:53,280 Speaker 5: the other one of the only MLS teams competing here 293 00:14:53,320 --> 00:14:56,160 Speaker 5: and going to be competing with them on in their 294 00:14:56,200 --> 00:15:00,240 Speaker 5: home stadium, on their home pitch. Tell me how how 295 00:15:00,520 --> 00:15:03,320 Speaker 5: you know? Is that exciting or is that post another 296 00:15:03,440 --> 00:15:05,520 Speaker 5: challenge or does that just give you more of a 297 00:15:06,400 --> 00:15:10,000 Speaker 5: footprint to grow in the US playing against the US team. 298 00:15:10,080 --> 00:15:14,240 Speaker 10: Oh, the way the Club World Cup is organized is 299 00:15:15,000 --> 00:15:18,320 Speaker 10: really interesting because that that will allow us to get 300 00:15:18,360 --> 00:15:20,760 Speaker 10: in a different cities. I mean, you'll see for the 301 00:15:20,800 --> 00:15:24,000 Speaker 10: group stage we will be in LA but also in Seattle. 302 00:15:24,240 --> 00:15:27,560 Speaker 10: And for us, that's also a way to go and 303 00:15:28,000 --> 00:15:32,600 Speaker 10: meet our community and fans and and and once again 304 00:15:32,840 --> 00:15:36,880 Speaker 10: try to expand our footprint in the different key cities. 305 00:15:37,560 --> 00:15:39,760 Speaker 5: So tell me a little bit more about the l 306 00:15:39,760 --> 00:15:41,960 Speaker 5: A House that you were saying. I mean, you have 307 00:15:42,040 --> 00:15:44,880 Speaker 5: the stores already here and like you said, l A 308 00:15:45,640 --> 00:15:48,280 Speaker 5: La New York. So tell me how this is going 309 00:15:48,320 --> 00:15:53,080 Speaker 5: to Okay, Yes, so how it's going to be different. 310 00:15:54,240 --> 00:15:57,720 Speaker 10: The concept of it was really to bring the best 311 00:15:57,880 --> 00:16:01,960 Speaker 10: of what what we are are and and and you 312 00:16:02,000 --> 00:16:04,680 Speaker 10: know a little bit about the positioning of Paris Rama, 313 00:16:04,760 --> 00:16:08,680 Speaker 10: which is so unique in the football world. We were 314 00:16:09,160 --> 00:16:14,200 Speaker 10: maybe the first club too to move into this what 315 00:16:14,360 --> 00:16:18,920 Speaker 10: we define culture, you know, and and create a bridge 316 00:16:18,960 --> 00:16:24,280 Speaker 10: for the for the young generation of fans around sport, music, art, fashion. 317 00:16:24,800 --> 00:16:27,280 Speaker 10: And the concept is really to to bring the best 318 00:16:27,400 --> 00:16:32,240 Speaker 10: of what we are doing to highlight maybe some new 319 00:16:32,320 --> 00:16:36,240 Speaker 10: and high level collaboration that we're going to launch, specially 320 00:16:36,760 --> 00:16:40,760 Speaker 10: in in Los Angeles. Yeah, it's the concept is really 321 00:16:40,840 --> 00:16:45,640 Speaker 10: too u to create a space where the community, the 322 00:16:45,720 --> 00:16:50,240 Speaker 10: local heroes, the all all the meeting that we can 323 00:16:50,520 --> 00:16:53,920 Speaker 10: organize from a business perspective, but also to connect with 324 00:16:54,680 --> 00:16:58,880 Speaker 10: our local funds, you know, is like welcome there to 325 00:16:58,880 --> 00:17:01,880 Speaker 10: to the Pejure House for two weeks. 326 00:17:02,880 --> 00:17:07,640 Speaker 5: And you said it there that our culture, music, These 327 00:17:07,640 --> 00:17:10,920 Speaker 5: are the things that you intersect and obviously every team 328 00:17:11,000 --> 00:17:14,239 Speaker 5: that's coming over from internationally is going to want to 329 00:17:14,960 --> 00:17:19,080 Speaker 5: connect with US fans. But how you're doing that differently 330 00:17:19,520 --> 00:17:22,520 Speaker 5: and capturing you know, the US audience, is that exactly 331 00:17:22,600 --> 00:17:25,159 Speaker 5: what you're leaning into the culture of it is different 332 00:17:25,200 --> 00:17:26,280 Speaker 5: for you guys, do you think. 333 00:17:27,720 --> 00:17:30,720 Speaker 10: I think that the main difference between us and the other. 334 00:17:30,840 --> 00:17:33,720 Speaker 10: And with a lot of respect, we've been like so 335 00:17:34,680 --> 00:17:38,120 Speaker 10: in advance on this one because that was a part 336 00:17:38,200 --> 00:17:40,919 Speaker 10: of the project in two thy eleven when the chairman 337 00:17:41,000 --> 00:17:46,200 Speaker 10: took over the club to make this a successful brand 338 00:17:46,320 --> 00:17:50,680 Speaker 10: on the pitch, but also asking to build this global 339 00:17:50,760 --> 00:17:54,919 Speaker 10: and life start. And at the time in two thoy eleven, 340 00:17:55,920 --> 00:17:58,919 Speaker 10: you know, the club were not like open to this 341 00:17:59,680 --> 00:18:02,200 Speaker 10: as act of creating the bridge. 342 00:18:02,240 --> 00:18:03,520 Speaker 6: So so so. 343 00:18:03,480 --> 00:18:07,640 Speaker 10: I'm not saying that what the other club doing is nothing, 344 00:18:08,200 --> 00:18:13,920 Speaker 10: but we always try to to be the first and 345 00:18:14,160 --> 00:18:18,920 Speaker 10: and and and I think that the consistency and the 346 00:18:18,960 --> 00:18:23,760 Speaker 10: credibility that we get from since twenty eleven is unique. 347 00:18:24,000 --> 00:18:29,000 Speaker 10: So yeah, that's maybe without any kind of urds. You 348 00:18:29,040 --> 00:18:34,760 Speaker 10: know that we always think differently and the position the 349 00:18:34,800 --> 00:18:38,280 Speaker 10: positioning of the club being like the Club of the 350 00:18:38,359 --> 00:18:44,080 Speaker 10: New Generation is like super important and drives all the 351 00:18:44,520 --> 00:18:47,000 Speaker 10: kind of initiative that that we're doing. 352 00:18:47,600 --> 00:18:49,439 Speaker 5: I love, yeah, I love that the Club of the 353 00:18:49,480 --> 00:18:52,560 Speaker 5: New Generation. And the interesting thing here too, and one 354 00:18:52,600 --> 00:18:55,040 Speaker 5: of the things that we're really diving in on is 355 00:18:55,040 --> 00:18:58,359 Speaker 5: is unlocking this this market in the US and in 356 00:18:58,400 --> 00:19:01,439 Speaker 5: a way that hasn't really been done before in soccer 357 00:19:01,640 --> 00:19:04,959 Speaker 5: really even here. So do you think, you know the 358 00:19:05,000 --> 00:19:09,040 Speaker 5: importance of being here and doing all these things to 359 00:19:09,200 --> 00:19:11,640 Speaker 5: unlock the US fan base is because you think it's 360 00:19:11,640 --> 00:19:15,520 Speaker 5: the next generation of fans or or the next way 361 00:19:15,560 --> 00:19:19,000 Speaker 5: to unlock new business for you guys. 362 00:19:19,520 --> 00:19:22,640 Speaker 6: Yes, of course it is. And we already know that. 363 00:19:24,280 --> 00:19:28,560 Speaker 10: Maybe soccer's soccer what we call football, but soccer ranks 364 00:19:28,600 --> 00:19:35,560 Speaker 10: a fifth in popularity in US behind American football, basketball, baseball. 365 00:19:35,440 --> 00:19:37,320 Speaker 4: And mma mma. 366 00:19:37,560 --> 00:19:37,879 Speaker 6: Sorry. 367 00:19:38,680 --> 00:19:41,119 Speaker 10: So we have a lot of works to do to 368 00:19:41,119 --> 00:19:47,800 Speaker 10: to to increase the popularity of the spot and we 369 00:19:47,880 --> 00:19:51,560 Speaker 10: believe that when it comes to this young new generation 370 00:19:51,680 --> 00:19:57,160 Speaker 10: of fans, whatever spot we're talking about is really to 371 00:19:57,400 --> 00:20:02,000 Speaker 10: go into their ecosy time in a way and create 372 00:20:02,040 --> 00:20:04,800 Speaker 10: this bridge, you know, because they are not only fan 373 00:20:04,840 --> 00:20:08,080 Speaker 10: of basketball, they are a fan of basketball and football, 374 00:20:08,119 --> 00:20:10,879 Speaker 10: of music, of fashion. So we need to really to 375 00:20:11,040 --> 00:20:18,199 Speaker 10: re enforce this this strength of the club which is 376 00:20:18,240 --> 00:20:19,600 Speaker 10: once again unique for me. 377 00:20:20,600 --> 00:20:23,760 Speaker 5: And how big you know, do you think this is 378 00:20:23,960 --> 00:20:27,479 Speaker 5: in terms of from a business perspective, if you do, 379 00:20:28,160 --> 00:20:31,840 Speaker 5: you know, break out and get this new market really 380 00:20:31,920 --> 00:20:35,600 Speaker 5: signed on to soccer to p s G. How big 381 00:20:35,680 --> 00:20:38,600 Speaker 5: can it be for you guys from a business perspective, 382 00:20:38,600 --> 00:20:40,199 Speaker 5: from a growth perspective. 383 00:20:40,600 --> 00:20:44,800 Speaker 10: It's had to to to give you some some numbers. 384 00:20:44,800 --> 00:20:47,120 Speaker 10: But the fact that we will be in town for 385 00:20:47,680 --> 00:20:53,880 Speaker 10: two weeks, and that's just once again the beginning we 386 00:20:53,880 --> 00:20:57,720 Speaker 10: we we started like earlier, maybe on a small scale, 387 00:20:57,760 --> 00:21:02,120 Speaker 10: but the fact that we will show during these two weeks, 388 00:21:02,320 --> 00:21:05,560 Speaker 10: will and not only in LA, would be a part 389 00:21:05,600 --> 00:21:11,280 Speaker 10: of the Fanatic Festival in New York. We're going to 390 00:21:11,320 --> 00:21:16,600 Speaker 10: make some really big announcement when it comes to cost 391 00:21:16,680 --> 00:21:23,000 Speaker 10: collaboration with American Brand and tis a Rama. 392 00:21:23,200 --> 00:21:25,040 Speaker 6: So how to. 393 00:21:25,119 --> 00:21:27,720 Speaker 10: Give you numbers, But what I really want to say 394 00:21:27,800 --> 00:21:31,600 Speaker 10: is like the US market is a key market for 395 00:21:31,720 --> 00:21:33,879 Speaker 10: the next couple of years for Parison Rama. 396 00:21:34,560 --> 00:21:37,040 Speaker 5: And you know, you obviously talked about the La House 397 00:21:37,080 --> 00:21:40,879 Speaker 5: and having that in LA for two weeks, but across 398 00:21:40,920 --> 00:21:44,159 Speaker 5: you know, the US. You said eighteen fan clubs. I 399 00:21:44,200 --> 00:21:48,160 Speaker 5: think you said, how are you planning on working with 400 00:21:48,200 --> 00:21:51,720 Speaker 5: them specifically in while you guys are here? 401 00:21:52,920 --> 00:21:55,200 Speaker 10: Yes, of course, and we're going to do the same 402 00:21:55,240 --> 00:21:59,280 Speaker 10: thing with the seven academy that we have all around 403 00:21:59,280 --> 00:22:05,240 Speaker 10: the US. We're going to organize some viewing party for 404 00:22:05,320 --> 00:22:08,520 Speaker 10: the game, because of course not all of them can 405 00:22:08,920 --> 00:22:12,240 Speaker 10: fly to l A. But at least we'll have different 406 00:22:12,400 --> 00:22:18,119 Speaker 10: kind of events dedicated to the fact that Paris Arama 407 00:22:18,280 --> 00:22:19,400 Speaker 10: is in the US. 408 00:22:19,760 --> 00:22:22,520 Speaker 5: And after, you know, the club World Cup is over, 409 00:22:23,119 --> 00:22:26,919 Speaker 5: how do you plan on keeping the footprint here and 410 00:22:27,040 --> 00:22:28,520 Speaker 5: keeping the excitement about the club? 411 00:22:32,200 --> 00:22:35,200 Speaker 6: That will be like on different side, I think that. 412 00:22:36,960 --> 00:22:39,200 Speaker 10: We have a strong when it comes to the community 413 00:22:39,280 --> 00:22:41,720 Speaker 10: give back to the community. We have a big plan, 414 00:22:41,840 --> 00:22:44,879 Speaker 10: you know, just not to to be there and go 415 00:22:45,000 --> 00:22:50,600 Speaker 10: back to Paris and forget about the community who needs 416 00:22:50,800 --> 00:22:54,359 Speaker 10: some helps or we have a big project around the 417 00:22:54,600 --> 00:22:59,280 Speaker 10: around the on on this path and then it will 418 00:22:59,359 --> 00:23:02,720 Speaker 10: be more on the you know, the connection that we'll have. 419 00:23:03,320 --> 00:23:06,080 Speaker 10: Look at it and not only on men's football, but 420 00:23:06,119 --> 00:23:09,800 Speaker 10: also women's football. You know that we have a women's 421 00:23:09,840 --> 00:23:14,280 Speaker 10: team as well. We have some American player, so it's 422 00:23:14,359 --> 00:23:17,840 Speaker 10: more we're going to use to create this relationship and network. 423 00:23:17,960 --> 00:23:25,639 Speaker 10: So then yeah, that's that will go along all the 424 00:23:25,680 --> 00:23:28,639 Speaker 10: announcement we're going to do over the ten days. 425 00:23:28,840 --> 00:23:30,639 Speaker 5: Yeah, I'm really glad that you brought up the women's 426 00:23:30,680 --> 00:23:33,640 Speaker 5: side there, you know, because just because this is the 427 00:23:33,800 --> 00:23:36,280 Speaker 5: men's Club World Cup and next year we're hosting the 428 00:23:36,320 --> 00:23:39,359 Speaker 5: men's World Cup, doesn't mean that it also can't benefit, 429 00:23:39,720 --> 00:23:42,800 Speaker 5: you know, the women's side. So you are so one 430 00:23:42,800 --> 00:23:45,480 Speaker 5: of your plans is to then introduce your women's team 431 00:23:45,720 --> 00:23:48,720 Speaker 5: over here. Are are you planning on having them come 432 00:23:48,760 --> 00:23:52,360 Speaker 5: play or anything like that or how do you envision. 433 00:23:52,280 --> 00:23:55,160 Speaker 6: That's that's what we're trying to achieve. 434 00:23:55,240 --> 00:24:01,680 Speaker 10: But the canon of the women's competition is also complicated, 435 00:24:01,840 --> 00:24:06,560 Speaker 10: you know, and we cannot have the full team because 436 00:24:06,560 --> 00:24:08,160 Speaker 10: they are all in their. 437 00:24:08,119 --> 00:24:09,880 Speaker 6: Own national team. 438 00:24:11,320 --> 00:24:17,359 Speaker 10: But we already get some contact with with some other 439 00:24:17,760 --> 00:24:20,639 Speaker 10: women's team and we will go from there, you know, 440 00:24:20,800 --> 00:24:23,520 Speaker 10: just to highlight the fact that maybe one plus one 441 00:24:23,960 --> 00:24:26,360 Speaker 10: it goes three, you know, even if I'm not competing 442 00:24:26,480 --> 00:24:31,160 Speaker 10: in the same area, we can we can together join 443 00:24:31,240 --> 00:24:35,840 Speaker 10: our first our strength, you know, and and and highlight this. 444 00:24:37,840 --> 00:24:40,200 Speaker 6: Football as well, women's football as well. 445 00:24:41,200 --> 00:24:45,840 Speaker 7: As PSG's Chief brand Officer, Fabian Allegra speaking with our 446 00:24:45,880 --> 00:24:48,480 Speaker 7: own Vanessa Perdomo. It's part of an ongoing series where 447 00:24:48,560 --> 00:24:51,359 Speaker 7: Vanessa speaks to some of the key decision makers and 448 00:24:51,440 --> 00:24:54,000 Speaker 7: players in the world of soccer as we get closer 449 00:24:54,040 --> 00:24:57,920 Speaker 7: to the FIFA World Cup coming to the US up. Next, 450 00:24:58,000 --> 00:25:00,800 Speaker 7: we turn the basketball and talked well none other than 451 00:25:00,840 --> 00:25:02,919 Speaker 7: Ice Cube about the new Big Three season. 452 00:25:03,000 --> 00:25:08,000 Speaker 3: You know, these guys have played for championships, so you know, 453 00:25:08,920 --> 00:25:11,679 Speaker 3: it's pretty cool to see them still with the hunger 454 00:25:11,680 --> 00:25:14,440 Speaker 3: and the fire, and that's what people want to see, 455 00:25:14,480 --> 00:25:17,600 Speaker 3: you know, people want to see real passion on the court, 456 00:25:17,760 --> 00:25:22,119 Speaker 3: not you know guys you know, worrying about you know, 457 00:25:23,480 --> 00:25:28,959 Speaker 3: managing minutes and all this kind of like crazy happening 458 00:25:29,119 --> 00:25:30,080 Speaker 3: in the NBA. 459 00:25:30,160 --> 00:25:32,840 Speaker 7: I'm Michael Barr. You're listening to the Bloomberg Business of 460 00:25:32,880 --> 00:25:35,119 Speaker 7: Sports Bloomberg Radio around the world. 461 00:25:49,160 --> 00:25:53,159 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 462 00:25:54,280 --> 00:25:56,600 Speaker 7: Thanks for joining us on the Bloomberg Business of Sports, 463 00:25:56,600 --> 00:25:58,639 Speaker 7: where we explore the big money issues in the world 464 00:25:58,680 --> 00:26:02,680 Speaker 7: the Sports Bar along with my colleague Damien sas Sauer 465 00:26:02,720 --> 00:26:05,840 Speaker 7: and Vanessa Brodomo. Joining us now is none other than 466 00:26:05,880 --> 00:26:10,520 Speaker 7: ice Cube. He's a movie star, hip hop legend, and 467 00:26:10,600 --> 00:26:14,040 Speaker 7: he's CEO and co founder of the Big Three and 468 00:26:14,080 --> 00:26:17,760 Speaker 7: its new season is just getting underway. Ice Cube, Welcome 469 00:26:17,760 --> 00:26:20,879 Speaker 7: to the Bloomberg Business of Sports. Yea, yay, thanks for 470 00:26:20,920 --> 00:26:23,160 Speaker 7: having me. Man, you're an old friend of the show. 471 00:26:23,240 --> 00:26:27,360 Speaker 7: We've talked with you before, and I'm so proud that 472 00:26:28,000 --> 00:26:32,399 Speaker 7: you started the Big Three and it's still going strong 473 00:26:32,640 --> 00:26:34,920 Speaker 7: and the new season has started. 474 00:26:35,200 --> 00:26:38,879 Speaker 3: Tell us about it. Then it started off with a bang, 475 00:26:40,240 --> 00:26:43,320 Speaker 3: I go. Last week we had two of our rookies 476 00:26:43,320 --> 00:26:46,840 Speaker 3: get into it. Yes, when I say, I'm talking about 477 00:26:46,920 --> 00:26:50,840 Speaker 3: Dwight Howard and Lance Stevenson, Dude. 478 00:26:50,640 --> 00:26:52,560 Speaker 2: They got ejected, right, I mean, and then you had 479 00:26:52,600 --> 00:26:55,080 Speaker 2: Stephen Jackson and Jalen Johnson. I mean, what's going on? 480 00:26:55,160 --> 00:26:56,439 Speaker 2: I mean there's a lot of bad blood. 481 00:26:57,880 --> 00:27:00,159 Speaker 4: Yeah, you know, these guys want to win. You know, 482 00:27:00,200 --> 00:27:00,880 Speaker 4: it's passion. 483 00:27:02,240 --> 00:27:04,760 Speaker 3: When I talk about the Big Three, I want you 484 00:27:04,840 --> 00:27:07,320 Speaker 3: to bring your game, not your name. 485 00:27:07,480 --> 00:27:11,320 Speaker 4: So as are coming to win. 486 00:27:11,720 --> 00:27:15,040 Speaker 3: And you know you could see we allow players to 487 00:27:15,080 --> 00:27:15,760 Speaker 3: be themselves. 488 00:27:15,840 --> 00:27:16,000 Speaker 7: Now. 489 00:27:16,040 --> 00:27:20,040 Speaker 3: We don't condone no fighting and touching each other. You know, 490 00:27:20,080 --> 00:27:23,680 Speaker 3: we we let them trash talk, We let we let personalities, 491 00:27:23,800 --> 00:27:27,280 Speaker 3: Uh you know free you know, you don't have to 492 00:27:27,320 --> 00:27:29,160 Speaker 3: be a robot and play in. 493 00:27:29,160 --> 00:27:29,920 Speaker 4: The Big Three. 494 00:27:30,640 --> 00:27:33,280 Speaker 3: Uh, but yeah, you know, we have to talk to 495 00:27:33,320 --> 00:27:34,840 Speaker 3: our rookies and let them know. 496 00:27:36,960 --> 00:27:39,040 Speaker 4: We don't want you to tell me to the stands. 497 00:27:39,080 --> 00:27:41,920 Speaker 4: Let's keep it on the court, have fun. 498 00:27:42,280 --> 00:27:45,439 Speaker 7: What's the same. You can take the athlete out of 499 00:27:45,440 --> 00:27:47,240 Speaker 7: the game, but you can't take the game out of 500 00:27:47,240 --> 00:27:47,879 Speaker 7: the athlete. 501 00:27:47,920 --> 00:27:49,440 Speaker 4: Man for real. 502 00:27:49,520 --> 00:27:54,480 Speaker 3: You know, these guys have played for championships, so you know, 503 00:27:55,440 --> 00:27:57,760 Speaker 3: it's it's pretty cool to see them still with the 504 00:27:57,840 --> 00:28:00,920 Speaker 3: hunger and the fire, and it's what people want to see, 505 00:28:00,960 --> 00:28:04,119 Speaker 3: you know, people want to see real passion on the court, 506 00:28:04,280 --> 00:28:09,639 Speaker 3: not you know guys you know, worrying about you know, 507 00:28:09,960 --> 00:28:15,080 Speaker 3: managing minutes and all this kind of like crazy just 508 00:28:15,080 --> 00:28:17,240 Speaker 3: happening in the NBA. 509 00:28:17,359 --> 00:28:19,879 Speaker 11: Excuse I want to ask that this year is big 510 00:28:19,920 --> 00:28:22,440 Speaker 11: for the Big Free for so many reasons. But you're 511 00:28:22,440 --> 00:28:25,359 Speaker 11: introducing a city base model for this for this year. 512 00:28:25,640 --> 00:28:28,080 Speaker 11: Why did you choose to introduce that and why take 513 00:28:28,119 --> 00:28:29,000 Speaker 11: these specific cities? 514 00:28:29,600 --> 00:28:32,359 Speaker 3: Well, every you know, every team, you know, all the 515 00:28:32,400 --> 00:28:36,120 Speaker 3: teams were centrally owned by the league, and we had 516 00:28:36,160 --> 00:28:40,320 Speaker 3: twelve teams, which is a handful, and knowing that we 517 00:28:40,360 --> 00:28:44,920 Speaker 3: want to expand one day to sixteen twenty, you know, 518 00:28:45,000 --> 00:28:51,040 Speaker 3: maybe thirty one day. We knew we couldn't keep it. 519 00:28:50,960 --> 00:28:51,920 Speaker 6: As a. 520 00:28:53,560 --> 00:28:54,719 Speaker 4: Centralized model. 521 00:28:54,880 --> 00:28:57,360 Speaker 3: You know, we knew to really blow this league out, 522 00:28:57,880 --> 00:29:00,959 Speaker 3: we're going to have to plan our flag and in 523 00:29:01,000 --> 00:29:05,040 Speaker 3: these cities around the country, you know, even around the world. 524 00:29:05,120 --> 00:29:08,760 Speaker 3: You know, we're looking at London, in Mexico City. But 525 00:29:09,760 --> 00:29:12,840 Speaker 3: we just we felt like this is the how we grow. 526 00:29:13,800 --> 00:29:17,600 Speaker 3: And you know, right now we have four great owners. 527 00:29:19,040 --> 00:29:23,600 Speaker 3: When the process of selling our other four teams, but 528 00:29:23,680 --> 00:29:29,320 Speaker 3: we got owners in Los Angeles, Houston, Detroit. 529 00:29:28,840 --> 00:29:33,520 Speaker 4: In Miami. So you know, this is the start. 530 00:29:33,400 --> 00:29:37,280 Speaker 3: Of of you know, the league actually growing. 531 00:29:38,720 --> 00:29:41,120 Speaker 2: Well, I mean, let's just talk about you know, you know, 532 00:29:41,680 --> 00:29:43,560 Speaker 2: the growth of the league, right, and let's just use 533 00:29:43,600 --> 00:29:45,200 Speaker 2: the NBA as a barometer, right. I mean, if you 534 00:29:45,200 --> 00:29:48,040 Speaker 2: look at these incredible valuations that these teams are going for, 535 00:29:48,080 --> 00:29:49,959 Speaker 2: I'm talking the NBA here. I mean, it's something like 536 00:29:50,080 --> 00:29:53,680 Speaker 2: twelve times revenue, like crazy, crazy, crazy, crazy numbers. And 537 00:29:53,760 --> 00:29:55,719 Speaker 2: you know, I'm just curious, you know, as an investor, 538 00:29:55,760 --> 00:29:57,960 Speaker 2: if you're a team owner in the Big Three, are 539 00:29:58,000 --> 00:30:00,240 Speaker 2: you are you? I mean, like it is are you 540 00:30:00,280 --> 00:30:02,760 Speaker 2: thinking about that. I mean, do you find that your 541 00:30:02,800 --> 00:30:05,719 Speaker 2: stakeholders and the team owners in the Big Three that 542 00:30:06,080 --> 00:30:08,160 Speaker 2: you know they're in it for the long haul, that 543 00:30:08,160 --> 00:30:09,640 Speaker 2: they're in it about the growth of the league and 544 00:30:09,640 --> 00:30:11,440 Speaker 2: the love of basketball, or are they in it like 545 00:30:11,480 --> 00:30:14,240 Speaker 2: a lot of these private equity guys are to generate 546 00:30:14,280 --> 00:30:16,040 Speaker 2: a profit. I'm just curious to hear your thoughts on that. 547 00:30:16,880 --> 00:30:19,880 Speaker 3: No, it's great, we got we got guys I think 548 00:30:19,920 --> 00:30:23,240 Speaker 3: that are really both. You know, they love the game, 549 00:30:24,320 --> 00:30:28,040 Speaker 3: they saw that this was a great investment, and they 550 00:30:28,200 --> 00:30:32,880 Speaker 3: saw that you know, their their money could you know, 551 00:30:33,040 --> 00:30:38,720 Speaker 3: double triple, quadruple very quick. And so you know it's 552 00:30:38,800 --> 00:30:40,960 Speaker 3: smart all the way around. But we want people who 553 00:30:41,000 --> 00:30:44,960 Speaker 3: can help us grow the league, so everybody's additive. We're 554 00:30:45,000 --> 00:30:49,680 Speaker 3: not just grabbing you know, celebrity money or you know, 555 00:30:51,160 --> 00:30:54,560 Speaker 3: you know, any kind of family funds or things like that. 556 00:30:54,720 --> 00:30:58,080 Speaker 3: You know, we're really looking for people who want to win, 557 00:30:58,440 --> 00:31:04,760 Speaker 3: want to run us a pro sports team, and you know, 558 00:31:05,720 --> 00:31:09,520 Speaker 3: want to win the Doctor J Trophy, which is our 559 00:31:09,600 --> 00:31:15,560 Speaker 3: championship broken and so that's what's gonna make the league great. 560 00:31:15,720 --> 00:31:17,560 Speaker 3: You know, it's really gonna be about who can put 561 00:31:17,560 --> 00:31:22,160 Speaker 3: the best team together. To win, and you know, I 562 00:31:22,200 --> 00:31:24,920 Speaker 3: think everything else will falling place. You know, it's still 563 00:31:24,960 --> 00:31:28,400 Speaker 3: such a young league. If you can kind of project 564 00:31:28,640 --> 00:31:33,440 Speaker 3: in ten years or even fifteen where we're gonna be. 565 00:31:33,560 --> 00:31:34,360 Speaker 4: I forget about it. 566 00:31:34,400 --> 00:31:37,320 Speaker 3: And you know how much the value of our teams, 567 00:31:37,400 --> 00:31:41,240 Speaker 3: you know it's gonna it's gonna be astronomical. 568 00:31:41,480 --> 00:31:44,680 Speaker 2: Well, Michael, do you remember just about two maybe three 569 00:31:44,760 --> 00:31:46,760 Speaker 2: years ago when we had Ice on the air and 570 00:31:46,880 --> 00:31:49,240 Speaker 2: Ice was afraid to talk about this because he's afraid 571 00:31:49,280 --> 00:31:52,000 Speaker 2: the NBA was gonna come down, and because they view 572 00:31:52,080 --> 00:31:54,440 Speaker 2: him as a competitor. And now look at Big Three, 573 00:31:54,520 --> 00:31:56,640 Speaker 2: I mean how it stands on it to a CBS. 574 00:31:56,720 --> 00:31:57,920 Speaker 2: I mean, like, are you kidding me? 575 00:31:58,000 --> 00:31:58,240 Speaker 4: Ice? 576 00:31:58,280 --> 00:32:00,680 Speaker 2: I mean, look at what you've done. Look at the sponsorships, 577 00:32:00,680 --> 00:32:03,280 Speaker 2: your sponsors, your corporate sponsors. I mean, the growth of 578 00:32:03,320 --> 00:32:05,360 Speaker 2: the league in such a short period of time, just 579 00:32:05,400 --> 00:32:08,040 Speaker 2: two three years is it's really I don't think I've 580 00:32:08,040 --> 00:32:09,480 Speaker 2: seen anything like it. 581 00:32:09,240 --> 00:32:10,160 Speaker 4: It's amazing. 582 00:32:10,240 --> 00:32:14,600 Speaker 3: You know, not since UFC has a league been able 583 00:32:14,640 --> 00:32:19,080 Speaker 3: to really stick like the Big Three. And we are 584 00:32:19,200 --> 00:32:22,959 Speaker 3: proud of our great sponsors. You know, Monster Energy been 585 00:32:23,120 --> 00:32:27,480 Speaker 3: there for a long time, but now we got you know, 586 00:32:27,760 --> 00:32:37,560 Speaker 3: Starter and eminem Mars, they have PNG Corps Capital one 587 00:32:38,040 --> 00:32:39,600 Speaker 3: dude wipes, you know what I mean. 588 00:32:39,680 --> 00:32:40,040 Speaker 4: It's like. 589 00:32:41,760 --> 00:32:47,240 Speaker 3: Stuff, and you know, we expect that to grow. We 590 00:32:47,360 --> 00:32:53,040 Speaker 3: do have the best product in the summer. And you know, 591 00:32:53,080 --> 00:32:58,160 Speaker 3: we hit those you know fans who you know after 592 00:32:58,160 --> 00:33:01,680 Speaker 3: the NBA Finals, they really waiting for the NFL to start. 593 00:33:01,800 --> 00:33:05,400 Speaker 3: So it's a lot of fans out there just you know, 594 00:33:05,520 --> 00:33:07,080 Speaker 3: waiting to be entertained. 595 00:33:07,480 --> 00:33:09,920 Speaker 4: And we think we got it with the Big Three? 596 00:33:10,840 --> 00:33:16,520 Speaker 7: Are you reaching out more to some w NBA stars? 597 00:33:17,360 --> 00:33:20,560 Speaker 7: And I was thinking about this because Caitlin Clark. Yeah, 598 00:33:20,600 --> 00:33:23,560 Speaker 7: I mean, right now she's with Indiana, but boy, if 599 00:33:23,560 --> 00:33:26,960 Speaker 7: she came to the Big three, she would clean up. 600 00:33:27,080 --> 00:33:29,320 Speaker 2: I mean, right, the average n WNB salary is one 601 00:33:29,360 --> 00:33:31,280 Speaker 2: hundred and fifty, not even one hundred and fifty, one 602 00:33:31,320 --> 00:33:33,400 Speaker 2: thousand dollars a year. I mean, she goes to the 603 00:33:33,400 --> 00:33:35,600 Speaker 2: Big three, I mean, forget about it, right, I mean, 604 00:33:35,680 --> 00:33:36,680 Speaker 2: I mean that's a good. 605 00:33:36,520 --> 00:33:37,200 Speaker 4: Point, Michael. 606 00:33:38,560 --> 00:33:42,760 Speaker 3: Coming out of college, we offered her a two year 607 00:33:42,920 --> 00:33:48,640 Speaker 3: contract five million dollars a year, you know, plus little 608 00:33:48,640 --> 00:33:49,680 Speaker 3: equity here and there. 609 00:33:50,400 --> 00:33:53,800 Speaker 7: Hell, I'll play for you for that, you, Michael, bar. 610 00:33:55,440 --> 00:33:56,880 Speaker 4: We knew Johun Loocke. 611 00:33:57,800 --> 00:34:00,920 Speaker 3: You know, we we we heard from our sponsors that 612 00:34:01,000 --> 00:34:04,600 Speaker 3: it would unlock you know, millions of dollars if she 613 00:34:04,720 --> 00:34:07,880 Speaker 3: did that, kind of like a you know, a Billy 614 00:34:08,040 --> 00:34:13,480 Speaker 3: Jean King moment. But you know, her agents kind of 615 00:34:13,480 --> 00:34:17,839 Speaker 3: blocked us from speaking with her and her family, so 616 00:34:18,040 --> 00:34:21,479 Speaker 3: we wasn't able to really bring that to light. But 617 00:34:21,480 --> 00:34:23,520 Speaker 3: but yeah, we did make the offer. If you if 618 00:34:23,560 --> 00:34:27,960 Speaker 3: you go back and look, you'll see us, uh make 619 00:34:28,000 --> 00:34:31,600 Speaker 3: that real offer, you know, because we knew how big 620 00:34:31,640 --> 00:34:34,080 Speaker 3: it would be for the Big Three, and we thought 621 00:34:34,160 --> 00:34:38,040 Speaker 3: she could have some success because of her style of play. 622 00:34:38,560 --> 00:34:41,960 Speaker 3: You know, she could shoot from far, she can you know, 623 00:34:42,040 --> 00:34:44,960 Speaker 3: really run the run the game point guard wise, and 624 00:34:45,040 --> 00:34:48,920 Speaker 3: we've had some small point guards have success in the 625 00:34:48,960 --> 00:34:52,400 Speaker 3: Big Three, so we felt like, you know, she actually 626 00:34:52,440 --> 00:34:54,680 Speaker 3: really had a shot to be successful. 627 00:34:55,080 --> 00:34:56,080 Speaker 4: Wasn't just a gimmick. 628 00:34:57,520 --> 00:34:59,800 Speaker 11: Well, the hard thing there is obviously she's competing in 629 00:34:59,800 --> 00:35:01,359 Speaker 11: the I mean w n B. At the same time, 630 00:35:01,400 --> 00:35:03,160 Speaker 11: I know what you mean. It it would have been 631 00:35:04,400 --> 00:35:07,960 Speaker 11: you know more profitable for her salary wise to play 632 00:35:07,960 --> 00:35:13,080 Speaker 11: in the big Street. You're okay, interesting, Yeah. 633 00:35:15,200 --> 00:35:20,240 Speaker 4: Playing three and keep you know w n B a contract. 634 00:35:20,320 --> 00:35:22,000 Speaker 4: We was gonna make it work. 635 00:35:22,040 --> 00:35:25,000 Speaker 3: We only had one game that was a conflict, and 636 00:35:25,080 --> 00:35:27,880 Speaker 3: when we looked at the schedule, well there was it 637 00:35:28,040 --> 00:35:29,000 Speaker 3: was last year. 638 00:35:29,120 --> 00:35:34,239 Speaker 4: Actually it was one game that was a conflict. We 639 00:35:34,440 --> 00:35:35,000 Speaker 4: made the offer. 640 00:35:35,520 --> 00:35:38,080 Speaker 11: So do you think you'll look at other WNB players 641 00:35:38,120 --> 00:35:40,640 Speaker 11: that I retired WNBA players who wouldn't have to make 642 00:35:40,719 --> 00:35:43,000 Speaker 11: that decision to continue to play both at the same 643 00:35:43,080 --> 00:35:45,800 Speaker 11: time they're done. Like how Dwight Howard's doing after this? 644 00:35:47,120 --> 00:35:49,320 Speaker 4: I don't know, because you know, with her it was 645 00:35:49,400 --> 00:35:50,600 Speaker 4: a special situation. 646 00:35:50,880 --> 00:35:54,400 Speaker 3: Like I said, you know, our sponsor has made it 647 00:35:54,520 --> 00:35:59,880 Speaker 3: clear that getting her would unlock millions of dollars and sponsorships, 648 00:36:00,200 --> 00:36:02,920 Speaker 3: So we don't know if it's going to be another 649 00:36:03,000 --> 00:36:08,480 Speaker 3: player with that impact. That being said, our player captains 650 00:36:08,600 --> 00:36:11,320 Speaker 3: get to pick who they want to play with, so 651 00:36:12,480 --> 00:36:17,720 Speaker 3: we don't have general managers. The captain of the team 652 00:36:18,520 --> 00:36:21,320 Speaker 3: picks his co captains. So if we ever had a 653 00:36:21,480 --> 00:36:26,319 Speaker 3: captain pick a w NBA player, she would be in lee. 654 00:36:26,520 --> 00:36:28,600 Speaker 4: Oh wow, that's awesome. Came on. 655 00:36:30,239 --> 00:36:33,600 Speaker 7: What have you learned when we first talked to you 656 00:36:33,800 --> 00:36:38,560 Speaker 7: as you started the Big Three? Today? As a business model? 657 00:36:38,880 --> 00:36:45,160 Speaker 7: Wise attention that you have paid a lot of time 658 00:36:45,280 --> 00:36:47,279 Speaker 7: and effort to to make the Big Three work. 659 00:36:48,440 --> 00:36:51,880 Speaker 4: Oh wow, you know it takes. 660 00:36:53,880 --> 00:36:57,840 Speaker 3: It takes a great team, of course, a very very talented, 661 00:36:58,920 --> 00:37:05,600 Speaker 3: hard work and people who are relentless. But but also 662 00:37:05,760 --> 00:37:08,480 Speaker 3: you know what I learned is, you know, a lot 663 00:37:08,520 --> 00:37:14,880 Speaker 3: of money people like to just meet they bored, they 664 00:37:14,960 --> 00:37:17,520 Speaker 3: got their money, and you know, why not have a 665 00:37:17,600 --> 00:37:20,560 Speaker 3: meeting with ice Key, you know, to tell him no, 666 00:37:21,200 --> 00:37:21,799 Speaker 3: you know what I mean. 667 00:37:22,000 --> 00:37:22,560 Speaker 4: So it's like. 668 00:37:24,800 --> 00:37:26,000 Speaker 2: That that was. 669 00:37:26,160 --> 00:37:32,880 Speaker 3: Surprising to me, but I understand, you know, So we 670 00:37:33,080 --> 00:37:37,960 Speaker 3: try to avoid that as much as possible. And you know, 671 00:37:38,080 --> 00:37:40,239 Speaker 3: at the end of the day, it is what it is, 672 00:37:41,480 --> 00:37:45,960 Speaker 3: and we want people who are passionate. And you know, 673 00:37:46,000 --> 00:37:48,960 Speaker 3: if we get that, you know, we feel like we're 674 00:37:49,000 --> 00:37:52,680 Speaker 3: the perfect partners to work with because we're you know, 675 00:37:54,400 --> 00:37:59,000 Speaker 3: we don't we don't have to be right. We just 676 00:37:59,080 --> 00:37:59,880 Speaker 3: want to get it right. 677 00:38:00,800 --> 00:38:03,640 Speaker 7: Ice Cube, you are a friend of the show and 678 00:38:03,840 --> 00:38:07,239 Speaker 7: you are welcome anytime you want to come talk with us. Man, 679 00:38:07,320 --> 00:38:10,520 Speaker 7: we really do appreciate it. Thank you, appreciate y'all. Layer 680 00:38:10,920 --> 00:38:14,520 Speaker 7: special special thank you to ice Cube for joining us now. 681 00:38:14,560 --> 00:38:16,520 Speaker 7: If you missed any of that conversation, be sure to 682 00:38:16,600 --> 00:38:19,280 Speaker 7: check it out now on the Bloomberg Business of Sports podcast. 683 00:38:19,680 --> 00:38:23,480 Speaker 7: Subscribe now on Apple, Spotify or wherever you get your podcasts. 684 00:38:24,120 --> 00:38:26,759 Speaker 7: And that does it for this edition of The Bloomberg 685 00:38:26,840 --> 00:38:30,480 Speaker 7: Business of Sports. For my colleagues Damien Sasaur and Vanessa Perdomo, 686 00:38:30,520 --> 00:38:32,920 Speaker 7: I'm Michael Barr. Tune in again next week for the 687 00:38:33,000 --> 00:38:35,840 Speaker 7: latest on the stories moving big money in the world sports. 688 00:38:36,320 --> 00:38:39,160 Speaker 7: You are listening to The Bloomberg Business of Sports from 689 00:38:39,160 --> 00:38:41,040 Speaker 7: Bloomberger Radio around the world.