1 00:00:00,280 --> 00:00:03,760 Speaker 1: This is the business of sports. Should Major League Baseball 2 00:00:04,000 --> 00:00:06,840 Speaker 1: shorten up the season? How do we present football to 3 00:00:06,920 --> 00:00:08,920 Speaker 1: the audience of the future. I don't think that most 4 00:00:08,920 --> 00:00:11,640 Speaker 1: players understand the power that they have. Michael vaugh The 5 00:00:11,720 --> 00:00:15,520 Speaker 1: future of IndyCar racing is looking bright. Scott Sashnik very 6 00:00:15,560 --> 00:00:18,799 Speaker 1: basic math here, more bidders means more money. Evan Nobody Williams. 7 00:00:18,960 --> 00:00:22,079 Speaker 1: The team value has essentially quadruples. And the leaders in 8 00:00:22,120 --> 00:00:25,480 Speaker 1: the sports industry. Time to bringing our guest, al Steinbrunner, 9 00:00:25,600 --> 00:00:29,320 Speaker 1: National Hockey League Commissioner Gary Betman, Atlanta Braves president Derek Schiller, 10 00:00:29,400 --> 00:00:34,600 Speaker 1: Patriots President Jonathan Kraft. Bloomberg Business of Sports from Bloomberg Radio. Hello, 11 00:00:34,640 --> 00:00:36,800 Speaker 1: I'm Scott Sick and I'm Michael Barr And this is 12 00:00:36,800 --> 00:00:39,600 Speaker 1: the Bloomberg Business of Sports podcast, where we explore the 13 00:00:39,640 --> 00:00:42,800 Speaker 1: big money issues in the world of sports today. Even 14 00:00:42,800 --> 00:00:44,479 Speaker 1: you don't even see. Evan's not here. I was going 15 00:00:44,560 --> 00:00:46,880 Speaker 1: to going to say today, no, you were going to 16 00:00:46,960 --> 00:00:49,080 Speaker 1: get into it. I was no, I wasn't gonna we 17 00:00:49,200 --> 00:00:52,959 Speaker 1: miss you. Evan. He's in Yonkers, Yonkers. Yeah. I think 18 00:00:53,159 --> 00:00:56,080 Speaker 1: what would we say with Sir Richard Branson? And I 19 00:00:56,120 --> 00:00:59,480 Speaker 1: think Kevin Plank Oh my goodness. I think he's hanging 20 00:00:59,480 --> 00:01:02,080 Speaker 1: out with some big boys. We'll talk to him next time. 21 00:01:02,080 --> 00:01:04,240 Speaker 1: When I say what went on? Is gonna give me 22 00:01:04,280 --> 00:01:06,600 Speaker 1: the brandson low down? Man? Yeah, you want to go 23 00:01:06,600 --> 00:01:12,280 Speaker 1: to the island, the private island. We missed you man. 24 00:01:12,360 --> 00:01:17,760 Speaker 1: Today we begin with that. This is but you know 25 00:01:17,840 --> 00:01:19,920 Speaker 1: what I'm gonna I have a little bit of like 26 00:01:20,000 --> 00:01:24,240 Speaker 1: personal experience with this in that when they opened the 27 00:01:24,240 --> 00:01:26,280 Speaker 1: Barkley Center before it was open to the public, I 28 00:01:26,319 --> 00:01:27,880 Speaker 1: went there and took a little tour and I sat 29 00:01:27,880 --> 00:01:30,119 Speaker 1: down in some of the front seats, and I thought 30 00:01:30,120 --> 00:01:32,760 Speaker 1: the leg room was kind of close. And I said, gee, 31 00:01:32,800 --> 00:01:35,160 Speaker 1: I wonder if macau proke off was like six ft five, 32 00:01:35,200 --> 00:01:38,080 Speaker 1: six ft six whatever. I'm like, can he sit here? Like? 33 00:01:38,120 --> 00:01:40,600 Speaker 1: And I touched off a little bit of panic, you know, 34 00:01:41,360 --> 00:01:45,080 Speaker 1: really gonna touched off this panic. But in Boston at 35 00:01:45,120 --> 00:01:47,760 Speaker 1: the t D Garden a couple of years ago or 36 00:01:47,800 --> 00:01:49,640 Speaker 1: last year, they announced they were going to upgrade a 37 00:01:49,640 --> 00:01:53,080 Speaker 1: bunch of stuff. Some of that was the seating. Well 38 00:01:53,080 --> 00:01:56,680 Speaker 1: guess what bartures you see the like it's too close, 39 00:01:56,840 --> 00:02:00,120 Speaker 1: the knees are too tight. People can't be comfortable in 40 00:02:00,160 --> 00:02:04,280 Speaker 1: the seats. And at first, it didn't seem like the 41 00:02:04,880 --> 00:02:07,360 Speaker 1: folks at the garden, which is of course Delaware North, 42 00:02:07,400 --> 00:02:09,840 Speaker 1: owner of the Bruins. The Jacob's family didn't seem like 43 00:02:09,840 --> 00:02:12,760 Speaker 1: they were taking it all that seriously. And then there's 44 00:02:12,800 --> 00:02:18,200 Speaker 1: this drumbeat of unhappiness for Bruins and Celtics fans where 45 00:02:18,400 --> 00:02:22,120 Speaker 1: there seems to be a problem that you just can't 46 00:02:22,120 --> 00:02:23,880 Speaker 1: be comfortable in the seats. It's not in the room. 47 00:02:23,919 --> 00:02:26,040 Speaker 1: It's like an airline. In other words, you're breathing your knees, 48 00:02:26,160 --> 00:02:27,920 Speaker 1: is what's happening? Is that what they say? You're breathing 49 00:02:27,919 --> 00:02:29,800 Speaker 1: your knees. Yeah, you never want to be compared to 50 00:02:29,800 --> 00:02:32,560 Speaker 1: the airlines like w if it comes to something like that, 51 00:02:32,680 --> 00:02:35,040 Speaker 1: I mean I feel bad. Kids will love it, you know, 52 00:02:35,080 --> 00:02:37,200 Speaker 1: they won't have a problem. But if if you're under 53 00:02:37,200 --> 00:02:39,480 Speaker 1: five ft you're probably okay, yeah, you're good to go. 54 00:02:39,639 --> 00:02:42,680 Speaker 1: But I mean I'm seeing the photos and knees are 55 00:02:42,680 --> 00:02:45,000 Speaker 1: cramped up and legs or you can't you can't get 56 00:02:45,040 --> 00:02:49,360 Speaker 1: any leg room. The question now is is there sort 57 00:02:49,400 --> 00:02:54,280 Speaker 1: of a fix for this that doesn't require ripping everything out, 58 00:02:54,840 --> 00:02:57,080 Speaker 1: Because then you start saying, all right, what's this gonna call? 59 00:02:57,200 --> 00:02:58,720 Speaker 1: When you know that's of course, what they're saying right 60 00:02:58,760 --> 00:03:02,240 Speaker 1: now is we gotta make this right. But what's this 61 00:03:02,360 --> 00:03:05,000 Speaker 1: gonna cost? After spending all this money? It was over 62 00:03:05,040 --> 00:03:07,960 Speaker 1: a hundred million dollars. The arena is about twenty three 63 00:03:08,040 --> 00:03:10,639 Speaker 1: years old, twenty four years old, something like that, So 64 00:03:10,960 --> 00:03:12,720 Speaker 1: they spent a hundred mill to get all this done 65 00:03:12,760 --> 00:03:15,160 Speaker 1: and included like a class h r um the new scoreboard. 66 00:03:15,160 --> 00:03:17,080 Speaker 1: You know, things you do when you're redoing arena. But 67 00:03:17,120 --> 00:03:19,520 Speaker 1: you gotta get the seats right. This is I mean, 68 00:03:19,600 --> 00:03:22,119 Speaker 1: it is tight. So good luck. I hope they get 69 00:03:22,160 --> 00:03:24,440 Speaker 1: that ironed out. Well, I'm glad, Like not long ago. 70 00:03:24,480 --> 00:03:26,799 Speaker 1: We were up in Boston this past weekend for hockey 71 00:03:26,800 --> 00:03:28,480 Speaker 1: tournament and like, what else do I do? And one 72 00:03:28,480 --> 00:03:29,840 Speaker 1: of his that said, hey, the Bruins are playing, you 73 00:03:29,880 --> 00:03:33,680 Speaker 1: want to go? I'm glad? I said no. Moving along, 74 00:03:33,919 --> 00:03:37,400 Speaker 1: MLB is changing its rules to allow investment funds to 75 00:03:37,440 --> 00:03:39,920 Speaker 1: buy in the teams, and this kind of is a 76 00:03:39,920 --> 00:03:43,320 Speaker 1: companion piece that goes along with We talked about NFL 77 00:03:43,440 --> 00:03:46,800 Speaker 1: teams changing their rules for the amount of money that 78 00:03:47,000 --> 00:03:49,360 Speaker 1: that will be for the majority ownership. Yet the NBA 79 00:03:49,480 --> 00:03:52,200 Speaker 1: we had that sort of mysterious investment vehicle where they're 80 00:03:52,200 --> 00:03:54,760 Speaker 1: trying to add liquidity to the limited partner market because 81 00:03:55,040 --> 00:03:57,640 Speaker 1: the valuations are so high that it's hard to get 82 00:03:57,640 --> 00:04:00,360 Speaker 1: out as a limited partner because oftentime, and you know, 83 00:04:00,360 --> 00:04:02,760 Speaker 1: as we've said, you get no control, you don't get 84 00:04:02,760 --> 00:04:04,680 Speaker 1: a ring you I mean, you don't get anything except 85 00:04:04,680 --> 00:04:06,760 Speaker 1: the right to say I own a piece of the team. 86 00:04:06,840 --> 00:04:09,200 Speaker 1: So those often come at discounts and people are stuck. 87 00:04:09,680 --> 00:04:12,440 Speaker 1: Uh So now baseball is the latest. Uh they didn't 88 00:04:12,440 --> 00:04:15,360 Speaker 1: announce this, but they did change the rules to allow 89 00:04:16,240 --> 00:04:21,200 Speaker 1: for investment funds and that could include college endowments to 90 00:04:21,480 --> 00:04:25,520 Speaker 1: take a piece of teams across baseball. And along with 91 00:04:25,600 --> 00:04:27,599 Speaker 1: that change, then you're gonna see who's gonna be sort 92 00:04:27,600 --> 00:04:30,880 Speaker 1: of the first mover to capitalize. Turns out, I think 93 00:04:30,880 --> 00:04:32,839 Speaker 1: it's gonna be next week's guest on the show, Sal 94 00:04:32,960 --> 00:04:37,400 Speaker 1: Galacyoto of Galacyoto Sports Partners. He has created a five 95 00:04:37,480 --> 00:04:41,560 Speaker 1: hundred million dollar fund. My sources are telling me, uh, 96 00:04:41,640 --> 00:04:44,320 Speaker 1: he's already got regulatory approval, because you need to get 97 00:04:44,440 --> 00:04:47,600 Speaker 1: regulatory proval from all the federal agencies, and he's gonna 98 00:04:47,600 --> 00:04:50,479 Speaker 1: be out there. He wants no more than a hundred 99 00:04:50,480 --> 00:04:54,400 Speaker 1: investors in the fund minimum in is a million dollars. 100 00:04:54,920 --> 00:04:58,640 Speaker 1: So let's see who steps up and decides they want 101 00:04:58,680 --> 00:05:02,880 Speaker 1: to UH to part in this investment vehicle. By the way, 102 00:05:03,040 --> 00:05:06,479 Speaker 1: others around the industry keep calling and saying, am I 103 00:05:06,560 --> 00:05:08,840 Speaker 1: missing something? How do you make money with this thing? 104 00:05:08,920 --> 00:05:13,120 Speaker 1: Somebody has to buy it from you. Theoretically, if there's 105 00:05:13,120 --> 00:05:15,440 Speaker 1: a controlling steak sale, obviously it would be for more 106 00:05:15,480 --> 00:05:17,360 Speaker 1: than what the LP steake went for. You could make 107 00:05:17,400 --> 00:05:18,920 Speaker 1: money that way. But as you and I know, if 108 00:05:18,920 --> 00:05:21,000 Speaker 1: we sit around waiting for controlling steak sales, we're waiting 109 00:05:21,040 --> 00:05:24,839 Speaker 1: a long time. UM. Other funds could come into existence. 110 00:05:24,839 --> 00:05:28,400 Speaker 1: They could trade between the funds. Maybe that'll boost the valuation. 111 00:05:29,080 --> 00:05:33,520 Speaker 1: UM just maybe as the market matures, as the fund matures, 112 00:05:34,240 --> 00:05:36,960 Speaker 1: you could sell into the secondary market and perhaps that 113 00:05:37,000 --> 00:05:39,080 Speaker 1: boost the value. But either way, this is not a 114 00:05:39,160 --> 00:05:40,680 Speaker 1: quickie in and out. This is gonna be a long 115 00:05:40,760 --> 00:05:45,240 Speaker 1: term investment for folks. UH. The two hour marathon. I'm 116 00:05:45,320 --> 00:05:47,840 Speaker 1: kind of happy because you ran a two hour marathon. 117 00:05:49,160 --> 00:05:51,559 Speaker 1: I've watched it for two hours on TV. You watched 118 00:05:51,600 --> 00:05:55,200 Speaker 1: Elliott kip Cho. Yeah, I didn't think it could be done. 119 00:05:55,320 --> 00:05:57,160 Speaker 1: I didn't think it could be done either, But it's 120 00:05:57,200 --> 00:06:02,479 Speaker 1: insane inside two hours and the running COGNESCENTI or well, 121 00:06:02,520 --> 00:06:05,440 Speaker 1: you know, he had the pacers, he had water being 122 00:06:05,440 --> 00:06:08,800 Speaker 1: delivered by guys on bikes. He had like I don't care, 123 00:06:09,680 --> 00:06:15,680 Speaker 1: I don't care running it's unbelievable. But for the business 124 00:06:15,720 --> 00:06:19,599 Speaker 1: of sport, what do you think bar this means for 125 00:06:19,760 --> 00:06:24,000 Speaker 1: Nike because wears the Nike swoosh. He was wearing the 126 00:06:24,120 --> 00:06:26,640 Speaker 1: vapor fly shoe, which, by the way, like you and 127 00:06:26,680 --> 00:06:28,480 Speaker 1: I can't go into foot locker and get this thing. 128 00:06:29,080 --> 00:06:32,240 Speaker 1: It features some like a curved carbon fiberplate that propels 129 00:06:32,240 --> 00:06:35,120 Speaker 1: you forward and improves your performance five six which for 130 00:06:35,160 --> 00:06:38,680 Speaker 1: a marathon is a big deal. But all coming at 131 00:06:38,680 --> 00:06:42,560 Speaker 1: a time. Alberto Salazari know the Nike coaches suspended, They've 132 00:06:42,600 --> 00:06:45,600 Speaker 1: shut down the Oregon project. This is some awful good 133 00:06:45,640 --> 00:06:48,680 Speaker 1: news if you're associated with in the running world. Yes, Nike, 134 00:06:48,720 --> 00:06:50,680 Speaker 1: he needed something like this. By the way, we should 135 00:06:50,720 --> 00:06:52,560 Speaker 1: tell him where this happened. By the way, where where 136 00:06:52,600 --> 00:06:55,000 Speaker 1: did it happen? The vienna? Yeah? Well, yeah, where he 137 00:06:55,080 --> 00:07:00,160 Speaker 1: ran the two hour closed course. Yeah, I mean perfect conditions. 138 00:07:00,520 --> 00:07:02,919 Speaker 1: I mean everything Taylor made. You had a tight wedge 139 00:07:03,240 --> 00:07:07,159 Speaker 1: for drafting. You know, the wind resistance. So everything tailor 140 00:07:07,279 --> 00:07:09,840 Speaker 1: made for a runner to achieve the goal, and he 141 00:07:09,880 --> 00:07:13,600 Speaker 1: tried before any and he failed. So I mean a 142 00:07:13,680 --> 00:07:17,320 Speaker 1: sub two hour marathon twenty six point two miles and 143 00:07:17,400 --> 00:07:23,360 Speaker 1: one who I you know what that it takes me 144 00:07:23,440 --> 00:07:27,080 Speaker 1: that long to drive here to work. Yeah, and think 145 00:07:27,080 --> 00:07:30,520 Speaker 1: about that entire time that he's running that pace. Oh 146 00:07:30,560 --> 00:07:33,720 Speaker 1: my goodness, man. But curious to see how how Nike 147 00:07:33,800 --> 00:07:36,360 Speaker 1: and the running world responds and to see if it 148 00:07:36,440 --> 00:07:38,600 Speaker 1: is sort of that feel good boost that the company 149 00:07:38,640 --> 00:07:40,920 Speaker 1: could use. And probably this has been one of the 150 00:07:40,920 --> 00:07:45,280 Speaker 1: biggest sports stories so far this week. Lebron James Uh 151 00:07:45,440 --> 00:07:51,000 Speaker 1: the comments that he made concerning Houston Rockets GM, Darryl Morey, Uh, 152 00:07:51,400 --> 00:07:56,280 Speaker 1: concerning all of the controversy with China and Hong Kong. 153 00:07:56,360 --> 00:07:58,080 Speaker 1: Let's play you what he sent I don't want to 154 00:07:58,080 --> 00:08:02,760 Speaker 1: get into a word or sentence uh feud with Darryl 155 00:08:03,240 --> 00:08:06,600 Speaker 1: Umdero Moray, but I believe he wasn't educated on on 156 00:08:07,080 --> 00:08:11,040 Speaker 1: the situation at hand and um and he spoke, and 157 00:08:11,800 --> 00:08:15,000 Speaker 1: that so many people could have been harmed um not 158 00:08:15,080 --> 00:08:19,400 Speaker 1: only financially, but physically, emotionally, spiritually. UM, So just be 159 00:08:19,440 --> 00:08:21,840 Speaker 1: careful what we what we tweet and we say and 160 00:08:21,920 --> 00:08:24,200 Speaker 1: what we do even though yes, we do have freedom 161 00:08:24,200 --> 00:08:26,520 Speaker 1: of speech, but there can be um a lot of 162 00:08:26,560 --> 00:08:29,239 Speaker 1: negative that comes with back to Now. Since that time, 163 00:08:29,800 --> 00:08:32,960 Speaker 1: Lebron James has said that the media has taken it 164 00:08:33,000 --> 00:08:37,679 Speaker 1: out of context and misconstrued what he said. He said 165 00:08:37,720 --> 00:08:39,480 Speaker 1: he was talking about like maybe he could have waited 166 00:08:39,480 --> 00:08:42,520 Speaker 1: a week knowing that players were going over there to play, right. 167 00:08:42,679 --> 00:08:48,000 Speaker 1: Matt came after that first initiative, but having said all that, 168 00:08:49,280 --> 00:08:51,560 Speaker 1: he was pretty plain. What what I heard, I mean, 169 00:08:51,600 --> 00:08:55,040 Speaker 1: I'm not I know it was backlash. There was backlash 170 00:08:55,080 --> 00:09:00,000 Speaker 1: in Hong Kong and by the way, yeah, yeah, people 171 00:09:00,120 --> 00:09:03,360 Speaker 1: were stomping on it. And years ago, let me know 172 00:09:03,400 --> 00:09:06,240 Speaker 1: if you remember this, do you remember I Renewable the 173 00:09:06,320 --> 00:09:10,079 Speaker 1: NBA player that's okay, No, he was a teammate of 174 00:09:10,160 --> 00:09:14,440 Speaker 1: Lebron's in Cleveland and he had and and forgive me 175 00:09:14,640 --> 00:09:17,000 Speaker 1: if the exact details escaped me right now, but I 176 00:09:17,000 --> 00:09:22,720 Speaker 1: mean he penned a letter about Dark four and every 177 00:09:22,720 --> 00:09:25,760 Speaker 1: player on the team signed it except for Lebron. I 178 00:09:25,800 --> 00:09:27,920 Speaker 1: remember I wrote about it years ago, and I went 179 00:09:27,960 --> 00:09:31,640 Speaker 1: out and I went out to New Jersey before playoff 180 00:09:31,640 --> 00:09:34,200 Speaker 1: game of Cleveland Nets playoff game back you know when 181 00:09:34,480 --> 00:09:36,559 Speaker 1: for for young, young, young listeners, the Nets used to 182 00:09:36,559 --> 00:09:39,800 Speaker 1: play in New Jersey. Remember those days, Remember those days 183 00:09:39,800 --> 00:09:45,640 Speaker 1: that the Brendon burn Continental Airlines Arena. Aren't they special? Um? 184 00:09:45,640 --> 00:09:47,439 Speaker 1: Bruce Rattner and I used to write the elevator down 185 00:09:47,440 --> 00:09:51,880 Speaker 1: for him to talk to like nine season ticket holders lovely. Um. 186 00:09:51,920 --> 00:09:53,640 Speaker 1: So I asked Lebron and sort of one of these 187 00:09:53,679 --> 00:09:55,720 Speaker 1: media gaggles, and I don't think he saw it coming 188 00:09:55,760 --> 00:09:59,040 Speaker 1: because you know what, like, hey, you're the only player 189 00:09:59,040 --> 00:10:01,560 Speaker 1: on the team didn't sign it. And of course Nike, 190 00:10:01,760 --> 00:10:05,280 Speaker 1: he's got lots of reasons to be careful about what 191 00:10:05,280 --> 00:10:08,559 Speaker 1: he says and does. And his response was, I just 192 00:10:08,720 --> 00:10:11,079 Speaker 1: don't understand it well enough. I have to educate myself. 193 00:10:11,760 --> 00:10:15,520 Speaker 1: All these years later, now he's saying Darryl Morey quote 194 00:10:15,520 --> 00:10:19,720 Speaker 1: wasn't educated. I'm not so sure that's true. I'm not so. 195 00:10:19,920 --> 00:10:22,760 Speaker 1: I'm not so sure Darryl Morey wasn't educated on what 196 00:10:22,840 --> 00:10:26,480 Speaker 1: was going on. He You know, I've said this before 197 00:10:26,480 --> 00:10:30,920 Speaker 1: and I'll say it again. Once you take any game global, 198 00:10:30,960 --> 00:10:34,720 Speaker 1: it's making difference whether there's the NBA or baseball football wherever, 199 00:10:34,920 --> 00:10:38,520 Speaker 1: whatever it is, you have to keep in mind the 200 00:10:38,520 --> 00:10:40,680 Speaker 1: flat world. There there are no it's a flat world. 201 00:10:40,720 --> 00:10:42,920 Speaker 1: There are no borders. Lebron. You say something, Darryl, you 202 00:10:43,000 --> 00:10:45,920 Speaker 1: say something, This is basketball without borders. Is there the 203 00:10:45,920 --> 00:10:48,680 Speaker 1: way the NBA likes to express it. That's they're saying, yeah, 204 00:10:48,720 --> 00:10:50,480 Speaker 1: Well the words do the same thing. And keep in 205 00:10:50,520 --> 00:10:52,880 Speaker 1: mind Lebron is thirty four years old, right, thirty four, 206 00:10:53,080 --> 00:10:56,439 Speaker 1: thirty five and a couple of months. There's more basketball 207 00:10:56,520 --> 00:10:59,760 Speaker 1: in his rear view mirror than looking ahead. His future 208 00:11:00,240 --> 00:11:03,720 Speaker 1: will not be on the basketball court. It's Nike, it's 209 00:11:03,840 --> 00:11:11,080 Speaker 1: it's Uninterrupted, it's it's other off court endeavors. Perhaps he 210 00:11:11,240 --> 00:11:16,120 Speaker 1: is looking in that direction with his latest stance. This 211 00:11:16,240 --> 00:11:19,080 Speaker 1: has been the Bloomberg Business of Sports podcast on Michael 212 00:11:19,080 --> 00:11:22,079 Speaker 1: Barr along with Scott Sashnik and we miss you, Haven't don't. 213 00:11:22,440 --> 00:11:24,520 Speaker 1: We're here each and every Monday when I sit next 214 00:11:24,559 --> 00:11:26,800 Speaker 1: to him, I don't listening and Thursday exploring the world 215 00:11:26,800 --> 00:11:29,080 Speaker 1: of money in sports. Join us again at the end 216 00:11:29,080 --> 00:11:31,360 Speaker 1: of the week when we speak with the biggest and 217 00:11:31,400 --> 00:11:34,040 Speaker 1: brightest in the sports business industry. You're listening to Bloomberg 218 00:11:34,040 --> 00:11:36,440 Speaker 1: Business of Sports on Bloomberg Radio around the world and 219 00:11:36,520 --> 00:11:38,840 Speaker 1: online wherever you get your podcasts