1 00:00:00,360 --> 00:00:03,160 Speaker 1: Hello, I'm Scott So, I'm Evan Nobi Williams, and I'm 2 00:00:03,160 --> 00:00:05,560 Speaker 1: Michael Barr. And this is the Bloomberg Business of Sports 3 00:00:05,559 --> 00:00:08,400 Speaker 1: podcast where we explore the big money issues in the 4 00:00:08,400 --> 00:00:10,799 Speaker 1: world of sports, and today we begin with reports that 5 00:00:11,240 --> 00:00:14,680 Speaker 1: Carolina Panthers owner David Temper that's big money. Yes, we're 6 00:00:14,720 --> 00:00:17,800 Speaker 1: talking about the big wad of cash. He wants as 7 00:00:17,920 --> 00:00:21,680 Speaker 1: much as two hundred million dollars for upgrades at Bank 8 00:00:21,720 --> 00:00:25,720 Speaker 1: of America Stadium and a companion major League Soccer team 9 00:00:25,760 --> 00:00:28,640 Speaker 1: headquarters in Charlotte. Well, here's what I love about the story, 10 00:00:28,720 --> 00:00:30,880 Speaker 1: the bar and this is why we picked it. David 11 00:00:30,880 --> 00:00:33,920 Speaker 1: Tepper has been the owner of a major professional sports 12 00:00:33,920 --> 00:00:37,120 Speaker 1: team for how long, ayre has it? Has it been 13 00:00:37,120 --> 00:00:39,800 Speaker 1: a year for the Panthers already? Yeah, I think it's 14 00:00:39,800 --> 00:00:45,159 Speaker 1: been a year. He's already mastered the playbook. What do 15 00:00:45,200 --> 00:00:47,400 Speaker 1: you do when you want some upgrades or you need 16 00:00:47,440 --> 00:00:49,720 Speaker 1: a new stadium? When you need what do you do 17 00:00:49,720 --> 00:00:53,240 Speaker 1: you tell the taxpayers you pay for it? Well, remember 18 00:00:53,720 --> 00:00:57,840 Speaker 1: this guy was a world class businessman. So it's yeah, 19 00:00:58,200 --> 00:01:00,680 Speaker 1: what I'm saying, it's this he knows what to do. 20 00:01:00,800 --> 00:01:04,360 Speaker 1: But yeah, he's using of course, some of his own money. 21 00:01:05,080 --> 00:01:08,960 Speaker 1: He's saying that it's gonna be about four hundred million 22 00:01:08,959 --> 00:01:14,720 Speaker 1: dollars all said and done, evansion. Let's let's get into 23 00:01:14,760 --> 00:01:17,800 Speaker 1: that a little bit. If we made the expansion fee 24 00:01:17,959 --> 00:01:21,440 Speaker 1: for Major League Soccer teams, this was like ten million 25 00:01:21,520 --> 00:01:24,120 Speaker 1: bucks not so long of two thousand seven, when Toronto 26 00:01:24,200 --> 00:01:28,400 Speaker 1: joined the league, it was ten million dollars and in 27 00:01:28,680 --> 00:01:32,440 Speaker 1: Beckham Beckham was what he had the right to Beckham 28 00:01:32,480 --> 00:01:37,000 Speaker 1: and I think I think it was nine figures when 29 00:01:37,080 --> 00:01:39,080 Speaker 1: l a f C joined in, which was which was 30 00:01:39,160 --> 00:01:41,840 Speaker 1: three or four years ago. But St. Louis paid two 31 00:01:41,920 --> 00:01:45,240 Speaker 1: hundred hundred and it certainly seems as though, you know, 32 00:01:45,240 --> 00:01:47,240 Speaker 1: they didn't break out all of this and what Temper 33 00:01:47,280 --> 00:01:49,280 Speaker 1: put together to the city, but it looks like he's 34 00:01:49,280 --> 00:01:52,160 Speaker 1: going to be maybe two fifty. Yeah, that was that. 35 00:01:52,920 --> 00:01:55,360 Speaker 1: That's a large amount of money, by the way, and 36 00:01:55,400 --> 00:01:56,920 Speaker 1: we asked Mark Abbot when he was on the show. 37 00:01:57,080 --> 00:01:59,800 Speaker 1: I remember asking point blank, can you justify the valuations? 38 00:02:00,280 --> 00:02:04,840 Speaker 1: And everything was again about the future look ahead to 39 00:02:05,120 --> 00:02:09,040 Speaker 1: media deals, to what the value of the media will 40 00:02:09,080 --> 00:02:12,480 Speaker 1: be worth right now. I would guess you'd be hard 41 00:02:12,480 --> 00:02:17,240 Speaker 1: pressed to justify two hundred and fifty million dollar valuation 42 00:02:17,280 --> 00:02:20,079 Speaker 1: for a franchise they got. How much money are these 43 00:02:20,080 --> 00:02:23,720 Speaker 1: franchises kicking off? Well, that's the big that's the big question, 44 00:02:23,760 --> 00:02:25,880 Speaker 1: and I think there's as there is in every league. 45 00:02:25,880 --> 00:02:28,880 Speaker 1: There is a big discrepancy between the money that you know, 46 00:02:28,919 --> 00:02:31,920 Speaker 1: the team in Atlanta kicks off playing in Mercedes ben 47 00:02:32,040 --> 00:02:36,080 Speaker 1: Stadium to people almost every weekend, versus the money that 48 00:02:36,160 --> 00:02:40,120 Speaker 1: Columbus might kick off depending on how many people are 49 00:02:40,120 --> 00:02:43,120 Speaker 1: coming to games in Ohio. Well, I have to ask. 50 00:02:43,120 --> 00:02:45,520 Speaker 1: I hate to be Mr Rain on the parade, but 51 00:02:46,280 --> 00:02:50,720 Speaker 1: how high can these valuations go? At some point? This 52 00:02:50,800 --> 00:02:53,280 Speaker 1: is gonna I'm looking at something that's gonna be like 53 00:02:53,600 --> 00:02:57,680 Speaker 1: the real estate bust because the valuations can't keep going higher. 54 00:02:57,720 --> 00:02:59,799 Speaker 1: I mean, you can only get so much. Depends what 55 00:02:59,840 --> 00:03:01,960 Speaker 1: the venues to I mean, it really does depends on 56 00:03:01,960 --> 00:03:05,360 Speaker 1: what the revenue is. MLS gonna join with the Mexican League, 57 00:03:05,560 --> 00:03:09,040 Speaker 1: is that? I mean that's bandied about. Will they open 58 00:03:09,080 --> 00:03:10,839 Speaker 1: it up one day so that they could really bid 59 00:03:10,840 --> 00:03:13,760 Speaker 1: on the top talent and be a real competitor to 60 00:03:13,880 --> 00:03:16,480 Speaker 1: the E p L. But that's down the line. Yeah, 61 00:03:16,520 --> 00:03:18,639 Speaker 1: I think that's those are those are all important questions, 62 00:03:18,680 --> 00:03:20,280 Speaker 1: and I don't think we know exactly what the end 63 00:03:20,280 --> 00:03:22,919 Speaker 1: game is for MLS right now. They're expanding rapidly, right 64 00:03:23,040 --> 00:03:25,280 Speaker 1: l a f C was the twenty third team St. 65 00:03:25,320 --> 00:03:30,760 Speaker 1: Louis they just awarded. Twenty nine is going to be Sacramento. 66 00:03:30,800 --> 00:03:33,320 Speaker 1: I believe thirty could be Charlotte if Tepper actually ends 67 00:03:33,360 --> 00:03:35,080 Speaker 1: up getting this deal. And we should mention they don't 68 00:03:35,080 --> 00:03:37,320 Speaker 1: have the franchise yet. This is all kind of part 69 00:03:37,360 --> 00:03:39,360 Speaker 1: of a bid to trying to get And by the way, Evan, 70 00:03:39,520 --> 00:03:41,880 Speaker 1: you and I were both surprised the plan would call 71 00:03:41,960 --> 00:03:44,839 Speaker 1: for the soccer team to play at Bank of America Stadium. Yeah, 72 00:03:44,880 --> 00:03:46,920 Speaker 1: so that's where the Panthers play, you know, when temper 73 00:03:46,960 --> 00:03:49,760 Speaker 1: pay two point three million, which is terrible and I'm sorry, 74 00:03:50,160 --> 00:03:53,080 Speaker 1: but it's terrible Yankee Stadium for nycf C. Yeah. So 75 00:03:53,720 --> 00:03:58,000 Speaker 1: for a while MLS was touting all these new teams 76 00:03:58,040 --> 00:04:00,280 Speaker 1: that had soccer specific stadiums and l A f See. 77 00:04:00,440 --> 00:04:03,119 Speaker 1: I haven't been out there, but everyone says it's fantastic 78 00:04:03,200 --> 00:04:05,880 Speaker 1: as a soccer specific venue. The Red Bulls here outside 79 00:04:05,920 --> 00:04:08,440 Speaker 1: New York have have a good one as well. However, 80 00:04:08,560 --> 00:04:11,000 Speaker 1: I would imagine, you know, the success that Atlanta had 81 00:04:11,040 --> 00:04:13,880 Speaker 1: playing in an NFL stadium has maybe opened some eyes 82 00:04:13,880 --> 00:04:15,600 Speaker 1: to the idea that you know, we can make this 83 00:04:15,640 --> 00:04:17,360 Speaker 1: work if it is a brand new stadium. No. Bank 84 00:04:17,360 --> 00:04:20,840 Speaker 1: of America Stadium is not brand new. It open. But 85 00:04:21,040 --> 00:04:22,800 Speaker 1: one of the things David Tepper said when he bought 86 00:04:22,839 --> 00:04:25,960 Speaker 1: the Panthers there is a big new stadium coming at 87 00:04:25,960 --> 00:04:29,480 Speaker 1: some point in the next the next decade, stadium in Chote. 88 00:04:29,520 --> 00:04:32,479 Speaker 1: So I imagine if I'm Don Garber, the idea of 89 00:04:32,640 --> 00:04:35,760 Speaker 1: maybe repeating what's happening in Atlanta in Charlotte with with 90 00:04:35,800 --> 00:04:39,359 Speaker 1: a brand new NFL slash MLS stadium. I bet you 91 00:04:39,400 --> 00:04:41,360 Speaker 1: that's that's pretty intrigued. I will tell you from way 92 00:04:41,360 --> 00:04:43,520 Speaker 1: back in my youth soccer days that they do like 93 00:04:43,560 --> 00:04:47,359 Speaker 1: their soccer in Charlotte. Moving right along, I have four 94 00:04:47,400 --> 00:04:52,760 Speaker 1: words story doctor Doctor. I was like, that's two. Didn't 95 00:04:53,080 --> 00:04:55,680 Speaker 1: doctor doctor coming? Yeah. So, for for folks out there 96 00:04:55,680 --> 00:04:58,919 Speaker 1: who follow at pro football doc on Twitter, and did 97 00:04:59,480 --> 00:05:01,560 Speaker 1: you Farge know about this guy? I did not know 98 00:05:01,560 --> 00:05:03,960 Speaker 1: about it either. Yeah. So he's a people who play 99 00:05:03,960 --> 00:05:06,400 Speaker 1: fantasy sports. I think he's kind of a cult hero. 100 00:05:06,880 --> 00:05:10,400 Speaker 1: Are He's he's the where are you? He's essentially the 101 00:05:10,440 --> 00:05:14,080 Speaker 1: go to guy for instant injury reaction on Twitter. Right, 102 00:05:14,120 --> 00:05:16,279 Speaker 1: So he's a former team doctor. He worked with the 103 00:05:16,360 --> 00:05:20,200 Speaker 1: with the Chargers for seventeen years. Controversial and yeah he 104 00:05:20,400 --> 00:05:24,120 Speaker 1: he left under under some controversy. Um. He now, you know, 105 00:05:24,200 --> 00:05:28,279 Speaker 1: spends his Sundays and Thursdays and Mondays watching NFL games. 106 00:05:28,320 --> 00:05:30,600 Speaker 1: He has, you know, a big set up with multiple screens. 107 00:05:30,920 --> 00:05:33,680 Speaker 1: He gets live video, he gets replays, and he is 108 00:05:33,720 --> 00:05:36,320 Speaker 1: giving his expert opinion the moment and injury happens. So 109 00:05:36,360 --> 00:05:38,880 Speaker 1: when Sae Kwon Barkley goes down with what looks like 110 00:05:38,920 --> 00:05:42,040 Speaker 1: a rolled ankle, and this guy, Dr David Chow, pro 111 00:05:42,200 --> 00:05:44,680 Speaker 1: pro football doc, looks at the way Sa Kwan gets up, 112 00:05:44,720 --> 00:05:46,960 Speaker 1: looks at the way that the doctors put him on 113 00:05:47,000 --> 00:05:48,839 Speaker 1: a cart, look at the way they handle his ankle, 114 00:05:49,160 --> 00:05:52,839 Speaker 1: and he says, likely a high ankle sprain. That's probably 115 00:05:53,200 --> 00:05:54,880 Speaker 1: you know, four to eight weeks. You know, he gives 116 00:05:54,920 --> 00:05:57,640 Speaker 1: that kind of instant reaction. I've heard this guy now, Yes, 117 00:05:57,720 --> 00:06:02,880 Speaker 1: he's if you listen to lots of other podcast he's 118 00:06:02,920 --> 00:06:06,040 Speaker 1: on podcasts all the time. Yeah, here's the key, give 119 00:06:06,080 --> 00:06:09,120 Speaker 1: me the key. So the news now he is now starting. 120 00:06:09,160 --> 00:06:11,440 Speaker 1: He's been doing this for free on Twitter forever. He's 121 00:06:11,440 --> 00:06:14,600 Speaker 1: now launching a subscription service which is free right now 122 00:06:14,640 --> 00:06:16,919 Speaker 1: and likely will have a paywall next year, where he 123 00:06:17,040 --> 00:06:19,640 Speaker 1: is building out all of this injury into a database 124 00:06:19,680 --> 00:06:22,359 Speaker 1: that tells you what team players are injured, etcetera. And 125 00:06:22,360 --> 00:06:24,960 Speaker 1: he's doing it for gamblers and fantasy player. You pause. 126 00:06:25,040 --> 00:06:30,400 Speaker 1: This is when you express outrage. This is your outrage time. Okay, 127 00:06:30,480 --> 00:06:34,320 Speaker 1: here here's the problem. First of all, the NFL has 128 00:06:34,360 --> 00:06:37,480 Speaker 1: to do one heck of a better job of announcing 129 00:06:37,880 --> 00:06:41,440 Speaker 1: injuries and stop messing around with my head. Hockey just 130 00:06:41,440 --> 00:06:44,840 Speaker 1: says upper body, lower body. Expect I expect that this 131 00:06:44,920 --> 00:06:47,320 Speaker 1: is why this guy has a has a hole in 132 00:06:47,320 --> 00:06:51,440 Speaker 1: the market, because NFL injuries are so secretive. Um and 133 00:06:51,440 --> 00:06:53,919 Speaker 1: and it's a good question about whether you know the 134 00:06:54,000 --> 00:06:56,680 Speaker 1: onset of more legal sports gambling is going to force 135 00:06:57,279 --> 00:06:59,480 Speaker 1: it will because the NBA. One thing that didn't get 136 00:06:59,480 --> 00:07:01,280 Speaker 1: a lot of a coming out of the latest NBA 137 00:07:01,320 --> 00:07:04,440 Speaker 1: owners meeting was that the they've decided to push up 138 00:07:04,480 --> 00:07:07,159 Speaker 1: the time when you have to announce your starting lineup 139 00:07:07,160 --> 00:07:10,119 Speaker 1: from ten minutes to thirty minutes. So I mean general 140 00:07:10,160 --> 00:07:11,680 Speaker 1: managers also said, hey, you gotta need you need to 141 00:07:11,720 --> 00:07:14,400 Speaker 1: know who we're gonna play against that's be we already know. 142 00:07:14,520 --> 00:07:17,400 Speaker 1: Come on, that's bull that. This is about the sports betting, 143 00:07:17,800 --> 00:07:20,520 Speaker 1: and now they people want to know way ahead of time, 144 00:07:20,560 --> 00:07:23,080 Speaker 1: not just ten minutes before the game. Who's the starting five? 145 00:07:23,160 --> 00:07:25,440 Speaker 1: If somebody's maybe are they gonna play? How can you 146 00:07:25,440 --> 00:07:26,880 Speaker 1: bet on the game if you don't know who's And 147 00:07:26,920 --> 00:07:29,560 Speaker 1: the more information you give in that regard, the less 148 00:07:30,360 --> 00:07:32,360 Speaker 1: enticement there is for people who want to game the 149 00:07:32,400 --> 00:07:34,560 Speaker 1: system and get an edge, to be paying trainers or 150 00:07:34,600 --> 00:07:36,440 Speaker 1: paying people that work at the arena to try to 151 00:07:36,480 --> 00:07:41,080 Speaker 1: get did you see him? Well, let me explain something 152 00:07:41,120 --> 00:07:45,840 Speaker 1: for fantasy players. And every fantasy player is hanging around 153 00:07:45,960 --> 00:07:50,600 Speaker 1: for even because that's when the the who's in and 154 00:07:50,680 --> 00:07:54,560 Speaker 1: who's out are the announcements, which is fine. I don't 155 00:07:54,600 --> 00:07:57,400 Speaker 1: have a problem with that. The problem I've got is 156 00:07:57,720 --> 00:08:02,160 Speaker 1: Ben Roethlisberger played in week too. We had no clue 157 00:08:02,160 --> 00:08:05,480 Speaker 1: what was coming down the lane here, and all of 158 00:08:05,560 --> 00:08:09,080 Speaker 1: a sudden he's injured after we find out in the game, 159 00:08:09,480 --> 00:08:12,400 Speaker 1: and now obviously he's out for the season because he 160 00:08:12,480 --> 00:08:14,480 Speaker 1: has so that's a that's a great point, and you 161 00:08:14,520 --> 00:08:18,080 Speaker 1: see it's true in fantasy, but especially in gambling. NFL 162 00:08:18,120 --> 00:08:21,280 Speaker 1: lines will move around that eleven thirty twelve o'clock mark 163 00:08:21,280 --> 00:08:24,400 Speaker 1: Eastern time on Sunday when teams announced this person is 164 00:08:24,400 --> 00:08:26,760 Speaker 1: playing is not playing? Dr David Chow. One of the 165 00:08:26,800 --> 00:08:29,840 Speaker 1: things that he is doing, he claims that oftentimes a 166 00:08:29,880 --> 00:08:32,959 Speaker 1: week before these guys are ruled out, he's saying, you know, 167 00:08:33,000 --> 00:08:35,360 Speaker 1: I'm giving this guy a D grade. He's likely to 168 00:08:35,520 --> 00:08:38,720 Speaker 1: be out given what I saw happen on the field 169 00:08:38,800 --> 00:08:42,079 Speaker 1: last Sunday. So the advantage that he claims that he's 170 00:08:42,080 --> 00:08:44,560 Speaker 1: going to be giving to his subscribers is this idea 171 00:08:44,600 --> 00:08:47,079 Speaker 1: that maybe you jump ahead of that eleven thirty twelve 172 00:08:47,120 --> 00:08:50,400 Speaker 1: o'clock Sunday window if you can trust what he thinks 173 00:08:50,400 --> 00:08:54,839 Speaker 1: he's seeing. Dr David Chow. Yeah, the obvious caveat there 174 00:08:54,960 --> 00:09:00,600 Speaker 1: is diagnosing injuries via televisone television screen is not ideal, 175 00:09:00,640 --> 00:09:05,040 Speaker 1: and he's not you know, I am not treating him, 176 00:09:05,960 --> 00:09:08,000 Speaker 1: that's the big thing. So in talking to him, he 177 00:09:08,000 --> 00:09:10,920 Speaker 1: makes it very clear he's not making diagnoses because that 178 00:09:10,960 --> 00:09:13,600 Speaker 1: would involve seeing the patient, and there's HIPO violations and 179 00:09:13,600 --> 00:09:16,400 Speaker 1: things like that. He is just giving an informed opinion 180 00:09:16,760 --> 00:09:18,880 Speaker 1: about what he thinks has happened. What's did he tell 181 00:09:18,920 --> 00:09:21,559 Speaker 1: you the cost of what the subscription, So they haven't 182 00:09:21,559 --> 00:09:23,480 Speaker 1: said that yet that he and his business partner have 183 00:09:23,559 --> 00:09:28,120 Speaker 1: raised two dollars friends and family, etcetera. Um I can 184 00:09:28,240 --> 00:09:32,520 Speaker 1: raise more inventive with the Yeah, so not a huge 185 00:09:32,559 --> 00:09:34,800 Speaker 1: investment quite yet. I think their plan is to do 186 00:09:34,840 --> 00:09:37,560 Speaker 1: it for free this year and then if they have 187 00:09:37,600 --> 00:09:39,600 Speaker 1: some traction. They already claim that they have ten thousand 188 00:09:39,640 --> 00:09:42,120 Speaker 1: people signed up, if they have something that they think 189 00:09:42,240 --> 00:09:44,319 Speaker 1: is really a business moving forward, they raise a series 190 00:09:44,360 --> 00:09:47,040 Speaker 1: a round and then heading into next season, paywall and 191 00:09:47,080 --> 00:09:52,160 Speaker 1: something bigger. Moving on New Balance Nike. Is there a fight? There? 192 00:09:52,360 --> 00:09:54,640 Speaker 1: There is a fight, But it funny. You'd think if 193 00:09:54,640 --> 00:09:56,200 Speaker 1: you were just going into this blind, you think the 194 00:09:56,200 --> 00:09:58,240 Speaker 1: fight would be against the sort of the to retail 195 00:09:58,400 --> 00:10:01,960 Speaker 1: and shoot apparel. It would be getting New Balance versus Nike. No, no, 196 00:10:01,960 --> 00:10:04,800 Speaker 1: no, no no. New Balance was the kid holder for Liverpool 197 00:10:05,360 --> 00:10:09,240 Speaker 1: contract was expiring. Nike came in with a bit and 198 00:10:09,600 --> 00:10:12,600 Speaker 1: we thought had won the rights to become the new 199 00:10:12,679 --> 00:10:16,400 Speaker 1: kid holder for Liverpool. Only now New Balances in and 200 00:10:16,440 --> 00:10:18,480 Speaker 1: they're going to court saying no, no, no, no. Our 201 00:10:18,520 --> 00:10:21,840 Speaker 1: deal gave us the right to match the Nike offer. 202 00:10:22,640 --> 00:10:25,920 Speaker 1: Now it gets a little tricky. In that what does 203 00:10:26,080 --> 00:10:30,880 Speaker 1: match mean? Like, is it just dollar for dollar match 204 00:10:31,280 --> 00:10:34,200 Speaker 1: or are we talking poison pill kind of stuff that 205 00:10:34,280 --> 00:10:36,440 Speaker 1: I will let Mr Novie Williams talk about. Yeah, so 206 00:10:36,520 --> 00:10:39,719 Speaker 1: if it's dollar for dollar match, simple New Balance is 207 00:10:39,760 --> 00:10:42,520 Speaker 1: telling Liverpool we're willing to pay the eight six million 208 00:10:42,520 --> 00:10:44,600 Speaker 1: a year that Nike is offering you, so it should 209 00:10:44,600 --> 00:10:47,320 Speaker 1: be our contract. It sounds like what Liverpool is saying 210 00:10:47,360 --> 00:10:49,880 Speaker 1: back to New Balance is you know, right to match 211 00:10:50,040 --> 00:10:53,120 Speaker 1: isn't just dollar figure. It's you know, distribution capabilities. It's 212 00:10:53,120 --> 00:10:55,400 Speaker 1: your ability to to sell jerseys all over the world 213 00:10:55,400 --> 00:10:57,640 Speaker 1: and to react to things that happened on the field, 214 00:10:57,640 --> 00:10:59,600 Speaker 1: to create product and get it out there. And they're 215 00:10:59,600 --> 00:11:02,960 Speaker 1: saying New Balance doesn't have the capability there that Nike does. 216 00:11:03,320 --> 00:11:05,400 Speaker 1: So you know, it does seem to hinge on whatever 217 00:11:05,559 --> 00:11:08,640 Speaker 1: that the actual wording is of this right to match clause. 218 00:11:08,720 --> 00:11:11,480 Speaker 1: But you see this for an interpretation thereof by the 219 00:11:11,559 --> 00:11:14,040 Speaker 1: High Court exactly. And we we hear this all the time, 220 00:11:14,080 --> 00:11:16,000 Speaker 1: you know, right right at first refusal, right to match. 221 00:11:16,080 --> 00:11:18,520 Speaker 1: These are things that exist in contracts all the time. 222 00:11:18,679 --> 00:11:21,840 Speaker 1: And I'm sure there is some precedent somewhere in law 223 00:11:21,880 --> 00:11:23,800 Speaker 1: where someone has tried to get out of a contract 224 00:11:23,800 --> 00:11:27,400 Speaker 1: by claiming match means a lot more than just the 225 00:11:27,400 --> 00:11:29,280 Speaker 1: dollar figure written on the imagine like a right to 226 00:11:29,320 --> 00:11:32,360 Speaker 1: match with fanatics. I mean it would be almost impossible 227 00:11:32,360 --> 00:11:36,440 Speaker 1: for anybody to match the distribution. So kind of underlying 228 00:11:36,480 --> 00:11:39,520 Speaker 1: all this, obviously, New Balance is a smaller company than Nike. 229 00:11:39,600 --> 00:11:41,920 Speaker 1: New Balance does four point five billion dollars in sales 230 00:11:41,920 --> 00:11:44,600 Speaker 1: every year. Nike he does almost forty. And the end, 231 00:11:44,679 --> 00:11:46,960 Speaker 1: let's say earnings were yesterday, Nike crushed and Nike had 232 00:11:47,000 --> 00:11:50,080 Speaker 1: a Nike he had a good earnings earnings report yesterday. Um, 233 00:11:50,240 --> 00:11:52,880 Speaker 1: so you know, New Balance is not going to be 234 00:11:52,960 --> 00:11:56,080 Speaker 1: able to compete with Nike and Distribution anytime soon. They're 235 00:11:56,120 --> 00:11:59,640 Speaker 1: just fundamentally different companies. But as you know, as Scott said, 236 00:11:59,640 --> 00:12:01,640 Speaker 1: New Balance has been on the Jersey. New Balance, or 237 00:12:01,640 --> 00:12:03,160 Speaker 1: a Warrior which New Balance owns, has been on the 238 00:12:03,240 --> 00:12:06,520 Speaker 1: Jersey since thousand eleven. Liverpool won the Champions League last year. 239 00:12:06,600 --> 00:12:10,520 Speaker 1: They became essentially one game away from winning the English 240 00:12:10,559 --> 00:12:12,360 Speaker 1: Premier League last year. I think they're in first place 241 00:12:12,360 --> 00:12:14,720 Speaker 1: in the Premier League right now. They are now a 242 00:12:14,920 --> 00:12:20,720 Speaker 1: top top A tier European man city Chelsea there right there, Yeah, 243 00:12:20,840 --> 00:12:22,760 Speaker 1: they're they're all out there. That's what's at stake for 244 00:12:22,800 --> 00:12:25,000 Speaker 1: this company. If I'm Nike, I want that brand association 245 00:12:25,080 --> 00:12:27,559 Speaker 1: right now. And this is worth mentioning actually that New 246 00:12:27,559 --> 00:12:30,160 Speaker 1: Balance has had it's been a pretty nice run for 247 00:12:30,200 --> 00:12:33,160 Speaker 1: New Balance Partners in the past year. They signed Kawhi Leonard, 248 00:12:33,160 --> 00:12:36,760 Speaker 1: they signed Cocoa Golf, my girl Rose Lavelle, Sydney McLaughlin 249 00:12:36,800 --> 00:12:41,920 Speaker 1: if you don't know her name ownership that was coming 250 00:12:41,960 --> 00:12:44,160 Speaker 1: Sidney McLaughlin, who's going to be a star in the 251 00:12:44,160 --> 00:12:47,960 Speaker 1: Tokyo Olympics next year. Uh. New Liverpool was obviously a 252 00:12:48,000 --> 00:12:49,800 Speaker 1: part of that, right. Winning the Champions League in your 253 00:12:49,840 --> 00:12:52,280 Speaker 1: uniform is huge, um. And when you're New Balance and 254 00:12:52,320 --> 00:12:55,040 Speaker 1: companies that size, you know you don't have many soccer partners, right, 255 00:12:55,080 --> 00:12:57,960 Speaker 1: they don't have that many European teams. You pay big 256 00:12:58,000 --> 00:12:59,719 Speaker 1: money to one of them and you hope that they 257 00:12:59,760 --> 00:13:04,280 Speaker 1: book come what Liverpool has become. Liverpool far exceeded expectations exactly. 258 00:13:04,320 --> 00:13:06,720 Speaker 1: This would be a very tough loss for for New Balance. Well, 259 00:13:06,760 --> 00:13:09,359 Speaker 1: you have to now put in the valuation of distribution. 260 00:13:09,720 --> 00:13:11,640 Speaker 1: I mean, if that's the key to the whole thing, 261 00:13:12,200 --> 00:13:15,520 Speaker 1: and obviously what's the dollar value of that. Well, that's 262 00:13:15,520 --> 00:13:17,640 Speaker 1: what someone's going to try to decide. What what is 263 00:13:17,640 --> 00:13:21,000 Speaker 1: the interpretation of match? What is Does it just mean 264 00:13:21,040 --> 00:13:23,840 Speaker 1: dollar for dollar in terms or are we talking sort 265 00:13:23,840 --> 00:13:26,120 Speaker 1: of system wide capability. If that's the case, why if 266 00:13:26,160 --> 00:13:29,000 Speaker 1: it include the term in the contract. This has been 267 00:13:29,040 --> 00:13:31,840 Speaker 1: the Bloomberg Business of Sports podcast on Michael Barr along 268 00:13:31,880 --> 00:13:35,080 Speaker 1: with Scott Sasnik and Evan no W Williams. I'm here 269 00:13:35,080 --> 00:13:38,360 Speaker 1: with my guys each and every Monday, Wednesday and Thursday 270 00:13:38,440 --> 00:13:40,040 Speaker 1: exploring the world of money in sports. Yes, that was 271 00:13:40,080 --> 00:13:42,439 Speaker 1: a shot of Join us again tomorrow when we speak 272 00:13:42,440 --> 00:13:46,319 Speaker 1: with Pete last Delica, CEO of Activision, Blizzards e Sports Ventures. 273 00:13:46,559 --> 00:13:49,439 Speaker 1: You're listening to Bloomberg Business of Sports on Bloomberg Radio 274 00:13:49,600 --> 00:13:53,520 Speaker 1: around the world and online wherever you get your podcast.