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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App.

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Speaker 1: Listen on demand wherever you get your podcasts, or watch

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Speaker 1: us live on YouTube.

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Speaker 2: Get one of the really interesting stories out today on

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Speaker 2: the Bloomberg terminals about the Boston Celtics. A consortium including

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Speaker 2: STG Partners co founder Bill Chisholm, who was actually originally

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Speaker 2: an investment banker Pain Weber my old shop, reached a

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Speaker 2: deal to buy the Boston Celtics for six point one

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Speaker 2: billion dollars.

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Speaker 3: Just extraordinary. Anyone you want to.

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Speaker 2: Talk about the valuation of sports franchises, there's one place

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Speaker 2: you have to go, and that's Sportco. These folks do

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Speaker 2: some outstanding work there. Eben Novi Williams and his partner

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Speaker 2: Scott Sashnik.

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Speaker 3: Scott Soshnik Joints is here. He is editor chief of Sportico.

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Speaker 2: Hey, Scott, this is I'm a Nick's but I recognize value,

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Speaker 2: and boy, this Boston Celtis.

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Speaker 3: They're getting a rich valuation, aren't they.

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Speaker 4: Yeah, they certainly are. It's the most ever paid for

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Speaker 4: professional sports franchise, topping Josh Harris's six billion dollar purchase

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Speaker 4: of the Commanders. And we all know the difference between

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Speaker 4: the NFL and everybody else, so for this to happen

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Speaker 4: in the NBA is quite extraordinary. And it's actually going

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Speaker 4: to be a two tranch deal. So this first tranche,

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Speaker 4: we understand, is at a six point one billion dollar

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Speaker 4: valuation three years from now. The second tranch, I think

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Speaker 4: the rest of the forty nine percent of the franchise

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Speaker 4: that wasn't sold now is going to be a seven

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Speaker 4: billion dollar valuation, so perhaps accounting for inflation, but at

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Speaker 4: a blended six' six you can bet That Adam silver

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Speaker 4: and the NBA's other owners are very happy with this.

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Speaker 4: Transaction all, Right.

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Speaker 5: So done this one down for? Me? RIGHT i would

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Speaker 5: assume you're, like, yeah, yeah, no please do all? Right

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Speaker 5: you got football and you got, soccer which they call

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Speaker 5: football In. Europe but, LIKE i didn't know that basketball

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Speaker 5: was this valuable versus those other two.

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Speaker 4: Sports, YEAH i, mean look at the media. Deal first of,

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Speaker 4: all they just re up, with you, know With turner AND,

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Speaker 4: espn a almost three x deal from the last. Time

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Speaker 4: so The meteorites are incredibly. Valuable what you normally look

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Speaker 4: at with these transactions are what's the media and what's

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Speaker 4: the real. Estate what really is surprising about The celtics

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Speaker 4: is all the ownership has is the, team albeit a tremendous.

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Speaker 4: BRAND i, mean The celtics brand in sports is, premium,

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Speaker 4: platinum top, TIER i get. It but they do not

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Speaker 4: own the. Building they are tenants in the. Building it's

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Speaker 4: owned by The jacobs and which owned the family that

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Speaker 4: owns The Boston. Ruins so you're really just getting the.

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Speaker 4: Team it's gonna be really interesting to. See, now how

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Speaker 4: do you squeeze further value out of a roster, that,

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Speaker 4: yes is a championship, team but is projected to lose

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Speaker 4: about seventy million dollars this. Year so it's a high

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Speaker 4: price to. Pay it remains to be seen how they

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Speaker 4: can squeeze some more value out of.

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Speaker 2: It, hey what do we know about This Bill. Chisholm

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Speaker 2: what do we know about this new buyer?

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Speaker 4: Here, yeah we don't know much About. CHISHOLM i, mean

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Speaker 4: he grew up in the, area grew up A celtics,

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Speaker 4: fan watched them put the band. Up Larry bird was

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Speaker 4: his favorite, player went To. Dartmouth these are the things

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Speaker 4: The grosspecks sort of pointed out in their letter that

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Speaker 4: we saw that he sent out to the ownership group

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Speaker 4: announcing the. Transaction but from a sports, perspective we don't

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Speaker 4: have anything. Now he was one of four parties. Interested

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Speaker 4: another one of the, parties of, course Was Steve, paluka

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Speaker 4: who's a limited partner in the group NOW. PAGs you,

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Speaker 4: know early on he had made it clear he thought

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Speaker 4: what a fair valuation was AND i don't think over

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Speaker 4: six billion dollars was. It so he did bid on the,

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Speaker 4: franchise but he didn't approach this. Number thus he's he's

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Speaker 4: happy to send it out at this.

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Speaker 5: Point so no bidding, war we're going to resume it

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Speaker 5: or anything like.

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Speaker 4: That once you got to. Six there was an early

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Speaker 4: feeling during the transaction that THE nba really wanted this

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Speaker 4: to begin with six. Twofold you always want the price

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Speaker 4: to be going up your, franchise keep the owners. Happy

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Speaker 4: but THE nba is also about to embark on an expansion,

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Speaker 4: process whether it Be seattle And Las vegas and or.

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Speaker 4: More this sets a very high number for those two

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Speaker 4: new market so everybody happy across the. Board if you're

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Speaker 4: interested IN nba valuations And.

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Speaker 2: Scott we know that for a lot of these sports,

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Speaker 2: teams the real value are much of the value is

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Speaker 2: in their media. Rights and if you're a national sport

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Speaker 2: like THE, nfl you're in a, great great.

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Speaker 3: Shape if you're a regional.

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Speaker 2: Sport like, baseball like, hockey those regional sports networks and

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Speaker 2: the challenges they're facing because of cord.

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Speaker 3: Cutting that's an.

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Speaker 2: Issue how do you factor that in for some of

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Speaker 2: these regional, sports you, know the kind of the weakness

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Speaker 2: in the regional sports, business how do you factor that into?

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Speaker 6: Evaluation certainly if you rank them top to, BOTTOM, NFL,

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Speaker 6: nba and then hockey and, baseball hockey and, baseball certainly

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Speaker 6: they really need that local, money that LOCAL tv money

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Speaker 6: which has been disappearing on the regionable sports, networks which

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Speaker 6: we refer to over here as melting.

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Speaker 4: Glaciers so the national number is so high for THE,

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Speaker 4: nfl and that's just, pooled so there is no local you,

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Speaker 4: know you don't air it that. Way THE nba does

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Speaker 4: rely some on local media, money but that national umber

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Speaker 4: is also so, high and THE, nba if you've been

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Speaker 4: paying attention over the last few, years you'll notice they've

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Speaker 4: been doing some micro. Transactions you can buy the last

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Speaker 4: five minutes of a, game you can buy pieces of.

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Speaker 4: Games they are very strong on social they are very strong.

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Speaker 4: Globally these are really dominant brands around the. World baseball

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Speaker 4: just did a great job In. Japan, well THE nba

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Speaker 4: has a great market In, China, europe so there might

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Speaker 4: be something coming In europe from THE nba in the near.

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Speaker 4: Future so if you look at the aggregation of, eyeballs

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Speaker 4: it might not be people sitting down in front of

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Speaker 4: THE tv watching quarters one through, four but you've got people's. Attentions,

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Speaker 4: now the challenge For Adam silver and his owners, Is

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Speaker 4: i've got the, eyeballs how DO i monetize it in

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Speaker 4: a new media.

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Speaker 5: World actually that's a great question BECAUSE i was going to, wonder,

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Speaker 5: like how do you squeeze? Value and you mentioned The

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Speaker 5: celtics in terms of the real, estate and how do

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Speaker 5: you then squeeze more? Value so in, general how do

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Speaker 5: you do?

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Speaker 4: That excellent. QUESTION i can't answer that, question SO i

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Speaker 4: know what the new ownership group is going to. DO

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Speaker 4: i would say that a global audience would be the

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Speaker 4: PLACE i would start for THE. Nba you have new

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Speaker 4: markets in THE. Us we Mentioned vegas and we Mentioned

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Speaker 4: seattle that will bring a high price. Point then you

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Speaker 4: talk about maybe A european, league and then your eyeballs

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Speaker 4: outside The United. States basketball unlike, football and you see

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Speaker 4: THE nfl is trying awfully hard to broaden its fan

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Speaker 4: base outside of THE us. Borders it is not happening

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Speaker 4: as fast as THE. Nba that is a big. Advantage.

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Speaker 4: Go i'm not one that looks at The twitter followers

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Speaker 4: and The instagram so, much but if you go check

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Speaker 4: out THE, nba they lead the sports leagues in global.

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Speaker 4: Eyeballs that is certainly an area of focus for all basketball.

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Speaker 3: Teams, scott are you still a crazy hockey?

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Speaker 4: Dad oh you know about? This YES i. AM i

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Speaker 4: am off To, Madison. Wisconsin thanks for. Asking i'm off To,

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Speaker 4: Madison wisconsin in Early april for The, nationals my son's team.

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Speaker 4: Qualified IF i am not sitting in this office what

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Speaker 4: you see behind, ME i will be in a ring

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Speaker 4: somewhere In North, america see.

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Speaker 2: Folks scott and his Partner evan used to work here

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Speaker 2: At bloomberg And i'd See scott in always and every.

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Speaker 3: Weekend i'm, like where are you? Going do and it's like,

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Speaker 3: serious easy as. LOW i, mean just come.

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Speaker 4: On and we should Do Josh harris And David, blitzer

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Speaker 4: as you, know we're focused on investing in youth sports

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Speaker 4: right now with their unrival Platform goode, right because the

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Speaker 4: two PLACES i see people spending money irrationally up their.

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Speaker 5: Pets, Exactly, Scott, scott we gotta, Go we got to.

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Speaker 2: Go slastion like editor in chief sporticoat Former bloomberger talking

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Speaker 2: about This celtics six point one billion.

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Speaker 3: Dollars how about.

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Speaker 1: That you're listening to The Bloomberg intelligence. Podcast catch us

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Speaker 1: live weekdays at ten Am eastern On applecarclay And Android

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Speaker 1: otto with The Bloomberg Business. App listen on demand wherever

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Speaker 1: you get your, podcasts or watch us live on.

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Speaker 5: YouTube let's take a look at the market kind of

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Speaker 5: what you do if we are going to be in

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Speaker 5: a stagflationary environment for a little, bit if you believe,

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Speaker 5: that how do you manage? It Sandy brager is chief

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Speaker 5: client officer At. Espirien she joins us now From. California

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Speaker 5: so if we kind of like flirt with this dig inflation,

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Speaker 5: scenario a little lower, growth little higher, inflation how do

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Speaker 5: you manage, That.

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Speaker 7: Alex we're not totally worried about seculation at this.

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Speaker 8: Point we think the economy has been very strong for

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Speaker 8: the last couple of, years and sure it looks like

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Speaker 8: it is going to slow in terms of its.

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Speaker 7: Growth so, far inflation has been.

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Speaker 8: Stickier than anyone would, like but it should be in.

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Speaker 8: Check but in terms of portfolios and how we're working

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Speaker 8: with our clients who are corporate, executives, family family business

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Speaker 8: owners and, entrepreneurs we're still thinking diversification is really. Important,

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Speaker 8: volatility regardless of, stagflation are not we think is here to,

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Speaker 8: stay and having a very diversified portfolio makes a lot of,

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Speaker 8: sense not only for the near, term but for the years.

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Speaker 8: Ahead and that's been a very different situation than what

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Speaker 8: has worked best over the last fifteen.

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Speaker 7: Years, actually if you go, back look back over your.

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Speaker 2: Shoulder, sandy what's a diversified portfolio? FOR i guess your typical.

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Speaker 3: Client, stocks bond, is all.

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Speaker 2: Alternatives are they a part of that diversification they?

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Speaker 8: Are, Paul, yeah we have a fair mountain, stocks and

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Speaker 8: within the stock, portfolio we're tilting toward stocks that haven't

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Speaker 8: done that well over the last couple of. Years so

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Speaker 8: we have a lot of value, stocks small cap, stocks

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Speaker 8: and a large tilt toward, international which we think is.

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Speaker 8: Important on the bond, side you, know that could be

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Speaker 8: up to about a third of a client's. Portfolio we're

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Speaker 8: looking on the shorter end there because our clients are

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Speaker 8: in the highest tax. Brackets we like mini bonds a.

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Speaker 8: Lot it makes sense from an after tax. Perspective and

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Speaker 8: then we have anywhere from about ten to eighteen percent

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Speaker 8: of client portfolios.

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Speaker 7: Mostly in alternative alternative.

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Speaker 8: Investments and these are liquid alternatives and they might even

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Speaker 8: include things like gold that have been doing really really

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Speaker 8: well this.

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Speaker 5: Year what About european equities is sort of expanding on.

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Speaker 5: That does that rotation have?

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Speaker 8: Legs we think, so you, know it does look Like

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Speaker 8: europe is about to spend a lot of money on defaul.

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Speaker 8: Events and you, know just like The United, states there

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Speaker 8: are a lot of shocks that are kind of rippling

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Speaker 8: through the global. Economy but we do Like europe evaluations

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Speaker 8: are generally. Lower looks like some interesting things could be

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Speaker 8: happening In. Germany, otherwise you, Know france And switzerland are

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Speaker 8: looking good from our, perspective and they've been doing really

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Speaker 8: well this year as THE us stocks have been correcting.

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Speaker 2: Down about on the fixed income, Side, sandy what are

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Speaker 2: you advising your clients? Here we're looking at the two

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Speaker 2: year treasury three point ninety five percent is certainly a

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Speaker 2: lot better than we've had over the last you, know fifteen.

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Speaker 3: Years is that? Okay or do you take some credit?

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Speaker 7: Risk we're not taking a lot of credit risks right, Now.

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Speaker 8: Paul we think that that staying on the, shorter shorter

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Speaker 8: term side of the curve makes a lot of. Sense

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Speaker 8: there's not a lot of extra return available on the

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Speaker 8: longer term side of the curve at this, point but

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Speaker 8: we do we do pay attention to the fixed income

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Speaker 8: and we are a little you, know weary with clients

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Speaker 8: reminding them that there is risk in fixed income just

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Speaker 8: like there is in. Stock so as we've experienced the

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Speaker 8: volatility so far this, quarter some clients have been asking

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Speaker 8: if they should be rotating more to, bonds and.

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Speaker 7: We think we don't think that's the.

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Speaker 8: Case we think having a fair amount of bonds in

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Speaker 8: the portfolio with some interest rate exposure makes a lot of,

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Speaker 8: sense but not going too far out on that.

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Speaker 3: Curve, Sandy thank you so.

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Speaker 2: Much we appreciate That Sandy, Briger Chief Client officer For,

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Speaker 2: Experience joining us via zoom From San.

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Speaker 1: Francisco you're listening to The Bloomberg Intelligence. Podcast catch us

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Speaker 1: live weekdays at ten Am eastern On, Apple cocklay And

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Speaker 1: Android auto with The Bloomberg Business. App listen on demand

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Speaker 1: wherever you get your, podcasts or watch us live on.

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Speaker 3: YouTube all, right.

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Speaker 5: One story that we are watching Forses. Tesla that stock

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Speaker 5: is lower today as the company recalls the cyberchuck after

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Speaker 5: pieces of steel trim come. Loose all, Right joining us

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Speaker 5: As Craig, Cudel Bloomberg Global Audios, editor All, right what happened?

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Speaker 9: Here, yeah so this is actually the second time That

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Speaker 9: tesla's had to do a recall for pieces of trim coming.

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Speaker 9: Loose and so it's maybe a little bit of a

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Speaker 9: source of embarrassment because it's one thing to have an

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Speaker 9: issue pop up that that you, KNOW i think for

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Speaker 9: for all, automakers even the best, ones you, know they

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Speaker 9: occasionally will have recalls that are a tad. Embarrassing in this,

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Speaker 9: case to have it happen, twice you, know granted it

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Speaker 9: is a different part of the, vehicle but this this,

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Speaker 9: truck of, course was was so sort of famous For

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Speaker 9: Elon musk's decision to clad it all in stainless, steel

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Speaker 9: and apparently they're having trouble with the adhesives to to

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Speaker 9: keep that steel stuck to the.

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Speaker 2: Vehicle craig generally, speaking what's the IF i we're going

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Speaker 2: to go to consumer? Reports what's the general feeling out

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Speaker 2: there in the auto world about the quality of a

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Speaker 2: test the?

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Speaker 9: VEHICLE i, MEAN i THINK i think for the cyber,

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Speaker 9: truck it's really interesting that this is the eighth call

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Speaker 9: that they've, done you, know and and to be, fair you,

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Speaker 9: know some of them have been you, know for minor.

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Speaker 9: Issues my favorite one last year they violated a font

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Speaker 9: size rule uh in THE us where, uh you, know

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Speaker 9: when when you warn a driver, that, uh you, know

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Speaker 9: of safety critical, data you've got to do it in

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Speaker 9: a large enough. Font And tesla, uh you know violated.

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Speaker 9: That so uh you know that of course is not

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Speaker 9: a particularly you, KNOW i guess it's it's not, unseerious

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Speaker 9: but it's you, know a relatively minor.

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Speaker 4: Thing.

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Speaker 9: Uh some of these fixes that they've, made, uh they've

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Speaker 9: been able to handle them via over the air software.

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Speaker 9: Updates but, uh an issue like this trim. Defect you,

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Speaker 9: know they they will have to uh you, know have

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Speaker 9: have customers come into the stores or into the service,

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Speaker 9: centers have a look at the vehicles and in some

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Speaker 9: cases have to do some repairs that will cost the

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Speaker 9: company some. Money and you, KNOW i think generally the.

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Speaker 9: REPUTATION i think early on For, tesla there was a

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Speaker 9: lot of you, know, uh you, know noise within the

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Speaker 9: auto industry about how this you, know this company makes

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Speaker 9: vehicles with you, know big panel. GAPS a lot of

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Speaker 9: people didn't really necessarily care about. That AND i do

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Speaker 9: think To tesla's, credit they've gotten better on, quality but,

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Speaker 9: uh you, know recalls like this don't don't really help that.

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Speaker 9: Reputation so it stop down almost two.

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Speaker 5: Percent but it's not like it's been. Smoothsale and it's

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Speaker 5: been a really terrible few months For. Tesla what do

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Speaker 5: you what provides a bottom for this?

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Speaker 9: STOCK i, think you, know the the cyber, truck you,

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Speaker 9: know has been something of a letdown for, them Right

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Speaker 9: it's it's the one new vehicle that they've, had, uh you,

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Speaker 9: know really since The MODEL y came out back in twenty,

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Speaker 9: twenty and SO i think there were some hopes that

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Speaker 9: this this would be a big, hit AND i think

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Speaker 9: it's it's not really sort of. DELIVERED i think the

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Speaker 9: thing to look forward to if you're an investor is

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Speaker 9: is the redesign model why. That earlier this year the

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Speaker 9: company sort of released a look at the model why

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Speaker 9: it interestingly has on the front end it looks a

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Speaker 9: little bit more like a cyber, truck and then it's

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Speaker 9: got a light beam you, know running across across it

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Speaker 9: the way the cyber truck.

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Speaker 4: Does.

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Speaker 9: Uh there's some improvements on the, interior BUT i think

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Speaker 9: there are some real questions, about you, know is this

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Speaker 9: enough in terms of you, know real significant updates and

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Speaker 9: upgrades to keep up with with a company like BY,

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Speaker 9: d say In. China you, know they they made a

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Speaker 9: lot of noise this week and turned a lot of

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Speaker 9: heads with these claims about you, know being able to

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Speaker 9: charge your ev in five. Minutes AND i think there's you,

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Speaker 9: know a sort of, creeping, uh you know sense among

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Speaker 9: investors that you, know if you want to see sort

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Speaker 9: of innovation in, evs you really look To china and

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Speaker 9: look to companies like BY d or sham as opposed

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Speaker 9: to To, tesla and that in and of.

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Speaker 2: Itself craig is a subject to discussion here when you

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Speaker 2: when you talk to The western auto companies that you speak,

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Speaker 2: with whether it's A volkslagon or even A ford or,

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Speaker 2: whatever are they prepared to seed THE ev market To?

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Speaker 9: CHINA i, MEAN i think the the the you, know

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Speaker 9: fact of the matter, is you, know it's already been.

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Speaker 9: Seated you, know if you if you count you, know

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Speaker 9: battery electric vehicles and plug in hybrid electric vehicles, together you,

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Speaker 9: know it's roughly two and three electric vehicles that are

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Speaker 9: sold are sold In. China and you, KNOW i Think,

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Speaker 9: tesla to its credit is is you, know a player

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Speaker 9: to be reckoned with in that. Market but you, know

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Speaker 9: in terms of who's the, leader it's far and away

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Speaker 9: by D i Think, Jaomi, uh you, know is really

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Speaker 9: getting a lot of, attention you, know not just among

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Speaker 9: media types like, me but you, Know FORD Ceo Jim

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Speaker 9: farley has has really sung that company's praises and and

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Speaker 9: he's not. Alone there are other executives in the industry

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Speaker 9: WHO i know really are watching what they're up to.

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Speaker 9: Closely it's sort of The apple car That apple you,

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Speaker 9: know didn't manage to pull, off didn't manage to Make

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Speaker 9: AND i think there's a lot of concern within the

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Speaker 9: industry about you, know just how much of a Lead chinese,

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Speaker 9: manufacturers and In johnny's case of Tech, company just how

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Speaker 9: much of a lead they've.

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Speaker 5: Built when we take a look quickly at the valuations

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Speaker 5: for all these, automakers particularly an evie, market, like have

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Speaker 5: we rerated enough for the decline and demand and for

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Speaker 5: the tariff.

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Speaker 9: Risks it's a good. QUESTION i, think you, know a

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Speaker 9: lot of a lot of the manufacturers have really been

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Speaker 9: beaten down by the tariff, uncertainty and that's been a global.

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Speaker 9: STORY i Think tesla is still after this you, know

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Speaker 9: pretty significant decline since since Mid, december is still an

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Speaker 9: anomaly in the industry where they are are valued at you,

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Speaker 9: know many multiples of anybody. Else and, so you, KNOW

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Speaker 9: i think there's still hope among some investors and a

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Speaker 9: belief that there's a reason to treat this stock, differently

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Speaker 9: That musk will eventually deliver on his claims about you,

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Speaker 9: know self driving, vehicles and and he's ALSO i, think you,

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Speaker 9: know emphasized the potential For tesla to become you, KNOW

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Speaker 9: ai and robotics company even more so than a. Carmaker

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Speaker 9: BUT i think you know in terms of what this

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Speaker 9: company does in here now and what it makes its

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Speaker 9: money on its, cars and that business is really slowing,

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Speaker 9: down all, Right.

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Speaker 3: Greig thanks so much for joining.

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Speaker 2: Us Cricketory Owl global audis editor For Bloomberg, news joining

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Speaker 2: us From.

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Speaker 1: London this is The Bloomberg Intelligence, podcast available On, Apple,

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00:18:24,400 --> 00:18:28,640
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00:18:28,680 --> 00:18:32,440
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00:18:32,560 --> 00:18:36,080
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