WEBVTT - Steven Pagliuca Talks Success of Sports Teams

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>An eighteenth NBA title is insight for the Boston Celtics,

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<v Speaker 2>the team advancing to their second NBA Finals in the

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<v Speaker 2>past three years after completing a series sweep of the

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<v Speaker 2>Indiana Pacers in the Eastern Conference Finals. An NBA title

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<v Speaker 2>would cap a successful season for co owner Steve Paliuca,

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<v Speaker 2>who just last week saw his Italian football side at

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<v Speaker 2>Atlanta win the Europa League. Steve, it's wonderful to catch

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<v Speaker 2>up with you, sir, we've been talking offline. I know

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<v Speaker 2>I was so happy for you. Congratulations to you and

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<v Speaker 2>a team. I want to begin with Atalanta and I

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<v Speaker 2>want to go through what this means to you. They

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<v Speaker 2>are the underdogs of Bergamow, overshadowed by their glamorous counterparts

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<v Speaker 2>of Inter and Milan out of Milan. How important was

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<v Speaker 2>that for you, for that side, for the history of

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<v Speaker 2>that club.

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<v Speaker 3>I think it was huge.

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<v Speaker 4>The Atlanta has not won the europea couple one hundred years,

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<v Speaker 4>and the city of Bermos is just ecstatic right now.

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<v Speaker 4>When the team came back from the game that there's

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<v Speaker 4>an shot of the fans in the stands.

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<v Speaker 3>There's ten thousand folks from Burgbo there and when they

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<v Speaker 3>came back, they couldn't even get out of the airport.

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<v Speaker 3>It was mob.

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<v Speaker 4>And then they took a bus to the practice facility

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<v Speaker 4>and that was also a mob.

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<v Speaker 3>And at the field, so they're feeling great.

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<v Speaker 4>There's Cardi sec Yar goalie with the metal and it

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<v Speaker 4>was just a wonderful time.

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<v Speaker 3>That's a big cup. By the way, two NBA Championships

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<v Speaker 3>were inside that cup.

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<v Speaker 2>Steve, your approach to this club and the way this

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<v Speaker 2>business has been run should be a case study in

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<v Speaker 2>a lot of schools. I just want to go through

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<v Speaker 2>some of that so our audience really understands the background here.

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<v Speaker 2>You've taken a chance on a lot of players that

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<v Speaker 2>some clubs have left behind, including my own club Milan

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<v Speaker 2>and the likes of CDK. You picked up Scamaka Lookman too.

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<v Speaker 2>You've identified talent the likes of Coop Minus. This hasn't

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<v Speaker 2>happened once, It's not happened twice, It's happened repeatedly. It's

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<v Speaker 2>not an accident, Steve, where does that come from.

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<v Speaker 4>I got a lot of credits to the a Luca

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<v Speaker 4>Percassi and the Italian team.

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<v Speaker 3>We have on the field, there.

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<v Speaker 4>They've done a fantastic job evaluating talent and really the

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<v Speaker 4>mainstay of Atalanta is their academy. They've invested heavily in

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<v Speaker 4>the academy in the last fifteen years and that's paid

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<v Speaker 4>a lot of dividends. Sol Being's a twenty one year

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<v Speaker 4>old defenseman that starts the youngest one in the.

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<v Speaker 3>Entire Syria and several others like that.

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<v Speaker 4>And then I think really really taking players and putting

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<v Speaker 4>them into a team orian system like the Celtics, and

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<v Speaker 4>having them pass the ball and putting them the right spot.

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<v Speaker 4>So the coaching staff, Luca Percassi, the whole organization gets

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<v Speaker 4>credit for that, and you know, it's it's been been

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<v Speaker 4>wonderful watch. You know. It also helped that we took

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<v Speaker 4>a risk on rest was Foightland two years ago and

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<v Speaker 4>he's a very young player.

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<v Speaker 3>I met him in.

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<v Speaker 4>Stemm Gross, Austria team that he played for, and he

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<v Speaker 4>was eighteen and we paid I think a record sum

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<v Speaker 4>for woman, record sums for eighteen year old that time.

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<v Speaker 4>Twenty million in Manchester United came docking the door of

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<v Speaker 4>the season or we hated to lose them. If they

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<v Speaker 4>paid eighty five million, then we invested in Scamaca and

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<v Speaker 4>several other players to improve the squad and it's been

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<v Speaker 4>imagining season.

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<v Speaker 2>Stave, could we talk a little bit about that as well,

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<v Speaker 2>the difference between Atalanta and the soundtics. When you have

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<v Speaker 2>a star like Hyland and you get Manchester United coming

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<v Speaker 2>in with massive money, how difficult it is to retain

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<v Speaker 2>that talent at a club like Atalanta and whether that

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<v Speaker 2>is still the future, is that inevitable, whether you're going

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<v Speaker 2>to have to sell somebody stars again to continuously reinvent yourself,

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<v Speaker 2>reinvent the club going forward.

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<v Speaker 4>It's really another different the NBA is when you should

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<v Speaker 4>win a championship, everybody watched your players and so we

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<v Speaker 4>think we can continue to prosper Atalanta with a mix

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<v Speaker 4>of young players and a mix of players that are

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<v Speaker 4>our sold because they have great opportunities. I think we'll

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<v Speaker 4>change that a bit. We're playing European football. Before that win,

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<v Speaker 4>we qualified for the Champions League and that win gives

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<v Speaker 4>you a slot in the Championszegue as well, So that's

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<v Speaker 4>going to be really helpful on our recruitment of players

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<v Speaker 4>to improve the team further, Stave.

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<v Speaker 2>To really put you on the spot, has it been

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<v Speaker 2>harder to run a football club or a basketball team.

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<v Speaker 3>They both have similar challenges.

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<v Speaker 4>You know. It's all about getting entertaining top talent and

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<v Speaker 4>keeping them motivated and trying to do everything that you

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<v Speaker 4>can to make their lives easy so they go out

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<v Speaker 4>in the pitch or go on the court and play hard,

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<v Speaker 4>and we try to do that in both organizations.

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<v Speaker 3>It's very similar.

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<v Speaker 4>Atalanta is kind of the can and do team with

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<v Speaker 4>a great culture in Italy. It's the favorite team of

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<v Speaker 4>many in Brahma and Northern Mulan, but also also it's

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<v Speaker 4>a favorite it's probably everybody's second favorite team in Italy.

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<v Speaker 4>I just came back from Rome and when we went

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<v Speaker 4>in an hotel room, my wife and I found a

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<v Speaker 4>large cake with an Atlanta symbol on it, So it's

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<v Speaker 4>semi Atlanta fever in Italy right now.

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<v Speaker 1>Steve, you are living pretty much everybody's dream. So congratulations

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<v Speaker 1>for winning life. You have definitely done it. There is

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<v Speaker 1>this idea, especially as you have two really successful teams

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<v Speaker 1>Celtics heading to their NBA finals, the second finals appearance

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<v Speaker 1>in three seasons, how do you monetize this? And I

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<v Speaker 1>know that that's not the reason why you do this.

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<v Speaker 1>You're in this for the love of the sport and

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<v Speaker 1>all the passion. Is it going direct to the distributors?

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<v Speaker 1>Do you find it actually more compelling right now because

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<v Speaker 1>you have the actual intellectual property in a way that

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<v Speaker 1>has changed with new technological advancements.

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<v Speaker 3>Absolutely.

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<v Speaker 4>You know, when we purchased the Celtics back in two

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<v Speaker 4>thousand and three, there was no Facebook or minimal social media,

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<v Speaker 4>almost nothing that maybe email was the technology of the day.

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<v Speaker 4>Now what we have is fans were counted back then

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<v Speaker 4>in the hundreds of thousands. Now they're counting in the

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<v Speaker 4>millions and possibly five hundred million a million for you know,

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<v Speaker 4>global soccer teams and also the NBA which is prospering

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<v Speaker 4>in Europe and China and all the world. So the

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<v Speaker 4>landscape's really changed. These teams have become teams of the world,

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<v Speaker 4>and the Boss of Celtics certainly have that reputation.

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<v Speaker 3>It's in terms of monetization. It's just a virtue of circle.

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<v Speaker 4>If you get more popular, you get great players, you

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<v Speaker 4>have more great players, you have more fans, and it's great.

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<v Speaker 4>It's a great place to be right now with being

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<v Speaker 4>in the file a couple years in a row.

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<v Speaker 5>On that point, though, Steve, when you get a trophy,

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<v Speaker 5>where does it immediately start to translate into money? Is

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<v Speaker 5>it immediately in merchandise ticket sales?

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<v Speaker 4>The main area quickly translates into a sponsorship So for

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<v Speaker 4>the for the Celtics, just the building of the brand

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<v Speaker 4>and having a championship team gets us more sponsorship income.

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<v Speaker 4>When we bought the club, especially was Demnimus and now

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<v Speaker 4>it's in the tens of millions and approaching hundreds of millions.

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<v Speaker 4>You know, brands want to be associated with the brand,

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<v Speaker 4>like the Celtics and Atlanta as well. Getting the champions

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<v Speaker 4>League gets up to lonch to more eyeballs. So having

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<v Speaker 4>that championship culture and the brand and the reputation that

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<v Speaker 4>that that's what does it for the long term and

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<v Speaker 4>creates value in the short term.

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<v Speaker 5>You went through what makes Atalanta so special and how

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<v Speaker 5>you really transformed that team. What about the Celtics they're

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<v Speaker 5>always winning? Why are they so good?

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<v Speaker 3>Well, that's one of the better questions I've ever had.

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<v Speaker 4>I guess I think they're good because we've had an

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<v Speaker 4>incredible management team who live by what grosspec for twenty

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<v Speaker 4>years now.

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<v Speaker 3>Rich Gotham, my president.

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<v Speaker 4>It started out with Danny Age and Albrad Stevens in

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<v Speaker 4>the basketball operation a great coach. They all work together

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<v Speaker 4>as a team and have been very smart in player

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<v Speaker 4>trading and acquisitions.

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<v Speaker 3>Same story in Atalanta. So it's all.

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<v Speaker 4>About trying to trying to get the top talent on

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<v Speaker 4>the field and doing you know, in both organizations, we've

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<v Speaker 4>believe been doing more work and exploring.

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<v Speaker 3>Using statistics, you know, using scouts.

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<v Speaker 4>To see players twenty or thirty or forty times, following

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<v Speaker 4>players from when they're eight years old in the high

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<v Speaker 4>school and college. And so that work ethic and kind

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<v Speaker 4>of a will to win championship pervades each organization. And

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<v Speaker 4>we've never been happier with those folks. And that's the

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<v Speaker 4>great thing to see in both these situations. People were

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<v Speaker 4>crying on the pitch at Atalanta after that victory, and

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<v Speaker 4>last night in Indiana, which is a great basketball town.

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<v Speaker 4>You know, there was a huge celebration after that victory,

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<v Speaker 4>and I'm just so happy for those players who work

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<v Speaker 4>so hard. It's just really hard to win championships. The

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<v Speaker 4>NBA has at different champions the last five years. Same

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<v Speaker 4>thing in Europe. It's just hard to get up every

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<v Speaker 4>night and beat these great teams and overcome injuries. So

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<v Speaker 4>I'm just pinching myself and hopeful the dream will continue

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<v Speaker 4>next week.

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<v Speaker 1>Steve, it sounded like you are a stabermetrics believer there

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<v Speaker 1>for a second, so that seems to be part of

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<v Speaker 1>what's going on. I will just say right now, you

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<v Speaker 1>must be on such a high, probably haven't slept in

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<v Speaker 1>a couple of weeks. There is this question of what's

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<v Speaker 1>next in terms of are you still interested in buying

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<v Speaker 1>other teams? Is there still value out there or do

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<v Speaker 1>you think that basically things have been bid up to

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<v Speaker 1>such a degree given all of the interests that pretty

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<v Speaker 1>much the opportunities aren't there anymore.

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<v Speaker 4>Well, when we bought the Celts in two thousand and three,

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<v Speaker 4>the headline was venture capitalist paid record price for team

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<v Speaker 4>that was three hundred and sixty million, and now the

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<v Speaker 4>values are counted in the four in the four billions.

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<v Speaker 4>So that's been a question to asked every single year.

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<v Speaker 4>I think the fact that this technology has changed and

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<v Speaker 4>sports are now global.

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<v Speaker 3>In the fight for.

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<v Speaker 4>Eyeballs between the new media you know, such as such

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<v Speaker 4>as Facebook and and Apple and old media, the networks

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<v Speaker 4>continues and everyone wants properties and get eyeballs, and the

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<v Speaker 4>properties that get eyeballs are sports properties.

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<v Speaker 3>So I think there's still room room to go up.

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<v Speaker 2>Stay before we go, We've got to talk about a

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<v Speaker 2>loss to the basketball world over the weekend. Bill Walton,

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<v Speaker 2>we'd love a final word from you on his legacy.

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<v Speaker 4>Yeah, I was devastating lesson. I'm so glad we won

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<v Speaker 4>that game. I felt like Bill was looking down on it.

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<v Speaker 4>I was very close to Bill in the twenty year run.

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<v Speaker 4>We had here and his son named to work for

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<v Speaker 4>us at the Celtics, and I just texted Bill two

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<v Speaker 4>weeks ago. He sent me a nice his sons, I

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<v Speaker 4>mean that message about the winning the Europa Cup.

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<v Speaker 3>Yes, he was watching that.

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<v Speaker 4>He was an avid sports fan and avid Celtics fand

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<v Speaker 4>and everywhere he went he proselytized what a great experience

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<v Speaker 4>it was to be a Celtic and be a champion.

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<v Speaker 3>So the world and the NBA has had.

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<v Speaker 4>A major loss in Bill russ In, Bill Walton and

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<v Speaker 4>two years before Bill Russell, two of the most iconic

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<v Speaker 4>centers of the game. And we're going to really miss

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<v Speaker 4>still and hopefully our players will take extra heart into

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<v Speaker 4>the games because of remembering Bill.

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<v Speaker 2>Steve, we appreciate you, sir. Let's catch up soon. Congratulations

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<v Speaker 2>for your hard work and success. Boston Celtics co owner

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<v Speaker 2>Steve Paliuka