WEBVTT - Bloomberg Businessweek Weekend - February 1st, 2020 0:00:02.520 --> 0:00:06.240 This is Bloomberg Business Week from Bloomberg Radio. Hi, I'm 0:00:06.320 --> 0:00:08.680 Jason Kelly and I'm Carol Masser. Welcome to the weekend 0:00:08.800 --> 0:00:11.360 edition of Bloomberg Business Week. Over the next couple of hours, 0:00:11.480 --> 0:00:13.680 news of the week, insights from the magazine, and so 0:00:13.800 --> 0:00:16.000 much more. We had lots going on when it comes 0:00:16.040 --> 0:00:18.640 to the sports world, Absolutely so much going on because 0:00:18.720 --> 0:00:22.520 it's Super Bowl weekend. It is the big game. We 0:00:22.520 --> 0:00:25.200 were in Miami this week. We're gonna bring you next 0:00:25.280 --> 0:00:28.520 week a lot of the conversations that we had down there, 0:00:28.560 --> 0:00:30.639 But this week we had a little bit of a 0:00:30.720 --> 0:00:34.400 preview from the CEO and chairman of hard Rock International. 0:00:34.560 --> 0:00:37.559 It's their stadium that the big Game is being played in, 0:00:37.640 --> 0:00:39.640 and we stayed with sports. We've got a great story 0:00:40.080 --> 0:00:43.479 from Arah Boudway about Joe Sigh. He is the majority 0:00:43.479 --> 0:00:46.239 owner of the Brooklyn Nets. Only last year became that 0:00:46.760 --> 0:00:50.080 and it happened. Jason, of course, talk about timing just 0:00:50.159 --> 0:00:52.800 before a controversy that would threaten the NBA's relationship with 0:00:52.880 --> 0:00:56.520 its most important overseas market. We're talking about China well, 0:00:56.560 --> 0:00:59.360 and we talk about China and the NBA also with 0:00:59.440 --> 0:01:03.120 Chris Paul All, He's an NBA star also the president 0:01:03.400 --> 0:01:06.959 of the Players Association, so he has some thoughts on 0:01:07.040 --> 0:01:10.000 that as well as building out his own business. Speaking 0:01:10.000 --> 0:01:12.440 of presidents, there's a lot of mansions down in Palm 0:01:12.520 --> 0:01:15.680 Beach just near the president's private club. We're talking about 0:01:15.720 --> 0:01:18.280 Moral Lago and for some reason they're not selling. And 0:01:18.319 --> 0:01:20.200 speaking of mar Lago, we know a lot of business 0:01:20.280 --> 0:01:23.920 gets done. They're including about trade. We're going to bring 0:01:23.959 --> 0:01:26.800 you another angle on the US trade war with China. 0:01:27.040 --> 0:01:29.839 Phase one of the US China trade deal. It is done, Jason. 0:01:29.920 --> 0:01:31.920 We know that tower still exists on some Chinese good 0:01:31.920 --> 0:01:34.920 and despite the on again offic intentions between the two countries, 0:01:35.160 --> 0:01:37.840 a move last year by the US actually gave Chinese 0:01:37.959 --> 0:01:40.680 solar panels a bit of a gift. It did, and 0:01:40.720 --> 0:01:44.600 this is one of these unexpected benefits or detriments, depending 0:01:44.640 --> 0:01:48.320 on your side of the equation to these trade negotiations. 0:01:48.320 --> 0:01:50.720 Bryan peck House is here with us. He's going to 0:01:50.800 --> 0:01:55.200 tell us all about it. So this is a booming business. Obviously, 0:01:55.280 --> 0:01:59.400 we talk a lot about alternative energy, and yet I'm 0:01:59.440 --> 0:02:01.200 not sure any but he knew this was really the 0:02:01.280 --> 0:02:04.800 forefront or a flash point in the trade wars. Yeah. Absolutely. 0:02:05.160 --> 0:02:08.040 One of the first tariffs that Trump imposed was on 0:02:08.080 --> 0:02:12.280 solar panels. It was two years ago this month, and 0:02:13.320 --> 0:02:17.000 it definitely rejiggered the entire industry, and they run up 0:02:17.040 --> 0:02:19.919 to him making the decision. The market slowed down considerably 0:02:19.919 --> 0:02:22.960 because we knew he was gonna imposed tariffs, but how big, 0:02:23.040 --> 0:02:26.560 how long, and so it really slowed down the development 0:02:26.720 --> 0:02:29.639 solar farms in the desert, on rooftops, but more than 0:02:29.680 --> 0:02:31.760 the big products in the desert went around the country, 0:02:32.240 --> 0:02:35.320 and then he imposed these tariffs and people were like, 0:02:35.320 --> 0:02:38.160 wait a minute, like we didn't do anything to deserve 0:02:38.280 --> 0:02:42.160 this fight between US and China. But going back a 0:02:42.200 --> 0:02:45.799 little bit further, Uh, the US makes very very few panels. 0:02:46.080 --> 0:02:50.480 It relies very heavily on Asia. Chinese companies are the 0:02:50.520 --> 0:02:53.880 big makers. Are these products products not also from China, 0:02:54.320 --> 0:02:58.280 from China, but also from Malaysia, from Thailand, from Vietnam, 0:02:58.360 --> 0:03:00.960 And so it's been a years long sort fight between 0:03:01.800 --> 0:03:04.480 the countries on this. It predated Trump, but then he 0:03:04.520 --> 0:03:06.679 put his imprint on it two years ago. Well that's 0:03:06.760 --> 0:03:08.600 I think some history is important here in terms of 0:03:08.680 --> 0:03:10.919 the U s trying to develop, right, it's solar industry 0:03:11.000 --> 0:03:14.600 Brian and then you know allegations or realities of the 0:03:14.680 --> 0:03:17.000 Chinese undercutting in terms of pricing and really kind of 0:03:17.000 --> 0:03:21.120 owning this market. Yeah. Absolutely. I mean China has dominated 0:03:21.160 --> 0:03:23.839 this market because they have the cheapest panels out there 0:03:24.120 --> 0:03:26.440 for many cases, the cheapest panels, and it's hard to 0:03:26.520 --> 0:03:29.120 compete with that. It's more expensive in the US to 0:03:29.160 --> 0:03:31.560 develop it and to buy it in the US. So 0:03:31.600 --> 0:03:34.200 if you're you know, solar farm developer, and you're you're 0:03:34.200 --> 0:03:37.760 competing against wind, natural gas, fire power plants, you know, 0:03:37.840 --> 0:03:40.560 if you're trying to go and you know inspire boom 0:03:40.560 --> 0:03:42.960 of solar, you're gonna go probably the cheapest form of 0:03:42.960 --> 0:03:46.240 solar cost provider. Right. That means China, that means Asia, 0:03:46.480 --> 0:03:48.720 and they've come to dominate the market. And by the 0:03:48.840 --> 0:03:52.160 Tom Trump came into impose these tariffs, there was so 0:03:52.320 --> 0:03:55.320 little manufacturing of solar panels in this country. A lot 0:03:55.320 --> 0:03:58.200 of people have to depend on Asia for it. And 0:03:58.240 --> 0:04:01.960 so take us to this moment. Air folks from the industry, 0:04:02.000 --> 0:04:05.080 they start literally like calling their member of Congress, They 0:04:05.120 --> 0:04:07.320 start lobbying, they start doing all the things that an 0:04:07.360 --> 0:04:11.200 industry does to try and get some action. They win. 0:04:11.680 --> 0:04:16.000 They think and then they start to realize, wait a second, 0:04:16.120 --> 0:04:19.040 this wasn't exactly what we thought we were going to get. Yeah, exactly. 0:04:19.120 --> 0:04:21.280 So when he Trump and posted harffs two years ago, 0:04:21.600 --> 0:04:24.479 it was on the entire industry and developers and big 0:04:24.480 --> 0:04:26.560 farms were like, wait a minute, Like a lot of 0:04:26.560 --> 0:04:30.559 the US manufacturers focused greatly on rooftops, and we do 0:04:30.960 --> 0:04:33.359 these farms in the desert elsewhere in the country, and 0:04:33.400 --> 0:04:35.200 these panels are much bigger ones that they use. They're 0:04:35.279 --> 0:04:38.000 much heavier. You can have one person I couldn't do it, 0:04:38.000 --> 0:04:39.760 but one person bringing up the solar panel into a 0:04:39.839 --> 0:04:42.800 roof the once goes in the desert, you need two 0:04:42.800 --> 0:04:44.920 people will do it very very heavy. You're talking about 0:04:44.920 --> 0:04:48.120 American utilities, right, really needed access to these really really 0:04:48.160 --> 0:04:51.080 big panels. Well, yeah, they're gonna buy the solar power, 0:04:51.160 --> 0:04:53.560 yes they do, but it's it's developers these projects that 0:04:53.600 --> 0:04:56.200 do it on behalf or for these utilities in that case. 0:04:56.880 --> 0:05:00.520 Um So when this happened, like they these the industry, develops, 0:05:00.520 --> 0:05:02.480 these big farms said wait a minute, like this is 0:05:02.520 --> 0:05:04.960 attacking us. I think you have the wrong sort of 0:05:04.960 --> 0:05:07.520 culprit here. So they tried to go get an exemption, 0:05:07.839 --> 0:05:09.919 and they said, you should exempt all solar farms in 0:05:09.960 --> 0:05:12.440 this country. They got a no go on that. So 0:05:12.480 --> 0:05:13.960 I thought, how can we go in sort of craft 0:05:13.960 --> 0:05:16.960 and exemption to this policy that would help us but 0:05:17.080 --> 0:05:20.480 not hurt the overall policy. So they requested it's very, 0:05:20.560 --> 0:05:23.559 very complicated. So they requested an exemption on a certain 0:05:23.600 --> 0:05:26.480 kind of solar panel for big farms in the desert, 0:05:26.520 --> 0:05:30.239 not rooftop, a certain size, a certain amount of general 0:05:30.240 --> 0:05:33.040 electricity generated. And they fall for more than a year 0:05:33.080 --> 0:05:35.480 for this, and then Juno last year, out of nowhere, 0:05:35.520 --> 0:05:37.680 the administration says, wait a minute, will give us to you. 0:05:37.960 --> 0:05:40.520 But they gave a blanket exemption to all two sided 0:05:40.520 --> 0:05:43.720 solar panels that and which basically newter or like new. 0:05:43.800 --> 0:05:46.440 The gated a lot of the strength of the efficacy 0:05:46.560 --> 0:05:48.960 all the actual tariff, So get a little wonky. So 0:05:48.960 --> 0:05:50.880 it's supposed to be very narrow. Now, No, no, this 0:05:50.960 --> 0:05:52.720 is important I think, because right, this is what it's 0:05:52.760 --> 0:05:54.960 all about. But it was the biggest versions. I think 0:05:54.960 --> 0:05:58.640 they're called by facials, right, these two sided panels, so 0:05:58.720 --> 0:06:01.080 that's what they wanted, right, and which are used by 0:06:01.160 --> 0:06:05.080 utilities and others. And yet it became a much broader plan. Yeah, 0:06:05.160 --> 0:06:07.960 so you can do my facial on small ending. But 0:06:08.120 --> 0:06:11.680 like they wanted the exemption for larglarges, large and facial, 0:06:11.839 --> 0:06:14.839 and the exemption was for everything and doing so you 0:06:14.839 --> 0:06:17.440 could even use the two sided panels on the roof. 0:06:17.640 --> 0:06:20.160 You could do so theoretically, so you can then buy 0:06:20.240 --> 0:06:23.960 solar panels for any but you know, two sided for anything, 0:06:24.279 --> 0:06:26.400 and then to get around the tariffs. And that's Brian 0:06:26.480 --> 0:06:29.320 Eck how's chatting about the business of solar some of 0:06:29.320 --> 0:06:33.760 those unintended consequences. This is a smart story. Well, unintended consequences. 0:06:33.839 --> 0:06:36.360 Jason is so right on the money because I think 0:06:36.680 --> 0:06:38.840 we talk about trade, we use it in these broad 0:06:38.880 --> 0:06:41.440 macro terms, but it's complicated and there are a lot 0:06:41.440 --> 0:06:43.679 of moving parts. And when you go and strive for something, 0:06:43.720 --> 0:06:45.520 you think X, y Z is going to get done 0:06:45.520 --> 0:06:47.760 and then something completely outs gets done. You said something 0:06:47.760 --> 0:06:50.000 in motion, and you're not sure what the ramifications are 0:06:50.080 --> 0:06:53.240 going to be. The latest issue includes a strategy section, Jason, 0:06:53.279 --> 0:06:55.320 and it's all about kind of advice for people who 0:06:55.320 --> 0:06:59.279 are working maybe alone and groups don't have such a 0:06:59.360 --> 0:07:03.120 lovely part like we do every day to bounce things 0:07:03.120 --> 0:07:05.240 off of can you imagine we had to skype each 0:07:05.240 --> 0:07:07.720 other at the time. That's what folks are doing. They 0:07:07.720 --> 0:07:10.000 are doing that. Let's bring in someone who was involved 0:07:10.000 --> 0:07:13.400 in the section demitris um demitro. Good to have you here. 0:07:13.720 --> 0:07:16.640 So many people are working on their own and they 0:07:16.680 --> 0:07:19.280 need a little support. Yeah, I mean, we've got so 0:07:19.280 --> 0:07:22.559 many freelancers out there, right, or people working remotely. Maybe 0:07:22.560 --> 0:07:25.440 they work for a company, but they're far away. Um, 0:07:25.520 --> 0:07:28.840 And so they're handful startups that are catering to to 0:07:29.520 --> 0:07:31.520 you know, you might even be a PhD student writing 0:07:31.520 --> 0:07:34.840 your dissertation and you're a bit of a procrastinator, you know. 0:07:34.880 --> 0:07:37.080 I know you guys don't know too much about procrastination. 0:07:37.160 --> 0:07:42.000 I mean, because it's also like but um, so we 0:07:42.040 --> 0:07:44.440 write about these companies. They're kind of like these online 0:07:44.440 --> 0:07:47.200 work clubs and you log on and you find a 0:07:47.240 --> 0:07:51.000 work buddy and you can either go the focus mate route. 0:07:51.040 --> 0:07:52.840 That's one of the companies we write about, which is 0:07:52.880 --> 0:07:55.880 like fifty minute increments, quick quick quick, or you can 0:07:56.000 --> 0:07:59.080 really commit to like three point five hour work sessions 0:07:59.120 --> 0:08:01.320 with an online buddy so to beat you tell us 0:08:01.480 --> 0:08:03.360 how it works. I mean, this is literally like you 0:08:03.400 --> 0:08:06.160 and I would log in from our home offices like 0:08:06.280 --> 0:08:09.720 hang out. It's it's pretty simple and straightforward. I mean, basically, 0:08:09.760 --> 0:08:13.600 that's it. There's an idea behind it that a strong 0:08:13.680 --> 0:08:18.640 motivator is simply the presence of somebody else observing you 0:08:18.680 --> 0:08:21.440 while you're working or kind of aware of whether you're 0:08:21.440 --> 0:08:24.040 working or not. You know, if you're logged on and 0:08:24.080 --> 0:08:26.880 I'm your buddy on the other side of your computer screen, 0:08:27.360 --> 0:08:29.200 you know, if you decide to just walk away or 0:08:29.240 --> 0:08:32.199 stop working on that one, you know, memo, You've got 0:08:32.200 --> 0:08:34.280 a knock off in the next hour, I'll know it, 0:08:34.760 --> 0:08:37.080 and you know that I'll know it. So maybe you 0:08:37.120 --> 0:08:39.000 won't get up and walk away from your computer in 0:08:39.040 --> 0:08:41.240 that next hour and you'll actually get it. And maybe 0:08:41.320 --> 0:08:43.680 even just like showing up to your desk at eight 0:08:43.720 --> 0:08:46.319 am exactly because that other person is going to be 0:08:46.360 --> 0:08:48.880 there waiting for you doesn't work. I mean, you know, 0:08:48.960 --> 0:08:52.040 for the people that our reporter talked to it, they 0:08:52.080 --> 0:08:55.480 said that it really worked like beautifully. One guy that 0:08:55.559 --> 0:08:59.360 she interviewed who works remotely, has a has a part 0:08:59.360 --> 0:09:02.120 time permanent job but is remote and also runs his 0:09:02.200 --> 0:09:06.000 own business. This thing really regimented him. He logs on 0:09:06.040 --> 0:09:08.760 at eight am. You know, he gets a lot done. 0:09:08.840 --> 0:09:12.120 He's far more productive, and he ends in the afternoon 0:09:12.160 --> 0:09:14.480 earlier so that he can then, like you know, get 0:09:14.520 --> 0:09:17.320 to other tasks connected to the running of his business. 0:09:17.640 --> 0:09:20.280 Too expensive a month, It depends Focus, Yeah, it depends. 0:09:20.280 --> 0:09:22.360 I mean there are different price points for the two, 0:09:22.760 --> 0:09:25.720 you know, so UM cave d is a is a 0:09:25.760 --> 0:09:28.920 different format and that you can do it in person. 0:09:29.160 --> 0:09:32.160 They have spaces in Los Angeles and New York where 0:09:32.160 --> 0:09:35.439 you can actually show up, but there's is also one 0:09:35.480 --> 0:09:38.280 where you can log on and they're much more bigger commitment, 0:09:38.440 --> 0:09:42.520 more hours, more intense, maybe projects that you need people 0:09:42.679 --> 0:09:45.640 to help you sort of you know again find that motivation. 0:09:46.200 --> 0:09:49.840 So it sounds it sounds kind of like, wait, is 0:09:49.880 --> 0:09:52.800 this all it really takes? But in a way, it 0:09:53.000 --> 0:09:54.679 is all it really takes. I think we're going to 0:09:54.840 --> 0:09:57.920 see whether how much these work. They're very new outfits, 0:09:58.360 --> 0:10:00.760 UM a couple of Focus made His definitely attracted some 0:10:00.800 --> 0:10:03.720 funding that they shared with us um a million dollars 0:10:03.760 --> 0:10:07.320 so far, and cave Day has not revealed how much 0:10:07.360 --> 0:10:09.960 they've brought in. But I think that we're at the 0:10:10.040 --> 0:10:12.640 stage where we're going to start to see more interested 0:10:12.800 --> 0:10:14.880 in companies and outfits like that. And you guys do 0:10:14.880 --> 0:10:17.080 a nice job sort of putting this on a continuum, 0:10:17.160 --> 0:10:20.320 right in this sense of like we had offices, then 0:10:20.440 --> 0:10:24.160 we kind of dispersed in many ways, right like hacker spaces. 0:10:24.600 --> 0:10:27.520 Then we moved to the shared work spaces, right, and 0:10:27.559 --> 0:10:30.000 that gave rise to we work, and we see what 0:10:30.080 --> 0:10:32.760 that led to. Now there are a lot of these clubs. 0:10:33.160 --> 0:10:36.440 Clubs now like the Wing, and there are similar ones 0:10:36.480 --> 0:10:38.440 where you know you're maybe going to bring together a 0:10:38.440 --> 0:10:40.800 group of like minded people. The Wing is geared towards women. 0:10:41.120 --> 0:10:43.320 It does more than just bring you together to work. 0:10:43.360 --> 0:10:46.480 It does events and talks and so this is just 0:10:46.679 --> 0:10:51.079 another sort of evolution in this. We've got so many 0:10:51.120 --> 0:10:54.160 people out there working on their own who, whether they 0:10:54.160 --> 0:10:56.880 need support or ideas or people to brainstorm with or 0:10:56.920 --> 0:11:00.000 whatever it is, you know, can tap into these various 0:11:00.800 --> 0:11:03.040 resource We'll talk about these peer support groups because that's 0:11:03.080 --> 0:11:05.120 the other kind of layer that you guys get into. 0:11:05.160 --> 0:11:07.800 It's people who are stressed out, and you really get 0:11:07.840 --> 0:11:09.600 into kind of how you're feeling, how you're dealing with 0:11:09.640 --> 0:11:13.000 situations exactly, isn't your peers And there are there are 0:11:13.000 --> 0:11:16.000 companies and groups that are getting together seems to be 0:11:16.040 --> 0:11:19.839 happening a lot more in Silicon Valley in San Francisco. UM, 0:11:19.920 --> 0:11:23.520 and these are targeting a higher level executive I would say, 0:11:23.600 --> 0:11:26.600 so far. You know, there's sort of UM, the Next 0:11:27.000 --> 0:11:31.240 Generation Young President's Organization, Young Presidents Organization you might have 0:11:31.280 --> 0:11:34.280 heard of. It has been around for many, many, many decades, 0:11:34.559 --> 0:11:37.040 and in the last five or so years, maybe ten years, 0:11:37.120 --> 0:11:40.040 has really been trying to kind of become a little 0:11:40.040 --> 0:11:42.360 bit more current and deal with the digital age. But 0:11:42.480 --> 0:11:45.360 there are startups now in Silicon Valley and in San 0:11:45.360 --> 0:11:48.559 Francisco that are all about bringing you know, very under 0:11:48.640 --> 0:11:53.319 intense pressure, you know, founders of companies, CEO s UM 0:11:53.360 --> 0:11:57.760 together to really be among peers. So that's why I think, 0:11:57.800 --> 0:12:00.760 you know, it's attracting that level and to try as 0:12:00.840 --> 0:12:04.360 best they can to actually open themselves up and unload 0:12:04.720 --> 0:12:07.800 and talk about how they're really doing, how they're feeling, 0:12:07.800 --> 0:12:10.760 where they think the pressures are coming from. UM. There's 0:12:10.840 --> 0:12:14.480 so much that that I think really prevents people in 0:12:14.520 --> 0:12:19.520 those positions from doing that, sometimes time being a big factor, right, UM. 0:12:19.559 --> 0:12:22.800 And so these are organized as like dinners or in 0:12:22.920 --> 0:12:25.960 ways that also feel like maybe they're doing something else 0:12:25.960 --> 0:12:28.240 in addition to going and being among a group of 0:12:28.280 --> 0:12:31.320 peers and sharing their feelings. And one of the things 0:12:31.360 --> 0:12:33.840 you point out in that story is essentially that they're 0:12:33.840 --> 0:12:35.960 set up in such a way that if you're at 0:12:36.000 --> 0:12:38.040 it and you feel like you're just sort of networking, 0:12:38.120 --> 0:12:40.120 you're kind of doing it wrong, right. I mean, this 0:12:40.240 --> 0:12:43.559 is meant to establish relationships, maybe at a deeper level, 0:12:43.559 --> 0:12:46.319 and you give a nice anecdote about people, essentially saying 0:12:46.760 --> 0:12:49.240 how are you doing? No, really, how are you doing? 0:12:49.360 --> 0:12:52.720 You know, and this idea of you know, actually getting 0:12:52.840 --> 0:12:55.040 to know people. My favorite part I have to say 0:12:55.040 --> 0:12:58.440 of this section h is the humility quiz. And so 0:12:58.520 --> 0:13:01.120 you're gonna have to go back and listen to our 0:13:01.200 --> 0:13:03.480 daily radio show to see Carol and Me take it. 0:13:03.520 --> 0:13:06.040 But it has uh some pretty useful questions. Did you 0:13:06.040 --> 0:13:09.120 take it? Um? I took it. I'm not going to reveal, 0:13:09.559 --> 0:13:12.199 you know, how humble or not I am, but people 0:13:12.200 --> 0:13:15.000 should take a look at that humility is, you know, 0:13:15.120 --> 0:13:17.840 kind of a buzzy thing right now. I mean, there 0:13:17.960 --> 0:13:23.160 is real research, academic research research by groups um like Hogan, 0:13:23.240 --> 0:13:26.960 which we got this quiz from, that does personality assessments, 0:13:27.000 --> 0:13:30.520 that suggests that humility and being humble is a great 0:13:30.800 --> 0:13:33.640 quality for a leader, that these are people who don't 0:13:33.640 --> 0:13:36.000 want the spotlight and who are willing to give credit 0:13:36.040 --> 0:13:39.319 where credit is due. UM. I don't know how much 0:13:39.320 --> 0:13:40.800 of that we really have out there. You know, we 0:13:40.880 --> 0:13:43.559 have evolutions of the types of leaders we've wanted as 0:13:43.640 --> 0:13:45.920 the heads of our companies. Right if you think back 0:13:45.920 --> 0:13:47.960 to the seventies and the eighties and the types of 0:13:48.040 --> 0:13:51.480 CEOs that we had, and charisma and brash and really 0:13:51.800 --> 0:13:56.640 things that maybe shareholders or maybe more encouraged by UM, 0:13:56.679 --> 0:13:59.200 but that led to maybe a lot of promises that 0:13:59.240 --> 0:14:03.520 couldn't capped and risks. So now it's going the other 0:14:03.520 --> 0:14:06.280 way and it's saying you can be humble. That's Demitra 0:14:06.480 --> 0:14:10.160 Cassands and that's our strategy section this week. And I 0:14:10.200 --> 0:14:12.360 think it's so pertinent right now because Jason, more and 0:14:12.360 --> 0:14:14.679 more people are working at home on their own and 0:14:14.720 --> 0:14:17.280 they're getting a little lonely. So there are companies and 0:14:17.400 --> 0:14:19.280 apps to help you deal with that well and maybe 0:14:19.320 --> 0:14:21.560 a little less productive, and so they need someone to 0:14:21.640 --> 0:14:23.920 keep them on as someone literally on the other end 0:14:23.920 --> 0:14:28.000 of the basically like to you exactly get back to work. 0:14:28.040 --> 0:14:30.120 He became the majority owner of the Brooklyn Nets only 0:14:30.200 --> 0:14:33.280 last year, just before controversy that would threaten the NBA's 0:14:33.320 --> 0:14:36.800 relationship with its most important overseas market, China. Jason, We've 0:14:36.800 --> 0:14:39.360 talked so much about this, We've talked a lot about him, 0:14:39.440 --> 0:14:42.680 and he's only becoming more prominent. Previously prominent in the 0:14:42.720 --> 0:14:44.800 world of business, now very prominent in the world of sports. 0:14:44.800 --> 0:14:47.360 We're talking about Joe Sigh and we're talking with Ira 0:14:47.440 --> 0:14:52.440 Budway here in New York City. Phenomenal profile, incredibly timely. 0:14:52.880 --> 0:14:56.680 Take us back to October when this guy has to 0:14:56.840 --> 0:15:00.120 come out really for his first public statement as the 0:15:00.160 --> 0:15:03.560 majority owner of a major team amid a controversy, right, 0:15:03.600 --> 0:15:06.200 and it starts with, as people probably remember, the Darryl 0:15:06.240 --> 0:15:08.960 Morey tweet, the general manager of the Houston Rockets tweeting 0:15:08.960 --> 0:15:12.360 solidarity with the protesters in Hong Kong, deleting it. But 0:15:12.480 --> 0:15:15.960 the whole thing gets going, and Joe told me he 0:15:16.080 --> 0:15:18.840 was in his apartment in Hong Kong, uh and he 0:15:18.880 --> 0:15:21.440 gets a call from the NBA and they say, you know, 0:15:21.600 --> 0:15:23.640 this is an issue. There's already a lot of reaction 0:15:23.680 --> 0:15:26.680 on social media and the mainland China, like we're we're 0:15:26.720 --> 0:15:29.520 monitoring it, but this could be a thing. And he's 0:15:29.520 --> 0:15:31.560 in a great position right here. You think about someone 0:15:31.560 --> 0:15:36.120 who understands China. Great is relative great, It's been a 0:15:36.200 --> 0:15:39.120 very interesting position. What was he thinking at the time, 0:15:38.880 --> 0:15:42.960 And basically like, i am I have to say something. 0:15:43.440 --> 0:15:47.360 I you know, I'm Chinese, born in Taiwan, do business, 0:15:47.440 --> 0:15:50.600 live in Hong Kong, mid the protests. You know, own 0:15:50.680 --> 0:15:54.240 an NBA team, newest NBA owner, big market, do business 0:15:54.280 --> 0:15:56.760 in China. You know, I'm I'm And he's flying to 0:15:56.800 --> 0:15:59.240 Shanghai in a couple of days because the Nets are 0:15:59.280 --> 0:16:02.200 playing the Lakers there. So he basically felt like he 0:16:02.240 --> 0:16:05.760 had to come out and say something. And so he 0:16:05.800 --> 0:16:10.520 says something, and as with just about everything in this case, 0:16:11.080 --> 0:16:14.120 not everyone's happy with it, but what was ultimately the 0:16:14.160 --> 0:16:17.239 reaction and what was the effect on him and the team. 0:16:17.400 --> 0:16:20.000 So he comes out with this letter that he posted 0:16:20.000 --> 0:16:24.440 on Facebook that says, basically, everyone needs to understand how 0:16:24.520 --> 0:16:26.440 Chinese people are going to feel about this, and he 0:16:26.520 --> 0:16:29.040 basically sort of spoke for all of them, or it 0:16:29.120 --> 0:16:30.960 said he was speaking for all of them and said, 0:16:31.440 --> 0:16:33.880 you know, this is really a third rail issue there, 0:16:34.360 --> 0:16:37.360 we're talking about territorial integrity. And he couched the Hong 0:16:37.440 --> 0:16:40.080 Kong protests as a separatist movement, and that was the 0:16:40.120 --> 0:16:43.000 sort of controversial thing. That's the framing the Chinese government uses, 0:16:43.280 --> 0:16:46.040 not always the framing the protesters used. But he wanted 0:16:46.080 --> 0:16:49.960 to say, look, this is why this is so sensitive 0:16:50.000 --> 0:16:52.600 and delicate, and you've got to be careful. Um. And 0:16:53.000 --> 0:16:55.720 he says, basically, he got a lot of people saying, thanks, 0:16:55.760 --> 0:16:58.160 I didn't know this context. There were a lot of 0:16:58.160 --> 0:17:00.920 people were saying, look, you're just parenting the Chinese Party 0:17:00.960 --> 0:17:04.840 state line here um. And he, you know, he stuck 0:17:04.880 --> 0:17:06.280 by it. When I talked to him, he said, look, 0:17:06.320 --> 0:17:08.480 I really think it what it is a severatist moment 0:17:08.520 --> 0:17:11.520 if you look carefully, and so you know, and and 0:17:11.640 --> 0:17:13.800 it's unclear, you know, there are people who suggest, well, 0:17:13.800 --> 0:17:15.800 look he has to say that he can't alienate. He 0:17:15.800 --> 0:17:20.280 has a lot to lose, exactly. And so I put 0:17:20.320 --> 0:17:22.560 that to him and he said, no, I spoke my mind. 0:17:22.600 --> 0:17:25.960 That letters what I what I believe. And so remind 0:17:26.119 --> 0:17:30.360 us why he is as candidly, as powerful and rich 0:17:30.400 --> 0:17:32.560 as he is. This is a guy who came to 0:17:32.640 --> 0:17:36.000 this country, went to Yale, scraps his way onto the 0:17:36.040 --> 0:17:39.200 lacrosse team, I think, and then meet the guy named 0:17:39.280 --> 0:17:41.760 Jack Mob. I mean, it's an unbelievable story, a really 0:17:41.760 --> 0:17:44.000 remarkable story, and there's really you know, and talking to 0:17:44.040 --> 0:17:46.160 a lot of people. He knows a lot of people 0:17:46.400 --> 0:17:48.640 in very powerful people in the world, and they say 0:17:48.640 --> 0:17:51.360 there's really nobody like him in terms of that position 0:17:51.400 --> 0:17:54.760 that he occupies. So yeah, he born in Taiwan, comes 0:17:54.760 --> 0:17:56.680 to the US at age thirteen, goes to a prep 0:17:56.720 --> 0:18:01.040 school in New Jersey, you know, elite institution, and uh 0:18:01.080 --> 0:18:04.800 there he starts really quickly assimilating, learns English, loves play sports, 0:18:04.800 --> 0:18:08.240 plays lacrosse, plays football, goes to Yale, gets on the 0:18:08.320 --> 0:18:11.720 lacrosse team there. Uh, makes a ton of friends that way. 0:18:12.280 --> 0:18:14.720 Goes to law school at Yale, where his father had 0:18:14.760 --> 0:18:17.520 gone was the first Taiwan He's graduate from Yale Law 0:18:17.880 --> 0:18:20.800 and then works his way along. He's at a shop 0:18:20.840 --> 0:18:23.800 called Investor a B looking for private equity deals in 0:18:23.840 --> 0:18:26.359 Asia based out of Hong Kong. Somebody says, hey, you 0:18:26.359 --> 0:18:28.959 should look up this guy, Jack Mab. This is right 0:18:29.040 --> 0:18:32.280 after that they basically started Ali Bab. But he goes 0:18:32.320 --> 0:18:34.000 to meet him and says, I want to throw in 0:18:34.080 --> 0:18:35.960 my lot with this guy. And the rest you know 0:18:36.040 --> 0:18:38.920 its history, but he became the sort of the bridge 0:18:38.960 --> 0:18:42.240 to the US and the West for Ali Bab well. 0:18:42.280 --> 0:18:46.639 And in many ways that's a really important point to emphasize, 0:18:46.640 --> 0:18:49.919 because Jack mas this larger than life character, you know, 0:18:50.320 --> 0:18:53.159 so sort of out there being in a lot of ways, 0:18:53.600 --> 0:18:56.720 Joe seems to be the guy who goes into the boardrooms, 0:18:56.880 --> 0:18:59.240 talks to the private equity guys, to venture capitalist, to 0:18:59.280 --> 0:19:02.240 Wall Street, to anybody. He really smoothed the way in 0:19:02.320 --> 0:19:04.560 many ways for what Ali Baba becomes, right, And that's 0:19:04.560 --> 0:19:06.320 what Jack Mots told me when I talked to him 0:19:06.320 --> 0:19:08.640 about it. He said, you know this, there were times 0:19:08.640 --> 0:19:10.080 where I'd be in a room with a bunch of 0:19:10.080 --> 0:19:13.840 finance types and Jack calls himself street guy in the US, 0:19:13.960 --> 0:19:16.320 and I make them all upset with something I said, 0:19:16.520 --> 0:19:19.360 and then Joe would smooth it over um. And that 0:19:19.359 --> 0:19:22.679 that was he relied on him to translate personally the 0:19:22.720 --> 0:19:25.439 annual letters that he would write to shareholders in the world. 0:19:26.160 --> 0:19:28.200 Joe was the one who took Jack's vision and said, 0:19:28.240 --> 0:19:30.680 this is what I know what you mean, and I'm 0:19:30.680 --> 0:19:33.120 going to make sure everyone outside knows what you mean too. 0:19:33.160 --> 0:19:35.600 And that's Ira boot Away. He's got a couple stories 0:19:35.600 --> 0:19:38.920 in the magazine this week, once about gambling. This one 0:19:39.280 --> 0:19:42.440 is about a guy who made a pretty good bet 0:19:42.640 --> 0:19:44.800 on buying an NBA team. Yeah, he did make a 0:19:44.800 --> 0:19:47.400 good bet, but talk about his timing because he became 0:19:47.440 --> 0:19:50.240 the majority owner, as we heard from Ira just before 0:19:50.280 --> 0:19:54.120 that controversy that really um put to test the NBA's 0:19:54.119 --> 0:19:56.399 relationship with China. This is a huge market for them, 0:19:56.400 --> 0:19:59.160 an important market. It is in many ways the future. 0:19:59.720 --> 0:20:03.240 And Josiah sitting at this great intersection of kind of 0:20:03.359 --> 0:20:07.320 understanding East and West, well exactly. We often say someone 0:20:07.400 --> 0:20:10.640 is uniquely positioned. He really is uniquely positioned in this case, 0:20:10.760 --> 0:20:13.840 with some two D venues including cafes, hotels, casinos, live 0:20:13.920 --> 0:20:17.320 music and the rock Shop, and within seventies six countries, 0:20:17.359 --> 0:20:20.199 Hard Rock International is also Jason going to be on 0:20:20.359 --> 0:20:23.200 everyone's radar for the Big game. First, of course, because 0:20:23.240 --> 0:20:26.400 the Super Bowl is gonna be played in hard rock Stadium, right, 0:20:26.520 --> 0:20:29.560 and there's gonna be a big ad and it's gonna 0:20:29.600 --> 0:20:32.200 be one I predict that we're gonna be talking about 0:20:32.240 --> 0:20:35.679 in part because one of the Stars is j Lo. 0:20:35.880 --> 0:20:38.359 She's also performing at the Big Game. Jim Allen is 0:20:38.400 --> 0:20:41.040 here with us, back with us, I should say, great 0:20:41.119 --> 0:20:44.520 to see you. A big week obviously for the whole 0:20:44.960 --> 0:20:47.000 enterprise in a lot of ways. Tell us what this 0:20:47.040 --> 0:20:51.320 means for the company. Oh amazingly excited about obviously Super 0:20:51.359 --> 0:20:54.080 Bowl Week and having a commercial you know, as part 0:20:54.080 --> 0:20:56.760 of the halftime festivities for a Super Bowl the hundred 0:20:56.800 --> 0:20:59.520 year anniversary of the NFL at hard Rock Stadium. So 0:20:59.560 --> 0:21:01.679 tell us about why. I mean, you guys have not 0:21:01.760 --> 0:21:05.280 done right and add at the Super Bowl, So why 0:21:05.280 --> 0:21:07.119 why is now the right time? You know? It all 0:21:07.200 --> 0:21:09.840 kind of came together with the opening of the world's 0:21:10.119 --> 0:21:13.040 first guitar shaped hotel, the hundred year anniversary of the 0:21:13.119 --> 0:21:16.159 NFL Hard Rock Stadium, and it just seemed like, if 0:21:16.160 --> 0:21:18.040 we're going to be involved, you know, let's get involved 0:21:18.040 --> 0:21:20.000 on a big time basis. But Jamal and tell us 0:21:20.040 --> 0:21:23.280 about the Super Bowl audience. What is it about that 0:21:23.320 --> 0:21:24.960 audience that you know, man, this is a place you 0:21:24.960 --> 0:21:27.439 want to run an ad. The most watched event in 0:21:27.440 --> 0:21:30.040 the world, over a hundred million people see this particular 0:21:30.040 --> 0:21:33.919 event that's just on the TV broadcast itself. When you 0:21:33.960 --> 0:21:36.400 look at them online. It certainly creates a lot more 0:21:36.440 --> 0:21:39.000 media impressions, you know, for a global basis for the 0:21:39.000 --> 0:21:41.000 hard rock brand, and that's something we're very excited about. 0:21:41.080 --> 0:21:43.879 So tell us what you can about the ad. Obviously 0:21:43.920 --> 0:21:48.240 want to leave some for this, everything you can about 0:21:48.320 --> 0:21:52.800 the ad because because of that audience people, as you know, 0:21:52.880 --> 0:21:55.280 and I know we know some of them, there are 0:21:55.280 --> 0:21:57.200 people who tune in just for the ads. They don't 0:21:57.200 --> 0:21:59.320 even care about the game. So the stakes are high, 0:21:59.400 --> 0:22:01.439 as they in your business. Well, we didn't want it 0:22:01.520 --> 0:22:04.639 just to be a spot about the brand, so we 0:22:04.720 --> 0:22:08.679 kind of created this storyline. Obviously, hiring a director and 0:22:08.720 --> 0:22:12.200 producer like Michael Bay speaks for itself that we're committed 0:22:12.200 --> 0:22:14.840 here long term. So the spot is almost like a 0:22:14.920 --> 0:22:18.399 mini story that then eventually takes you to our websites, 0:22:18.480 --> 0:22:21.480 our relationship with j Low and frankly creates, you know, 0:22:21.520 --> 0:22:23.960 the introduction to the two million dollar sweepstakes, which will 0:22:24.000 --> 0:22:25.879 be announcing. So Michael Bay, so is it going to 0:22:25.920 --> 0:22:29.720 have like an Armageddon Transformers kind of feel? We'll have 0:22:29.840 --> 0:22:33.040 a Hollywood feel, I promise you that. Did you guys 0:22:33.080 --> 0:22:36.880 really spend about five point six million to make this commercial. Well, 0:22:37.040 --> 0:22:39.600 give us an idea. Well, I could say we're north 0:22:39.640 --> 0:22:43.880 of ten million all in. Wow, was that a hard 0:22:43.960 --> 0:22:47.679 check to write? Well, frankly, the spots themselves, you know, 0:22:47.720 --> 0:22:50.240 are approaching that, and you know, Kennily were well north 0:22:50.280 --> 0:22:53.160 of ten million all in. And so Michael Bay tell 0:22:53.240 --> 0:22:55.640 us how he gets the nod? He lives in Miami, 0:22:55.720 --> 0:22:57.920 I think, and so he's got some connections here. Well, 0:22:57.960 --> 0:23:00.880 I think we wanted to create something that special, right, 0:23:00.920 --> 0:23:03.639 and not just because of all the amazing movies that 0:23:03.720 --> 0:23:06.720 he's directed, but also did a lot of music videos, 0:23:06.720 --> 0:23:10.000 so he certainly understands the brand. Certainly being in Miami 0:23:10.040 --> 0:23:12.320 made it a little bit easier as far as proximity, 0:23:12.400 --> 0:23:14.800 you know, to the guitar shaped hotel. But franularly, we 0:23:14.840 --> 0:23:16.760 did look at some other candidates and he by far 0:23:16.920 --> 0:23:18.720 was the one we were hoping for and when he 0:23:18.760 --> 0:23:21.120 said yes, we were certainly very excited. Yeah, it's really 0:23:21.160 --> 0:23:22.960 cool to have him and I can't imagine how which 0:23:22.960 --> 0:23:24.720 fun it was to work with him. What is this 0:23:24.760 --> 0:23:27.000 a bet on um, Jim? Is it a bet on 0:23:27.119 --> 0:23:29.639 the hotel business? Is it on online gaming, which you 0:23:29.680 --> 0:23:32.560 guys have been moving certainly aggressively into what what is 0:23:32.560 --> 0:23:34.320 it about for you? What do you hope to get 0:23:34.359 --> 0:23:37.040 out of it? Well? I think the hard Rock brand, um, 0:23:37.119 --> 0:23:38.760 we know that, you know, coming up on our fifty 0:23:38.800 --> 0:23:41.320 year anniversary, is one of the most recognized brands in 0:23:41.359 --> 0:23:43.919 the world. But we want to continue to position as 0:23:43.960 --> 0:23:46.480 a brand of entertainment. And obviously the Super Bowl is 0:23:46.600 --> 0:23:50.120 much more than a football game. It's about entertainment when 0:23:50.160 --> 0:23:52.479 you think about people coming together in houses and all 0:23:52.480 --> 0:23:54.840 the different things they do. So being part of this 0:23:54.920 --> 0:23:57.200 was something that was very important for me to position 0:23:57.280 --> 0:23:59.920 hard Rock is not just a brand of hospitality but 0:24:00.000 --> 0:24:01.639 a brand of entertainment. But what do you hope that 0:24:01.640 --> 0:24:03.520 in terms of people say, oh, hard Walk, I didn't 0:24:03.560 --> 0:24:05.439 know that they I forgot that they're doing this, or 0:24:05.440 --> 0:24:07.720 they're doing this. Well, we are certainly hopeful that will 0:24:07.800 --> 0:24:10.119 drive some foot traffic to all the locations on a 0:24:10.119 --> 0:24:12.440 global basis. But you know, I don't think it's about 0:24:12.520 --> 0:24:14.960 quote unquote internet gambling. I think it's more about the 0:24:15.000 --> 0:24:18.680 brand itself, which obviously has many different sectors that we're 0:24:18.680 --> 0:24:22.000 looking for additional foot traffic to come to our facilities, 0:24:22.040 --> 0:24:24.919 both in person and then certainly online through through the 0:24:24.960 --> 0:24:28.520 online retail, we're Internet gaming, etcetera. All right, so speaking 0:24:28.560 --> 0:24:30.760 of foot traffic and eyeballs, a lot of people are 0:24:30.760 --> 0:24:33.880 gonna be walking in and watching a game that's held 0:24:34.040 --> 0:24:36.120 in the stadium that you named. You paid, I believe 0:24:36.600 --> 0:24:38.800 fifty million dollars for the for the naming rights, no 0:24:38.960 --> 0:24:42.200 small chunk of change. What was the obviously this is 0:24:42.240 --> 0:24:44.320 going back a little bit, but what was the thinking 0:24:44.320 --> 0:24:47.159 behind putting your name on that particular stadium? You know, 0:24:47.280 --> 0:24:50.399 we have been approached about this many times, and um, 0:24:50.480 --> 0:24:53.000 we looked at it and we said no, probably not 0:24:53.119 --> 0:24:56.320 for us, because we were concerned in different cities you're 0:24:56.359 --> 0:24:59.680 talking about, well, frankly in many cities, but specifically in 0:25:00.000 --> 0:25:03.280 al Florida. Um. And once we understood that Mr Ross, 0:25:03.280 --> 0:25:05.280 Steve Ross, who's the owner of the Miami Dolphins and 0:25:05.280 --> 0:25:09.280 the actual physical structure itself, was committed to really create 0:25:09.359 --> 0:25:12.080 something that was more than just a football stadium. That 0:25:12.080 --> 0:25:14.439 piqued my interest. And you know, Steve would say that 0:25:14.520 --> 0:25:16.960 it was rather interesting, you know, back and forth between 0:25:17.040 --> 0:25:19.960 him and myself, but we were really excited when we 0:25:20.000 --> 0:25:22.360 saw he wanted to do things other than just football. 0:25:22.560 --> 0:25:24.479 So whether it's the rolling Stones, you know, with their 0:25:24.560 --> 0:25:28.120 last show there Beyonce, A jay Z, you too, Formula One, 0:25:28.240 --> 0:25:30.640 you know, the Miami Open moving you know obviously from 0:25:30.640 --> 0:25:34.159 Biscayne nowt to hard Rock Stadium. It's really an entertainment destination. 0:25:34.200 --> 0:25:36.159 And once we were convinced that was going to be 0:25:36.680 --> 0:25:40.760 part of the script, not just the football, very very excited. 0:25:40.800 --> 0:25:42.280 So tell us a little bit about that back and 0:25:42.320 --> 0:25:44.280 forth if you can. We know Steven Ross, well, he's 0:25:44.359 --> 0:25:47.160 tough businessman. You're a tough businessman. So what were you 0:25:47.320 --> 0:25:49.360 really sort of haggling over at the end of the day. 0:25:49.400 --> 0:25:51.280 I don't know if it was haggling, but I think 0:25:51.320 --> 0:25:54.679 it was more about making sure that we understood what 0:25:54.800 --> 0:25:57.680 the entertainment commitment was going to be obviously then tying 0:25:57.720 --> 0:26:00.480 that back to the actual dollars so shade it with 0:26:00.520 --> 0:26:03.240 the sponsorship, and the most importantly, we did not want 0:26:03.240 --> 0:26:05.120 to do this on a short term basis. We were 0:26:05.160 --> 0:26:08.640 in and we were all in um or. We didn't 0:26:08.640 --> 0:26:10.280 want to end up in a situation where we've got 0:26:10.320 --> 0:26:13.119 a five year sponsorship and then hypothetically the name changes 0:26:13.160 --> 0:26:15.000 a guy. So you know, people are going to know 0:26:15.119 --> 0:26:17.040 hard Rock Stadium for the next you know, well, actually, 0:26:17.080 --> 0:26:19.160 We're already three years into the deal for the next 0:26:19.160 --> 0:26:21.119 seventeen years, and that was very important to us. So 0:26:21.160 --> 0:26:22.720 what does it mean for the future stadium? I do 0:26:22.800 --> 0:26:25.560 feel like there's more challenges for people time, new fans, 0:26:25.600 --> 0:26:27.879 younger fans, They want a different type of experience. So 0:26:27.920 --> 0:26:30.080 what does it mean for you guys in terms of 0:26:30.080 --> 0:26:32.240 what you'll be doing with that stadium going forward? Twenty 0:26:32.320 --> 0:26:34.479 years commitment, that's a long time, So what's the future. 0:26:34.640 --> 0:26:36.960 But you know, I think like in any physical building, 0:26:37.000 --> 0:26:39.760 you know, there's always a conversation about reinvesting in Capex 0:26:39.880 --> 0:26:42.840 and if we look at Steve's incredible success, you know, 0:26:43.160 --> 0:26:45.439 look at the Hudson Yards here. I mean, obviously he 0:26:45.520 --> 0:26:48.800 and his companies have a long track record at continuing 0:26:48.840 --> 0:26:51.520 to reinvest to create a world class product. So frankly, 0:26:51.560 --> 0:26:54.040 that was something that was very important to me um 0:26:54.119 --> 0:26:56.320 which we believe that the same will continue at hard 0:26:56.400 --> 0:26:58.920 Rock Stadium as we move forward. Even if you look 0:26:58.920 --> 0:27:01.600 at what's happened since we actually signed the deal, we 0:27:01.640 --> 0:27:05.560 certainly knew that Super Bowls were a strong possibility. Nothing 0:27:05.640 --> 0:27:08.840 is guaranteed because obviously the NFL has to approve that, 0:27:09.320 --> 0:27:11.440 but it was very clear in the contract which the 0:27:11.520 --> 0:27:13.920 NFL was aware of, that if a Super Bowl occurs, 0:27:14.280 --> 0:27:17.399 then certain financial and economic things may or may not happen. 0:27:17.480 --> 0:27:21.240 With the relationship between Mr Ross and ourselves, we believe 0:27:21.280 --> 0:27:23.439 the same will happen as we continue to, you know, 0:27:23.480 --> 0:27:26.119 grow the partnership on a long term basis. And do 0:27:26.160 --> 0:27:28.520 you have any sense of how many super Bowls? I mean, 0:27:28.520 --> 0:27:30.640 obviously they don't go too far out, but I mean 0:27:30.640 --> 0:27:33.280 you could get multiple in uh, in that period of time. Well, 0:27:33.320 --> 0:27:35.040 first of all, there's been more Super Bowls in South 0:27:35.080 --> 0:27:38.160 Florida than anywhere else in the United States. UM, it's 0:27:38.200 --> 0:27:40.560 just such the it's such an ideal place for the 0:27:40.560 --> 0:27:44.280 Super Bowl because obviously Miami is an international gateway city, 0:27:44.480 --> 0:27:47.080 tremendous amount of hotel rooms. You don't have to bring 0:27:47.119 --> 0:27:49.480 in cruise ships to try to put people for a 0:27:49.480 --> 0:27:53.000 place to stay. UM, the Guitar Hotel, all the amenities 0:27:53.000 --> 0:27:55.360 that we offer at at hard Rock. We just think 0:27:55.400 --> 0:27:57.439 it's a natural. So we're very hopeful that many more 0:27:57.480 --> 0:27:59.320 will come in the future. So what about some of 0:27:59.359 --> 0:28:01.639 the other proper reason I'm thinking about Atlantic City. I've 0:28:01.680 --> 0:28:05.119 spent some time down there talking to UM, your team 0:28:05.160 --> 0:28:08.360 and other folks. Um, you were pretty critical about what's 0:28:08.359 --> 0:28:10.840 going on in Atlantic City recently in terms of the 0:28:10.840 --> 0:28:13.679 city itself, the safety. Um, first of all, tell us 0:28:13.680 --> 0:28:15.880 how the property is doing. Property is doing very well. 0:28:15.920 --> 0:28:19.119 You know, first year of first full year of operation 0:28:19.440 --> 0:28:21.959 actually rose to number two in the marketplace in gross 0:28:22.000 --> 0:28:24.520 gaming revenue. So that's something that we were very proud of. 0:28:24.520 --> 0:28:27.160 When you look at the amazing brands like Harrison Caesar's 0:28:27.200 --> 0:28:30.080 Tropicanical Nugget that have been there. You know, She's been 0:28:30.080 --> 0:28:33.320 there for over fourty years, so um, huge database. You know, 0:28:33.320 --> 0:28:35.040 to go up and compete against that in the first 0:28:35.119 --> 0:28:37.040 year to get to number two is very important. Jim, 0:28:37.080 --> 0:28:39.200 Is it a different type of individual who's coming to 0:28:39.480 --> 0:28:43.000 hard rock down Atlantic City versus in the past. No doubt. 0:28:43.000 --> 0:28:47.480 We certainly focused on entertainment, you know Live three. I 0:28:47.520 --> 0:28:50.239 mean that was really about creating and not just music, right, 0:28:50.280 --> 0:28:52.760 So whether it's comedy with Harry Mendel, whether it's with 0:28:52.760 --> 0:28:55.240 the need Lander family with all the Broadway shows we're doing, 0:28:55.560 --> 0:28:58.400 and frankly really exceeded our expectations. I think it's a 0:28:58.400 --> 0:29:01.200 real compliment to the hard rock brand, the knee Lander family, 0:29:01.240 --> 0:29:03.600 but frankly, Atlantic city because the numbers we did with 0:29:03.680 --> 0:29:06.560 Jersey Boys, we're really really strong. So now we're going 0:29:06.640 --> 0:29:10.479 to do four Broadway series this upcoming season. As far 0:29:10.520 --> 0:29:12.600 as the town itself, it's not that we feel it's 0:29:12.640 --> 0:29:16.600 quote unquote unsafe. We just feel as though that trenton 0:29:17.080 --> 0:29:19.640 the c r d A. You know, unfortunately, that mayor 0:29:19.720 --> 0:29:22.479 was arrested again. You know, we've seen this so many times. 0:29:22.840 --> 0:29:25.120 Now is the time to come together to say, Look, 0:29:25.160 --> 0:29:27.960 we've had a company like hard Rock invest over five 0:29:28.040 --> 0:29:31.560 hundred million dollars. Let's live up to what we said 0:29:31.600 --> 0:29:33.560 we're going to do to take the next step together. 0:29:33.760 --> 0:29:35.800 You did tell a p you said, frankly, the town's 0:29:35.800 --> 0:29:37.640 and we're shaped today than it was when we bought 0:29:37.640 --> 0:29:39.880 the building. When you're in a resort environment where safety 0:29:39.880 --> 0:29:41.640 and security is so important, if the city can't get 0:29:41.640 --> 0:29:43.760 something fixed as simple as the street lighting, that maybe 0:29:43.760 --> 0:29:48.000 a change is needed. I mean frustrating. Yeah, So that 0:29:48.280 --> 0:29:51.880 and and specifically street lights. You would think that the 0:29:52.000 --> 0:29:54.560 local municipality would be handled that. And if they don't 0:29:54.640 --> 0:29:57.240 understand that, if you don't keep up with street lights, 0:29:57.560 --> 0:30:00.560 then safety can become an issue. But to be fair, 0:30:00.680 --> 0:30:03.320 we haven't seen crime issues at hard Rock at all 0:30:03.400 --> 0:30:05.200 to be fair to the city, but frankly, if you 0:30:05.200 --> 0:30:07.360 don't fix the street lights, you're going to have crime. 0:30:07.520 --> 0:30:10.160 That's Jim l and the chairman and CEO of hard 0:30:10.240 --> 0:30:16.720 Rock International. Man. Their organization is huge in terms of hotels, cafes, 0:30:17.080 --> 0:30:19.720 of course the stadium. They're in seventy six countries. So 0:30:19.760 --> 0:30:21.320 fun to talk about the big game with him, but 0:30:21.360 --> 0:30:24.520 also get his perspective on the global economy. Absolutely. I mean, 0:30:24.560 --> 0:30:27.120 he really is at the center of so many things 0:30:27.160 --> 0:30:30.040 in every twist and turn of the global economy, he's 0:30:30.080 --> 0:30:32.040 got to have a take on and we did catch 0:30:32.080 --> 0:30:33.680 up with him for quite a bit of time here 0:30:33.720 --> 0:30:36.600 at headquarters. It's a wide ranging conversation. You can check 0:30:36.640 --> 0:30:39.880 that out via podcast. It's this Week's Business Week Extra, 0:30:40.040 --> 0:30:42.560 once the go to destination for Chinese mainland shoppers. The 0:30:42.560 --> 0:30:45.320 anti Beijing protests in Hong Kong. While they have definitely dimmed, 0:30:45.320 --> 0:30:48.240 it's a lord Jason Well. It's been a huge shock 0:30:48.280 --> 0:30:51.000 to the system in many ways because people aren't showing 0:30:51.080 --> 0:30:53.800 up to shop and it's starting to really play through 0:30:54.120 --> 0:30:57.360 the retail scene there. Jim Ellis oversees all the business 0:30:57.440 --> 0:30:59.520 coverage for the magazine. He's here with us. Tell us 0:30:59.520 --> 0:31:02.600 about teal, especially luxury retail in Hong Kong. Well, one 0:31:02.640 --> 0:31:05.120 of the things that's always marked Hong Kong is that 0:31:05.240 --> 0:31:08.600 it's been the shopping or it was the shopping mecca 0:31:08.920 --> 0:31:12.480 of you know, China and of Asia. And but what 0:31:12.640 --> 0:31:15.320 a lot of people didn't realize was that a big 0:31:15.440 --> 0:31:19.200 boost for Hong Kong came from the ability of mainland 0:31:19.360 --> 0:31:22.600 Chinese to sort of go there and do their shopping. 0:31:22.840 --> 0:31:26.440 It was their mall basically, and that was great for 0:31:26.800 --> 0:31:30.040 the last twenty years. The problem is now more and 0:31:30.120 --> 0:31:32.959 more of the shoppers who need to come to Hong 0:31:33.040 --> 0:31:35.480 Kong are starting to worry about coming there. I mean, 0:31:35.480 --> 0:31:38.960 the protests have been very difficult for Hong Kong. Big 0:31:39.000 --> 0:31:42.040 reason is that a lot of Mainlanders feel that the 0:31:42.120 --> 0:31:45.600 a that it's dangerous be that you know, people who 0:31:45.640 --> 0:31:49.160 live in Hong Kong are unpatriotic and are very anti Chinese, 0:31:49.400 --> 0:31:51.719 and therefore they're like, why should we go and give 0:31:51.760 --> 0:31:53.560 our money these people who don't even want to be 0:31:53.680 --> 0:31:56.280 part of us. Well, it is dangerous, right, there's reports 0:31:56.320 --> 0:31:58.840 of various mainland Chinese being beaten up. Right, So there 0:31:59.280 --> 0:32:01.880 have been pressure sports but also the government has been 0:32:01.960 --> 0:32:06.720 encouraging those press reports and so um, it's all government. Yes, 0:32:06.800 --> 0:32:10.440 it's all part of a of a of a way 0:32:10.480 --> 0:32:13.200 to show that you know, right now, Hong Kong is 0:32:13.200 --> 0:32:16.200 an outlier and China, the rest of China is a 0:32:16.280 --> 0:32:19.360 sort of patriotic type. Having said that, though Jim like 0:32:19.440 --> 0:32:21.080 some of the numbers, I was kind of I kept 0:32:21.120 --> 0:32:24.000 writing on my notes, Wow statistics in terms of how 0:32:24.080 --> 0:32:27.240 much retail sales, high end luxury retail sales are down 0:32:27.360 --> 0:32:31.000 in the well. One of the reasons is that because 0:32:31.240 --> 0:32:34.880 Mainlanders account for so much of the tourism to Hong Kong, 0:32:35.080 --> 0:32:37.840 it's I mean, a lot of people think people from 0:32:37.880 --> 0:32:39.560 all over the world are coming in there, but eight 0:32:40.040 --> 0:32:42.479 of the travelers to Hong Kong are from China, and 0:32:42.600 --> 0:32:45.800 a lot of them are high end, high end shoppers 0:32:45.880 --> 0:32:48.120 who go there to shop at Gucci, go there to 0:32:48.160 --> 0:32:51.800 shop at you know, the LBMG. The problem is that 0:32:52.440 --> 0:32:54.760 they'll come in and spend a lot of money and 0:32:54.800 --> 0:32:58.200 then go home. Now two things have happened. One is 0:32:58.880 --> 0:33:01.240 lots and lots of retails are opening up in cities 0:33:01.280 --> 0:33:05.000 across China, and now you can shop at luxury retailers 0:33:05.000 --> 0:33:08.720 in Shanghai, in Beijing and guan Jou, you don't have 0:33:08.840 --> 0:33:11.560 to make that trip. The second thing is that Hong 0:33:11.640 --> 0:33:14.840 Kong always benefited from being the air hub that all 0:33:15.040 --> 0:33:17.520 rich people are business people had to go through to 0:33:17.560 --> 0:33:20.560 get in and out of China. That's faded. The government 0:33:20.640 --> 0:33:23.760 owns three airlines and they have set up three hubs 0:33:23.800 --> 0:33:27.520 in other cities across China, and so what happens is 0:33:27.560 --> 0:33:31.280 that nowadays high end shoppers don't have to go through there. 0:33:31.440 --> 0:33:32.840 So there has to be a reason for them to 0:33:32.880 --> 0:33:34.920 go to Hong Kong. And it might be because there's 0:33:35.000 --> 0:33:37.959 more restaurants is or whatever. And now with the trouble 0:33:38.080 --> 0:33:41.320 from the protests, they're not even doing that. So therefore 0:33:41.360 --> 0:33:44.080 you have these huge drops. I mean, so retail sales 0:33:44.400 --> 0:33:47.360 have dropped in a single month in November, they dropped 0:33:47.360 --> 0:33:51.520 by and in the high end goods like watches and 0:33:51.560 --> 0:33:54.600 things like that is over fifty. Now that's started shocking. 0:33:54.600 --> 0:33:57.920 It's hard to imagine half of your business sort of 0:33:57.920 --> 0:34:00.800 going away overnight, but that's what's half sing there well, 0:34:00.800 --> 0:34:04.080 and it's leading to stores shutting down, I mean, and 0:34:04.120 --> 0:34:07.200 not just one here, one there, but you know, dozens 0:34:07.240 --> 0:34:10.200 of locations for certain stores. Yeah, well overall, and this 0:34:10.280 --> 0:34:12.440 includes high end and low end, and a lot of 0:34:12.480 --> 0:34:14.719 this is um sort of low end stores. But four 0:34:14.800 --> 0:34:19.120 hundred stores closed in Hong Kong in the last six months. 0:34:19.320 --> 0:34:21.080 But then there have been some high end names. You 0:34:21.120 --> 0:34:24.200 sort of think that, you know that cohort will continue 0:34:24.200 --> 0:34:27.600 to shop, but um Louis Buitama is closing a store, 0:34:27.719 --> 0:34:30.759 products closing a store. Lots of people are saying that 0:34:30.840 --> 0:34:34.560 this business may not be coming back, simply because even 0:34:34.600 --> 0:34:36.960 at the protests end, you know the damage has been 0:34:36.960 --> 0:34:40.920 done reputationally and you can shop closer to home, plus 0:34:40.960 --> 0:34:43.360 you can shop online. So what are you hearing in 0:34:43.480 --> 0:34:45.719 terms of, you know, the expectation of Hong Kong is 0:34:45.760 --> 0:34:48.160 a tourist destination. Does it just go away? I mean, 0:34:48.239 --> 0:34:51.040 I know the mainland Chinese are very important, but overall, 0:34:51.200 --> 0:34:55.120 will people start going stop going? It doesn't go away. 0:34:55.320 --> 0:34:59.080 It just becomes less of a shopping only destination. It 0:34:59.120 --> 0:35:02.560 has the advantage of having mountains, it has beaches, it 0:35:02.640 --> 0:35:06.680 has Disneyland, it has all sorts of other attractions that 0:35:07.000 --> 0:35:09.960 hadn't been pushed, you know. And so what happens is 0:35:10.000 --> 0:35:13.120 it becomes as someone in the story says it has 0:35:13.200 --> 0:35:17.200 become a more holistic travel destination. It can't be just 0:35:17.280 --> 0:35:19.920 the place that becomes China's mall. Kind of a reminder 0:35:19.960 --> 0:35:21.840 to that economy, right, that they can't just be about 0:35:22.000 --> 0:35:25.480 high end shopping. Yeah, absolutely, really interesting story, a look 0:35:25.480 --> 0:35:28.720 at something that we all can understand because that shopping 0:35:28.800 --> 0:35:32.160 element crucial to the economy. Jim, thanks, thank you. And 0:35:32.200 --> 0:35:35.239 that's Jim Ellis, business editor for Business Week. He has 0:35:35.280 --> 0:35:37.719 spent a lot of time in Asia. He understands that 0:35:37.800 --> 0:35:41.319 market really well. And wow, so much going on in 0:35:41.360 --> 0:35:43.360 Hong Kong well, and you have to wonder these workers 0:35:43.360 --> 0:35:45.200 that are being hit so hard there at the lower 0:35:45.360 --> 0:35:48.120 end of you know, the economy in Hong Kong not 0:35:48.200 --> 0:35:50.680 making a lot of money. If they leave, will they 0:35:50.760 --> 0:35:52.920 ultimately come back when things improve? So we'll have to 0:35:52.920 --> 0:35:55.600 see what happens. The reality, sales have never been better 0:35:55.640 --> 0:35:59.440 on Palm Beach, apparently, Jason, except for a cluster of 0:35:59.480 --> 0:36:02.960 home we're talking about the Barrier Island right there off 0:36:02.960 --> 0:36:06.520 the coast of Florida. The president, his primary resident, President Trump, 0:36:06.840 --> 0:36:10.000 mar Lago we're talking about, and yet there's a cluster 0:36:10.080 --> 0:36:13.960 of homes right around mar Largo. There for sale, but 0:36:14.000 --> 0:36:16.920 nobody's snapping them up. What's going on? James Tarmy headed 0:36:16.960 --> 0:36:19.279 down their tough assignment this time of year at the 0:36:19.280 --> 0:36:21.359 head to Palm Beach. But he's gotta do it, gotta 0:36:21.400 --> 0:36:24.560 go down there, spend some times. I am willing to 0:36:24.600 --> 0:36:28.520 take on the hard one for the team. Won't stop. 0:36:29.280 --> 0:36:32.239 Remind everybody, I mean, we know Palm Beach. It's where 0:36:32.239 --> 0:36:36.759 a lot of financial types live. Um incredible homes. Well, 0:36:36.760 --> 0:36:42.560 they don't live there, they have homes where Carol is correct. 0:36:42.640 --> 0:36:46.240 They now all live there because of the extremely generous 0:36:47.280 --> 0:36:51.320 zero percent personal income TAXT. So a lot of people 0:36:51.320 --> 0:36:54.760 do live in Palm Beach. Um. It's this very surreal 0:36:54.800 --> 0:36:59.560 place because it's incredibly sin most of the time, there's 0:36:59.640 --> 0:37:02.920 no more than two or three lots deep between the 0:37:02.920 --> 0:37:05.799 bay side and the ocean side. It's and everything has 0:37:05.840 --> 0:37:08.560 hedges in their palm trees, and everything is pristine, and 0:37:08.600 --> 0:37:10.640 people look like you would imagine that they look and 0:37:10.960 --> 0:37:13.080 dress like they would imagine in your dress, and it's 0:37:13.200 --> 0:37:15.640 and so forth. And it's expensive real estate. It is 0:37:15.960 --> 0:37:18.600 very expensive, and it has only gotten more expensive this 0:37:18.680 --> 0:37:23.000 year where it has been white hot um three homes 0:37:24.080 --> 0:37:28.320 last year sold for approximately a hundred million dollars apiece. 0:37:28.840 --> 0:37:32.720 Um but yes, a piece, a piece, Oh my god. Yes, 0:37:32.920 --> 0:37:38.040 So the it's it's really flying off the shelves, empty lots, 0:37:38.200 --> 0:37:43.279 tear downs, mansions, everything in between. Everyone is buying, is 0:37:43.320 --> 0:37:46.560 the answer. People from all over the country are buying, 0:37:46.680 --> 0:37:49.920 but also people within Palm Beach or trading up and 0:37:50.000 --> 0:37:54.320 treading down. And it's very much this kind of weird 0:37:54.560 --> 0:37:58.759 microcosm where real estate is constantly being changed hands, and 0:37:58.800 --> 0:38:04.520 so within listen to ecosystem. There is around mar Lago, 0:38:04.600 --> 0:38:08.320 which is this former estate for Marjorie Merry with their post. 0:38:08.640 --> 0:38:11.799 It's this colossal piece of property and pong beage that 0:38:11.840 --> 0:38:19.200 cuts bisects the entire island. Um. So around this estate 0:38:19.640 --> 0:38:23.160 there are a cluster of unsold houses. Some have been 0:38:23.200 --> 0:38:25.879 on the market for years, some are just coming onto 0:38:25.880 --> 0:38:29.040 the market. But it's a crazy anomaly. Things like this 0:38:29.160 --> 0:38:32.080 don't usually happen, and so the question is why. And 0:38:32.160 --> 0:38:34.239 you have at least a couple of people saying nothing 0:38:34.239 --> 0:38:37.080 to see here, move along, is just a coincidence. And 0:38:37.200 --> 0:38:39.600 yet and yet, so what did you find when you 0:38:39.640 --> 0:38:42.640 went down there? What are the consistencies among the properties, 0:38:42.680 --> 0:38:47.080 What did you take away. So this to give some context, 0:38:47.880 --> 0:38:51.759 there is something that's called Billionaires Row, which is directly 0:38:51.800 --> 0:38:54.160 south of mar Lago, and that is where, if you 0:38:54.200 --> 0:38:56.680 can believe it, there are a lot of billionaires. Directly 0:38:56.719 --> 0:38:59.400 north of Mara Lago is the estate section. These are 0:38:59.400 --> 0:39:05.120 all Realist eight fabrications, yes, but they are in whatever 0:39:05.200 --> 0:39:09.680 way reflective of the fact that homes are oftentimes in 0:39:10.600 --> 0:39:17.000 and around Moral Lago around five to twenty million dollars right, 0:39:17.160 --> 0:39:19.359 not cheaper. This is not a cheap place to live. 0:39:19.920 --> 0:39:22.719 And what's striking is that there's a tremendous amount of 0:39:22.719 --> 0:39:27.400 new construction. There's a tremendous amount of recently renovated buildings, 0:39:27.480 --> 0:39:31.680 and they are all for sale and they are not selling. 0:39:32.080 --> 0:39:36.240 And so I talked to a variety of brokers. Um, 0:39:36.719 --> 0:39:41.880 everyone had different solutions, everyone had different diagnoses. Um. The 0:39:41.920 --> 0:39:44.719 one thing that everyone agreed on was that it had 0:39:44.840 --> 0:39:47.759 absolutely nothing to do with Donald Trump, who they all 0:39:47.800 --> 0:39:50.520 referred to as he as and when he is on 0:39:50.560 --> 0:39:53.640 the island. No one refers to Trump by Trump's names. 0:39:53.800 --> 0:39:56.960 It's eight like he his with a capital age and 0:39:56.960 --> 0:39:59.520 tell us about Moral Argae. You went there, Um, yeah, 0:39:59.560 --> 0:40:02.200 we see it in pictures. We hear about it all 0:40:02.239 --> 0:40:04.440 the time. President talks about it quite a bit. What 0:40:04.480 --> 0:40:06.840 was the vibe. I would say that the vibe was 0:40:07.000 --> 0:40:13.520 extremely relaxed, extremely friendly, um and extremely desolate everyone. This 0:40:13.640 --> 0:40:17.279 is the high season right now, yes, And I sort 0:40:17.320 --> 0:40:20.480 of assumed that it would be kind of bustling place, 0:40:21.440 --> 0:40:24.879 especially in December leading up to Christmas, which is when 0:40:24.920 --> 0:40:28.719 a lot of people are down there. Um, And I 0:40:28.760 --> 0:40:31.000 didn't see much bustle. To be fair, I was there 0:40:31.080 --> 0:40:35.600 during breakfast. Maybe it gets hopping in the evenings maybe, 0:40:35.760 --> 0:40:44.880 but I was there at eleven. He did sleep one guilty, 0:40:45.760 --> 0:40:49.560 But it's it's really Everything is kind of very carefully manicured. 0:40:49.640 --> 0:40:52.360 The staff is super genial. There is a picture of 0:40:52.400 --> 0:40:56.640 Dollnerald Trump in the men's bathroom. Um, all fun facts, 0:40:56.840 --> 0:41:00.200 but and and the trash cans even have little kind 0:41:00.239 --> 0:41:04.000 of golden feet. Everything is as you would imagine it. 0:41:04.040 --> 0:41:08.799 But it's not this kind of place of outsize that 0:41:08.840 --> 0:41:11.560 reflects the outside lord of this associated with it. Right. Well, 0:41:11.600 --> 0:41:13.160 you were surprised to just how easy it was to 0:41:13.200 --> 0:41:14.839 get in, right. I think you assumed that there would 0:41:14.840 --> 0:41:17.319 be a lot of security. There was none. And you 0:41:17.320 --> 0:41:20.160 know this actually led some level of credence to what 0:41:20.200 --> 0:41:22.000 all the brokers were saying, which is that you know, 0:41:23.120 --> 0:41:27.920 many people have talked about in publicly about the inconveniences 0:41:27.960 --> 0:41:33.320 associated with Trump's presence um and how there's traffic delays 0:41:33.400 --> 0:41:35.800 and how the Secret Service screw everything up for everyone, 0:41:36.360 --> 0:41:39.879 but everyone actually there was like, it's really no big 0:41:39.920 --> 0:41:43.160 deal and experiencing it in a microcosm. Of course, Donald 0:41:43.200 --> 0:41:45.560 Trump is not there. When I was there, um, it 0:41:45.640 --> 0:41:48.600 really wasn't a big deal. And it was actually, I 0:41:48.600 --> 0:41:52.080 would say, mildly shocking how easy it was to kind 0:41:52.080 --> 0:41:54.680 of get in and out and how little anyone cared 0:41:54.719 --> 0:41:56.799 about me. And to be fair, the President wasn't there, 0:41:57.520 --> 0:41:59.160 so it wasn't sort of locked down as if it 0:41:59.280 --> 0:42:01.399 probably would if he was there. One thing I thought 0:42:01.440 --> 0:42:04.319 was interesting, and I will highly recommend that folks check 0:42:04.360 --> 0:42:07.000 this out online in the magazine because the properties, Like 0:42:07.040 --> 0:42:08.600 I had so much fun just kind of reading through 0:42:08.640 --> 0:42:11.400 the specifics. But some of the homes that because of 0:42:11.400 --> 0:42:14.399 the proximity to Morrow Lago, they waived the initiation fee 0:42:14.440 --> 0:42:15.960 right to the club. You don't have to pay annual 0:42:16.040 --> 0:42:18.840 dues and other things, but that's part of buying some 0:42:18.920 --> 0:42:22.200 of these properties. So there is an adjacent road called Woodbridge. 0:42:22.280 --> 0:42:24.799 And when Trump bought the property in the nineties, he 0:42:24.920 --> 0:42:28.080 had to convince residents that it was something that they 0:42:28.080 --> 0:42:30.719 should get behind and not try to block in town 0:42:30.719 --> 0:42:34.600 councils and so forth. Um to turn this property into 0:42:34.600 --> 0:42:37.400 a private club. And the way that he sort of 0:42:37.440 --> 0:42:41.319 greased the wheel was anyone who lives on Woodbridge if 0:42:41.440 --> 0:42:45.360 their initiation fee, which is now I believe over two dollars, 0:42:45.520 --> 0:42:48.960 it's waved. And it's also your grandfather in So anyone 0:42:49.000 --> 0:42:51.160 who owns a house on Woodbridge gets to be a 0:42:51.160 --> 0:42:54.279 member at marl Lago. But when you sell the house 0:42:54.280 --> 0:43:01.440 on Woodbridge, you rescind that membership. So it's it's a 0:43:01.640 --> 0:43:04.000 really sweet part of the package so long as you're there. 0:43:04.120 --> 0:43:06.319 And that's James Tarmy. I mean, anytime we sit down 0:43:06.320 --> 0:43:09.319 with him, we have a blast. He talked about his 0:43:09.440 --> 0:43:12.600 time down there, looking at the homes, getting into and 0:43:12.640 --> 0:43:16.319 walking around more Lago specifically. But it is fascinating that 0:43:16.400 --> 0:43:18.440 this is a real estate market where there aren't a 0:43:18.480 --> 0:43:21.600 ton of homes. They're in demand typically, except there are 0:43:21.600 --> 0:43:24.239 a few that are kind of sitting out there not selling. Yeah, 0:43:24.320 --> 0:43:28.520 it's a really interesting conversation real estate. It's more complicated 0:43:28.560 --> 0:43:30.719 maybe than you think. It's been two years since the 0:43:30.719 --> 0:43:33.560 Supreme Court ruling that opened up the gambling industry outside 0:43:33.560 --> 0:43:35.880 of Nevada, and in one of this week's feature stories 0:43:35.920 --> 0:43:39.760 are Budwei, Well, he actually became a gambler, a degenerate gambler. 0:43:39.840 --> 0:43:43.480 It feels like depending on who you are, you know, 0:43:43.600 --> 0:43:45.160 not doing the things he needs to do around the 0:43:45.160 --> 0:43:48.160 house because he's so focused on the line. He joins 0:43:48.200 --> 0:43:50.640 this here in New York City. So this is quite 0:43:50.680 --> 0:43:55.000 an experiment. Bloomberg funded, Bloomberg approved. We should point out 0:43:56.040 --> 0:43:59.319 why and how did you do this? Well, we had 0:43:59.400 --> 0:44:03.120 seen the new handicapping service tout they call it, which 0:44:03.200 --> 0:44:05.799 is somebody who tells you what to bet uh, and 0:44:05.920 --> 0:44:08.000 frequently they do that for a feet And there was 0:44:08.000 --> 0:44:09.959 this new one started by a former Major League pitcher 0:44:10.000 --> 0:44:12.960 named Michael Swimmer who said, this is going to be legit. 0:44:13.239 --> 0:44:16.239 Like touts in general don't have a great reputation, a 0:44:16.239 --> 0:44:18.640 lot of scam artists out there. He said, we're gonna 0:44:18.680 --> 0:44:20.840 do this for real. I've got twenty three million backing, 0:44:20.840 --> 0:44:24.000 I've got Bill Miller, Wall Street money. We're gonna publish 0:44:24.040 --> 0:44:26.680 our picks. We're gonna give refunds if it doesn't pan out. 0:44:26.960 --> 0:44:28.880 This is gonna be like the real deal. And I said, well, 0:44:28.960 --> 0:44:30.799 let's let's see. Let's try it out. So I spent 0:44:30.880 --> 0:44:32.880 a week in New Jersey, where you can bet legally, 0:44:33.280 --> 0:44:35.440 bought a week long package of his picks, the company's 0:44:35.520 --> 0:44:37.920 jambos and uh, and gave it a shot. How does 0:44:37.920 --> 0:44:39.719 it work? Give us an idea of what it costs 0:44:39.800 --> 0:44:42.400 and your experience. Yeah, so I did the smallest package, 0:44:42.400 --> 0:44:44.680 two fifty dollars for a week. You can spend a 0:44:44.680 --> 0:44:48.000 lot more, three thousand dollars for seventeen weeks if you 0:44:48.040 --> 0:44:50.960 want um. And they send picks. They alert you every 0:44:51.000 --> 0:44:53.960 day about eleven am. That day's picks really depends. Could 0:44:53.960 --> 0:44:56.480 be five, could be could be forty. Uh. And you 0:44:56.560 --> 0:44:58.919 try to hustle out and find a bookmaker who will 0:44:58.960 --> 0:45:01.399 give you the bet there they're saying you should take, 0:45:01.480 --> 0:45:03.719 and they've they've checked. They have their sort of bookkeeper 0:45:03.760 --> 0:45:05.440 of record, their book of record that they say this 0:45:05.520 --> 0:45:08.920 bets available. But that stuff moves, as I discovered really quickly. 0:45:09.080 --> 0:45:13.200 So I was, you know, okay, let me get on draftkicks, right, 0:45:13.280 --> 0:45:15.920 sometimes you don't want to make the bet anymore. Right. 0:45:16.520 --> 0:45:19.440 So that's the issue for basically every handicapper is the 0:45:19.480 --> 0:45:23.400 better you are, the faster the market moves, and the 0:45:23.400 --> 0:45:25.279 harder is for anyone to use your advice. And that 0:45:25.360 --> 0:45:29.680 was ultimately what you discovered is that this company was 0:45:29.760 --> 0:45:33.160 quite literally the victim of its own success. It almost 0:45:33.520 --> 0:45:36.480 it feels like spoiler alert, almost like put itself out 0:45:36.480 --> 0:45:38.880 of business. Yeah, I mean there's a couple of ways. 0:45:38.920 --> 0:45:41.520 I mean that's sort of their version. Events. So they said, 0:45:41.560 --> 0:45:43.319 as I was doing this experiment, they said, we're gonna 0:45:43.320 --> 0:45:46.440 stop selling picks at the Super Bowl. And their explanation 0:45:46.560 --> 0:45:49.399 is lines are moving so quickly after we put out 0:45:49.400 --> 0:45:52.799 our pick. In other words, betters and and bookmakers are 0:45:52.840 --> 0:45:56.000 responding to our picks making right the fluid markets. They're 0:45:56.000 --> 0:45:59.040 not the same at every bookmaker. Uh, and so this 0:45:59.120 --> 0:46:01.400 is no longer working customers. And I saw some of 0:46:01.440 --> 0:46:03.359 that myself. There were a lot of bets I couldn't get, 0:46:03.600 --> 0:46:05.360 Like I got a hundred and eleven picks I wanted 0:46:05.360 --> 0:46:08.960 betting like seventy five of them. Um. But there's it's 0:46:09.000 --> 0:46:12.640 also possible that you know this service what just wasn't 0:46:12.640 --> 0:46:14.799 just wasn't standing out right that the picks were not 0:46:14.920 --> 0:46:17.160 so valuable. They just weren't that valuable, right, So it's 0:46:17.200 --> 0:46:19.880 hard to say exactly why. But they're saying, look, we're 0:46:19.880 --> 0:46:21.640 not going to sell anymore, we have different business plans 0:46:21.640 --> 0:46:23.680 from coming out with new things in the future. Did 0:46:23.719 --> 0:46:26.680 you make money? I did, but by sheer luck. So 0:46:26.719 --> 0:46:28.400 those bets that I didn't get to make out of 0:46:28.400 --> 0:46:31.360 that a hundred and eleven on mostly losers. Just so 0:46:31.920 --> 0:46:36.160 the company's picks for that hundred eleven period down, and 0:46:36.160 --> 0:46:37.640 and a better who had been able to get every 0:46:37.640 --> 0:46:41.040 bed in would have lost. I was lucky the best 0:46:41.080 --> 0:46:43.120 I didn't get in losers, so I finished up about 0:46:43.200 --> 0:46:46.760 sixty dollars. Yeah. So, I mean, you know the businesses 0:46:46.760 --> 0:46:49.080 sports so well, and you understand so many of the 0:46:49.320 --> 0:46:53.120 inputs as it were, around how people are consuming sports, 0:46:53.120 --> 0:46:55.440 you know. But you and I were talking before we 0:46:55.480 --> 0:46:57.160 came on set about a great story you did last 0:46:57.200 --> 0:47:00.239 year about John Skipper and the zone into every things 0:47:00.320 --> 0:47:03.120 changing around the business of sports. And yet this feels 0:47:03.160 --> 0:47:05.720 like it's right in the center of all of those things. 0:47:06.200 --> 0:47:08.239 Two years on is Carroll said at the top, like, 0:47:08.719 --> 0:47:11.160 what do you make of sort of the legal sports 0:47:11.160 --> 0:47:15.000 betting scene. I mean it's it's growing fast. I think 0:47:15.040 --> 0:47:18.560 the money is in there for operators. So we've seen 0:47:18.600 --> 0:47:21.920 fifteen billion dollars in bets in legal markets since the ruling. 0:47:22.000 --> 0:47:27.319 May the draft kings and give us perspective, it's not 0:47:27.600 --> 0:47:29.840 when you've got to remember that money wagered is not 0:47:29.960 --> 0:47:32.400 revenue for the book, right, So the revenue for the 0:47:32.400 --> 0:47:36.360 book is a small fractah, So it's not a huge 0:47:36.400 --> 0:47:40.359 industry yet, but it's growing fast um, and as more 0:47:40.440 --> 0:47:42.880 states come in, I think you're going to see an 0:47:42.920 --> 0:47:45.439 effect of that momentum once you get sort of more 0:47:45.480 --> 0:47:48.520 than half of the US population, than big national companies 0:47:48.520 --> 0:47:50.719 are gonna say this is effectively a national market and 0:47:50.760 --> 0:47:55.560 get in there well. And also you've had Professional League 0:47:55.640 --> 0:47:57.880 sort of tiptoe into this a little bit, right, and 0:47:57.880 --> 0:48:01.040 obviously there there could be a tipping point there where 0:48:01.080 --> 0:48:03.880 they are more open to the idea that this is happening. 0:48:03.920 --> 0:48:06.840 They basically have already flipped. They're saying, we're going to 0:48:07.000 --> 0:48:09.680 sign deal marketing deals. We're going to try to insist 0:48:09.760 --> 0:48:12.600 that our data, our official data, is used and that 0:48:12.680 --> 0:48:16.319 we get paid for it um and really lead the 0:48:16.320 --> 0:48:18.919 way on that right, Yes, yeah, and so they they've 0:48:18.960 --> 0:48:21.120 had a lot of success in using data as the 0:48:21.120 --> 0:48:24.239 wedge to say it's our data, it's our official data. 0:48:24.280 --> 0:48:26.120 You need to use it, and you've got to pay 0:48:26.200 --> 0:48:28.200 us for it. So I love in this line that 0:48:28.440 --> 0:48:30.880 in the story you talk about handicapping and how it 0:48:31.200 --> 0:48:33.360 has often been a shady business. Still feels like a 0:48:33.400 --> 0:48:36.120 shady business. There is a lot and and the Internet, 0:48:36.160 --> 0:48:38.560 as with everything else, has sort of multiplied it and 0:48:38.600 --> 0:48:41.000 morphed it in weird ways. So there are a lot 0:48:41.040 --> 0:48:45.000 of scam artists using Twitter and and that to basically say, I, 0:48:45.320 --> 0:48:48.279 you know, I'm infallible. Uh, my picks are always right. 0:48:48.280 --> 0:48:51.439 They're usually somehow shading the truth, if not outright lying 0:48:51.440 --> 0:48:53.879 about that and then trying to get you to pay 0:48:53.920 --> 0:48:56.160 a little money over Venmo, you know, for picks. And 0:48:56.160 --> 0:48:59.120 that's Ira boot way. He covers so much in the 0:48:59.160 --> 0:49:02.200 world of sports, and we talked to him earlier about 0:49:02.360 --> 0:49:05.280 Joe Side. That was a fascinating look at a really 0:49:05.320 --> 0:49:09.120 important figure. Well, one of the big elements in sports 0:49:09.239 --> 0:49:11.920 right now is sports betting. It was a huge topic 0:49:12.120 --> 0:49:15.000 when we were in Miami ahead of the Super Bowl. So, Carol, 0:49:15.040 --> 0:49:17.000 I want to play part of my conversation that I 0:49:17.040 --> 0:49:19.440 had with Chris Paul. I should know this was recorded 0:49:19.440 --> 0:49:21.799 here at Bloomberg headquarters a few weeks ago before the 0:49:21.800 --> 0:49:26.000 tragic passing of Kobe Bryant. And yet when I hear 0:49:26.360 --> 0:49:30.440 this interview, it's a reminder of the strong influence Kobe 0:49:30.480 --> 0:49:35.120 had on how modern players this generation, players like Chris Paul, 0:49:35.280 --> 0:49:39.040 really approached the game and their businesses. Here's your conversation. 0:49:39.400 --> 0:49:43.520 So Chris, let's start just talking business. How do you 0:49:43.880 --> 0:49:47.719 define your business world? How do you sort of put 0:49:47.719 --> 0:49:52.000 it all in perspective? And Um, first and foremost, I'm 0:49:52.440 --> 0:49:56.000 very blessed and fortunate to have an amazing team around me. Uh, 0:49:56.080 --> 0:49:58.839 it's never just me. I have an amazing team, Uh, 0:49:59.000 --> 0:50:01.720 starting with my older brother who's been with me since 0:50:02.200 --> 0:50:06.000 day want obviously since he's an older brother. But um, 0:50:06.360 --> 0:50:11.000 through NBA experiences, through business through learning, have tried to 0:50:11.120 --> 0:50:14.000 learn as much as possible. Obviously being involved with the 0:50:14.080 --> 0:50:16.399 Union has taught me a lot too, so just trying 0:50:16.440 --> 0:50:19.480 to be a sponge. And so when you think about 0:50:20.239 --> 0:50:25.080 kind of identifying opportunities, is there an overarching theme that 0:50:25.120 --> 0:50:26.880 you're going for, Because I would imagine people come to 0:50:26.880 --> 0:50:29.320 you with ideas all the time, come to you with opportunities. 0:50:29.640 --> 0:50:32.080 What's the screen? You know? It's funny when I was 0:50:32.120 --> 0:50:33.960 younger and I first came into the league, used to 0:50:34.000 --> 0:50:37.400 hear about endorsements, Oh this, players endorsing this, and endorsing that. 0:50:38.040 --> 0:50:40.800 As I got older, I started to realize that the 0:50:41.239 --> 0:50:44.040 vetting process for any business deal or anything, it has 0:50:44.080 --> 0:50:46.360 to be true to who I am and true to 0:50:46.480 --> 0:50:50.319 what I believe in. And so, um, there's been partnerships. 0:50:50.440 --> 0:50:53.120 There's no such thing really now as endorsement deals are 0:50:53.120 --> 0:50:56.759 as partnerships and things that um, I really believe in 0:50:56.840 --> 0:51:00.040 and products that I use or that you know, I 0:51:00.040 --> 0:51:02.799 really want to see come into fruition. And how often 0:51:02.800 --> 0:51:05.960 do you say now a lot? Yes, yes, you know 0:51:06.080 --> 0:51:09.359 it's it's one of those things where um, I am 0:51:09.400 --> 0:51:12.480 a people person. I love to, you know, engage and talk, 0:51:12.600 --> 0:51:14.960 but you have to learn to say no, or at 0:51:15.040 --> 0:51:17.799 least have somebody on your team and that can say no. 0:51:18.560 --> 0:51:21.640 So it feels like you are building a platform as 0:51:21.640 --> 0:51:24.640 it right. You know, I look across your media activities, 0:51:24.719 --> 0:51:29.400 your partnerships, your investments. How do you sort of break 0:51:29.440 --> 0:51:31.960 that up in terms of figuring out you know, you 0:51:31.960 --> 0:51:33.919 want to focus more media, you want to focus more 0:51:33.960 --> 0:51:37.440 on more traditional partnerships a state farmer, Nike or or 0:51:37.719 --> 0:51:40.200 or what have you. How do you sort of bucket it? 0:51:40.480 --> 0:51:42.480 You know, it's funny you ask that, because it's almost 0:51:42.520 --> 0:51:45.640 like being an athlete when you talk about playing basketball. 0:51:45.719 --> 0:51:47.959 I don't just say that I just shoot. I don't 0:51:48.040 --> 0:51:52.560 just dribble. I don't just uh, you know, block or dunk. 0:51:52.600 --> 0:51:55.120 I don't really do that much anymore. But but I 0:51:55.200 --> 0:51:58.240 try to stay as well around it as possible and 0:51:58.719 --> 0:52:01.440 try to dip in different avenues, you know, whether it 0:52:01.440 --> 0:52:05.600 be entertainment, whether it be focusing on nutrition, which is 0:52:05.239 --> 0:52:08.160 a big part of my life. And you know, this 0:52:08.239 --> 0:52:11.520 is my fifteenth year in the NBA, so I focus 0:52:11.600 --> 0:52:14.479 on on a few different things. And so how much 0:52:14.520 --> 0:52:18.320 do you think about dare I say, a post NBA 0:52:18.480 --> 0:52:20.840 career and and how much of what you're doing in 0:52:20.960 --> 0:52:25.520 business is about setting you up not just financially but 0:52:25.520 --> 0:52:30.479 but almost mentally for what that career looks like after 0:52:30.520 --> 0:52:34.520 the league. Yeah, there never be anything I believe that 0:52:34.680 --> 0:52:37.239 drives me the way basketball is. You know, you never 0:52:37.320 --> 0:52:40.200 say like I'm ready for it to be over. I 0:52:40.200 --> 0:52:42.920 don't think any athlete ever says that. But I'm always 0:52:42.960 --> 0:52:46.160 just trying to learn and be a sponge and a 0:52:46.200 --> 0:52:49.120 lot of it is that is, uh, you know, sitting 0:52:49.160 --> 0:52:52.000 here even having the conversations with you, learning and talking. 0:52:52.080 --> 0:52:55.359 And I have a few mentors out there that I'm 0:52:55.400 --> 0:52:58.279 constantly on the phone with just trying to understand the world. 0:52:58.440 --> 0:52:59.759 You know, a lot of people want to know what 0:52:59.840 --> 0:53:01.960 is it like when you hit a game winning shot? 0:53:02.200 --> 0:53:04.759 You know me, I'm like, what was it like when 0:53:04.760 --> 0:53:08.200 you close that deal? How did you have these hard conversations? 0:53:08.280 --> 0:53:12.759 And I think those experiences help you for the business world. 0:53:12.960 --> 0:53:15.320 I want to talk about a few specific deals and 0:53:15.640 --> 0:53:18.160 partnerships that you have. One of which we've spent a 0:53:18.200 --> 0:53:20.799 lot of time over the last year talking about, is 0:53:20.840 --> 0:53:23.920 Beyond Me. You were early to that, Uh, you were 0:53:24.239 --> 0:53:28.200 plant based as of last year. I believe clearly this 0:53:28.239 --> 0:53:30.440 is something you believe in. But tell me about it 0:53:30.480 --> 0:53:33.680 from a business perspective. Yeah, so Ethan from Beyond Me 0:53:33.760 --> 0:53:36.799 who was amazing, and I had an opportunity to get 0:53:36.800 --> 0:53:39.000 involved in it, and I actually got a chance to 0:53:39.040 --> 0:53:42.759 executive produce a documentary called Game Change Right. And so 0:53:42.960 --> 0:53:45.440 as an athlete, you're always trying to figure out different 0:53:45.480 --> 0:53:48.560 ways to to get an edge to whether that's training, 0:53:48.600 --> 0:53:52.200 whether that's working out, and once I've seen game changers, 0:53:52.360 --> 0:53:56.440 and um, you know, I saw what the other athletes 0:53:56.480 --> 0:53:59.000 were saying. I was like, hold on, I gotta try this. Yeah, 0:53:59.080 --> 0:54:02.799 I gotta try this. And obviously beyond meat has has 0:54:02.840 --> 0:54:06.000 been amazing. Like you said, you had the beyond meat 0:54:06.000 --> 0:54:08.319 sausages I did I could get last night, you know. 0:54:09.080 --> 0:54:13.600 And for me, um, it's just it's been life changing 0:54:13.600 --> 0:54:15.440 for me in the way that my body feels and 0:54:15.520 --> 0:54:18.480 the way that you know, I can bounce back back 0:54:18.520 --> 0:54:22.480 to backs, and it's you know, you know a lot 0:54:22.480 --> 0:54:24.680 of times you hear people talk about diet, diet has 0:54:24.719 --> 0:54:26.840 to be a lifestyle change, and for me, for me, 0:54:26.960 --> 0:54:30.560 I would say it's helped. So from a business perspective, 0:54:30.640 --> 0:54:34.760 you've also as a player, seen a lot of different cities, 0:54:34.760 --> 0:54:37.240 a lot of different business cultures in a way, and 0:54:37.560 --> 0:54:39.719 you know, I think about l A obviously, I think 0:54:39.719 --> 0:54:43.560 about Houston, I think about Oklahoma City. Now at this point, 0:54:43.840 --> 0:54:46.320 what have you learned from sort of those different markets 0:54:46.320 --> 0:54:49.480 from a business perspective. That's a great that's a great question. 0:54:49.640 --> 0:54:53.560 And I've had a number of teams that I played for. Obviously, 0:54:53.600 --> 0:54:56.359 when I was with the Clippers, Steve Balmber, you know, 0:54:56.680 --> 0:54:58.359 took over as owner of the team, so I got 0:54:58.400 --> 0:55:00.759 a chance to see how he dealt with different things. 0:55:01.040 --> 0:55:04.759 Being in Oklahoma City has been amazing. Also. One of 0:55:04.800 --> 0:55:07.399 the first things that we did that you don't see 0:55:07.400 --> 0:55:09.479 a lot of times around the league is the day 0:55:09.719 --> 0:55:12.400 a few days before training camp, we had a huge cookout, 0:55:12.880 --> 0:55:16.000 a huge cookout where everybody in the organization brought their families, 0:55:16.520 --> 0:55:18.120 you know, and in the league where a lot of 0:55:18.120 --> 0:55:21.040 times it's just ball ball ball, it was nice to 0:55:21.719 --> 0:55:25.080 you know, see, uh, the guys who handle our tickets 0:55:25.120 --> 0:55:28.160 with their kids and with their family, and like I said, 0:55:28.200 --> 0:55:32.239 it's just learning, learning, because uh, in any business, I 0:55:32.280 --> 0:55:34.640 think most people want to try to create that family 0:55:34.680 --> 0:55:36.440 and that culture. And I think that was really nice 0:55:36.480 --> 0:55:39.160 in Oklahoma City. And so what is it like playing 0:55:39.200 --> 0:55:42.040 in sort of a smaller market in a lot of ways? 0:55:42.040 --> 0:55:44.719 I mean much has been written and talked about with 0:55:44.800 --> 0:55:48.839 Oklahoma City from a basketball perspective, specifically hitting way above 0:55:48.880 --> 0:55:51.520 its weight. I mean, this is not a new phenomenon, 0:55:51.600 --> 0:55:53.880 but I do wonder what that experience is like for 0:55:53.920 --> 0:55:56.960 you It's been great. And probably I'm a little biased 0:55:57.000 --> 0:55:59.920 because I actually started my career in Oklahoma after her 0:56:00.040 --> 0:56:02.040 can train them, right. You know, I spent two years 0:56:02.080 --> 0:56:05.360 there in that fan base. Nothing like it, nothing like 0:56:05.440 --> 0:56:07.840 it the way they support you a night in the 0:56:07.960 --> 0:56:10.920 night out. Um. You know, they may call it a 0:56:11.000 --> 0:56:13.520 small market, but the fans, they have big hearts and 0:56:13.560 --> 0:56:17.680 they're behind you night in and night out, and so um, 0:56:17.760 --> 0:56:21.200 it's nice. I've been able to experience both, and you know, 0:56:21.400 --> 0:56:23.879 I love both of them. Well. It's also interesting, I think, 0:56:23.920 --> 0:56:26.040 even from a player perspective, to think about sort of 0:56:26.080 --> 0:56:28.560 the legacy of players that you're obviously now I'm part 0:56:28.600 --> 0:56:31.840 of that have gone through that franchise, that have raised 0:56:31.880 --> 0:56:35.200 it to a national prominence that that maybe you don't 0:56:35.239 --> 0:56:39.640 see even another sports And I tell you to be 0:56:39.800 --> 0:56:43.480 part of that. Oklahoma city history and culture is special 0:56:43.520 --> 0:56:46.480 and like I said, uh myself, with David West and 0:56:46.520 --> 0:56:48.399 the number of guys we got a chance to start 0:56:48.440 --> 0:56:52.040 out there when they were basically auditioning for a team. 0:56:52.239 --> 0:56:56.000 And then you know, Katie Russ, Nick Collins and James 0:56:56.040 --> 0:57:00.440 all those guys come through and that city show what 0:57:00.520 --> 0:57:03.680 it was capable of, and you know, a team will 0:57:03.719 --> 0:57:07.799 be there probably forever. Yeah. So you mentioned your role 0:57:07.880 --> 0:57:09.160 in the union, and I want to talk to you 0:57:09.200 --> 0:57:13.040 about that because obviously a very important position. Uh, not 0:57:13.280 --> 0:57:17.840 one without controversy, not one without some conflicted and conversation. 0:57:18.080 --> 0:57:20.400 What's the biggest thing you've learned from from holding that role. 0:57:20.440 --> 0:57:24.160 You've been in that job for a while now, Yeah, right, 0:57:24.480 --> 0:57:27.600 that sounds about right. I'm like, uh, may feel longer, 0:57:27.680 --> 0:57:31.400 but I've learned so much, so much. UM. I've always 0:57:31.400 --> 0:57:34.280 said this, I went to college for two years. No 0:57:34.480 --> 0:57:37.880 business class could teach me the on job training that 0:57:38.000 --> 0:57:42.560 I've learned as president of the union. Um. From the 0:57:42.600 --> 0:57:44.920 other players on the executive committee. You know, you just 0:57:45.000 --> 0:57:48.160 learn how to talk and communicate with people. Michelle Robberts, 0:57:48.160 --> 0:57:51.400 our executive director, She's taught me so much, other people 0:57:51.440 --> 0:57:54.240 that work within the union, the conversations I've had an 0:57:54.240 --> 0:57:57.600 opportunity to have with Adam Silver, you know, just constantly 0:57:57.880 --> 0:58:00.920 learning and really understanding the business of the game. Because 0:58:00.920 --> 0:58:03.480 as a kid, when you're in the backyard, you just like, 0:58:03.920 --> 0:58:06.160 you know, I'm m J I want to play in 0:58:06.160 --> 0:58:09.000 the n b A. You never think about the business 0:58:09.040 --> 0:58:14.040 of it. And so to learn that has has truly been. Um, 0:58:15.000 --> 0:58:19.400 just it's so valuable, right you mentioned Michelle Roberts. I 0:58:19.440 --> 0:58:22.560 know that some succession planning is going on there. Where 0:58:22.600 --> 0:58:25.720 are you at that point? But what do we see next? Um, 0:58:26.320 --> 0:58:29.920 first and foremost is not just Michelle, you know, it's myself, 0:58:30.000 --> 0:58:32.320 you know, I Dragon Dollar. We have board members and 0:58:32.360 --> 0:58:35.440 stuff that have been in this position for for a while. 0:58:35.640 --> 0:58:38.280 And that's why I say the importance of mentors and 0:58:38.360 --> 0:58:43.720 businesses and uh, one of my you know, huge mentors 0:58:43.720 --> 0:58:46.800 and and Eiger is that's one of the first things 0:58:46.800 --> 0:58:51.200 he said. Yeah, yeah, for those of us who don't 0:58:51.320 --> 0:58:53.960 call one of one of one of the first things 0:58:53.960 --> 0:58:56.360 that he sort of you know, told me years ago 0:58:56.480 --> 0:58:59.000 is that succession planning is real if we want the 0:58:59.080 --> 0:59:02.000 union to be a real business. You know, most big 0:59:02.040 --> 0:59:05.640 businesses have succession plan and so that's all it is, right, 0:59:05.720 --> 0:59:08.360 So what what's the most important element of succession planning 0:59:08.400 --> 0:59:12.280 for that particular part of the organization. Just making sure 0:59:12.320 --> 0:59:14.760 that whoever the next person in the line is no 0:59:15.760 --> 0:59:18.320 about the conversations that are being had now. And so 0:59:18.400 --> 0:59:20.440 that's what I'm doing also with other guys that's on 0:59:20.480 --> 0:59:22.400 the board and trying to find out who may be 0:59:22.560 --> 0:59:25.400 interested in being the president after me, right, you know, 0:59:25.440 --> 0:59:28.240 and just making sure that you know, if there's conversations 0:59:28.280 --> 0:59:31.800 being had now, they're involved on them. That way, if 0:59:31.840 --> 0:59:34.640 they do take over, it's not just brand new And 0:59:34.680 --> 0:59:39.000 that's NBA star Chris Paul, you know, beyond meat state farm, 0:59:39.440 --> 0:59:43.200 so many things that he is constantly thinking about, taking 0:59:43.200 --> 0:59:46.000 care of his family and sort of being there for them, 0:59:46.240 --> 0:59:50.040 all the things that happen in the modern life of 0:59:50.080 --> 0:59:52.600 an NBA player. Well, I think, and it's interesting you're 0:59:52.600 --> 0:59:55.240 seeing athletes that's no longer just here's my name, put 0:59:55.280 --> 0:59:58.560 it on merchandise or what have you. They're very, very involved. 0:59:58.600 --> 1:00:00.479 I feel like in the investments that there and even 1:00:00.560 --> 1:00:03.400 the terms that he uses. He doesn't do sponsorships, he 1:00:03.440 --> 1:00:07.000 does partnerships, and it's a much more holistic approach to 1:00:07.120 --> 1:00:09.200 be sure. Well, that wraps up the weekend edition of 1:00:09.240 --> 1:00:11.680 Bloomberg Business Week from Bloomberg Radio. Thank you so much 1:00:11.680 --> 1:00:13.920 for joining us. I'm Jason Kelly and I'm Carol Masser. 1:00:14.040 --> 1:00:16.240 Be sure to tune into Bloomberg Business Week Radio Live 1:00:16.240 --> 1:00:18.760 Monday through Friday starting at two pm Wall Street Time. 1:00:18.960 --> 1:00:21.120 And you can't catch us live, get our daily podcast 1:00:21.360 --> 1:00:23.680 wherever you download your podcast. You can also watch the 1:00:23.680 --> 1:00:26.720 show live on YouTube. Just search for Bloomberg Global News, 1:00:26.840 --> 1:00:29.160 and you can get this week's edition of the magazine 1:00:29.240 --> 1:00:31.480 on newsstands now. Will be back next week at the 1:00:31.560 --> 1:00:33.200 same time. This is Bloomberg