WEBVTT - LIV Golf CEO Scott O'Neil Talks State of LIV Golf

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>So let's talk about the state of Live Golf. I

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<v Speaker 2>know you've said before you need about three years to

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<v Speaker 2>reach profitability at this moment. What is the amount of

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<v Speaker 2>funding you're looking for and how's the journey to getting

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<v Speaker 2>that funding.

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<v Speaker 1>Sure, we're looking at raising three hundred million dollars and

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<v Speaker 1>we're talking to a combination of traditional private equity investors

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<v Speaker 1>that invest in sports, talking to family offices, and a

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<v Speaker 1>group that I would characterize as sports team owner billionaires.

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<v Speaker 1>And they take place mostly in North America, a good

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<v Speaker 1>healthy dose in the UK and some in Europe, and

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<v Speaker 1>then of course some in Asia, Australia and South Africa.

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<v Speaker 3>What kind of rights are people demanding, what kind of

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<v Speaker 3>stakes are they looking at? Just give me a sense

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<v Speaker 3>of what the conversations look like and how they're shaping up.

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<v Speaker 1>You know, it's a really interesting dynamic in that we

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<v Speaker 1>have billions of dollars of nls net operating losses that

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<v Speaker 1>we believe we can carry forward with the business, and

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<v Speaker 1>so that has us structuring the company in a very

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<v Speaker 1>unique way. So we're spending a lot of time with

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<v Speaker 1>investors really understanding how to best preserve those nls, which

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<v Speaker 1>is for me, you know, I love my way around

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<v Speaker 1>a deal and being able to work with the advisors

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<v Speaker 1>we have and do Sarah our Bank has been.

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<v Speaker 4>Quite an experience.

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<v Speaker 3>So it's not just a stake in the League that

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<v Speaker 3>perhaps people are looking for. They might also have team

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<v Speaker 3>level investments that they could be looking to achieve.

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<v Speaker 1>Yes, absolutely, I'll just take you to tell you little stories.

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<v Speaker 1>Is when I was at Madison Square Guarden. I was

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<v Speaker 1>the psident of Madison Square Garden. I started in two

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<v Speaker 1>thousand and eight. You very well know what was happening

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<v Speaker 1>in two thousand and eight with the financial crisis, and

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<v Speaker 1>the Knicks were valued around six hundred million.

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<v Speaker 4>The New York Rangers were valued about four hundred million.

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<v Speaker 1>And they look today and there isn't a person on

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<v Speaker 1>the planet that would value in the New.

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<v Speaker 4>York Nicks under ten billion dollars, especially on now, and.

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<v Speaker 1>Not a person on the planet that would value the

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<v Speaker 1>New York Rangers under four billion. And you think about

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<v Speaker 1>this growth in team valuation, and that's what we think

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<v Speaker 1>is the economic engine and to drive lives. So when

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<v Speaker 1>you invest in the league, you also get stakes in

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<v Speaker 1>all the teams.

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<v Speaker 2>I mean Live also just had this really unique prospect

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<v Speaker 2>coming in. But the PGA responded. It responded with mega purses,

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<v Speaker 2>giving players some steaks and in certain tournaments. Now that

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<v Speaker 2>the PJA has responded, what is Live's usp What is

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<v Speaker 2>your unique selling point in which you exist in the

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<v Speaker 2>golf world.

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<v Speaker 1>As I think the PGA Tour does a wonderful job

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<v Speaker 1>serving the three hundred and forty million US golf fans,

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<v Speaker 1>it's the eight billion that I work at work with,

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<v Speaker 1>and so we operate on five continents or in ten

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<v Speaker 1>countries and incredible golf markets that are growing like a weed.

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<v Speaker 1>And so the whole bet is is are you buying

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<v Speaker 1>the eight billion or are you buying the three hundred

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<v Speaker 1>and forty million? And I love the three hundred and

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<v Speaker 1>forty million million bet for the PGA Tour. I just

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<v Speaker 1>like the Live Golf bet for the eight billion a

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<v Speaker 1>lot more.

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<v Speaker 2>I mean a lot of people would look at Live

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<v Speaker 2>and say, one of the unique selling points is the

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<v Speaker 2>talent that you're able to bring over Sham, one of

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<v Speaker 2>the faces of Live Golf. His contract comes up in October.

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<v Speaker 2>Can you get him back?

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<v Speaker 4>Oh? Absolutely?

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<v Speaker 1>You know, we have stars like Bryson d Chambeau and

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<v Speaker 1>John Rahm and Terrell Hatt and Dustin Johnson, camp Smith

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<v Speaker 1>household names. The difference with this league more than any

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<v Speaker 1>other business I've ever been a part of it.

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<v Speaker 4>I've been a part of.

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<v Speaker 1>A few, is that this league was built for by

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<v Speaker 1>and through the players.

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<v Speaker 2>Yeah, but isn't it just you paid them a lot

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<v Speaker 2>so they came over?

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<v Speaker 4>Can you still do that?

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<v Speaker 1>But we're actually like building it for them, so they'll

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<v Speaker 1>actually be the majority owners of this business going forward.

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<v Speaker 1>And there hasn't been a time in history where players

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<v Speaker 1>have owned a majority of a league, and that's a

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<v Speaker 1>pretty special opportunity. I think also some players want something different.

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<v Speaker 1>Some and none are the same. But some, you know,

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<v Speaker 1>maybe grew up in Australia like camp Smith, or grew

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<v Speaker 1>up in Korea like ben On, or grew up in

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<v Speaker 1>the UK like Ian Poulter, or Sergio Garcia who grew

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<v Speaker 1>up in Spain, and they think, you know, it'd be

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<v Speaker 1>good to travel the world, it'd be good to grow

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<v Speaker 1>the game around the world and give back. And maybe

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<v Speaker 1>maybe they live in the US, or maybe they live

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<v Speaker 1>in Dubai, or maybe they live in South Africa. So

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<v Speaker 1>I don't think there's one shoe fits all. I think

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<v Speaker 1>for someone who wants to change the game, wants to

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<v Speaker 1>play for a big prize, persons who wants to be

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<v Speaker 1>part of a team. That's the other kind of interesting

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<v Speaker 1>part of Live Golf is where we operate in teams.

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<v Speaker 1>And you don't have to look too much further than

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<v Speaker 1>the World Cup to understand the nationalism going on. So

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<v Speaker 1>we have Team Ripper is an Australian team, the Southern

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<v Speaker 1>Guards is a South African team, the Korean Golf Club

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<v Speaker 1>is a Korean team, and there's so much affinity when

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<v Speaker 1>we go to these markets rooting for their home clubs.

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<v Speaker 3>As part of your pitch to investors, the idea is

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<v Speaker 3>that you're going to change Live Golf's business model absolutely

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<v Speaker 3>pretty dramatically. What do you expect to be the main

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<v Speaker 3>driver revenue in five years time that doesn't exist today?

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<v Speaker 1>Well, I can tell you I've been here for eighteen months,

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<v Speaker 1>so this is about a five year old league. And

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<v Speaker 1>the one thing I noticed very quickly is that bringing

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<v Speaker 1>in sponsors which we have like Rolex and HSBC and

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<v Speaker 1>Salesforce and Qualcomm and Ping and Calaries, some of these

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<v Speaker 1>glove Moble brands, that's an important component of any golf business.

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<v Speaker 1>We also moved our television from the CW in the

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<v Speaker 1>US to Fox Sports, and we moved to TNT in

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<v Speaker 1>the UK and we actually got into almost a billion

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<v Speaker 1>homes around the world, and so I think TV disution

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<v Speaker 1>will be a key part. But maybe equally as important

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<v Speaker 1>is the impact you mentioned Bryson d Chambau. The impact

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<v Speaker 1>he has on YouTube and YouTube golf is unmatched anywhere

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<v Speaker 1>in the world. This guy is a bona fide like

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<v Speaker 1>mister Beast of sports, and I think that's the area

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<v Speaker 1>when I go to whether we're heading out to the

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<v Speaker 1>US Open, at the Majors or the Math the Masters,

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<v Speaker 1>I'm sitting next to young kids their favorite golfer is

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<v Speaker 1>Bryson DHMBO because he reaches them in a different place,

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<v Speaker 1>and I think that part of growing the game matters

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<v Speaker 1>as well.

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<v Speaker 3>Twelve million followers across all the major social media platforms

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<v Speaker 3>counts for a lot. I'm curious what is the role

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<v Speaker 3>of Saudi Arabia in live golf now at the PIFF.

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<v Speaker 3>Does it still own about ninety five percent? Is it

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<v Speaker 3>helping to source investors in any way? Would it consider

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<v Speaker 3>resuming funding if there's a certain level of him that.

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<v Speaker 4>You do get. You know, PIF's been very clear with us.

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<v Speaker 1>They've been really good, positive, solid investors with us, and

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<v Speaker 1>they've been really clear they're going to fund through the season,

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<v Speaker 1>and it's up to us to make sure that we

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<v Speaker 1>spend all our waking hours finding the next investors and

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<v Speaker 1>we're up to the task.

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<v Speaker 2>By the way, the sports media was pretty excited when

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<v Speaker 2>it saw you with the PGA CEO at the Masters

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<v Speaker 2>in April. Can you clear up any of the little

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<v Speaker 2>rumor mill Might there be some sort of arrangement between

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<v Speaker 2>you and the PGA still in the works and sort

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<v Speaker 2>of ecosystem that might exist.

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<v Speaker 4>Just listen.

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<v Speaker 1>I walked into a very rocky, rough environment with the

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<v Speaker 1>ecosystem and lift golf, and that's been moved out pretty

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<v Speaker 1>dramatically and pretty quickly, and we have very productive conversations

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<v Speaker 1>throughout the ecosystem. We were granted world ranking points, which

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<v Speaker 1>has been great. We've gotten direct pathways for our players

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<v Speaker 1>to qualify for the US Open and the Open Championship, wonderful.

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<v Speaker 1>When we go to the majors or talk to other

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<v Speaker 1>bodies in the marketplace, we've been treated very well.

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<v Speaker 2>So that is that a know, nothing else needs to

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<v Speaker 2>kind of be worked out with the PGA at this moment,

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<v Speaker 2>or might there still be some conversation.

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<v Speaker 3>You know.

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<v Speaker 1>I think over time the world of golf will open up,

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<v Speaker 1>but our one hundred percent focus right now is making

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<v Speaker 1>sure that we find the right investors to carry us forward.

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<v Speaker 2>By the way US Open this weekend, I'm sure you're attending,

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<v Speaker 2>who's your money on at this moment? Scotty looks good,

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<v Speaker 2>Tommy Fleetwood, people love him.

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<v Speaker 4>Those are not my choices.

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<v Speaker 1>No, John Rahm is playing elite golf. I think he's

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<v Speaker 1>one of the best golfers on the planet. He does

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<v Speaker 1>it at an excellent level all the time. You can

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<v Speaker 1>never count out a two time winner of the US

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<v Speaker 1>Open like Bryson d. Chambeau, who again is the most

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<v Speaker 1>dynamic player I've ever seen, athlete I've ever been around.

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<v Speaker 1>And then Terrell Hattan just won our last event in Valderama.

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<v Speaker 1>He's playing well, and Dustin Johnson seems to have found

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<v Speaker 1>an electric putter, and Cam Smith cannot seem to miss

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<v Speaker 1>the fairway off the drive and when he does that,

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<v Speaker 1>there's nobody better one hundred and fifty yards. And then

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<v Speaker 1>so those are my big five all right, mark it down.

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<v Speaker 3>And on that one, you mentioned you worked at MSG,

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<v Speaker 3>and of course you worked at the NBA as well.

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<v Speaker 3>On top of that, you graduated from Villanova, So I'm

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<v Speaker 3>guessing that you might have rooted for one team in

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<v Speaker 3>that it was Musty.

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<v Speaker 1>TELEVI in the O'Neil house, and I have a daughter

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<v Speaker 1>who's a freshman and Eliza at Villanova now, so so

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<v Speaker 1>very much connected. And when Jay Wright was the coach,

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<v Speaker 1>I was very connected to that program. And I had

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<v Speaker 1>a chance to be around Jalen and Michael and of

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<v Speaker 1>course Josh Hart, who's my favorite NBA player, And I

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<v Speaker 1>will tell you they represent everything that's right about sports,

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<v Speaker 1>everything that's right about Villanova, and everything that's right about

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<v Speaker 1>the NBA.

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<v Speaker 4>They played team basketball better.

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<v Speaker 1>Yet they're wonderful human beings and great examples for New York.

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<v Speaker 1>And we needed it in the city. We needed a lift,

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<v Speaker 1>and we got it.

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<v Speaker 3>And the NBA needed it too. It's a great, long

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<v Speaker 3>awaited championship for us.

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<v Speaker 4>Do just fine. My good friend on Silver, he's done

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<v Speaker 4>just okay.

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<v Speaker 1>When he announced an expansion franchise somewhere between seven and

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<v Speaker 1>nine billion dollars, I just kind of winked and said

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<v Speaker 1>that's okay, and that's what we're heading. That's what we

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<v Speaker 1>keep talking about is is that you can't look past

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<v Speaker 1>franchise values. When I started at the Philadelphia Eagles in

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<v Speaker 1>nineteen ninety five, jeff Looyd had bought that team for

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<v Speaker 1>one hundred and eighty eight million dollars and everyone's.

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<v Speaker 4>Like, well, they said, you are crazy. He just sold

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<v Speaker 4>a piece of that for eight billion.

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<v Speaker 1>So you look at where franchise values are going, and

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<v Speaker 1>then you look at how many.

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<v Speaker 4>Global options do you have in sports? There's Formula one,

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<v Speaker 4>there's Moto GP, and.

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<v Speaker 1>There's lift golf, and that's it, you know, And I

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<v Speaker 1>think I think we'll distinguish ourselves.

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<v Speaker 4>And the other thing I love about golf.

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<v Speaker 1>Is the leaders of the free world play golf, leaders

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<v Speaker 1>of countries play golf, and of fortune, five hundred CEOs

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<v Speaker 1>play golf, and half of New York City and so

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<v Speaker 1>I think we have a really good opportunity in a

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<v Speaker 1>sport people love. I don't think there's a better business

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<v Speaker 1>development opportunity in the world. And then playing in a

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<v Speaker 1>pro am next to some of the best players in

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<v Speaker 1>the world, or seeing the world class hospitality and actually

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<v Speaker 1>driving business,