WEBVTT - BI Weekend: Best of Bloomberg Power Players 0:00:02.920 --> 0:00:12.600 Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg Intelligence 0:00:12.640 --> 0:00:14.480 with Alex Steinhl and Paul'sweenye. 0:00:14.520 --> 0:00:17.720 The real ap performance has been in US corporate high yield. 0:00:17.880 --> 0:00:20.280 Are the companies lean enough? Have they trimmed all the fats? 0:00:20.320 --> 0:00:24.119 The semiconductor business is a really cyclical business. 0:00:23.600 --> 0:00:27.200 Breaking market headlines and corporate news from across the globe. 0:00:27.240 --> 0:00:29.880 Do investors like the M and A that we've seen? 0:00:30.080 --> 0:00:31.000 These are two. 0:00:31.000 --> 0:00:33.159 Big time blue chip companies. 0:00:33.320 --> 0:00:36.920 The window between the peak and cut changing super fast. 0:00:37.080 --> 0:00:41.680 Bloomberg Intelligence with Alex Steinha and Paul's Wheenie on Bloomberg Radio. 0:00:43.320 --> 0:00:45.640 On this edition of Bloomberg Intelligence, we're bring you some 0:00:45.680 --> 0:00:48.440 of the best conversations from our Bloomberg Power Players event 0:00:48.560 --> 0:00:50.680 in New York, brought together some of the world's most 0:00:50.720 --> 0:00:52.839 influential voices in the business of sports. 0:00:52.920 --> 0:00:55.280 Today, we'll look at weather we're set for a major 0:00:55.440 --> 0:00:57.720 change in all areas of college sports. 0:00:58.080 --> 0:01:01.040 Plus we'll discuss what comes next as women's soccer hits 0:01:01.080 --> 0:01:02.000 the mainstream. 0:01:02.040 --> 0:01:04.440 But first we're going to dive into a conversation with 0:01:04.520 --> 0:01:07.600 David Rubinstein, co founder and co chairman of the Carlisle Group. 0:01:07.760 --> 0:01:10.680 He's also principal owner of the Baltimore Orioles, and he 0:01:10.720 --> 0:01:13.679 was joined by Cal Ripken, Junior Baseball Hall of Famer 0:01:13.720 --> 0:01:15.800 and founder and partner of Bripkeen Baseball. 0:01:16.040 --> 0:01:18.440 They discussed their connection to the Orioles and the city 0:01:18.440 --> 0:01:19.039 of Baltimore. 0:01:19.160 --> 0:01:22.520 First, we asked David why he even bought the Baltimore Orioles. 0:01:22.760 --> 0:01:25.039 Well, in this case, I grew up in Baltimore, and 0:01:25.080 --> 0:01:26.920 I wanted to give back to Baltimore a bit, and 0:01:26.959 --> 0:01:30.920 I thought the team could maybe use rejuvenation in some way, 0:01:30.959 --> 0:01:33.920 and it's part of rebirth of Baltimore. Baltimore is trying 0:01:33.959 --> 0:01:36.040 to rebuild itself in many ways from some of the 0:01:36.080 --> 0:01:38.600 struggles it's had. I thought a new ownership group would 0:01:38.600 --> 0:01:40.759 probably be helpful, so I did it for that reason. 0:01:40.800 --> 0:01:42.480 And obviously I hope to make money as well for 0:01:42.640 --> 0:01:45.640 myself and my investors, but it's more of a philanthropic 0:01:45.680 --> 0:01:47.360 thing on my part than anything else. 0:01:47.520 --> 0:01:51.640 And Alex he's got a few partners there, including mister 0:01:51.680 --> 0:01:54.000 Bloomberg who owns this radio program. 0:01:54.120 --> 0:01:55.960 Ah, how about that? How about that? 0:01:56.200 --> 0:01:59.160 Secular forces exactly all comes back together. Cal talked to 0:01:59.200 --> 0:02:02.080 us about the Oriel boy man, I'm a Yankee stin 0:02:02.200 --> 0:02:03.840 So I'm looking at them every day. 0:02:04.520 --> 0:02:07.240 Man name look good. Tell us about this team. 0:02:06.480 --> 0:02:10.040 It's an exciting young team to watch, talent all over 0:02:10.040 --> 0:02:12.400 the place. We've had little problems with injuries and our 0:02:12.400 --> 0:02:15.840 pitching staff, but when you have a deeper minor league system, 0:02:16.240 --> 0:02:19.000 sometimes when somebody gets hurt, you can it's an opportunity 0:02:19.040 --> 0:02:22.440 for someone else. So they're playing really well, and it's 0:02:22.440 --> 0:02:25.320 interesting when many owners come in to buy a team, 0:02:25.720 --> 0:02:27.480 the thing they have to fix is what's happening on 0:02:27.520 --> 0:02:30.680 the field. In our particular case, that's the best part 0:02:30.760 --> 0:02:34.120 about the investment is that Michaelias has done a really 0:02:34.160 --> 0:02:38.960 good job of creating an environment of culture that knows 0:02:38.960 --> 0:02:40.679 how to win, knows how to play, and he's put 0:02:40.720 --> 0:02:43.120 talent in the system. So the good part is you 0:02:43.200 --> 0:02:45.560 just take your hands off of and say just keep 0:02:45.600 --> 0:02:49.280 going and hopefully the luck factor with David will in 0:02:49.320 --> 0:02:50.919 the very first year will take that all the way 0:02:51.000 --> 0:02:51.760 to the World Series. 0:02:51.960 --> 0:02:55.080 That's a really dumb question. Yes, why is investing in 0:02:55.120 --> 0:02:57.760 sports like a good business? And I say that because 0:02:57.800 --> 0:02:59.560 at some point we're going to reach the top, Right, 0:02:59.760 --> 0:03:01.880 there's so much money coming in. How do you know that? 0:03:02.480 --> 0:03:05.040 Well, over the last ten or fifteen years, it's been 0:03:05.120 --> 0:03:08.760 very difficult for somebody to buy a major league professional 0:03:08.800 --> 0:03:13.320 sport operation and lose money. People have made staggering sums. Now, 0:03:13.360 --> 0:03:15.639 of course that tends to tract more money, and as 0:03:15.680 --> 0:03:18.360 you suggest, at some point there's always a peak. But 0:03:18.520 --> 0:03:22.440 right now, the interest in sports is so dynamic that 0:03:23.160 --> 0:03:26.480 the live television despite your view in my view that 0:03:26.520 --> 0:03:30.320 live television should focus on interview shows, actually it focuses 0:03:30.320 --> 0:03:33.600 on live sports, and live sports is what's keeping television 0:03:33.720 --> 0:03:36.040 alive really. So if you take a look at the NFL, 0:03:36.080 --> 0:03:39.480 for example, I think of the fifty most watched television 0:03:39.480 --> 0:03:43.640 shows last year, forty five of them were NFL games. 0:03:44.000 --> 0:03:47.160 And now baseball sees a lot of people as a 0:03:47.200 --> 0:03:49.120 lot of people watching as well, so there's a view 0:03:49.160 --> 0:03:52.480 that the population increases and as other things seem to 0:03:52.480 --> 0:03:55.480 be less attractive, sports is still very, very attractive, and 0:03:55.520 --> 0:03:58.560 so the TV contracts are going up and as a result, 0:03:58.560 --> 0:04:02.440 for example, the NBA just negotiated seventy seven billion dollars 0:04:02.440 --> 0:04:04.920 worth of contracts. It's expected in two years that the 0:04:05.000 --> 0:04:08.920 NFL will top that number. So that's what is driving 0:04:09.000 --> 0:04:11.880 and also it's a global phenomenon that people now are 0:04:11.880 --> 0:04:14.400 buying sports teams not only in their own country but 0:04:14.680 --> 0:04:17.039 everywhere in the world. And so it's really not just 0:04:17.080 --> 0:04:18.000 a US phenomenon. 0:04:18.279 --> 0:04:20.760 So can I have a simple All you have to 0:04:20.839 --> 0:04:23.240 do is to look at the health of sports is 0:04:23.279 --> 0:04:25.520 to look at the salaries of the players. Yeah, and 0:04:25.600 --> 0:04:27.760 I guess I'd become one of those players saying, Man, 0:04:27.800 --> 0:04:28.760 I wish i'd played in. 0:04:28.720 --> 0:04:33.560 This always goes up. I mean, I'm like everybody else. 0:04:33.600 --> 0:04:36.080 It's got a top out somewhere, yet it just keeps 0:04:36.120 --> 0:04:38.640 going higher. Cal how has the game on the field 0:04:39.120 --> 0:04:43.400 changed the kids today that you watch at Canbin Yards still, 0:04:43.440 --> 0:04:45.200 by the way, I would argue one of the best 0:04:45.200 --> 0:04:47.920 parks in Major League Baseball twenty five years on. But 0:04:48.360 --> 0:04:50.760 how's the game changed today versus when when you played well? 0:04:50.760 --> 0:04:53.360 I mean, the analytics have taken over and all the 0:04:53.440 --> 0:04:55.919 data and all the information. And I was an analytical 0:04:56.040 --> 0:04:58.880 player and I took the data from but there's no 0:04:58.960 --> 0:05:00.720 way that I was getting all the sort of data 0:05:00.760 --> 0:05:03.200 that you can get now. And the trick is, and 0:05:03.560 --> 0:05:06.560 this is the fun part about learning the game hasn't 0:05:06.600 --> 0:05:09.560 changed much because the diamonds the same, the bases are 0:05:09.560 --> 0:05:11.760 the same, the mounds the same, the game is played 0:05:11.760 --> 0:05:15.039 the same way. But with all this influx of new data, 0:05:15.400 --> 0:05:18.760 teams feel that they have an advantage when they extract 0:05:18.760 --> 0:05:20.360 some of the data and then use that to help 0:05:20.400 --> 0:05:22.560 them play in the game. But the secret is how 0:05:22.560 --> 0:05:24.200 do you give the data to a player to make 0:05:24.279 --> 0:05:27.120 them a better player. And that's the part that I'm 0:05:27.120 --> 0:05:30.800 having fun with is learning what the data affects the 0:05:30.800 --> 0:05:33.960 philosophy of how you play the game, and that's changed 0:05:34.040 --> 0:05:38.360 and positioning on the field. You know, different old philosophies 0:05:38.360 --> 0:05:40.160 have kind of gone out the window because they've been 0:05:40.200 --> 0:05:43.160 proven not to be effective. So it's interesting to watch 0:05:43.160 --> 0:05:45.119 the game from that perspective. But it is all about 0:05:45.480 --> 0:05:48.000 the data. The numbers they track everything that moves on 0:05:48.040 --> 0:05:48.479 that field. 0:05:48.600 --> 0:05:50.080 It's amazing and that's AI. 0:05:50.200 --> 0:05:52.920 That's big data coming into sports and ouse I'm sure 0:05:52.920 --> 0:05:55.599 you know this, but I mean, just cal has he 0:05:55.600 --> 0:05:56.640 has a little record out there. 0:05:56.640 --> 0:05:57.960 He played a lot of games in a row. 0:05:58.000 --> 0:06:01.640 He never took a day off like That's that is 0:06:01.680 --> 0:06:04.520 something that just it'll never be broken down. 0:06:04.800 --> 0:06:07.280 I wish I was wearing probes or something that could 0:06:07.279 --> 0:06:09.040 figure out how I could do that because I'm asking 0:06:09.040 --> 0:06:10.320 all the time, how in the world you play all 0:06:10.360 --> 0:06:11.960 those games in a row, and I don't know. 0:06:12.120 --> 0:06:15.040 Well, I guess my question would be with the analytics, 0:06:15.200 --> 0:06:17.520 that's never going to happen again, not even a close. 0:06:17.680 --> 0:06:20.320 Well, I think they're predicting now, at least in a 0:06:20.360 --> 0:06:23.680 medical sort of way, when that you might be inclined 0:06:23.680 --> 0:06:25.760 to have an injury, you know, and so if they 0:06:25.760 --> 0:06:27.440 start to think that you might have an injury, then 0:06:27.480 --> 0:06:30.200 they put you on the list a little early, the 0:06:30.480 --> 0:06:32.880 injury list a little early, and they're they're looking at 0:06:32.880 --> 0:06:34.800 the long term as the short term. 0:06:34.800 --> 0:06:36.160 But I don't know if that's a good thing or 0:06:36.240 --> 0:06:36.560 bad thing. 0:06:38.520 --> 0:06:40.640 There's the one thing that's hard to measure is what's 0:06:40.640 --> 0:06:43.200 inside your heart, your guts, and how you go out 0:06:43.200 --> 0:06:46.680 about playing the game, how you compete. That's not measurable 0:06:46.800 --> 0:06:49.359 right now. And I think that's what drove me is 0:06:49.720 --> 0:06:51.960 when you're an everyday player. The definition of an everyday 0:06:51.960 --> 0:06:54.760 player when I played was every day I had the 0:06:54.760 --> 0:06:57.400 body type in which to do what. I healed really 0:06:57.400 --> 0:07:01.000 well and I could play through pain. And when you 0:07:01.040 --> 0:07:03.320 find out that you can play through being less than 0:07:03.320 --> 0:07:06.039 one hundred percent, because I would argue that even if 0:07:06.080 --> 0:07:08.640 you play one hundred and forty games, you're still playing 0:07:08.640 --> 0:07:10.400 at less than one hundred percent. Maybe the only time 0:07:10.440 --> 0:07:12.760 you're one hundred percent is the first day of spring training, right, 0:07:12.880 --> 0:07:15.920 and then you end up moving towards the year. So 0:07:16.840 --> 0:07:19.160 that's the hard part where that's not measurable. 0:07:19.240 --> 0:07:19.480 Yep. 0:07:19.840 --> 0:07:22.480 And I like to see players that push through and 0:07:22.520 --> 0:07:24.720 force themselves to play every game to see too. 0:07:24.960 --> 0:07:28.160 You see that you don't see that too much anymore, Hey, David, 0:07:28.200 --> 0:07:30.680 And aside from the Orioles, you've got a day job here, 0:07:30.760 --> 0:07:33.080 co founder, co chairman of the Carlisle Group. 0:07:33.120 --> 0:07:34.600 Perfect time to ask you this question. 0:07:35.040 --> 0:07:37.800 I know you bought the Orioles as an individual's part 0:07:37.800 --> 0:07:40.480 of a partnership right now, private equity. The NFL has 0:07:40.480 --> 0:07:43.840 allowed private equity crime in as part ownership. 0:07:43.880 --> 0:07:44.680 What do you think about that. 0:07:45.080 --> 0:07:48.960 Well, Carlisle is one of the groups that's permitted, so yes, 0:07:49.840 --> 0:07:51.960 I think that it was inevitable because the prices of 0:07:52.040 --> 0:07:53.920 NFL teams are going on so much that it's very 0:07:53.960 --> 0:07:57.160 difficult to find somebody by himself or herself who can 0:07:57.200 --> 0:07:59.640 buy a team anymore longer. The last team that was sold, 0:08:00.040 --> 0:08:02.800 Washington Commanders, went for six billion dollars. It's a large 0:08:03.240 --> 0:08:05.960 amount of money. Very few people can buy that by themselves. 0:08:06.040 --> 0:08:08.280 You need to have consortium of people to do this, 0:08:08.560 --> 0:08:11.440 and private equity is a big pot of capital sitting there. 0:08:11.560 --> 0:08:13.760 But the deals are ones where you have to be 0:08:13.880 --> 0:08:17.360 ten percent, no involvement in the day to day management, 0:08:17.360 --> 0:08:18.880 and you have to hold for at least six years. 0:08:19.240 --> 0:08:22.040 So NFL's experimental will see how it goes. 0:08:22.520 --> 0:08:25.960 So Kel, you have had minor league investments, but this 0:08:26.000 --> 0:08:27.560 is the first time that both of you have had 0:08:27.920 --> 0:08:30.320 major league investments. How did this come about? Like, how 0:08:30.320 --> 0:08:31.520 did the partnership come about? 0:08:31.800 --> 0:08:34.360 Has it going well? 0:08:34.480 --> 0:08:37.040 The owner of the team for the last thirty years 0:08:37.080 --> 0:08:39.920 was the Angelo's family. I had talked to them over 0:08:40.000 --> 0:08:44.200 last summer about a possible sale and it came to be. 0:08:44.480 --> 0:08:47.120 But I wanted to have people in the consortium that 0:08:47.440 --> 0:08:50.800 were more connected to Baltimore and baseball than maybe I was. 0:08:51.120 --> 0:08:53.120 I hadn't grown up in Baltimore, but I haven't lived 0:08:53.160 --> 0:08:54.920 there for a while. So I talked to a number 0:08:54.920 --> 0:08:57.080 of people in Baltimore and some of the people who 0:08:57.160 --> 0:08:59.560 are also connected with the Oriels, and obviously the first 0:08:59.559 --> 0:09:01.240 call I made as cal Ripken, they said he would 0:09:01.240 --> 0:09:03.160 like to invest and also help us in other ways 0:09:03.160 --> 0:09:05.240 what she's doing. So I think it's worked out quite 0:09:05.280 --> 0:09:08.120 well and win win for Baltimore and for for. 0:09:08.720 --> 0:09:10.400 That was like a no brainer for you. 0:09:10.679 --> 0:09:13.960 Yeah, absolutely, absolutely no brainer. I felt like I've been 0:09:14.000 --> 0:09:15.880 an Oriole through and through my whole life. I mean, 0:09:15.920 --> 0:09:18.000 I grew up in and around the Baltimore area. My 0:09:18.120 --> 0:09:21.760 dad was in with the Orioles in the first fourteen 0:09:21.840 --> 0:09:23.559 years of my life. He was a minor league manager. 0:09:23.960 --> 0:09:25.400 And then you have a dream to be a player, 0:09:25.440 --> 0:09:27.000 You get drafted by the team you want to get 0:09:27.040 --> 0:09:30.199 drafted by. You play your whole career with that team. 0:09:30.280 --> 0:09:33.160 So I know that I went off for a little while, 0:09:33.200 --> 0:09:36.199 and you know, you buy minor league teams, you learn 0:09:36.240 --> 0:09:38.840 about business in other ways. You put your head down, 0:09:38.880 --> 0:09:42.000 you don't pay much attention to what's happening at the Oriols. 0:09:42.440 --> 0:09:44.760 But when David called, it was an opportunity to get 0:09:44.800 --> 0:09:47.880 back in to look at it from the inside looking out. 0:09:48.320 --> 0:09:51.360 And I'm really surprised that I'm way into it now. 0:09:51.400 --> 0:09:54.160 I used to think the whole world revolved around baseball, 0:09:54.400 --> 0:09:55.960 and then you get out and you realize it doesn't. 0:09:56.320 --> 0:09:58.400 But then now it seems like the world revolves around 0:09:58.400 --> 0:09:59.040 baseball again. 0:09:59.120 --> 0:10:01.480 Of course, put it in context for those who don't 0:10:01.520 --> 0:10:06.320 know the record, Lou Garrick played in thirty consecutive games. 0:10:06.520 --> 0:10:09.320 People thought that was the unbreakable record. Cal Ripkin did 0:10:09.360 --> 0:10:12.720 twy six hundred and thirty two games over seventeen years, 0:10:13.000 --> 0:10:16.480 not missing one day. And all of us who worked 0:10:16.600 --> 0:10:18.760 day to day for living in non athletic things. Can 0:10:18.760 --> 0:10:20.960 you imagine going to work seventeen days in or seventeen 0:10:21.040 --> 0:10:22.640 years in rough without missing total? 0:10:23.360 --> 0:10:23.840 Exactly? 0:10:24.440 --> 0:10:27.000 Cal, What do you think the Oils need to work 0:10:27.040 --> 0:10:29.200 on over the next couple of years? Here again, I'm 0:10:29.200 --> 0:10:32.400 looking at the record. The record is great. What do 0:10:32.400 --> 0:10:34.080 you think they need to work on? Is it minor league? 0:10:34.120 --> 0:10:35.080 Is it no? 0:10:35.080 --> 0:10:38.320 No, we have a minor league that's stocked with talent 0:10:38.440 --> 0:10:41.840 and you can only I mean, if you developed three 0:10:41.960 --> 0:10:44.160 shortstops in the minor leagues, you can only play one 0:10:44.160 --> 0:10:44.400 of them. 0:10:44.480 --> 0:10:44.680 Yep. 0:10:44.760 --> 0:10:46.640 So many times the talent that you have in the 0:10:46.640 --> 0:10:49.640 minor leagues is used to trade to get to get 0:10:49.640 --> 0:10:51.640 the pieces that you need at the big league level. 0:10:51.840 --> 0:10:54.120 And the Ools are in good position for that. They 0:10:54.160 --> 0:10:57.040 have young players that are going to be superstars that 0:10:57.080 --> 0:10:59.720 are already superstars, and maybe the biggest challenge in the 0:10:59.720 --> 0:11:01.080 future is how do you keep them? 0:11:01.200 --> 0:11:02.280 Yeah, yeah, exactly. 0:11:02.280 --> 0:11:05.320 I mean no salary cap here, so tough to keep 0:11:05.320 --> 0:11:06.280 the star players. 0:11:06.000 --> 0:11:10.760 Right, Yes, Unlike football or basketball, there's no salary cap 0:11:10.800 --> 0:11:13.600 in yet professional baseball, so you can get contracts at 0:11:13.600 --> 0:11:15.880 are as high as seven hundred million dollars, and so 0:11:15.960 --> 0:11:19.240 it's hard for smaller cities to compete in that domain. 0:11:19.320 --> 0:11:22.440 Somewhat all right, thanks to David Rubinstein and Cal Ripton Jr. 0:11:22.720 --> 0:11:24.640 Coming up, we're gonna break down how NASCAR is trying 0:11:24.679 --> 0:11:27.680 to build audiences and a conversation with its president Steve Phelps. 0:11:27.760 --> 0:11:30.560 You're listening to the Bloomberg Intelligence on Bloomberg Radio, providing in 0:11:30.600 --> 0:11:32.720 depth research and data on two thousand companies and one 0:11:32.800 --> 0:11:36.040 hundred and thirty industries. You can access Bloomberg Intelligence via Beat. 0:11:36.120 --> 0:11:37.000 I go on the terminal. 0:11:37.080 --> 0:11:39.840 I'm Paul Sweeney and I'm Alex Steele, and this is Bloomberg. 0:11:48.840 --> 0:11:52.720 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:11:52.800 --> 0:11:55.480 weekdays at ten am Eastern on Apple card Playing and 0:11:55.640 --> 0:11:58.520 Broun Auto with the Bloomberg Business app. Listen on demand. 0:11:58.559 --> 0:12:02.880 Wherever you get your podcast are watch us live on YouTube. 0:12:03.840 --> 0:12:06.320 We continue as some of the best conversations from our 0:12:06.360 --> 0:12:09.120 Bloomberg Power Players event in New York. It brought together 0:12:09.240 --> 0:12:12.760 some of the most influential people in the business of sports. 0:12:12.960 --> 0:12:16.320 Next up a conversation with NASCAR president Steve Phelps. We 0:12:16.400 --> 0:12:19.199 discussed how NASCAR is trying to build audiences and expand 0:12:19.240 --> 0:12:20.120 outside the US. 0:12:20.200 --> 0:12:22.480 We first asked where we are now with NASCAR and 0:12:22.520 --> 0:12:23.880 the global sports scene. 0:12:24.080 --> 0:12:27.200 Well, I think I would say until two thousand and nine, 0:12:27.640 --> 0:12:30.920 the growth of the sport just continued. You know, the 0:12:30.920 --> 0:12:34.920 recession hit, and I think sponsorship started to go away 0:12:34.960 --> 0:12:38.000 because not necessary to the sport just because of where 0:12:38.000 --> 0:12:41.040 things were with the economy. And then we had a slow, 0:12:41.080 --> 0:12:43.600 steady decline, if we're going to be completely honest, until 0:12:43.600 --> 0:12:48.280 twenty eighteen. But since twenty nineteen, attendance is ratings are up. 0:12:48.720 --> 0:12:52.000 We did a almost a one point one billion dollar 0:12:52.040 --> 0:12:55.160 per year media deal last year for seven years, so 0:12:55.400 --> 0:13:00.200 almost eight billion dollars. And so I'm very bold us 0:13:00.320 --> 0:13:03.640 on where the sport is today, but importantly where it's going. 0:13:04.200 --> 0:13:05.760 Where do you think it's going to go? Like, has 0:13:05.800 --> 0:13:07.360 it broaden appeal? How do you get someone like me 0:13:07.400 --> 0:13:07.839 to watch it? 0:13:07.920 --> 0:13:09.240 Sure, I think you know it. 0:13:09.559 --> 0:13:13.160 Yeah, And that's a and there's the trick, right, So like. 0:13:13.200 --> 0:13:15.559 Me just I don't know. I don't do sports at all. 0:13:15.760 --> 0:13:17.520 I like the Olympics, I like the US Open. 0:13:17.640 --> 0:13:19.800 So I think, you know, we're trying to appeal to 0:13:19.920 --> 0:13:23.160 both obviously our existing audience and serve that audience and 0:13:23.200 --> 0:13:25.679 then bring a new audience in. We're doing that through 0:13:25.679 --> 0:13:27.800 a number of different things. So for example, we did 0:13:28.040 --> 0:13:31.960 a Netflix show earlier in the year, and that audience 0:13:32.000 --> 0:13:34.560 for us has been more female, it has been younger, 0:13:35.240 --> 0:13:37.679 and I think if you look overall in NASCAR in 0:13:37.720 --> 0:13:40.480 the last three years, our growth has come from women, 0:13:41.480 --> 0:13:46.000 people of color, and younger people. And so it's working, 0:13:46.240 --> 0:13:48.000 but we've got to continue. 0:13:47.520 --> 0:13:48.040 To do that. 0:13:48.520 --> 0:13:51.960 The key for me is what content opportunities we have 0:13:52.559 --> 0:13:55.319 that will capture you, Alex right, and what are the 0:13:55.440 --> 0:13:58.280 storylines we have that will capture you. And I think 0:13:58.320 --> 0:14:01.920 that's important because I think people think of it in 0:14:02.040 --> 0:14:05.280 a way that is not right, which is you're either 0:14:05.320 --> 0:14:07.880 going to serve your existing fans or you're going to 0:14:07.920 --> 0:14:08.760 go after new fans. 0:14:09.040 --> 0:14:11.320 I don't think that's true. It's an and it's not 0:14:11.400 --> 0:14:11.760 an or. 0:14:13.559 --> 0:14:15.880 These fans, the existing fans, they want great racing, they 0:14:15.920 --> 0:14:18.440 want great storylines, they want their drivers to win, they 0:14:18.520 --> 0:14:19.720 want to see exciting racing. 0:14:21.200 --> 0:14:22.560 These people want the same thing. 0:14:22.840 --> 0:14:26.120 It's how do you capture them right, And so I 0:14:26.160 --> 0:14:29.280 don't think that two things are all that different. It's 0:14:29.320 --> 0:14:31.800 just where we investing our money. So for example, we 0:14:31.880 --> 0:14:35.360 just built a sixty million dollar productions facility right outside 0:14:35.360 --> 0:14:37.920 of Charlotte next to our R and D facility, and 0:14:37.960 --> 0:14:39.800 it's really two components to it. 0:14:39.800 --> 0:14:41.400 It's live event production. 0:14:41.960 --> 0:14:44.280 So how are we going to put our own events 0:14:44.360 --> 0:14:48.560 on for our five media partners going forward in twenty five? 0:14:49.160 --> 0:14:53.160 And then how do we create creative content and really 0:14:53.160 --> 0:14:56.800 compelling content either be distributed through our own channels of 0:14:56.840 --> 0:15:01.200 distribution or someone else's. So we've got, you know, the 0:15:01.240 --> 0:15:03.400 three new media partners as part of it. So Fox 0:15:03.440 --> 0:15:06.600 and NBC came back, who are existing partners, but we 0:15:06.640 --> 0:15:10.800 add an Amazon, Warner Brothers, Discovery and the CW and 0:15:10.880 --> 0:15:13.080 the CW is for our second series, which is called 0:15:13.120 --> 0:15:17.680 the Xfinity Series. So five media partners, five opportunities for 0:15:17.760 --> 0:15:19.760 us to have, you know, kind of a megaphone of 0:15:20.000 --> 0:15:22.280 where things are going. It used to be alex you know, 0:15:22.400 --> 0:15:25.440 Ford cars, Chevy cars in the race. If you win 0:15:25.480 --> 0:15:28.440 on Sunday, you sell on Monday. That's how important it was. 0:15:28.760 --> 0:15:31.440 Talk to us about the economics of just the teams 0:15:31.480 --> 0:15:34.120 out there. How many teams are there? Do they make money? 0:15:34.240 --> 0:15:34.400 Sure? 0:15:34.480 --> 0:15:35.240 How does that work? 0:15:35.560 --> 0:15:38.040 So I would look at it in three kind of 0:15:38.040 --> 0:15:41.240 three buckets. Right, So we have three national series. The 0:15:41.280 --> 0:15:43.320 one that most people think about is our Cup series, 0:15:43.320 --> 0:15:48.040 which is our top series. So we're coming to a close, 0:15:48.080 --> 0:15:51.680 I think, you know, pretty quickly on something called charter extensions. 0:15:51.680 --> 0:15:54.480 So I would think of it as franchise light. OK, 0:15:54.800 --> 0:15:57.720 so it's not franchise, but it creates enterprise value for 0:15:57.760 --> 0:16:00.160 our race teams. And so we're in the in the 0:16:00.200 --> 0:16:04.640 final throws of getting those extended. Right now, race teams, 0:16:04.760 --> 0:16:10.040 if you probably are collectively losing money. So in the 0:16:10.160 --> 0:16:12.640 charter agreement that we have based on our media deals 0:16:12.640 --> 0:16:15.040 and some other things that we're doing, we're going to 0:16:15.040 --> 0:16:18.280 provide the race teams with more revenue. So two pieces 0:16:18.320 --> 0:16:21.560 of revenue guaranteed revenue and then what they race for. 0:16:22.560 --> 0:16:25.360 And so to me, starting in twenty twenty five, we 0:16:25.400 --> 0:16:29.040 should have cash flow positive race teams, which is what 0:16:29.080 --> 0:16:32.160 we want. And I've heard lots of fans say, well, 0:16:32.160 --> 0:16:35.400 I don't really care about that. My whole point is, yeah, 0:16:35.520 --> 0:16:37.720 that's exactly well, not only that, but it creates more 0:16:37.760 --> 0:16:40.280 compelling racing, right, and that's what we want, we to 0:16:40.320 --> 0:16:43.680 competitive racing. So we have of our twenty six races 0:16:43.720 --> 0:16:49.600 we've had this year, fifteen different winners, nine different organizations 0:16:49.640 --> 0:16:52.680 of the fifteen charter organizations that we have. 0:16:52.800 --> 0:16:56.160 So it's it and the racing is terrific. 0:16:56.480 --> 0:16:59.000 It's just it's the best style of racing I believe 0:16:59.040 --> 0:17:01.800 on the planet, and I think our race fans are 0:17:01.800 --> 0:17:05.680 telling us that. So again, ratings are up despite significant 0:17:05.760 --> 0:17:06.920 rain issues we've had. 0:17:06.760 --> 0:17:07.720 All year long raining. 0:17:07.800 --> 0:17:10.320 Okay, yeah, so Daytona five hundred we were down twenty 0:17:10.359 --> 0:17:13.360 seven percent because we raced on Monday, yep Coke six 0:17:13.440 --> 0:17:16.760 hundred rain event, down fifteen percent. We had a race 0:17:16.800 --> 0:17:20.320 in the streets of Chicago rain again, down fifty percent. 0:17:20.400 --> 0:17:24.960 So our three largest rated events of the year all 0:17:25.000 --> 0:17:28.520 down double digit and yet we're still positive right of ratings. 0:17:28.560 --> 0:17:29.560 So it's it's. 0:17:29.440 --> 0:17:33.440 Working just real quickly. Any new markets got about thirty 0:17:33.480 --> 0:17:35.160 seconds left our sure. 0:17:35.320 --> 0:17:36.880 Yeah, So yeah, so I think. 0:17:37.080 --> 0:17:38.520 So. We are going to race next year for the 0:17:38.520 --> 0:17:40.960 first time outside of our border in the Cup Series 0:17:41.000 --> 0:17:43.760 in Mexico City. So we have some other discussions that 0:17:43.800 --> 0:17:47.600 are going So we're again we're excited about the broadening of. 0:17:47.560 --> 0:17:50.160 Our sport our thanks to NASCAR President Steve Phelps. 0:17:50.359 --> 0:17:53.080 Moving now to college sports, we spoke with Brittany Whiteside, 0:17:53.119 --> 0:17:56.360 vice president of Collegiate Partnerships at Altis Partners. 0:17:56.640 --> 0:17:59.119 We discussed the state of college sports and first asked 0:17:59.160 --> 0:18:01.399 Brittany about how the landscape is changing. 0:18:01.880 --> 0:18:05.000 You know, it is changing rapidly. Probably in the last 0:18:05.040 --> 0:18:07.679 three years, we've seen some of the most change in 0:18:07.720 --> 0:18:10.399 college sports, but also in an industry at large. We 0:18:10.440 --> 0:18:13.320 have the implementation of nil. I'm sure you've heard of that. 0:18:13.320 --> 0:18:17.280 That's a buzzword right now. Athletes can earn money off 0:18:17.320 --> 0:18:19.879 of their name, image and likeness. And so when you 0:18:19.880 --> 0:18:22.320 talk about college athletics and change, and you think about 0:18:22.359 --> 0:18:24.879 that in the last year, in the last three years, 0:18:24.920 --> 0:18:27.200 that's the biggest change. And now we're at a point 0:18:27.280 --> 0:18:29.679 where we continue to see the change and you have 0:18:29.760 --> 0:18:32.480 the House settlement where schools may be able to now 0:18:33.520 --> 0:18:36.439