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Speaker 1: This is Bloomberg Business of Sports. The world changing and

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Speaker 1: what are things we can do to transform our business

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Speaker 1: and engage our fans globally in different ways. People are

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Speaker 1: using their name and likeness to create more opportunities, more

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Speaker 1: steaks and companies. In order to turn the organization around,

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Speaker 1: we had to turn it around not only just on

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Speaker 1: baseball operations side, but other business operations side well and

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Speaker 1: any other sport is very difficult, but I like to

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Speaker 1: blog my horizons and be able to expand. Sports need

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Speaker 1: to be consumed a lot and not to a big

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Speaker 1: competitive advantage for in artual property holders of sports content

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Speaker 1: in the media landscape. Bloomberg Business of Sports from Bloomberg Radio.

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Speaker 1: Hi everyone, I'm Jason Kelly, and I'm Mike Lynch and

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Speaker 1: I'm Michael bar Over the next hour, we will explore

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Speaker 1: the big money issues in the world of sports and

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Speaker 1: talk to some of the biggest players in the industry. Yeah.

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Speaker 1: Coming up, we are going to have a very timely

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Speaker 1: conversation with Milwaukee Bucks President Peter Fagan. Of course, the

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Speaker 1: Bucks making a deep run into the NBA playoffs. This

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Speaker 1: is a guy who's had a fascinating career across both

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Speaker 1: sports and investment there in Milwaukee oversees the arena as well,

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Speaker 1: and anybody who's been watching TV during these playoffs has

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Speaker 1: seen there's just a lot of hype, a lot of enthusiasm,

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Speaker 1: a lot of heat around the Bucks there locally, and

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Speaker 1: so eager to get into that conversation with him. Before

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Speaker 1: we get to that, though, guys, we should talk about

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Speaker 1: what's been going on in the world of sports. The

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Speaker 1: biggest thing really is July one. It happened this week,

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Speaker 1: which meant name, image, and likeness. Here we go. It's happening,

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Speaker 1: and not just in the fifteen states where it has

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Speaker 1: been enacted by state legislatures, Lynchy, but the n C

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Speaker 1: double A literally hours before July one came out and said,

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Speaker 1: all right, okay, you guys can go and make some

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Speaker 1: money off of your name, image and likeness. I really

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Speaker 1: feel like not to overstate it, we are going to

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Speaker 1: look back on this as the day that sports really changed.

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Speaker 1: You've got deal is already happening for college athletes. The

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Speaker 1: first two things that came to mind for me were

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Speaker 1: Title nine and then the eligibility of freshmen to play

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Speaker 1: with varsity sports in college. And now this is going

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Speaker 1: to be one of the biggest turning points in the

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Speaker 1: history of college sports, where now the n c double

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Speaker 1: A has said that student athletes can do commercials, they

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Speaker 1: can endorse products, they can get money for signing autographs. Uh.

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Speaker 1: They just however, can't get paid by the university to play.

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Speaker 1: So this is going to be you want to talk

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Speaker 1: about the juggling four or five six balls in the air.

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Speaker 1: This is happening, as you said, Jason, the number of

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Speaker 1: states that are going to legalize it, and who's gonna

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Speaker 1: be who's gonna have the final say, I mean, who's

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Speaker 1: going to be where are the checks and balances and

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Speaker 1: this and that? That's going to be the big problem. Well,

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Speaker 1: it's ultimately going to come down to and it hasn't

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Speaker 1: gotten there yet to Congress. But you know, I will say,

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Speaker 1: Michael barr And I think I've asked you this question

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Speaker 1: before and I remain interested in it, which is, does

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Speaker 1: amateurism or the lack thereof which you could argue that

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Speaker 1: amateurism no longer exists in college sports. If players are

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Speaker 1: getting paid in some form or fashion, does that change

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Speaker 1: the way you view college sports? No? And and the

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Speaker 1: reason why it's let me put it this way. I

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Speaker 1: guess my best example, if you have a high school

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Speaker 1: basketball team, the high school itself is not making money

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Speaker 1: off the high school basketball team. But when you take

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Speaker 1: it up now to college, and this has been going

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Speaker 1: on for many years before this new rule, the athletes

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Speaker 1: weren't making any money, but the college was making hand

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Speaker 1: over fist of money over these athletes, over these teams,

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Speaker 1: from the football team, the basketball team, and so on.

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Speaker 1: And I always say this started way back when the

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Speaker 1: video game came out for NC Double A Basketball and

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Speaker 1: you would see some of the likeness of some of

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Speaker 1: the players in the game, and the athletes finally said,

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Speaker 1: wait a minute, you're taking my likeness and my name

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Speaker 1: and and I'm not getting any money out of this.

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Speaker 1: Is like wait a minute. So I always say that's

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Speaker 1: the point when the match was struck and everything started

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Speaker 1: to change. So Lynchy and I know we've talked about

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Speaker 1: this before, and you know you're a former college athlete,

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Speaker 1: and you know, I do wonder what you think about this.

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Speaker 1: I do think it may change, if not the way

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Speaker 1: we watch sports, it may change where athletes end up

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Speaker 1: going to college. Don't you think that's possible. Yeah, if

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Speaker 1: you get to an area that's a big market that

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Speaker 1: has all kinds of companies that will will elevate the

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Speaker 1: profile of the student athletes. They're they're gonna gravitate towards

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Speaker 1: those schools. Um already right now, I'm looking on social

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Speaker 1: media and they For instance, there's a basketball player from

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Speaker 1: Baylor who's who now is going on cameo and he

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Speaker 1: will send personal videos to anyone for forty five dollars.

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Speaker 1: That's happening right now as we speak. Um, there's a

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Speaker 1: bunch of players at a small school like Jackson State

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Speaker 1: right now who have ink deals with Three Kings Grooming,

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Speaker 1: which is a black gown business. So it's happening right

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Speaker 1: now at the very small school level. But I can

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Speaker 1: only imagine when you get to a place like USC

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Speaker 1: deals are going to be offered. I mean, you know,

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Speaker 1: Fred's Fred's Ford in Tuscaloos or Alabama. How much is

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Speaker 1: he gonna give, you know, Michael Barr, my starting middle

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Speaker 1: linebacker to endorse the Ford cars that his dealership. Yeah,

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Speaker 1: it's interesting too. I mean you're also I think going

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Speaker 1: to have it come the other way, which is National

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Speaker 1: Brands essentially going through and picking out Okay, well, this

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Speaker 1: is an athlete who already has a massive social following.

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Speaker 1: There's a great example of this that literally came out

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Speaker 1: um on July one, the morning of July one, which

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Speaker 1: is boost Mobile, which is a wireless company they endorsed

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Speaker 1: to are they want endorsements from two college student athletes.

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Speaker 1: They are paying to be endorsed by these athletes, and

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Speaker 1: it's twin guards, the Cavendar Twins who play at Fresno State.

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Speaker 1: They have massive, massive social media following some of the

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Speaker 1: biggest of n C double A athletes. To put some

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Speaker 1: numbers around that five million total followers across Twitter, YouTube, Instagram,

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Speaker 1: and TikTok. And so if you're sitting there in your

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Speaker 1: boost Mobile, you're gonna pay them to endorse your product

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Speaker 1: because they're in the same way that their influencers who

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Speaker 1: you know endorsing makeup brands or other things across or

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Speaker 1: outside of the sports world. I should say, uh, this

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Speaker 1: is what they're gonna do. So it's not going to

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Speaker 1: be for everyone. There's a question I saw on Twitter

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Speaker 1: that said, you know, will we see in multiple athletes

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Speaker 1: make more than a million dollars? I think we will.

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Speaker 1: I absolutely think we will. Yeah, and and and the

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Speaker 1: one thing, and I've brought this up before and I'll

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Speaker 1: say it again, and we all talked about this. Now

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Speaker 1: you're dangling all of this money if you want to

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Speaker 1: call it that or whatever, out in front of a

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Speaker 1: college athlete. What I worry about is somebody somebody named

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Speaker 1: Benny getting in there and wanting to fix the game.

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Speaker 1: You know, Okay, you can win, but you know, keep

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Speaker 1: it within the spread and this and that whatever. That's

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Speaker 1: what I really worry about. And I hope that the

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Speaker 1: n C double A that they have some sort of

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Speaker 1: schooling on this to where to the athletes where they

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Speaker 1: need to know, don't do this, because this is going

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Speaker 1: to be a mess if you do. Everybody named Benny

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Speaker 1: who's listening to this show, it's like, what are you

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Speaker 1: going to single out the Bennys, the some like you

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Speaker 1: know very you know, Uh, I gotta I got a

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Speaker 1: cousin name Benny. He's mad, It's all kay, are that bar?

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Speaker 1: Come on? I'm I'm lean upstanding U find upstanding citizen. Alright? Uh,

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Speaker 1: speaking of big money, let's talk about the sports. This

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Speaker 1: is something I know that's close to your heart. Michael Barr,

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Speaker 1: because I believe you have an E sports aficionado, E

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Speaker 1: sports player in your household. Complexity this is a franchise

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Speaker 1: that's backed by Dallas Cowboys owner Jerry Jones, acquired for

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Speaker 1: twenty six point seven million dollars by a larger E

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Speaker 1: sports company. It just so happens we had the CEO

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Speaker 1: of Complexity, Jason lake On a year ago. So this

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Speaker 1: is just as the pandemic was starting to take hold.

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Speaker 1: Talking about the opportunities check it out. The sports has

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Speaker 1: definitely been pushed to the forefront of sports entertainment. There

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Speaker 1: was a NASCAR Pro Invitational eye racing series that had

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Speaker 1: like one point three million viewers UM and that was

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Speaker 1: on Fox E. S L has their counter Strike League

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Speaker 1: that was meant to be played in Malta, but that

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Speaker 1: was moved online and it sawking current viewership over three

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Speaker 1: hundred and fifty five thousand UM. You know for online

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Speaker 1: matches that that's a significant number. UM. People are watching gamings,

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Speaker 1: they're participating in gaming and record numbers, viewership set record numbers,

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Speaker 1: and uh, it's a really interesting time for our business. Well,

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Speaker 1: certainly an interesting time. And you have seen a lot

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Speaker 1: of the big owners. This is what's so fascinating to me, Lynchy.

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Speaker 1: You've seen a lot of the big owners, I believe,

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Speaker 1: including the Crafts up there in New England, invest you know,

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Speaker 1: pretty aggressively into e sports. They obviously have a deep

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Speaker 1: interest in real sports and non e sports, but this

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Speaker 1: is where the world is going. I believe the Celtics

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Speaker 1: owners have invested here as well, ted Leonsis, who not

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Speaker 1: surprisingly has gone there in part because he made his

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Speaker 1: money at A O L, his initial fortune at A

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Speaker 1: O L. I mean, these guys are in but you

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Speaker 1: walk into any professional locker room, whatever sport it is,

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Speaker 1: and if the players aren't watching the TV another like

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Speaker 1: a baseball game, if it's a baseball locker room, they're

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Speaker 1: playing the sports in front of the locker with somebody

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Speaker 1: else in another part of the world. And I think

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Speaker 1: the owners, you know, have their intent or up. They

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Speaker 1: see this what's going on, and they realize what a

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Speaker 1: great investment it is. And I mean the Dallas Cowboys

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Speaker 1: actually have like a room in their their headquarters in

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Speaker 1: Texas for for e sports. Um and now they've they've

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Speaker 1: they've turned us into what almost twenty seven million dollars

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Speaker 1: in that sale Yeah, amazing, amazing. I am just amazed

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Speaker 1: by the way that how E Sports has exploded in

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Speaker 1: the past several years. And I thank you to my

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Speaker 1: boy for my sixteen year old who educated me on

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Speaker 1: east sports because I was watching him playing a real

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Speaker 1: tournament and I and the intensity involved is night and day.

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Speaker 1: Then you know, when he's beating dad playing risk on

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Speaker 1: the on the computer, it's a night and day difference, folks. Well,

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Speaker 1: thanks so much for john this everyone. We're here each

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Speaker 1: and every week for you at the same time talking

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Speaker 1: to the biggest names in sports. I'm Jason Kelly along

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Speaker 1: with Mike Lynch and Michael Barr. You know, we like

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Speaker 1: our conversations to be timely, guys, we like our guests

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Speaker 1: to be sort of in the news. Well, we're certainly

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Speaker 1: delivering for you this week. Milwaukee Bucks president Peter Fagan

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Speaker 1: joins us in the midst of a playoff run for

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Speaker 1: that team, for that city. So much excitement around these playoffs. Peter,

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Speaker 1: really nice to have you with us. Thanks for having me,

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Speaker 1: big fan of the show. Well, thank you, uh so

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Speaker 1: tell us about life inside the Bucks organization right now. Obviously,

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Speaker 1: every everyone of the past few seasons has been a

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Speaker 1: little bit different, uh in the NBA. But we're taping

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Speaker 1: this on a Thursday morning. Uh, tell us what's going

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Speaker 1: on with you and and the team and how you're

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Speaker 1: viewing this run? Yeah, I think you know. And I

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Speaker 1: come in the town crier for the organization and this

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Speaker 1: is just hollow time. You know, this is surreal. This

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Speaker 1: is where we where you're on a global platform on

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Speaker 1: the Eastern Conference finals, and and these moments don't exist

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Speaker 1: that that much, especially like in a market, in a

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Speaker 1: smaller market like Milwaukee. What it means for us coming

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Speaker 1: out of a pandemic, what it means for us going

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Speaker 1: into next year, what it means for us as a brand,

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Speaker 1: as an enterprise, um and and what the what the

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Speaker 1: prospective point to the finals are all like these monumental

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Speaker 1: events slash opportunities that you just have to prepare and

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Speaker 1: and really and and gravitate to as quickly as possible. Peter,

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Speaker 1: I gotta bring up the elephant in the room and

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Speaker 1: we're kind of talking about it off air. Janas Onto

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Speaker 1: the compo scare the daylights out of me because he

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Speaker 1: went down with a knee injury. Fortunately, your star player.

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Speaker 1: It looks like there is no structural damage as we're talking. Yeah,

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Speaker 1: I think that's when you get us. I think this

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Speaker 1: is part of the sport. You know, is is health.

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Speaker 1: You know, nobody talks about it, but it is probably

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Speaker 1: number one. Uh kind of variable is is how do

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Speaker 1: you stay healthy? How do you stay injured free? And

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Speaker 1: and and you know, for all of us that the

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Speaker 1: the fact that he has no structural damage, and that

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Speaker 1: he's you know, literally walking stairs yesterday. And and the

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Speaker 1: honest you know is, if you don't know him, he's

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Speaker 1: the guy you think he is, you'd have to fight him.

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Speaker 1: Uh not to play. Um if a doctor says he

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Speaker 1: can actually walk and rehab to get it done. So

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Speaker 1: you know, I think, obviously in the short term not

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Speaker 1: an option to play, but you know, in in the

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Speaker 1: longer term, we'll take it day by day and see

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Speaker 1: where he is. So I think, optimistically, the best news

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Speaker 1: we possibly could have gotten. I think, uh, he you know,

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Speaker 1: hopefully we we we we kind of get through the

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Speaker 1: Eastern Conference finals, get this win at home, get onto

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Speaker 1: the next game, and you know, have Janice has the

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Speaker 1: ability to play, which would just be incredible. Hey, eater,

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Speaker 1: it's Mike up in Boston. Um, I was doing a

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Speaker 1: little research for this interview, and I saw an advertisement

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Speaker 1: that the Bucks pro Shop is hiring temporary staff to

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Speaker 1: the rest of the playoffs. I assume that's probably reflective

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Speaker 1: of everything that's going on within your organization in the

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Speaker 1: city of Milwaukee. Yeah, I think labor is kind of

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Speaker 1: one of these issues when you talk about operations that

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Speaker 1: the whole country is going through. Uh, we have this

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Speaker 1: incredible moment where we springboard into full operations kind of

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Speaker 1: from zero, you know, to beyond capacity. We've we've got

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Speaker 1: a we've got a deer district out here in a

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Speaker 1: plaza that does about twenty people outside and you know,

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Speaker 1: we've got seventeen thousand people inside, and the labor market

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Speaker 1: is just crunched and very difficult to staff. So, you know, uh,

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Speaker 1: ahead of like trying to build our online audience, monetize

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Speaker 1: our sponsorships, maximize our ticket prices, like our staffing challenges

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Speaker 1: have have have have been, have been really challenging for

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Speaker 1: us and for all kind of businesses as we go forward.

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Speaker 1: So we are we're at the same time we're running

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Speaker 1: towards the NBA Championship, we are recruiting labor like we've

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Speaker 1: never had to before Peter tell us more about the

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Speaker 1: Deer District, because I think anybody who's tuned into these playoffs,

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Speaker 1: you know that you have these great shots of of

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Speaker 1: all those fans just going nuts there outside. But my

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Speaker 1: understanding and keep us honest here is this was not

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Speaker 1: always the case. This is something that has been really

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Speaker 1: created by you and the organization. We should point out,

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Speaker 1: um that you oversee the visor form the arena as well.

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Speaker 1: I mean, this is this is a master plan in

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Speaker 1: many ways, walk us through that. Well. The owners always

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Speaker 1: like to remind me, like Mark West and Jamie that

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Speaker 1: you know, the vision was build it and they will

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Speaker 1: come and and Milwaukee never really had a central meeting place,

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Speaker 1: never really had a living room, you know, for people

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Speaker 1: to gather. And one of the visions of this was like,

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Speaker 1: how do we create a destination. And we're able to

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Speaker 1: acquire thirty acres of of of downtown Milwaukee with the

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Speaker 1: setup piece being the arena, and really around it is like,

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Speaker 1: how do we create density of people and really you

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Speaker 1: know kind of fuel uh and energize the district with retail,

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Speaker 1: with residential, with commercial and and that's that's happened and

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Speaker 1: the success of the team has been the accelerant to

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Speaker 1: really to really make that happen in short term, and

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Speaker 1: especially coming out of the pandemic, to kind of to

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Speaker 1: to to really inject some some energy and enthusiasm in

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Speaker 1: downtown Milwaukee in a really short period of time has

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Speaker 1: been incredible. So, you know, we're we're now at you know,

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Speaker 1: I don't think we ever want to say the world

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Speaker 1: word capacity, but we are like kind of challenged more

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Speaker 1: and more as we grow about ten or twenty. Every game,

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Speaker 1: whether it's a rote or home game to over twenty

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Speaker 1: people is like, how do we continue to service and

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Speaker 1: and and kind of entertain these these large groups, like

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Speaker 1: in the plaza on the outside, it's become almost a

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Speaker 1: bigger event outside than it has inside. That is huge

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Speaker 1: because that means so much money for the local economy,

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Speaker 1: especially the local guys, the restaurants and and and there

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Speaker 1: looks the shops that are there as we pass and

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Speaker 1: hopefully you put COVID in the rear view mirror. That

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Speaker 1: has to be, as you mentioned, a shot for the

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Speaker 1: economy in that local area, no question. I mean the

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Speaker 1: thousands of hotel room nights, the rental cars, the dinners, um,

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Speaker 1: you know, the traffic, the pedestrians. It is. It is

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Speaker 1: truly kind of the blessing that's come with winning to

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Speaker 1: help supercharge, you know, the the Milwaukee downtown economy much

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Speaker 1: faster than it ever would have been done before. Peter,

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Speaker 1: I remember the old Meco of the Buckey used to

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Speaker 1: play and the only place to go after the game

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Speaker 1: was Major Gouldsby's across the street, So the teen thousand

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Speaker 1: people would try to cram in there every single night.

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Speaker 1: How did this explode? It happened that it happened before

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Speaker 1: this team's success Or did this did the Dare District

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Speaker 1: need the success of the team to be where it

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Speaker 1: is right now? Well, I mean we're it's kind of

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Speaker 1: the perfect storm. So we certainly had the vision and

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Speaker 1: the development, you know, prior to the real success of

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Speaker 1: the team. I think kind of as we were peaking

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Speaker 1: in nineteen and kind of going to the Eastern Conference

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Speaker 1: finals in the first year of the arena um, you know,

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Speaker 1: we we built this new area kind of in a

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Speaker 1: in an instant um caught fire and interest. We had

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Speaker 1: to take kind of a year off, you know, for

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Speaker 1: the pandemic, and now we've kind of started up again

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Speaker 1: and and restarted at a higher level, which is just

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Speaker 1: like fantastic. So we're very nervous about you know, when

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Speaker 1: you build a new arena and you've got a new

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Speaker 1: district and you've got some entertainment and entertainment and residential, like,

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Speaker 1: how do you keep the momentum going? So the success

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Speaker 1: certainly is paramount to fueling the restart in in such

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Speaker 1: a big way. And it's it's kind of you know,

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Speaker 1: this model of really using these superbrands of teams and

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Speaker 1: arenas like around districts. You know, whether it's Kansas City well,

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Speaker 1: whether it's l A Live, whether it's Columbus, Ohio, has

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Speaker 1: really been a model to supercharge, you know, a micro economy. Peter,

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Speaker 1: help us understand some of the kind of not going effects,

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Speaker 1: as it were, for the business when it comes to

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Speaker 1: season ticket holders, when it comes to sponsors coming out

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Speaker 1: of that bubble year into limited capacity now full capacity,

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Speaker 1: deer district, etcetera. How do you manage the business through that,

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Speaker 1: and specifically there in Milwaukee, because across the thirty franchises,

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Speaker 1: everybody was in a slightly different position. Yeah, well, I

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Speaker 1: think you know, you know, we don't advertise the fact

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Speaker 1: that this was this was a devastation to the industry,

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Speaker 1: you know, much like the entire country, in the entire world.

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Speaker 1: You know, we went from we went from midstream of

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Speaker 1: the season to to zero, you know, and we've got large,

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Speaker 1: large physical plants, we've got huge employee bases, you know,

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Speaker 1: to to operate these and uh certainly were fueled on content,

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Speaker 1: you know, whether it be NBA games in our case,

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Speaker 1: Marquette games, concerts and family events to kind of go

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Speaker 1: to zero. So you know, we went into you know,

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Speaker 1: we we went into a year you know, with with

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Speaker 1: not much revenue and losses we had never seen before.

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Speaker 1: So the ability to to really jump out of of

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Speaker 1: of the pandemic with with a high paced, winning team,

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Speaker 1: with excitement, with people like beyond eager to get out

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Speaker 1: of their homes and socialize and uh being has really

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Speaker 1: kind of has surprised us in a big way. And

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Speaker 1: it is the ripple effect, you know, not just for

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Speaker 1: local economy but for us obviously. How do we how

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Speaker 1: do we accept alorate season ticket sales for next year,

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Speaker 1: How do we create values for sponsorships, how do we

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Speaker 1: continue to build like our online audience to to monetize

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Speaker 1: and things like that. So for us, like we figured, hey,

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Speaker 1: you know it's gonna take us, it's gonna take us

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Speaker 1: a year to dig out of this debt hole and

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Speaker 1: and kind of get back to ninety levels. And I

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Speaker 1: think if you have a deep run in the playoffs,

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Speaker 1: like what that does is kind of cut that down

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Speaker 1: to you know, we could be looking at normalcy, you

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Speaker 1: know starting next season, which is which is incredible. You've

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Speaker 1: got an NBA team, A lot of cities have an

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Speaker 1: NBA and NHL team sharing the same arena. What kind

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Speaker 1: of other events do you have to fill up the

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Speaker 1: rest of the dates during the calendar year. Yeah, so,

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Speaker 1: I mean we we kind of like you know, we

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Speaker 1: we we had our first full year about a hundred

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Speaker 1: and fifty real events and that's you know, half of

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Speaker 1: those are are kind of what I call the team sports.

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Speaker 1: And whether it's it's Bucks, it's Marquette, it's n T

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Speaker 1: A A. And then what you really do is balt

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Speaker 1: set out with you know, forty to fifty concerts. On

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Speaker 1: top of that, you've got to create your family shows

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Speaker 1: and think of everything from your Feld shows to your

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Speaker 1: Disney on ices, to your rodeos, to your w w

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Speaker 1: E s to your UFC s and then you know,

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Speaker 1: you kind of figure out where you are in the

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Speaker 1: market and what you can customize and how you can

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Speaker 1: do some in house kind of concerts that would you know,

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Speaker 1: and and special shows too to comedy shows. Um. You know,

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Speaker 1: we think we've built this arena to be the gold

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Speaker 1: standard of where people want to come, where people can

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Speaker 1: can really you know, habitate and have a fun time

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Speaker 1: like in and around the district. And it's a destination,

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Speaker 1: you know, and and you know, regionally, it's easier to

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Speaker 1: get to five Surf Forum from northern you know, Illinois

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Speaker 1: than it is to get to the United Center. And

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Speaker 1: how do we create that great experience? How do we

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Speaker 1: attract people you know from a couple hundred miles and

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Speaker 1: have marquee events, um and make it special? So for us,

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Speaker 1: it's like continuing to build that content schedule in like

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Speaker 1: a very big way. And you know, I think we

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Speaker 1: should be a we should be a facility doing you know,

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Speaker 1: two two hundred and fifty events, you know, including another

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Speaker 1: hundred events outside and whether that's a chris Kin kindle,

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Speaker 1: you know, Christmas mart to to farmers markets, to ice

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Speaker 1: skating rinks in the summer, I mean, there's so much

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Speaker 1: and so many great examples of what's done, and we're

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Speaker 1: still in the kind of incubator stage of finding out

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Speaker 1: what works and and how do we how do we

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Speaker 1: continue to build it up. Peter talked to us about

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Speaker 1: the fan base and and especially sort of overlaying that

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Speaker 1: with the arena and you know, balancing affordability and perks

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Speaker 1: and access and you know, especially at this time where

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Speaker 1: it feels like fans are enthusiastic, emboldened, and all of

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Speaker 1: those things that manifest whether it's on social media or

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Speaker 1: you know, looking at at various things that are happening

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Speaker 1: across UH pro sports, help us understand your fan base

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Speaker 1: and how you serve them as from a customer perspective. Yeah,

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Speaker 1: I mean, great question, because this is like, this is

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Speaker 1: a valued based fan base. Like you can't imagine there

429
00:24:15,040 --> 00:24:18,360
Speaker 1: are price points where there are inflection points. Uh, this

430
00:24:18,440 --> 00:24:21,440
Speaker 1: is a this is a consumer base that that actually

431
00:24:21,480 --> 00:24:24,439
Speaker 1: looks at their receipts, which like I've never seen before.

432
00:24:24,600 --> 00:24:27,080
Speaker 1: You know, coming from larger markets, you know you never

433
00:24:27,119 --> 00:24:30,359
Speaker 1: have to worry about beer prices or food prices. You

434
00:24:30,400 --> 00:24:32,879
Speaker 1: do here, and you do have to figure out, you know,

435
00:24:33,480 --> 00:24:35,800
Speaker 1: how we align with the brewers on you know what

436
00:24:35,880 --> 00:24:39,160
Speaker 1: our twenty beer prices in in a big way. People

437
00:24:39,200 --> 00:24:41,520
Speaker 1: do not want to get ripped off. People want value

438
00:24:41,560 --> 00:24:44,560
Speaker 1: for their money. People have have kind of stayed on

439
00:24:44,640 --> 00:24:48,320
Speaker 1: what's affordability for for certain ticket prices and what the

440
00:24:48,359 --> 00:24:51,280
Speaker 1: balances and and you know, we're challenge. We do not

441
00:24:51,440 --> 00:24:54,520
Speaker 1: have an eighteen million person DNA like New York. You know,

442
00:24:54,600 --> 00:24:57,240
Speaker 1: we have we have a million people in the in

443
00:24:57,280 --> 00:25:01,320
Speaker 1: the seventh surrounding counties, maybe six hundred thou in Metro

444
00:25:01,720 --> 00:25:03,600
Speaker 1: you know, it was just in Atlanta, you know, as

445
00:25:03,600 --> 00:25:05,959
Speaker 1: we play the Hawks, you know that's a seven million

446
00:25:06,040 --> 00:25:08,520
Speaker 1: person you know, metro market. You might be able to

447
00:25:08,520 --> 00:25:11,160
Speaker 1: make some mistakes, you know, as you as you acquire

448
00:25:11,240 --> 00:25:14,359
Speaker 1: fans and retain fans, like in our business, like we

449
00:25:14,400 --> 00:25:17,040
Speaker 1: really don't have. We we don't have the luxury of

450
00:25:17,040 --> 00:25:20,360
Speaker 1: of losing of attrition in any big numbers. So we've

451
00:25:20,359 --> 00:25:22,440
Speaker 1: got to be a winning team. We've got to create

452
00:25:22,560 --> 00:25:27,359
Speaker 1: unbelievable value and and and unbelievable service to kind of

453
00:25:27,440 --> 00:25:30,520
Speaker 1: keep them and work hard for every customer. And so

454
00:25:30,600 --> 00:25:35,480
Speaker 1: just to follow on that, does that change the pricing dynamics?

455
00:25:35,560 --> 00:25:39,040
Speaker 1: Does it change the way you think about swites does

456
00:25:39,080 --> 00:25:41,879
Speaker 1: how does that manifest sort of day to day or

457
00:25:42,080 --> 00:25:45,760
Speaker 1: or even strategically. So it really makes you think about

458
00:25:45,800 --> 00:25:48,560
Speaker 1: how you segment your pricing in your marketplace. Is like,

459
00:25:48,600 --> 00:25:52,080
Speaker 1: you certainly can have premium you certainly can have you know,

460
00:25:52,119 --> 00:25:54,400
Speaker 1: corporate driven products. You can certainly have high net worth

461
00:25:54,440 --> 00:25:57,120
Speaker 1: individual products, you know, whether it be the first three rows,

462
00:25:57,200 --> 00:26:01,000
Speaker 1: whether they be suites or lops or pre meme areas.

463
00:26:01,040 --> 00:26:03,520
Speaker 1: But you really have to balance it, you know, with

464
00:26:03,520 --> 00:26:06,639
Speaker 1: with with affordability and the ability to bring in and

465
00:26:06,720 --> 00:26:10,000
Speaker 1: you know, in this market, you are as much a

466
00:26:10,560 --> 00:26:13,760
Speaker 1: business as you are a community partner, So you cannot

467
00:26:13,840 --> 00:26:18,720
Speaker 1: disenfranchise like the general public in a big way. And

468
00:26:18,880 --> 00:26:22,080
Speaker 1: and that's a balance, you know that that I've learned

469
00:26:22,080 --> 00:26:25,720
Speaker 1: and we've learned, like over the last five years, that

470
00:26:25,920 --> 00:26:28,560
Speaker 1: some markets don't have to think about as much and

471
00:26:28,600 --> 00:26:31,760
Speaker 1: we really do have to have that consideration to get that.

472
00:26:31,800 --> 00:26:35,760
Speaker 1: So it's it's it's a much deeper thought out algorithm

473
00:26:35,800 --> 00:26:38,119
Speaker 1: for ticket pricing, you know, for instance, then it then

474
00:26:38,160 --> 00:26:40,320
Speaker 1: it might be in a larger market. You know, Peter,

475
00:26:40,680 --> 00:26:44,439
Speaker 1: we're talking right before we came on air about one

476
00:26:44,520 --> 00:26:46,680
Speaker 1: of the things I'm personally most fascinated with and I

477
00:26:46,760 --> 00:26:49,439
Speaker 1: dare say you are too, which is the change that

478
00:26:49,480 --> 00:26:53,520
Speaker 1: we've seen in ownership across the NBA. It's happened in

479
00:26:53,560 --> 00:26:57,240
Speaker 1: a lot of sports, but it feels most marked candidly

480
00:26:57,359 --> 00:26:59,879
Speaker 1: in the n b A and you guys are pointed

481
00:27:00,000 --> 00:27:02,480
Speaker 1: too as as really the tip of the spear in

482
00:27:03,000 --> 00:27:05,880
Speaker 1: many ways. And we think about Mark Lazarie west Eden's

483
00:27:06,040 --> 00:27:10,359
Speaker 1: and Jamie Dinan coming in and really making some pretty

484
00:27:10,400 --> 00:27:13,800
Speaker 1: bold decisions on the court and off in the arena

485
00:27:13,960 --> 00:27:16,800
Speaker 1: we were talking about before and thinking about pricing and

486
00:27:16,880 --> 00:27:20,520
Speaker 1: all of that. You worked for Berkshire halfway before. You

487
00:27:20,640 --> 00:27:25,520
Speaker 1: understand big name investors probably better than anyone. Help us

488
00:27:25,600 --> 00:27:31,960
Speaker 1: understand how that plays out in this particular franchise. Yeah,

489
00:27:32,080 --> 00:27:34,440
Speaker 1: I I think the one great thing about the NBA

490
00:27:34,640 --> 00:27:36,920
Speaker 1: is it truly is a collaborative. So on the court,

491
00:27:37,080 --> 00:27:40,639
Speaker 1: like beyond competitive and and and fears and it's a

492
00:27:40,760 --> 00:27:43,280
Speaker 1: it's an arms race, but off the court, it really

493
00:27:43,400 --> 00:27:46,359
Speaker 1: is best practices and and kind of like what you're seeing.

494
00:27:46,400 --> 00:27:49,119
Speaker 1: So if you think of the evolution of ownership, you know,

495
00:27:49,160 --> 00:27:51,480
Speaker 1: a pro sport teams, I mean not just not just

496
00:27:51,560 --> 00:27:54,080
Speaker 1: our guys who are like the most incredible board of directors,

497
00:27:54,119 --> 00:27:57,040
Speaker 1: you can ever imagine. You know, we've got Mike Fastelli,

498
00:27:57,119 --> 00:28:00,720
Speaker 1: who who ran Bernado and commercial real estate. Very you questions,

499
00:28:01,080 --> 00:28:03,600
Speaker 1: you know, don't have answers when we're thinking about development

500
00:28:03,680 --> 00:28:06,399
Speaker 1: and West Eden to who you know helped pioneer the

501
00:28:06,400 --> 00:28:09,760
Speaker 1: private equity field, and Mark Lazie on the distress debt

502
00:28:09,840 --> 00:28:12,399
Speaker 1: and Jamie Dunning. But look throughout the league, you know,

503
00:28:12,480 --> 00:28:16,159
Speaker 1: like you've got you know, media and digital expert like

504
00:28:16,240 --> 00:28:18,720
Speaker 1: Ted Ley Onis. You know, you've got Dan Gilbert. You

505
00:28:18,760 --> 00:28:21,960
Speaker 1: know who's who's rebuilt the city of Detroit. You know

506
00:28:22,000 --> 00:28:25,359
Speaker 1: when you talk about you've got Steve Balmer who built

507
00:28:25,560 --> 00:28:28,679
Speaker 1: you know, Microsoft. So when you think about you know

508
00:28:28,880 --> 00:28:33,520
Speaker 1: kind of like the this concentration of of knowledge, success

509
00:28:33,600 --> 00:28:38,200
Speaker 1: process and growth like it's you can't put a value

510
00:28:38,240 --> 00:28:41,520
Speaker 1: on what that does for our ability to to have

511
00:28:41,600 --> 00:28:46,000
Speaker 1: best practices, to use examples, to collaborate, to really evolve

512
00:28:46,120 --> 00:28:51,160
Speaker 1: these sports businesses into you know, much bigger entities. There

513
00:28:51,200 --> 00:28:55,120
Speaker 1: are six words also that bring up big time revenue

514
00:28:55,560 --> 00:29:01,080
Speaker 1: broadcast rights. Broadcast rights, broadcast rights that has changed the

515
00:29:01,240 --> 00:29:05,440
Speaker 1: face of major sports, especially in the NBA. Can you

516
00:29:05,480 --> 00:29:09,400
Speaker 1: expand more on that? Yeah, well, I think you know,

517
00:29:09,680 --> 00:29:13,240
Speaker 1: for the value of obviously the national broadcast deals have

518
00:29:13,520 --> 00:29:16,120
Speaker 1: been the fuel to to really increase these values. And

519
00:29:16,120 --> 00:29:18,600
Speaker 1: then maybe in the last ten years you've really seen,

520
00:29:18,720 --> 00:29:21,720
Speaker 1: especially in the NBA, what global rights have done, you know,

521
00:29:21,880 --> 00:29:26,000
Speaker 1: especially in Asia, uh for for distribution and brand and

522
00:29:26,400 --> 00:29:28,720
Speaker 1: revenue you know, for the league and for the teams.

523
00:29:29,160 --> 00:29:31,200
Speaker 1: And now I'm gonna you know, you're gonna get you know,

524
00:29:31,240 --> 00:29:33,760
Speaker 1: we're gonna kind of flip into the next generation of

525
00:29:33,960 --> 00:29:37,240
Speaker 1: like what does media look like in the future, whether

526
00:29:37,280 --> 00:29:41,720
Speaker 1: it's over the top, streaming, a mix of traditional I mean,

527
00:29:41,720 --> 00:29:45,360
Speaker 1: it's really like an incredible time um and you know

528
00:29:45,560 --> 00:29:49,680
Speaker 1: pro live sports is just like one of those things.

529
00:29:49,720 --> 00:29:53,160
Speaker 1: It's like a hot commodity, hot content and really probably

530
00:29:53,280 --> 00:29:57,720
Speaker 1: drive like what that future of of live events looks like.

531
00:29:57,800 --> 00:30:01,640
Speaker 1: So it's really exciting. I mean, we you know, we

532
00:30:01,800 --> 00:30:05,800
Speaker 1: are you know, we've got a local UM media deal

533
00:30:05,880 --> 00:30:09,320
Speaker 1: with with Ballet Sports, We've got our national deal with

534
00:30:09,320 --> 00:30:13,640
Speaker 1: with Turner and and ESPN. You know that fuels it.

535
00:30:13,680 --> 00:30:17,560
Speaker 1: But it is it is you know, how people digest

536
00:30:17,680 --> 00:30:20,120
Speaker 1: the product, and it's only going to get bigger, and

537
00:30:20,120 --> 00:30:22,040
Speaker 1: it's only going to get wider, and we're only going

538
00:30:22,080 --> 00:30:25,800
Speaker 1: to get you know, more impressions for more places around

539
00:30:25,800 --> 00:30:29,680
Speaker 1: the world. So, Peter, what's around the corner for the

540
00:30:30,200 --> 00:30:33,640
Speaker 1: the Dia District and the Milwaukee Bucks as we head

541
00:30:33,680 --> 00:30:38,200
Speaker 1: into July and the success you've had so far. Yes,

542
00:30:38,280 --> 00:30:41,000
Speaker 1: So there's some physical plant stuff. We're about to break

543
00:30:41,000 --> 00:30:44,560
Speaker 1: ground on a hotel on the property. We're we're kind

544
00:30:44,560 --> 00:30:47,520
Speaker 1: of in in the in the pre development stage of

545
00:30:47,640 --> 00:30:51,440
Speaker 1: some residential and some more commercial in a big way,

546
00:30:51,600 --> 00:30:55,280
Speaker 1: we're kind of digging out of that you know, pandemic

547
00:30:55,600 --> 00:30:58,960
Speaker 1: um side and navigating what the entertainment side looks like

548
00:30:59,000 --> 00:31:01,680
Speaker 1: to really book to book up you know, the rest

549
00:31:01,760 --> 00:31:05,200
Speaker 1: of this calendar year and really kind of you know

550
00:31:05,400 --> 00:31:08,040
Speaker 1: what I see kind of in the entertainment side as

551
00:31:08,120 --> 00:31:10,920
Speaker 1: as just kind of a year we've never seen before.

552
00:31:11,200 --> 00:31:15,320
Speaker 1: Um as as concerts and shows get out, um you know,

553
00:31:15,440 --> 00:31:17,600
Speaker 1: in in twenty two in a way that they haven't

554
00:31:17,800 --> 00:31:20,440
Speaker 1: they have never been. So that'll be kind of exciting

555
00:31:21,000 --> 00:31:23,560
Speaker 1: as we as we ramp it up and and for us,

556
00:31:23,600 --> 00:31:27,960
Speaker 1: like we're looking, you know, to to sustain growth. We've

557
00:31:28,000 --> 00:31:30,840
Speaker 1: got one of these rare moments whereas a team, you know,

558
00:31:31,040 --> 00:31:34,240
Speaker 1: are our our centerpiece of the Bucks is We've got

559
00:31:34,240 --> 00:31:38,800
Speaker 1: you honest signed for a long term extension through holiday um,

560
00:31:38,880 --> 00:31:41,240
Speaker 1: Chris Middleton. You know, it's one of those rare moments

561
00:31:41,240 --> 00:31:44,959
Speaker 1: where you've got the core of a very competitive, championship

562
00:31:45,000 --> 00:31:48,120
Speaker 1: caliber team signed for a longer period of time, and

563
00:31:48,160 --> 00:31:50,880
Speaker 1: we think, you know, the business perspective of that is

564
00:31:50,960 --> 00:31:54,120
Speaker 1: like we can go out to market and sell like

565
00:31:54,560 --> 00:31:57,040
Speaker 1: higher and longer term than we've been able to do

566
00:31:57,120 --> 00:31:59,760
Speaker 1: in the past with that value proposition that we're going

567
00:31:59,800 --> 00:32:03,800
Speaker 1: to be a competitive, a championship competitor for a long time.

568
00:32:04,360 --> 00:32:06,560
Speaker 1: You know, Peter, it's it's so interesting that that's that's

569
00:32:06,560 --> 00:32:08,680
Speaker 1: where you went, because it's very much where I wanted

570
00:32:08,720 --> 00:32:11,600
Speaker 1: to go next, which is that you know, the contours

571
00:32:11,640 --> 00:32:14,360
Speaker 1: of the business of pro basketball, in the business of

572
00:32:14,400 --> 00:32:19,040
Speaker 1: the NBA obviously moving in a much more aggressively global way.

573
00:32:19,160 --> 00:32:21,840
Speaker 1: It's the second most popular sport in the world, as

574
00:32:21,840 --> 00:32:25,760
Speaker 1: you well know, behind football football in the global sense,

575
00:32:25,800 --> 00:32:30,720
Speaker 1: not American football. UM. But there's also this moment where

576
00:32:31,000 --> 00:32:36,040
Speaker 1: it's an incredibly star driven league. You see players decamping

577
00:32:36,680 --> 00:32:41,800
Speaker 1: every season, uh for greener pastures here and there. You

578
00:32:41,920 --> 00:32:45,880
Speaker 1: talked about the fierce or on court rivalries, but also

579
00:32:46,000 --> 00:32:49,720
Speaker 1: sort of the collective what does the NBA collectively have

580
00:32:49,920 --> 00:32:53,440
Speaker 1: to do and what's your role in it in being,

581
00:32:54,120 --> 00:32:57,640
Speaker 1: for lack of better term, sort of innovative around the business.

582
00:32:58,080 --> 00:32:59,840
Speaker 1: You know, you guys have done a good job with

583
00:33:00,080 --> 00:33:04,320
Speaker 1: labor collectively as it were, But how do you grow

584
00:33:04,440 --> 00:33:10,120
Speaker 1: this this larger pie? Yeah? I think, you know, I'll

585
00:33:10,160 --> 00:33:12,880
Speaker 1: revert to like the Board of Governors, ownership and Adam

586
00:33:12,920 --> 00:33:18,400
Speaker 1: as just being constantly driven by constant improvement like audits,

587
00:33:18,440 --> 00:33:21,680
Speaker 1: refinements and and focused on growth. You know. So I

588
00:33:21,720 --> 00:33:24,360
Speaker 1: think as we look about as we look at the league,

589
00:33:24,400 --> 00:33:28,200
Speaker 1: there's so many kind of interesting, kind of fascinating things

590
00:33:28,240 --> 00:33:31,720
Speaker 1: going on, whether it's whether it's an expansion, whether it's

591
00:33:31,720 --> 00:33:37,520
Speaker 1: global expansion, whether it's academies, whether it's new media prospects.

592
00:33:37,520 --> 00:33:39,800
Speaker 1: I think it's also like the game itself, like do

593
00:33:39,880 --> 00:33:42,720
Speaker 1: we look at in do we look at in season tournaments?

594
00:33:42,840 --> 00:33:45,200
Speaker 1: You know, how do we how do we tweak All

595
00:33:45,200 --> 00:33:47,520
Speaker 1: Star weekends? So I think one of the things that

596
00:33:47,600 --> 00:33:53,000
Speaker 1: gets me really excited enthusiastic is maybe maybe Adam and

597
00:33:53,040 --> 00:33:55,880
Speaker 1: the owners are pleased, but they're never satisfied, And that's

598
00:33:55,880 --> 00:33:58,840
Speaker 1: like really exciting. You know that we're constantly looking for

599
00:33:59,360 --> 00:34:01,240
Speaker 1: kind of like what is the next and to stay

600
00:34:01,280 --> 00:34:03,880
Speaker 1: ahead of the curve and to innovate, and you know,

601
00:34:03,920 --> 00:34:06,200
Speaker 1: in its own special way, the bubble was that, you know,

602
00:34:06,320 --> 00:34:09,120
Speaker 1: like how do we take charge and own this and

603
00:34:09,160 --> 00:34:14,240
Speaker 1: really really paid the path for for restarting pro sports

604
00:34:14,239 --> 00:34:17,200
Speaker 1: in the world. And and that's an exciting example of

605
00:34:17,200 --> 00:34:19,200
Speaker 1: of like how cool it is to be part of

606
00:34:19,200 --> 00:34:21,959
Speaker 1: the NBA. You know, I want to follow in that

607
00:34:22,120 --> 00:34:24,520
Speaker 1: quickly if I can be, And to call back to

608
00:34:24,560 --> 00:34:27,680
Speaker 1: something you said earlier about the collective and you know,

609
00:34:27,719 --> 00:34:31,600
Speaker 1: in the same way that we've seen this change in owners,

610
00:34:31,840 --> 00:34:35,319
Speaker 1: I dare say we have seen an elevation and this

611
00:34:35,360 --> 00:34:37,120
Speaker 1: is with all due respect to people who have said

612
00:34:37,160 --> 00:34:40,440
Speaker 1: in your seat in similar seats before, but an elevation

613
00:34:40,719 --> 00:34:43,600
Speaker 1: of the role that that you're in, you know, in

614
00:34:43,719 --> 00:34:45,800
Speaker 1: terms of you know, you think about the Steve Coonans

615
00:34:45,840 --> 00:34:49,640
Speaker 1: and the St. Marshall's of the world and the Aban

616
00:34:49,760 --> 00:34:55,080
Speaker 1: dandhe's in um in Brooklyn. I mean, I feel like

617
00:34:55,600 --> 00:34:58,719
Speaker 1: y'all are sort of leveling up too in some perspective.

618
00:34:58,760 --> 00:35:02,440
Speaker 1: I wonder if you see that and what that level

619
00:35:02,480 --> 00:35:04,799
Speaker 1: of the collective is like and how you guys sort

620
00:35:04,800 --> 00:35:09,560
Speaker 1: of drawing the experiences of each other. So I think

621
00:35:09,600 --> 00:35:12,360
Speaker 1: and and we were there before, but I think the

622
00:35:12,400 --> 00:35:15,239
Speaker 1: pandemic definitely put us all together in a way that

623
00:35:15,280 --> 00:35:17,520
Speaker 1: we had never been before on a daily and weekly

624
00:35:18,000 --> 00:35:21,200
Speaker 1: and kind of bonded us. And it it is like transparency.

625
00:35:21,280 --> 00:35:24,799
Speaker 1: And I call Chris McGowan in Portland for best practices

626
00:35:24,840 --> 00:35:29,040
Speaker 1: with labor. I call coon In on media, you know John,

627
00:35:29,360 --> 00:35:33,399
Speaker 1: you know, on ticketing, like we we are sharing collaborative.

628
00:35:33,520 --> 00:35:37,120
Speaker 1: I think Team Bow like Team Marketing and Business Operations, uh,

629
00:35:37,200 --> 00:35:39,640
Speaker 1: kind of run by Amy Brooks at the at the

630
00:35:39,719 --> 00:35:42,440
Speaker 1: NBA has has kind of like set the template down

631
00:35:42,880 --> 00:35:47,120
Speaker 1: for almost like the the internal consulting best practices model

632
00:35:47,680 --> 00:35:50,800
Speaker 1: for how to bring these teams in these leagues together.

633
00:35:50,960 --> 00:35:55,040
Speaker 1: So so we all kind of flourish in a big way.

634
00:35:55,080 --> 00:35:57,440
Speaker 1: So he and I think, you know, I think on

635
00:35:57,480 --> 00:36:01,080
Speaker 1: the operating side, you know, we're now owned by by

636
00:36:01,120 --> 00:36:04,480
Speaker 1: folks that owned several you know, have come from owning

637
00:36:04,600 --> 00:36:09,040
Speaker 1: or managing or building like large companies or several companies,

638
00:36:09,080 --> 00:36:13,400
Speaker 1: and and they look for you know, true operators, you know,

639
00:36:13,440 --> 00:36:15,319
Speaker 1: and and and kind of people who are focused on

640
00:36:15,360 --> 00:36:19,040
Speaker 1: growth and people have had success you know, organizationally, and

641
00:36:19,040 --> 00:36:21,800
Speaker 1: and it's kind of all built up for this evolution

642
00:36:21,920 --> 00:36:25,279
Speaker 1: of what these enterprises have become. When I read this,

643
00:36:25,719 --> 00:36:30,320
Speaker 1: I was not letting this go. You are the creator

644
00:36:30,640 --> 00:36:34,760
Speaker 1: and you created this last year of Cream City Cluckery

645
00:36:34,880 --> 00:36:42,440
Speaker 1: and what it is for delicious chicken tenders. And first

646
00:36:42,480 --> 00:36:44,600
Speaker 1: of all, what made you come up with that name?

647
00:36:44,719 --> 00:36:47,040
Speaker 1: And second of all, how did you get into this?

648
00:36:48,040 --> 00:36:53,720
Speaker 1: Gentlemen at an hour to the show, forget forget ticketing,

649
00:36:53,800 --> 00:36:57,640
Speaker 1: forget sponsorships, get meati the world is about the greatest

650
00:36:57,719 --> 00:37:02,120
Speaker 1: chicken tender that's ever existed. So I'll tell you talk

651
00:37:02,160 --> 00:37:03,920
Speaker 1: about culture, like how did we come up with this?

652
00:37:04,120 --> 00:37:08,120
Speaker 1: We we overnight had a facility that had the largest

653
00:37:08,200 --> 00:37:10,960
Speaker 1: kitchen in the state of in the state of Wisconsin.

654
00:37:11,040 --> 00:37:13,640
Speaker 1: We had a sports bar that you know is a

655
00:37:14,000 --> 00:37:17,600
Speaker 1: is a seven million dollar store that went completely flat

656
00:37:17,680 --> 00:37:19,880
Speaker 1: and we said, my god, we have this, We have

657
00:37:19,960 --> 00:37:23,359
Speaker 1: this infrastructure. And we had one of our managers who

658
00:37:23,440 --> 00:37:26,319
Speaker 1: runs our food and beverage just say like, why aren't

659
00:37:26,320 --> 00:37:28,319
Speaker 1: we doing a ghost kitchen? And we said ghost kitchen,

660
00:37:28,320 --> 00:37:30,399
Speaker 1: why don't we brand the hell out of this, use

661
00:37:30,480 --> 00:37:34,120
Speaker 1: all of our assets, charge up the charge up the kitchen,

662
00:37:34,160 --> 00:37:36,759
Speaker 1: and see if we can create a franchise and have

663
00:37:36,880 --> 00:37:39,399
Speaker 1: some fun with us as we're not playing basketball, and

664
00:37:39,840 --> 00:37:43,040
Speaker 1: you know what perfect timing were, We're about to open

665
00:37:43,560 --> 00:37:48,360
Speaker 1: to two more physical cluckeries. It's Ghost Kitchen in in

666
00:37:48,600 --> 00:37:51,280
Speaker 1: our head chef had had kind of come from the South,

667
00:37:51,400 --> 00:37:55,600
Speaker 1: was like an unbelievable recipe some butter cake and created

668
00:37:55,760 --> 00:37:58,600
Speaker 1: you know, on demand delivery and pick up system that

669
00:37:58,840 --> 00:38:00,880
Speaker 1: you know, started to do a few thousand dollars a

670
00:38:01,000 --> 00:38:03,800
Speaker 1: night like during COVID and kind of hit it off

671
00:38:03,840 --> 00:38:07,640
Speaker 1: and great product and uh listen, it's it's not going

672
00:38:07,680 --> 00:38:10,719
Speaker 1: to pay the expense side of our player salaries and

673
00:38:10,960 --> 00:38:13,720
Speaker 1: uh coach, but it certainly is like a fun venture.

674
00:38:13,760 --> 00:38:16,600
Speaker 1: We were able to leverage off kind of our equity

675
00:38:16,840 --> 00:38:20,760
Speaker 1: in um in Milwaukee and Wisconsin, created a cool brand

676
00:38:20,880 --> 00:38:24,480
Speaker 1: and a great chicken finger like hits off the chart.

677
00:38:25,080 --> 00:38:27,759
Speaker 1: I'm happy you guys should set book in Wisconsin. Like

678
00:38:28,080 --> 00:38:35,719
Speaker 1: free free cluckery on me? Where's my plane ticket? Bar

679
00:38:35,880 --> 00:38:41,160
Speaker 1: just left? Sorry, I literally dropped his headphone. You know,

680
00:38:41,800 --> 00:38:44,319
Speaker 1: did you did you actually have this much fun in

681
00:38:44,360 --> 00:38:46,480
Speaker 1: any other job you've had in your entire life? Because

682
00:38:46,480 --> 00:38:50,560
Speaker 1: your enthusiasm is jumping through my headsets right now. So

683
00:38:51,000 --> 00:38:53,000
Speaker 1: I've been kind of lucky So I got out of

684
00:38:53,040 --> 00:38:55,279
Speaker 1: school and I went to six Flags Theme Parks. And

685
00:38:55,320 --> 00:38:57,880
Speaker 1: if you told me for my years there, if I

686
00:38:57,920 --> 00:38:59,960
Speaker 1: was a park president, I'd be the most I did.

687
00:39:00,080 --> 00:39:02,200
Speaker 1: That would be the dream, you know, I'd ever have.

688
00:39:02,400 --> 00:39:04,920
Speaker 1: And then from six Flags Steam Parks I went to

689
00:39:05,120 --> 00:39:07,280
Speaker 1: I went to Madison Square Garden and I was hired

690
00:39:07,280 --> 00:39:10,680
Speaker 1: by Ernie Grunfeld, and I was in my hometown, like

691
00:39:10,880 --> 00:39:14,319
Speaker 1: running marketing and sponsorship for the New York Knicks. I

692
00:39:14,320 --> 00:39:17,640
Speaker 1: thought I'd pinched myself and gone to heaven. And then

693
00:39:17,680 --> 00:39:20,839
Speaker 1: I went into this private aviation world of Marquee Jet

694
00:39:20,920 --> 00:39:22,680
Speaker 1: and then to net Jets, and I thought that was

695
00:39:22,760 --> 00:39:26,839
Speaker 1: the coolest thing I had ever done. And then these

696
00:39:26,880 --> 00:39:29,319
Speaker 1: guys kind of I don't know if they plucked me.

697
00:39:29,360 --> 00:39:33,200
Speaker 1: I might have glued myself to him for for this opportunity.

698
00:39:33,239 --> 00:39:35,719
Speaker 1: But if you had ever told me that there was

699
00:39:35,719 --> 00:39:38,799
Speaker 1: an opportunity to run one of the thirty franchises kind

700
00:39:38,800 --> 00:39:43,239
Speaker 1: of build, build a district and reinvigorate a city, be

701
00:39:43,360 --> 00:39:45,120
Speaker 1: part of a brand and part of this story, I

702
00:39:45,160 --> 00:39:47,960
Speaker 1: would have just told you, like, not in a million years.

703
00:39:48,080 --> 00:39:51,600
Speaker 1: So I think knock on wood, like after you know,

704
00:39:51,680 --> 00:39:54,319
Speaker 1: after almost six years, like I'm i'm as I'm as

705
00:39:54,400 --> 00:39:56,640
Speaker 1: amped up, especially you're talking to us as we're in

706
00:39:56,680 --> 00:39:59,719
Speaker 1: the Eastern Conference finals, so add some add some amp

707
00:39:59,760 --> 00:40:04,000
Speaker 1: to but these are this is like, this is pinch yourself,

708
00:40:04,160 --> 00:40:08,440
Speaker 1: magic wand stuff. So this is just awesome. And I

709
00:40:08,560 --> 00:40:10,919
Speaker 1: kind of say this to people here, like, if you

710
00:40:11,040 --> 00:40:15,000
Speaker 1: can't be if you can't be amped up in enthusiasm,

711
00:40:15,280 --> 00:40:17,960
Speaker 1: like in a job for pro sports team that you

712
00:40:17,960 --> 00:40:20,400
Speaker 1: know kind of his growth and and and fun, like,

713
00:40:21,760 --> 00:40:24,920
Speaker 1: you are definitely in the wrong place. Well, and I

714
00:40:25,040 --> 00:40:27,360
Speaker 1: want to just wrap up. I ask you a question

715
00:40:27,360 --> 00:40:30,040
Speaker 1: related to that, which is, you know, as you think

716
00:40:30,080 --> 00:40:34,520
Speaker 1: back and and hopefully for for Bugs fans, maybe less

717
00:40:34,560 --> 00:40:38,040
Speaker 1: so for Hawks fans, there's more to come. Um, but

718
00:40:38,239 --> 00:40:41,480
Speaker 1: I do wonder because your job is different in the

719
00:40:41,560 --> 00:40:46,000
Speaker 1: sense that your emotions, your revenues, all of it sort

720
00:40:46,040 --> 00:40:51,040
Speaker 1: of rises and falls on this very public product in

721
00:40:51,080 --> 00:40:55,240
Speaker 1: many ways, and and so much of what you're working

722
00:40:55,280 --> 00:40:58,080
Speaker 1: on every a everybody gets to see. But but also

723
00:40:58,160 --> 00:41:01,320
Speaker 1: we're also invested in our teams. Is there a moment

724
00:41:01,400 --> 00:41:04,479
Speaker 1: that you have where you know, just as a fan

725
00:41:04,640 --> 00:41:08,160
Speaker 1: of your organization, you're really going to remember, you think,

726
00:41:08,200 --> 00:41:12,880
Speaker 1: from from this playoff run you know, it's so funny,

727
00:41:12,920 --> 00:41:15,400
Speaker 1: like I think, like, you know, I remember like the

728
00:41:14,920 --> 00:41:18,360
Speaker 1: cathartic moments of like opening the arena, I remember getting

729
00:41:18,360 --> 00:41:20,440
Speaker 1: funding for the arena. I get and then kind of,

730
00:41:20,800 --> 00:41:22,839
Speaker 1: you know, the one thing I've I've started to learn

731
00:41:22,920 --> 00:41:25,520
Speaker 1: and it's it really is impossible from like being in

732
00:41:25,560 --> 00:41:27,319
Speaker 1: the sport is kind of the one thing I take

733
00:41:27,320 --> 00:41:30,320
Speaker 1: away from the players like a Chris Middleton, like a

734
00:41:30,440 --> 00:41:34,520
Speaker 1: Janice and anything, is you know, it's one game. You know,

735
00:41:34,560 --> 00:41:37,960
Speaker 1: it's it's like one thing, do not do not you know,

736
00:41:38,040 --> 00:41:40,839
Speaker 1: take take one chapter and make it the book. Like

737
00:41:41,000 --> 00:41:43,000
Speaker 1: you know you're gonna play again, how do you recover.

738
00:41:43,480 --> 00:41:45,080
Speaker 1: That's not to say that I put on a strong

739
00:41:45,120 --> 00:41:47,160
Speaker 1: face after Ghannest goes down and we lose the game,

740
00:41:47,160 --> 00:41:49,920
Speaker 1: and I don't cry in my hotel room, like that's fine,

741
00:41:50,000 --> 00:41:53,279
Speaker 1: Like you can get upset, but this is this is

742
00:41:53,320 --> 00:41:58,160
Speaker 1: a much bigger, you know, kind of opportunity. And I think, like, listen,

743
00:41:58,280 --> 00:42:04,080
Speaker 1: you have to maximize every opportunity you have. And today

744
00:42:04,120 --> 00:42:06,239
Speaker 1: we're in the Eastern Conference finals. We are planning to

745
00:42:06,280 --> 00:42:09,799
Speaker 1: be in the finals. We are an NBA championship. I

746
00:42:09,840 --> 00:42:11,799
Speaker 1: don't know any other way to do it. And what

747
00:42:11,920 --> 00:42:14,759
Speaker 1: does that look like? And if you don't do it,

748
00:42:14,920 --> 00:42:16,960
Speaker 1: you certainly had a taste for it, and you've got

749
00:42:16,960 --> 00:42:19,960
Speaker 1: to use that, you know, too, as motivation to go

750
00:42:20,000 --> 00:42:23,839
Speaker 1: into the next into the next season. All right, well

751
00:42:23,840 --> 00:42:26,359
Speaker 1: we're gonna leave it there, Peter, thank you so much,

752
00:42:26,480 --> 00:42:29,480
Speaker 1: really really good to catch up with you. Best of

753
00:42:29,600 --> 00:42:34,040
Speaker 1: luck through this, and uh, it's been really fun, I

754
00:42:34,080 --> 00:42:36,920
Speaker 1: have to say to to watch all the energy and

755
00:42:36,960 --> 00:42:40,960
Speaker 1: excitement through the television. It really comes through, and as

756
00:42:41,080 --> 00:42:43,480
Speaker 1: Lynch said it, it comes through in talking to you

757
00:42:43,520 --> 00:42:45,799
Speaker 1: as well. And it's fun for us to to hear

758
00:42:45,840 --> 00:42:48,800
Speaker 1: that sort of enthusiasm around the business of sports. So

759
00:42:48,920 --> 00:42:53,120
Speaker 1: thank you so much. Guys like Lynch for Boston and

760
00:42:53,600 --> 00:42:56,320
Speaker 1: bar like I know you're gonna go through some tough times.

761
00:42:56,360 --> 00:42:59,400
Speaker 1: So you're welcome to Milwaukee anytime. We'd love to have you.

762
00:42:59,760 --> 00:43:02,480
Speaker 1: I'll he scooched up to the television set. Man when

763
00:43:02,680 --> 00:43:05,120
Speaker 1: for the draft is like, Okay, let's see we got

764
00:43:05,160 --> 00:43:10,000
Speaker 1: something from Milwaukee. Now, good luck. I think I think

765
00:43:10,880 --> 00:43:13,200
Speaker 1: Detroit gets good. That's good for all of us. We're

766
00:43:13,280 --> 00:43:16,879
Speaker 1: dying for competitive set. That's awesome to have good, good

767
00:43:16,960 --> 00:43:20,040
Speaker 1: Midwest competition. All right. In the meantime, we're going to

768
00:43:20,160 --> 00:43:22,719
Speaker 1: take you up on that chicken tender offer. But it's

769
00:43:22,760 --> 00:43:25,640
Speaker 1: really good and really good. Thank you so much. Alright, guys,

770
00:43:25,640 --> 00:43:29,160
Speaker 1: were really good to get some time with Peter there

771
00:43:29,280 --> 00:43:31,640
Speaker 1: and and Lynda, you nailed it. I mean, they a

772
00:43:31,680 --> 00:43:33,840
Speaker 1: lot of enthusiasm there. Look, there's a lot to be

773
00:43:33,920 --> 00:43:37,160
Speaker 1: enthusiastic about. And I think he said something really important

774
00:43:37,239 --> 00:43:40,440
Speaker 1: there um towards the end of the conversation, which is

775
00:43:40,520 --> 00:43:45,200
Speaker 1: that from a business perspective, you like to be in

776
00:43:45,239 --> 00:43:49,239
Speaker 1: Milwaukee right now because regardless of what happens through this

777
00:43:49,320 --> 00:43:54,160
Speaker 1: weekend and through the rest of the NBA Finals, this

778
00:43:54,239 --> 00:43:58,040
Speaker 1: is a team that clearly there's been some investment in

779
00:43:58,560 --> 00:44:01,960
Speaker 1: and that makes his job easier. This is not a

780
00:44:02,000 --> 00:44:05,680
Speaker 1: super team coupled together. There's some long term investments being

781
00:44:05,680 --> 00:44:09,440
Speaker 1: made there and that's it. Candidly, that's good for business,

782
00:44:10,640 --> 00:44:13,160
Speaker 1: it is. And they're a likable team. They're an embraceable

783
00:44:13,200 --> 00:44:17,000
Speaker 1: team by the average NBA fan or basketball fan. You

784
00:44:17,040 --> 00:44:20,240
Speaker 1: look at the Brooklyn Okay, they concocted, they came together,

785
00:44:20,280 --> 00:44:23,640
Speaker 1: they almost colluded to put the three superstars together. This

786
00:44:23,680 --> 00:44:26,520
Speaker 1: team was just put together like teams have been put

787
00:44:26,560 --> 00:44:28,880
Speaker 1: together in the past, and they have a great crowd

788
00:44:28,880 --> 00:44:31,280
Speaker 1: out there. The honest is a very likable guy's league

789
00:44:31,360 --> 00:44:33,799
Speaker 1: m v P. And they've got a great supporting cast

790
00:44:33,840 --> 00:44:35,759
Speaker 1: and as Peter said, they've got them signed to long

791
00:44:35,840 --> 00:44:37,920
Speaker 1: term deals a lot of these guys, so good things

792
00:44:37,920 --> 00:44:42,000
Speaker 1: are gonna keep happening for this franchise. Bar would you

793
00:44:42,000 --> 00:44:45,759
Speaker 1: take away there? Oh, we gotta go get some of

794
00:44:45,800 --> 00:44:52,239
Speaker 1: those chicken dinner? Yeah, man, cream City Cluckery. And my

795
00:44:52,320 --> 00:44:55,640
Speaker 1: point is and I and and is we've been having

796
00:44:55,680 --> 00:44:59,239
Speaker 1: this this theme all through this show. And and Lynch,

797
00:44:59,400 --> 00:45:01,719
Speaker 1: you hit the name on the head. He has such excitement.

798
00:45:02,239 --> 00:45:06,239
Speaker 1: And when we mentioned about Cream City Cluckery and it's

799
00:45:07,040 --> 00:45:09,279
Speaker 1: we could buy a franchise, we went to eleven there.

800
00:45:10,600 --> 00:45:16,160
Speaker 1: I mean, I just I admire anybody who more than

801
00:45:16,280 --> 00:45:19,920
Speaker 1: just obviously the Bucks obviously are very strong. But that

802
00:45:20,080 --> 00:45:25,360
Speaker 1: starts a whole brand new franchise, a whole brand new branch,

803
00:45:25,800 --> 00:45:29,479
Speaker 1: and they started off and you have that excitement. God

804
00:45:29,520 --> 00:45:32,319
Speaker 1: bless you because that's the spirit that you have to

805
00:45:32,320 --> 00:45:36,000
Speaker 1: be to be an entrepreneur. All right, So lots to

806
00:45:36,080 --> 00:45:38,319
Speaker 1: take away there, and we'll see what happens in the

807
00:45:38,440 --> 00:45:44,600
Speaker 1: NBA playoffs. Let's do the number of the week. I'm

808
00:45:44,640 --> 00:45:47,600
Speaker 1: not kids, feels better to be number one than number five.

809
00:45:47,640 --> 00:45:49,239
Speaker 1: I'll wear a number because of Mike. We have a

810
00:45:49,320 --> 00:45:51,120
Speaker 1: chance to go for three in a row. Good numbers

811
00:45:51,120 --> 00:45:53,280
Speaker 1: are a good time. When I first started wearing the number,

812
00:45:53,360 --> 00:45:56,520
Speaker 1: how would just have them? Proud Bloomberg Business of Sports,

813
00:45:56,560 --> 00:46:00,880
Speaker 1: the number of the week? All right out, I gotta

814
00:46:00,920 --> 00:46:03,440
Speaker 1: set this up. So this is there's a little bit

815
00:46:03,440 --> 00:46:06,360
Speaker 1: of a set up here. Let me explain. Chip Ganassi

816
00:46:06,560 --> 00:46:09,400
Speaker 1: sold as NASCAR team to Justin marxis the owner of

817
00:46:09,440 --> 00:46:12,680
Speaker 1: track House Racing, and he declared that he will pull

818
00:46:12,719 --> 00:46:15,560
Speaker 1: out of the nation's top stock car series at the

819
00:46:15,800 --> 00:46:19,880
Speaker 1: end of this season. Now, one of the things that

820
00:46:19,960 --> 00:46:24,200
Speaker 1: happens when you buy a NASCAR team that's established, like

821
00:46:24,400 --> 00:46:27,880
Speaker 1: Chip Canassi, is that you buy a charter. And because

822
00:46:28,239 --> 00:46:33,400
Speaker 1: Canassi has two cars, that means two charters. Now, the

823
00:46:33,520 --> 00:46:36,080
Speaker 1: terms of the deal were not released, but what I

824
00:46:36,160 --> 00:46:40,680
Speaker 1: want to know is how much, as of two weeks ago,

825
00:46:41,200 --> 00:46:44,640
Speaker 1: are two charters in NASCAR? And if anybody doesn't know

826
00:46:44,680 --> 00:46:48,040
Speaker 1: what what a charter is, it means basically that you

827
00:46:48,160 --> 00:46:50,440
Speaker 1: have an agreement that you're going to show up at

828
00:46:50,480 --> 00:46:55,040
Speaker 1: the race with those two cars to compete, and uh,

829
00:46:55,239 --> 00:46:59,120
Speaker 1: and I will I will give you something else each week.

830
00:46:59,440 --> 00:47:05,160
Speaker 1: It called about four hundred thousand dollars two run a

831
00:47:05,280 --> 00:47:10,080
Speaker 1: NASCAR for that one race, just so just to give that,

832
00:47:10,160 --> 00:47:13,560
Speaker 1: just to give you that that a longline follars. It

833
00:47:13,640 --> 00:47:15,879
Speaker 1: costs for a car, but it costs four hunder dollars

834
00:47:15,880 --> 00:47:17,759
Speaker 1: because you've got the crew and everything going on. And

835
00:47:17,840 --> 00:47:20,560
Speaker 1: that's about fifteen million a year. So when I'm asking

836
00:47:21,640 --> 00:47:27,320
Speaker 1: two charters, how much does that cost? I'm gonna say

837
00:47:27,920 --> 00:47:34,200
Speaker 1: so the total the total for two is at twelve million.

838
00:47:36,840 --> 00:47:38,960
Speaker 1: I get a little calculator on here. I'm gonna go

839
00:47:39,040 --> 00:47:45,280
Speaker 1: with sixteen million. Actually, Jason is closer. It is at

840
00:47:45,320 --> 00:47:49,480
Speaker 1: ten million dollars for a pair of charters. And that

841
00:47:49,640 --> 00:47:53,160
Speaker 1: was two weeks ago at least ten millions. And if

842
00:47:53,200 --> 00:47:56,880
Speaker 1: the charter is important, because what that does it tells

843
00:47:56,920 --> 00:48:00,439
Speaker 1: the sponsor, Hey, we're showing up. So if you want

844
00:48:00,440 --> 00:48:04,719
Speaker 1: to sponsor our car, here you are that that is

845
00:48:04,840 --> 00:48:07,000
Speaker 1: that's an important thing if you're going to try to

846
00:48:07,040 --> 00:48:12,800
Speaker 1: sell a sponsor to come join your team. Interesting, alright,

847
00:48:12,920 --> 00:48:15,520
Speaker 1: that is a that is a rabbit hole of NASCAR

848
00:48:15,680 --> 00:48:18,160
Speaker 1: that I never thought that I would go down, but

849
00:48:18,280 --> 00:48:21,640
Speaker 1: I now understand a little bit more about the economics

850
00:48:21,800 --> 00:48:27,040
Speaker 1: of racing, the louder type, not not formulaly, which we're

851
00:48:27,080 --> 00:48:29,759
Speaker 1: gonna talk about next week. Well, you've been listening to

852
00:48:29,800 --> 00:48:32,120
Speaker 1: Bloomberg Business of Sports. We're here each and every week

853
00:48:32,200 --> 00:48:34,480
Speaker 1: for you at the same time, plus online wherever you

854
00:48:34,520 --> 00:48:38,040
Speaker 1: get your podcast. Catch those they drop on Monday's, Wednesdays

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Speaker 1: and Thursdays. I'm Jason Kelly. Find me on Twitter at

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Speaker 1: Jason Kelly News. And I'm Mike Lynch, thrilled to have

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Speaker 1: a conversation with Peter Fagan, the president that made Milwaukee famous.

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Speaker 1: Mike Lynch, you can follow me at Lynch w CVB,

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Speaker 1: Tick and Win and winn and Chicken Dinner. I'm Michael

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Speaker 1: bar On t Winter at Big Bar Sports. You're listening

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Speaker 1: to Bloomberg Business of Sports Bloomberg Radio around the world.

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Speaker 1: Four four