1 00:00:02,200 --> 00:00:04,800 Speaker 1: Hi, I'm Scott Secca and I'm Evan Noby will comes 2 00:00:05,000 --> 00:00:07,120 Speaker 1: on this week's show. We will explore the big money 3 00:00:07,160 --> 00:00:08,840 Speaker 1: issues in the world of sports and talk to some 4 00:00:08,880 --> 00:00:11,680 Speaker 1: of the biggest players in the industry. On this weekly podcast, 5 00:00:11,760 --> 00:00:14,280 Speaker 1: we talked to Major League Soccer Commissioner Don Garber about 6 00:00:14,320 --> 00:00:18,360 Speaker 1: the business of soccer. There is just an enormous amount 7 00:00:18,440 --> 00:00:23,280 Speaker 1: of innovation that's really happening in and around our sport 8 00:00:23,400 --> 00:00:26,560 Speaker 1: and around our league, and that's got investors excited and 9 00:00:26,960 --> 00:00:31,520 Speaker 1: cities insided and UH stadium developers excited. We will have 10 00:00:31,600 --> 00:00:33,959 Speaker 1: more of our interview with Major League Soccer Commissioner Don 11 00:00:33,960 --> 00:00:36,319 Speaker 1: Garber in a few minutes, But first, Evan, let's take 12 00:00:36,320 --> 00:00:38,839 Speaker 1: a look at the biggest stories of the week. Number 13 00:00:38,880 --> 00:00:42,520 Speaker 1: one has to be Russia and the Olympics. The IOC 14 00:00:42,760 --> 00:00:47,760 Speaker 1: says Russia as a federation cannot participate. Winners, Losers, your take. 15 00:00:48,040 --> 00:00:50,600 Speaker 1: IOC went short of doing the full thing, which is 16 00:00:50,640 --> 00:00:53,720 Speaker 1: barring Russia and all of its athletes from the games, 17 00:00:53,720 --> 00:00:56,080 Speaker 1: But this is the next closest thing. This is a 18 00:00:56,080 --> 00:01:00,240 Speaker 1: pretty unprecedented penalty for Russia, obviously stemming back to a 19 00:01:00,280 --> 00:01:05,200 Speaker 1: fairly systemic doping UH scandal. That that that were very 20 00:01:05,200 --> 00:01:08,440 Speaker 1: pervasive during the two thousand fourteen Games in Russia. UM, 21 00:01:09,080 --> 00:01:11,560 Speaker 1: I think the big question now, obviously Russia can choose 22 00:01:11,600 --> 00:01:13,680 Speaker 1: not to go, which I don't believe is going to happen. 23 00:01:14,040 --> 00:01:16,319 Speaker 1: But the big question is how many Russian athletes are 24 00:01:16,360 --> 00:01:18,560 Speaker 1: deemed by this panel to be clean and how many 25 00:01:18,560 --> 00:01:20,440 Speaker 1: of them will we see on the ground in a 26 00:01:20,440 --> 00:01:22,720 Speaker 1: couple of Like you said, it was so pervasive, how 27 00:01:22,800 --> 00:01:25,800 Speaker 1: do you now deem who was participating who was not? 28 00:01:26,240 --> 00:01:29,160 Speaker 1: But at least Putin has said I will not stop 29 00:01:29,200 --> 00:01:34,520 Speaker 1: the athletes from participating. NBC happy, IOC happy. Like I said, 30 00:01:34,520 --> 00:01:36,800 Speaker 1: this does seemed like it was a delicate balance between 31 00:01:36,840 --> 00:01:40,880 Speaker 1: having to take a tough stand and not costing yourselves 32 00:01:40,920 --> 00:01:43,440 Speaker 1: all the attention and revenue at the game. This still 33 00:01:43,520 --> 00:01:46,200 Speaker 1: hurts the Olympics as a as a property obviously. I mean, 34 00:01:46,680 --> 00:01:50,040 Speaker 1: Russia is one of the biggest countries participating in the 35 00:01:50,080 --> 00:01:53,640 Speaker 1: Winter Games there. Their athletes are very popular internationally. UM, 36 00:01:53,880 --> 00:01:55,920 Speaker 1: who do wonder how many of the events might be 37 00:01:56,280 --> 00:01:58,240 Speaker 1: not not as popular, might not be as watch, might 38 00:01:58,280 --> 00:02:01,040 Speaker 1: not be as followed. Uh, if the Russian athletes are 39 00:02:01,040 --> 00:02:04,120 Speaker 1: not there, and they'll play under athletes from Russia, but 40 00:02:04,160 --> 00:02:06,280 Speaker 1: there will be no anthem played, but people will still 41 00:02:06,280 --> 00:02:09,000 Speaker 1: tally medals and just probably be fewer athletes there. Yeah, 42 00:02:09,040 --> 00:02:11,160 Speaker 1: sure you're gonna see the American flag going, but but 43 00:02:11,200 --> 00:02:13,400 Speaker 1: for a lot of this is symbolic. You're gonna they're 44 00:02:13,400 --> 00:02:15,480 Speaker 1: still gonna be Russian athletes there, and there will be 45 00:02:15,560 --> 00:02:17,480 Speaker 1: called Russians. And one of the guys who was barred, 46 00:02:17,480 --> 00:02:20,280 Speaker 1: by the way, is the head of the World Cup committee. 47 00:02:20,320 --> 00:02:23,639 Speaker 1: So we'll see if this any cross honoring another big one. 48 00:02:23,720 --> 00:02:25,840 Speaker 1: And you and I discussed this on a daily basis. 49 00:02:26,400 --> 00:02:30,080 Speaker 1: Fox looking to sell some of its assets, including in 50 00:02:30,120 --> 00:02:32,120 Speaker 1: the part we're gonna focus on here is the Regional 51 00:02:32,160 --> 00:02:38,720 Speaker 1: Sports Networks Disney ESPN, perhaps close to a deal. They 52 00:02:38,880 --> 00:02:43,639 Speaker 1: have about half the rs n's in the country. This 53 00:02:43,680 --> 00:02:47,520 Speaker 1: would be a huge win for ESPN if they can 54 00:02:47,560 --> 00:02:51,040 Speaker 1: get this done. Absolutely, it's more consolidation for them across 55 00:02:51,080 --> 00:02:54,520 Speaker 1: their properties. I'm I can't even keep track of all 56 00:02:54,560 --> 00:02:57,160 Speaker 1: the all the merging and and the buying that's happening 57 00:02:57,160 --> 00:02:59,639 Speaker 1: in the media world right now. Um, it seems like 58 00:02:59,680 --> 00:03:02,200 Speaker 1: every day there's another mega, mega deal, and all these 59 00:03:02,240 --> 00:03:05,079 Speaker 1: things have effects for sports. It's fun to see though, 60 00:03:05,440 --> 00:03:07,840 Speaker 1: as this plays out. Who's going to be right? Obviously, 61 00:03:07,960 --> 00:03:11,079 Speaker 1: Fox is looking to shed an asset that it believes 62 00:03:11,400 --> 00:03:16,120 Speaker 1: subscriber fees or affiliate fees will be coming down, moving 63 00:03:16,240 --> 00:03:20,520 Speaker 1: up the cost of getting sports. ESPN Disney seems to 64 00:03:20,600 --> 00:03:25,160 Speaker 1: feel that having the programming will be so valuable, hyperlocal, 65 00:03:25,600 --> 00:03:27,800 Speaker 1: these are things you have to have in market that 66 00:03:27,880 --> 00:03:32,440 Speaker 1: it's still a great driver of revenue and value. Who 67 00:03:32,440 --> 00:03:34,840 Speaker 1: will be right in the long key, Yeah, We're starting 68 00:03:34,840 --> 00:03:37,200 Speaker 1: to see kind of a difference in business model between 69 00:03:37,520 --> 00:03:41,160 Speaker 1: ESPN and Fox and worth noting again, Fox Sports one, 70 00:03:41,480 --> 00:03:43,840 Speaker 1: the the network that launched a couple of years ago 71 00:03:43,880 --> 00:03:46,200 Speaker 1: with great fanfare, that was going to compete with ESPN. 72 00:03:46,360 --> 00:03:48,440 Speaker 1: That is not part of this deal. So Fox is 73 00:03:48,440 --> 00:03:52,360 Speaker 1: still holding onto that, the rights fee model, the national 74 00:03:52,480 --> 00:03:55,680 Speaker 1: broadcast that is still obviously a part of Fox's future, 75 00:03:56,360 --> 00:03:59,400 Speaker 1: the regional stuff clearly not. And the Yes Network, of 76 00:03:59,440 --> 00:04:01,400 Speaker 1: course when he presented him by the Yankees at this 77 00:04:01,440 --> 00:04:03,480 Speaker 1: point is part of a big, big steak in New York. 78 00:04:04,120 --> 00:04:08,120 Speaker 1: You just you just wonder moving forward where the pricing 79 00:04:08,200 --> 00:04:10,200 Speaker 1: is gonna settle out. Will just help with the O 80 00:04:10,360 --> 00:04:12,320 Speaker 1: T T service because some of these RS sends will 81 00:04:12,360 --> 00:04:15,160 Speaker 1: include basketball, so they get more programming. Someone's gonna be right, 82 00:04:15,440 --> 00:04:19,039 Speaker 1: Someone's gonna someone's gonna do well. Everybody won on this 83 00:04:19,160 --> 00:04:22,640 Speaker 1: Someone's gonna be right will be interesting. Speaking of winners, 84 00:04:22,920 --> 00:04:26,520 Speaker 1: and who was right well, Mark Gnis was right on 85 00:04:26,560 --> 00:04:32,640 Speaker 1: this program. Mark Annis told us Roger Goodell ain't going nowhere. 86 00:04:32,720 --> 00:04:35,520 Speaker 1: This thing is overblown, this feud with Jerry Jones. He's 87 00:04:35,520 --> 00:04:38,880 Speaker 1: gonna get his contract. It's gonna get done. Boom, It 88 00:04:38,960 --> 00:04:40,560 Speaker 1: was done, and he got his contract, and it's for 89 00:04:40,600 --> 00:04:43,360 Speaker 1: some pretty good numbers. Exactly. We talked about this a lot, 90 00:04:43,440 --> 00:04:46,880 Speaker 1: but it's clear that the public struggling of the NFL 91 00:04:47,040 --> 00:04:50,120 Speaker 1: is not necessarily exactly how a lot of owners see it. 92 00:04:50,440 --> 00:04:53,800 Speaker 1: Over his tenure, Roger Goodale has done a tremendous amount 93 00:04:53,800 --> 00:04:56,200 Speaker 1: of grow the business of the league. And even though 94 00:04:56,200 --> 00:05:00,080 Speaker 1: there are some high profile dissenters and Jerry Jones, especially 95 00:05:00,080 --> 00:05:02,200 Speaker 1: in that over the past couple of months, it's clear 96 00:05:02,279 --> 00:05:05,320 Speaker 1: that the majority of owners appreciate what Rogers doing and 97 00:05:05,360 --> 00:05:07,880 Speaker 1: want to see that continue. Yeah, there's this big carping 98 00:05:07,880 --> 00:05:11,400 Speaker 1: in the threat of lawsuit, but in the end perhaps 99 00:05:11,480 --> 00:05:14,760 Speaker 1: was posturing. It looks as if though a good portion 100 00:05:14,800 --> 00:05:17,680 Speaker 1: of the contract is incentive base now we don't know. 101 00:05:17,920 --> 00:05:20,200 Speaker 1: Just like athletes, when you say incentives, is that you 102 00:05:20,200 --> 00:05:21,839 Speaker 1: have to play one second or you have to play 103 00:05:21,880 --> 00:05:26,120 Speaker 1: eighty two games. Uh, My guests would be that a 104 00:05:26,240 --> 00:05:31,039 Speaker 1: fair amount of them are easily reachable incentives for Roger 105 00:05:31,080 --> 00:05:33,960 Speaker 1: because he probably wasn't thrilled with the idea that he 106 00:05:33,960 --> 00:05:37,760 Speaker 1: had to prove himself all over again. But if he 107 00:05:38,000 --> 00:05:41,719 Speaker 1: does fulfill all of the clauses in the contract, it 108 00:05:41,800 --> 00:05:45,320 Speaker 1: looks like he could pocket upwards of forty million dollars 109 00:05:45,360 --> 00:05:49,359 Speaker 1: per year and a league that generates about fourteen billion 110 00:05:49,400 --> 00:05:53,080 Speaker 1: dollars in annual revenue. That would hit put him in 111 00:05:53,160 --> 00:05:57,320 Speaker 1: sort of similar company, uh, in public companies in some 112 00:05:57,520 --> 00:06:00,720 Speaker 1: rarefied air. That's that is a hefty hay package. He's 113 00:06:00,720 --> 00:06:02,159 Speaker 1: getting paid a little bit more than us, is what 114 00:06:02,160 --> 00:06:04,360 Speaker 1: you're saying, a little bit more than combined, if you 115 00:06:04,440 --> 00:06:07,000 Speaker 1: if you, if you put it together, Uh, clearly like 116 00:06:07,000 --> 00:06:10,760 Speaker 1: you're saying, the owners like what Roger does. They like 117 00:06:10,880 --> 00:06:13,760 Speaker 1: that he takes the bullets for them, and this takes 118 00:06:13,800 --> 00:06:18,760 Speaker 1: him through importantly, perhaps most importantly, this takes Roger through 119 00:06:18,839 --> 00:06:21,919 Speaker 1: that time period when he will begin talks on the 120 00:06:21,960 --> 00:06:26,520 Speaker 1: new media contract, the new big contracts that will determine 121 00:06:26,560 --> 00:06:28,839 Speaker 1: whether he's successful or not. Also, we're noting that you 122 00:06:28,839 --> 00:06:31,200 Speaker 1: mentioned the incentive based. That seems like kind of the 123 00:06:31,200 --> 00:06:34,800 Speaker 1: happy medium between what Jerry Jones was harping about and 124 00:06:34,800 --> 00:06:37,600 Speaker 1: and the result in that you let Jerry Jones at 125 00:06:37,640 --> 00:06:40,440 Speaker 1: least claim that something about the contract was changed, that 126 00:06:40,720 --> 00:06:43,040 Speaker 1: it's more incentive based. You gotta make Roger earn itt. 127 00:06:43,720 --> 00:06:46,159 Speaker 1: But but in in the final way, this is just 128 00:06:46,279 --> 00:06:48,680 Speaker 1: Roger getting the extension that all the owners, including Jones, 129 00:06:48,960 --> 00:06:52,680 Speaker 1: signed off on months ago. Al Right, from football to football, 130 00:06:54,040 --> 00:06:57,080 Speaker 1: he became the commissioner of Major League Soccer. So far 131 00:06:57,520 --> 00:07:00,600 Speaker 1: he has expanded to twenty three teams and MLS has 132 00:07:00,720 --> 00:07:03,559 Speaker 1: twenty new owners in that time. He's saying broadcast deals 133 00:07:03,600 --> 00:07:07,640 Speaker 1: with ESPN, Fox, Univision. Don Garber, thanks for joining us. 134 00:07:08,000 --> 00:07:11,560 Speaker 1: Let's start with the process that you are undergoing right now, 135 00:07:11,600 --> 00:07:14,480 Speaker 1: that is expansion. Every time I look up, seems that 136 00:07:14,520 --> 00:07:17,800 Speaker 1: if somebody wants to join MLS, what are the major 137 00:07:17,880 --> 00:07:21,840 Speaker 1: factors that you attribute the attractiveness for all of this expansion. Well, 138 00:07:21,840 --> 00:07:25,800 Speaker 1: you know, MS is Uh, it's always been a growth story. Uh, 139 00:07:26,000 --> 00:07:29,440 Speaker 1: And it has always been positioned by us and I 140 00:07:29,480 --> 00:07:32,040 Speaker 1: think by many other people in the sports industry as 141 00:07:32,080 --> 00:07:34,440 Speaker 1: a league on the rise, you know, there are very 142 00:07:34,480 --> 00:07:38,600 Speaker 1: few opportunities in the sports business to get in on 143 00:07:38,640 --> 00:07:42,400 Speaker 1: the ground floor and innovate and be part of kind 144 00:07:42,400 --> 00:07:45,880 Speaker 1: of a movement which soccer in our country has really become. 145 00:07:46,560 --> 00:07:51,040 Speaker 1: And of late, Uh, there is just an enormous amount 146 00:07:51,120 --> 00:07:56,000 Speaker 1: of innovation that's really happening in and around our sport 147 00:07:56,120 --> 00:07:59,280 Speaker 1: and around our league and that's got investors excited and 148 00:07:59,640 --> 00:08:04,640 Speaker 1: city is insided and UH, stadium developers excited. Then leading 149 00:08:04,680 --> 00:08:09,520 Speaker 1: to the expansion process that is going on this week. 150 00:08:09,720 --> 00:08:12,800 Speaker 1: You know, we started with twelve teams when this league 151 00:08:12,920 --> 00:08:15,720 Speaker 1: was announced, went down to ten teams when we went 152 00:08:15,760 --> 00:08:18,360 Speaker 1: through some you know, real soul searching as to what 153 00:08:18,440 --> 00:08:20,960 Speaker 1: the future of MLS will be. And then last year 154 00:08:21,000 --> 00:08:24,320 Speaker 1: we announced an expansion process for the next four teams 155 00:08:24,320 --> 00:08:26,960 Speaker 1: in twelve cities stepped up to the plate, and four 156 00:08:27,000 --> 00:08:29,360 Speaker 1: of those cities will come in and bid up for 157 00:08:29,440 --> 00:08:34,880 Speaker 1: the next two teams, Teams five and twenty six. Couldn't 158 00:08:34,920 --> 00:08:37,360 Speaker 1: be a more exciting and fun time at MLS. This 159 00:08:37,400 --> 00:08:39,000 Speaker 1: is going to be a little wonkish, but I do 160 00:08:39,120 --> 00:08:42,120 Speaker 1: find it interesting and it is an important milestone. The 161 00:08:42,320 --> 00:08:45,439 Speaker 1: l a f C stadium will be financed much in 162 00:08:45,480 --> 00:08:48,160 Speaker 1: the traditional way of let's say an NFL stadium would 163 00:08:48,160 --> 00:08:51,360 Speaker 1: be in that revenue from the stadiums will repay the bonds. 164 00:08:51,400 --> 00:08:53,600 Speaker 1: It hasn't always been the case owners had to put 165 00:08:53,679 --> 00:08:56,800 Speaker 1: up some collateral. I mean, these are significant milestones, even 166 00:08:56,840 --> 00:08:58,319 Speaker 1: if it's not the kind of thing the public might 167 00:08:58,320 --> 00:09:02,480 Speaker 1: know about. Right. Yeah, in financing and and and the 168 00:09:02,520 --> 00:09:05,240 Speaker 1: economics of sport. While there's a cottage industry and it, 169 00:09:05,679 --> 00:09:07,640 Speaker 1: you know, really isn't what turns fans on. You know, 170 00:09:07,679 --> 00:09:08,760 Speaker 1: they want to go to a game, they want to 171 00:09:08,760 --> 00:09:11,360 Speaker 1: see good players, have you know, an exciting time, drink 172 00:09:11,400 --> 00:09:13,400 Speaker 1: a beer, have a hot dog or a burger, and 173 00:09:13,760 --> 00:09:16,600 Speaker 1: you know, hopefully you know, cheer their team to victory. 174 00:09:16,640 --> 00:09:21,839 Speaker 1: But you know, ultimately, in our business, there's an enormous uh, 175 00:09:22,040 --> 00:09:25,280 Speaker 1: you know, industry that is in and around making sure 176 00:09:25,440 --> 00:09:29,040 Speaker 1: that fans can can get what they want. That starts 177 00:09:29,040 --> 00:09:33,679 Speaker 1: with great facilities. Those facilities in many cases requires some 178 00:09:33,800 --> 00:09:37,360 Speaker 1: level of public support. Today their public private partnerships. In 179 00:09:37,400 --> 00:09:40,200 Speaker 1: the past, we had to beg, borrow and steal just 180 00:09:40,280 --> 00:09:43,840 Speaker 1: to get a landlord to agree to do a long 181 00:09:43,960 --> 00:09:46,840 Speaker 1: term lease for our league headquarters here in Midtown Manhattan 182 00:09:47,400 --> 00:09:50,200 Speaker 1: and today JP, Morgan Chase and Bank of America just 183 00:09:50,840 --> 00:09:54,040 Speaker 1: provided a league with over four million dollar credit facility. 184 00:09:54,440 --> 00:09:57,680 Speaker 1: Goldman Sachs has been very, very engaged with our clubs 185 00:09:57,720 --> 00:10:00,680 Speaker 1: and providing debt on their stadiums. And those are not 186 00:10:00,800 --> 00:10:04,520 Speaker 1: privately back, meaning they're not guaranteed by the owner, they're 187 00:10:04,559 --> 00:10:07,920 Speaker 1: guaranteed by the revenues that UH those owners are able to. 188 00:10:08,040 --> 00:10:10,520 Speaker 1: Those teams were able to generate in sponsorship and other 189 00:10:10,880 --> 00:10:14,240 Speaker 1: contractually obligated income, and there was a time we had 190 00:10:14,320 --> 00:10:17,320 Speaker 1: none of that income. And today, UH it is become 191 00:10:17,400 --> 00:10:20,360 Speaker 1: so robust that we're able to go out like every 192 00:10:20,360 --> 00:10:23,720 Speaker 1: other business around the world and UH and finance some 193 00:10:23,800 --> 00:10:27,719 Speaker 1: of our future opportunity. The four candidates for expansion right 194 00:10:27,720 --> 00:10:33,160 Speaker 1: now obviously Cincinnati, Detroit, Nashville, Sacramento. You've been commissioner. How 195 00:10:33,200 --> 00:10:36,839 Speaker 1: different are the conversations now that you have with potential 196 00:10:37,280 --> 00:10:39,880 Speaker 1: expansion owners versus the ones that you were having back 197 00:10:39,920 --> 00:10:42,520 Speaker 1: around the turn of the millennium. You know, it couldn't 198 00:10:42,559 --> 00:10:44,839 Speaker 1: be more different. You know, there there was a time 199 00:10:44,880 --> 00:10:47,360 Speaker 1: and every now and again we meet with an investor 200 00:10:48,120 --> 00:10:50,320 Speaker 1: UH and I spoke to one on the phone just 201 00:10:50,400 --> 00:10:52,480 Speaker 1: the other Day, who was an original investor in the 202 00:10:52,559 --> 00:10:55,400 Speaker 1: l A Galaxy. Before Phil and Shouts owned the team, 203 00:10:55,480 --> 00:10:58,400 Speaker 1: it was owned by an ex Drexel guy named Mark 204 00:10:58,480 --> 00:11:01,439 Speaker 1: Rappaport who owned it for a few years and sold 205 00:11:01,480 --> 00:11:04,000 Speaker 1: it for twenty six million dollars to Fill and Choots 206 00:11:04,000 --> 00:11:05,920 Speaker 1: and said, I want to be the only person to 207 00:11:05,960 --> 00:11:09,080 Speaker 1: ever make money in the soccer business in America. And 208 00:11:09,160 --> 00:11:11,280 Speaker 1: that guy said, boy, that was a mistake for me 209 00:11:11,400 --> 00:11:14,760 Speaker 1: to agree to sell on my interest, because today I 210 00:11:14,760 --> 00:11:17,560 Speaker 1: could own a team that could be worth anywhere from 211 00:11:17,960 --> 00:11:21,240 Speaker 1: three hundred to four hundred million dollars. Expansion in the 212 00:11:21,240 --> 00:11:23,400 Speaker 1: original round was only five million dollars. That was the 213 00:11:23,400 --> 00:11:27,480 Speaker 1: original investment that Phil and Choots, Robert Kraft and others made. 214 00:11:27,559 --> 00:11:30,560 Speaker 1: Lamar Hunt Uh. And then we went through contraction and 215 00:11:30,600 --> 00:11:32,720 Speaker 1: we could not give a team away. We had losses 216 00:11:32,800 --> 00:11:35,920 Speaker 1: and it couldn't get people to take these teams over 217 00:11:36,520 --> 00:11:40,400 Speaker 1: UH and just manage those losses. Now you have teams 218 00:11:40,400 --> 00:11:43,080 Speaker 1: lining up in a hundred and fifty million dollars to 219 00:11:43,160 --> 00:11:46,080 Speaker 1: pay to be a an investor in the future of 220 00:11:46,120 --> 00:11:48,760 Speaker 1: what MLS could be, what it could represent to their community, 221 00:11:48,760 --> 00:11:53,280 Speaker 1: what can represent to them as investors. The process most 222 00:11:53,320 --> 00:11:59,240 Speaker 1: importantly has gotten from begging to actually entertaining alternatives. In Nashville, 223 00:11:59,240 --> 00:12:03,480 Speaker 1: for example, our group when we were down there visiting 224 00:12:03,480 --> 00:12:06,320 Speaker 1: the city, we were hosted by the governor of the 225 00:12:06,400 --> 00:12:10,559 Speaker 1: state and by uh the two state senators that that 226 00:12:10,640 --> 00:12:14,719 Speaker 1: we're leading the effort with their political support, along with 227 00:12:14,720 --> 00:12:17,760 Speaker 1: one of the leading you know families, the Ingram family 228 00:12:18,320 --> 00:12:23,320 Speaker 1: UH and that exists in Cincinnati, exists in Sacramento. The 229 00:12:23,360 --> 00:12:26,000 Speaker 1: four cities that are coming in, three of the mayors 230 00:12:26,280 --> 00:12:29,000 Speaker 1: from those cities will be in as part of those 231 00:12:29,480 --> 00:12:32,120 Speaker 1: expansion bids. It's it's a different time, but that doesn't 232 00:12:32,160 --> 00:12:35,360 Speaker 1: mean it's uh you know where where you've cracked the code. 233 00:12:35,880 --> 00:12:37,400 Speaker 1: We still had a lot of work to do and 234 00:12:37,440 --> 00:12:40,480 Speaker 1: it's still an evolving business and one that requires investment. 235 00:12:40,840 --> 00:12:43,800 Speaker 1: We are chatting with MLS Commissioner Don garberand Don you 236 00:12:43,960 --> 00:12:46,440 Speaker 1: talked about a little bit about valuation, and of course 237 00:12:46,440 --> 00:12:48,280 Speaker 1: we all know something's worth what somebody's willing to pay. 238 00:12:48,280 --> 00:12:50,000 Speaker 1: So if everybody is willing to punty up a hundred 239 00:12:50,040 --> 00:12:52,320 Speaker 1: and fifty for expansion or three d million for a franchise, 240 00:12:52,720 --> 00:12:55,040 Speaker 1: then that's what it worth. Looks like average team now 241 00:12:55,040 --> 00:12:57,240 Speaker 1: worth about two D and twenty three million. But I 242 00:12:57,280 --> 00:12:59,960 Speaker 1: will say I do talk to sports bankers who said, 243 00:13:00,160 --> 00:13:01,640 Speaker 1: and they say this, by the way, by and large, 244 00:13:01,640 --> 00:13:04,600 Speaker 1: whether it's the Marlin sale or some other friends, other leagues, 245 00:13:04,600 --> 00:13:07,640 Speaker 1: this isn't just MLS specific. They don't quite see how 246 00:13:07,720 --> 00:13:12,520 Speaker 1: the revenue justifies the valuation. Is this a promise of 247 00:13:12,600 --> 00:13:15,760 Speaker 1: tomorrow people see good things coming or do the current 248 00:13:15,840 --> 00:13:19,640 Speaker 1: underpinnings support the numbers we're hearing about. Well, you know, 249 00:13:19,640 --> 00:13:21,960 Speaker 1: it's a very good question. I think sports is no 250 00:13:22,040 --> 00:13:24,880 Speaker 1: different than any other growth industry. You know, if you're 251 00:13:24,920 --> 00:13:27,680 Speaker 1: going to invest in a UM, in a piece of 252 00:13:27,720 --> 00:13:30,240 Speaker 1: real estate, you're going to invest not what it's worth today, 253 00:13:30,320 --> 00:13:32,760 Speaker 1: You're gonna invest what you think it's gonna be worth tomorrow. 254 00:13:34,040 --> 00:13:35,679 Speaker 1: I met with a guy that was one of the 255 00:13:35,720 --> 00:13:39,920 Speaker 1: landowners for the DC United project, and while he's not 256 00:13:40,040 --> 00:13:44,640 Speaker 1: a investor in MLS, he's an investor in another sports property, uh. 257 00:13:44,679 --> 00:13:46,640 Speaker 1: And he said he bought that real estate many many 258 00:13:46,720 --> 00:13:49,800 Speaker 1: years ago and thought that it would be generational, you know, 259 00:13:49,880 --> 00:13:51,319 Speaker 1: his kids would take it over, and he thought it 260 00:13:51,320 --> 00:13:55,520 Speaker 1: would take that long uh for Buzzer Point to be developed. 261 00:13:55,840 --> 00:13:58,360 Speaker 1: So I think in the professional sports business there is 262 00:13:58,400 --> 00:14:01,880 Speaker 1: a a fact or of what is the multiple own 263 00:14:01,960 --> 00:14:04,800 Speaker 1: revenues and then what do they think the future opportunity 264 00:14:04,800 --> 00:14:07,120 Speaker 1: of that asset could be over time. In case of 265 00:14:07,160 --> 00:14:09,040 Speaker 1: Major League Soccer where most of the teams are not 266 00:14:09,120 --> 00:14:12,760 Speaker 1: making money, that value has to be including the ongoing 267 00:14:12,840 --> 00:14:15,520 Speaker 1: operating investment that they're going to make if the teams 268 00:14:15,520 --> 00:14:18,040 Speaker 1: are not cash flowing. And as long as we are 269 00:14:18,160 --> 00:14:21,200 Speaker 1: in an in an industry where teams are selling for 270 00:14:21,360 --> 00:14:24,160 Speaker 1: more than owners are paying for them and the investments 271 00:14:24,160 --> 00:14:27,359 Speaker 1: that they're making, either in a stadium or an ongoing operations, 272 00:14:27,400 --> 00:14:30,920 Speaker 1: than the business continues to go forward. But in order 273 00:14:30,960 --> 00:14:36,400 Speaker 1: to make it viable UH to UH to all investors 274 00:14:36,480 --> 00:14:39,200 Speaker 1: as opposed to ones that have a very long term horizon, 275 00:14:39,640 --> 00:14:42,320 Speaker 1: you've got to continue to grow revenues and media and 276 00:14:42,400 --> 00:14:45,880 Speaker 1: sponsorship and and and stadium revenues. And that's something that 277 00:14:46,000 --> 00:14:49,640 Speaker 1: MLS and its teams spent most of their time focusing on. 278 00:14:49,960 --> 00:14:52,280 Speaker 1: Don you have a great PR team over there at 279 00:14:52,320 --> 00:14:55,320 Speaker 1: the league. They send over all sorts of talking points, attendance, 280 00:14:55,360 --> 00:14:58,800 Speaker 1: it's up television, up social, up to new clubs, new 281 00:14:58,880 --> 00:15:02,240 Speaker 1: stadium sponsor is where is the revenue growth going to 282 00:15:02,280 --> 00:15:04,600 Speaker 1: come from? With all that? I mean, the major part 283 00:15:04,680 --> 00:15:08,440 Speaker 1: we know is usually media, usually gate sponsorships, those are 284 00:15:08,520 --> 00:15:11,280 Speaker 1: the biggest. But if I'm an investor, where can I 285 00:15:11,320 --> 00:15:14,440 Speaker 1: expect the biggest bump to come from. Well, you know, 286 00:15:14,480 --> 00:15:18,560 Speaker 1: when you have long term media deals. Our deals domestically 287 00:15:18,600 --> 00:15:21,880 Speaker 1: with ESPN, Fox and Univision don't expire until two thousand 288 00:15:21,960 --> 00:15:26,160 Speaker 1: twenty two, so our media opportunities other than local media 289 00:15:26,760 --> 00:15:30,000 Speaker 1: are limited leading up to the expiration of our current agreements. 290 00:15:30,000 --> 00:15:32,200 Speaker 1: And they've been good partnerships with those three partners. And 291 00:15:32,240 --> 00:15:34,520 Speaker 1: those are huge deals, by the way, I mean, in 292 00:15:34,600 --> 00:15:37,280 Speaker 1: the landscape of sport, these are not huge deals that 293 00:15:37,320 --> 00:15:40,600 Speaker 1: we're talking about. You would surely expect some sort of 294 00:15:40,640 --> 00:15:42,360 Speaker 1: I don't want to peg it two x, three x 295 00:15:42,400 --> 00:15:45,280 Speaker 1: forts whatever it might be. I'm certain that you and 296 00:15:45,320 --> 00:15:49,720 Speaker 1: your owners would say our product is worth more now. Well, absolutely, 297 00:15:49,800 --> 00:15:52,400 Speaker 1: I don't think any right told it would would think otherwise. 298 00:15:52,480 --> 00:15:54,440 Speaker 1: But you know, you've got to deliver that value. You've 299 00:15:54,440 --> 00:15:58,000 Speaker 1: got to continue to grow your audience. Are ore. ESPN 300 00:15:58,080 --> 00:16:01,800 Speaker 1: just announced that their playoff ratings were up almost year 301 00:16:01,840 --> 00:16:04,560 Speaker 1: on year. That's a good story. Sports ratings are not 302 00:16:04,640 --> 00:16:07,680 Speaker 1: growing double digits. Uh in many other leagues, they are 303 00:16:07,720 --> 00:16:10,080 Speaker 1: growing that will being of a very small much smaller 304 00:16:10,120 --> 00:16:14,600 Speaker 1: based in Major League Soccer growth and increased audience, and 305 00:16:14,640 --> 00:16:16,680 Speaker 1: the value of that audience in out case of very 306 00:16:16,680 --> 00:16:20,200 Speaker 1: young and diverse audience has value to media partners, whether 307 00:16:20,240 --> 00:16:22,880 Speaker 1: they're the traditional media partners or than the new over 308 00:16:22,920 --> 00:16:25,240 Speaker 1: the top media partners. And so you can imagine we're 309 00:16:25,240 --> 00:16:27,800 Speaker 1: spending our time very focused on that. But to answer 310 00:16:27,800 --> 00:16:31,120 Speaker 1: your original question, where is that revenue coming from. It's 311 00:16:31,160 --> 00:16:35,000 Speaker 1: coming in a disproportionate level in MLS from attendance and 312 00:16:35,080 --> 00:16:39,520 Speaker 1: sponsorship versus media and other leagues. It's more proportionate to 313 00:16:39,600 --> 00:16:42,760 Speaker 1: media and then either sponsorship and intendance or intendance of 314 00:16:42,800 --> 00:16:46,120 Speaker 1: sponsorship depending on what the league is. And that's just 315 00:16:46,240 --> 00:16:48,720 Speaker 1: part of the evolution of our league. Where are we 316 00:16:48,800 --> 00:16:51,280 Speaker 1: in our lifespan? You know, you look at you speak 317 00:16:51,280 --> 00:16:53,960 Speaker 1: to an NBA or an NHL owner ten or fifteen 318 00:16:54,000 --> 00:16:56,520 Speaker 1: years ago and ask them whether or not they were 319 00:16:56,560 --> 00:16:59,880 Speaker 1: operating at a level of profitability that they are today. 320 00:17:00,000 --> 00:17:01,880 Speaker 1: The answer, more than likely in most cases was no, 321 00:17:02,560 --> 00:17:04,680 Speaker 1: until they were able to get to the tipping point 322 00:17:04,760 --> 00:17:10,040 Speaker 1: where their media revenues just dramatically increased because of all 323 00:17:10,080 --> 00:17:13,840 Speaker 1: sorts of disruption. That's happening in the media marketplace. And 324 00:17:13,880 --> 00:17:16,680 Speaker 1: then many, if not most of those teams are not profitable, 325 00:17:17,119 --> 00:17:19,240 Speaker 1: and that is the way our industry operates. That's what 326 00:17:19,359 --> 00:17:24,200 Speaker 1: investors get their uh their self prepared for. And then 327 00:17:24,320 --> 00:17:26,280 Speaker 1: ultimately you've got to look at this as a long 328 00:17:26,400 --> 00:17:28,480 Speaker 1: term business. You know, I think if you wanted to 329 00:17:28,520 --> 00:17:30,240 Speaker 1: put your money in the stock market or put it 330 00:17:30,280 --> 00:17:34,600 Speaker 1: into some other you know, faster return, albeit possibly probably 331 00:17:34,680 --> 00:17:38,520 Speaker 1: more risky than owning a sports team, is not the 332 00:17:38,880 --> 00:17:41,000 Speaker 1: avenue for you. But I will just then, know it's 333 00:17:41,000 --> 00:17:43,320 Speaker 1: a long answer, but I'd say something else. You know, 334 00:17:43,440 --> 00:17:45,440 Speaker 1: our guys are not just in it for the quick 335 00:17:45,480 --> 00:17:47,879 Speaker 1: return on their investment. You know, they're in it for 336 00:17:47,920 --> 00:17:50,320 Speaker 1: what they can do in their community, to fulfill in 337 00:17:50,320 --> 00:17:52,960 Speaker 1: many cases of passion that they might have for our 338 00:17:53,080 --> 00:17:55,919 Speaker 1: sports soccer, to try to be able to do something 339 00:17:56,000 --> 00:18:00,800 Speaker 1: that can provide you know, their contribution to creating this 340 00:18:00,840 --> 00:18:04,000 Speaker 1: thing we call the Soccer Nation, trying to make soccer 341 00:18:04,160 --> 00:18:06,720 Speaker 1: and the sport of soccer, men's and women's more popular 342 00:18:07,200 --> 00:18:11,399 Speaker 1: and ultimately more important in our society. We're speaking with 343 00:18:11,520 --> 00:18:15,320 Speaker 1: MLS Commissioner Don garber Don. Is there an advantage for 344 00:18:15,320 --> 00:18:18,520 Speaker 1: for MLS fans that your business model right now is 345 00:18:18,520 --> 00:18:22,360 Speaker 1: a little more reliant on attendance and and in person 346 00:18:22,800 --> 00:18:25,280 Speaker 1: money spent. I mean, we've seen a lot of sports properties. 347 00:18:25,280 --> 00:18:28,040 Speaker 1: College football teams will play on Tuesday night even though 348 00:18:28,080 --> 00:18:30,600 Speaker 1: nobody shows up, because that's when ESPN wants them to play. 349 00:18:30,880 --> 00:18:33,680 Speaker 1: There are tons of concessions across sports right now being 350 00:18:33,720 --> 00:18:39,560 Speaker 1: made for TV against in person. A lot of your franchises, Atlanta, Seattle, 351 00:18:39,600 --> 00:18:42,600 Speaker 1: Portland are kind of well known for their in stadium 352 00:18:43,359 --> 00:18:45,639 Speaker 1: the atmosphere. There is there an advantage to kind of 353 00:18:45,680 --> 00:18:48,560 Speaker 1: not having the same ratio of revenue that that maybe 354 00:18:48,600 --> 00:18:50,879 Speaker 1: the NFL has well, that that could be a new 355 00:18:50,920 --> 00:18:53,840 Speaker 1: speaking point for me. Tell me you don't want the 356 00:18:53,880 --> 00:18:56,080 Speaker 1: NFL's media revenue. Don that That's what I want to hear. 357 00:18:56,640 --> 00:18:59,520 Speaker 1: You know, I think it's a great question and one 358 00:18:59,560 --> 00:19:03,320 Speaker 1: that I thirty three years in our business, spend time 359 00:19:03,400 --> 00:19:06,240 Speaker 1: thinking about. But you know, I will say, you know, 360 00:19:06,359 --> 00:19:09,000 Speaker 1: we're beginning to face the same issues. You know, we 361 00:19:09,000 --> 00:19:12,560 Speaker 1: we moved our playoffs from the weekends to week nights 362 00:19:12,600 --> 00:19:16,199 Speaker 1: to not compete with college football in the NFL. You know, 363 00:19:16,320 --> 00:19:19,720 Speaker 1: during the months of November and early December, and uh, 364 00:19:19,800 --> 00:19:23,240 Speaker 1: and our television ratings grew dramatically and thankfully we had 365 00:19:23,320 --> 00:19:26,360 Speaker 1: you know, sell out of twenty seven thousand in Toronto 366 00:19:26,600 --> 00:19:30,200 Speaker 1: in Seattle. Uh So, you know, great gates, but it's 367 00:19:30,200 --> 00:19:32,800 Speaker 1: certainly not as convenient for fans than doing it on 368 00:19:32,800 --> 00:19:35,560 Speaker 1: a Saturday night or a Saturday afternoon. And this is 369 00:19:35,640 --> 00:19:38,520 Speaker 1: one of the challenges that our industry needs to uh 370 00:19:38,720 --> 00:19:41,800 Speaker 1: in tease amount, you have so many different constituents. You're 371 00:19:41,800 --> 00:19:47,159 Speaker 1: in stadium experience, your media driven opportunity for revenue and 372 00:19:47,200 --> 00:19:51,720 Speaker 1: also for broadening your fan base and our business. Obviously 373 00:19:51,760 --> 00:19:54,160 Speaker 1: there's an international component. When do we put our games 374 00:19:54,160 --> 00:19:57,000 Speaker 1: on so that it could be highly rated in Sky 375 00:19:57,280 --> 00:20:01,000 Speaker 1: in London and the UK, or Eurosport throughout the continent, 376 00:20:01,160 --> 00:20:05,440 Speaker 1: or in South America and Brazil, or in Mexico. Uh So, 377 00:20:05,480 --> 00:20:08,159 Speaker 1: there's so many different things that go into it. I 378 00:20:08,200 --> 00:20:10,879 Speaker 1: know fans shouldn't have to think about that, and frankly, 379 00:20:10,840 --> 00:20:13,959 Speaker 1: in many cases they object to those decisions. But it's 380 00:20:14,040 --> 00:20:16,360 Speaker 1: part of the dynamic that you've got to take all 381 00:20:16,400 --> 00:20:19,320 Speaker 1: these inputs, put it into the system and come out 382 00:20:19,359 --> 00:20:21,960 Speaker 1: with the right output, which is driving as much of 383 00:20:22,080 --> 00:20:25,879 Speaker 1: value as you can not just financially, what value to 384 00:20:25,920 --> 00:20:30,040 Speaker 1: the fan who is so important in so integral to 385 00:20:30,320 --> 00:20:34,000 Speaker 1: having a sport and sports lead be successful. Don Probably 386 00:20:34,040 --> 00:20:37,119 Speaker 1: the biggest US soccer story of the year, unfortunately, was 387 00:20:37,160 --> 00:20:39,679 Speaker 1: the U S national team's inability to qualify for the 388 00:20:39,680 --> 00:20:42,560 Speaker 1: World Cup. How much does that affect you guys in 389 00:20:42,560 --> 00:20:44,720 Speaker 1: the next couple of years, Well, you know the short 390 00:20:44,800 --> 00:20:47,520 Speaker 1: term effects. It affects us in in so many ways. 391 00:20:47,520 --> 00:20:51,159 Speaker 1: It starts emotionally and personally. You know, we're fans. You 392 00:20:51,160 --> 00:20:52,879 Speaker 1: know we are here at the league office. You're not 393 00:20:52,880 --> 00:20:54,440 Speaker 1: gonna root for a team, but you're certainly going to 394 00:20:54,520 --> 00:20:57,560 Speaker 1: root for the US or Canada when they're participating in 395 00:20:57,600 --> 00:21:02,439 Speaker 1: international play. UH. And when our national team, which has 396 00:21:02,480 --> 00:21:05,920 Speaker 1: been qualifying almost at an unprecedented rate, only five or 397 00:21:05,920 --> 00:21:10,320 Speaker 1: six other countries that have been as consistent as we have, UH, 398 00:21:10,359 --> 00:21:14,520 Speaker 1: it's a setback, you know it. It hasn't uh an 399 00:21:14,600 --> 00:21:18,720 Speaker 1: impact on the UH the opportunity to take the US 400 00:21:18,800 --> 00:21:21,359 Speaker 1: participation on the men's time in the World Cup and 401 00:21:21,440 --> 00:21:25,480 Speaker 1: just own the moment during three weeks in the summer. Uh. 402 00:21:25,520 --> 00:21:28,159 Speaker 1: You know, it's not a birthright to qualify for the 403 00:21:28,160 --> 00:21:29,960 Speaker 1: World Cup. And I think as we mature as a 404 00:21:30,000 --> 00:21:34,400 Speaker 1: soccer nation, we've learned that you have countries like Italy 405 00:21:34,440 --> 00:21:38,280 Speaker 1: and Holland and Chili Italy World Champion, Holland semifinalist, Chili 406 00:21:38,320 --> 00:21:42,200 Speaker 1: Cope American Champion that didn't qualify this year, and they, 407 00:21:42,320 --> 00:21:45,080 Speaker 1: like the United States, have to ensure that they take 408 00:21:45,119 --> 00:21:47,200 Speaker 1: a step back and see that they've got the right 409 00:21:47,640 --> 00:21:50,320 Speaker 1: structure in place with their youth programs and with their 410 00:21:50,320 --> 00:21:53,479 Speaker 1: professional leagues and with their national governing bodies in this 411 00:21:53,520 --> 00:21:55,720 Speaker 1: case for US US Soccer, to be sure it never 412 00:21:55,720 --> 00:21:59,080 Speaker 1: happens again. And you certainly attract millennials, which you know 413 00:21:59,119 --> 00:22:02,440 Speaker 1: all the advertisers want, and maybe the new media coverts. 414 00:22:02,480 --> 00:22:06,359 Speaker 1: Tell me about your future with Facebook, Twitter, Google, whoever 415 00:22:06,400 --> 00:22:08,760 Speaker 1: is going to be involved in broadcasting sports that's not 416 00:22:08,800 --> 00:22:12,400 Speaker 1: traditional certainly, I know Facebook as soccer is the most 417 00:22:12,400 --> 00:22:15,920 Speaker 1: popular sport on facebooks platform. Well, what do they do 418 00:22:15,960 --> 00:22:18,080 Speaker 1: for you? What do you do for them? You know, 419 00:22:18,119 --> 00:22:20,840 Speaker 1: it starts with before you get to broadcasting, and again 420 00:22:20,840 --> 00:22:23,359 Speaker 1: it's a great question, and spending an enormous amount of 421 00:22:23,359 --> 00:22:25,879 Speaker 1: our time on and have full time people focusing in 422 00:22:25,920 --> 00:22:28,840 Speaker 1: on it. You know, their first social media channels and 423 00:22:28,880 --> 00:22:31,399 Speaker 1: marketing partners for us and have been for many many years. 424 00:22:31,880 --> 00:22:34,600 Speaker 1: You know, I, though I don't enjoy it, have to 425 00:22:34,640 --> 00:22:38,119 Speaker 1: be engaged on Twitter and and and service. You know, 426 00:22:38,400 --> 00:22:41,639 Speaker 1: hundreds thousand, hundred fifty thousand followers the league, our clubs 427 00:22:41,640 --> 00:22:44,240 Speaker 1: are players need to be engaged in social media, no 428 00:22:44,320 --> 00:22:46,920 Speaker 1: different than anybody else in the in the um, in 429 00:22:47,040 --> 00:22:49,959 Speaker 1: the in this fully connected digital world that we live in. 430 00:22:50,560 --> 00:22:52,840 Speaker 1: Facebook's had a partnership with us for many years in 431 00:22:52,880 --> 00:22:57,920 Speaker 1: a wide variety of different content, marketing and promotional oriented avenues. 432 00:22:57,960 --> 00:23:02,680 Speaker 1: In this past year, we did a streaming UH package 433 00:23:02,840 --> 00:23:07,359 Speaker 1: on the Univision English language Facebook page UH and and 434 00:23:07,400 --> 00:23:10,160 Speaker 1: we had a Game of the Week, the Univision Spanish 435 00:23:10,200 --> 00:23:12,640 Speaker 1: game was on Facebook in English. It was very unique 436 00:23:12,960 --> 00:23:15,159 Speaker 1: and we hope to find the ways to continue that 437 00:23:15,600 --> 00:23:19,720 Speaker 1: going forward. As you can imagine, it is laser focus 438 00:23:19,880 --> 00:23:23,639 Speaker 1: for our media folks and our business ventures folks to 439 00:23:23,800 --> 00:23:28,479 Speaker 1: ensure that we are not just writing the opportunity with 440 00:23:28,600 --> 00:23:32,159 Speaker 1: over the top, but driving it to an audience that 441 00:23:33,160 --> 00:23:36,600 Speaker 1: is very, very, very connected digitally. Is it possible in 442 00:23:36,680 --> 00:23:39,320 Speaker 1: two when your deal is up, and by the way, 443 00:23:39,680 --> 00:23:44,280 Speaker 1: most of the major leagues, the NFL, NBA, those were 444 00:23:44,320 --> 00:23:46,679 Speaker 1: long term deals that expire about the same time. But 445 00:23:46,760 --> 00:23:49,840 Speaker 1: when those deals are up. Is there any way that 446 00:23:50,040 --> 00:23:52,720 Speaker 1: the so called digitals or the newbies won't be part 447 00:23:53,200 --> 00:23:56,280 Speaker 1: of the bidding looking for exclusive content, not just happy 448 00:23:56,320 --> 00:23:58,760 Speaker 1: to have a game here there, but we're talking cutting 449 00:23:58,840 --> 00:24:02,000 Speaker 1: checks and billions of dollars to be full fledge exclusive 450 00:24:02,080 --> 00:24:04,400 Speaker 1: rights holders. Well, again, I don't know what those rights 451 00:24:04,440 --> 00:24:08,600 Speaker 1: deals will look like, and UH, I can assure you 452 00:24:08,720 --> 00:24:14,080 Speaker 1: that way before two thousand twenty two, UH, the major 453 00:24:14,160 --> 00:24:19,040 Speaker 1: players in the digital media content space or digital content 454 00:24:19,080 --> 00:24:23,359 Speaker 1: space will be engaging in professional sports on Facebook or 455 00:24:24,800 --> 00:24:30,040 Speaker 1: Facebook made a bid for I believe it was the 456 00:24:30,080 --> 00:24:33,800 Speaker 1: Cricket Indian the Indian Cricket League, and I heard it 457 00:24:33,840 --> 00:24:37,159 Speaker 1: was several hundred million dollars. Twitter, as you know, has 458 00:24:37,200 --> 00:24:40,439 Speaker 1: got a relationship with the National Football League. So I 459 00:24:40,480 --> 00:24:44,640 Speaker 1: think it is in years or in the next year 460 00:24:44,720 --> 00:24:47,400 Speaker 1: or two where you're going to see somebody get into 461 00:24:47,400 --> 00:24:49,840 Speaker 1: this space in a big way. I'm sure you followed 462 00:24:49,840 --> 00:24:53,480 Speaker 1: what YouTube TV has done with Major League Baseball, and 463 00:24:53,560 --> 00:24:57,080 Speaker 1: I think you'll see a greater rollout of of Google YouTube, 464 00:24:57,600 --> 00:24:59,840 Speaker 1: both in their skinny bundle package and what they're doing. 465 00:25:00,119 --> 00:25:04,520 Speaker 1: Our current broadcast was like ESPN, but also UH putting 466 00:25:04,560 --> 00:25:10,400 Speaker 1: games on their their YouTube YouTube platform and exchanging rights. Uh, 467 00:25:10,440 --> 00:25:13,520 Speaker 1: and and selling ads so it's coming, it's coming fast? 468 00:25:14,440 --> 00:25:19,000 Speaker 1: How much? And uh? And who goes first? Uh? Domestically 469 00:25:19,119 --> 00:25:22,120 Speaker 1: is something that I couldn't really do anything more than guests. 470 00:25:22,160 --> 00:25:25,159 Speaker 1: So on the level of genius high or low? That goot, 471 00:25:25,359 --> 00:25:27,600 Speaker 1: the Google YouTube ad during the World Series right in 472 00:25:27,640 --> 00:25:29,920 Speaker 1: the middle of your screen. Was that high genius or 473 00:25:30,000 --> 00:25:33,040 Speaker 1: low genius? From where you sit? Well, you know again, 474 00:25:33,080 --> 00:25:35,360 Speaker 1: I think it was really smart for Baseball and good 475 00:25:35,359 --> 00:25:38,000 Speaker 1: for them. I mean, you have a league that's got 476 00:25:38,000 --> 00:25:41,959 Speaker 1: an older fan base and one that has been pushing 477 00:25:42,000 --> 00:25:45,399 Speaker 1: themselves to be more innovative if you follow up Commissioner 478 00:25:45,400 --> 00:25:48,480 Speaker 1: Manford has been talking about with shortening their games and 479 00:25:48,240 --> 00:25:51,040 Speaker 1: and and getting engaged internationally and doing some things that 480 00:25:51,080 --> 00:25:55,119 Speaker 1: I'm really admiring. The fact that baseball had a major 481 00:25:55,200 --> 00:25:59,479 Speaker 1: sponsorship during the World Series with a cutting edge, uh, 482 00:25:59,600 --> 00:26:04,320 Speaker 1: forward thinking entity like Google is impressive. So I noticed it, 483 00:26:04,359 --> 00:26:07,600 Speaker 1: as did everybody else was in the sports business. And 484 00:26:07,640 --> 00:26:10,280 Speaker 1: do you think largely there's more money going to be 485 00:26:10,320 --> 00:26:12,480 Speaker 1: available kind of in this next round now that we 486 00:26:12,560 --> 00:26:15,320 Speaker 1: have more players at the table, or do you think 487 00:26:15,359 --> 00:26:19,720 Speaker 1: there's the chance that may be less Well, you know again, 488 00:26:19,800 --> 00:26:22,440 Speaker 1: it's I certainly hope there's more. And when you look 489 00:26:22,480 --> 00:26:26,520 Speaker 1: at how our industry has has evolved over the last 490 00:26:26,560 --> 00:26:31,760 Speaker 1: number of decades, there has been lots of transformation ESPN 491 00:26:31,800 --> 00:26:35,880 Speaker 1: getting launched in the seventies and the expansion of digital 492 00:26:35,920 --> 00:26:38,800 Speaker 1: cable when having five channels and having more and more 493 00:26:38,800 --> 00:26:43,160 Speaker 1: opportunities for sports networks like the NFL Network and NBA TV, 494 00:26:44,080 --> 00:26:47,320 Speaker 1: thinking about satellite coming in and direct TV, you know, 495 00:26:47,359 --> 00:26:50,840 Speaker 1: bidding for the NFL package Sunday ticket. There's always been 496 00:26:50,880 --> 00:26:55,000 Speaker 1: disruption Fox coming in as a network player and buying 497 00:26:55,119 --> 00:26:58,439 Speaker 1: NFL rights and NASCAR rights and baseball and then what 498 00:26:58,600 --> 00:27:01,040 Speaker 1: that did to the incumbents and see in CBS at 499 00:27:01,080 --> 00:27:04,320 Speaker 1: that time, and all of it continues to evolve, and 500 00:27:04,359 --> 00:27:07,800 Speaker 1: in many cases it's almost a case of musical chairs 501 00:27:07,880 --> 00:27:11,600 Speaker 1: because there's not enough major content to go around for 502 00:27:11,640 --> 00:27:14,480 Speaker 1: all the players that are getting in. And sports is 503 00:27:14,600 --> 00:27:19,280 Speaker 1: a driver of connectivity, both in terms of economic value 504 00:27:19,320 --> 00:27:24,800 Speaker 1: for advertising or subscriptions or or new technology engagement or deployment, 505 00:27:25,080 --> 00:27:26,960 Speaker 1: and I think that's going to happen here as well. 506 00:27:27,840 --> 00:27:30,000 Speaker 1: We are chatting with Don Garber, the Commissioner of Major 507 00:27:30,080 --> 00:27:31,760 Speaker 1: League Soccer, and Don tell me about your morning when 508 00:27:31,800 --> 00:27:34,200 Speaker 1: you wake up, and I'm sure somebody calls the TEXTI 509 00:27:34,280 --> 00:27:36,159 Speaker 1: early and says, hey dead spins running a story that 510 00:27:36,200 --> 00:27:38,920 Speaker 1: says is MLS a Ponzi scheme? Is that just am 511 00:27:38,920 --> 00:27:41,280 Speaker 1: not understanding the economics of sport as too. Luck we 512 00:27:41,320 --> 00:27:45,040 Speaker 1: talked about future possibilities and revenue where the world's going. Yeah, 513 00:27:45,040 --> 00:27:47,800 Speaker 1: I mean, I just think it's people that don't understand 514 00:27:47,840 --> 00:27:50,880 Speaker 1: anything about the sports business. And you know, the great 515 00:27:50,920 --> 00:27:54,000 Speaker 1: thing that I've learned about our industry is there's no 516 00:27:54,040 --> 00:27:57,000 Speaker 1: shortage of pundits, and there's no shortage of cottage industry 517 00:27:57,000 --> 00:28:00,640 Speaker 1: around pundits. But generally those who write about out uh 518 00:28:00,720 --> 00:28:04,760 Speaker 1: the sport as an as economists have never worked in 519 00:28:04,800 --> 00:28:08,640 Speaker 1: the industry, so they don't understand how our business runs. 520 00:28:08,680 --> 00:28:11,800 Speaker 1: So to think that guys like Phil and Shoots or 521 00:28:11,880 --> 00:28:15,920 Speaker 1: Lamar Hunt or Robert Craft or Arthur Blank or Peter 522 00:28:16,040 --> 00:28:20,360 Speaker 1: Goober would ever be involved in anything that hasn't doesn't 523 00:28:20,359 --> 00:28:28,439 Speaker 1: have sound fundamentals, uh, strong thoughtful strategy, great governance in 524 00:28:28,560 --> 00:28:32,000 Speaker 1: terms of how it comes all together and how you 525 00:28:32,119 --> 00:28:37,520 Speaker 1: operate every day, and massive amounts of planning and strategy 526 00:28:37,600 --> 00:28:40,880 Speaker 1: that goes into ensuring that you're doing what you need 527 00:28:40,960 --> 00:28:43,760 Speaker 1: to do to be better tomorrow than Yard today. It's 528 00:28:43,760 --> 00:28:47,120 Speaker 1: just ridiculous because they're writing those things without ever talking 529 00:28:47,160 --> 00:28:50,440 Speaker 1: to any of the owners UH to find out why 530 00:28:50,600 --> 00:28:52,320 Speaker 1: do they do what they do and why have them 531 00:28:52,320 --> 00:28:55,880 Speaker 1: been able to be so successful as sports owners? And 532 00:28:55,920 --> 00:28:57,880 Speaker 1: by the way, why have they've been so successful in 533 00:28:57,880 --> 00:29:01,080 Speaker 1: every other industry that they've gotten involved. Let's talk the 534 00:29:01,080 --> 00:29:03,680 Speaker 1: core of it all. The game on the field. Where 535 00:29:03,800 --> 00:29:08,360 Speaker 1: is MLS in comparison to let's just say E p L. 536 00:29:08,400 --> 00:29:12,240 Speaker 1: I think because so many young soccer fans in particular 537 00:29:12,360 --> 00:29:15,080 Speaker 1: wake up Saturday mornings and turn on NBC Sports Network 538 00:29:15,160 --> 00:29:19,960 Speaker 1: and can see Liverpool play Arsenal menu Chelsea, they can't 539 00:29:20,000 --> 00:29:22,600 Speaker 1: help but make the comparison. Does that comparison bother you? 540 00:29:22,640 --> 00:29:25,560 Speaker 1: And where are we in the grand scheme of us 541 00:29:25,640 --> 00:29:29,720 Speaker 1: versus them? Well, you know we're we're clearly not at 542 00:29:29,760 --> 00:29:32,720 Speaker 1: Our teams are not spending the kind of money that 543 00:29:33,000 --> 00:29:36,320 Speaker 1: you know Manchester City is spending, or PSV is spending, 544 00:29:36,400 --> 00:29:40,440 Speaker 1: or Barcelona Madrid or spending. So we inconceivable to think that, 545 00:29:40,720 --> 00:29:42,840 Speaker 1: you know, we would be able to compete with Real 546 00:29:42,880 --> 00:29:45,200 Speaker 1: Madrid day to day on the field, or Manchester United 547 00:29:45,240 --> 00:29:47,520 Speaker 1: and man city on the field, but that doesn't mean 548 00:29:47,560 --> 00:29:51,200 Speaker 1: that we're not able to provide great value to our players, 549 00:29:51,240 --> 00:29:55,040 Speaker 1: to our fans, and to our communities, providing an opportunity 550 00:29:55,200 --> 00:29:59,200 Speaker 1: for uh ever growing audience to connect with a team 551 00:29:59,360 --> 00:30:03,560 Speaker 1: on the ground in their city UH and having players 552 00:30:03,640 --> 00:30:06,600 Speaker 1: that are those that they could identify with because many 553 00:30:06,640 --> 00:30:09,719 Speaker 1: of them are coming from their community. Every year, we 554 00:30:09,800 --> 00:30:12,240 Speaker 1: continue to invest more and more in our player pool, 555 00:30:12,240 --> 00:30:15,960 Speaker 1: and clearly the goal is to be competitive with the 556 00:30:16,040 --> 00:30:19,480 Speaker 1: other top leagues around the world. We're getting there, we're 557 00:30:19,520 --> 00:30:21,520 Speaker 1: not there today. I think that as long as you 558 00:30:21,520 --> 00:30:25,320 Speaker 1: have a north Star and focused on ensuring that you're 559 00:30:25,720 --> 00:30:30,200 Speaker 1: continually growing and evolving the quality of play, and I 560 00:30:30,200 --> 00:30:33,360 Speaker 1: think that's evident by a growing fan base, then we're 561 00:30:33,440 --> 00:30:35,960 Speaker 1: moving in the right direction. All right. Don Garber, Commissioner 562 00:30:35,960 --> 00:30:37,720 Speaker 1: of Major League Soccer, thank you very much for taking 563 00:30:37,720 --> 00:30:39,840 Speaker 1: a few minutes. Thank you, guys, I appreciate it. And 564 00:30:39,920 --> 00:30:43,360 Speaker 1: then take away from Don Garber for me is that 565 00:30:43,520 --> 00:30:47,960 Speaker 1: this real momentum here building with MLS. He acknowledges that 566 00:30:48,040 --> 00:30:52,080 Speaker 1: the revenue right now might not justify let's say the 567 00:30:52,080 --> 00:30:55,160 Speaker 1: expansion fee costs, but you don't look at now investors, 568 00:30:55,160 --> 00:30:56,960 Speaker 1: look at the future. He said that you have to 569 00:30:57,040 --> 00:31:00,000 Speaker 1: look beyond the right now. This could be real estate, 570 00:31:00,080 --> 00:31:03,200 Speaker 1: plays with stadiums, there's a media play, there's new media 571 00:31:03,240 --> 00:31:06,760 Speaker 1: coming to play. He's got a very millennial centric audience. 572 00:31:06,920 --> 00:31:09,760 Speaker 1: He's got a global audience that we know likes the game. 573 00:31:10,640 --> 00:31:15,120 Speaker 1: This to me is a possible opportunity for folks who 574 00:31:15,120 --> 00:31:18,200 Speaker 1: are looking to get involved in pro sports but don't 575 00:31:18,200 --> 00:31:21,280 Speaker 1: want to pay two plus billion dollars for a franchise 576 00:31:21,320 --> 00:31:24,000 Speaker 1: in the more established leagues. You mentioned the millennial audience. 577 00:31:24,040 --> 00:31:26,560 Speaker 1: That's my big takeaway Don Garber listening to him talk. 578 00:31:26,640 --> 00:31:29,160 Speaker 1: This is a guy who understands that the demographic changes 579 00:31:29,200 --> 00:31:33,040 Speaker 1: in the country are favoring him as the millennial continue 580 00:31:33,080 --> 00:31:35,880 Speaker 1: to get older. They're a tech savvy group. They consume 581 00:31:35,960 --> 00:31:39,080 Speaker 1: media in a different way. That is his audience, and 582 00:31:39,120 --> 00:31:41,239 Speaker 1: he is learning ways to capitalize on that. That, as 583 00:31:41,280 --> 00:31:43,920 Speaker 1: you said, is a long term horizon. It's not necessarily 584 00:31:43,960 --> 00:31:46,200 Speaker 1: maybe five years from now, maybe it's ten years or 585 00:31:46,240 --> 00:31:49,960 Speaker 1: maybe more. But he understands that the growth trajectory and 586 00:31:49,960 --> 00:31:52,160 Speaker 1: and the way this country is changing falls kind of 587 00:31:52,240 --> 00:31:57,040 Speaker 1: right into his hand. It feels better to be number 588 00:31:57,040 --> 00:31:59,440 Speaker 1: one than number five, a number because we have a 589 00:31:59,520 --> 00:32:01,440 Speaker 1: chance to over three in a row. Kid numbers at 590 00:32:01,360 --> 00:32:03,520 Speaker 1: a good time. When I first started wearing the number, 591 00:32:03,600 --> 00:32:07,120 Speaker 1: I would just have the bloomberg business of sports. The 592 00:32:07,240 --> 00:32:11,280 Speaker 1: number of the week, all right, and now let's move 593 00:32:11,320 --> 00:32:13,200 Speaker 1: to the number of the week. Evan, you have not 594 00:32:13,360 --> 00:32:15,000 Speaker 1: been brief so I'll spring it on you. This was 595 00:32:15,040 --> 00:32:18,880 Speaker 1: not discussed beforehand. Two hundred and ten. We should know 596 00:32:18,920 --> 00:32:21,600 Speaker 1: what this is. Two hundred and ten, we talked about it. 597 00:32:22,320 --> 00:32:27,120 Speaker 1: I'll give you hints. Football quarterback. Consecutive games. I have 598 00:32:27,160 --> 00:32:31,680 Speaker 1: an idea. Eli Manning played in two in ten consecutive 599 00:32:31,720 --> 00:32:34,880 Speaker 1: game benched. Now you would think when a guy doesn't play, 600 00:32:34,920 --> 00:32:39,000 Speaker 1: perhaps his merch would go down, but we found it 601 00:32:39,040 --> 00:32:41,120 Speaker 1: was different. You see this a lot. Actually there there 602 00:32:41,120 --> 00:32:43,760 Speaker 1: are times when when you expect a fan base to 603 00:32:43,800 --> 00:32:46,080 Speaker 1: be feeling one way, and then you look at merchandise sales. 604 00:32:46,320 --> 00:32:49,920 Speaker 1: I'm shocked that Giants fans don't already own their and 605 00:32:49,960 --> 00:32:52,080 Speaker 1: he doesn't have any Eli manninger and the other thing, 606 00:32:52,440 --> 00:32:54,720 Speaker 1: it's pretty clear that either this year or next year 607 00:32:54,720 --> 00:32:57,520 Speaker 1: he's reaching the end of his tenure in in a 608 00:32:57,600 --> 00:33:00,840 Speaker 1: Giants uniform. Um but clearly there was an overwhelming show 609 00:33:00,880 --> 00:33:04,000 Speaker 1: of support both on social media from fans. They were 610 00:33:04,040 --> 00:33:06,720 Speaker 1: upset with his benching. The coach has lost his job. 611 00:33:06,760 --> 00:33:09,520 Speaker 1: There's gonna be others that are leaving their positions high 612 00:33:09,600 --> 00:33:11,840 Speaker 1: up at the Giants. The coach loses his job, but 613 00:33:11,880 --> 00:33:16,960 Speaker 1: Eli gets his back exactly, So, did you waste the 614 00:33:17,000 --> 00:33:20,000 Speaker 1: money on the jerseys you're starting quarterback again? I don't 615 00:33:20,000 --> 00:33:22,920 Speaker 1: know anyway, I was surprised, just like you, you've been 616 00:33:22,920 --> 00:33:25,240 Speaker 1: listening to the Bloomberg Business of Sports. We're here each 617 00:33:25,280 --> 00:33:27,440 Speaker 1: and every week at the same time, exploring the world 618 00:33:27,440 --> 00:33:29,880 Speaker 1: of money in sports. I'm Evan Novie Williams and I'm 619 00:33:29,880 --> 00:33:32,080 Speaker 1: Scott Sloshnik. Thanks for joining us, and please tune in 620 00:33:32,160 --> 00:33:34,280 Speaker 1: next week when we speak with the biggest and brightest 621 00:33:34,320 --> 00:33:37,000 Speaker 1: in the sports industry. You're listening to Bloomberg Business of 622 00:33:37,040 --> 00:33:40,120 Speaker 1: Sports on Bloomberg Radio around the world and online as 623 00:33:40,120 --> 00:33:41,760 Speaker 1: an Apple podcast on iTunes.