1 00:00:00,520 --> 00:00:04,240 Speaker 1: This is Bloomberg Business of Sports. The cold heart truth 2 00:00:04,280 --> 00:00:07,840 Speaker 1: about the Olympic journey is not really been financially incentivize 3 00:00:08,000 --> 00:00:10,480 Speaker 1: in the same way that many of the professional sports are. 4 00:00:10,600 --> 00:00:13,880 Speaker 1: But this is a basketball involved nb A, blobals are 5 00:00:14,000 --> 00:00:17,080 Speaker 1: licensing arm think for fifty. All of those things will 6 00:00:17,160 --> 00:00:19,800 Speaker 1: make up what that looks like money in sports. It's 7 00:00:19,880 --> 00:00:22,160 Speaker 1: one of the reasons why I enjoyed doing on money 8 00:00:22,160 --> 00:00:23,840 Speaker 1: that I countdown. Let's talk about some of the more 9 00:00:23,880 --> 00:00:27,360 Speaker 1: interesting aspects of business of sports. When you're talking sports, 10 00:00:27,440 --> 00:00:30,920 Speaker 1: discipline is the bridge from being good to ultimately being 11 00:00:31,000 --> 00:00:33,280 Speaker 1: great at whatever it is that you're trying to be 12 00:00:33,320 --> 00:00:36,840 Speaker 1: your accomplished as your profession. Bloomberg Business of Sports from 13 00:00:36,880 --> 00:00:41,760 Speaker 1: Bloomberg Radio. This is the Bloomberg Business of Sports show. 14 00:00:41,720 --> 00:00:44,120 Speaker 1: Will we explore the big money issues in the world 15 00:00:44,159 --> 00:00:46,879 Speaker 1: of sports on Michael Laren, I'm Scarlett Fool and I'm 16 00:00:46,960 --> 00:00:51,880 Speaker 1: Damien Sassaur and we have several headlines in sports to 17 00:00:51,960 --> 00:00:56,040 Speaker 1: go over, from the live golf story to Vince McMahon 18 00:00:56,160 --> 00:00:59,920 Speaker 1: to soccer. Bloomberg's Jerry Smith joins us. Jerry, thank you 19 00:01:00,080 --> 00:01:02,000 Speaker 1: so much for talking with us, Thanks for having me. 20 00:01:02,160 --> 00:01:06,120 Speaker 1: Let's begin with live because that has become the biggest 21 00:01:06,160 --> 00:01:11,040 Speaker 1: controversy that I can think of in golf. And you 22 00:01:11,080 --> 00:01:15,479 Speaker 1: know that in terms of just a breakaway league. Even 23 00:01:15,520 --> 00:01:20,240 Speaker 1: Tiger Woods, who had his own scandals years ago, is 24 00:01:20,280 --> 00:01:27,240 Speaker 1: slamming Greg Norman about the breakaway. It's yeah, what he did, 25 00:01:27,319 --> 00:01:30,200 Speaker 1: it was I remember that. It was like, oh, man, Jerry, 26 00:01:30,520 --> 00:01:34,040 Speaker 1: your thoughts. I mean, this is something. So this golf 27 00:01:34,280 --> 00:01:38,120 Speaker 1: is this new golf league, and it's controversial for a 28 00:01:38,160 --> 00:01:42,080 Speaker 1: few reasons. The biggest is that it is backed by 29 00:01:42,480 --> 00:01:46,760 Speaker 1: Saudi Arabia's Sovereign Wealth funds UM. So you know, the 30 00:01:46,800 --> 00:01:49,920 Speaker 1: golfers who have joined this league are getting a lot 31 00:01:49,960 --> 00:01:52,720 Speaker 1: of criticism from people who feel like you shouldn't be 32 00:01:53,040 --> 00:01:56,080 Speaker 1: aligning yourself with a golf tour that's backed by a 33 00:01:56,160 --> 00:02:00,120 Speaker 1: country with a history of human rights um abuses. So 34 00:02:00,240 --> 00:02:02,840 Speaker 1: that's been very controversial. But Live Golf has been a 35 00:02:02,840 --> 00:02:05,760 Speaker 1: lot more successful than I think a lot of people 36 00:02:06,160 --> 00:02:09,040 Speaker 1: would have thought. They've been able to recruit a lot 37 00:02:09,040 --> 00:02:13,519 Speaker 1: of big name golfers, Phil Michelson, Dustin Johnson, Bryson's Shambo, 38 00:02:13,680 --> 00:02:17,040 Speaker 1: Patrick Read and they've had two events so far. And 39 00:02:17,440 --> 00:02:19,280 Speaker 1: you know the other thing about Lift Golf is they 40 00:02:19,280 --> 00:02:22,760 Speaker 1: are able to get these golfers um from the PGA 41 00:02:22,800 --> 00:02:25,320 Speaker 1: Tour because they're offering more money. I mean the person 42 00:02:25,440 --> 00:02:27,480 Speaker 1: that these guys are playing for it and lift golf 43 00:02:27,560 --> 00:02:30,480 Speaker 1: is much bigger than uh, you know, your typical PGA 44 00:02:30,560 --> 00:02:35,040 Speaker 1: Tour events and and the schedule is lighter and so um. 45 00:02:35,080 --> 00:02:36,720 Speaker 1: You know a lot of these golfers, a lot of 46 00:02:36,760 --> 00:02:40,720 Speaker 1: them are older and are not as competitive as it 47 00:02:40,880 --> 00:02:45,160 Speaker 1: used to be and are seeing these huge guaranteed checks 48 00:02:45,480 --> 00:02:47,600 Speaker 1: I mean dead dead, dead last and to live golf 49 00:02:47,600 --> 00:02:50,280 Speaker 1: events to make a d twenty thousand dollars and then 50 00:02:50,280 --> 00:02:53,200 Speaker 1: the winner gets three million. So it's um, you know 51 00:02:53,280 --> 00:02:55,720 Speaker 1: they are they have been successful in getting a lot 52 00:02:55,720 --> 00:02:58,520 Speaker 1: of big game golfers to join and it's a real 53 00:02:58,560 --> 00:03:01,280 Speaker 1: corrected the PGA Tour. Yeah, work less, paid more. What's 54 00:03:01,320 --> 00:03:04,320 Speaker 1: not to love if you are in your twilightly twilight 55 00:03:04,360 --> 00:03:06,960 Speaker 1: years as a golfer. But Jerry, the thing that is 56 00:03:07,000 --> 00:03:09,480 Speaker 1: interesting now because we know the PGA Tour feels under 57 00:03:09,520 --> 00:03:12,560 Speaker 1: threat and it's come up with these rules where it 58 00:03:12,639 --> 00:03:16,480 Speaker 1: kicks players off, golfers off the tour if they participate 59 00:03:16,600 --> 00:03:20,560 Speaker 1: in the live golf tournament. Is the Justice Department is 60 00:03:20,600 --> 00:03:24,680 Speaker 1: now looking into how the PGA Tour is responding, which 61 00:03:24,760 --> 00:03:27,239 Speaker 1: I thought was really interesting. Is it unusual for the 62 00:03:27,320 --> 00:03:29,880 Speaker 1: d o J to step in like this and examine 63 00:03:29,880 --> 00:03:32,720 Speaker 1: the PGA Tour. It is, um, Yeah, I mean what 64 00:03:32,760 --> 00:03:35,840 Speaker 1: you said is seems to be at the center of 65 00:03:35,880 --> 00:03:41,520 Speaker 1: the Justice Department investigation of potential antitrust violations, and that 66 00:03:41,720 --> 00:03:45,040 Speaker 1: is that the PGA Tour is suspended indefinitely any of 67 00:03:45,080 --> 00:03:48,840 Speaker 1: their members who have joined the live golf circuit, So 68 00:03:49,120 --> 00:03:52,160 Speaker 1: you know, Dustin Johnson, Phil Nicholson, all these guys are 69 00:03:52,280 --> 00:03:55,360 Speaker 1: essentially banned from playing on the PGA Tour. Again, this 70 00:03:55,560 --> 00:03:58,920 Speaker 1: is it's unusual, but it's actually not without President Um. 71 00:03:59,000 --> 00:04:02,680 Speaker 1: The Federal Trade Mission back in the early nineties UH 72 00:04:02,720 --> 00:04:07,560 Speaker 1: investigated the PGA Tour for a similar UH situation where 73 00:04:07,840 --> 00:04:10,160 Speaker 1: and it was actually Greg Norman again in the early 74 00:04:10,240 --> 00:04:12,840 Speaker 1: nineties who wanted to start a rival golf tour from 75 00:04:12,880 --> 00:04:16,400 Speaker 1: the PGA Tour. He called it World Golf um and 76 00:04:16,440 --> 00:04:19,560 Speaker 1: even when as far as Fox was willing to buy 77 00:04:19,560 --> 00:04:22,680 Speaker 1: the television rights for World Golf and the PGA Tour 78 00:04:23,520 --> 00:04:26,480 Speaker 1: threatened to suspend the golfers who joined World Golf, and 79 00:04:26,520 --> 00:04:30,919 Speaker 1: the FTC spent several years investigating Ultimately, they decided not 80 00:04:31,120 --> 00:04:33,480 Speaker 1: to pursue any sort of legal action against the tour, 81 00:04:34,040 --> 00:04:35,440 Speaker 1: and that has a lot to do with the fact 82 00:04:35,440 --> 00:04:39,200 Speaker 1: that the tour did a very aggressive job in Washington, 83 00:04:39,279 --> 00:04:41,760 Speaker 1: d C. Getting members of Congress to write letters to 84 00:04:41,800 --> 00:04:45,360 Speaker 1: the FTC saying, you know, back off the PGA tour. 85 00:04:45,480 --> 00:04:48,040 Speaker 1: They do a lot of good things for charities. Um. 86 00:04:48,279 --> 00:04:50,159 Speaker 1: So it'll be really interesting to see how the PGA 87 00:04:50,200 --> 00:04:54,080 Speaker 1: Tour response to this Justice Department investigation and whether they 88 00:04:54,080 --> 00:04:56,880 Speaker 1: tried to rally a lot of support in Washington in 89 00:04:56,920 --> 00:04:59,640 Speaker 1: their behalf rry, Let's talk about the live product. You know, 90 00:04:59,680 --> 00:05:02,800 Speaker 1: I'm sure are you uh? You know the tours in England, 91 00:05:02,839 --> 00:05:05,240 Speaker 1: the one most recently in Portland's you know, you've got 92 00:05:05,240 --> 00:05:07,680 Speaker 1: four man teams, you've got a Shockland start. You know, 93 00:05:07,720 --> 00:05:10,239 Speaker 1: I'm curious what are your thoughts on the live product? 94 00:05:10,279 --> 00:05:12,120 Speaker 1: How does it compare to you know, the p g 95 00:05:12,360 --> 00:05:14,960 Speaker 1: A and did you like it? Yeah? I spent um 96 00:05:15,120 --> 00:05:19,240 Speaker 1: last weekend um binge watching live golf second tournament. This 97 00:05:19,320 --> 00:05:22,000 Speaker 1: is outside of Portland, and I mean the first thing 98 00:05:22,000 --> 00:05:25,320 Speaker 1: to note is is not on US television. You know, 99 00:05:25,480 --> 00:05:29,320 Speaker 1: all the big TV networks, UH, NBC, CBS, ESPN, They 100 00:05:29,320 --> 00:05:31,760 Speaker 1: already have long term deals with the PGA Tour, so 101 00:05:31,800 --> 00:05:34,400 Speaker 1: they're not broadcasting this. So if you want to watch 102 00:05:34,480 --> 00:05:36,440 Speaker 1: live golf, you have to watch it on YouTube or 103 00:05:36,440 --> 00:05:39,320 Speaker 1: Facebook or on the liv golf website. Um. You know, 104 00:05:39,480 --> 00:05:42,080 Speaker 1: I watched several hours of it. On one hand, it's 105 00:05:42,160 --> 00:05:44,839 Speaker 1: it's pretty similar to what you might watch in the 106 00:05:44,839 --> 00:05:47,039 Speaker 1: PGA Tour. On the other hand, there are some real 107 00:05:47,120 --> 00:05:50,400 Speaker 1: differences that I think are genuine improvements. I mean, there's 108 00:05:50,440 --> 00:05:54,120 Speaker 1: no commercials um, and that's a big frustration for a 109 00:05:54,120 --> 00:05:57,839 Speaker 1: lot of golf fans. There's just too many commercial breaks. Um. 110 00:05:57,880 --> 00:06:00,440 Speaker 1: You know, there's a shotgun start, which means that all 111 00:06:00,520 --> 00:06:02,640 Speaker 1: the players start on the course at the same time 112 00:06:02,680 --> 00:06:05,520 Speaker 1: on different holes, so you don't have to wait for 113 00:06:05,600 --> 00:06:07,800 Speaker 1: the golfers tee off one by one or have the 114 00:06:07,880 --> 00:06:11,920 Speaker 1: leaders finished hours before the telecast starts. So I watched 115 00:06:11,920 --> 00:06:13,560 Speaker 1: it and I thought, you know, I'm watching a lot 116 00:06:13,560 --> 00:06:15,560 Speaker 1: more golf shops than I normally would on the On 117 00:06:15,640 --> 00:06:18,440 Speaker 1: a PGA Tour event, the format is different. They have 118 00:06:18,880 --> 00:06:21,440 Speaker 1: They're not only competing individually, but they also have these 119 00:06:21,480 --> 00:06:24,880 Speaker 1: four man teams UM and the four man teams whoever 120 00:06:24,920 --> 00:06:27,520 Speaker 1: wins that also gets UM you know, a couple of 121 00:06:27,560 --> 00:06:31,000 Speaker 1: million dollars. So, but I mean that's really the thing 122 00:06:31,040 --> 00:06:32,800 Speaker 1: that they hit you over the head with when you're 123 00:06:32,800 --> 00:06:36,320 Speaker 1: watching live golf is just it's all about the money. Um. 124 00:06:36,360 --> 00:06:38,920 Speaker 1: You know, they the announcers are constantly reminding you of 125 00:06:38,960 --> 00:06:41,440 Speaker 1: how how much money is at stake, how these guys 126 00:06:41,440 --> 00:06:44,640 Speaker 1: have never played for this much money in their life. Um, 127 00:06:44,680 --> 00:06:48,679 Speaker 1: and that's kind of all that's at stake. There's no history, 128 00:06:48,800 --> 00:06:50,800 Speaker 1: uh these guys. I mean, one thing that's really important 129 00:06:50,839 --> 00:06:53,360 Speaker 1: is these guys aren't playing for world ranking points right now, 130 00:06:53,800 --> 00:06:57,279 Speaker 1: and that matters because world ranking points determined who gets 131 00:06:57,279 --> 00:06:59,599 Speaker 1: to play in the majors. So you're in a situation 132 00:06:59,640 --> 00:07:01,680 Speaker 1: now where some of these live golf guys may never 133 00:07:01,720 --> 00:07:03,640 Speaker 1: get to play the Masters or the U S Hempen 134 00:07:03,720 --> 00:07:06,719 Speaker 1: or the British Opener PGA Championship because they play on 135 00:07:06,760 --> 00:07:08,800 Speaker 1: a tour that doesn't give them the points that would 136 00:07:08,839 --> 00:07:11,920 Speaker 1: qualify them. Um. So I'm watching it and I'm thinking, 137 00:07:11,960 --> 00:07:15,280 Speaker 1: you know, these guys are millionaires. They've already, um, they're 138 00:07:15,320 --> 00:07:19,560 Speaker 1: financially secure. They're playing for a couple of million dollars more. Uh. 139 00:07:19,600 --> 00:07:22,400 Speaker 1: But I felt like I wasn't as nervous as if 140 00:07:22,480 --> 00:07:25,240 Speaker 1: I was watching, uh say, the British Open this week, 141 00:07:25,440 --> 00:07:27,480 Speaker 1: where these guys are playing for put their name in 142 00:07:27,520 --> 00:07:31,720 Speaker 1: the history books and not just money. I thought, so, 143 00:07:31,960 --> 00:07:35,280 Speaker 1: I mean, if you uh, you know, it's certainly there's 144 00:07:35,280 --> 00:07:37,160 Speaker 1: a lot of money at stake, more money than normal. 145 00:07:37,280 --> 00:07:41,240 Speaker 1: But um, but yeah, the history of the game, um, 146 00:07:41,480 --> 00:07:44,160 Speaker 1: I mean, really, golf is about the four majors, and 147 00:07:44,200 --> 00:07:48,280 Speaker 1: these guys don't grow up dreaming about winning a live 148 00:07:48,360 --> 00:07:51,280 Speaker 1: golf tournament outside of Portland's. There is another big story 149 00:07:51,360 --> 00:07:54,600 Speaker 1: to talk about Vince McMahon's reign at w w E. 150 00:07:54,680 --> 00:07:59,440 Speaker 1: It is threatened by misconduct claims. Uh and his name 151 00:07:59,480 --> 00:08:02,640 Speaker 1: has been synonymous with the w w E. But uh, 152 00:08:02,800 --> 00:08:06,360 Speaker 1: now the seventy six year old executive Jerry is in trouble. 153 00:08:06,400 --> 00:08:08,320 Speaker 1: Take us through that, that's right. I mean, there's been 154 00:08:08,600 --> 00:08:11,880 Speaker 1: reports in the Wall Street Journal in recent weeks about 155 00:08:12,240 --> 00:08:16,160 Speaker 1: how Vince McMahon has made um, you know, several million 156 00:08:16,200 --> 00:08:21,080 Speaker 1: dollars in UM payments to women that he's um you know, 157 00:08:21,720 --> 00:08:26,560 Speaker 1: allegedly sexually harassed or had affairs with um And so 158 00:08:26,640 --> 00:08:31,200 Speaker 1: now the w w e's board has launched an investigation 159 00:08:31,280 --> 00:08:35,120 Speaker 1: into these allegations and Uh, we're waiting to see what 160 00:08:35,160 --> 00:08:38,520 Speaker 1: the outcome of that investigation is. In the meantime, Vince 161 00:08:38,600 --> 00:08:41,440 Speaker 1: McMahon has has stepped aside as the CEO, and his 162 00:08:41,520 --> 00:08:47,200 Speaker 1: daughter Stephanie McMahon has um has taken taken over that role. Um. 163 00:08:47,240 --> 00:08:49,079 Speaker 1: You know, one thing that's important to note is Vince 164 00:08:49,120 --> 00:08:53,040 Speaker 1: McMahon still is in creative control of w w E. 165 00:08:53,160 --> 00:08:56,200 Speaker 1: And and that's important because what you really see on 166 00:08:56,240 --> 00:08:59,680 Speaker 1: the broadcast of a w w E wrestling matches, you 167 00:08:59,720 --> 00:09:03,240 Speaker 1: know that Vince's grandchild, he also owns the majority of 168 00:09:03,240 --> 00:09:05,560 Speaker 1: the voting shares of the company, so he's still in 169 00:09:05,600 --> 00:09:08,760 Speaker 1: control of the company. Um. But we're all waiting to 170 00:09:08,800 --> 00:09:11,560 Speaker 1: see what the outcome of this investigation is. One what 171 00:09:11,720 --> 00:09:14,400 Speaker 1: ww he decides to do. Yeah. One thing that you've 172 00:09:14,440 --> 00:09:18,319 Speaker 1: made clear through your reporting is that Vince McMahon has 173 00:09:18,440 --> 00:09:22,439 Speaker 1: changed professional wrestling. He's made it profitable, and all these 174 00:09:22,480 --> 00:09:26,240 Speaker 1: different stakeholders are invested in what he's created. What has 175 00:09:26,280 --> 00:09:28,320 Speaker 1: been his secret sauce, Like, what is it that he 176 00:09:28,400 --> 00:09:31,520 Speaker 1: does that no one else can do? And therefore, even 177 00:09:31,600 --> 00:09:34,440 Speaker 1: with all this misconduct, people are reluctant to see him 178 00:09:34,480 --> 00:09:37,000 Speaker 1: go well, I mean, he if you go back decades. 179 00:09:37,120 --> 00:09:39,520 Speaker 1: I mean he, um, you know, he took what was 180 00:09:39,640 --> 00:09:43,320 Speaker 1: essentially a bunch of regional businesses around the country and 181 00:09:43,360 --> 00:09:46,960 Speaker 1: he consolidated them all into this big national product. And 182 00:09:47,400 --> 00:09:51,720 Speaker 1: w w e's he's gone national international now. Um so 183 00:09:51,760 --> 00:09:55,960 Speaker 1: he's he's just he's built this wrestling into this global 184 00:09:56,679 --> 00:10:01,120 Speaker 1: entertainment empire. He's struck very lucrative deals with Fox and 185 00:10:01,320 --> 00:10:05,040 Speaker 1: NBC Universal. I mean, ww matches are on USA, They're 186 00:10:05,040 --> 00:10:08,520 Speaker 1: on the Peacock streaming service. So the exposure that this 187 00:10:08,559 --> 00:10:12,640 Speaker 1: sport has gotten um with under Vince McMahon's leaderships has 188 00:10:12,640 --> 00:10:16,440 Speaker 1: grown exponentially, um you know. And then the storyline I mean, 189 00:10:16,600 --> 00:10:20,040 Speaker 1: w w E has even in their SEC filings have 190 00:10:20,040 --> 00:10:23,480 Speaker 1: have warned investors that if Vince McMahon no longer was 191 00:10:23,520 --> 00:10:27,200 Speaker 1: involved in the creative process, that would be a real 192 00:10:27,480 --> 00:10:30,320 Speaker 1: material problem for the company. I mean, he's really the 193 00:10:30,360 --> 00:10:34,880 Speaker 1: branchild um of all of the drauma that happened to 194 00:10:35,040 --> 00:10:38,280 Speaker 1: w w E. And so if he were to get 195 00:10:38,280 --> 00:10:40,280 Speaker 1: pushed out over this, uh you know, it could have 196 00:10:40,320 --> 00:10:44,120 Speaker 1: a real impact on the company. And yet Jerry nevertheless, Uh, 197 00:10:44,400 --> 00:10:47,079 Speaker 1: w w E shares are up twenty six percent year 198 00:10:47,080 --> 00:10:51,040 Speaker 1: to date. That vers in the span. What does that 199 00:10:51,120 --> 00:10:53,480 Speaker 1: tell you? I mean, is the market indeed pricing of 200 00:10:53,559 --> 00:10:56,040 Speaker 1: possible change in ownership. I mean, we all know about 201 00:10:56,160 --> 00:10:58,520 Speaker 1: Vince McMahon's impact on the company and how you know, 202 00:10:58,559 --> 00:11:02,560 Speaker 1: many analysts believe he is critical to the ongoing success 203 00:11:02,640 --> 00:11:06,520 Speaker 1: of w w E. But you know, do investors want 204 00:11:06,600 --> 00:11:09,040 Speaker 1: mcmahannon And I mean, what what what a stock price 205 00:11:09,120 --> 00:11:11,560 Speaker 1: is telling you here? I think that in talking to 206 00:11:11,640 --> 00:11:14,280 Speaker 1: a lot of people who have observed Vince's career and 207 00:11:14,360 --> 00:11:17,040 Speaker 1: have followed the w w E for a long time, 208 00:11:17,400 --> 00:11:20,560 Speaker 1: there's a lot of skepticism that anything real is going 209 00:11:20,600 --> 00:11:23,600 Speaker 1: to happen here. Um. Vince McMahon has been through a 210 00:11:23,640 --> 00:11:27,320 Speaker 1: lot of controversies going back to the ninety nineties. There 211 00:11:27,440 --> 00:11:31,480 Speaker 1: was a trial over um, you know, steroid abuse among wrestlers. 212 00:11:32,000 --> 00:11:34,120 Speaker 1: There was a wrestler that died in the ring during 213 00:11:34,160 --> 00:11:37,360 Speaker 1: a pay per view event. There's been several wrestlers who 214 00:11:37,440 --> 00:11:42,120 Speaker 1: have sued overhead injuries, concussions that they said have caused 215 00:11:42,120 --> 00:11:45,880 Speaker 1: brain damage. Uh. And Vince McMahon has has survived all 216 00:11:45,880 --> 00:11:49,440 Speaker 1: of this, um, you know, and I think investors are 217 00:11:49,559 --> 00:11:53,240 Speaker 1: probably thinking that he can survive this as well. To 218 00:11:53,280 --> 00:11:56,560 Speaker 1: give you an idea how popular w w E is. 219 00:11:56,880 --> 00:12:00,920 Speaker 1: And if you remember our show, Wheat talked with Stephanie 220 00:12:01,040 --> 00:12:07,000 Speaker 1: McMahon some time ago and my my son's actually perked 221 00:12:07,080 --> 00:12:09,360 Speaker 1: up when we talk to show you how popular this is. 222 00:12:11,240 --> 00:12:14,120 Speaker 1: The actually cared and and I you know, they said, well, 223 00:12:14,120 --> 00:12:16,320 Speaker 1: who'd you talked to this time? Dad? I said, we 224 00:12:16,360 --> 00:12:18,960 Speaker 1: talked to Stephanie McMahon w w E And they said, 225 00:12:19,000 --> 00:12:24,360 Speaker 1: what you dust mcbones actually talked about somebody. So this 226 00:12:24,600 --> 00:12:28,720 Speaker 1: is a popular sport, folks, and relevant it is, and 227 00:12:28,920 --> 00:12:32,760 Speaker 1: let's see what happens, especially with younger people. They like it. Uh. 228 00:12:32,960 --> 00:12:37,120 Speaker 1: Championship League soccer rights expected to top two billion dollars 229 00:12:37,120 --> 00:12:41,400 Speaker 1: in the US. Jerry, that's right. So UEFA this week 230 00:12:41,480 --> 00:12:45,600 Speaker 1: kicked off the process of selling their US media rights, 231 00:12:45,720 --> 00:12:50,840 Speaker 1: and we've reported that pretty much every major sports broadcaster 232 00:12:51,120 --> 00:12:56,079 Speaker 1: has expressed interest in these rights, from NBC and ESPN, uh, 233 00:12:56,240 --> 00:12:59,760 Speaker 1: you know, CBS, even Apple and Amazon, um. And so 234 00:12:59,840 --> 00:13:01,640 Speaker 1: this is going to be a really big test of 235 00:13:01,679 --> 00:13:05,360 Speaker 1: the value of soccer in America. The last big test 236 00:13:05,440 --> 00:13:08,920 Speaker 1: we got was the Premier League rights last year, which 237 00:13:09,080 --> 00:13:13,760 Speaker 1: NBC renewed their contract for the Premier League at a 238 00:13:13,840 --> 00:13:18,559 Speaker 1: significant premium. And I think that the soccer clubs with 239 00:13:19,400 --> 00:13:23,440 Speaker 1: UEFA's Champions League, and again this is Europe's Champions League, 240 00:13:23,520 --> 00:13:27,040 Speaker 1: is Europe's top soccer tournament. I mean, this is, um 241 00:13:27,080 --> 00:13:30,520 Speaker 1: the highest level of European soccer. They feel like they're 242 00:13:30,520 --> 00:13:34,200 Speaker 1: going to get a significant increase in there in the 243 00:13:34,240 --> 00:13:38,080 Speaker 1: price of the rights for their US media broadcasts. Yeah, 244 00:13:38,120 --> 00:13:40,920 Speaker 1: I mean you named in your stories a bunch of 245 00:13:41,400 --> 00:13:43,960 Speaker 1: possible bidders. It's kind of like who is not involved 246 00:13:44,000 --> 00:13:46,680 Speaker 1: in the talks at this point for this higher price. 247 00:13:47,480 --> 00:13:50,520 Speaker 1: The UEFA is also making changes to make its product 248 00:13:50,559 --> 00:13:52,920 Speaker 1: more compelling. What are some of those changes. Yeah, I 249 00:13:52,920 --> 00:13:57,280 Speaker 1: mean they've they've added more teams and um, they've also, um, 250 00:13:57,320 --> 00:13:59,000 Speaker 1: a couple of things that they've done that is that 251 00:13:59,040 --> 00:14:03,880 Speaker 1: are interesting because because uh, they've really acknowledging how big 252 00:14:03,920 --> 00:14:07,719 Speaker 1: streaming is becoming and supports. Uh, they have relaxed the 253 00:14:07,840 --> 00:14:11,160 Speaker 1: requirement that they used to have that a certain number 254 00:14:11,280 --> 00:14:15,640 Speaker 1: of matches beyond traditional television. So for example, of Apple 255 00:14:15,760 --> 00:14:17,920 Speaker 1: or Amazon were to swoop in and buy these rights, 256 00:14:18,320 --> 00:14:20,680 Speaker 1: they obviously wouldn't have a place on television for that, 257 00:14:20,840 --> 00:14:23,800 Speaker 1: but um, you know they could still you know, win 258 00:14:23,880 --> 00:14:28,080 Speaker 1: the rights. Uh. They've also added January was usually a 259 00:14:28,080 --> 00:14:31,120 Speaker 1: pretty with a break for the UFA Champions League. They've 260 00:14:31,120 --> 00:14:33,880 Speaker 1: actually added matches in the month of January. And they 261 00:14:33,920 --> 00:14:37,520 Speaker 1: did this because there was a concern among media companies 262 00:14:37,960 --> 00:14:41,080 Speaker 1: that the season ended around Christmas and then people would 263 00:14:41,120 --> 00:14:44,840 Speaker 1: cancel their streaming service. And now there's you know, because 264 00:14:44,880 --> 00:14:47,360 Speaker 1: there weren't any matches in January, so they've added matches 265 00:14:47,360 --> 00:14:51,160 Speaker 1: in January. Um, bigger picture, it's just an example of 266 00:14:51,200 --> 00:14:54,480 Speaker 1: how they are really the media companies are really focused 267 00:14:54,520 --> 00:14:57,800 Speaker 1: on putting using soccer as a way to drive their 268 00:14:57,800 --> 00:15:01,440 Speaker 1: streaming services. And this is sports league that is trying 269 00:15:01,520 --> 00:15:04,720 Speaker 1: to cater to these sports, these media companies and say hey, 270 00:15:05,000 --> 00:15:07,680 Speaker 1: we want to work with you. We understand the unique 271 00:15:07,760 --> 00:15:10,640 Speaker 1: challenges of streaming and we would you know, we're going 272 00:15:10,680 --> 00:15:13,040 Speaker 1: to change our rules to accommodate that. Jerry, Let's look 273 00:15:13,040 --> 00:15:15,200 Speaker 1: at the numbers here. I mean, you know, I think 274 00:15:15,280 --> 00:15:17,360 Speaker 1: I think offers are expected to come in at two 275 00:15:17,360 --> 00:15:19,720 Speaker 1: billion for a six year deal. That's about three and 276 00:15:19,920 --> 00:15:22,960 Speaker 1: thirty three million per year, relative to will at paramount 277 00:15:23,000 --> 00:15:25,560 Speaker 1: Univision or paying uf and now, which is a hundred 278 00:15:25,680 --> 00:15:28,400 Speaker 1: forty five million combined per year. That's more than double. 279 00:15:28,960 --> 00:15:31,000 Speaker 1: I mean is that enough? I mean, think about it. 280 00:15:31,040 --> 00:15:35,280 Speaker 1: I mean the real Madrid Liverpool match two point million viewers. 281 00:15:35,360 --> 00:15:37,720 Speaker 1: I mean, talk to me about you know that number? 282 00:15:37,760 --> 00:15:40,840 Speaker 1: Is that enough given what other sports are commanding, UM 283 00:15:40,840 --> 00:15:43,000 Speaker 1: in today's day and age. Well, I think that you 284 00:15:43,040 --> 00:15:45,680 Speaker 1: have to realize that soccer, I mean, soccer is not 285 00:15:45,800 --> 00:15:48,840 Speaker 1: a top tier sport in America. It's it's popularity is growing. 286 00:15:49,360 --> 00:15:51,320 Speaker 1: But you know, I mean if you look at the 287 00:15:51,320 --> 00:15:53,960 Speaker 1: the ratings, I mean, yes, the ratings you pointed out 288 00:15:53,960 --> 00:15:56,400 Speaker 1: for the Champions League final, we're you know, almost three 289 00:15:56,400 --> 00:16:00,320 Speaker 1: million viewers on CBS is very good. But saw is 290 00:16:00,360 --> 00:16:02,720 Speaker 1: not the NFL, it's not the NBA, it's not Major 291 00:16:02,800 --> 00:16:05,600 Speaker 1: League baseball. UM, it's sort of in that second tier 292 00:16:05,600 --> 00:16:08,480 Speaker 1: of sports. So I don't think they're going to command 293 00:16:09,160 --> 00:16:13,080 Speaker 1: a huge number of dollars for their rights, but it 294 00:16:13,240 --> 00:16:17,280 Speaker 1: is that you know, europe top top soccer tournament. Uh. 295 00:16:17,360 --> 00:16:19,800 Speaker 1: You know, a team like Liverpool does have a fan 296 00:16:19,840 --> 00:16:23,720 Speaker 1: base in the US. UM. And so we'll see what happens. 297 00:16:23,760 --> 00:16:28,360 Speaker 1: And ultimately, sports rights are about uh competition, And when 298 00:16:28,440 --> 00:16:31,880 Speaker 1: you've got all the big media companies and very depocketed 299 00:16:31,920 --> 00:16:35,240 Speaker 1: tech companies all expressing interest um that could certainly drive 300 00:16:35,280 --> 00:16:38,360 Speaker 1: the price up. Bloomberg's Jerry Smith. If you're lucky enough 301 00:16:38,440 --> 00:16:41,000 Speaker 1: to have the Bloomberg terminal, or if you can go online, 302 00:16:41,120 --> 00:16:45,320 Speaker 1: check out his articles. They are very good, second to none. 303 00:16:45,720 --> 00:16:48,000 Speaker 1: Jerry Smith, thank you so much for joining us, their 304 00:16:48,120 --> 00:16:50,600 Speaker 1: thanks for having me. This is the Bloomberg Business of 305 00:16:50,640 --> 00:16:53,200 Speaker 1: Sports show. We are here each and every week at 306 00:16:53,240 --> 00:16:56,080 Speaker 1: the same time, plus online wherever you get your podcast. 307 00:16:56,160 --> 00:16:59,880 Speaker 1: You can catch those Mondays, Wednesdays and Thursdays. I'm Michael 308 00:17:00,000 --> 00:17:02,680 Speaker 1: are on Twitter at Big Bar Sports, I'm Scarlet Fu 309 00:17:02,760 --> 00:17:04,879 Speaker 1: and of course I'm on Twitter at Scarlet Fu and 310 00:17:05,040 --> 00:17:08,280 Speaker 1: I'm on Twitter at the sass Our. Thanks for joining us. 311 00:17:08,320 --> 00:17:11,000 Speaker 1: Tune in again next week for the latest on the 312 00:17:11,000 --> 00:17:13,120 Speaker 1: stories moving big money in the world of sports. You're 313 00:17:13,119 --> 00:17:16,800 Speaker 1: listening to Bloomberg Business of Sports from Bloomberg Radio around 314 00:17:16,800 --> 00:17:17,200 Speaker 1: the world.