1 00:00:00,040 --> 00:00:09,840 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. This is the Business 2 00:00:09,880 --> 00:00:10,440 Speaker 1: of sports. 3 00:00:10,520 --> 00:00:13,960 Speaker 2: Our aim is always to leverage the global appeal of football. 4 00:00:14,120 --> 00:00:18,360 Speaker 3: Having representation in college sports is even more important than crow. 5 00:00:18,560 --> 00:00:21,279 Speaker 4: Ten percent of Americans now claimed sokup to be that 6 00:00:21,400 --> 00:00:22,040 Speaker 4: favorite sport. 7 00:00:22,160 --> 00:00:26,000 Speaker 1: We estimate the US sports audience has three trillion dollars 8 00:00:26,000 --> 00:00:27,080 Speaker 1: in spending power. 9 00:00:27,160 --> 00:00:30,120 Speaker 4: The nature of baseball is it is worldwide. 10 00:00:30,280 --> 00:00:31,000 Speaker 5: It is flooring. 11 00:00:31,160 --> 00:00:34,600 Speaker 6: I'm very happy for the WNBA and how the NBA 12 00:00:34,840 --> 00:00:36,120 Speaker 6: has embraced them. 13 00:00:36,200 --> 00:00:38,440 Speaker 5: Sports books are not going anywhere, and sports betting is 14 00:00:38,479 --> 00:00:39,080 Speaker 5: only growing. 15 00:00:39,159 --> 00:00:41,239 Speaker 3: We have a super team running this league, and this 16 00:00:41,320 --> 00:00:42,600 Speaker 3: league is here and it's here to stay. 17 00:00:42,760 --> 00:00:46,280 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 18 00:00:47,240 --> 00:00:50,600 Speaker 6: This is the Bloomberg Business of Sports, where we explore 19 00:00:50,600 --> 00:00:52,559 Speaker 6: the big money issues in the world of sports. 20 00:00:52,560 --> 00:00:56,840 Speaker 3: I'm Michael Vaughn, I'm Venesco Prodoo Maglione. 21 00:01:00,440 --> 00:01:03,760 Speaker 6: Randa Williams is out covering the NBA Finals this week, 22 00:01:04,000 --> 00:01:06,440 Speaker 6: so he wasn't able to join us in the studio. 23 00:01:06,480 --> 00:01:09,320 Speaker 6: But hey, hey, hey, wait a minute, he was able 24 00:01:09,319 --> 00:01:11,520 Speaker 6: to make some time to join us this week to 25 00:01:11,600 --> 00:01:14,240 Speaker 6: give us a taste of what it has been like 26 00:01:14,640 --> 00:01:17,920 Speaker 6: on the ground. Which is where he is in his 27 00:01:18,120 --> 00:01:22,600 Speaker 6: travels on the road for the NBA Finals. Randa Williams, 28 00:01:22,840 --> 00:01:26,440 Speaker 6: US Sports business senior reporter, Welcome back to the Bloomberg 29 00:01:26,480 --> 00:01:28,119 Speaker 6: Business of Sports as a guest this. 30 00:01:28,160 --> 00:01:31,680 Speaker 4: Time as always, Thank you for having me, mister Brock 31 00:01:31,920 --> 00:01:33,160 Speaker 4: the mic. 32 00:01:33,360 --> 00:01:38,520 Speaker 6: Yeah, I know, man, there's so many questions I want 33 00:01:38,600 --> 00:01:41,479 Speaker 6: to bring up, man with the NBA, so but I'm 34 00:01:41,520 --> 00:01:46,640 Speaker 6: going to start with what this means for the league itself, 35 00:01:46,720 --> 00:01:50,240 Speaker 6: because you know, the NBA, it looks like, you know, 36 00:01:50,240 --> 00:01:53,280 Speaker 6: you got a lot of interest obviously, especially in New York, 37 00:01:53,760 --> 00:01:57,400 Speaker 6: about what's happening when the finals between the Knicks and 38 00:01:57,520 --> 00:01:59,160 Speaker 6: the Spurs. Talk to us about that. 39 00:02:00,440 --> 00:02:02,880 Speaker 4: Let me tell you, the difference and energy between the 40 00:02:02,960 --> 00:02:07,000 Speaker 4: previous two years and this year is huge. The league 41 00:02:07,040 --> 00:02:09,840 Speaker 4: office and the league personnel that I'm regularly around when 42 00:02:09,880 --> 00:02:12,920 Speaker 4: I'm walking around the Spurs Arena or even in the 43 00:02:13,000 --> 00:02:16,280 Speaker 4: day before, their energy is just higher. And I think 44 00:02:16,320 --> 00:02:19,040 Speaker 4: it's because that's hot right now. Whether you look at 45 00:02:19,160 --> 00:02:23,799 Speaker 4: the ratings across multiple rounds of the playoffs, whether it 46 00:02:23,960 --> 00:02:27,400 Speaker 4: be the conference semifinals, the Conference finals, I expect the 47 00:02:27,480 --> 00:02:31,280 Speaker 4: NBA Finals Game one will probably average seventeen million viewers 48 00:02:31,320 --> 00:02:34,680 Speaker 4: or sixteen million viewers. They're doing very, very well. They 49 00:02:34,720 --> 00:02:37,000 Speaker 4: have other issues outside of the playoffs to handle, but 50 00:02:37,080 --> 00:02:39,760 Speaker 4: I think the energy is extremely, extremely high. 51 00:02:40,280 --> 00:02:42,560 Speaker 3: Do you think that, you know, it's interesting that you 52 00:02:42,600 --> 00:02:45,880 Speaker 3: said that the league, you know, officials are even on 53 00:02:45,919 --> 00:02:48,519 Speaker 3: a different energy level. I mean, before we talk a 54 00:02:48,520 --> 00:02:49,880 Speaker 3: little bit more about that, I want you to set 55 00:02:49,880 --> 00:02:51,359 Speaker 3: the tone for us. What was it like in San 56 00:02:51,360 --> 00:02:55,519 Speaker 3: Antonio being on the ground, And I really want to 57 00:02:55,560 --> 00:02:57,400 Speaker 3: know how quiet got in the arena when the next 58 00:02:57,400 --> 00:02:58,600 Speaker 3: one game. 59 00:02:58,440 --> 00:03:00,760 Speaker 5: One, So I'll go back even further. 60 00:03:01,360 --> 00:03:04,880 Speaker 4: In Boston, the traffic was so bad in Boston that 61 00:03:05,040 --> 00:03:07,640 Speaker 4: I got in an uber and I was maybe five 62 00:03:07,680 --> 00:03:11,720 Speaker 4: minutes away and was being lazy and decided that I'd 63 00:03:11,840 --> 00:03:13,280 Speaker 4: take an Uber to the arena and I had to 64 00:03:13,280 --> 00:03:14,120 Speaker 4: get out and walk. 65 00:03:14,000 --> 00:03:15,519 Speaker 5: Twenty five minutes to TD Garden. 66 00:03:16,280 --> 00:03:21,359 Speaker 4: In Oklahoma City, there was an increased fan presence around 67 00:03:21,440 --> 00:03:23,720 Speaker 4: the arena, but because of the fact that the Spurs 68 00:03:23,760 --> 00:03:26,760 Speaker 4: Arena isn't downtown, there was a lot of fans outside, 69 00:03:27,080 --> 00:03:29,680 Speaker 4: but it wasn't as hyped up as I expected it 70 00:03:29,720 --> 00:03:31,520 Speaker 4: to be, and so as the game went on, I 71 00:03:31,560 --> 00:03:35,200 Speaker 4: think that the ghost Spurs go chant was loud, but 72 00:03:35,280 --> 00:03:37,080 Speaker 4: also there was a lot of Knick fans in there, 73 00:03:37,200 --> 00:03:40,680 Speaker 4: and you know, the game went on different runs, but 74 00:03:40,840 --> 00:03:43,120 Speaker 4: by the end of the game, it was not quiet. 75 00:03:43,240 --> 00:03:45,080 Speaker 4: It was go next to go all night long. 76 00:03:46,320 --> 00:03:48,760 Speaker 6: There are so many angles I want to talk to 77 00:03:48,760 --> 00:03:50,920 Speaker 6: you about. Here's one and this is the thing that 78 00:03:51,000 --> 00:03:53,120 Speaker 6: stuck in my head. And we did a story on this. 79 00:03:54,040 --> 00:03:58,360 Speaker 6: New York Knicks fans, if you have a season ticket, 80 00:03:58,680 --> 00:04:00,920 Speaker 6: you can resell it. 81 00:04:01,680 --> 00:04:04,600 Speaker 5: Now go to that game. Yeah, well, go to that game. 82 00:04:04,720 --> 00:04:07,960 Speaker 6: Well, here's the problem. It's like a lot, like you said, 83 00:04:08,000 --> 00:04:10,560 Speaker 6: a lot of people are saying, Okay, I'll resell. I 84 00:04:10,600 --> 00:04:12,680 Speaker 6: want to keep it because this is a once in 85 00:04:12,680 --> 00:04:15,240 Speaker 6: a lifetime thing. But I got to tell you, if 86 00:04:15,280 --> 00:04:18,400 Speaker 6: I got a season ticket and I could sell this 87 00:04:18,400 --> 00:04:21,919 Speaker 6: thing for seventy two thousand dollars, that fifty inch flat 88 00:04:21,960 --> 00:04:24,520 Speaker 6: screen TV is looking mighty fine right now. 89 00:04:24,440 --> 00:04:28,240 Speaker 4: Randall, I'm just saying that if it was me and 90 00:04:28,279 --> 00:04:31,120 Speaker 4: you said seventy two, that's high end. Let's talk twenty 91 00:04:31,160 --> 00:04:35,400 Speaker 4: five twenty that works, maybe thirty or ten or fifteen. Like, 92 00:04:36,960 --> 00:04:40,279 Speaker 4: we haven't seen an NBA Finals game at Madison Square 93 00:04:40,320 --> 00:04:43,280 Speaker 4: Garden in a very very long time. I want to 94 00:04:43,279 --> 00:04:46,600 Speaker 4: say we haven't seen once in this millennium, And with 95 00:04:46,640 --> 00:04:49,680 Speaker 4: that in mind, I think like it's still a legendary venue. 96 00:04:49,880 --> 00:04:52,560 Speaker 4: You think about all the things that have occurred at 97 00:04:52,720 --> 00:04:56,000 Speaker 4: MSG since without the Knicks being in the finals. There 98 00:04:56,000 --> 00:05:00,120 Speaker 4: have been dozens of boxing events, UFC events, concerts, and 99 00:05:00,400 --> 00:05:02,600 Speaker 4: so many other events that have been able to keep 100 00:05:02,960 --> 00:05:08,960 Speaker 4: the exposure and the aura of Madison Square Garden alive. 101 00:05:09,040 --> 00:05:11,840 Speaker 4: But let's be honest here. What keeps Madison Square Garden 102 00:05:11,880 --> 00:05:14,440 Speaker 4: alive is the Knicks, and now that they are at 103 00:05:14,560 --> 00:05:19,920 Speaker 4: the highest point of NBA basketball, there are people who 104 00:05:20,240 --> 00:05:23,800 Speaker 4: either want to sell for an extreme price or keep 105 00:05:23,839 --> 00:05:26,320 Speaker 4: their tickets in experience a once in a lifetime event 106 00:05:26,360 --> 00:05:28,680 Speaker 4: that probably isn't once in a lifetime. 107 00:05:29,440 --> 00:05:31,160 Speaker 3: That probably isn't once in a lifetime. 108 00:05:31,160 --> 00:05:31,520 Speaker 6: Interesting. 109 00:05:31,800 --> 00:05:34,279 Speaker 3: Okay, Well, a lot's been made of ticket prices, obviously 110 00:05:34,360 --> 00:05:37,560 Speaker 3: in New York City over the last couple of months, 111 00:05:37,600 --> 00:05:41,360 Speaker 3: with the you know, Knicks tickets and obviously also World 112 00:05:41,400 --> 00:05:43,840 Speaker 3: Cup tickets in New York are extremely expensive. Is this 113 00:05:44,000 --> 00:05:46,520 Speaker 3: just a New York thing or why do you think 114 00:05:46,560 --> 00:05:50,919 Speaker 3: you know, people are so surprised about it. I'm not personally, 115 00:05:51,080 --> 00:05:54,240 Speaker 3: I'm not surprised that these ticket prices are so high. 116 00:05:54,440 --> 00:05:57,760 Speaker 4: No, I'm not surprised either, but it definitely has to do. 117 00:05:58,040 --> 00:06:00,800 Speaker 4: It would have been expensive. Nonetheless, because it's been so 118 00:06:01,000 --> 00:06:03,400 Speaker 4: long since the Knicks have been to the finals. It 119 00:06:03,480 --> 00:06:06,280 Speaker 4: absolutely helps that Victor one Banyama and the Spurs are 120 00:06:06,279 --> 00:06:08,400 Speaker 4: in it. Like one B is seven to four. You 121 00:06:08,400 --> 00:06:11,159 Speaker 4: think about the attractions of the next generation of players, like, 122 00:06:11,200 --> 00:06:14,039 Speaker 4: who do you really want to go see that is, 123 00:06:14,200 --> 00:06:17,359 Speaker 4: let's say twenty eight and younger. I would say Anthony Edwards, 124 00:06:17,400 --> 00:06:19,760 Speaker 4: you would say Victor one Banyama. Then you might throw 125 00:06:19,760 --> 00:06:22,640 Speaker 4: a couple more in there, but those two names, Anthony 126 00:06:22,720 --> 00:06:24,520 Speaker 4: Edwards and Victor one Binyama are at the top. 127 00:06:24,400 --> 00:06:24,880 Speaker 5: Of the list. 128 00:06:25,200 --> 00:06:27,080 Speaker 4: And so if you get to see Victor one Banyama 129 00:06:27,120 --> 00:06:30,039 Speaker 4: at twenty two years old at Madison Square Garden against 130 00:06:30,080 --> 00:06:32,680 Speaker 4: a Knicks team that is hotter than any Knicks team 131 00:06:32,720 --> 00:06:35,880 Speaker 4: that's ever been, of course, tickets are going to go 132 00:06:36,320 --> 00:06:39,400 Speaker 4: for five, six, seven, eight, nine, and ten thousand dollars 133 00:06:39,480 --> 00:06:41,120 Speaker 4: for than those leads. 134 00:06:41,320 --> 00:06:43,040 Speaker 3: Well, it's an interesting thing that you said that. So 135 00:06:43,080 --> 00:06:46,279 Speaker 3: do you think this Finals is the most ideal that 136 00:06:46,560 --> 00:06:49,200 Speaker 3: the NBA could have imagined for this year? 137 00:06:51,000 --> 00:06:55,920 Speaker 4: I think if forward looking, yes, that you couldn't imagine 138 00:06:55,960 --> 00:06:58,680 Speaker 4: the NBA Finals in terms of a stardom of a 139 00:06:58,720 --> 00:07:01,680 Speaker 4: star who's young, who can you know has so many 140 00:07:01,760 --> 00:07:05,560 Speaker 4: years ahead of him. Now, obviously, every I think sporting 141 00:07:05,640 --> 00:07:08,320 Speaker 4: organization in the world dreams of in New York Los 142 00:07:08,360 --> 00:07:11,640 Speaker 4: Angeles championship game. We got one in the MLB a 143 00:07:11,640 --> 00:07:14,440 Speaker 4: couple of years ago. But everyone, so long as the 144 00:07:14,480 --> 00:07:18,000 Speaker 4: stars are there. If it's Lebron and Luca versus Jalen 145 00:07:18,040 --> 00:07:21,480 Speaker 4: Brunson and Kat and Lebron has the potential to retire, 146 00:07:21,800 --> 00:07:24,640 Speaker 4: that game might have forty million watchers in his last game, 147 00:07:24,680 --> 00:07:26,760 Speaker 4: whether that be a game four or five, six or seven. 148 00:07:26,840 --> 00:07:30,160 Speaker 4: So I think ultimately, if Lebron's last game was in 149 00:07:30,200 --> 00:07:32,880 Speaker 4: the NBA Finals, similar to when MG's last game before 150 00:07:32,920 --> 00:07:37,360 Speaker 4: the Wizards stunt was in Game six in ninety eight, 151 00:07:37,960 --> 00:07:40,400 Speaker 4: it would have a huge effect too. But this is 152 00:07:40,440 --> 00:07:45,080 Speaker 4: the best case scenario for the forward looking business plan. 153 00:07:45,600 --> 00:07:49,960 Speaker 6: We're talking with Randa Williams, US Sports Business senior reporter. Ordinarily, 154 00:07:50,000 --> 00:07:52,920 Speaker 6: of course Randall would be a regular here on the show, 155 00:07:52,960 --> 00:07:55,760 Speaker 6: but he went all elite because now he is a 156 00:07:55,800 --> 00:07:59,640 Speaker 6: guest because he's covering the NBA Finals. Again, there are 157 00:07:59,640 --> 00:08:02,240 Speaker 6: so many angles to this. I want to talk about 158 00:08:02,280 --> 00:08:06,000 Speaker 6: the Knicks. They're auctioning two celebrity row seats for Monday 159 00:08:06,080 --> 00:08:09,880 Speaker 6: nights Game three at the Garden when the NBA Finals 160 00:08:09,920 --> 00:08:12,520 Speaker 6: returned to New York, and the seats are right off 161 00:08:12,600 --> 00:08:16,720 Speaker 6: center court. We're talking like celebrities like Tracy Morgan and 162 00:08:16,760 --> 00:08:21,480 Speaker 6: Timothy Shallamay who usually right alongside there, and you of course, Man, 163 00:08:21,480 --> 00:08:23,080 Speaker 6: I might see you in those seats too. 164 00:08:23,240 --> 00:08:26,160 Speaker 4: Well, justin believe I will be in the third level 165 00:08:26,760 --> 00:08:28,480 Speaker 4: on being celebrity bro. 166 00:08:29,760 --> 00:08:32,800 Speaker 6: I mean, you know, this is so much the hype 167 00:08:32,920 --> 00:08:36,200 Speaker 6: is going. It's like, I really that is a great 168 00:08:36,240 --> 00:08:38,120 Speaker 6: idea for the Knicks to do this auction. 169 00:08:39,120 --> 00:08:42,560 Speaker 4: Let me say that I do believe that Game three, 170 00:08:43,320 --> 00:08:47,720 Speaker 4: Game four, and really potentially Game six will be probably 171 00:08:47,760 --> 00:08:51,400 Speaker 4: the most star studed games in NBA history. Like you're 172 00:08:51,400 --> 00:08:53,400 Speaker 4: talking about, the President is going to be there for 173 00:08:53,480 --> 00:08:56,200 Speaker 4: better or for worse, because he's going to make everyone's 174 00:08:57,080 --> 00:09:01,080 Speaker 4: experience getting in and out of the game hellish. It's 175 00:09:01,120 --> 00:09:03,440 Speaker 4: just what happens when the federal official comes to the 176 00:09:03,480 --> 00:09:06,880 Speaker 4: game and they have the Secret Service around. But beyond 177 00:09:07,080 --> 00:09:10,400 Speaker 4: President Trump, who knows Hukob what if jay Z and 178 00:09:10,440 --> 00:09:13,000 Speaker 4: Beyonce show up. What if Taylor Swift and Travis Kelsey 179 00:09:13,000 --> 00:09:15,120 Speaker 4: shop like you have no idea. Yes, there will be 180 00:09:15,200 --> 00:09:18,360 Speaker 4: Nick's loyalist fans. You just named a couple Ben Stiller, 181 00:09:18,480 --> 00:09:22,680 Speaker 4: Tracy Morgan, Timothy Shalomey. But beyond that, we don't know 182 00:09:22,720 --> 00:09:24,800 Speaker 4: who's going to be there, and it's going to be 183 00:09:25,679 --> 00:09:28,640 Speaker 4: I think it's going to look like the Solar System 184 00:09:28,960 --> 00:09:31,000 Speaker 4: in terms of the start and that's going to be there. 185 00:09:31,320 --> 00:09:35,199 Speaker 3: I love that analogy. So in your conversations with people, Renal, 186 00:09:35,280 --> 00:09:38,760 Speaker 3: have you talked to anyone about the security around the garden, 187 00:09:38,840 --> 00:09:41,760 Speaker 3: especially if President Trump's going to be there. What do 188 00:09:41,840 --> 00:09:43,800 Speaker 3: they have to do in order to get the garden 189 00:09:43,880 --> 00:09:45,440 Speaker 3: ready to host the finals. 190 00:09:45,720 --> 00:09:48,320 Speaker 4: You're going to need to pull every single New York 191 00:09:48,480 --> 00:09:50,880 Speaker 4: State Police officer down to the garden in order for 192 00:09:50,920 --> 00:09:53,800 Speaker 4: things to be stable. And I've been to several events 193 00:09:53,800 --> 00:09:56,559 Speaker 4: that President Trump has been to, including multiple UFC fights 194 00:09:56,559 --> 00:09:59,480 Speaker 4: in the US Open final as well, and what happens 195 00:09:59,559 --> 00:10:01,640 Speaker 4: is that when he comes in at the UFC fights, 196 00:10:01,640 --> 00:10:04,440 Speaker 4: he normally comes in for the main card and so 197 00:10:04,559 --> 00:10:07,800 Speaker 4: that's well after a good portion of fans have entered 198 00:10:07,800 --> 00:10:11,200 Speaker 4: the arena, specifically at MSG, but for the US open. 199 00:10:11,280 --> 00:10:14,840 Speaker 4: You had fans lining up outside of the venue. So 200 00:10:14,880 --> 00:10:16,880 Speaker 4: what does that mean for media? Do they tell people 201 00:10:16,920 --> 00:10:19,439 Speaker 4: you have to wait? What time does President Trump arrot? 202 00:10:19,960 --> 00:10:23,720 Speaker 4: I don't know how much information fans and media and 203 00:10:23,760 --> 00:10:26,440 Speaker 4: the NBA, I like, will receive in terms of his arrival. 204 00:10:26,720 --> 00:10:29,640 Speaker 4: Just from a security perspective, if everyone knows what time 205 00:10:30,120 --> 00:10:33,120 Speaker 4: he arrives is does that make the arena secure? I 206 00:10:33,160 --> 00:10:37,040 Speaker 4: don't know, but it's a legitimate question that that. I 207 00:10:37,080 --> 00:10:38,720 Speaker 4: think everyone's going to wonder. 208 00:10:38,760 --> 00:10:42,680 Speaker 3: Come under Randall, you had said that, you know, Adam 209 00:10:42,720 --> 00:10:45,720 Speaker 3: Silver has all these other things to figure out, and 210 00:10:45,840 --> 00:10:48,480 Speaker 3: you know, outside of the finals, there are other concerns 211 00:10:48,480 --> 00:10:51,720 Speaker 3: for the NBA. What has he had to you know, 212 00:10:51,760 --> 00:10:55,360 Speaker 3: address in the postgame, you know, press conferences and what else? 213 00:10:55,400 --> 00:10:57,720 Speaker 3: What else are they addressing other than you know? 214 00:10:58,040 --> 00:10:58,360 Speaker 5: Sure? 215 00:10:58,920 --> 00:11:01,840 Speaker 4: Sure, So you think at the tanking dilemma that has happened. 216 00:11:01,880 --> 00:11:04,320 Speaker 4: The NBA has never had more teams tanking than they 217 00:11:04,360 --> 00:11:06,800 Speaker 4: did this year, and that's in large part because this 218 00:11:06,960 --> 00:11:10,400 Speaker 4: rookie class for the upcoming NBA Draft is probably one 219 00:11:10,440 --> 00:11:14,280 Speaker 4: of the best in the last two decades on paper 220 00:11:14,320 --> 00:11:17,240 Speaker 4: at least, and so teams are looking at that and 221 00:11:17,280 --> 00:11:19,200 Speaker 4: saying it's better for us to lose. And also you 222 00:11:19,320 --> 00:11:21,400 Speaker 4: up there and saying I agree with it this, so 223 00:11:21,400 --> 00:11:24,360 Speaker 4: we should chalk this whole season and lose every game. 224 00:11:24,920 --> 00:11:27,520 Speaker 4: But also that doesn't create a good product when you're 225 00:11:27,559 --> 00:11:29,880 Speaker 4: watching it. And you have to remember these broadcast agreements 226 00:11:29,880 --> 00:11:32,320 Speaker 4: are worth seventy six billion dollars over the course of 227 00:11:32,320 --> 00:11:34,720 Speaker 4: eleven years, and that's how these teams make their money. 228 00:11:34,720 --> 00:11:37,160 Speaker 4: So you can't put out a product where the best. 229 00:11:36,920 --> 00:11:39,120 Speaker 5: Players aren't playing every night. That's one. 230 00:11:40,160 --> 00:11:44,440 Speaker 4: Number two is the ongoing investigation into Los Angeles Clippers 231 00:11:44,440 --> 00:11:49,719 Speaker 4: owner allegedly circumventing the cap system. That investigation has been 232 00:11:49,840 --> 00:11:53,760 Speaker 4: going on for almost a year now. Adam Silver said 233 00:11:53,800 --> 00:11:56,080 Speaker 4: he expects it to close soon. And so those two 234 00:11:56,280 --> 00:12:00,319 Speaker 4: main things are the biggest dilemmas for the NBA. 235 00:12:00,360 --> 00:12:01,000 Speaker 5: But they're so. 236 00:12:01,080 --> 00:12:03,560 Speaker 4: High right now that I think we won't touch on 237 00:12:03,600 --> 00:12:06,240 Speaker 4: them again and sell the NBA draft or maybe even 238 00:12:06,280 --> 00:12:06,960 Speaker 4: free agency. 239 00:12:07,400 --> 00:12:10,600 Speaker 3: Our thanks to our friend Ranald Williams, US sports business 240 00:12:10,600 --> 00:12:12,840 Speaker 3: senior reporter, he should be back on this side of 241 00:12:12,840 --> 00:12:13,640 Speaker 3: the mic next week. 242 00:12:13,960 --> 00:12:16,360 Speaker 6: That is straight ahead all the Bloomberg business of sports. 243 00:12:16,360 --> 00:12:20,320 Speaker 6: I'm Michael Varn with Vanessa Perdomo Magleone and Randa Williams. 244 00:12:20,520 --> 00:12:23,520 Speaker 6: You are listening to the Bloomberg Business of Sports Bloomberg 245 00:12:23,640 --> 00:12:24,920 Speaker 6: Radio around the world. 246 00:12:27,520 --> 00:12:31,400 Speaker 2: Imagine home, the smell of coffee, the sound of a lawnmower, 247 00:12:31,720 --> 00:12:34,720 Speaker 2: the sun's warmth on your face, Free to be yourself, 248 00:12:35,440 --> 00:12:37,240 Speaker 2: surrounded by love that helps you grow. 249 00:12:38,320 --> 00:12:39,199 Speaker 5: This is a. 250 00:12:39,160 --> 00:12:42,800 Speaker 2: Place to call home. That's an American dream we all deserve. 251 00:12:44,160 --> 00:12:47,040 Speaker 2: But in fifty percent of US states you could legally 252 00:12:47,080 --> 00:12:49,160 Speaker 2: be denied housing if you are LGBTQ. 253 00:12:49,320 --> 00:12:49,640 Speaker 6: Plus. 254 00:12:50,240 --> 00:12:52,959 Speaker 2: Get the facts and hear real stories at Love Has 255 00:12:53,040 --> 00:12:55,360 Speaker 2: No Labels dot Com, brought to you by Love Has 256 00:12:55,360 --> 00:12:56,680 Speaker 2: No Labels and the Ad Council. 257 00:12:57,840 --> 00:13:01,840 Speaker 1: This is Bloomberg Business all right from Bloomberg Radio. 258 00:13:03,280 --> 00:13:05,960 Speaker 6: This is the Bloomberg Business of Sports. We explore the 259 00:13:06,040 --> 00:13:08,560 Speaker 6: big money issues in the world of sportside. 260 00:13:08,080 --> 00:13:10,080 Speaker 3: Michael barn I'm Vanessa Prodmo Maglion. 261 00:13:10,559 --> 00:13:13,520 Speaker 6: Randon Williams is out this week covering the NBA Finals 262 00:13:13,600 --> 00:13:16,480 Speaker 6: on the ground and speaking of the NBA Finals, we 263 00:13:16,520 --> 00:13:20,240 Speaker 6: are sticking with that because there is nothing more exciting 264 00:13:20,320 --> 00:13:21,720 Speaker 6: in sports right now. 265 00:13:22,200 --> 00:13:24,120 Speaker 3: New York has become the sports city of the summer, 266 00:13:24,200 --> 00:13:27,079 Speaker 3: with the finals and World Cups set to potentially overlap. 267 00:13:27,360 --> 00:13:29,480 Speaker 3: The eyes of the industry are on the Big Apple. 268 00:13:30,000 --> 00:13:32,800 Speaker 6: Here to talk to us about the impact of the 269 00:13:32,880 --> 00:13:36,160 Speaker 6: Knicks and what they're having on this city of New 270 00:13:36,320 --> 00:13:39,680 Speaker 6: York is Joe Pirello. He is the founder and CEO 271 00:13:39,840 --> 00:13:43,080 Speaker 6: of PROPS, and he was the first Chief Marketing Officer 272 00:13:43,320 --> 00:13:47,160 Speaker 6: of New York City. Hello, sir, welcome to the Bloomberg 273 00:13:47,200 --> 00:13:48,199 Speaker 6: Business of Sports. 274 00:13:48,600 --> 00:13:50,360 Speaker 5: Thank you guys for having me. It's good to be here. 275 00:13:50,360 --> 00:13:51,440 Speaker 5: It's good to be in the building. 276 00:13:51,840 --> 00:13:55,080 Speaker 6: You are the founder and CEO of PROPS. Tell us 277 00:13:55,120 --> 00:13:55,800 Speaker 6: about that, sir. 278 00:13:56,200 --> 00:14:01,880 Speaker 5: PROPS is a performance based creator marketing place. So essentially 279 00:14:02,280 --> 00:14:06,199 Speaker 5: we have transformed what you might think of as influencer 280 00:14:06,240 --> 00:14:11,600 Speaker 5: marketing into what marketers call a performance channel. And what 281 00:14:11,640 --> 00:14:17,079 Speaker 5: that means is, essentially, you can measure the results of 282 00:14:17,160 --> 00:14:22,000 Speaker 5: creator marketing in a way that a CFO would care 283 00:14:22,080 --> 00:14:25,680 Speaker 5: about the results. And that's essentially the essence of our 284 00:14:25,760 --> 00:14:31,080 Speaker 5: company is we conceived influencer marketing so that a CFO 285 00:14:32,040 --> 00:14:33,480 Speaker 5: would embrace it. 286 00:14:33,840 --> 00:14:37,280 Speaker 3: Joe, you come from, you know, really traditional lanes. Obviously 287 00:14:37,360 --> 00:14:41,080 Speaker 3: you worked with the Yankees, and you're the first chief 288 00:14:41,080 --> 00:14:43,840 Speaker 3: marketing officer of New York City. How does all of 289 00:14:43,920 --> 00:14:48,479 Speaker 3: that go into the creator marketing and how you understood 290 00:14:48,600 --> 00:14:52,360 Speaker 3: you know, social media and trying to like you said, 291 00:14:52,520 --> 00:14:56,440 Speaker 3: how do CFOs now understand the way marketing has changed? 292 00:14:56,600 --> 00:14:59,360 Speaker 5: Yeah, that's a great question. So you know, I started 293 00:14:59,440 --> 00:15:07,960 Speaker 5: understanding the advertising business, specifically direct response marketing or direct 294 00:15:08,000 --> 00:15:10,920 Speaker 5: marketing right, which used to live in the world of 295 00:15:11,360 --> 00:15:16,680 Speaker 5: boring direct mail okay, and late night television where you 296 00:15:16,720 --> 00:15:21,360 Speaker 5: could measure the results where TV ads sort of broadly speaking, 297 00:15:21,840 --> 00:15:25,040 Speaker 5: you can measure the results over a year, say, right 298 00:15:25,080 --> 00:15:28,720 Speaker 5: or six months. And what social media marketing is today, 299 00:15:29,080 --> 00:15:35,120 Speaker 5: it's direct response marketing on steroids because of how sophisticated 300 00:15:36,160 --> 00:15:40,360 Speaker 5: the platforms like Meta and Google and TikTok are and 301 00:15:40,520 --> 00:15:44,040 Speaker 5: reaching people and understanding who they are. That's one thing. 302 00:15:44,080 --> 00:15:46,560 Speaker 5: The second thing is you can you know, we're all 303 00:15:46,600 --> 00:15:53,000 Speaker 5: on digital devices. There are recording technology in every single 304 00:15:53,400 --> 00:15:56,600 Speaker 5: digital device, you know, whether you like it or not, 305 00:15:57,360 --> 00:16:02,080 Speaker 5: and so we can track people behavior, and based on 306 00:16:02,240 --> 00:16:05,160 Speaker 5: tracking people's behavior and who they are and who they're 307 00:16:05,200 --> 00:16:11,320 Speaker 5: connected to, direct response marketing is an extraordinarily powerful way 308 00:16:11,360 --> 00:16:13,720 Speaker 5: to reach people. So you asked how I got started 309 00:16:13,720 --> 00:16:17,240 Speaker 5: in this. I understood advertising, I understood direct response marketing, 310 00:16:17,600 --> 00:16:20,920 Speaker 5: and now I'm applying that to the world of creators, 311 00:16:21,760 --> 00:16:26,320 Speaker 5: and the difference in the world of creators is that 312 00:16:27,440 --> 00:16:32,440 Speaker 5: people are responding to other people rather than responding to 313 00:16:33,040 --> 00:16:38,880 Speaker 5: an ad. And that's the essential difference between advertising and 314 00:16:38,960 --> 00:16:44,520 Speaker 5: creator marketing. And it's based on essentially three principles. I 315 00:16:44,560 --> 00:16:48,680 Speaker 5: would say. The first is that people trust people more 316 00:16:48,720 --> 00:16:52,200 Speaker 5: than they trust brands or institutions, right, and this has 317 00:16:52,240 --> 00:16:57,880 Speaker 5: been happening since nineteen sixty seven about Pew Research has 318 00:16:57,920 --> 00:17:01,600 Speaker 5: a really great study on the decline of trust in 319 00:17:01,680 --> 00:17:04,520 Speaker 5: brands and institutions. So people trust people more than they 320 00:17:04,520 --> 00:17:09,560 Speaker 5: trust brands. The second is that people respond to stories 321 00:17:10,600 --> 00:17:13,720 Speaker 5: more than their respond to ads, which is why you're 322 00:17:13,720 --> 00:17:18,560 Speaker 5: in business, right because you're telling stories here, thank you. 323 00:17:19,600 --> 00:17:22,639 Speaker 5: And the third thing is that this is where the 324 00:17:22,720 --> 00:17:25,760 Speaker 5: performance marketing comes in, is that the story is only 325 00:17:25,800 --> 00:17:28,159 Speaker 5: the beginning. Like, if you want to really drive a 326 00:17:28,240 --> 00:17:33,320 Speaker 5: business result, you've got to create a system that goes 327 00:17:33,400 --> 00:17:36,080 Speaker 5: all the way through what we call the funnel, which 328 00:17:36,119 --> 00:17:39,159 Speaker 5: is awareness, consideration, you know, trial and repeat. So the 329 00:17:39,160 --> 00:17:42,920 Speaker 5: story is only the beginning of that process. So when 330 00:17:42,960 --> 00:17:49,200 Speaker 5: you combine the exceptional targeting and accountability of paid media, right, 331 00:17:49,240 --> 00:17:55,800 Speaker 5: so paid social media with the humanity of creators. Right. 332 00:17:55,880 --> 00:18:01,639 Speaker 5: You essentially transform the advertising business into something that people 333 00:18:01,680 --> 00:18:06,320 Speaker 5: actually want to engage with, right, and it performs exceptionally well. 334 00:18:06,440 --> 00:18:09,000 Speaker 5: And that's what that's what we've done. In my background 335 00:18:09,000 --> 00:18:13,239 Speaker 5: in direct marketing and advertising and sports, because people care 336 00:18:13,320 --> 00:18:18,480 Speaker 5: about sports more than they care about brands. All sort 337 00:18:18,520 --> 00:18:20,639 Speaker 5: of lended itself to to developing this. 338 00:18:21,200 --> 00:18:24,840 Speaker 6: We're talking with Joe Pirello, founder and CEO of Prompts, 339 00:18:25,359 --> 00:18:29,119 Speaker 6: and you served as the vice president of business development 340 00:18:29,240 --> 00:18:32,600 Speaker 6: for the New York Yankees, and you worked directly under 341 00:18:32,800 --> 00:18:34,000 Speaker 6: George Steinbrenner. 342 00:18:34,119 --> 00:18:38,520 Speaker 5: I did what was that like? It was an exceptional experience. 343 00:18:39,000 --> 00:18:43,160 Speaker 5: I learned so much about I would I would condense 344 00:18:43,200 --> 00:18:48,840 Speaker 5: it down to the boss knows how to win, and 345 00:18:48,920 --> 00:18:51,879 Speaker 5: he that's really all he was cared about, you know, 346 00:18:52,040 --> 00:18:55,800 Speaker 5: That's all he cared about. He he cared, of course 347 00:18:55,880 --> 00:18:58,919 Speaker 5: about his image and his reputation in New York City, 348 00:18:59,440 --> 00:19:03,640 Speaker 5: but the number one thing that he cared about was winning. 349 00:19:04,359 --> 00:19:08,120 Speaker 5: And if he wasn't winning, he was not happy, and 350 00:19:08,960 --> 00:19:14,520 Speaker 5: nor were anyone around. Right. So if you were around 351 00:19:14,600 --> 00:19:16,840 Speaker 5: him and you were not and he was not winning, 352 00:19:16,920 --> 00:19:19,760 Speaker 5: he was unhappy. And if you were around him and 353 00:19:19,760 --> 00:19:23,359 Speaker 5: the Yankees were winning, you know, he was less unhappy, 354 00:19:23,960 --> 00:19:28,720 Speaker 5: I would say. And then you know, I was with 355 00:19:28,800 --> 00:19:33,159 Speaker 5: him when we won the World Series in Atlanta in 356 00:19:33,280 --> 00:19:37,840 Speaker 5: nineteen ninety seven, and I've never seen a man happier. 357 00:19:39,440 --> 00:19:43,360 Speaker 5: And it was such a joy to be around the boss, 358 00:19:43,800 --> 00:19:47,960 Speaker 5: who you know, was tough on everyone, right, I would say, 359 00:19:47,960 --> 00:19:50,560 Speaker 5: he was tough but fair. George was tough but fair. 360 00:19:51,200 --> 00:19:53,800 Speaker 5: And so you worked under a guy who expected a 361 00:19:53,800 --> 00:19:59,440 Speaker 5: lot from you, right, held you to accounts, had your 362 00:19:59,520 --> 00:20:04,040 Speaker 5: back if you took a big swing and missed, and 363 00:20:04,160 --> 00:20:08,240 Speaker 5: would really get on you if you did something stupid, right, 364 00:20:08,280 --> 00:20:10,200 Speaker 5: so he would be all over you in the details. 365 00:20:10,200 --> 00:20:13,640 Speaker 5: But if you really tried hard and it didn't work out, 366 00:20:13,840 --> 00:20:16,919 Speaker 5: he had your back if you were protecting the team. 367 00:20:17,280 --> 00:20:21,560 Speaker 5: So seeing him in nineteen ninety seven, after winning and 368 00:20:21,600 --> 00:20:24,760 Speaker 5: beating the Braves in Atlanta, which was so much fun, 369 00:20:27,480 --> 00:20:30,840 Speaker 5: was a highlight of my career. You know, you know, 370 00:20:30,920 --> 00:20:34,280 Speaker 5: we drank scotch together. That was so much fun. 371 00:20:34,440 --> 00:20:36,920 Speaker 3: That's amazing, What a story. So I want to talk 372 00:20:36,920 --> 00:20:39,320 Speaker 3: a little bit more about that, obviously. I mean, it's 373 00:20:39,320 --> 00:20:43,120 Speaker 3: been a while since the Yankees have been able to win. 374 00:20:44,640 --> 00:20:47,679 Speaker 3: Why is that culture not persistent? Do you think the 375 00:20:47,720 --> 00:20:50,200 Speaker 3: winning culture or has it and we just haven't seen 376 00:20:50,240 --> 00:20:50,679 Speaker 3: the winner. 377 00:20:50,880 --> 00:20:55,920 Speaker 5: You know, well, I wouldn't call myself a baseball operations expert. 378 00:20:56,960 --> 00:21:00,920 Speaker 5: I consider myself talented in the world of sports business. 379 00:21:02,160 --> 00:21:06,960 Speaker 5: I couldn't be the general manager of a team. I 380 00:21:07,000 --> 00:21:12,280 Speaker 5: could tell you that the organization has the same desire 381 00:21:13,240 --> 00:21:19,280 Speaker 5: to win that existed in past generations. Certainly the fans 382 00:21:19,320 --> 00:21:24,399 Speaker 5: have the same expectations. I think the competitive nature of 383 00:21:24,560 --> 00:21:30,320 Speaker 5: the league has changed to some degree. I think there 384 00:21:30,359 --> 00:21:34,920 Speaker 5: are smarter people that are now have you know now 385 00:21:35,000 --> 00:21:40,639 Speaker 5: running baseball operations, And the good news is baseball is 386 00:21:40,680 --> 00:21:46,200 Speaker 5: still very competitive, although I think, you know, unless there 387 00:21:46,359 --> 00:21:49,320 Speaker 5: is some sort of salary cap, you know, the big 388 00:21:49,359 --> 00:21:53,840 Speaker 5: market teams are probably still going to dominate and there'll 389 00:21:53,840 --> 00:21:58,560 Speaker 5: be some outliers. But I know, you know, the players 390 00:21:58,680 --> 00:22:01,840 Speaker 5: Union is probably not interested in this. But I think 391 00:22:01,960 --> 00:22:06,560 Speaker 5: for the long haul, some sort of salary guideline is 392 00:22:06,640 --> 00:22:10,560 Speaker 5: the right thing. To create parody like the NFL has 393 00:22:10,640 --> 00:22:12,200 Speaker 5: done so successfully. 394 00:22:12,680 --> 00:22:16,240 Speaker 3: Well, that's what's really going to be the big conversation 395 00:22:16,520 --> 00:22:18,760 Speaker 3: in the off season, right where as they go through 396 00:22:19,119 --> 00:22:24,040 Speaker 3: the next CBA. From your perspective from being in those conversations, 397 00:22:24,080 --> 00:22:27,119 Speaker 3: beforehand and knowing the business of baseball, like you were saying, 398 00:22:27,920 --> 00:22:29,760 Speaker 3: how big of a fight is this going to be? 399 00:22:30,680 --> 00:22:33,960 Speaker 5: I mean, I don't know, but I know what I 400 00:22:34,080 --> 00:22:39,880 Speaker 5: read in the newspaper, and on the surface, it seems 401 00:22:40,040 --> 00:22:48,119 Speaker 5: like the revenue share offer is exceptional when and I 402 00:22:48,119 --> 00:22:50,199 Speaker 5: don't know if it's just I'm reading these headlines, but 403 00:22:50,680 --> 00:22:55,000 Speaker 5: what I heard was salary cap plus half of the 404 00:22:55,040 --> 00:22:59,639 Speaker 5: money half of the revenue. That's what I heard. Now 405 00:22:59,840 --> 00:23:02,879 Speaker 5: I don't know the details. I don't know the fine print, 406 00:23:03,359 --> 00:23:06,400 Speaker 5: so I don't know, and I don't have the models 407 00:23:06,440 --> 00:23:08,280 Speaker 5: to project he is not going to make more money 408 00:23:08,320 --> 00:23:10,800 Speaker 5: for us or less. So the devil's in the details here. 409 00:23:11,400 --> 00:23:17,080 Speaker 5: But that seems like a great opportunity for players to 410 00:23:17,240 --> 00:23:22,320 Speaker 5: participate in some of the profits of baseball. Now, the 411 00:23:22,400 --> 00:23:28,440 Speaker 5: other side is the team valuations are going to skyrocket 412 00:23:29,800 --> 00:23:34,960 Speaker 5: because the investor class will see that expenses are kept 413 00:23:36,080 --> 00:23:39,280 Speaker 5: and when expenses are capped, you can predict your profits. Yeah, 414 00:23:39,320 --> 00:23:42,359 Speaker 5: you have to share that, so the team valuations, I 415 00:23:42,400 --> 00:23:47,040 Speaker 5: think all team valuations will go up a lot. And 416 00:23:47,640 --> 00:23:50,360 Speaker 5: it doesn't sound like their offer has accounted for that 417 00:23:50,520 --> 00:23:54,800 Speaker 5: part of the equation yet. So you know, my prediction 418 00:23:54,960 --> 00:23:57,200 Speaker 5: is the Union is going to say no. 419 00:24:00,080 --> 00:24:06,840 Speaker 6: I think we're talking with Joe Pirello, founder and CEO 420 00:24:07,080 --> 00:24:10,400 Speaker 6: of PROPS, And which brings me to the next point. 421 00:24:10,400 --> 00:24:14,719 Speaker 6: When you talk about baseball being big, what did George 422 00:24:14,800 --> 00:24:20,639 Speaker 6: Steinbrenner think about the crosstown rivals the New York Mets, 423 00:24:20,720 --> 00:24:23,720 Speaker 6: Because there was the one time where the Yankees and 424 00:24:23,760 --> 00:24:27,160 Speaker 6: the Mets were in the World Series. I'm just curious 425 00:24:27,240 --> 00:24:29,320 Speaker 6: what did George Steinbrenner think about that. 426 00:24:30,280 --> 00:24:37,120 Speaker 5: I mean, he thought about the opponent in the same way, 427 00:24:37,480 --> 00:24:42,320 Speaker 5: no matter who the opponent was. I think playing the 428 00:24:42,400 --> 00:24:48,680 Speaker 5: crosstown rival was more poignant, right for not just the Boss, 429 00:24:48,840 --> 00:24:52,720 Speaker 5: but everyone in the organization. You know, we want to 430 00:24:52,760 --> 00:24:56,080 Speaker 5: beat everyone that we're playing, and we want to beat 431 00:24:56,160 --> 00:25:01,679 Speaker 5: the Mets slightly more if you could. But you know, 432 00:25:02,280 --> 00:25:05,480 Speaker 5: the Boss just wants to win. He just wanted to win, 433 00:25:05,760 --> 00:25:08,560 Speaker 5: and that it was the Mets made him want to win, 434 00:25:08,680 --> 00:25:12,560 Speaker 5: you know a little bit more. But you know, you're 435 00:25:12,960 --> 00:25:16,520 Speaker 5: measuring this on a scale where his desire to win 436 00:25:16,840 --> 00:25:20,520 Speaker 5: is really high, you know, and against the Mets it's like, okay, 437 00:25:20,560 --> 00:25:23,560 Speaker 5: ten percent higher. But he just wants to win. He 438 00:25:23,640 --> 00:25:24,320 Speaker 5: just wanted to win. 439 00:25:24,840 --> 00:25:27,640 Speaker 3: We've talked about the perennial champions of New York, the Yankees, 440 00:25:27,960 --> 00:25:30,000 Speaker 3: but we'll stick with Joe Perello to speak about New 441 00:25:30,040 --> 00:25:33,840 Speaker 3: York's potential next champion, the Knicks. Stay with us more 442 00:25:33,880 --> 00:25:37,160 Speaker 3: with Joe Perello, the founder and CEO of Props. Coming up. 443 00:25:37,480 --> 00:25:40,040 Speaker 6: That is straight ahead on the Bloomberg Business of Sports. 444 00:25:40,280 --> 00:25:44,480 Speaker 6: Michael Barre with Vanessa Perdomo magleone. You're listening to the 445 00:25:44,520 --> 00:25:48,160 Speaker 6: Bloomberg Business of Sports Bloomberg Radio around the world. 446 00:25:51,720 --> 00:25:55,720 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 447 00:25:56,960 --> 00:25:59,320 Speaker 6: Thanks for joining us on the Bloomberg Business of Sports, 448 00:25:59,359 --> 00:26:01,960 Speaker 6: where we explore the big money issues in the world 449 00:26:02,040 --> 00:26:02,439 Speaker 6: of sports. 450 00:26:02,480 --> 00:26:06,119 Speaker 3: I'm Michael Barr, I'm Vanessa Perdomo Maglione. New York is 451 00:26:06,119 --> 00:26:08,720 Speaker 3: having a moment in sports right now, being the home 452 00:26:08,760 --> 00:26:11,800 Speaker 3: to the NBA Finals and the upcoming World Cup. We 453 00:26:11,840 --> 00:26:14,159 Speaker 3: are joined in the studio by Joe Perello, who is 454 00:26:14,200 --> 00:26:17,320 Speaker 3: the first Chief Marketing Officer of New York City. Joe, 455 00:26:17,320 --> 00:26:20,159 Speaker 3: we've been talking a lot about, you know, the Yankees, 456 00:26:20,440 --> 00:26:23,119 Speaker 3: but obviously we have to talk about the Knicks. The 457 00:26:23,200 --> 00:26:25,359 Speaker 3: knickser in the finals for the first time twenty seven 458 00:26:25,440 --> 00:26:30,240 Speaker 3: years and there is a different energy when the Knicks 459 00:26:30,359 --> 00:26:32,560 Speaker 3: are in the playoffs. I'm a huge Yankee fan. I 460 00:26:32,640 --> 00:26:35,320 Speaker 3: get upset when the whole city isn't you know, you 461 00:26:35,359 --> 00:26:37,760 Speaker 3: know all about you know, the Yankees when they're in 462 00:26:37,760 --> 00:26:40,399 Speaker 3: the playoffs. But there's something about the city when the 463 00:26:40,480 --> 00:26:42,600 Speaker 3: Knicks are in the playoffs. Why do you think that is? 464 00:26:43,000 --> 00:26:45,159 Speaker 5: I think some of it is historical. You know, the 465 00:26:45,240 --> 00:26:47,840 Speaker 5: Nets were in Jersey for a long time, you know, 466 00:26:47,880 --> 00:26:50,720 Speaker 5: so they're like an expansion team in Brooklyn. Although I 467 00:26:50,720 --> 00:26:56,320 Speaker 5: think they're great franchise. Hopefully they'll play great basketball again someday. 468 00:26:58,200 --> 00:27:00,680 Speaker 5: So I think, you know, history is on the side 469 00:27:00,720 --> 00:27:05,320 Speaker 5: of the Necks. The Garden, right is a landmark. It's 470 00:27:05,400 --> 00:27:08,840 Speaker 5: part of who we are as New Yorkers, no matter 471 00:27:08,840 --> 00:27:12,119 Speaker 5: where you're from in New York City. And they, you know, 472 00:27:12,520 --> 00:27:15,359 Speaker 5: they even welcome people from New Jersey in the Garden. 473 00:27:16,840 --> 00:27:17,600 Speaker 3: They are welcome. 474 00:27:17,880 --> 00:27:21,280 Speaker 5: We are welcome, the Jersey Its are welcome there. So 475 00:27:21,280 --> 00:27:24,000 Speaker 5: so they have history on their side. Where the Knicks, 476 00:27:24,359 --> 00:27:26,880 Speaker 5: you know, I think could be seen as the only 477 00:27:27,560 --> 00:27:30,080 Speaker 5: team in the NBA that's from New York, even though 478 00:27:30,080 --> 00:27:33,119 Speaker 5: they're they're now too. As you know, the Mets have 479 00:27:33,200 --> 00:27:35,760 Speaker 5: been here since the sixties, and you know, the Jets 480 00:27:35,800 --> 00:27:38,000 Speaker 5: and the Giants same. So there's the history is not 481 00:27:38,160 --> 00:27:40,640 Speaker 5: on the side of the other teams where they've they've 482 00:27:40,640 --> 00:27:42,280 Speaker 5: had to fight for fan bases. I don't think the 483 00:27:42,359 --> 00:27:46,760 Speaker 5: Knicks have had to and they have They've had great players. 484 00:27:47,080 --> 00:27:50,119 Speaker 5: You know, their owners are in the news too that 485 00:27:50,600 --> 00:27:53,920 Speaker 5: you know, it's very personality driven, I would say, which 486 00:27:53,920 --> 00:27:57,520 Speaker 5: I think is the exception to this team. You know, 487 00:27:57,680 --> 00:28:01,920 Speaker 5: Jalen Brunson aside. I think this is about in my sense, 488 00:28:01,960 --> 00:28:06,639 Speaker 5: this is about a team in the sense that a 489 00:28:06,640 --> 00:28:09,800 Speaker 5: lot of the players played together, you know, in college. 490 00:28:10,320 --> 00:28:14,800 Speaker 5: They came from a very disciplined team in Villanova and 491 00:28:14,880 --> 00:28:21,320 Speaker 5: an exceptional coach. I think that the values of the 492 00:28:21,359 --> 00:28:27,280 Speaker 5: team and Jalen are congruent with New Yorkers. It's you know, 493 00:28:27,960 --> 00:28:30,159 Speaker 5: I don't see a lot of flash. I see a 494 00:28:30,160 --> 00:28:33,680 Speaker 5: lot of hard work. Yeah, I see a lot of discipline. 495 00:28:34,600 --> 00:28:39,560 Speaker 5: I don't see players who were you know, phenoms out 496 00:28:39,600 --> 00:28:44,680 Speaker 5: of high school or you know, they weren't like superstars 497 00:28:44,720 --> 00:28:47,320 Speaker 5: out of the gate. They all sort of worked really 498 00:28:47,400 --> 00:28:52,160 Speaker 5: hard to get here and and they never give up. 499 00:28:53,760 --> 00:28:57,920 Speaker 5: So you just describe New York you work really hard 500 00:28:57,920 --> 00:29:01,680 Speaker 5: to get here, you never give up, You prepare your disciplined, 501 00:29:01,920 --> 00:29:04,480 Speaker 5: you know. So that's that's what I see in this 502 00:29:04,600 --> 00:29:09,120 Speaker 5: Knixt team, which is so exciting. I don't see a 503 00:29:09,120 --> 00:29:13,000 Speaker 5: lot of flash. I don't see a lot of trash talk. 504 00:29:14,200 --> 00:29:16,680 Speaker 5: Maybe I'm sure there is on the court, but you know, 505 00:29:16,760 --> 00:29:18,840 Speaker 5: I don't see that. I see. I see the good, 506 00:29:19,040 --> 00:29:21,560 Speaker 5: hard working, competitive athletic spirit. 507 00:29:22,600 --> 00:29:26,560 Speaker 6: Talking with Joe Pirello, founder and CEO of Props, and 508 00:29:27,120 --> 00:29:30,200 Speaker 6: I want to thank how are friends from ABC seven 509 00:29:30,400 --> 00:29:34,840 Speaker 6: for this bit of information nugget. The last time the 510 00:29:34,920 --> 00:29:38,400 Speaker 6: Knicks were in the finals was nineteen ninety nine, and 511 00:29:38,440 --> 00:29:43,280 Speaker 6: ironically they were playing the San Antonio Spurs, and they 512 00:29:43,320 --> 00:29:46,560 Speaker 6: brought up what the ticket prices were back in nineteen 513 00:29:46,640 --> 00:29:51,680 Speaker 6: ninety nine for the finals to today. In nineteen ninety nine, 514 00:29:52,280 --> 00:29:56,680 Speaker 6: the average cost for the floor seats was four three 515 00:29:56,760 --> 00:30:02,920 Speaker 6: hundred and fifty dollars and fifty dollars for nosebley Today 516 00:30:04,120 --> 00:30:07,640 Speaker 6: the average is sixty five thousand dollars. On the floor. 517 00:30:08,000 --> 00:30:10,000 Speaker 6: It could go as high like on a stub hub 518 00:30:10,400 --> 00:30:14,160 Speaker 6: over one hundred five thousand dollars, and the nosebleeds are 519 00:30:14,240 --> 00:30:17,520 Speaker 6: what the floor seats were in nineteen ninety nine. They're 520 00:30:17,560 --> 00:30:20,360 Speaker 6: just averaging over forty two hundred dollars. That bring this 521 00:30:20,440 --> 00:30:23,280 Speaker 6: all up because there is a lot of money to 522 00:30:23,320 --> 00:30:28,640 Speaker 6: be made in the Knicks being in the finals, and 523 00:30:28,920 --> 00:30:33,480 Speaker 6: not only for the team, but all the ancillary restaurants 524 00:30:33,600 --> 00:30:36,240 Speaker 6: all across the city making money on this. 525 00:30:36,760 --> 00:30:40,760 Speaker 5: Yeah, I mean that disparity is disturbing, and the ticket 526 00:30:40,800 --> 00:30:44,920 Speaker 5: prices are out, you know, they're out of this world. 527 00:30:45,200 --> 00:30:50,280 Speaker 5: One approach that I wish the NBA could take. And 528 00:30:50,640 --> 00:30:53,320 Speaker 5: they're sort of restricted by the number of seats that 529 00:30:53,360 --> 00:30:56,560 Speaker 5: they have. Baseball has, you know, twice the number of 530 00:30:56,560 --> 00:31:00,320 Speaker 5: home games and probably twice the number of seats. And 531 00:31:00,440 --> 00:31:04,320 Speaker 5: our approach when I was at the Yankees was, let's 532 00:31:04,360 --> 00:31:07,080 Speaker 5: make sure we have a lot of seats that cost 533 00:31:07,320 --> 00:31:10,160 Speaker 5: about the same as a movie ticket. You know. That 534 00:31:10,360 --> 00:31:12,800 Speaker 5: was our basis for what we were going to price 535 00:31:13,040 --> 00:31:15,640 Speaker 5: the upper deck and the bleachers at was well, what, 536 00:31:15,720 --> 00:31:16,880 Speaker 5: you know, how much does it cost to go to 537 00:31:16,920 --> 00:31:19,920 Speaker 5: a movie? And that was our basis, you know. And 538 00:31:19,960 --> 00:31:22,800 Speaker 5: then you can't I can't fault a team for trying 539 00:31:22,840 --> 00:31:25,960 Speaker 5: to get lots of wealthy people to hand over their 540 00:31:26,000 --> 00:31:30,240 Speaker 5: money for the super seats, Like that's great, and you're right, 541 00:31:30,280 --> 00:31:34,880 Speaker 5: you rightly talk about the economy that is created out 542 00:31:34,920 --> 00:31:38,720 Speaker 5: of that is meals and restaurants and transportation, all the 543 00:31:38,760 --> 00:31:42,240 Speaker 5: things that go along with that are great. I think 544 00:31:42,320 --> 00:31:45,840 Speaker 5: there should be I think there should be a I 545 00:31:45,840 --> 00:31:50,440 Speaker 5: think it's a good marketing policy if you created a 546 00:31:50,520 --> 00:31:54,280 Speaker 5: number of seats that were like the bleachers in baseball 547 00:31:54,600 --> 00:31:58,440 Speaker 5: and bring that to basketball, and look, that would be 548 00:31:58,520 --> 00:32:02,320 Speaker 5: foregoing some short term revenue, but I think you create 549 00:32:02,440 --> 00:32:06,840 Speaker 5: long term love and that you could drive that revenue 550 00:32:06,880 --> 00:32:09,920 Speaker 5: through another way if you got it. You made it 551 00:32:09,960 --> 00:32:12,280 Speaker 5: easy for families to come to the game, even if 552 00:32:12,280 --> 00:32:13,200 Speaker 5: they were in the upper deck. 553 00:32:13,720 --> 00:32:15,160 Speaker 3: I want to talk a little bit more about the 554 00:32:15,160 --> 00:32:18,200 Speaker 3: marketing side to all of this, and you were the 555 00:32:18,240 --> 00:32:22,080 Speaker 3: first chief Marketing Officer of New York. From your experience, 556 00:32:22,240 --> 00:32:26,320 Speaker 3: you know, how do you market a time like this 557 00:32:26,840 --> 00:32:28,560 Speaker 3: and what does it do for the city? You know, 558 00:32:28,960 --> 00:32:31,400 Speaker 3: when you're looking at what does it do something for tourism? 559 00:32:31,440 --> 00:32:33,200 Speaker 3: Is that where you're looking at or what are you 560 00:32:33,280 --> 00:32:35,680 Speaker 3: looking for it to do for the city of New York. 561 00:32:36,080 --> 00:32:39,760 Speaker 5: Well, when Blueberg was mayor, I was lucky enough to 562 00:32:39,840 --> 00:32:44,360 Speaker 5: be the first CMO of the city, and the concept 563 00:32:44,640 --> 00:32:47,680 Speaker 5: was simply, we got to get our hands around this 564 00:32:48,640 --> 00:32:51,880 Speaker 5: like there's no centralization, and that was really the mission, 565 00:32:51,960 --> 00:32:56,520 Speaker 5: like centralize all this stuff. So, having come from the 566 00:32:56,600 --> 00:33:00,520 Speaker 5: Yankees and been familiar with the NFL, my approach which was, 567 00:33:00,640 --> 00:33:05,800 Speaker 5: let's treat New York City like a sports league in 568 00:33:05,840 --> 00:33:10,720 Speaker 5: the sense that a sports league has intellectual property that 569 00:33:10,760 --> 00:33:17,880 Speaker 5: they protect, they have sponsorable assets okay, that they sell 570 00:33:17,920 --> 00:33:23,000 Speaker 5: to corporate sponsors, they have events right that they leverage, 571 00:33:23,600 --> 00:33:27,080 Speaker 5: and they have also massive TV deals, which we didn't 572 00:33:27,120 --> 00:33:28,840 Speaker 5: have in New York City, but we still had the 573 00:33:28,880 --> 00:33:33,120 Speaker 5: other three. So our approach in marketing New York City 574 00:33:33,160 --> 00:33:38,600 Speaker 5: was Step one was generate revenue and step two was 575 00:33:38,920 --> 00:33:42,920 Speaker 5: invest that revenue in a very coordinated and sophisticated marketing 576 00:33:42,960 --> 00:33:45,719 Speaker 5: plan to get fifty million people to come to New 577 00:33:45,800 --> 00:33:48,000 Speaker 5: York City. I think we were at thirty five or 578 00:33:48,000 --> 00:33:52,120 Speaker 5: thirty eight back a year. Yeah, fifty million a year. 579 00:33:52,520 --> 00:33:58,800 Speaker 5: So essentially, we organized the city's marketing assets. And this 580 00:33:58,880 --> 00:34:01,280 Speaker 5: is from something as sort of mundane as a bus 581 00:34:01,280 --> 00:34:07,240 Speaker 5: stop shelter, right, the advertising on taxis in a coordinated 582 00:34:07,280 --> 00:34:10,520 Speaker 5: way so that we could package those assets up and 583 00:34:10,680 --> 00:34:16,319 Speaker 5: sell them to sponsors like Snapple and also package in 584 00:34:16,960 --> 00:34:22,560 Speaker 5: I would call it a corporate social responsibility benefit. So 585 00:34:22,600 --> 00:34:26,720 Speaker 5: Snapple ended up paying the city over one hundred million dollars. 586 00:34:27,840 --> 00:34:32,399 Speaker 5: They got tens of millions of dollars in in out 587 00:34:32,400 --> 00:34:36,800 Speaker 5: of home media that they valued highly, and in return, 588 00:34:37,520 --> 00:34:41,319 Speaker 5: they funded middle school sports in New York City. Right, 589 00:34:41,400 --> 00:34:44,160 Speaker 5: So we were solving these problems in the city that 590 00:34:44,640 --> 00:34:49,680 Speaker 5: are difficult to solve through charity. Right, you're asking for 591 00:34:49,719 --> 00:34:52,120 Speaker 5: a handout. So our approach was, let's just not ask 592 00:34:52,160 --> 00:34:58,600 Speaker 5: for a handout, let's actually give the sponsor real marketing value. 593 00:34:59,000 --> 00:35:01,160 Speaker 5: And we took the same approach that league's take, which is, Hey, 594 00:35:01,160 --> 00:35:02,200 Speaker 5: you're going to have to pay us a lot of 595 00:35:02,239 --> 00:35:04,360 Speaker 5: money because we're in New York City. We have the 596 00:35:04,400 --> 00:35:07,680 Speaker 5: Super Bowl of outdoor, we have these important missions that 597 00:35:07,719 --> 00:35:10,759 Speaker 5: we need you to support, like middle school sports or 598 00:35:10,800 --> 00:35:14,840 Speaker 5: restoring monuments, and oh, by the way, you need to 599 00:35:14,880 --> 00:35:19,400 Speaker 5: help us market New York City, just like Visa helps 600 00:35:19,560 --> 00:35:23,360 Speaker 5: market the NFL. That was our whole approach, and we 601 00:35:23,480 --> 00:35:26,400 Speaker 5: ended up generating one hundred million dollars I think across 602 00:35:27,000 --> 00:35:29,640 Speaker 5: over three years, I think we supported about thirty five 603 00:35:29,719 --> 00:35:34,800 Speaker 5: city agencies. We ended up getting an entirely new bus stop, 604 00:35:34,840 --> 00:35:39,120 Speaker 5: shelter and new stand franchise out of the deal, and 605 00:35:39,280 --> 00:35:43,600 Speaker 5: we ended up merging that with the Convention and Visitors Bureau, 606 00:35:43,680 --> 00:35:46,239 Speaker 5: which is known as NYC and Company. And so now 607 00:35:46,280 --> 00:35:49,759 Speaker 5: they're a totally merged group that has its own new 608 00:35:49,800 --> 00:35:54,360 Speaker 5: revenue source. And that really started from Mike Bloomberg and 609 00:35:54,880 --> 00:35:59,040 Speaker 5: Deputy Mayor Dan Doctoroff who later came here to Bloomberg. 610 00:35:59,640 --> 00:36:02,880 Speaker 5: So it was it was an approach that was very 611 00:36:02,960 --> 00:36:06,800 Speaker 5: much driven by the ideas behind successful sports leagues. 612 00:36:07,640 --> 00:36:11,360 Speaker 6: We're talking with Joe Perello, founder and CEO of Props. 613 00:36:11,400 --> 00:36:13,719 Speaker 6: He was also, by the way, New York City's very 614 00:36:13,719 --> 00:36:17,920 Speaker 6: first chief marketing officer, appointed by then Mayor Bloomberg. And 615 00:36:17,960 --> 00:36:20,800 Speaker 6: I should add Michael Bloomberg as founder and majority owner 616 00:36:20,800 --> 00:36:25,480 Speaker 6: of Bloomberg LP, the parent company Bloomberg Radio. And Oh, 617 00:36:25,640 --> 00:36:29,920 Speaker 6: something else is happening in the city. Hmm. It involves 618 00:36:30,000 --> 00:36:33,800 Speaker 6: around soccer ball and a whole bunch of folks that 619 00:36:33,840 --> 00:36:38,160 Speaker 6: will be coming into the city. Oh, my goodness, gracious 620 00:36:38,520 --> 00:36:43,480 Speaker 6: this which one is? Well, this is a silly question. 621 00:36:43,520 --> 00:36:45,960 Speaker 6: Which one is going to be bigger revenue wise? Is 622 00:36:46,000 --> 00:36:49,640 Speaker 6: it going to be the World Cup or what's happening 623 00:36:49,640 --> 00:36:50,719 Speaker 6: with the Knicks right now? 624 00:36:51,000 --> 00:36:54,799 Speaker 5: Oh? That's a great question. I think the World Cup 625 00:36:54,800 --> 00:36:57,319 Speaker 5: has potential to drive more tourism to the city, so 626 00:36:57,400 --> 00:37:01,120 Speaker 5: probably more economic development dollars. Know, the way the governments 627 00:37:01,840 --> 00:37:05,440 Speaker 5: measure those, it's a bit of a loose calculation because 628 00:37:05,440 --> 00:37:08,360 Speaker 5: it's hard to track. But in terms of exposure for 629 00:37:08,520 --> 00:37:11,960 Speaker 5: New York, I think the next being in the finals, 630 00:37:12,400 --> 00:37:15,799 Speaker 5: because that's you know, widely broadcast around the country, is 631 00:37:15,840 --> 00:37:18,520 Speaker 5: probably going to be a better sort of postcard for 632 00:37:18,680 --> 00:37:21,920 Speaker 5: New York City. The World Cup is exciting though, because 633 00:37:22,760 --> 00:37:27,320 Speaker 5: I mean, look, what's wonderful about sports is it brings 634 00:37:27,320 --> 00:37:30,920 Speaker 5: people together. It brings people from all walks of life 635 00:37:31,360 --> 00:37:35,799 Speaker 5: together in a common purpose, if you will. And there's 636 00:37:35,840 --> 00:37:40,080 Speaker 5: not that many things left that you know that's still 637 00:37:40,160 --> 00:37:43,759 Speaker 5: that still do that, and it you know, it brings 638 00:37:43,960 --> 00:37:48,560 Speaker 5: people from different income levels and cultures and religions and yeah, 639 00:37:48,640 --> 00:37:50,480 Speaker 5: the you know, the rich people sit down below and 640 00:37:50,520 --> 00:37:52,399 Speaker 5: the and the you know, the less rich people sit 641 00:37:52,520 --> 00:37:55,560 Speaker 5: up upstairs. But they're all in the same building, right, 642 00:37:55,600 --> 00:37:59,600 Speaker 5: and they're all rooting for the same outcome, And it's 643 00:37:59,640 --> 00:38:02,719 Speaker 5: an ear resistible thing to be a part of. And 644 00:38:02,760 --> 00:38:07,520 Speaker 5: when you when you bring those ingredients to the international stage, 645 00:38:07,960 --> 00:38:11,640 Speaker 5: and now you're talking about you rooting for your country, 646 00:38:12,160 --> 00:38:16,960 Speaker 5: I would say it's it's not religious. Damn close. 647 00:38:18,680 --> 00:38:21,040 Speaker 3: That was Joe Birello. He was the first Chief Marketing 648 00:38:21,040 --> 00:38:23,239 Speaker 3: Officer of New York City and he's the founder and 649 00:38:23,320 --> 00:38:24,680 Speaker 3: CEO of Props. 650 00:38:25,160 --> 00:38:27,920 Speaker 6: That is it for today. Man, the time always goes 651 00:38:27,960 --> 00:38:31,160 Speaker 6: on this show quickly. Thanks for joining us. Tune in 652 00:38:31,200 --> 00:38:33,440 Speaker 6: again next week for the latest on the stories moving 653 00:38:33,480 --> 00:38:35,440 Speaker 6: big old money in the world of sports. 654 00:38:35,600 --> 00:38:37,680 Speaker 3: And don't forget to catch our podcast on all your 655 00:38:37,719 --> 00:38:40,680 Speaker 3: podcast platforms, and go to Bloomberg dot com to subscribe 656 00:38:40,680 --> 00:38:43,440 Speaker 3: to the Bloomberg Business of Sports newsletter to stay up 657 00:38:43,520 --> 00:38:45,360 Speaker 3: to date on all our juicy insights. 658 00:38:45,640 --> 00:38:48,839 Speaker 6: You're listening to the Bloomberg Business of Sports from Bloomberger 659 00:38:48,920 --> 00:38:50,440 Speaker 6: Radio around the world. 660 00:38:50,800 --> 00:38:51,399 Speaker 5: Stay with us. 661 00:38:51,440 --> 00:38:54,440 Speaker 3: Today's top stories and global business headlines are coming up 662 00:38:54,640 --> 00:38:55,400 Speaker 3: right now.