1 00:00:00,880 --> 00:00:03,520 Speaker 1: This is the Bloomberg Business of Sports show, where we 2 00:00:03,560 --> 00:00:06,080 Speaker 1: explore the big money issues in the world of sports. 3 00:00:06,160 --> 00:00:08,720 Speaker 1: I'm Michael Baum and I'm Mike Lynch. Coming up today 4 00:00:08,840 --> 00:00:13,400 Speaker 1: Thursday Night. Football ratings continue to rise while baseball's big 5 00:00:13,440 --> 00:00:18,200 Speaker 1: West Coast names bring big numbers to TBS. Plus rumors 6 00:00:18,239 --> 00:00:23,200 Speaker 1: that Disney is considering thinking about talking about maybe spinning 7 00:00:23,239 --> 00:00:27,480 Speaker 1: off the espn uh. The company is quickly denying that rumor. 8 00:00:27,880 --> 00:00:30,280 Speaker 1: But is there anything there? And that's all coming up, 9 00:00:30,400 --> 00:00:33,880 Speaker 1: But first, the NFL and sports books like Draft Kings 10 00:00:33,960 --> 00:00:36,680 Speaker 1: and fan Do never heard of those before, have been 11 00:00:36,800 --> 00:00:40,120 Speaker 1: the best of friends. Through the first weeks of this season. 12 00:00:40,159 --> 00:00:42,879 Speaker 1: You may have heard and seen this ad more than 13 00:00:42,920 --> 00:00:46,519 Speaker 1: a few times. Anyone could win over fifty grand prizes 14 00:00:46,520 --> 00:00:48,919 Speaker 1: with our free to play pool, So heads to the Draftings, 15 00:00:48,920 --> 00:00:52,800 Speaker 1: app that one instantly and make it rain with unofficial 16 00:00:52,840 --> 00:00:58,880 Speaker 1: sports betting partner of the NFL automatica ROMATICA. See that 17 00:00:59,080 --> 00:01:01,400 Speaker 1: was all over games for the first four weeks of 18 00:01:01,400 --> 00:01:09,400 Speaker 1: the season. But this week, Oh, I hear something. Uh, 19 00:01:09,880 --> 00:01:13,160 Speaker 1: Why that's the sound I hear when I have a 20 00:01:13,200 --> 00:01:17,160 Speaker 1: one ft put and my opponents don't say that's good? Mike, nothing, 21 00:01:19,040 --> 00:01:23,080 Speaker 1: But what happened. I thought everything was going great. You know, 22 00:01:23,200 --> 00:01:26,240 Speaker 1: I I think the presstor to me, I know, the numbers, 23 00:01:26,280 --> 00:01:28,080 Speaker 1: we have numbers to back up all these things that 24 00:01:28,120 --> 00:01:30,920 Speaker 1: you just talked about, Michael. But uh, I think that 25 00:01:31,280 --> 00:01:33,880 Speaker 1: the presence of MGM and Caesar's has sort of risen 26 00:01:33,920 --> 00:01:37,880 Speaker 1: a little bit, while FanDuel and sports UH DraftKings have 27 00:01:38,000 --> 00:01:40,040 Speaker 1: sort of scaled back a little bit. Did they think 28 00:01:40,080 --> 00:01:41,840 Speaker 1: they got the message out in the first four weeks 29 00:01:41,840 --> 00:01:44,000 Speaker 1: of the season and business is so good, or they 30 00:01:44,120 --> 00:01:47,280 Speaker 1: saving up for the for the NBA and UH in 31 00:01:47,319 --> 00:01:49,800 Speaker 1: the National Hockey League season. You know, you come to 32 00:01:49,840 --> 00:01:51,760 Speaker 1: think about it. As I was watching the games, I 33 00:01:51,800 --> 00:01:54,760 Speaker 1: did not see those ads, but I wasn't thinking about 34 00:01:54,800 --> 00:01:57,200 Speaker 1: it at the time because well I was kind of betting. 35 00:01:57,400 --> 00:02:01,800 Speaker 1: But but I didn't really lies until we were talking 36 00:02:01,800 --> 00:02:05,000 Speaker 1: about this later this morning. Yeah, I mean I always 37 00:02:05,040 --> 00:02:08,160 Speaker 1: thought that, you know, like you said, maybe they're trying 38 00:02:08,200 --> 00:02:10,600 Speaker 1: to get ready for the NBA season. Maybe they're gearing 39 00:02:10,639 --> 00:02:13,680 Speaker 1: up because they always have promotions. Because with the NBA 40 00:02:13,760 --> 00:02:16,639 Speaker 1: season coming up this week, you also have the start 41 00:02:16,680 --> 00:02:19,880 Speaker 1: of hockey season which is just begun, so maybe that's 42 00:02:19,919 --> 00:02:21,919 Speaker 1: going as well. And then of course you have all 43 00:02:22,480 --> 00:02:26,160 Speaker 1: of the championship games going on in baseball, so maybe 44 00:02:26,160 --> 00:02:29,120 Speaker 1: we'll see that. Well, if Vandal has spent somewhere north 45 00:02:29,160 --> 00:02:32,160 Speaker 1: of million dollars so far, I think that they've got 46 00:02:32,200 --> 00:02:34,680 Speaker 1: their message out and they've been in play for a while. 47 00:02:35,160 --> 00:02:38,160 Speaker 1: Remember last year, uh, this is all sort of new 48 00:02:38,200 --> 00:02:40,280 Speaker 1: coming into the National Football League. But this year it 49 00:02:40,320 --> 00:02:43,280 Speaker 1: was full bore coming in. And we talked to Sam 50 00:02:43,400 --> 00:02:46,440 Speaker 1: Kennedy the other day, and baseball is embracing it. All 51 00:02:46,480 --> 00:02:49,079 Speaker 1: the sports are embracing it. It used to be radioactive 52 00:02:49,120 --> 00:02:51,000 Speaker 1: if you mentioned that the words gambling in any of 53 00:02:51,000 --> 00:02:54,120 Speaker 1: the four major sports leagues in the same sentence. Now 54 00:02:54,160 --> 00:02:56,400 Speaker 1: there are a lot of the leagues have formed partnerships. 55 00:02:56,800 --> 00:02:58,399 Speaker 1: You know, we'll see, we'll see if the money comes 56 00:02:58,400 --> 00:03:00,360 Speaker 1: in in the second half of the season. Let's not 57 00:03:00,400 --> 00:03:03,120 Speaker 1: forget there are more eyeballs on the playoffs when we 58 00:03:03,120 --> 00:03:06,880 Speaker 1: get into January and early February. And let's move on 59 00:03:06,919 --> 00:03:10,040 Speaker 1: to talking about TV rating. So as I was warming 60 00:03:10,120 --> 00:03:13,720 Speaker 1: up the Dumont and I was watching football in Baseball 61 00:03:14,240 --> 00:03:18,640 Speaker 1: Thursday Night Football. Remember when this first came out, I thought, oh, no, 62 00:03:18,800 --> 00:03:22,760 Speaker 1: this is gonna be a disaster. I was wrong. They 63 00:03:22,760 --> 00:03:24,880 Speaker 1: had went they had gimmicks. They had these Thursday night 64 00:03:25,000 --> 00:03:28,840 Speaker 1: uniforms everybody wore. There were one solid color. Seattle would 65 00:03:28,840 --> 00:03:32,000 Speaker 1: be you know, this sort of pastel green, one of 66 00:03:32,000 --> 00:03:35,200 Speaker 1: those electric football games where you had those men moving 67 00:03:35,240 --> 00:03:37,720 Speaker 1: around on the field. I'm like, what is this. Yeah, 68 00:03:37,760 --> 00:03:39,080 Speaker 1: you'd line them all up and they soon as you 69 00:03:39,120 --> 00:03:40,680 Speaker 1: hit the on button, they turn around and run. They 70 00:03:40,720 --> 00:03:43,280 Speaker 1: brought this a direction. But you know, they had some 71 00:03:43,320 --> 00:03:45,880 Speaker 1: really dog matchups and and and the ratings were down. 72 00:03:45,960 --> 00:03:48,080 Speaker 1: But I went through and looked at the first six 73 00:03:48,120 --> 00:03:50,760 Speaker 1: weeks this year. Went out of the shoot Thursday night, 74 00:03:50,800 --> 00:03:54,800 Speaker 1: They've got Dallas and Tampa Bay, huge, huge matchup, great 75 00:03:54,880 --> 00:03:57,280 Speaker 1: numbers for that next week, they got two major markets. 76 00:03:57,320 --> 00:03:59,560 Speaker 1: They got the Giants and the Washington football team. So 77 00:03:59,600 --> 00:04:02,000 Speaker 1: the Giant sent hadn't really gone south yet. There was 78 00:04:02,080 --> 00:04:03,720 Speaker 1: a promise and there was some hope, and it's a 79 00:04:03,720 --> 00:04:06,680 Speaker 1: major market obviously the biggest market in Washington. Then he 80 00:04:06,760 --> 00:04:09,280 Speaker 1: had a couple of dog matchups. You had Carolina and Houston, 81 00:04:09,360 --> 00:04:12,080 Speaker 1: Jacksonville and Cincinnati. But then he came back with Los 82 00:04:12,080 --> 00:04:14,920 Speaker 1: Angeles and Seattle and last week Tampa Bay in Philadelphia. 83 00:04:15,280 --> 00:04:18,359 Speaker 1: So if you put a good matchup, they will watch. Also, 84 00:04:18,720 --> 00:04:22,280 Speaker 1: as long as you have an undefeated team like Arizona, 85 00:04:22,920 --> 00:04:25,000 Speaker 1: you can now and I would like to know what 86 00:04:25,040 --> 00:04:27,680 Speaker 1: the league is gonna do because you can option out 87 00:04:27,720 --> 00:04:31,960 Speaker 1: that game and maybe make it the Sunday night game 88 00:04:32,080 --> 00:04:33,960 Speaker 1: or or whatever. I'd like to know what the league 89 00:04:34,040 --> 00:04:35,919 Speaker 1: is gonna do with that. Yeah, I would too. But 90 00:04:35,960 --> 00:04:39,000 Speaker 1: they see green right now in these matchups. And then 91 00:04:39,200 --> 00:04:41,400 Speaker 1: I think they were having second thoughts about Thursday Night 92 00:04:41,440 --> 00:04:44,640 Speaker 1: because when they first came out, they did divisional matchups 93 00:04:44,720 --> 00:04:46,839 Speaker 1: because they didn't want the team spending a lot of 94 00:04:46,839 --> 00:04:50,640 Speaker 1: time traveling a great distances. So you know, Buffalo would 95 00:04:50,640 --> 00:04:52,919 Speaker 1: play the New York Jets, uh, and it would be awful. 96 00:04:52,960 --> 00:04:55,760 Speaker 1: Cincinnati would play Cleveland. And these are the times when 97 00:04:55,800 --> 00:04:58,760 Speaker 1: both these teams were at the bottoms of their divisions. 98 00:04:58,760 --> 00:05:00,680 Speaker 1: But but now they're just same. You know, we're just 99 00:05:00,680 --> 00:05:02,200 Speaker 1: gonna roll the dice and when to get the best 100 00:05:02,200 --> 00:05:05,560 Speaker 1: matchups we can possibly get. Speaking of good matchups, it 101 00:05:05,760 --> 00:05:08,720 Speaker 1: is great for baseball, the NLD, the n l C 102 00:05:09,000 --> 00:05:11,000 Speaker 1: s Man and and all of this that's going on 103 00:05:11,279 --> 00:05:15,240 Speaker 1: TVs is like, yeah, this is what we want. And 104 00:05:15,279 --> 00:05:18,400 Speaker 1: they have been some very good games, especially uh, the 105 00:05:18,440 --> 00:05:20,760 Speaker 1: Atlantic games. I mean it's come down to the final 106 00:05:20,839 --> 00:05:23,400 Speaker 1: at bat, it has and TVs has has got a 107 00:05:23,400 --> 00:05:26,000 Speaker 1: perfect set up there because that that's the home network 108 00:05:26,000 --> 00:05:28,440 Speaker 1: of the Atlanta Braves and they pretty much have been 109 00:05:28,480 --> 00:05:31,280 Speaker 1: built themselves for years as America's team. And then you 110 00:05:31,360 --> 00:05:34,279 Speaker 1: get Los Angeles Dodgers, which are, next to the Yankees, 111 00:05:34,320 --> 00:05:37,160 Speaker 1: the most popular baseball team on the planet and they 112 00:05:37,200 --> 00:05:40,040 Speaker 1: get huge ratings. I mean, and as you said, both 113 00:05:40,080 --> 00:05:42,320 Speaker 1: these games have been very, very dramatic, and they've played 114 00:05:42,520 --> 00:05:44,360 Speaker 1: the first two games are played on the East coast. 115 00:05:44,640 --> 00:05:46,919 Speaker 1: Now let's see what happens when the next three games 116 00:05:46,920 --> 00:05:49,839 Speaker 1: move out to the West coast in Los Angeles. Will 117 00:05:49,880 --> 00:05:52,640 Speaker 1: there be eyeballs? You know when we get into the 118 00:05:52,640 --> 00:05:56,919 Speaker 1: eighth and ninth inning. ESPN Disney they're all very tight 119 00:05:57,000 --> 00:06:01,440 Speaker 1: lipped about this. Uh, there is a report or rumor 120 00:06:01,440 --> 00:06:04,080 Speaker 1: whatever you want to call it, some hush hush talk 121 00:06:04,560 --> 00:06:08,799 Speaker 1: about Disney thinking about spinning off ESPN that that would 122 00:06:08,800 --> 00:06:11,440 Speaker 1: be huge if that's true it is, And how many 123 00:06:12,120 --> 00:06:14,000 Speaker 1: a day doesn't go by when you don't run into 124 00:06:14,040 --> 00:06:16,000 Speaker 1: someone that has told you they have cut the cord 125 00:06:16,040 --> 00:06:18,880 Speaker 1: with cable. They just fed up a paying two two 126 00:06:18,920 --> 00:06:21,760 Speaker 1: dollars a month and for you know, of the channels 127 00:06:21,800 --> 00:06:25,440 Speaker 1: they never want to watch. And Disney ESPN has seen 128 00:06:25,640 --> 00:06:29,520 Speaker 1: the success of some of these other streaming of like Hulu, Netflix, 129 00:06:29,720 --> 00:06:33,440 Speaker 1: Disney Plus now ESPN Plus. Uh two months ago had 130 00:06:33,480 --> 00:06:36,520 Speaker 1: subscribers of almost at thirteen million people and it was 131 00:06:36,560 --> 00:06:39,560 Speaker 1: growing at the time. So they're seeing something there. And uh, 132 00:06:39,600 --> 00:06:42,520 Speaker 1: I think, you know, I hate to use cliches, but 133 00:06:42,560 --> 00:06:44,440 Speaker 1: the old with the smoke, there's was a little bit 134 00:06:44,440 --> 00:06:48,040 Speaker 1: of fire that follows well. Now Disney and ESPN they 135 00:06:48,160 --> 00:06:50,479 Speaker 1: both denied it, you know, the old we don't discuss 136 00:06:50,520 --> 00:06:54,119 Speaker 1: business at the dinner table routine. But like you said, 137 00:06:54,400 --> 00:06:58,039 Speaker 1: where there is smoke, there's fire that I mean, I'm 138 00:06:58,040 --> 00:06:59,960 Speaker 1: gonna have to get used to streaming, is what I'm 139 00:07:00,000 --> 00:07:02,760 Speaker 1: trying to say. And if you do streaming, that means 140 00:07:02,800 --> 00:07:04,880 Speaker 1: you're gonna have to cut the cable with ESPN. Now, 141 00:07:04,920 --> 00:07:08,400 Speaker 1: maybe ESPN needs to go more on the streaming route 142 00:07:08,400 --> 00:07:11,120 Speaker 1: and maybe that could be the savior. Well that this 143 00:07:11,280 --> 00:07:14,160 Speaker 1: this direct revenue flow when you when you go when 144 00:07:14,160 --> 00:07:15,760 Speaker 1: you go streaming, I mean you have to you have 145 00:07:15,840 --> 00:07:19,120 Speaker 1: to be a subscriber. Um your ESPN package comes with 146 00:07:19,240 --> 00:07:21,720 Speaker 1: your your Disney package, and you cut the cord there 147 00:07:21,800 --> 00:07:25,600 Speaker 1: and you lose the ESPN. So this you know, it's 148 00:07:25,640 --> 00:07:28,720 Speaker 1: it has worked extremely well for Netflix, It's worked extremely 149 00:07:28,720 --> 00:07:33,640 Speaker 1: well for HBO plus Disney, and you know ESPN, they 150 00:07:33,640 --> 00:07:36,480 Speaker 1: know a thing or two about programming and making money. 151 00:07:36,720 --> 00:07:39,760 Speaker 1: Just a bit. Yeah, finally, let's give it up for 152 00:07:40,000 --> 00:07:43,800 Speaker 1: my man, Lebron James. His spring Hill company is sold 153 00:07:44,240 --> 00:07:49,400 Speaker 1: what it calls a significant minority stake to Redbird Capital Partners, 154 00:07:49,560 --> 00:07:54,680 Speaker 1: Fenway Sports Group, Nike, and Epic Games evaluation more than 155 00:07:54,840 --> 00:07:58,400 Speaker 1: seven hundred million dollars. Yeah, Redbird Capital has been very, 156 00:07:58,520 --> 00:08:01,080 Speaker 1: very active, so as the fen Way Sports Group. We 157 00:08:01,160 --> 00:08:03,640 Speaker 1: know Lebron James has been involved with them for a while. 158 00:08:03,680 --> 00:08:07,960 Speaker 1: And now Lebron and Maverick Carter are minority owners. They 159 00:08:07,960 --> 00:08:09,960 Speaker 1: have a small share of the Boston Red Sox and 160 00:08:10,080 --> 00:08:13,600 Speaker 1: Famiway Sports Group. You heard it here. First, the end 161 00:08:13,680 --> 00:08:18,240 Speaker 1: game with all these investments with Lebron James and Maverick Carter, 162 00:08:18,400 --> 00:08:23,160 Speaker 1: the endgame right here is to buy an NBA team. 163 00:08:23,200 --> 00:08:25,440 Speaker 1: That's what the the end game is going to be 164 00:08:25,520 --> 00:08:28,920 Speaker 1: with this story. I can see that because obviously if 165 00:08:28,960 --> 00:08:32,520 Speaker 1: Michael Jordan's can get a team, obviously Lebron James is 166 00:08:32,520 --> 00:08:35,400 Speaker 1: going to that's gonna be. Can you imagine? And when 167 00:08:35,440 --> 00:08:37,280 Speaker 1: if it comes down to that, men, those teams are 168 00:08:37,280 --> 00:08:39,600 Speaker 1: playing on the court and then you see these two 169 00:08:39,760 --> 00:08:43,120 Speaker 1: is like who's better now? Who's better now? And he 170 00:08:43,160 --> 00:08:45,000 Speaker 1: may be still in uniform and playing while he's an 171 00:08:45,000 --> 00:08:50,600 Speaker 1: oh man, very good. This is the Bloomberg Business of 172 00:08:50,640 --> 00:08:53,840 Speaker 1: Sports podcast on Michael Barr along with Mike Lench catches 173 00:08:53,960 --> 00:08:58,040 Speaker 1: here and every Monday, Wednesday and Thursday exploring the world 174 00:08:58,040 --> 00:08:59,960 Speaker 1: of money in sports. And catch me on Twitter. They 175 00:09:00,040 --> 00:09:02,480 Speaker 1: our Sports and I'm Mike Lynch. You can follow me 176 00:09:02,480 --> 00:09:04,960 Speaker 1: at Lynch e w CDV and remind us the next 177 00:09:04,960 --> 00:09:06,560 Speaker 1: time we got to tell you a story about the 178 00:09:06,559 --> 00:09:11,160 Speaker 1: car washing. Mikelinch, you're listening to The Bloomberg Business of 179 00:09:11,240 --> 00:09:13,440 Speaker 1: Sports on Bloomberg Radio around the world.