WEBVTT - Zelenskiy, Ohtani, and Hawaiian Airlines 0:00:00.120 --> 0:00:04.360 Bloomberg is now on your dashboard with Apple CarPlay and 0:00:04.360 --> 0:00:08.160 Android Auto. It gives you access to every Bloomberg podcast, 0:00:08.280 --> 0:00:11.560 live audio feeds from Bloomberg Radio, print stories from Bloomberg 0:00:11.640 --> 0:00:14.920 News in audio form, and the latest headlines of the 0:00:14.920 --> 0:00:18.640 click of a button with Bloomberg News. Now it's free 0:00:18.680 --> 0:00:21.439 with the latest version of the Bloomberg Business App. That's 0:00:21.680 --> 0:00:24.400 the Bloomberg Business App. Get it on your phone in 0:00:24.440 --> 0:00:27.760 the Apple App Store or on Google Play. Just download 0:00:27.800 --> 0:00:30.560 the app, connect your phone to your car and get started. 0:00:30.960 --> 0:00:34.400 And it's all presented by our sponsor, Interactive Brokers. 0:00:35.400 --> 0:00:38.600 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:38.640 --> 0:00:39.800 my co host Matt Miller. 0:00:40.200 --> 0:00:44.279 Every business day we bring you interviews from CEOs, market pros, 0:00:44.320 --> 0:00:48.160 and Bloomberg experts, along with essential market movin news. 0:00:48.720 --> 0:00:51.839 I'm the Bloomberg Markets podcast called Apple Podcasts or wherever 0:00:51.960 --> 0:00:55.040 you listen to podcasts, and at Bloomberg dot Com slash podcasts. 0:00:55.080 --> 0:00:57.400 All right, he's back, folks. He said he'd be back, 0:00:57.440 --> 0:01:01.360 and he's back. Brad Jacobs, Executive Chairman of XPO You 0:01:01.400 --> 0:01:03.560 know what in Lovin on the New York Sock Exchange XBO. 0:01:03.640 --> 0:01:07.039 He's got a new company, which he's been talking. I 0:01:07.080 --> 0:01:09.040 guess he kind of hinted at the last time he 0:01:09.240 --> 0:01:11.480 ses to tease. Thank you very much, Brad, Thanks so 0:01:11.560 --> 0:01:13.360 much for joining us. We really appreciate you coming back. 0:01:13.400 --> 0:01:16.640 Talk to us about the new opportunity you've seen. I mean, 0:01:16.680 --> 0:01:19.360 you've done roll ups of the waste management business, the 0:01:19.400 --> 0:01:22.000 rental business, the logistics business. 0:01:22.120 --> 0:01:25.160 Now what building products distribution? 0:01:25.360 --> 0:01:27.920 Building products distribution? Okay, so if you can. 0:01:27.800 --> 0:01:31.679 Think about any house or a commercial facility, or a 0:01:31.720 --> 0:01:35.680 hospital or a school or a church, all the stuff 0:01:35.720 --> 0:01:37.959 that goes into making that building, so that could be 0:01:38.520 --> 0:01:42.720 the roof, the flooring, the windows, the tiles, the doors, 0:01:42.840 --> 0:01:45.360 the fire hydrant, the infrastructure, the. 0:01:45.319 --> 0:01:49.000 Pipes, HVAC. All that stuff has to go through the 0:01:49.000 --> 0:01:52.320 supply chain and its huge, huge markets eight hundred billion 0:01:52.360 --> 0:01:55.440 dollars in size between here and Western Europe, and it's 0:01:55.440 --> 0:01:57.320 been growing about seven percent. 0:01:58.080 --> 0:01:59.840 All right, So what what do you bring to it 0:02:00.080 --> 0:02:00.880 that that's new. 0:02:01.400 --> 0:02:03.320 We'll bring a lot that's new. First of all, we're 0:02:03.360 --> 0:02:05.680 going to create a very large company and get all 0:02:05.680 --> 0:02:08.280 the advantages of scale and size that come with that. 0:02:08.560 --> 0:02:10.600 Second of all, we're going to apply technology We're going 0:02:10.600 --> 0:02:15.240 to apply technology, especially AI, for dynamic pricing, for managing 0:02:15.280 --> 0:02:19.320 the warehouses better, making them more automated, to do route optimization, 0:02:19.440 --> 0:02:23.160 for the delivery trucks, to do interactions with the customer. 0:02:23.200 --> 0:02:26.079 E commerce right now is mid single digits percent. It 0:02:26.120 --> 0:02:27.079 should be the majority. 0:02:27.320 --> 0:02:30.480 And in building materials, Paul, all I want is a 0:02:30.600 --> 0:02:33.240 straight tube by five. I know that's can you make 0:02:33.280 --> 0:02:36.480 that happen. It's a big deal. It's a big deal 0:02:36.520 --> 0:02:40.840 where you source your materials because even though it's commoditized, 0:02:41.480 --> 0:02:44.400 I just find as the end user, it's not always 0:02:44.480 --> 0:02:45.440 the same product. 0:02:45.720 --> 0:02:48.040 Well, I'm glad to hear that there's a problem to 0:02:48.080 --> 0:02:50.840 solve in this chain, and we will solve that. 0:02:51.360 --> 0:02:53.960 Talk to us about kind of the I guess in 0:02:54.000 --> 0:02:56.919 the past, part of your strategy has been rolling up well, 0:02:57.160 --> 0:02:59.560 rolling up a fragment in industry. Is that in fact 0:02:59.600 --> 0:03:02.320 the case here? Talk to us about kind of the 0:03:02.360 --> 0:03:05.520 fragmentation and kind of how you plan to deal with that. 0:03:06.000 --> 0:03:09.760 So there's about thirteen thousand distributors here in the United States, 0:03:09.919 --> 0:03:12.320 excuse me, seven thousand here the United States. It's about 0:03:12.320 --> 0:03:15.480 thirteen thousand in Europe. So there's twenty thousand distributors between 0:03:15.480 --> 0:03:18.440 here and Western Europe. So it's very, very very fragmented. 0:03:18.680 --> 0:03:21.639 The largest company would be Fergusing. It's about thirty billion dollars. 0:03:22.480 --> 0:03:26.280 Great company, done very good, very well. But I plan 0:03:26.360 --> 0:03:27.520 to make a company even bigger than that. 0:03:28.560 --> 0:03:30.840 Boy, how do I invest in this on? I'm not 0:03:30.880 --> 0:03:31.959 going to miss this one. 0:03:32.080 --> 0:03:34.840 Well, as Paulman, it's not your first rodeo. What is 0:03:34.880 --> 0:03:38.240 the experience that you picked up at the other companies 0:03:38.320 --> 0:03:40.520 with which you were involved and how does it apply 0:03:40.640 --> 0:03:40.960 to this. 0:03:41.720 --> 0:03:44.360 Well, it's a similar business plan in the sense that 0:03:45.000 --> 0:03:48.760 it's going to be primarily based on consolidation acquisitions, So 0:03:48.800 --> 0:03:53.600 acquiring companies at a relatively good price, a price that's 0:03:53.600 --> 0:03:56.720 a lower multiple demo we're trading app and then improving 0:03:56.760 --> 0:03:59.160 those companies. So if you look at XPO Logistics, for example, 0:03:59.440 --> 0:04:02.280 we bought eighteen companies. They were doing roughly a billion 0:04:02.320 --> 0:04:05.000 dollars in EBITDA between all of them, and after a 0:04:05.040 --> 0:04:07.280 few years they were doing over two billion dollars VIVI do. 0:04:07.440 --> 0:04:09.440 So we improved the companies that we bought. That's the 0:04:09.440 --> 0:04:10.480 same thing we're going to do here. 0:04:10.600 --> 0:04:14.640 Do you become then a friend or enemy or a 0:04:14.640 --> 0:04:18.320 frindemy of a home depot or Lows home. 0:04:18.160 --> 0:04:22.200 Depot and a lesser extent. Low's plays in a specific 0:04:22.440 --> 0:04:25.400 niche of this market, mostly the pro contractor, and they'll 0:04:25.440 --> 0:04:29.920 be one of many competitors twenty thousands of precise all. 0:04:29.880 --> 0:04:33.039 Right, So I know we're talked to you the last 0:04:33.040 --> 0:04:36.479 time management teams. Assembling a management team is one of 0:04:36.480 --> 0:04:39.960 your primary responsibilities jobs, the most important thing, most important things. 0:04:40.000 --> 0:04:41.680 Talk to us about how you're going to kind of 0:04:41.680 --> 0:04:42.240 do that here. 0:04:43.000 --> 0:04:45.760 So I wrote a book, as you know, yep, and 0:04:46.480 --> 0:04:48.839 it's called how to Make a few billion dollars. And 0:04:48.920 --> 0:04:50.760 the key thing if you read that book is the 0:04:50.839 --> 0:04:53.280 quality of the people. Make sure you have people who 0:04:53.320 --> 0:04:55.719 are really smart, really hard working, very good at what 0:04:55.760 --> 0:04:59.039 they do, collaborative, good team members, people are really sharp 0:04:59.040 --> 0:05:02.640 and focused. And if you can get that quality of 0:05:02.680 --> 0:05:06.159 world class management hired, and if you can create a 0:05:06.200 --> 0:05:11.080 culture where everyone values the relationships between each other and 0:05:11.120 --> 0:05:14.800 treats each other with respect and transparency, you can accomplish 0:05:14.839 --> 0:05:16.680 a real lot. I'm going to have that same exact 0:05:16.680 --> 0:05:19.920 principle here. That's one of the most important principles. 0:05:19.400 --> 0:05:22.160 For success in my opinion. And by the way, we 0:05:22.240 --> 0:05:25.599 named it QXO qx quality. Yep, we kept the X 0:05:25.640 --> 0:05:28.000 and O because we're going to use some of the 0:05:28.040 --> 0:05:31.240 same winning principles that made XPO and g XO and 0:05:31.360 --> 0:05:32.600 RXO successful. 0:05:32.880 --> 0:05:36.040 How far behind is the buildings supply industry in terms 0:05:36.080 --> 0:05:40.600 of adapting and using technology. 0:05:40.600 --> 0:05:43.120 As an as an industry as a whole, it's behind. 0:05:43.480 --> 0:05:45.760 Maybe it's in like the second inning. There are a 0:05:45.800 --> 0:05:48.960 handful of companies doing pretty well. So last week Builders 0:05:49.000 --> 0:05:52.159 First Source had an investor day. I read the transcript 0:05:52.200 --> 0:05:54.720 and sought on webcast. Heard it on the webcast. I 0:05:54.800 --> 0:05:56.680 like what they said about what they're doing in technology. 0:05:56.920 --> 0:05:57.960 But they're the exception. 0:05:58.000 --> 0:05:58.640 They're the anomaly. 0:05:58.800 --> 0:06:01.719 Most companies are not using technology in any big way. 0:06:01.760 --> 0:06:04.520 In the warehouses. Most of them are not using technology 0:06:04.680 --> 0:06:08.000 enough on the route optimization. Most of the building products 0:06:08.000 --> 0:06:11.440 distributors are not using technology enough for pricing decisions, for 0:06:11.520 --> 0:06:15.360 pricing optimization. And these are big, big variables that can 0:06:15.560 --> 0:06:18.480 enhance the customer experience dramatically and take out lots of 0:06:18.560 --> 0:06:19.880 unnecessary cost. 0:06:20.120 --> 0:06:22.279 Well, does this mean you pass the costs on to 0:06:22.320 --> 0:06:23.080 the end users? 0:06:23.480 --> 0:06:25.120 To the contrary, I hope we save money for the 0:06:25.480 --> 0:06:27.880 end user because we're going to take out waste, takeout 0:06:27.960 --> 0:06:31.040 inefficiency in the whole supply chain, and we'll share that. 0:06:31.040 --> 0:06:33.839 We'll share that with the customer. We'll have better margins, 0:06:33.880 --> 0:06:35.880 but we could share some of that improve margin with 0:06:35.880 --> 0:06:36.440 the customer. 0:06:36.480 --> 0:06:39.760 What kind of revenues are you predicting at this point? 0:06:40.320 --> 0:06:42.320 By the end of the first year, we should be 0:06:42.400 --> 0:06:44.600 on a revenue run rate of at least a billion dollars. 0:06:45.040 --> 0:06:46.520 At the end of the second year, we should be 0:06:46.560 --> 0:06:49.360 on a revenue run rate of at least five billion dollars. 0:06:49.760 --> 0:06:52.160 And over the next decade, we expect to get this 0:06:52.200 --> 0:06:54.600 into the tens of billions of dollars in revenue size. 0:06:55.080 --> 0:06:57.360 So where are we with QXO now, you just press 0:06:57.400 --> 0:07:01.760 release comes out today. Where do you start? Where's your 0:07:01.760 --> 0:07:04.039 capital come from? How do you go from here? How 0:07:04.040 --> 0:07:04.920 do you build this company? 0:07:05.000 --> 0:07:06.640 Well, it was on your show last week and we 0:07:06.680 --> 0:07:09.480 talked about how we're putting a billion dollars of equity 0:07:09.800 --> 0:07:13.080 into a very small cap company called silver Soun. That's right, 0:07:13.120 --> 0:07:15.480 and we're going to wait till that deal closed is 0:07:15.520 --> 0:07:17.520 in a few months, and then we're going to spin 0:07:17.600 --> 0:07:21.040 that company back to the original legacy shareholders. We're going 0:07:21.080 --> 0:07:22.800 to give them a little dividend two and a half 0:07:22.880 --> 0:07:25.280 million dollars. We're gonna give them a less than half 0:07:25.400 --> 0:07:27.680 percent share in our new company. We we'll have our 0:07:27.720 --> 0:07:30.960 new company, we'll own ninety nine percent of it, and 0:07:31.000 --> 0:07:33.160 we will use that money to go out and do 0:07:33.200 --> 0:07:35.920 some acquisitions and start building the business, and over time 0:07:35.960 --> 0:07:38.920 we'll tap the capital markets as we've done over the decades. 0:07:39.040 --> 0:07:42.480 How do you typically fund your deals equity versus debt, 0:07:42.520 --> 0:07:44.760 given now that the debt is so much more expensive 0:07:44.760 --> 0:07:47.000 than it was over the last ten to fifteen years. 0:07:46.840 --> 0:07:49.080 More equity than debt than in the past. In the past, 0:07:49.160 --> 0:07:51.480 I've been comfortable going up to two to four times 0:07:51.520 --> 0:07:54.880 of leverage. Here, I'm thinking more roughly half of that. 0:07:55.320 --> 0:07:58.640 And the reasons are two full One, as you said, 0:07:58.760 --> 0:08:01.640 interest rates are higher, although twenty years going to straight 0:08:01.680 --> 0:08:04.280 for right here, Yeah, just recently. It was in the 0:08:04.360 --> 0:08:08.280 last ten years they got almost nothing. Secondly, is the 0:08:08.320 --> 0:08:10.640 world has a lot of macro issues going on, wars 0:08:10.640 --> 0:08:13.360 and geopolitical tension, and it's more prudent to have less 0:08:13.440 --> 0:08:14.280 leverage in my opinion. 0:08:15.280 --> 0:08:17.440 What's your title going to be, what's your role in 0:08:17.480 --> 0:08:20.800 all this? And are you giving up your business, your 0:08:20.840 --> 0:08:21.560 other businesses. 0:08:22.040 --> 0:08:24.160 I'm certainly not going to give up my other businesses. 0:08:24.200 --> 0:08:27.040 I'm executive chairman of XPO and I planned to keep 0:08:27.080 --> 0:08:30.480 doing that, And I'm non executive chairman of RXO and 0:08:30.480 --> 0:08:32.679 of GXO, and I love all fear of those companies dearly, 0:08:32.800 --> 0:08:35.360 and I think I help them in the roles that 0:08:35.400 --> 0:08:37.760 I play there. In terms of what my title and 0:08:37.800 --> 0:08:39.120 position is going to be here, it's going to be 0:08:39.120 --> 0:08:40.760 the same time I've had since I've been twenty three. 0:08:40.800 --> 0:08:42.600 I'm going to be chairman and CEO, and I'm going 0:08:42.640 --> 0:08:44.480 to run the company. I'm going to leave the management team. 0:08:44.920 --> 0:08:47.840 And what makes you target this industry specifically? You've got 0:08:47.880 --> 0:08:49.240 about thirty seconds or so left. 0:08:49.800 --> 0:08:53.160 I looked at over five hundred opportunities and many many 0:08:53.200 --> 0:08:55.679 different industries, and this is the one that checked every 0:08:55.720 --> 0:08:57.960 single box of what I was looking for. Something that 0:08:58.040 --> 0:09:01.679 was large, something that was act position rich, something that 0:09:01.800 --> 0:09:04.120 was up my alley in terms of my skill set. 0:09:04.400 --> 0:09:07.320 Something with it was growth seven percent organic growth, and 0:09:07.400 --> 0:09:10.960 an industry and a customer set that is familiar to me. 0:09:11.080 --> 0:09:13.960 United Rentals is a big overlap with the construction customers. 0:09:13.960 --> 0:09:18.160 For example, fascinating Brad thanks so much for joining us again. 0:09:18.160 --> 0:09:20.400 We appreciate you coming back and bringing us up to 0:09:20.480 --> 0:09:25.040 date on your new opportunity. Brad Jacobsy's executive chairman of XPO. 0:09:26.520 --> 0:09:29.920 You're listening to the Team Ken's are Live program Bloomberg 0:09:29.960 --> 0:09:33.320 Markets weekdays at ten am Eastern on Bloomberg dot Com, 0:09:33.400 --> 0:09:36.560 the iHeartRadio app and the Bloomberg Business app, or listen 0:09:36.640 --> 0:09:38.840 on demand wherever you get your podcasts. 0:09:40.440 --> 0:09:44.080 The Business of Sports, John, it's scarlettfou and a couple 0:09:44.080 --> 0:09:47.760 other slugs. I think Michael Barr and some guy who's 0:09:47.800 --> 0:09:50.439 an emerging markets guy. How he gets a Damien c 0:09:50.720 --> 0:09:52.719 does it all? He does it all. But they talk 0:09:52.760 --> 0:09:55.080 about the business of sports. I've got a lot of 0:09:55.080 --> 0:09:58.559 business of sports questions. I'm a golfer. I'm a fan 0:09:58.760 --> 0:10:01.400 of the game of golf, fan of the business of 0:10:01.520 --> 0:10:04.880 the golf. I don't understand what's going on with this 0:10:05.000 --> 0:10:07.440 live golf thing. I thought the PGA and the Live 0:10:07.480 --> 0:10:10.840 we're merging. Everybody's gonna be happy altogether. And then John 0:10:10.920 --> 0:10:13.280 Rahm says he's going to go and take three hundred 0:10:13.360 --> 0:10:17.640 large from live golf. Can you, Scarlet Fiel, you cover 0:10:17.720 --> 0:10:19.520 all this for us? Can you tell us what's happening here. 0:10:19.600 --> 0:10:22.199 Well, he's a reigning Master's champ, the number three player 0:10:22.200 --> 0:10:25.200 in the world, so he ads this legitimacy to going 0:10:25.280 --> 0:10:27.400 over to Live and he's the biggest signing by far 0:10:27.520 --> 0:10:30.839 yet And you're right. Live Golf and PGA Tour are 0:10:30.960 --> 0:10:33.680 working towards a deal, but nothing's happened yet. They have 0:10:33.679 --> 0:10:35.839 to give an update by December thirty first, and it's 0:10:35.920 --> 0:10:39.200 not clear what shape this deal will take, although we 0:10:39.280 --> 0:10:41.760 do know that PGA has been talking with other investors, 0:10:42.120 --> 0:10:45.640 including a report this morning from Jillian Tan that a 0:10:45.720 --> 0:10:48.280 Fenway Sports Group led consortium has been chosen to enter 0:10:48.320 --> 0:10:50.600 into final talks to be a co investor, a US 0:10:50.679 --> 0:10:53.920 co investor in this Live Golf PGA Tour entity. 0:10:54.240 --> 0:10:57.880 Every one of these sports stories as of late, the 0:10:57.920 --> 0:11:03.080 common denominator is money, and with it this specific case 0:11:03.280 --> 0:11:06.720 golfers signing with Live. Something in me tells me that 0:11:06.840 --> 0:11:09.880 this is some sort of Faustian bargain that these golfers 0:11:09.880 --> 0:11:13.199 are made. Am I being too cynical or fausia not realistic? 0:11:13.320 --> 0:11:16.280 If the PGA Tour is in active negotiations with Live 0:11:16.320 --> 0:11:20.120 Golf to merge whatever obstacles they threw up there, and 0:11:20.160 --> 0:11:24.679 whatever concerns they cited has kind of gone by the wayside. 0:11:24.720 --> 0:11:29.280 They opened the door to golfers negotiating with Live Golf directly. 0:11:29.559 --> 0:11:31.439 We know that John Rahm had said in the past 0:11:31.559 --> 0:11:34.360 that he was not interested in the money. He said 0:11:34.400 --> 0:11:37.400 he and his wife were not concerned about the money, 0:11:38.000 --> 0:11:40.400 you know, that Live could offer them. He's always been 0:11:40.480 --> 0:11:43.640 very interested in history and legacy, and he said back 0:11:43.679 --> 0:11:46.520 in twenty twenty two. Right now, the PGA Tour has that. Now, 0:11:46.679 --> 0:11:49.000 once it became apparent that the PGA Tour was negotiating 0:11:49.080 --> 0:11:51.880 with Live Golf, maybe it doesn't have that history and 0:11:51.920 --> 0:11:54.520 legacy anymore because it's open season it is. 0:11:54.600 --> 0:11:57.760 I mean, if the PGA is going to merge with Live, 0:11:57.840 --> 0:11:59.920 they're going to take a direct investment from the set 0:12:00.280 --> 0:12:04.720 Investment Fund. So you've already lost that The fundamental argument 0:12:04.720 --> 0:12:07.600 that the PGA had against Live is now, by the way, say, 0:12:07.640 --> 0:12:10.160 because you're in fact taking that money. So now if 0:12:10.160 --> 0:12:12.760 I'm John Rahm, I'm like, why do I wait? 0:12:13.400 --> 0:12:15.720 Where the regulators and all this? What's there? 0:12:15.760 --> 0:12:19.199 The DOJ is looking into this, and you know, again 0:12:19.200 --> 0:12:21.920 they have that December thirty first deadline with which to 0:12:22.000 --> 0:12:25.720 update the government. We do know that Jaymonahan and the 0:12:25.720 --> 0:12:28.920 PIF governor, yasir Al Ramayan Our scheduled to meet this 0:12:28.960 --> 0:12:32.679 week for negotiations, so maybe there'll be some reporting out 0:12:32.720 --> 0:12:32.959 of that. 0:12:33.080 --> 0:12:36.000 Here's the independent of each other. Can they possibly Could 0:12:36.000 --> 0:12:41.520 the PGA possibly survive on its own against an entity 0:12:41.679 --> 0:12:42.000 like Live? 0:12:42.080 --> 0:12:42.400 I don't know. 0:12:42.400 --> 0:12:45.040 They don't have bottomless pockets like Live. Live is backed 0:12:45.040 --> 0:12:45.960 by the Saudi government. 0:12:46.000 --> 0:12:47.480 But I'll tell you what the PGA has that Live 0:12:47.520 --> 0:12:50.120 doesn't have, which is a network television contract. I mean, 0:12:50.160 --> 0:12:51.400 if you want to watch Live, you got to go 0:12:51.400 --> 0:12:53.199 find it on the CW with's your a bunch of 0:12:53.240 --> 0:12:57.200 hotstruct stations around. They have no and so it is. 0:12:57.280 --> 0:12:59.600 I mean, I'm an avid golf fan. I will watch 0:12:59.679 --> 0:13:04.000 the round of some tournament in Poughkeepsie if it's the 0:13:04.040 --> 0:13:07.680 PGA Tour. I didn't haven't seen one shot of You could, 0:13:07.800 --> 0:13:10.400 but you just don't want to. It's a combination. I 0:13:10.400 --> 0:13:13.320 don't really care to. The PJS takes care of it 0:13:13.360 --> 0:13:15.880 for me, and you know, I don't know so, but 0:13:16.400 --> 0:13:19.440 there's enough people that are following Live. I think that 0:13:19.480 --> 0:13:21.800 it's a thing and it doesn't matter what the TV 0:13:21.880 --> 0:13:24.040 contract is as long as you have I guess that's 0:13:24.080 --> 0:13:25.040 Saudi money behind you. 0:13:25.240 --> 0:13:25.480 Yeah. 0:13:25.520 --> 0:13:27.640 Well, I mean they can always disrupt that at some point, 0:13:27.679 --> 0:13:30.800 and technology is moving the direction of people are not 0:13:30.920 --> 0:13:33.200 necessarily going to be signing up for the cable bundles 0:13:33.240 --> 0:13:35.880 and signing up for CW streaming will become more and 0:13:35.880 --> 0:13:36.960 more attractive over time. 0:13:37.120 --> 0:13:40.680 Yep. All right, So what next for the Saudi government 0:13:40.840 --> 0:13:41.720 in its investments? 0:13:42.000 --> 0:13:44.200 Maybe the Saudi government should look into Shoho Tani. 0:13:44.400 --> 0:13:48.839 Yes, so now again, money money, It's all about a 0:13:48.880 --> 0:13:51.479 lot of money in this case, seven hundred million dollars. 0:13:51.200 --> 0:13:54.160 Over ten years. This is the largest contract of any 0:13:54.800 --> 0:13:58.000 in any US professional sports league. It tops Aaron Judge 0:13:58.960 --> 0:14:01.600 his contract as a free agent nine year, three hundred 0:14:01.600 --> 0:14:04.520 and sixty million, Mike Trout who got an extension twelve year, 0:14:04.600 --> 0:14:06.680 or four hundred twenty six and a half million, even 0:14:06.720 --> 0:14:09.840 Patrick Mahomes ten year, four hundred and fifty million, Lionel 0:14:09.880 --> 0:14:13.800 Messi when he resigned with Barcelona. So this is a 0:14:13.840 --> 0:14:17.400 you know, ball Well no, I didn't want to use 0:14:17.440 --> 0:14:19.760 that word. Well, I mean, it's a racket busting contract 0:14:20.000 --> 0:14:20.360 about that. 0:14:20.400 --> 0:14:22.840 It's amazing. I mean, I mean, did they what's the 0:14:22.880 --> 0:14:25.800 money behind the Dodgers, and I think about the Yankees. 0:14:25.840 --> 0:14:27.920 I think about the YES Network, and they make a 0:14:27.960 --> 0:14:28.720 ton of a. 0:14:28.720 --> 0:14:33.000 Very lucrative sports TV CONTRACTIA contract. But I mean, this 0:14:33.080 --> 0:14:35.680 is also the second biggest media market in the nation, 0:14:35.880 --> 0:14:38.720 right after New York. And on top of that, unlike 0:14:38.760 --> 0:14:41.680 the Yankees, they've done very very well on the field. 0:14:42.160 --> 0:14:45.360 They won the World Series in twenty twenty. They haven't 0:14:45.360 --> 0:14:46.880 missed a season since twenty two. 0:14:46.920 --> 0:14:48.960 Well, that's amazing. That's kind of like the Yankees of 0:14:49.000 --> 0:14:50.680 the nineties in their early two thousand day. 0:14:51.040 --> 0:14:52.800 Is he worth it is? 0:14:52.920 --> 0:14:53.760 Yeah, he's worth it. 0:14:53.960 --> 0:14:57.320 Okay, give me some stats, so the comparation's with me. 0:14:57.360 --> 0:14:57.840 But how about this. 0:14:57.920 --> 0:15:02.960 He won the MVP twice. He is an incredible hitter 0:15:03.040 --> 0:15:05.360 and he's an incredible pitcher. If he just became one 0:15:05.440 --> 0:15:07.640 a hitter or one a pitcher, he would be an 0:15:07.640 --> 0:15:09.520 All Star in either, except that he could make. 0:15:09.960 --> 0:15:12.800 People are saying, I mean he is as good or 0:15:12.920 --> 0:15:16.360 better than Babe Ruth. That's how far those are. 0:15:16.360 --> 0:15:19.040 Those are the comparisons. And this summer when he was 0:15:19.200 --> 0:15:22.920 playing around the league, everywhere he went there were fans 0:15:22.960 --> 0:15:25.440 showing up and it was like showtime. You know, and 0:15:25.440 --> 0:15:27.800 they're just like tons of fans everywhere, and it was 0:15:27.840 --> 0:15:29.880 it was basically a tour to see, like how can 0:15:29.920 --> 0:15:33.520 we uh appeal to him and show him that like 0:15:33.720 --> 0:15:35.480 he should come play for the Mets, or he should 0:15:35.480 --> 0:15:38.400 come play for Detroit or whatever city you want to mention? 0:15:38.680 --> 0:15:43.760 Is there any chance he'll start dating Taylor Swift exactly? 0:15:45.880 --> 0:15:49.160 Kelsey is not giving up on his situation at all. 0:15:49.360 --> 0:15:51.800 Ok, All right, what else he has for the business 0:15:51.960 --> 0:15:55.080 of sports? Coming out for the businesses? Now you have, 0:15:55.240 --> 0:15:59.400 I mean our listeners and our viewers on YouTube. Scarlet's 0:15:59.400 --> 0:16:02.200 watching wearing a New York Rangers jacket. So is that 0:16:02.280 --> 0:16:03.400 the team number one for you? 0:16:03.480 --> 0:16:04.160 Team number one? 0:16:04.480 --> 0:16:06.360 You got to Cornell? So does that mean you're you're 0:16:06.400 --> 0:16:07.960 just a die hard hockey fan. 0:16:08.280 --> 0:16:10.520 I've always been a hockey fan, Okay. And when I 0:16:10.560 --> 0:16:12.280 went to school, I actually didn't go to any of 0:16:12.280 --> 0:16:14.600 the games because, yeah, because it was really hard to 0:16:14.600 --> 0:16:15.120 get a ticket. 0:16:15.160 --> 0:16:17.800 You had to hard to get a hockey ticket. 0:16:17.960 --> 0:16:22.720 Yeah, you had to sleep outside and to get the ticket. Yeah, 0:16:22.840 --> 0:16:25.000 I mean back in the day, this is what it entailed. 0:16:25.360 --> 0:16:28.040 And I didn't do that. Yeah. Wow. 0:16:28.280 --> 0:16:31.040 But then they started playing all the hockey games or 0:16:31.440 --> 0:16:34.480 the big game Red Hot Hockey in Madison Square Garden 0:16:34.880 --> 0:16:37.840 on Thanksgiving weekend and it became a bigger thing. Okay, 0:16:37.960 --> 0:16:39.480 so that's been going on for a couple of years, 0:16:39.520 --> 0:16:40.840 and I know I came on to talk about that. 0:16:40.840 --> 0:16:41.520 That's really fun. 0:16:41.640 --> 0:16:43.120 That's a fun all right. So you're a Ranger fan. 0:16:43.600 --> 0:16:45.040 Unbelievable years so far. 0:16:44.960 --> 0:16:48.000 For this so far, but seasons early, I mean seasons young, 0:16:48.040 --> 0:16:49.400 and anything could happen. 0:16:49.920 --> 0:16:50.600 Who's your team? 0:16:50.920 --> 0:16:53.600 Well, I don't know. I mean the Rangers, I mean 0:16:53.720 --> 0:16:55.360 I mean Yankees, guy, Giants. 0:16:55.600 --> 0:16:58.000 You're from New Jersey. You've had a root for your Devils. 0:16:58.160 --> 0:16:59.480 Yeah, you know, I've been to. I took the kids 0:16:59.480 --> 0:17:01.800 to a lot of game. It's actually a great thing 0:17:02.040 --> 0:17:03.680 to take kids with. Point's expensive. 0:17:03.800 --> 0:17:07.080 Yeah, the Devils are very exciting though. Yes, young players, 0:17:07.080 --> 0:17:09.120 they're really they're doing a lot. 0:17:09.280 --> 0:17:13.360 Yeah, but I mean Madison Square Garden going to the 0:17:13.400 --> 0:17:17.640 protection Duke Blue Devil's next Wednesday at the Garden against Baylor. Oh, 0:17:18.000 --> 0:17:19.040 next time, and that'll be fine. 0:17:19.119 --> 0:17:24.160 Longtime listener called Wright sin Googenheim money behind the LA Dodgers. 0:17:24.840 --> 0:17:26.680 There you go, that's right, that's from mister. 0:17:26.480 --> 0:17:29.280 Cinch Ye thank you. Yep, that's I remember that deal 0:17:29.320 --> 0:17:31.440 getting done. All right, Scarlet Food, thank you so much. 0:17:31.560 --> 0:17:34.480 We appreciate Scarlet Fush. She's a host of Bloomberg Television 0:17:34.480 --> 0:17:39.400 and Bloomberg Radio's Business of Sports. Michael Barr Damien Sassaur 0:17:40.119 --> 0:17:42.680 take a backseat to Scarletfoodle's let let's let let's let's 0:17:42.680 --> 0:17:43.040 be honest. 0:17:43.080 --> 0:17:44.000 You're like the other way around. 0:17:44.400 --> 0:17:47.520 You're listening to the tape. Can's are live program Bloomberg 0:17:47.600 --> 0:17:51.480 Markets weekdays at ten am Eastern on Bloomberg Radio, tune 0:17:51.520 --> 0:17:54.440 in app, Bloomberg dot Com, and the Bloomberg Business App. 0:17:54.520 --> 0:17:57.320 You can also listen live on Amazon Alexa from our 0:17:57.359 --> 0:18:01.359 flagship New York station just say Alexa playing Bloomberg eleven. 0:18:03.320 --> 0:18:05.960 All right, let's switch gears, go a little bit political. 0:18:06.040 --> 0:18:10.159 Get President Zelensky coming to the States, coming to d C. 0:18:10.440 --> 0:18:14.159 Meeting with lawmakers to try to unlock some of that 0:18:14.480 --> 0:18:17.439 aid for Ukraine. Let's bring in Wendy Schuler. She's a 0:18:17.440 --> 0:18:22.080 professor at Brown University. Wendy, I mean give us a 0:18:22.119 --> 0:18:25.600 sense of in Washington, d C. Where Ukraine fits in 0:18:25.640 --> 0:18:28.159 with all the other news, whether it's from the Middle 0:18:28.200 --> 0:18:32.080 East or just the coming election, it seems like the 0:18:32.280 --> 0:18:35.240 Ukraine and the support of Ukraine has kind of lost 0:18:35.240 --> 0:18:36.800 a little bit of the limelight here Where are we? 0:18:37.760 --> 0:18:38.320 Yeah, man, I. 0:18:38.320 --> 0:18:41.600 Think the momentum, I wouldn't say collapsed, but I think 0:18:41.600 --> 0:18:45.439 the momentum has slowed considerably. And rather than have a 0:18:45.560 --> 0:18:49.200 sort of a singular conflict that we've been very involved 0:18:49.240 --> 0:18:53.600 in and very supporter of Ukraine against Russia, now another 0:18:53.760 --> 0:18:56.640