1 00:00:02,800 --> 00:00:05,280 Speaker 1: Hello, I'm Michael barn and I'm Scott Sashnik. On this 2 00:00:05,320 --> 00:00:07,880 Speaker 1: weekly podcast, we explore the big money issues in the 3 00:00:07,880 --> 00:00:09,760 Speaker 1: world of sports and talked to some of the biggest 4 00:00:09,760 --> 00:00:12,280 Speaker 1: players in the industry. On this week's show, we talked 5 00:00:12,320 --> 00:00:15,400 Speaker 1: with Milwaukee Bucks president Peter Fagan about the business of 6 00:00:15,440 --> 00:00:18,560 Speaker 1: the NBA and the Bucks making a comeback. But first, 7 00:00:18,600 --> 00:00:20,600 Speaker 1: let's look at the top stories of the week. Joining 8 00:00:20,680 --> 00:00:23,880 Speaker 1: us as Bloomberg Business of Sports reporter Evan Nobie Williams. 9 00:00:23,920 --> 00:00:27,160 Speaker 1: And the first story is a story that Scott you broke, 10 00:00:27,600 --> 00:00:31,280 Speaker 1: and it's a very serious story. It involves NFL, TV 11 00:00:31,560 --> 00:00:36,400 Speaker 1: and ESPN. They have suspended five X players over harassment claims. Yeah, 12 00:00:36,479 --> 00:00:39,720 Speaker 1: every day it seems we're waiting for who's the next person. 13 00:00:40,320 --> 00:00:42,839 Speaker 1: We've now hit the sports world and it's no surprise 14 00:00:42,880 --> 00:00:47,880 Speaker 1: at sports media. You just wonder when the culture shift 15 00:00:47,960 --> 00:00:51,720 Speaker 1: is going to happen where this stuff no longer happens. 16 00:00:51,800 --> 00:00:55,920 Speaker 1: This was some ugly stuff that's alleged. This woman who 17 00:00:56,480 --> 00:01:00,000 Speaker 1: was a wardrobe stylist at the NFL. She said her 18 00:01:00,040 --> 00:01:03,959 Speaker 1: office was the men's room. I mean, that's problem number one, right, 19 00:01:04,000 --> 00:01:06,360 Speaker 1: if true, that that she was made to work in 20 00:01:06,400 --> 00:01:11,319 Speaker 1: the men's room, people sending her pictures an appropriate uh, nudity, 21 00:01:12,080 --> 00:01:16,839 Speaker 1: foul language, suggestive language treatment at the office. Uh. And 22 00:01:17,160 --> 00:01:22,120 Speaker 1: bigger for the NFL, this could be a significant business issue. 23 00:01:22,200 --> 00:01:26,240 Speaker 1: Almost half of the league's fans are women, and this 24 00:01:26,319 --> 00:01:29,280 Speaker 1: is not exactly something you want to do to your customers. 25 00:01:29,280 --> 00:01:31,480 Speaker 1: You want to make them feel as if you certainly 26 00:01:31,520 --> 00:01:33,640 Speaker 1: care about them. And this is certainly obviously not a 27 00:01:33,680 --> 00:01:36,199 Speaker 1: one off thing. And we saw another former NFL Network 28 00:01:36,240 --> 00:01:39,560 Speaker 1: employee post on her Instagram account that she was when 29 00:01:39,560 --> 00:01:42,200 Speaker 1: she was hired asked by the hiring coordinator do you 30 00:01:42,240 --> 00:01:44,119 Speaker 1: plan to get knocked up like the rest of them? 31 00:01:44,120 --> 00:01:46,880 Speaker 1: I think is the exact quote. UM, so serious looks 32 00:01:47,000 --> 00:01:49,640 Speaker 1: looks bad, as you said, Scott, for for NFL and 33 00:01:49,720 --> 00:01:53,440 Speaker 1: NFL Network. But as we've said before on this show, UH, 34 00:01:53,480 --> 00:01:56,720 Speaker 1: this is not a problem that is unique to anyone industry. 35 00:01:56,720 --> 00:01:59,160 Speaker 1: It's not just entertainment, it's obviously not just sports, it's 36 00:01:59,160 --> 00:02:02,240 Speaker 1: obviously not just former NFL players. And I do wonder 37 00:02:02,320 --> 00:02:04,440 Speaker 1: when more of this is going to continue to come out. 38 00:02:04,800 --> 00:02:07,680 Speaker 1: It has gotten the attention of Roger Goodell, who said, 39 00:02:07,680 --> 00:02:12,080 Speaker 1: we take this seriously. Wouldn't surprise me, Michael let's say 40 00:02:12,639 --> 00:02:15,959 Speaker 1: if there was more to this story. This is broader 41 00:02:16,000 --> 00:02:19,960 Speaker 1: than just sports, obviously, but there's certainly a seismic shift 42 00:02:20,000 --> 00:02:24,280 Speaker 1: in the thinking. Let's talk about Derek Jeter, who now 43 00:02:24,760 --> 00:02:27,840 Speaker 1: is an owner, part owner anyway of the Miami Marlins, 44 00:02:28,360 --> 00:02:33,480 Speaker 1: and super agent Scott Boris is kind of slamming him 45 00:02:33,560 --> 00:02:35,880 Speaker 1: over some of the recent movements that have happened with 46 00:02:35,919 --> 00:02:38,040 Speaker 1: the team. It's funny you have a couple of months 47 00:02:38,040 --> 00:02:40,679 Speaker 1: into the Derek Jeter ownership era, it looks a lot 48 00:02:40,720 --> 00:02:44,880 Speaker 1: like the Jeffrey Lauria ownership area. He's doing a lot 49 00:02:44,919 --> 00:02:47,839 Speaker 1: of the same things. He's fire sailing top talent, which 50 00:02:47,880 --> 00:02:50,040 Speaker 1: is what Jeffrey Lauria did for so long. Um, and 51 00:02:50,040 --> 00:02:52,440 Speaker 1: there's obviously a reason for it. The Marlins are not 52 00:02:52,520 --> 00:02:54,960 Speaker 1: making a ton of money, they have prospects that might 53 00:02:54,960 --> 00:02:57,480 Speaker 1: not or they have talent that might not help them immediately, 54 00:02:57,840 --> 00:02:59,560 Speaker 1: So why not try to break the whole thing down 55 00:02:59,800 --> 00:03:02,359 Speaker 1: and build it up organically, which has worked. I mean, 56 00:03:02,360 --> 00:03:05,720 Speaker 1: we've seen the Washington Nationals turned two bad years into 57 00:03:05,880 --> 00:03:08,200 Speaker 1: Steven Strasberg and Bryce Harper and now they're one of 58 00:03:08,200 --> 00:03:10,400 Speaker 1: the best teams in the National League. This is obviously 59 00:03:10,440 --> 00:03:12,880 Speaker 1: a strategy. It has worked before. But if you're a 60 00:03:12,880 --> 00:03:15,600 Speaker 1: Marlins fan, I'm sure you can't help. But notice that, hey, 61 00:03:15,600 --> 00:03:17,440 Speaker 1: our new ownership looks a lot like the old one. 62 00:03:17,680 --> 00:03:20,000 Speaker 1: But one thing that Gene Carlo Stanton, who is now 63 00:03:20,000 --> 00:03:23,160 Speaker 1: a New York Yankees said, he said, look, we're not 64 00:03:23,280 --> 00:03:26,520 Speaker 1: that far off. He said this to Derek Jeter from 65 00:03:26,560 --> 00:03:29,240 Speaker 1: having a super duper team that's very competitive. We just 66 00:03:29,320 --> 00:03:33,320 Speaker 1: need some pitching. But apparently the Marlins didn't see it that. 67 00:03:33,560 --> 00:03:35,720 Speaker 1: I love that we just need some pitching. This is 68 00:03:35,720 --> 00:03:38,440 Speaker 1: always the divide between the players and the owners when 69 00:03:38,480 --> 00:03:40,839 Speaker 1: they said at the negotiating table, you have to pay 70 00:03:40,880 --> 00:03:44,760 Speaker 1: for pitching, and this team is losing a lot of 71 00:03:44,800 --> 00:03:48,320 Speaker 1: money each year. These owners just paid. Many sports bankers 72 00:03:48,320 --> 00:03:52,240 Speaker 1: say overpaid for the team one point two billion dollars. 73 00:03:52,560 --> 00:03:55,760 Speaker 1: You only can do one of two things, increased revenue 74 00:03:56,280 --> 00:03:59,480 Speaker 1: or cut expenses. They're trying to do both and to 75 00:03:59,560 --> 00:04:01,640 Speaker 1: really him it up. I had somebody emailed me the 76 00:04:01,640 --> 00:04:03,160 Speaker 1: other day and said, who would have thought when it 77 00:04:03,240 --> 00:04:06,400 Speaker 1: was all said and done, Alex Rodriguez was gonna wind 78 00:04:06,480 --> 00:04:09,800 Speaker 1: up being more popular than Derek Jeter. So that says something. 79 00:04:11,120 --> 00:04:15,320 Speaker 1: Another topic, Louisville has fired back against the ex coach, 80 00:04:15,520 --> 00:04:18,800 Speaker 1: Rick Pettino, over the n C double A bribery scandal. Gentlemen, 81 00:04:19,000 --> 00:04:21,159 Speaker 1: this is pretty unprecedented. I mean, I can't think of 82 00:04:21,200 --> 00:04:24,000 Speaker 1: another time that a university has gone after a coach 83 00:04:24,120 --> 00:04:27,839 Speaker 1: personally for something that happened under his watch from an 84 00:04:27,920 --> 00:04:30,919 Speaker 1: n c A perspective, but it really underscores kind of 85 00:04:30,920 --> 00:04:35,000 Speaker 1: how ugly everything has gone for Rick Pattino, for Louisville, 86 00:04:35,000 --> 00:04:37,960 Speaker 1: and Rick Petino has filed suit against Adidas for ruining 87 00:04:37,960 --> 00:04:41,160 Speaker 1: his reputation. Adidas had fired him right before that suit. 88 00:04:41,520 --> 00:04:45,320 Speaker 1: After Louisville fired him, he filed suit against Louisville also 89 00:04:45,400 --> 00:04:48,599 Speaker 1: for wrongful termination. It's a pretty ugly situation. This is 90 00:04:48,640 --> 00:04:52,560 Speaker 1: beyond the dean's office. This is the FBI investigating college sports. 91 00:04:52,839 --> 00:04:57,120 Speaker 1: Who can be surprised that it is unprecedented ugliness when 92 00:04:57,160 --> 00:05:00,279 Speaker 1: we've reached that nature of all this, Oh my our 93 00:05:00,320 --> 00:05:03,000 Speaker 1: thanks to Bloomberg Business of Sports reporter Evan Novie Williams. 94 00:05:03,040 --> 00:05:05,640 Speaker 1: And now we turn to our interview with Milwaukee Bucks 95 00:05:05,640 --> 00:05:08,680 Speaker 1: president Peter Fagin. In his past as a marketing director 96 00:05:08,680 --> 00:05:13,000 Speaker 1: at Madison Square Garden, Peter Fagin certainly knows about selling 97 00:05:13,080 --> 00:05:16,120 Speaker 1: in a big market this is totally different. He is 98 00:05:16,160 --> 00:05:19,720 Speaker 1: now in small market Milwaukee. He began with the franchise 99 00:05:19,800 --> 00:05:22,520 Speaker 1: as an advisor to Mark Lazarie and West Eden's when 100 00:05:22,560 --> 00:05:24,680 Speaker 1: they were trying to purchase the team, so he certainly 101 00:05:24,720 --> 00:05:27,360 Speaker 1: knows all the financials. Peter Fagin, thanks very much for 102 00:05:27,440 --> 00:05:30,039 Speaker 1: joining us, and I'd like to start with Kareem abdul Jabar. 103 00:05:30,080 --> 00:05:32,800 Speaker 1: Of course, he began his NBA career with the Bucks 104 00:05:32,839 --> 00:05:36,520 Speaker 1: in Milwaukee, and recently he had a message about the NBA. 105 00:05:37,080 --> 00:05:40,680 Speaker 1: He says that this league is poised to become the 106 00:05:40,800 --> 00:05:45,240 Speaker 1: dominant global league, surpassing the NFL and revenue being number one. 107 00:05:45,760 --> 00:05:48,320 Speaker 1: Is he correct? Not a question in the world. I mean, 108 00:05:48,360 --> 00:05:51,960 Speaker 1: I think I think you can look at stats of participation. 109 00:05:52,080 --> 00:05:53,920 Speaker 1: I think you can look just at the media and 110 00:05:54,000 --> 00:05:56,960 Speaker 1: the broadcast stats. I mean, NBA is now broadcast and 111 00:05:57,000 --> 00:05:59,599 Speaker 1: a little bit over two hundred and fifteen countries. I 112 00:05:59,600 --> 00:06:04,839 Speaker 1: think if look at the digital um engagement around the world, um, 113 00:06:05,120 --> 00:06:08,000 Speaker 1: it literally dwarfs out of any other league. And these 114 00:06:08,080 --> 00:06:12,320 Speaker 1: leagues are you know, Major League Baseball, the NFL and 115 00:06:12,400 --> 00:06:16,200 Speaker 1: hockey are are primarily domestic you know products, and they're 116 00:06:16,200 --> 00:06:20,120 Speaker 1: consumed domestically. The NBA has hockey stick growth, you know, 117 00:06:20,160 --> 00:06:23,880 Speaker 1: on an international basis and specifically in Asia and China 118 00:06:23,960 --> 00:06:27,280 Speaker 1: where it is just exploding. Um to go. So I 119 00:06:27,600 --> 00:06:29,880 Speaker 1: I obviously agree with them, like we are in a 120 00:06:30,040 --> 00:06:34,240 Speaker 1: great time to to really leverage the strength of the NBA. Now, 121 00:06:34,279 --> 00:06:37,200 Speaker 1: this of course doesn't happen overnight. This was David Stern's 122 00:06:37,440 --> 00:06:40,800 Speaker 1: grand plan in the making. Is the major advantage that 123 00:06:40,880 --> 00:06:44,640 Speaker 1: you have participants that the best players in your league 124 00:06:44,920 --> 00:06:48,039 Speaker 1: come throughout the world. Therefore they have a natural homegrown 125 00:06:48,120 --> 00:06:50,640 Speaker 1: fan base. Yeah. I think when you have over twenty 126 00:06:50,640 --> 00:06:54,160 Speaker 1: international players that that are coming, you naturally have an 127 00:06:54,160 --> 00:06:57,159 Speaker 1: embedded fan base. You know that that hits all these 128 00:06:57,200 --> 00:07:00,800 Speaker 1: different countries and all these interest groups. So right at 129 00:07:00,839 --> 00:07:05,960 Speaker 1: that very moment, you know you don't have to manufacture fandom. Um. 130 00:07:06,000 --> 00:07:08,480 Speaker 1: You know in countries they have their guys to watch 131 00:07:08,520 --> 00:07:13,480 Speaker 1: and to follow, and it's just exploded. Speaking of players overseas, 132 00:07:13,560 --> 00:07:17,840 Speaker 1: my goodness, Johanna's onto the compo. Holy smokes, this guy 133 00:07:18,040 --> 00:07:21,680 Speaker 1: is a huge fine for Millwaller. Michael, can you say 134 00:07:21,720 --> 00:07:24,840 Speaker 1: that again? Some of that I know how to say. Michael, 135 00:07:24,880 --> 00:07:28,440 Speaker 1: you are acesuncations. I don't think you have to stay 136 00:07:28,440 --> 00:07:31,360 Speaker 1: it again. I think you are top five percent of 137 00:07:32,320 --> 00:07:33,760 Speaker 1: you know, I need him to say it so that 138 00:07:33,880 --> 00:07:35,520 Speaker 1: I know how to say. I need to do this 139 00:07:35,560 --> 00:07:38,440 Speaker 1: phonetically because I can't. I just go Greek free is 140 00:07:38,520 --> 00:07:41,840 Speaker 1: good grief, onto the Campo de compo. Okay, I got 141 00:07:41,840 --> 00:07:46,560 Speaker 1: it your question. He is the face of the franchise 142 00:07:46,680 --> 00:07:49,920 Speaker 1: and rifles there. He's becoming one of the faces of 143 00:07:49,960 --> 00:07:52,240 Speaker 1: the league. I mean, this is you know, we call it, 144 00:07:52,640 --> 00:07:55,520 Speaker 1: we call it publicly, and we call it case study wise, 145 00:07:55,560 --> 00:07:59,080 Speaker 1: like the honest effect. So we you know, Mark West 146 00:07:59,120 --> 00:08:02,200 Speaker 1: and Jamie bought this team, you know a little bit 147 00:08:02,280 --> 00:08:04,440 Speaker 1: over three and a half years ago, and uh, we 148 00:08:04,520 --> 00:08:06,600 Speaker 1: kind of didn't have that player, didn't have that effect. 149 00:08:06,720 --> 00:08:09,040 Speaker 1: We went to market and said, hey, we are going 150 00:08:09,080 --> 00:08:11,520 Speaker 1: to go local, then we're gonna go regional, then we're 151 00:08:11,520 --> 00:08:14,400 Speaker 1: gonna go national, then we're gonna go international, much like 152 00:08:14,440 --> 00:08:17,240 Speaker 1: you would attack like marketplaces to just build that base 153 00:08:17,800 --> 00:08:20,440 Speaker 1: and low and behold. The Honest effect has turned that 154 00:08:20,560 --> 00:08:23,360 Speaker 1: completely upside down. I mean, he's one of the In 155 00:08:23,440 --> 00:08:25,840 Speaker 1: a very short time. I mean last year he became 156 00:08:25,880 --> 00:08:28,080 Speaker 1: an All Star kind of out of nowhere. In a 157 00:08:28,200 --> 00:08:31,560 Speaker 1: very short time. He has changed that funnel to really 158 00:08:31,560 --> 00:08:36,040 Speaker 1: be international, national, regional, local, um and what that has 159 00:08:36,080 --> 00:08:38,720 Speaker 1: done for our awareness, what that has done for our brand, 160 00:08:39,200 --> 00:08:41,679 Speaker 1: what that's done for a parrel, sales, you name it. 161 00:08:42,040 --> 00:08:45,280 Speaker 1: The honest effect is is reality. We are chatting with 162 00:08:45,280 --> 00:08:48,160 Speaker 1: Peter Fagan, the president of the Milwaukee Bucks. Peter and 163 00:08:48,240 --> 00:08:52,880 Speaker 1: Milwaukee Bucks. Five years ago, four years ago, I'm I'm 164 00:08:52,920 --> 00:08:56,040 Speaker 1: struggling to even think they weren't great. They might have 165 00:08:56,080 --> 00:08:58,079 Speaker 1: even been a little on the irrelevant side, which is 166 00:08:58,120 --> 00:09:00,640 Speaker 1: the worst thing to be in sports. You seeing a 167 00:09:01,040 --> 00:09:04,439 Speaker 1: financial term though, they were a distressed asset. No, yeah, 168 00:09:04,480 --> 00:09:06,320 Speaker 1: I think that's what we call it. I mean, you know, 169 00:09:06,480 --> 00:09:10,520 Speaker 1: with a distressed asset with the real turnaround ability, with 170 00:09:10,600 --> 00:09:14,679 Speaker 1: an unbelievable core, a heritage of unbelievable great play, one 171 00:09:14,679 --> 00:09:17,720 Speaker 1: of the few teams with a championship, with a few 172 00:09:17,760 --> 00:09:21,000 Speaker 1: teams back back in the day with Central Division championships, 173 00:09:21,000 --> 00:09:25,960 Speaker 1: a heritage of unbelievable players, a sports crazy state, a 174 00:09:26,000 --> 00:09:29,600 Speaker 1: sports crazy town that maybe got a little apathetic, you know, 175 00:09:29,720 --> 00:09:33,439 Speaker 1: for for the last decade. And I think when Mark 176 00:09:33,480 --> 00:09:35,520 Speaker 1: and Jamie and West saw this, it was kind of 177 00:09:35,800 --> 00:09:42,120 Speaker 1: obvious that an NBA brand is just such an unbelievable 178 00:09:42,200 --> 00:09:45,680 Speaker 1: catalyst for anything, you know, for growth, for brand, for 179 00:09:45,720 --> 00:09:49,200 Speaker 1: participation in a in a major city. They just knew 180 00:09:49,200 --> 00:09:51,480 Speaker 1: what the upside was in the ability to kind of 181 00:09:51,520 --> 00:09:54,560 Speaker 1: reposition it and kind of build it from the studs 182 00:09:54,559 --> 00:09:57,320 Speaker 1: back up to a growth business. And that's kind of 183 00:09:57,320 --> 00:10:00,160 Speaker 1: what we focused on. But you can't plan or a 184 00:10:00,200 --> 00:10:02,360 Speaker 1: Greek freak, you don't know if you're going to get that. 185 00:10:02,880 --> 00:10:06,240 Speaker 1: So what did you see? What was the plan for 186 00:10:06,400 --> 00:10:10,959 Speaker 1: building that? As you said, local, regional, national, international, Well, 187 00:10:10,960 --> 00:10:12,800 Speaker 1: I think you got to start with with really what 188 00:10:12,840 --> 00:10:15,640 Speaker 1: the objectives are, right, So we went out very publicly 189 00:10:15,640 --> 00:10:18,839 Speaker 1: and said, by the way, um, with this ownership, our 190 00:10:18,880 --> 00:10:21,679 Speaker 1: goal is to win an NBA championship, and and you 191 00:10:21,720 --> 00:10:23,600 Speaker 1: know that that means a lot of things, but I 192 00:10:23,640 --> 00:10:25,520 Speaker 1: think in the public it means we're going to invest 193 00:10:25,559 --> 00:10:27,839 Speaker 1: in players, We're gonna build a culture, We're going to 194 00:10:27,920 --> 00:10:30,080 Speaker 1: really back it up on the court. And then can 195 00:10:30,160 --> 00:10:32,600 Speaker 1: you work for one second though, because everybody wants to 196 00:10:32,600 --> 00:10:34,440 Speaker 1: wear all the owners say the same thing. But the 197 00:10:34,520 --> 00:10:37,440 Speaker 1: one thing you can never guarantee the fan base is 198 00:10:37,480 --> 00:10:42,439 Speaker 1: that you're going to win. What you can guarantee is atmosphere, entertainment, 199 00:10:42,800 --> 00:10:46,280 Speaker 1: good time. Was that the focus, Well, no, the focus 200 00:10:46,280 --> 00:10:48,520 Speaker 1: we had on court focus, and then we had the 201 00:10:48,600 --> 00:10:51,559 Speaker 1: experiential and the brand focus. So you know, we also 202 00:10:51,600 --> 00:10:55,160 Speaker 1: had this great advantage in we have this rebirth opportunity 203 00:10:55,240 --> 00:10:58,880 Speaker 1: that very few sports franchises in the world get to have, 204 00:10:59,000 --> 00:11:02,040 Speaker 1: and part of that was the ability to really reimagine 205 00:11:02,200 --> 00:11:05,760 Speaker 1: a district and build an arena like in in conjunction 206 00:11:05,800 --> 00:11:08,560 Speaker 1: with the rebirth. So we were going to upgrade and 207 00:11:08,600 --> 00:11:11,960 Speaker 1: be best of class in every touch point to a fan, 208 00:11:12,080 --> 00:11:15,120 Speaker 1: whether that means the broadcast, the experiential in the arena, 209 00:11:15,280 --> 00:11:18,320 Speaker 1: and then really kind of the aspiration of in very 210 00:11:18,360 --> 00:11:21,440 Speaker 1: short term, we will be playing in the best arena 211 00:11:21,440 --> 00:11:24,160 Speaker 1: in the world with one of the most competitive teams, 212 00:11:24,480 --> 00:11:26,440 Speaker 1: with the hope to win an NBA championship. I mean, 213 00:11:26,480 --> 00:11:30,160 Speaker 1: we try to keep it very simple speaking of the arena, 214 00:11:30,480 --> 00:11:32,960 Speaker 1: and it's very clever how you guys are marketing. This 215 00:11:33,120 --> 00:11:35,440 Speaker 1: is going to open in the fall of if I 216 00:11:35,520 --> 00:11:40,559 Speaker 1: understand correctly, and you're marketing it for people in the 217 00:11:40,600 --> 00:11:44,240 Speaker 1: northern suburbs of Chicago because it's the easier route to 218 00:11:44,280 --> 00:11:48,200 Speaker 1: get there than it is for people in Chicago to 219 00:11:48,240 --> 00:11:50,440 Speaker 1: get to their arena. Yeah, I think for us, I 220 00:11:50,440 --> 00:11:53,080 Speaker 1: mean you think of just population basis. You know, for US, 221 00:11:53,440 --> 00:11:59,480 Speaker 1: southeastern Wisconsin northern Illinois are just great, great population basis 222 00:11:59,520 --> 00:12:02,160 Speaker 1: where you know, there's an opportunity for us to bring 223 00:12:02,200 --> 00:12:05,240 Speaker 1: them here for entertainment and sports without a question. And 224 00:12:05,280 --> 00:12:07,720 Speaker 1: part of what we're gonna do is really create that 225 00:12:07,800 --> 00:12:10,280 Speaker 1: magnet that hasn't been here before. So how do we 226 00:12:10,320 --> 00:12:11,959 Speaker 1: have the best of the best concerts, How do we 227 00:12:12,000 --> 00:12:14,600 Speaker 1: have a very competitive NBA team? How do we make 228 00:12:14,640 --> 00:12:17,840 Speaker 1: it a very seamless experience, you know for somebody to 229 00:12:17,920 --> 00:12:20,600 Speaker 1: drive you know, fifty minutes to an hour and fifteen 230 00:12:20,640 --> 00:12:24,520 Speaker 1: minutes to get into downtown Milwaukee, have ease of parking 231 00:12:24,920 --> 00:12:27,960 Speaker 1: and then get out, which you know could actually compete 232 00:12:28,280 --> 00:12:30,800 Speaker 1: with what it would take somebody from Lake Forest, Illinois 233 00:12:30,880 --> 00:12:34,439 Speaker 1: to to go downtown to Chicago. Can you talk about 234 00:12:34,480 --> 00:12:38,240 Speaker 1: how much of a jewel this will be for downtown Milwaukee. 235 00:12:38,320 --> 00:12:41,199 Speaker 1: This is huge, you know, it's part of downtown Milwaukee 236 00:12:41,280 --> 00:12:43,080 Speaker 1: is having a little bit of a renaissance and it's 237 00:12:43,240 --> 00:12:47,040 Speaker 1: uh and transformation. What we did was really have the 238 00:12:47,160 --> 00:12:50,160 Speaker 1: opportunity to acquire thirty acres of land on the west 239 00:12:50,200 --> 00:12:53,360 Speaker 1: side of the Milwaukee River and really create you know, 240 00:12:53,520 --> 00:12:56,160 Speaker 1: a neighborhood, you know, in a neighborhood, you know, beyond 241 00:12:56,200 --> 00:12:58,840 Speaker 1: the arena where people are gonna work, live and play, 242 00:12:58,960 --> 00:13:02,880 Speaker 1: and the arena is the jewel. Peter, you took public 243 00:13:02,920 --> 00:13:05,320 Speaker 1: money to build this new arena. How do you know 244 00:13:05,360 --> 00:13:08,480 Speaker 1: what's going to work? And what are the protections for taxpayers? Well, 245 00:13:08,520 --> 00:13:11,120 Speaker 1: the protections are easy. The taxpayers are out of the business, 246 00:13:11,120 --> 00:13:13,520 Speaker 1: are out of the arena business, you know. So they 247 00:13:13,520 --> 00:13:16,080 Speaker 1: have put it in the the arenas smacked down in 248 00:13:16,120 --> 00:13:18,600 Speaker 1: the middle of a tax and center area that that 249 00:13:18,640 --> 00:13:21,160 Speaker 1: really has already shown the return on investment in growth 250 00:13:21,240 --> 00:13:24,480 Speaker 1: that it's exploded with other developers who are starting to 251 00:13:24,480 --> 00:13:26,800 Speaker 1: build around it. And uh, you know, I talked to 252 00:13:26,840 --> 00:13:28,600 Speaker 1: a lot of I talked to a lot of business schools. 253 00:13:28,600 --> 00:13:30,679 Speaker 1: I talked to real estate people, and I talked to 254 00:13:30,720 --> 00:13:33,800 Speaker 1: the economists to who kind of doubt what the catalyst 255 00:13:33,840 --> 00:13:35,840 Speaker 1: effect of a sports arena is. And I think the 256 00:13:35,880 --> 00:13:38,800 Speaker 1: biggest difference from all the case studies is a lot 257 00:13:38,840 --> 00:13:41,560 Speaker 1: of arenas, you know, over the last decade, had been 258 00:13:41,559 --> 00:13:44,319 Speaker 1: built on islands, you know, kind of by themselves. The 259 00:13:44,320 --> 00:13:48,360 Speaker 1: difference here is the arena is certainly the centerpiece of 260 00:13:48,400 --> 00:13:52,160 Speaker 1: the development. But having thousands of people live in the area, 261 00:13:52,280 --> 00:13:55,760 Speaker 1: work in the area, eating the area, have retail events 262 00:13:55,920 --> 00:13:59,800 Speaker 1: activating you know, over two fifty plus events outside and 263 00:13:59,800 --> 00:14:04,480 Speaker 1: then side kind of changes that paradigm of justin arena. 264 00:14:04,559 --> 00:14:07,000 Speaker 1: So that's really part of the strategy is like the 265 00:14:07,600 --> 00:14:10,280 Speaker 1: success or failure of the arena really has to do 266 00:14:10,440 --> 00:14:13,239 Speaker 1: with the density and how we populate the entire neighborhood 267 00:14:13,240 --> 00:14:16,600 Speaker 1: around it. We're talking with Peter Fagan, the president of 268 00:14:16,720 --> 00:14:21,360 Speaker 1: the NBA's Milwaukee Bucks. And yes, there is the naming 269 00:14:21,480 --> 00:14:24,200 Speaker 1: rights deal that you're trying to get. You're looking from 270 00:14:24,600 --> 00:14:26,960 Speaker 1: millions of dollars, what between seven of the ten million 271 00:14:27,000 --> 00:14:30,000 Speaker 1: per year, right and and looking for about a twenty 272 00:14:30,080 --> 00:14:32,960 Speaker 1: year term and uh, going after the categories that you 273 00:14:33,000 --> 00:14:37,200 Speaker 1: would think, you know, in technology and insurance and payment systems. 274 00:14:37,240 --> 00:14:40,240 Speaker 1: And it's such an interesting world now, um, you know 275 00:14:40,280 --> 00:14:44,480 Speaker 1: that's becoming larger in the in the swatch of international 276 00:14:44,480 --> 00:14:47,640 Speaker 1: companies but smaller and a lot of domestic companies that 277 00:14:47,680 --> 00:14:50,840 Speaker 1: are looking for that international reach. And and the sale 278 00:14:50,880 --> 00:14:55,120 Speaker 1: is like very interesting because people understand how we started 279 00:14:55,160 --> 00:14:57,520 Speaker 1: this interview with like the platform of the NBA kind 280 00:14:57,520 --> 00:15:01,000 Speaker 1: of growing internationally. People understand that value of what those 281 00:15:01,040 --> 00:15:04,480 Speaker 1: international impressions mean with the strength of being like a 282 00:15:04,560 --> 00:15:09,200 Speaker 1: domestic NBA brand. We can't call it Scott Mike Stadium. 283 00:15:09,240 --> 00:15:13,120 Speaker 1: But can you give us some insight? Guy, you don't, 284 00:15:13,480 --> 00:15:16,080 Speaker 1: don't shreat yourselves. If you have if you if you 285 00:15:16,160 --> 00:15:18,360 Speaker 1: have the money, you can call Michael bar Is so 286 00:15:18,480 --> 00:15:21,800 Speaker 1: strong internationally already he's got no interest in this. But 287 00:15:21,800 --> 00:15:24,360 Speaker 1: you're down to two realistic you're down to two. Let's 288 00:15:24,400 --> 00:15:26,440 Speaker 1: put him against each other right here. Who You got 289 00:15:27,040 --> 00:15:32,320 Speaker 1: two very viable, great competitive companies in their own sectors 290 00:15:32,400 --> 00:15:35,400 Speaker 1: that either or would just be great partners. But nobody 291 00:15:35,400 --> 00:15:37,360 Speaker 1: slaps the name on the arena and that's it anymore. 292 00:15:37,400 --> 00:15:39,320 Speaker 1: That used I mean, that's that used to be the 293 00:15:39,320 --> 00:15:41,000 Speaker 1: way it worked. That you here, we'll take your money, 294 00:15:41,000 --> 00:15:43,880 Speaker 1: We'll put your name on the arena. These are integrated relationships. 295 00:15:43,880 --> 00:15:46,400 Speaker 1: Now I'm guessing both want so much more. Yes, so 296 00:15:46,520 --> 00:15:48,840 Speaker 1: much more. I mean, you've got to think about the integration. 297 00:15:49,360 --> 00:15:51,440 Speaker 1: You know, if it's a tech company, what the integration 298 00:15:51,520 --> 00:15:53,960 Speaker 1: is on technology, what is on broadcast, what is on 299 00:15:54,080 --> 00:15:57,280 Speaker 1: social and media and digital? You've got to think about 300 00:15:57,280 --> 00:15:59,800 Speaker 1: the physical assets, you know, what the integration looks like 301 00:16:00,040 --> 00:16:02,440 Speaker 1: at and then you've got to kind of, you know, 302 00:16:02,560 --> 00:16:05,880 Speaker 1: really create a deal that's a little bit flexible because 303 00:16:05,880 --> 00:16:08,360 Speaker 1: the world changes every three to five years, So how 304 00:16:08,400 --> 00:16:10,840 Speaker 1: do you how do you figure that out when you 305 00:16:10,920 --> 00:16:14,520 Speaker 1: pivot on leveraging assets and I P from the team. 306 00:16:14,560 --> 00:16:17,960 Speaker 1: So it's it's it's really interesting, and all the media 307 00:16:18,000 --> 00:16:22,320 Speaker 1: buyers have become very sophisticated. So I think they always 308 00:16:22,360 --> 00:16:27,760 Speaker 1: equated impressions to dollars, but now they're really equating where 309 00:16:27,800 --> 00:16:30,880 Speaker 1: where it is internationally, where it is domestically, where it 310 00:16:30,920 --> 00:16:33,760 Speaker 1: is locally, as well as the value of of the 311 00:16:33,760 --> 00:16:37,880 Speaker 1: physical assets over time and the and the partnership with 312 00:16:38,120 --> 00:16:41,920 Speaker 1: the I P of a protein. So it's fascinating. I 313 00:16:41,920 --> 00:16:45,160 Speaker 1: wish the process would go a lot faster, but it 314 00:16:45,200 --> 00:16:47,560 Speaker 1: will be a good process and we'll have a great partner. 315 00:16:47,600 --> 00:16:50,280 Speaker 1: They're chatting with Peter Fagan, the president of the Milwaukee Bucks, 316 00:16:50,280 --> 00:16:53,040 Speaker 1: and Peter, you were at Marquee Jet. You led the 317 00:16:53,040 --> 00:16:55,600 Speaker 1: acquisition by net Jets. Of course that was controlled by 318 00:16:55,680 --> 00:17:00,320 Speaker 1: Bercher Hathaway and Warren Buffett. The modus operandi of Warren 319 00:17:00,320 --> 00:17:05,160 Speaker 1: Buffett is find businesses that work, leave them alone, support 320 00:17:05,200 --> 00:17:06,679 Speaker 1: them the best I can, and let them do what 321 00:17:06,720 --> 00:17:09,040 Speaker 1: they do is that the same with Mark Lazarie and 322 00:17:09,080 --> 00:17:11,720 Speaker 1: west Eden's well and Jamie Dining, you know, so I 323 00:17:11,760 --> 00:17:14,000 Speaker 1: think the three of them, you know, you know, it 324 00:17:14,160 --> 00:17:17,600 Speaker 1: is the most fascinating. It's the greatest board of directors 325 00:17:17,600 --> 00:17:21,640 Speaker 1: and ownership in the world because they're both extremely They're 326 00:17:21,640 --> 00:17:23,879 Speaker 1: all three of them are extremely different. So you've got 327 00:17:23,960 --> 00:17:27,359 Speaker 1: Jamie Dining a York Capital who's, you know, an equity guy. 328 00:17:27,440 --> 00:17:31,200 Speaker 1: You've got Mark Lazariet Avenue Capital, who's really a distress guy. 329 00:17:31,560 --> 00:17:33,639 Speaker 1: And then you've got west Eden's at Fortress who's a 330 00:17:33,680 --> 00:17:37,360 Speaker 1: private equity guy. And you guys understand what those mindsets are, 331 00:17:37,400 --> 00:17:39,680 Speaker 1: which are which are really different? Well, to be careful though, 332 00:17:39,680 --> 00:17:41,800 Speaker 1: the private equity guy wants a nice return in seven 333 00:17:41,840 --> 00:17:44,240 Speaker 1: years and then gets out. But that I'm guessing in 334 00:17:44,240 --> 00:17:46,639 Speaker 1: pro sports that might not be the case. Well, I 335 00:17:46,640 --> 00:17:48,359 Speaker 1: think in pro sports you look at the let you 336 00:17:48,359 --> 00:17:50,920 Speaker 1: look at the enterprise value and kind of like how 337 00:17:50,960 --> 00:17:53,160 Speaker 1: the valuations have gone up. So I don't think Wes 338 00:17:53,240 --> 00:17:55,960 Speaker 1: is is west isn't so keen on the five year 339 00:17:56,520 --> 00:17:59,600 Speaker 1: on the five here turn on looking at but all 340 00:17:59,640 --> 00:18:03,240 Speaker 1: of the um, all of them run businesses, all of 341 00:18:03,280 --> 00:18:05,880 Speaker 1: them have been very successful and all of them are 342 00:18:06,000 --> 00:18:10,480 Speaker 1: unbelievably helpful when we really scale and scope and create 343 00:18:10,480 --> 00:18:13,399 Speaker 1: an organization or process to do it. So I always 344 00:18:13,440 --> 00:18:17,239 Speaker 1: explain them as like the greatest resources UM that that 345 00:18:17,359 --> 00:18:20,120 Speaker 1: that I've ever been and they're kind of people ask 346 00:18:20,200 --> 00:18:22,240 Speaker 1: what they're like and I say, oh, that's pretty easy 347 00:18:22,320 --> 00:18:27,800 Speaker 1: it Occasionally they're pleased and they're never satisfied UM, which 348 00:18:27,840 --> 00:18:29,679 Speaker 1: is a fun place. Like if you're if you like 349 00:18:29,880 --> 00:18:32,640 Speaker 1: that and you like growth and you like to challenge, 350 00:18:32,760 --> 00:18:35,000 Speaker 1: like I love it. It's a It's a great way 351 00:18:35,000 --> 00:18:38,840 Speaker 1: to be managed. The sports industry is really taking off. 352 00:18:38,880 --> 00:18:41,680 Speaker 1: Can we talk about your involvement with the two K League? 353 00:18:42,200 --> 00:18:44,560 Speaker 1: I think when you talk about where the growth is 354 00:18:44,600 --> 00:18:46,520 Speaker 1: and kind of how the NBA is on the cutting 355 00:18:46,600 --> 00:18:49,280 Speaker 1: edge and has the finger on the pulse, really the 356 00:18:49,400 --> 00:18:51,960 Speaker 1: NBA two K League, which is a joint venture between 357 00:18:51,960 --> 00:18:55,560 Speaker 1: the NBA and Take two Interactive UM, is going to 358 00:18:55,640 --> 00:18:57,800 Speaker 1: blow things away. I mean, as you can imagine, we 359 00:18:57,840 --> 00:19:00,600 Speaker 1: have two twenty something year olds, you know, managing this 360 00:19:00,600 --> 00:19:02,320 Speaker 1: this product. I look at them every day and I 361 00:19:02,359 --> 00:19:04,560 Speaker 1: can't believe it to say, like, you know, in sixth 362 00:19:04,640 --> 00:19:08,399 Speaker 1: eight months, our NBA two K team will literally have 363 00:19:08,920 --> 00:19:12,480 Speaker 1: tens of millions of views, interactions, engagements, and do this, 364 00:19:12,640 --> 00:19:15,040 Speaker 1: which is a little bit more than your forty people 365 00:19:15,240 --> 00:19:19,119 Speaker 1: you know watching on local you know, watching a Bucks game. Uh, 366 00:19:19,240 --> 00:19:21,640 Speaker 1: to do it. So you talk about you talk about 367 00:19:21,640 --> 00:19:25,520 Speaker 1: the unbelievable platform of brand extension. You talk about the 368 00:19:25,560 --> 00:19:29,480 Speaker 1: ability to really target these like twelve to thirty five 369 00:19:29,560 --> 00:19:32,840 Speaker 1: year olds that that are tough you know, market people, 370 00:19:32,880 --> 00:19:35,719 Speaker 1: to really get to be sticky and engaged in the product. 371 00:19:36,160 --> 00:19:38,600 Speaker 1: This will be this is gonna be incredible on We 372 00:19:38,760 --> 00:19:44,080 Speaker 1: opted in immediately with like sixteen other NBA teams, um 373 00:19:44,240 --> 00:19:46,840 Speaker 1: to to start this league, and we've got huge promise 374 00:19:46,920 --> 00:19:50,680 Speaker 1: in it. I mean we think, we think obviously, um, 375 00:19:50,720 --> 00:19:53,000 Speaker 1: you know, the two K league is just going to 376 00:19:53,080 --> 00:19:57,479 Speaker 1: be astronomically successful, you know, with thirty to forty million 377 00:19:58,040 --> 00:20:00,960 Speaker 1: NBA two K players around the world all ready. I 378 00:20:01,000 --> 00:20:03,440 Speaker 1: have a thirteen year old who beat the living snot 379 00:20:03,480 --> 00:20:09,560 Speaker 1: out of me playing NBA on online and I can't. 380 00:20:09,240 --> 00:20:11,240 Speaker 1: I have a tough time trying to follow it. But 381 00:20:11,480 --> 00:20:14,040 Speaker 1: I have to tell them. One of the requirements to 382 00:20:14,200 --> 00:20:18,000 Speaker 1: play is that players must be at least eighteen years old, right, 383 00:20:18,080 --> 00:20:22,240 Speaker 1: That is literally only the only restriction. So imagine a 384 00:20:22,280 --> 00:20:27,200 Speaker 1: league that just has age of eighteen, but literally on gender. Uh, 385 00:20:27,280 --> 00:20:30,399 Speaker 1: for guys like me under six ft there's no height restriction. 386 00:20:30,920 --> 00:20:32,600 Speaker 1: There's like I mean, you've got guys who are gonna 387 00:20:32,600 --> 00:20:34,920 Speaker 1: actually be m v P you know, m v P 388 00:20:35,080 --> 00:20:37,840 Speaker 1: of the league's you know, women men. I mean, this 389 00:20:38,000 --> 00:20:41,720 Speaker 1: is gonna really redefine like engagement with the NBA. And 390 00:20:41,960 --> 00:20:43,800 Speaker 1: by the way, Michael, I mean it's a great point 391 00:20:44,160 --> 00:20:47,040 Speaker 1: because you know what's happening now is you and I 392 00:20:47,080 --> 00:20:49,760 Speaker 1: have have kids, you know, around the same age. It's 393 00:20:49,880 --> 00:20:54,240 Speaker 1: are it's our understanding, like we know this exists and 394 00:20:54,280 --> 00:20:57,480 Speaker 1: they're engaged, and like, how does it evolve? This whole 395 00:20:57,520 --> 00:21:01,040 Speaker 1: generation of parents now has to capture the fact that 396 00:21:01,080 --> 00:21:03,439 Speaker 1: this is such a real thing. I mean, like it 397 00:21:03,560 --> 00:21:06,280 Speaker 1: or not. You know, kids are engaged over ninety minutes today, 398 00:21:06,400 --> 00:21:10,120 Speaker 1: you know, playing multiple games and like interacting with other 399 00:21:10,160 --> 00:21:12,920 Speaker 1: competitors around the world. We're chatting with Peter Fagan, the 400 00:21:12,920 --> 00:21:15,160 Speaker 1: president of the Milwaukee Bucks, and Peter, you're building an arena. 401 00:21:15,240 --> 00:21:17,399 Speaker 1: So this I want to ask you because we're talking 402 00:21:17,440 --> 00:21:21,160 Speaker 1: about scale. And for instance, the NBA has a deal 403 00:21:21,200 --> 00:21:24,240 Speaker 1: now with Twitch where they'll show g League games, but 404 00:21:24,400 --> 00:21:27,479 Speaker 1: clearly that's just a testing ground for what the NBA 405 00:21:27,640 --> 00:21:31,119 Speaker 1: might do in the future. If the future of media 406 00:21:31,520 --> 00:21:34,439 Speaker 1: is scale and whether they're all the tech companies are 407 00:21:34,440 --> 00:21:37,920 Speaker 1: getting involved. We know that does that diminish the importance 408 00:21:38,280 --> 00:21:41,000 Speaker 1: of sitting in the building and and filling that building 409 00:21:41,040 --> 00:21:43,400 Speaker 1: every night now, because I don't think there's a difference 410 00:21:43,440 --> 00:21:46,320 Speaker 1: of the live experience. I think you've got to certainly 411 00:21:46,400 --> 00:21:48,600 Speaker 1: kind of adjust to what the live experiences. I mean 412 00:21:48,600 --> 00:21:52,280 Speaker 1: when you walk into this new arena. It's not by mistake. 413 00:21:52,320 --> 00:21:54,560 Speaker 1: We have an open concourse. You know, in our open 414 00:21:54,600 --> 00:21:58,560 Speaker 1: concourse is is literally how it sounds, it's it's it's uh, 415 00:21:58,600 --> 00:22:02,360 Speaker 1: it's concourses with thousand people can actually socialize. They can 416 00:22:02,400 --> 00:22:04,880 Speaker 1: sit on a drink rail, they consider at an anchor bar, 417 00:22:05,240 --> 00:22:08,359 Speaker 1: actually still see, watch and feel the game. It's like 418 00:22:08,440 --> 00:22:12,960 Speaker 1: why we've created clubs and platforms like in the Sky 419 00:22:13,080 --> 00:22:16,920 Speaker 1: for social interaction, because it's just kind of where this 420 00:22:17,000 --> 00:22:20,240 Speaker 1: is going. But nothing, you know, we'll ever take away 421 00:22:20,320 --> 00:22:23,200 Speaker 1: from the live experience. And I think basketball has a 422 00:22:23,240 --> 00:22:26,080 Speaker 1: great advantage of you know, for two and a half hours, 423 00:22:26,600 --> 00:22:29,639 Speaker 1: you know there's there's real live excitement, which which you 424 00:22:29,720 --> 00:22:34,760 Speaker 1: can't recreate on on television and for us, just what 425 00:22:34,840 --> 00:22:37,119 Speaker 1: you kind of mentioned a little bit before, Scott, the 426 00:22:37,160 --> 00:22:39,320 Speaker 1: experiential is a big deal. So how do we make 427 00:22:39,359 --> 00:22:44,160 Speaker 1: everything between the basketball plays so special, so great? I mean, 428 00:22:44,160 --> 00:22:46,800 Speaker 1: if you ask us as marketers, win or lose, we 429 00:22:46,840 --> 00:22:50,160 Speaker 1: want people to leave the arena in any arena stadium 430 00:22:50,240 --> 00:22:52,879 Speaker 1: and say, Wow, I want to come back here. I 431 00:22:52,960 --> 00:22:58,560 Speaker 1: had great food, this is a great environment, friendly, clean, nice. 432 00:22:58,960 --> 00:23:01,679 Speaker 1: I want to come back and uh, and the winning 433 00:23:01,680 --> 00:23:05,119 Speaker 1: are losing at least in the experiential doesn't really affect it. 434 00:23:05,440 --> 00:23:09,399 Speaker 1: I bring this up to every professional sports executive owner 435 00:23:09,440 --> 00:23:13,160 Speaker 1: who's building a new arena. The best experience in sport 436 00:23:14,040 --> 00:23:18,840 Speaker 1: is Cameron Indoor Stadium for two hours. Those kids, and 437 00:23:18,880 --> 00:23:23,199 Speaker 1: I say kids, what one though? I think I'm at 438 00:23:23,200 --> 00:23:26,600 Speaker 1: the age now where I can say those kids, by 439 00:23:26,640 --> 00:23:29,920 Speaker 1: the way, they should be right in the wheelhouse of technology, 440 00:23:30,000 --> 00:23:32,399 Speaker 1: they should be on their their phones. They should be 441 00:23:32,680 --> 00:23:34,920 Speaker 1: unable to put that thing down. But if you look 442 00:23:34,920 --> 00:23:38,040 Speaker 1: at the student section at Cameron during games, they're all 443 00:23:38,119 --> 00:23:40,440 Speaker 1: jumping up and down. Nobody goes for the phone. Is 444 00:23:40,480 --> 00:23:44,119 Speaker 1: it possible to recreate that atmosphere in professional sports? I 445 00:23:44,160 --> 00:23:46,520 Speaker 1: think it's tough. I think it's like you always you know, 446 00:23:46,600 --> 00:23:49,600 Speaker 1: now it's adaptability. So by default we've got to be 447 00:23:49,640 --> 00:23:53,400 Speaker 1: the most technologically advanced. We've got to have the most bandwidth, 448 00:23:53,760 --> 00:23:56,040 Speaker 1: you know on WiFi. We've got to understand that their 449 00:23:56,080 --> 00:23:59,800 Speaker 1: second screen watching your app has to be a plick 450 00:23:59,840 --> 00:24:02,919 Speaker 1: a bowl to two beacons and being able to shop 451 00:24:02,960 --> 00:24:05,919 Speaker 1: and eat your food. But I think the way you 452 00:24:05,960 --> 00:24:09,040 Speaker 1: really direct things that the stage is the court and 453 00:24:09,160 --> 00:24:11,600 Speaker 1: basketball is a game, and how do you get people? 454 00:24:11,600 --> 00:24:14,160 Speaker 1: And we had a meeting the other day for for 455 00:24:14,280 --> 00:24:17,159 Speaker 1: ninety minutes, which is a very long meeting for me 456 00:24:17,520 --> 00:24:21,280 Speaker 1: to really talk about the issue of how do we design, 457 00:24:21,400 --> 00:24:23,680 Speaker 1: how do we alert, how do we get people back 458 00:24:23,720 --> 00:24:26,560 Speaker 1: to their seats at halftime. I don't know if you've 459 00:24:26,600 --> 00:24:28,719 Speaker 1: been watching NBA games or what you see, you know, 460 00:24:29,040 --> 00:24:31,800 Speaker 1: the better the social atmosphere you make, the better the clubs, 461 00:24:31,800 --> 00:24:34,119 Speaker 1: the better everything. People sometimes don't get back to their 462 00:24:34,119 --> 00:24:37,280 Speaker 1: seats till the end of the third quarter, you know, 463 00:24:37,320 --> 00:24:39,080 Speaker 1: to get it done. And we want people to be 464 00:24:39,280 --> 00:24:42,480 Speaker 1: activated about the live entertainment, so what are ways to 465 00:24:42,760 --> 00:24:44,399 Speaker 1: get them done? So I think it's our top of 466 00:24:44,480 --> 00:24:48,320 Speaker 1: mind is how do we still keep the main focus 467 00:24:48,720 --> 00:24:52,520 Speaker 1: on basketball, make it exciting and the product is a game. Well, 468 00:24:52,560 --> 00:24:54,639 Speaker 1: the Atlanta Hawks think they have a way to solve it. 469 00:24:54,680 --> 00:24:56,840 Speaker 1: They put the club right next to the court. Any 470 00:24:56,880 --> 00:25:00,720 Speaker 1: features like that that we're looking forward to, perhaps you'll experiment. Well, 471 00:25:00,840 --> 00:25:03,080 Speaker 1: we'll have features where people at the clubs can actually 472 00:25:03,080 --> 00:25:06,119 Speaker 1: still watch the games. We'll have features where it's like 473 00:25:06,200 --> 00:25:10,320 Speaker 1: accessibility is really easy, like nowhere in this arena, you know, 474 00:25:10,359 --> 00:25:13,520 Speaker 1: are you walking you know, halfway around or three quarters 475 00:25:13,560 --> 00:25:16,200 Speaker 1: around to kind of get to a destination. It's very 476 00:25:16,320 --> 00:25:19,480 Speaker 1: open um to get it. So yeah, I would say, 477 00:25:19,800 --> 00:25:23,480 Speaker 1: you know, on ease of use and uh and activity, 478 00:25:23,760 --> 00:25:28,120 Speaker 1: this is purely designed like on that thoughtful critical path 479 00:25:28,680 --> 00:25:32,120 Speaker 1: for the fan. Not a question. We're talking with Peter Fagan, 480 00:25:32,240 --> 00:25:34,760 Speaker 1: the president of the Milwaukee Bucks. I wanna talk about 481 00:25:34,760 --> 00:25:36,560 Speaker 1: you for a second because you grew up right here 482 00:25:36,560 --> 00:25:40,520 Speaker 1: in Manhattan. Your mom was a top executive for Gray Advertising. 483 00:25:41,040 --> 00:25:43,600 Speaker 1: And kudos to you because you worked very hard not 484 00:25:43,680 --> 00:25:47,000 Speaker 1: to be considered an outsider in Milwaukee. You really worked 485 00:25:47,000 --> 00:25:51,159 Speaker 1: hard with the business and political sectors in Milwaukee. Can 486 00:25:51,200 --> 00:25:53,840 Speaker 1: you take us through that experience. Yeah, I think you 487 00:25:53,840 --> 00:25:55,960 Speaker 1: don't have to be in Milwaukee for an hour to 488 00:25:56,040 --> 00:25:59,359 Speaker 1: understand how important like being a fat being ingrained in 489 00:25:59,359 --> 00:26:02,480 Speaker 1: the fabric of community. I mean, this is although it's 490 00:26:02,520 --> 00:26:05,159 Speaker 1: a you know, a relatively large city with a million 491 00:26:05,200 --> 00:26:08,199 Speaker 1: people and and uh you know, even larger if you 492 00:26:08,240 --> 00:26:10,600 Speaker 1: take the seven counties. I mean, this is a town, 493 00:26:10,920 --> 00:26:14,000 Speaker 1: you know, and people are very close. You know, it's 494 00:26:14,040 --> 00:26:17,119 Speaker 1: a very big adjustment when you when you meet somebody, 495 00:26:17,119 --> 00:26:19,359 Speaker 1: there's a pretty good chance like you'll see them at 496 00:26:19,359 --> 00:26:23,320 Speaker 1: breakfast at some point in the next two weeks. Um 497 00:26:23,359 --> 00:26:25,400 Speaker 1: to get it to just tell you what that's like. So, 498 00:26:25,960 --> 00:26:30,040 Speaker 1: and this is about setting expectations. This is about building equity. 499 00:26:30,560 --> 00:26:32,560 Speaker 1: And you know, when we sat down and talked, you know, 500 00:26:32,600 --> 00:26:35,880 Speaker 1: with my owners, we just said, this is all literally 501 00:26:36,200 --> 00:26:39,159 Speaker 1: hand to hand combat. So we spent you know, the 502 00:26:39,240 --> 00:26:43,119 Speaker 1: last three years building relationships, really going out. It is 503 00:26:43,160 --> 00:26:47,320 Speaker 1: all personalized. People. People here, and I say it as 504 00:26:47,359 --> 00:26:50,159 Speaker 1: a positive. You know, are very provincial, you know, like 505 00:26:50,200 --> 00:26:52,480 Speaker 1: if you weren't if you haven't been in the city 506 00:26:52,480 --> 00:26:55,679 Speaker 1: of Milwaukee for twenty years, like you're not from Milwaukee, 507 00:26:55,760 --> 00:26:57,919 Speaker 1: you know, if you're from Oshkosh, you you might be 508 00:26:57,960 --> 00:27:01,320 Speaker 1: an outside or two to Milwaukee, which I find always 509 00:27:01,320 --> 00:27:04,680 Speaker 1: funny to get it to. For us, it was really 510 00:27:04,720 --> 00:27:07,800 Speaker 1: to have a plan on the grassroots and community side 511 00:27:08,200 --> 00:27:09,720 Speaker 1: and not only do it but blow it out of 512 00:27:09,760 --> 00:27:12,920 Speaker 1: the park, make it sustainable, and really bring it into 513 00:27:12,960 --> 00:27:17,040 Speaker 1: the community. And our community actions across the state are 514 00:27:17,080 --> 00:27:21,000 Speaker 1: really also the strategy to how we build that fandom 515 00:27:21,119 --> 00:27:25,679 Speaker 1: um around Wisconsin. Well, Peter, you called Milwaukee segregated a 516 00:27:25,680 --> 00:27:27,840 Speaker 1: couple of years ago, and I mean you walked it 517 00:27:27,840 --> 00:27:29,400 Speaker 1: back a little bit. But if it is it is, 518 00:27:29,640 --> 00:27:32,120 Speaker 1: do you see the team as a unifying factor without 519 00:27:32,160 --> 00:27:33,760 Speaker 1: a question? I mean, I think when you look at 520 00:27:33,880 --> 00:27:37,359 Speaker 1: NBA teams and take the Milwaukee Bucks example, it is 521 00:27:37,520 --> 00:27:41,639 Speaker 1: physically one of the only melting pots like in the state. 522 00:27:41,800 --> 00:27:45,680 Speaker 1: Like you come to a Bucks game. It is the 523 00:27:45,680 --> 00:27:50,680 Speaker 1: the aggregation of of such a mix of of race, 524 00:27:50,760 --> 00:27:54,359 Speaker 1: of gender, of age, um. It really is kind of 525 00:27:54,400 --> 00:27:58,159 Speaker 1: a vibrant, diverse place physically, it literally is. And I 526 00:27:58,160 --> 00:28:01,359 Speaker 1: think when you talk about NBA teams, and Adam Silver 527 00:28:01,400 --> 00:28:04,080 Speaker 1: has talked about this and David Stern did before, we 528 00:28:04,160 --> 00:28:07,280 Speaker 1: can really be a catalyst, um, you know, for change 529 00:28:07,280 --> 00:28:11,320 Speaker 1: in the communities. Because you have so many kids who 530 00:28:11,359 --> 00:28:14,360 Speaker 1: really aspire, you know, and look up to and want 531 00:28:14,400 --> 00:28:17,119 Speaker 1: to be attached to the NBA. How do you in 532 00:28:17,160 --> 00:28:21,600 Speaker 1: a very smart strategic way, take that likability and that 533 00:28:21,680 --> 00:28:27,000 Speaker 1: passion and really affect change. Peter Fagan, the president of 534 00:28:27,000 --> 00:28:29,840 Speaker 1: the Milwaukee Bucks, you are so kind to talk with us. 535 00:28:29,840 --> 00:28:33,520 Speaker 1: Thank you, sir. Oh guys, a pleasure anytime. Takeaways. Let's 536 00:28:33,520 --> 00:28:36,399 Speaker 1: start with a man who was born in New York City. 537 00:28:36,440 --> 00:28:39,640 Speaker 1: His mom was a top executive in New York City. 538 00:28:40,000 --> 00:28:43,840 Speaker 1: He went to Milwaukee and integrated himself in the community, 539 00:28:43,920 --> 00:28:47,080 Speaker 1: in the business world, and he has really taken off 540 00:28:47,160 --> 00:28:51,400 Speaker 1: and this brand new arena. I am truly impressed with this, gentleman. 541 00:28:51,520 --> 00:28:54,200 Speaker 1: It's a real estate play in Milwaukee. It's a catalyst 542 00:28:54,280 --> 00:28:57,520 Speaker 1: for everything for the franchise from the financial side of things. 543 00:28:57,560 --> 00:28:59,720 Speaker 1: But I'm most impressed with the fact that you can 544 00:28:59,720 --> 00:29:02,160 Speaker 1: print down so easily Greek Freak's last name. Do it 545 00:29:02,160 --> 00:29:05,920 Speaker 1: for me one more time at de Compo. Very very good. 546 00:29:05,960 --> 00:29:08,560 Speaker 1: I could not do that before this interview, so you 547 00:29:08,600 --> 00:29:11,920 Speaker 1: impressed me there. But it really shows, Michael, when you're 548 00:29:11,920 --> 00:29:15,479 Speaker 1: putting a roster together, all things being equal, if you 549 00:29:15,520 --> 00:29:19,720 Speaker 1: can have a player from outside the US, that could 550 00:29:19,800 --> 00:29:22,560 Speaker 1: be the difference maker because it gives you so many 551 00:29:22,600 --> 00:29:26,200 Speaker 1: more marketing opportunities. The Bucks numbers if you look at 552 00:29:26,200 --> 00:29:29,920 Speaker 1: their social if you look at their digital outside the US, 553 00:29:29,960 --> 00:29:32,680 Speaker 1: more than half of it outside the US, and it's 554 00:29:32,720 --> 00:29:37,560 Speaker 1: because of one player. That will drive international interest, it 555 00:29:37,600 --> 00:29:40,880 Speaker 1: will drive revenue. It's exactly the game plan the NBA 556 00:29:40,920 --> 00:29:45,920 Speaker 1: has set forth. It feels better to be a number 557 00:29:45,920 --> 00:29:47,960 Speaker 1: one than number five. I'll wear a number because of Mike. 558 00:29:48,080 --> 00:29:49,600 Speaker 1: We have a chance to go for three in a row, 559 00:29:49,640 --> 00:29:51,560 Speaker 1: good numbers in a a good time. And let's first started 560 00:29:51,600 --> 00:29:55,000 Speaker 1: wearing the number. I would just have the floomberg business 561 00:29:55,040 --> 00:29:59,160 Speaker 1: of sports, the number of the week. Time. Now with 562 00:29:59,240 --> 00:30:01,960 Speaker 1: the number of the week, you're going to figure this 563 00:30:02,000 --> 00:30:07,600 Speaker 1: one out. Two hundred sixteen thousand, two h sixteen I 564 00:30:07,720 --> 00:30:09,880 Speaker 1: I told you before I was going to use the 565 00:30:09,880 --> 00:30:14,600 Speaker 1: word flummix. Book guest here, I really have no idea. 566 00:30:15,080 --> 00:30:20,200 Speaker 1: That is the amount in dollars. Lu Garrig's nineteen contract 567 00:30:20,200 --> 00:30:22,440 Speaker 1: with the New York Yankees sold for in an auction. 568 00:30:23,760 --> 00:30:28,320 Speaker 1: Contract was part of a Yankees legend offering by Heritage Auctions. 569 00:30:28,440 --> 00:30:32,680 Speaker 1: By the way, Derek Jeter, he was also part of 570 00:30:32,720 --> 00:30:38,600 Speaker 1: this how his nineteen ninety two Reports Scouting report on 571 00:30:38,640 --> 00:30:41,080 Speaker 1: what he was doing at that time when he played 572 00:30:41,200 --> 00:30:46,160 Speaker 1: high school in Kalamazoo Michigan and according to the scout 573 00:30:46,880 --> 00:30:50,920 Speaker 1: he wrote that Jeter quote a Yankee, a five tool 574 00:30:51,000 --> 00:30:55,680 Speaker 1: player will be mL start plus five. I remember the 575 00:30:55,680 --> 00:30:59,120 Speaker 1: scouting report when it says five tool player. Nowadays it 576 00:30:59,120 --> 00:31:02,080 Speaker 1: would say he had warp of this and this percentage 577 00:31:02,080 --> 00:31:04,480 Speaker 1: of that. Could you imagine the scouting report for Derry Jeter? 578 00:31:04,600 --> 00:31:07,600 Speaker 1: Now it would be all analytics and by the way, 579 00:31:08,160 --> 00:31:09,960 Speaker 1: you know a wonderful leader as well, but it would 580 00:31:10,000 --> 00:31:12,520 Speaker 1: be all analytics. And I should add that that scouting 581 00:31:12,560 --> 00:31:16,080 Speaker 1: report went for one hundred two thousand dollars. That's some 582 00:31:16,280 --> 00:31:19,240 Speaker 1: pretty good scouting report. I'm telling you. That's that's your money, man. 583 00:31:19,400 --> 00:31:22,600 Speaker 1: Yeah right. I wish you've been listening to Bloomberg Business 584 00:31:22,600 --> 00:31:24,920 Speaker 1: of Sports. We are here each and every week at 585 00:31:24,920 --> 00:31:27,080 Speaker 1: the same time, exploring the world of money and sports. 586 00:31:27,280 --> 00:31:29,640 Speaker 1: Michael barn Hey, I'm Scott Sasnik. Thanks for joining us, 587 00:31:29,640 --> 00:31:31,400 Speaker 1: and please tune in next week when we speak with 588 00:31:31,440 --> 00:31:33,600 Speaker 1: the biggest and brightest in the world of sports business. 589 00:31:34,040 --> 00:31:37,360 Speaker 1: You're listening to Bloomberg Business of Sports on Bloomberg Radio 590 00:31:37,520 --> 00:31:41,400 Speaker 1: around the world and online as an Apple podcast on iTunes.