1 00:00:00,640 --> 00:00:03,080 Speaker 1: This is the Bloomberg Business of Sports show, where we 2 00:00:03,120 --> 00:00:05,280 Speaker 1: explore the big money issues in the world of sports. 3 00:00:05,360 --> 00:00:09,040 Speaker 1: I'm Scarlett Folm. Michael barr is off, which is too 4 00:00:09,039 --> 00:00:11,239 Speaker 1: bad because on the show today we're talking about a 5 00:00:11,280 --> 00:00:14,360 Speaker 1: new deal that the NBA just signed. That's right, Scarlett. 6 00:00:14,480 --> 00:00:17,160 Speaker 1: The NBA signed a multi year deal with consumer data 7 00:00:17,239 --> 00:00:20,840 Speaker 1: firm Stellar Algo, and the league's investment arm actually took 8 00:00:20,840 --> 00:00:23,200 Speaker 1: an ownership stake in the firm as it's looking to 9 00:00:23,200 --> 00:00:25,520 Speaker 1: grow with equity portfolio. So let's get more on this 10 00:00:25,600 --> 00:00:28,160 Speaker 1: transaction from Kim Bassein, who has written about it for 11 00:00:28,240 --> 00:00:31,920 Speaker 1: Bloomberg News. Kim, I didn't realize that the NBA had 12 00:00:32,000 --> 00:00:34,720 Speaker 1: an investment arm. Can you tell us more about that business? 13 00:00:34,760 --> 00:00:38,120 Speaker 1: First of all, yeah, it's pretty new. So, uh, the 14 00:00:38,200 --> 00:00:41,240 Speaker 1: NBA has been investing in companies for for years and years, 15 00:00:41,240 --> 00:00:45,640 Speaker 1: but last year they decided to really formalize that part 16 00:00:45,680 --> 00:00:49,040 Speaker 1: of their business. So now they're looking to actively gain 17 00:00:49,440 --> 00:00:52,560 Speaker 1: equity stakes in more and more startups and uh and 18 00:00:52,560 --> 00:00:54,360 Speaker 1: and trying they're trying to go to that portfolio. Okay, 19 00:00:54,360 --> 00:00:56,800 Speaker 1: so tell us about this latest deal, which is a 20 00:00:56,960 --> 00:01:00,840 Speaker 1: steak in Stellar Algo, which I believe is Nadian it is, 21 00:01:00,840 --> 00:01:03,959 Speaker 1: it's from Calgary. Uh, this front with the consumer data firm. 22 00:01:04,000 --> 00:01:07,440 Speaker 1: They track fan data. So this multi year deal is 23 00:01:07,440 --> 00:01:10,920 Speaker 1: going to allow NBA franchises to have access to to 24 00:01:11,000 --> 00:01:15,680 Speaker 1: all that fan data. Those services for things like e commerce, ticketing, 25 00:01:16,200 --> 00:01:19,520 Speaker 1: venue management, social media and so on. So they didn't 26 00:01:19,640 --> 00:01:23,080 Speaker 1: disclose financial terms in this deal. But but uh, them 27 00:01:23,200 --> 00:01:26,800 Speaker 1: taking the NBA taking meaningful is what they said. Equity 28 00:01:26,800 --> 00:01:29,720 Speaker 1: stake in this company is a pretty is a pretty 29 00:01:29,760 --> 00:01:31,880 Speaker 1: big deal. Well can for me? You know, what I'm 30 00:01:31,920 --> 00:01:34,360 Speaker 1: interested in is about this investment arm of the NBA. 31 00:01:34,400 --> 00:01:36,280 Speaker 1: Apparently they are David Lee. And by the way, when 32 00:01:36,400 --> 00:01:38,240 Speaker 1: we say David Lee, we're not talking about former NBA 33 00:01:38,280 --> 00:01:41,800 Speaker 1: player New York Nick and Golden State Warriors were to 34 00:01:41,880 --> 00:01:43,720 Speaker 1: write a Great Rebounder. You know what I'm talking about, 35 00:01:43,880 --> 00:01:45,680 Speaker 1: won a championship with the Warriors from not mistaken. But 36 00:01:45,680 --> 00:01:48,400 Speaker 1: we're talking about David Lee, formerly of SK Holdings. That's 37 00:01:48,400 --> 00:01:51,760 Speaker 1: the second table of yeah, exactly in South Korea. And 38 00:01:51,800 --> 00:01:54,080 Speaker 1: so you know, talk to us about what davidly brings 39 00:01:54,080 --> 00:01:55,840 Speaker 1: to the table here. I know that the NBA has 40 00:01:55,840 --> 00:01:59,000 Speaker 1: made some other venture investments, but you know, talk to 41 00:01:59,080 --> 00:02:01,520 Speaker 1: us about David Lee. What his what his role within 42 00:02:01,800 --> 00:02:03,920 Speaker 1: the company is. Yeah, he's the one going out and 43 00:02:03,920 --> 00:02:07,880 Speaker 1: getting these deals. Uh. David Haber is the NBA Chief 44 00:02:07,880 --> 00:02:11,560 Speaker 1: financial officer, and I chatted with him back in October 45 00:02:11,600 --> 00:02:14,720 Speaker 1: and he basically declared that, Hey, we're the NBA and 46 00:02:14,760 --> 00:02:18,480 Speaker 1: we are open for business, and through this new NBA 47 00:02:18,560 --> 00:02:24,640 Speaker 1: equity division, Uh, David Lee is searching across all these categories. So, uh, 48 00:02:24,639 --> 00:02:31,480 Speaker 1: sports is pretty broad right. Sports can be anything media, fitness, fantasy, merchandizing, 49 00:02:31,560 --> 00:02:34,679 Speaker 1: and this latest one is fan engagement. Right. Uh So 50 00:02:35,240 --> 00:02:38,360 Speaker 1: having it be such a such a broad thing allows 51 00:02:38,360 --> 00:02:40,120 Speaker 1: a lot of flexibility here for the NBA to get 52 00:02:40,160 --> 00:02:42,320 Speaker 1: into all sorts of different businesses. Do we know how 53 00:02:42,400 --> 00:02:45,600 Speaker 1: much money is that David Lee's disposal to spend. We 54 00:02:45,680 --> 00:02:49,440 Speaker 1: do not. It's it's unclear. I heard from a source 55 00:02:49,480 --> 00:02:52,680 Speaker 1: that so far in its history, the NBA has invested 56 00:02:52,720 --> 00:02:56,000 Speaker 1: in about twenty companies and the value of all those 57 00:02:56,040 --> 00:03:00,400 Speaker 1: equity stakes put together is approaching a billion. So him, then, 58 00:03:00,520 --> 00:03:02,000 Speaker 1: you know, take me through some of those whole things. 59 00:03:02,040 --> 00:03:04,280 Speaker 1: I know they own a new era, which is basically 60 00:03:04,320 --> 00:03:07,360 Speaker 1: those fifteen hats, right, those those those cool caps. But 61 00:03:07,480 --> 00:03:10,240 Speaker 1: you know there's others like Zigazoo and Serrari. I mean, like, 62 00:03:10,520 --> 00:03:13,720 Speaker 1: when did the NBA start really making these investments? I mean, 63 00:03:13,720 --> 00:03:16,000 Speaker 1: what is the I mean, is there any color as 64 00:03:16,000 --> 00:03:18,040 Speaker 1: to what their return on investment of that portfolio even 65 00:03:18,080 --> 00:03:20,280 Speaker 1: looks like over time or are we just speculating here? 66 00:03:20,639 --> 00:03:22,520 Speaker 1: A lot of these are They're very strategic, right. They 67 00:03:22,560 --> 00:03:25,600 Speaker 1: want these investments to be able to affect the game 68 00:03:26,000 --> 00:03:28,519 Speaker 1: on on the court off the court, that the team's 69 00:03:28,560 --> 00:03:31,520 Speaker 1: ability to do business. Uh. Giving an example from a 70 00:03:31,520 --> 00:03:34,840 Speaker 1: few years ago was the next Style Smart Fabrics. I'm 71 00:03:34,880 --> 00:03:38,840 Speaker 1: not entirely sure what those fabrics do, but but it 72 00:03:38,960 --> 00:03:41,680 Speaker 1: sounds hide tech and it's certainly an on court saying 73 00:03:41,720 --> 00:03:44,600 Speaker 1: that that they're that they're that they're interested in. Another 74 00:03:44,600 --> 00:03:47,480 Speaker 1: one is like quint Events as an event management firm, 75 00:03:47,480 --> 00:03:49,880 Speaker 1: which helps with with venue management. These are all things 76 00:03:49,920 --> 00:03:52,520 Speaker 1: that somehow fit into the NBA's puzzle. So come, let's 77 00:03:52,520 --> 00:03:54,120 Speaker 1: get back to Stellar Algo. I mean, I was just 78 00:03:54,160 --> 00:03:56,440 Speaker 1: looking and it looks like the firm, the Canadian startup, 79 00:03:56,440 --> 00:03:58,320 Speaker 1: as you mentioned, raised something on the order of sixteen 80 00:03:58,360 --> 00:04:01,800 Speaker 1: point five million last year in funding. So that gives 81 00:04:01,800 --> 00:04:04,480 Speaker 1: you a sense of just how small this company is, right, 82 00:04:04,520 --> 00:04:06,360 Speaker 1: And and so you know. I mean we're not talking 83 00:04:06,360 --> 00:04:08,000 Speaker 1: about I mean, compared to this as the NBA and 84 00:04:08,000 --> 00:04:10,600 Speaker 1: some of its lucrative contracts with networks across the world. 85 00:04:10,640 --> 00:04:11,920 Speaker 1: I mean, this doesn't sound like a whole hell of 86 00:04:11,920 --> 00:04:13,680 Speaker 1: a lot of money. You know, how does this move 87 00:04:13,680 --> 00:04:15,320 Speaker 1: the needle for them? I guess you're right, I mean, 88 00:04:15,360 --> 00:04:18,440 Speaker 1: does this really Are these strategic investments designed to kind 89 00:04:18,440 --> 00:04:20,920 Speaker 1: of improve the overall experience for the NBA's audience or 90 00:04:20,960 --> 00:04:22,640 Speaker 1: are they trying to make a return on investment here? 91 00:04:22,720 --> 00:04:25,800 Speaker 1: I think their strategic investments to uh, to improve the 92 00:04:25,880 --> 00:04:29,000 Speaker 1: NBA's relationship with its fans. It's it's audience and the 93 00:04:29,040 --> 00:04:32,000 Speaker 1: on court product. Yeah, like big exits would be nice 94 00:04:33,160 --> 00:04:36,320 Speaker 1: and and uh they said that they're really looking at 95 00:04:36,560 --> 00:04:40,320 Speaker 1: early stage deals. But the mandate is that if there's 96 00:04:40,360 --> 00:04:42,640 Speaker 1: a big thing out there that the NBA should be 97 00:04:42,680 --> 00:04:46,200 Speaker 1: involved in, they're allowed to go do it. The David Lee, 98 00:04:46,240 --> 00:04:49,200 Speaker 1: the guy running this, is allowed to pitch that up 99 00:04:49,520 --> 00:04:51,560 Speaker 1: and uh see if the league is interested. You wonder 100 00:04:51,560 --> 00:04:54,160 Speaker 1: if they're going to maybe start taking stakes in streamers 101 00:04:54,279 --> 00:04:57,279 Speaker 1: or any of the media companies that may eventually broadcast 102 00:04:57,320 --> 00:05:00,200 Speaker 1: some of those NBA games in on different platforms. UK 103 00:05:00,320 --> 00:05:02,360 Speaker 1: is one of the big sports out there. So who 104 00:05:02,440 --> 00:05:06,480 Speaker 1: knows the the basketball video game? Yeah, well, I mean 105 00:05:06,560 --> 00:05:09,560 Speaker 1: I think also in terms of developing you know, the content, right, 106 00:05:09,600 --> 00:05:12,799 Speaker 1: you know, development leagues, you know, um, you know the youth, 107 00:05:12,880 --> 00:05:14,400 Speaker 1: you know, social media. I think that's gonna be a 108 00:05:14,440 --> 00:05:16,919 Speaker 1: big area of investment also. But again, what do I know. 109 00:05:16,960 --> 00:05:19,440 Speaker 1: We're just speculating here, Kim. But but yeah, no, I mean, 110 00:05:19,480 --> 00:05:21,000 Speaker 1: look for me, it's just gonna be interesting to see 111 00:05:21,040 --> 00:05:23,440 Speaker 1: how David Lee kind of executes his mandate, right, I mean, 112 00:05:23,480 --> 00:05:25,200 Speaker 1: he's never done this before. I mean, the NBA has 113 00:05:25,240 --> 00:05:27,359 Speaker 1: never done this before. And you know, I mean I 114 00:05:27,360 --> 00:05:28,920 Speaker 1: guess if you look to the NFL and some other 115 00:05:29,120 --> 00:05:31,560 Speaker 1: you know kind of leagues for as a frame of reference, 116 00:05:31,560 --> 00:05:33,440 Speaker 1: I mean, it seems pretty unique to me. Now, the 117 00:05:33,520 --> 00:05:36,840 Speaker 1: NBA is typically ahead of the other leagues with virtually everything. 118 00:05:36,880 --> 00:05:40,239 Speaker 1: Like they they're more willing to try out new things. 119 00:05:40,279 --> 00:05:42,400 Speaker 1: They're more willing to take risks. Do you see listen, 120 00:05:42,440 --> 00:05:45,880 Speaker 1: like sponsorships for example, Uh, they were they were early 121 00:05:45,920 --> 00:05:49,000 Speaker 1: in on on crypto, and they were early in these 122 00:05:49,000 --> 00:05:51,400 Speaker 1: these are these are risky things that that they've accepted 123 00:05:51,440 --> 00:05:54,920 Speaker 1: into their into the culture of the NBA. So going 124 00:05:54,960 --> 00:05:57,440 Speaker 1: out and and pursuing these kinds of deals, it seems 125 00:05:57,480 --> 00:05:58,960 Speaker 1: like it's in their DNA. I like the way you 126 00:05:59,000 --> 00:06:01,360 Speaker 1: put that that this is part of their culture at um. 127 00:06:01,560 --> 00:06:03,880 Speaker 1: By that measure, would the NFL be kind of the 128 00:06:03,920 --> 00:06:07,680 Speaker 1: most conservative in terms of, you know, moving ahead with 129 00:06:07,920 --> 00:06:10,960 Speaker 1: how it can expand its empire. Yeah, by far. The 130 00:06:11,040 --> 00:06:13,680 Speaker 1: NFL has usually last on something because they have the 131 00:06:13,720 --> 00:06:18,320 Speaker 1: most to lose and they're the biggest. So looking back again, sponsorships, 132 00:06:18,320 --> 00:06:21,599 Speaker 1: they didn't allow spirits companies to advertise until just a 133 00:06:21,640 --> 00:06:23,880 Speaker 1: few years ago. Sports betting was was last in the 134 00:06:24,000 --> 00:06:26,640 Speaker 1: NFL too, So that these are things that are that 135 00:06:26,760 --> 00:06:28,520 Speaker 1: the NBA has always been a head on. But it's 136 00:06:28,800 --> 00:06:31,640 Speaker 1: of course risk hear how much of that reflects um 137 00:06:31,680 --> 00:06:35,520 Speaker 1: Adam Silver and just how he approaches managing the league 138 00:06:35,640 --> 00:06:38,960 Speaker 1: versus the ownership of NBA teams and what they're looking for. 139 00:06:39,520 --> 00:06:42,520 Speaker 1: I think Adam Silver has to uh he's also the 140 00:06:42,600 --> 00:06:45,160 Speaker 1: voice of the owners, so he speaks on their behalf, 141 00:06:45,240 --> 00:06:47,400 Speaker 1: so so they're they're in discussions all the time. I 142 00:06:47,440 --> 00:06:51,280 Speaker 1: think this goes back beyond the current two commissioners of 143 00:06:51,279 --> 00:06:53,479 Speaker 1: of of these two leagues, and it really is is 144 00:06:53,480 --> 00:06:56,160 Speaker 1: a cultural thing that that that goes back for for decades. Well, 145 00:06:56,200 --> 00:06:58,800 Speaker 1: if I'm I'm hearing correctly about Star Algo, I mean 146 00:06:58,800 --> 00:07:02,960 Speaker 1: it allows HIMBA players to you know, personalized, customized marketing campaigns. 147 00:07:02,960 --> 00:07:05,200 Speaker 1: I wonder if they can't sort of parlay this into 148 00:07:05,240 --> 00:07:08,040 Speaker 1: what's going on in college basketball with n I L 149 00:07:08,240 --> 00:07:10,080 Speaker 1: and and and and all that. I mean, I wonder 150 00:07:10,120 --> 00:07:12,000 Speaker 1: what your thoughts are there. Oh, it's so messy in 151 00:07:12,040 --> 00:07:14,880 Speaker 1: college I don't know what you see that story about 152 00:07:14,920 --> 00:07:22,640 Speaker 1: Florida recently, a booster collective uh was promised quarterback thirteen 153 00:07:22,680 --> 00:07:26,840 Speaker 1: million dollars over four years to play for the Florida Gators. 154 00:07:27,200 --> 00:07:29,320 Speaker 1: Apparently that deal fell apart, and now he's trying to 155 00:07:29,320 --> 00:07:32,440 Speaker 1: get released from the Gators. It's it's such such a 156 00:07:32,520 --> 00:07:34,120 Speaker 1: mess that I don't know how they're going to be 157 00:07:34,160 --> 00:07:36,679 Speaker 1: able to They need some sort of federal legislation. Everyone's 158 00:07:36,720 --> 00:07:38,680 Speaker 1: been calling for it. But you know, we saw we 159 00:07:38,720 --> 00:07:40,520 Speaker 1: certainly know about the divide there and getting something you 160 00:07:40,680 --> 00:07:43,240 Speaker 1: can't figure out how to pay the bills that we oh, 161 00:07:43,440 --> 00:07:46,240 Speaker 1: let alone something on name, image and likeness for college athletes. 162 00:07:46,280 --> 00:07:51,680 Speaker 1: Come on, Yeah, it's it's it's it's pretty tough, all right, Kim. 163 00:07:51,680 --> 00:07:54,120 Speaker 1: I also want to bring in another story that you've written, 164 00:07:54,280 --> 00:07:57,480 Speaker 1: and it's also about spacking sports related startups. There's a 165 00:07:57,560 --> 00:08:02,720 Speaker 1: VC firm that is creating a fund specifically to invest 166 00:08:02,760 --> 00:08:05,480 Speaker 1: in sports related startups. Tell us about that. They called 167 00:08:05,520 --> 00:08:08,840 Speaker 1: Courtside Adventures. They just raised a one hundred million dollar 168 00:08:08,960 --> 00:08:12,720 Speaker 1: fund from UH companies like Dick Sporting Goods, a bunch 169 00:08:12,760 --> 00:08:16,440 Speaker 1: of team ownership groups including the Golden State Warriors, Atlanta Hawks. 170 00:08:17,120 --> 00:08:20,680 Speaker 1: It's it's interesting because this is their third fund. All 171 00:08:20,800 --> 00:08:23,320 Speaker 1: three have been focused on sports. The two first two 172 00:08:23,320 --> 00:08:25,840 Speaker 1: were smaller. This is by far the biggest one. And 173 00:08:25,880 --> 00:08:29,200 Speaker 1: again they're they're keeping this sports focus and and talking 174 00:08:29,240 --> 00:08:32,560 Speaker 1: to the partners there, they said, you know, ten years ago, 175 00:08:32,600 --> 00:08:35,320 Speaker 1: even before they started this fund, UH, they they were 176 00:08:35,360 --> 00:08:38,280 Speaker 1: interested in sports, and they went to investors and they 177 00:08:38,320 --> 00:08:40,640 Speaker 1: asked them, you know, would you like to get get 178 00:08:40,720 --> 00:08:43,400 Speaker 1: involved in this business? Everyone said no, everyone shut them down. 179 00:08:43,480 --> 00:08:46,760 Speaker 1: Sports does not have that kind of They were not interested. Yeah. No, 180 00:08:46,920 --> 00:08:50,120 Speaker 1: the institutional investors were not interested in sports at all. 181 00:08:50,200 --> 00:08:52,360 Speaker 1: So they worked to like broaden the definition there and 182 00:08:52,360 --> 00:08:54,120 Speaker 1: and help convince people. It was just, you know, team 183 00:08:54,120 --> 00:08:56,480 Speaker 1: owners who are people who had kids who are playing 184 00:08:56,480 --> 00:08:59,719 Speaker 1: college sports, that that kind of thing, and athletes themselves 185 00:08:59,760 --> 00:09:02,360 Speaker 1: of us want to invest in sports. Uh, that's changed 186 00:09:02,400 --> 00:09:04,760 Speaker 1: over the years. And and I think this this fund, 187 00:09:04,800 --> 00:09:06,920 Speaker 1: even though it's it's it's only about a hundred million dollars, 188 00:09:07,040 --> 00:09:09,600 Speaker 1: is evidence of that that the interest is growing in 189 00:09:09,640 --> 00:09:12,000 Speaker 1: this whole category. Yeah, and Courtside Ventures, I mean, let's 190 00:09:12,000 --> 00:09:14,559 Speaker 1: be clear. I mean they have investments already pre existing 191 00:09:14,559 --> 00:09:18,280 Speaker 1: in the athletic right in stock X and New York Times. 192 00:09:18,320 --> 00:09:19,920 Speaker 1: But I mean, so they know what they're doing. They've 193 00:09:19,920 --> 00:09:21,240 Speaker 1: been through the ring of a few times here. What 194 00:09:21,360 --> 00:09:23,520 Speaker 1: I think is most interesting is the other investors, you know, 195 00:09:23,720 --> 00:09:26,520 Speaker 1: um you know, Shaquille and Neil, Larry, Larry Fitzgerald. It 196 00:09:26,520 --> 00:09:28,200 Speaker 1: seems it seems like they're in a pretty good niche. 197 00:09:28,240 --> 00:09:30,120 Speaker 1: They're they're in a pretty good part of the market. 198 00:09:30,200 --> 00:09:32,600 Speaker 1: And look, I mean to be raising money for sports venture, 199 00:09:33,160 --> 00:09:35,560 Speaker 1: I mean, given all the competition out there, I'm sure 200 00:09:35,559 --> 00:09:37,240 Speaker 1: it can't be easy. Oh absolutely. And I think the 201 00:09:37,240 --> 00:09:41,360 Speaker 1: Athletic was the h was really a good uh point 202 00:09:41,400 --> 00:09:43,959 Speaker 1: for them to make like that, that was extremely successful 203 00:09:44,800 --> 00:09:48,240 Speaker 1: venture for them. UM stock X was also good. That's 204 00:09:48,280 --> 00:09:51,079 Speaker 1: a that's a sports related product and sneakers and and 205 00:09:51,080 --> 00:09:54,080 Speaker 1: and it's absolutely part of this of this ecosystem. They 206 00:09:54,120 --> 00:09:56,720 Speaker 1: also have the a stake in a drone racing league, 207 00:09:57,000 --> 00:09:59,520 Speaker 1: which I have not checked up on recently. It seems 208 00:09:59,520 --> 00:10:01,120 Speaker 1: like every time I come on here, we talked about 209 00:10:01,120 --> 00:10:04,760 Speaker 1: some weird sport and and today it's it's the drone 210 00:10:04,840 --> 00:10:08,319 Speaker 1: raising last. Cherokey is pretty good at that, I mean, 211 00:10:08,320 --> 00:10:10,440 Speaker 1: but seriously, I mean it's pretty unbelievable. I mean, you know, 212 00:10:10,440 --> 00:10:13,120 Speaker 1: with all that's going on, we hear about pickle ball, 213 00:10:13,200 --> 00:10:16,280 Speaker 1: we hear about we had um you know, Jonathan Soro song, 214 00:10:16,360 --> 00:10:18,240 Speaker 1: we had John and Patrick cup on, all of which 215 00:10:18,280 --> 00:10:20,600 Speaker 1: are talking about these new leagues, you know, female sports, 216 00:10:20,640 --> 00:10:22,640 Speaker 1: you name it. You know, it's really kind of interesting. 217 00:10:22,760 --> 00:10:25,360 Speaker 1: You know, just where where courtside is and and and Yeah, 218 00:10:25,400 --> 00:10:27,720 Speaker 1: it seems like their investments are focused on that element 219 00:10:27,720 --> 00:10:28,840 Speaker 1: of the game. I want to go back to what 220 00:10:28,880 --> 00:10:30,679 Speaker 1: you said about how when they first started doing this 221 00:10:30,720 --> 00:10:32,480 Speaker 1: ten years ago, there wasn't a whole lot of interest. 222 00:10:32,559 --> 00:10:34,280 Speaker 1: What was the turning point? What was the catalyst that 223 00:10:34,320 --> 00:10:36,040 Speaker 1: made everyone stood up and say, yeah, now I want 224 00:10:36,080 --> 00:10:39,320 Speaker 1: to get into backing UM sports investments. Was it trust 225 00:10:39,400 --> 00:10:41,920 Speaker 1: media rights? Going through the roof. I think I think 226 00:10:41,920 --> 00:10:43,880 Speaker 1: media rights are certainly a big part of it. You're 227 00:10:43,960 --> 00:10:46,120 Speaker 1: you're seeing over the past I don't know what seven 228 00:10:46,120 --> 00:10:48,800 Speaker 1: to ten years, they're really is skyrocketed. So you're just 229 00:10:48,840 --> 00:10:51,080 Speaker 1: seeing more money slash around and and I think you're 230 00:10:51,080 --> 00:10:53,640 Speaker 1: you're seeing more success stories, right, and you're seeing more 231 00:10:53,760 --> 00:10:58,360 Speaker 1: more startups. Sports themselves exists now and able to This 232 00:10:58,400 --> 00:11:01,280 Speaker 1: isn't the era of like a you know, football, where 233 00:11:01,600 --> 00:11:05,360 Speaker 1: the like the secondary versions of these sports have no 234 00:11:05,480 --> 00:11:08,560 Speaker 1: chance whatsoever to survive because the NFL just squashes them 235 00:11:08,640 --> 00:11:12,440 Speaker 1: under its tub. Now we have so much more people 236 00:11:12,480 --> 00:11:16,480 Speaker 1: are consuming through through every channel, and and there's just 237 00:11:16,520 --> 00:11:18,560 Speaker 1: so much content out there that people want to watch. 238 00:11:18,559 --> 00:11:20,080 Speaker 1: I think Scotland makes a great point, you know. I 239 00:11:20,080 --> 00:11:23,040 Speaker 1: mean this is based on successful exits, right and recoveries 240 00:11:23,120 --> 00:11:25,040 Speaker 1: and return on investment, which we now have a bit 241 00:11:25,080 --> 00:11:26,400 Speaker 1: of a body of work that we can look at. 242 00:11:26,440 --> 00:11:28,920 Speaker 1: But I think it's also very indicative of the market. 243 00:11:28,960 --> 00:11:32,000 Speaker 1: We're now coming out of this this age of of 244 00:11:32,080 --> 00:11:34,480 Speaker 1: non noormalization, of moderation, call it what you will, but 245 00:11:34,520 --> 00:11:36,319 Speaker 1: I think it's going to be interesting to see, you know, 246 00:11:36,360 --> 00:11:38,160 Speaker 1: if they can continue along this pace, if there's still 247 00:11:38,160 --> 00:11:40,040 Speaker 1: an interest for some of these properties going forward if 248 00:11:40,080 --> 00:11:43,400 Speaker 1: we are indeed as the market's projects going into recession, right, 249 00:11:43,440 --> 00:11:47,280 Speaker 1: demand for assets um that are not correlated with the 250 00:11:47,320 --> 00:11:49,960 Speaker 1: equity market, the bond market, the commodity market. And we 251 00:11:50,040 --> 00:11:53,920 Speaker 1: left out one big thing here sports betting. Yes, the 252 00:11:54,080 --> 00:11:58,600 Speaker 1: legalization of sports betting and change this whole, this whole, 253 00:11:59,280 --> 00:12:01,840 Speaker 1: But even that industy is basically consolidating and a lot 254 00:12:01,880 --> 00:12:05,040 Speaker 1: of these smaller operators you know, um Sports Illustrated you 255 00:12:05,040 --> 00:12:07,000 Speaker 1: know is one that comes to mining, you know they 256 00:12:07,800 --> 00:12:10,360 Speaker 1: name Yeah, they can't hack it, right because it's really 257 00:12:10,360 --> 00:12:13,280 Speaker 1: dominated by FanDuel, by draft Kings, by Caesars, by MGM. 258 00:12:13,280 --> 00:12:14,960 Speaker 1: I mean, it's the big four and then everybody else. 259 00:12:15,160 --> 00:12:17,600 Speaker 1: Talking to courtside about what they're interested in. They were 260 00:12:17,600 --> 00:12:21,640 Speaker 1: looking forward at a at new sports betting ventures internationally 261 00:12:21,840 --> 00:12:25,839 Speaker 1: as well, because if you can get in before it's 262 00:12:25,920 --> 00:12:28,360 Speaker 1: legalized there, then you have a huge head head start 263 00:12:28,400 --> 00:12:29,960 Speaker 1: on everyone. So it's too late in the US. In 264 00:12:30,000 --> 00:12:32,000 Speaker 1: other words, they want to look ahead to where it 265 00:12:32,080 --> 00:12:35,559 Speaker 1: is in Asia or Australia or India. Cricket, Yeah, you 266 00:12:35,640 --> 00:12:40,360 Speaker 1: buy like a daily fantasy cricket company somewhere and then 267 00:12:40,880 --> 00:12:43,320 Speaker 1: and then suddenly it's legal to vet on your phone 268 00:12:43,440 --> 00:12:46,280 Speaker 1: and uh yeah, you have a huge head start. Scott's 269 00:12:46,280 --> 00:12:47,800 Speaker 1: going to have to start in Ndia with us before 270 00:12:47,800 --> 00:12:53,200 Speaker 1: she finds out about our cricket application. Yeah, we got guys. 271 00:12:54,520 --> 00:12:57,720 Speaker 1: Kim Vassin, thank you so much. Kim Vassin covers celebrities 272 00:12:57,760 --> 00:13:00,320 Speaker 1: and athletes. He kind of has the dream Bob here 273 00:13:00,320 --> 00:13:03,200 Speaker 1: at Bloomberg. Um, so he's always getting ahold of these 274 00:13:03,559 --> 00:13:06,960 Speaker 1: extra interesting deals and and talking to interesting investors. Kim, 275 00:13:07,000 --> 00:13:09,439 Speaker 1: I really appreciate your joining us today. This is the 276 00:13:09,440 --> 00:13:12,559 Speaker 1: Bloomberg Business of Sports podcast. I'm Scarlet Foo along with 277 00:13:12,640 --> 00:13:14,840 Speaker 1: Damien Sassar. Be sure to catch us here each and 278 00:13:14,920 --> 00:13:17,800 Speaker 1: every Monday, Wednesday and Thursday, where we explore the world 279 00:13:17,800 --> 00:13:20,560 Speaker 1: of money and sports. It's a never ending circus. And 280 00:13:20,600 --> 00:13:22,559 Speaker 1: of course you can catch me on Twitter at Scarlet 281 00:13:22,559 --> 00:13:25,680 Speaker 1: Fool and I'm on Twitter at You're listening to Bloomberg 282 00:13:25,679 --> 00:13:28,280 Speaker 1: Business of Sports on Bloomberg Radio around the world.