WEBVTT - Lebron's Crowning Achievement and a Big Game Preview 0:00:00.880 --> 0:00:03.120 This is the Bloomberg Business of Sports Show where we 0:00:03.160 --> 0:00:05.320 explore the big money issues in the world of sports. 0:00:05.400 --> 0:00:08.879 I'm Scarlet Folk and Damian Michael Barr is off this week, 0:00:08.960 --> 0:00:11.000 no doubt, getting ready for the big Game. We have 0:00:11.039 --> 0:00:13.840 an exciting show lined up in his absence because we 0:00:13.960 --> 0:00:16.200 are helping you get ready for the Super Bowl. That's right, 0:00:16.280 --> 0:00:17.959 We're going to take you behind the scenes of the 0:00:18.000 --> 0:00:21.880 Big Game. We'll talk with ASM Global CEO rom Bencien 0:00:22.079 --> 0:00:24.760 and Doug Thornton, a s MS Global Executive Vice President 0:00:24.800 --> 0:00:27.960 of Arenas, Stadiums and Theaters. ASM Global is a premier 0:00:28.040 --> 0:00:30.960 venue management company with more than three hundred fifty venues 0:00:31.000 --> 0:00:34.680 around the world, including one State Farm Stadium in Arizona, which, 0:00:34.800 --> 0:00:36.120 by the way, is the host site of this year 0:00:36.120 --> 0:00:38.400 Super Bowl. All that and more is on the way 0:00:38.440 --> 0:00:41.360 on the Bloomberg Business of Sports Show. But first, yes, 0:00:41.440 --> 0:00:44.120 it's a big, big week for football, but it's also 0:00:44.159 --> 0:00:47.080 been very exciting for NBA fans. Yes, it has has 0:00:47.120 --> 0:00:49.519 in its Scarlett a Ton is going on. We had 0:00:49.560 --> 0:00:52.880 to trade deadline with Kevin Durant, Kyrie Irving and Russell 0:00:52.920 --> 0:00:54.920 Westbrook all ending up on new teams and of course 0:00:55.240 --> 0:01:05.000 Lebron James said the milestones Lebron James shot at Heysturday alone, 0:01:08.400 --> 0:01:13.560 scoring record no belongs to Lebron Church. That's right. Lebron 0:01:13.640 --> 0:01:16.480 James is now the NBA's all time scoring leader, as 0:01:16.520 --> 0:01:19.679 you just heard courtesy of t n T here's King 0:01:19.760 --> 0:01:22.360 James speaking to reporters after that milestone. You know, almost 0:01:22.360 --> 0:01:24.240 a storian of the game. So I know what you know, 0:01:24.560 --> 0:01:27.319 guys like Kareem and Wild and MJ and Magic and Bird. 0:01:28.040 --> 0:01:30.679 You know, Oscar Robinson was in better arrest. You know, 0:01:31.600 --> 0:01:33.480 I'm gonna be up here all night talking about so 0:01:33.520 --> 0:01:38.400 many greats and legends, you know, for me, um personally, Um, 0:01:38.400 --> 0:01:39.520 you know, it was just an honor to be just 0:01:39.640 --> 0:01:42.240 named with the greats. Lebron James. They're speaking to reporters 0:01:42.280 --> 0:01:46.640 courtesy of ESPN. That's Lebron on the court, but he's 0:01:46.680 --> 0:01:49.320 doing pretty well for himself off the court scarlet. His 0:01:49.400 --> 0:01:52.279 net worth is now estimated to be around one point 0:01:52.320 --> 0:01:55.280 one billion dollars. So for more, let's bring in Bloomberg 0:01:55.320 --> 0:01:58.800 Wealth team leader Bryan Chapata, who also covers sports Bryan Chapatta. 0:01:59.080 --> 0:02:01.280 Bron James made how Lines this week because, of course, 0:02:01.320 --> 0:02:04.440 he became the top score in the NBA, surpassing Kareem 0:02:04.440 --> 0:02:08.120 Abdul Jabbar. But you guys took a look at his 0:02:08.320 --> 0:02:12.160 business empire and the numbers are going up here. Yeah. 0:02:12.200 --> 0:02:14.760 I mean we've long suspected that Lebron was a billionaire, 0:02:14.840 --> 0:02:16.880 but this seemed like obviously a natural time to go 0:02:16.960 --> 0:02:18.600 back and take a step back and look at just 0:02:18.639 --> 0:02:22.560 how impressive Lebron has been both on and off the court. Um, 0:02:22.680 --> 0:02:26.519 we value his overall fortunate about one point one billion 0:02:26.560 --> 0:02:29.160 dollars UM. That's a combination of all the salary that 0:02:29.200 --> 0:02:32.799 he's gotten, the various sponsorships, his investments, and also his 0:02:32.800 --> 0:02:36.080 his businesses um spring Hill Company, the entertainment business that 0:02:36.120 --> 0:02:39.480 he runs with his longtime business partner among them. So 0:02:39.800 --> 0:02:42.120 it's it's really impressive because he's obviously still playing and 0:02:42.240 --> 0:02:44.280 still very much at the top of his game in 0:02:44.320 --> 0:02:46.600 the n b A and and yet he's also you know, 0:02:46.680 --> 0:02:48.720 really really been accomplished off the court as well. Yeah. 0:02:48.720 --> 0:02:51.400 And what's most amazing is the portfolio of investments that 0:02:51.440 --> 0:02:53.680 he's made, right, I mean, he's not an old man, 0:02:53.800 --> 0:02:56.480 so for him to now own and convert through ownership 0:02:56.520 --> 0:02:59.560 of Liverpool a one percent state Confindway Sports is pretty impressive. 0:02:59.560 --> 0:03:02.160 I mean, he owns a piece of fine sports for 0:03:02.200 --> 0:03:04.519 crying out that, but also Beats electronics which are sold 0:03:04.520 --> 0:03:06.840 to Apple for three billion baeen. I mean, just some 0:03:06.880 --> 0:03:09.600 incredible moves. Talk to us a little bit about some 0:03:09.680 --> 0:03:11.760 of the advice Warren Buffett gave to him. Yeah, I 0:03:11.760 --> 0:03:13.440 thought that was pretty funny. When I was going back 0:03:13.480 --> 0:03:15.560 and thinking about this story, I wanted to see kind 0:03:15.560 --> 0:03:18.119 of what kind of stuff that he's heard from from 0:03:18.120 --> 0:03:21.960 business luminaries and and Buffett was was basically asked to 0:03:22.040 --> 0:03:24.320 address Lebron's question of what should I invest in back in, 0:03:25.040 --> 0:03:27.680 and he said, just just doing index fun man, Like, 0:03:29.880 --> 0:03:32.120 you're really good at basketball, but you're not going to 0:03:32.240 --> 0:03:34.480 also be really good as an investor. It's the same 0:03:34.520 --> 0:03:37.880 advice I give my clients the people who ask. And 0:03:37.880 --> 0:03:40.600 it's pretty funny because I think Lebron has proven to 0:03:40.640 --> 0:03:43.720 be the exception rather than the norm. Um, it's possible 0:03:43.760 --> 0:03:46.200 that obviously past investing would have yielded a lot of 0:03:46.240 --> 0:03:48.760 money for him as well, because he brings into point 0:03:48.760 --> 0:03:51.480 five billion dollars this year. But at the same time, UM, 0:03:51.480 --> 0:03:54.240 he's done really well for himself. Off the court too, 0:03:54.320 --> 0:03:57.760 And and I think that really speaks to the you know, 0:03:57.920 --> 0:04:00.560 he's embraced the moniker of King J Games for so 0:04:00.600 --> 0:04:03.080 long that he's known he was going to be a 0:04:03.120 --> 0:04:06.080 successful basketball player, and he's known that as a result, 0:04:06.160 --> 0:04:07.960 he's going to have to take care of his finances. 0:04:08.240 --> 0:04:10.440 And I think it's been honestly, just like pretty impressive 0:04:10.520 --> 0:04:13.680 overall how he's managed to do that, and he's basically 0:04:13.800 --> 0:04:17.359 created a blueprint for other professional athletes. Um. Back in 0:04:17.400 --> 0:04:21.400 the day, pro athletes signed endorsement deals, that's how they 0:04:21.400 --> 0:04:23.240 made their money along with their salary. But this is 0:04:23.240 --> 0:04:27.040 a whole different level of building equity and companies, associating 0:04:27.080 --> 0:04:30.800 yourself with brands, kind of becoming more than just Lebron 0:04:30.880 --> 0:04:33.520 James of the Cleveland Cavaliers or Lebron James of the 0:04:33.640 --> 0:04:35.520 l A Lakers. Yeah. I think it's a really great 0:04:35.560 --> 0:04:38.200 point and it's something that obviously, through this this podcast, 0:04:38.240 --> 0:04:41.160 were able to to see. It's just this this maturation 0:04:41.400 --> 0:04:45.159 of the professional athlete from just not really knowing what 0:04:45.200 --> 0:04:49.680 to do with becoming a multimillionaire overnight to really thinking 0:04:49.920 --> 0:04:52.280 hard about the role models that they want to follow. 0:04:52.720 --> 0:04:55.480 And yeah, building that equity, finding brands that they believe 0:04:55.520 --> 0:04:58.480 in and not just endorse them, but also kind of 0:04:58.480 --> 0:05:00.000 have a steak and have a skin in the game 0:05:00.000 --> 0:05:03.359 aam um when it comes to ultimately building a fortune 0:05:03.960 --> 0:05:07.520 and building a family business. Because his son Brawny is 0:05:07.560 --> 0:05:10.320 in the prospect and so you know, at some point 0:05:10.360 --> 0:05:12.400 a lot of this will, you know, generationally transfer over 0:05:12.400 --> 0:05:14.440 to his children. But I'm more of the point that 0:05:14.760 --> 0:05:16.800 you know, but by the time this is said and done, 0:05:17.200 --> 0:05:18.880 you know, he could be playing with his son. I mean, 0:05:18.880 --> 0:05:20.839 this is a thirty year old man who's playing in 0:05:20.839 --> 0:05:23.080 the prime of his career, but with over a billion 0:05:23.120 --> 0:05:24.640 dollars in the bank. I mean, he can be play 0:05:24.800 --> 0:05:27.120 pretty much as long as he's healthy, right, wouldn't you say? Yeah? 0:05:27.120 --> 0:05:28.760 I mean I was just looking back at his stats 0:05:28.800 --> 0:05:31.680 and it's really incredible if there's been really no drop off. 0:05:31.720 --> 0:05:34.240 I mean, I think it speaks to obviously his frame 0:05:34.240 --> 0:05:36.440 of mind, his his willingness to put in the work 0:05:36.480 --> 0:05:39.920 in the gym. But I mean, he's he's ranking near 0:05:39.960 --> 0:05:43.040 the top of the league again in points rebounds a system. Obviously, 0:05:43.080 --> 0:05:46.159 the Lakers are not having a great year um and um, 0:05:46.200 --> 0:05:47.600 and it doesn't look like I'm gonna be getting that 0:05:47.680 --> 0:05:50.200 much greater. But at the same time, you know, he's 0:05:50.200 --> 0:05:53.320 still in peak condition and it looks like, yeah, his 0:05:53.320 --> 0:05:54.839 his stated goal is that he would love to play 0:05:54.839 --> 0:05:57.440 with his son, who is a top fifty prospect right 0:05:57.440 --> 0:05:59.640 now senior in high school. Yeah. Something else that I 0:05:59.680 --> 0:06:02.720 know you and Damien have been buzzing about is, um, 0:06:02.760 --> 0:06:05.520 some personnel moves at a certain team in New York. 0:06:05.640 --> 0:06:08.440 Not not the Knicks. Not the Knicks, now, um, the 0:06:08.480 --> 0:06:10.560 Brooklyn Nets. Brian, what do you think about the Brooklyn 0:06:10.600 --> 0:06:12.599 Nets and what they're doing over there? It certainly seems 0:06:12.600 --> 0:06:15.880 like a rebuild, doesn't it. It's uh, it's basically the 0:06:15.960 --> 0:06:18.040 end of an era in the sense of the super 0:06:18.080 --> 0:06:21.039 team that that Brooklyn was trying to build. Remember, James 0:06:21.080 --> 0:06:23.560 Harden was obviously on the team that was supposed to 0:06:23.560 --> 0:06:26.159 be the team that took them to the championship. That 0:06:26.560 --> 0:06:29.440 that that justified at three point five billion dollar purchase 0:06:29.520 --> 0:06:32.440 from Joe pih Um, And now we're pretty much in 0:06:32.520 --> 0:06:34.880 rebuilding mode. Yeah. And you know, I mean apparently Josie 0:06:34.960 --> 0:06:36.919 got a massive haul from this. I'm looking at you know, 0:06:36.960 --> 0:06:41.200 first round picks and a twenty pick swap. My question 0:06:41.240 --> 0:06:43.040 for you is if you look at the Knicks, they 0:06:43.040 --> 0:06:44.880 have a lot of draft picks. Also, do draft picks 0:06:44.880 --> 0:06:47.400 even work in the NBA anymore? I mean that's the question. 0:06:47.400 --> 0:06:49.880 I think it's always, um, you know, do you want 0:06:49.880 --> 0:06:52.240 to things so right? Do you want to take? Do 0:06:52.240 --> 0:06:53.600 you want do you want to take the shut thing? 0:06:53.720 --> 0:06:55.479 Or do you want Nothing is a short thing obviously, 0:06:55.520 --> 0:06:58.320 because of course with Brooklyn Durant missed his first year 0:06:58.560 --> 0:07:00.840 entirely due to injury. Nothing, So nothing is a sure thing. 0:07:00.880 --> 0:07:03.360 I don't want to drink so anything obviously, But um, 0:07:03.440 --> 0:07:06.400 you think about who is running the Phoenix Suns these days, 0:07:06.520 --> 0:07:09.279 and Matt Ishbea is coming in, uh new owner taking 0:07:09.320 --> 0:07:11.200 over for Robert Sarver, And you want to make an 0:07:11.240 --> 0:07:13.880 immediate splash. You don't want to say, Okay, I have 0:07:14.000 --> 0:07:16.680 first round picks and you know, wait a few years, 0:07:16.760 --> 0:07:18.760 wait four or five, six years, and we'll start to 0:07:18.800 --> 0:07:20.920 build this thing up. You want to make a splash 0:07:21.000 --> 0:07:23.400 right away. And I think that's that's a theme that 0:07:23.440 --> 0:07:26.960 you can see across professional sports franchises. UM. We wrote 0:07:27.040 --> 0:07:29.680 last year UM on the Wealth Team about Steve Cohen, 0:07:29.840 --> 0:07:33.320 hedge fund manager and New York Mets owner and how 0:07:33.400 --> 0:07:35.840 he's just willing to spend big to win now. And 0:07:35.880 --> 0:07:38.480 I think that's something that you could maybe extrapolate to 0:07:38.480 --> 0:07:40.600 to why the Sun's made this move right away. I mean, 0:07:40.680 --> 0:07:43.320 Devin Booker, Chris Paul, Chris Paul, I'm Chris Paul. We 0:07:43.320 --> 0:07:45.160 do a lot with Chris Paul here, Bloomberg DeAndre eight 0:07:45.200 --> 0:07:46.520 and I mean it's a super team. I mean the 0:07:46.560 --> 0:07:49.120 other one was Kyrie ir Ring leading right, So you know, 0:07:49.160 --> 0:07:51.280 I guess what comes next for Jota. I mean, the 0:07:51.360 --> 0:07:53.040 verdict is still out, but you know, let's hope he 0:07:53.040 --> 0:07:55.280 doesn't find himself in a situation such as the Knicks 0:07:55.280 --> 0:07:57.400 are in where they have a plethora of draft picks 0:07:57.760 --> 0:07:58.960 and not a whole heck of a lot of talent 0:07:59.000 --> 0:08:00.800 on the roster. Yeah, it's really tough. I mean, the 0:08:00.800 --> 0:08:04.040 New York media market is obviously unrelenting when it comes 0:08:04.080 --> 0:08:06.760 to its sports. But um, I mean, I think to 0:08:06.840 --> 0:08:08.880 your point, he did get a good haul for this. 0:08:09.040 --> 0:08:11.520 It certainly seems like if all the all the reports 0:08:11.520 --> 0:08:14.920 are true, and you've got to really just be judicious 0:08:15.120 --> 0:08:17.559 and and be smart when it comes to the draft. 0:08:17.600 --> 0:08:20.400 I think you've seen you've seen other examples of this 0:08:20.560 --> 0:08:23.000 throughout sports where you can, you can you can really 0:08:23.040 --> 0:08:25.960 rebuild through the draft pretty quickly and build up a team. 0:08:25.960 --> 0:08:28.120 You gotta do it, right. I mean, I was, I've 0:08:28.160 --> 0:08:30.400 been a Chicago Cubs fan, and obviously I still think 0:08:30.440 --> 0:08:32.560 back to that World Series win and that was entirely 0:08:32.600 --> 0:08:37.360 constructed through um, by and large, the draft process in 0:08:37.360 --> 0:08:40.640 in the Major League Baseball. So, um, we'll see what happens. 0:08:40.679 --> 0:08:43.560 But but Joe size plans to win big with the 0:08:43.600 --> 0:08:47.400 splashy super team really hasn't panned out. So is the 0:08:47.480 --> 0:08:50.600 excitement over basketball in New York going to swing back 0:08:50.679 --> 0:08:54.800 to the Knicks from the Nets? Now? We'll see. I mean, um, 0:08:55.600 --> 0:08:57.760 it does seem to swing. But also it seems like 0:08:57.800 --> 0:09:02.840 the loyalties are are pretty firm too firmly entrenched. Yeah, exactly. Um, 0:09:02.880 --> 0:09:05.959 both of them are having ups and downs. Certainly over 0:09:06.000 --> 0:09:09.400 recent years seems more downs than ups. But um, but 0:09:09.440 --> 0:09:12.520 you know, it really only takes one or two really 0:09:12.559 --> 0:09:15.280 really bold moves to to swing things, especially in the NBA. 0:09:15.320 --> 0:09:17.160 I feel like, well, I mean, look, you know, I 0:09:17.160 --> 0:09:18.520 guess at the end of the day, there's been a 0:09:18.559 --> 0:09:20.320 lot of movement here. You know, obviously the Nets are 0:09:20.320 --> 0:09:22.559 in a rebuild. You know, let's talk a little bit 0:09:22.600 --> 0:09:25.400 more of I can ask you about that historic night 0:09:25.559 --> 0:09:28.920 on television when Lebron broke the record. I mean from 0:09:28.920 --> 0:09:31.080 what I heard, it attracted something in the order of 0:09:31.320 --> 0:09:33.760 three point seven million doll like an all time record 0:09:34.280 --> 0:09:36.640 in viewership. That is that, right? Can I just say 0:09:36.640 --> 0:09:39.640 one thing? Did you see still pictures of Um? You know, 0:09:39.679 --> 0:09:43.120 when Lebron broke the record, everyone in the stands had 0:09:43.160 --> 0:09:45.319 their phone in front their face. So yeah, that's it. 0:09:45.000 --> 0:09:48.200 Even Brownie did you might you might have seen on Twitter. 0:09:48.280 --> 0:09:51.760 But but Lebron's sons were right in the right by 0:09:51.840 --> 0:09:54.720 the basket where he where he made that that fateful shot, 0:09:55.120 --> 0:09:57.480 and they both had their phones up the fair way 0:09:57.520 --> 0:10:00.240 to record it. Lebron in the locker room was looking 0:10:00.280 --> 0:10:03.200 at I was looking at the video taken by Brawny 0:10:03.280 --> 0:10:06.720 and was like, that's awesome. Um, but yeah, everyone's looking 0:10:06.720 --> 0:10:09.880 through their phones at the at the moment that it happened. Wow. Well, 0:10:09.920 --> 0:10:11.520 I mean, you want to hear something interesting. I mean, 0:10:11.559 --> 0:10:13.800 I just reading this here. Before Tuesday night, the minimum 0:10:13.800 --> 0:10:17.640 price to get into that game was seven ninety six dollars. 0:10:17.679 --> 0:10:20.000 It was one hundred dollars on Wednes. I mean it's 0:10:20.679 --> 0:10:22.400 just to get into the game. I mean, if you 0:10:22.400 --> 0:10:23.959 were gambling that he was going to break it, then 0:10:24.080 --> 0:10:25.679 I mean it was just a massive moment, you know what. 0:10:25.840 --> 0:10:28.160 Every point after that is a new record. So yeah, 0:10:28.760 --> 0:10:30.040 that's that's a good way to look at I mean, 0:10:30.080 --> 0:10:32.920 I'm just honestly amazed that it was one of those 0:10:32.920 --> 0:10:35.800 records that you were not sure would ever get broken, right. 0:10:35.840 --> 0:10:38.520 I Mean Michael Jordan obviously didn't get there. He also 0:10:38.600 --> 0:10:42.080 obviously took time off multiple times during his career. But 0:10:42.120 --> 0:10:45.480 I think it really also speaks to Lebron's longevity in 0:10:45.520 --> 0:10:47.920 the league. I mean, he just he plays it feels 0:10:47.960 --> 0:10:50.120 like every game. I mean I really can't think of 0:10:50.559 --> 0:10:53.600 many times when he's been out for an extended period. Um, 0:10:53.640 --> 0:10:56.199 not that I track it as closely as as some 0:10:56.240 --> 0:10:59.719 people do, but um, he's just he's almost the cal 0:10:59.800 --> 0:11:02.240 Riff and I would almost say of a basketball he's 0:11:02.320 --> 0:11:06.160 just he's just always there and always putting up exceptional numbers. Yeah. 0:11:06.200 --> 0:11:07.640 I mean, I don't know if anyone caught this, but 0:11:07.679 --> 0:11:10.440 there has been some blowback against Michael Jordan's because he 0:11:10.480 --> 0:11:15.800 didn't really converted commas congratulate Lebron after breaking the record 0:11:16.360 --> 0:11:18.400 where he he you know, it just was a very 0:11:18.440 --> 0:11:21.000 It wasn't like the kind of congratulations I think that 0:11:21.200 --> 0:11:23.640 social media one. It's a sea from Michael Jordan. I 0:11:23.679 --> 0:11:26.679 think I don't know I'm hearing about all this. But nevertheless, look, 0:11:26.720 --> 0:11:28.920 I mean, you know, there's no comparison between the two. 0:11:28.960 --> 0:11:31.360 They're both the goats in my book, you know, in 0:11:31.360 --> 0:11:33.599 their own different ways in different times, and so you know, 0:11:33.640 --> 0:11:36.040 anybody tries to compare them, I mean, good luck. Well, 0:11:36.040 --> 0:11:37.800 the other thing that will be interesting is whether Lebron 0:11:37.880 --> 0:11:40.719 ultimately takes the same path as Michael Jordan's and goes 0:11:40.760 --> 0:11:43.319 into the ownership ranks of the n B a UM. 0:11:43.720 --> 0:11:46.360 The sky's really limit for him. Obviously, with a fortunate 0:11:46.400 --> 0:11:49.200 over a billion dollars already, he can do whatever he wants, really, 0:11:49.240 --> 0:11:51.079 whatever he wants to buy a pickup ball team and 0:11:51.800 --> 0:11:54.120 guess what it done. You can buy every pickupall team 0:11:54.200 --> 0:11:58.120 with that. Brian, thanks so much for stopping by. Brian 0:11:58.200 --> 0:12:01.080 Chapatta is Bloomberg's Wealth Tea leader, and of course you 0:12:01.120 --> 0:12:04.440 can catch his excellent reporting online at Bloomberg dot Com. 0:12:04.480 --> 0:12:06.640 Coming up next on the show, We've Got Ron Bension 0:12:06.720 --> 0:12:08.880 and Doug Thornton of a SM Global that is the 0:12:08.880 --> 0:12:11.240 firm and charge of the venue that's hosting this year's 0:12:11.240 --> 0:12:13.760 Super Bowl. You're listening to the Bloomberg Business of Sports 0:12:13.800 --> 0:12:23.800 from Bloomberg Radio around the world. This is the Bloomberg 0:12:23.800 --> 0:12:26.040 Business of Sports show where we explore the big money 0:12:26.080 --> 0:12:29.920 issues in the world of sports. I'm Scarlet Folk and 0:12:30.000 --> 0:12:32.480 Michael Barr will be back next week. We miss you, 0:12:32.600 --> 0:12:34.600 but Michael is getting ready for one of the biggest 0:12:34.679 --> 0:12:37.280 days on the sports calendar, on the football calendar. It 0:12:37.440 --> 0:12:40.480 is the Super Bowl. It's right, Scarlett. Our next guests 0:12:40.679 --> 0:12:42.920 are going to take us behind the scenes of how 0:12:42.920 --> 0:12:45.720 they're prepping for the Super Bowl at State Farm Stadium 0:12:45.720 --> 0:12:49.440 in Glendale, Arizona. So let's welcome Ron Bension, CEO of 0:12:49.520 --> 0:12:52.120 a SM Global, along with Doug Thornton, a s MS 0:12:52.120 --> 0:12:55.920 Global Executive Vice President of Arenas, Stadiums and Theaters. A 0:12:56.080 --> 0:12:59.880 SM Global operates over three d and fifty venues worldwide, 0:13:00.080 --> 0:13:02.880 but right now we're focused on just one State Farm 0:13:02.920 --> 0:13:05.600 Stadium in Glendale, where the Eagles and Chiefs will face 0:13:05.600 --> 0:13:08.079 off in Super Bowl fifty seven. Oh and by the way, 0:13:08.240 --> 0:13:10.679 Rihanna will also take the stage for the halftime show. Yeah, 0:13:10.720 --> 0:13:12.880 I'm tuning in for that one. Ron, Doug, thank you 0:13:12.920 --> 0:13:14.880 so much for joining us on what is I'm sure 0:13:14.960 --> 0:13:17.320 a very busy week. Ron, Why don't you get us 0:13:17.320 --> 0:13:19.800 started and tell us a little bit about what your 0:13:19.880 --> 0:13:24.120 last few days look like as you head into Superule Sunday. Yeah, 0:13:24.160 --> 0:13:26.280 I mean this is um uh, you know, it's a 0:13:26.360 --> 0:13:30.079 super exciting time. Obviously, UM everything is a little bit 0:13:30.320 --> 0:13:34.280 but a lot of planning goes in there. UM essentially 0:13:34.600 --> 0:13:36.960 committees that are on the ground and operating on the 0:13:37.000 --> 0:13:39.319 ground for you know, well in advance, maybe even a 0:13:39.400 --> 0:13:42.640 year in advance of these, um, these big events, and 0:13:42.640 --> 0:13:45.079 and we've done so many of them. A s M 0:13:45.120 --> 0:13:49.439 globals hosted eleven Super Bowls so far and we are 0:13:49.480 --> 0:13:52.480 hosting the next three. UM, so we've got an awful 0:13:52.480 --> 0:13:55.599 lot of experience UM in hosting these. We've got the 0:13:55.640 --> 0:13:59.560 confidence of the of the NFL, UM and and the 0:13:59.640 --> 0:14:02.880 venues that that hosts these. So UM it's I can't 0:14:02.880 --> 0:14:05.600 say we've been there, done that, but UM, I think 0:14:05.640 --> 0:14:08.120 that the experience of the team on the ground as 0:14:08.160 --> 0:14:11.040 well as UM, you know, from Doug's perspective and the 0:14:11.080 --> 0:14:13.199 senior leadership team that know how to get these kind 0:14:13.200 --> 0:14:16.880 of projects done. Um, we're not running around like chickens 0:14:16.880 --> 0:14:19.400 with her hands off. Well, you know we're on here, 0:14:19.440 --> 0:14:21.080 but I mean for our audience. By the way, before, 0:14:21.200 --> 0:14:23.160 before you joined a s M, right, you're president of 0:14:23.200 --> 0:14:26.480 Live Nation subsidiary Venue Nation right where you oversaw the 0:14:26.600 --> 0:14:29.840 largest portfolio of live music venues in the world. So 0:14:29.920 --> 0:14:32.320 for our audience here, Ron, it should come as no 0:14:32.360 --> 0:14:35.600 surprise that you know, Um, the big money question is 0:14:35.640 --> 0:14:38.880 who brokered Rihanna's this year's halftime before. I mean, I 0:14:38.920 --> 0:14:40.920 love the choice, don't get me wrong, I'm just curious, 0:14:40.960 --> 0:14:43.400 like a decision like that, I mean, where does it reside? 0:14:43.440 --> 0:14:45.720 Is that the stadium? Is it a s M? I mean, 0:14:45.760 --> 0:14:48.080 do you have any influences at the NFL front office 0:14:48.200 --> 0:14:51.440 or another body? Exactly who brokered rihanna Is this year 0:14:51.520 --> 0:14:55.200 is halftime performer? I don't know. Doug might no, but 0:14:55.280 --> 0:14:59.120 I think that's an NFL. Okay, it's an NFL. NFL decision. 0:14:59.200 --> 0:15:01.960 Damian Daire are the ones that picked the talent, you 0:15:02.000 --> 0:15:04.560 know for the show, but they would use a company 0:15:04.640 --> 0:15:08.880 like Light Nation typically to access that talent. Understood, understood 0:15:08.880 --> 0:15:10.840 and look I mean, you know, I guess the other 0:15:10.880 --> 0:15:12.520 thing I'd have for you. I mean, I mean, Doug going. 0:15:12.600 --> 0:15:15.520 You know, you're obviously you know the Super Bowl. You know, 0:15:15.600 --> 0:15:17.400 there's been all this talk. I believe State Farm is 0:15:17.440 --> 0:15:19.840 eighty eight luxury boxes. I think you've had to build 0:15:19.840 --> 0:15:22.080 a lot more for the event, you know, I mean, 0:15:22.480 --> 0:15:24.920 as Scarlett wive test, I'm quite wealthy, right, I mean, 0:15:24.920 --> 0:15:27.080 I'm not private jet wealthy. But you know, I'm just 0:15:27.160 --> 0:15:29.240 now emailing with my ticket broker and she quoted me 0:15:29.280 --> 0:15:32.000 one club level suite, eighteen tickets to v I P 0:15:32.000 --> 0:15:35.480 parking passes for a million fifty. I mean, you know 0:15:36.640 --> 0:15:39.160 it's chump change, right. I mean, so, so here's the 0:15:39.240 --> 0:15:42.800 question I have. You know, compare that to I don't know, 0:15:43.120 --> 0:15:46.720 Taylor Swift will be performing in March or Metallica in September, 0:15:46.800 --> 0:15:48.480 you know, for a suite there. I mean, is this 0:15:48.640 --> 0:15:52.560 just astronomical a million fifty or do we even scratch 0:15:52.640 --> 0:15:56.040 the surface with other other artists like Taylor Swift. Well, 0:15:56.480 --> 0:15:59.360 it's exponentially higher than what you would see for a concert, 0:15:59.400 --> 0:16:03.320 but space on market demand. Uh. And what's happened over 0:16:03.360 --> 0:16:06.640 the last twenty five years is the Super Bowl has 0:16:06.680 --> 0:16:08.920 become the largest event on the planet, and it is 0:16:09.000 --> 0:16:14.960 a major corporate event. UH tickets are you know, averaging 0:16:15.800 --> 0:16:18.080 five hundred and nine thousand dollars. You know, the lowest 0:16:18.120 --> 0:16:21.360 price ticket face value is probably in the upper deck. 0:16:22.240 --> 0:16:26.200 So it's largely a corporate event. UH. The NFL understands that. 0:16:26.280 --> 0:16:29.880 I mean, some of the participating team. UH fans will 0:16:29.920 --> 0:16:33.840 have a chance to buy tickets through their respective organizations, 0:16:33.880 --> 0:16:37.080 but UM, it's based on market demand, and I mean, 0:16:37.120 --> 0:16:38.840 I think you could probably get it for nine hundred 0:16:38.880 --> 0:16:48.240 thousand on Saturday. Keep strolling through there. But Tip gave 0:16:48.320 --> 0:16:52.680 you let me just jump in here. You've been at 0:16:53.080 --> 0:16:56.080 a s M for twenty seven years, and uh Ron 0:16:56.080 --> 0:16:58.680 mentioned how the company has hosted eleven Super Bowls. You 0:16:58.800 --> 0:17:01.440 are on top for the next, uh for this one 0:17:01.480 --> 0:17:04.160 and the two after that, so that's another three. So 0:17:04.200 --> 0:17:07.080 that's a lot of experience in doing this, UM, hosting 0:17:07.119 --> 0:17:09.679 this big game. Can you talk a little bit about 0:17:09.720 --> 0:17:15.400 how we know the game has grown in size and importance, UM, 0:17:15.640 --> 0:17:19.520 in cost and in revenue generated. How have fan expectations 0:17:19.640 --> 0:17:22.480 changed throughout the years from what used to just be 0:17:22.560 --> 0:17:26.720 a really important game for the fans of two teams 0:17:27.160 --> 0:17:30.320 to an all encompassing entertainment experience to now what's become 0:17:30.520 --> 0:17:32.680 as a George Pine of bruin Sports Capital was helping 0:17:32.680 --> 0:17:35.080 me a week long trade show for people who are 0:17:35.119 --> 0:17:38.480 in the industry. Well, it is, it is. I actually 0:17:38.600 --> 0:17:41.359 characterize it as an NFL convention. It's like an end 0:17:41.400 --> 0:17:46.600 of the year celebration of football, week long celebration. And 0:17:46.720 --> 0:17:49.080 what has happened in the last thirty years I've seen 0:17:49.119 --> 0:17:52.320 this actually since the last super Bowl that was hosted 0:17:52.320 --> 0:17:57.119 in Phoenix in nine this exponential growth and what the 0:17:57.160 --> 0:18:00.240 super Bowl can mean for your community. There are so 0:18:00.320 --> 0:18:04.159 many events that take place in and around the city 0:18:04.200 --> 0:18:08.480 the destination. Uh there are probably thirty five or forty 0:18:08.600 --> 0:18:13.359 sanctioned events this week that will will take place um 0:18:13.400 --> 0:18:16.560 in the Phoenix area, not just at the game. Jim Steig, 0:18:16.600 --> 0:18:20.840 who was the former executive vice president for UH the NFL, 0:18:20.840 --> 0:18:22.639 who ran Super Bowl for many years, used to call 0:18:22.720 --> 0:18:25.399 it at four hour excuse for four day party. And 0:18:25.440 --> 0:18:27.920 I think that's true. The super Bowl is a four 0:18:27.920 --> 0:18:31.920 hour game, but uh, it's a four to five day event. Yeah. 0:18:31.960 --> 0:18:35.640 I think that the key point is the outside outside 0:18:35.680 --> 0:18:41.760 the game hospitality. I mean there's if you go around there. 0:18:41.800 --> 0:18:44.159 We've seen some drone footage. I mean, it's tense city 0:18:44.680 --> 0:18:50.639 of very high end hospitality, multiple levels of entertainment and 0:18:50.640 --> 0:18:53.879 and and nightly events and daily events. And so I 0:18:53.920 --> 0:18:57.320 think Doug's right at it's an NFL convention and in 0:18:57.440 --> 0:19:01.280 all of all of the ancillary business is associated with that. 0:19:01.800 --> 0:19:04.920 UM tend to tend to come out here and and 0:19:05.359 --> 0:19:08.639 entertain during those times. So it's it's not the game, 0:19:08.680 --> 0:19:11.119 it's it's it's everything, but the game that's changed. Well, Ron, 0:19:11.160 --> 0:19:12.640 I wonder if you could expand on that. I mean, 0:19:12.640 --> 0:19:15.119 we know a s M, you know, was instrumental in 0:19:15.160 --> 0:19:18.600 the development of places like l A Live, Mercedes Benzerena 0:19:18.600 --> 0:19:21.320 in Germany. You know, newly constructed venues that come with 0:19:21.440 --> 0:19:24.159 really what you're talking about here and outdoor playground you know, 0:19:24.480 --> 0:19:28.480 you know, theaters, restaurants, museums, hotels, etcetera. You know, talk 0:19:28.560 --> 0:19:31.200 to us about that. Is that really the layout as 0:19:31.320 --> 0:19:33.080 you know many of these new stadiums are built as 0:19:33.080 --> 0:19:35.800 these renovations go on with many of these older stadiums, 0:19:36.040 --> 0:19:38.920 Is that really, you know, the blueprint for success? Yeah? 0:19:38.960 --> 0:19:41.680