1
00:00:02,440 --> 00:00:06,760
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:07,680 --> 00:00:10,240
Speaker 2: This is Bloomberg Business of Sports.

3
00:00:10,400 --> 00:00:13,200
Speaker 3: Business of Sports can be intimidating for hard for a

4
00:00:13,280 --> 00:00:14,200
Speaker 3: start to break into.

5
00:00:14,280 --> 00:00:17,279
Speaker 4: We really appreciate where our owners are actually there, you know,

6
00:00:17,360 --> 00:00:18,880
Speaker 4: with us through the journey.

7
00:00:18,480 --> 00:00:22,160
Speaker 1: Teams ours especially then very intentional to diversify at all

8
00:00:22,239 --> 00:00:23,600
Speaker 1: levels of the company. Bye Wing.

9
00:00:23,520 --> 00:00:26,720
Speaker 5: In golden years for the NFL and college football.

10
00:00:26,400 --> 00:00:29,480
Speaker 4: Our demographic reach has continued to expande.

11
00:00:29,520 --> 00:00:33,160
Speaker 1: This is going to be really unlocking the streaming platform

12
00:00:33,240 --> 00:00:34,200
Speaker 1: for sports fans.

13
00:00:34,280 --> 00:00:35,640
Speaker 2: Sports evaluations are rising.

14
00:00:35,800 --> 00:00:36,760
Speaker 3: We'll see when they peak.

15
00:00:36,800 --> 00:00:39,440
Speaker 6: You don't have to be the best in your sports

16
00:00:39,440 --> 00:00:42,320
Speaker 6: and make a whole ton of money.

17
00:00:42,360 --> 00:00:45,280
Speaker 2: Bloomberg Business of Sports from Bloomberg Radio.

18
00:00:46,640 --> 00:00:49,360
Speaker 3: Hello, this is the Bloomberg Business of Sports Show. Will

19
00:00:49,400 --> 00:00:51,680
Speaker 3: we explore the big money issues the world of sports?

20
00:00:51,920 --> 00:00:56,000
Speaker 3: Michael Barr along with my colleague Scarlett fo and Damian Sassauer.

21
00:00:56,360 --> 00:01:00,000
Speaker 3: We have a big show today. The NFL's regular season

22
00:01:00,120 --> 00:01:04,360
Speaker 3: and is getting underway this weekend. We'll check in on

23
00:01:04,520 --> 00:01:07,560
Speaker 3: the team everyone in the league is chasing, the Kansas

24
00:01:07,560 --> 00:01:11,759
Speaker 3: City Chiefs. We'll hear from Chiefs President Mark Donovan as

25
00:01:11,800 --> 00:01:13,959
Speaker 3: the team seeks out another Super Bowl win.

26
00:01:14,360 --> 00:01:18,160
Speaker 4: It's amazing the knowledge that our fan base across the

27
00:01:18,160 --> 00:01:23,039
Speaker 4: world has of our franchise and of our experience at Arrowhead.

28
00:01:23,720 --> 00:01:26,479
Speaker 4: And you know, I've heard from so many fans who

29
00:01:26,880 --> 00:01:29,479
Speaker 4: you know, the bucket list is to get to DJ Field.

30
00:01:29,840 --> 00:01:33,400
Speaker 4: They have to do that and it's because of the experience.

31
00:01:33,600 --> 00:01:37,360
Speaker 3: We'll also hear from Clark and Dan Hunt, co owners

32
00:01:37,400 --> 00:01:40,240
Speaker 3: of the Chiefs. It's from one of the latest features

33
00:01:40,240 --> 00:01:41,759
Speaker 3: from Bloomberg Big Take.

34
00:01:41,880 --> 00:01:45,720
Speaker 5: There's been so much new wealth generation across the globe

35
00:01:45,959 --> 00:01:49,600
Speaker 5: and the NFL for so long traditionally was just an

36
00:01:49,600 --> 00:01:52,760
Speaker 5: American ownership and an American game, if you will. But

37
00:01:53,000 --> 00:01:55,520
Speaker 5: you know, the market and how the NFL has thought

38
00:01:55,560 --> 00:01:59,880
Speaker 5: about growing its businesses is targeted, you know, football globally.

39
00:02:00,120 --> 00:02:01,920
Speaker 3: All that and more is on the way on the

40
00:02:01,920 --> 00:02:05,480
Speaker 3: Bloomberg Business of Sports. But first, after going back and

41
00:02:05,520 --> 00:02:08,960
Speaker 3: forth for a while, NFL owners finally voted to allow

42
00:02:09,040 --> 00:02:12,799
Speaker 3: private equity firms to buy stakes in teams. To take

43
00:02:12,880 --> 00:02:15,760
Speaker 3: us deeper into what the move means and how it

44
00:02:15,840 --> 00:02:19,720
Speaker 3: could shape the league, we welcome Goldman Sachs executive Nicole

45
00:02:19,840 --> 00:02:23,840
Speaker 3: poland Ross. She's regional head of Goldman's New York private

46
00:02:23,880 --> 00:02:30,359
Speaker 3: wealth management unit and PWM Sports and Entertainment Solutions Leader, Nicole,

47
00:02:30,720 --> 00:02:33,200
Speaker 3: Welcome to the Bloomberg Business of Sports. I wish I

48
00:02:33,240 --> 00:02:35,760
Speaker 3: had some money to invest now for the Lions.

49
00:02:37,240 --> 00:02:39,560
Speaker 7: It's a process. It's a process, sounds like there's something

50
00:02:39,600 --> 00:02:41,840
Speaker 7: to look forward to. But it's a pleasure to be

51
00:02:41,919 --> 00:02:44,040
Speaker 7: here with you all. Thank you for having me.

52
00:02:44,320 --> 00:02:47,440
Speaker 3: Thank you now. First, I should add that only a

53
00:02:47,520 --> 00:02:51,639
Speaker 3: few private equity firms are involved in this because the

54
00:02:51,760 --> 00:02:52,760
Speaker 3: league had to sign.

55
00:02:52,639 --> 00:02:55,600
Speaker 7: Off on There is a short list of private equity

56
00:02:55,639 --> 00:02:58,840
Speaker 7: firms that have been identified to participate at the beginning.

57
00:02:59,120 --> 00:03:01,840
Speaker 7: That's a bit different than the approach that other leagues

58
00:03:01,880 --> 00:03:05,200
Speaker 7: have taken, but you're absolutely right. There are a few

59
00:03:05,280 --> 00:03:10,360
Speaker 7: organizations with experience and size that have been identified as

60
00:03:10,400 --> 00:03:12,440
Speaker 7: they begin this journey.

61
00:03:12,280 --> 00:03:14,560
Speaker 1: And these investors can buy stakes and as many as

62
00:03:14,600 --> 00:03:17,840
Speaker 1: six teams at once, although their stakes are capped at

63
00:03:18,000 --> 00:03:21,640
Speaker 1: ten percent versus say thirty percent in the NBA. Nicole.

64
00:03:21,960 --> 00:03:24,840
Speaker 1: We spoke with the NFL's executive vice president, Joseph Clair,

65
00:03:24,960 --> 00:03:28,760
Speaker 1: and he made clear that discussions on allowing private equity

66
00:03:28,800 --> 00:03:31,760
Speaker 1: to invest in teams actually began in twenty eighteen, about

67
00:03:31,760 --> 00:03:35,080
Speaker 1: six years ago. From your perspective, how has demand from

68
00:03:35,120 --> 00:03:39,440
Speaker 1: institutional investors to invest in the NFL teams evolved during

69
00:03:39,480 --> 00:03:39,960
Speaker 1: that time.

70
00:03:40,880 --> 00:03:45,640
Speaker 7: It's really happened pretty rapidly, and just again as to

71
00:03:45,760 --> 00:03:50,040
Speaker 7: orient the perspective that I have, in addition to the

72
00:03:50,080 --> 00:03:53,400
Speaker 7: perspective that our colleagues and investment banking have as they

73
00:03:54,120 --> 00:03:59,960
Speaker 7: work with clients around financing stadiums and other strategic priorities

74
00:04:00,320 --> 00:04:04,600
Speaker 7: from a private wealth management perspective, over the past several years,

75
00:04:04,680 --> 00:04:08,760
Speaker 7: the interest that our clients have had and getting exposure

76
00:04:08,880 --> 00:04:13,440
Speaker 7: to the space has increased meaningfully. We work with more

77
00:04:13,520 --> 00:04:16,919
Speaker 7: than one hundred team owners and so importantly we've heard

78
00:04:17,040 --> 00:04:21,320
Speaker 7: from many of them how excited they were to have

79
00:04:21,480 --> 00:04:27,640
Speaker 7: additional capital coming into the league. As you know, valuations

80
00:04:27,680 --> 00:04:32,720
Speaker 7: have increased meaningfully, and the ability to have additional liquidity,

81
00:04:32,800 --> 00:04:37,360
Speaker 7: particularly as it relates to the limited partners, is something

82
00:04:37,400 --> 00:04:39,720
Speaker 7: that many team owners have been looking forward to over

83
00:04:39,760 --> 00:04:40,640
Speaker 7: the past several years.

84
00:04:40,880 --> 00:04:42,479
Speaker 8: Nicole, if you could just walk me through this, I

85
00:04:42,600 --> 00:04:46,479
Speaker 8: understand that NFL franchises would vote in favor of having

86
00:04:46,520 --> 00:04:49,520
Speaker 8: private equity investors. Number One, it increases the valuation of

87
00:04:49,120 --> 00:04:52,960
Speaker 8: their franchises so they can raise more money for liquidity purposes.

88
00:04:52,960 --> 00:04:55,720
Speaker 8: They could cash out, etc. Yes, they can also raise

89
00:04:55,720 --> 00:04:58,560
Speaker 8: more money to help renovate or build stadiums. I get that,

90
00:04:59,080 --> 00:05:01,120
Speaker 8: But talk to me about of state planning. I mean,

91
00:05:01,200 --> 00:05:03,920
Speaker 8: let's talk about Virginia McCaskey, the one hundred and one

92
00:05:04,000 --> 00:05:06,599
Speaker 8: year old owner of the Chicago Bears. She has one

93
00:05:06,720 --> 00:05:09,720
Speaker 8: living child, the tax burden that that would place if

94
00:05:09,720 --> 00:05:12,800
Speaker 8: she were to pass the estate. So is that the

95
00:05:12,839 --> 00:05:15,400
Speaker 8: real reason that the NFL is making this change.

96
00:05:15,880 --> 00:05:16,560
Speaker 4: I think that.

97
00:05:16,760 --> 00:05:23,320
Speaker 9: There certainly if you look at the ownership interest within

98
00:05:23,360 --> 00:05:28,240
Speaker 9: this space and in some families, the generations that are

99
00:05:29,040 --> 00:05:36,120
Speaker 9: investors and owners of the teams, it has certainly been a.

100
00:05:34,920 --> 00:05:38,479
Speaker 7: Factor as it relates to some of the transactions we've

101
00:05:38,480 --> 00:05:43,040
Speaker 7: seen across leagues and across teams, as well as a

102
00:05:43,240 --> 00:05:46,800
Speaker 7: factor in terms of one of the ways that we

103
00:05:46,880 --> 00:05:50,520
Speaker 7: help our clients in terms of thinking about structures that

104
00:05:50,640 --> 00:05:53,119
Speaker 7: can be put in place when thinking about tax planning

105
00:05:53,160 --> 00:05:55,839
Speaker 7: and truck and estate planning. So I certainly think that

106
00:05:56,080 --> 00:05:59,920
Speaker 7: it is a consideration, and many clients will think about

107
00:06:00,040 --> 00:06:04,640
Speaker 7: out liquidity, tax considerations, et cetera as it relates to

108
00:06:05,000 --> 00:06:10,200
Speaker 7: the tax state and a state planning considerations that they'll have,

109
00:06:10,320 --> 00:06:14,320
Speaker 7: particularly across generations. I think one of the big drivers though,

110
00:06:14,360 --> 00:06:19,240
Speaker 7: is really around the liquidity for minority stakes. If you

111
00:06:19,279 --> 00:06:22,800
Speaker 7: think about it today, with the average valuation in the

112
00:06:22,920 --> 00:06:26,560
Speaker 7: NFL approaching six billion dollars double where it was just

113
00:06:26,640 --> 00:06:31,760
Speaker 7: five years ago, the number of individuals who are able

114
00:06:31,839 --> 00:06:35,559
Speaker 7: to be a sole owner it's a pretty short list.

115
00:06:35,760 --> 00:06:37,880
Speaker 7: It's a pretty short list of folks who can have

116
00:06:37,960 --> 00:06:42,720
Speaker 7: that majority stake, and so the ability to have greater

117
00:06:43,480 --> 00:06:48,880
Speaker 7: access and greater ownership diversification, I think is a catalyst

118
00:06:48,960 --> 00:06:51,279
Speaker 7: as well as the valuations have continued to increase.

119
00:06:51,600 --> 00:06:53,760
Speaker 1: One thing we should mention that in addition to the

120
00:06:53,839 --> 00:06:57,640
Speaker 1: three PE firms who are pre approved to participate in investments,

121
00:06:58,080 --> 00:07:02,799
Speaker 1: there's also a consortium comprised of Blackstone, Carlisle, CBC, Dynasty Equity,

122
00:07:03,080 --> 00:07:05,400
Speaker 1: and Loutis, which is a platform founded and led by

123
00:07:05,520 --> 00:07:09,000
Speaker 1: Pro Football Hall of Famer Curtis Martin Nicole. I know

124
00:07:09,080 --> 00:07:13,720
Speaker 1: that your division, you work with athletes who have clearly

125
00:07:13,760 --> 00:07:17,080
Speaker 1: significantly increasing levels of wealth, whether they are you know,

126
00:07:17,640 --> 00:07:20,160
Speaker 1: athletes just starting out or athletes who have been at

127
00:07:20,200 --> 00:07:22,720
Speaker 1: it for a long time. What kind of demand is

128
00:07:22,760 --> 00:07:28,720
Speaker 1: there from former players or current players about investing in

129
00:07:28,760 --> 00:07:31,280
Speaker 1: the NFL or in any sports league for that matter.

130
00:07:31,520 --> 00:07:34,160
Speaker 7: It's really been interesting. It's you know, if you think

131
00:07:34,160 --> 00:07:38,520
Speaker 7: about our clients in general, they often like to invest

132
00:07:38,560 --> 00:07:41,760
Speaker 7: in the thing that they know well, and that certainly

133
00:07:41,880 --> 00:07:45,880
Speaker 7: translates to our clients who are athletes, and I would

134
00:07:45,920 --> 00:07:48,520
Speaker 7: say the trend that we've seen from those clients over

135
00:07:48,560 --> 00:07:52,480
Speaker 7: the past several years has been to gradually get exposure

136
00:07:52,840 --> 00:07:56,960
Speaker 7: and so for some clients that means the local soccer

137
00:07:57,040 --> 00:08:00,920
Speaker 7: league that allows them to get connected to the community

138
00:08:01,480 --> 00:08:05,720
Speaker 7: and to have a presence in a growing and a

139
00:08:05,760 --> 00:08:09,880
Speaker 7: growing sport. For other clients, it has meant thinking about

140
00:08:10,160 --> 00:08:15,880
Speaker 7: opportunities more globally, looking at international trends, and for some

141
00:08:16,280 --> 00:08:22,760
Speaker 7: as you have seen, the interest in investing in women's sports,

142
00:08:22,800 --> 00:08:25,800
Speaker 7: particularly the in the w NBA has been an area

143
00:08:25,800 --> 00:08:28,240
Speaker 7: of interest and focus there as well, and so it's

144
00:08:28,560 --> 00:08:33,319
Speaker 7: really great to see the athletes wanting to both support

145
00:08:33,480 --> 00:08:38,600
Speaker 7: and trends translate the passion that they have for sports

146
00:08:38,640 --> 00:08:41,880
Speaker 7: into investment, both to help grow in industry, the industry

147
00:08:41,880 --> 00:08:44,760
Speaker 7: that they're passionate about, and also support communities that they

148
00:08:44,760 --> 00:08:45,800
Speaker 7: care deeply about as well.

149
00:08:46,040 --> 00:08:48,040
Speaker 8: Nicole, I wonder if you could help me better understand,

150
00:08:48,640 --> 00:08:51,440
Speaker 8: you know, we have a lot of very wealthy former

151
00:08:51,640 --> 00:08:54,920
Speaker 8: NFL players like Tom Brady and Chris Collins, where people

152
00:08:54,920 --> 00:08:58,239
Speaker 8: who have a voice, people who are either sports commentators,

153
00:08:58,280 --> 00:09:02,080
Speaker 8: they're you know, you know, they they're visible, and I'm

154
00:09:02,120 --> 00:09:06,319
Speaker 8: curious what the rules around their ability to participate as

155
00:09:06,320 --> 00:09:08,720
Speaker 8: an owner of a franchise are if you follow what

156
00:09:08,720 --> 00:09:11,679
Speaker 8: I'm saying. Are there restrictions against people who are I

157
00:09:11,720 --> 00:09:13,200
Speaker 8: guess are in the public eye who can kind of

158
00:09:13,240 --> 00:09:16,560
Speaker 8: sway opinions towards their franchisees, you know? I mean, is

159
00:09:16,559 --> 00:09:19,360
Speaker 8: that a consideration now, Like, is that something that the

160
00:09:19,440 --> 00:09:21,679
Speaker 8: NFL is looking at, Like, oh, Tom Brady camp by

161
00:09:21,720 --> 00:09:23,680
Speaker 8: a team because he works for Fox? Is that is

162
00:09:23,679 --> 00:09:25,040
Speaker 8: that something that's been addressed.

163
00:09:25,280 --> 00:09:30,160
Speaker 7: I don't know specifically how that's been addressed in recent changes.

164
00:09:30,679 --> 00:09:34,200
Speaker 7: I know that there are considerations for sure in terms

165
00:09:34,240 --> 00:09:40,120
Speaker 7: of whether athletes can have ownership stakes in their existing league. Again,

166
00:09:40,559 --> 00:09:43,800
Speaker 7: whether they're active or former players certainly play a role

167
00:09:43,840 --> 00:09:48,120
Speaker 7: in that. There's certainly much more flexibility than former players

168
00:09:48,520 --> 00:09:51,000
Speaker 7: having the opportunity to invest, and we see many, many

169
00:09:51,000 --> 00:09:56,280
Speaker 7: examples of that. As it relates to the ability for

170
00:09:56,520 --> 00:10:00,400
Speaker 7: a former player to leverage their platform. I think that's

171
00:10:00,520 --> 00:10:03,319
Speaker 7: very hard to manage. If you think about some of

172
00:10:03,360 --> 00:10:07,640
Speaker 7: the former athletes who have platforms in media, whether it's

173
00:10:07,679 --> 00:10:11,480
Speaker 7: through broadcast, etc. It's hard for them to limit the

174
00:10:11,520 --> 00:10:14,640
Speaker 7: passion they have for their home team, and so I

175
00:10:14,640 --> 00:10:17,560
Speaker 7: do think that's a consideration in terms of how that

176
00:10:17,720 --> 00:10:23,400
Speaker 7: translates to the team owners or the considerations that the

177
00:10:23,400 --> 00:10:26,320
Speaker 7: teams will have. As you know, for the NFL, they

178
00:10:26,360 --> 00:10:30,160
Speaker 7: have included language and their agreement where they'll be looking

179
00:10:30,200 --> 00:10:34,240
Speaker 7: through to individual investors and have a voice there, which

180
00:10:34,720 --> 00:10:38,559
Speaker 7: it's definitely something I don't believe we've seen in other leagues.

181
00:10:38,960 --> 00:10:41,920
Speaker 7: So that will be a factor that will be interesting

182
00:10:41,960 --> 00:10:44,040
Speaker 7: to see how that evolves as well.

183
00:10:44,080 --> 00:10:48,840
Speaker 1: Increasingly you have individual investors as well as institutional investors

184
00:10:48,840 --> 00:10:51,680
Speaker 1: seeing sports as an asset class part of their portfolio.

185
00:10:52,040 --> 00:10:54,520
Speaker 1: And one thing the NFL made clear is that there's

186
00:10:54,559 --> 00:10:58,480
Speaker 1: a six year time limit or I should say minimum

187
00:10:58,600 --> 00:11:02,440
Speaker 1: six year investment in at teams. When pe firms tend

188
00:11:02,440 --> 00:11:05,199
Speaker 1: to work on three to four year timelines. I'm curious

189
00:11:05,520 --> 00:11:07,840
Speaker 1: for the client's you serve, Nicole, what is your time

190
00:11:07,840 --> 00:11:10,280
Speaker 1: horizon when they're looking at investing in sports.

191
00:11:10,720 --> 00:11:13,800
Speaker 7: It really depends on the investor, and it's a great

192
00:11:13,960 --> 00:11:18,360
Speaker 7: question because I do think there is a distinction that's important.

193
00:11:18,720 --> 00:11:23,600
Speaker 7: So historically you've had family offices, family ownership interest of teams,

194
00:11:23,840 --> 00:11:26,360
Speaker 7: and they tend to have a very long investment horizon.

195
00:11:27,000 --> 00:11:32,760
Speaker 7: And increasingly you are seeing diversification in that ownership group

196
00:11:32,840 --> 00:11:37,240
Speaker 7: where you're seeing, yes, that same passion and wanting to invest,

197
00:11:37,600 --> 00:11:44,600
Speaker 7: but also the ability to potentially take advantage of valuations

198
00:11:44,600 --> 00:11:47,640
Speaker 7: that are changing much more rapidly. So we all know

199
00:11:47,880 --> 00:11:50,080
Speaker 7: about dial and the investment that they had made in

200
00:11:50,120 --> 00:11:53,319
Speaker 7: the Phoenix Sun Phoenix Suns in twenty twenty one at

201
00:11:53,679 --> 00:11:56,800
Speaker 7: billion and a half dollars for just eighteen months later.

202
00:11:56,960 --> 00:11:59,800
Speaker 7: The valuation, I'm sorry, the valuation at that time was

203
00:11:59,800 --> 00:12:04,000
Speaker 7: at billion point five. The valuation when the team was

204
00:12:04,040 --> 00:12:07,120
Speaker 7: sold just eighteen months later was at four billion dollars.

205
00:12:07,400 --> 00:12:12,680
Speaker 7: And so there is certainly a shift in how rapidly

206
00:12:12,800 --> 00:12:17,440
Speaker 7: valuations are changing. But generally speaking, when our clients are

207
00:12:17,720 --> 00:12:21,280
Speaker 7: looking at getting investing, getting invested in the space, if

208
00:12:21,320 --> 00:12:25,000
Speaker 7: they are investing passively through a fund as an example,

209
00:12:25,400 --> 00:12:28,640
Speaker 7: it is the expectation typically that that fun life is

210
00:12:28,720 --> 00:12:33,400
Speaker 7: ten years. Generally speaking, when we're thinking about private equity investing, our.

211
00:12:33,240 --> 00:12:36,200
Speaker 3: Thanks to Nicole Poland Ross of Goldman Sachs. She is

212
00:12:36,200 --> 00:12:38,720
Speaker 3: the regional head of the firm's New York Private Wealth

213
00:12:38,760 --> 00:12:43,920
Speaker 3: Management unit and PWM Sports and Entertainment Solutions Leader. Next,

214
00:12:43,960 --> 00:12:47,160
Speaker 3: we stick with football, and here from Kansas City Chiefs

215
00:12:47,200 --> 00:12:51,520
Speaker 3: owner Dan and Clara Hunt, plus a conversation with Kansas

216
00:12:51,559 --> 00:12:55,040
Speaker 3: City Chiefs team president Mark Donovan. You're listening to the

217
00:12:55,120 --> 00:12:59,240
Speaker 3: Bloomberg Business of Sports from Bloomberg Radio of ground the world.

218
00:13:01,760 --> 00:13:06,800
Speaker 2: You're listening to Bloomberg Business of Sports from the Bloomberg Radio.

219
00:13:07,360 --> 00:13:10,120
Speaker 2: Thanks for joining us on the Bloomberg Business of Sports show.

220
00:13:10,440 --> 00:13:12,440
Speaker 2: But we explore the big money issues in the world

221
00:13:12,520 --> 00:13:15,760
Speaker 2: of sports Michael Barr along with my colleagues Scarlett fu

222
00:13:16,120 --> 00:13:20,320
Speaker 2: and Damian Sasseur. We've got another NFL season getting underway

223
00:13:20,320 --> 00:13:23,680
Speaker 2: with a full slate of games over this weekend and

224
00:13:24,000 --> 00:13:27,040
Speaker 2: the New York Jets and San Francisco forty nine Ers

225
00:13:27,360 --> 00:13:30,680
Speaker 2: capping off week one on Monday night. But the season

226
00:13:30,720 --> 00:13:34,000
Speaker 2: started with the Kansas City Chiefs on Thursday Night football

227
00:13:34,080 --> 00:13:37,280
Speaker 2: against the Baltimore Ravens. The Chiefs won by the way,

228
00:13:37,320 --> 00:13:39,920
Speaker 2: twenty seven to twenty over the Ravens. The game ended

229
00:13:39,960 --> 00:13:42,880
Speaker 2: with a video review after Lamar Jackson appeared to hit

230
00:13:43,160 --> 00:13:45,680
Speaker 2: Isaiah Likely in the back of the end zone with

231
00:13:45,760 --> 00:13:47,439
Speaker 2: no time left for a touchdown.

232
00:13:47,600 --> 00:13:56,760
Speaker 3: Comar make Magic, having way to the video, showed Likely's

233
00:13:56,800 --> 00:13:59,160
Speaker 3: toe on the line, though, and the call was overturned

234
00:13:59,360 --> 00:14:01,480
Speaker 3: and the past ruled incompletely.

235
00:14:01,640 --> 00:14:04,320
Speaker 2: Runners told get out of bounds.

236
00:14:04,920 --> 00:14:05,800
Speaker 3: It's an interprete.

237
00:14:07,120 --> 00:14:07,920
Speaker 10: The game is over.

238
00:14:08,520 --> 00:14:09,640
Speaker 2: Here's the city of Learning.

239
00:14:10,080 --> 00:14:13,720
Speaker 3: The Chiefs are the reigning NFL dynasty and they're looking

240
00:14:13,800 --> 00:14:16,640
Speaker 3: to add another Super Bowl title this year, looking to

241
00:14:16,679 --> 00:14:19,120
Speaker 3: go three in a row. No team has ever done that.

242
00:14:19,560 --> 00:14:24,200
Speaker 3: Bloomberg Original's chief correspondent Jason Kelly and Bloomberg Dallas Bureau

243
00:14:24,320 --> 00:14:28,120
Speaker 3: chief Julie Fine spoke with Chiefs co owner Dan and

244
00:14:28,200 --> 00:14:32,040
Speaker 3: Clark Hunt recently for Bloomberg Big Take. They covered a

245
00:14:32,040 --> 00:14:34,600
Speaker 3: lot of ground in the conversation, including their reaction to

246
00:14:35,000 --> 00:14:38,640
Speaker 3: the NFL allowing private equity firms to have stakes in teams.

247
00:14:39,120 --> 00:14:41,960
Speaker 3: Let's listen to that portion of the conversation, starting with

248
00:14:42,080 --> 00:14:45,320
Speaker 3: Clark Hunt's thoughts on what stood out most to him

249
00:14:45,440 --> 00:14:47,440
Speaker 3: following the NFL's decision.

250
00:14:48,640 --> 00:14:51,640
Speaker 10: Probably the biggest surprise has been the breadth of the

251
00:14:51,720 --> 00:14:56,600
Speaker 10: interest in the NFL. I knew that there would be

252
00:14:56,640 --> 00:14:59,000
Speaker 10: a lot of interest, But it's probably been even broader

253
00:14:59,320 --> 00:15:01,920
Speaker 10: than I thought it would be. It goes beyond the

254
00:15:02,280 --> 00:15:06,400
Speaker 10: funds that have been raised to focus specifically on professional sports.

255
00:15:07,280 --> 00:15:09,520
Speaker 10: So I think it's going to give the NFL a

256
00:15:09,560 --> 00:15:14,080
Speaker 10: great opportunity to have a significant group of very interested

257
00:15:14,160 --> 00:15:17,880
Speaker 10: investors who can support the league's capital needs on a

258
00:15:17,920 --> 00:15:18,800
Speaker 10: go forward basis.

259
00:15:18,960 --> 00:15:21,240
Speaker 6: Dan, you've been around it, you know, all of these

260
00:15:21,240 --> 00:15:25,040
Speaker 6: sports for a long time. This broad interest. Where's it

261
00:15:25,120 --> 00:15:29,360
Speaker 6: coming from in your estimation in terms of the potential

262
00:15:29,440 --> 00:15:30,560
Speaker 6: value going forward?

263
00:15:30,880 --> 00:15:33,440
Speaker 5: Yeah, I mean there's been so much new wealth generation

264
00:15:34,800 --> 00:15:38,560
Speaker 5: across the globe, and the NFL for so long traditionally

265
00:15:38,720 --> 00:15:42,240
Speaker 5: was just an American ownership and an American game, if

266
00:15:42,280 --> 00:15:44,880
Speaker 5: you will. But you know, the market and how the

267
00:15:44,960 --> 00:15:48,520
Speaker 5: NFL has thought about growing its businesses is targeted, you know,

268
00:15:48,800 --> 00:15:51,840
Speaker 5: football globally speaking, and I mean you've got games coming

269
00:15:51,880 --> 00:15:54,360
Speaker 5: up in Brazil the first time, and I just think

270
00:15:54,520 --> 00:15:56,840
Speaker 5: so many more people are interested in it, and soccer

271
00:15:57,200 --> 00:16:00,000
Speaker 5: is the global game, right and so we have internet

272
00:16:00,080 --> 00:16:02,680
Speaker 5: national owners in that business in Major League Soccer. I've

273
00:16:02,680 --> 00:16:06,600
Speaker 5: been surprised, I feel like his assistant sometimes with the

274
00:16:06,640 --> 00:16:09,080
Speaker 5: amount of phone calls I receive with people wanting to

275
00:16:09,120 --> 00:16:13,040
Speaker 5: talk about the private equity opportunity in the NFL, and

276
00:16:13,120 --> 00:16:15,640
Speaker 5: I would always say, well, if you're calling about that,

277
00:16:15,800 --> 00:16:20,240
Speaker 5: I'm not even gonna bother connecting you. But it's been

278
00:16:20,280 --> 00:16:22,480
Speaker 5: really great to see. But I just think there's been

279
00:16:22,520 --> 00:16:27,320
Speaker 5: so much new wealth generation globally, and sports teams are prizes,

280
00:16:27,360 --> 00:16:31,880
Speaker 5: and you've seen this unbelievable escalation asset valuations, and you know,

281
00:16:32,000 --> 00:16:33,920
Speaker 5: been so fun to be part of it. And you

282
00:16:33,920 --> 00:16:37,000
Speaker 5: think back to our history and our investment in these teams.

283
00:16:37,040 --> 00:16:38,880
Speaker 5: I believe our investment in the Kansas City Chiefs is

284
00:16:38,920 --> 00:16:42,480
Speaker 5: twenty five thousand dollars, our investment in the Chicago Bulls

285
00:16:42,600 --> 00:16:45,760
Speaker 5: is sixty, you know, sixty seven thousand dollars, and now

286
00:16:45,760 --> 00:16:47,440
Speaker 5: what these franchises are worth today.

287
00:16:48,000 --> 00:16:51,160
Speaker 3: That's Kansas City Chiefs co owner Dan Hunt, along with

288
00:16:51,200 --> 00:16:54,560
Speaker 3: his brother and fellow co owner Clark Hunt, speaking with

289
00:16:54,600 --> 00:16:57,840
Speaker 3: our Jason Kelly and Julie Fine. It's part of a

290
00:16:57,880 --> 00:17:02,200
Speaker 3: larger conversation for Bloomberg Big Take with the billionaire sports

291
00:17:02,200 --> 00:17:06,520
Speaker 3: family that dove into their aspirations not only for the

292
00:17:06,640 --> 00:17:09,880
Speaker 3: Chiefs in the NFL, but how they're looking to expand

293
00:17:09,920 --> 00:17:13,320
Speaker 3: globally and how they're planning for the World Cup coming

294
00:17:13,400 --> 00:17:17,399
Speaker 3: up in twenty twenty six. They also spoke about soaring

295
00:17:17,480 --> 00:17:21,960
Speaker 3: team valuations. Here's that portion of the conversation, starting with

296
00:17:22,200 --> 00:17:24,480
Speaker 3: where Clark Hunt sees valuations going.

297
00:17:24,560 --> 00:17:27,040
Speaker 10: I don't think we've peaked. I think there's still a

298
00:17:27,040 --> 00:17:30,320
Speaker 10: lot of growth in front of both leagues. Certainly Major

299
00:17:30,359 --> 00:17:35,560
Speaker 10: League Soccer as the younger, newer entrant is probably going

300
00:17:35,560 --> 00:17:38,000
Speaker 10: to grow faster. There's a lot of upside from a

301
00:17:38,040 --> 00:17:41,640
Speaker 10: revenue standpoint for Major League Soccer, and if you look

302
00:17:41,640 --> 00:17:44,480
Speaker 10: at some of the valuations around the world in the

303
00:17:44,480 --> 00:17:47,040
Speaker 10: sport of soccer, there's a lot of room to run.

304
00:17:47,440 --> 00:17:50,640
Speaker 10: But I also think the NFL has a very bright

305
00:17:50,720 --> 00:17:54,000
Speaker 10: future as well, not only in terms of growth domestically,

306
00:17:54,080 --> 00:17:57,040
Speaker 10: but we talked a little bit about internationally and there's

307
00:17:57,080 --> 00:18:00,359
Speaker 10: a big opportunity for the NFL to grow. It's brand

308
00:18:00,400 --> 00:18:03,760
Speaker 10: that's following internationally and that should help lif valuations.

309
00:18:04,440 --> 00:18:07,720
Speaker 3: That's Kansas City Chiefs co owner Clark Hunt, along with

310
00:18:07,760 --> 00:18:10,520
Speaker 3: his brother and fellow co owner, Dan Hunt, speaking with

311
00:18:10,600 --> 00:18:14,880
Speaker 3: our colleagues Jason Kelly and Julie Fine for Bloomberg Big Take.

312
00:18:15,240 --> 00:18:17,439
Speaker 3: You can hear more on the Hunt brothers in the

313
00:18:17,480 --> 00:18:20,919
Speaker 3: latest edition of The Big Tech Podcast. Find that and

314
00:18:21,040 --> 00:18:25,920
Speaker 3: subscribe on Apple, Spotify, or wherever you get your podcasts. Now,

315
00:18:25,960 --> 00:18:28,720
Speaker 3: we stick with football and the Chiefs and turn to

316
00:18:28,800 --> 00:18:32,320
Speaker 3: a conversation from earlier this week with Mark Donovan, president

317
00:18:32,359 --> 00:18:35,639
Speaker 3: of the Kansas City Chiefs. He spoke with our colleagues

318
00:18:35,760 --> 00:18:40,040
Speaker 3: Jason Kelly and Vanessa Perdomo of Bloomberg Originals, as well

319
00:18:40,080 --> 00:18:43,000
Speaker 3: as our pal Damian sass Hour. Let's take a listen

320
00:18:43,000 --> 00:18:43,879
Speaker 3: to that conversation.

321
00:18:44,760 --> 00:18:47,639
Speaker 8: So, the world's largest tailgate. I mean, look, you know

322
00:18:47,680 --> 00:18:50,240
Speaker 8: I'm a skinny guy, but I mean I love to eat,

323
00:18:50,320 --> 00:18:53,080
Speaker 8: and we all know about the Owhead Stadium crazies. Talk

324
00:18:53,119 --> 00:18:54,920
Speaker 8: to us about the world's largest tailgate.

325
00:18:54,920 --> 00:18:55,639
Speaker 3: What's it all about.

326
00:18:55,800 --> 00:18:59,160
Speaker 4: You're the world's largest tailgate. Game for our marketing team,

327
00:18:59,720 --> 00:19:02,959
Speaker 4: try to find a way to help us accomplish our

328
00:19:02,960 --> 00:19:08,119
Speaker 4: goal of being the world's team with the expansive international rights.

329
00:19:08,640 --> 00:19:12,000
Speaker 4: We really have invested in that aggressively to try to

330
00:19:12,080 --> 00:19:15,400
Speaker 4: expand what we call Chiefs Kingdom in terms of our

331
00:19:15,440 --> 00:19:19,199
Speaker 4: fan base and the international game. Last year helped us

332
00:19:19,200 --> 00:19:21,080
Speaker 4: do that. We played here in National London and played

333
00:19:21,080 --> 00:19:23,600
Speaker 4: in Mexico City. We've seen the success of that So

334
00:19:24,200 --> 00:19:26,159
Speaker 4: what we're trying to do is find a way to

335
00:19:26,200 --> 00:19:30,159
Speaker 4: bring the world to one of the coolest experiences in

336
00:19:30,200 --> 00:19:34,199
Speaker 4: all of professional sports, which is tailgating at Arrowhead Stadium

337
00:19:34,200 --> 00:19:38,320
Speaker 4: and GAHA Field. And our creative team worked with a

338
00:19:38,359 --> 00:19:40,800
Speaker 4: lot of really talented people in the entertainment world and

339
00:19:40,880 --> 00:19:46,679
Speaker 4: came up with the idea of a live simulcast basically

340
00:19:46,760 --> 00:19:49,119
Speaker 4: that gives everyone around the world the opportunity to be

341
00:19:49,480 --> 00:19:54,520
Speaker 4: live with us at tailgate prior to the kickoff of

342
00:19:54,560 --> 00:19:57,480
Speaker 4: the NFL season. It's a great way to bring the

343
00:19:57,520 --> 00:20:00,840
Speaker 4: world to Arrowhead as we kick off the NFL season.

344
00:20:01,280 --> 00:20:03,040
Speaker 11: That's really you know, it's really interesting. I think when

345
00:20:03,080 --> 00:20:05,439
Speaker 11: you think about being the world's team and bringing in

346
00:20:05,480 --> 00:20:10,880
Speaker 11: this international audience into the NFL fandom, a tailgate and

347
00:20:10,920 --> 00:20:14,320
Speaker 11: the NFL really around the culture is very American, right,

348
00:20:14,359 --> 00:20:18,359
Speaker 11: So how do you bring that into the international audience

349
00:20:18,520 --> 00:20:20,840
Speaker 11: and what other people in other countries think about this

350
00:20:21,080 --> 00:20:24,320
Speaker 11: coming into what is a tailgate? What is cornhole?

351
00:20:24,520 --> 00:20:24,719
Speaker 7: You know?

352
00:20:24,760 --> 00:20:27,200
Speaker 11: How do how do you bring that into the world audience?

353
00:20:27,840 --> 00:20:29,879
Speaker 4: You know, it's really interesting. I'll go back to the

354
00:20:29,920 --> 00:20:34,560
Speaker 4: experiences we've had in London, in Mexico City, and in

355
00:20:34,640 --> 00:20:40,440
Speaker 4: Frankfurt last year. It's amazing the knowledge that our fan

356
00:20:40,520 --> 00:20:44,760
Speaker 4: base across the world has of our franchise and of

357
00:20:44,800 --> 00:20:48,640
Speaker 4: our experience at Arrowhead. And you know, I've heard from

358
00:20:48,680 --> 00:20:51,439
Speaker 4: so many fans who you know, the bucket list is

359
00:20:51,480 --> 00:20:54,200
Speaker 4: to get to DH field, They have to do that

360
00:20:54,720 --> 00:20:58,960
Speaker 4: and it's because of the experience. So how do you

361
00:20:59,200 --> 00:21:02,080
Speaker 4: export that, right? How do you create it so that

362
00:21:02,280 --> 00:21:05,040
Speaker 4: millions and millions can participate? I think the other thing

363
00:21:05,080 --> 00:21:07,440
Speaker 4: you think about from a strategic standpoint for us as

364
00:21:07,440 --> 00:21:12,639
Speaker 4: a business is this is a step in that direct

365
00:21:12,640 --> 00:21:15,680
Speaker 4: to consumer strategy. Right, So this is a way of

366
00:21:15,880 --> 00:21:21,600
Speaker 4: creating that relationship with another either fan or potential fan.

367
00:21:22,160 --> 00:21:25,119
Speaker 4: And then once you have that connection, how do you

368
00:21:25,240 --> 00:21:29,400
Speaker 4: utilize that to continue to grow those relationships. The other

369
00:21:29,440 --> 00:21:32,480
Speaker 4: thing we've found with things like world's largest tailgate is

370
00:21:32,880 --> 00:21:36,240
Speaker 4: the demographics are a little bit different than you would

371
00:21:36,440 --> 00:21:40,280
Speaker 4: see at a typical in attendance stadium. Not only limited

372
00:21:40,600 --> 00:21:43,480
Speaker 4: in our case to seventy seventy two thousand people, but

373
00:21:43,720 --> 00:21:46,320
Speaker 4: you have no limitation of a number of people. But

374
00:21:46,400 --> 00:21:49,440
Speaker 4: also you have a different demo that's taken part today

375
00:21:49,800 --> 00:21:52,800
Speaker 4: in a live stream versus something you know, being live

376
00:21:52,880 --> 00:21:55,479
Speaker 4: in person. So both of those things play into it.

377
00:21:55,840 --> 00:21:58,520
Speaker 4: And then it's just capitalizing on what we're known for,

378
00:21:58,760 --> 00:22:03,320
Speaker 4: which is and sometimes we're introducing tailigating to new fans

379
00:22:03,720 --> 00:22:06,280
Speaker 4: in some kinds. Sometimes it's just letting them be part

380
00:22:06,280 --> 00:22:08,680
Speaker 4: of the experience that they already know very well.

381
00:22:09,480 --> 00:22:12,359
Speaker 6: So, Mark, we're catching you at a fascinating moment in

382
00:22:12,400 --> 00:22:14,479
Speaker 6: the history of the NFL, and it's a league you're

383
00:22:14,600 --> 00:22:18,360
Speaker 6: very familiar with. You came to Kansas City from the Eagles,

384
00:22:18,440 --> 00:22:22,800
Speaker 6: another you know, incredibly well known and successful franchise with

385
00:22:23,000 --> 00:22:26,960
Speaker 6: long term ownership just like you have there in Kansas City.

386
00:22:27,200 --> 00:22:30,000
Speaker 6: There's a new entrant, as it were, from the money side,

387
00:22:30,040 --> 00:22:33,280
Speaker 6: coming in in private equity. Your boss, Clark Hunt, led

388
00:22:33,280 --> 00:22:36,440
Speaker 6: the committee on the NFL that ultimately sort of approved

389
00:22:36,760 --> 00:22:39,840
Speaker 6: this next step. How do you think, as someone who

390
00:22:40,000 --> 00:22:43,040
Speaker 6: understands the business of not just the team but the

391
00:22:43,119 --> 00:22:47,320
Speaker 6: league so intimately, how does that affect things in the

392
00:22:47,359 --> 00:22:50,720
Speaker 6: short and medium term in terms of competitiveness, in terms

393
00:22:50,800 --> 00:22:53,240
Speaker 6: of investment, Like what's the bottom line for you?

394
00:22:53,720 --> 00:22:58,639
Speaker 4: Well, Number one, it's a transformational policy. As much as

395
00:22:59,000 --> 00:23:03,560
Speaker 4: we modelated off after other sports leagues and tried to

396
00:23:03,640 --> 00:23:08,960
Speaker 4: learn from those experiences, this one is truly modeled to

397
00:23:09,000 --> 00:23:14,480
Speaker 4: take advantage and augment the strength of our league model

398
00:23:15,359 --> 00:23:19,919
Speaker 4: as well as create opportunities to bring diverse investment into

399
00:23:20,520 --> 00:23:25,520
Speaker 4: that atmosphere. It's interesting that you post the question we

400
00:23:25,840 --> 00:23:30,120
Speaker 4: did and cited my experience in Philly and Kansas City.

401
00:23:30,200 --> 00:23:33,400
Speaker 4: I think those are two good models to look at

402
00:23:33,480 --> 00:23:35,960
Speaker 4: from the standpoint of every franchise is going to look

403
00:23:35,960 --> 00:23:39,280
Speaker 4: at this opportunity a little differently, and every franchise owner

404
00:23:39,320 --> 00:23:42,280
Speaker 4: is going to look at it as their own objectives

405
00:23:42,320 --> 00:23:45,760
Speaker 4: in utilizing this or not utilizing it. And I think

406
00:23:45,760 --> 00:23:48,639
Speaker 4: in the case of both Philadelphia and knowing Jeffrey Leuriy

407
00:23:49,000 --> 00:23:51,800
Speaker 4: and his management team really really well, I think they'll

408
00:23:51,840 --> 00:23:54,000
Speaker 4: take a different look at this. They'll take a different

409
00:23:54,040 --> 00:23:57,280
Speaker 4: perspective on it. Then Clark and his family and the

410
00:23:57,320 --> 00:24:00,240
Speaker 4: siblings will take their own perspective on it. I think

411
00:24:00,240 --> 00:24:04,760
Speaker 4: when you look across the ownership group of the National

412
00:24:04,760 --> 00:24:08,240
Speaker 4: Football League, you see a pretty diverse and wide mix

413
00:24:08,960 --> 00:24:12,960
Speaker 4: of individuals and organizations and how they approach these things.

414
00:24:13,000 --> 00:24:16,320
Speaker 4: So one of the biggest challenges that Clerk and the

415
00:24:16,359 --> 00:24:19,760
Speaker 4: policy team to put this together, who deserve, by the way,

416
00:24:19,800 --> 00:24:21,600
Speaker 4: a lot of credit. They've been working on this for

417
00:24:21,760 --> 00:24:26,439
Speaker 4: multiple years, and I witnessed it firsthand to see just

418
00:24:26,520 --> 00:24:28,960
Speaker 4: how much time and effort to Clerk was putting into

419
00:24:29,320 --> 00:24:33,200
Speaker 4: getting this right because they understood just how transformation of

420
00:24:33,320 --> 00:24:36,000
Speaker 4: this policy change would be. So they deserve a lot

421
00:24:36,000 --> 00:24:38,159
Speaker 4: of credit for that. But I think it's very interesting

422
00:24:38,200 --> 00:24:40,280
Speaker 4: to see how each one of these franchises and each

423
00:24:40,280 --> 00:24:42,919
Speaker 4: ownership group will look at it differently, and look, the

424
00:24:42,960 --> 00:24:45,679
Speaker 4: reality is that they're also going to utilize it differently.

425
00:24:45,880 --> 00:24:47,480
Speaker 4: You know, we've got certain people who are like, you know,

426
00:24:47,520 --> 00:24:49,440
Speaker 4: this is a great opportunity to capitalize on the value

427
00:24:49,480 --> 00:24:52,080
Speaker 4: of my franchise. We get other opportunities where like we

428
00:24:52,200 --> 00:24:56,000
Speaker 4: need capital infusion for this, So here's an opportunity to

429
00:24:56,080 --> 00:24:59,280
Speaker 4: do that which we didn't have before. So it's an

430
00:24:59,359 --> 00:25:02,399
Speaker 4: exciting time time. It will be very interesting, I think

431
00:25:02,560 --> 00:25:05,879
Speaker 4: as an industry to see sort of who comes to

432
00:25:05,920 --> 00:25:08,280
Speaker 4: the table, who takes evangelist and how they take advantage

433
00:25:08,320 --> 00:25:11,960
Speaker 4: of it. Obviously it's going to have some say into valuations. Yeah,

434
00:25:12,000 --> 00:25:15,920
Speaker 4: you've got a different group looking at valuations. This isn't

435
00:25:15,920 --> 00:25:18,560
Speaker 4: a perspective owner of a franchise who may have other

436
00:25:18,640 --> 00:25:24,240
Speaker 4: reasons to purchase a team. This is a true you know,

437
00:25:24,359 --> 00:25:28,919
Speaker 4: analytics driven investment group that is looking for a return

438
00:25:28,960 --> 00:25:31,280
Speaker 4: on investment, So evaluations are going to be interesting for

439
00:25:31,359 --> 00:25:32,000
Speaker 4: us to watch too.

440
00:25:32,720 --> 00:25:36,159
Speaker 3: That's Kansas City Chiefs President Mark Donovan speaking with Jason

441
00:25:36,240 --> 00:25:41,040
Speaker 3: Kelly and Vanessa Perdomo, Bloomberg Originals, and our very own

442
00:25:41,560 --> 00:25:45,639
Speaker 3: Damien sass Hour. Coming up, we'll hear more of that conversation.

443
00:25:46,040 --> 00:25:49,320
Speaker 3: You're listening to the Bloomberg Business of Sports Bloomberger Radio.

444
00:25:49,440 --> 00:25:50,399
Speaker 3: Around the world.

445
00:25:52,600 --> 00:25:56,760
Speaker 2: You're listening to Bloomberg Business of Sports from Bloomberg Radio.

446
00:25:57,960 --> 00:26:00,440
Speaker 3: Thanks for joining us on the Bloomberg Business of Show,

447
00:26:00,440 --> 00:26:02,640
Speaker 3: where we explore the big money issues in the world

448
00:26:02,680 --> 00:26:05,280
Speaker 3: of sports. I Michael Barr, along with Scarlett fou and

449
00:26:05,480 --> 00:26:09,119
Speaker 3: Damian Sasaur. We're listening in on a conversation with Kansas

450
00:26:09,160 --> 00:26:12,840
Speaker 3: City Chiefs President Mark Donovan. He spoke with my colleagues

451
00:26:13,000 --> 00:26:16,840
Speaker 3: Jason Kelly, Vanessa Perdomo, and Damian earlier this week. Let's

452
00:26:16,880 --> 00:26:18,760
Speaker 3: dive back into their conversation.

453
00:26:19,000 --> 00:26:20,560
Speaker 8: You know, Mark, I may look young, but I was

454
00:26:20,560 --> 00:26:23,080
Speaker 8: actually born in nineteen seventy four, so I'm fifty years old.

455
00:26:23,080 --> 00:26:27,280
Speaker 8: But Arrowhead Stadium built in nineteen seventy two, third oldest

456
00:26:27,320 --> 00:26:30,480
Speaker 8: stadium in the NFL. And yet here we go fast

457
00:26:30,480 --> 00:26:32,399
Speaker 8: forward to twenty twenty six. You're going to be hosting

458
00:26:32,400 --> 00:26:35,320
Speaker 8: the World Cup and you're planning eight hundred million dollars

459
00:26:35,320 --> 00:26:39,320
Speaker 8: worth of renovations of some crazy number seating bowld luxury amenities.

460
00:26:39,480 --> 00:26:41,560
Speaker 8: I mean, what a time to be alive. I mean, Mark,

461
00:26:42,000 --> 00:26:44,320
Speaker 8: talk to us about what's going on in Arrowhead. How

462
00:26:44,320 --> 00:26:46,080
Speaker 8: are you going to get all this done in time

463
00:26:46,080 --> 00:26:46,760
Speaker 8: for the World Cup.

464
00:26:47,200 --> 00:26:49,720
Speaker 4: Yeah, So it's an exciting time to be part of

465
00:26:49,760 --> 00:26:52,000
Speaker 4: this organization. It's an exciting time to be a fan

466
00:26:52,119 --> 00:26:55,000
Speaker 4: of this franchise, and exciting tiny part of this region.

467
00:26:56,280 --> 00:27:00,680
Speaker 4: And you cited two very good examples the first World Cup.

468
00:27:02,359 --> 00:27:06,880
Speaker 4: We'll do about a forty two million dollar renovation actually

469
00:27:08,400 --> 00:27:12,280
Speaker 4: adjustment to our building to be able to host World Cup,

470
00:27:12,320 --> 00:27:15,000
Speaker 4: and that investment is strictly to be able to host

471
00:27:15,040 --> 00:27:19,960
Speaker 4: the games. Really proud of our Sports Commission, our city

472
00:27:21,080 --> 00:27:23,520
Speaker 4: political leaders on both sides of the state line who

473
00:27:23,560 --> 00:27:26,760
Speaker 4: came together with us to and the soccer franchises are

474
00:27:26,760 --> 00:27:28,919
Speaker 4: in the in the region with the Sporting k C

475
00:27:29,080 --> 00:27:31,880
Speaker 4: team and also the Kansas City Current who all came

476
00:27:31,920 --> 00:27:35,119
Speaker 4: together to put a bid together that I think puts

477
00:27:35,240 --> 00:27:37,679
Speaker 4: Kansassey on a map that's never been before. If you

478
00:27:37,720 --> 00:27:40,760
Speaker 4: think about the cities that won the right to host

479
00:27:40,840 --> 00:27:44,919
Speaker 4: the World Cup were definitely the smallest. And then the

480
00:27:45,000 --> 00:27:49,560
Speaker 4: fact that FIFA looked at us from a venue standpoint,

481
00:27:49,600 --> 00:27:53,440
Speaker 4: from the long history of Lamar Hunt's commitment to soccer,

482
00:27:54,720 --> 00:27:58,399
Speaker 4: and they gave us a quarterfinal game. That's that's a

483
00:27:58,560 --> 00:28:02,800
Speaker 4: really impressive accomplishment for this market size and for this

484
00:28:02,880 --> 00:28:04,840
Speaker 4: region and for the individuals who are part of that.

485
00:28:05,440 --> 00:28:08,199
Speaker 4: For us from an operational standpoint, you know, we have

486
00:28:08,280 --> 00:28:10,320
Speaker 4: to get ready to host that event and do it

487
00:28:10,359 --> 00:28:13,760
Speaker 4: better than anybody else does it, but also make all

488
00:28:13,760 --> 00:28:16,199
Speaker 4: this adjustments to host fee for World Cup soccer and

489
00:28:16,200 --> 00:28:19,880
Speaker 4: then be able to adjust modularly back to NFL over

490
00:28:20,040 --> 00:28:24,080
Speaker 4: four seasons. Construction actually started on that project this past

491
00:28:24,160 --> 00:28:27,720
Speaker 4: offseason with putting in some of the infrastructure below the field,

492
00:28:28,040 --> 00:28:30,520
Speaker 4: and now next season we'll do some of the seating

493
00:28:30,520 --> 00:28:33,760
Speaker 4: bowl adjustments. We'll put the stadium back the way it

494
00:28:33,800 --> 00:28:36,639
Speaker 4: is today for our game for our NFL games, and

495
00:28:36,680 --> 00:28:39,080
Speaker 4: then we'll make that adjustment again going into the twenty

496
00:28:39,120 --> 00:28:41,239
Speaker 4: six season and then put it back together after that.

497
00:28:41,360 --> 00:28:43,800
Speaker 4: So that's a huge project in itself and it really

498
00:28:43,840 --> 00:28:47,200
Speaker 4: benefits the region. And then the second, the eight hundred

499
00:28:47,200 --> 00:28:49,640
Speaker 4: million dollar renovation of Arrowhead is one of the options

500
00:28:49,640 --> 00:28:53,360
Speaker 4: we're looking at right now. Our lease expires at Arrowhead

501
00:28:53,360 --> 00:28:55,960
Speaker 4: in twenty thirty one, so if you look at the

502
00:28:55,960 --> 00:28:59,120
Speaker 4: timeline we're on, it's time to consider, you know, should

503
00:28:59,120 --> 00:29:02,000
Speaker 4: we build a brand news stadium, Should we build a

504
00:29:02,000 --> 00:29:05,120
Speaker 4: new stadium somewhere else? Should we renovate Arrowhead? And the

505
00:29:05,160 --> 00:29:07,480
Speaker 4: first thing we looked at last April was what would

506
00:29:07,520 --> 00:29:10,080
Speaker 4: it cause? Could we number one renovated stadium that, as

507
00:29:10,120 --> 00:29:13,760
Speaker 4: you said, open in nineteen seventy two, but also what

508
00:29:13,800 --> 00:29:15,800
Speaker 4: would that allow us to do? What a minute is

509
00:29:15,840 --> 00:29:18,360
Speaker 4: can we bring into this iconic building? And is that

510
00:29:18,440 --> 00:29:21,440
Speaker 4: the best decision moving forward for our fans, for this

511
00:29:21,560 --> 00:29:22,960
Speaker 4: franchise and for the future.

512
00:29:23,520 --> 00:29:26,080
Speaker 11: I think that's really interesting when you're talking about the

513
00:29:26,080 --> 00:29:28,560
Speaker 11: different options you have, what's the best for the fans?

514
00:29:28,600 --> 00:29:31,120
Speaker 11: You know, when you speak with fans and you guys

515
00:29:31,120 --> 00:29:33,680
Speaker 11: are talking about that, how do you engage with them

516
00:29:33,720 --> 00:29:35,440
Speaker 11: about what they would want? You know, I think a

517
00:29:35,440 --> 00:29:37,800
Speaker 11: lot of the times when we're seeing let's say, in

518
00:29:38,120 --> 00:29:42,600
Speaker 11: European football or soccer, that people are fans are very

519
00:29:42,600 --> 00:29:45,720
Speaker 11: dedicated to keep their stadiums that have all this all

520
00:29:45,720 --> 00:29:49,760
Speaker 11: this history, and here it's almost we want the nicest,

521
00:29:49,800 --> 00:29:53,520
Speaker 11: the biggest, the most innovative stadiums. So when you're thinking

522
00:29:53,520 --> 00:29:56,800
Speaker 11: about that, what do you think about Arrowhead keeping the

523
00:29:56,960 --> 00:30:02,360
Speaker 11: history or just having this massive, life, big, innovative, tech

524
00:30:02,440 --> 00:30:03,320
Speaker 11: driven stadium.

525
00:30:03,600 --> 00:30:07,560
Speaker 4: Yeah, I think that it's a great question, and the

526
00:30:07,760 --> 00:30:12,040
Speaker 4: generic answer is yes, because all of those discussions are

527
00:30:12,040 --> 00:30:16,000
Speaker 4: happening and all those opinions are being shared. I think

528
00:30:16,040 --> 00:30:20,000
Speaker 4: that the unique situation that we are in, which is

529
00:30:20,040 --> 00:30:25,400
Speaker 4: one that we're embracing, is we have an opportunity to

530
00:30:25,520 --> 00:30:28,960
Speaker 4: upgrade and renovate one of the most iconic buildings in sports.

531
00:30:29,040 --> 00:30:32,880
Speaker 4: I mentioned earlier. You know, in discussions with people in Frankfurt, Germany, London,

532
00:30:33,400 --> 00:30:36,280
Speaker 4: Mexico City. You know how many times I hear I've

533
00:30:36,360 --> 00:30:39,160
Speaker 4: got to get to Gjfield. I have to experience the

534
00:30:39,200 --> 00:30:44,080
Speaker 4: Eraline experience. So when you think about that perspective, it's

535
00:30:44,760 --> 00:30:49,040
Speaker 4: how do we renovate this thing to number one, make

536
00:30:49,080 --> 00:30:52,360
Speaker 4: it functionally and foundationally strong to get through the next

537
00:30:52,360 --> 00:30:55,120
Speaker 4: twenty five or thirty years. And then number two, how

538
00:30:55,120 --> 00:30:57,560
Speaker 4: do we expand on the fan experience? How do we

539
00:30:57,680 --> 00:31:00,000
Speaker 4: create the things that are in the newest and coolest

540
00:31:00,000 --> 00:31:04,440
Speaker 4: buildings that are being built brand new today versus the

541
00:31:04,520 --> 00:31:08,920
Speaker 4: opportunity to build a brand new building. You know, in

542
00:31:09,120 --> 00:31:12,479
Speaker 4: the obvious and most easy example from comparison standpoint is

543
00:31:12,800 --> 00:31:15,560
Speaker 4: if we're able to build a brand new dome stadium,

544
00:31:15,920 --> 00:31:19,160
Speaker 4: what does that open up for this region in terms

545
00:31:19,160 --> 00:31:26,880
Speaker 4: of opportunity Super Bowls, your Big Twelve Championships, Final Fours,

546
00:31:27,520 --> 00:31:31,480
Speaker 4: expanding concert series, as well as creating a new and

547
00:31:31,560 --> 00:31:35,800
Speaker 4: you know, from an amenity standpoint, stadium that really competes

548
00:31:35,800 --> 00:31:38,400
Speaker 4: with the best in the world. And I would say

549
00:31:38,520 --> 00:31:44,320
Speaker 4: to your initial question, I get feedback that is almost

550
00:31:44,360 --> 00:31:47,800
Speaker 4: directly fifty to fifty. I get a lot of like

551
00:31:47,920 --> 00:31:50,560
Speaker 4: hardcore fans and companies like, don't leave our life. We

552
00:31:50,640 --> 00:31:53,440
Speaker 4: need to keep this traditional love. We want you to stay.

553
00:31:53,880 --> 00:31:55,800
Speaker 4: And I get a lot of fans who come up

554
00:31:55,840 --> 00:31:57,840
Speaker 4: to me and say, build a dome so we can

555
00:31:57,840 --> 00:32:01,360
Speaker 4: bring even more exciting stuff here. And so it's an

556
00:32:01,360 --> 00:32:05,760
Speaker 4: evaluation we're going through. We have the additional opportunity that

557
00:32:05,840 --> 00:32:09,400
Speaker 4: we have multiple states where our market really sits. We

558
00:32:09,440 --> 00:32:11,560
Speaker 4: sit on the state line of Kansas and Missouri, so

559
00:32:11,560 --> 00:32:14,560
Speaker 4: there's opportunities in both sides of the state line, and

560
00:32:14,600 --> 00:32:16,840
Speaker 4: it's one of the things that we've committed to do

561
00:32:16,880 --> 00:32:19,320
Speaker 4: the proper due diligence to make sure we're making the

562
00:32:19,400 --> 00:32:20,600
Speaker 4: right decision going forward.

563
00:32:20,880 --> 00:32:22,600
Speaker 11: Sounds like the fans are really making it easy for

564
00:32:22,680 --> 00:32:23,000
Speaker 11: you there.

565
00:32:25,400 --> 00:32:27,880
Speaker 4: Yeah, it's not an easy decision, but we're going to

566
00:32:27,920 --> 00:32:28,680
Speaker 4: make the right Yeah.

567
00:32:29,440 --> 00:32:32,200
Speaker 6: NFL fans are known for not being very opinionated, Mark,

568
00:32:32,240 --> 00:32:34,280
Speaker 6: I mean, they're just like, go with the flow, especially

569
00:32:34,360 --> 00:32:36,680
Speaker 6: chief sentence. They're just like, whatever whatever works for you.

570
00:32:37,600 --> 00:32:39,920
Speaker 6: I did have one question as we as we start

571
00:32:39,920 --> 00:32:42,640
Speaker 6: to wrap up, which is, you know, I've spent some

572
00:32:42,680 --> 00:32:44,720
Speaker 6: time of late and there's this story out in the

573
00:32:44,720 --> 00:32:47,920
Speaker 6: Bloomberg terminal right now about the Hunt family and this

574
00:32:48,040 --> 00:32:52,600
Speaker 6: you know, massive sports portfolio that this you know, historic

575
00:32:52,640 --> 00:32:57,640
Speaker 6: family has built up over time, which obviously includes your franchise.

576
00:32:58,040 --> 00:33:02,520
Speaker 6: Also FC Dallas taking the Chicago Bulls, so they've they've

577
00:33:02,560 --> 00:33:04,719
Speaker 6: got their hands in a lot of things. You're deeply

578
00:33:04,760 --> 00:33:07,320
Speaker 6: involved with the family. You sit on the board, I

579
00:33:07,640 --> 00:33:12,760
Speaker 6: believe of the strategic ventures arm of the Hunt family.

580
00:33:13,320 --> 00:33:16,840
Speaker 6: Put yourself in the investor mindset in a Bloomberg way

581
00:33:17,920 --> 00:33:20,760
Speaker 6: here like where are you looking? Where are the investment

582
00:33:20,760 --> 00:33:23,840
Speaker 6: opportunities in sports at this moment, because you sit at

583
00:33:23,880 --> 00:33:26,800
Speaker 6: such an interesting perch to see that. What are you

584
00:33:26,840 --> 00:33:27,280
Speaker 6: looking at?

585
00:33:27,880 --> 00:33:31,160
Speaker 4: Yeah, I would answer that question a couple of ways.

586
00:33:31,240 --> 00:33:35,640
Speaker 4: One is, I think it's hard to argue the value

587
00:33:35,720 --> 00:33:39,520
Speaker 4: of the National Football League as an entity, and then

588
00:33:39,600 --> 00:33:43,280
Speaker 4: the individual franchises that make up the value. So that's

589
00:33:43,400 --> 00:33:46,520
Speaker 4: number one. You're starting in a very very strong base.

590
00:33:47,280 --> 00:33:49,719
Speaker 4: And then you look at the individual franchises and how

591
00:33:49,760 --> 00:33:51,760
Speaker 4: they're operating and the things they're doing. And if you

592
00:33:51,800 --> 00:33:54,440
Speaker 4: look at our business track record over the last decade,

593
00:33:55,920 --> 00:33:58,480
Speaker 4: we've been one of the most successful franchises from a

594
00:33:58,480 --> 00:34:02,720
Speaker 4: business operations standpoint entire league. And that's speaking from a

595
00:34:02,760 --> 00:34:07,280
Speaker 4: market that's probably thirty of thirty third DMA in the country,

596
00:34:07,800 --> 00:34:12,319
Speaker 4: So you know that's over indexing pretty significantly. I think

597
00:34:12,520 --> 00:34:18,160
Speaker 4: more importantly the insider perspective there I would provide from

598
00:34:18,200 --> 00:34:22,080
Speaker 4: a value of the Chiefs franchise is the Hunt family

599
00:34:22,480 --> 00:34:27,000
Speaker 4: and the stability that they provide number one. But number two,

600
00:34:27,440 --> 00:34:30,600
Speaker 4: and I don't think Clark and his siblings got enough

601
00:34:30,640 --> 00:34:35,160
Speaker 4: credit for it, but they are following in the footsteps

602
00:34:35,160 --> 00:34:39,080
Speaker 4: of one of the most amazing innovators in all of sport.

603
00:34:39,239 --> 00:34:41,640
Speaker 4: When you look at the impact that Lamar Hunt has

604
00:34:41,640 --> 00:34:46,719
Speaker 4: had on football, soccer, tennis, and the fact that he's

605
00:34:46,760 --> 00:34:51,280
Speaker 4: in multiple Hall of Fames across multiple sports shows that impact.

606
00:34:52,200 --> 00:34:54,840
Speaker 4: They are following that lead. And I think when you

607
00:34:54,840 --> 00:34:58,920
Speaker 4: look at from an investment standpoint, it's investing in an

608
00:34:59,000 --> 00:35:01,839
Speaker 4: organization that is going to be innovative, that is going

609
00:35:01,840 --> 00:35:04,520
Speaker 4: to take advantage of opportunities like we are with the

610
00:35:04,520 --> 00:35:08,640
Speaker 4: international opportunity, and be willing to take risk, but also

611
00:35:08,680 --> 00:35:13,319
Speaker 4: do it in a methodical way, so you're taking good risk.

612
00:35:13,920 --> 00:35:16,200
Speaker 4: And you know, I'll go back to the international piece

613
00:35:16,239 --> 00:35:20,200
Speaker 4: as the most interesting example recently, and that is that

614
00:35:20,400 --> 00:35:22,319
Speaker 4: you know, we looked at, hey, we've got to take

615
00:35:22,320 --> 00:35:25,200
Speaker 4: advantage of this German opportunity. We invested for two and

616
00:35:25,239 --> 00:35:28,000
Speaker 4: a half years prior to even getting a game, and

617
00:35:28,000 --> 00:35:30,680
Speaker 4: that investment was with the hope of getting a game,

618
00:35:31,200 --> 00:35:35,080
Speaker 4: and that investment paid off significantly when we did get

619
00:35:35,080 --> 00:35:37,719
Speaker 4: the game, So it proved the model when we had

620
00:35:37,760 --> 00:35:40,400
Speaker 4: to take the risk and be innovative on the front end.

621
00:35:41,360 --> 00:35:45,040
Speaker 4: Just to bring that story full circle, we had our

622
00:35:45,040 --> 00:35:47,520
Speaker 4: game last year in Frankfurt. It was a huge success

623
00:35:47,520 --> 00:35:49,960
Speaker 4: for us. We invested a ton of people with resources

624
00:35:50,000 --> 00:35:53,200
Speaker 4: and money against that game. We had four or five

625
00:35:53,320 --> 00:35:58,600
Speaker 4: international partners, German based companies that were sponsors of US,

626
00:35:58,760 --> 00:36:03,640
Speaker 4: our organization and our game. This year we don't have

627
00:36:03,680 --> 00:36:05,680
Speaker 4: a game, we probably won't have a game again in

628
00:36:05,719 --> 00:36:08,960
Speaker 4: Germany for a number of years. And this year following that,

629
00:36:09,480 --> 00:36:12,760
Speaker 4: we just signed our largest international deal in our history.

630
00:36:13,000 --> 00:36:13,400
Speaker 3: Wow.

631
00:36:13,480 --> 00:36:16,640
Speaker 4: So it proves to that the model. But I think

632
00:36:16,719 --> 00:36:20,239
Speaker 4: the model doesn't work without that commitment to being methodical

633
00:36:20,280 --> 00:36:22,480
Speaker 4: but also being innovative and how you look at these

634
00:36:22,560 --> 00:36:23,440
Speaker 4: kind of investments.

635
00:36:25,120 --> 00:36:25,400
Speaker 2: Mark.

636
00:36:25,840 --> 00:36:28,839
Speaker 8: The term three peat is a registered trademark owned by

637
00:36:28,840 --> 00:36:32,360
Speaker 8: one pat Riley heat President, former Lakers Hall of Fame coach.

638
00:36:32,400 --> 00:36:35,400
Speaker 8: It's a term that's associated with teams like the Yankees,

639
00:36:35,440 --> 00:36:37,600
Speaker 8: the Bulls, the Lakers, Real Madrid. Not a lot of

640
00:36:37,640 --> 00:36:39,880
Speaker 8: teams have done it in professional sports, but the twenty

641
00:36:40,000 --> 00:36:43,960
Speaker 8: twenty four Kansas City Chiefs. I mean, my goodness, you

642
00:36:44,000 --> 00:36:46,680
Speaker 8: have an opportunity to do it. Talk to me, Xavier Worthy,

643
00:36:46,800 --> 00:36:48,799
Speaker 8: Rashi Rice, who should I draft for my fantasy team

644
00:36:48,840 --> 00:36:49,160
Speaker 8: this year?

645
00:36:50,600 --> 00:36:58,279
Speaker 4: Again the same way, Yes, the opportunity is pretty amazing.

646
00:36:59,120 --> 00:37:01,000
Speaker 4: We know what we know the stage we're on, we

647
00:37:01,080 --> 00:37:04,200
Speaker 4: know the opportunity. That's in front of us. I've been

648
00:37:04,239 --> 00:37:09,279
Speaker 4: sharing this perspective all preseason. You know, Brett Veach, our

649
00:37:09,360 --> 00:37:12,400
Speaker 4: general manager, has done an amazing job of putting together

650
00:37:12,880 --> 00:37:18,040
Speaker 4: a roster and really an organization that is operating at

651
00:37:18,040 --> 00:37:21,239
Speaker 4: a very, very high level. You got a Hall of

652
00:37:21,239 --> 00:37:24,799
Speaker 4: Fame coach and Andy Reid, who is you know, he

653
00:37:24,880 --> 00:37:27,640
Speaker 4: gets giddy when Brett gives him new toys to play

654
00:37:27,640 --> 00:37:31,160
Speaker 4: with in terms of athletes and players and ways that

655
00:37:31,239 --> 00:37:34,680
Speaker 4: coach can take advantage of their special skills. And then

656
00:37:34,680 --> 00:37:37,600
Speaker 4: you've got, you know, leadership on the player's side that

657
00:37:39,040 --> 00:37:43,160
Speaker 4: you know, it's it's really tough to match, and their

658
00:37:43,200 --> 00:37:46,560
Speaker 4: experience together is something that I think makes it uniquely valuable.

659
00:37:46,960 --> 00:37:49,479
Speaker 4: Having said all that, you know, these guys are taking

660
00:37:49,480 --> 00:37:51,960
Speaker 4: the approach which I'm really proud of, which is they

661
00:37:52,040 --> 00:37:55,720
Speaker 4: understand how hard they've worked over the past two years

662
00:37:56,040 --> 00:37:58,680
Speaker 4: to be on this stage and to have this opportunity

663
00:37:59,200 --> 00:38:01,840
Speaker 4: and their whole just go take advantage of this, do

664
00:38:01,960 --> 00:38:04,719
Speaker 4: things the way we do things, and take advantage in

665
00:38:04,760 --> 00:38:05,600
Speaker 4: this opportunity.

666
00:38:06,160 --> 00:38:09,640
Speaker 3: That's Kansas City Chiefs President Mark Donovan speaking with special

667
00:38:09,800 --> 00:38:14,360
Speaker 3: guest hosts Jason Kelly and Veranessa Pernomo of Bloomberg Originals

668
00:38:14,400 --> 00:38:18,160
Speaker 3: and of course our pal Damian sasaur Our thanks to

669
00:38:18,239 --> 00:38:21,480
Speaker 3: them and our thanks to you for joining us on

670
00:38:21,520 --> 00:38:24,600
Speaker 3: another edition of The Bloomberg Business of Sports. For my

671
00:38:24,680 --> 00:38:28,759
Speaker 3: colleagues Damien Sassauur and Scarlett Fou, I'm Michael Barr. Tune

672
00:38:28,800 --> 00:38:31,120
Speaker 3: in again next week for the latest on the stories

673
00:38:31,200 --> 00:38:34,360
Speaker 3: moving big money in the world of sports. You're listening

674
00:38:34,440 --> 00:38:37,720
Speaker 3: to The Bloomberg Business of Sports from Bloomberg Radio around

675
00:38:37,719 --> 00:38:38,280
Speaker 3: the world.