1 00:00:00,760 --> 00:00:04,760 Speaker 1: This is the Business of Sports. Sports are the greatest 2 00:00:04,840 --> 00:00:06,320 Speaker 1: unscripted show owner. 3 00:00:06,200 --> 00:00:08,400 Speaker 2: The next generation of players who really grew up with 4 00:00:08,440 --> 00:00:09,760 Speaker 2: tech and believe in tech. 5 00:00:09,840 --> 00:00:12,160 Speaker 3: Your face is your ticket, your face is your wallet, 6 00:00:12,240 --> 00:00:14,000 Speaker 3: Your face is your access to a club. 7 00:00:14,120 --> 00:00:19,960 Speaker 2: These are such iconic and important buildings for businesses. For fans, COVID. 8 00:00:19,440 --> 00:00:21,360 Speaker 4: Was one of the best things that ever happened to go. 9 00:00:21,640 --> 00:00:23,760 Speaker 5: The NFL is a bulletproof business. 10 00:00:23,840 --> 00:00:26,440 Speaker 3: Raising is unique because there is absolutely no reason why 11 00:00:26,520 --> 00:00:27,800 Speaker 3: we can't compete with the guys. 12 00:00:27,640 --> 00:00:28,600 Speaker 6: Wall It's pro pickleball. 13 00:00:28,640 --> 00:00:30,640 Speaker 3: Real are people really going to tune into this? 14 00:00:30,840 --> 00:00:33,400 Speaker 2: If you're playing moneyball with a huge bag of money, 15 00:00:33,560 --> 00:00:34,960 Speaker 2: you're going to be really, really good. 16 00:00:35,040 --> 00:00:38,200 Speaker 7: Bloomberg Business of Sports from Bloomberg Radio. 17 00:00:39,520 --> 00:00:42,479 Speaker 6: This is the Bloomberg Business of Sports, where we explore 18 00:00:42,479 --> 00:00:44,720 Speaker 6: the big money issues in the world of sports. I'ndm 19 00:00:44,720 --> 00:00:48,960 Speaker 6: Michael Bahr along with my colleagues Damian Sasaer and Vanessa Perdomo. 20 00:00:49,360 --> 00:00:52,520 Speaker 6: Coming up on the show, we'll hear from NHL Commissioner 21 00:00:52,600 --> 00:00:56,640 Speaker 6: Gary Beckman as we get ready for another season of hockey. 22 00:00:57,040 --> 00:01:00,800 Speaker 8: You look for big events, for big stories, and you 23 00:01:00,960 --> 00:01:06,200 Speaker 8: use every platform imaginable, whether it's linear streaming platform social 24 00:01:06,240 --> 00:01:09,840 Speaker 8: media and no different than what we did in February 25 00:01:09,959 --> 00:01:14,240 Speaker 8: with the Four Nations Tournament. I mean, we created something 26 00:01:14,280 --> 00:01:18,119 Speaker 8: that even if you weren't a hockey fan, even if 27 00:01:18,120 --> 00:01:22,000 Speaker 8: you weren't a sports fan, you felt compelled to tune 28 00:01:22,080 --> 00:01:26,399 Speaker 8: in because it was so topical and so intriguing. People 29 00:01:26,440 --> 00:01:27,320 Speaker 8: wanted to know more. 30 00:01:27,520 --> 00:01:31,920 Speaker 6: Betman spoke on stage alongside Monumental Sports and Entertainment founder 31 00:01:32,000 --> 00:01:36,280 Speaker 6: Ted Leonsis in a panel moderated by our own Scarlet 32 00:01:36,280 --> 00:01:40,080 Speaker 6: Foo recently at Bloomberg Power Players, New York. All that 33 00:01:40,280 --> 00:01:42,679 Speaker 6: is on the way on the Bloomberg Business of Sports, 34 00:01:42,760 --> 00:01:46,520 Speaker 6: But first, the next Winter Olympics are right around the 35 00:01:46,560 --> 00:01:50,160 Speaker 6: corner and preparations are well underway for the next Summer 36 00:01:50,200 --> 00:01:53,720 Speaker 6: Olympics that hit Los Angeles in twenty twenty eight. To 37 00:01:53,760 --> 00:01:57,200 Speaker 6: give us an update on all things Olympics, we welcome 38 00:01:57,280 --> 00:02:01,080 Speaker 6: back Sarah Hirschlan. She's Chief executive officer of the US 39 00:02:01,160 --> 00:02:05,560 Speaker 6: Olympic and Paralympic Committee. Sarah, welcome back to the Bloomberg 40 00:02:05,600 --> 00:02:09,680 Speaker 6: Business of Sports. I am so glad that you have 41 00:02:09,880 --> 00:02:11,919 Speaker 6: joined us, and I want to talk about some of 42 00:02:11,960 --> 00:02:14,680 Speaker 6: the things that you're doing with the US Olympic and 43 00:02:14,760 --> 00:02:20,040 Speaker 6: Paralympic Committee. Where do you see it now for the 44 00:02:20,160 --> 00:02:24,320 Speaker 6: upcoming games? Where do you see the committee heading in 45 00:02:24,400 --> 00:02:25,880 Speaker 6: this in these race? 46 00:02:26,960 --> 00:02:30,200 Speaker 3: Well, as you know, in February, we will take a 47 00:02:30,240 --> 00:02:34,720 Speaker 3: delegation of Team USA to Italy anchored in Milan, but 48 00:02:35,240 --> 00:02:38,600 Speaker 3: with a strong presence up in Courtina Lavigno. So we'll 49 00:02:38,639 --> 00:02:42,520 Speaker 3: be spread up, spread across the Italian Alps with what 50 00:02:42,639 --> 00:02:46,320 Speaker 3: I will say is one of the strongest Winter Team 51 00:02:46,440 --> 00:02:48,880 Speaker 3: USA teams we've seen in quite some time. So we're 52 00:02:49,040 --> 00:02:50,720 Speaker 3: we're optimistic and excited. 53 00:02:51,320 --> 00:02:53,440 Speaker 9: My goodness, spread across the Italian Alps. It doesn't sound 54 00:02:53,440 --> 00:02:54,280 Speaker 9: too bad, doesn't Michael. 55 00:02:54,400 --> 00:02:57,320 Speaker 6: No, I think we can tag along. Yeah, you need 56 00:02:57,320 --> 00:02:58,480 Speaker 6: someone to carry the luggage. 57 00:02:58,560 --> 00:02:59,360 Speaker 5: Just called me center. 58 00:03:00,120 --> 00:03:02,639 Speaker 9: Yeah. So in this time, in the next few months, 59 00:03:02,680 --> 00:03:06,600 Speaker 9: what are you know, what's your biggest you know, things 60 00:03:06,639 --> 00:03:08,360 Speaker 9: that you have to worry about and that you have 61 00:03:08,440 --> 00:03:11,919 Speaker 9: to strategize for for team you say, to be ready 62 00:03:11,919 --> 00:03:13,840 Speaker 9: for those games in February, Well, a. 63 00:03:13,800 --> 00:03:17,000 Speaker 3: Few pretty pretty important things. Number one, we've got to 64 00:03:17,040 --> 00:03:20,200 Speaker 3: make sure all the athletes qualify. So there is a 65 00:03:20,639 --> 00:03:23,280 Speaker 3: quite a series of you know, as we like to say, 66 00:03:23,520 --> 00:03:25,920 Speaker 3: making Team USA, you got to make the Olympic and 67 00:03:25,919 --> 00:03:29,639 Speaker 3: Paralympic team first, so a lot of qualification events those 68 00:03:29,680 --> 00:03:33,919 Speaker 3: will actually start here very soon across all of the 69 00:03:34,040 --> 00:03:37,320 Speaker 3: winter sports. And then there will be some team selections 70 00:03:37,320 --> 00:03:39,760 Speaker 3: as you can imagine something like our ice hockey teams, 71 00:03:40,680 --> 00:03:43,680 Speaker 3: those coaches and captains will go through a process of 72 00:03:43,720 --> 00:03:46,840 Speaker 3: selecting the individual athletes who will represent us on those teams. 73 00:03:46,880 --> 00:03:50,480 Speaker 3: So you got to qualify first. Our organization spending a 74 00:03:50,520 --> 00:03:52,680 Speaker 3: lot of time making sure we have all of the 75 00:03:52,760 --> 00:03:55,960 Speaker 3: logistics in place so that when we get on the ground, 76 00:03:56,600 --> 00:04:00,520 Speaker 3: these athletes have all of the support resources that they're 77 00:04:00,560 --> 00:04:04,480 Speaker 3: accustomed to in their training environments. And you know, that's 78 00:04:04,520 --> 00:04:08,720 Speaker 3: everything from nutrition to recovery equipment to sports medicine support, 79 00:04:09,560 --> 00:04:12,600 Speaker 3: making sure that they can be in an environment that's 80 00:04:12,640 --> 00:04:16,560 Speaker 3: going to allow them to reach their highest potential at 81 00:04:16,560 --> 00:04:20,799 Speaker 3: exactly the right moment. And you know the core the secret, 82 00:04:20,839 --> 00:04:22,760 Speaker 3: if you will, that's not such a secret, is we 83 00:04:22,800 --> 00:04:25,159 Speaker 3: always say if we get Team USA to the start 84 00:04:25,160 --> 00:04:26,960 Speaker 3: line healthy, we like our chances. 85 00:04:27,320 --> 00:04:30,680 Speaker 1: Yes, so, you know, Sarah, For me, it's the question 86 00:04:30,720 --> 00:04:33,400 Speaker 1: I have is what are you doing? Twenty twenty five 87 00:04:33,480 --> 00:04:35,680 Speaker 1: is an off year, you know, but there's so much 88 00:04:35,760 --> 00:04:38,400 Speaker 1: preparation that goes hand in hand with getting the venues ready, 89 00:04:38,440 --> 00:04:40,119 Speaker 1: getting actually the athletes ready. 90 00:04:40,720 --> 00:04:42,919 Speaker 2: You know, where are you most focused right this minute? 91 00:04:42,960 --> 00:04:45,400 Speaker 3: It's it's you know, the year after a Summer Games 92 00:04:45,400 --> 00:04:47,800 Speaker 3: and right before Winter Games is naturally a bit of 93 00:04:47,800 --> 00:04:48,880 Speaker 3: a transition. 94 00:04:48,480 --> 00:04:51,400 Speaker 4: Year for us. So you're right, it's a combination. 95 00:04:51,040 --> 00:04:54,640 Speaker 3: Of some long term planning obviously the short term planning 96 00:04:54,640 --> 00:04:57,240 Speaker 3: and work that goes into preparations for the Winter Games, 97 00:04:57,760 --> 00:04:59,760 Speaker 3: but it's also an opportunity for us to make sure 98 00:04:59,800 --> 00:05:03,200 Speaker 3: that focused on you know, what's on the long horizon 99 00:05:03,360 --> 00:05:08,039 Speaker 3: and are we set up properly to drive a good, strong, 100 00:05:08,200 --> 00:05:11,680 Speaker 3: healthy sport culture for many years to come. So we 101 00:05:12,120 --> 00:05:15,880 Speaker 3: do work on what we call quadrennial planning, a four 102 00:05:15,960 --> 00:05:20,240 Speaker 3: year long range plan looking out ahead. Obviously, for us, 103 00:05:20,640 --> 00:05:23,559 Speaker 3: we're in the unique situation of having the LA twenty 104 00:05:23,600 --> 00:05:26,720 Speaker 3: eight Games in our next four year cycle, so it 105 00:05:26,839 --> 00:05:30,200 Speaker 3: is getting the people, getting the resources in place, human 106 00:05:30,240 --> 00:05:32,200 Speaker 3: and financial to be ready. 107 00:05:33,520 --> 00:05:37,520 Speaker 6: In late July, the Committee they updated its policies on 108 00:05:37,680 --> 00:05:41,880 Speaker 6: transgender athletes. Can you tell us more about what the 109 00:05:41,880 --> 00:05:42,760 Speaker 6: committee decided? 110 00:05:43,200 --> 00:05:46,000 Speaker 3: You know, a real and this has been, as you 111 00:05:46,040 --> 00:05:50,520 Speaker 3: guys well know, a really robust discussion, I would say 112 00:05:51,360 --> 00:05:55,760 Speaker 3: across across global sport, across this country, but also with 113 00:05:55,839 --> 00:05:58,400 Speaker 3: our peers around the world, and I think there's a 114 00:05:58,560 --> 00:06:05,280 Speaker 3: very strong commitment in many places, many countries, many hallways 115 00:06:05,320 --> 00:06:09,039 Speaker 3: in the United States, a very strong commitment to protecting 116 00:06:09,400 --> 00:06:12,640 Speaker 3: women's sports in particular and a real focus on ensuring 117 00:06:13,240 --> 00:06:16,520 Speaker 3: that the gains we've made in the US in particular 118 00:06:17,600 --> 00:06:23,680 Speaker 3: continue to provide fair opportunities, safe opportunities for women to 119 00:06:23,800 --> 00:06:24,880 Speaker 3: compete in sport. 120 00:06:25,240 --> 00:06:27,200 Speaker 4: And that's really exactly what this is. 121 00:06:27,200 --> 00:06:30,039 Speaker 9: About, and that obviously comes off of the back of 122 00:06:30,560 --> 00:06:37,240 Speaker 9: President Trump's declaration right of keeping women's sports and protecting 123 00:06:37,240 --> 00:06:37,960 Speaker 9: women's sports. 124 00:06:38,080 --> 00:06:38,560 Speaker 2: Is that right? 125 00:06:38,880 --> 00:06:39,360 Speaker 4: That's right. 126 00:06:39,400 --> 00:06:43,120 Speaker 3: The administration and the President in particular have been really 127 00:06:43,200 --> 00:06:45,680 Speaker 3: vocal on this topic, and it's an area where we 128 00:06:45,720 --> 00:06:50,360 Speaker 3: see tremendous support from the public at large. People understand 129 00:06:51,040 --> 00:06:53,960 Speaker 3: fairness in sport and safety in sport above all else. 130 00:06:54,480 --> 00:06:57,080 Speaker 3: Athletes will tell us it's the single most important two 131 00:06:57,160 --> 00:07:00,000 Speaker 3: issues to them, and so we feel a real obligation 132 00:07:00,160 --> 00:07:02,000 Speaker 3: to make sure we're listening and paying attention to what 133 00:07:02,080 --> 00:07:04,559 Speaker 3: is it going to take to provide both a safe 134 00:07:04,600 --> 00:07:08,080 Speaker 3: environment but also you know, fairness that everyone feels like 135 00:07:08,120 --> 00:07:09,800 Speaker 3: they arrive on the field of play with a level 136 00:07:09,800 --> 00:07:10,400 Speaker 3: playing field. 137 00:07:10,920 --> 00:07:14,120 Speaker 1: Sarah, talk to me about ski mountaineering. It's a new 138 00:07:14,200 --> 00:07:17,320 Speaker 1: sport in twenty twenty six. What other new sports are 139 00:07:17,320 --> 00:07:19,320 Speaker 1: coming to the Olympics in the not too distant future. 140 00:07:19,640 --> 00:07:21,760 Speaker 3: Well, that's the one in twenty twenty six on the 141 00:07:21,800 --> 00:07:24,160 Speaker 3: winter side, and it will be you know, we do 142 00:07:24,480 --> 00:07:27,400 Speaker 3: there are people in the United States who are ski 143 00:07:27,480 --> 00:07:31,800 Speaker 3: mountaineer athletes, and so we will hope to have a 144 00:07:31,880 --> 00:07:36,160 Speaker 3: team there competing, but not something that's been you know, 145 00:07:36,240 --> 00:07:38,960 Speaker 3: mainstream and really popular, so I think the US will. 146 00:07:38,800 --> 00:07:39,360 Speaker 4: Find it fun. 147 00:07:39,400 --> 00:07:41,720 Speaker 3: It's quite an endurance sport, and we tend to like 148 00:07:42,160 --> 00:07:44,920 Speaker 3: the endurance sports. You know, you could almost liken it 149 00:07:44,920 --> 00:07:49,760 Speaker 3: to long distance running or cycling, but the combination of 150 00:07:50,280 --> 00:07:53,200 Speaker 3: some endurance and some speed. So it'll be fun to watch. 151 00:07:54,120 --> 00:07:56,400 Speaker 3: When we get to Los Angeles. On the summer side, 152 00:07:56,440 --> 00:08:00,520 Speaker 3: we know we'll see squash, we'll see flag foot, and 153 00:08:00,560 --> 00:08:02,920 Speaker 3: I'll call out in particular there that one will be 154 00:08:02,920 --> 00:08:07,280 Speaker 3: fun for both men and women. We'll see baseball, softball 155 00:08:07,320 --> 00:08:09,720 Speaker 3: come back, We'll see lacrosse come to the games for 156 00:08:09,760 --> 00:08:13,120 Speaker 3: the first time, and we'll see I think I mentioned squash, 157 00:08:13,120 --> 00:08:15,120 Speaker 3: and we'll see cricket for the first time, so some 158 00:08:16,480 --> 00:08:20,280 Speaker 3: very popular global sports back in the games in Los Angeles. 159 00:08:20,600 --> 00:08:23,880 Speaker 9: Obviously we saw a huge resurgence, just felt like a 160 00:08:23,880 --> 00:08:26,520 Speaker 9: big resurgence in twenty twenty four the Paris Games just. 161 00:08:26,440 --> 00:08:27,960 Speaker 4: Being so so successful. 162 00:08:28,600 --> 00:08:32,040 Speaker 9: And then now kind of not to take a step back, 163 00:08:32,160 --> 00:08:36,440 Speaker 9: but what's going on with college athletics and given the 164 00:08:36,559 --> 00:08:40,920 Speaker 9: NCAA House settlement that now was passed that looks to 165 00:08:41,320 --> 00:08:46,440 Speaker 9: potentially have some some adverse effects on Olympic style sports, 166 00:08:46,760 --> 00:08:48,600 Speaker 9: are you at all worried about that? Given that a 167 00:08:48,600 --> 00:08:51,760 Speaker 9: lot of teamsay is made up of college athletes or 168 00:08:51,840 --> 00:08:53,800 Speaker 9: athletes that train at colleges. 169 00:08:55,240 --> 00:09:00,400 Speaker 3: We have been very vocal for some time years now 170 00:09:00,840 --> 00:09:03,960 Speaker 3: in the halls of Congress and among our peers in 171 00:09:04,040 --> 00:09:09,439 Speaker 3: the collegiate space advocating for the preservation of broad based 172 00:09:09,600 --> 00:09:15,120 Speaker 3: sport opportunities on our campuses. The US is the envy 173 00:09:15,160 --> 00:09:17,640 Speaker 3: of the world. We are the greatest sporting nation in 174 00:09:17,679 --> 00:09:20,920 Speaker 3: the world, and a huge component of that is the 175 00:09:21,080 --> 00:09:25,520 Speaker 3: education based sports system that we have always enjoyed. And 176 00:09:25,600 --> 00:09:30,120 Speaker 3: so to see that sports system threatened and changing in 177 00:09:30,920 --> 00:09:33,800 Speaker 3: you know, elementary, middle school, high schools, as it has 178 00:09:34,280 --> 00:09:38,199 Speaker 3: and to now see that broad based sport offering threatened 179 00:09:38,320 --> 00:09:41,959 Speaker 3: at the collegiate level is absolutely concerning to us, and 180 00:09:42,040 --> 00:09:44,800 Speaker 3: so yes, we are very focused on it. 181 00:09:44,880 --> 00:09:46,000 Speaker 4: We are we're. 182 00:09:45,920 --> 00:09:49,480 Speaker 3: We're advocating, we're lobbying, and we're sitting at every table 183 00:09:50,200 --> 00:09:53,800 Speaker 3: that we can to be part of the conversation around 184 00:09:54,440 --> 00:09:55,480 Speaker 3: creating solutions. 185 00:09:56,440 --> 00:09:59,320 Speaker 1: Further to that, how does name image likeness affect you? 186 00:09:59,400 --> 00:10:01,640 Speaker 1: How does it affect Olympic athletes? Do you see there 187 00:10:01,720 --> 00:10:04,800 Speaker 1: be incentives, you know, for them to move away from 188 00:10:05,040 --> 00:10:07,520 Speaker 1: amateur sports, from the Olympics or is I mean, what 189 00:10:07,559 --> 00:10:09,079 Speaker 1: do you what are you doing to compete with all that? 190 00:10:09,520 --> 00:10:12,160 Speaker 3: I think the important thing is we have to separate 191 00:10:13,120 --> 00:10:19,280 Speaker 3: true name image likeness from the pay to play environment, 192 00:10:19,440 --> 00:10:24,640 Speaker 3: and that unfortunately hasn't happened effectively in the collegiate environment. 193 00:10:26,160 --> 00:10:30,880 Speaker 3: We are and have been huge advocates for athletes to 194 00:10:31,040 --> 00:10:35,280 Speaker 3: capitalize on their name, image and likeness to generate income. 195 00:10:36,360 --> 00:10:39,920 Speaker 3: We've been supporters of that at the Olympic and Paralympic level. 196 00:10:39,920 --> 00:10:42,280 Speaker 4: We're supporters of that at the collegiate level. 197 00:10:42,800 --> 00:10:47,280 Speaker 3: And there are athletes who've been wildly successful in in 198 00:10:47,520 --> 00:10:51,240 Speaker 3: becoming you know, marketing, marketing, geniuses in their own right 199 00:10:51,840 --> 00:10:55,000 Speaker 3: and capitalizing on their on their name, image and likeness 200 00:10:55,000 --> 00:10:58,840 Speaker 3: to drive real income. And that's that's good and positive 201 00:10:58,920 --> 00:11:03,160 Speaker 3: and should be encouraged. But the distinction between that and 202 00:11:03,200 --> 00:11:06,760 Speaker 3: what has become recruiting endorsements is a very different thing. 203 00:11:07,440 --> 00:11:11,239 Speaker 3: And that's where the struggles and challenge in collegiate athletics 204 00:11:11,280 --> 00:11:16,679 Speaker 3: is navigating how you properly ensure athletes have the ability 205 00:11:16,720 --> 00:11:21,000 Speaker 3: to earn in an appropriate and fair way. We have 206 00:11:21,200 --> 00:11:25,200 Speaker 3: the same sort of you know, principles and premises. We 207 00:11:25,240 --> 00:11:29,160 Speaker 3: would love for Team USA athletes to have significantly greater 208 00:11:29,240 --> 00:11:30,560 Speaker 3: income than they do. 209 00:11:31,240 --> 00:11:33,000 Speaker 4: We're working really. 210 00:11:32,720 --> 00:11:35,719 Speaker 3: Hard to improve upon that. In fact, this year was 211 00:11:35,760 --> 00:11:39,120 Speaker 3: a huge milestone for US. You guys know, a big 212 00:11:39,160 --> 00:11:41,839 Speaker 3: part of our revenue and our funding comes from the 213 00:11:41,880 --> 00:11:45,200 Speaker 3: American public through philanthropy. We had our first one hundred 214 00:11:45,280 --> 00:11:50,920 Speaker 3: million dollar donation by an incredibly generous gentleman and his 215 00:11:50,960 --> 00:11:55,480 Speaker 3: family named Ross Stevens, who created the Stevens Awards, and 216 00:11:56,040 --> 00:11:59,000 Speaker 3: that is income directly to athletes. It's one hundred thousand 217 00:11:59,000 --> 00:12:01,480 Speaker 3: dollars grant and a hundred one thousand dollars life insurance 218 00:12:01,840 --> 00:12:04,720 Speaker 3: for athletes who make Team USA and the Winter Games 219 00:12:04,720 --> 00:12:06,840 Speaker 3: in twenty six will be the first group of athletes 220 00:12:06,880 --> 00:12:09,800 Speaker 3: who receive that benefit. So a lot of us are 221 00:12:09,840 --> 00:12:12,560 Speaker 3: working on the right ways to ensure athletes have earning. 222 00:12:13,360 --> 00:12:15,280 Speaker 3: The key is to make sure that we do it 223 00:12:15,280 --> 00:12:17,240 Speaker 3: in ways it's going to incent the right behaviors. 224 00:12:17,640 --> 00:12:20,840 Speaker 6: Sarah Hirschland, Chief Executive Officer of the US Olympic and 225 00:12:21,000 --> 00:12:25,480 Speaker 6: Paralympic Committee. We are so grateful that you came to 226 00:12:25,679 --> 00:12:29,240 Speaker 6: join us and talk with Bloomberg's Business of Sports. We 227 00:12:29,320 --> 00:12:30,680 Speaker 6: really do appreciate it. 228 00:12:30,679 --> 00:12:32,320 Speaker 4: It's always a pleasure to be with you guys. 229 00:12:32,360 --> 00:12:32,640 Speaker 3: Thank you. 230 00:12:33,320 --> 00:12:36,480 Speaker 6: Up next, we turn to sports tech and a firm 231 00:12:36,600 --> 00:12:40,240 Speaker 6: investing in the people and products that will power the 232 00:12:40,280 --> 00:12:44,680 Speaker 6: future of sports. From colleagues Vanessa Perdomo and Damian Sasauer. 233 00:12:44,840 --> 00:12:48,400 Speaker 6: I'm Michael Barr. You are listening to the Bloomberg Business 234 00:12:48,400 --> 00:12:54,679 Speaker 6: of Sports Bloomberger Radio around the world. 235 00:12:54,720 --> 00:12:58,720 Speaker 9: This is Bloomberg Business at Sports from Bloomberg Radio. 236 00:13:00,440 --> 00:13:03,000 Speaker 6: This is the Bloomberg Business of Sports. We explore the 237 00:13:03,000 --> 00:13:05,680 Speaker 6: big money issues in the world of sports. I'm Michael 238 00:13:05,720 --> 00:13:10,199 Speaker 6: Barr along with my colleagues Damian Sasawer and Vanessa Perdomo. 239 00:13:10,520 --> 00:13:14,240 Speaker 6: Now for a look at the sports Tech World. Seventy 240 00:13:14,280 --> 00:13:17,719 Speaker 6: six Capital is a sports tech venture capital company that 241 00:13:17,800 --> 00:13:22,719 Speaker 6: focuses on the people and products that are building the data, analytics, 242 00:13:23,000 --> 00:13:27,000 Speaker 6: and technology that will power the future of sports. Joining 243 00:13:27,080 --> 00:13:31,120 Speaker 6: us now is Wayne Kimmel. He's managing partner at seventy 244 00:13:31,160 --> 00:13:35,240 Speaker 6: six Capital. Wayne, Welcome to the Bloomberg Business of Sports. 245 00:13:35,800 --> 00:13:38,640 Speaker 5: Thanks for having me. This is really exciting to be here. 246 00:13:38,920 --> 00:13:42,839 Speaker 6: This is I'm excited because you know me, I hate Yes, 247 00:13:42,920 --> 00:13:46,360 Speaker 6: I bet, Yes, I do, and I'm not good at it, 248 00:13:46,400 --> 00:13:50,080 Speaker 6: but I bet. Have we hit a point now where 249 00:13:50,120 --> 00:13:53,440 Speaker 6: the market has saturated with online betting? 250 00:13:54,240 --> 00:13:57,079 Speaker 5: Not yet? I mean I really don't think we've hit 251 00:13:57,320 --> 00:14:00,280 Speaker 5: a point yet. We certainly have where draft can and 252 00:14:00,360 --> 00:14:04,679 Speaker 5: FanDuel have taken the lead with betting today. But at 253 00:14:04,679 --> 00:14:09,160 Speaker 5: the same time you've got BETMGM fanatics nipping at their heels. 254 00:14:09,240 --> 00:14:13,400 Speaker 5: You've got also, at the same time, the prediction markets, 255 00:14:13,960 --> 00:14:17,520 Speaker 5: and that's a whole other can of worms, which really 256 00:14:17,840 --> 00:14:23,120 Speaker 5: now has betting legal in fifty different states now, not 257 00:14:23,360 --> 00:14:26,240 Speaker 5: just the thirty eight, thirty nine, forty whatever it is 258 00:14:27,040 --> 00:14:30,240 Speaker 5: the regulated states now, it's everywhere. So it's really really 259 00:14:30,240 --> 00:14:34,120 Speaker 5: interesting to see what's going to happen next but for us, look, 260 00:14:34,160 --> 00:14:37,320 Speaker 5: it's all about making sure that betting is safe and 261 00:14:37,400 --> 00:14:40,480 Speaker 5: fun and we're just making sure that there's true integrity, 262 00:14:40,680 --> 00:14:43,680 Speaker 5: there's real compliance with everything that's going on across that 263 00:14:43,800 --> 00:14:45,680 Speaker 5: and that's where you know, one of our companies, I 264 00:14:45,720 --> 00:14:48,600 Speaker 5: through sixty IC three sixty is right in the middle 265 00:14:48,640 --> 00:14:49,200 Speaker 5: of all that. 266 00:14:49,680 --> 00:14:52,200 Speaker 9: Which is really important obviously, and when we're talking about 267 00:14:52,320 --> 00:14:56,040 Speaker 9: security and all that, and it's particularly struggling right now 268 00:14:56,120 --> 00:14:58,160 Speaker 9: in the prediction markets, I would say, right, it's it's 269 00:14:58,160 --> 00:15:01,840 Speaker 9: a little bit less regulated than where there's those things 270 00:15:01,920 --> 00:15:05,080 Speaker 9: there that aren't really regulated as much. So how do 271 00:15:05,120 --> 00:15:08,440 Speaker 9: you figure that when it comes to the entire betting process. 272 00:15:08,680 --> 00:15:10,880 Speaker 5: Well, look, I think in general, what we really want 273 00:15:10,920 --> 00:15:13,840 Speaker 5: to make sure is that there's true integrity and there's 274 00:15:14,040 --> 00:15:18,200 Speaker 5: really no anomalies across the whole space. And that's what 275 00:15:18,280 --> 00:15:20,680 Speaker 5: our team at IC three sixty really works on to 276 00:15:20,720 --> 00:15:24,120 Speaker 5: make sure and just making sure that people are doing 277 00:15:24,160 --> 00:15:25,640 Speaker 5: the right thing right. I mean, I think that's the 278 00:15:25,720 --> 00:15:27,680 Speaker 5: key to everything. If everything's on the up and up. 279 00:15:27,960 --> 00:15:33,800 Speaker 5: We can't let professional sports turn into a scripted something 280 00:15:33,880 --> 00:15:36,000 Speaker 5: like wrestling like it can't be that. We need to 281 00:15:36,040 --> 00:15:38,000 Speaker 5: be able to be in a position where we know 282 00:15:38,440 --> 00:15:42,520 Speaker 5: that what's going on on the field is really what's happening, 283 00:15:42,840 --> 00:15:44,200 Speaker 5: and that's the most important thing for us. 284 00:15:44,240 --> 00:15:46,960 Speaker 1: Wayne. You know, you're the managing partner of seventy six Capital, 285 00:15:46,960 --> 00:15:49,000 Speaker 1: and the reason Michael Barr and we started asking about 286 00:15:49,000 --> 00:15:50,960 Speaker 1: sports betting is because that's really been your focus for 287 00:15:51,000 --> 00:15:52,880 Speaker 1: the better part of the last few years. And you know, 288 00:15:53,120 --> 00:15:55,240 Speaker 1: but you know, at seventy six, you invest in all 289 00:15:55,240 --> 00:15:57,920 Speaker 1: sorts of different companies of all different shapes and sizes, 290 00:15:58,440 --> 00:16:00,240 Speaker 1: and I just have to ask you, you know that 291 00:16:00,280 --> 00:16:03,160 Speaker 1: world of sports as an asset class, you know, talk 292 00:16:03,200 --> 00:16:06,000 Speaker 1: to us about exit strategies because it's really easy to 293 00:16:06,120 --> 00:16:09,200 Speaker 1: invest in a good idea and it's really really difficult 294 00:16:09,240 --> 00:16:12,040 Speaker 1: to crystallize that in terms of returns for you and 295 00:16:12,080 --> 00:16:13,920 Speaker 1: your partner. So talk to us a little bit about 296 00:16:14,000 --> 00:16:16,800 Speaker 1: your approach, how you work with these companies, how you 297 00:16:16,840 --> 00:16:18,760 Speaker 1: get them cash flow positive, and how you get them 298 00:16:18,760 --> 00:16:21,320 Speaker 1: and you know, into cruising altitude. 299 00:16:21,480 --> 00:16:24,840 Speaker 5: Yeah, I think what's really important is to make sure 300 00:16:24,880 --> 00:16:29,040 Speaker 5: that these companies are truly ready to go and sort 301 00:16:29,080 --> 00:16:33,080 Speaker 5: of moving forward and working with our companies so that 302 00:16:33,160 --> 00:16:36,240 Speaker 5: they then can be one of those companies that we 303 00:16:36,320 --> 00:16:39,480 Speaker 5: can sell like we did with Vson selling them to DraftKings, 304 00:16:39,600 --> 00:16:42,160 Speaker 5: or you know, selling a company to Fubo TV or 305 00:16:42,200 --> 00:16:44,960 Speaker 5: the pylon cams you see on NFL fields that's was 306 00:16:45,000 --> 00:16:46,920 Speaker 5: sold to Cosm and then Cosm RaSE two hundred and 307 00:16:46,920 --> 00:16:49,600 Speaker 5: fifty million dollars open up more of their venues. So 308 00:16:49,640 --> 00:16:53,400 Speaker 5: for us, it's really all about getting behind amazing entrepreneurs 309 00:16:53,640 --> 00:16:57,600 Speaker 5: who are truly doing something innovative. And then and most times, 310 00:16:57,600 --> 00:17:00,360 Speaker 5: the stuff that we invest in our companies that are involved, 311 00:17:00,440 --> 00:17:05,119 Speaker 5: that have have hardcore technology, data and analytics, and we 312 00:17:05,400 --> 00:17:07,800 Speaker 5: really help those companies and help build those companies and 313 00:17:07,840 --> 00:17:10,680 Speaker 5: make sure that they have relationships with the teams, the leagues, 314 00:17:11,160 --> 00:17:14,880 Speaker 5: those sports betting regulators, of sports books themselves, and also 315 00:17:15,320 --> 00:17:16,840 Speaker 5: you know, just think about you know, it could be 316 00:17:16,920 --> 00:17:19,920 Speaker 5: at any as any part of the overall landscape from 317 00:17:20,160 --> 00:17:23,159 Speaker 5: professional sports where they work in, or college sports, or 318 00:17:23,160 --> 00:17:24,840 Speaker 5: it could be even on the youth side of things. 319 00:17:24,880 --> 00:17:27,399 Speaker 5: There's so much to do out there right now. But 320 00:17:27,400 --> 00:17:29,960 Speaker 5: for us, it's really all about making sure that we 321 00:17:30,040 --> 00:17:33,520 Speaker 5: get behind amazing companies, we get them moving, and then 322 00:17:34,040 --> 00:17:35,959 Speaker 5: that they start to really execute and do what they 323 00:17:35,960 --> 00:17:36,560 Speaker 5: need to do well. 324 00:17:36,600 --> 00:17:38,400 Speaker 1: When you made an interesting point there, I mean all 325 00:17:38,440 --> 00:17:40,920 Speaker 1: of those exits were selling to a private right or 326 00:17:40,960 --> 00:17:43,560 Speaker 1: you know, to a larger company. You know, it wasn't 327 00:17:43,720 --> 00:17:45,679 Speaker 1: a public listing so to speak, was in an IPO, 328 00:17:45,840 --> 00:17:47,560 Speaker 1: you know, the traditional way that a lot of you know, 329 00:17:47,600 --> 00:17:50,679 Speaker 1: private equity investors try to you know, to cash in. 330 00:17:50,760 --> 00:17:53,119 Speaker 1: But you know, talk to me about you know, the 331 00:17:53,160 --> 00:17:55,840 Speaker 1: depth of that market, you know, and an operating link. 332 00:17:55,880 --> 00:17:57,320 Speaker 1: You who's been in the business since you know, I 333 00:17:57,359 --> 00:18:00,280 Speaker 1: mean the late nineties. You know those relationships and how 334 00:18:00,359 --> 00:18:02,159 Speaker 1: important they are. I mean, you have your athlete in 335 00:18:02,160 --> 00:18:04,440 Speaker 1: Residence program at seventy six. Talk to us a little 336 00:18:04,480 --> 00:18:07,800 Speaker 1: bit about how you work with your investors, your constituents, 337 00:18:07,840 --> 00:18:09,800 Speaker 1: and you kind of get to that point where you 338 00:18:09,840 --> 00:18:11,960 Speaker 1: have those relationships that you can even take a good 339 00:18:11,960 --> 00:18:15,359 Speaker 1: idea or a well functioning opportunity and bring it to 340 00:18:15,400 --> 00:18:16,200 Speaker 1: somebody's attention. 341 00:18:16,840 --> 00:18:18,199 Speaker 5: I think one of the big things that we do 342 00:18:18,240 --> 00:18:20,719 Speaker 5: at seventy six Capital is really work closely with our 343 00:18:20,760 --> 00:18:24,119 Speaker 5: companies and help them with their with their marketing, with 344 00:18:24,160 --> 00:18:26,560 Speaker 5: their branding so they actually get out there into the 345 00:18:26,560 --> 00:18:29,719 Speaker 5: market so that they are a brand name when it 346 00:18:29,760 --> 00:18:32,920 Speaker 5: comes to the NFL or the NBA or any of 347 00:18:32,960 --> 00:18:37,680 Speaker 5: those leagues. At the same time, we sometimes will use 348 00:18:37,800 --> 00:18:41,080 Speaker 5: the help of an athlete who can help us maybe 349 00:18:41,280 --> 00:18:44,080 Speaker 5: you know, market the company a little bit to get 350 00:18:44,080 --> 00:18:45,680 Speaker 5: them get them out there a little bit. So that's 351 00:18:45,680 --> 00:18:48,639 Speaker 5: something that we'll certainly do. But I think the key 352 00:18:48,720 --> 00:18:53,000 Speaker 5: for everything is really that these companies have the best technology. 353 00:18:53,240 --> 00:18:56,159 Speaker 5: That's that they that they have to be able to 354 00:18:57,000 --> 00:19:00,719 Speaker 5: work really closely with incredible media companies like esp I mean, 355 00:19:00,760 --> 00:19:02,840 Speaker 5: as an example, you know one of our companies is 356 00:19:02,920 --> 00:19:07,080 Speaker 5: literally powering the personalization and customization of the ESPN app 357 00:19:07,119 --> 00:19:10,399 Speaker 5: that's out there today. We're super excited about that, and 358 00:19:10,440 --> 00:19:11,959 Speaker 5: that's something that you know, you won't know the name 359 00:19:12,000 --> 00:19:13,800 Speaker 5: of the business is not really that important, but it's 360 00:19:14,000 --> 00:19:16,760 Speaker 5: when you see your fantasy and you see your bets, 361 00:19:16,760 --> 00:19:20,560 Speaker 5: and you see everything that's personalized to you that's coming 362 00:19:20,600 --> 00:19:21,720 Speaker 5: through the tech side of things. 363 00:19:21,920 --> 00:19:24,280 Speaker 6: I want to talk about. You were an investor in 364 00:19:24,440 --> 00:19:26,960 Speaker 6: Vson when the whole thing started, and I don't think 365 00:19:26,960 --> 00:19:31,400 Speaker 6: people understand how much of an impact Vson made on 366 00:19:31,440 --> 00:19:34,560 Speaker 6: the market because you used to have to go to 367 00:19:34,640 --> 00:19:37,600 Speaker 6: the racetrack some guy is selling a tip on a 368 00:19:37,640 --> 00:19:40,760 Speaker 6: piece of eight and a half by eleven paper that's 369 00:19:40,800 --> 00:19:44,120 Speaker 6: all typed in. Now you can listen to Vson and 370 00:19:44,680 --> 00:19:46,879 Speaker 6: if you want to do your homework on a bet, 371 00:19:47,200 --> 00:19:50,760 Speaker 6: you can talk to us about that about the impact 372 00:19:50,840 --> 00:19:52,040 Speaker 6: of Vison Well. 373 00:19:52,119 --> 00:19:56,440 Speaker 5: Vson was an unbelievable investment for us. I mean getting 374 00:19:56,440 --> 00:20:00,360 Speaker 5: the opportunity to work with the legendary Brent Musburger, his nephew. 375 00:20:00,119 --> 00:20:01,560 Speaker 6: Brian bill Ady. 376 00:20:02,440 --> 00:20:06,040 Speaker 5: These guys were just incredible and they were always thinking 377 00:20:06,080 --> 00:20:09,199 Speaker 5: about everything, you know, ten steps forward. So it was 378 00:20:09,200 --> 00:20:13,520 Speaker 5: the idea of why shouldn't there be a network that 379 00:20:13,680 --> 00:20:17,000 Speaker 5: lets you hear everything that's happening across the bet sports 380 00:20:17,040 --> 00:20:20,480 Speaker 5: betting markets, just like here at Bloomberg, where you get 381 00:20:20,520 --> 00:20:22,960 Speaker 5: to learn everything that's happening on the financial markets, and 382 00:20:23,000 --> 00:20:25,720 Speaker 5: then not only have it be able to listen to it, 383 00:20:25,800 --> 00:20:28,840 Speaker 5: but also broadcast it like you guys do right from 384 00:20:28,880 --> 00:20:32,479 Speaker 5: the floor of the Exchange, which at the time our 385 00:20:32,520 --> 00:20:34,879 Speaker 5: first studio was in the South Point in Las Vegas, 386 00:20:34,960 --> 00:20:38,439 Speaker 5: the only twenty four hour sports betting book that was 387 00:20:38,480 --> 00:20:40,720 Speaker 5: open at the time. It was amazing to be there 388 00:20:40,800 --> 00:20:42,520 Speaker 5: and be in the middle of all that and had 389 00:20:42,560 --> 00:20:45,520 Speaker 5: the glass studio in there and really built that out. 390 00:20:46,119 --> 00:20:48,440 Speaker 5: But now they're at Circa and Just and in many 391 00:20:48,440 --> 00:20:50,399 Speaker 5: other places. I mean, they're continuing to really build that. 392 00:20:50,440 --> 00:20:54,240 Speaker 5: We sold that company to DraftKings. Now it's private again, 393 00:20:54,480 --> 00:20:57,120 Speaker 5: they have it back, but it's it's one of those 394 00:20:57,160 --> 00:21:00,600 Speaker 5: things where you know, it was all about those entrepreneurs, 395 00:21:00,880 --> 00:21:04,399 Speaker 5: their ideas, going out and getting really great hosts. The 396 00:21:04,800 --> 00:21:09,000 Speaker 5: to really make sure you have you know, authentic voices. 397 00:21:09,400 --> 00:21:11,479 Speaker 5: That was one of the most important things, right. You 398 00:21:11,520 --> 00:21:19,240 Speaker 5: had to really know what minus one ten means, not negative, that. 399 00:21:19,320 --> 00:21:21,960 Speaker 9: Is, it's it's a it's a learning curve for sure. 400 00:21:22,040 --> 00:21:24,120 Speaker 9: And I just hit my first big bet actually this week. 401 00:21:24,160 --> 00:21:26,320 Speaker 9: Really pumped about it in a four hundred dollars Beth. 402 00:21:26,400 --> 00:21:30,800 Speaker 9: It was awesome. Yeah, I had a dollar bed this 403 00:21:30,800 --> 00:21:34,480 Speaker 9: week and my goal be jealous. It was amazing. So 404 00:21:34,720 --> 00:21:38,320 Speaker 9: my nails for my batchelor party gonna be fraid. So 405 00:21:38,400 --> 00:21:39,639 Speaker 9: one of the things you were talking about there, and 406 00:21:39,640 --> 00:21:41,679 Speaker 9: you're talking about Vson and you're talking about like the 407 00:21:41,720 --> 00:21:45,320 Speaker 9: pylon cam and things like that, those are more forward facing, 408 00:21:45,400 --> 00:21:48,120 Speaker 9: like for consumer businesses, right, and then you have other 409 00:21:48,160 --> 00:21:50,960 Speaker 9: things that you invested on the analytics side. The baseball 410 00:21:51,000 --> 00:21:53,600 Speaker 9: and basketball shot track are those things that really help 411 00:21:53,680 --> 00:21:55,879 Speaker 9: the sport in itself When you're looking at what to 412 00:21:55,960 --> 00:21:58,760 Speaker 9: invest in in the space, which are you really looking 413 00:21:58,800 --> 00:22:01,199 Speaker 9: at more what is well, what would you say is 414 00:22:01,280 --> 00:22:05,080 Speaker 9: more for your interest or has a bigger impact on 415 00:22:05,080 --> 00:22:05,560 Speaker 9: the sport. 416 00:22:05,640 --> 00:22:07,560 Speaker 5: Yeah, the big thing for us is really you know, 417 00:22:07,600 --> 00:22:11,600 Speaker 5: whether it's on the field, off the field, for the consumer, 418 00:22:11,880 --> 00:22:14,280 Speaker 5: you know, for the business, it's really just making sure 419 00:22:14,440 --> 00:22:18,480 Speaker 5: that that there's the core of everything is all around tech, 420 00:22:18,600 --> 00:22:22,000 Speaker 5: data and analytics. So you know, you mentioned shot Tracker 421 00:22:22,080 --> 00:22:24,439 Speaker 5: and diamond Kinetics on the baseball side. I mean, like 422 00:22:24,800 --> 00:22:27,320 Speaker 5: shot Tracker on the basketball side of things, really being 423 00:22:27,320 --> 00:22:30,200 Speaker 5: able to use that information, use that data to enable 424 00:22:30,280 --> 00:22:32,399 Speaker 5: you to be a better player, and that could be 425 00:22:32,520 --> 00:22:34,679 Speaker 5: at the youth level, that could be at the college level, 426 00:22:34,960 --> 00:22:37,480 Speaker 5: all the way up to the pro side of things. 427 00:22:37,480 --> 00:22:39,840 Speaker 5: So I think like the whole thing for us is 428 00:22:40,359 --> 00:22:44,320 Speaker 5: just making sure that you have really the best of 429 00:22:44,359 --> 00:22:48,000 Speaker 5: the best tech and that's and that's what that's that's 430 00:22:48,000 --> 00:22:49,280 Speaker 5: a big part of what we look for. 431 00:22:49,600 --> 00:22:49,879 Speaker 2: Wayne. 432 00:22:49,920 --> 00:22:53,360 Speaker 1: We were kidding offline here about the phenomenal valuations that 433 00:22:53,560 --> 00:22:56,280 Speaker 1: specifically in the NFL, but all professional sports teams are 434 00:22:56,320 --> 00:22:58,000 Speaker 1: now fetching in the open market. You know, some of 435 00:22:58,000 --> 00:22:59,960 Speaker 1: these transactions, I mean, I'll just give our audience, you know, 436 00:23:00,000 --> 00:23:02,359 Speaker 1: so I think the Dallas Cowboys, which were the most 437 00:23:02,520 --> 00:23:05,040 Speaker 1: valuable franchise heading into this year per Sportico at ten 438 00:23:05,080 --> 00:23:08,200 Speaker 1: point three billion, it's now estimated to be fourteen point 439 00:23:08,240 --> 00:23:11,520 Speaker 1: five billion, right, seem one point two you know billion 440 00:23:11,560 --> 00:23:12,359 Speaker 1: in revenue per year. 441 00:23:12,560 --> 00:23:12,760 Speaker 2: You know. 442 00:23:12,840 --> 00:23:15,240 Speaker 1: But my question for you, as we're talking about it 443 00:23:15,240 --> 00:23:18,760 Speaker 1: offline is what do these team owners need to do 444 00:23:19,119 --> 00:23:22,560 Speaker 1: to justify those valuations? I mean, as at IP is 445 00:23:22,600 --> 00:23:25,119 Speaker 1: it a technology, I mean, what can they do to 446 00:23:25,280 --> 00:23:30,040 Speaker 1: realize anywhere near what the market values are going for now? 447 00:23:30,080 --> 00:23:32,160 Speaker 5: I think one of the big things for us, certainly, 448 00:23:32,200 --> 00:23:34,399 Speaker 5: and it's certainly the theme of everything that we do 449 00:23:34,440 --> 00:23:36,800 Speaker 5: at seventy six Capital is the idea you look at 450 00:23:36,840 --> 00:23:41,560 Speaker 5: every other industry and every other company that has gone 451 00:23:41,640 --> 00:23:43,840 Speaker 5: from where they are today or where they were in 452 00:23:43,880 --> 00:23:46,200 Speaker 5: the past, and how they've continued to grow, that's what 453 00:23:46,560 --> 00:23:48,719 Speaker 5: needs to happen here in sports and what and what 454 00:23:48,760 --> 00:23:51,199 Speaker 5: they use and what they do is many cases is 455 00:23:51,200 --> 00:23:53,840 Speaker 5: that's where they use the tech side of things. And 456 00:23:53,920 --> 00:23:56,280 Speaker 5: so for us to be able to bring in ways 457 00:23:56,320 --> 00:23:59,639 Speaker 5: for you to now monetize your fan base even more, 458 00:24:00,119 --> 00:24:01,920 Speaker 5: you know, through the use of technology, so that could 459 00:24:01,960 --> 00:24:04,119 Speaker 5: even be you know, one of our companies. An example 460 00:24:04,160 --> 00:24:07,680 Speaker 5: is Boomerang is actually and Boomerang is a lost technology 461 00:24:07,720 --> 00:24:11,280 Speaker 5: company that enables lost and found, you know, easily to 462 00:24:11,280 --> 00:24:13,359 Speaker 5: find something. So if you lose something at Madison Square 463 00:24:13,400 --> 00:24:16,040 Speaker 5: Garden at a Knicks game this year, you can easily 464 00:24:16,080 --> 00:24:21,720 Speaker 5: get it back through using Boomerang. Same thing Fenway Park, 465 00:24:21,840 --> 00:24:25,840 Speaker 5: same thing at many NFL stadiums, many other NFL arenas 466 00:24:25,880 --> 00:24:28,280 Speaker 5: around around the country. But those are the types of 467 00:24:28,320 --> 00:24:31,400 Speaker 5: things too. If you use technology to enable your team 468 00:24:31,400 --> 00:24:33,000 Speaker 5: to get better on the field, for you to be 469 00:24:33,040 --> 00:24:39,520 Speaker 5: able to monetize your fans. And that's where we believe 470 00:24:39,840 --> 00:24:44,800 Speaker 5: the values of these enterprises, which today are some people 471 00:24:44,840 --> 00:24:47,360 Speaker 5: say are high, but we believe they can go even 472 00:24:47,440 --> 00:24:50,919 Speaker 5: higher because we're just getting going with that. Because but 473 00:24:50,920 --> 00:24:52,560 Speaker 5: also the thing is that if you start to think 474 00:24:52,600 --> 00:24:55,760 Speaker 5: about the types of people also that are now owning 475 00:24:55,800 --> 00:24:59,199 Speaker 5: these teams, they have done this in other industries. This 476 00:24:59,320 --> 00:25:02,360 Speaker 5: isn't the first go around for some of these masters 477 00:25:02,359 --> 00:25:04,280 Speaker 5: of the universe we'll call them right, who are now 478 00:25:04,400 --> 00:25:07,040 Speaker 5: owning a lot of these teams, They've done this before. 479 00:25:07,080 --> 00:25:10,119 Speaker 5: They've actually gone in and bought companies and then taken 480 00:25:10,160 --> 00:25:12,960 Speaker 5: those companies to the next level and then sold them 481 00:25:13,000 --> 00:25:15,800 Speaker 5: and that's what's gonna happen. And we really believe that 482 00:25:15,920 --> 00:25:19,280 Speaker 5: the reason for these valuations that continue to rise is 483 00:25:19,280 --> 00:25:20,800 Speaker 5: because of the tech our. 484 00:25:20,840 --> 00:25:23,679 Speaker 6: Thanks to Wayne Kimmel for joining us. He's managing partner 485 00:25:23,720 --> 00:25:26,720 Speaker 6: at seventy six Capital, a firm that invests in the 486 00:25:26,880 --> 00:25:30,560 Speaker 6: sports tech space. Up next, we look ahead to the 487 00:25:30,600 --> 00:25:35,560 Speaker 6: new NHL season with NHL Commissioner Gary Bettman and Monumental 488 00:25:35,640 --> 00:25:40,359 Speaker 6: Sports and Entertainment founder Ted Leonsis bor Vanessa Vernomo, and 489 00:25:40,560 --> 00:25:44,720 Speaker 6: Amian Sasseller. I'm Michael Barr. Stick around. There's more straight 490 00:25:44,760 --> 00:25:48,520 Speaker 6: ahead on the Bloomberg Business of Sports from Bloomberger Radio 491 00:25:48,640 --> 00:25:49,640 Speaker 6: around the world. 492 00:25:54,720 --> 00:25:58,720 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 493 00:26:00,200 --> 00:26:02,719 Speaker 6: Thanks for joining us on the Bloomberg Business of Sports, 494 00:26:02,720 --> 00:26:05,040 Speaker 6: where we explore the big money issues in the world 495 00:26:05,080 --> 00:26:08,800 Speaker 6: of sports, Michael Barr. The NHL kicks off its regular 496 00:26:08,880 --> 00:26:13,440 Speaker 6: season this week. Recently, NHL Commissioner Gary Bettman was at 497 00:26:13,480 --> 00:26:17,040 Speaker 6: Bloomberg World headquarters in New York for our annual Power 498 00:26:17,080 --> 00:26:22,000 Speaker 6: Players event. He spoke on stage alongside Monumental Sports founder, chairman, 499 00:26:22,200 --> 00:26:27,040 Speaker 6: managing partner and CEO Ted Leones in a panel moderated 500 00:26:27,119 --> 00:26:29,919 Speaker 6: by our own Scarlett Foo. Let's take a listen to 501 00:26:29,960 --> 00:26:31,439 Speaker 6: a portion of their conversation. 502 00:26:32,600 --> 00:26:36,600 Speaker 7: Ted, You've built monumental sports, which includes the Caps NHL team, 503 00:26:36,720 --> 00:26:40,800 Speaker 7: the Washington Wizards NBA team, the Mystics WNBA team around 504 00:26:40,800 --> 00:26:44,280 Speaker 7: this idea of increasing fandom. So I'm curious, what does 505 00:26:44,280 --> 00:26:46,480 Speaker 7: that look like from the C suite where you sit, 506 00:26:46,560 --> 00:26:48,240 Speaker 7: and what does that look like to the average fan? 507 00:26:48,320 --> 00:26:50,320 Speaker 7: How does it end up looking like for them? 508 00:26:50,080 --> 00:26:53,800 Speaker 2: We're spending most of our time now trying to capitalize 509 00:26:53,800 --> 00:26:58,199 Speaker 2: on we captured a new generation of fan betch can 510 00:26:58,240 --> 00:27:02,000 Speaker 2: affect if you will years all these young kids. We 511 00:27:02,040 --> 00:27:04,040 Speaker 2: have the most active, one of the most active in 512 00:27:04,080 --> 00:27:08,960 Speaker 2: North America youth hockey. And you have to follow where 513 00:27:09,880 --> 00:27:13,200 Speaker 2: the young people are because that's who your fan base 514 00:27:13,280 --> 00:27:16,080 Speaker 2: is going to be. And we have to fully make 515 00:27:16,160 --> 00:27:20,960 Speaker 2: the pivot from linear analog to digital. We've been global 516 00:27:21,040 --> 00:27:24,680 Speaker 2: from day one, and you know we're in Washington, d C. 517 00:27:24,880 --> 00:27:27,639 Speaker 2: And the most popular athlete in the history of the 518 00:27:27,720 --> 00:27:32,840 Speaker 2: community is alex Obechkina, Russian. And so we spend all 519 00:27:32,880 --> 00:27:36,080 Speaker 2: of our time trying to figure out how can we 520 00:27:36,119 --> 00:27:42,200 Speaker 2: build a platform be a really really important business in 521 00:27:42,240 --> 00:27:47,760 Speaker 2: this ten million household community. Obviously the linear part of 522 00:27:47,840 --> 00:27:52,960 Speaker 2: that cable plant has shrunk. We bought our cable company, 523 00:27:53,240 --> 00:27:57,840 Speaker 2: our RSN, from Comcast in NBC, and now we're able 524 00:27:57,920 --> 00:28:01,919 Speaker 2: to make it a IP districtribution network for US and 525 00:28:02,000 --> 00:28:06,280 Speaker 2: across promotion arm and we put all of our games there. 526 00:28:06,440 --> 00:28:11,000 Speaker 2: We've gotten renewals, but not only from the cable side, 527 00:28:11,000 --> 00:28:15,920 Speaker 2: but now we can work with the youtubes and the Amazons, 528 00:28:16,359 --> 00:28:20,320 Speaker 2: and we think we have to become a just embedded 529 00:28:20,880 --> 00:28:25,840 Speaker 2: in the lives of ten million people from Richmond, Virginia, 530 00:28:25,960 --> 00:28:27,000 Speaker 2: all the way to Delaware. 531 00:28:27,440 --> 00:28:30,200 Speaker 7: So it looks very seamless from the fans perspective, because 532 00:28:30,200 --> 00:28:32,200 Speaker 7: it's where it should be, wherever they turn. 533 00:28:32,600 --> 00:28:32,840 Speaker 2: There. 534 00:28:32,880 --> 00:28:36,400 Speaker 7: You are Gary in keeping with this idea of Alexovechkin 535 00:28:36,560 --> 00:28:40,680 Speaker 7: his quest to surpass Wayn Gretzky as the all time score. 536 00:28:41,520 --> 00:28:43,480 Speaker 7: Obviously that was a big thing, but it's not a 537 00:28:43,480 --> 00:28:46,000 Speaker 7: regular thing. You can't count on something like that happening 538 00:28:46,200 --> 00:28:48,280 Speaker 7: every season. So how do you build on the momentum 539 00:28:48,320 --> 00:28:52,480 Speaker 7: that was generated and continue to activate fans. 540 00:28:52,520 --> 00:28:54,600 Speaker 8: That's a great question. But I want to add one thing, 541 00:28:55,480 --> 00:29:00,239 Speaker 8: which is the best indication of what a visionary Ted is. 542 00:29:01,160 --> 00:29:05,640 Speaker 8: He has created his own ecosystem and they have content 543 00:29:06,320 --> 00:29:09,560 Speaker 8: twenty four to seven, three hundred and sixty five days 544 00:29:09,600 --> 00:29:13,440 Speaker 8: a year that they create because he's aggregated all of 545 00:29:13,480 --> 00:29:16,760 Speaker 8: the assets, whether it's teams in a variety of sports, 546 00:29:17,120 --> 00:29:22,320 Speaker 8: the arena, or his own streaming platform. That's what makes 547 00:29:22,320 --> 00:29:26,240 Speaker 8: it all work. And he has always been fan facing, 548 00:29:26,560 --> 00:29:30,600 Speaker 8: consumer facing, from the day you fought first bought the franchise, 549 00:29:30,680 --> 00:29:33,320 Speaker 8: which was what twenty six twenty. 550 00:29:33,080 --> 00:29:36,440 Speaker 7: Seven, I bought the team, and he's a fan first. 551 00:29:36,560 --> 00:29:42,200 Speaker 8: So what what Ovenchkin did is really what is what 552 00:29:42,360 --> 00:29:47,840 Speaker 8: sports is about. It captures the imagination. It gives people 553 00:29:47,880 --> 00:29:52,719 Speaker 8: a chance to focus on things that are super human. 554 00:29:53,160 --> 00:29:56,560 Speaker 8: You know, Alex broke a record that nobody thought was 555 00:29:56,720 --> 00:30:00,680 Speaker 8: possible to break, and it's a testament to him his 556 00:30:01,520 --> 00:30:06,160 Speaker 8: physical prowess, his skill, his endurance, his ability to not 557 00:30:06,240 --> 00:30:09,440 Speaker 8: get injured, and the support that he got from his 558 00:30:09,600 --> 00:30:13,800 Speaker 8: organization in terms of the players they surrounded him with 559 00:30:14,160 --> 00:30:17,080 Speaker 8: and everything they've done off the ice. So what do 560 00:30:17,120 --> 00:30:21,200 Speaker 8: you do is you look for big events for big stories, 561 00:30:21,680 --> 00:30:26,960 Speaker 8: and you use every platform imaginable, whether it's linear streaming platform, 562 00:30:27,040 --> 00:30:30,400 Speaker 8: social media, and no different than what we did in 563 00:30:30,440 --> 00:30:32,800 Speaker 8: February with the Four Nations Tournament. 564 00:30:33,320 --> 00:30:34,200 Speaker 6: I mean we. 565 00:30:34,160 --> 00:30:38,400 Speaker 8: Created something that even if you weren't a hockey fan, 566 00:30:39,000 --> 00:30:42,880 Speaker 8: even if you weren't a sports fan, you felt compelled 567 00:30:42,920 --> 00:30:47,280 Speaker 8: to tune in because it was so topical and so intriguing. 568 00:30:47,480 --> 00:30:48,760 Speaker 8: People wanted to know more. 569 00:30:48,920 --> 00:30:52,000 Speaker 7: Your partnerships matter, as the Sea of a three hundred 570 00:30:52,040 --> 00:30:55,800 Speaker 7: billion dollar company has had put it partnerships like TikTok 571 00:30:56,040 --> 00:31:00,000 Speaker 7: on the capitalis Away Jerseys roadblocks to create a metaverse experience, 572 00:31:00,080 --> 00:31:02,120 Speaker 7: and so that idea of teaming up with brands that 573 00:31:02,280 --> 00:31:05,360 Speaker 7: matter to a younger audience that perhaps isn't trained to 574 00:31:05,400 --> 00:31:07,280 Speaker 7: watch TV the same way we are. 575 00:31:06,960 --> 00:31:10,640 Speaker 8: There are two parts to answering that question. One is 576 00:31:11,320 --> 00:31:15,560 Speaker 8: the authenticity and the game itself and the good news 577 00:31:15,600 --> 00:31:19,040 Speaker 8: for us and I never like to talk about other sports, 578 00:31:19,360 --> 00:31:22,680 Speaker 8: but when it comes to Pace to Play, there's more action. 579 00:31:22,880 --> 00:31:24,880 Speaker 8: You can't be on your phone if. 580 00:31:24,760 --> 00:31:26,200 Speaker 7: You're watching, you'll miss something. 581 00:31:26,600 --> 00:31:30,040 Speaker 8: You'll miss something because it happens fast and furious. So 582 00:31:30,080 --> 00:31:32,200 Speaker 8: the amount of action to the amount of length of 583 00:31:32,200 --> 00:31:35,720 Speaker 8: the game works very well for us, and it's compelling 584 00:31:35,800 --> 00:31:38,680 Speaker 8: for younger people. The second thing is you've got to 585 00:31:38,760 --> 00:31:43,760 Speaker 8: reach your fans, and you would be fans on their terms. Now, 586 00:31:43,840 --> 00:31:47,080 Speaker 8: particularly now, you got to give them, as everybody says, 587 00:31:47,080 --> 00:31:50,320 Speaker 8: is what they want, when they wanted how they want it. 588 00:31:50,320 --> 00:31:54,400 Speaker 8: It didn't get a lot of attention. But when the 589 00:31:54,640 --> 00:31:59,000 Speaker 8: old deal in Canada with Rogers twelve years ago included 590 00:31:59,080 --> 00:32:03,440 Speaker 8: a streaming come opponent, it was really the first national 591 00:32:03,560 --> 00:32:06,840 Speaker 8: sports league deal to do that. And our deal most 592 00:32:06,880 --> 00:32:12,040 Speaker 8: recent deal withes with ESPN and we have Amazon in Canada. 593 00:32:12,480 --> 00:32:16,680 Speaker 8: We've always looked to see how can we use technology 594 00:32:17,120 --> 00:32:20,560 Speaker 8: not to change the game, but to take essential elements 595 00:32:20,560 --> 00:32:24,120 Speaker 8: of the game and make them more fan or consumer 596 00:32:24,240 --> 00:32:26,960 Speaker 8: friendly so that we can bring people inside the game. 597 00:32:27,080 --> 00:32:30,480 Speaker 8: And that's where because the game is so fast, using 598 00:32:30,520 --> 00:32:34,000 Speaker 8: technology puck and player tracking does a couple of things 599 00:32:34,000 --> 00:32:37,200 Speaker 8: for us. One, we're creating millions of data points a 600 00:32:37,320 --> 00:32:41,280 Speaker 8: minute and that's enabled fans to get inside the game 601 00:32:41,320 --> 00:32:43,520 Speaker 8: and understand the better if they didn't grow up at 602 00:32:43,560 --> 00:32:47,840 Speaker 8: hockey fans. And using the metaverse, we actually use the 603 00:32:47,880 --> 00:32:52,640 Speaker 8: pucking player tracking to use animated versions of our game 604 00:32:53,040 --> 00:32:56,200 Speaker 8: so that young people can get attracted to watching it 605 00:32:56,480 --> 00:32:58,960 Speaker 8: using their favorite cartoon characters. 606 00:32:58,920 --> 00:33:04,240 Speaker 2: And reimagine the game. Especially in a global basis, we're 607 00:33:04,320 --> 00:33:11,239 Speaker 2: the largest investor, chairman of Team Liquid. Team Liquid is 608 00:33:11,520 --> 00:33:15,480 Speaker 2: the number one esports in North America. We just came 609 00:33:15,520 --> 00:33:19,400 Speaker 2: in second place in Saudi Arabia's thirty million dollars in 610 00:33:20,600 --> 00:33:23,880 Speaker 2: prize money that was awarded there. And we play on 611 00:33:23,920 --> 00:33:29,360 Speaker 2: eleven different platforms. And you know, you'll read it's a winter, 612 00:33:29,560 --> 00:33:36,400 Speaker 2: nuclear winter for esports. That's like saying the web this 613 00:33:36,600 --> 00:33:42,000 Speaker 2: was bad the in the mid nineties, the web blew up. 614 00:33:42,520 --> 00:33:47,120 Speaker 2: Don't make any investments in web companies. I think twenty 615 00:33:47,160 --> 00:33:51,400 Speaker 2: five years ago the company I helped to create AOL, 616 00:33:51,440 --> 00:33:54,840 Speaker 2: we had a two hundred billion dollar market cap. Microsoft 617 00:33:54,880 --> 00:33:59,280 Speaker 2: had a four hundred billion dollar market cap. It's twenty 618 00:33:59,320 --> 00:34:03,160 Speaker 2: five years later, AOL doesn't exist. Microsoft has a four 619 00:34:03,360 --> 00:34:08,600 Speaker 2: trillion dollar market cap and they've had to reinvent themselves. 620 00:34:08,640 --> 00:34:13,359 Speaker 2: They're now an AI and cloud computing company. So Team 621 00:34:13,440 --> 00:34:20,040 Speaker 2: Liquid we play on eleven different platforms. And the people 622 00:34:20,040 --> 00:34:23,719 Speaker 2: in Saudi Arabia, which are building a whole city and 623 00:34:23,920 --> 00:34:30,719 Speaker 2: infrastructure for tourism for their young people around esports, they said, 624 00:34:30,760 --> 00:34:35,840 Speaker 2: what other sport can we reinvent and make competitive? And 625 00:34:35,920 --> 00:34:41,160 Speaker 2: we said chess. Chess Chess okay now as an esport. 626 00:34:42,520 --> 00:34:48,640 Speaker 2: So we launch and we sign Magnus Carlson, the world's 627 00:34:49,120 --> 00:34:52,560 Speaker 2: most famous number one chess player, and he won the 628 00:34:52,640 --> 00:34:56,800 Speaker 2: national he won the World championship a couple of weeks ago, 629 00:34:57,360 --> 00:35:01,440 Speaker 2: and it's boomed out with the young kids. Young kids 630 00:35:01,480 --> 00:35:06,520 Speaker 2: go Chess is cool, it's analytic, it's algorithmically oriented. You 631 00:35:06,600 --> 00:35:10,920 Speaker 2: can train online, you can do multi user games. So 632 00:35:11,000 --> 00:35:17,040 Speaker 2: it's a really interesting loop. If you will, you can 633 00:35:17,440 --> 00:35:21,839 Speaker 2: use technology to reinvigorate you know, what looked like an 634 00:35:21,920 --> 00:35:25,520 Speaker 2: older sport. That's what I think we've done in the NHL. 635 00:35:25,640 --> 00:35:29,399 Speaker 2: When I first came in twenty six years ago, I said, 636 00:35:29,640 --> 00:35:31,719 Speaker 2: this looks like a video game to me. I mean, 637 00:35:31,719 --> 00:35:35,760 Speaker 2: you've got the glass. The players are out there, they're 638 00:35:36,239 --> 00:35:39,880 Speaker 2: working as hard as they can, but for thirty second shifts. 639 00:35:40,360 --> 00:35:43,200 Speaker 2: Alex probably stays out a little longer than he should. 640 00:35:43,640 --> 00:35:49,520 Speaker 2: But the speed, the music, it was a video game 641 00:35:49,560 --> 00:35:53,440 Speaker 2: come to life. They said, we have to connect that, 642 00:35:53,440 --> 00:35:59,440 Speaker 2: that speed, the sounds, and you know, like I got 643 00:35:59,560 --> 00:36:02,840 Speaker 2: rid of the I can't tell you how many older 644 00:36:02,920 --> 00:36:07,879 Speaker 2: fans hated me, he said, but move with the times. Yeah, 645 00:36:07,920 --> 00:36:11,000 Speaker 2: we kids want to, don't. They want different music, they 646 00:36:11,040 --> 00:36:15,200 Speaker 2: don't want organ music. So just paying attention to the 647 00:36:15,280 --> 00:36:19,520 Speaker 2: younger audience, and it's amazing how fast time goes. Gary, 648 00:36:19,520 --> 00:36:21,000 Speaker 2: How long have you been commissioner? 649 00:36:21,280 --> 00:36:22,240 Speaker 8: Thirty two years? 650 00:36:22,280 --> 00:36:26,760 Speaker 2: Thirty two years. He's the most tenured commissioner, not ten years, 651 00:36:26,800 --> 00:36:28,240 Speaker 2: he's got thirty two years. 652 00:36:28,560 --> 00:36:31,360 Speaker 7: You're the longest serving commissioner in North American sports. 653 00:36:32,480 --> 00:36:34,040 Speaker 4: As we talked about thirty two years. 654 00:36:34,600 --> 00:36:36,799 Speaker 7: What kind of succession planning is taking place once you 655 00:36:36,920 --> 00:36:38,960 Speaker 7: decide to. 656 00:36:38,200 --> 00:36:43,400 Speaker 8: Move on the answer is, I have a very strong bench. 657 00:36:44,120 --> 00:36:48,399 Speaker 8: I have great executives who work with me, particularly at 658 00:36:48,400 --> 00:36:51,560 Speaker 8: the c suite level I've had. I have a deputy 659 00:36:51,600 --> 00:36:55,360 Speaker 8: commissioner who's been with me for twenty six years, Bill Daly, 660 00:36:55,440 --> 00:36:58,279 Speaker 8: who is terrific, and if I got hit by a 661 00:36:58,320 --> 00:37:00,680 Speaker 8: bus walking out of here today, he could step in. 662 00:37:01,320 --> 00:37:07,520 Speaker 8: But it was funny. I've said to my executive committee, 663 00:37:07,760 --> 00:37:10,640 Speaker 8: not that I'm getting ready to retire, but I said, 664 00:37:10,640 --> 00:37:13,560 Speaker 8: at some point we need to focus on this because 665 00:37:14,480 --> 00:37:17,040 Speaker 8: I'm all they've ever most of them have ever known. 666 00:37:17,200 --> 00:37:23,080 Speaker 8: I mean, there are three legacy families in Boston, Detroit 667 00:37:23,120 --> 00:37:26,279 Speaker 8: and Chicago original six clubs, and then there's Ted and 668 00:37:26,280 --> 00:37:29,520 Speaker 8: everybody new who's come in since I've been commissioner. And 669 00:37:30,040 --> 00:37:34,799 Speaker 8: when you get identified with something as much as I 670 00:37:34,960 --> 00:37:39,480 Speaker 8: have been, succession becomes an issue due because question of 671 00:37:39,560 --> 00:37:41,680 Speaker 8: style and presence and branding. 672 00:37:41,719 --> 00:37:42,520 Speaker 2: But I'm also. 673 00:37:42,400 --> 00:37:46,480 Speaker 8: Cognitant of the fact that at some point there needs 674 00:37:46,520 --> 00:37:51,840 Speaker 8: to be a more youthful person pitching the brand. 675 00:37:52,360 --> 00:37:55,719 Speaker 6: That's a portion of a conversation with NHL Commissioner Gary 676 00:37:55,760 --> 00:38:00,440 Speaker 6: Bettman and Ted Leones's founder and CEO of Monumental Sports 677 00:38:00,480 --> 00:38:05,040 Speaker 6: and Entertainment, live from Bloomberg Power Players, New York. Recently, 678 00:38:05,400 --> 00:38:08,840 Speaker 6: our very own Scarlet Food moderated that panel. And that 679 00:38:08,960 --> 00:38:11,920 Speaker 6: does it for this edition of The Bloomberg Business of Sports. 680 00:38:12,080 --> 00:38:16,200 Speaker 6: For my colleagues Damian Sasauur and Vanessa Perdomo, I'm Michael Barr. 681 00:38:16,320 --> 00:38:18,799 Speaker 6: Thank you for joining us. Tune in again next week 682 00:38:18,840 --> 00:38:21,400 Speaker 6: for the latest on the stories moving big old money 683 00:38:21,400 --> 00:38:24,120 Speaker 6: in the world of sports. You're listening to The Bloomberg 684 00:38:24,160 --> 00:38:27,480 Speaker 6: Business of Sports from Bloomberg Radio around the world.