1 00:00:02,759 --> 00:00:10,160 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is the business 2 00:00:10,200 --> 00:00:10,800 Speaker 1: of Sports. 3 00:00:10,840 --> 00:00:13,720 Speaker 2: The business of sports can be intimidating or hard for 4 00:00:13,720 --> 00:00:14,720 Speaker 2: a starting to break into. 5 00:00:14,840 --> 00:00:17,840 Speaker 3: We really appreciate when our owners are actually there, you know, 6 00:00:17,920 --> 00:00:19,000 Speaker 3: with us through the journey. 7 00:00:19,040 --> 00:00:22,560 Speaker 4: Teams ours especially have been very intentional to diversify at 8 00:00:22,600 --> 00:00:23,560 Speaker 4: all levels of the company. 9 00:00:23,640 --> 00:00:26,040 Speaker 5: I think we're in bolden years for the NFL and 10 00:00:26,200 --> 00:00:26,880 Speaker 5: college football. 11 00:00:26,920 --> 00:00:29,960 Speaker 6: Our demographic reach has continued to explode. 12 00:00:30,080 --> 00:00:33,720 Speaker 7: This is going to be really unlocking the streaming platform 13 00:00:33,800 --> 00:00:34,720 Speaker 7: for sports fans. 14 00:00:34,840 --> 00:00:37,280 Speaker 3: Sports evaluations arising. We'll see when they peak. 15 00:00:37,360 --> 00:00:40,000 Speaker 2: You don't have to be the best in your sports 16 00:00:40,000 --> 00:00:42,920 Speaker 2: to make a whole ton of money. 17 00:00:43,040 --> 00:00:46,640 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 18 00:00:48,240 --> 00:00:51,200 Speaker 2: This is the Bloomberg Business of Sports. A week before 19 00:00:51,200 --> 00:00:53,640 Speaker 2: the big money issues the world sports. I'm Michael Lawn 20 00:00:53,640 --> 00:00:57,320 Speaker 2: along with McCall leagues, Damian Sasauer, and Vanessa Berdomo. Scarlet 21 00:00:57,360 --> 00:00:59,640 Speaker 2: Woo would join us later in the show. Coming up, 22 00:00:59,640 --> 00:01:03,720 Speaker 2: we talk college basketball. March Madness is here and we'll 23 00:01:03,760 --> 00:01:07,800 Speaker 2: talk with bettmgm CEO Adam Greenblatt about some of the 24 00:01:07,840 --> 00:01:10,319 Speaker 2: biggest betting trends for the tournament this year. 25 00:01:10,480 --> 00:01:14,800 Speaker 8: We've seen a thirty percent year on your increase in 26 00:01:14,880 --> 00:01:18,800 Speaker 8: betts on women's college basketball, and this is going to 27 00:01:18,800 --> 00:01:22,320 Speaker 8: blow your mind. Over the past two years, we've experienced 28 00:01:22,319 --> 00:01:25,640 Speaker 8: more than seven hundred and fifty percent increase in bets 29 00:01:25,720 --> 00:01:27,720 Speaker 8: on the on the women's college game. 30 00:01:28,360 --> 00:01:31,080 Speaker 2: We'll also talk the latest in a legal battle between 31 00:01:31,120 --> 00:01:34,720 Speaker 2: the NCAA and former players. A crucial court date is 32 00:01:34,760 --> 00:01:38,160 Speaker 2: set for early April, and that could pay out nearly 33 00:01:38,240 --> 00:01:42,240 Speaker 2: three billion dollars in damages to former athletes and build 34 00:01:42,319 --> 00:01:47,000 Speaker 2: out plans for future compensation for college players. All of 35 00:01:47,040 --> 00:01:50,360 Speaker 2: that and more is straight ahead on the Bloomberg Business 36 00:01:50,440 --> 00:01:54,040 Speaker 2: and Sports. But first the Boston Celtics. They have ANUE owner. 37 00:01:54,360 --> 00:01:58,560 Speaker 2: A group of buyers including STG Partners co founder Bill Chisholm, 38 00:01:58,880 --> 00:02:02,040 Speaker 2: reached a deal so late this week to buy the 39 00:02:02,200 --> 00:02:06,040 Speaker 2: NBA's Boston Celtics, and a deal totaling just over six 40 00:02:06,440 --> 00:02:09,360 Speaker 2: billion dollars. Here now to take us through what we 41 00:02:09,440 --> 00:02:12,320 Speaker 2: know about the deal and what could be next, is 42 00:02:12,360 --> 00:02:17,560 Speaker 2: Bloomberg News Sports business reporter Randa Williams Randall. Welcome to 43 00:02:17,639 --> 00:02:19,320 Speaker 2: the Bloomberg Business of Sports. 44 00:02:19,520 --> 00:02:20,440 Speaker 3: Thank you for having me. 45 00:02:20,760 --> 00:02:26,400 Speaker 2: Gee, something happened with the Boston Celtics. Looks like they're sold. 46 00:02:26,480 --> 00:02:30,200 Speaker 3: Six point one billion dollars to build Chisholm. 47 00:02:30,280 --> 00:02:32,680 Speaker 9: Now that's more than Josh Howard's paid for the Commanders, right. 48 00:02:32,760 --> 00:02:35,280 Speaker 3: Yeah, it is a little bit the most, yes, the 49 00:02:35,280 --> 00:02:36,960 Speaker 3: most expensive sports deal ever. 50 00:02:37,040 --> 00:02:38,000 Speaker 4: Wow, which people. 51 00:02:37,840 --> 00:02:40,560 Speaker 3: Were wondering if this would happen, if they would surpass 52 00:02:40,680 --> 00:02:43,040 Speaker 3: that six billion dollar mark. They barely got over it. 53 00:02:43,480 --> 00:02:44,320 Speaker 10: Wow, that's awesome. 54 00:02:44,400 --> 00:02:47,799 Speaker 9: I mean so six point one billion, yeah, I mean 55 00:02:47,960 --> 00:02:51,000 Speaker 9: Wick Rosspick's got to be uh doing cartwheels in his 56 00:02:51,040 --> 00:02:52,720 Speaker 9: living room right about now, would you say. 57 00:02:52,600 --> 00:02:53,160 Speaker 2: Yeah, I think so. 58 00:02:53,280 --> 00:02:55,440 Speaker 3: I mean, the Celtics don't own their stadium, and that 59 00:02:55,560 --> 00:02:57,960 Speaker 3: was a big caveat to this deal because you know, 60 00:02:58,000 --> 00:03:00,880 Speaker 3: this is setting the table for NBA expansion and if 61 00:03:00,919 --> 00:03:04,760 Speaker 3: you're an expansion bidder and you're watching this, want you 62 00:03:04,800 --> 00:03:07,000 Speaker 3: don't want to pay more than the Celtics. Obviously, because 63 00:03:07,000 --> 00:03:09,440 Speaker 3: the Celtics are one of the oldest franchises, they don't 64 00:03:09,480 --> 00:03:11,200 Speaker 3: own their stadium, and so when you're looking at this, 65 00:03:11,280 --> 00:03:13,320 Speaker 3: it's like, Okay, let's set the mark and let's see 66 00:03:13,320 --> 00:03:15,480 Speaker 3: what we don't want to pay. And this doesn't include 67 00:03:15,480 --> 00:03:17,800 Speaker 3: a stadium. So six billion dollars without a stadium is 68 00:03:17,840 --> 00:03:20,280 Speaker 3: a lot of money. You think about Vegas, Vegas is 69 00:03:20,280 --> 00:03:22,480 Speaker 3: a big market. You think about Seattle. Seattle already has 70 00:03:22,520 --> 00:03:26,000 Speaker 3: their stadium built, so I don't think Seattle will surpass this, 71 00:03:26,160 --> 00:03:28,840 Speaker 3: But who knows what the price could go up to. 72 00:03:28,880 --> 00:03:31,240 Speaker 3: I think Vegas very well could depending on who's buying, but. 73 00:03:31,200 --> 00:03:33,880 Speaker 11: They would get it as an expansion fee. As that 74 00:03:33,880 --> 00:03:34,600 Speaker 11: that high of an. 75 00:03:34,480 --> 00:03:37,760 Speaker 3: Expansion fee, I don't think so. The expansion fee bankers 76 00:03:37,760 --> 00:03:40,320 Speaker 3: and people around have told me that they expected to 77 00:03:40,400 --> 00:03:43,720 Speaker 3: be between four and five billion. Now if without a stadium, 78 00:03:43,800 --> 00:03:45,800 Speaker 3: four and five billion so just to fee straight up 79 00:03:45,840 --> 00:03:48,320 Speaker 3: paid out to the NBA owners. But with a stadium, 80 00:03:48,320 --> 00:03:49,800 Speaker 3: if you don't have a stadium, then you have to 81 00:03:49,840 --> 00:03:52,440 Speaker 3: build one that could be anywhere from one and a 82 00:03:52,480 --> 00:03:54,760 Speaker 3: half billion to two and a half billion dollars more. 83 00:03:54,800 --> 00:03:57,360 Speaker 3: You add that on top of the four to five billion, 84 00:03:57,440 --> 00:04:00,280 Speaker 3: and that's anywhere from you know, five and a half 85 00:04:00,320 --> 00:04:03,760 Speaker 3: to seven and a half. I don't think that you know, 86 00:04:03,800 --> 00:04:06,200 Speaker 3: an NBA expansion team is going to sell for seven 87 00:04:06,200 --> 00:04:08,800 Speaker 3: and a half billion. But there are some pretty prideful 88 00:04:08,840 --> 00:04:12,080 Speaker 3: people out there, pretty prideful billionaires out there who want 89 00:04:12,080 --> 00:04:15,360 Speaker 3: into this NBA business and who knows what's going to happen. 90 00:04:15,520 --> 00:04:17,880 Speaker 11: Now, what we saw with this was that he was 91 00:04:17,960 --> 00:04:21,400 Speaker 11: just more willing to spend the money than anyone else. 92 00:04:21,480 --> 00:04:23,240 Speaker 11: Or why why did they get chosen. 93 00:04:24,040 --> 00:04:24,880 Speaker 2: Still be determined. 94 00:04:24,920 --> 00:04:27,120 Speaker 3: I mean, I think Bill had a good group, and 95 00:04:27,160 --> 00:04:28,880 Speaker 3: when you have a private equity firm that comes with 96 00:04:28,920 --> 00:04:31,680 Speaker 3: a billion dollars, that helps out tremendously. I don't know 97 00:04:31,720 --> 00:04:34,279 Speaker 3: the specific details of what the other bidders had, but 98 00:04:34,920 --> 00:04:37,719 Speaker 3: they had the best deal. And the Boston Basketball Partners 99 00:04:37,760 --> 00:04:40,080 Speaker 3: will be moving out at the end of twenty twenty eight, so. 100 00:04:40,120 --> 00:04:42,560 Speaker 9: Let's falo back here. I mean, what GROSSPEC bought the 101 00:04:42,560 --> 00:04:43,960 Speaker 9: team in two thousand and two for three hundred and 102 00:04:43,960 --> 00:04:46,720 Speaker 9: sixty million, six point six point one billion. I mean, 103 00:04:46,760 --> 00:04:51,120 Speaker 9: Michael Barr has seventeen X in twenty three years. And 104 00:04:51,760 --> 00:04:53,680 Speaker 9: right now you caught me because I'm looking up in 105 00:04:53,760 --> 00:04:57,000 Speaker 9: video stock right and I'm trying to figure out when 106 00:04:57,040 --> 00:04:59,400 Speaker 9: you had to buy Nvidia to get a seventeen times 107 00:05:00,360 --> 00:05:02,440 Speaker 9: how many assets out there? And by the way, we're 108 00:05:02,440 --> 00:05:04,240 Speaker 9: not talking about a doll I mean you have to 109 00:05:04,279 --> 00:05:06,880 Speaker 9: invest three hundred and sixty to get seventeen X on 110 00:05:06,960 --> 00:05:08,800 Speaker 9: that number is just frighteningly. 111 00:05:09,000 --> 00:05:11,360 Speaker 3: And you have to think about like Steve Pagliuca who's 112 00:05:11,400 --> 00:05:13,479 Speaker 3: also an owner. He ran twenty percent stake and he 113 00:05:13,520 --> 00:05:16,600 Speaker 3: was bidding for this as well, So like he's technically 114 00:05:16,600 --> 00:05:19,000 Speaker 3: not a loser when you think about him owning twenty 115 00:05:19,000 --> 00:05:21,920 Speaker 3: percent and his team being sold like the other groups 116 00:05:21,920 --> 00:05:23,720 Speaker 3: out there, I think, are you know, you could argue 117 00:05:23,720 --> 00:05:26,520 Speaker 3: our bigger losers. But for Steve, who is a big 118 00:05:26,880 --> 00:05:30,640 Speaker 3: Celtics fan, you know, it's not the worst thing in 119 00:05:30,640 --> 00:05:32,080 Speaker 3: the world. You already own a piece of the team. 120 00:05:32,120 --> 00:05:34,200 Speaker 3: You're being paid out even more than you know what 121 00:05:34,279 --> 00:05:36,560 Speaker 3: he got in the first place. So there's no losers 122 00:05:36,560 --> 00:05:38,359 Speaker 3: in this deal except for the people who aren't owning 123 00:05:38,400 --> 00:05:38,720 Speaker 3: the team. 124 00:05:38,880 --> 00:05:41,240 Speaker 2: Well now, in the Groupspec family, they wanted it. And 125 00:05:41,600 --> 00:05:43,400 Speaker 2: I want to go back to what you were saying earlier, 126 00:05:43,400 --> 00:05:46,680 Speaker 2: in two phases exactly, and so can you explain that. 127 00:05:47,000 --> 00:05:48,600 Speaker 3: So they said that they were going to sell this 128 00:05:48,680 --> 00:05:52,480 Speaker 3: in two phases fifty forty nine percent. With this first 129 00:05:52,839 --> 00:05:57,080 Speaker 3: piece being sold. Now Bill chisum he's going to purchase 130 00:05:57,120 --> 00:05:59,359 Speaker 3: the rest of the team at a later date. So 131 00:05:59,400 --> 00:06:01,679 Speaker 3: he is going to be the outright owner of this team. 132 00:06:01,720 --> 00:06:02,880 Speaker 3: He and his ownership group. 133 00:06:03,160 --> 00:06:05,239 Speaker 9: So so I'm looking at the chart here on video stock. 134 00:06:05,279 --> 00:06:07,359 Speaker 9: You know, if you butt in video at the depths 135 00:06:07,360 --> 00:06:11,200 Speaker 9: of the coronavirus, the COVID crisis, right, I'm talking March twenty, 136 00:06:11,520 --> 00:06:13,599 Speaker 9: March twenty twenty, you could have got it at seven 137 00:06:13,600 --> 00:06:15,960 Speaker 9: dollars a share. It's trading at one twenty. So okay, 138 00:06:16,120 --> 00:06:18,840 Speaker 9: you know it's been done before. I'm just you let 139 00:06:18,839 --> 00:06:20,320 Speaker 9: everybody know here. I mean, we could have butt in 140 00:06:20,400 --> 00:06:22,200 Speaker 9: video and twenty twenty would be you know, wouldn't be 141 00:06:22,200 --> 00:06:23,480 Speaker 9: here right now, Michael Barr, You and I'd be on 142 00:06:23,480 --> 00:06:23,800 Speaker 9: a beach. 143 00:06:23,839 --> 00:06:25,920 Speaker 2: How can I? I can't do that? Why why can't 144 00:06:25,920 --> 00:06:28,240 Speaker 2: I do that? Why? Randall? Why can't that? You can? 145 00:06:28,480 --> 00:06:29,640 Speaker 2: So why can't I do this? 146 00:06:29,680 --> 00:06:31,599 Speaker 3: Well, I mean technically you can. You just have to 147 00:06:31,680 --> 00:06:34,120 Speaker 3: choose a smaller league. So, whether you want to get 148 00:06:34,160 --> 00:06:37,800 Speaker 3: into the NWSL, the WNBA, there are other sports investments 149 00:06:37,839 --> 00:06:40,640 Speaker 3: out there for us everyday people. It's just about being 150 00:06:40,680 --> 00:06:45,120 Speaker 3: able to raise the Can you, Michael Barr, raise two 151 00:06:45,200 --> 00:06:47,480 Speaker 3: hundred fifty million. It's not six and a half billion, 152 00:06:47,520 --> 00:06:49,560 Speaker 3: you know, it's a smaller number, but that might get 153 00:06:49,560 --> 00:06:52,200 Speaker 3: you a WNBA team, It might get you an NWSL team, 154 00:06:52,360 --> 00:06:54,240 Speaker 3: But two hundred fifty million isn't even going to get 155 00:06:54,279 --> 00:06:55,920 Speaker 3: you two percent of an NFL team. 156 00:06:56,160 --> 00:06:59,640 Speaker 2: Oh yeah, that's a boy. That's it. It shows you 157 00:06:59,720 --> 00:07:02,800 Speaker 2: now need private equity to do these exactly. 158 00:07:03,240 --> 00:07:04,680 Speaker 3: You're going to see more of that in the future. 159 00:07:06,120 --> 00:07:10,960 Speaker 2: Can the Celtics as a team, And I agree with 160 00:07:11,000 --> 00:07:14,640 Speaker 2: what you're saying earlier six point one, that's only going 161 00:07:14,720 --> 00:07:18,080 Speaker 2: to be out there for so long because somebody's going 162 00:07:18,120 --> 00:07:21,560 Speaker 2: to come along, maybe because this is any team now, 163 00:07:21,720 --> 00:07:25,400 Speaker 2: any pro team, and one day come along and they say, hey, 164 00:07:25,480 --> 00:07:28,000 Speaker 2: Jerry Jones, listen, are you're. 165 00:07:27,840 --> 00:07:29,320 Speaker 3: Talking to Jerry Jones? I don't know about that, but 166 00:07:29,400 --> 00:07:29,760 Speaker 3: keep going. 167 00:07:30,880 --> 00:07:33,960 Speaker 2: Yeah, if the price is right, why not? 168 00:07:34,880 --> 00:07:36,680 Speaker 3: I think it does. There will be a team that 169 00:07:36,720 --> 00:07:39,400 Speaker 3: eventually surpasses us. Now, the team to do it will 170 00:07:39,440 --> 00:07:44,200 Speaker 3: have to be a iconic franchise. They're in a big market. 171 00:07:44,320 --> 00:07:46,240 Speaker 9: I mean, let's right. I mean it's only paid what 172 00:07:46,360 --> 00:07:48,320 Speaker 9: for the suns? I mean that's not a game. Yeah, 173 00:07:48,360 --> 00:07:49,880 Speaker 9: you can't compare that exactly. 174 00:07:49,920 --> 00:07:52,720 Speaker 3: Now, if I had to guess, it's easy to say 175 00:07:53,040 --> 00:07:54,840 Speaker 3: for the MLB to surpass this, it would have to 176 00:07:54,880 --> 00:07:57,280 Speaker 3: be another one of their iconic franchises. For the NFL, 177 00:07:57,360 --> 00:07:58,240 Speaker 3: I think it's the next one. 178 00:07:58,560 --> 00:08:01,280 Speaker 9: Yeah, right, In the NFL. 179 00:08:01,280 --> 00:08:03,240 Speaker 11: It has to be just the next one and it'll 180 00:08:03,320 --> 00:08:06,440 Speaker 11: keep growing on. So right, because like in this idea 181 00:08:06,440 --> 00:08:09,600 Speaker 11: of the NFL revenue, no one can come close to it. 182 00:08:09,640 --> 00:08:12,640 Speaker 11: That's why this was almost surprising or was it just 183 00:08:12,680 --> 00:08:13,960 Speaker 11: because it was a story franchise. 184 00:08:14,160 --> 00:08:14,600 Speaker 10: It's both. 185 00:08:14,640 --> 00:08:16,640 Speaker 3: I think it's surprising that they got just a tad 186 00:08:16,680 --> 00:08:18,720 Speaker 3: bit over. But for the NFL, I mean you have 187 00:08:18,760 --> 00:08:21,960 Speaker 3: to think about the last couple purchases from the NFL. 188 00:08:22,000 --> 00:08:23,920 Speaker 3: When the Panters were sold, I believe that was around 189 00:08:23,920 --> 00:08:26,400 Speaker 3: two point two. Then you had the Broncos, which is 190 00:08:26,400 --> 00:08:28,400 Speaker 3: four point six, and then you have the Commanders at 191 00:08:28,480 --> 00:08:30,800 Speaker 3: six billion. Who knows what the next one. 192 00:08:30,640 --> 00:08:31,040 Speaker 2: Could sell that. 193 00:08:31,120 --> 00:08:33,520 Speaker 3: But if the Celtics are you know, just to pass 194 00:08:33,559 --> 00:08:35,480 Speaker 3: that by fifty million dollars to get the six and 195 00:08:35,520 --> 00:08:37,960 Speaker 3: then the champs and they're the defending chair and they 196 00:08:38,000 --> 00:08:40,240 Speaker 3: have their present, they locked up and they're young. Yeah, 197 00:08:40,280 --> 00:08:42,760 Speaker 3: I mean, you know, I agree with you exactly. So 198 00:08:42,800 --> 00:08:45,120 Speaker 3: who you know, you look at some of these succession 199 00:08:45,160 --> 00:08:46,960 Speaker 3: plans that are out there. We know that the Seahawks 200 00:08:47,040 --> 00:08:48,480 Speaker 3: have to be sold, We know that the Saints have 201 00:08:48,559 --> 00:08:50,200 Speaker 3: to be sold, There's going to be somebody out there 202 00:08:50,200 --> 00:08:52,960 Speaker 3: who's looking at the NFL's business and it's like, these 203 00:08:52,960 --> 00:08:56,600 Speaker 3: teams don't lose money. I am going to control my stadium. 204 00:08:56,679 --> 00:08:59,240 Speaker 3: I'm gonna make a whole lot more cash even after 205 00:08:59,280 --> 00:09:02,079 Speaker 3: investing this. My I think it's inevitably going to be passed, 206 00:09:02,080 --> 00:09:04,000 Speaker 3: and my bet would be on an NFL franchise at 207 00:09:04,000 --> 00:09:04,520 Speaker 3: some point. 208 00:09:04,720 --> 00:09:07,080 Speaker 9: Well, Randall, you know I got to ask you. I mean, 209 00:09:07,240 --> 00:09:09,160 Speaker 9: the Lakers look good man, talk to us a little 210 00:09:09,160 --> 00:09:11,719 Speaker 9: bit about after this trade. You know, what do the 211 00:09:11,760 --> 00:09:12,920 Speaker 9: Lakers look like to you? 212 00:09:13,000 --> 00:09:13,160 Speaker 2: Right? 213 00:09:13,200 --> 00:09:16,080 Speaker 9: Are they a real contenditor? But more importantly, what does 214 00:09:16,120 --> 00:09:18,400 Speaker 9: this leave Dallas? I mean, my god, I mean. 215 00:09:18,320 --> 00:09:20,800 Speaker 3: You never seen it. I'll say I've never seen a 216 00:09:20,880 --> 00:09:24,400 Speaker 3: franchise torn apart in a year the way that we 217 00:09:24,480 --> 00:09:26,400 Speaker 3: have seen this franchise. 218 00:09:26,480 --> 00:09:27,360 Speaker 10: I mean, like. 219 00:09:27,600 --> 00:09:31,520 Speaker 3: Dallas lost the finals, Luca goes out with the injury, 220 00:09:31,880 --> 00:09:34,240 Speaker 3: you trade him in the darkness of the night, and 221 00:09:34,280 --> 00:09:37,640 Speaker 3: then Kyrie gets hurt, Anthony Davis gets hurt. And I 222 00:09:37,679 --> 00:09:39,800 Speaker 3: mean this I'm naming the top players. There are other 223 00:09:39,840 --> 00:09:42,200 Speaker 3: players who have also been hurt. In regards to the Lakers, 224 00:09:42,200 --> 00:09:45,960 Speaker 3: the Lakers can contend like it has drastically they got 225 00:09:46,360 --> 00:09:49,600 Speaker 3: They got Luka Doncas for Anthony Davis and a couple 226 00:09:49,640 --> 00:09:51,880 Speaker 3: other pieces, but they didn't lose their soul when they 227 00:09:51,920 --> 00:09:54,120 Speaker 3: traded for him, which if you're trading for Luka Doncics, 228 00:09:54,160 --> 00:09:56,560 Speaker 3: you're expected to lose your soul. And so with that 229 00:09:56,640 --> 00:09:59,600 Speaker 3: in mind, you think about how much that supercharges the 230 00:09:59,679 --> 00:10:02,360 Speaker 3: NBA as a league. With Lebron and Luca playing together. 231 00:10:02,640 --> 00:10:04,200 Speaker 10: Here him the Lakers into the French court. 232 00:10:04,240 --> 00:10:06,760 Speaker 3: At the ball in a one point lead, Reeves top 233 00:10:06,800 --> 00:10:07,840 Speaker 3: of the keek, goes. 234 00:10:07,679 --> 00:10:12,440 Speaker 6: To Luca right side, dribbling one on one against Walker Kesler. 235 00:10:12,520 --> 00:10:13,800 Speaker 4: Three pointer over Tesler. 236 00:10:13,920 --> 00:10:17,600 Speaker 6: That's gone Lucas first three is the Laker and the 237 00:10:17,640 --> 00:10:19,400 Speaker 6: place coach nuts. 238 00:10:20,679 --> 00:10:22,280 Speaker 10: Lebron with Marcus Smart on it. 239 00:10:24,600 --> 00:10:26,640 Speaker 4: Lebron dribbles right Lebron down the middle. 240 00:10:26,679 --> 00:10:28,280 Speaker 8: They forgot to stop the ball. 241 00:10:28,840 --> 00:10:30,360 Speaker 6: Slam dunk by Lebron. 242 00:10:30,960 --> 00:10:32,920 Speaker 3: What does it look like? Think about these matchups for 243 00:10:32,960 --> 00:10:36,520 Speaker 3: the Lakers. If they play the Celtics, you have the 244 00:10:36,679 --> 00:10:39,200 Speaker 3: oldest rivalry in basketball going at it again. 245 00:10:39,400 --> 00:10:42,160 Speaker 6: Jalen Brown against Luka Dotci. She's thinking about pulling up 246 00:10:42,160 --> 00:10:45,439 Speaker 6: to the three instead. A couple of dribble shock locked 247 00:10:45,440 --> 00:10:48,040 Speaker 6: out of six, Jalen backs it out, he's near half court. 248 00:10:48,679 --> 00:10:50,600 Speaker 6: Jalen pull up on Lucas straight away. 249 00:10:50,600 --> 00:10:50,840 Speaker 7: Three. 250 00:10:50,960 --> 00:10:51,240 Speaker 2: Got it. 251 00:10:52,000 --> 00:10:55,280 Speaker 3: If they play the Calves, it's Lebron returning to Cleveland. Like, 252 00:10:55,320 --> 00:10:58,240 Speaker 3: there's a lot of different stories and granted, and even 253 00:10:58,360 --> 00:11:00,439 Speaker 3: in the matchup the okay see, I mean they're the 254 00:11:00,480 --> 00:11:02,920 Speaker 3: only we're not worried about. Okay, see Golden State. Like 255 00:11:02,960 --> 00:11:05,040 Speaker 3: you think about the Western Conference finals. Now you have 256 00:11:05,120 --> 00:11:06,760 Speaker 3: Lebron versus Steph. 257 00:11:06,280 --> 00:11:09,920 Speaker 5: Butler right way gets to the curry curls, fires up threes, 258 00:11:10,360 --> 00:11:14,760 Speaker 5: not to down. He's now got twenty five thousand points 259 00:11:14,800 --> 00:11:18,520 Speaker 5: plus in his career, the twenty six player INNA history 260 00:11:18,559 --> 00:11:19,480 Speaker 5: to reach that plateau. 261 00:11:19,880 --> 00:11:20,080 Speaker 2: Yeah. 262 00:11:20,120 --> 00:11:21,840 Speaker 3: Again, So there's a lot out there, see. 263 00:11:21,679 --> 00:11:25,640 Speaker 2: And you're right because the LA against Boston And okay, 264 00:11:25,679 --> 00:11:28,880 Speaker 2: old man bar is going to talk again. Nineteen seventy 265 00:11:29,440 --> 00:11:33,560 Speaker 2: back in the NBA Game of the Week when on ABC, Yeah, 266 00:11:33,960 --> 00:11:37,400 Speaker 2: we had color back man and TV and Dennis Michael. 267 00:11:37,400 --> 00:11:39,240 Speaker 9: Did you see where Randall just went there? He went 268 00:11:39,320 --> 00:11:41,040 Speaker 9: right to the playoffs. And you know, we're talking about 269 00:11:41,040 --> 00:11:42,920 Speaker 9: a six point one billion dollar valuation to take it 270 00:11:42,960 --> 00:11:44,959 Speaker 9: back to the Celtics. It's all about getting to the 271 00:11:45,000 --> 00:11:48,320 Speaker 9: playoffs and getting and more playoff games, more home playoff games. 272 00:11:48,320 --> 00:11:50,840 Speaker 9: And now now aren't the Lakers the two seeds? So 273 00:11:50,920 --> 00:11:52,920 Speaker 9: Elie's got it's showtime. 274 00:11:53,200 --> 00:11:55,760 Speaker 3: They're around there. I mean, so much of this is fluctuating, 275 00:11:55,800 --> 00:11:59,160 Speaker 3: because though I think the seeds between three and eight 276 00:11:59,280 --> 00:12:01,760 Speaker 3: are just so to one another, but if Lebron and 277 00:12:01,880 --> 00:12:04,640 Speaker 3: Luca are playing and they don't make at least the 278 00:12:04,679 --> 00:12:07,520 Speaker 3: Western Conference finals, it would be a tremendous discipline. 279 00:12:07,920 --> 00:12:10,240 Speaker 2: Keep your eye, by the way on the Cleveland Cavaliers. 280 00:12:10,559 --> 00:12:12,240 Speaker 2: They're the real deal. They're the real deal. 281 00:12:12,280 --> 00:12:14,480 Speaker 3: They don't get talked about enough because Lebron's not there anymore, 282 00:12:14,520 --> 00:12:15,720 Speaker 3: but they're a serious threat. 283 00:12:16,000 --> 00:12:23,120 Speaker 2: Spider Mitchell Cross sober three ball a fifty. 284 00:12:24,160 --> 00:12:29,880 Speaker 6: A fifty piece here in the first quarter for the Cavaliers. 285 00:12:30,600 --> 00:12:33,640 Speaker 2: Randall Williams, my man, thank you again for joining us 286 00:12:33,640 --> 00:12:38,000 Speaker 2: on the Bloomberg Business of Sports. Always a pleasure, always 287 00:12:38,080 --> 00:12:40,440 Speaker 2: dropping knowledge on this. Thank you again, Thank you for 288 00:12:40,440 --> 00:12:43,680 Speaker 2: having me as always Up. Next, we dive in on 289 00:12:44,000 --> 00:12:47,840 Speaker 2: March Madness for my colleagues. Damien sas Salary, Vanessa Predomo. 290 00:12:47,920 --> 00:12:50,560 Speaker 2: I'm Michael Barr. You're listening to the Bloomberg Business of 291 00:12:50,600 --> 00:12:52,800 Speaker 2: Sports from Bloomberg Radio around the world. 292 00:13:01,320 --> 00:13:05,320 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 293 00:13:06,520 --> 00:13:09,000 Speaker 2: This is the Bloomberg Business of Sports, where we explore 294 00:13:09,000 --> 00:13:10,800 Speaker 2: the big money issues in the world of sports. I'm 295 00:13:10,840 --> 00:13:14,800 Speaker 2: Michael Barr, along with my colleagues Scarlett fu and Damian Sassauer. 296 00:13:15,120 --> 00:13:19,240 Speaker 2: The NCAA tournament is here, but before we go all 297 00:13:19,280 --> 00:13:22,360 Speaker 2: in on March Madness, we want to touch on another 298 00:13:22,400 --> 00:13:25,880 Speaker 2: big story in college sports which could have a huge impact. 299 00:13:26,160 --> 00:13:29,360 Speaker 2: The NCAA is expected to approve a settlement that would 300 00:13:29,360 --> 00:13:32,600 Speaker 2: pay out nearly three billion dollars in damages to former 301 00:13:32,640 --> 00:13:37,360 Speaker 2: athletes and establish a framework for player compensation. Bloomberg News 302 00:13:37,360 --> 00:13:41,240 Speaker 2: Global Business of Sports reporter Ira Budwe has done a 303 00:13:41,280 --> 00:13:43,800 Speaker 2: lot of reporting on this and he is here now 304 00:13:43,840 --> 00:13:46,360 Speaker 2: to take us through the latest. Ira, Welcome back to 305 00:13:46,360 --> 00:13:47,880 Speaker 2: the Bloomberg Business of Sports. 306 00:13:48,200 --> 00:13:48,760 Speaker 10: How's it going? 307 00:13:49,080 --> 00:13:54,440 Speaker 2: The flawed plan to gain control of college athletes pay now, 308 00:13:55,200 --> 00:13:58,240 Speaker 2: As my father would say, how in the hell are 309 00:13:58,240 --> 00:13:58,880 Speaker 2: you going to do that? 310 00:14:00,240 --> 00:14:00,920 Speaker 10: It's interesting. 311 00:14:00,960 --> 00:14:03,760 Speaker 7: I mean, I think people who follow college sports are 312 00:14:03,840 --> 00:14:07,640 Speaker 7: aware of this settlement and the class action suit that 313 00:14:07,679 --> 00:14:10,160 Speaker 7: were brought by former athletes over the fact that they 314 00:14:10,160 --> 00:14:13,840 Speaker 7: weren't allowed to earn money off the field for years 315 00:14:13,840 --> 00:14:15,760 Speaker 7: and years, and then the NCAA changed that. 316 00:14:15,840 --> 00:14:17,359 Speaker 10: Rule back in twenty twenty. 317 00:14:17,120 --> 00:14:19,480 Speaker 7: One, and now we all know this term NIL, Name 318 00:14:19,560 --> 00:14:23,440 Speaker 7: Image Likeness deals, and that class action suit is supposed 319 00:14:23,480 --> 00:14:26,000 Speaker 7: to be finalized in April, actually the same day as 320 00:14:26,040 --> 00:14:31,680 Speaker 7: the men's NCAA Basketball Championship final, and it has in 321 00:14:31,720 --> 00:14:34,640 Speaker 7: it these provisions right that schools will now be able 322 00:14:34,680 --> 00:14:37,120 Speaker 7: to pay players directly up to twenty two percent of 323 00:14:37,120 --> 00:14:41,280 Speaker 7: their athletic revenue. And everyone's sort of focused on that 324 00:14:41,880 --> 00:14:44,960 Speaker 7: this pay and this cap that are included in there, 325 00:14:44,960 --> 00:14:48,000 Speaker 7: But there's also a provision in there that says that 326 00:14:48,480 --> 00:14:52,880 Speaker 7: outside deals, third party deals for NIL, which basically are 327 00:14:52,960 --> 00:14:55,480 Speaker 7: what now drive the market, what athletes are getting millions 328 00:14:55,520 --> 00:14:58,920 Speaker 7: of dollars for, are going to be subject to a 329 00:14:58,960 --> 00:15:02,320 Speaker 7: fair market review you by this outside entity that's going 330 00:15:02,360 --> 00:15:05,640 Speaker 7: to be run by Deloitte. Basically, what they're trying to 331 00:15:05,720 --> 00:15:09,600 Speaker 7: do is ensure that NIL deals are no longer used 332 00:15:09,680 --> 00:15:12,400 Speaker 7: as pay to play, which is what's happening now. ANIL 333 00:15:12,440 --> 00:15:14,880 Speaker 7: is supposed to be like I lend my name to 334 00:15:14,960 --> 00:15:17,560 Speaker 7: your advertising campaign, you give me some money for that. 335 00:15:18,400 --> 00:15:21,520 Speaker 7: But what it's become is I come to your school 336 00:15:21,840 --> 00:15:24,640 Speaker 7: and play quarterback and you give me some money for that, right, 337 00:15:24,760 --> 00:15:26,040 Speaker 7: And they want that to end. 338 00:15:26,080 --> 00:15:28,520 Speaker 10: They want the pay to be capped and. 339 00:15:28,480 --> 00:15:30,400 Speaker 7: To come through the schools and to be under their 340 00:15:30,440 --> 00:15:33,520 Speaker 7: control and for them to have full visibility into the marketplace. 341 00:15:33,560 --> 00:15:35,640 Speaker 7: But I think it's going to be really hard to enforce. 342 00:15:36,200 --> 00:15:37,640 Speaker 4: Yeah, how do you do that? I mean, how do 343 00:15:37,680 --> 00:15:40,080 Speaker 4: you wrangle all this together? This all kind of developed 344 00:15:40,160 --> 00:15:44,800 Speaker 4: organically and there's no real regulatory body overseeing any of this. 345 00:15:45,560 --> 00:15:49,640 Speaker 10: Yeah, it's very tricky. I mean, this world exists in 346 00:15:49,720 --> 00:15:50,440 Speaker 10: pro sports. 347 00:15:50,800 --> 00:15:54,560 Speaker 7: So athletes who do endorsement deals in professional sports are 348 00:15:55,360 --> 00:15:58,480 Speaker 7: supposed to are bound by rules in their collective bargaining 349 00:15:58,480 --> 00:16:02,520 Speaker 7: agreements that basically say the owner can't come and make 350 00:16:02,560 --> 00:16:05,400 Speaker 7: a deal with you on the side with his other 351 00:16:05,480 --> 00:16:08,800 Speaker 7: company or whatever it may be, and pay you basically 352 00:16:08,880 --> 00:16:11,360 Speaker 7: salary off the books. And teams have tried to break 353 00:16:11,400 --> 00:16:13,720 Speaker 7: these rules, So there are these fair market reviews. They 354 00:16:13,760 --> 00:16:17,120 Speaker 7: exist in sports, but they usually are part of a 355 00:16:18,560 --> 00:16:22,880 Speaker 7: collective bargaining agree right, And that's how this works normally. 356 00:16:22,920 --> 00:16:24,560 Speaker 7: But college obviously is a special case. 357 00:16:25,040 --> 00:16:26,080 Speaker 10: There is no CBA. 358 00:16:26,160 --> 00:16:27,960 Speaker 7: There doesn't seem to be any movement toward one, it 359 00:16:27,960 --> 00:16:32,400 Speaker 7: would require all this work about declaring athletes employees, forming 360 00:16:32,520 --> 00:16:35,760 Speaker 7: unions or some kind of representation. And so they're trying 361 00:16:35,800 --> 00:16:38,120 Speaker 7: to figure out a way to do this through this 362 00:16:38,240 --> 00:16:41,800 Speaker 7: settlement and through this Deloitte clearinghouse, which is basically going 363 00:16:41,840 --> 00:16:43,280 Speaker 7: to say, if you have a deal of more than 364 00:16:43,320 --> 00:16:46,440 Speaker 7: six hundred dollars, you have to bring it to the clearinghouse. 365 00:16:46,880 --> 00:16:48,320 Speaker 7: And the clearing house is going to look at the 366 00:16:48,320 --> 00:16:50,480 Speaker 7: deal and they're going to say, is this deal with 367 00:16:50,520 --> 00:16:53,560 Speaker 7: somebody who we call basically a booster, like somebody who 368 00:16:53,600 --> 00:16:56,120 Speaker 7: wants the school you're going to to win. Like Phil Knight, 369 00:16:56,200 --> 00:17:00,640 Speaker 7: very famously co founder of Nike, supports the organ University 370 00:17:00,640 --> 00:17:02,480 Speaker 7: of Oregon. He gives lots of money to their athletes 371 00:17:02,520 --> 00:17:05,439 Speaker 7: and nil deals. He would be one of these people 372 00:17:05,480 --> 00:17:08,040 Speaker 7: on the list right who he's giving this money because 373 00:17:08,080 --> 00:17:12,000 Speaker 7: he wants Oregon to win, not because he's trying to promote. 374 00:17:11,640 --> 00:17:12,400 Speaker 10: His new company. 375 00:17:12,800 --> 00:17:14,879 Speaker 7: And so if you're on that list, then Deloitte is 376 00:17:14,880 --> 00:17:16,959 Speaker 7: going to take that deal and say, is this what 377 00:17:17,000 --> 00:17:19,239 Speaker 7: people are paying for the work you say you're going 378 00:17:19,280 --> 00:17:21,399 Speaker 7: to do for the name, image and likeness of a 379 00:17:21,400 --> 00:17:24,520 Speaker 7: person like you who plays is a sophomore and plays 380 00:17:24,640 --> 00:17:27,200 Speaker 7: in this position in this market with this many social 381 00:17:27,240 --> 00:17:30,200 Speaker 7: media followers. It's just the right amount of money or 382 00:17:30,359 --> 00:17:33,119 Speaker 7: is this actually just the money that they're trying to 383 00:17:33,119 --> 00:17:35,239 Speaker 7: pay you to come play for their school. If they 384 00:17:35,240 --> 00:17:37,200 Speaker 7: think it's too much, they're going to throw it out 385 00:17:37,280 --> 00:17:39,240 Speaker 7: and then the athlete will either have to appeal that 386 00:17:39,280 --> 00:17:43,080 Speaker 7: to an arbitrator or renegotiate or just abandon it. 387 00:17:43,160 --> 00:17:45,040 Speaker 4: Those Deloitte guys will be really popular. 388 00:17:45,680 --> 00:17:48,080 Speaker 7: Well, yeah, so that's one issue, right, Their authority is 389 00:17:48,119 --> 00:17:51,480 Speaker 7: going to get tested in court and otherwise. And then 390 00:17:51,520 --> 00:17:54,199 Speaker 7: they also then have to have this separate to the 391 00:17:54,240 --> 00:17:57,800 Speaker 7: Deloitte clearinghouse, this enforcement entity that they're going to build. 392 00:17:58,560 --> 00:18:01,320 Speaker 7: Assuming this gets finalized gets finalized in April, this would 393 00:18:01,320 --> 00:18:03,440 Speaker 7: all go into effect in July, so they've got a 394 00:18:03,480 --> 00:18:04,800 Speaker 7: little bit of time to build it. But it's a 395 00:18:04,840 --> 00:18:06,960 Speaker 7: real challenge because then they have to have a group 396 00:18:06,960 --> 00:18:11,400 Speaker 7: of people who basically figure out if you have unreported deals. Right, 397 00:18:11,600 --> 00:18:13,840 Speaker 7: A lot of times these deals at this point athletes 398 00:18:13,880 --> 00:18:16,600 Speaker 7: are supposed to disclose their nil deals to their schools. 399 00:18:16,840 --> 00:18:19,520 Speaker 7: A lot of them do not, and so you're going 400 00:18:19,600 --> 00:18:21,439 Speaker 7: to be back in the same situation that they've been 401 00:18:21,480 --> 00:18:23,439 Speaker 7: in for a long time, which is athlete rolls up 402 00:18:23,440 --> 00:18:26,280 Speaker 7: to school in a luxury car. You don't know where 403 00:18:26,320 --> 00:18:28,359 Speaker 7: that money came from. It doesn't seem to make sense. 404 00:18:28,840 --> 00:18:31,600 Speaker 7: You have to open some kind of investigation. Or you know, 405 00:18:32,080 --> 00:18:35,520 Speaker 7: guy at Alabama tells on guy at Clemson because he 406 00:18:35,560 --> 00:18:37,919 Speaker 7: wants to get Clemson in trouble, and he knows that 407 00:18:37,960 --> 00:18:40,679 Speaker 7: guy at Clemson made a deal without disclosing, and now 408 00:18:40,680 --> 00:18:43,680 Speaker 7: you've got to chase down that tip. Or guy makes 409 00:18:43,680 --> 00:18:47,000 Speaker 7: a deal with a car dealership in town, you know 410 00:18:47,320 --> 00:18:49,160 Speaker 7: who's a booster for Kentucky. 411 00:18:49,240 --> 00:18:52,119 Speaker 10: Let's say, and the deal is, we'll give you. 412 00:18:52,080 --> 00:18:53,760 Speaker 7: One hundred thousand dollars, but you got to show up 413 00:18:53,760 --> 00:18:56,280 Speaker 7: to twenty twenty events that we're going to hold during 414 00:18:56,280 --> 00:18:58,440 Speaker 7: the course of the next year. Deloitte looks at that says, 415 00:18:58,440 --> 00:19:00,240 Speaker 7: all right, I think that passes muster. That's in the 416 00:19:00,320 --> 00:19:04,000 Speaker 7: range of the reasonable. But guy no shows right, goes 417 00:19:04,040 --> 00:19:06,720 Speaker 7: to one event, skips the other nineteen You've got to 418 00:19:06,760 --> 00:19:09,199 Speaker 7: follow up on all of that. So it's going I 419 00:19:09,200 --> 00:19:10,480 Speaker 7: think it's going to be a real trick. 420 00:19:10,680 --> 00:19:12,919 Speaker 2: By the way, I want to case anybody not familiar 421 00:19:12,960 --> 00:19:16,159 Speaker 2: with the settlement part. The NC double A, if approved, 422 00:19:16,440 --> 00:19:19,000 Speaker 2: would pay two point eight billion dollars in damages to 423 00:19:19,119 --> 00:19:23,320 Speaker 2: former athletes and establish a framework for schools to compensate 424 00:19:23,480 --> 00:19:26,639 Speaker 2: current players. Now, which brings me to the next question. 425 00:19:27,480 --> 00:19:30,440 Speaker 2: The NC DOUBLEA has just finally said, you know what, 426 00:19:30,480 --> 00:19:32,920 Speaker 2: the heck with it? There's nothing we can do. Yes, 427 00:19:33,200 --> 00:19:37,120 Speaker 2: the amateurism stuff, okay, it's over all right, fine, Now 428 00:19:37,119 --> 00:19:39,720 Speaker 2: you got to clean this stuff up. I guess the 429 00:19:39,800 --> 00:19:43,480 Speaker 2: first step is taking the third party out of it. 430 00:19:44,000 --> 00:19:46,000 Speaker 7: That's kind of the goal here. I mean, I think 431 00:19:46,040 --> 00:19:50,359 Speaker 7: what they want to do is have these boosters give 432 00:19:50,440 --> 00:19:54,520 Speaker 7: that money to the athletic department, donate it, and we 433 00:19:54,560 --> 00:19:56,919 Speaker 7: will use it as part of our revenue because we're 434 00:19:56,960 --> 00:19:59,320 Speaker 7: allowed to now pay twenty two percent of our revenue 435 00:19:59,320 --> 00:20:03,440 Speaker 7: to players. So that'll boost our the overall average that 436 00:20:03,520 --> 00:20:05,359 Speaker 7: these schools are getting, right, it's a pegged by it 437 00:20:05,359 --> 00:20:08,880 Speaker 7: to an average. Give us the money and we'll pay. 438 00:20:08,960 --> 00:20:11,320 Speaker 7: So this coming season, theoretically the schools are going to 439 00:20:11,320 --> 00:20:13,840 Speaker 7: have about twenty one million in the schools that are 440 00:20:13,840 --> 00:20:17,120 Speaker 7: part of this settlement to pay players directly, and so 441 00:20:17,200 --> 00:20:19,600 Speaker 7: they want to say, look, that's the money, that money 442 00:20:19,600 --> 00:20:21,360 Speaker 7: we don't have to put into any kind of fair 443 00:20:21,400 --> 00:20:23,959 Speaker 7: market value assessment. We can just give as much as 444 00:20:23,960 --> 00:20:26,439 Speaker 7: we want as we see fit, and we will spread 445 00:20:26,440 --> 00:20:29,600 Speaker 7: it out among different programs, different athletes, and we'll figure 446 00:20:29,640 --> 00:20:29,960 Speaker 7: it out. 447 00:20:30,119 --> 00:20:30,280 Speaker 2: Right. 448 00:20:30,280 --> 00:20:33,400 Speaker 7: It's basically like we're going to have payroll and salary 449 00:20:33,440 --> 00:20:35,720 Speaker 7: cap management and gms who are going to have to 450 00:20:35,720 --> 00:20:38,679 Speaker 7: do that job. But don't go outside of that, because 451 00:20:38,720 --> 00:20:41,680 Speaker 7: the main thing they're worried about is competitive balance. When 452 00:20:41,680 --> 00:20:43,960 Speaker 7: Phil Knight is willing to spend as much as he's 453 00:20:43,960 --> 00:20:46,840 Speaker 7: willing to spend to support the University of Oregon, that's 454 00:20:46,880 --> 00:20:49,919 Speaker 7: a problem for a school that doesn't have a billionaire 455 00:20:49,920 --> 00:20:52,560 Speaker 7: patron right, And so they're trying to make it a 456 00:20:52,640 --> 00:20:55,520 Speaker 7: relatively level playing field, which is the whole point of 457 00:20:55,840 --> 00:20:59,040 Speaker 7: salary caps and salary structures and professional sports in general. 458 00:20:59,119 --> 00:21:02,040 Speaker 7: But again, those are all part of collective bargain agreements, 459 00:21:02,040 --> 00:21:06,920 Speaker 7: which gives them legal standing. And I think this, you know, basically, 460 00:21:07,359 --> 00:21:11,280 Speaker 7: the argument is this is anti trust right behavior, Like 461 00:21:11,320 --> 00:21:13,399 Speaker 7: you're being a monopolist if you tell people they can't 462 00:21:13,920 --> 00:21:16,240 Speaker 7: sign a deal, Like, how does the NCAA have the 463 00:21:16,280 --> 00:21:18,359 Speaker 7: authority to tell two parties that they can't make a 464 00:21:18,359 --> 00:21:20,879 Speaker 7: deal for as much money as they feel like, the 465 00:21:20,960 --> 00:21:24,960 Speaker 7: answer is, in the case of the sport of professional leagues, well, 466 00:21:25,040 --> 00:21:28,159 Speaker 7: we have a collectively bargained agreement, so everyone's signed on 467 00:21:28,200 --> 00:21:30,960 Speaker 7: to it, and collectively bargain agreements generally have an anti 468 00:21:30,960 --> 00:21:34,680 Speaker 7: trust exemption, so we're allowed to restrain these kind of behavior. 469 00:21:35,240 --> 00:21:38,160 Speaker 7: NCAA is hoping that they can use a class action 470 00:21:38,240 --> 00:21:40,560 Speaker 7: settlement to accomplish the same thing, but there really is 471 00:21:40,600 --> 00:21:41,680 Speaker 7: no real precedent for that. 472 00:21:41,960 --> 00:21:44,640 Speaker 4: Do you feel like from where you sit that cbs 473 00:21:44,680 --> 00:21:46,200 Speaker 4: are inevitable in college sports? 474 00:21:46,680 --> 00:21:49,080 Speaker 7: I mean, it's interesting. I don't know where you go 475 00:21:49,119 --> 00:21:52,520 Speaker 7: from here, because getting two cbas is its own challenge, 476 00:21:52,560 --> 00:21:55,280 Speaker 7: and they've spent so long resisting that right, and there 477 00:21:55,320 --> 00:21:57,679 Speaker 7: is no current framework really for it. 478 00:21:57,720 --> 00:21:58,920 Speaker 10: And you've got the problem of like. 479 00:21:58,840 --> 00:22:00,720 Speaker 7: The rules for public schools will be different than the 480 00:22:00,800 --> 00:22:04,240 Speaker 7: rules for private schools. At what level would players be represented, 481 00:22:04,280 --> 00:22:06,760 Speaker 7: who would they who would be representing them at the table, 482 00:22:06,760 --> 00:22:08,919 Speaker 7: and who would they be negotiating with. None of these 483 00:22:09,000 --> 00:22:14,000 Speaker 7: questions are answered. However, the CBA as a structure is 484 00:22:14,119 --> 00:22:16,760 Speaker 7: obviously the solution to all of these problems, right, It's 485 00:22:16,760 --> 00:22:19,199 Speaker 7: a solved problem. How do you pay athletes in an 486 00:22:19,240 --> 00:22:22,879 Speaker 7: equitable way that is legal, and that allows for competitive 487 00:22:22,880 --> 00:22:23,960 Speaker 7: balance between teams. 488 00:22:24,400 --> 00:22:25,919 Speaker 10: You do a collective lead bar and. 489 00:22:25,920 --> 00:22:29,480 Speaker 7: Degree and it's all there and we know how it works. 490 00:22:29,520 --> 00:22:32,800 Speaker 7: It's a solved problem. Baseball did it decades ago. Other 491 00:22:32,880 --> 00:22:36,959 Speaker 7: leagues have adopted. It works. But how you port that 492 00:22:37,040 --> 00:22:40,359 Speaker 7: to college sports is no one's figured out yet. 493 00:22:40,920 --> 00:22:43,320 Speaker 2: I think a lot of people, a lot of college 494 00:22:43,359 --> 00:22:47,440 Speaker 2: athletes are forgetting. And you brought it up about name, 495 00:22:47,600 --> 00:22:51,160 Speaker 2: image and likeness. Well, you've got to build a name 496 00:22:51,400 --> 00:22:54,440 Speaker 2: first to cash in on that, which means you got 497 00:22:54,440 --> 00:22:56,760 Speaker 2: to play the dog one game. And if you don't 498 00:22:56,800 --> 00:22:58,800 Speaker 2: play the game, you don't build a name. 499 00:23:00,080 --> 00:23:00,199 Speaker 8: Right. 500 00:23:00,280 --> 00:23:03,760 Speaker 2: That was good which came first? The chicken or the 501 00:23:03,800 --> 00:23:06,280 Speaker 2: egg is like, hey, guys, you want to build the name. 502 00:23:06,400 --> 00:23:09,679 Speaker 2: Caitlin Clark's a classic example. She built the name on 503 00:23:09,800 --> 00:23:13,080 Speaker 2: the court and now she made a boatload of money 504 00:23:13,440 --> 00:23:18,120 Speaker 2: from endorsements. And I guess I'm trying to pass that on. 505 00:23:18,680 --> 00:23:22,159 Speaker 2: Maybe that's something that needs to be schooled into a 506 00:23:22,200 --> 00:23:24,120 Speaker 2: lot of the college athletes. 507 00:23:24,160 --> 00:23:25,720 Speaker 4: You got to put the horse before the cart. 508 00:23:25,680 --> 00:23:27,959 Speaker 2: Exactly, yeah, exactly. 509 00:23:27,600 --> 00:23:28,800 Speaker 10: Yeah, I think that's true. 510 00:23:28,840 --> 00:23:32,160 Speaker 7: I think the account argument is like, look, leagues and 511 00:23:32,440 --> 00:23:35,000 Speaker 7: conferences and schools are making a lot of cash off 512 00:23:35,000 --> 00:23:37,880 Speaker 7: of our work. Right, people are tuning in to watch 513 00:23:38,000 --> 00:23:41,520 Speaker 7: us play, and so we should get a piece of that, right, 514 00:23:41,600 --> 00:23:43,800 Speaker 7: And that's what this revenue sharing part of the agreement 515 00:23:43,840 --> 00:23:44,560 Speaker 7: is really about. 516 00:23:45,080 --> 00:23:45,280 Speaker 2: Right. 517 00:23:45,359 --> 00:23:49,520 Speaker 7: But what is that money for. It's for the performance 518 00:23:49,560 --> 00:23:51,960 Speaker 7: on the field and on the court, And no one 519 00:23:52,000 --> 00:23:55,120 Speaker 7: can quite admit that because that means you're an employee, right, 520 00:23:55,600 --> 00:23:58,320 Speaker 7: And so they've tried every other way, you. 521 00:23:58,280 --> 00:24:01,160 Speaker 4: Know, and I just changed it completely. 522 00:24:01,200 --> 00:24:04,959 Speaker 7: Even in this settlement, they're not exactly saying schools are 523 00:24:04,960 --> 00:24:07,600 Speaker 7: going to pay directly to players is for their play. 524 00:24:07,840 --> 00:24:11,240 Speaker 7: They're basically saying it's revenue sharing money. And it's still 525 00:24:11,320 --> 00:24:13,879 Speaker 7: nil because the players will be giving over some of 526 00:24:13,880 --> 00:24:16,680 Speaker 7: their name, image and likeness rights to the schools. They 527 00:24:16,680 --> 00:24:18,760 Speaker 7: don't want to open that kettle of fish. 528 00:24:18,760 --> 00:24:19,800 Speaker 10: But it's like it's. 529 00:24:19,640 --> 00:24:22,639 Speaker 4: Open, right, so practices it's there. 530 00:24:22,880 --> 00:24:24,280 Speaker 10: And everyone knows what this is about. 531 00:24:24,920 --> 00:24:27,400 Speaker 2: Well yeah, I mean it's like, think about it. Before 532 00:24:27,440 --> 00:24:30,200 Speaker 2: all of this came about, and I'm going to openly admit, 533 00:24:30,840 --> 00:24:33,439 Speaker 2: before all of this happened, with the can of worms 534 00:24:33,440 --> 00:24:36,600 Speaker 2: of nil, I was like, that's right, college athletes, you 535 00:24:36,760 --> 00:24:40,000 Speaker 2: make that money. You get what you can and then 536 00:24:40,240 --> 00:24:44,280 Speaker 2: somebody didn't think it through and this is what we got. 537 00:24:44,440 --> 00:24:47,320 Speaker 2: I mean, think about it. Schools make used to make 538 00:24:47,359 --> 00:24:51,159 Speaker 2: money off of the athletes jerseys and you know, and 539 00:24:51,200 --> 00:24:53,520 Speaker 2: of course the college athlete has like got a free 540 00:24:53,600 --> 00:24:55,679 Speaker 2: lunch and that was about it, you know, in terms 541 00:24:55,880 --> 00:24:56,679 Speaker 2: in the cafeteria. 542 00:24:56,840 --> 00:24:59,600 Speaker 4: No, he got the degree, remember that scholarship. 543 00:24:59,680 --> 00:25:02,120 Speaker 2: Yeah, okay, yes, very much so. And by the way, 544 00:25:02,160 --> 00:25:03,679 Speaker 2: you can't go to class because you got to be 545 00:25:03,680 --> 00:25:07,120 Speaker 2: out on the football. IRA. If we all just had 546 00:25:07,119 --> 00:25:10,840 Speaker 2: a beer, we could settle the solid Ira budwe our 547 00:25:11,040 --> 00:25:15,040 Speaker 2: very own Bloomberg A great article, folks, the flawed planned 548 00:25:15,080 --> 00:25:18,600 Speaker 2: gain control of college athletes. Pay Thank you again, man, 549 00:25:18,680 --> 00:25:22,240 Speaker 2: thank you. Up next, we stick with college basketball and 550 00:25:22,280 --> 00:25:25,720 Speaker 2: bring in bet mgm CEO Adam green Blot to talk 551 00:25:25,760 --> 00:25:28,880 Speaker 2: about some of the latest betting trends for the NCAA 552 00:25:28,960 --> 00:25:32,960 Speaker 2: tournament this year for my colleague Scarlett Foo and Damian Sasaur. 553 00:25:33,200 --> 00:25:36,080 Speaker 2: I'm Michael Barr. You're listening to the Bloomberg Business of 554 00:25:36,080 --> 00:25:38,600 Speaker 2: Sports from Bloomberg Radio around the world. 555 00:25:51,119 --> 00:25:55,119 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 556 00:25:56,520 --> 00:25:58,879 Speaker 2: Thanks for joining us on the Bloomberg Business of Sports. 557 00:25:59,040 --> 00:26:01,320 Speaker 2: We explore the big money issues in the world of sports. 558 00:26:01,640 --> 00:26:04,760 Speaker 2: I'm Michael Barr along with my colleagues Damian Sassauer and 559 00:26:04,880 --> 00:26:09,320 Speaker 2: Vanessa Perdomo. The NCAA Basketball tournament is underway, and that 560 00:26:09,440 --> 00:26:13,000 Speaker 2: means it is a big time for sports betters. MGM 561 00:26:13,119 --> 00:26:17,320 Speaker 2: is already for March Madness, and this year it's trying 562 00:26:17,359 --> 00:26:21,800 Speaker 2: out something new, including a free to play game. Here 563 00:26:21,920 --> 00:26:24,679 Speaker 2: now to talk to us about the sports betting landscape 564 00:26:24,800 --> 00:26:28,480 Speaker 2: for March Madness this year and more is bet MGM 565 00:26:28,600 --> 00:26:33,080 Speaker 2: CEO Adam Greenblatt. Adam, welcome to the Bloomberg Business of Sports. 566 00:26:33,200 --> 00:26:35,040 Speaker 12: Well, thank you for having me. It's always great to 567 00:26:35,040 --> 00:26:35,400 Speaker 12: be back. 568 00:26:36,080 --> 00:26:39,840 Speaker 2: I was just talking about this just before you hopped 569 00:26:39,880 --> 00:26:41,760 Speaker 2: on the line that I was going to make an 570 00:26:41,840 --> 00:26:45,199 Speaker 2: individual bet in the I know brackets are big, but 571 00:26:45,359 --> 00:26:49,040 Speaker 2: I'm looking at the individual games in making the bets. 572 00:26:49,440 --> 00:26:53,960 Speaker 2: Which where do you make more money from individual bets 573 00:26:54,000 --> 00:26:57,479 Speaker 2: in this time of the year or people just trying to, like, 574 00:26:57,560 --> 00:26:59,000 Speaker 2: you know, do their bracketology. 575 00:26:59,080 --> 00:27:00,480 Speaker 8: The first thing to say is we have we have 576 00:27:00,560 --> 00:27:04,440 Speaker 8: something for everybody. We've got free to play games, we've 577 00:27:04,440 --> 00:27:09,160 Speaker 8: got bracket challenges, we've got singles bets you can parlay 578 00:27:09,240 --> 00:27:12,560 Speaker 8: up things across games. You can put things together in 579 00:27:12,640 --> 00:27:15,840 Speaker 8: the same game. You can bet on individual players. You 580 00:27:15,880 --> 00:27:18,159 Speaker 8: can even bet whether teams are going to score in 581 00:27:18,200 --> 00:27:22,280 Speaker 8: the four first minute, or even whether how many dunks 582 00:27:22,320 --> 00:27:24,600 Speaker 8: they're going to be in a game. You know, So 583 00:27:25,520 --> 00:27:29,160 Speaker 8: there really is something for everyone, and it's an exciting 584 00:27:29,240 --> 00:27:32,520 Speaker 8: part time of the year for us Adam. 585 00:27:32,560 --> 00:27:34,960 Speaker 11: You know, it's interesting because the Super Bowl is obviously 586 00:27:35,000 --> 00:27:37,840 Speaker 11: the biggest concentrated you know, betting day of the year, 587 00:27:38,080 --> 00:27:42,199 Speaker 11: but due to sheer volume of the games of you know, 588 00:27:42,240 --> 00:27:44,520 Speaker 11: the fact that there's a men's and women's tournament going 589 00:27:44,520 --> 00:27:47,520 Speaker 11: on at the same exact time, does that does this 590 00:27:47,640 --> 00:27:50,199 Speaker 11: come close to the super Bowl or like, is this 591 00:27:50,440 --> 00:27:53,840 Speaker 11: almost is it the second biggest betting you know market 592 00:27:53,880 --> 00:27:54,280 Speaker 11: of the year. 593 00:27:54,840 --> 00:27:58,080 Speaker 8: It's an incredibly important time of the year for the industry, 594 00:27:58,760 --> 00:28:03,480 Speaker 8: and as you rightly in a call out where the 595 00:28:03,560 --> 00:28:08,560 Speaker 8: super Bowl is the biggest individual event, the American Gaming 596 00:28:08,600 --> 00:28:11,360 Speaker 8: Association has just come out and said that Americans will 597 00:28:11,440 --> 00:28:15,919 Speaker 8: legally wager three point one billion dollars on the men's 598 00:28:16,000 --> 00:28:19,440 Speaker 8: and women's college tournaments, and that's up from two point 599 00:28:19,480 --> 00:28:21,520 Speaker 8: seven billion dollars last year. 600 00:28:21,800 --> 00:28:23,200 Speaker 12: So we expect this to be. 601 00:28:23,160 --> 00:28:26,919 Speaker 8: The most bet tournament in bet MGM's history, and it's 602 00:28:27,040 --> 00:28:29,399 Speaker 8: just that there are so many games as the men's 603 00:28:29,440 --> 00:28:33,160 Speaker 8: and women's tournament, and the the women's tournament this year. 604 00:28:33,040 --> 00:28:37,080 Speaker 12: And frankly since last year, actually. 605 00:28:37,080 --> 00:28:40,320 Speaker 8: Is really gaining momentum gaming scheme and is a meaningful 606 00:28:40,360 --> 00:28:45,600 Speaker 8: contributor to participation and bet volume. And in fact, there 607 00:28:45,600 --> 00:28:49,040 Speaker 8: are just so many good storylines to follow, you know, 608 00:28:49,120 --> 00:28:53,680 Speaker 8: player level storylines, team level storylines. We've got some history 609 00:28:54,160 --> 00:28:57,640 Speaker 8: with Saint Peter's a couple of years ago in North Carolina. 610 00:28:57,960 --> 00:29:01,640 Speaker 8: You know that what we see differently in this tournament 611 00:29:01,680 --> 00:29:03,560 Speaker 8: from frankly the regular season in. 612 00:29:03,600 --> 00:29:09,040 Speaker 12: Any other event, is the public being captivated. 613 00:29:08,840 --> 00:29:12,600 Speaker 8: By those Cinderella stories and really investing behind them. 614 00:29:12,760 --> 00:29:15,520 Speaker 9: Adam, I'd like to know from your perspective. I mean, 615 00:29:15,560 --> 00:29:17,520 Speaker 9: we've seen continued growth in the women's game, but we've 616 00:29:17,520 --> 00:29:20,400 Speaker 9: seen that growth translate into the amount of money wagered 617 00:29:20,680 --> 00:29:22,840 Speaker 9: on the women's game. I mean, I know you're teaming 618 00:29:22,920 --> 00:29:25,240 Speaker 9: up with the gist. Tell us a little bit about 619 00:29:25,520 --> 00:29:27,600 Speaker 9: what you're doing this year that's different than last. 620 00:29:28,000 --> 00:29:30,600 Speaker 8: Last year was really the breakout here for the women's game, 621 00:29:30,680 --> 00:29:32,160 Speaker 8: and that was really. 622 00:29:32,520 --> 00:29:36,320 Speaker 12: Driven by how Caitlin Clark captured the. 623 00:29:36,280 --> 00:29:41,200 Speaker 8: Imagination of the public and the betting public, but that 624 00:29:41,320 --> 00:29:44,400 Speaker 8: story isn't over, and what we're excited to see is 625 00:29:44,800 --> 00:29:47,800 Speaker 8: a new slati of stars like you know, Juju Watkins, 626 00:29:47,920 --> 00:29:52,600 Speaker 8: Paige Becker's that really continued to captivate. So this year, 627 00:29:52,640 --> 00:29:57,000 Speaker 8: we've seen a thirty percent year on your increase in 628 00:29:57,080 --> 00:30:01,000 Speaker 8: bets on women's college basketball, and this is going to 629 00:30:01,000 --> 00:30:04,440 Speaker 8: blow your mind. Over the past two years, we've experienced 630 00:30:04,480 --> 00:30:07,800 Speaker 8: more than seven hundred and fifty percent increase in bets 631 00:30:07,880 --> 00:30:11,040 Speaker 8: on the on the women's college game, and you know, 632 00:30:11,800 --> 00:30:15,960 Speaker 8: I think that's probably our highest growth in that period 633 00:30:16,120 --> 00:30:19,680 Speaker 8: of any sport. And so as a business, you know, 634 00:30:19,760 --> 00:30:21,680 Speaker 8: you look at where your growth is and you invest 635 00:30:21,720 --> 00:30:24,360 Speaker 8: behind it. So this year we're going to offer more 636 00:30:24,400 --> 00:30:28,800 Speaker 8: markets than ever before for the women's tournament. We're expanding 637 00:30:28,880 --> 00:30:33,000 Speaker 8: our player props so better able to bet on the 638 00:30:33,040 --> 00:30:37,000 Speaker 8: performances of individual players, and we're expanding that player prop 639 00:30:37,120 --> 00:30:40,320 Speaker 8: offering to more players because what we're seeing is there 640 00:30:40,400 --> 00:30:44,600 Speaker 8: is more players have resonance with the with the betting public. 641 00:30:45,400 --> 00:30:49,800 Speaker 8: And we're also offering things like halftime markets in earlier 642 00:30:49,880 --> 00:30:53,360 Speaker 8: rounds this year and you name checked the just as well. 643 00:30:53,400 --> 00:30:57,280 Speaker 8: This is we're really excited about this our partnership which 644 00:30:57,320 --> 00:30:58,080 Speaker 8: is a new one. 645 00:30:57,920 --> 00:30:58,400 Speaker 2: With the Just. 646 00:30:58,720 --> 00:31:01,960 Speaker 12: It's a woman's led sports media brand, and. 647 00:31:02,240 --> 00:31:05,440 Speaker 8: Where we've partnered for that for the Just to provide 648 00:31:05,480 --> 00:31:10,880 Speaker 8: social media content during the women's tournament. And one data point, 649 00:31:10,880 --> 00:31:14,520 Speaker 8: why did we choose the gist seventy one percent? Now, 650 00:31:14,520 --> 00:31:18,400 Speaker 8: this is the overlap between the general interest and betting interest. 651 00:31:18,920 --> 00:31:22,880 Speaker 8: Seventy one percent of the Gist's readership has expressed interest 652 00:31:22,960 --> 00:31:27,120 Speaker 8: in sports betting. Another interesting point, so we've seen tremendous 653 00:31:27,120 --> 00:31:30,600 Speaker 8: interests in the college game during the regular season, and 654 00:31:31,160 --> 00:31:34,360 Speaker 8: one of the themes this year versus last is the 655 00:31:34,400 --> 00:31:38,960 Speaker 8: growth in the same game parlay adoption. So players have 656 00:31:39,400 --> 00:31:44,160 Speaker 8: really embraced out the ability to bet a few things 657 00:31:44,200 --> 00:31:47,920 Speaker 8: in the same game that from betmgm's perspective, has increased, 658 00:31:48,400 --> 00:31:51,959 Speaker 8: has doubled on you. Now, your question was about do 659 00:31:52,000 --> 00:31:54,960 Speaker 8: we see something different during the tournament than the regular season, 660 00:31:55,040 --> 00:31:58,920 Speaker 8: and the answer is we do, and what we the 661 00:31:59,280 --> 00:32:03,840 Speaker 8: tournament in facts the widest possible audience in following obviously 662 00:32:03,920 --> 00:32:08,760 Speaker 8: the college game, and with the wider audience that introduces 663 00:32:09,440 --> 00:32:14,760 Speaker 8: more recreational we call them recreational betters, less frequent betters 664 00:32:15,160 --> 00:32:19,840 Speaker 8: to enjoy the enthusiasm and the excitement of the tournament. Now, 665 00:32:20,280 --> 00:32:24,200 Speaker 8: less regular betters are less familiar with the product and 666 00:32:24,240 --> 00:32:27,080 Speaker 8: the so what of that is we see about a 667 00:32:27,120 --> 00:32:34,640 Speaker 8: twenty percent increase in the proportion of pregame bets. 668 00:32:34,800 --> 00:32:37,240 Speaker 12: So non live bets, players who. 669 00:32:37,080 --> 00:32:39,040 Speaker 8: Are less familiar with the product will come and go, oh, 670 00:32:39,120 --> 00:32:41,760 Speaker 8: the game's going to start, I must get my bet on, 671 00:32:42,080 --> 00:32:45,480 Speaker 8: and those betters will be less familiar with the fact that, oh, 672 00:32:45,600 --> 00:32:48,440 Speaker 8: when the games on, there's a myriad of things that 673 00:32:48,480 --> 00:32:52,880 Speaker 8: I can I can bet on as well. So that's 674 00:32:53,120 --> 00:32:57,640 Speaker 8: the key point. Twenty percent more pregame betting. Because the 675 00:32:57,680 --> 00:33:00,920 Speaker 8: audience is much much wider, we have more higher concentration 676 00:33:01,000 --> 00:33:02,560 Speaker 8: of less regular vetters. 677 00:33:02,640 --> 00:33:04,959 Speaker 9: But Adam, in all seriousness, I mean the tournament, it's 678 00:33:04,960 --> 00:33:07,200 Speaker 9: a special time a season for you obviously, But you know, 679 00:33:07,920 --> 00:33:09,720 Speaker 9: I joke because you and I talk about you know, 680 00:33:09,760 --> 00:33:11,840 Speaker 9: South Africa, it's not rugby season. But talk to me 681 00:33:11,840 --> 00:33:13,760 Speaker 9: a little bit about international sports, you know, talk to 682 00:33:13,880 --> 00:33:16,040 Speaker 9: us about you know, Premier League, talk to us about soccer. 683 00:33:16,400 --> 00:33:20,520 Speaker 9: I mean, globally speaking, sports gambling has obviously been you know, 684 00:33:20,920 --> 00:33:23,040 Speaker 9: Europe and the rest of the world was before the US. 685 00:33:23,120 --> 00:33:25,320 Speaker 9: But you know, what does the world look like to 686 00:33:25,400 --> 00:33:26,760 Speaker 9: you now, and what does the world look like to 687 00:33:26,800 --> 00:33:28,000 Speaker 9: bet MGM. 688 00:33:28,560 --> 00:33:31,960 Speaker 8: First point is to make is that Bett MGM, the 689 00:33:32,040 --> 00:33:36,000 Speaker 8: joint venture between MGM Resort and in Tame, my two shareholders, 690 00:33:37,480 --> 00:33:40,760 Speaker 8: the joint venture's sole focus, my sole focus on our 691 00:33:40,760 --> 00:33:44,160 Speaker 8: business is sole focus is in North America. So we 692 00:33:44,200 --> 00:33:47,640 Speaker 8: are the We are a leading operator in North America, 693 00:33:47,680 --> 00:33:53,080 Speaker 8: which includes all of our North American regulated states, US 694 00:33:53,120 --> 00:33:58,240 Speaker 8: regulated states plus Ontario. We are the number one by 695 00:33:58,320 --> 00:34:01,080 Speaker 8: market share operator in Ontario, and we're looking forward to 696 00:34:01,480 --> 00:34:06,320 Speaker 8: the Province of Alberta regulating online sports betting and I 697 00:34:06,440 --> 00:34:11,920 Speaker 8: gaming probably the beginning of twenty twenty six. More broadly, however, 698 00:34:11,960 --> 00:34:18,799 Speaker 8: international sports, we're seeing strong and increasing interest in what 699 00:34:18,920 --> 00:34:20,520 Speaker 8: the Europeans call. 700 00:34:20,440 --> 00:34:21,920 Speaker 12: Football, what we call soccer. 701 00:34:23,000 --> 00:34:25,040 Speaker 8: And you know, as we look to next year where 702 00:34:25,120 --> 00:34:27,840 Speaker 8: we'll be hosting with in the US will be hosting 703 00:34:27,920 --> 00:34:31,520 Speaker 8: the Soccer World Cup, the Football World Cup, we are 704 00:34:31,560 --> 00:34:37,280 Speaker 8: anticipating that being a catalyst for soccer really taking off 705 00:34:37,800 --> 00:34:41,400 Speaker 8: as a one of the bread and butter betting sports 706 00:34:41,880 --> 00:34:44,120 Speaker 8: in the US. At the moment, of course, it's you know, 707 00:34:44,160 --> 00:34:48,000 Speaker 8: we've got the big three by volume, we've got football, basketball, 708 00:34:48,520 --> 00:34:54,200 Speaker 8: and baseball, with hockey's somewhat of a distant fourth alongside 709 00:34:54,680 --> 00:35:00,919 Speaker 8: it's hockey, tennis, soccer. I think post the World Cup 710 00:35:00,960 --> 00:35:04,600 Speaker 8: next year, we're going to see much deeper penetration of 711 00:35:04,640 --> 00:35:07,759 Speaker 8: soccer as a betting sport, which it is frankly everywhere 712 00:35:07,800 --> 00:35:12,080 Speaker 8: apart from the US. Soccer is the number one best 713 00:35:12,080 --> 00:35:17,200 Speaker 8: sport outside the US, excusely by some margin, and I 714 00:35:17,239 --> 00:35:21,800 Speaker 8: expect that we will see accelerated growth come next year's 715 00:35:22,560 --> 00:35:23,080 Speaker 8: World Cup. 716 00:35:23,840 --> 00:35:25,640 Speaker 2: I know we're running out of time, but since you 717 00:35:25,719 --> 00:35:28,920 Speaker 2: brought up Ontario and you're in a very strong market there, 718 00:35:29,960 --> 00:35:33,560 Speaker 2: the tariffs are not really affecting you, are they of 719 00:35:33,600 --> 00:35:37,640 Speaker 2: what's going on because it's yes, it's a physical product, 720 00:35:38,080 --> 00:35:41,279 Speaker 2: but it's not you're not bringing steel or aluminum or 721 00:35:41,320 --> 00:35:45,680 Speaker 2: anything like that. What has there been any impact from 722 00:35:45,760 --> 00:35:47,320 Speaker 2: the tariffs for you guys? 723 00:35:49,160 --> 00:35:54,839 Speaker 8: So we haven't seen direct impact from the tariffs from 724 00:35:54,840 --> 00:35:59,080 Speaker 8: a US perspective, we have of course seen a move 725 00:35:59,160 --> 00:36:03,759 Speaker 8: a decline in the exchange rate. The US dollars is 726 00:36:03,760 --> 00:36:06,640 Speaker 8: our is bet m GM's reporting currency. So obviously as 727 00:36:06,680 --> 00:36:12,239 Speaker 8: you as the Canadian dollar loss value, the value of 728 00:36:12,239 --> 00:36:18,800 Speaker 8: our in US terms, the value of our Canadian earnings. 729 00:36:18,840 --> 00:36:21,880 Speaker 8: It just converts at a lower rate, so that would 730 00:36:21,880 --> 00:36:25,840 Speaker 8: be the most direct impact we are seeing. But stepping 731 00:36:25,880 --> 00:36:29,480 Speaker 8: back on from a more macro perspective, we're not really 732 00:36:29,520 --> 00:36:34,359 Speaker 8: seeing any any indication of a slowdown. Our betters are 733 00:36:34,360 --> 00:36:37,560 Speaker 8: turning up as frequently as they have in the past. 734 00:36:38,880 --> 00:36:42,160 Speaker 8: Bet count you know how many bets our players are making. 735 00:36:43,360 --> 00:36:48,840 Speaker 8: It remains strong and the value per bet remains in line, 736 00:36:49,160 --> 00:36:52,239 Speaker 8: So we're not really seeing any impact of either the 737 00:36:52,320 --> 00:36:57,320 Speaker 8: tariffs or macro slow down in the US or Canadian economies. 738 00:36:57,560 --> 00:36:59,799 Speaker 2: Adam, we're better as we're a die hard bunch. We'll 739 00:37:01,920 --> 00:37:05,600 Speaker 2: we'll come, and we'll bet it. Adam Greenblad, Thank you, 740 00:37:05,680 --> 00:37:08,120 Speaker 2: sir for joining us on the Bloomberg Business of Sports. 741 00:37:08,920 --> 00:37:10,120 Speaker 12: Thank you for having me. 742 00:37:10,239 --> 00:37:14,080 Speaker 2: Our Thanks to bet MGM CEO Adam Greenblatt for joining us, 743 00:37:14,360 --> 00:37:19,040 Speaker 2: and thank you for my colleagues Damien Sassauer, Vanessa Perdomo 744 00:37:19,120 --> 00:37:22,040 Speaker 2: and Scarlett Fu. I'm Michael Barr. Tune in again next 745 00:37:22,080 --> 00:37:24,600 Speaker 2: week for the latest on the stories moving big money 746 00:37:24,600 --> 00:37:27,360 Speaker 2: in the world of sports. You're listening to The Bloomberg 747 00:37:27,400 --> 00:37:31,160 Speaker 2: Business of Sports from Bloomberg Radio around the world,