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 --> 00:00:19,160 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 --> 00:00:24,240 Speaker 4: all levels of the company. I think we're in bolden 9 00:00:24,360 --> 00:00:26,680 Speaker 4: years for the NFL and college football. 10 00:00:26,720 --> 00:00:29,760 Speaker 5: Our demographic reach has continued to explaide. 11 00:00:29,880 --> 00:00:33,520 Speaker 6: This is going to be really unlocking the streaming platform 12 00:00:33,600 --> 00:00:37,080 Speaker 6: for sports fans. Sports valuations arising, We'll see when they peak. 13 00:00:37,159 --> 00:00:39,680 Speaker 3: You don't have to be the best in your sport 14 00:00:39,760 --> 00:00:42,680 Speaker 3: to make a whole ton of money. 15 00:00:42,840 --> 00:00:46,480 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 16 00:00:47,320 --> 00:00:49,800 Speaker 7: This is the Bloomberg Business of Sports, where we explore 17 00:00:49,800 --> 00:00:51,559 Speaker 7: the big money issues in the world of sports. I'm 18 00:00:51,600 --> 00:00:55,120 Speaker 7: Michael Barr, along with my colleagues Damian Tasauur and Vanessa Perdomo. 19 00:00:55,160 --> 00:00:57,480 Speaker 7: Scarlet Flo would join us later in the show. Coming up, 20 00:00:57,520 --> 00:00:59,800 Speaker 7: March Madness rolls on. We get the latest research from 21 00:00:59,840 --> 00:01:02,840 Speaker 7: our friends at Bloomberg Intelligence about the value of the 22 00:01:02,920 --> 00:01:06,679 Speaker 7: NCAA tournament is providing the network's carrying it plus we 23 00:01:06,800 --> 00:01:09,640 Speaker 7: check in with an old friend of the show, Impact 24 00:01:09,680 --> 00:01:13,800 Speaker 7: ex Sports Group chairman and CEO, Xavier Gutierras, for his 25 00:01:13,959 --> 00:01:16,960 Speaker 7: thoughts on some of the latest headlines in sports investing 26 00:01:17,280 --> 00:01:19,679 Speaker 7: and private equities growth in sports. 27 00:01:19,800 --> 00:01:21,920 Speaker 8: There are limitations when you invest in a team in 28 00:01:22,000 --> 00:01:25,400 Speaker 8: terms of the percentage of ownership, the structure, the debt. 29 00:01:25,880 --> 00:01:28,759 Speaker 8: When you're looking at these opportunities for the hold code, 30 00:01:28,800 --> 00:01:31,640 Speaker 8: not the team co a lot more flexibility, a lot 31 00:01:31,680 --> 00:01:35,120 Speaker 8: more exit opportunities, a lot more structuring. And so I 32 00:01:35,280 --> 00:01:39,480 Speaker 8: believe that private equity is looking at that opportunity and 33 00:01:39,600 --> 00:01:43,640 Speaker 8: that valuation increase, and I think we're barely at the 34 00:01:43,640 --> 00:01:44,080 Speaker 8: first inn. 35 00:01:44,400 --> 00:01:46,760 Speaker 7: All that is straight ahead on the Bloomberg business of sports. 36 00:01:46,800 --> 00:01:50,840 Speaker 7: But first, baseball is officially back. This weekend is the 37 00:01:50,880 --> 00:01:54,000 Speaker 7: first full weekend of baseball, and here now to talk 38 00:01:54,040 --> 00:01:57,320 Speaker 7: about all the big storylines heading into the year is 39 00:01:57,600 --> 00:02:03,240 Speaker 7: MLB Network's lead studiost Harold Reynolds. First of all, congratulations 40 00:02:03,680 --> 00:02:07,640 Speaker 7: on your new time slot five pm for your new show. 41 00:02:07,720 --> 00:02:08,080 Speaker 9: Here we go. 42 00:02:08,440 --> 00:02:10,680 Speaker 2: Yeah, no, thank you guys, thanks for having me. This 43 00:02:10,760 --> 00:02:14,800 Speaker 2: is like an annual yearly thing. I love it. But 44 00:02:14,880 --> 00:02:19,440 Speaker 2: the new studio time five o'clock, Greg amsinger Dan Pleazach myself. 45 00:02:19,880 --> 00:02:22,800 Speaker 2: You know the uniqueness of it is we're usually on 46 00:02:22,960 --> 00:02:26,040 Speaker 2: late at night and we're reacting in and out of 47 00:02:26,080 --> 00:02:29,320 Speaker 2: games with live lookings, and that's the bulk of that 48 00:02:29,440 --> 00:02:33,160 Speaker 2: show at late night. This year, from five to seven, 49 00:02:33,200 --> 00:02:35,120 Speaker 2: we'll be able to have a lot more scripted stuff 50 00:02:35,160 --> 00:02:36,919 Speaker 2: because there won't be a lot of games going at 51 00:02:36,919 --> 00:02:40,560 Speaker 2: that time. So we're excited to have people know exactly 52 00:02:40,680 --> 00:02:42,760 Speaker 2: where we are and when we are every day when 53 00:02:42,760 --> 00:02:45,480 Speaker 2: we'll be on, and we can craft a lot of 54 00:02:45,480 --> 00:02:47,639 Speaker 2: things directly to the sport. So it's gonna be a 55 00:02:47,680 --> 00:02:48,079 Speaker 2: lot of fun. 56 00:02:48,400 --> 00:02:50,560 Speaker 5: Well, Harold, you were just in Tokyo, and I guess 57 00:02:50,600 --> 00:02:52,480 Speaker 5: I have to ask the elephant in the room the 58 00:02:52,560 --> 00:02:55,080 Speaker 5: question here, will the Los Angeles Dodgers go one hundred 59 00:02:55,120 --> 00:02:57,280 Speaker 5: and sixty two and zero this season? I mean, listen 60 00:02:57,280 --> 00:02:59,600 Speaker 5: to me, the record of one hundred and sixteen regular 61 00:02:59,639 --> 00:03:02,480 Speaker 5: season wins. I think, what's at the nineteen oh six Cubs, 62 00:03:02,560 --> 00:03:05,240 Speaker 5: the two thousand and one Mariners. You gotta believe that, 63 00:03:05,440 --> 00:03:07,040 Speaker 5: you know, there's a real chance here that they can 64 00:03:07,040 --> 00:03:07,400 Speaker 5: break that. 65 00:03:07,520 --> 00:03:10,320 Speaker 2: Now, there's a real chance they're gonna they can pass 66 00:03:10,400 --> 00:03:12,840 Speaker 2: that number, no doubt, and one sixty two if they 67 00:03:12,880 --> 00:03:15,239 Speaker 2: play every other week, Yeah, they can do that. It's 68 00:03:15,240 --> 00:03:19,200 Speaker 2: like high school schedule, right. But no, I'll tell you what. 69 00:03:19,480 --> 00:03:22,120 Speaker 2: When you said the word let's talk about Japan, I'm 70 00:03:22,120 --> 00:03:27,560 Speaker 2: in that statement. Unbelievable. I hadn't been there since really 71 00:03:28,320 --> 00:03:30,320 Speaker 2: nineteen eighty eight when I went and played for the 72 00:03:30,400 --> 00:03:34,920 Speaker 2: US All Star Series over there, and it was just spectacular, 73 00:03:35,560 --> 00:03:41,520 Speaker 2: the fan engagement. Otani obviously with Otani, Yamamoto and Sasaki 74 00:03:41,560 --> 00:03:44,240 Speaker 2: on the Dodgers, and then I Inaga with the Cubs 75 00:03:44,520 --> 00:03:48,880 Speaker 2: and just all the five Japanese players, so they were 76 00:03:48,960 --> 00:03:53,040 Speaker 2: crazy about it in their country, but they love baseball. 77 00:03:53,240 --> 00:03:56,920 Speaker 2: It was so fun, so fun. Last thing, and I'll 78 00:03:56,960 --> 00:03:59,320 Speaker 2: let you guys get back at it. I've never seen this. 79 00:03:59,520 --> 00:04:02,560 Speaker 2: I saw a little bit when Aaron Judge was chasing 80 00:04:02,640 --> 00:04:05,480 Speaker 2: sixty two when I'm getting ready to tell you, but 81 00:04:05,720 --> 00:04:08,160 Speaker 2: every time show Hailed Tany came to the plate, he 82 00:04:08,160 --> 00:04:11,280 Speaker 2: could step his toe out the dugout. That went crazy, okay, 83 00:04:11,600 --> 00:04:13,600 Speaker 2: But as soon as he got in the batter's box 84 00:04:14,000 --> 00:04:17,480 Speaker 2: and the pitcher got his sign shook no, yes, okay, 85 00:04:17,520 --> 00:04:20,560 Speaker 2: here's my pitch. As soon as he got ready to deliver, 86 00:04:21,120 --> 00:04:25,920 Speaker 2: the place was dead. Silent, like fifty thousand whispers. It 87 00:04:26,000 --> 00:04:29,720 Speaker 2: was incredible. Everybody had their cameras and they didn't say 88 00:04:29,720 --> 00:04:31,560 Speaker 2: a word, and then he foul the ball off and 89 00:04:31,560 --> 00:04:37,440 Speaker 2: they go. It was incredible. If you're sitting at home 90 00:04:37,480 --> 00:04:39,760 Speaker 2: watching on TV, you're hitting your clicker, like the the 91 00:04:39,839 --> 00:04:42,800 Speaker 2: volume Braake was on here crazy. 92 00:04:42,839 --> 00:04:43,400 Speaker 10: Well, we got to. 93 00:04:43,400 --> 00:04:45,440 Speaker 6: Talk about that, hare. I mean, it's so interesting. 94 00:04:45,480 --> 00:04:48,200 Speaker 10: Obviously with Otani, obviously we know he's, you know, the 95 00:04:48,240 --> 00:04:50,800 Speaker 10: best show in the game, and it's really we're seeing 96 00:04:50,800 --> 00:04:53,760 Speaker 10: something we haven't seen before. And he's supposedly supposed to 97 00:04:53,760 --> 00:04:55,919 Speaker 10: get back on the mound this year. What do you 98 00:04:56,000 --> 00:04:58,600 Speaker 10: think about that? Should he really try and get back 99 00:04:58,600 --> 00:05:00,480 Speaker 10: on the mound this year? I mean want MVP without 100 00:05:00,520 --> 00:05:03,120 Speaker 10: getting on the mound? Do we see it again? Do 101 00:05:03,240 --> 00:05:05,320 Speaker 10: we stop giving him the MVP at some point, even 102 00:05:05,320 --> 00:05:07,560 Speaker 10: though we know he could get it every single season? 103 00:05:08,440 --> 00:05:11,440 Speaker 2: Absolutely he gets back on the mound, and if he 104 00:05:11,520 --> 00:05:15,599 Speaker 2: wins the MVP every year, it's okay with me. I mean, look, 105 00:05:15,680 --> 00:05:19,320 Speaker 2: we're coming across something you will never ever see again. 106 00:05:19,800 --> 00:05:21,640 Speaker 2: And I grew up on the West Coast. I grew 107 00:05:21,720 --> 00:05:25,719 Speaker 2: up in Oregon, and when John Wooden had his teams 108 00:05:25,760 --> 00:05:28,080 Speaker 2: coming through and they're winning those eighty eighth straight and 109 00:05:28,120 --> 00:05:31,320 Speaker 2: all that stuff. One of my brothers would say to me, 110 00:05:32,040 --> 00:05:34,800 Speaker 2: you better recognize greatness when it's upon you. You'll never 111 00:05:34,839 --> 00:05:35,480 Speaker 2: see it again. 112 00:05:35,920 --> 00:05:39,280 Speaker 3: The old one is hit high and deep right field. 113 00:05:39,520 --> 00:05:42,440 Speaker 3: If it's fair, it's gone. And that one is fair. 114 00:05:42,920 --> 00:05:45,840 Speaker 3: Had a home run, a towering home run. He handed 115 00:05:45,920 --> 00:05:48,800 Speaker 3: a second deck for sho Hey Otanio. 116 00:05:49,000 --> 00:05:52,039 Speaker 2: And I believe that we will never see anybody like 117 00:05:52,080 --> 00:05:54,360 Speaker 2: Otani again. Just recognize it and enjoy it. 118 00:05:54,440 --> 00:05:56,040 Speaker 5: Well, yeah, Harold, I mean I couldn't agree more. And 119 00:05:56,080 --> 00:05:58,400 Speaker 5: I mean certainly, you know, if you're for Michael Barr 120 00:05:58,440 --> 00:05:59,880 Speaker 5: and you know you just got paid your bonus, you're 121 00:05:59,880 --> 00:06:01,920 Speaker 5: a lumberg and you're firing up your Fanuel account. Plus 122 00:06:01,920 --> 00:06:05,160 Speaker 5: two seventy five. I don't remember a team coming into 123 00:06:05,200 --> 00:06:07,080 Speaker 5: the season at plus two seventy five to win the 124 00:06:07,080 --> 00:06:09,160 Speaker 5: World Series. And that's where the Dodgers are today. And 125 00:06:09,400 --> 00:06:10,680 Speaker 5: a lot of it has to do with the fact 126 00:06:10,720 --> 00:06:13,520 Speaker 5: that the Yankees lost Garrett Cole. There is you know 127 00:06:14,040 --> 00:06:16,840 Speaker 5: that kind of skewed the betting lines. Talk to us 128 00:06:16,839 --> 00:06:18,800 Speaker 5: about some of the other teams, the Braves, the Yankees, 129 00:06:18,839 --> 00:06:21,279 Speaker 5: the Mets, the Phillies, the Orioles are those the teams 130 00:06:21,279 --> 00:06:24,520 Speaker 5: that have the next best shot of potentially getting a 131 00:06:24,560 --> 00:06:25,960 Speaker 5: win against the Dodgers the season. 132 00:06:26,240 --> 00:06:28,760 Speaker 2: Well, what the Dodgs have done, there's that's great pitching depth. 133 00:06:28,839 --> 00:06:32,400 Speaker 2: So that's beyond all the Freddy Freeman, Moki Betts and 134 00:06:32,520 --> 00:06:34,560 Speaker 2: show Hey and all that. Let's still they're pitching, but 135 00:06:35,000 --> 00:06:38,920 Speaker 2: teams that can contend. I think the National League asis loaded. 136 00:06:39,360 --> 00:06:41,279 Speaker 2: The Phillies are still a team that's going to be 137 00:06:41,320 --> 00:06:44,320 Speaker 2: really good. The Braves are very young and they continue 138 00:06:44,360 --> 00:06:48,479 Speaker 2: to do things excellent. And then obviously the Mets have 139 00:06:48,640 --> 00:06:51,240 Speaker 2: jumped in the fray. But I think the one thing 140 00:06:51,320 --> 00:06:54,440 Speaker 2: that as I look down the stretch, it's not how 141 00:06:54,480 --> 00:06:57,760 Speaker 2: you start, it's who can add when they need it. 142 00:06:58,400 --> 00:06:59,600 Speaker 3: And all those teams. 143 00:06:59,360 --> 00:07:01,640 Speaker 2: I just talked to can add because they have a 144 00:07:01,680 --> 00:07:03,720 Speaker 2: minor league system, or they have young players that they 145 00:07:03,720 --> 00:07:06,200 Speaker 2: can trade, they can go do Those are the things 146 00:07:06,200 --> 00:07:09,680 Speaker 2: that I would look at. Who has the cachet that 147 00:07:09,720 --> 00:07:13,520 Speaker 2: can go trade a player. Seattle has six pitchers, they 148 00:07:13,520 --> 00:07:16,280 Speaker 2: can go get a player if they need it. Not 149 00:07:16,360 --> 00:07:18,440 Speaker 2: saying that that's the team to be. I like the 150 00:07:18,520 --> 00:07:21,160 Speaker 2: Rangers for that fact. There's a few teams. I think 151 00:07:21,200 --> 00:07:25,200 Speaker 2: that can in a series knock off anybody. That's the 152 00:07:25,200 --> 00:07:28,320 Speaker 2: beauty of our sport. But the Dodgers are clearly loaded. 153 00:07:28,320 --> 00:07:30,680 Speaker 2: I would not bet against them, but if there's a 154 00:07:30,720 --> 00:07:32,920 Speaker 2: way to look at maybe another club stepping up, that 155 00:07:32,960 --> 00:07:35,840 Speaker 2: would be it. And I think there's one pitcher out there, 156 00:07:36,160 --> 00:07:40,000 Speaker 2: Sandy al Cantara with the Marlins. I've been saying it 157 00:07:40,280 --> 00:07:43,160 Speaker 2: from all winter. When he threw his first pitch at 158 00:07:43,160 --> 00:07:45,679 Speaker 2: one hundred miles an hour, back healthy again in spring training, 159 00:07:45,680 --> 00:07:49,560 Speaker 2: in the first game, every team gravitated to him, and 160 00:07:49,720 --> 00:07:53,120 Speaker 2: I think he's a division changer. He's a playoff pitcher, 161 00:07:53,480 --> 00:07:55,240 Speaker 2: and he's a guy that could take you over the top. 162 00:07:55,320 --> 00:07:57,000 Speaker 2: You know, he's a guy that the Yankees can go 163 00:07:57,040 --> 00:07:59,320 Speaker 2: get and now you're back in the fold again. Those 164 00:07:59,320 --> 00:08:01,520 Speaker 2: are the time he's that kind of a pitcher. So 165 00:08:01,760 --> 00:08:04,400 Speaker 2: I keep my eyes on him, and then I keep 166 00:08:04,440 --> 00:08:06,440 Speaker 2: my eyes on the Dodgers, and if anybody can add 167 00:08:06,440 --> 00:08:06,840 Speaker 2: to beat. 168 00:08:06,760 --> 00:08:09,440 Speaker 7: Them, well, we've talked about the best. Now we got 169 00:08:09,440 --> 00:08:12,440 Speaker 7: to talk about the rest. And I'm going to compare 170 00:08:12,480 --> 00:08:15,880 Speaker 7: it to I eighty. There's a big sinkhole in New 171 00:08:15,960 --> 00:08:19,280 Speaker 7: Jersey where I travel, and I got a detour and 172 00:08:19,360 --> 00:08:23,560 Speaker 7: the poor team that is in that sinkhole, the Chicago 173 00:08:23,640 --> 00:08:26,160 Speaker 7: White Sox. What is it going to take to get 174 00:08:26,200 --> 00:08:29,840 Speaker 7: that team at least put something on the board, Fellas. 175 00:08:30,040 --> 00:08:32,120 Speaker 2: I don't think they're going to lose one hundred and 176 00:08:32,120 --> 00:08:35,520 Speaker 2: twenty or whatever it was last year again, and that 177 00:08:35,559 --> 00:08:38,080 Speaker 2: will affect the whole division. You know, it was easy 178 00:08:38,240 --> 00:08:40,079 Speaker 2: for them to have, you know, whether they have two 179 00:08:40,160 --> 00:08:42,000 Speaker 2: or three teams out of Central last year make the 180 00:08:42,000 --> 00:08:44,760 Speaker 2: playoffs because they beat up on the White Sox every day. 181 00:08:45,160 --> 00:08:47,720 Speaker 2: They'll be better. How do they turn it around? They've 182 00:08:47,760 --> 00:08:51,520 Speaker 2: got some young prospects coming, but it's going to come 183 00:08:51,559 --> 00:08:54,960 Speaker 2: down to eventually they have to sign some free agents 184 00:08:55,160 --> 00:08:57,680 Speaker 2: and you can't just say our farm system is going 185 00:08:57,720 --> 00:09:01,960 Speaker 2: to be better than everybody else. The disadvantage of today 186 00:09:02,880 --> 00:09:05,680 Speaker 2: is now you have a draft lottery, you have a 187 00:09:06,000 --> 00:09:08,520 Speaker 2: more of a slotted draft. You can't sit there and 188 00:09:08,559 --> 00:09:11,480 Speaker 2: say i'll wait for this guy, I'll pay him more 189 00:09:11,520 --> 00:09:14,120 Speaker 2: money and we'll get him in the fifth round. That 190 00:09:14,200 --> 00:09:17,680 Speaker 2: doesn't happen anymore. So it's a little harder to turn 191 00:09:17,720 --> 00:09:20,120 Speaker 2: it around than it was maybe ten or fifteen years 192 00:09:20,160 --> 00:09:22,920 Speaker 2: ago when the Astros were able to turn it all 193 00:09:22,960 --> 00:09:24,880 Speaker 2: around and get things going in Houston? 194 00:09:25,480 --> 00:09:27,240 Speaker 10: Well, do you think one of those reasons, you know, 195 00:09:27,920 --> 00:09:30,120 Speaker 10: Michael said it there it's the best and then the rest. 196 00:09:30,120 --> 00:09:31,760 Speaker 10: Do you think one of those reasons it really is? 197 00:09:32,200 --> 00:09:35,680 Speaker 10: It goes back to the owners who are willing to spend. 198 00:09:35,840 --> 00:09:36,880 Speaker 1: I mean, I. 199 00:09:36,840 --> 00:09:40,480 Speaker 10: Feel like they've sort of broken the system again that 200 00:09:40,559 --> 00:09:42,240 Speaker 10: their Yankees are almost going to beat at their own 201 00:09:42,280 --> 00:09:43,960 Speaker 10: game at this point by the Dodgers in by the 202 00:09:43,960 --> 00:09:48,800 Speaker 10: Mets obviously stealing Sodo. Does that actually have this cachet 203 00:09:48,880 --> 00:09:51,720 Speaker 10: that is it worse now than it ever has been before? 204 00:09:51,720 --> 00:09:53,640 Speaker 10: Do you think between teams that are willing to spend 205 00:09:53,640 --> 00:09:55,719 Speaker 10: and teams are willing that aren't willing. 206 00:09:55,480 --> 00:10:00,439 Speaker 2: To Well, I think what is a challenge is the 207 00:10:00,480 --> 00:10:04,520 Speaker 2: system has changed. You don't have young players signing long 208 00:10:04,600 --> 00:10:07,760 Speaker 2: term contracts when offered. You look at the Braves even 209 00:10:07,840 --> 00:10:10,080 Speaker 2: four or five years ago, right, you get Albi's signs 210 00:10:10,080 --> 00:10:13,320 Speaker 2: a long term deal. Tunya does all these young players 211 00:10:13,360 --> 00:10:17,199 Speaker 2: took one hundred million, thirty million, fifty million now they're 212 00:10:17,320 --> 00:10:20,280 Speaker 2: lad Junior sent five hundreds not enough, you know, And 213 00:10:20,320 --> 00:10:21,760 Speaker 2: so how the blue Jay is going to sign a 214 00:10:21,800 --> 00:10:24,040 Speaker 2: guy like that? Comes out of your system? I think 215 00:10:24,160 --> 00:10:27,200 Speaker 2: that's been more of an effect on how the sport 216 00:10:27,280 --> 00:10:31,080 Speaker 2: is being played than necessarily ownership trying to spend big 217 00:10:31,160 --> 00:10:33,839 Speaker 2: money on free agents. If you can't lock up guys 218 00:10:33,840 --> 00:10:36,600 Speaker 2: that you've had in your system for six years before 219 00:10:36,600 --> 00:10:38,880 Speaker 2: they're a free agent, then how are you going to 220 00:10:38,880 --> 00:10:41,920 Speaker 2: be able to compete? And that was always something that 221 00:10:42,280 --> 00:10:44,360 Speaker 2: the Guardians, who were the Indians back in the day, 222 00:10:44,360 --> 00:10:46,680 Speaker 2: were able to do. They locked up all their young 223 00:10:46,720 --> 00:10:50,440 Speaker 2: players at Alamar and locked in and Tolmi and all 224 00:10:50,480 --> 00:10:53,360 Speaker 2: those guys, and they could make a run. Even the 225 00:10:53,440 --> 00:10:55,800 Speaker 2: Yankees back in the day, you know, they get the 226 00:10:56,520 --> 00:10:59,839 Speaker 2: Moniker for the Evil Empire, but you locked up Jeter 227 00:11:00,080 --> 00:11:03,440 Speaker 2: Posada Rivera guys that are in your minor league system 228 00:11:03,480 --> 00:11:07,840 Speaker 2: to long term deals. That doesn't happen today because players 229 00:11:07,840 --> 00:11:10,080 Speaker 2: are not taking those long term deals. And that's why 230 00:11:10,120 --> 00:11:13,199 Speaker 2: the Braves are where they're at and the position they're in. 231 00:11:13,720 --> 00:11:16,280 Speaker 2: And so I think that's been more of a problem 232 00:11:16,320 --> 00:11:20,199 Speaker 2: than necessarily the owners are not spending. Hard to say 233 00:11:20,240 --> 00:11:22,920 Speaker 2: owners are spending when you got over five billion dollars 234 00:11:22,960 --> 00:11:27,439 Speaker 2: in salaries out in baseball, you know that's that's. 235 00:11:26,559 --> 00:11:28,040 Speaker 10: Just the Dodgers and the Mets alone. 236 00:11:28,080 --> 00:11:31,480 Speaker 5: Honestly, Well, you know, I mean, Harold, we're talking big 237 00:11:31,559 --> 00:11:33,199 Speaker 5: numbers here, we're talking big money. I'm gonna give you 238 00:11:33,200 --> 00:11:35,080 Speaker 5: a number here. Six point one billion. That's what the 239 00:11:35,080 --> 00:11:37,679 Speaker 5: Celtics just went for. And they don't even own their 240 00:11:37,720 --> 00:11:40,520 Speaker 5: own stadium. That's sixteen times total revenue. That's the price. 241 00:11:40,600 --> 00:11:43,240 Speaker 5: That's the ticket. Now, if you look at Major League Baseball, 242 00:11:44,000 --> 00:11:46,360 Speaker 5: the on average teams in Major League Baseball are trading 243 00:11:46,360 --> 00:11:49,319 Speaker 5: at six point six times revenue. Significantly less than that, right, 244 00:11:49,360 --> 00:11:51,959 Speaker 5: and it's actually the lowest of you know, the major sports, 245 00:11:51,960 --> 00:11:54,440 Speaker 5: plus Major League Soccer, which trades at a nine point 246 00:11:54,440 --> 00:11:56,199 Speaker 5: four x. So you know, what I need to know 247 00:11:56,360 --> 00:11:58,920 Speaker 5: is just how much higher can the value of the 248 00:11:58,920 --> 00:12:01,040 Speaker 5: New York Yankees at eight point four billionaire the Dodgers 249 00:12:01,080 --> 00:12:02,280 Speaker 5: at seven point seven billion? 250 00:12:02,360 --> 00:12:02,440 Speaker 2: Go? 251 00:12:02,640 --> 00:12:05,040 Speaker 5: I mean, are we capped here now? Finally? 252 00:12:05,160 --> 00:12:05,440 Speaker 9: I mean? 253 00:12:05,600 --> 00:12:08,520 Speaker 5: Or is it really just anyone's guess? I mean, can 254 00:12:08,520 --> 00:12:10,560 Speaker 5: these valuations continue to explode from here? 255 00:12:11,040 --> 00:12:13,480 Speaker 2: I think they can continue to explode because there's only 256 00:12:13,559 --> 00:12:16,959 Speaker 2: thirty of them. It's a road gym, you know, that's 257 00:12:17,000 --> 00:12:19,920 Speaker 2: the uniqueness of it. And even the other sports we're 258 00:12:19,960 --> 00:12:23,000 Speaker 2: starting to see more soccer franchises are gonna come along. 259 00:12:23,320 --> 00:12:27,440 Speaker 2: You're going to see even football is expanding. Baseball eventually 260 00:12:27,559 --> 00:12:30,520 Speaker 2: will probably expand as well. But right now you've got 261 00:12:30,520 --> 00:12:32,480 Speaker 2: thirty teams, so that is like a. 262 00:12:32,520 --> 00:12:35,640 Speaker 7: Jewel our Thanks to Harold Reynolds for joining us. He's 263 00:12:35,960 --> 00:12:40,720 Speaker 7: MLB Network's lead studio analyst and of course, a twelve 264 00:12:40,800 --> 00:12:44,800 Speaker 7: year MLB pro and two time AL All Star. Up Next, 265 00:12:44,880 --> 00:12:48,000 Speaker 7: we turn to March Madness and all the businesses looking 266 00:12:48,040 --> 00:12:50,800 Speaker 7: to make big money this year during the tournament. My 267 00:12:50,880 --> 00:12:55,000 Speaker 7: colleagues Damian Sasseur and Vanessa Perdomo, Michael Barr, You're listening 268 00:12:55,000 --> 00:12:58,080 Speaker 7: to the Bloomberg Business of Sports from Bloomberg Radio around 269 00:12:58,120 --> 00:12:58,520 Speaker 7: the world. 270 00:13:00,440 --> 00:13:04,440 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 271 00:13:05,640 --> 00:13:08,160 Speaker 7: This is the Bloomberg Business of Sports where we explore 272 00:13:08,160 --> 00:13:10,040 Speaker 7: the big money issues in the world of sports. I'm 273 00:13:10,040 --> 00:13:14,240 Speaker 7: Michael Barr along with my colleagues Damian Sassauer and Vanessa Bernomo. 274 00:13:14,840 --> 00:13:18,040 Speaker 7: March Madness is well under way, and our colleagues at 275 00:13:18,080 --> 00:13:21,920 Speaker 7: Bloomberg Intelligence have been tracking how a lot of businesses 276 00:13:22,000 --> 00:13:25,360 Speaker 7: are looking to earn big with all the interest in 277 00:13:25,400 --> 00:13:28,400 Speaker 7: the games. The men's tournament alone could draw over a 278 00:13:28,440 --> 00:13:31,000 Speaker 7: billion dollars in ad money. To take a deep dive 279 00:13:31,040 --> 00:13:34,600 Speaker 7: into who's looking to win big and how cord cutting 280 00:13:34,920 --> 00:13:38,199 Speaker 7: is factoring in. We bring in Bloomberg Intelligence senior media 281 00:13:38,240 --> 00:13:44,200 Speaker 7: analysts Keitha Raghanoffin and Bloomberg Intelligence equities analysts Kevin nar Keitha, Kevin, 282 00:13:44,240 --> 00:13:46,880 Speaker 7: Welcome to the Bloomberg Business of Sports. I'm going to 283 00:13:46,920 --> 00:13:49,720 Speaker 7: start this one with Giesa Keitha. And this is about 284 00:13:50,280 --> 00:13:59,000 Speaker 7: March Madness pureamount. They seemed to be enjoying March Madness 285 00:13:59,040 --> 00:14:02,720 Speaker 7: so far, at least maybe ratings wise, yes they are. 286 00:14:02,920 --> 00:14:05,120 Speaker 9: So you know again, we come back to this point 287 00:14:05,160 --> 00:14:07,400 Speaker 9: over and over again, Michael, So, sports tends to be 288 00:14:07,559 --> 00:14:11,719 Speaker 9: the most resilient genre on linear TV if you just 289 00:14:11,800 --> 00:14:13,400 Speaker 9: kind of look at it big picture. It makes up 290 00:14:13,400 --> 00:14:16,480 Speaker 9: about thirty percent of all linear TV viewing. But what's 291 00:14:16,600 --> 00:14:18,960 Speaker 9: even more important is that it makes up forty five 292 00:14:19,000 --> 00:14:22,400 Speaker 9: percent of total AD sales. So really really important for 293 00:14:22,560 --> 00:14:26,240 Speaker 9: all of the media companies and definitely for Paramount as well, which, 294 00:14:26,320 --> 00:14:29,400 Speaker 9: along with Warner Brothers Discovery has the rights to the 295 00:14:29,520 --> 00:14:33,480 Speaker 9: NCAA March Madness and of course majority of the games 296 00:14:33,720 --> 00:14:37,200 Speaker 9: this time around, So it keeps alternating between CBS and 297 00:14:37,240 --> 00:14:41,000 Speaker 9: the Turner Networks and of course CBS this year will 298 00:14:41,040 --> 00:14:43,080 Speaker 9: have the Semis and the finals, and so they're going 299 00:14:43,160 --> 00:14:46,240 Speaker 9: to have a big, big ad haul as you just 300 00:14:46,280 --> 00:14:46,800 Speaker 9: pointed out. 301 00:14:47,000 --> 00:14:49,480 Speaker 5: Yeah, but GITHA fees getting higher. I mean, isn't it 302 00:14:49,520 --> 00:14:52,440 Speaker 5: getting more and more expensive to pay for these you know, 303 00:14:52,480 --> 00:14:54,920 Speaker 5: for these slots, to pay for these sports, and to 304 00:14:55,240 --> 00:14:57,760 Speaker 5: pay for these sponsorship rights, and then to make money 305 00:14:57,760 --> 00:14:59,440 Speaker 5: off of them and sell those ads. I mean taught 306 00:14:59,440 --> 00:15:00,760 Speaker 5: to us a little bit about the margins. 307 00:15:01,000 --> 00:15:04,160 Speaker 9: Yeah, you bring up an excellent point, Damien. So sports, Yes, 308 00:15:04,200 --> 00:15:06,800 Speaker 9: they are definitely very lucrative in terms of ad dollars. 309 00:15:06,840 --> 00:15:08,920 Speaker 9: But at the same time, there you know, all of 310 00:15:08,960 --> 00:15:12,000 Speaker 9: these media companies are dealing with rights fees escalating at 311 00:15:12,080 --> 00:15:15,040 Speaker 9: astronomical rates. Right, We've seen rights fees go up something 312 00:15:15,160 --> 00:15:19,840 Speaker 9: like thirty forty percent in every renewal cycle. And actually 313 00:15:20,320 --> 00:15:23,560 Speaker 9: this is really timely because even for the NCAA Men's 314 00:15:23,880 --> 00:15:27,440 Speaker 9: March Madness Tournament, we're actually seeing rights fees step up 315 00:15:27,480 --> 00:15:30,400 Speaker 9: pretty significantly this year. So this is when you know, 316 00:15:30,400 --> 00:15:33,040 Speaker 9: in twenty twenty five is when the new extension goes 317 00:15:33,560 --> 00:15:36,480 Speaker 9: into effect, and so we're seeing you know, both of 318 00:15:36,520 --> 00:15:41,400 Speaker 9: these companies pay the NC doublea about over close to 319 00:15:41,440 --> 00:15:43,720 Speaker 9: about a billion dollars in rights fees. That's up from 320 00:15:43,720 --> 00:15:47,760 Speaker 9: about eight hundred million. So, yes, sports is an expensive 321 00:15:47,760 --> 00:15:52,680 Speaker 9: proposition and sometimes in some cases, as you rightly mentioned, Damien, 322 00:15:52,720 --> 00:15:55,960 Speaker 9: it is a loss leader. In this case, we actually 323 00:15:56,000 --> 00:15:59,440 Speaker 9: think they're able to attract just about enough ad dollars 324 00:15:59,800 --> 00:16:02,560 Speaker 9: to cover the rights face, so hopefully it will not 325 00:16:02,640 --> 00:16:05,640 Speaker 9: be a last making proposition. But you're absolutely right, this 326 00:16:05,720 --> 00:16:08,440 Speaker 9: is a very very tricky game because rights face continue 327 00:16:08,440 --> 00:16:10,400 Speaker 9: to keep going up in every renewal cycle. 328 00:16:10,840 --> 00:16:13,800 Speaker 10: Interesting to me that it's going to be continued even 329 00:16:13,840 --> 00:16:15,560 Speaker 10: this year. Obviously you said they're going to have a 330 00:16:15,560 --> 00:16:19,000 Speaker 10: big hole for the semi finals and for the rest 331 00:16:19,040 --> 00:16:21,680 Speaker 10: of the tournament, even though this year is the first 332 00:16:21,720 --> 00:16:25,440 Speaker 10: time that we don't really have any Cinderella stories going 333 00:16:25,440 --> 00:16:28,680 Speaker 10: into the sweet sixteen and beyond, really there won't be 334 00:16:28,760 --> 00:16:32,240 Speaker 10: as big of a draw. Is that not halting the 335 00:16:32,520 --> 00:16:34,840 Speaker 10: idea that there's going to be a drop off in 336 00:16:34,920 --> 00:16:37,280 Speaker 10: viewership or anything like that for advertisers. 337 00:16:37,560 --> 00:16:40,440 Speaker 9: Yeah, So that's a great observation. So when I said ratings, 338 00:16:40,480 --> 00:16:43,280 Speaker 9: so far, despite the fact that there have been no 339 00:16:43,400 --> 00:16:47,920 Speaker 9: dramatic upsets, ratings have actually been really strong. So in 340 00:16:48,000 --> 00:16:51,560 Speaker 9: the early games, we've seen men's games averaging about nine 341 00:16:51,560 --> 00:16:55,320 Speaker 9: point five million viewers, but that's actually the highest in 342 00:16:55,360 --> 00:16:59,040 Speaker 9: about thirty years. Sports betting tends to be a key reason. 343 00:16:59,600 --> 00:17:02,840 Speaker 9: But we we are continuing to see really really strong 344 00:17:02,920 --> 00:17:05,160 Speaker 9: numbers across the board. I think it's up about eight 345 00:17:05,200 --> 00:17:08,440 Speaker 9: to nine percent from last year, so I don't necessarily 346 00:17:08,480 --> 00:17:11,600 Speaker 9: think we're anticipating a big drop off. And remember, most 347 00:17:11,600 --> 00:17:14,879 Speaker 9: of these ad spots, they've already been committed to and 348 00:17:14,920 --> 00:17:17,760 Speaker 9: spoken for, so that's all good money at this point. 349 00:17:18,040 --> 00:17:20,200 Speaker 5: Let's bring in Kevin Near here. Kevin Near, for our audience, 350 00:17:20,280 --> 00:17:22,399 Speaker 5: is the senior sociate analyst on Get This Team. But 351 00:17:22,440 --> 00:17:26,080 Speaker 5: he focuses on tickets. He focuses on StubHub Live Nation 352 00:17:26,240 --> 00:17:28,320 Speaker 5: all that fun stuff. And you know, Kevin, I just 353 00:17:28,359 --> 00:17:30,879 Speaker 5: got to ask you, whe're are ticket prices coming in 354 00:17:30,920 --> 00:17:32,320 Speaker 5: this year? I mean, look, we've asked a lot of 355 00:17:32,320 --> 00:17:33,720 Speaker 5: people on the show. You know, where are we in 356 00:17:33,760 --> 00:17:35,800 Speaker 5: the business cycle or you know, people willing to pay 357 00:17:35,800 --> 00:17:38,480 Speaker 5: our households willing to pay these higher prices. I guess 358 00:17:38,520 --> 00:17:39,440 Speaker 5: our question for you is. 359 00:17:39,400 --> 00:17:41,720 Speaker 6: Are they Yeah? They are so far? I mean, ticket 360 00:17:41,720 --> 00:17:43,920 Speaker 6: prices have been at record levels. Coming out of the pandemic, 361 00:17:43,960 --> 00:17:47,399 Speaker 6: we saw just incredible pens up demand, explosive demand for 362 00:17:47,440 --> 00:17:48,960 Speaker 6: live events. People want to get out of their house, 363 00:17:48,960 --> 00:17:51,520 Speaker 6: they wanted to go see these musty events. So ticket 364 00:17:51,520 --> 00:17:53,560 Speaker 6: prices are already at record highs and now looking out 365 00:17:53,560 --> 00:17:56,240 Speaker 6: into this year, really the question is demand, right. I mean, 366 00:17:56,240 --> 00:17:58,600 Speaker 6: on the supply side, if you look at the concert pipeline, 367 00:17:58,600 --> 00:18:02,880 Speaker 6: you have a lot of stadium activity on the metallity, 368 00:18:03,800 --> 00:18:06,240 Speaker 6: there's tons of stuff on the concert side, so that's 369 00:18:06,280 --> 00:18:09,439 Speaker 6: all good. And then on the on the sports side, obviously, 370 00:18:09,520 --> 00:18:11,239 Speaker 6: again it just really comes down to demand. I mean, 371 00:18:11,240 --> 00:18:14,600 Speaker 6: you're seeing a big tailwind that the venues themselves are 372 00:18:14,640 --> 00:18:18,359 Speaker 6: pushing deeper and deeper into VIP clubs, luxury boxes, you know, 373 00:18:18,440 --> 00:18:20,679 Speaker 6: really really driving up those prices. I think, you know, 374 00:18:20,760 --> 00:18:24,200 Speaker 6: just recently, the Florida Panthers raised their season ticket prices. 375 00:18:24,960 --> 00:18:27,720 Speaker 6: Recently the Buffalo Bills raised their seats ticket prices. So 376 00:18:27,920 --> 00:18:30,840 Speaker 6: it's all going up. But really, and especially on the 377 00:18:30,880 --> 00:18:33,760 Speaker 6: resale market, what matters most is demand, right, So we're 378 00:18:33,760 --> 00:18:35,560 Speaker 6: gonna be taking a close look at consumer confidence and 379 00:18:35,560 --> 00:18:36,640 Speaker 6: seeing on that trends this year. 380 00:18:36,960 --> 00:18:41,920 Speaker 7: Well, while Damien is crowdsurfing at the concert. I remember, 381 00:18:42,200 --> 00:18:44,840 Speaker 7: and take this from an old man here and help 382 00:18:44,920 --> 00:18:48,919 Speaker 7: me understand what's happening today. When you wanted a ticket 383 00:18:49,200 --> 00:18:52,120 Speaker 7: to go see the Detroit Tigers, you had to go 384 00:18:52,280 --> 00:18:56,240 Speaker 7: to the ticket office at Michigan and Trumbull. Okay, I 385 00:18:56,240 --> 00:18:58,520 Speaker 7: want these tickets, blah blah blah blah blah. And if 386 00:18:58,560 --> 00:19:01,920 Speaker 7: you were really fancy, you buy the season tickets there 387 00:19:02,200 --> 00:19:05,040 Speaker 7: and that was it, right, And then it all changed, man, 388 00:19:05,160 --> 00:19:08,720 Speaker 7: it all changed. Stub Hub and everything going. Secondary ticket 389 00:19:08,800 --> 00:19:11,920 Speaker 7: markets explain that evolution. 390 00:19:12,200 --> 00:19:15,160 Speaker 6: Yeah, absolutely. I mean we are in the Internet age, 391 00:19:15,200 --> 00:19:18,359 Speaker 6: of course, and right now ticketing is just dominated by 392 00:19:18,359 --> 00:19:22,240 Speaker 6: Ticketmaster right especially the primary market, the original issuance market. 393 00:19:22,440 --> 00:19:24,919 Speaker 6: A big part of that is these exclusive contracts that 394 00:19:24,960 --> 00:19:28,040 Speaker 6: Ticketmaster has with some of the biggest venues, the stadiums, 395 00:19:28,080 --> 00:19:31,159 Speaker 6: the arenas. That's really you know, been locked up for 396 00:19:31,200 --> 00:19:33,399 Speaker 6: the most part. On the secondary side, what we've been 397 00:19:33,400 --> 00:19:35,280 Speaker 6: seeing is that stub Hub has been taking a lot 398 00:19:35,320 --> 00:19:38,359 Speaker 6: of share because they've just been spending so aggressively on marketing. 399 00:19:38,400 --> 00:19:40,240 Speaker 6: So the past few years we've seen their gross order 400 00:19:40,280 --> 00:19:43,080 Speaker 6: volume really explode, which has been great for them. If 401 00:19:43,119 --> 00:19:45,720 Speaker 6: you look outside of the us though, You're absolutely right. 402 00:19:45,760 --> 00:19:48,639 Speaker 6: You know, resale markets are predominantly offline. 403 00:19:48,680 --> 00:19:48,919 Speaker 7: They are. 404 00:19:49,000 --> 00:19:51,080 Speaker 6: They are heavily regulated in a lot of markets. So 405 00:19:51,440 --> 00:19:54,000 Speaker 6: StubHub will have an uphill climb under their their Via 406 00:19:54,040 --> 00:19:57,000 Speaker 6: Go Go brand. Internationally, they'll have a very you know, 407 00:19:57,080 --> 00:20:00,240 Speaker 6: significant uphill climb internationally. But it's a big market. There's 408 00:20:00,480 --> 00:20:01,720 Speaker 6: a lot of open field out there. 409 00:20:01,680 --> 00:20:03,960 Speaker 7: Ste Vanessa, if I wanted tickets back in the old 410 00:20:04,040 --> 00:20:07,160 Speaker 7: day the Tiger Stadium, i'd see many right outside and 411 00:20:07,240 --> 00:20:09,960 Speaker 7: he'd like, give me something for the second level. That's 412 00:20:09,960 --> 00:20:12,320 Speaker 7: the way the secondary market used to work. 413 00:20:12,160 --> 00:20:14,959 Speaker 10: Right, you know, but you still have to stand outside. 414 00:20:15,000 --> 00:20:16,399 Speaker 10: Sometimes you can go to Broadway if you want to 415 00:20:16,400 --> 00:20:19,000 Speaker 10: see Broadway play, you go in person to avoid fees. 416 00:20:19,040 --> 00:20:21,720 Speaker 10: Because that's the biggest problem with some of these with 417 00:20:21,800 --> 00:20:23,960 Speaker 10: some of these platforms, right It's it's the it's the 418 00:20:23,960 --> 00:20:27,440 Speaker 10: extra fees and everything that people seem not willing to pay. 419 00:20:27,440 --> 00:20:30,560 Speaker 10: But it seems like, I guess if there's still if 420 00:20:30,560 --> 00:20:33,040 Speaker 10: the ticket market's going up, then I guess it's no problem. 421 00:20:33,400 --> 00:20:35,400 Speaker 10: Must must be fine. Yeah, But one of the things 422 00:20:35,480 --> 00:20:37,440 Speaker 10: I wanted to ask you about, Kevin, is, like in 423 00:20:37,800 --> 00:20:41,040 Speaker 10: before we were talking about March manis, you know, ratings 424 00:20:41,080 --> 00:20:43,920 Speaker 10: are going up even though with cord cutting, and we 425 00:20:43,920 --> 00:20:47,080 Speaker 10: were talking about how you said it's saying that one 426 00:20:47,080 --> 00:20:49,119 Speaker 10: point one billion dollars will bring in just from the 427 00:20:49,160 --> 00:20:51,760 Speaker 10: men's side of March. Manis, what about the women's side, 428 00:20:51,800 --> 00:20:55,480 Speaker 10: because last year the championship for the women out drew 429 00:20:55,520 --> 00:20:58,520 Speaker 10: the men by four million viewers. So what are we 430 00:20:58,560 --> 00:21:01,359 Speaker 10: seeing on that side And did we see more advertising, 431 00:21:01,520 --> 00:21:03,240 Speaker 10: you know, fever for the women's side this year. 432 00:21:03,400 --> 00:21:05,560 Speaker 6: Yeah, there's definitely a little bit of lagging going on 433 00:21:05,640 --> 00:21:07,560 Speaker 6: with the women's side. You're seeing just this you know, 434 00:21:07,760 --> 00:21:11,119 Speaker 6: unbelievable explosion and engagement across that side. Now for the 435 00:21:11,520 --> 00:21:15,399 Speaker 6: women's March Madness Tournament this year, ratings are down a 436 00:21:15,400 --> 00:21:18,280 Speaker 6: little bit against those just incredible, you know record numbers 437 00:21:18,320 --> 00:21:20,320 Speaker 6: that you just mentioned. You know, we'll have to see 438 00:21:20,359 --> 00:21:22,119 Speaker 6: for the next few rounds kind of what happens on 439 00:21:22,200 --> 00:21:24,720 Speaker 6: again on the TV rating side, just with with Juji 440 00:21:24,760 --> 00:21:27,240 Speaker 6: Watkins going down with the injury. But again, the women's 441 00:21:27,240 --> 00:21:29,920 Speaker 6: sports side is a huge amount of upside, right, I mean, 442 00:21:30,080 --> 00:21:32,080 Speaker 6: just look at what's happening in the WNBA. And yes, 443 00:21:32,119 --> 00:21:33,879 Speaker 6: this is you know, the Caate and Clark effects, but 444 00:21:34,200 --> 00:21:37,840 Speaker 6: we're seeing almost on the daily basis announcements of teams 445 00:21:37,840 --> 00:21:40,520 Speaker 6: that are playing against the Indiana Fever. They're moving those 446 00:21:40,560 --> 00:21:42,679 Speaker 6: games to bigger venues, right, They're moving those games to 447 00:21:43,119 --> 00:21:46,119 Speaker 6: arena size venues because there's just so much interest in 448 00:21:46,160 --> 00:21:46,879 Speaker 6: the women's side. 449 00:21:47,000 --> 00:21:48,280 Speaker 5: Well, ga if I'd love to bring it back in 450 00:21:48,320 --> 00:21:49,959 Speaker 5: here because you know, and Kevin as well. I mean, 451 00:21:49,960 --> 00:21:52,040 Speaker 5: I'd love to hear your thoughts because I know, you know, 452 00:21:52,119 --> 00:21:54,320 Speaker 5: you both live in a world where you know it's 453 00:21:54,400 --> 00:21:57,560 Speaker 5: quarter to quarter and but just how far ahead are 454 00:21:57,560 --> 00:21:59,520 Speaker 5: you looking? Are you guys paying attention to the FIFA 455 00:21:59,600 --> 00:22:01,080 Speaker 5: World Cut up in the run up to that? I mean, 456 00:22:01,080 --> 00:22:03,080 Speaker 5: we're a little more than a year out here, and 457 00:22:03,119 --> 00:22:05,399 Speaker 5: I mean, I for one, my wife just kind of 458 00:22:05,440 --> 00:22:07,639 Speaker 5: put paying me down. She's like, listen, stub Hub, we 459 00:22:07,680 --> 00:22:10,200 Speaker 5: can get tickets for the champion at the Metal Lands, 460 00:22:10,240 --> 00:22:12,959 Speaker 5: And so, you know, I mean, is that real? Are 461 00:22:13,000 --> 00:22:15,520 Speaker 5: we really seeing the beginnings of this FIFA World Cup 462 00:22:15,640 --> 00:22:16,359 Speaker 5: you know build up? 463 00:22:16,480 --> 00:22:16,960 Speaker 11: Not yet? 464 00:22:17,040 --> 00:22:17,440 Speaker 7: Not yet. 465 00:22:17,600 --> 00:22:19,840 Speaker 6: In fact, FIFA actually put out a warning saying be 466 00:22:19,960 --> 00:22:22,960 Speaker 6: very careful about speculative buying on any of these resale sites. 467 00:22:22,960 --> 00:22:25,240 Speaker 6: They mentioned StubHub, they mentioned Vivid, so keep it a 468 00:22:25,280 --> 00:22:26,480 Speaker 6: high hat, Dan, you gotta be careful. 469 00:22:26,560 --> 00:22:28,600 Speaker 5: I haven't bought anything yet, right, I mean just told 470 00:22:28,640 --> 00:22:29,120 Speaker 5: me not to buy. 471 00:22:29,160 --> 00:22:32,400 Speaker 6: I'm not buying those World Cup tickets. Those World Cup 472 00:22:32,400 --> 00:22:35,399 Speaker 6: tickets are going to be sold directly on FIFA's website. 473 00:22:36,040 --> 00:22:38,480 Speaker 6: But yes, I mean it's a huge opportunity for StubHub 474 00:22:38,520 --> 00:22:40,760 Speaker 6: in twenty twenty six. There's a lot of upside. Obviously, 475 00:22:40,880 --> 00:22:43,000 Speaker 6: big demand for an event like that, so a lot 476 00:22:43,000 --> 00:22:45,720 Speaker 6: of those tickets will be hitting the resale markets eventually, 477 00:22:46,040 --> 00:22:47,880 Speaker 6: and that's a big part of why we think they're 478 00:22:47,920 --> 00:22:50,880 Speaker 6: launching this IPO now, even with these you know, let's 479 00:22:50,880 --> 00:22:54,400 Speaker 6: call them term tumultuous market conditions, they want to get 480 00:22:54,400 --> 00:22:56,040 Speaker 6: ahead of that big event. And then obviously even looking 481 00:22:56,080 --> 00:22:59,080 Speaker 6: out even further, there's the Olympics in twenty eight as. 482 00:22:59,000 --> 00:23:02,480 Speaker 7: Well, and the by the way, look out for the 483 00:23:02,520 --> 00:23:05,040 Speaker 7: fake sites and talk more about it. Don't buy it 484 00:23:05,080 --> 00:23:06,040 Speaker 7: from stump hub. 485 00:23:06,640 --> 00:23:08,960 Speaker 1: Okay, got it? 486 00:23:10,680 --> 00:23:13,280 Speaker 7: Now? There is a problem though, I mean, you got 487 00:23:13,560 --> 00:23:16,560 Speaker 7: you know, the crooks is the best way I can 488 00:23:16,600 --> 00:23:19,480 Speaker 7: describe it. That will try to achieve people over the 489 00:23:19,520 --> 00:23:22,120 Speaker 7: money with a fake website or this or that whatever, 490 00:23:22,200 --> 00:23:24,240 Speaker 7: and you have to be careful out there. 491 00:23:24,480 --> 00:23:26,520 Speaker 5: Well, I mean, here's my other question, Michael Barne, I 492 00:23:26,560 --> 00:23:28,440 Speaker 5: just have to jump in here. Tayos Swift's eras tour. 493 00:23:28,480 --> 00:23:30,679 Speaker 5: You know, we're still feeling the reverberations from that. You know, 494 00:23:30,720 --> 00:23:33,960 Speaker 5: we have Beyonce this, I mean, but I gotta believe 495 00:23:34,000 --> 00:23:36,000 Speaker 5: you guys, you know, are expecting a year over year 496 00:23:36,160 --> 00:23:38,040 Speaker 5: decrease in terms of a lot of you know, in 497 00:23:38,160 --> 00:23:40,160 Speaker 5: terms of just top line, right, because I mean, wasn't 498 00:23:40,200 --> 00:23:43,440 Speaker 5: Tallis Swift just such an incredible force of nature? Nothing 499 00:23:43,440 --> 00:23:45,160 Speaker 5: can possibly compete around my wrong, Cavin. 500 00:23:45,240 --> 00:23:46,520 Speaker 6: Let's look at it in two different ways. Right on 501 00:23:46,520 --> 00:23:49,560 Speaker 6: the primary side, Live Nation says, you know, no tour 502 00:23:49,720 --> 00:23:51,320 Speaker 6: is ever going to be more than one percent of 503 00:23:51,359 --> 00:23:54,560 Speaker 6: their revenue, right, So that part aside. Yes, stub Hub 504 00:23:54,640 --> 00:23:57,960 Speaker 6: absolutely caught some tailwinds from the resale pricing. I mean, 505 00:23:58,119 --> 00:24:01,000 Speaker 6: you saw some just just ludicrous is on those tickets, 506 00:24:02,359 --> 00:24:04,960 Speaker 6: you know, But again there's still healthy demand. There's a 507 00:24:04,960 --> 00:24:09,320 Speaker 6: lot more concerts in stadiums this year, which means bigger 508 00:24:09,400 --> 00:24:12,160 Speaker 6: venues of more attendance, more c capacity, and then higher 509 00:24:12,160 --> 00:24:15,320 Speaker 6: average prices as well. So you're not wrong, You're not wrong. 510 00:24:15,520 --> 00:24:18,119 Speaker 6: It's really going to come down to ultimately where demand 511 00:24:18,160 --> 00:24:18,760 Speaker 6: is shaking out. 512 00:24:18,960 --> 00:24:22,560 Speaker 7: Githa, I want to talk about gross merchandise sales, and 513 00:24:23,040 --> 00:24:26,479 Speaker 7: they did pretty strong that twelve point eight billion dollars. 514 00:24:26,600 --> 00:24:27,840 Speaker 7: Can you expand more into that? 515 00:24:28,160 --> 00:24:28,280 Speaker 2: Oh? 516 00:24:28,320 --> 00:24:31,160 Speaker 9: Absolutely, So you know, across the board, what we're seeing 517 00:24:31,160 --> 00:24:33,879 Speaker 9: for all of these leagues is, you know, meteorites of 518 00:24:33,880 --> 00:24:37,919 Speaker 9: course makes up a huge part of their revenue, but 519 00:24:37,960 --> 00:24:41,160 Speaker 9: we also see a lot of revenue coming in from 520 00:24:41,600 --> 00:24:44,320 Speaker 9: ticket sales as you pointed out, and then from merchandise sales, 521 00:24:44,359 --> 00:24:47,320 Speaker 9: and of course everything kind of feeds into everything, right, 522 00:24:47,359 --> 00:24:50,320 Speaker 9: this is this whole flywheel effect. So as we see 523 00:24:50,359 --> 00:24:53,200 Speaker 9: the interest build for the sports, as we see kind 524 00:24:53,200 --> 00:24:56,720 Speaker 9: of ratings go up, we see all these other ancillary 525 00:24:56,800 --> 00:25:00,840 Speaker 9: streams also kind of really do well. And that's exactly 526 00:25:00,880 --> 00:25:02,879 Speaker 9: where we're kind of seeing merchandise and we're seeing that 527 00:25:03,000 --> 00:25:05,040 Speaker 9: kind of across the board. You know, we see we 528 00:25:05,160 --> 00:25:08,080 Speaker 9: track merchandise sales even for some of the big companies, 529 00:25:08,200 --> 00:25:11,720 Speaker 9: you know, whether it's a Disney or you know, toy sales, 530 00:25:11,760 --> 00:25:14,680 Speaker 9: things like that, and across the board, you know, demand 531 00:25:14,720 --> 00:25:15,879 Speaker 9: has been fairly strong. 532 00:25:16,840 --> 00:25:20,720 Speaker 7: Our thanks to Githa, Reganathan, and Kevin Neir of Bloomberg Intelligence, 533 00:25:20,760 --> 00:25:22,800 Speaker 7: for joining us. Up next, we take a look at 534 00:25:22,800 --> 00:25:25,919 Speaker 7: some of the latest big money moves in sports and 535 00:25:26,040 --> 00:25:29,320 Speaker 7: talk a little about private equity with my colleagues Damian 536 00:25:29,400 --> 00:25:33,119 Speaker 7: Sasaur and Vanessa Perdomo. I'm Michael Barr. You're listening to 537 00:25:33,280 --> 00:25:36,679 Speaker 7: the Bloomberg Business of Sports Bloomberg Radio around the world. 538 00:25:49,520 --> 00:25:53,440 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 539 00:25:54,960 --> 00:25:57,240 Speaker 7: Thanks for joining us on the Bloomberg Business of Sports, 540 00:25:57,240 --> 00:25:59,160 Speaker 7: where we explore the big money issues in the world 541 00:25:59,160 --> 00:26:02,119 Speaker 7: of sports. I'm Michael Barr, along with Scarlett Fu and 542 00:26:02,359 --> 00:26:05,480 Speaker 7: Damian Sasaur. We've got an old friend of the show 543 00:26:05,560 --> 00:26:09,800 Speaker 7: joining us now. Xavier Gutierras is chairman and CEO of 544 00:26:09,840 --> 00:26:13,680 Speaker 7: Impact ex Sports Group. That's a private investment and strategic 545 00:26:13,720 --> 00:26:17,480 Speaker 7: advisory firm with a focus on the global sports industry. 546 00:26:17,920 --> 00:26:20,320 Speaker 7: He's here now to take us through some of the 547 00:26:20,400 --> 00:26:24,160 Speaker 7: latest developments in sports investing, including the growth of private 548 00:26:24,160 --> 00:26:28,000 Speaker 7: equity in sports. Xavier, welcome back to the Bloomberg Business 549 00:26:28,000 --> 00:26:28,560 Speaker 7: of Sports. 550 00:26:28,720 --> 00:26:30,359 Speaker 8: Thank you so much for having me. It's great to 551 00:26:30,359 --> 00:26:32,199 Speaker 8: see you guys again. I always enjoy coming in. 552 00:26:32,440 --> 00:26:32,680 Speaker 11: Man. 553 00:26:32,840 --> 00:26:35,880 Speaker 7: I thank you, we love talking to you and I'm 554 00:26:35,920 --> 00:26:37,760 Speaker 7: just gonna come out and say it, I have nothing 555 00:26:37,800 --> 00:26:41,679 Speaker 7: against Utah. Yes, you guys got the Utah hockey team. 556 00:26:42,240 --> 00:26:44,280 Speaker 7: God blesh blah blah blah blah blah blah. 557 00:26:44,280 --> 00:26:48,320 Speaker 11: But I look, I was really cool with I know, 558 00:26:48,600 --> 00:26:52,320 Speaker 11: the guy who is with the Phoenix Coyotes, and I'm like, 559 00:26:52,520 --> 00:26:55,600 Speaker 11: heck yeah, And then it didn't. 560 00:26:55,320 --> 00:26:58,040 Speaker 8: That no, it didn't and it was very very disappointing. 561 00:26:58,040 --> 00:27:01,040 Speaker 8: So so let me talk about Utah. Utah has been phenomenal. 562 00:27:01,119 --> 00:27:03,880 Speaker 8: I mean, if you look at the embrace of that 563 00:27:03,960 --> 00:27:08,560 Speaker 8: community of the fans. Ryan Smith is an amazing owner. 564 00:27:08,720 --> 00:27:11,080 Speaker 8: Obviously has done some incredible things with the Jazz and 565 00:27:11,119 --> 00:27:14,960 Speaker 8: now obviously with the with the hockey club, and you know, 566 00:27:15,560 --> 00:27:18,640 Speaker 8: absolutely a market that's going to be very successful for many, 567 00:27:18,680 --> 00:27:21,600 Speaker 8: many years. Unfortunately, you know, we had a plan, and 568 00:27:21,640 --> 00:27:26,120 Speaker 8: the plan was to build a privately funded arena entertainment district, 569 00:27:26,800 --> 00:27:29,560 Speaker 8: and it was very disappointing. That is a hockey market, 570 00:27:29,560 --> 00:27:31,480 Speaker 8: and I've said this from day one. It's the second 571 00:27:31,560 --> 00:27:35,439 Speaker 8: largest Canadian snowbird market and it's been you know, a 572 00:27:35,520 --> 00:27:39,000 Speaker 8: hockey market for thirty plus years and it will remain 573 00:27:39,200 --> 00:27:42,000 Speaker 8: to be a hockey market and hopefully the NHL will 574 00:27:42,040 --> 00:27:43,080 Speaker 8: be back there in the future. 575 00:27:43,200 --> 00:27:45,639 Speaker 7: I thought's Girland. It was a done deal. I'm like, 576 00:27:45,880 --> 00:27:48,040 Speaker 7: just like you see the black Jag dealers and they 577 00:27:48,040 --> 00:27:49,440 Speaker 7: slapped the hands coming. 578 00:27:49,200 --> 00:27:53,000 Speaker 4: Off next Yeah, so close. It was close. So, Javier, 579 00:27:53,200 --> 00:27:55,560 Speaker 4: you make really good points about Arizona being hockey market. 580 00:27:55,600 --> 00:27:58,560 Speaker 4: Certainly it's successful at the collegiate level. What will it 581 00:27:58,640 --> 00:28:02,359 Speaker 4: take for hockey pro hockey to be viable in Arizona? 582 00:28:02,880 --> 00:28:06,520 Speaker 8: A facility? It stops and starts with a facility. I 583 00:28:06,560 --> 00:28:11,000 Speaker 8: think that when the team first moved there from Winnipeg 584 00:28:11,119 --> 00:28:14,159 Speaker 8: in nineteen ninety six, if you recall, they actually played 585 00:28:14,160 --> 00:28:16,800 Speaker 8: where the Sun's currently played and they had instructed seats, 586 00:28:17,320 --> 00:28:20,240 Speaker 8: and then ultimately they moved out to Glende, Arizona, which 587 00:28:20,280 --> 00:28:23,639 Speaker 8: is a very vibrant and growing market. It has this 588 00:28:23,800 --> 00:28:28,440 Speaker 8: massive sports and entertainment center, but it wasn't the right 589 00:28:28,480 --> 00:28:31,600 Speaker 8: location for a sport that you need to bring people 590 00:28:31,640 --> 00:28:34,760 Speaker 8: in midweek. You know. Obviously the Cardinals do quite well, 591 00:28:35,040 --> 00:28:37,399 Speaker 8: it's one game a week, it's typically on the weekends. 592 00:28:38,080 --> 00:28:40,840 Speaker 8: But for us, it was quite challenging. It was a 593 00:28:40,880 --> 00:28:45,080 Speaker 8: little bit further away from sort of the core corporate center, 594 00:28:46,400 --> 00:28:51,520 Speaker 8: and so ultimately it really really undermined the attendance for many, 595 00:28:51,520 --> 00:28:54,120 Speaker 8: many years, and we tried to rectify that. We tried 596 00:28:54,160 --> 00:28:58,440 Speaker 8: to bring this vision of an entertainment district out in 597 00:28:58,440 --> 00:29:00,680 Speaker 8: the East Valley in Tempe first and then in North 598 00:29:00,680 --> 00:29:05,800 Speaker 8: Scottsdale or North Phoenix rather next to Scottsdale. And it 599 00:29:05,880 --> 00:29:06,920 Speaker 8: really is a facility. 600 00:29:07,280 --> 00:29:09,800 Speaker 4: Have you given up on the dream of pro hockey 601 00:29:09,840 --> 00:29:13,400 Speaker 4: in Arizona? If there is, If the NHL returns to Arizona, 602 00:29:13,800 --> 00:29:14,840 Speaker 4: would you be a part of it? 603 00:29:15,280 --> 00:29:18,719 Speaker 8: I mean, obviously you never say never. I do believe 604 00:29:18,760 --> 00:29:21,960 Speaker 8: that the NHL will be back in Arizona. I believe 605 00:29:22,080 --> 00:29:26,479 Speaker 8: that the fan bases there, the corporate bases there, the growth. 606 00:29:26,480 --> 00:29:30,840 Speaker 8: It's the fifth largest you know, DMA in the country, 607 00:29:31,280 --> 00:29:34,120 Speaker 8: and so you see all the momentum for sports there. 608 00:29:34,400 --> 00:29:37,080 Speaker 8: You need a facility, and in talking with folks at 609 00:29:37,080 --> 00:29:39,840 Speaker 8: the NHL, they'll tell you that that it needs to 610 00:29:40,240 --> 00:29:43,280 Speaker 8: You need to actually physically see it, or you need 611 00:29:43,320 --> 00:29:47,240 Speaker 8: to see the land being owned, the approvals having already 612 00:29:47,320 --> 00:29:50,440 Speaker 8: been granted, and the capital being assigned. And so I 613 00:29:50,480 --> 00:29:52,680 Speaker 8: do believe that that is a market that the NHL 614 00:29:52,680 --> 00:29:54,600 Speaker 8: would love to be back in at some point in 615 00:29:54,600 --> 00:29:55,040 Speaker 8: the future. 616 00:29:55,680 --> 00:30:00,320 Speaker 7: Javier was the first Latino CEO in NHL history, and 617 00:30:01,000 --> 00:30:04,760 Speaker 7: you were one of the few real estate executives also 618 00:30:05,480 --> 00:30:08,960 Speaker 7: in pro sports all together. And that's like I'm saying, 619 00:30:09,480 --> 00:30:13,120 Speaker 7: my man, all right now, But you know what, you 620 00:30:13,200 --> 00:30:17,080 Speaker 7: have something that is kicking butt here the Impact ex 621 00:30:17,120 --> 00:30:22,120 Speaker 7: Sports Group, and more importantly, let's just say it involves 622 00:30:22,960 --> 00:30:25,640 Speaker 7: the Giants, and I'm not talking about the football Giants. 623 00:30:26,640 --> 00:30:26,880 Speaker 11: Yeah. 624 00:30:26,920 --> 00:30:30,120 Speaker 8: Well, you know, we sold the team last year and 625 00:30:30,200 --> 00:30:32,840 Speaker 8: I took some time off. I traveled with my wife Jericha, 626 00:30:32,960 --> 00:30:35,280 Speaker 8: my son Hobby, who's now a junior in high school, 627 00:30:35,320 --> 00:30:37,520 Speaker 8: until we went to visit schools, and then I started 628 00:30:37,560 --> 00:30:40,120 Speaker 8: feeling a lot of phone calls from the private equity 629 00:30:40,160 --> 00:30:44,840 Speaker 8: firms really targeting sports. Not only was I honored to 630 00:30:44,880 --> 00:30:47,360 Speaker 8: be the first Latino CuO in the history of the NHL, 631 00:30:47,400 --> 00:30:49,479 Speaker 8: I was one of the few real estate and private 632 00:30:49,520 --> 00:30:53,040 Speaker 8: equity guys to run a team, and so as sports 633 00:30:53,240 --> 00:30:56,520 Speaker 8: has become this institutional asset class, a lot of folks 634 00:30:56,600 --> 00:30:59,240 Speaker 8: were interested in talking to me. And what I kind 635 00:30:59,240 --> 00:31:02,000 Speaker 8: of realized, you know what, I would love to take 636 00:31:02,000 --> 00:31:06,280 Speaker 8: your money, but I actually have a slightly different take 637 00:31:06,280 --> 00:31:10,240 Speaker 8: as to the opportunities that exist, and that is the 638 00:31:10,280 --> 00:31:13,320 Speaker 8: core asset is the team or the league or the university, 639 00:31:13,920 --> 00:31:16,040 Speaker 8: and they have things right in front of them that 640 00:31:16,080 --> 00:31:19,240 Speaker 8: they have to deal with, whether that's media facilities, you know, 641 00:31:19,360 --> 00:31:22,960 Speaker 8: players or the sporting side. Then to the side of 642 00:31:23,000 --> 00:31:27,480 Speaker 8: them are all of these amazing strategic ventures that if 643 00:31:27,480 --> 00:31:31,000 Speaker 8: they had a capital partner and an operator, that they 644 00:31:31,000 --> 00:31:34,400 Speaker 8: would love to go and take advantage of and it 645 00:31:34,440 --> 00:31:37,160 Speaker 8: would be a creative to the value. So people think 646 00:31:37,200 --> 00:31:40,400 Speaker 8: immediately real estate, but there's so much more. This is 647 00:31:40,440 --> 00:31:43,719 Speaker 8: the most valuable intellectual property in the world, and there 648 00:31:43,760 --> 00:31:46,680 Speaker 8: are so many other businesses that you can leverage this 649 00:31:46,840 --> 00:31:49,400 Speaker 8: intellectual property. And that's what I'm looking to do. So 650 00:31:49,480 --> 00:31:52,520 Speaker 8: on one hand, partner with these large private equity funds 651 00:31:52,520 --> 00:31:55,240 Speaker 8: to be my capital partner. On the other hand, create 652 00:31:55,320 --> 00:31:59,360 Speaker 8: joint ventures with teams and leagues and universities and say, 653 00:31:59,600 --> 00:32:04,680 Speaker 8: how do we continue to explore leveraging new opportunities strategic ventures. 654 00:32:04,880 --> 00:32:07,360 Speaker 4: So let's talk a little bit about private equities roles 655 00:32:07,440 --> 00:32:10,080 Speaker 4: in different teams. There was the news, of course that 656 00:32:10,240 --> 00:32:13,320 Speaker 4: Sixth Street Partners has bought a ten percent stake in 657 00:32:13,360 --> 00:32:16,400 Speaker 4: the San Francisco Giants, the MLB club, and of course 658 00:32:16,720 --> 00:32:19,960 Speaker 4: it's kind of the latest pe firm to enter pro 659 00:32:20,000 --> 00:32:21,880 Speaker 4: sports that already has stakes and a number of pro 660 00:32:21,920 --> 00:32:26,760 Speaker 4: sports teams, But just beyond providing funding for some of 661 00:32:26,760 --> 00:32:29,240 Speaker 4: those other opportunities that you talked about, how do you 662 00:32:29,240 --> 00:32:33,040 Speaker 4: see private equities role changing the operations of some of 663 00:32:33,080 --> 00:32:36,400 Speaker 4: these clubs and how they think about their growth potential. 664 00:32:36,640 --> 00:32:38,800 Speaker 8: Well, I think this is a fantastic example of this. 665 00:32:39,000 --> 00:32:42,400 Speaker 8: If you ask Sixth Street, and they've made a public 666 00:32:42,440 --> 00:32:44,920 Speaker 8: statement about this, and the Giants have as well, what 667 00:32:44,960 --> 00:32:47,719 Speaker 8: are they using the money for. It's not simply just 668 00:32:47,800 --> 00:32:52,080 Speaker 8: for the team. It's for these sort of extensions of 669 00:32:52,120 --> 00:32:55,360 Speaker 8: the sports enterprise that is the San Francisco Giants. So 670 00:32:55,360 --> 00:32:58,120 Speaker 8: there's the team and then there's the enterprise, and that 671 00:32:58,240 --> 00:33:04,000 Speaker 8: enterprise entails massive real estate project that surrounds the stadium 672 00:33:04,000 --> 00:33:08,000 Speaker 8: Oracle Park, and so that is what I see the 673 00:33:08,120 --> 00:33:11,400 Speaker 8: role of private equity is saying, what are these other 674 00:33:11,520 --> 00:33:15,479 Speaker 8: components of the enterprise of the holding company that we 675 00:33:15,520 --> 00:33:18,120 Speaker 8: can go and take advantage of and we can invest 676 00:33:18,160 --> 00:33:21,480 Speaker 8: in and that there are no limitations. Right, So there 677 00:33:21,480 --> 00:33:23,840 Speaker 8: are limitations when you invest in a team in terms 678 00:33:23,840 --> 00:33:27,760 Speaker 8: of the percentage of ownership, the structure, the debt. When 679 00:33:27,800 --> 00:33:30,720 Speaker 8: you're looking at these opportunities for the hold code, not 680 00:33:30,800 --> 00:33:33,840 Speaker 8: the team co a lot more flexibility, a lot more 681 00:33:33,880 --> 00:33:37,719 Speaker 8: exit opportunities, a lot more structuring. And so I believe 682 00:33:37,800 --> 00:33:42,080 Speaker 8: that private equity is looking at that opportunity and that 683 00:33:42,240 --> 00:33:46,360 Speaker 8: valuation increase, and I think we're barely at the first 684 00:33:46,400 --> 00:33:50,640 Speaker 8: inning of looking at that as a as an investment opportunity. 685 00:33:50,800 --> 00:33:54,840 Speaker 7: I used to say that in order, how does an 686 00:33:54,880 --> 00:33:59,080 Speaker 7: owner make money when he or she sells the team. 687 00:33:59,520 --> 00:34:03,440 Speaker 7: Now with private equity, they can make some coin. Because 688 00:34:03,760 --> 00:34:05,800 Speaker 7: let's think about it, maybe there are some folks out 689 00:34:05,840 --> 00:34:09,040 Speaker 7: there way back, you know, that bought a team for 690 00:34:09,280 --> 00:34:12,120 Speaker 7: thirty four dollars and a six pack, and now this 691 00:34:12,239 --> 00:34:16,160 Speaker 7: team is like in the billions. So all you could 692 00:34:16,200 --> 00:34:19,560 Speaker 7: just put up, like you said, like ten percent, and man, 693 00:34:19,600 --> 00:34:20,600 Speaker 7: you've made money back. 694 00:34:20,800 --> 00:34:24,600 Speaker 8: Absolutely well. Obviously, the valuation increases are based on so 695 00:34:24,680 --> 00:34:28,200 Speaker 8: many things. Right, you have certain contracted and growing revenue 696 00:34:28,239 --> 00:34:31,840 Speaker 8: for the teams, whether it's media rights, whether it's sponsorships 697 00:34:31,840 --> 00:34:35,640 Speaker 8: which are multi year, even there's been studies done that 698 00:34:35,880 --> 00:34:39,360 Speaker 8: you know, the renewal rates for season ticket members are 699 00:34:39,400 --> 00:34:43,000 Speaker 8: fairly consistent, all right, and so so you have this 700 00:34:43,160 --> 00:34:46,839 Speaker 8: revenue stream. But the other opportunity is very simple. Take 701 00:34:46,880 --> 00:34:49,600 Speaker 8: the team and look at everything else around it. I've 702 00:34:49,600 --> 00:34:52,880 Speaker 8: said from day one, these teams are health and wellness businesses, 703 00:34:53,200 --> 00:34:57,480 Speaker 8: they're technology businesses, they're consumer businesses, they're real estate businesses. 704 00:34:57,800 --> 00:34:59,120 Speaker 4: That's a lot of different industries. 705 00:34:59,640 --> 00:35:02,799 Speaker 8: Percent and so when you think of the valuation, because 706 00:35:02,840 --> 00:35:05,560 Speaker 8: I get asked all the time, are we at peak valuations? 707 00:35:05,560 --> 00:35:08,640 Speaker 8: I said, well, number one, most teams haven't tapped into 708 00:35:08,680 --> 00:35:12,040 Speaker 8: their international markets. Number two, they haven't tapped into these 709 00:35:12,200 --> 00:35:16,800 Speaker 8: enterprises that are extensions of the core asset. And plenty 710 00:35:16,800 --> 00:35:18,600 Speaker 8: of people who have talked about I know George Pline 711 00:35:18,600 --> 00:35:23,080 Speaker 8: at Brewing Capital had an extensive, you know, conversation very 712 00:35:23,120 --> 00:35:27,680 Speaker 8: early on about these are enterprises, not teams. And what 713 00:35:27,719 --> 00:35:31,720 Speaker 8: you're seeing now is the investment thesis really pursuing. 714 00:35:31,280 --> 00:35:34,800 Speaker 4: That playing itself out. Absolutely, talk a little bit about 715 00:35:34,840 --> 00:35:38,520 Speaker 4: your role as a Latino owner of a major sports 716 00:35:38,560 --> 00:35:41,879 Speaker 4: team and with your movement to impact Exports Group and 717 00:35:41,920 --> 00:35:45,640 Speaker 4: your efforts to get private equity and think through building 718 00:35:45,640 --> 00:35:48,560 Speaker 4: out the enterprise value. We're in a very different cultural 719 00:35:48,560 --> 00:35:52,400 Speaker 4: moment right now. The Trump administration has been very vocal 720 00:35:52,760 --> 00:35:59,080 Speaker 4: opposing anything DEI related. I'm wondering how that changes how 721 00:35:59,120 --> 00:36:00,560 Speaker 4: you market what you're doing. 722 00:36:00,960 --> 00:36:02,640 Speaker 8: I don't think it changes at all. I think one 723 00:36:02,680 --> 00:36:08,720 Speaker 8: of the areas that you see an emphasis on leaning 724 00:36:08,800 --> 00:36:13,840 Speaker 8: into the growth cohorts, which are young, female, diverse, tech savvy, 725 00:36:14,160 --> 00:36:17,480 Speaker 8: and purpose driven, is actually in sports, this is a 726 00:36:17,560 --> 00:36:22,399 Speaker 8: business imperative. These are consumer businesses. So what does the 727 00:36:22,400 --> 00:36:26,359 Speaker 8: consumer look like in America? Where is it growing? When 728 00:36:26,400 --> 00:36:29,520 Speaker 8: you think of where these professional sports teams are. So 729 00:36:29,800 --> 00:36:31,759 Speaker 8: I've been asked a lot about well, you know the 730 00:36:31,840 --> 00:36:35,879 Speaker 8: backlash against DEI. I said, this isn't a DEI sor, 731 00:36:36,960 --> 00:36:38,239 Speaker 8: this is not a field with thing. This is a 732 00:36:38,280 --> 00:36:42,560 Speaker 8: business imperative. When you think of what the giants and 733 00:36:42,640 --> 00:36:47,320 Speaker 8: where they're located, and who they're targeting as ticket goers, 734 00:36:47,880 --> 00:36:51,480 Speaker 8: as social media followers, as people buying merchandise, it's a 735 00:36:51,640 --> 00:36:55,399 Speaker 8: very diverse community. They're leaning into that. I haven't heard 736 00:36:55,480 --> 00:36:59,640 Speaker 8: a single team or league saying, oh, we're backing away 737 00:36:59,719 --> 00:37:01,520 Speaker 8: from where the growth is coming in. 738 00:37:01,440 --> 00:37:02,640 Speaker 4: From recognizing their market. 739 00:37:02,680 --> 00:37:05,680 Speaker 8: They're absolutely recognizing their market and they're trying to be 740 00:37:05,800 --> 00:37:09,320 Speaker 8: creative and innovative in terms of how do we capture 741 00:37:09,360 --> 00:37:12,439 Speaker 8: them where you know, being where they're at and being 742 00:37:12,560 --> 00:37:17,440 Speaker 8: in unexpected places. So you're seeing collaborations across fashion brands 743 00:37:17,440 --> 00:37:22,040 Speaker 8: that you've never seen before. The omnipresence of sports across 744 00:37:22,200 --> 00:37:26,840 Speaker 8: multiple industries is a very concerted effort to go after 745 00:37:27,239 --> 00:37:30,160 Speaker 8: this growth cocor so for me, when people talk to 746 00:37:30,200 --> 00:37:33,239 Speaker 8: me about, oh, you know, what's your reaction to this fact, 747 00:37:33,520 --> 00:37:37,520 Speaker 8: I'm here to, you know, pursue a business imperative of 748 00:37:37,600 --> 00:37:40,600 Speaker 8: capturing growth, and this is where I'm going after it. 749 00:37:40,719 --> 00:37:43,880 Speaker 7: Our thanks to Impact ex Sports Group Chairman and CEO 750 00:37:44,080 --> 00:37:47,799 Speaker 7: Xavier Gutierrez for joining us, and thank you for joining us. 751 00:37:47,840 --> 00:37:51,760 Speaker 7: For my colleagues Scarlett Fou, Damien Saasaur and Vanessa Perdomo. 752 00:37:51,880 --> 00:37:54,400 Speaker 7: I'm Michael Barr. Tune in again next week for the 753 00:37:54,440 --> 00:37:57,240 Speaker 7: latest on the stories moving big money in the world 754 00:37:57,239 --> 00:37:59,920 Speaker 7: of sports, and don't forget to catch our podcast all 755 00:38:00,080 --> 00:38:03,600 Speaker 7: all your podcast platforms. You're listening to The Bloomberg Business 756 00:38:03,600 --> 00:38:06,320 Speaker 7: of Sports from Bloomberger Radio around the world.