1 00:00:00,440 --> 00:00:03,880 Speaker 1: This is the business of sports. The International Olympic Committee 2 00:00:04,000 --> 00:00:07,360 Speaker 1: is facing a crisis. Which sport would you point to 3 00:00:07,520 --> 00:00:10,320 Speaker 1: and say, put your money here? Where the money is 4 00:00:10,320 --> 00:00:15,200 Speaker 1: flowing inside sports around the globe as NASCAR's business engine 5 00:00:15,240 --> 00:00:17,880 Speaker 1: lost some horse problem. Now I'm paying five or ten 6 00:00:17,920 --> 00:00:19,520 Speaker 1: percent what I used to pay to buy the whole team. 7 00:00:19,640 --> 00:00:22,799 Speaker 1: Michael Barr. Nothing like a cheap hot dog, which is 8 00:00:22,800 --> 00:00:25,640 Speaker 1: what you should get. Scott, how do you put your 9 00:00:25,680 --> 00:00:28,080 Speaker 1: brand outside of the United States? How do you capture 10 00:00:28,120 --> 00:00:33,040 Speaker 1: fans around the world? Bloomberg Business of Sports on Bloomberg Radio. Hello, 11 00:00:33,080 --> 00:00:35,559 Speaker 1: I'm Michael Barr, along with my partner at Scott Sashnick 12 00:00:35,640 --> 00:00:38,560 Speaker 1: and our special guest house this week, Evan Nobi Williams. 13 00:00:38,560 --> 00:00:40,720 Speaker 1: Over the next hour, we will explore the big money 14 00:00:40,760 --> 00:00:42,879 Speaker 1: issues in the world of sports and talk with some 15 00:00:42,920 --> 00:00:45,360 Speaker 1: of the most powerful people in the industry. Today we 16 00:00:45,400 --> 00:00:48,159 Speaker 1: talked with Bob Bowman, president of Business and Media from 17 00:00:48,159 --> 00:00:50,280 Speaker 1: Major League Baseball. Our job is to make sure the 18 00:00:50,320 --> 00:00:53,000 Speaker 1: technology and the parks is keeps up or is accelerates 19 00:00:53,000 --> 00:00:54,360 Speaker 1: in front of what you can do in your couch. 20 00:00:54,680 --> 00:00:56,320 Speaker 1: One of the reasons why four or five years ago 21 00:00:56,360 --> 00:00:59,640 Speaker 1: we started quote wiring our stadiums, for WiFi and for 22 00:00:59,760 --> 00:01:02,240 Speaker 1: a ass. We'll bring you more of our interview with 23 00:01:02,280 --> 00:01:05,199 Speaker 1: Major League Baseball's Bob Bowman in a few minutes, but first, 24 00:01:05,280 --> 00:01:08,000 Speaker 1: let's look at some of the top business stories in 25 00:01:08,120 --> 00:01:13,480 Speaker 1: sports in the week. Sticking with baseball, No Dodgers starting 26 00:01:13,520 --> 00:01:16,520 Speaker 1: in the All Star Game, though, why this is very important, 27 00:01:16,640 --> 00:01:20,399 Speaker 1: especially for the business of sports. A lot of people 28 00:01:20,440 --> 00:01:23,720 Speaker 1: in Los Angeles may tune out of the All Star 29 00:01:23,800 --> 00:01:27,480 Speaker 1: Game and that could mean down ratings in l A. Well, 30 00:01:27,600 --> 00:01:29,800 Speaker 1: greetings from l A, Mr bar I'm looking at the 31 00:01:29,840 --> 00:01:32,680 Speaker 1: Santa Monica Mountains right now, and yeah, the team has 32 00:01:32,760 --> 00:01:34,360 Speaker 1: made this an issue. They have the best team in 33 00:01:34,400 --> 00:01:37,679 Speaker 1: baseball and Kenley Jansen, the team's closer. He came out 34 00:01:37,720 --> 00:01:40,200 Speaker 1: and said this the other day quote. I'll say it 35 00:01:40,240 --> 00:01:45,240 Speaker 1: loud and clear again. It's the Dodgers fans fault, pointing 36 00:01:45,280 --> 00:01:48,760 Speaker 1: the finger of blame right at the fans of l A, 37 00:01:49,240 --> 00:01:51,880 Speaker 1: saying you don't support us enough. We have some great players. 38 00:01:51,920 --> 00:01:54,400 Speaker 1: They do have four All Stars, but no starters, which 39 00:01:54,440 --> 00:01:56,920 Speaker 1: means the fans didn't stuff the ballot box. They're not 40 00:01:56,960 --> 00:01:58,800 Speaker 1: too happy about it. But how big a deal is 41 00:01:58,800 --> 00:02:01,320 Speaker 1: this really? I mean, I assume is one metric that 42 00:02:01,520 --> 00:02:04,560 Speaker 1: the Goggenheim folks stand casting Peter Goober, Mark Walter, that 43 00:02:04,600 --> 00:02:07,000 Speaker 1: they care about, and that's the number in the wins column. 44 00:02:07,120 --> 00:02:08,680 Speaker 1: And right now this is the first place team and 45 00:02:08,680 --> 00:02:11,240 Speaker 1: the hardest division in baseball. Not having an All Star 46 00:02:11,280 --> 00:02:14,079 Speaker 1: starter obviously is kind of a big deal. But does 47 00:02:14,120 --> 00:02:16,480 Speaker 1: it really matter in the long term, especially from a 48 00:02:16,480 --> 00:02:19,399 Speaker 1: business standpoint for the Dodgers. Well, another problem with that 49 00:02:19,639 --> 00:02:23,160 Speaker 1: is that you have Clayton Kershaw probably arguably the most 50 00:02:23,320 --> 00:02:27,480 Speaker 1: important picture in Major League Baseball today, but he's starting Sunday, 51 00:02:27,560 --> 00:02:30,680 Speaker 1: so that means he won't even have a pitch thrown 52 00:02:30,919 --> 00:02:32,839 Speaker 1: in the All Star Game. But the All Star Game 53 00:02:32,919 --> 00:02:35,400 Speaker 1: is never really about the best players in baseball. It's 54 00:02:35,480 --> 00:02:38,720 Speaker 1: kind of a popularity contest, and obviously the voting kind 55 00:02:38,720 --> 00:02:41,400 Speaker 1: of plays into that. The Dodgers are They have possibly 56 00:02:41,440 --> 00:02:43,680 Speaker 1: the NL Rookie of the Year, certainly the front runner 57 00:02:43,720 --> 00:02:46,120 Speaker 1: for it, one of the best pitchers in baseball, another 58 00:02:46,160 --> 00:02:48,440 Speaker 1: one of the best young stars in Corey Seeger. The 59 00:02:48,480 --> 00:02:51,600 Speaker 1: team is just fine. I wonder big picture, Edvan and Michael, 60 00:02:51,760 --> 00:02:54,639 Speaker 1: is that TV deal again? They're blacked out in much 61 00:02:54,680 --> 00:02:56,880 Speaker 1: of l A because of the TV deal. Is This 62 00:02:57,040 --> 00:03:00,960 Speaker 1: a sign that perhaps not seeing the team on TV 63 00:03:01,240 --> 00:03:04,240 Speaker 1: night in and night out is having an effect on 64 00:03:04,280 --> 00:03:07,720 Speaker 1: the fan base. Are they tuning out the Dodgers? That's 65 00:03:07,760 --> 00:03:11,280 Speaker 1: what I would worry about if I was a team executive. 66 00:03:11,760 --> 00:03:16,079 Speaker 1: Let's talk about soccer great Lionel Messi and his super 67 00:03:16,160 --> 00:03:18,400 Speaker 1: duper contract that he got. He's going to play out 68 00:03:18,440 --> 00:03:22,399 Speaker 1: the remaining years of his trophy rich career at Barcelona. 69 00:03:23,280 --> 00:03:25,679 Speaker 1: Fifty thousand dollars a week is not not a bad 70 00:03:25,720 --> 00:03:27,920 Speaker 1: price to pay. How many times have we heard it, 71 00:03:28,040 --> 00:03:31,480 Speaker 1: usually from coaches and managers who wanted They never want 72 00:03:31,520 --> 00:03:33,720 Speaker 1: to go into that last year of the deal, because 73 00:03:33,720 --> 00:03:37,280 Speaker 1: then you spend an entire season answering questions, are you 74 00:03:37,360 --> 00:03:40,160 Speaker 1: coming back? Why haven't you agreed to a deal? What's 75 00:03:40,200 --> 00:03:42,640 Speaker 1: the problem? Is there a chance you'll leave? That's what 76 00:03:42,680 --> 00:03:45,520 Speaker 1: they avoid. There's no distractions, no more questions. Leon No, 77 00:03:45,640 --> 00:03:49,200 Speaker 1: Messi will be playing for Barcelona for his entire career. 78 00:03:49,440 --> 00:03:51,280 Speaker 1: That's what they wanted to cement right here. And from 79 00:03:51,280 --> 00:03:55,440 Speaker 1: a fan perspective, this keeps that that Ronaldo Messi rivalry going. 80 00:03:55,480 --> 00:03:59,360 Speaker 1: We saw Christiano Ronaldo extend with Real Madrid earlier this year. 81 00:04:00,200 --> 00:04:01,880 Speaker 1: They're two of the best players, if not the two 82 00:04:01,880 --> 00:04:04,240 Speaker 1: best players in soccer. They have been for a while now, 83 00:04:04,440 --> 00:04:06,200 Speaker 1: and this ensures that we'll see them head to head 84 00:04:06,360 --> 00:04:08,240 Speaker 1: not only in the Champions League but in La Liga 85 00:04:08,240 --> 00:04:12,200 Speaker 1: games for the next couple of years. Let's talk about Facebook, Facebook, Twitter, 86 00:04:12,360 --> 00:04:16,240 Speaker 1: and Snap. They are seeking online rights to video highlights 87 00:04:16,800 --> 00:04:21,400 Speaker 1: from next year's World Cup, soccer's most popular tournament, according 88 00:04:21,440 --> 00:04:24,880 Speaker 1: to two people familiar with the matter telling Bloomberg. Yeah, 89 00:04:24,960 --> 00:04:27,520 Speaker 1: let's talk about Facebook and soccer. They are all in 90 00:04:27,600 --> 00:04:30,320 Speaker 1: on soccer. This comes right off a deal they cut 91 00:04:30,360 --> 00:04:33,320 Speaker 1: with Fox and Facebook for the Champions League, so Facebook 92 00:04:33,320 --> 00:04:37,240 Speaker 1: will be showing actual games in the knockout stage, in 93 00:04:37,279 --> 00:04:40,240 Speaker 1: the quarterfinals as well. This is big because it's the 94 00:04:40,279 --> 00:04:43,400 Speaker 1: world's most popular sport. What Facebook is trying to do, guys, 95 00:04:43,839 --> 00:04:48,560 Speaker 1: is get people comfortable watching video on their platform, particularly 96 00:04:48,560 --> 00:04:51,920 Speaker 1: live games. I would not be surprised if this becomes bigger. 97 00:04:52,240 --> 00:04:55,839 Speaker 1: Not just highlights, which is important because the World Cup 98 00:04:55,880 --> 00:04:58,200 Speaker 1: is in Russia, so maybe the highlights are have added 99 00:04:58,200 --> 00:05:02,200 Speaker 1: significance this time around, but they want live games on 100 00:05:02,240 --> 00:05:04,680 Speaker 1: their platform. This is all part of the process and 101 00:05:04,800 --> 00:05:09,080 Speaker 1: getting you, me and kids comfortable watching on their platform. 102 00:05:09,120 --> 00:05:12,320 Speaker 1: Great news for Fox too. They paid four million dollars 103 00:05:12,400 --> 00:05:14,240 Speaker 1: for these rights, and and being able to make some 104 00:05:14,279 --> 00:05:16,560 Speaker 1: seven figure deals with some of the uh the main 105 00:05:16,720 --> 00:05:19,040 Speaker 1: social media networks, is just another way to monetize the 106 00:05:19,120 --> 00:05:21,679 Speaker 1: rights they paid for. Okay, let's turn to this week's 107 00:05:21,680 --> 00:05:24,640 Speaker 1: interview now with Bob Bowman. He's been Baseball's President of 108 00:05:24,680 --> 00:05:29,560 Speaker 1: Business and Media since He's charged with overseeing making money 109 00:05:29,600 --> 00:05:32,680 Speaker 1: and media rights across Baseball's array of assets that includes 110 00:05:32,800 --> 00:05:36,120 Speaker 1: MLB Advanced Media and of course MLB Network. Bowman also 111 00:05:36,160 --> 00:05:38,119 Speaker 1: created bad Tech. That's the three and a half billion 112 00:05:38,160 --> 00:05:40,560 Speaker 1: dollars spinoff which is now one third owned by the 113 00:05:40,600 --> 00:05:44,440 Speaker 1: Disney Company. We visited his MLB Advanced Media offices right 114 00:05:44,440 --> 00:05:48,120 Speaker 1: above the Chelsea Market in Manhattan, and here's our conversation. Bob, 115 00:05:48,160 --> 00:05:49,760 Speaker 1: thank you for taking a few minutes to be with us. 116 00:05:49,839 --> 00:05:51,799 Speaker 1: Delited to be here today. How are you? Um? Great? 117 00:05:51,800 --> 00:05:54,120 Speaker 1: Thank you? Every time I come here, though, I feel 118 00:05:54,160 --> 00:05:56,600 Speaker 1: like I need to get a fat which brownie? I mean, 119 00:05:56,600 --> 00:05:58,800 Speaker 1: we're taping in Chelsea Market. How do you not go 120 00:05:58,920 --> 00:06:01,960 Speaker 1: downstairs and just gorge on everything? It's the old Joe. 121 00:06:02,120 --> 00:06:04,839 Speaker 1: Nobody goes anymore. It's too crowded. If you want lunch, 122 00:06:04,880 --> 00:06:07,039 Speaker 1: You can't get there until about three thirty or four 123 00:06:07,279 --> 00:06:09,320 Speaker 1: unless you're willing to stand in line for thirty minutes. 124 00:06:09,400 --> 00:06:13,080 Speaker 1: A major tenant, the president of Major League Baseball Business 125 00:06:13,080 --> 00:06:15,560 Speaker 1: and Media, and you wait in line. No, I don't 126 00:06:15,600 --> 00:06:18,960 Speaker 1: go down till four o'clock when they give away the freebees. Well, 127 00:06:18,960 --> 00:06:20,839 Speaker 1: they don't give away anything free, that's for sure. But 128 00:06:20,880 --> 00:06:23,719 Speaker 1: it's a it's a big tours, two tours a week 129 00:06:23,760 --> 00:06:25,360 Speaker 1: walk through here. So we have a lot of people, 130 00:06:25,360 --> 00:06:26,640 Speaker 1: which is why we put all the you know, put 131 00:06:26,680 --> 00:06:28,080 Speaker 1: the network in there, and we do all sorts of 132 00:06:28,080 --> 00:06:30,800 Speaker 1: branding down there to try and get people to download 133 00:06:30,800 --> 00:06:32,320 Speaker 1: the app and stuff like that. It should be some 134 00:06:32,320 --> 00:06:34,360 Speaker 1: turnstiles make it feel like hold, that would be a 135 00:06:34,400 --> 00:06:38,440 Speaker 1: good idea, so President of Business and Media, which I 136 00:06:38,480 --> 00:06:41,960 Speaker 1: don't understand because media is like the biggest business out 137 00:06:41,960 --> 00:06:44,240 Speaker 1: there in sports these days. Right. It's interesting, you know, 138 00:06:44,279 --> 00:06:46,320 Speaker 1: we're one of the few sports we're getting people inside 139 00:06:46,320 --> 00:06:48,800 Speaker 1: the stadium really matters. I mean that matters to every 140 00:06:48,800 --> 00:06:51,600 Speaker 1: sport in some level. But in terms of economics, we 141 00:06:51,600 --> 00:06:53,719 Speaker 1: we make is almost as much or if not just 142 00:06:53,800 --> 00:06:56,120 Speaker 1: about as much from fans entering the stadium as we 143 00:06:56,160 --> 00:06:58,680 Speaker 1: do from our media media partners. So as you talk 144 00:06:58,720 --> 00:07:01,440 Speaker 1: about the importance of of live attendance at games to 145 00:07:01,520 --> 00:07:04,600 Speaker 1: one extent, do you worry that making the viewing experience 146 00:07:04,640 --> 00:07:08,080 Speaker 1: better and better can cannibalize the calculus of going to 147 00:07:08,120 --> 00:07:10,000 Speaker 1: the game versus watching it from your couch. I think 148 00:07:10,000 --> 00:07:12,080 Speaker 1: everyone worries about it, but for us, we have a 149 00:07:12,080 --> 00:07:15,200 Speaker 1: really special product. It is a time to relax and 150 00:07:15,320 --> 00:07:17,880 Speaker 1: enjoy a great experience. You're usually outdoors, and we have 151 00:07:17,920 --> 00:07:20,880 Speaker 1: a few coverage stadiums, but you're usually outdoors, it's usually summer. 152 00:07:21,120 --> 00:07:22,800 Speaker 1: You have time to talk to your friends and your 153 00:07:22,800 --> 00:07:25,720 Speaker 1: relatives and your family. So we have a great family 154 00:07:25,760 --> 00:07:28,480 Speaker 1: experience at our ballparks, and it's it's price for families 155 00:07:28,480 --> 00:07:30,760 Speaker 1: to go, and it's a pretty special moment. So I 156 00:07:30,800 --> 00:07:32,760 Speaker 1: think that you know, our job is to make sure 157 00:07:32,800 --> 00:07:34,960 Speaker 1: the technology and the parks is keeps up or is 158 00:07:35,000 --> 00:07:36,960 Speaker 1: accelerates in front of what you can do in your couch. 159 00:07:37,240 --> 00:07:38,920 Speaker 1: One of the reasons why four or five years ago 160 00:07:38,920 --> 00:07:42,080 Speaker 1: we started quote wiring our stadiums for WiFi and uh 161 00:07:42,120 --> 00:07:44,560 Speaker 1: for a das. I've heard some team presidents tell me 162 00:07:44,640 --> 00:07:47,080 Speaker 1: they want to make the in arena or in stadium 163 00:07:47,080 --> 00:07:50,640 Speaker 1: experience so good that even though those offerings are there, 164 00:07:50,680 --> 00:07:52,120 Speaker 1: that folks don't want to use them. And what the 165 00:07:52,120 --> 00:07:55,120 Speaker 1: part they tell me is, think about Duke basketball section. 166 00:07:55,200 --> 00:07:58,160 Speaker 1: I mean, that's a tech wheelhouse, right, Duke University students. 167 00:07:58,320 --> 00:08:00,400 Speaker 1: And if you're watching a Duke game but he's on 168 00:08:00,440 --> 00:08:02,560 Speaker 1: their phone, they're jumping up and down rooting for their team. 169 00:08:02,600 --> 00:08:05,160 Speaker 1: They have. They have specific assignments to do, which is 170 00:08:05,200 --> 00:08:07,160 Speaker 1: to make as much noise as they can. But I 171 00:08:07,160 --> 00:08:09,240 Speaker 1: think you know, the president kidding aside the presidents who 172 00:08:09,320 --> 00:08:10,520 Speaker 1: say that and the people who are on the clubs 173 00:08:10,520 --> 00:08:12,880 Speaker 1: who say they're absolutely right and it's exciting to be 174 00:08:12,960 --> 00:08:14,920 Speaker 1: the ballpark. They really use the video board as well. 175 00:08:14,960 --> 00:08:17,400 Speaker 1: They tell you what's going on. Uh they obviously they 176 00:08:17,480 --> 00:08:20,120 Speaker 1: use music and these uh these the President's race in 177 00:08:20,200 --> 00:08:22,520 Speaker 1: Washington is something to behold. You don't see that every 178 00:08:22,600 --> 00:08:24,880 Speaker 1: day at another at another sporting event. So I think 179 00:08:24,880 --> 00:08:26,400 Speaker 1: they do a really good job making it fun. And 180 00:08:26,400 --> 00:08:30,840 Speaker 1: the freeze freeze guy, I mean, this really has become 181 00:08:30,920 --> 00:08:33,040 Speaker 1: something I watched to see how he did or didn't. 182 00:08:33,360 --> 00:08:35,080 Speaker 1: The freeze is pretty good. For those who don't know 183 00:08:35,120 --> 00:08:39,319 Speaker 1: it's in Atlanta. If they and they have a fan 184 00:08:40,120 --> 00:08:43,160 Speaker 1: running around the outfield track and you have to go 185 00:08:43,280 --> 00:08:44,599 Speaker 1: like three quarters of the way around the state and 186 00:08:45,000 --> 00:08:47,440 Speaker 1: a big head start, and then this guy dressed up 187 00:08:47,480 --> 00:08:49,960 Speaker 1: at in some costume but he's a former college sprinter, 188 00:08:50,040 --> 00:08:52,600 Speaker 1: I believe, has to go and catch him. And twice 189 00:08:52,640 --> 00:08:54,640 Speaker 1: I've seen the first guy fall flat on his face, 190 00:08:54,760 --> 00:08:56,920 Speaker 1: which everybody loves. But it's those types of things. I mean, 191 00:08:56,960 --> 00:08:59,720 Speaker 1: all kidding aside that they make these games fun and exciting, 192 00:09:00,040 --> 00:09:01,920 Speaker 1: and plus you know between the things that there is 193 00:09:01,920 --> 00:09:03,719 Speaker 1: a break, people want to go get us soda or 194 00:09:03,760 --> 00:09:05,520 Speaker 1: get a hot dog. They can do that too. Families 195 00:09:05,520 --> 00:09:08,320 Speaker 1: really enjoy our baseball games. So yeah, we we Obviously 196 00:09:08,320 --> 00:09:11,200 Speaker 1: our media is really important to us. Every every entertainment property, 197 00:09:11,240 --> 00:09:13,560 Speaker 1: media is important, uh, And so we worry about that 198 00:09:13,600 --> 00:09:15,440 Speaker 1: a lot. But we also worry about, and the clubs 199 00:09:15,440 --> 00:09:17,559 Speaker 1: worry about even more than we do. What goes on 200 00:09:17,640 --> 00:09:19,160 Speaker 1: getting in, getting out of the game, and what you 201 00:09:19,160 --> 00:09:21,600 Speaker 1: see when you're there. It's pretty special. Bob. We're hearing 202 00:09:21,640 --> 00:09:24,640 Speaker 1: a lot about rights fees. You talk about traditional media 203 00:09:24,679 --> 00:09:26,200 Speaker 1: now and I know we're gonna get too technology, but 204 00:09:26,679 --> 00:09:29,800 Speaker 1: we hear about rights fees, escalation, escalation. Is there a bubble? Well, 205 00:09:29,840 --> 00:09:33,280 Speaker 1: the new tech companies shadow that because it doesn't matter Amazon, 206 00:09:33,320 --> 00:09:36,280 Speaker 1: once in, Google, once in, You're part of the system 207 00:09:36,280 --> 00:09:38,840 Speaker 1: that has to make the money. Is their concern that 208 00:09:38,960 --> 00:09:41,199 Speaker 1: the ecosystem has changed to a point where these traditional 209 00:09:41,240 --> 00:09:42,920 Speaker 1: companies say, oh, we got to pull the brakes a 210 00:09:42,920 --> 00:09:45,120 Speaker 1: little bit. We can't continue to pay like this. I 211 00:09:45,200 --> 00:09:47,800 Speaker 1: think the most important thing that all of us focus 212 00:09:47,840 --> 00:09:51,160 Speaker 1: on is making sure your games are distributed, distributed so 213 00:09:51,240 --> 00:09:53,520 Speaker 1: your fans can enjoy the game they want on the 214 00:09:53,559 --> 00:09:55,760 Speaker 1: device they want and how they want to do it. 215 00:09:55,880 --> 00:09:57,560 Speaker 1: I mean, we still have a schedule game. It's a 216 00:09:57,559 --> 00:09:59,600 Speaker 1: live event, so if you're on these coasts or really 217 00:09:59,640 --> 00:10:02,120 Speaker 1: anywhere in local time, you're probably that game is probably 218 00:10:02,120 --> 00:10:04,600 Speaker 1: gonna be live around seven fifteen. So we do sort 219 00:10:04,600 --> 00:10:06,480 Speaker 1: of say that's the time you have to watch, but 220 00:10:06,520 --> 00:10:07,840 Speaker 1: we're trying to get to a spot that you can 221 00:10:07,880 --> 00:10:09,960 Speaker 1: watch the game and any device you want. And I 222 00:10:09,960 --> 00:10:13,240 Speaker 1: think the most important focus for us is really on 223 00:10:13,640 --> 00:10:17,199 Speaker 1: the distribution of games, and distributions changed just even ten 224 00:10:17,240 --> 00:10:20,040 Speaker 1: years ago, but certainly twenty years ago, everything sort of 225 00:10:20,040 --> 00:10:22,560 Speaker 1: looked the same. It's set on your wall, Uh, it 226 00:10:22,640 --> 00:10:24,960 Speaker 1: was color. HD hadn't gotten around to it yet, and 227 00:10:25,040 --> 00:10:26,600 Speaker 1: HD now has been a lot for We've done a 228 00:10:26,600 --> 00:10:28,959 Speaker 1: lot of good things for life sports. Uh, and today 229 00:10:29,000 --> 00:10:31,920 Speaker 1: that's completely different distributions, completely different. You you mentioned some 230 00:10:31,960 --> 00:10:35,280 Speaker 1: of the more notable digital players that are involved now, 231 00:10:35,320 --> 00:10:37,679 Speaker 1: but there's you know, there's tons and tons and dozens 232 00:10:37,679 --> 00:10:40,200 Speaker 1: of others as well as all the traditional people who 233 00:10:40,200 --> 00:10:42,559 Speaker 1: actually want linear rights as well as digital rights. So 234 00:10:43,040 --> 00:10:45,360 Speaker 1: I think for those with rights that are trying to 235 00:10:45,400 --> 00:10:48,320 Speaker 1: sell and trying to create partnerships and things like that, yeah, 236 00:10:48,400 --> 00:10:50,560 Speaker 1: I think it's a very different landscape. But it's hard 237 00:10:50,600 --> 00:10:53,440 Speaker 1: to imagine a world in which there's four to five 238 00:10:53,480 --> 00:10:57,000 Speaker 1: billion hand sets that that is not a more lucrative 239 00:10:57,040 --> 00:10:59,840 Speaker 1: world in the long run than one when it's primetime 240 00:11:00,040 --> 00:11:01,960 Speaker 1: only on a device that sits on your wall. So 241 00:11:02,040 --> 00:11:06,760 Speaker 1: in the long run, then, is scalable media? I mean 242 00:11:06,840 --> 00:11:09,600 Speaker 1: I can sell a dollar ninety nine app or highlight 243 00:11:09,840 --> 00:11:13,800 Speaker 1: to somebody in Asia. Is that the real money maker? 244 00:11:14,080 --> 00:11:17,240 Speaker 1: While the in arena in stadium and you say baseball 245 00:11:17,240 --> 00:11:19,960 Speaker 1: more than others. It's really important. But just during the 246 00:11:20,080 --> 00:11:22,840 Speaker 1: quick back of napkin numbers and number of people out there, 247 00:11:23,120 --> 00:11:24,640 Speaker 1: I would think media is where the big money is 248 00:11:24,640 --> 00:11:26,679 Speaker 1: going to be over the long haul. If you can 249 00:11:26,720 --> 00:11:30,559 Speaker 1: talk to, you know, a billion fans every day. In theory, 250 00:11:30,600 --> 00:11:33,319 Speaker 1: you'll have a better economic situation than talking to your 251 00:11:33,320 --> 00:11:35,959 Speaker 1: five hundred thousand. You know, we're blasted with five hundred 252 00:11:35,960 --> 00:11:38,280 Speaker 1: thousand fans. We go to a ball our ballpark every day. 253 00:11:39,000 --> 00:11:41,679 Speaker 1: But I think the great thing about our sport is 254 00:11:41,720 --> 00:11:45,560 Speaker 1: you can focus on both their their different strategies, different executions, 255 00:11:45,559 --> 00:11:47,840 Speaker 1: and you can focus on both. But at the core, 256 00:11:48,280 --> 00:11:50,120 Speaker 1: you know, there's two things make you get make sure 257 00:11:50,120 --> 00:11:52,120 Speaker 1: people love coming to a game. We've talked about that, 258 00:11:52,400 --> 00:11:55,520 Speaker 1: and also focus on distribution and who your partners are. 259 00:11:55,880 --> 00:11:57,640 Speaker 1: UH over the long run, at least we found this 260 00:11:57,760 --> 00:11:59,880 Speaker 1: be true here at MLB dot com. The money will 261 00:12:00,040 --> 00:12:02,680 Speaker 1: um if you focus on distribution, build a great product, 262 00:12:03,240 --> 00:12:05,480 Speaker 1: make sure make sure people enjoy it when they watch it. 263 00:12:05,559 --> 00:12:08,120 Speaker 1: I think the money follows. Randy Levine, the president of 264 00:12:08,120 --> 00:12:11,080 Speaker 1: the Yankees, was a guest on the show earlier and 265 00:12:11,720 --> 00:12:14,760 Speaker 1: he talked about trying to get millennials in the ballpark. 266 00:12:15,520 --> 00:12:20,280 Speaker 1: I would think you have an idea of how millennials 267 00:12:20,280 --> 00:12:22,960 Speaker 1: are thinking what works because you're sort of surrounded by 268 00:12:22,960 --> 00:12:25,559 Speaker 1: the technology of it all. How do you get millennials 269 00:12:25,559 --> 00:12:27,680 Speaker 1: to buy tickets? What are they looking for. What do 270 00:12:27,720 --> 00:12:29,280 Speaker 1: they want? How do you get them to spend money 271 00:12:29,280 --> 00:12:33,240 Speaker 1: in your ballpark. One thing we've noticed with our workforce here, 272 00:12:33,280 --> 00:12:37,120 Speaker 1: which is significantly younger than I, is that when they 273 00:12:37,160 --> 00:12:40,520 Speaker 1: go watch a baseball game or sporting event live, they 274 00:12:40,600 --> 00:12:44,199 Speaker 1: generally stand up and they generally, you know, drink, not 275 00:12:44,280 --> 00:12:47,360 Speaker 1: necessarily alcohol, but they're they're socializing. The it isn't they 276 00:12:47,400 --> 00:12:50,840 Speaker 1: just don't socialize on their phone. And the theory behind 277 00:12:50,880 --> 00:12:54,040 Speaker 1: that is that they generally sometimes don't have cable. They 278 00:12:54,080 --> 00:12:56,400 Speaker 1: still like live sports, uh, and they want to do 279 00:12:56,480 --> 00:12:58,600 Speaker 1: things with other people at a price they can afford. 280 00:12:58,640 --> 00:13:00,800 Speaker 1: They're gonna buy the beer anyway. So I think one 281 00:13:00,840 --> 00:13:02,839 Speaker 1: thing we've done in baseball this year, and twenty two 282 00:13:02,840 --> 00:13:04,760 Speaker 1: teams have done it now, is this so called millennial 283 00:13:04,800 --> 00:13:08,400 Speaker 1: pass or ballpark pass, which follows the most successful business 284 00:13:08,400 --> 00:13:11,480 Speaker 1: model there's out there, which is a subscription. So let's 285 00:13:11,480 --> 00:13:14,000 Speaker 1: say Scott wants to go to to a certain two 286 00:13:14,000 --> 00:13:17,360 Speaker 1: team's games in June, fifteen home games. Thirty dollars for 287 00:13:17,440 --> 00:13:20,080 Speaker 1: fifteen home games. Go anytime you want no seat, standing 288 00:13:20,120 --> 00:13:22,839 Speaker 1: room only, go to a bar, go stand maybe you can, 289 00:13:22,880 --> 00:13:24,440 Speaker 1: maybe you can upgrade. We have a way to upgrade 290 00:13:24,440 --> 00:13:26,240 Speaker 1: to a real seat when you get there. But you 291 00:13:26,320 --> 00:13:28,080 Speaker 1: picked the day that's convenient for you. You don't try 292 00:13:28,120 --> 00:13:29,920 Speaker 1: and organize your four friends and say we're gonna go 293 00:13:30,000 --> 00:13:32,400 Speaker 1: June seventh and then find out, oh, suddenly, you know, 294 00:13:32,400 --> 00:13:34,240 Speaker 1: Sally's gotta work that day, so now we gotta find 295 00:13:34,240 --> 00:13:36,880 Speaker 1: a fourth that fill it up. Millennials and music has 296 00:13:36,880 --> 00:13:39,439 Speaker 1: certainly proved this time and time again. Millennials want to 297 00:13:39,480 --> 00:13:41,320 Speaker 1: have the right to say, I'm gonna go when it's 298 00:13:41,360 --> 00:13:43,400 Speaker 1: convenient for me, not when it's convenient for you. I 299 00:13:43,400 --> 00:13:45,319 Speaker 1: want to listen to the songs that I'm playing, not 300 00:13:45,440 --> 00:13:47,640 Speaker 1: the songs that you're playing. And I think that's what's 301 00:13:47,679 --> 00:13:49,640 Speaker 1: really worked well. And so so far we've you know, 302 00:13:49,640 --> 00:13:52,200 Speaker 1: we've sold over five hundred thousand tickets that way, and 303 00:13:52,280 --> 00:13:55,720 Speaker 1: excuse you know, significantly younger than season tickets. It's fifteen 304 00:13:55,760 --> 00:13:58,439 Speaker 1: years on average, younger than season tickets. The number one 305 00:13:58,559 --> 00:14:01,240 Speaker 1: group buying its twenty and to six years old. So 306 00:14:01,280 --> 00:14:03,560 Speaker 1: that's really a helpful way to get them to try it. 307 00:14:03,920 --> 00:14:06,240 Speaker 1: They can every one of their friends can can afford it, 308 00:14:06,720 --> 00:14:08,160 Speaker 1: and that way they can pick a day they can go, 309 00:14:08,160 --> 00:14:09,880 Speaker 1: and if they only go three days, it's still a 310 00:14:09,880 --> 00:14:12,280 Speaker 1: pretty good deal. H then go seven days, it's even 311 00:14:12,280 --> 00:14:14,440 Speaker 1: a better deal. But they it really isn't. The price 312 00:14:14,480 --> 00:14:16,600 Speaker 1: has to be low enough to be affordable in our view. 313 00:14:16,600 --> 00:14:18,360 Speaker 1: In twenty nine bucks, thirty bucks seems to be a 314 00:14:18,360 --> 00:14:20,760 Speaker 1: good price, and it has to be you know, pick 315 00:14:20,800 --> 00:14:23,560 Speaker 1: a game, you know it isn't Monday games, isn't Tuesday games. 316 00:14:23,600 --> 00:14:26,080 Speaker 1: As you choose the game, and I think you know, 317 00:14:26,120 --> 00:14:27,880 Speaker 1: some clubs have tried it. They sold out right away, 318 00:14:27,920 --> 00:14:29,680 Speaker 1: So that's one way we're trying to do it, and 319 00:14:29,680 --> 00:14:31,760 Speaker 1: I think it's so far the early returns are pretty good, 320 00:14:31,800 --> 00:14:37,400 Speaker 1: as the millennial sitting here at that brings to it 321 00:14:37,680 --> 00:14:41,040 Speaker 1: so obvious. Sorry, guys, this is radio and nobody knows 322 00:14:41,400 --> 00:14:43,920 Speaker 1: you could have kept that a secret. Go ahead, fine. 323 00:14:44,120 --> 00:14:46,320 Speaker 1: I've been to three baseball games this year, all three 324 00:14:46,360 --> 00:14:48,880 Speaker 1: of them I bought within twenty four hours of game starting. 325 00:14:49,240 --> 00:14:51,440 Speaker 1: I probably spent a total of twenty minutes in my 326 00:14:51,480 --> 00:14:54,880 Speaker 1: seat if that total standing room only is the area 327 00:14:54,920 --> 00:14:57,240 Speaker 1: we congregate in. My friends and I essentially buy the 328 00:14:57,320 --> 00:15:01,320 Speaker 1: cheapest tickets weekend and then congregate there drinking beer or 329 00:15:01,360 --> 00:15:04,000 Speaker 1: otherwise kind of throughout the game. And what happens during 330 00:15:04,000 --> 00:15:05,920 Speaker 1: the game is kind of not an afterthought. I won't 331 00:15:05,920 --> 00:15:08,160 Speaker 1: go that far, but we like to watch what's going on, 332 00:15:08,240 --> 00:15:10,320 Speaker 1: but it's more of a conversation between all of us. 333 00:15:10,320 --> 00:15:12,680 Speaker 1: We like to stand around a table look at each other. 334 00:15:12,720 --> 00:15:14,360 Speaker 1: I think what you're saying is exactly right. That kind 335 00:15:14,360 --> 00:15:17,000 Speaker 1: of millennial package seems like you would work. When when 336 00:15:17,040 --> 00:15:18,840 Speaker 1: I was growing up, we sat and you know, we 337 00:15:18,880 --> 00:15:20,920 Speaker 1: still went with friends. We sat in the bleachers, and 338 00:15:20,960 --> 00:15:23,200 Speaker 1: we sat next to each other, and we we drank 339 00:15:23,240 --> 00:15:26,400 Speaker 1: our soda and and we just enjoyed each other's company 340 00:15:26,440 --> 00:15:27,840 Speaker 1: as the three of us, and we three or four 341 00:15:27,840 --> 00:15:30,560 Speaker 1: of us, and we stood there. But today's millennials, today's youth, 342 00:15:30,560 --> 00:15:32,680 Speaker 1: are just different. They want to stand. They want to stand. 343 00:15:32,680 --> 00:15:34,920 Speaker 1: They're used to standing more so than we. They want 344 00:15:34,920 --> 00:15:37,480 Speaker 1: to walk. They walk around, and I think it's I 345 00:15:37,520 --> 00:15:39,080 Speaker 1: think it's really gonna be helpful to us to get 346 00:15:39,120 --> 00:15:41,080 Speaker 1: younger people to a ballpark. And you go to our 347 00:15:41,120 --> 00:15:43,440 Speaker 1: first comment. Once you go to a ballpark, even if 348 00:15:43,480 --> 00:15:46,320 Speaker 1: you're sort of splitting your time between your friends, you know, 349 00:15:46,360 --> 00:15:49,160 Speaker 1: the bar, the bar, TV, or the ball game. Even 350 00:15:49,160 --> 00:15:50,760 Speaker 1: though you splitting your time, you watch a little the 351 00:15:50,760 --> 00:15:52,600 Speaker 1: ball game, you go, this is pretty cool experience, and 352 00:15:52,760 --> 00:15:55,280 Speaker 1: particularly for parks that are you know, near us a 353 00:15:55,320 --> 00:15:58,040 Speaker 1: massive population, either through public transit or just because they're 354 00:15:58,080 --> 00:16:00,760 Speaker 1: downtown or something, those parks are really all suited to 355 00:16:00,880 --> 00:16:02,600 Speaker 1: draw on the young people. One thing I keep coming 356 00:16:02,600 --> 00:16:06,520 Speaker 1: back to is how expensive the entire experiences factor in 357 00:16:06,560 --> 00:16:09,240 Speaker 1: the ticket, the price of two beers if you get 358 00:16:09,600 --> 00:16:11,320 Speaker 1: something to eat. I mean, you're talking about a lot 359 00:16:11,360 --> 00:16:13,600 Speaker 1: of money just to go. Have you followed what's going 360 00:16:13,640 --> 00:16:15,640 Speaker 1: on in Atlanta with the with their football team and 361 00:16:15,680 --> 00:16:19,800 Speaker 1: they're small, The community pricing and community pricing that they're doing, 362 00:16:20,000 --> 00:16:21,720 Speaker 1: it's all interesting. Yeah, I haven't followed a little bit. 363 00:16:21,760 --> 00:16:23,640 Speaker 1: I don't know what I've read, but it's interesting and 364 00:16:23,720 --> 00:16:26,400 Speaker 1: I think you'll see other you know, stadiums and baseball 365 00:16:26,400 --> 00:16:28,720 Speaker 1: teams trying to experiment with that too, in terms of 366 00:16:28,760 --> 00:16:31,040 Speaker 1: trying to make sure it's certainly as a sport where 367 00:16:31,080 --> 00:16:34,280 Speaker 1: the most affordable of all sports, and so it's from 368 00:16:34,280 --> 00:16:36,480 Speaker 1: a family point of view, it works out well that way. 369 00:16:36,720 --> 00:16:38,880 Speaker 1: From millennial point of millennial point of view, you're right, 370 00:16:39,160 --> 00:16:41,400 Speaker 1: if you start spending eight nine dollars for a drink 371 00:16:41,760 --> 00:16:43,960 Speaker 1: or whatever, or even five dollars for soda, it can 372 00:16:43,960 --> 00:16:46,920 Speaker 1: add up and and millennials are very price conscious. I 373 00:16:46,920 --> 00:16:50,040 Speaker 1: mean read Hastings doing Netflix at eight dollars was genius. 374 00:16:50,080 --> 00:16:52,280 Speaker 1: That's the perfect spot where you can afford it. But 375 00:16:52,320 --> 00:16:53,640 Speaker 1: if you don't use it, you don't get rid of 376 00:16:53,680 --> 00:16:55,640 Speaker 1: it because it's only eight bucks. I mean it was 377 00:16:55,680 --> 00:16:58,080 Speaker 1: really smart. I think, and and and price really matters. 378 00:16:58,320 --> 00:16:59,760 Speaker 1: You used to just be again the product that I'll 379 00:16:59,760 --> 00:17:01,960 Speaker 1: look the same. It was on TV and there was 380 00:17:02,000 --> 00:17:04,600 Speaker 1: no individual price, you know, ala carte pricing. But there 381 00:17:04,680 --> 00:17:07,080 Speaker 1: is today and millennials have driven that. But what are 382 00:17:07,080 --> 00:17:08,960 Speaker 1: the other pillars that are going on right now? What 383 00:17:09,040 --> 00:17:12,320 Speaker 1: are these cornerstones of the revenue drivers for baseball? Well, 384 00:17:12,359 --> 00:17:15,720 Speaker 1: I think again, using the long term approach, you look 385 00:17:15,720 --> 00:17:18,280 Speaker 1: at the commissioners, and Commissioner Manford has done. He's made 386 00:17:18,320 --> 00:17:20,520 Speaker 1: one of his mattras, you know, youth and not not millennia. 387 00:17:20,560 --> 00:17:23,199 Speaker 1: Youth not pay us today. And it's all about economics. 388 00:17:23,520 --> 00:17:25,720 Speaker 1: It is get youth involved in baseball. And there's another 389 00:17:25,760 --> 00:17:27,960 Speaker 1: study out there that shows that if you played baseball 390 00:17:28,400 --> 00:17:30,520 Speaker 1: in any in any fashion, whether it's you know, whether 391 00:17:30,560 --> 00:17:33,640 Speaker 1: it's stickball, whether it's whiffleball, whether it's you know, the baseball, 392 00:17:33,640 --> 00:17:36,400 Speaker 1: that maybe literally has or whether it's softball that you're 393 00:17:36,480 --> 00:17:38,639 Speaker 1: more likely to be a fan and that just doesn't 394 00:17:38,640 --> 00:17:41,320 Speaker 1: happen by accident. A necessary news on youth participation was 395 00:17:41,359 --> 00:17:44,240 Speaker 1: up this year, with participations up and measuring both boys 396 00:17:44,280 --> 00:17:47,280 Speaker 1: and girls and I guess men and women playing playing baseball. 397 00:17:47,800 --> 00:17:49,480 Speaker 1: It's a great game, and it's a game that you know, 398 00:17:49,520 --> 00:17:51,159 Speaker 1: the youth really like in parents really like and it 399 00:17:51,200 --> 00:17:54,280 Speaker 1: works out well. But nothing happens by accident in an 400 00:17:54,320 --> 00:17:57,280 Speaker 1: attention starved environment. You know, people have a million things 401 00:17:57,320 --> 00:17:59,560 Speaker 1: to do. And I'm not exaggerating, And so if you 402 00:17:59,600 --> 00:18:02,160 Speaker 1: want him to commit to baseball, I think what Commissioner 403 00:18:02,160 --> 00:18:03,960 Speaker 1: he said is he has to commit to baseball. He 404 00:18:04,000 --> 00:18:06,640 Speaker 1: has to make sure it's important because everyone else realizes 405 00:18:06,760 --> 00:18:08,520 Speaker 1: is important that all of us who work in baseball, 406 00:18:08,680 --> 00:18:10,800 Speaker 1: all the owners and things like that. So I think 407 00:18:10,800 --> 00:18:13,000 Speaker 1: that's what's one of the pillars is make sure again 408 00:18:13,040 --> 00:18:15,399 Speaker 1: we're playing the long ball. No pun intended that it 409 00:18:15,480 --> 00:18:18,639 Speaker 1: isn't just trying to optimize or get the most money today. 410 00:18:18,680 --> 00:18:21,000 Speaker 1: It is trying to plant the seeds and lots of 411 00:18:21,040 --> 00:18:24,240 Speaker 1: seeds and lots of places for tomorrow's game. And it's 412 00:18:24,359 --> 00:18:27,920 Speaker 1: it's you know, incoming upon us to recognize we're temporary 413 00:18:27,960 --> 00:18:30,200 Speaker 1: stewards and getting the youth. And by this mean I 414 00:18:30,200 --> 00:18:32,000 Speaker 1: don't mean millennials. I don't mean that people as old 415 00:18:32,000 --> 00:18:34,159 Speaker 1: as he is. I mean either real youth, you know, 416 00:18:34,160 --> 00:18:36,639 Speaker 1: six to twelve years old, playing playing baseball. And my 417 00:18:36,680 --> 00:18:39,400 Speaker 1: son is eight, and it's the phone is everything? Dad 418 00:18:39,480 --> 00:18:41,280 Speaker 1: checked the weather, Dad checked the score. Dad, I want 419 00:18:41,280 --> 00:18:43,919 Speaker 1: to watch the video. Everything is the phone. It's mobile, 420 00:18:44,240 --> 00:18:46,680 Speaker 1: That's what he wants it on the go, which brings 421 00:18:46,720 --> 00:18:50,359 Speaker 1: us to another commissioner, Man for it's possible mantras sports betting. 422 00:18:50,920 --> 00:18:53,720 Speaker 1: He said it's something he'd like to consider. Putting in 423 00:18:53,760 --> 00:18:58,440 Speaker 1: line with Adam Silver, seems to me that the marriage 424 00:18:58,520 --> 00:19:01,960 Speaker 1: of baseball and mean agement of sort of a live 425 00:19:02,040 --> 00:19:05,800 Speaker 1: betting is a win win. Certainly, the money is out there. 426 00:19:06,160 --> 00:19:08,640 Speaker 1: You have you as as the guy in charge of revenue, 427 00:19:09,080 --> 00:19:12,040 Speaker 1: you have to say, there's a whole pull of money 428 00:19:12,080 --> 00:19:13,640 Speaker 1: out there for us. How do we get it? I'd 429 00:19:13,640 --> 00:19:15,919 Speaker 1: say a couple of things. One is, as you've as 430 00:19:15,960 --> 00:19:19,199 Speaker 1: you correctly noted, we have a commission now, who is 431 00:19:19,760 --> 00:19:22,080 Speaker 1: you know, willing to look at everything? And and the 432 00:19:22,080 --> 00:19:24,719 Speaker 1: the old saws or the old theories you know, are 433 00:19:24,720 --> 00:19:27,200 Speaker 1: worth it reexamination, and that's a that's a really good 434 00:19:27,240 --> 00:19:29,399 Speaker 1: news for those of us who work in baseball, But 435 00:19:29,400 --> 00:19:30,639 Speaker 1: I think it's good news for the people who are 436 00:19:30,640 --> 00:19:32,760 Speaker 1: fans of baseball that that something has always been this 437 00:19:32,800 --> 00:19:34,880 Speaker 1: way may not stay that way. And I think that's good. 438 00:19:34,920 --> 00:19:37,000 Speaker 1: Second of all, is it relates narrowly to this issue. 439 00:19:37,640 --> 00:19:39,600 Speaker 1: We have a lot of advantages by having a daily 440 00:19:39,600 --> 00:19:42,399 Speaker 1: game because we because we play every day, we have 441 00:19:42,520 --> 00:19:45,000 Speaker 1: live we have live events, fifteen of them, so we 442 00:19:45,080 --> 00:19:48,920 Speaker 1: have almost forty five hours of live content every day. 443 00:19:48,960 --> 00:19:51,480 Speaker 1: And whether that's good for media and a traditional sense, 444 00:19:51,560 --> 00:19:53,240 Speaker 1: or whether it's good for media in a digital sense 445 00:19:53,320 --> 00:19:55,400 Speaker 1: or international, however you want to look at it, it's 446 00:19:55,440 --> 00:19:58,000 Speaker 1: certainly not going to be. It certainly will lend itself 447 00:19:58,000 --> 00:20:00,399 Speaker 1: well if we ever get to a spot or you know, 448 00:20:00,440 --> 00:20:04,040 Speaker 1: certainly legalized sports betting becomes more prominent than just in uh, 449 00:20:04,200 --> 00:20:06,600 Speaker 1: just in Las Vegas. Whether or not it will, you know, 450 00:20:06,640 --> 00:20:09,520 Speaker 1: your guests is probably better than mine. But if it does, 451 00:20:09,640 --> 00:20:12,000 Speaker 1: certainly we have a game that you know that that 452 00:20:12,200 --> 00:20:14,680 Speaker 1: you know with a daily game, there's only more opportunity there. 453 00:20:14,680 --> 00:20:17,600 Speaker 1: And internationally they do there's a lot of betting that 454 00:20:17,680 --> 00:20:21,800 Speaker 1: goes on baseball because it's daily international baseball opportunity obviously 455 00:20:21,800 --> 00:20:24,679 Speaker 1: big tell me about what baseball is doing around the 456 00:20:24,680 --> 00:20:26,920 Speaker 1: world to drive revenue. But yeah, Tony Patiti really heads 457 00:20:26,920 --> 00:20:29,320 Speaker 1: it up. But he's and they've done. It's it's you know, 458 00:20:29,359 --> 00:20:31,159 Speaker 1: I've been here for seventeen years now. It's night and 459 00:20:31,240 --> 00:20:33,800 Speaker 1: day compared to what was happening and what is happening. 460 00:20:34,000 --> 00:20:35,600 Speaker 1: You know, whether you look at the exhibition games in 461 00:20:35,680 --> 00:20:39,359 Speaker 1: Mexico what ultimately will be hopefully a real real season game, 462 00:20:39,560 --> 00:20:41,520 Speaker 1: whether you look at London where we're gonna have London games, 463 00:20:41,560 --> 00:20:43,119 Speaker 1: whether you look at the Cuba trip, whether you look 464 00:20:43,119 --> 00:20:45,359 Speaker 1: at the Puerto Rican games. We're playing a lot of 465 00:20:45,359 --> 00:20:48,280 Speaker 1: baseball outside this country, which is what you have to do. Again, 466 00:20:48,480 --> 00:20:51,160 Speaker 1: things don't happen by accidents. If you want something to happen, 467 00:20:51,160 --> 00:20:52,680 Speaker 1: you have to show them you're willing to invest both 468 00:20:52,680 --> 00:20:55,040 Speaker 1: the time and the money, uh to make it happen. 469 00:20:55,040 --> 00:20:57,240 Speaker 1: And those things are going on. We have a great game, 470 00:20:57,440 --> 00:20:59,800 Speaker 1: easy game to understand. You know, you pitch the ball, 471 00:20:59,840 --> 00:21:01,960 Speaker 1: you have the ball, so it's pretty straight what they 472 00:21:02,000 --> 00:21:05,199 Speaker 1: do in cricket and I can't understand right, it's you 473 00:21:05,240 --> 00:21:07,920 Speaker 1: can understand that it hits better than not a hit, right, Okay, 474 00:21:07,960 --> 00:21:10,760 Speaker 1: So that's fundamentally and so I think you're gonna again. 475 00:21:10,800 --> 00:21:12,919 Speaker 1: I think that the theme you you're gonna see is 476 00:21:12,960 --> 00:21:15,920 Speaker 1: things that things that haven't been done before. It isn't why, 477 00:21:15,960 --> 00:21:20,200 Speaker 1: it's more why not. What's your biggest growth market internationally? Well, 478 00:21:20,240 --> 00:21:22,680 Speaker 1: it's it's interesting. I mean, we're pretty we're it's we're 479 00:21:22,680 --> 00:21:24,720 Speaker 1: pretty strong in Asia. So you think it might it 480 00:21:24,840 --> 00:21:27,399 Speaker 1: might be that even though we're pretty strong, Europe certainly 481 00:21:27,440 --> 00:21:31,800 Speaker 1: is one that's more uh more developing. But if you 482 00:21:31,840 --> 00:21:34,000 Speaker 1: go to Mexico down to Central America, where they play 483 00:21:34,000 --> 00:21:35,879 Speaker 1: a lot of baseball and love baseball, you'd have to 484 00:21:35,920 --> 00:21:38,920 Speaker 1: think have a middle class, they have pro leagues, you'd 485 00:21:38,960 --> 00:21:40,560 Speaker 1: have to think that it is probably a pretty good 486 00:21:40,800 --> 00:21:44,919 Speaker 1: near term market force bub retail of an investment in fanatics. 487 00:21:45,560 --> 00:21:49,400 Speaker 1: These leagues are becoming almost like venture capitalists, and there's 488 00:21:49,400 --> 00:21:51,920 Speaker 1: there's lots going on. I mean with Bam Bam tech. 489 00:21:52,920 --> 00:21:55,879 Speaker 1: This is the world we live. It's not just games anymore. 490 00:21:56,080 --> 00:21:59,159 Speaker 1: What do your owners ask of you and the commissioner? 491 00:21:59,280 --> 00:22:01,840 Speaker 1: What do they want for their franchises, for the for 492 00:22:01,880 --> 00:22:04,520 Speaker 1: the sport of baseball? Well, the owners are they're no 493 00:22:04,560 --> 00:22:06,320 Speaker 1: different than the rest of us. They're they're in for 494 00:22:06,359 --> 00:22:09,680 Speaker 1: the long pole. They're different than me. Well that, yes 495 00:22:09,720 --> 00:22:11,800 Speaker 1: they are. They made much more money than I do. Yeah, 496 00:22:11,800 --> 00:22:14,040 Speaker 1: there's that. Okay, fair point. But they're in it for 497 00:22:14,040 --> 00:22:16,280 Speaker 1: the long haul, and they want to win the World Series. 498 00:22:16,320 --> 00:22:18,639 Speaker 1: They want to win baseball games. But they're also almost 499 00:22:18,680 --> 00:22:21,359 Speaker 1: all of them successful. All of them are successful business 500 00:22:21,400 --> 00:22:23,720 Speaker 1: How many of them would consider it a successful season 501 00:22:23,960 --> 00:22:27,000 Speaker 1: if they won the World Series but lost fifty million dollars. Yeah, 502 00:22:27,200 --> 00:22:29,439 Speaker 1: that's a good question. I met. There might be some. 503 00:22:29,600 --> 00:22:31,720 Speaker 1: I don't know. I don't know how many there would be, 504 00:22:31,760 --> 00:22:35,720 Speaker 1: Like once maybe one get the get the seven get 505 00:22:35,720 --> 00:22:37,480 Speaker 1: the seven pound ring, and then move on. So I've 506 00:22:37,560 --> 00:22:39,960 Speaker 1: checked that box. Pretty exciting to win a World Series, 507 00:22:40,000 --> 00:22:42,560 Speaker 1: I'll say that much. I would guess the But I 508 00:22:42,560 --> 00:22:45,360 Speaker 1: think they're all you know, they're all successful business people. Uh. 509 00:22:45,359 --> 00:22:47,800 Speaker 1: They all understand sort of the media and where the 510 00:22:47,800 --> 00:22:51,280 Speaker 1: world's going. There's there's no medio classes. They're all educated. 511 00:22:51,320 --> 00:22:53,480 Speaker 1: They know exactly what they want to do, and most 512 00:22:53,520 --> 00:22:54,840 Speaker 1: of them, if not all of them, are doing at 513 00:22:54,840 --> 00:22:56,640 Speaker 1: the club level. They have they have their own mini 514 00:22:56,640 --> 00:22:59,879 Speaker 1: content machines. Each individual club. So I think they get it, 515 00:23:00,000 --> 00:23:03,720 Speaker 1: and they understand it in terms of investments. Um. The 516 00:23:03,760 --> 00:23:07,520 Speaker 1: simple fact is I think they also understand equity and 517 00:23:07,600 --> 00:23:09,760 Speaker 1: long term value. That's how they all built their business. 518 00:23:09,840 --> 00:23:12,800 Speaker 1: They while everyone has to pay the bills, most every 519 00:23:12,800 --> 00:23:15,160 Speaker 1: one of these successful business owners has built a business 520 00:23:15,160 --> 00:23:18,440 Speaker 1: has massive equity value. So they understand that, and well, 521 00:23:18,520 --> 00:23:20,480 Speaker 1: we can't do it in every instance. I think that's 522 00:23:20,480 --> 00:23:22,880 Speaker 1: what that was the sort of the theory behind bam Tech. 523 00:23:22,960 --> 00:23:24,840 Speaker 1: It is the theory behind trying to get more involved 524 00:23:24,840 --> 00:23:27,760 Speaker 1: in retail. That we are selling our property, in our 525 00:23:27,800 --> 00:23:30,200 Speaker 1: brand and our marks, maybe we should get more involved 526 00:23:30,200 --> 00:23:32,359 Speaker 1: instead of this letting third parties manage everything. So I 527 00:23:32,400 --> 00:23:34,439 Speaker 1: think that's what we're trying to do. We'll see how 528 00:23:34,480 --> 00:23:36,320 Speaker 1: that turns out over the next four or five years. 529 00:23:36,359 --> 00:23:38,800 Speaker 1: Does anybody buy a team just to own a team anymore? 530 00:23:39,040 --> 00:23:41,560 Speaker 1: I see them as ten poles to media plays. I 531 00:23:41,600 --> 00:23:44,800 Speaker 1: see real estate plays. The Dodgers are both. Can you 532 00:23:45,080 --> 00:23:48,880 Speaker 1: at one point two point three billion whatever the valuation 533 00:23:48,920 --> 00:23:50,800 Speaker 1: is these days, can you buy a team just to 534 00:23:50,840 --> 00:23:53,480 Speaker 1: have a team. Well, I think I'm sure you can, 535 00:23:53,960 --> 00:23:57,159 Speaker 1: But I don't think the thirty owners I know fully 536 00:23:57,240 --> 00:23:59,520 Speaker 1: understand that this team is, you know, it's wins and 537 00:23:59,560 --> 00:24:02,639 Speaker 1: losses play every day, but they fully understand that there 538 00:24:02,760 --> 00:24:05,520 Speaker 1: is a lot more value uh than just than just 539 00:24:05,600 --> 00:24:08,240 Speaker 1: the live sporting about that these media rights, particularly live 540 00:24:08,840 --> 00:24:11,120 Speaker 1: rights that that will have you know, have a disappearing 541 00:24:11,200 --> 00:24:13,320 Speaker 1: value after the game is over. They understand how to 542 00:24:13,359 --> 00:24:16,160 Speaker 1: optimize that value. And I would say that the owners 543 00:24:16,200 --> 00:24:19,320 Speaker 1: meetings are pretty invigorating in the sense that you better 544 00:24:19,320 --> 00:24:21,280 Speaker 1: bring your a game because these owners know what they're doing. 545 00:24:21,760 --> 00:24:24,520 Speaker 1: You've talked a bit about how different younger generations interact 546 00:24:24,560 --> 00:24:26,879 Speaker 1: with the game from an ownership standpoint. As your owners 547 00:24:26,920 --> 00:24:29,720 Speaker 1: get incrementally younger year after year, do you sense a 548 00:24:29,760 --> 00:24:32,159 Speaker 1: difference between your older ownership groups and you're younger in 549 00:24:32,280 --> 00:24:35,399 Speaker 1: terms of their business goals their aspirations. Not really. I 550 00:24:35,440 --> 00:24:37,399 Speaker 1: think they all would like to win the World Series, 551 00:24:37,560 --> 00:24:40,280 Speaker 1: but they all understand the long run nature of their 552 00:24:40,320 --> 00:24:43,199 Speaker 1: business and how and how they have to optimize the 553 00:24:43,280 --> 00:24:46,040 Speaker 1: ballpark experience, the media experience to make sure that their 554 00:24:46,080 --> 00:24:48,800 Speaker 1: fans are fans and the good times for sure, but 555 00:24:48,880 --> 00:24:51,520 Speaker 1: also so the leaner times because they understand that they're 556 00:24:51,560 --> 00:24:54,000 Speaker 1: all they're all just one picture, one hitter away from 557 00:24:54,040 --> 00:24:57,280 Speaker 1: you know, being versus being five fifty or five seventy 558 00:24:57,280 --> 00:24:59,640 Speaker 1: in winning the division. What's the best idea? We haven't 559 00:24:59,680 --> 00:25:04,080 Speaker 1: seen it? Yeah, well I've probably we probably haven't thought 560 00:25:04,119 --> 00:25:05,840 Speaker 1: of it yet. I was waiting. That's that's a question 561 00:25:05,880 --> 00:25:08,080 Speaker 1: for somebody else. That's probably a question for somebody else 562 00:25:08,119 --> 00:25:10,639 Speaker 1: to you know, I'll tell you. It's it's interesting, you know, 563 00:25:10,640 --> 00:25:13,600 Speaker 1: you you work in a building like this with people, 564 00:25:13,640 --> 00:25:16,200 Speaker 1: all of whom are younger than you, uh, younger than 565 00:25:16,200 --> 00:25:18,439 Speaker 1: I am, and young younger than all of us, and 566 00:25:18,880 --> 00:25:22,440 Speaker 1: they constantly are challenging the status quo. And I think 567 00:25:22,480 --> 00:25:25,080 Speaker 1: the one thing that we're thinking about is this ballpark 568 00:25:25,080 --> 00:25:27,760 Speaker 1: pass I mentioned earlier is doing so well. Is there 569 00:25:27,760 --> 00:25:30,720 Speaker 1: a subscription business that we haven't thought of yet that 570 00:25:30,760 --> 00:25:33,320 Speaker 1: we should be And I because I think the millennials 571 00:25:33,359 --> 00:25:36,320 Speaker 1: really like the notion one price per month, use it 572 00:25:36,320 --> 00:25:38,639 Speaker 1: as much as you want. Uh, it's sort of the 573 00:25:38,680 --> 00:25:40,719 Speaker 1: you know, the banquet approach. Just want to pay your 574 00:25:40,760 --> 00:25:42,879 Speaker 1: price and need as much as you want. Like Bob Bowman, 575 00:25:43,000 --> 00:25:46,280 Speaker 1: President of Business and Media, Major League Baseball, Thanks so much, Bob, 576 00:25:46,320 --> 00:25:49,440 Speaker 1: thank you, having a great day. And Evan, I can't 577 00:25:49,440 --> 00:25:52,520 Speaker 1: help but think about Bowman, maybe five ten years ago, 578 00:25:52,840 --> 00:25:54,960 Speaker 1: because it's a completely different ball game now. Who could 579 00:25:55,040 --> 00:25:58,920 Speaker 1: think about subscription services and pay one price. It's just 580 00:25:59,040 --> 00:26:01,560 Speaker 1: not the way thing is used to be done, exactly. 581 00:26:01,600 --> 00:26:04,320 Speaker 1: And he's being smart about where baseball is. If you 582 00:26:04,320 --> 00:26:07,240 Speaker 1: look at the demographics of TV viewers, for example, baseball's 583 00:26:07,280 --> 00:26:10,679 Speaker 1: average ages fifty seven. That's fifteen years higher than the 584 00:26:10,760 --> 00:26:13,760 Speaker 1: NBA's average age of viewer. So this is a problem 585 00:26:13,760 --> 00:26:16,080 Speaker 1: that exists in every sport, but baseball is a little 586 00:26:16,080 --> 00:26:20,080 Speaker 1: bit more specific. So it's not only what do advertisers want. 587 00:26:20,160 --> 00:26:23,240 Speaker 1: They love that demo of eighteen to thirty four, so 588 00:26:23,320 --> 00:26:26,960 Speaker 1: they're far outside that demo on TV. But you have 589 00:26:27,080 --> 00:26:29,720 Speaker 1: to meet the customers where they are these days, and 590 00:26:29,800 --> 00:26:32,200 Speaker 1: that means you better give them some sort of project 591 00:26:32,280 --> 00:26:35,800 Speaker 1: on their mobile phones, on their tablets. How can baseball 592 00:26:35,840 --> 00:26:39,080 Speaker 1: be cool to millennials? And even Bob said it, It 593 00:26:39,200 --> 00:26:41,959 Speaker 1: may not be the sport. They may not go to 594 00:26:42,000 --> 00:26:45,760 Speaker 1: the stadium to watch the baseball game per se, but 595 00:26:45,840 --> 00:26:49,280 Speaker 1: they want to be at the stadium to have an experience. 596 00:26:49,640 --> 00:26:53,439 Speaker 1: And if going to the stadium is the experience, the 597 00:26:53,520 --> 00:26:55,400 Speaker 1: way they can bring them in is to give them 598 00:26:55,640 --> 00:26:58,400 Speaker 1: a standing room only bar section over the right field Wall, 599 00:26:58,480 --> 00:27:01,199 Speaker 1: so be it exactly you're heard him saying himself, baseball 600 00:27:01,200 --> 00:27:05,359 Speaker 1: has one home games. There's a lot more impetus to 601 00:27:05,400 --> 00:27:07,399 Speaker 1: get people into the ballpark than there is for an 602 00:27:07,480 --> 00:27:09,560 Speaker 1: NFL team that has eight home games. All right, well 603 00:27:09,560 --> 00:27:11,520 Speaker 1: that's eight home games. Let's get to our stat of 604 00:27:11,520 --> 00:27:16,639 Speaker 1: the week. How about nine million? That is our number 605 00:27:16,680 --> 00:27:18,080 Speaker 1: in our stat of the week. Evan, you know what 606 00:27:18,119 --> 00:27:21,920 Speaker 1: I'm talking about. Lebron James also knows what you're talking about. 607 00:27:22,160 --> 00:27:26,480 Speaker 1: Lebron certainly knows that is the NBA salary cap that 608 00:27:26,640 --> 00:27:29,560 Speaker 1: recently came out, and usually takes a while. The union 609 00:27:29,560 --> 00:27:31,760 Speaker 1: in the league fight about what counts is revenue, because 610 00:27:32,119 --> 00:27:34,000 Speaker 1: we all know the cap is just a portion of 611 00:27:34,160 --> 00:27:36,560 Speaker 1: league wide revenue. So they fight for a while, then 612 00:27:36,600 --> 00:27:39,040 Speaker 1: they come up with this number. Actually a couple of 613 00:27:39,080 --> 00:27:42,800 Speaker 1: million dollars lower than what general managers thought it would be, 614 00:27:42,840 --> 00:27:45,840 Speaker 1: So that would rere trigger some calculations when it comes 615 00:27:45,840 --> 00:27:49,120 Speaker 1: to free agent signings. But the bigger picture, when you're 616 00:27:49,119 --> 00:27:51,880 Speaker 1: talking about a cap of million and you're talking about 617 00:27:51,920 --> 00:27:54,879 Speaker 1: the max contracts that these players can get, this is 618 00:27:54,920 --> 00:27:58,000 Speaker 1: what Steph Curry is basing his ultimate number on. He's 619 00:27:58,040 --> 00:28:01,560 Speaker 1: going to be the NBA's first two hundred million dollar man. 620 00:28:01,600 --> 00:28:03,560 Speaker 1: And this is also why Lebron James when he came 621 00:28:03,600 --> 00:28:05,679 Speaker 1: back to Cleveland, only signed a two year deal so 622 00:28:05,720 --> 00:28:07,640 Speaker 1: that he could have access to the higher salary cap 623 00:28:07,640 --> 00:28:09,760 Speaker 1: at a shorter window. And again while he signed a 624 00:28:09,760 --> 00:28:12,359 Speaker 1: two year extension instead of something longer, he knows this 625 00:28:12,440 --> 00:28:14,560 Speaker 1: number is going to go up. The TV revenue that 626 00:28:14,600 --> 00:28:17,359 Speaker 1: the league signed is finally pouring in. The number is 627 00:28:17,359 --> 00:28:19,399 Speaker 1: going to go even higher after this year, and when 628 00:28:19,480 --> 00:28:21,480 Speaker 1: Lebron James is a free agent after next year, he's 629 00:28:21,480 --> 00:28:24,240 Speaker 1: free to negotiate an even bigger one. So sure, Steph 630 00:28:24,320 --> 00:28:26,600 Speaker 1: Curry is the highest paid player now, that will probably 631 00:28:26,640 --> 00:28:28,720 Speaker 1: change in the off season next year when Lebron gets 632 00:28:28,720 --> 00:28:30,680 Speaker 1: his money. There's a reason why we keep having these 633 00:28:30,680 --> 00:28:33,200 Speaker 1: media executives on our show. This is where the money 634 00:28:33,240 --> 00:28:36,000 Speaker 1: comes from. You've been listening to Bloomberg Business of Sports 635 00:28:36,000 --> 00:28:38,800 Speaker 1: on Bloomberg Radio around the world. I'm Evan Novie Williams 636 00:28:38,920 --> 00:28:41,080 Speaker 1: and I'm Scott Sas. Thanks for joining us. We are 637 00:28:41,120 --> 00:28:43,200 Speaker 1: here each and every week at the same time, exploring 638 00:28:43,240 --> 00:28:44,440 Speaker 1: the world of money in sports.