1 00:00:00,360 --> 00:00:03,960 Speaker 1: Welcome to Bloomberg's Business of Sports Michael Barr with Scott 2 00:00:04,000 --> 00:00:08,399 Speaker 1: Sashnik and Bloomberg Sports business reporter Evan Nobie Williams. Over 3 00:00:08,440 --> 00:00:10,639 Speaker 1: the next hour, we'll explore the big money issues in 4 00:00:10,680 --> 00:00:12,400 Speaker 1: the world of sports and talk to some of the 5 00:00:12,400 --> 00:00:16,040 Speaker 1: biggest players in the industry, and that includes the Houston Rockets. 6 00:00:16,160 --> 00:00:18,400 Speaker 1: They are on the verge of being sold for what 7 00:00:18,520 --> 00:00:21,319 Speaker 1: maybe a record price. Today we spend the hour with 8 00:00:21,360 --> 00:00:25,120 Speaker 1: a man in charge of the sale, Rockets CEO Tad Brown. 9 00:00:25,480 --> 00:00:28,680 Speaker 1: You know, they really hasn't been a professional sports franchise 10 00:00:28,800 --> 00:00:32,600 Speaker 1: that's been put up for sale at its zenis maybe ever. 11 00:00:32,800 --> 00:00:35,600 Speaker 1: We will have more of our interview with Houston Rockets 12 00:00:35,640 --> 00:00:39,280 Speaker 1: CEO Tad Brown in a few minutes, but first let's 13 00:00:39,320 --> 00:00:41,880 Speaker 1: look at the top Business of Sports stories of the week, 14 00:00:42,240 --> 00:00:45,519 Speaker 1: and Scott and Evan we will stay with basketball. You 15 00:00:45,640 --> 00:00:48,760 Speaker 1: have to find a way to pay for Stephen Curry's 16 00:00:48,920 --> 00:00:51,559 Speaker 1: two hundred million dollar contract. That's right. And remember you'll 17 00:00:51,560 --> 00:00:53,559 Speaker 1: never use your own money, right, That's rule number one 18 00:00:53,560 --> 00:00:56,520 Speaker 1: in business. Don't use your own money. So the Warriors 19 00:00:56,920 --> 00:00:59,640 Speaker 1: are looking at a roadmap that we've seen for a 20 00:00:59,680 --> 00:01:02,240 Speaker 1: long time. I'm from the NFL, they're going to make 21 00:01:02,280 --> 00:01:05,280 Speaker 1: their customers pay. They're moving into a new building, another 22 00:01:05,400 --> 00:01:08,760 Speaker 1: billion dollar expense, and they're going towards the personal seat 23 00:01:08,800 --> 00:01:11,760 Speaker 1: license model. For those unfamiliar, personal seat license means you 24 00:01:11,800 --> 00:01:15,040 Speaker 1: have to pay me for the right to then pay 25 00:01:15,120 --> 00:01:17,560 Speaker 1: me right of it exactly. And the genius of this 26 00:01:17,600 --> 00:01:19,839 Speaker 1: is they're saying they're gonna pay their fans back after 27 00:01:19,959 --> 00:01:22,600 Speaker 1: thirty years. So they're saying it's a loan. Really, you're 28 00:01:22,640 --> 00:01:24,880 Speaker 1: gonna get your money back if you're still with the team. 29 00:01:24,920 --> 00:01:26,640 Speaker 1: But that have amounts to thirty years where they can 30 00:01:26,680 --> 00:01:29,000 Speaker 1: do whatever they want with the money. They can invest it. 31 00:01:29,000 --> 00:01:31,200 Speaker 1: It's an interest free, tax free loan that works out 32 00:01:31,240 --> 00:01:33,600 Speaker 1: great for the Warriors. This is coming from a change 33 00:01:33,600 --> 00:01:35,319 Speaker 1: of recent change in the I R S. And you 34 00:01:35,319 --> 00:01:37,760 Speaker 1: know who petitioned the I R S for this designation, 35 00:01:38,360 --> 00:01:40,520 Speaker 1: the l A Rams and the l A Chargers. You 36 00:01:40,560 --> 00:01:43,640 Speaker 1: know why they made that petition because they are going 37 00:01:43,680 --> 00:01:45,760 Speaker 1: to do the very same thing. They're going to charge 38 00:01:45,800 --> 00:01:49,680 Speaker 1: the PSL, but repay it. I believe it's going to 39 00:01:49,720 --> 00:01:52,520 Speaker 1: be over fifty years, not thirty. They're gonna go fifty 40 00:01:52,600 --> 00:01:54,440 Speaker 1: years out. And this is not new in the NBA. 41 00:01:54,560 --> 00:01:58,040 Speaker 1: The Toronto Raptors. They are the first NBA team to 42 00:01:58,720 --> 00:02:02,600 Speaker 1: deal with the personal seat licenses. Listen, it's a it's 43 00:02:02,600 --> 00:02:06,520 Speaker 1: a revenue stream, that's it. These teams will do whatever 44 00:02:06,920 --> 00:02:10,160 Speaker 1: their customers allow them to do. If there's a market 45 00:02:10,240 --> 00:02:12,840 Speaker 1: for the seats, if it's that popular and people want 46 00:02:12,840 --> 00:02:15,280 Speaker 1: in that badly, they will pay the fee to then 47 00:02:15,320 --> 00:02:17,160 Speaker 1: go ahead and pay the fee. At least these I 48 00:02:17,200 --> 00:02:20,080 Speaker 1: know it's over multiple decades, but at least these you 49 00:02:20,120 --> 00:02:22,919 Speaker 1: get back in football right now, most of the teams 50 00:02:22,960 --> 00:02:25,640 Speaker 1: you just pay thousands, tens of thousands of dollars and 51 00:02:25,639 --> 00:02:28,040 Speaker 1: that's it. You're out the money. Well, like Scott Nevin 52 00:02:28,440 --> 00:02:31,480 Speaker 1: you just said earlier, Yes, it's like Alane, but you 53 00:02:31,560 --> 00:02:34,200 Speaker 1: have to stay for the entire what thirty years for 54 00:02:34,320 --> 00:02:36,280 Speaker 1: this because if you opt out of it, that's it. 55 00:02:36,320 --> 00:02:38,040 Speaker 1: You're not gonna get your money back. Well, you can 56 00:02:38,080 --> 00:02:40,320 Speaker 1: sell the seat license. You can't make a profit on these, 57 00:02:40,480 --> 00:02:42,240 Speaker 1: that's one thing that the team is not allowing you 58 00:02:42,280 --> 00:02:44,720 Speaker 1: to do. But you can transfer the seat license to 59 00:02:44,760 --> 00:02:48,480 Speaker 1: somebody else, and as part of that transaction you could say, 60 00:02:48,480 --> 00:02:51,040 Speaker 1: when come do I get my money. This is what 61 00:02:51,040 --> 00:02:53,440 Speaker 1: happens when you have the best player in basketball, you've 62 00:02:53,440 --> 00:02:55,520 Speaker 1: got another one of the top three stars, you have 63 00:02:55,560 --> 00:02:57,959 Speaker 1: a new billion dollar arena coming in. When you're this 64 00:02:58,080 --> 00:03:01,280 Speaker 1: hot as the Warriors are, you can something. You forgot something. 65 00:03:01,320 --> 00:03:04,760 Speaker 1: Not only the great players they won, they won the championship. 66 00:03:04,800 --> 00:03:06,880 Speaker 1: When you win it all and you are the best 67 00:03:06,919 --> 00:03:09,840 Speaker 1: show in town and your front row seats are littered 68 00:03:09,880 --> 00:03:14,080 Speaker 1: with Silicon Valley billionaires, you can do this. So some 69 00:03:14,160 --> 00:03:17,000 Speaker 1: other teams in the NBA, I won't mention any names, 70 00:03:17,080 --> 00:03:20,360 Speaker 1: can't do this. No, if the demand is not there, 71 00:03:20,680 --> 00:03:23,720 Speaker 1: If you have empty seats in your arena, do you 72 00:03:23,760 --> 00:03:26,720 Speaker 1: think you're gonna get season ticket holders the ones you're 73 00:03:26,720 --> 00:03:28,560 Speaker 1: trying to get to pay money for the right to 74 00:03:28,600 --> 00:03:31,359 Speaker 1: then pay you money. Doesn't work that way, And as 75 00:03:31,440 --> 00:03:33,800 Speaker 1: g could probably get away with this, they don't because 76 00:03:33,800 --> 00:03:36,120 Speaker 1: it's such high demand in the corporate seats. But this 77 00:03:36,200 --> 00:03:40,200 Speaker 1: isn't for everybody. Another story we are following. Formula one's 78 00:03:40,200 --> 00:03:43,880 Speaker 1: new owner can't believe that there aren't more sponsors. I 79 00:03:43,920 --> 00:03:47,360 Speaker 1: can't believe that Formula one's new owner can't believe that 80 00:03:47,400 --> 00:03:49,840 Speaker 1: there are in the sponsors because when you pony up 81 00:03:49,880 --> 00:03:53,040 Speaker 1: all that money to buy a race series, you've looked 82 00:03:53,080 --> 00:03:55,640 Speaker 1: at the books, right, you know where the revenue comes from. 83 00:03:55,760 --> 00:04:00,200 Speaker 1: You know that there are opportunities. But John Malone and 84 00:04:00,320 --> 00:04:04,280 Speaker 1: Chase Carry his CEO, certainly knew that this is a 85 00:04:04,360 --> 00:04:06,920 Speaker 1: growth area for the support And I know you love 86 00:04:07,000 --> 00:04:09,320 Speaker 1: all this stuff open we were racing, not my thing, 87 00:04:09,360 --> 00:04:11,560 Speaker 1: but I know you love it. John Malone's Liberty Media 88 00:04:11,640 --> 00:04:15,680 Speaker 1: Corporation they bought Formula one for eight billion dollars back 89 00:04:15,800 --> 00:04:18,359 Speaker 1: in January. Even Yeah, this is posture. I mean, they 90 00:04:18,440 --> 00:04:21,240 Speaker 1: knew obviously that what the sponsorship portfolio looked like. And 91 00:04:21,279 --> 00:04:23,320 Speaker 1: this is why they bought it. They bought it because 92 00:04:23,320 --> 00:04:26,719 Speaker 1: the past owners weren't doing as good a job monetizing 93 00:04:26,720 --> 00:04:29,360 Speaker 1: the incredible amount of content they had and their incredible 94 00:04:29,400 --> 00:04:31,800 Speaker 1: popularity and the fact that, let's be honest, most of 95 00:04:31,839 --> 00:04:34,520 Speaker 1: the fans of Formula one are wealthy. You know, they're 96 00:04:34,520 --> 00:04:36,360 Speaker 1: willing to spend some time in Monaco, They're willing to 97 00:04:36,400 --> 00:04:40,279 Speaker 1: go to is exactly so you can monetize that. And 98 00:04:40,320 --> 00:04:41,960 Speaker 1: that's what they're doing. We saw it last week one 99 00:04:42,000 --> 00:04:45,080 Speaker 1: of the first deals Liberty signed with Formula one with Snapchat. 100 00:04:45,320 --> 00:04:47,320 Speaker 1: They're trying to reach out to younger folks. They're trying 101 00:04:47,320 --> 00:04:50,040 Speaker 1: to be hipper they're trying to be cooler. They realized 102 00:04:50,080 --> 00:04:52,680 Speaker 1: that if you can put together a quick video behind 103 00:04:52,720 --> 00:04:55,200 Speaker 1: the scenes of this car getting built or a driver 104 00:04:55,360 --> 00:04:57,600 Speaker 1: behind the wheel, there's a lot of content out there 105 00:04:57,640 --> 00:05:00,080 Speaker 1: that was not being used by previous owners that they 106 00:05:00,120 --> 00:05:01,960 Speaker 1: can do better with. I hope you guys aren't tired 107 00:05:01,960 --> 00:05:04,080 Speaker 1: of me talking about scalable media. I mean I do 108 00:05:04,120 --> 00:05:06,279 Speaker 1: it with almost every guest because it's so important to 109 00:05:06,279 --> 00:05:08,200 Speaker 1: the revenue streams of all the sports and the teams. 110 00:05:08,360 --> 00:05:10,680 Speaker 1: But here are some numbers. How about this McLaren Honda 111 00:05:10,720 --> 00:05:15,560 Speaker 1: twenty six corporate backers Ferrari, including a TI brewery, a 112 00:05:15,600 --> 00:05:19,320 Speaker 1: Spanish bank, a Russian cybersecurity firm and firm, and a 113 00:05:19,320 --> 00:05:22,359 Speaker 1: different Italian auto maker. This is global. So when you 114 00:05:22,360 --> 00:05:25,400 Speaker 1: have scalable media and we're talking digital, this is how 115 00:05:25,440 --> 00:05:29,160 Speaker 1: you reach the world. This is why this is valuable. 116 00:05:29,160 --> 00:05:31,520 Speaker 1: Proper companies want to be involved here, and if you're 117 00:05:31,520 --> 00:05:34,119 Speaker 1: out there publicly saying hey, I'm surprised that there aren't 118 00:05:34,120 --> 00:05:37,159 Speaker 1: more of them, you're essentially asking companies to call your number. 119 00:05:37,320 --> 00:05:40,360 Speaker 1: And a quick fact. Currently, right now F one they 120 00:05:40,400 --> 00:05:45,560 Speaker 1: have just five corporate sponsors. NASCAR, by comparison, has five 121 00:05:45,600 --> 00:05:50,760 Speaker 1: on every fender. And then another topic that we're following 122 00:05:50,760 --> 00:05:53,640 Speaker 1: here on the business of sports, let's talk about the 123 00:05:53,720 --> 00:05:56,760 Speaker 1: US Open singles champs. They will earn a record three 124 00:05:56,839 --> 00:06:00,680 Speaker 1: point seven million dollars. Yeah, it's the so seems to 125 00:06:00,720 --> 00:06:03,840 Speaker 1: be going up, and that's just a product of revenue 126 00:06:03,920 --> 00:06:07,200 Speaker 1: going up. So this is not surprising because they're finding 127 00:06:07,200 --> 00:06:11,160 Speaker 1: new ways to generate revenue. But I do like the fact, 128 00:06:11,200 --> 00:06:13,120 Speaker 1: this is my favorite fact of this whole thing, that 129 00:06:13,160 --> 00:06:14,720 Speaker 1: if you're lose in the first round, you get fifty 130 00:06:14,760 --> 00:06:17,240 Speaker 1: tho bucks. And we hear a lot about these folks 131 00:06:17,240 --> 00:06:18,840 Speaker 1: on the tour trying to make a living with a 132 00:06:18,920 --> 00:06:22,640 Speaker 1: lose money for coaches and meals and travel. This is 133 00:06:22,680 --> 00:06:24,720 Speaker 1: a good one. I mean, you could probably pay for 134 00:06:24,839 --> 00:06:28,040 Speaker 1: your season just by qualifying for the Open these days. 135 00:06:28,160 --> 00:06:30,800 Speaker 1: And the US Open is always trying to be the 136 00:06:30,839 --> 00:06:33,160 Speaker 1: biggest prize purs It's something that they take pride in. 137 00:06:33,200 --> 00:06:35,640 Speaker 1: It's something they put out a lot. As you've seen 138 00:06:35,800 --> 00:06:37,880 Speaker 1: in the past couple of years, wimbled in the French Open, 139 00:06:37,920 --> 00:06:40,719 Speaker 1: Australian Open. They're always increasing their price purses a little 140 00:06:40,720 --> 00:06:42,680 Speaker 1: bit each year as well. This is an attempt by 141 00:06:42,680 --> 00:06:45,560 Speaker 1: the US Open to keep themselves a little bit ahead 142 00:06:45,560 --> 00:06:47,800 Speaker 1: of what everyone else is doing. Evan Scott. The U 143 00:06:47,880 --> 00:06:50,839 Speaker 1: S Tennis Association announced that the total purse for the 144 00:06:50,839 --> 00:06:55,200 Speaker 1: tournament will be fifty point four million dollars. That's nearly 145 00:06:55,360 --> 00:06:58,080 Speaker 1: a nine increase from last year. Well, last year they 146 00:06:58,120 --> 00:07:00,479 Speaker 1: talked about the roof incessantly. Was all all about the 147 00:07:00,520 --> 00:07:02,320 Speaker 1: roof over the OSS Stadium. That was the star of 148 00:07:02,320 --> 00:07:04,080 Speaker 1: the tournament for the first week was this roof. They 149 00:07:04,120 --> 00:07:06,240 Speaker 1: were waiting for a little bit of rain. This year 150 00:07:06,279 --> 00:07:08,240 Speaker 1: they can talk about their prize money being the biggest 151 00:07:08,240 --> 00:07:10,920 Speaker 1: and the best. It's New York, it's the event. Everybody 152 00:07:10,960 --> 00:07:13,200 Speaker 1: associated with that tournament wants to make sure they know 153 00:07:13,480 --> 00:07:15,560 Speaker 1: we give away the most money. Now we're going to 154 00:07:15,680 --> 00:07:18,240 Speaker 1: turn to the biggest sports story of the week. Leslie 155 00:07:18,280 --> 00:07:22,840 Speaker 1: Alexander bought the Houston Rockets back in five million dollars 156 00:07:22,960 --> 00:07:25,880 Speaker 1: and now he has put the NBA team up for sale, 157 00:07:26,080 --> 00:07:28,960 Speaker 1: big money. Michael, the bankers I talked to say the 158 00:07:29,000 --> 00:07:31,160 Speaker 1: Rockets will get more than two billion dollars. Of course, 159 00:07:31,200 --> 00:07:33,040 Speaker 1: you know that's what Steve Balmer played for the Clippers. 160 00:07:33,040 --> 00:07:35,440 Speaker 1: The record standing. Our guest is sour is the man 161 00:07:35,480 --> 00:07:38,920 Speaker 1: in charge of getting that Price CEO Tad Brown, Tad, 162 00:07:38,920 --> 00:07:41,080 Speaker 1: thanks for joining us. As far as I can tell, 163 00:07:41,280 --> 00:07:45,360 Speaker 1: everybody seemed to be taken by surprise by Less's decision 164 00:07:45,400 --> 00:07:48,880 Speaker 1: to sell the team. Does that include you? Um, I 165 00:07:48,920 --> 00:07:51,680 Speaker 1: would say a little bit, but but not completely. You know, 166 00:07:51,800 --> 00:07:56,000 Speaker 1: Leslie and I speak all the time, um, and He's 167 00:07:56,000 --> 00:07:58,720 Speaker 1: been approached quite a bit in the past, but it's 168 00:07:58,760 --> 00:08:01,120 Speaker 1: never anything that he's really wanted to consider. And then 169 00:08:01,200 --> 00:08:03,920 Speaker 1: when we had a conversation on Monday. I spent a 170 00:08:03,960 --> 00:08:06,320 Speaker 1: lot of time within the last couple of weeks, but 171 00:08:06,400 --> 00:08:08,320 Speaker 1: we had a conversation on Monday where he told me 172 00:08:08,400 --> 00:08:11,040 Speaker 1: what he was thinking and the things that he wanted 173 00:08:11,040 --> 00:08:14,240 Speaker 1: to focus on, and and that he felt it was time. 174 00:08:14,840 --> 00:08:16,800 Speaker 1: We talked to it a little bit and he he 175 00:08:16,960 --> 00:08:19,360 Speaker 1: pretty much had made up his mind. And so from 176 00:08:19,360 --> 00:08:22,760 Speaker 1: that point, you know, you know Leslie and and I've 177 00:08:22,760 --> 00:08:26,360 Speaker 1: worked with him for sixteen years now, Um, you know, 178 00:08:26,440 --> 00:08:28,200 Speaker 1: once he makes up his mind, he feels good about 179 00:08:28,240 --> 00:08:29,760 Speaker 1: it and he's ready to move forward. So then it 180 00:08:29,800 --> 00:08:32,280 Speaker 1: was just a matter of how do we how do 181 00:08:32,320 --> 00:08:34,600 Speaker 1: we handle this the best way we can? How do 182 00:08:34,640 --> 00:08:36,880 Speaker 1: we get the process up and running? And then, um, 183 00:08:37,120 --> 00:08:38,800 Speaker 1: you know, how do we make sure that we protect 184 00:08:38,880 --> 00:08:41,480 Speaker 1: him and we protect the city of Houston and our 185 00:08:41,520 --> 00:08:43,640 Speaker 1: fans to make sure we find the right person. So 186 00:08:43,679 --> 00:08:46,400 Speaker 1: I guess step one is tell the world this asset 187 00:08:46,440 --> 00:08:49,800 Speaker 1: is for sale. What was the reaction like it's been. 188 00:08:51,000 --> 00:08:53,800 Speaker 1: It's been pretty overwhelming, to be honest. I think the 189 00:08:54,600 --> 00:08:57,360 Speaker 1: it did catch a lot of people by surprise, simply 190 00:08:57,400 --> 00:09:01,520 Speaker 1: because of the high profile nature of our brand, UH 191 00:09:01,600 --> 00:09:05,920 Speaker 1: certainly the high profile UH team that we have, UH 192 00:09:06,200 --> 00:09:09,440 Speaker 1: some recent announcements that we've had where we've extended James 193 00:09:09,480 --> 00:09:12,679 Speaker 1: for the largest contract in NBA history. We've brought on 194 00:09:12,840 --> 00:09:16,160 Speaker 1: Chris Paul, you know, We've signed UH some other players, 195 00:09:16,280 --> 00:09:19,080 Speaker 1: Luke mobile Mutte, we brought Anna back. We've got the 196 00:09:19,120 --> 00:09:22,120 Speaker 1: six Man of the Year and Eric Gordon, UM, you know, 197 00:09:22,160 --> 00:09:25,439 Speaker 1: Trevor Reasa. We've got a great nucleus and a great 198 00:09:25,480 --> 00:09:27,760 Speaker 1: team that's going to be competing at a high level 199 00:09:27,760 --> 00:09:30,600 Speaker 1: for a championship this year. And then you combine that 200 00:09:30,679 --> 00:09:34,280 Speaker 1: with kind of the success that the organization has had 201 00:09:34,320 --> 00:09:37,920 Speaker 1: on a consistent basis, not only throughout the region Houston 202 00:09:38,080 --> 00:09:41,559 Speaker 1: the fastest growing mark in the country, UM, but as 203 00:09:41,600 --> 00:09:43,920 Speaker 1: well as we're the number one team in China, and 204 00:09:43,960 --> 00:09:46,320 Speaker 1: you look at all those success factors and you think, 205 00:09:47,200 --> 00:09:50,439 Speaker 1: you know, there really hasn't been a professional sports franchise 206 00:09:50,559 --> 00:09:54,120 Speaker 1: that's been put up for sale at its zenith maybe 207 00:09:54,160 --> 00:09:57,680 Speaker 1: ever um And And So I think it caught a 208 00:09:57,720 --> 00:09:59,719 Speaker 1: lot of people, not only within the league but within 209 00:09:59,760 --> 00:10:04,120 Speaker 1: the as of community by surprise. But but it also 210 00:10:04,200 --> 00:10:08,160 Speaker 1: turns out to be an opportunity because we've we've been 211 00:10:08,240 --> 00:10:11,760 Speaker 1: approached by a great number of people, as you can imagine, 212 00:10:11,880 --> 00:10:14,600 Speaker 1: both both on the BI side as well as folks 213 00:10:14,640 --> 00:10:18,400 Speaker 1: who are looking to represent UM and it just is 214 00:10:18,440 --> 00:10:21,040 Speaker 1: a testament to what Leslie's built, the culture that he's built, 215 00:10:21,800 --> 00:10:24,800 Speaker 1: the team that he's established, and the power of the 216 00:10:24,840 --> 00:10:27,240 Speaker 1: brand that we have on a global scale. Like you said, 217 00:10:27,320 --> 00:10:30,120 Speaker 1: you've signed a record deal with James Harden, you have 218 00:10:30,200 --> 00:10:33,559 Speaker 1: a number of high profile trades. The next question though, 219 00:10:33,760 --> 00:10:37,520 Speaker 1: is if someone is open to buying the team, do 220 00:10:37,679 --> 00:10:41,319 Speaker 1: they want to see all of those high profile trades? Oh? 221 00:10:41,360 --> 00:10:44,439 Speaker 1: If if they didn't want to, I'd be very surprised 222 00:10:44,480 --> 00:10:47,120 Speaker 1: why they would buy the team. Because the ultimate the 223 00:10:47,200 --> 00:10:51,200 Speaker 1: ultimate goal, as as everybody knows in pro sports at least, 224 00:10:51,320 --> 00:10:54,960 Speaker 1: is to win. And the team is really set up 225 00:10:55,040 --> 00:10:59,840 Speaker 1: right now to compete at the highest level within the NBA. 226 00:11:00,040 --> 00:11:03,640 Speaker 1: Any owner that comes in, it's their prerogative to decide, 227 00:11:03,840 --> 00:11:06,320 Speaker 1: you know, what they would like to do. But we're 228 00:11:06,360 --> 00:11:10,040 Speaker 1: operating under the under the guise of you know, the 229 00:11:11,240 --> 00:11:13,560 Speaker 1: what we've been able to establish and the culture that 230 00:11:13,600 --> 00:11:16,640 Speaker 1: we've built and and the directive that Mr Alexander is 231 00:11:16,679 --> 00:11:18,360 Speaker 1: putting has put us at the top of the league 232 00:11:18,360 --> 00:11:20,240 Speaker 1: for a long long time. We've got the second most 233 00:11:20,280 --> 00:11:22,960 Speaker 1: wins in the last decade, he's the fifth. He's got 234 00:11:23,000 --> 00:11:25,920 Speaker 1: the fifth most wins or fifth highest winning percentage during 235 00:11:25,920 --> 00:11:31,240 Speaker 1: his tenure, multiple World championships for w NBA championships. Uh it. 236 00:11:31,520 --> 00:11:36,640 Speaker 1: It proves that his his uh, his system works and 237 00:11:36,679 --> 00:11:38,440 Speaker 1: so we're going to keep that going and we're gonna 238 00:11:38,480 --> 00:11:40,800 Speaker 1: keep making the deals that we need to get us 239 00:11:40,800 --> 00:11:43,640 Speaker 1: over the top to compete, you know, with with the 240 00:11:43,679 --> 00:11:46,400 Speaker 1: Warriors and with the best in the league. And we 241 00:11:46,480 --> 00:11:49,360 Speaker 1: feel that that's the right thing to do. Anybody coming in, 242 00:11:49,400 --> 00:11:52,719 Speaker 1: as you know, they have every prerogative to operate the 243 00:11:52,760 --> 00:11:55,600 Speaker 1: way that they would like, but it's really that's part 244 00:11:55,600 --> 00:11:57,640 Speaker 1: of the process, that's part of the vetting process, and 245 00:11:57,679 --> 00:12:00,800 Speaker 1: that's part of understanding who it is is that that 246 00:12:01,000 --> 00:12:04,839 Speaker 1: we're going to engage in the acquisition of the franchise 247 00:12:04,960 --> 00:12:07,520 Speaker 1: because you want to make sure that you that you 248 00:12:07,600 --> 00:12:11,040 Speaker 1: have someone who believes in in the same values, the 249 00:12:11,120 --> 00:12:15,760 Speaker 1: same results, the same community minded focus, the same global imprint, 250 00:12:16,360 --> 00:12:21,080 Speaker 1: the same business opportunities, uh that are currently in place. 251 00:12:21,160 --> 00:12:23,800 Speaker 1: Because we think that we think that it works really well. 252 00:12:24,720 --> 00:12:28,200 Speaker 1: We think it's it's it's an opportunity that continues to 253 00:12:29,120 --> 00:12:31,960 Speaker 1: grow and build, not only throughout Houston, but on a 254 00:12:32,000 --> 00:12:34,520 Speaker 1: global scale. And and we would hope that somebody would 255 00:12:35,040 --> 00:12:37,520 Speaker 1: take that and continue to try to extend it and 256 00:12:37,520 --> 00:12:40,680 Speaker 1: make it better, as opposed to completely changing it. Tad, 257 00:12:40,679 --> 00:12:42,720 Speaker 1: I'm sure two weeks ago your plate was full enough. 258 00:12:42,760 --> 00:12:44,840 Speaker 1: There's enough for you guys to do. You can sell 259 00:12:45,040 --> 00:12:47,440 Speaker 1: um a lumber yard for two billion dollars like nobody 260 00:12:47,480 --> 00:12:50,640 Speaker 1: really cares. But these assets are different, right, you understand 261 00:12:50,679 --> 00:12:54,480 Speaker 1: the high profile nature of this. Why did Less choose 262 00:12:54,520 --> 00:12:56,240 Speaker 1: to go, as they say in real estate FISBO for 263 00:12:56,360 --> 00:13:00,240 Speaker 1: sale by owner rather than engage an investment pay king, 264 00:13:00,559 --> 00:13:03,480 Speaker 1: either investment bank or a firm that does this regularly. 265 00:13:04,520 --> 00:13:10,880 Speaker 1: I think Leslie is uh. He's a very creative, very strategic, 266 00:13:11,000 --> 00:13:13,760 Speaker 1: very smart man. I mean he's one of the wealthiest 267 00:13:13,760 --> 00:13:16,920 Speaker 1: men in the world. He is. He's been a very 268 00:13:17,000 --> 00:13:20,480 Speaker 1: unique aggressive Uh, he's been a different owner in a 269 00:13:20,520 --> 00:13:24,000 Speaker 1: sense that he's tried to be a groundbreaker and many 270 00:13:24,120 --> 00:13:26,319 Speaker 1: in many areas. You know, certainly his hiring of Darryl 271 00:13:26,360 --> 00:13:29,280 Speaker 1: Moorey and the ushering of the analytics movement and the 272 00:13:29,280 --> 00:13:32,320 Speaker 1: sports science movement within the NBA was at the time 273 00:13:32,360 --> 00:13:34,960 Speaker 1: it was unheard of. You guys probably remember that he was. 274 00:13:35,559 --> 00:13:38,200 Speaker 1: He was widely criticized for that, and it's worked out okay, 275 00:13:38,240 --> 00:13:41,319 Speaker 1: and and a lot of people have followed suit. So, um, 276 00:13:41,400 --> 00:13:43,800 Speaker 1: you know, he's just a person who believes in himself. 277 00:13:43,840 --> 00:13:46,520 Speaker 1: He believes in his team. Um, it's not that we're 278 00:13:46,640 --> 00:13:50,800 Speaker 1: just going to be issuing any anybody who could help 279 00:13:50,880 --> 00:13:54,040 Speaker 1: us in a strategic fashion. But we think that the 280 00:13:54,120 --> 00:13:57,160 Speaker 1: people who know this organization, who know the assets that 281 00:13:57,200 --> 00:14:01,839 Speaker 1: are built here and know the opportunities that that that exists, 282 00:14:02,200 --> 00:14:03,840 Speaker 1: are the ones who live it and breathe it and 283 00:14:03,880 --> 00:14:06,160 Speaker 1: have built it every single day. Can you walk me 284 00:14:06,200 --> 00:14:10,120 Speaker 1: through your next let's say, three to six weeks. Normally 285 00:14:11,320 --> 00:14:13,320 Speaker 1: in a sale like this, you put together a book. 286 00:14:13,360 --> 00:14:15,560 Speaker 1: It's called the deck. The perspective buyers get it, they 287 00:14:15,559 --> 00:14:17,560 Speaker 1: look at some of the financials and they decide if 288 00:14:17,559 --> 00:14:19,880 Speaker 1: they want to proceed. Where are you right now, and 289 00:14:19,920 --> 00:14:21,640 Speaker 1: can you just sort of lay out your roadmap for 290 00:14:21,640 --> 00:14:24,240 Speaker 1: the next month or six weeks? Yeah, the next month 291 00:14:24,240 --> 00:14:27,480 Speaker 1: is six weeks. We're really in the beginning process of 292 00:14:27,600 --> 00:14:31,120 Speaker 1: I'm having conversations with everybody who has expressed an interest, 293 00:14:31,520 --> 00:14:33,280 Speaker 1: so we're having the initial kind of get to know 294 00:14:33,360 --> 00:14:37,040 Speaker 1: you conversations. We're also starting in the initial vetting process. 295 00:14:37,120 --> 00:14:41,680 Speaker 1: The league has a mandatory form and a mandatory kind 296 00:14:41,680 --> 00:14:43,680 Speaker 1: of outline of the things that they need to know 297 00:14:43,760 --> 00:14:45,720 Speaker 1: about before you get too far down the line with 298 00:14:45,800 --> 00:14:50,800 Speaker 1: the potential with the potential acquisition um, so that that's 299 00:14:50,880 --> 00:14:53,600 Speaker 1: going along at the same time. This really just came 300 00:14:53,680 --> 00:14:56,760 Speaker 1: up relatively quickly. So we've got a good kind of 301 00:14:56,840 --> 00:14:59,840 Speaker 1: general overview on who we are and what our opportunities 302 00:14:59,840 --> 00:15:02,280 Speaker 1: are in the current assets that that are here, in 303 00:15:02,280 --> 00:15:05,560 Speaker 1: our philosophies and everything else that is easy to send out. 304 00:15:05,960 --> 00:15:08,960 Speaker 1: And during that initial process that really is going to 305 00:15:09,080 --> 00:15:12,440 Speaker 1: probably take you know, we're getting I'm probably getting fifteen 306 00:15:12,480 --> 00:15:15,880 Speaker 1: to twenty people a day, uh, that we're just having 307 00:15:16,000 --> 00:15:19,520 Speaker 1: direct conversations with, and that's actually increasing as we go forward, 308 00:15:19,560 --> 00:15:22,080 Speaker 1: So I expect we're gonna be doing a lot of vetting, 309 00:15:22,080 --> 00:15:25,320 Speaker 1: a lot of early discussions, uh some some back and 310 00:15:25,400 --> 00:15:29,360 Speaker 1: forth on general materials and general finances and just you know, 311 00:15:29,520 --> 00:15:33,200 Speaker 1: base a basic outline of the structure of the business 312 00:15:33,280 --> 00:15:35,800 Speaker 1: as well as the structure of the league business. And 313 00:15:35,840 --> 00:15:38,200 Speaker 1: then you really get into the process of vetting it 314 00:15:38,240 --> 00:15:42,000 Speaker 1: down to a few handful of people that you look 315 00:15:42,000 --> 00:15:45,040 Speaker 1: at and say, okay, these are these are true buyers 316 00:15:45,080 --> 00:15:47,560 Speaker 1: that are committed, They're passionate, They're the ones who are 317 00:15:47,680 --> 00:15:50,520 Speaker 1: are the best fits for what what the city is 318 00:15:50,560 --> 00:15:53,040 Speaker 1: looking at and what what we'll fit with the players, 319 00:15:53,080 --> 00:15:55,840 Speaker 1: and how Leslie feels about the acquisition, and of course 320 00:15:55,880 --> 00:15:58,760 Speaker 1: the price, the value proposition, and then you really get 321 00:15:58,800 --> 00:16:02,920 Speaker 1: into the you know, exchange of all of the details, 322 00:16:03,000 --> 00:16:05,080 Speaker 1: all of the documents, all of the all of the 323 00:16:05,120 --> 00:16:09,960 Speaker 1: go forward contracts, everything else, and that will be however 324 00:16:10,040 --> 00:16:13,120 Speaker 1: long that process takes, which normally is much longer than 325 00:16:13,160 --> 00:16:16,720 Speaker 1: the initial vetting process and going through the early documents, 326 00:16:17,080 --> 00:16:20,120 Speaker 1: however on that process is going to take. It's gonna take. 327 00:16:20,280 --> 00:16:23,040 Speaker 1: We're not going to rush it um. You know. Again, 328 00:16:23,200 --> 00:16:26,120 Speaker 1: Leslie made it very clear at the very beginning Uh, 329 00:16:26,160 --> 00:16:28,440 Speaker 1: that he wants to do it in a manner that's 330 00:16:28,440 --> 00:16:31,360 Speaker 1: going to find the right person at the right value, 331 00:16:31,600 --> 00:16:33,360 Speaker 1: that's going to be the best for the city, best 332 00:16:33,360 --> 00:16:35,880 Speaker 1: for the region, best for our global fan base, and 333 00:16:35,920 --> 00:16:38,080 Speaker 1: that we're gonna do everything we need to do with 334 00:16:38,120 --> 00:16:40,240 Speaker 1: the league and with those people who are gonna be 335 00:16:40,280 --> 00:16:42,440 Speaker 1: helping us to make sure that we get that done 336 00:16:42,800 --> 00:16:45,120 Speaker 1: in as timely a fashion as possible, but in in 337 00:16:45,160 --> 00:16:48,760 Speaker 1: a in a in a manner that is gonna coincide 338 00:16:48,760 --> 00:16:51,440 Speaker 1: with us finding the best, the best buyer. Speaking of 339 00:16:51,480 --> 00:16:54,480 Speaker 1: global fan base, have you heard from Yao Ming, probably 340 00:16:55,040 --> 00:16:59,560 Speaker 1: one of the most famous Rocket players ever, especially in China. 341 00:17:00,080 --> 00:17:03,600 Speaker 1: So is he in playing this? I think we had 342 00:17:03,600 --> 00:17:08,239 Speaker 1: we had to come the the the press conference at 343 00:17:08,240 --> 00:17:13,240 Speaker 1: two o'clock Central time on Monday. Yell Ming woke up 344 00:17:13,280 --> 00:17:17,560 Speaker 1: at six fifteen. He called me at six sixteen. So, yes, 345 00:17:17,720 --> 00:17:20,280 Speaker 1: I have heard from you. I wouldn't say he's in play. 346 00:17:21,280 --> 00:17:23,800 Speaker 1: I heard from you as a as a concerned friend 347 00:17:23,920 --> 00:17:27,439 Speaker 1: of of the organization, but also as a as a 348 00:17:27,480 --> 00:17:29,600 Speaker 1: real close friend of Leslie Is and of mine. You know, 349 00:17:29,640 --> 00:17:31,520 Speaker 1: he he just the first thing is he wants to 350 00:17:31,520 --> 00:17:33,840 Speaker 1: make sure is everybody okay, everybody's okay. You know, it's 351 00:17:33,880 --> 00:17:37,960 Speaker 1: just a decision that's that Leslie has made to make 352 00:17:38,000 --> 00:17:40,360 Speaker 1: a change in his life and to really focus more 353 00:17:40,359 --> 00:17:43,600 Speaker 1: on philanthropy and the things that he's passionate about at 354 00:17:43,680 --> 00:17:45,919 Speaker 1: this point. And then after that it was more of 355 00:17:46,240 --> 00:17:48,159 Speaker 1: he he might have some ideas, he might have some 356 00:17:48,240 --> 00:17:51,320 Speaker 1: people that that he would like to talk to. Um, 357 00:17:51,359 --> 00:17:55,640 Speaker 1: he's certainly going to be approached and our our partners 358 00:17:55,640 --> 00:17:57,080 Speaker 1: in China. You know, yeah, I was got a full 359 00:17:57,080 --> 00:17:59,600 Speaker 1: time job. Now he's got a huge job. He's he's 360 00:17:59,640 --> 00:18:02,960 Speaker 1: basically the Adam Silver of the Chinese Basketball Association and 361 00:18:03,040 --> 00:18:07,080 Speaker 1: of the Chinese Basketball Federation. Um, so he's really in 362 00:18:07,119 --> 00:18:08,639 Speaker 1: the middle of it with a lot of that. But 363 00:18:09,240 --> 00:18:11,840 Speaker 1: he's also a rocket for life, and he's somebody that 364 00:18:11,840 --> 00:18:14,480 Speaker 1: that we're going to, we're going to talk to and 365 00:18:14,520 --> 00:18:17,160 Speaker 1: we're gonna we're gonna lean on for advice, and he's 366 00:18:17,160 --> 00:18:19,919 Speaker 1: going to lean on us for advice. And if something 367 00:18:19,960 --> 00:18:23,639 Speaker 1: happens in that regard with the potential Chinese buyer, we 368 00:18:23,760 --> 00:18:26,719 Speaker 1: think it would be great as long as that buyer 369 00:18:27,280 --> 00:18:30,119 Speaker 1: is able to meet all the expectations from Mr Alexander 370 00:18:30,160 --> 00:18:33,159 Speaker 1: as well as all the requirements from the League office. 371 00:18:33,280 --> 00:18:36,840 Speaker 1: But uh, it's uh, we certainly have already received some 372 00:18:36,920 --> 00:18:41,480 Speaker 1: interest from China, and we expect to actually receive more. Uh. 373 00:18:41,600 --> 00:18:44,800 Speaker 1: Let you say requirements from prospective buyers. I can think 374 00:18:44,840 --> 00:18:47,679 Speaker 1: of maybe two billion requirements that they have to have. 375 00:18:47,800 --> 00:18:51,159 Speaker 1: What else are you talking about besides just dollars? I 376 00:18:51,200 --> 00:18:54,720 Speaker 1: really think it's about passion, and it's about it's about resources, 377 00:18:54,720 --> 00:18:58,520 Speaker 1: and it's about commitment. You know, you there are only 378 00:18:58,600 --> 00:19:05,160 Speaker 1: so many teams in the world, and there's no question 379 00:19:05,400 --> 00:19:12,400 Speaker 1: when you see the most successful professional sports franchises historically, 380 00:19:13,119 --> 00:19:17,320 Speaker 1: it's a It's really about the passion and the willingness 381 00:19:17,760 --> 00:19:21,479 Speaker 1: of the owner to make sure that the culture and 382 00:19:21,520 --> 00:19:24,159 Speaker 1: that the management is in place that is going to 383 00:19:25,359 --> 00:19:28,560 Speaker 1: make this team continue to thrive and continue to grow, 384 00:19:28,680 --> 00:19:31,879 Speaker 1: and and look at all areas at all times to 385 00:19:31,920 --> 00:19:35,840 Speaker 1: make sure you're doing everything you possibly can to be better, 386 00:19:36,080 --> 00:19:38,160 Speaker 1: to be a better to be better on the court, 387 00:19:38,200 --> 00:19:41,080 Speaker 1: and to be better off the court, to be better 388 00:19:41,119 --> 00:19:44,080 Speaker 1: in the community. And and it sounds like it might 389 00:19:44,080 --> 00:19:47,159 Speaker 1: be a simple thing, but being truly passionate and caring 390 00:19:47,200 --> 00:19:50,520 Speaker 1: about what you're doing from an ownership perspective, is something 391 00:19:50,760 --> 00:19:53,960 Speaker 1: that isn't always isn't always part of the m o 392 00:19:54,160 --> 00:19:58,159 Speaker 1: of of organizations. We're talking to Houston Rockets CEO Tad 393 00:19:58,160 --> 00:20:00,720 Speaker 1: Brown and we sound like broken rec it's every time 394 00:20:01,119 --> 00:20:05,560 Speaker 1: we start talking about sales or the financial success of 395 00:20:05,600 --> 00:20:09,200 Speaker 1: any team, but we go back to TV rights TM. 396 00:20:09,240 --> 00:20:12,520 Speaker 1: The NBA signed a nine year, twenty four billion dollar 397 00:20:12,640 --> 00:20:16,040 Speaker 1: deal with the ESPN t earner and that has helped 398 00:20:16,080 --> 00:20:19,600 Speaker 1: all of the NBA owners and that has obviously the 399 00:20:19,640 --> 00:20:23,480 Speaker 1: factor into the price when you sell the team. Sure, 400 00:20:23,600 --> 00:20:25,639 Speaker 1: I mean that that deal is terrific. Adam in the 401 00:20:25,720 --> 00:20:28,439 Speaker 1: league did a did a great job and and worked 402 00:20:28,440 --> 00:20:33,280 Speaker 1: with our television partners to really establish a creative and 403 00:20:33,320 --> 00:20:37,639 Speaker 1: strategic long term plan for the television growth at the league. 404 00:20:37,920 --> 00:20:41,080 Speaker 1: I would also say it also really helped with our 405 00:20:41,119 --> 00:20:44,080 Speaker 1: relationship with our players, because our players are now the 406 00:20:44,160 --> 00:20:46,879 Speaker 1: highest paid players on average of any professionals support in 407 00:20:46,920 --> 00:20:51,080 Speaker 1: the world. Um. And it helps with cost certainty. Right. 408 00:20:51,160 --> 00:20:54,159 Speaker 1: So all these all these elements really help with the 409 00:20:54,240 --> 00:20:57,440 Speaker 1: structure and the infrastructure of the league. And a lot 410 00:20:57,480 --> 00:21:00,439 Speaker 1: of it is driven by that additional television and money 411 00:21:00,480 --> 00:21:03,240 Speaker 1: that's going to be going out for years to come. UM. 412 00:21:03,280 --> 00:21:07,640 Speaker 1: It's the stability the revenues that are coming in from 413 00:21:07,640 --> 00:21:10,760 Speaker 1: the TV contract. You know, the partnership with the players 414 00:21:11,119 --> 00:21:13,040 Speaker 1: is in a great situation. With the extension of the 415 00:21:13,040 --> 00:21:16,000 Speaker 1: c b A, the league is in as good a place, 416 00:21:16,400 --> 00:21:19,760 Speaker 1: maybe as it's ever been in its history. It's aside 417 00:21:19,840 --> 00:21:24,280 Speaker 1: from soccer. It is clearly the top sport in the 418 00:21:24,280 --> 00:21:28,080 Speaker 1: world and rivaling soccer on a global basis now and 419 00:21:28,560 --> 00:21:33,360 Speaker 1: there's no there's no there's no indication right now that 420 00:21:33,400 --> 00:21:36,639 Speaker 1: it's going to stop anytime soon. So it's the NBA 421 00:21:36,760 --> 00:21:40,120 Speaker 1: is in a great place as an investment, as a 422 00:21:40,119 --> 00:21:43,920 Speaker 1: as a fan of the game. Uh, you know, it's 423 00:21:44,080 --> 00:21:46,600 Speaker 1: it's something that people are very excited about, and I 424 00:21:46,640 --> 00:21:50,760 Speaker 1: think that that's representative of the potential buying community. Ted 425 00:21:50,960 --> 00:21:52,960 Speaker 1: the Buck set a record, the Hawk set a record. 426 00:21:53,000 --> 00:21:55,880 Speaker 1: Bomb or two billion set a record. All the things 427 00:21:55,920 --> 00:21:59,240 Speaker 1: you're talking about, scalable media in China, whether it's traditional 428 00:21:59,280 --> 00:22:03,639 Speaker 1: TV or what talking video clips via Twitter, these are 429 00:22:03,640 --> 00:22:05,920 Speaker 1: all going to drive the valuation of this franchise. The 430 00:22:06,000 --> 00:22:09,119 Speaker 1: scarcity value. Of course, what do you expect the final 431 00:22:09,240 --> 00:22:16,640 Speaker 1: number will be? I don't. I certainly cannot say. UM. 432 00:22:17,080 --> 00:22:20,640 Speaker 1: I do believe that we have the ability based on 433 00:22:20,840 --> 00:22:24,159 Speaker 1: our brand and based on the infrastructure that Leslie is 434 00:22:24,160 --> 00:22:26,440 Speaker 1: put in place, in the successful business that he's put 435 00:22:26,440 --> 00:22:28,440 Speaker 1: in place. I think it's going to be a very 436 00:22:28,520 --> 00:22:33,480 Speaker 1: unique and substantial opportunity as a sale, and I wouldn't 437 00:22:33,840 --> 00:22:36,040 Speaker 1: has it to put a number on it. I do 438 00:22:36,160 --> 00:22:39,040 Speaker 1: think that we are in a in a really fortunate 439 00:22:39,080 --> 00:22:41,680 Speaker 1: position based on our market and based on all mitigating 440 00:22:41,720 --> 00:22:48,119 Speaker 1: factors that that that we should have a a terrific outcome. Um. 441 00:22:48,240 --> 00:22:50,800 Speaker 1: You know. But one thing I also would say, which 442 00:22:50,960 --> 00:22:54,159 Speaker 1: which I think is is something Leslie is going to 443 00:22:54,280 --> 00:22:57,360 Speaker 1: talk more about and and that that will will get 444 00:22:57,359 --> 00:23:00,919 Speaker 1: out as much of the money that that he's looking 445 00:23:01,000 --> 00:23:03,880 Speaker 1: to generate from the sale he's going to put back 446 00:23:03,920 --> 00:23:08,320 Speaker 1: into global philanthropic efforts. So he's really looking at this 447 00:23:08,480 --> 00:23:13,119 Speaker 1: as as a transaction to to help him deliver on 448 00:23:13,400 --> 00:23:16,520 Speaker 1: some other passions that that he's really excited about, changing 449 00:23:16,520 --> 00:23:20,160 Speaker 1: people's lives throughout Houston, through you know, throughout the US, 450 00:23:20,240 --> 00:23:23,120 Speaker 1: throughout the world, um and things that that he's really 451 00:23:23,160 --> 00:23:26,159 Speaker 1: excited about. So, you know, we're gonna do absolutely the 452 00:23:26,160 --> 00:23:28,120 Speaker 1: best we can. We're going to drive the best number 453 00:23:28,119 --> 00:23:29,960 Speaker 1: of that we think is fair for a franchise of 454 00:23:30,040 --> 00:23:33,280 Speaker 1: this magnitude on a global scale, um, you know, and 455 00:23:33,320 --> 00:23:36,080 Speaker 1: take advantage of all the assets that have been built 456 00:23:36,080 --> 00:23:38,119 Speaker 1: and the hard work that's been built by the employees 457 00:23:38,200 --> 00:23:40,399 Speaker 1: and the and the players and the coaches of this 458 00:23:40,520 --> 00:23:43,400 Speaker 1: organization over the years. And and we're gonna take advantage 459 00:23:43,400 --> 00:23:45,040 Speaker 1: of that, and we think we're gonna have a very 460 00:23:45,040 --> 00:23:48,000 Speaker 1: strong outcome. Dad, would you explain to the listeners that 461 00:23:48,080 --> 00:23:50,560 Speaker 1: it's not easy to just show up in China and 462 00:23:50,560 --> 00:23:53,560 Speaker 1: do business. This is a process. The league has been 463 00:23:53,600 --> 00:23:56,360 Speaker 1: there for decades, You as a team have been there 464 00:23:56,400 --> 00:24:00,760 Speaker 1: for decades. That this doesn't just happen. It's doesn't just happen. 465 00:24:01,119 --> 00:24:04,000 Speaker 1: And and yes, you need a you need kind of 466 00:24:04,040 --> 00:24:06,760 Speaker 1: a seminal moment, if you will. And ours was with Yelloming, 467 00:24:07,840 --> 00:24:14,280 Speaker 1: but ours was also back in the New York Knicks 468 00:24:14,280 --> 00:24:17,680 Speaker 1: and the Houston Rockets were the first game broadcast live 469 00:24:17,760 --> 00:24:21,040 Speaker 1: in China during the the NBA Finals. And there was 470 00:24:21,080 --> 00:24:23,320 Speaker 1: a young man who was watching that game and Yeoman 471 00:24:23,400 --> 00:24:27,280 Speaker 1: whose favorite player then became a Kinglijuan. So then you 472 00:24:27,440 --> 00:24:30,960 Speaker 1: fast forward to when we drafted Yao with the number 473 00:24:30,960 --> 00:24:34,160 Speaker 1: one pick. Um, it just kind of brought this full 474 00:24:34,200 --> 00:24:38,520 Speaker 1: circle of of opportunity and of excitement between the Chinese 475 00:24:38,520 --> 00:24:41,399 Speaker 1: fans and the Houston Rockets. But then what you have 476 00:24:41,440 --> 00:24:44,479 Speaker 1: to do is you have to be authentic. The Chinese 477 00:24:44,480 --> 00:24:48,400 Speaker 1: stands are some of the most sophisticated, passionate, loyal stands 478 00:24:48,440 --> 00:24:51,639 Speaker 1: that you will ever meet in any country in the world, 479 00:24:51,920 --> 00:24:54,560 Speaker 1: and you can't fake it with them. You've got to 480 00:24:54,600 --> 00:24:56,760 Speaker 1: really put the time. And we've been on the ground 481 00:24:57,440 --> 00:25:01,600 Speaker 1: in some point or in some part or fashion or 482 00:25:01,760 --> 00:25:05,680 Speaker 1: or hosting some event literally every single year since two 483 00:25:05,720 --> 00:25:10,200 Speaker 1: thousand and two that UH, and sometimes multiple times a year. UM. 484 00:25:10,400 --> 00:25:12,439 Speaker 1: So we were the first team to play in the 485 00:25:12,560 --> 00:25:15,800 Speaker 1: China Games back in a four we've been back four 486 00:25:15,920 --> 00:25:18,399 Speaker 1: times since. We've been there the most of any team 487 00:25:19,000 --> 00:25:21,399 Speaker 1: UH in the league for good reason, because the league 488 00:25:21,440 --> 00:25:23,879 Speaker 1: wants us there because we're the most popular club and 489 00:25:23,920 --> 00:25:26,560 Speaker 1: it's self fulfilling. But then we're also there in the 490 00:25:26,600 --> 00:25:30,160 Speaker 1: off season with players and coaches, in front office personnel, 491 00:25:30,280 --> 00:25:33,919 Speaker 1: visiting our corporate partners, talking about the upcoming season, making 492 00:25:33,920 --> 00:25:38,240 Speaker 1: sure that we're developing relationships with the NBA personnel who 493 00:25:38,240 --> 00:25:40,960 Speaker 1: are there and and the local the local personnel in 494 00:25:41,000 --> 00:25:44,160 Speaker 1: Beijing and the communities in Shanghai and Chian and Guan 495 00:25:44,280 --> 00:25:47,240 Speaker 1: Joe and Shenzhen and you name it. You've got to 496 00:25:47,320 --> 00:25:49,359 Speaker 1: be there, and you've got to be consistent in the 497 00:25:49,400 --> 00:25:52,440 Speaker 1: way that you that you present yourself and that you work, 498 00:25:52,760 --> 00:25:59,200 Speaker 1: and that then translates to long term stability and long 499 00:25:59,320 --> 00:26:03,280 Speaker 1: term passion and loyalty from those fans because they know 500 00:26:03,359 --> 00:26:05,480 Speaker 1: you you care about them, and they know that you're 501 00:26:05,520 --> 00:26:09,040 Speaker 1: developing opportunities for them to connect with your team. The 502 00:26:09,040 --> 00:26:11,400 Speaker 1: one great thing about one of the great things about 503 00:26:11,480 --> 00:26:15,160 Speaker 1: Leslie that he's always believed is that the only way 504 00:26:15,200 --> 00:26:17,600 Speaker 1: your organization is going to be successful and the only 505 00:26:17,640 --> 00:26:20,520 Speaker 1: way that you are going to become a championship caliber 506 00:26:20,640 --> 00:26:22,880 Speaker 1: organizations if you focus on your players and you give 507 00:26:22,920 --> 00:26:26,600 Speaker 1: them everything that they possibly need to win. And it 508 00:26:26,600 --> 00:26:29,320 Speaker 1: it also helps that you have happened to have some 509 00:26:29,359 --> 00:26:31,960 Speaker 1: of the greatest players in NBA history player for your franchise, 510 00:26:32,440 --> 00:26:34,920 Speaker 1: because you know you can't you can't replicate in a 511 00:26:35,000 --> 00:26:38,399 Speaker 1: Chemolijah One or James Harden, or a Yell Ming, or 512 00:26:38,440 --> 00:26:42,280 Speaker 1: a Tracey McGrady or just Clyde directly you name it. 513 00:26:42,359 --> 00:26:45,760 Speaker 1: Year after year after year, decade after decade. These incredible players, 514 00:26:46,200 --> 00:26:49,840 Speaker 1: they carry the mantle for us. They develop our our history. 515 00:26:50,320 --> 00:26:52,680 Speaker 1: They're the ones that are fans and the people all 516 00:26:52,680 --> 00:26:55,600 Speaker 1: over the world embrace and love, and then that's what 517 00:26:55,920 --> 00:26:58,840 Speaker 1: the Houston Rockets are gonna be known for long into 518 00:26:58,880 --> 00:27:01,639 Speaker 1: the next decades, no matter who owns the team and 519 00:27:01,640 --> 00:27:05,240 Speaker 1: and and whatever happens. Alright, that's Tad Brown, Houston Rockets 520 00:27:05,280 --> 00:27:07,880 Speaker 1: CEO point man, on the sale of the franchise. Tad, 521 00:27:07,880 --> 00:27:12,000 Speaker 1: thank you very much, Thank you very much. Takeaways from 522 00:27:12,000 --> 00:27:15,120 Speaker 1: the interview with Tad Brown. I think what was interesting 523 00:27:15,359 --> 00:27:19,920 Speaker 1: is why Less Alexander wants to retire the only only 524 00:27:19,960 --> 00:27:22,080 Speaker 1: thirty of these things are out there. So you own 525 00:27:22,119 --> 00:27:24,800 Speaker 1: an NBA team. It's not like, hey, you know, I'm 526 00:27:24,800 --> 00:27:27,159 Speaker 1: tired of owning this Vega. I want to Lincoln. No, 527 00:27:27,359 --> 00:27:30,000 Speaker 1: you own an NBA team. And he just got to 528 00:27:30,280 --> 00:27:32,680 Speaker 1: a stage in his life. He's in his seventies now, 529 00:27:33,320 --> 00:27:35,720 Speaker 1: and uh, he just wanted to change of pains. Certainly 530 00:27:35,760 --> 00:27:38,120 Speaker 1: didn't need the money. But my takeaway is the most 531 00:27:38,119 --> 00:27:41,840 Speaker 1: important man not only in this transaction but right now 532 00:27:41,880 --> 00:27:45,920 Speaker 1: perhaps in basketball yelling one minute for him to call. Yes, 533 00:27:45,960 --> 00:27:48,560 Speaker 1: he was checking on Less, but this reminds me of 534 00:27:48,600 --> 00:27:51,760 Speaker 1: the Dodgers where they needed Magic Johnson because he was 535 00:27:51,840 --> 00:27:54,840 Speaker 1: that guy in l A to make everything okay. All 536 00:27:54,920 --> 00:27:57,920 Speaker 1: the bid groups met with Magic at Magic's office. By 537 00:27:57,960 --> 00:28:00,440 Speaker 1: the way, that's how much he was in demand. They're 538 00:28:00,480 --> 00:28:03,119 Speaker 1: all gonna call yaw. This makes sense. If you're gonna 539 00:28:03,200 --> 00:28:06,920 Speaker 1: own the Rockets, you want Yao Ming as an ambassador 540 00:28:06,960 --> 00:28:09,399 Speaker 1: for that club to continue those ties in China, to 541 00:28:09,600 --> 00:28:13,880 Speaker 1: push sales, to push digital downloads, to push everything. He 542 00:28:14,000 --> 00:28:18,399 Speaker 1: really is the most powerful man in this transaction. Now, 543 00:28:18,480 --> 00:28:20,879 Speaker 1: let's turn two hour. Number of the week. The number 544 00:28:21,119 --> 00:28:25,720 Speaker 1: is five hundred forty thousand. Do you know why that's 545 00:28:25,760 --> 00:28:27,760 Speaker 1: the number of the week? I do because we we 546 00:28:27,800 --> 00:28:29,959 Speaker 1: discussed it ahead of time. But only because we discussed 547 00:28:30,000 --> 00:28:31,959 Speaker 1: it ahead of time, because my number back at you 548 00:28:32,119 --> 00:28:36,280 Speaker 1: is zero, as in, this makes zero sense. Hey, Jin Choi, 549 00:28:36,560 --> 00:28:40,760 Speaker 1: seventeen years old and amateur plays the US Women's Open. 550 00:28:41,040 --> 00:28:43,760 Speaker 1: She finished his second. Now the second place finisher is 551 00:28:43,880 --> 00:28:47,400 Speaker 1: entitled to a five hundred forty dollar check. Only she 552 00:28:47,600 --> 00:28:51,600 Speaker 1: can't take it because she's an amateur. That is ridiculous 553 00:28:51,600 --> 00:28:54,400 Speaker 1: to me. At Least put it in a fund, anything 554 00:28:54,440 --> 00:28:56,760 Speaker 1: so she can get to later on trust anything, but say, 555 00:28:57,040 --> 00:28:58,640 Speaker 1: you just don't get it. So if you hear about 556 00:28:58,640 --> 00:28:59,920 Speaker 1: things like this with the n C A a They 557 00:29:00,000 --> 00:29:02,600 Speaker 1: can't take payments, they can't they can't take amateur amateur. Yeah, 558 00:29:02,640 --> 00:29:05,719 Speaker 1: let's let's figure out a trust fund for education something. 559 00:29:05,720 --> 00:29:09,080 Speaker 1: But if you're there and you're playing, and your skill 560 00:29:09,520 --> 00:29:11,600 Speaker 1: puts you in a position to win the tournament, and 561 00:29:11,640 --> 00:29:15,720 Speaker 1: you finished second, give me the check. You've been listening 562 00:29:15,720 --> 00:29:19,000 Speaker 1: to Bloomberg Business of Sports on Bloomberg Radio around the world. 563 00:29:19,240 --> 00:29:21,480 Speaker 1: We are here each and every week at the same time, 564 00:29:21,760 --> 00:29:25,120 Speaker 1: exploring the world of money and sports. Michael Lar and 565 00:29:25,120 --> 00:29:27,440 Speaker 1: I'm Scott Sashnik. Thanks for joining us. Please tune in 566 00:29:27,480 --> 00:29:29,800 Speaker 1: next week when we talk the business of soccer. Our 567 00:29:29,840 --> 00:29:32,880 Speaker 1: guests will include the man who signs Leo Messi's paycheck, 568 00:29:33,200 --> 00:29:35,840 Speaker 1: Joseph Bartemeo, the CEO of FC Barcelona,