1 00:00:02,520 --> 00:00:06,000 Speaker 1: Hello, I'm Michael barn and I'm Scottsnik. On this weekly podcast, 2 00:00:06,040 --> 00:00:08,039 Speaker 1: we explore the big money issues in the world of 3 00:00:08,039 --> 00:00:09,959 Speaker 1: sports and talked to some of the biggest players in 4 00:00:10,000 --> 00:00:12,680 Speaker 1: the industry. Today, we sit down for a conversation with 5 00:00:12,760 --> 00:00:15,920 Speaker 1: Scott O'Neill. He is the chief executive officer of the 6 00:00:15,920 --> 00:00:19,200 Speaker 1: Philadelphia seventy six Ers, the New Jersey Devils, and the 7 00:00:19,200 --> 00:00:21,800 Speaker 1: Prudential Center, and now he is helping to head up 8 00:00:22,000 --> 00:00:26,000 Speaker 1: a new venture that combines those assets with an English 9 00:00:26,000 --> 00:00:30,080 Speaker 1: soccer team and any sports team. But first, let's look 10 00:00:30,120 --> 00:00:32,040 Speaker 1: at the top stories of the week. Joining us is 11 00:00:32,080 --> 00:00:35,920 Speaker 1: Bloomberg Business of Sports reporter Evan Novi Williams and Evan, 12 00:00:36,400 --> 00:00:38,519 Speaker 1: We've got to start with that scandal out of the 13 00:00:38,680 --> 00:00:41,440 Speaker 1: n C Double A this week, the announcement that was 14 00:00:41,560 --> 00:00:45,280 Speaker 1: made on Tuesday by June Kim from the US Justice Department. 15 00:00:45,520 --> 00:00:50,440 Speaker 1: We have charged ten people and three separate complaints. Four 16 00:00:50,560 --> 00:00:57,240 Speaker 1: college basketball coaches, three people associated with professional managers and advisors, 17 00:00:57,840 --> 00:01:01,680 Speaker 1: and three with ties to the mayor your sportswear company, 18 00:01:01,880 --> 00:01:06,760 Speaker 1: including it's global marketing director for basketball, Scott. Evan, I 19 00:01:06,760 --> 00:01:09,760 Speaker 1: can't begin to tell you how serious this is for 20 00:01:09,800 --> 00:01:12,320 Speaker 1: the n c double an. This is college basketball's worst 21 00:01:12,360 --> 00:01:14,640 Speaker 1: kept secret, and the federal government has brought it out 22 00:01:14,680 --> 00:01:17,280 Speaker 1: into the light. It's not surprising that this is happening. 23 00:01:17,600 --> 00:01:20,520 Speaker 1: What surprising is that the government suddenly cares about it. 24 00:01:20,640 --> 00:01:22,840 Speaker 1: And when you see people getting arrested, when you see 25 00:01:22,880 --> 00:01:26,040 Speaker 1: criminal complaints happening, that's when a lot of college basketball 26 00:01:26,120 --> 00:01:27,960 Speaker 1: and the n c A world in general is going 27 00:01:28,000 --> 00:01:30,560 Speaker 1: to start to worry. The fact that Rick Pettino has 28 00:01:30,640 --> 00:01:32,759 Speaker 1: already lost his job. Now, this is a guy who 29 00:01:32,800 --> 00:01:35,480 Speaker 1: has been through more than one scandal and survived and 30 00:01:35,520 --> 00:01:39,160 Speaker 1: reached the pinnacle of profession, multiple championships, multiple final fours, 31 00:01:39,200 --> 00:01:42,480 Speaker 1: all the adulation. He is up there on the Mount 32 00:01:42,560 --> 00:01:45,840 Speaker 1: Rushmore of college basketball coaches, and now you have to 33 00:01:45,880 --> 00:01:49,880 Speaker 1: erase and airbrush him out of that picture because he 34 00:01:50,000 --> 00:01:53,240 Speaker 1: has already been ensnared in this and you know, Michael, 35 00:01:53,680 --> 00:01:56,000 Speaker 1: there's more to come. Well, here's what I don't understand 36 00:01:56,280 --> 00:01:59,960 Speaker 1: is why is the FBI involved in this instead of 37 00:02:00,040 --> 00:02:02,280 Speaker 1: the N double A itself. It's a good question. And 38 00:02:02,320 --> 00:02:05,480 Speaker 1: then a double N double A has been either unwilling 39 00:02:05,720 --> 00:02:08,720 Speaker 1: or unable depending on where you sit, to police its 40 00:02:08,720 --> 00:02:12,760 Speaker 1: own rules. And now the FBI is essentially enforcing them themselves. 41 00:02:13,080 --> 00:02:16,040 Speaker 1: And the big question beyond how many other schools, how 42 00:02:16,040 --> 00:02:17,919 Speaker 1: many other coaches are going to be involved in this? 43 00:02:18,200 --> 00:02:20,399 Speaker 1: The big question is whether the n c as amateurism 44 00:02:20,480 --> 00:02:23,040 Speaker 1: rule in which everybody is getting paid except the players, 45 00:02:23,360 --> 00:02:27,000 Speaker 1: if that can survive this exposure. Well, this is easy, Michael. 46 00:02:27,040 --> 00:02:29,160 Speaker 1: The n c A can't put somebody in jail. The 47 00:02:29,320 --> 00:02:32,079 Speaker 1: n c A does not have subpoena power. They caught 48 00:02:32,240 --> 00:02:36,040 Speaker 1: somebody with some financial irregularities and offered to trade up. 49 00:02:36,040 --> 00:02:38,080 Speaker 1: They made a deal, and this is what they got, 50 00:02:38,160 --> 00:02:41,360 Speaker 1: a cooperating witness who was willing to wear microphone and 51 00:02:41,400 --> 00:02:44,880 Speaker 1: attend meetings. That's how this happens. But the question remains 52 00:02:44,880 --> 00:02:47,560 Speaker 1: has have been just said? All this underbelly of the 53 00:02:47,600 --> 00:02:50,080 Speaker 1: sport boils down to one thing. The players don't see 54 00:02:50,120 --> 00:02:52,760 Speaker 1: the money. You don't see a shadow economy for coaches, 55 00:02:52,760 --> 00:02:55,880 Speaker 1: for athletic directors because they're getting paid. This is happening 56 00:02:55,919 --> 00:02:59,079 Speaker 1: to the players because they don't share in the money. 57 00:02:59,280 --> 00:03:02,200 Speaker 1: This is going to be the news for weeks. Let's 58 00:03:02,200 --> 00:03:04,639 Speaker 1: move on to another topic now in Major League Baseball 59 00:03:04,720 --> 00:03:06,720 Speaker 1: this week, it's the start of a new chapter for 60 00:03:06,760 --> 00:03:10,440 Speaker 1: the lowly Miami Marlins. The owners on the Wednesday unanimously 61 00:03:10,480 --> 00:03:13,960 Speaker 1: approved the sale of the franchise to the investment group 62 00:03:14,080 --> 00:03:18,200 Speaker 1: led by Derek Gita and Bruce Sherman. Guys, when we 63 00:03:18,200 --> 00:03:19,960 Speaker 1: say led by, let's make sure we know that's Bruce 64 00:03:19,960 --> 00:03:23,640 Speaker 1: Shermance brought the money, Derek brought Derek and he brought 65 00:03:23,639 --> 00:03:27,280 Speaker 1: the face. Uh. We've already seen some moves though that 66 00:03:27,440 --> 00:03:32,080 Speaker 1: indicate that this franchise may have new ownership, but it 67 00:03:32,200 --> 00:03:35,280 Speaker 1: might not be run any differently. That might be a problem, 68 00:03:35,320 --> 00:03:36,920 Speaker 1: right for sure. And I don't know if you saw 69 00:03:36,960 --> 00:03:39,400 Speaker 1: Jeffrey Loria's statement, but he said he told the fans 70 00:03:39,440 --> 00:03:41,920 Speaker 1: of Miami that it was the singular honor of his 71 00:03:42,000 --> 00:03:45,280 Speaker 1: life to own the Miami Marlins. And I have ventured 72 00:03:45,320 --> 00:03:47,880 Speaker 1: a guess that a lot of fans disagree with his 73 00:03:48,000 --> 00:03:51,480 Speaker 1: enthusiasm for his ownership. Yeah, but he won the World 74 00:03:51,520 --> 00:03:54,480 Speaker 1: Series and then he absolutely stripped all resources from the team. 75 00:03:54,520 --> 00:03:56,840 Speaker 1: You wonder, though, as all the bankers who were involved 76 00:03:56,840 --> 00:03:59,080 Speaker 1: in this deal and all who were watching from the sideline, 77 00:03:59,080 --> 00:04:03,120 Speaker 1: they all told me, this team does not have enough money. 78 00:04:03,160 --> 00:04:06,160 Speaker 1: The Sherman Jeta group, they don't have enough money to 79 00:04:06,280 --> 00:04:09,000 Speaker 1: withstand the money that this team loses every year the 80 00:04:09,080 --> 00:04:11,920 Speaker 1: debt they're taking on to have any sort of one 81 00:04:12,040 --> 00:04:15,600 Speaker 1: hundred and fifty million dollar payroll. Will Gian Carlos Stanton 82 00:04:15,680 --> 00:04:18,479 Speaker 1: still be with this team next year. We don't know yet, 83 00:04:18,600 --> 00:04:21,120 Speaker 1: but don't be surprised if he is not. Now they 84 00:04:21,160 --> 00:04:23,880 Speaker 1: start winning, might be a different story. More fans might 85 00:04:23,920 --> 00:04:25,680 Speaker 1: be coming to the stadium. Maybe they can turn it 86 00:04:25,720 --> 00:04:29,840 Speaker 1: around financially. Let's get to the story here in New 87 00:04:30,000 --> 00:04:33,680 Speaker 1: York where two of the city's richest team owners are 88 00:04:33,680 --> 00:04:36,800 Speaker 1: in a fight for what might be the city's last 89 00:04:36,920 --> 00:04:40,040 Speaker 1: all new venue for decades. Scott, you wrote the story 90 00:04:40,080 --> 00:04:42,440 Speaker 1: from Bloomberg. Tell us what you found out. Yeah, well, 91 00:04:42,560 --> 00:04:46,200 Speaker 1: the folks at the Empire Development Corporation are looking to 92 00:04:46,279 --> 00:04:49,400 Speaker 1: redevelop the Belmont Say where they have the race track. 93 00:04:50,040 --> 00:04:53,400 Speaker 1: And we have NYCFC, the MLS soccer team partly owned 94 00:04:53,400 --> 00:04:56,160 Speaker 1: by the Yankees, submitting an application to build a new 95 00:04:56,200 --> 00:04:59,000 Speaker 1: building in twenty six thousand Seed Arena. But we also 96 00:04:59,480 --> 00:05:01,320 Speaker 1: have the New York is Islanders who are not happy 97 00:05:01,360 --> 00:05:03,680 Speaker 1: and Barkley Center and Barkley Center not happy with them, 98 00:05:03,800 --> 00:05:08,080 Speaker 1: also looking to move there back by Jim Dolan in part. 99 00:05:08,440 --> 00:05:10,960 Speaker 1: So that group you have the Dolans against the Steinbrenners. 100 00:05:11,200 --> 00:05:13,200 Speaker 1: They're both not going to get a new arena now. 101 00:05:13,200 --> 00:05:15,839 Speaker 1: Of course, they also may find some other sites. This 102 00:05:15,880 --> 00:05:19,240 Speaker 1: is one site that ny CFC is looking at. But 103 00:05:19,720 --> 00:05:22,680 Speaker 1: this is New York. You now have a lot of 104 00:05:22,760 --> 00:05:25,640 Speaker 1: fairly new and restored buildings. This is the last one 105 00:05:25,680 --> 00:05:28,080 Speaker 1: that's going to be built for quite some time. It 106 00:05:28,240 --> 00:05:30,840 Speaker 1: looks like therefore there's a lot of a lot of 107 00:05:31,160 --> 00:05:32,680 Speaker 1: interest in it. And that's the thing that stands out 108 00:05:32,680 --> 00:05:34,240 Speaker 1: for me. In the past five years, we've had a 109 00:05:34,279 --> 00:05:37,360 Speaker 1: one billion dollar renovation of the garden, the Barclay Centers opened, 110 00:05:37,560 --> 00:05:40,320 Speaker 1: the Yankees and the Mets have new stadiums. The Giants 111 00:05:40,360 --> 00:05:43,080 Speaker 1: and the Jets built a new two billion dollar stadium 112 00:05:43,160 --> 00:05:46,320 Speaker 1: right outside the city. Scott O'Neil's Predential Center. The Predential 113 00:05:46,360 --> 00:05:49,279 Speaker 1: Center opened recently. Uh, this is going to be the 114 00:05:49,320 --> 00:05:52,040 Speaker 1: last in a long long time, um, and that makes 115 00:05:52,040 --> 00:05:54,640 Speaker 1: the property that much more valuable and makes a story 116 00:05:54,640 --> 00:05:59,200 Speaker 1: that much more interesting. Dolins versus the Steinbrenners lookout thanks 117 00:05:59,279 --> 00:06:03,320 Speaker 1: to Blue Burg Business of Sports reporter Evan Nobody Williams. Now, 118 00:06:03,400 --> 00:06:06,400 Speaker 1: let's get to this week's interview with Scott O'Neill. He's 119 00:06:06,440 --> 00:06:09,640 Speaker 1: the CEO of the Philadelphia seventies in the New Jersey 120 00:06:09,680 --> 00:06:12,480 Speaker 1: Devils and the Credential Center, and now he's helping your 121 00:06:12,480 --> 00:06:14,760 Speaker 1: head up a new venture that combines those assets with 122 00:06:14,800 --> 00:06:17,960 Speaker 1: an English soccer team and any sports team. So, Scott, 123 00:06:18,000 --> 00:06:20,240 Speaker 1: we got the news this week and we've seen this 124 00:06:20,320 --> 00:06:23,560 Speaker 1: sort of thing from others. What will this new entity 125 00:06:23,560 --> 00:06:27,280 Speaker 1: Harris Blitzer Sports and Entertainment help you accomplish a couple 126 00:06:27,279 --> 00:06:30,839 Speaker 1: of things. One is to properly structure the organization. So 127 00:06:30,839 --> 00:06:35,960 Speaker 1: we had several promotions, most notably Chris Heck becoming President 128 00:06:36,279 --> 00:06:40,080 Speaker 1: of Business Operations of the Sixers. Longtime NBA exact, We've 129 00:06:40,120 --> 00:06:42,880 Speaker 1: worked together three times. I've known him forever, I trust him, 130 00:06:42,920 --> 00:06:44,480 Speaker 1: I love him, and he's built a heck of a 131 00:06:44,560 --> 00:06:49,480 Speaker 1: business behind him, um brand expert, sales expert, built an 132 00:06:49,480 --> 00:06:53,240 Speaker 1: incredible team, great leader. So hopefully to get some leverage 133 00:06:53,279 --> 00:06:56,360 Speaker 1: for me to be out so out and doing deals. 134 00:06:56,440 --> 00:06:59,000 Speaker 1: So so the first thing is structure. The second thing 135 00:06:59,080 --> 00:07:02,039 Speaker 1: is efficiencies, is like, can we find is there a 136 00:07:02,080 --> 00:07:06,560 Speaker 1: better way to have than having three CRM leads or 137 00:07:06,640 --> 00:07:09,040 Speaker 1: four CRM leads? Is it better to have one? There's 138 00:07:09,040 --> 00:07:12,360 Speaker 1: certainly efficiencies when you pull an organization together. And then 139 00:07:12,360 --> 00:07:14,760 Speaker 1: the third, probably most importantly, is to create a platform 140 00:07:14,800 --> 00:07:16,960 Speaker 1: to grow. Um, we are there and this is not 141 00:07:17,480 --> 00:07:20,240 Speaker 1: a unique concept. UM and there are several that have 142 00:07:20,400 --> 00:07:24,280 Speaker 1: rolled up and with several properties. There aren't too many 143 00:07:24,360 --> 00:07:28,120 Speaker 1: that that do them in multiple locations around the country. 144 00:07:29,520 --> 00:07:32,000 Speaker 1: Sports and Entertainment, MSG, Cronky would be the three that 145 00:07:32,120 --> 00:07:35,120 Speaker 1: come to mind really quickly. Um, for sure. UM And 146 00:07:35,120 --> 00:07:37,400 Speaker 1: we looked at Monumental and I think ted Leonsis is 147 00:07:37,440 --> 00:07:40,640 Speaker 1: built a really, really solid and good business. Brooklyn's growing 148 00:07:40,640 --> 00:07:43,480 Speaker 1: a little bit here, mostly in the borough, a little 149 00:07:43,520 --> 00:07:46,360 Speaker 1: bit Manhattan. But for us, we're looking very differently, and 150 00:07:46,360 --> 00:07:48,920 Speaker 1: we look at Cronky and MSG and a G quite 151 00:07:48,920 --> 00:07:50,280 Speaker 1: a bit. So what are you looking at that I 152 00:07:50,360 --> 00:07:52,960 Speaker 1: know you love to do deals? What sorts of things 153 00:07:52,960 --> 00:07:55,120 Speaker 1: that you're not gonna be specific, but what sorts of 154 00:07:55,160 --> 00:07:58,120 Speaker 1: things would you like to add to what you've already got. 155 00:07:58,360 --> 00:08:00,200 Speaker 1: We think there's a real estate play certainly in and 156 00:08:00,200 --> 00:08:04,400 Speaker 1: around our venues. That's that's relatively simple and easily to understand. 157 00:08:04,600 --> 00:08:06,480 Speaker 1: Let's tell everybody. One of the venues is the Prudential 158 00:08:06,520 --> 00:08:09,640 Speaker 1: Center Into Work. Yes, top five venue in the US. 159 00:08:10,320 --> 00:08:14,520 Speaker 1: Driving more shows UH and ticket sales than big venues 160 00:08:14,560 --> 00:08:17,920 Speaker 1: like the Toyota Center in Houston, United Center in Chicago, 161 00:08:18,800 --> 00:08:20,680 Speaker 1: even the new cap One Center in d C. So 162 00:08:20,720 --> 00:08:24,360 Speaker 1: you have a an incredible arena ten years old in 163 00:08:24,400 --> 00:08:27,480 Speaker 1: little old Newark, New Jersey, in a pretty good market 164 00:08:27,560 --> 00:08:28,840 Speaker 1: with four and a half million people in allow of 165 00:08:28,840 --> 00:08:30,480 Speaker 1: di supposed B income, which seems to be booking a 166 00:08:30,480 --> 00:08:31,920 Speaker 1: lot of shows. I would say that when that kind 167 00:08:31,920 --> 00:08:35,120 Speaker 1: of ear in that market, it'd be primed for two tenants. 168 00:08:35,160 --> 00:08:37,880 Speaker 1: You've got one anchor tenant in the doubles? Is that 169 00:08:37,920 --> 00:08:41,640 Speaker 1: what it was supposed to be? Or would you like more? Garrett? 170 00:08:42,000 --> 00:08:44,319 Speaker 1: That creates me, you know, we um I actually love 171 00:08:44,400 --> 00:08:46,760 Speaker 1: the concert business and the entertainment business. So we have 172 00:08:46,800 --> 00:08:51,240 Speaker 1: a great relationship with Live Nation, great lationship relationship with 173 00:08:51,280 --> 00:08:54,520 Speaker 1: a G. We actually have a deal with MSG and 174 00:08:54,520 --> 00:08:57,640 Speaker 1: and booking with them and then Tim Lewicky and OVG. 175 00:08:57,880 --> 00:09:00,080 Speaker 1: So so we're pretty much a Switzerland type build and 176 00:09:00,120 --> 00:09:02,720 Speaker 1: we and we are booking a ton of shows and 177 00:09:02,760 --> 00:09:04,600 Speaker 1: we'd like to keep that going. It's a great business 178 00:09:04,600 --> 00:09:08,640 Speaker 1: because A E G and MSG not exactly a Switzerland 179 00:09:08,640 --> 00:09:11,520 Speaker 1: type situation. For those who know the business, especially in 180 00:09:11,559 --> 00:09:14,040 Speaker 1: New York. It's a tough business in this market. You 181 00:09:14,080 --> 00:09:15,920 Speaker 1: know what I found, Yeah, there's certainly a lot of competition. 182 00:09:15,960 --> 00:09:18,800 Speaker 1: You Know what I've found in our business is that 183 00:09:18,920 --> 00:09:21,800 Speaker 1: the bigger we grow, the more conflicts we have. UM. 184 00:09:21,880 --> 00:09:25,160 Speaker 1: And we have built this business on relationships and partnerships, 185 00:09:25,440 --> 00:09:28,000 Speaker 1: and we'll continue to do that and so and and 186 00:09:28,040 --> 00:09:30,400 Speaker 1: sometimes you find yourself partnering on one side of the 187 00:09:30,400 --> 00:09:32,520 Speaker 1: business and then fighting like cats and dogs on the other. 188 00:09:33,000 --> 00:09:35,960 Speaker 1: And I'd love our our competition to only be about 189 00:09:36,080 --> 00:09:39,120 Speaker 1: on the ice, on the pitch, and on the court, 190 00:09:39,559 --> 00:09:42,560 Speaker 1: and not in doing deals and and partnering. I think 191 00:09:42,600 --> 00:09:44,600 Speaker 1: that's the way we're gonna grow this in scale really quickly. 192 00:09:45,160 --> 00:09:47,240 Speaker 1: Is this the trend in the industry? All of the 193 00:09:47,280 --> 00:09:49,920 Speaker 1: assets under one roof like this? You know what I 194 00:09:49,960 --> 00:09:53,680 Speaker 1: think the trend of the industry is is that a 195 00:09:53,760 --> 00:09:56,319 Speaker 1: new age group of owners have come in. The valuations 196 00:09:56,320 --> 00:09:59,280 Speaker 1: have climbed so quickly. I mean, we all saw what 197 00:09:59,280 --> 00:10:02,319 Speaker 1: what I am G went for, and then the clippers 198 00:10:02,600 --> 00:10:05,400 Speaker 1: and then the rockets and UFC, and you start thinking, Okay, 199 00:10:05,440 --> 00:10:10,160 Speaker 1: these are real businesses that need real professional owners. UM. 200 00:10:10,240 --> 00:10:12,559 Speaker 1: And it doesn't mean they're not They're not big fans 201 00:10:12,840 --> 00:10:15,320 Speaker 1: of the sports that they buy and and any interest. 202 00:10:15,400 --> 00:10:19,120 Speaker 1: For sure, it just means everything is a little more sophisticated. 203 00:10:19,240 --> 00:10:22,160 Speaker 1: And we're building a business of the business. So as 204 00:10:22,200 --> 00:10:26,240 Speaker 1: the valuations continue to rise and and some of the um, 205 00:10:26,320 --> 00:10:30,680 Speaker 1: some of the owners trained uh turn over and change over. UM. 206 00:10:30,720 --> 00:10:34,640 Speaker 1: I think you'll see people UM building. You know, we 207 00:10:34,840 --> 00:10:37,160 Speaker 1: have an expression we say you're either growing or dying 208 00:10:37,760 --> 00:10:40,240 Speaker 1: and UM. And I think that's a sentiment that I 209 00:10:40,240 --> 00:10:42,160 Speaker 1: think you'll hear from a lot of the new age 210 00:10:42,200 --> 00:10:44,559 Speaker 1: owners who are looking to build real businesses. You can 211 00:10:44,600 --> 00:10:48,760 Speaker 1: find synergies, you can find scale even simply like the 212 00:10:48,960 --> 00:10:51,719 Speaker 1: in terms of financing and liquidity. To be able to 213 00:10:51,800 --> 00:10:55,320 Speaker 1: move those two back and forth amongst the bigger organizations 214 00:10:55,320 --> 00:10:57,440 Speaker 1: certainly helpful, that's all. I like the old thing. If 215 00:10:57,559 --> 00:11:01,280 Speaker 1: not first, your last, we certainly like being first. Tell 216 00:11:01,280 --> 00:11:02,599 Speaker 1: me all the things you've been first. I know you 217 00:11:02,679 --> 00:11:04,840 Speaker 1: love to know. I'm gonna tee you up because we've 218 00:11:04,840 --> 00:11:07,120 Speaker 1: known each other so long, we have been first with 219 00:11:07,360 --> 00:11:09,120 Speaker 1: go ahead. Now we've been first on a few things. 220 00:11:09,120 --> 00:11:12,160 Speaker 1: We do like being first, So we were you know 221 00:11:12,200 --> 00:11:15,640 Speaker 1: what the thing is we um. We've done a few 222 00:11:15,640 --> 00:11:17,959 Speaker 1: things to get out in front. So the Jersey Patches 223 00:11:18,200 --> 00:11:21,080 Speaker 1: something that people talk about. The first East Coast home 224 00:11:21,080 --> 00:11:23,320 Speaker 1: in the Grammy Museum, which will open up at the 225 00:11:23,320 --> 00:11:25,760 Speaker 1: Crudancial Center. We've got We've got plenty of things. We've 226 00:11:25,800 --> 00:11:27,719 Speaker 1: done it up. We we'd like to get out there 227 00:11:27,720 --> 00:11:30,280 Speaker 1: for sure. We are chatting with Scott O'Neill, the CEO 228 00:11:30,360 --> 00:11:33,680 Speaker 1: of Harris Blitzer Sports and Entertainment. You mentioned the Jersey 229 00:11:33,720 --> 00:11:38,000 Speaker 1: Patch Warriors got twenty million per so common in Europe. 230 00:11:38,000 --> 00:11:41,439 Speaker 1: You guys own Crystal Palace. You mentioned Pitch earlier. Why 231 00:11:41,440 --> 00:11:43,840 Speaker 1: are we so behind here with things like sports betting, 232 00:11:44,559 --> 00:11:47,679 Speaker 1: Jersey Patches. I mean, it's a full fledged banner ads 233 00:11:47,720 --> 00:11:49,520 Speaker 1: all over the world. Why we're behind? You know, I 234 00:11:49,520 --> 00:11:51,040 Speaker 1: have no idea why we're behind on the on the 235 00:11:51,600 --> 00:11:54,160 Speaker 1: Jersey Patches. I mean, and um, you know a couple 236 00:11:54,160 --> 00:11:56,160 Speaker 1: of the leagues opened up with the NFL has done 237 00:11:56,200 --> 00:12:00,520 Speaker 1: a on their practice Jersey. I'm I have no honestly 238 00:12:00,559 --> 00:12:02,280 Speaker 1: have no idea. I mean, I sit in the meetings, 239 00:12:02,280 --> 00:12:05,720 Speaker 1: I hear the dialogue. Publicly, David Stearting, you should say 240 00:12:05,760 --> 00:12:08,360 Speaker 1: publicly that that that space was sacra sanct But then 241 00:12:08,400 --> 00:12:10,960 Speaker 1: privately he'd say, you know, what's just not there right, 242 00:12:11,000 --> 00:12:13,520 Speaker 1: he would say, there's always a price. I would say 243 00:12:14,040 --> 00:12:16,240 Speaker 1: the NBA is an easy one. It's it's it's the 244 00:12:16,240 --> 00:12:19,400 Speaker 1: most global of properties. Um, it's the dominant league in 245 00:12:19,400 --> 00:12:22,719 Speaker 1: the world. What's what separates it from from football or 246 00:12:22,760 --> 00:12:26,240 Speaker 1: soccer is that you know, soccer has multiple incredible leagues. 247 00:12:26,320 --> 00:12:28,800 Speaker 1: The NBA basketball has one dominant league and such a 248 00:12:28,840 --> 00:12:32,600 Speaker 1: global phenomena. I think you'll continue to see the NBA 249 00:12:32,640 --> 00:12:35,080 Speaker 1: explore what a jersey, what the jersey might look like 250 00:12:35,120 --> 00:12:37,320 Speaker 1: in the future. There are still some owners though that 251 00:12:37,320 --> 00:12:40,560 Speaker 1: that love the purity and sanctity of the jersey, and 252 00:12:40,559 --> 00:12:44,760 Speaker 1: and that's terrific. It just hasn't seemed to hurt man 253 00:12:44,920 --> 00:12:47,800 Speaker 1: use jersey sale. I'm guessing that those owners do not 254 00:12:47,960 --> 00:12:51,160 Speaker 1: fall under the classification of new age, as you said 255 00:12:51,200 --> 00:12:53,320 Speaker 1: in this In many ways we could describe those new ages. 256 00:12:53,360 --> 00:12:55,720 Speaker 1: But when you say new age, do you mean younger, 257 00:12:55,760 --> 00:12:58,040 Speaker 1: do you mean private equity, venture capital? What do you 258 00:12:58,080 --> 00:13:00,600 Speaker 1: mean by new age? That's a good question. It's probably 259 00:13:00,640 --> 00:13:03,880 Speaker 1: some combination of all. I think when you have a 260 00:13:03,920 --> 00:13:08,920 Speaker 1: private equity mindset, um, it's one that that you're trying 261 00:13:08,960 --> 00:13:12,319 Speaker 1: to drive value and drive growth, and you do that 262 00:13:12,440 --> 00:13:14,440 Speaker 1: through a couple of different ways. Um, you know, you 263 00:13:14,440 --> 00:13:16,760 Speaker 1: you try to hire a present company excluded a really 264 00:13:16,760 --> 00:13:20,360 Speaker 1: talented management team, and you give them the resources. You 265 00:13:20,559 --> 00:13:24,040 Speaker 1: use your financial acumenary structure, so you're in a good 266 00:13:24,040 --> 00:13:27,600 Speaker 1: position to grow and and then you're trying to drive 267 00:13:27,640 --> 00:13:30,079 Speaker 1: as much value as you possibly can while working in 268 00:13:30,240 --> 00:13:32,480 Speaker 1: a league system, which is that's the one thing that's 269 00:13:32,520 --> 00:13:34,800 Speaker 1: really unique because you do have twenty nine in some 270 00:13:34,840 --> 00:13:37,520 Speaker 1: cases thirty other partners that you need to work closely with. 271 00:13:37,679 --> 00:13:40,360 Speaker 1: You guys have the seventies sixers. One thing about an 272 00:13:40,440 --> 00:13:45,440 Speaker 1: NBA game compared to baseball. In an NBA game, it's 273 00:13:45,480 --> 00:13:48,400 Speaker 1: about a little over two hours, and it's great for 274 00:13:48,440 --> 00:13:50,600 Speaker 1: the family to come in. It's great for viewers to 275 00:13:50,600 --> 00:13:53,760 Speaker 1: watch the game. In baseball, not to slam baseball. It's 276 00:13:53,840 --> 00:13:56,120 Speaker 1: like the old George Carlin line, we don't know when 277 00:13:56,160 --> 00:13:59,560 Speaker 1: it's going to end, but in but in basketball, you 278 00:13:59,600 --> 00:14:03,000 Speaker 1: can watched the game. And that translates to good business 279 00:14:03,040 --> 00:14:07,840 Speaker 1: because sponsors like that, the pace keeps going. People like 280 00:14:08,200 --> 00:14:11,120 Speaker 1: Adam Silver, the commissioner of the NBA, has been harping 281 00:14:11,160 --> 00:14:13,480 Speaker 1: on even shortening the game and tighten the game even more. 282 00:14:13,520 --> 00:14:15,400 Speaker 1: And you've seen some real changes over the last couple 283 00:14:15,400 --> 00:14:18,360 Speaker 1: of years, to make sure to eliminate time outs, to 284 00:14:18,400 --> 00:14:20,640 Speaker 1: make sure teams are coming out of time outs, quicker 285 00:14:21,080 --> 00:14:23,320 Speaker 1: that guys are getting to the free throw line. Quicker 286 00:14:23,360 --> 00:14:25,880 Speaker 1: that there's there's fewer and fewer pauses in the game. 287 00:14:25,920 --> 00:14:28,520 Speaker 1: As a fan, I love that as well. Um. You know, 288 00:14:28,760 --> 00:14:31,320 Speaker 1: in some cases the end of games took quite some time, 289 00:14:31,800 --> 00:14:33,480 Speaker 1: and we heard it more and more from the TV 290 00:14:33,600 --> 00:14:36,880 Speaker 1: partners to your point, than than the fans. The fans 291 00:14:36,880 --> 00:14:38,920 Speaker 1: just love the action at the end of game. But 292 00:14:39,000 --> 00:14:41,040 Speaker 1: the more we can keep that the pace of play going, 293 00:14:41,200 --> 00:14:42,600 Speaker 1: I think the better for the game. I mean, the 294 00:14:42,680 --> 00:14:45,760 Speaker 1: NBA is in such incredible shape. You have this. I mean, 295 00:14:45,920 --> 00:14:48,520 Speaker 1: just look at Philadelphia. We'll sell out every game as 296 00:14:48,600 --> 00:14:50,440 Speaker 1: team won twenty games last year, and we'll sell it 297 00:14:50,440 --> 00:14:54,160 Speaker 1: every game this year. Um, there's so much excitement in 298 00:14:54,240 --> 00:14:57,200 Speaker 1: and around the world. Let alone our individual markets. Tell 299 00:14:57,280 --> 00:14:59,600 Speaker 1: us what it was like. You were the CEO of 300 00:14:59,640 --> 00:15:02,280 Speaker 1: a t SAM that went through what I'm going to 301 00:15:02,360 --> 00:15:06,680 Speaker 1: be very kind here, a rebuilding phase, intentional or otherwise. 302 00:15:06,760 --> 00:15:09,480 Speaker 1: That probably took a little longer than you would have thought. 303 00:15:09,600 --> 00:15:14,080 Speaker 1: The winning was not there. What was the native for 304 00:15:14,200 --> 00:15:16,720 Speaker 1: you and having to go through that. You know, if 305 00:15:16,760 --> 00:15:20,760 Speaker 1: we had all known how difficult it was going to 306 00:15:20,840 --> 00:15:24,920 Speaker 1: be in terms of the pressure from the fans, pressure 307 00:15:24,920 --> 00:15:27,960 Speaker 1: from the media, pressure from the league, pressure from our families, 308 00:15:28,080 --> 00:15:30,480 Speaker 1: pressure from our friends. But your family, So what did 309 00:15:30,520 --> 00:15:35,080 Speaker 1: that look like? It wasn't great, you know, um, and 310 00:15:35,160 --> 00:15:38,120 Speaker 1: so you you We heard from just about everybody. So 311 00:15:38,160 --> 00:15:41,440 Speaker 1: the question is if we had known now what we knew, 312 00:15:41,480 --> 00:15:45,240 Speaker 1: then we have gone through the pain. And I think 313 00:15:45,240 --> 00:15:48,240 Speaker 1: if you took a straw poll of from Josh Harrison, 314 00:15:48,320 --> 00:15:50,800 Speaker 1: David Blitzer and me and Brian whoever else was in 315 00:15:50,800 --> 00:15:53,120 Speaker 1: the mix, our our different owners owners and ownership group, 316 00:15:53,280 --> 00:15:56,320 Speaker 1: I think just about everybody would say, yes, um, we're 317 00:15:56,360 --> 00:15:58,880 Speaker 1: we want to win a championship and to do that, 318 00:15:58,920 --> 00:16:01,280 Speaker 1: we're willing to go the distance. I've been in other 319 00:16:01,360 --> 00:16:04,520 Speaker 1: organizations where we talked about it, but I'm not sure 320 00:16:04,520 --> 00:16:06,960 Speaker 1: we were willing to actually do it. And and here 321 00:16:07,160 --> 00:16:09,440 Speaker 1: we're willing to give a shot. Are we gonna guarantee championship? NA? 322 00:16:10,000 --> 00:16:11,560 Speaker 1: But are we going to be in the conversation if 323 00:16:11,560 --> 00:16:16,040 Speaker 1: we're healthy? I think very much so like I think that, UM, 324 00:16:16,080 --> 00:16:18,680 Speaker 1: I don't It wasn't There wasn't a minute where I'd 325 00:16:18,680 --> 00:16:21,680 Speaker 1: say it was enjoyable. There were enjoyable moments, but the 326 00:16:21,720 --> 00:16:25,440 Speaker 1: process was as difficult the process professional as I've ever 327 00:16:25,440 --> 00:16:30,120 Speaker 1: gone through on every fact in front you could possibly fathom. 328 00:16:30,240 --> 00:16:32,680 Speaker 1: And you told every ready to trust the process, and 329 00:16:32,760 --> 00:16:35,480 Speaker 1: now you're sort of coming out of all that they 330 00:16:35,520 --> 00:16:38,360 Speaker 1: have trusted. What is the light at the end of 331 00:16:38,360 --> 00:16:40,560 Speaker 1: the tunnel. It doesn't seem to be a train. It's 332 00:16:40,560 --> 00:16:44,520 Speaker 1: definitely not an uncoming train. Um. You know, the process 333 00:16:44,680 --> 00:16:46,840 Speaker 1: is something that we've talked about for some time and 334 00:16:46,880 --> 00:16:48,480 Speaker 1: I think we'll talk about for some time in the 335 00:16:48,520 --> 00:16:52,120 Speaker 1: future because the process, people misunderstood it and mischaracterize it, 336 00:16:52,160 --> 00:16:54,000 Speaker 1: and particularly out of the market. In the market, everybody 337 00:16:54,040 --> 00:16:57,120 Speaker 1: understood the process. Out of the market, there's like it's losing, 338 00:16:57,400 --> 00:17:00,720 Speaker 1: and I'm like, no, the process is about winning. And 339 00:17:00,760 --> 00:17:02,840 Speaker 1: so it's like, what are you willing to do to 340 00:17:03,000 --> 00:17:05,439 Speaker 1: build and grow this organization? And the process for us 341 00:17:05,480 --> 00:17:09,080 Speaker 1: was as much about building a culture, building our training 342 00:17:09,119 --> 00:17:12,360 Speaker 1: complex so we could have a twenty four hour, four 343 00:17:12,440 --> 00:17:16,680 Speaker 1: seasons type jim that our players could come and call home. 344 00:17:17,080 --> 00:17:19,600 Speaker 1: It's like all those steps we took and yeah, did 345 00:17:19,600 --> 00:17:22,200 Speaker 1: we accumulate a lot of draft picks? We sure did. Did. 346 00:17:22,320 --> 00:17:24,760 Speaker 1: Did we take quite a quite a few chances on 347 00:17:24,800 --> 00:17:27,640 Speaker 1: the basketball side, We sure did. But but it's it's 348 00:17:27,680 --> 00:17:30,840 Speaker 1: a process that will go on for some time, hopefully 349 00:17:31,000 --> 00:17:33,320 Speaker 1: ends in a in a prey down Broad Street? Would 350 00:17:33,400 --> 00:17:37,040 Speaker 1: Josh consider it a successful season? And I don't care 351 00:17:37,040 --> 00:17:40,159 Speaker 1: if it's devils if he's holding the Stanley Cup or 352 00:17:40,200 --> 00:17:43,080 Speaker 1: if he's taking the Larry O. Baran Trophy from Adam Silver. 353 00:17:43,960 --> 00:17:46,399 Speaker 1: If he lost fifty million bucks but won a championship, 354 00:17:46,520 --> 00:17:50,120 Speaker 1: is that a successful season to Josh? You know, I'd 355 00:17:50,200 --> 00:17:53,040 Speaker 1: rather like just take out losing money and winning. We're 356 00:17:53,080 --> 00:17:56,280 Speaker 1: here to win championships and so a success would be 357 00:17:56,520 --> 00:18:00,360 Speaker 1: a championship on any of our frants for sure. Um. 358 00:18:00,440 --> 00:18:03,320 Speaker 1: In terms of of it's a little bit of a misnomer. 359 00:18:03,359 --> 00:18:05,080 Speaker 1: I mean, there is a way to to to lose 360 00:18:05,119 --> 00:18:07,760 Speaker 1: a lot of money on some of the sports if 361 00:18:07,840 --> 00:18:11,800 Speaker 1: you win. Um, But we think that winning and good 362 00:18:11,840 --> 00:18:15,080 Speaker 1: business are instricably linked. What do you see from franchise 363 00:18:15,160 --> 00:18:19,720 Speaker 1: valuations moving forward driven by media mostly as an executive 364 00:18:19,720 --> 00:18:22,720 Speaker 1: who counts on that national revenue, what's going through your mind? 365 00:18:23,880 --> 00:18:26,840 Speaker 1: We we think at least from from our start local 366 00:18:26,880 --> 00:18:30,119 Speaker 1: and go national, than then global, so on a local 367 00:18:30,200 --> 00:18:35,080 Speaker 1: and we think the two differentiating factors are data and content, 368 00:18:35,240 --> 00:18:37,240 Speaker 1: And so we're spending a lot of our time trying 369 00:18:37,280 --> 00:18:40,520 Speaker 1: to figure out, um do what do we know? Who 370 00:18:40,560 --> 00:18:42,520 Speaker 1: do we know? And what do we know about those 371 00:18:42,600 --> 00:18:45,280 Speaker 1: we know? I mean, your customers know about our customers. Yes, 372 00:18:45,480 --> 00:18:48,000 Speaker 1: And our fan base is quickly becoming a global fan base, 373 00:18:48,040 --> 00:18:51,639 Speaker 1: which offers up some interesting opportunity. And then from a 374 00:18:51,680 --> 00:18:55,200 Speaker 1: content and you know, we have access to the greatest 375 00:18:55,200 --> 00:18:57,119 Speaker 1: athletes in the world, and we know them as people, 376 00:18:57,160 --> 00:18:59,199 Speaker 1: and we can showcase them and we can give access 377 00:18:59,200 --> 00:19:01,800 Speaker 1: to our fans that nobody else can. And we think 378 00:19:02,000 --> 00:19:05,440 Speaker 1: going forward, you'll likely see our content in in Managarin 379 00:19:05,480 --> 00:19:08,680 Speaker 1: and Croatian and Spanish and French. Um as we start 380 00:19:08,720 --> 00:19:11,159 Speaker 1: to look at different opportunities around the world and not 381 00:19:11,359 --> 00:19:13,960 Speaker 1: to us is really exciting from a from a national 382 00:19:14,119 --> 00:19:18,359 Speaker 1: And and how the league's look at at deals and 383 00:19:18,400 --> 00:19:21,200 Speaker 1: programming and media and how they work with the different 384 00:19:21,200 --> 00:19:24,000 Speaker 1: media partners. You know, they're they're they're pretty well healed. 385 00:19:24,119 --> 00:19:26,480 Speaker 1: I'll go back to the NBA again because I work 386 00:19:26,560 --> 00:19:28,760 Speaker 1: there and know the league so well, like there's no 387 00:19:28,840 --> 00:19:31,920 Speaker 1: more talenting. Mean between Adam Silver and Bill Koening. There 388 00:19:31,920 --> 00:19:37,119 Speaker 1: no more too talented media executives that understand the landscape 389 00:19:37,440 --> 00:19:39,639 Speaker 1: um than those two in the world, And so I 390 00:19:39,640 --> 00:19:41,919 Speaker 1: think we're in pretty good hands and pretty good shape. 391 00:19:42,600 --> 00:19:44,920 Speaker 1: Is there going to be a one to one baton 392 00:19:45,160 --> 00:19:48,440 Speaker 1: pass off and transition and financially you know they would 393 00:19:48,520 --> 00:19:50,399 Speaker 1: know better than I would. I can't tell you that 394 00:19:50,480 --> 00:19:55,600 Speaker 1: the value of content live sports content, n b A, NHL, E, 395 00:19:55,760 --> 00:20:00,439 Speaker 1: p l E Sports team, dignitas, it's bigger and more 396 00:20:00,520 --> 00:20:03,480 Speaker 1: important than it ever has been before because it's the one. 397 00:20:04,040 --> 00:20:06,680 Speaker 1: You know, David Stern, the commissioner, used to say, DVR proof. 398 00:20:06,760 --> 00:20:09,680 Speaker 1: I don't even know if they're DVRs anymore, but there's certainly, 399 00:20:10,200 --> 00:20:13,040 Speaker 1: um it's programming, it's must watch TV, and it's it's 400 00:20:13,080 --> 00:20:16,840 Speaker 1: appointment television, appointment viewing, and that's really hard to find 401 00:20:16,840 --> 00:20:19,240 Speaker 1: out anywhere else. So I think it's going to keep 402 00:20:19,280 --> 00:20:22,480 Speaker 1: its value for forever. What did you learn when you 403 00:20:22,480 --> 00:20:24,000 Speaker 1: were at MSG and you were the CEO. Do you 404 00:20:24,000 --> 00:20:25,840 Speaker 1: remember the day I was in your office years ago 405 00:20:25,920 --> 00:20:28,399 Speaker 1: and we were talking about Jeremy Lynn and said, I 406 00:20:28,480 --> 00:20:31,719 Speaker 1: got a call from Coke wanting to change the signs 407 00:20:31,720 --> 00:20:34,840 Speaker 1: in the arena into Mandarin you've got an earlier glimpse 408 00:20:34,920 --> 00:20:38,080 Speaker 1: as to what the power of sport on the global 409 00:20:38,119 --> 00:20:40,720 Speaker 1: basis and how fast it can come and what opportunities 410 00:20:40,720 --> 00:20:43,160 Speaker 1: can come. Does that stick with you now when you're 411 00:20:43,200 --> 00:20:45,800 Speaker 1: thinking sort of on the global scale with all your properties, 412 00:20:46,040 --> 00:20:48,960 Speaker 1: it sure does. I mean, I'm I'm I'm very fortunate 413 00:20:49,320 --> 00:20:52,560 Speaker 1: to have sat through two of the great branding stories, 414 00:20:53,520 --> 00:20:55,399 Speaker 1: at least in my lifetime in sports. And one is 415 00:20:55,480 --> 00:21:01,040 Speaker 1: the Linsanity time was Linsanity for sure. And and trust 416 00:21:01,040 --> 00:21:03,840 Speaker 1: the Process has has wherever I go in the country 417 00:21:03,840 --> 00:21:06,600 Speaker 1: in the world now, when I'm walking away or walking 418 00:21:06,680 --> 00:21:10,440 Speaker 1: up someone, they'll say, good morning, Trust the processor, go sixers, 419 00:21:10,480 --> 00:21:13,480 Speaker 1: trust the process. And this could be from a from 420 00:21:13,480 --> 00:21:16,000 Speaker 1: a grandmother to a young kid anywhere around the world. 421 00:21:16,040 --> 00:21:19,040 Speaker 1: It's kind of fun to see those two branding that 422 00:21:19,119 --> 00:21:22,119 Speaker 1: I happened to to to be a part of have 423 00:21:22,280 --> 00:21:26,000 Speaker 1: such scale in terms of the early look a hundred 424 00:21:26,080 --> 00:21:29,200 Speaker 1: percent and absolutely um you know I had I remember 425 00:21:29,240 --> 00:21:32,479 Speaker 1: I got a call from from Leaning, like the Leaning, 426 00:21:32,520 --> 00:21:36,840 Speaker 1: like the actual gymnast who who has the brand, and 427 00:21:36,880 --> 00:21:39,400 Speaker 1: he said, hey, um, you know, I'd like to come 428 00:21:39,400 --> 00:21:42,280 Speaker 1: to New York. My son is a huge fan of 429 00:21:42,800 --> 00:21:45,399 Speaker 1: Jeremy Lynn and we'd like to do a deal, and 430 00:21:45,480 --> 00:21:49,080 Speaker 1: you said, okay, I said, we'd love to see you 431 00:21:50,320 --> 00:21:53,120 Speaker 1: so so that yeah, so So to get a sense 432 00:21:53,119 --> 00:21:55,600 Speaker 1: and to be able to do deals um in Hong 433 00:21:55,680 --> 00:21:59,520 Speaker 1: Kong and mainland China, UM for because we had a 434 00:21:59,560 --> 00:22:03,080 Speaker 1: player just making an impact certainly gave me an inside 435 00:22:03,080 --> 00:22:04,960 Speaker 1: look as to what the future of the world is 436 00:22:05,000 --> 00:22:07,840 Speaker 1: and how small this world is and how wide and 437 00:22:07,960 --> 00:22:13,119 Speaker 1: strong and impactful and globally appealing the NBA has become. 438 00:22:13,640 --> 00:22:18,159 Speaker 1: We're talking to Scott O'Neill, the CEO of Harris Blitzer's 439 00:22:18,200 --> 00:22:20,720 Speaker 1: Sports and Entertainment. An old man bar has got to 440 00:22:20,720 --> 00:22:24,080 Speaker 1: ask a question about E sports, and my twenty six 441 00:22:24,160 --> 00:22:27,720 Speaker 1: year old son slapped me into reality because my first 442 00:22:27,760 --> 00:22:29,919 Speaker 1: thought was, like, now, when the heck is going to 443 00:22:30,000 --> 00:22:33,719 Speaker 1: watch video games on TV? And then he told me 444 00:22:33,760 --> 00:22:35,639 Speaker 1: it says you need the shut up dead because you 445 00:22:35,640 --> 00:22:38,840 Speaker 1: were watching Championship Bridge on TV a long time ago. 446 00:22:39,240 --> 00:22:41,600 Speaker 1: And when he said that, I'm like, you know what, man. 447 00:22:41,640 --> 00:22:45,520 Speaker 1: He had me watch the sports contest, had shut off 448 00:22:45,520 --> 00:22:50,119 Speaker 1: the Golden Girls and watch not far off. I was 449 00:22:50,160 --> 00:22:53,560 Speaker 1: watching Perry Mason. He had shot at all. But that's 450 00:22:53,600 --> 00:22:56,440 Speaker 1: the thing. I was intrigued this like, yes, people are 451 00:22:56,480 --> 00:22:59,840 Speaker 1: going to watch people play video games and I really 452 00:22:59,840 --> 00:23:02,399 Speaker 1: got into it. Tell me, where do you think sports 453 00:23:02,480 --> 00:23:04,119 Speaker 1: is going to go in the future. Sure, well, it's 454 00:23:04,160 --> 00:23:07,480 Speaker 1: certainly a far cry from the days of Pong and 455 00:23:07,520 --> 00:23:11,760 Speaker 1: even from Donkey Kong, that's for sure. Um, E sports 456 00:23:12,080 --> 00:23:15,639 Speaker 1: is it's going to become a real business. It hasn't 457 00:23:15,640 --> 00:23:18,639 Speaker 1: a tremendous fan base. You know, more people watch the 458 00:23:18,760 --> 00:23:21,400 Speaker 1: Legal Legends, which is a one of the the kind 459 00:23:21,400 --> 00:23:24,200 Speaker 1: of the power game in the sports. More people watch 460 00:23:24,280 --> 00:23:27,560 Speaker 1: the Legal Legends World Championships, then watch the College Football 461 00:23:27,640 --> 00:23:30,040 Speaker 1: National Championship. Just to give you a sense, I'm now 462 00:23:30,040 --> 00:23:33,240 Speaker 1: they're watching on Twitch versus um from their living room 463 00:23:33,359 --> 00:23:36,040 Speaker 1: on their television that's hanging on the wall. But that's 464 00:23:36,080 --> 00:23:38,280 Speaker 1: more a function of of the world than anything else. 465 00:23:38,320 --> 00:23:42,760 Speaker 1: The reality is is is there are You'll have hundreds 466 00:23:42,760 --> 00:23:47,000 Speaker 1: of thousands of people watching streamers X pros practice Like 467 00:23:47,480 --> 00:23:52,080 Speaker 1: there's so much audience appeal and so much of avidity 468 00:23:52,160 --> 00:23:57,480 Speaker 1: and affinity to E sports. Um. I think it's this 469 00:23:57,560 --> 00:24:00,560 Speaker 1: is going to keep growing. Um and at by growing, 470 00:24:00,680 --> 00:24:03,560 Speaker 1: I mean of the business. The fan base is growing 471 00:24:03,600 --> 00:24:06,520 Speaker 1: pretty dramatically, But but I think the business is you know. 472 00:24:06,640 --> 00:24:09,399 Speaker 1: I think the stat I recently read was that money 473 00:24:09,440 --> 00:24:12,639 Speaker 1: spent per fan and E sports is about seventy cents. 474 00:24:13,119 --> 00:24:16,000 Speaker 1: In the NFL, it's about seventy five per fan. What 475 00:24:16,040 --> 00:24:18,480 Speaker 1: do they spend it on? Good question. They spent it 476 00:24:18,520 --> 00:24:23,320 Speaker 1: on some on merchandise, some on tickets, some on premium content. 477 00:24:23,640 --> 00:24:25,199 Speaker 1: We only have a couple of minutes left, so I 478 00:24:25,200 --> 00:24:27,520 Speaker 1: wanted to belabor the point here of Colin Kaepernick. But 479 00:24:27,520 --> 00:24:29,520 Speaker 1: we're in this world now where everything seems to be 480 00:24:29,560 --> 00:24:32,520 Speaker 1: revolving around Kaepernick and Trump. Were you at the NBA 481 00:24:32,560 --> 00:24:35,640 Speaker 1: when mamodabdu ra Roof didn't want to stand? Where? Where 482 00:24:35,640 --> 00:24:38,560 Speaker 1: were you? And think? I was at the Philaelphagles? Okay? 483 00:24:38,720 --> 00:24:40,880 Speaker 1: And we are in my head, I can only think 484 00:24:41,000 --> 00:24:45,840 Speaker 1: we've been here before, We've done this. You as an executive, 485 00:24:46,359 --> 00:24:49,040 Speaker 1: do you plan now? Your Sixers sees it and starting 486 00:24:49,040 --> 00:24:52,320 Speaker 1: it seems as if NBA players have free reign when 487 00:24:52,359 --> 00:24:54,560 Speaker 1: it comes to socialistus much more than the NFL. They 488 00:24:54,600 --> 00:24:57,520 Speaker 1: have the support of the league, the commissioner, seemingly the owners. 489 00:24:57,920 --> 00:25:01,560 Speaker 1: Where's your head going into a season? And more interesting 490 00:25:01,600 --> 00:25:03,480 Speaker 1: on the Sixers, the players are just a little more 491 00:25:03,520 --> 00:25:06,320 Speaker 1: socially active, you know, and and um. But they feel 492 00:25:06,359 --> 00:25:10,000 Speaker 1: comfortable because I think they feel they're supported by their teams. Right, 493 00:25:10,119 --> 00:25:13,040 Speaker 1: It's not only support, I think it's it's more like 494 00:25:13,640 --> 00:25:16,479 Speaker 1: we understand the platform that we've been given. And I 495 00:25:16,480 --> 00:25:19,720 Speaker 1: say we because the league has run as a partnership 496 00:25:19,720 --> 00:25:24,760 Speaker 1: between the players, the league, the teams, the owners, the executives. 497 00:25:24,800 --> 00:25:27,560 Speaker 1: That's how we see each other. It's it's definitely a 498 00:25:27,640 --> 00:25:30,399 Speaker 1: family or a partnership. And so we believe that we 499 00:25:30,520 --> 00:25:34,080 Speaker 1: have an obligation to leverage this platform to drive social change. 500 00:25:34,680 --> 00:25:37,080 Speaker 1: And that to me is is like that's what makes 501 00:25:37,160 --> 00:25:39,879 Speaker 1: it worth it. And so when you look talk about 502 00:25:39,920 --> 00:25:42,639 Speaker 1: what might concern me or what I think about is 503 00:25:42,720 --> 00:25:45,919 Speaker 1: I want to make sure that the players understand certainly 504 00:25:45,920 --> 00:25:48,439 Speaker 1: that they have a platform and a bridge, and also 505 00:25:48,560 --> 00:25:51,479 Speaker 1: that they understand the impact that their words might have, 506 00:25:52,040 --> 00:25:54,960 Speaker 1: UM and how they use them and how they choose 507 00:25:55,000 --> 00:25:59,040 Speaker 1: to use their their platform. Remember, these are young men 508 00:25:59,240 --> 00:26:01,280 Speaker 1: generally are I mean team is particularly young on both 509 00:26:01,400 --> 00:26:04,119 Speaker 1: both the Scissers and Devels are particularly young teams. And 510 00:26:04,160 --> 00:26:09,639 Speaker 1: so a lot of our our council conversations are wrapped 511 00:26:09,680 --> 00:26:12,280 Speaker 1: around what do you want your brand to look like? Like? 512 00:26:12,320 --> 00:26:14,439 Speaker 1: We what what do we want you? How do you 513 00:26:14,480 --> 00:26:16,720 Speaker 1: want to see yourself? Do you want to be an activist? 514 00:26:16,720 --> 00:26:17,920 Speaker 1: Do you want to be out front? Do you want 515 00:26:17,920 --> 00:26:20,440 Speaker 1: to be sit behind? You not want to engage? That's 516 00:26:20,440 --> 00:26:24,280 Speaker 1: okay to UM. Socially, UM. The only thing we we 517 00:26:24,359 --> 00:26:27,840 Speaker 1: insist upon is that UM is that we are active 518 00:26:28,080 --> 00:26:30,080 Speaker 1: and that we are in the game. And by that 519 00:26:30,119 --> 00:26:32,480 Speaker 1: I mean we roll up our sleeves and we're in 520 00:26:32,520 --> 00:26:36,199 Speaker 1: the community. Our players are out there everywhere. We just 521 00:26:36,240 --> 00:26:39,560 Speaker 1: had a camp last week with kids in Camden, New Jersey, 522 00:26:39,800 --> 00:26:42,720 Speaker 1: and Justin Anderson rolls in and Justin Anderson delivers a 523 00:26:42,800 --> 00:26:45,680 Speaker 1: twenty minute talk to these kids in Canada that bring 524 00:26:46,080 --> 00:26:48,920 Speaker 1: tears to your US and and our kids go out 525 00:26:49,000 --> 00:26:51,639 Speaker 1: and they serve, and I love it, and they care 526 00:26:51,920 --> 00:26:56,160 Speaker 1: and they're actually invested in the community. The talk is great. 527 00:26:56,560 --> 00:26:59,960 Speaker 1: The raising awareness is fantastic. To be able to dry 528 00:27:00,040 --> 00:27:02,480 Speaker 1: I have a dialogue and a country that so badly 529 00:27:02,560 --> 00:27:06,360 Speaker 1: needs healing and dialecut is wonderful and that's a great opportunity. 530 00:27:06,400 --> 00:27:09,560 Speaker 1: But but I I, at least from our end, our 531 00:27:09,600 --> 00:27:11,760 Speaker 1: conversations with the players are like great, Now, let's go 532 00:27:11,760 --> 00:27:14,240 Speaker 1: back it up and help somebody. Scott O'Neil, the chief 533 00:27:14,240 --> 00:27:18,480 Speaker 1: executive officer of the new Harris Blitzer's Sports and Entertainment. 534 00:27:18,520 --> 00:27:21,119 Speaker 1: Thank you so much for coming in and talking with us. 535 00:27:21,240 --> 00:27:23,520 Speaker 1: Thank you. Get your HB S E T shirts now 536 00:27:23,960 --> 00:27:27,359 Speaker 1: I have h I got a toaster with that. What 537 00:27:27,440 --> 00:27:29,520 Speaker 1: do I get? What do I get with this? All right? 538 00:27:29,600 --> 00:27:34,480 Speaker 1: Thank you gentlemen, you're terrific. Takeaways from Scott O'Neill, My goodness, 539 00:27:34,480 --> 00:27:37,960 Speaker 1: E sports And it's like I was saying earlier, who 540 00:27:38,119 --> 00:27:41,040 Speaker 1: in the world would sit down to watch people play 541 00:27:41,160 --> 00:27:45,040 Speaker 1: video games? Well, a lot of people, and my son 542 00:27:45,040 --> 00:27:48,400 Speaker 1: convinced me that this is something that's important to watch. 543 00:27:48,400 --> 00:27:50,280 Speaker 1: The sports. It is going to grow. Yeah, that's only 544 00:27:50,280 --> 00:27:52,040 Speaker 1: one small part of what they do. They take away 545 00:27:52,080 --> 00:27:54,800 Speaker 1: from me is that Josh Harris and David Blitzer have 546 00:27:55,000 --> 00:27:58,000 Speaker 1: their eye on global sports properties. They want to be 547 00:27:58,080 --> 00:28:00,520 Speaker 1: right up there with A E. G. And they want 548 00:28:00,520 --> 00:28:03,400 Speaker 1: to be right up there with M. S G. They 549 00:28:03,440 --> 00:28:05,920 Speaker 1: want to be right up there with Cronki Sports and Entertainment, 550 00:28:06,280 --> 00:28:09,760 Speaker 1: all of these big players. They're not happy anymore to 551 00:28:09,840 --> 00:28:13,040 Speaker 1: have a team or even to imagine that in just 552 00:28:13,200 --> 00:28:18,560 Speaker 1: a small area, feels better to be number one than 553 00:28:18,640 --> 00:28:20,560 Speaker 1: number five. I'll wear a number. Because of Mike, we 554 00:28:20,560 --> 00:28:22,000 Speaker 1: have a chance to go for three in a row. 555 00:28:22,040 --> 00:28:23,960 Speaker 1: Good numbers in a good time. When I first started 556 00:28:24,000 --> 00:28:27,400 Speaker 1: wearing the number, I would just happy. In Bloomberg Business 557 00:28:27,440 --> 00:28:31,240 Speaker 1: of Sports the number of the week time. Now with 558 00:28:31,280 --> 00:28:33,840 Speaker 1: the number of the week fifty. This one's an easy 559 00:28:33,880 --> 00:28:38,560 Speaker 1: one because Aaron Judge. He broke the rookie home run 560 00:28:38,600 --> 00:28:41,840 Speaker 1: record that was set by Mark McGuire. Aaron Judge, I mean, 561 00:28:42,120 --> 00:28:44,440 Speaker 1: I can't say enough about this rookie. Well, first of all, 562 00:28:44,440 --> 00:28:46,120 Speaker 1: you said it's easy. Neither of us came up with it. 563 00:28:46,360 --> 00:28:48,360 Speaker 1: Behind the glass. That was Medina Parwana who came up 564 00:28:48,400 --> 00:28:49,840 Speaker 1: with this number of the week. So we'll have to 565 00:28:49,920 --> 00:28:52,280 Speaker 1: like that one. Let's have a little shout out there. 566 00:28:52,440 --> 00:28:54,600 Speaker 1: But what I'm struck with is how he sells. Like 567 00:28:54,680 --> 00:28:57,440 Speaker 1: the Yankees are using this guy to sell you the 568 00:28:57,520 --> 00:29:01,200 Speaker 1: Judges Chambers. He's in their promo. Is he on the 569 00:29:01,280 --> 00:29:03,080 Speaker 1: he has his tops cards, like seven of the of 570 00:29:03,160 --> 00:29:06,440 Speaker 1: the ten best selling cards are all about Aaron Judge. 571 00:29:06,800 --> 00:29:09,240 Speaker 1: His jersey that was worn at the home run derby 572 00:29:09,320 --> 00:29:11,960 Speaker 1: is by far the highest price that it's going for. 573 00:29:12,520 --> 00:29:16,680 Speaker 1: He is a business unto himself. I'm excited to watch 574 00:29:16,760 --> 00:29:20,200 Speaker 1: him in the next year or two if he stays 575 00:29:20,240 --> 00:29:23,000 Speaker 1: like this on the field. Of course, it's all predicated 576 00:29:23,440 --> 00:29:26,360 Speaker 1: on the Yankees winning and him being successful keep hitting 577 00:29:26,400 --> 00:29:28,920 Speaker 1: home runs, but it's going to be fun to see 578 00:29:28,960 --> 00:29:31,960 Speaker 1: what this guy can do. You've been listening to Bloomberg 579 00:29:32,000 --> 00:29:34,160 Speaker 1: Business of Sports. We are here each and every week 580 00:29:34,200 --> 00:29:36,800 Speaker 1: at the same time, exploring the world of money and sports. 581 00:29:36,960 --> 00:29:39,240 Speaker 1: Michael Barr and I'm Scott Sah. Thanks for joining us. 582 00:29:39,240 --> 00:29:41,640 Speaker 1: Please tune in next week when we continue our conversations 583 00:29:41,720 --> 00:29:43,760 Speaker 1: with the best and brightest in the business of sports. 584 00:29:44,080 --> 00:29:46,800 Speaker 1: You're listening to Bloomberg Business of Sports on Bloomberg Radio 585 00:29:46,880 --> 00:29:50,720 Speaker 1: around the world and online as an Apple podcast on iTunes.