1 00:00:02,520 --> 00:00:09,959 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is the Business 2 00:00:09,960 --> 00:00:10,600 Speaker 1: of Sports. 3 00:00:10,640 --> 00:00:13,520 Speaker 2: The business of sports can be intimidating or hard for 4 00:00:13,520 --> 00:00:14,520 Speaker 2: a starting to break into. 5 00:00:14,640 --> 00:00:17,639 Speaker 3: We really appreciate when our owners are actually there, you know, 6 00:00:17,720 --> 00:00:18,800 Speaker 3: with us through the journey. 7 00:00:18,840 --> 00:00:22,360 Speaker 4: Teams ours especially have been very intentional to diversify at 8 00:00:22,400 --> 00:00:23,160 Speaker 4: all levels. 9 00:00:22,880 --> 00:00:23,360 Speaker 3: Of the company. 10 00:00:23,440 --> 00:00:25,560 Speaker 5: I think we're in the bolden years for the NFL 11 00:00:25,760 --> 00:00:26,680 Speaker 5: and college football. 12 00:00:26,720 --> 00:00:29,760 Speaker 6: Our demographic reach has continued to explaide. 13 00:00:29,880 --> 00:00:33,520 Speaker 7: This is going to be really unlocking the streaming platform 14 00:00:33,600 --> 00:00:34,520 Speaker 7: for sports fans. 15 00:00:34,600 --> 00:00:37,560 Speaker 2: Sports valuations arising, we'll see when they peak. You don't 16 00:00:37,600 --> 00:00:40,080 Speaker 2: have to be the best in your sports to make 17 00:00:40,159 --> 00:00:42,680 Speaker 2: a whole ton of money. 18 00:00:42,840 --> 00:00:46,320 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 19 00:00:48,000 --> 00:00:50,839 Speaker 2: Hello, this is the Bloomberg Business of Sports, where we 20 00:00:50,880 --> 00:00:53,479 Speaker 2: explore the big money issues in the world of sports. 21 00:00:53,560 --> 00:00:56,560 Speaker 4: I'm Michael Barr, I'm Damian Sasaur, and I'm an Esperdemo. 22 00:00:56,800 --> 00:00:59,200 Speaker 2: Scarlett fu is on assignment. Coming up on the show, 23 00:00:59,240 --> 00:01:03,560 Speaker 2: we talk soccer and Manchester United's plans to build a big, 24 00:01:03,640 --> 00:01:04,880 Speaker 2: brand new facility. 25 00:01:05,000 --> 00:01:07,280 Speaker 4: We will also hear from Dan Hunt. Of course, he's 26 00:01:07,319 --> 00:01:10,160 Speaker 4: co owner of the Kansas City Chiefs, but he's got 27 00:01:10,160 --> 00:01:13,759 Speaker 4: his eyest on soccer as president of FC Dallas. He's 28 00:01:13,760 --> 00:01:15,679 Speaker 4: got big plans for the FIFA World Cup when it 29 00:01:15,720 --> 00:01:17,200 Speaker 4: comes to the United States. 30 00:01:17,240 --> 00:01:18,040 Speaker 7: We're in a really. 31 00:01:17,959 --> 00:01:21,720 Speaker 5: Unique spot in Dallas because Houston has six matches, Dallas 32 00:01:21,720 --> 00:01:24,760 Speaker 5: has nine, Kansas City has six. So somebody can make 33 00:01:24,760 --> 00:01:27,039 Speaker 5: a regional play to see a lot of World Cup 34 00:01:27,080 --> 00:01:28,880 Speaker 5: soccer by staying in North Texas. 35 00:01:29,280 --> 00:01:32,400 Speaker 2: All that and more is straight ahead on the Bloomberg 36 00:01:32,440 --> 00:01:35,360 Speaker 2: Business of Sports. But first we check in on the 37 00:01:35,440 --> 00:01:40,160 Speaker 2: sports media landscape with some streamers looking to grow in 38 00:01:40,440 --> 00:01:41,319 Speaker 2: live sports. 39 00:01:41,840 --> 00:01:44,479 Speaker 3: Right now, Amazon's making up ground on Disney in ad 40 00:01:44,520 --> 00:01:47,600 Speaker 3: dollars via cord cutters, and live sports is a big 41 00:01:47,640 --> 00:01:48,000 Speaker 3: part of that. 42 00:01:48,400 --> 00:01:51,200 Speaker 2: Here to take us through the latest research on this 43 00:01:51,440 --> 00:01:55,920 Speaker 2: from Bloomberg Intelligence is Bloomberg Intelligence technology and media analyst 44 00:01:56,000 --> 00:02:00,880 Speaker 2: Githa raganoffin Geetha, We've got a fight between Amazon and Disney. 45 00:02:01,320 --> 00:02:03,040 Speaker 2: What is this spat all about? 46 00:02:03,240 --> 00:02:06,360 Speaker 8: So this is really so, you know, we had the 47 00:02:06,400 --> 00:02:09,320 Speaker 8: streaming wars. The streaming wars are over. We kind of 48 00:02:09,400 --> 00:02:11,880 Speaker 8: know who won more or for the most part that 49 00:02:12,000 --> 00:02:16,520 Speaker 8: was Netflix. Now really the next phase, I would say 50 00:02:16,639 --> 00:02:20,480 Speaker 8: of this whole kind of streaming land grab is become 51 00:02:20,560 --> 00:02:25,000 Speaker 8: the ad supported streaming wars. Right. So now everybody, all 52 00:02:25,040 --> 00:02:27,680 Speaker 8: of these major platforms, whether it's a Disney, whether it's 53 00:02:27,680 --> 00:02:32,079 Speaker 8: an Amazon, even in Netflix, has now advertising on their 54 00:02:32,120 --> 00:02:36,079 Speaker 8: streaming platform, and everybody is trying to juice up their 55 00:02:36,639 --> 00:02:42,400 Speaker 8: advertising business as well as their advertising based subscribers. And 56 00:02:42,480 --> 00:02:45,640 Speaker 8: this really is just you know, this makes sense because 57 00:02:45,919 --> 00:02:49,200 Speaker 8: eyeballs are moving from linear platforms to streaming, and so 58 00:02:49,400 --> 00:02:52,840 Speaker 8: obviously it makes sense that advertising dollars should also follow. 59 00:02:53,560 --> 00:02:56,000 Speaker 8: And you know, all of these platforms, whether it's a Disney, 60 00:02:56,040 --> 00:02:58,000 Speaker 8: whether it's an Amazon, whether it's a Netflix, they want 61 00:02:58,000 --> 00:02:59,480 Speaker 8: to make sure that they have skin in the game, 62 00:02:59,520 --> 00:03:01,360 Speaker 8: and they want to make sure that they're capturing as 63 00:03:01,440 --> 00:03:04,920 Speaker 8: much as they can off that connected TV ad pie. 64 00:03:05,320 --> 00:03:08,840 Speaker 3: You know, tell us how obviously sports must play a 65 00:03:09,000 --> 00:03:11,480 Speaker 3: huge role in that. Now all these streamers want to 66 00:03:11,560 --> 00:03:15,480 Speaker 3: get live sports onto their networks. And I mean that's 67 00:03:15,520 --> 00:03:17,520 Speaker 3: really the only time that I can think of when 68 00:03:17,560 --> 00:03:21,000 Speaker 3: I'm sitting down watching during a game, that's pretty much 69 00:03:21,040 --> 00:03:22,760 Speaker 3: what it is. You know, you've got to just watch it. 70 00:03:22,800 --> 00:03:25,520 Speaker 3: So tell us about how sports is really pushing that 71 00:03:25,639 --> 00:03:27,400 Speaker 3: next ad space. 72 00:03:27,800 --> 00:03:31,080 Speaker 8: Oh absolutely, So sports is really the last kind of 73 00:03:31,160 --> 00:03:34,480 Speaker 8: pastion for linear TV, which is why linear TV has 74 00:03:34,520 --> 00:03:38,520 Speaker 8: been really fighting hard to hold on to sports rights 75 00:03:38,320 --> 00:03:40,760 Speaker 8: as much as they can as long as they can. 76 00:03:41,760 --> 00:03:44,080 Speaker 8: But you know, it is kind of the bundle has, 77 00:03:44,440 --> 00:03:46,960 Speaker 8: you know, kind of finally cracked, and we are seeing 78 00:03:47,000 --> 00:03:51,200 Speaker 8: more and more sports actually leak out of the ecosystem, 79 00:03:51,600 --> 00:03:54,360 Speaker 8: and in many ways, I think Amazon has really kind 80 00:03:54,400 --> 00:03:57,600 Speaker 8: of pushed the envelope here, right, So we've seen Amazon 81 00:03:57,960 --> 00:04:01,920 Speaker 8: make a big play for you know, the Thursday Night package, 82 00:04:02,600 --> 00:04:05,200 Speaker 8: and this year I think is really transformative in many 83 00:04:05,200 --> 00:04:08,360 Speaker 8: ways because they have invested close to almost two billion dollars. 84 00:04:08,400 --> 00:04:10,160 Speaker 8: They're going to be paying about one point eight billion 85 00:04:10,200 --> 00:04:14,119 Speaker 8: dollars per year for an NBA package which allows them 86 00:04:14,200 --> 00:04:18,400 Speaker 8: to stream sixty six regular season games. So that's again 87 00:04:18,440 --> 00:04:20,680 Speaker 8: a huge bet. And again it goes to your point 88 00:04:20,720 --> 00:04:24,240 Speaker 8: when I said this is all about you know, this 89 00:04:24,279 --> 00:04:26,800 Speaker 8: has become the new battleground for all of these ads 90 00:04:26,800 --> 00:04:29,279 Speaker 8: supported tiers, and everybody wants to make sure that they 91 00:04:29,360 --> 00:04:33,159 Speaker 8: have the best content, and the best content is sports 92 00:04:33,200 --> 00:04:35,919 Speaker 8: because that is where you have a captive audience, and 93 00:04:35,960 --> 00:04:39,200 Speaker 8: so advertisers are willing to pay those big bucks in 94 00:04:39,320 --> 00:04:41,080 Speaker 8: order to reach those audiences. 95 00:04:41,400 --> 00:04:43,680 Speaker 4: You know, Githa, you just have to remind our audience. 96 00:04:44,120 --> 00:04:47,039 Speaker 4: Where do we find games for the NFL this season. 97 00:04:47,080 --> 00:04:49,080 Speaker 4: I mean I'm looking right now right in Amazon. I 98 00:04:49,120 --> 00:04:51,159 Speaker 4: know it has NFL Thursday Night, It's got the Black Friday, 99 00:04:51,200 --> 00:04:54,159 Speaker 4: It's got some Wildcard games. Right, You've got, like you mentioned, 100 00:04:54,160 --> 00:04:56,920 Speaker 4: linear TV. I can't believe we call it linear TV now, 101 00:04:57,279 --> 00:04:59,120 Speaker 4: but we're calling it linear TV. I mean, they're going 102 00:04:59,160 --> 00:05:00,960 Speaker 4: to get your Sunday I know, kind of one o'clock, 103 00:05:01,040 --> 00:05:04,160 Speaker 4: four o'clock. I mean, I think Netflix has Christmas, Alphabet 104 00:05:04,240 --> 00:05:07,200 Speaker 4: has Sunday Ticket. I mean, I mean, I just I'm 105 00:05:07,200 --> 00:05:08,880 Speaker 4: trying to keep track of it all. You know, like 106 00:05:09,000 --> 00:05:11,960 Speaker 4: talk to me about you know, which you know and 107 00:05:12,000 --> 00:05:14,320 Speaker 4: which medium I mean, is going to really benefit the 108 00:05:14,360 --> 00:05:16,560 Speaker 4: most from sports broadcasting in the coming season. 109 00:05:17,040 --> 00:05:20,640 Speaker 8: That's a great question, you know, content discovery, and you're 110 00:05:20,680 --> 00:05:23,560 Speaker 8: really talking about the biggest pain point. You have all 111 00:05:23,640 --> 00:05:25,880 Speaker 8: of this great content, but sometimes just kind of finding 112 00:05:25,880 --> 00:05:28,080 Speaker 8: it and knowing where to go it tends to be 113 00:05:29,120 --> 00:05:31,839 Speaker 8: so frustrating for all of these viewers. You know, I 114 00:05:31,880 --> 00:05:35,680 Speaker 8: think we are going to see some improvements through the year. 115 00:05:35,880 --> 00:05:39,120 Speaker 8: So the big, big, big thing that everybody is kind 116 00:05:39,120 --> 00:05:41,640 Speaker 8: of waiting for in the media world actually has to 117 00:05:41,640 --> 00:05:44,960 Speaker 8: do with a big sports announcement that's coming out from 118 00:05:45,120 --> 00:05:47,159 Speaker 8: Disney a little bit later this year, which is, for 119 00:05:47,200 --> 00:05:50,160 Speaker 8: the very first time in their history, they have ESPN, 120 00:05:50,400 --> 00:05:53,680 Speaker 8: which has always been kind of synonymous with the PayTV bundle, 121 00:05:54,240 --> 00:05:57,040 Speaker 8: is actually going to go a la carte, so they 122 00:05:57,120 --> 00:06:00,599 Speaker 8: call it ESPN Flagship, and this is basically all of 123 00:06:00,600 --> 00:06:04,279 Speaker 8: the marquee content. ESPN content, which traditionally you can only 124 00:06:04,320 --> 00:06:06,039 Speaker 8: get through a TV subscription, is now going to be 125 00:06:06,040 --> 00:06:08,560 Speaker 8: available over the top. And that's going to happen sometime 126 00:06:08,680 --> 00:06:11,720 Speaker 8: in August, and I think, what ESPN. You know, they 127 00:06:11,720 --> 00:06:14,760 Speaker 8: haven't necessarily made any announcements just yet. We do know 128 00:06:14,800 --> 00:06:17,479 Speaker 8: that the product is probably going to going to prize 129 00:06:17,480 --> 00:06:19,680 Speaker 8: anywhere from about twenty five to thirty dollars a month. 130 00:06:20,320 --> 00:06:22,560 Speaker 8: What they have said is, you know, obviously all of 131 00:06:22,560 --> 00:06:24,320 Speaker 8: the content is going to be there, They're going to 132 00:06:24,640 --> 00:06:27,039 Speaker 8: have they're going to integrate sports betting, They're going to 133 00:06:27,040 --> 00:06:30,960 Speaker 8: make it as customizable as possible, you know, kind of 134 00:06:31,000 --> 00:06:36,200 Speaker 8: really really prioritizing the user experience. I think that's that's 135 00:06:36,320 --> 00:06:40,120 Speaker 8: what they're really going for. But I think eventually once 136 00:06:40,160 --> 00:06:44,279 Speaker 8: they have a critical mass of subscribers on the platform. 137 00:06:44,640 --> 00:06:47,240 Speaker 8: They are going to finally, you know, integrate and kind 138 00:06:47,279 --> 00:06:50,000 Speaker 8: of bring in all of the other different sources. That 139 00:06:50,120 --> 00:06:52,680 Speaker 8: that's the way I'm thinking about it. It's you know, 140 00:06:52,720 --> 00:06:54,719 Speaker 8: we still have to see how exactly it plays out, 141 00:06:54,760 --> 00:06:57,479 Speaker 8: but they're going to, i think, make it easier for 142 00:06:57,560 --> 00:06:59,719 Speaker 8: people to find all of the sports content that they 143 00:06:59,760 --> 00:07:02,320 Speaker 8: want watch in one single place. 144 00:07:03,279 --> 00:07:05,800 Speaker 2: I want to ask this question and just giving a 145 00:07:05,880 --> 00:07:09,960 Speaker 2: view on society in general. And I'm old enough to 146 00:07:10,040 --> 00:07:13,880 Speaker 2: remember free TV. You just flip the channel, you turn 147 00:07:13,960 --> 00:07:17,680 Speaker 2: it on two which was CBS four, NBC seven, ABC, 148 00:07:18,240 --> 00:07:20,880 Speaker 2: and you saw what you wanted for free. And I 149 00:07:20,960 --> 00:07:24,440 Speaker 2: remember one day when I was still living with my 150 00:07:24,560 --> 00:07:27,520 Speaker 2: mom and dad and I wanted to get cable and 151 00:07:27,560 --> 00:07:30,240 Speaker 2: my father lost his mind. He was like, why in 152 00:07:30,280 --> 00:07:33,880 Speaker 2: the world would you want to pay for TV? Well, then, 153 00:07:34,000 --> 00:07:37,640 Speaker 2: you know, three satellites later, he you know, clicked into it. 154 00:07:37,920 --> 00:07:41,840 Speaker 2: My point is, how did we change as a society 155 00:07:42,040 --> 00:07:47,200 Speaker 2: from hey, this is free TV to now forget cable. 156 00:07:47,440 --> 00:07:50,320 Speaker 2: We've gone all the way to streaming this and streaming that. 157 00:07:50,400 --> 00:07:54,760 Speaker 2: Whatever gest your view on society. What changed us? 158 00:07:54,960 --> 00:07:58,040 Speaker 8: Ondon is expensive, you know, so if you just kind 159 00:07:58,080 --> 00:08:01,600 Speaker 8: of look at Disney's content, right, they are one of 160 00:08:01,680 --> 00:08:06,360 Speaker 8: the biggest spenders in the media ecosystem, even more than Netflix. 161 00:08:06,440 --> 00:08:09,840 Speaker 8: So they're spending roughly twenty five billion dollars on content 162 00:08:10,000 --> 00:08:13,240 Speaker 8: every year, of which eleven billion dollars is just on 163 00:08:13,280 --> 00:08:16,720 Speaker 8: sports rights. So sports is a huge part of the equation. 164 00:08:16,880 --> 00:08:19,440 Speaker 8: And yes, Disney is paying out for that content. They are, 165 00:08:19,520 --> 00:08:21,800 Speaker 8: you know, they're they're paying and they have to get paid. 166 00:08:22,520 --> 00:08:25,360 Speaker 8: And that's really the whole origin of the PATV bundle 167 00:08:25,440 --> 00:08:28,200 Speaker 8: and people kind of shelling out one hundred dollars per 168 00:08:28,240 --> 00:08:32,320 Speaker 8: month and really the whole creation of the media food chain, 169 00:08:32,360 --> 00:08:35,360 Speaker 8: if you will, which by you know, right now is 170 00:08:35,440 --> 00:08:38,040 Speaker 8: kind of in shambles. But you know, content is still expensive. 171 00:08:38,080 --> 00:08:40,800 Speaker 8: Sports rights continue to be expensive. I mean, just that 172 00:08:40,920 --> 00:08:44,800 Speaker 8: last NBA deal, the one that that the NBA concluded 173 00:08:44,840 --> 00:08:50,679 Speaker 8: last year, saw a seventy percent not a seventy percent, sorry, 174 00:08:50,679 --> 00:08:54,640 Speaker 8: it was a two hundred and seventy percent increase in 175 00:08:54,960 --> 00:08:58,760 Speaker 8: the you know, the total rights package. So really exploding 176 00:08:58,920 --> 00:09:01,960 Speaker 8: in terms of you know, how we are seeing some 177 00:09:02,040 --> 00:09:05,480 Speaker 8: of these fee hikes play out. TKO is the other 178 00:09:05,520 --> 00:09:09,240 Speaker 8: big one which is right now actually negotiating for both 179 00:09:09,240 --> 00:09:12,000 Speaker 8: the UFC as well as some of the WWE rights. 180 00:09:12,000 --> 00:09:14,680 Speaker 8: They're looking for one hundred percent increase. So all of 181 00:09:14,679 --> 00:09:16,960 Speaker 8: these sports leagues they know that their content is valuable, 182 00:09:17,000 --> 00:09:18,959 Speaker 8: they know that people are you know, paying to watch, 183 00:09:18,960 --> 00:09:22,120 Speaker 8: and so you know, they're charging heavy fees and that 184 00:09:22,120 --> 00:09:23,960 Speaker 8: gets ultimately passed on to the consumer. 185 00:09:24,200 --> 00:09:27,480 Speaker 3: Githa, You brought up a lot there for Disney obviously 186 00:09:27,520 --> 00:09:31,559 Speaker 3: spending all this money and ESPN still really is that 187 00:09:31,760 --> 00:09:35,320 Speaker 3: name in sports that everybody knows, you know, is the 188 00:09:35,400 --> 00:09:38,680 Speaker 3: number one? But so is really the new NBA deal 189 00:09:38,880 --> 00:09:42,840 Speaker 3: and Thursday Night Football? Really how Amazon was able to 190 00:09:42,880 --> 00:09:44,880 Speaker 3: close this gap with Disney? Like, I feel like Disney 191 00:09:44,920 --> 00:09:47,400 Speaker 3: has HULO and they have Disney plus ESPN plus they 192 00:09:47,440 --> 00:09:49,400 Speaker 3: have all those things, so I feel like they should 193 00:09:49,400 --> 00:09:51,120 Speaker 3: be really in a league of their own. How is 194 00:09:51,120 --> 00:09:53,520 Speaker 3: Amazon really able to close that gap with them? 195 00:09:53,640 --> 00:09:56,200 Speaker 8: Okay, so what Amazon did was kind of a little 196 00:09:56,200 --> 00:09:59,160 Speaker 8: bit sneaky, I would say, but I think it served 197 00:09:59,200 --> 00:10:02,080 Speaker 8: its purpose. So the way that you know, normally some 198 00:10:02,120 --> 00:10:05,720 Speaker 8: of these streaming platforms introduce their ADS supported tiers is 199 00:10:05,800 --> 00:10:08,080 Speaker 8: you know, they do the Netflix route, right, So if 200 00:10:08,320 --> 00:10:11,280 Speaker 8: a standard subscription costs fifteen dollars, you basically introduce an 201 00:10:11,280 --> 00:10:13,880 Speaker 8: ad supported subscription at about half the price of six 202 00:10:13,920 --> 00:10:16,720 Speaker 8: dollars or seven dollars a month. What Amazon basically did 203 00:10:16,800 --> 00:10:20,400 Speaker 8: is they said, hey, whatever you're watching right now, we're 204 00:10:20,400 --> 00:10:22,920 Speaker 8: just going to stuff ads there. If you don't want 205 00:10:22,920 --> 00:10:25,880 Speaker 8: to watch the ads, you know, you pay us extra. 206 00:10:26,559 --> 00:10:30,480 Speaker 8: So they took the exact opposite approach by just making 207 00:10:30,600 --> 00:10:34,120 Speaker 8: ads the default option for everybody and forcing them to 208 00:10:34,200 --> 00:10:37,320 Speaker 8: opt out of it. So that gave them, you know, 209 00:10:37,400 --> 00:10:41,600 Speaker 8: an instant subscriber base of almost I want to say, 210 00:10:41,600 --> 00:10:44,120 Speaker 8: almost one hundred and fifteen million. They started out actually 211 00:10:44,160 --> 00:10:47,120 Speaker 8: by saying that they had about one hundred and fifteen million, right, 212 00:10:47,400 --> 00:10:49,679 Speaker 8: we think that's obviously grown over the past year or so, 213 00:10:50,160 --> 00:10:53,000 Speaker 8: and that just allowed them to not only serve ads, 214 00:10:53,160 --> 00:10:55,920 Speaker 8: but you know, go to their advertisers and say, see, 215 00:10:55,920 --> 00:10:58,520 Speaker 8: we already have like one hundred and twenty million subscribers. 216 00:10:58,559 --> 00:11:01,360 Speaker 4: Is there any do you have any data that's come in? 217 00:11:01,760 --> 00:11:04,160 Speaker 4: Where there are you know, I guess fifty year old 218 00:11:04,200 --> 00:11:06,080 Speaker 4: plus guys like me who all of a sudden arrive 219 00:11:06,120 --> 00:11:08,760 Speaker 4: in streaming and we're actually shopping on TV during the games. 220 00:11:09,200 --> 00:11:11,560 Speaker 4: I mean so, I mean, now you talk about sports gambling, 221 00:11:11,600 --> 00:11:13,640 Speaker 4: Michael Barr. You see where I'm going here, and and 222 00:11:14,600 --> 00:11:17,280 Speaker 4: maybe we're just now scratching the surface of the potential, right, 223 00:11:17,320 --> 00:11:19,400 Speaker 4: I mean, do you have any numbers there that kind 224 00:11:19,400 --> 00:11:21,719 Speaker 4: of talk about, you know, people's willingness to sit through 225 00:11:21,720 --> 00:11:23,840 Speaker 4: commercials and actually shop online during games. 226 00:11:24,000 --> 00:11:25,440 Speaker 8: I mean, this is such an excellent point that you 227 00:11:25,440 --> 00:11:28,040 Speaker 8: bring up, Damien, because this is this is really what 228 00:11:28,080 --> 00:11:31,920 Speaker 8: Amazon's play is, right. The connected TV is just the 229 00:11:32,400 --> 00:11:36,680 Speaker 8: gateway into really you know, merging entertainment and e commerce. 230 00:11:36,840 --> 00:11:39,679 Speaker 8: They want to have shoppable TV, right, They want their 231 00:11:39,760 --> 00:11:43,800 Speaker 8: viewers to make purchases right from their screens, and so 232 00:11:43,920 --> 00:11:46,679 Speaker 8: that that's you know, that's exactly what they want. And Amazon, 233 00:11:46,720 --> 00:11:49,360 Speaker 8: I mean, in terms of numbers, Amazon the way that 234 00:11:49,400 --> 00:11:53,280 Speaker 8: they've kind of conquered advertising. You know, just about five 235 00:11:53,320 --> 00:11:57,120 Speaker 8: to ten years ago, advertising was was zero dollars and 236 00:11:57,160 --> 00:12:00,720 Speaker 8: today for Amazon it's a sixty billion dollars bissiness. In 237 00:12:00,760 --> 00:12:02,920 Speaker 8: the next five years, this is probably going to go 238 00:12:02,960 --> 00:12:04,440 Speaker 8: to about one hundred billion, and a lot of that 239 00:12:04,559 --> 00:12:08,240 Speaker 8: is of course, their uh, you know, their e commerce business, right, 240 00:12:08,240 --> 00:12:12,080 Speaker 8: the search advertising or what we call retail media advertising, 241 00:12:12,360 --> 00:12:14,679 Speaker 8: and ultimately they want to do anything and everything they 242 00:12:14,760 --> 00:12:17,839 Speaker 8: can to choose those not only you know, the number 243 00:12:17,880 --> 00:12:20,160 Speaker 8: of people that they have shopping, but of course also 244 00:12:20,200 --> 00:12:23,000 Speaker 8: the you know, the advertising dollars everything, so everything goes 245 00:12:23,080 --> 00:12:25,640 Speaker 8: hand in hand here with Amazon. But you're absolutely right. 246 00:12:25,679 --> 00:12:28,479 Speaker 8: I mean, it is, it is that whole integrated experience 247 00:12:28,559 --> 00:12:31,080 Speaker 8: and they want people to spend more, you know, on 248 00:12:31,120 --> 00:12:34,000 Speaker 8: their platform, and they're doing it through this through the 249 00:12:34,000 --> 00:12:35,800 Speaker 8: ads to what they call shopical. 250 00:12:35,440 --> 00:12:39,240 Speaker 2: TV our Thanks to Bloomberg Intelligence, Technology and media analyst 251 00:12:39,280 --> 00:12:42,960 Speaker 2: Githa Raganathin up next, we turned a soccer and man 252 00:12:43,200 --> 00:12:46,680 Speaker 2: use plans to build a brand new venue for my 253 00:12:46,800 --> 00:12:50,600 Speaker 2: colleagues Damian Sasaur and Vanessa Perdomo. I'm Michael Barr. You're 254 00:12:50,640 --> 00:12:54,000 Speaker 2: listening to the Bloomberg Business of Sports from Bloomberg Radio 255 00:12:54,080 --> 00:12:55,000 Speaker 2: around the world. 256 00:12:59,080 --> 00:13:03,080 Speaker 1: This is Blueoomberg Business of Sports from Bloomberg Radio. 257 00:13:04,800 --> 00:13:07,400 Speaker 2: This is the Bloomberg Business of Sports where we explore 258 00:13:07,440 --> 00:13:10,360 Speaker 2: the big money issues in the world of sports. Michael Barr, 259 00:13:10,360 --> 00:13:14,440 Speaker 2: along with my colleagues Damian Sassauer and Vanessa Perdomo. Scarlett 260 00:13:14,480 --> 00:13:15,440 Speaker 2: fu is on assignment. 261 00:13:15,559 --> 00:13:19,079 Speaker 3: One of your biggest sports teams, Manchester United, is ready 262 00:13:19,120 --> 00:13:20,600 Speaker 3: to build a brand new venue. 263 00:13:20,720 --> 00:13:23,680 Speaker 4: The project for a new stadium could cost over two 264 00:13:23,920 --> 00:13:24,760 Speaker 4: billion dollars. 265 00:13:25,200 --> 00:13:27,560 Speaker 2: Here to talk to us about the project and more 266 00:13:27,720 --> 00:13:31,720 Speaker 2: is Bloomberg UK Business reporter David Hellier. First of all, 267 00:13:32,000 --> 00:13:35,040 Speaker 2: Hello and welcome to the Bloomberg Business of Sports. 268 00:13:35,480 --> 00:13:37,520 Speaker 7: Yeah, Hi, good to speak to you guys. 269 00:13:37,840 --> 00:13:42,480 Speaker 2: Well, it's a brand new one hundred thousand seat venue. 270 00:13:42,960 --> 00:13:45,080 Speaker 2: Tell us about it because it looks like it's going 271 00:13:45,160 --> 00:13:47,200 Speaker 2: to be a big job producer. 272 00:13:47,960 --> 00:13:50,280 Speaker 7: Yeah, it will be a big job producer if it 273 00:13:50,360 --> 00:13:54,360 Speaker 7: gets produced. It's still very contingent on the government doing 274 00:13:54,360 --> 00:13:56,000 Speaker 7: its bit and putting in a lot of money into 275 00:13:56,040 --> 00:13:59,560 Speaker 7: the reach generation of thee of the area. If that happens, 276 00:13:59,600 --> 00:14:01,840 Speaker 7: it's going to be a very big deal. It was 277 00:14:01,880 --> 00:14:05,200 Speaker 7: a curious announcement yesterday because you know we've been hearing 278 00:14:05,400 --> 00:14:08,560 Speaker 7: a lot about redevelopment of Old Trafford or maybe a 279 00:14:08,600 --> 00:14:12,720 Speaker 7: new stadium, which would it be And Jim Ratcliffe announced 280 00:14:12,760 --> 00:14:15,720 Speaker 7: it with kind of bit of san say yesterday in London, 281 00:14:15,760 --> 00:14:17,920 Speaker 7: which was a bit surprising. He would have thought he'd 282 00:14:17,920 --> 00:14:21,680 Speaker 7: have done it in Manchester in the building of Normal Foster, 283 00:14:21,960 --> 00:14:25,040 Speaker 7: the architect, and but yeah, he sort of kept saying 284 00:14:25,040 --> 00:14:27,560 Speaker 7: it's only going to happen if the government does its bit, 285 00:14:27,680 --> 00:14:30,640 Speaker 7: So it's still it's not a done deal as it were. 286 00:14:31,080 --> 00:14:34,480 Speaker 3: Is there going to be government funding helping build the stadium. 287 00:14:34,040 --> 00:14:36,880 Speaker 7: Also, No, I mean they were clear that they would 288 00:14:37,120 --> 00:14:41,240 Speaker 7: fund the stadium themselves, the club, the company Manchester United, 289 00:14:41,520 --> 00:14:43,840 Speaker 7: would fund that themselves. That they are making it a 290 00:14:43,960 --> 00:14:47,760 Speaker 7: very conditional on transport links, you know, kind of landscape 291 00:14:47,880 --> 00:14:51,160 Speaker 7: areas outside the stadium, because they see this very much 292 00:14:51,200 --> 00:14:55,680 Speaker 7: as a regeneration scheme for the whole area. And they 293 00:14:55,720 --> 00:14:58,000 Speaker 7: were kind of saying, if the government doesn't do that, 294 00:14:58,120 --> 00:15:00,400 Speaker 7: then we're not really going to build, you know, we're 295 00:15:00,400 --> 00:15:02,320 Speaker 7: not going to build a stadium. So it's kind of 296 00:15:02,400 --> 00:15:04,400 Speaker 7: I think there's a lot to go for here still, 297 00:15:04,720 --> 00:15:06,880 Speaker 7: but it seemed to me that they were kind of 298 00:15:06,960 --> 00:15:08,800 Speaker 7: like putting a bit of pressure on the government, saying 299 00:15:08,800 --> 00:15:10,760 Speaker 7: that this is what we're going to do. We're going 300 00:15:10,800 --> 00:15:13,520 Speaker 7: to guarantee the stadium and it's going to cost two billion, 301 00:15:13,840 --> 00:15:16,560 Speaker 7: we're going to you know, raise up privately, but we 302 00:15:16,640 --> 00:15:19,400 Speaker 7: do want you to do your bit. And so I 303 00:15:19,440 --> 00:15:21,360 Speaker 7: think now it's kind of like a bit of pressure. 304 00:15:21,680 --> 00:15:24,080 Speaker 7: It does fit in in a way to the government's 305 00:15:24,160 --> 00:15:27,400 Speaker 7: overall program of you know, that Roath being the number 306 00:15:27,400 --> 00:15:29,920 Speaker 7: one thing that the government's talking about at the moment, 307 00:15:29,920 --> 00:15:33,840 Speaker 7: as well as sort of cutting back on other areas 308 00:15:33,880 --> 00:15:37,760 Speaker 7: as expenditure. But in certain fields, you know, in certain areas, 309 00:15:37,760 --> 00:15:42,480 Speaker 7: the government's really committed to growing the economy and whether then, 310 00:15:42,560 --> 00:15:44,120 Speaker 7: you know, there's going to be a big political debate 311 00:15:44,160 --> 00:15:47,840 Speaker 7: because should we really be growing the economy through the 312 00:15:47,920 --> 00:15:51,080 Speaker 7: creation of a football stadium or should it be through 313 00:15:51,120 --> 00:15:54,360 Speaker 7: the NHS, or should it be you know, industry or whatever. 314 00:15:54,800 --> 00:15:57,040 Speaker 7: Like I say, the debate is kind of just beginning now. 315 00:15:57,240 --> 00:15:59,320 Speaker 4: Well, David, you have to walk me through those right, 316 00:15:59,320 --> 00:16:00,960 Speaker 4: I mean, let me talking back a year when Jim 317 00:16:01,040 --> 00:16:03,840 Speaker 4: Radcliffe spent about a billion and a half dollars to 318 00:16:04,000 --> 00:16:04,880 Speaker 4: buy a third of the team. 319 00:16:04,960 --> 00:16:05,080 Speaker 2: Right. 320 00:16:05,160 --> 00:16:09,320 Speaker 4: I think Forbes just in December place man U fourteenth 321 00:16:09,400 --> 00:16:13,040 Speaker 4: of all global sports franchises at a valuation of six 322 00:16:13,120 --> 00:16:16,640 Speaker 4: point six billion dollars. And yet I look at Manchester. 323 00:16:16,680 --> 00:16:19,000 Speaker 4: It's the fifth largest city in the United Kingdom. I 324 00:16:19,000 --> 00:16:21,880 Speaker 4: mean it's got what six hundred thousand people there, I mean, 325 00:16:21,920 --> 00:16:23,760 Speaker 4: I mean London's got eight point eight million. You know, 326 00:16:23,800 --> 00:16:27,240 Speaker 4: why should the UK government pay anything to build another 327 00:16:27,360 --> 00:16:28,840 Speaker 4: stadium in Manchester? 328 00:16:29,160 --> 00:16:32,000 Speaker 7: You know, in terms of the performance in Manchester United. 329 00:16:32,080 --> 00:16:37,400 Speaker 7: I mean, it's exactly bad. The club hasn't been in 330 00:16:37,440 --> 00:16:41,680 Speaker 7: this kind of situation in the league since nineteen ninety one, 331 00:16:41,920 --> 00:16:46,160 Speaker 7: so before the Premier League League even existed. And it's 332 00:16:46,200 --> 00:16:48,920 Speaker 7: a very very small chance, but they are doing so 333 00:16:49,080 --> 00:16:51,440 Speaker 7: badly that they could be in the relegated at the 334 00:16:51,560 --> 00:16:54,200 Speaker 7: end of the season and in the Championship next season. 335 00:16:54,440 --> 00:16:57,560 Speaker 7: It is a very very tiny chance, but it's not impossible. 336 00:16:58,200 --> 00:17:00,800 Speaker 7: Three teams get relegated at the end of season. They 337 00:17:00,800 --> 00:17:03,560 Speaker 7: are very close to being in that fight, although coins 338 00:17:03,560 --> 00:17:05,480 Speaker 7: wise they would take ahead of lots and them to 339 00:17:05,480 --> 00:17:08,399 Speaker 7: go down. So they're playing really poorly. They've got a 340 00:17:08,400 --> 00:17:12,280 Speaker 7: new manager. He said, it's the worst Manchester United team 341 00:17:12,800 --> 00:17:13,359 Speaker 7: in history. 342 00:17:14,400 --> 00:17:17,080 Speaker 4: All right, to beat up man you, but I mean, 343 00:17:17,280 --> 00:17:18,679 Speaker 4: I guess what I just want to get down to 344 00:17:19,000 --> 00:17:21,000 Speaker 4: is does the city really need another stadium? I mean, 345 00:17:21,040 --> 00:17:23,840 Speaker 4: with all that's going on in the UK economy right now, 346 00:17:24,119 --> 00:17:27,800 Speaker 4: you know, should taxpayer dollars be used for another stadium? 347 00:17:27,800 --> 00:17:30,320 Speaker 4: I mean, what is the benefit back to you, back 348 00:17:30,320 --> 00:17:31,040 Speaker 4: to the economy. 349 00:17:31,160 --> 00:17:33,840 Speaker 7: Yeah, I mean that that is a good question. And 350 00:17:34,040 --> 00:17:35,760 Speaker 7: there were a lot of people that will not be 351 00:17:35,880 --> 00:17:38,280 Speaker 7: wanting the UK government to put a penny into this. 352 00:17:38,880 --> 00:17:41,119 Speaker 7: On the on the other side of the coin, the 353 00:17:41,280 --> 00:17:44,240 Speaker 7: UK economy, as you say, is very focused on London. 354 00:17:44,640 --> 00:17:46,879 Speaker 7: There's been over the past few years there's been all 355 00:17:47,000 --> 00:17:50,960 Speaker 7: kinds of government initiatives to try to encourage growth in 356 00:17:51,080 --> 00:17:53,440 Speaker 7: the northern part of the country, which is which is 357 00:17:53,560 --> 00:17:57,600 Speaker 7: less prosperous. There was a Northern Powerhouse that the Conservatives 358 00:17:57,720 --> 00:18:00,760 Speaker 7: tried to create but it never really got anywhere, and 359 00:18:00,840 --> 00:18:04,200 Speaker 7: it included sort of improving transport links and everything like that. 360 00:18:04,560 --> 00:18:06,840 Speaker 7: And in Manchester you do have two of the most 361 00:18:06,920 --> 00:18:09,159 Speaker 7: famous football clubs in the world. Of course too, you 362 00:18:09,320 --> 00:18:11,880 Speaker 7: have some I would say Manchester City you know would 363 00:18:11,960 --> 00:18:13,480 Speaker 7: count well no. 364 00:18:13,720 --> 00:18:15,280 Speaker 4: But that But that's what I mean. I mean there's 365 00:18:15,280 --> 00:18:17,320 Speaker 4: already two. I guess what I'm just trying to say 366 00:18:17,400 --> 00:18:19,680 Speaker 4: is for a population of six hundred thousand people, right, 367 00:18:19,800 --> 00:18:21,600 Speaker 4: I mean they already have one hundred. I mean that's 368 00:18:21,640 --> 00:18:25,119 Speaker 4: the existing stadium, right, the legendary stadium seats one hundred thousand. 369 00:18:25,240 --> 00:18:27,119 Speaker 4: So I don't know what are they talking about. Are 370 00:18:27,160 --> 00:18:30,920 Speaker 4: they talking about another one hundred thousand you know capacity stadium? 371 00:18:31,000 --> 00:18:33,280 Speaker 4: Is it less than that? I mean, I'm just I'm 372 00:18:33,359 --> 00:18:35,119 Speaker 4: just trying to get the you know the thought process. 373 00:18:35,200 --> 00:18:38,320 Speaker 7: Yeah, no, sure, sure, no. I mean it's an ambitious project. 374 00:18:38,359 --> 00:18:39,879 Speaker 7: I mean it's one hundred thousand, which would be the 375 00:18:39,920 --> 00:18:42,960 Speaker 7: biggest stadium, bigger than Wembley which is sort of eighty 376 00:18:43,040 --> 00:18:47,080 Speaker 7: nine thousands in London because you know, I mean Old 377 00:18:47,119 --> 00:18:50,240 Speaker 7: Trafflor that the current man Bensity United Stadium is already 378 00:18:50,320 --> 00:18:53,480 Speaker 7: the biggest stadium in London. This would be twenty five 379 00:18:53,560 --> 00:18:57,600 Speaker 7: thousand more so another thirty percent on top. But you know, 380 00:18:57,720 --> 00:19:01,119 Speaker 7: Manchester United Jim Rackliffe the other yesterday saying, you know, 381 00:19:01,359 --> 00:19:03,480 Speaker 7: it is the biggest what he thinks, it's the biggest 382 00:19:03,480 --> 00:19:04,879 Speaker 7: club in the world. It is one of the biggest 383 00:19:04,880 --> 00:19:07,320 Speaker 7: clubs in the world. It is capable of attracting one 384 00:19:07,400 --> 00:19:10,560 Speaker 7: hundred thousand and if it does that, and it would 385 00:19:10,600 --> 00:19:13,440 Speaker 7: do that probably unless it falls off a cliff on 386 00:19:13,520 --> 00:19:16,160 Speaker 7: the field, which is doing a good job of looking 387 00:19:16,280 --> 00:19:19,000 Speaker 7: like kids doing at the moment. But even at the moment, 388 00:19:19,080 --> 00:19:21,320 Speaker 7: even at fourteenth in the league, with no prospects of 389 00:19:21,359 --> 00:19:25,040 Speaker 7: Europe next season, no prospect of winning the league, it's 390 00:19:25,080 --> 00:19:29,560 Speaker 7: still getting seventy four thousand every single week, so there's 391 00:19:29,600 --> 00:19:31,199 Speaker 7: no shortage of people that want to go to see 392 00:19:31,320 --> 00:19:35,040 Speaker 7: Manchester United The question is not whether the stadium should 393 00:19:35,040 --> 00:19:37,800 Speaker 7: be built at all, but whether the government should put 394 00:19:37,840 --> 00:19:40,240 Speaker 7: its hand in its pocket and kind of help it 395 00:19:40,359 --> 00:19:42,160 Speaker 7: to be built. That's the question. I guess. 396 00:19:42,480 --> 00:19:44,119 Speaker 2: I know we're running out of time, but I want 397 00:19:44,160 --> 00:19:46,440 Speaker 2: to bring up never mind on the pitch about man 398 00:19:46,600 --> 00:19:51,119 Speaker 2: you off the pitch. Mister Ratcliffe has been cutting jobs. 399 00:19:51,160 --> 00:19:53,440 Speaker 2: He's trying to get cost under control. Can you comment 400 00:19:53,520 --> 00:19:54,200 Speaker 2: briefly about that? 401 00:19:55,000 --> 00:19:57,280 Speaker 7: You know he's been so tough, I mean, like no 402 00:19:57,440 --> 00:20:00,840 Speaker 7: other football owner in England in recent years. He's cut 403 00:20:00,920 --> 00:20:04,840 Speaker 7: the workforce from about eleven hundred by four hundred and fifty. 404 00:20:05,400 --> 00:20:08,399 Speaker 7: He's cut the meals to free lunches, He's cut the 405 00:20:08,480 --> 00:20:11,600 Speaker 7: perks for employees who come down to London to the 406 00:20:11,640 --> 00:20:15,320 Speaker 7: Cup final last year, he cut the Christmas party. He's 407 00:20:15,440 --> 00:20:19,159 Speaker 7: really sort of what he's kind of bringing, carrying over 408 00:20:19,280 --> 00:20:23,719 Speaker 7: from his chemicals industry background, a real savage look at 409 00:20:23,800 --> 00:20:27,399 Speaker 7: costs by nothing else being done before in football. But 410 00:20:27,520 --> 00:20:29,399 Speaker 7: of course at the same time as he's doing that, 411 00:20:29,600 --> 00:20:32,200 Speaker 7: he's losing money on making bad decisions. 412 00:20:32,320 --> 00:20:36,080 Speaker 2: Bloomberg UK Business reporter David hell here, thank you so much, 413 00:20:36,160 --> 00:20:38,520 Speaker 2: sir for joining us on the Bloomberg Business of Sports. 414 00:20:38,920 --> 00:20:42,080 Speaker 2: Our thanks to David Hellier for joining us. He's Bloomberg 415 00:20:42,160 --> 00:20:43,520 Speaker 2: News UK business. 416 00:20:43,280 --> 00:20:46,879 Speaker 3: Reporter and sticking with my sport here Soccer Bloomberg Dallas 417 00:20:46,920 --> 00:20:49,600 Speaker 3: beer chief Julie Fine recently caught up with Dan Hunt. 418 00:20:49,640 --> 00:20:52,040 Speaker 3: He's co owner of the Kansas City Chiefs and is 419 00:20:52,119 --> 00:20:54,119 Speaker 3: president of FC Dallas and he's. 420 00:20:54,040 --> 00:20:56,520 Speaker 4: Making big plans for the FIFA World Cup in Texas. 421 00:20:57,040 --> 00:20:58,560 Speaker 4: That's your a little there conversation. 422 00:21:00,280 --> 00:21:03,800 Speaker 9: News Dallas gets the international broadcast center for World Cup 423 00:21:03,840 --> 00:21:06,720 Speaker 9: in twenty twenty six in downtown Dallas. Okay, Bailey Hutchinson 424 00:21:06,800 --> 00:21:10,320 Speaker 9: Convention Center. Okay, So what exactly does that mean? 425 00:21:11,000 --> 00:21:14,760 Speaker 5: Really, it's the storytelling of the entire World Cup. This 426 00:21:14,920 --> 00:21:18,359 Speaker 5: is the centralized broadcast center. In the twenty twenty two 427 00:21:18,400 --> 00:21:20,440 Speaker 5: World Cup and guitar there were one hundred and eighty 428 00:21:20,520 --> 00:21:25,080 Speaker 5: seven countries that broadcast live from that studio there in Doha. 429 00:21:25,440 --> 00:21:27,480 Speaker 5: And so we have what will be the broadcast center 430 00:21:27,520 --> 00:21:29,879 Speaker 5: for the twenty twenty six World Cup, and I expect 431 00:21:29,920 --> 00:21:31,920 Speaker 5: it to be more than one hundred and eighty seven countries, 432 00:21:31,960 --> 00:21:34,680 Speaker 5: and they're saying as many as five thousand media people 433 00:21:34,800 --> 00:21:38,520 Speaker 5: will be working at the center and broadcasting daily and. 434 00:21:38,560 --> 00:21:40,320 Speaker 9: So financially, I mean it's a boom. 435 00:21:40,359 --> 00:21:41,200 Speaker 7: I mean, let's talk about that. 436 00:21:41,560 --> 00:21:43,679 Speaker 5: Yeah, I mean, you have five thousand people saying here 437 00:21:43,840 --> 00:21:46,040 Speaker 5: this is truly the kickoff to the World Cup. Though 438 00:21:46,400 --> 00:21:48,440 Speaker 5: you have so many people that will show up in 439 00:21:48,600 --> 00:21:52,359 Speaker 5: January or February to start setting up for broadcasts because 440 00:21:52,440 --> 00:21:55,400 Speaker 5: this is the storytelling that goes back to the countries 441 00:21:56,240 --> 00:21:59,200 Speaker 5: for each match, and there are one hundred and four matches. 442 00:21:59,560 --> 00:22:02,440 Speaker 5: The low estimates I've seen are two hundred million dollars 443 00:22:02,520 --> 00:22:05,200 Speaker 5: of economic impact for the Dallas for Worth area, and 444 00:22:05,440 --> 00:22:07,399 Speaker 5: I've heard as high as four hundred million. But you 445 00:22:07,440 --> 00:22:10,560 Speaker 5: can imagine this is tens of thousands of hotel nights. 446 00:22:11,000 --> 00:22:13,320 Speaker 9: And again, this is the second time Dallas has hosted this. 447 00:22:13,400 --> 00:22:14,760 Speaker 9: That's got some family meaning. 448 00:22:14,600 --> 00:22:15,119 Speaker 10: For the Hunts. 449 00:22:15,400 --> 00:22:16,040 Speaker 7: It's a big win. 450 00:22:16,080 --> 00:22:18,440 Speaker 5: Back in nineteen ninety four, we had the International Broadcast 451 00:22:18,480 --> 00:22:20,840 Speaker 5: Center here in Dallas. It was at Fair Park and 452 00:22:20,920 --> 00:22:23,000 Speaker 5: it was something my father Lamar was so proud of. 453 00:22:23,600 --> 00:22:25,440 Speaker 5: He just you know, it was such a win for 454 00:22:25,520 --> 00:22:28,040 Speaker 5: the community. I didn't really understand it at the time, 455 00:22:28,200 --> 00:22:30,359 Speaker 5: but as sort of the evolution has gone on and 456 00:22:30,400 --> 00:22:33,080 Speaker 5: I've gotten to see these broadcast centers and now these 457 00:22:33,160 --> 00:22:36,400 Speaker 5: latest generations, these are like you know, pop up cities, 458 00:22:36,840 --> 00:22:38,760 Speaker 5: bringing thousands and thousands of workers. 459 00:22:39,200 --> 00:22:41,560 Speaker 9: You know, obviously there was some disappointment when it came 460 00:22:41,600 --> 00:22:44,600 Speaker 9: to the final. But again North Texas getting nine games, 461 00:22:44,640 --> 00:22:46,520 Speaker 9: and you know, I want to talk about North Texas. 462 00:22:46,600 --> 00:22:48,920 Speaker 9: It's getting the nine games. It's not just the city 463 00:22:48,960 --> 00:22:51,960 Speaker 9: of Dallas. I mean at and T Stadium is in Arlington. 464 00:22:52,240 --> 00:22:54,159 Speaker 9: They'll be practices at your facility. 465 00:22:54,640 --> 00:22:56,600 Speaker 5: Yes, I mean this whole tournament will be spread out 466 00:22:56,640 --> 00:22:59,080 Speaker 5: throughout the metroplex. We got nine games, which is like 467 00:22:59,240 --> 00:23:02,400 Speaker 5: nine Super Bowl. We have the International Broadcast Center, which 468 00:23:02,480 --> 00:23:07,040 Speaker 5: is five thousand media personalities broadcasting globally. And then we 469 00:23:07,160 --> 00:23:09,280 Speaker 5: have these base camps that are setting up hopefully in 470 00:23:09,400 --> 00:23:11,680 Speaker 5: Frisco at Toyota Stadium will wind up with the base 471 00:23:11,760 --> 00:23:14,640 Speaker 5: camp of a visiting national team. That are multiple ones 472 00:23:14,680 --> 00:23:18,200 Speaker 5: in Dallas, even potentially ones in you know, Mansfield, maybe 473 00:23:18,320 --> 00:23:20,640 Speaker 5: of Fort Worth, and so it's spread out, but also 474 00:23:20,800 --> 00:23:24,720 Speaker 5: hotel rooms all across North Texas. We're in a really 475 00:23:24,840 --> 00:23:28,560 Speaker 5: unique spot in Dallas because Houston has six matches, Dallas 476 00:23:28,640 --> 00:23:31,679 Speaker 5: has nine, Kansas City has six, So somebody can make 477 00:23:31,720 --> 00:23:33,960 Speaker 5: a regional play to see a lot of World Cup 478 00:23:34,040 --> 00:23:35,639 Speaker 5: soccer by staying in North Texas. 479 00:23:36,160 --> 00:23:40,000 Speaker 9: New York Times reporting today that FIFA is considering expanding 480 00:23:40,080 --> 00:23:43,600 Speaker 9: the twenty thirty World Men Cups World's Men Cup to 481 00:23:43,880 --> 00:23:47,400 Speaker 9: sixty four teams. Now twenty twenty six has already expanded 482 00:23:47,440 --> 00:23:49,400 Speaker 9: to forty eight. What's your thinking on sixty four? 483 00:23:49,640 --> 00:23:52,360 Speaker 5: Yeah, look, forty eight with one hundred and four matches 484 00:23:52,440 --> 00:23:55,639 Speaker 5: is unbelievable. The drama that exists around that, But that 485 00:23:55,840 --> 00:23:58,800 Speaker 5: is a really heavy lift. You're talking about sixteen venues 486 00:23:58,840 --> 00:24:03,439 Speaker 5: in North America. You have, you know, Canada, United States, Mexico, 487 00:24:03,640 --> 00:24:05,439 Speaker 5: eleven of those in the United States, but these are 488 00:24:05,560 --> 00:24:09,000 Speaker 5: NFL stadiums. To go to sixty four teams, I think 489 00:24:09,040 --> 00:24:12,320 Speaker 5: would be incredibly difficult. I think we need to see 490 00:24:12,320 --> 00:24:13,399 Speaker 5: how forty eight works. 491 00:24:13,480 --> 00:24:13,720 Speaker 2: First. 492 00:24:13,800 --> 00:24:16,800 Speaker 5: You'll have first time qualifiers that have never actually qualified 493 00:24:16,840 --> 00:24:18,560 Speaker 5: for a World Cup, and you'll have teams that may 494 00:24:18,640 --> 00:24:20,480 Speaker 5: not have been in the tournament for thirty years. And 495 00:24:20,560 --> 00:24:22,919 Speaker 5: I think this is great for the game. It's growing 496 00:24:22,960 --> 00:24:25,639 Speaker 5: the game. But sixty four is a gigantic lead because 497 00:24:25,720 --> 00:24:28,200 Speaker 5: you truly will have a disparity between the top teams 498 00:24:28,240 --> 00:24:30,119 Speaker 5: and the teams that are down near to the bottom 499 00:24:30,200 --> 00:24:31,159 Speaker 5: of that got to. 500 00:24:31,160 --> 00:24:33,000 Speaker 9: Ask, we haven't seen it since the Super Bowl. 501 00:24:33,320 --> 00:24:34,359 Speaker 7: Thoughts on next season? 502 00:24:34,720 --> 00:24:37,560 Speaker 5: Yeah, look, it was difficult. I am so proud of 503 00:24:37,640 --> 00:24:39,920 Speaker 5: what my brother has achieved. The Clark has done a 504 00:24:40,000 --> 00:24:42,639 Speaker 5: fantastic job at the Chiefs. This is truly a dynasty 505 00:24:43,480 --> 00:24:46,160 Speaker 5: and Andy Reid, Brett Veach, Mark Donod and that leadership 506 00:24:46,240 --> 00:24:49,159 Speaker 5: team is first class. And look, I think with the 507 00:24:49,200 --> 00:24:52,639 Speaker 5: salary cap going up, you know, twenty plus million dollars, 508 00:24:52,920 --> 00:24:56,320 Speaker 5: it's allowed a lot of teams to keep their franchises intact. 509 00:24:56,359 --> 00:24:59,000 Speaker 5: I think the free agent market isn't nearly as big 510 00:24:59,080 --> 00:25:01,959 Speaker 5: as people expect. So I'm really optimistic the Chiefs will 511 00:25:02,000 --> 00:25:05,080 Speaker 5: be back. So exciting times in Kansas City, and you know, 512 00:25:05,160 --> 00:25:06,600 Speaker 5: I'm just thankful I get to be part of it. 513 00:25:06,920 --> 00:25:10,360 Speaker 2: That's FC Dallas, President at North Texas FIFA World Cup 514 00:25:10,640 --> 00:25:16,240 Speaker 2: Organizing Committee co chair Dan speaking with Bloomberg Dallas Bureau 515 00:25:16,320 --> 00:25:17,560 Speaker 2: chief Julie Fine. 516 00:25:17,920 --> 00:25:18,040 Speaker 3: Up. 517 00:25:18,119 --> 00:25:21,879 Speaker 2: Next, we turned to the world of insuring athletes for 518 00:25:22,080 --> 00:25:25,600 Speaker 2: my colleagues Damien Sassauer and Vanessa Perdomo. I'm Michael Barr. 519 00:25:26,080 --> 00:25:29,199 Speaker 2: You are listening to the Bloomberg Business of Sports from 520 00:25:29,240 --> 00:25:31,240 Speaker 2: Bloomberg Radio around the world. 521 00:25:46,320 --> 00:25:48,800 Speaker 10: Get the news you need at the click Gogle button 522 00:25:48,920 --> 00:25:52,439 Speaker 10: inside your car. The new Bloomberg Business apps now featuring 523 00:25:52,480 --> 00:25:55,600 Speaker 10: Apple Car Play and Android Auto. All your favorite Bloomberg 524 00:25:55,720 --> 00:25:59,119 Speaker 10: Radio shows plus news at your fingertips. Downloaded free in 525 00:25:59,200 --> 00:26:01,080 Speaker 10: the Apple App Store or on Google Play. 526 00:26:02,200 --> 00:26:06,160 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 527 00:26:07,280 --> 00:26:09,760 Speaker 2: Thanks for joining us on the Bloomberg Business of Sports, 528 00:26:09,800 --> 00:26:11,840 Speaker 2: where we explore the big money issues in the world 529 00:26:11,880 --> 00:26:15,400 Speaker 2: of sports. Michael Barr, along with my colleagues Damian Sasauer 530 00:26:15,480 --> 00:26:19,240 Speaker 2: and Vanessa Pernomo Scarlett Fuo, is on assignment. As the 531 00:26:19,359 --> 00:26:23,200 Speaker 2: sports world grows, so does the risk, which is where 532 00:26:23,359 --> 00:26:28,040 Speaker 2: insurance comes in. Vince Tizzio is President and CEO of 533 00:26:28,280 --> 00:26:31,280 Speaker 2: Access Capital. He's here now to take us through the 534 00:26:31,359 --> 00:26:37,440 Speaker 2: multi billion dollar business of ensuring professional and college athletes, teams, 535 00:26:37,800 --> 00:26:42,640 Speaker 2: and leagues against injury and other big risks. Vince, Welcome 536 00:26:42,760 --> 00:26:44,400 Speaker 2: to the Bloomberg Business of Sports. 537 00:26:44,920 --> 00:26:45,919 Speaker 6: Greaty to do with you all. 538 00:26:46,560 --> 00:26:49,399 Speaker 2: I am sure that this is a tough thing to 539 00:26:49,480 --> 00:26:53,359 Speaker 2: deal with because it's one thing to ensure a baseball player, 540 00:26:53,480 --> 00:26:56,200 Speaker 2: even a football player. How in the world do you 541 00:26:56,480 --> 00:27:00,920 Speaker 2: ensure an auto racing driver. Because I'm there's got to 542 00:27:00,920 --> 00:27:03,399 Speaker 2: be a different risk in there somewhere, no. 543 00:27:03,600 --> 00:27:05,920 Speaker 6: Doubt, no doubt. You know, there are a number of 544 00:27:06,400 --> 00:27:10,520 Speaker 6: differentiated factors that we account for depending upon the type 545 00:27:10,560 --> 00:27:14,520 Speaker 6: of athlete, the type of contact sport that they're engaged in, 546 00:27:14,640 --> 00:27:17,040 Speaker 6: and so there's a whole bunch of risk factors that 547 00:27:17,200 --> 00:27:20,359 Speaker 6: we look at, including the health and welfare of the 548 00:27:20,480 --> 00:27:23,680 Speaker 6: athlete themselves and the kind of measures that they take 549 00:27:24,000 --> 00:27:26,320 Speaker 6: to keep them in good stead. But it is certainly 550 00:27:26,760 --> 00:27:29,280 Speaker 6: a complicated but I have to adhit a really fun 551 00:27:29,400 --> 00:27:30,240 Speaker 6: part of our business. 552 00:27:31,160 --> 00:27:31,320 Speaker 7: You know. 553 00:27:31,400 --> 00:27:33,200 Speaker 3: One of the things I think of, Vince Whenai the 554 00:27:33,280 --> 00:27:34,840 Speaker 3: first thing I think of when I hear of like 555 00:27:35,240 --> 00:27:39,240 Speaker 3: ensuring in sports entities and things is looking at something 556 00:27:39,359 --> 00:27:42,639 Speaker 3: like that happened to hard Rock Stadium during the Copa 557 00:27:42,720 --> 00:27:46,280 Speaker 3: America right where fans are like destroying the stadium, They're 558 00:27:46,320 --> 00:27:50,119 Speaker 3: tearing it apart, and you have to really plan for 559 00:27:50,200 --> 00:27:52,400 Speaker 3: something like that. That's the first thing that popped into 560 00:27:52,440 --> 00:27:54,320 Speaker 3: my mind. How do you plan for risks like that? 561 00:27:54,440 --> 00:27:57,119 Speaker 3: What are those unique factors that a sports entity has 562 00:27:57,240 --> 00:27:57,639 Speaker 3: to deal with? 563 00:27:58,680 --> 00:28:01,800 Speaker 6: Well, Vanessa, it's a great example of the breath of 564 00:28:01,880 --> 00:28:05,119 Speaker 6: the kind of insurance products that we deliver to not 565 00:28:05,280 --> 00:28:08,639 Speaker 6: only the industry and the athletes, but certainly the owners 566 00:28:08,680 --> 00:28:12,280 Speaker 6: of these sports teams the stadiums that they occupy. And 567 00:28:12,400 --> 00:28:16,199 Speaker 6: we call this the risk management practices of those entities, Right, 568 00:28:16,600 --> 00:28:20,280 Speaker 6: how do they protect their clients? What measures do they 569 00:28:20,359 --> 00:28:23,879 Speaker 6: put in place in ensuring that the stadium is constructed 570 00:28:24,040 --> 00:28:27,720 Speaker 6: in a stable way, it has risk mitigating factors on 571 00:28:28,040 --> 00:28:31,520 Speaker 6: egress ingress and these are all into the recipe of 572 00:28:31,600 --> 00:28:34,159 Speaker 6: how we assess the risk quality of anything that we 573 00:28:34,280 --> 00:28:37,480 Speaker 6: put our capital to. And so it's complicated, but there's 574 00:28:37,520 --> 00:28:41,000 Speaker 6: a pretty good playbook that allows us to gauge sort 575 00:28:41,000 --> 00:28:43,120 Speaker 6: of the propensity, as we call it a loss. 576 00:28:43,320 --> 00:28:46,040 Speaker 4: Vince, you're the president and chief executive officer for Access 577 00:28:46,040 --> 00:28:48,280 Speaker 4: Capital Holdings. For our audience, that's a seven point three 578 00:28:48,360 --> 00:28:51,000 Speaker 4: billion dollar market cap publicly traded on the New York 579 00:28:51,000 --> 00:28:53,160 Speaker 4: Stock Exchange. Stock price by the way, Michael bar up 580 00:28:53,240 --> 00:28:56,560 Speaker 4: sixty four percent last year, just you know, for everyone listening. 581 00:28:57,120 --> 00:28:59,120 Speaker 4: But Vince, I have to ask you this man, you're 582 00:28:59,120 --> 00:29:01,440 Speaker 4: out in Bermuda, is mid ocean or Tucker's point? I mean, 583 00:29:01,480 --> 00:29:04,440 Speaker 4: what's the better golf course? But seriously, let's talk about 584 00:29:04,600 --> 00:29:07,240 Speaker 4: specialty insurance for a minute, because you're on air with 585 00:29:07,360 --> 00:29:10,920 Speaker 4: us for the Bloomberg Business Sports talking about ensuring franchises, 586 00:29:11,360 --> 00:29:14,920 Speaker 4: you know, ensuring athletes, ensuring a range of different sports 587 00:29:15,000 --> 00:29:18,400 Speaker 4: related kind of I guess damages or injuries. But you know, 588 00:29:18,520 --> 00:29:20,760 Speaker 4: my goodness, what a big space it is. So you know, 589 00:29:20,880 --> 00:29:23,040 Speaker 4: talk to us about the focus Access has on this 590 00:29:23,200 --> 00:29:25,760 Speaker 4: segment of the market. How's it driving the business forward. 591 00:29:26,640 --> 00:29:30,200 Speaker 6: So it's a multi billion dollar opportunity for Access to 592 00:29:30,320 --> 00:29:34,840 Speaker 6: pursue right between the athletes themselves, the owners of the 593 00:29:34,920 --> 00:29:39,360 Speaker 6: sports teams, the facilities that engage where the sports are 594 00:29:39,400 --> 00:29:43,120 Speaker 6: actually held. So firstly, it's a big market. Secondly, there's 595 00:29:43,160 --> 00:29:46,240 Speaker 6: a number of insurance products that are sought by those 596 00:29:46,320 --> 00:29:49,880 Speaker 6: respective entities, and we had access provide the full breadth 597 00:29:49,960 --> 00:29:52,520 Speaker 6: of coverages. Now, we we do have a sweet spot, right. 598 00:29:52,640 --> 00:29:54,720 Speaker 6: We think mid Ocean, by the way, is the direct 599 00:29:54,760 --> 00:29:55,960 Speaker 6: answer to your question. 600 00:29:55,720 --> 00:29:57,840 Speaker 1: About sweet spot. 601 00:29:58,280 --> 00:30:01,400 Speaker 6: The sweet spot for us is really the disability right 602 00:30:01,800 --> 00:30:06,600 Speaker 6: making certain that these life altering injuries are prevented to 603 00:30:06,720 --> 00:30:09,720 Speaker 6: the degree they can be, but also being there when 604 00:30:09,760 --> 00:30:12,840 Speaker 6: it really matters and providing insurance for that event. And 605 00:30:13,000 --> 00:30:17,240 Speaker 6: so that's the sweet spot that we've dedicated ourselves to. Interestingly, 606 00:30:17,680 --> 00:30:21,080 Speaker 6: we underwrit we bring this product to our lloyd syndicate 607 00:30:21,680 --> 00:30:24,000 Speaker 6: right out of Lloyd's of London in England. So it's 608 00:30:24,040 --> 00:30:27,560 Speaker 6: a really historic business for us. It's a vast marketplace 609 00:30:27,880 --> 00:30:31,560 Speaker 6: and we think specialization is the key to our underwriting success. 610 00:30:31,960 --> 00:30:36,640 Speaker 6: The improvement in safety protocols and the increasing focus on 611 00:30:36,720 --> 00:30:39,080 Speaker 6: the variety of sports. You know, you don't have to 612 00:30:39,120 --> 00:30:41,480 Speaker 6: look much farther than the Olympics and the new added 613 00:30:41,520 --> 00:30:45,640 Speaker 6: sports that they brought into the regiment at the Olympic events. 614 00:30:46,080 --> 00:30:50,240 Speaker 6: But also the continued ability to deal with how these 615 00:30:50,880 --> 00:30:53,840 Speaker 6: athletes are dealing with the increasing pressure, whether it takes 616 00:30:53,920 --> 00:30:56,840 Speaker 6: the fold of their low time, the increasing number of 617 00:30:56,920 --> 00:31:00,840 Speaker 6: events that they're participating in, the new technologies that helps 618 00:31:00,880 --> 00:31:05,200 Speaker 6: them measure the efficacy of how they're training, protecting them 619 00:31:05,240 --> 00:31:08,240 Speaker 6: in the welfare while engaged the club itself. 620 00:31:08,320 --> 00:31:10,440 Speaker 2: And I'm going to give a classic example, and we 621 00:31:10,520 --> 00:31:14,600 Speaker 2: were talking about this off air before, about Garrett Cole 622 00:31:15,080 --> 00:31:18,640 Speaker 2: now the Yankees. They sign him four year contract, one 623 00:31:18,720 --> 00:31:22,760 Speaker 2: hundred and forty four million dollars and as my father 624 00:31:22,960 --> 00:31:24,520 Speaker 2: used to say, we didn't even get out of the 625 00:31:24,560 --> 00:31:27,800 Speaker 2: get go, and then all of a sudden he has 626 00:31:28,600 --> 00:31:32,640 Speaker 2: Tommy John surgery over for the season. And by the way, 627 00:31:33,080 --> 00:31:35,560 Speaker 2: Garrett cole get well, because we don't want to see 628 00:31:35,560 --> 00:31:39,200 Speaker 2: anything like that. But I mean it's I mean we're 629 00:31:39,280 --> 00:31:42,400 Speaker 2: talking now nine years it was three hundred and twenty 630 00:31:42,440 --> 00:31:45,920 Speaker 2: four million. I mean, this thing, what do the Yankees do? 631 00:31:46,040 --> 00:31:47,480 Speaker 2: Are they insured for something like this? 632 00:31:47,760 --> 00:31:50,840 Speaker 6: They certainly we wouldn't speak about a specific climb, but 633 00:31:50,920 --> 00:31:54,320 Speaker 6: if you just use that illustration, right, that is exactly 634 00:31:54,400 --> 00:31:57,320 Speaker 6: what they come to the insurance marketplace to help them 635 00:31:57,760 --> 00:32:01,600 Speaker 6: in that unfortunate event. And so that is an example 636 00:32:02,120 --> 00:32:06,440 Speaker 6: of why sports teams and frankly the individual athlete themselves 637 00:32:06,920 --> 00:32:11,200 Speaker 6: seeks insurance from markets like Access Capital. There's no doubt 638 00:32:11,840 --> 00:32:14,840 Speaker 6: I believe that was Michael. That's a perfect illustration of 639 00:32:15,280 --> 00:32:19,960 Speaker 6: what the sports insurance can provide to both athletes and 640 00:32:20,040 --> 00:32:23,400 Speaker 6: the sports club and the owners of those teams respectively. 641 00:32:24,280 --> 00:32:27,400 Speaker 3: One of the funny ish things I want to say 642 00:32:27,600 --> 00:32:30,800 Speaker 3: about the you know we hear that athletes do is 643 00:32:31,320 --> 00:32:34,760 Speaker 3: they ensure their body parts, right. You know, you have 644 00:32:34,880 --> 00:32:38,280 Speaker 3: soccer players insuring their legs, and I mean I've heard 645 00:32:38,320 --> 00:32:41,000 Speaker 3: of you know, like I mean, celebrities insure their hair 646 00:32:41,240 --> 00:32:44,440 Speaker 3: or whatever it is. Troy Pamalu was reportedly right that 647 00:32:44,520 --> 00:32:47,480 Speaker 3: he insured his hair a long time ago. How do 648 00:32:47,680 --> 00:32:51,560 Speaker 3: things like that really, you know, work for a Messi 649 00:32:51,680 --> 00:32:53,240 Speaker 3: who's insuring his legs. 650 00:32:54,360 --> 00:32:58,160 Speaker 6: Yeah, well, it is precisely an approach that we in 651 00:32:58,240 --> 00:33:01,360 Speaker 6: the insurance industry have to find solutions. You know, how 652 00:33:01,400 --> 00:33:04,400 Speaker 6: do we assess whether or not Lionel Messi will break 653 00:33:04,440 --> 00:33:07,200 Speaker 6: his leg and whether or not he's taken the safety 654 00:33:07,280 --> 00:33:10,880 Speaker 6: protocols to ensure that his physical fitness is up to speed, 655 00:33:11,000 --> 00:33:14,720 Speaker 6: that his metabolism and his welfare and his heart rate 656 00:33:14,720 --> 00:33:17,480 Speaker 6: and all of that is assured in order for us 657 00:33:17,560 --> 00:33:20,960 Speaker 6: to make the statistical bet that he's less or more 658 00:33:21,200 --> 00:33:25,040 Speaker 6: likely to suffer such a sustainable injury. That goes into 659 00:33:25,280 --> 00:33:28,000 Speaker 6: some of the actual real approach that we take in 660 00:33:28,200 --> 00:33:32,000 Speaker 6: underwriting those kinds of risks, and it's it is completely 661 00:33:32,120 --> 00:33:35,520 Speaker 6: common for athletes to ensure the key body part that 662 00:33:35,800 --> 00:33:39,800 Speaker 6: makes their special sauce come to life on their respective fields. 663 00:33:40,200 --> 00:33:41,840 Speaker 4: S Evince, do you have like a you know, team 664 00:33:41,880 --> 00:33:44,560 Speaker 4: of insurance appraisers following Leo Messi around to make sure 665 00:33:44,600 --> 00:33:49,400 Speaker 4: he's you know, not riding motorcycles and you know, skydiving. 666 00:33:49,480 --> 00:33:53,360 Speaker 6: You know, in the event that there's a loss, you 667 00:33:53,400 --> 00:33:55,760 Speaker 6: could be assured that there's going to be some discovery 668 00:33:56,240 --> 00:33:58,720 Speaker 6: of making certain that what was represented on behalf of 669 00:33:58,800 --> 00:34:02,000 Speaker 6: the athlete is certainly being shown in their habits. There's 670 00:34:02,040 --> 00:34:02,840 Speaker 6: no doubt about it. 671 00:34:03,040 --> 00:34:04,840 Speaker 4: Well, you know, I mean, I just I find you're 672 00:34:05,040 --> 00:34:07,040 Speaker 4: this segment of the business so fascinating, you know, and 673 00:34:07,080 --> 00:34:08,879 Speaker 4: you're the first guest that we've had to really talk 674 00:34:08,920 --> 00:34:11,080 Speaker 4: about the insurance side of the business of sports. And 675 00:34:11,200 --> 00:34:13,359 Speaker 4: so you know, from what I know about insurance, it's 676 00:34:13,360 --> 00:34:15,440 Speaker 4: a business of premiums. And what you're talking about here, 677 00:34:15,480 --> 00:34:18,319 Speaker 4: you're talking about sports teams and athletes, all of whom 678 00:34:18,640 --> 00:34:20,960 Speaker 4: have a lot of money. They're good counterparties, They're gonna 679 00:34:20,960 --> 00:34:23,160 Speaker 4: pay high premiums. And it just to me seems like 680 00:34:23,280 --> 00:34:25,520 Speaker 4: this little segment of the market that not a lot 681 00:34:25,520 --> 00:34:27,719 Speaker 4: of people are talking about. You know, everyone's you know, 682 00:34:27,800 --> 00:34:31,520 Speaker 4: looking at the wildfires in la you know, Vanessa and saying, oh, 683 00:34:31,560 --> 00:34:34,440 Speaker 4: all these wealthy Hollywood producers could afford those homes, but 684 00:34:34,719 --> 00:34:37,640 Speaker 4: they never took out the insurance right because the premiums 685 00:34:37,680 --> 00:34:39,799 Speaker 4: were too high. So, you know, so talk to us, Vince. 686 00:34:39,800 --> 00:34:41,680 Speaker 4: I mean, where is the middle ground here? I mean, 687 00:34:41,719 --> 00:34:45,320 Speaker 4: are you finding a lot of clients who are educated 688 00:34:45,400 --> 00:34:47,520 Speaker 4: on the topic and are willing to pay these premiums 689 00:34:47,600 --> 00:34:51,640 Speaker 4: because they're pretty rich, I imagine. But I mean, or 690 00:34:51,760 --> 00:34:53,440 Speaker 4: is it a sales call? I mean, do you have 691 00:34:53,520 --> 00:34:55,279 Speaker 4: to kind of explain to them what you're doing and 692 00:34:55,360 --> 00:34:57,080 Speaker 4: why it justifies the cost. 693 00:34:57,800 --> 00:35:01,640 Speaker 6: You know, today it's a much more of conversation than 694 00:35:01,680 --> 00:35:04,360 Speaker 6: it's ever been. If you just look at your example, 695 00:35:04,440 --> 00:35:08,200 Speaker 6: you have la wildfires, you have hurricanes, you have cyclones, 696 00:35:08,239 --> 00:35:10,600 Speaker 6: you have floods, and you have athletes that are being 697 00:35:10,760 --> 00:35:16,120 Speaker 6: taxed with increasing participation, greater focused because of social media's 698 00:35:16,160 --> 00:35:21,040 Speaker 6: ability to exact information, awareness of their effectiveness, the statistics 699 00:35:21,280 --> 00:35:23,360 Speaker 6: that are being run on all of the range of 700 00:35:23,440 --> 00:35:27,280 Speaker 6: athletes out there, the knowledge and awareness of bringing insurance 701 00:35:27,280 --> 00:35:30,880 Speaker 6: as a remedy for whatever they're describing what they're solving for. 702 00:35:31,120 --> 00:35:33,520 Speaker 6: It could be the individual athlete, it could be the 703 00:35:33,600 --> 00:35:37,640 Speaker 6: sports owner, could be those god awful events that occur 704 00:35:37,760 --> 00:35:40,320 Speaker 6: in stadiums where there are people being run over or 705 00:35:40,440 --> 00:35:43,480 Speaker 6: other events of people hurting themselves. This is the role 706 00:35:43,560 --> 00:35:46,040 Speaker 6: and purpose of insurance, and I have to admit it's 707 00:35:46,120 --> 00:35:50,680 Speaker 6: increasingly a conversation as opposed to a sales pitch. Everyone 708 00:35:50,800 --> 00:35:55,080 Speaker 6: has seen what liability insurance costs are for commercial entities 709 00:35:55,400 --> 00:35:58,840 Speaker 6: in the United States, that same concept of risk and 710 00:35:58,960 --> 00:36:02,800 Speaker 6: reward is is a conversation and all facets of insurance, 711 00:36:03,080 --> 00:36:07,000 Speaker 6: including the sports arena. So it's dynamic. It's certainly a 712 00:36:07,200 --> 00:36:10,400 Speaker 6: topical conversation and one that we're happy to have a 713 00:36:10,480 --> 00:36:12,840 Speaker 6: voice and roll to play in to bring up. 714 00:36:12,960 --> 00:36:17,520 Speaker 2: Obviously we're talking about pro athletes here for the most part, 715 00:36:17,640 --> 00:36:22,960 Speaker 2: but I'm sure with nil out there college athletes, is 716 00:36:23,080 --> 00:36:25,160 Speaker 2: there a market out there for them? Also? 717 00:36:26,239 --> 00:36:30,279 Speaker 6: They're sure is And it's a complicated market if you 718 00:36:30,360 --> 00:36:33,560 Speaker 6: think about it, Michael, because you have the introduction of 719 00:36:34,400 --> 00:36:38,360 Speaker 6: a number of breach of contract opportunities that these collegiate 720 00:36:38,400 --> 00:36:42,040 Speaker 6: athletes want to protect themselves, their image, their reputation, and 721 00:36:42,200 --> 00:36:47,520 Speaker 6: so their agents involvement in protecting that athlete is incredibly important. 722 00:36:47,600 --> 00:36:51,000 Speaker 6: And you know, it's an area where there's established law 723 00:36:51,120 --> 00:36:54,240 Speaker 6: to draw from, but there's also different unique fact patterns 724 00:36:54,280 --> 00:36:57,000 Speaker 6: that can arise in terms of how they fulfill The 725 00:36:57,080 --> 00:37:01,200 Speaker 6: athlete fulfills his or her obligation to the university that 726 00:37:01,239 --> 00:37:03,960 Speaker 6: they're playing with, and so it's an added dynamic. But 727 00:37:04,080 --> 00:37:06,759 Speaker 6: it goes to one of the earlier questions just on 728 00:37:06,880 --> 00:37:10,200 Speaker 6: the range of how insurance can play a role in 729 00:37:10,360 --> 00:37:13,240 Speaker 6: this ever growing industry of sports. 730 00:37:13,400 --> 00:37:15,719 Speaker 2: I know if you looked at me now, you would say, 731 00:37:15,840 --> 00:37:19,279 Speaker 2: like you used to excel at some sport. Yeah, I 732 00:37:19,960 --> 00:37:23,640 Speaker 2: really was pretty good at bowling. I averaged like about 733 00:37:23,719 --> 00:37:28,160 Speaker 2: two twelve were in at my peak. And yes, I 734 00:37:28,360 --> 00:37:34,400 Speaker 2: see that the insurance ring. See there's another story, but 735 00:37:34,480 --> 00:37:35,840 Speaker 2: I know we're running out of it. I shot at 736 00:37:35,840 --> 00:37:39,240 Speaker 2: two ninety nine one time and it was a solid 737 00:37:39,360 --> 00:37:46,399 Speaker 2: nine pin. Man, I was vincent. Thank you so much, 738 00:37:46,520 --> 00:37:49,120 Speaker 2: sir for joining us on the Bloomberg Business of Sports. 739 00:37:49,200 --> 00:37:50,239 Speaker 2: We really do appreciate it. 740 00:37:50,840 --> 00:37:52,600 Speaker 6: Thanks for having me our. 741 00:37:52,560 --> 00:37:55,239 Speaker 2: Thanks to Vince Tizzio for joining us. He is the 742 00:37:55,320 --> 00:38:01,279 Speaker 2: president and CEO of Access Capital. And most importantly, thank you, 743 00:38:01,880 --> 00:38:06,120 Speaker 2: wile you for joining us. For my colleagues Damian Sassauer 744 00:38:06,200 --> 00:38:09,080 Speaker 2: and Vanessa Berdomo, I'm Michael Barr. Tune in again next 745 00:38:09,120 --> 00:38:12,080 Speaker 2: week for the latest on the stories moving big old 746 00:38:12,200 --> 00:38:14,200 Speaker 2: money in the world of sports, and don't forget to 747 00:38:14,280 --> 00:38:18,440 Speaker 2: catch our podcast and all your podcast platforms. You're listening 748 00:38:18,600 --> 00:38:22,080 Speaker 2: to The Bloomberg Business of Sports from Bloomberger Radio around 749 00:38:22,160 --> 00:38:22,640 Speaker 2: the world.