1 00:00:03,120 --> 00:00:08,400 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:13,080 --> 00:00:15,640 Speaker 2: Hi everyone, welcome to the Deal. I'm your host Jason Kelly. 3 00:00:15,720 --> 00:00:17,160 Speaker 3: Hello, I'm Alex Rodriguez. 4 00:00:17,400 --> 00:00:21,240 Speaker 2: We're here in New York and this episode. David Rubinstein. 5 00:00:21,480 --> 00:00:24,640 Speaker 2: He is the co chairman of the Carlo Group, which 6 00:00:24,640 --> 00:00:27,120 Speaker 2: he founded back in nineteen eighty seven. He is a 7 00:00:27,200 --> 00:00:30,840 Speaker 2: television host. You've been on his television show on Bloomberg Television, 8 00:00:31,040 --> 00:00:33,239 Speaker 2: but that's not why we're talking to him today. He 9 00:00:33,320 --> 00:00:36,200 Speaker 2: is also the relatively new owner of the Baltimore Orioles, 10 00:00:36,240 --> 00:00:37,640 Speaker 2: a franchise you're very familiar with. 11 00:00:37,840 --> 00:00:40,360 Speaker 3: Yeah, and David Rubinstein, he's a renaissance man. I mean 12 00:00:40,560 --> 00:00:43,600 Speaker 3: he's Masterdard of building a private equity giant. He's also 13 00:00:43,640 --> 00:00:46,800 Speaker 3: donated tens of millions of dollars to philanthropy and now 14 00:00:46,800 --> 00:00:49,479 Speaker 3: he's the latest challenges the Baltimo Oriioals, which is one 15 00:00:49,520 --> 00:00:52,400 Speaker 3: of the true five or six iconic franchises in sports. 16 00:00:52,440 --> 00:00:54,800 Speaker 3: They have the number one farm system. Camden Yards is 17 00:00:54,800 --> 00:00:56,760 Speaker 3: one of my favorite parks, not only to watch a game, 18 00:00:56,800 --> 00:00:58,480 Speaker 3: but more importing to play a game. But it is 19 00:00:58,520 --> 00:01:01,240 Speaker 3: one of the great sports venues around the world. Jason, 20 00:01:01,280 --> 00:01:03,760 Speaker 3: I still remember in nineteen eighty three when the Baltimore 21 00:01:03,800 --> 00:01:07,000 Speaker 3: Orioles beat the Phillies and my hero Kyle Ripken caught 22 00:01:07,000 --> 00:01:09,200 Speaker 3: a line drive for the last out of the Baltimore 23 00:01:09,200 --> 00:01:11,520 Speaker 3: Oriols Championship. And I can't wait to see more base 24 00:01:11,680 --> 00:01:12,559 Speaker 3: on that stadium. 25 00:01:12,800 --> 00:01:16,240 Speaker 2: David has talked about this deal as being unique for 26 00:01:16,319 --> 00:01:21,400 Speaker 2: him because it's essentially half investment, half philanthropy. He's going 27 00:01:21,440 --> 00:01:25,240 Speaker 2: to talk a lot about the community building aspect of 28 00:01:25,240 --> 00:01:27,440 Speaker 2: what it means to be an owner with something you 29 00:01:27,560 --> 00:01:30,600 Speaker 2: certainly can understand from a lot of different perspectives. So 30 00:01:30,760 --> 00:01:33,319 Speaker 2: much to get into with the great David Rubenstein that's 31 00:01:33,319 --> 00:01:47,720 Speaker 2: coming up on the deal, all right. So we like 32 00:01:47,800 --> 00:01:50,160 Speaker 2: to start every one of these shows by having the 33 00:01:50,200 --> 00:01:52,400 Speaker 2: guests introduce themselves and what they do. 34 00:01:52,720 --> 00:01:53,960 Speaker 4: I'm David Rubinstein. 35 00:01:54,120 --> 00:01:56,920 Speaker 5: I am the chairman of Carlisle Group, a firm I 36 00:01:57,000 --> 00:01:59,240 Speaker 5: started in nineteen eighty seven with a few other people, 37 00:01:59,320 --> 00:02:01,280 Speaker 5: and I do some other things, but I guess that's 38 00:02:01,560 --> 00:02:02,920 Speaker 5: probably what I do mostly. 39 00:02:03,320 --> 00:02:07,360 Speaker 2: You also have recently gotten involved in the game of baseball. 40 00:02:07,560 --> 00:02:08,320 Speaker 4: That's correct. 41 00:02:08,560 --> 00:02:11,840 Speaker 5: Despite my appearance as a Little League All Star shortstop, 42 00:02:12,800 --> 00:02:14,760 Speaker 5: didn't think it would go very far, but I had 43 00:02:14,800 --> 00:02:18,600 Speaker 5: now regained my baseball acumen and interest, and I am 44 00:02:18,600 --> 00:02:21,280 Speaker 5: now the principal owner of the control partner they call 45 00:02:21,320 --> 00:02:24,160 Speaker 5: it in baseball of the Baltimore Orioles Baseball team. I 46 00:02:24,200 --> 00:02:27,360 Speaker 5: grew up in Baltimore, and after fifty years of not 47 00:02:27,400 --> 00:02:31,519 Speaker 5: really focusing on Baltimore and the Orioles, I'm now refocusing 48 00:02:31,560 --> 00:02:31,880 Speaker 5: on it. 49 00:02:32,000 --> 00:02:34,720 Speaker 2: And boy are you ever. Let's just dive into this deal. 50 00:02:34,880 --> 00:02:38,000 Speaker 2: How does this come to you? What's the process by 51 00:02:38,040 --> 00:02:39,680 Speaker 2: which you end up owning this team? 52 00:02:39,919 --> 00:02:43,520 Speaker 5: A little convoluted, like everything in the big world of sports. 53 00:02:43,760 --> 00:02:46,000 Speaker 5: The team has been owned for thirty years by the 54 00:02:46,080 --> 00:02:49,959 Speaker 5: Angelos family. They bought it out of bankruptcy in nineteen 55 00:02:50,000 --> 00:02:52,520 Speaker 5: ninety one or nineteen eighty two. And let me just 56 00:02:52,680 --> 00:02:56,040 Speaker 5: clain what happened. Saint Louis Brown's were a team in 57 00:02:56,440 --> 00:02:59,240 Speaker 5: Saint Louis. They weren't doing well there. They went to Baltimore, 58 00:02:59,560 --> 00:03:02,120 Speaker 5: and Baltimore group of people bought up for two million dollars. 59 00:03:02,600 --> 00:03:05,440 Speaker 5: Two million dollars that's in nineteen fifty four. Edward Bennett 60 00:03:05,440 --> 00:03:08,079 Speaker 5: Williams bought it when the family wanted to sell that 61 00:03:08,160 --> 00:03:10,799 Speaker 5: owned the Hofburger family. He bought it nineteen eighty one 62 00:03:10,840 --> 00:03:13,880 Speaker 5: for roughly twelve million dollars. When he passed away, his 63 00:03:14,040 --> 00:03:17,160 Speaker 5: estate sold it to Eli Jacobs, a buyout person in 64 00:03:17,200 --> 00:03:20,160 Speaker 5: New York, for roughly seventy five million dollars, and then 65 00:03:20,280 --> 00:03:23,320 Speaker 5: when that went bankrupt, it went into bankruptcy court and 66 00:03:23,440 --> 00:03:25,840 Speaker 5: was bought in bankruptcy court for a net price of 67 00:03:25,919 --> 00:03:28,600 Speaker 5: roughly one hundred and fifty five million dollars by a 68 00:03:28,680 --> 00:03:31,919 Speaker 5: lawyer in Baltimore, Nate peter Angelo's. He did have some 69 00:03:32,000 --> 00:03:34,720 Speaker 5: other Baltimore people come in with him, most famously, I 70 00:03:34,760 --> 00:03:37,120 Speaker 5: would say Tom Clancy, who was a very author lived 71 00:03:37,160 --> 00:03:40,400 Speaker 5: in Baltimore, and Pam Shreiver, among others. But he owned 72 00:03:40,440 --> 00:03:42,520 Speaker 5: it and was the control partner for a long time. 73 00:03:43,000 --> 00:03:46,400 Speaker 5: His health went south and his son began running it 74 00:03:46,440 --> 00:03:48,640 Speaker 5: about five years ago, his son John. I don't know 75 00:03:48,720 --> 00:03:51,960 Speaker 5: exactly why they decided to entertain an offer, but I 76 00:03:52,000 --> 00:03:54,560 Speaker 5: had thought they might be interested in selling it. I 77 00:03:54,800 --> 00:03:56,880 Speaker 5: was told by some people in Baltimore that maybe they'd 78 00:03:56,880 --> 00:03:59,760 Speaker 5: be recepted to somebody from Baltimore buying it, and so 79 00:03:59,840 --> 00:04:02,920 Speaker 5: I actually teamed up with Ted de Jonsis, who owns 80 00:04:02,920 --> 00:04:05,760 Speaker 5: the Washington Caps the Washington Wizards, and he said to 81 00:04:05,800 --> 00:04:08,040 Speaker 5: me correctly he knows more about sports than I did. 82 00:04:08,560 --> 00:04:09,480 Speaker 4: Why don't we team up? 83 00:04:09,560 --> 00:04:13,120 Speaker 5: I would invest in Monumental and then Monumental would buy 84 00:04:13,280 --> 00:04:16,520 Speaker 5: the Oriols. And he'd led the negotiations with John Angelo's 85 00:04:16,960 --> 00:04:19,359 Speaker 5: about a year before we actually consummated the deal that 86 00:04:19,560 --> 00:04:22,240 Speaker 5: actually happened, and then it didn't work out. They couldn't 87 00:04:22,240 --> 00:04:25,080 Speaker 5: reach an agreement and so it fell apart. Last summer, 88 00:04:25,240 --> 00:04:27,680 Speaker 5: John Angelos, who was renting a house in Nantucket, came 89 00:04:27,680 --> 00:04:30,080 Speaker 5: to see me at my home in Nantucket and he said, 90 00:04:30,360 --> 00:04:32,360 Speaker 5: why didn't I buy a minority interest in the team. 91 00:04:32,480 --> 00:04:35,279 Speaker 5: If I liked the Oriols and didn't work out through Monumental, 92 00:04:35,440 --> 00:04:37,400 Speaker 5: I could buy a minority steak. And I went back 93 00:04:37,400 --> 00:04:39,159 Speaker 5: to him and said, well, maybe if I could buy 94 00:04:39,200 --> 00:04:41,520 Speaker 5: a steak that would get me to control at some point, 95 00:04:41,560 --> 00:04:44,800 Speaker 5: I'd be much more interested. He came back and said, okay, 96 00:04:44,839 --> 00:04:46,560 Speaker 5: but it doesn't have to be over three or four years, 97 00:04:46,640 --> 00:04:48,760 Speaker 5: which is what I anticipated. He said, maybe we can 98 00:04:48,800 --> 00:04:52,320 Speaker 5: buy control sooner, and so I decided to move forward 99 00:04:52,320 --> 00:04:54,440 Speaker 5: with it. I called somebody who had once said to 100 00:04:54,480 --> 00:04:56,279 Speaker 5: me he'd like to buy the Ools with me, and 101 00:04:56,320 --> 00:04:58,839 Speaker 5: it's a guy in New York named Mike Arraghetti, who 102 00:04:59,240 --> 00:05:02,159 Speaker 5: is really the sea As a very excellent private credit 103 00:05:02,160 --> 00:05:04,680 Speaker 5: firm private equity as well, and so I called him 104 00:05:04,680 --> 00:05:06,479 Speaker 5: and said, there may be a chance to buy the Oros. 105 00:05:06,480 --> 00:05:07,640 Speaker 5: Would you like to come in with me? And he 106 00:05:07,680 --> 00:05:11,120 Speaker 5: said yes, and then together we negotiated for six or 107 00:05:11,200 --> 00:05:14,200 Speaker 5: nine months or so with Johnny Angelo's. I didn't think 108 00:05:14,200 --> 00:05:16,120 Speaker 5: the deal was going to happen at one point because 109 00:05:16,320 --> 00:05:18,800 Speaker 5: in Christmas when we were negotiating the deal, it blew 110 00:05:18,880 --> 00:05:20,520 Speaker 5: up a bit. It wasn't looked like it was going 111 00:05:20,600 --> 00:05:22,920 Speaker 5: to happen, and I maybe lost my cool and I 112 00:05:23,000 --> 00:05:24,600 Speaker 5: walked away from the deal saying, this is not going 113 00:05:24,640 --> 00:05:24,920 Speaker 5: to happen. 114 00:05:24,960 --> 00:05:25,600 Speaker 4: I'm not happy. 115 00:05:25,960 --> 00:05:28,080 Speaker 5: And then for about a week it kind of was nowhere. 116 00:05:28,120 --> 00:05:30,880 Speaker 5: But then like deals always come back, it seems, and 117 00:05:30,920 --> 00:05:33,080 Speaker 5: this one came back and we negotiated the deal and 118 00:05:33,120 --> 00:05:35,440 Speaker 5: we closed it. The first part of it right at 119 00:05:35,480 --> 00:05:37,839 Speaker 5: the beginning of the season, right the poor opening day. 120 00:05:38,240 --> 00:05:40,000 Speaker 5: And then the second part of the deal was we 121 00:05:40,080 --> 00:05:42,599 Speaker 5: bought forty percent at the beginning and the remaining sixty 122 00:05:42,640 --> 00:05:43,640 Speaker 5: percent we just closed. 123 00:05:43,720 --> 00:05:46,880 Speaker 3: That's incredible. So I mean, you go to Duke undergrad 124 00:05:47,120 --> 00:05:49,320 Speaker 3: then you get a law degree in Chicago, you run 125 00:05:49,480 --> 00:05:51,760 Speaker 3: what i'd call the Yankees of private equity in Parlia. 126 00:05:51,800 --> 00:05:52,440 Speaker 4: One of the most. 127 00:05:52,240 --> 00:05:56,480 Speaker 3: Amazing companies that you started, manage almost half a trillion 128 00:05:56,520 --> 00:05:59,320 Speaker 3: dollars today. And you say, well, I'm not good enough 129 00:05:59,320 --> 00:06:01,280 Speaker 3: to make a major lye baseball team, but I'm rich 130 00:06:01,400 --> 00:06:04,320 Speaker 3: enough not to buy one. How does that conversation go, David, 131 00:06:04,320 --> 00:06:06,039 Speaker 3: when you're like, all right, I am ready, because this 132 00:06:06,080 --> 00:06:07,560 Speaker 3: is a big move for you. 133 00:06:07,920 --> 00:06:09,960 Speaker 5: It's always complicated to figure out what you want to 134 00:06:09,960 --> 00:06:12,440 Speaker 5: do with your life when you're past running something. So 135 00:06:12,920 --> 00:06:14,960 Speaker 5: I gave up at the age of sixty nine. I 136 00:06:15,040 --> 00:06:17,400 Speaker 5: gave up being the co CEO of Carlisle, and I 137 00:06:17,440 --> 00:06:20,120 Speaker 5: became the co executive chair and then the co chair. 138 00:06:20,520 --> 00:06:23,240 Speaker 5: And I have a family office that I invest through 139 00:06:23,400 --> 00:06:27,120 Speaker 5: called Declaration, and I chair seven nonprofit boards, so like 140 00:06:27,120 --> 00:06:30,160 Speaker 5: the Kennedy Center or the Library of Congress, Board, the 141 00:06:30,240 --> 00:06:34,360 Speaker 5: National Gallery of Art Board, Universityago Board and Counselor Correlations 142 00:06:34,360 --> 00:06:36,480 Speaker 5: and so forth. So that takes time, and then I 143 00:06:37,160 --> 00:06:39,280 Speaker 5: try to do one book every two years, and then 144 00:06:39,320 --> 00:06:42,240 Speaker 5: I try to do TV shows on a place called Bloomberg, 145 00:06:43,000 --> 00:06:44,800 Speaker 5: So I do a couple of TV shows there and 146 00:06:44,800 --> 00:06:46,919 Speaker 5: and some on PBS. So I have a lot of 147 00:06:46,960 --> 00:06:49,359 Speaker 5: things to do. And I'm not sure why I thought, 148 00:06:49,360 --> 00:06:51,599 Speaker 5: at my current age, an age that I never thought 149 00:06:51,600 --> 00:06:53,800 Speaker 5: i'd live to be this old, that I would go 150 00:06:53,880 --> 00:06:55,760 Speaker 5: back and buy a baseball team. But the reason I 151 00:06:55,800 --> 00:06:58,440 Speaker 5: really did it was not because I thought I'm going 152 00:06:58,480 --> 00:06:59,640 Speaker 5: to make more money and that's going to make me 153 00:06:59,680 --> 00:07:02,560 Speaker 5: a happy person having more money. That wasn't it. I 154 00:07:02,720 --> 00:07:05,600 Speaker 5: just grew up in Baltimore. I got a public education there, 155 00:07:05,680 --> 00:07:08,400 Speaker 5: public school education. My parents were born there, they were 156 00:07:08,480 --> 00:07:10,600 Speaker 5: raised there, they were married there, they lived their whole 157 00:07:10,680 --> 00:07:13,880 Speaker 5: entire life pretty much there until they retired, and they're 158 00:07:13,920 --> 00:07:15,880 Speaker 5: buried there. And I realized I won't, no doubt, be 159 00:07:15,920 --> 00:07:17,760 Speaker 5: buried in Baltimore as well. But I thought I hadn't 160 00:07:17,800 --> 00:07:20,280 Speaker 5: really done enough for Baltimore compared to what I've done 161 00:07:20,320 --> 00:07:23,920 Speaker 5: in other philanthropic areas. And I thought, if the ownership 162 00:07:24,320 --> 00:07:26,680 Speaker 5: was ready to be sold and the owner, the current owners, 163 00:07:26,720 --> 00:07:29,440 Speaker 5: were ready to sell it, I would maybe come back 164 00:07:29,480 --> 00:07:31,320 Speaker 5: and bring in some other people in it and try 165 00:07:31,360 --> 00:07:33,440 Speaker 5: to infuse some energy into the team. 166 00:07:33,800 --> 00:07:36,160 Speaker 2: You come into this at a moment where you've seen 167 00:07:36,560 --> 00:07:38,800 Speaker 2: a number of your friends and peers, and you and 168 00:07:38,840 --> 00:07:40,560 Speaker 2: I have talked about this. Over the years, you've seen 169 00:07:40,600 --> 00:07:44,240 Speaker 2: them get into sports and in various forms and fashions, 170 00:07:44,240 --> 00:07:47,000 Speaker 2: whether it's Tony Wrestler or Steve pel Huger, Mark Lazri 171 00:07:47,640 --> 00:07:50,600 Speaker 2: many others. What did you hear from them that made 172 00:07:50,680 --> 00:07:53,920 Speaker 2: you either initially disinterested or interested? Like, what did you 173 00:07:53,960 --> 00:07:55,320 Speaker 2: take from those conversations? 174 00:07:55,720 --> 00:07:58,200 Speaker 5: Initially I had opportunities to buy sports teams as well. 175 00:07:58,200 --> 00:08:00,520 Speaker 5: In fact, the Wizards and the Caps owned by Abe 176 00:08:00,520 --> 00:08:02,680 Speaker 5: poland Abe was a friend of mine. He asked me 177 00:08:02,760 --> 00:08:04,960 Speaker 5: to consider buying it well before he actually sold it. 178 00:08:05,160 --> 00:08:07,360 Speaker 5: I didn't do that or buy any other team for 179 00:08:07,400 --> 00:08:10,200 Speaker 5: this reason. I was running a large private equity firm 180 00:08:10,200 --> 00:08:12,679 Speaker 5: with my partner who was the co CEO, and I thought, 181 00:08:12,720 --> 00:08:15,040 Speaker 5: if I say to my investors, who are giving me 182 00:08:15,080 --> 00:08:16,480 Speaker 5: money to try to get a good rate of return, 183 00:08:16,680 --> 00:08:18,520 Speaker 5: by the way, I'm not spending that much time on 184 00:08:18,560 --> 00:08:21,080 Speaker 5: your investments. I got a sports team I'm spending time on. 185 00:08:21,320 --> 00:08:23,320 Speaker 5: I thought they would criticize me, and I thought they 186 00:08:23,400 --> 00:08:25,360 Speaker 5: would say, you're not focused on what we were giving 187 00:08:25,400 --> 00:08:27,080 Speaker 5: you money for. But as I saw some of my 188 00:08:27,200 --> 00:08:29,800 Speaker 5: colleagues in private equity who had the same dilema I 189 00:08:29,880 --> 00:08:32,520 Speaker 5: had by sports teams, the rates of return didn't go 190 00:08:32,600 --> 00:08:34,640 Speaker 5: down and they actually made money on the sports teams. 191 00:08:34,640 --> 00:08:36,839 Speaker 5: I said, maybe I was wrong, Maybe you can do both, 192 00:08:37,280 --> 00:08:39,720 Speaker 5: And so I maybe regretted that I didn't participate in 193 00:08:39,760 --> 00:08:42,160 Speaker 5: some of the earlier deals when NBA teams were bought 194 00:08:42,400 --> 00:08:44,440 Speaker 5: for a lot lower prices than they were bought for 195 00:08:44,480 --> 00:08:47,360 Speaker 5: it today, and the same with baseball teams. And since 196 00:08:47,400 --> 00:08:49,600 Speaker 5: I wasn't really running Carlisle day to day any longer, 197 00:08:49,640 --> 00:08:51,360 Speaker 5: I thought I could afford to do it. But what 198 00:08:51,400 --> 00:08:53,199 Speaker 5: I learned from others is that you know, you got 199 00:08:53,200 --> 00:08:55,400 Speaker 5: to put energy into in time, and it takes more 200 00:08:55,440 --> 00:08:57,360 Speaker 5: time than I originally thought. I mean, I knew it 201 00:08:57,360 --> 00:08:59,920 Speaker 5: would take time, but what happens is you get addicted 202 00:08:59,920 --> 00:09:02,960 Speaker 5: to showing up at the games. So I hadn't been 203 00:09:03,000 --> 00:09:05,520 Speaker 5: to Oriols games very much, but now I'm going to 204 00:09:05,559 --> 00:09:07,320 Speaker 5: more Ools games than I ever dreamed of. He was 205 00:09:07,360 --> 00:09:09,480 Speaker 5: going to because as the owner I feel and the 206 00:09:09,520 --> 00:09:11,680 Speaker 5: control partner I feel, I should show up as a 207 00:09:11,679 --> 00:09:14,000 Speaker 5: symbol of the ownership group that I put together. And 208 00:09:14,200 --> 00:09:16,920 Speaker 5: it can be rewarding but also very time consuming. 209 00:09:17,280 --> 00:09:20,839 Speaker 2: Talking about your deal, consensus out there is you got 210 00:09:20,840 --> 00:09:23,680 Speaker 2: a pretty decent deal for this franchise. Does it feel 211 00:09:23,679 --> 00:09:25,520 Speaker 2: that way to you, Well. 212 00:09:25,280 --> 00:09:28,600 Speaker 5: I think we got a good deal because you know, 213 00:09:28,600 --> 00:09:30,559 Speaker 5: if they had auctioned it off and said, whoever the 214 00:09:30,640 --> 00:09:33,400 Speaker 5: highest bidder is, we'll get this, maybe somebody would have 215 00:09:33,400 --> 00:09:36,040 Speaker 5: come in at a higher price. However, the Angelos family 216 00:09:36,080 --> 00:09:38,640 Speaker 5: did not want to be seen as putting a company 217 00:09:38,840 --> 00:09:40,240 Speaker 5: or the team up for sale in a way that 218 00:09:40,360 --> 00:09:43,000 Speaker 5: might lead to somebody coming in and wanting to move 219 00:09:43,040 --> 00:09:45,960 Speaker 5: the team from Baltimore. It's very important Baltimore to have 220 00:09:46,000 --> 00:09:48,480 Speaker 5: the team stay there. And while a lease was signed, 221 00:09:48,840 --> 00:09:51,079 Speaker 5: was really a fifteen year lease. It might turn out 222 00:09:51,080 --> 00:09:52,840 Speaker 5: to be a thirty year lease, but it's a fifteen 223 00:09:52,920 --> 00:09:55,320 Speaker 5: year lease. And I think Baltimore was always nervous that 224 00:09:55,360 --> 00:09:57,400 Speaker 5: maybe somebody from a big city would come in and 225 00:09:57,440 --> 00:09:59,080 Speaker 5: say we're going to buy the team, but ultimately move it. 226 00:09:59,360 --> 00:10:01,360 Speaker 5: So the fact that I was from Baltimore, I think 227 00:10:01,440 --> 00:10:04,320 Speaker 5: made the family feel more comfortable in selling to me, 228 00:10:04,360 --> 00:10:06,880 Speaker 5: maybe at a slightly lower price, but maybe not as 229 00:10:06,960 --> 00:10:09,000 Speaker 5: much as you think slightly lower price, and maybe others 230 00:10:09,040 --> 00:10:11,560 Speaker 5: would have paid. His team was not without its challenges 231 00:10:11,600 --> 00:10:14,559 Speaker 5: because remember they have not been in the World Series 232 00:10:14,600 --> 00:10:16,800 Speaker 5: in forty years, and while the team was very good. 233 00:10:16,800 --> 00:10:19,800 Speaker 5: The year before I bought it with my partners, teams 234 00:10:19,840 --> 00:10:22,400 Speaker 5: had some real challenges up until the last year, and 235 00:10:22,440 --> 00:10:24,920 Speaker 5: so it's not a foregone conclusion that it's going to 236 00:10:24,920 --> 00:10:26,760 Speaker 5: be a home run that buy it at the price 237 00:10:26,800 --> 00:10:27,240 Speaker 5: we paid. 238 00:10:27,480 --> 00:10:29,720 Speaker 2: Well, he's you know, he's already using the you know, 239 00:10:29,760 --> 00:10:32,280 Speaker 2: the metaphors to you know, talk about his sports team. 240 00:10:32,600 --> 00:10:35,520 Speaker 2: Talk to us about putting this consortium of investors together. 241 00:10:35,600 --> 00:10:38,240 Speaker 2: You mentioned Mike Garrighetti, the CEO of ARES. He's a 242 00:10:38,240 --> 00:10:40,920 Speaker 2: big baseball fan, grew up in Rockland County, you know, 243 00:10:40,960 --> 00:10:44,640 Speaker 2: really a self made guy. You know, Yale goes to aries, 244 00:10:44,880 --> 00:10:48,520 Speaker 2: et cetera. You also, I think, in a very savvy way, 245 00:10:48,679 --> 00:10:53,160 Speaker 2: put together some people who have also relationships to Baltimore. 246 00:10:53,200 --> 00:10:54,360 Speaker 2: Tell us about that process. 247 00:10:54,559 --> 00:10:56,480 Speaker 5: Well, I thought it was important to have people in 248 00:10:56,559 --> 00:10:59,680 Speaker 5: Baltimore who would show to everybody that is in Baltimore 249 00:10:59,679 --> 00:11:02,760 Speaker 5: related effort. So Kurt Schmoke, who was a former mayor 250 00:11:02,800 --> 00:11:05,600 Speaker 5: of Baltimore and I grew up with Kurt, he agreed 251 00:11:05,640 --> 00:11:07,800 Speaker 5: to come in. He's not a wealthy person by the 252 00:11:07,800 --> 00:11:10,120 Speaker 5: standards of private equity people, because he'd been in public 253 00:11:10,200 --> 00:11:13,319 Speaker 5: services whole life. But he came in. I asked cal 254 00:11:13,400 --> 00:11:14,960 Speaker 5: Ripken if he would come in, and he did come 255 00:11:15,000 --> 00:11:17,560 Speaker 5: in as well. And then the number of wealthy Baltimoreans 256 00:11:17,559 --> 00:11:19,559 Speaker 5: who had not had a chance to invest in the 257 00:11:19,600 --> 00:11:21,920 Speaker 5: team when Peter Angelos bought it, they were willing now 258 00:11:21,960 --> 00:11:24,320 Speaker 5: to invest in it. So I mostly was focused on 259 00:11:24,320 --> 00:11:27,360 Speaker 5: people from Baltimore or that area. There are some from outside. 260 00:11:27,400 --> 00:11:29,640 Speaker 5: But what I've also found there's a lot of people 261 00:11:29,640 --> 00:11:32,719 Speaker 5: who left Baltimore have always retained an interest in Baltimore. 262 00:11:32,920 --> 00:11:35,400 Speaker 5: So there's one person who I won't raim him, but 263 00:11:35,760 --> 00:11:38,320 Speaker 5: who has an obsession with Baltimore Orioles. He mentioned to 264 00:11:38,320 --> 00:11:40,160 Speaker 5: me one time when I was with him in a 265 00:11:40,200 --> 00:11:42,320 Speaker 5: business meeting, and he said, if you ever buy the Oriols, 266 00:11:42,360 --> 00:11:44,199 Speaker 5: let me know. I'd like to come in to friends 267 00:11:44,200 --> 00:11:46,080 Speaker 5: and family. I thought he might be put in a 268 00:11:46,120 --> 00:11:48,520 Speaker 5: million dollars or something, but he put in, ye' say, 269 00:11:48,520 --> 00:11:52,000 Speaker 5: well over fifty million dollars and obviously wealthy guy, but 270 00:11:52,040 --> 00:11:53,920 Speaker 5: he told me that he's not missed a game in 271 00:11:53,960 --> 00:11:56,440 Speaker 5: twenty years. If he's not physically there, he watches it 272 00:11:56,480 --> 00:11:59,280 Speaker 5: on MLB dot com. And he's just got this obsession 273 00:11:59,280 --> 00:12:01,640 Speaker 5: with the Orioles. And I found there are a lot 274 00:12:01,679 --> 00:12:04,600 Speaker 5: of people that have this obsession with the ools. For example, 275 00:12:04,760 --> 00:12:07,280 Speaker 5: the owner's suite income to the New Yarts has fifty five 276 00:12:07,280 --> 00:12:10,840 Speaker 5: seats more or less. I told the management people, always 277 00:12:10,880 --> 00:12:13,400 Speaker 5: make sure it's filled with people from Baltimore or season 278 00:12:13,440 --> 00:12:16,840 Speaker 5: ticket holders or little leaguers or people that are diverse, 279 00:12:17,040 --> 00:12:19,280 Speaker 5: and we're not just a bunch of old white guys 280 00:12:19,320 --> 00:12:21,520 Speaker 5: like me sitting there. So they've done a very good job, 281 00:12:21,520 --> 00:12:23,400 Speaker 5: and we have it filled every night. That's one of 282 00:12:23,400 --> 00:12:25,839 Speaker 5: the dangers of actually being an owner. There is filled 283 00:12:25,840 --> 00:12:27,520 Speaker 5: every night. But there's a lot of food this in 284 00:12:27,559 --> 00:12:30,040 Speaker 5: the owner's boxes, and I found that you can gain 285 00:12:30,080 --> 00:12:33,200 Speaker 5: a lot of weight because the food is, you know, 286 00:12:34,000 --> 00:12:35,920 Speaker 5: like pizza and French fries and so forth. 287 00:12:35,960 --> 00:12:37,920 Speaker 2: So I got to be very careful ballpark food. 288 00:12:38,080 --> 00:12:39,679 Speaker 4: Yes, I have it filled up. 289 00:12:39,679 --> 00:12:42,559 Speaker 5: And there are people who have been season ticket holders 290 00:12:42,600 --> 00:12:45,080 Speaker 5: for forty years, forty five years, and they said they've 291 00:12:45,120 --> 00:12:47,959 Speaker 5: never been the owner's box and they just love the ools. 292 00:12:47,960 --> 00:12:51,080 Speaker 5: And so I'm trying to say to people, look, I'm 293 00:12:51,120 --> 00:12:54,800 Speaker 5: not criticizing my predecessors. They had a complicated situation, but 294 00:12:55,000 --> 00:12:57,120 Speaker 5: I'm now trying to say this is part of the 295 00:12:57,160 --> 00:13:00,520 Speaker 5: revitalization of Baltimore that I'm trying to help with. Baltimore 296 00:13:00,559 --> 00:13:02,600 Speaker 5: is a city that has a lot of challenges. When 297 00:13:02,600 --> 00:13:04,320 Speaker 5: I was growing up, it was the ninth biggest city 298 00:13:04,320 --> 00:13:06,719 Speaker 5: in the United States, population of roughly nine hundred and 299 00:13:06,760 --> 00:13:09,319 Speaker 5: thirty thousand people. Today it's about half that size, a 300 00:13:09,360 --> 00:13:11,319 Speaker 5: little bit more than half that size, and one of 301 00:13:11,360 --> 00:13:13,960 Speaker 5: the reasons is that there's been white flight to the 302 00:13:13,960 --> 00:13:16,520 Speaker 5: Baltimore County. Baltimore City is one of the two cities 303 00:13:16,559 --> 00:13:18,600 Speaker 5: the United States, the other being Saint Louis that is 304 00:13:18,640 --> 00:13:20,960 Speaker 5: not in a county. So when you leave Baltimore City 305 00:13:20,960 --> 00:13:23,920 Speaker 5: and go to Baltimore County, your income taxes and your 306 00:13:24,360 --> 00:13:27,319 Speaker 5: property taxes don't flow back to Baltimore City. The city 307 00:13:27,440 --> 00:13:29,679 Speaker 5: therefore has had lots of challenges that you see in 308 00:13:29,840 --> 00:13:33,560 Speaker 5: urban areas, and it has had, you know, crime problems, 309 00:13:33,600 --> 00:13:36,960 Speaker 5: It's had STD problems, the illiteracy problems, and so I'm 310 00:13:37,000 --> 00:13:39,400 Speaker 5: not by myself going to solve all those problems, obviously, 311 00:13:39,679 --> 00:13:42,040 Speaker 5: but what I'm trying to do is say, let's revitalize Baltimore. 312 00:13:42,120 --> 00:13:44,280 Speaker 5: Let's get some corporate headquarters that come back there. Many 313 00:13:44,360 --> 00:13:46,720 Speaker 5: corporate heaculars have left, and so what I'm trying to 314 00:13:46,720 --> 00:13:49,520 Speaker 5: do is infuse the team with a sense of energy, 315 00:13:49,640 --> 00:13:51,840 Speaker 5: and hopefully more people in the city will say this 316 00:13:51,920 --> 00:13:54,000 Speaker 5: is a great place, we should stay here, and maybe 317 00:13:54,000 --> 00:13:56,920 Speaker 5: people from outside of Baltimore City might relocate there or 318 00:13:56,960 --> 00:13:59,200 Speaker 5: move back there. I hope that will happen, but obviously 319 00:13:59,280 --> 00:14:00,200 Speaker 5: it takes some time. 320 00:14:00,200 --> 00:14:02,040 Speaker 2: Before we get too far away from the ownership. We 321 00:14:02,080 --> 00:14:05,320 Speaker 2: probably should also point out that Mike Bloomberg is part 322 00:14:05,360 --> 00:14:07,320 Speaker 2: of the ownership group. 323 00:14:07,640 --> 00:14:10,160 Speaker 3: So David playing against Baltimore for almost twenty five years, 324 00:14:10,200 --> 00:14:12,360 Speaker 3: I'll tell you it's one of the greatest iconic blue 325 00:14:12,400 --> 00:14:14,600 Speaker 3: chip franchise, not don't even baseball, but in all the sports, 326 00:14:14,640 --> 00:14:17,160 Speaker 3: and for me playing there for so many years, it 327 00:14:17,240 --> 00:14:20,560 Speaker 3: was my favorite stadium. Canden Yards is just amazing. Kyle 328 00:14:20,680 --> 00:14:23,200 Speaker 3: Ripken is my favorite player, So I'm very tied to 329 00:14:23,280 --> 00:14:25,920 Speaker 3: Kyle kinn senior Eddie Murray in the great history of 330 00:14:25,960 --> 00:14:26,800 Speaker 3: the Orioles. 331 00:14:27,240 --> 00:14:27,920 Speaker 2: What kind of. 332 00:14:27,880 --> 00:14:29,480 Speaker 3: Owner are you going to be or are you? Are 333 00:14:29,520 --> 00:14:31,520 Speaker 3: you one that talks to the GM and says, hey, 334 00:14:31,520 --> 00:14:33,920 Speaker 3: one guy's moved around. Do you tell Gunnar Henderson to 335 00:14:34,000 --> 00:14:35,720 Speaker 3: get your elbow down, get it up? Are you kind 336 00:14:35,720 --> 00:14:38,240 Speaker 3: of more just like watching from the stands and hoping 337 00:14:38,280 --> 00:14:38,760 Speaker 3: for the best. 338 00:14:39,040 --> 00:14:41,400 Speaker 5: Well, I have to be very honest, I don't know 339 00:14:41,560 --> 00:14:44,840 Speaker 5: as much about baseball as as maybe I wish I did. 340 00:14:45,000 --> 00:14:48,080 Speaker 5: I played Little league baseball, and I peaked at eleven, 341 00:14:48,560 --> 00:14:52,480 Speaker 5: and then the twelve or thirteen people started getting bigger 342 00:14:52,480 --> 00:14:54,680 Speaker 5: than me. And I thought, when I was eleven, you know, 343 00:14:54,760 --> 00:14:57,320 Speaker 5: maybe Jewish Little League All Stars would get to the 344 00:14:57,360 --> 00:14:59,560 Speaker 5: major leagues. But I found out that doesn't usually happen. 345 00:15:00,000 --> 00:15:03,440 Speaker 5: So I haven't followed baseball as closely as other people have, 346 00:15:03,520 --> 00:15:06,120 Speaker 5: and therefore I'm learning the game right now. We have 347 00:15:06,280 --> 00:15:09,080 Speaker 5: a general manager who was voted the American League General 348 00:15:09,120 --> 00:15:11,800 Speaker 5: Manager of the Year last year. His name is Mike Elias, 349 00:15:11,800 --> 00:15:14,680 Speaker 5: who was a baseball player at Yale. Very smart person 350 00:15:14,720 --> 00:15:16,800 Speaker 5: from the Washington area, went to high school in Washington. 351 00:15:17,000 --> 00:15:21,240 Speaker 5: He has what they call sabermetrics down cold. What was 352 00:15:21,320 --> 00:15:25,280 Speaker 5: described as moneyball years ago is hieroglyphics compared to what 353 00:15:25,320 --> 00:15:28,480 Speaker 5: it is today, because today it's so much more sophisticated. 354 00:15:28,840 --> 00:15:31,600 Speaker 5: And so when he comes to me and Mike arragety 355 00:15:31,640 --> 00:15:34,080 Speaker 5: and says this player is worth X or Y or Z, 356 00:15:34,600 --> 00:15:37,000 Speaker 5: I don't really know how I can challenge him, because 357 00:15:37,000 --> 00:15:38,800 Speaker 5: he knows much more than I do. And he's got 358 00:15:38,920 --> 00:15:41,880 Speaker 5: about twenty some people on his team that do statistics 359 00:15:41,880 --> 00:15:44,120 Speaker 5: and do scouting and so forth. So it's hard for 360 00:15:44,160 --> 00:15:46,200 Speaker 5: me to say, well, you should do this or do that. 361 00:15:46,320 --> 00:15:49,320 Speaker 5: So I am the type of owner right now says 362 00:15:49,520 --> 00:15:52,000 Speaker 5: I'd like to be informed. If you want my judgment, 363 00:15:52,040 --> 00:15:53,480 Speaker 5: I'm happy to give it to you. But I really 364 00:15:53,480 --> 00:15:57,000 Speaker 5: don't have enough knowledge to tell you do something different 365 00:15:57,040 --> 00:15:58,840 Speaker 5: than you want to do. So, for example, when the 366 00:15:58,880 --> 00:16:01,520 Speaker 5: trading deadline came, everybody's sitting around for a couple of 367 00:16:01,560 --> 00:16:03,960 Speaker 5: days trading. I really don't have the ability to say 368 00:16:04,040 --> 00:16:06,520 Speaker 5: you should get this picture versus that picture. I don't 369 00:16:06,560 --> 00:16:08,720 Speaker 5: have that kind of background. So I can help the 370 00:16:08,760 --> 00:16:10,800 Speaker 5: team by saying, look, I know the CEO of this company. 371 00:16:10,800 --> 00:16:13,480 Speaker 5: Maybe they can be an advertiser, or they could buy sponsorships. 372 00:16:13,600 --> 00:16:17,040 Speaker 5: I can do that now. If i'd seen Alex Rodriguez, 373 00:16:17,040 --> 00:16:19,680 Speaker 5: I'd say we should get this guy signed up. But 374 00:16:20,160 --> 00:16:21,880 Speaker 5: you know, I haven't seen a lot of Alex rodriguez 375 00:16:21,920 --> 00:16:24,280 Speaker 5: is floating around. But if I see one, say we 376 00:16:24,280 --> 00:16:25,360 Speaker 5: should sign that person up. 377 00:16:25,680 --> 00:16:29,160 Speaker 2: You mentioned that the other owners mean you've been in 378 00:16:29,200 --> 00:16:34,720 Speaker 2: some interesting consortia of investors before. What's this group been like, well. 379 00:16:34,560 --> 00:16:36,600 Speaker 5: It's an interesting phenomenon. I think it's true with the 380 00:16:36,680 --> 00:16:40,120 Speaker 5: NFL and the NBA. When you own a team, people 381 00:16:40,200 --> 00:16:44,200 Speaker 5: treat you with much greater respect generally than maybe you 382 00:16:44,640 --> 00:16:47,800 Speaker 5: would have expected. In other words, if Carlisle owns a company, 383 00:16:48,000 --> 00:16:49,640 Speaker 5: I don't really have people walking up to me in 384 00:16:49,640 --> 00:16:52,480 Speaker 5: the streets saying, hey, you bought a great automobile parts company. Yeah, 385 00:16:52,480 --> 00:16:54,400 Speaker 5: that's great. You're doing a great job for America. I'm 386 00:16:54,400 --> 00:16:57,400 Speaker 5: making automobile parts more readily available. Nobody says that, like 387 00:16:57,480 --> 00:16:59,520 Speaker 5: when you buy a baseball team or a football team, 388 00:16:59,680 --> 00:17:01,280 Speaker 5: people come up and you say, hey, you should do this, 389 00:17:01,440 --> 00:17:03,720 Speaker 5: you should do that. People feel more engaged, They're willing 390 00:17:03,800 --> 00:17:06,520 Speaker 5: to talk about it much more, and I've reconnected with 391 00:17:06,520 --> 00:17:08,159 Speaker 5: a lot of people. People will call me all the time, 392 00:17:08,200 --> 00:17:09,600 Speaker 5: you can get me tickets for this, or can I 393 00:17:09,600 --> 00:17:11,119 Speaker 5: come to the owner's box. And you know, it's a 394 00:17:11,119 --> 00:17:13,520 Speaker 5: good feeling because I'm, you know, making people happy because 395 00:17:13,520 --> 00:17:15,320 Speaker 5: they want to come to the owner's box, and I 396 00:17:16,280 --> 00:17:19,000 Speaker 5: enjoy it at the time being it's been relatively pleasurable. 397 00:17:19,119 --> 00:17:21,800 Speaker 5: That's because we're doing reasonably well. If we weren't doing well, 398 00:17:21,840 --> 00:17:24,040 Speaker 5: I guess I wouldn't be so happy. I can't say 399 00:17:24,040 --> 00:17:25,560 Speaker 5: that I'll get great air from it because I already 400 00:17:25,560 --> 00:17:27,920 Speaker 5: have great It's fun. I can see why people who 401 00:17:27,920 --> 00:17:31,480 Speaker 5: are owners enjoy being owners. You're treated with some respect 402 00:17:31,480 --> 00:17:34,360 Speaker 5: in most cases, not always. You're building something, you're doing 403 00:17:34,359 --> 00:17:36,560 Speaker 5: something to help your local community. And I can see 404 00:17:36,560 --> 00:17:38,520 Speaker 5: the pleasure that people get out of owning sports. And 405 00:17:38,600 --> 00:17:40,360 Speaker 5: if I had it before, maybe I would have done 406 00:17:40,359 --> 00:17:41,480 Speaker 5: it earlier, but I didn't. 407 00:17:41,720 --> 00:17:44,760 Speaker 2: Did any of the existing owners, the more senior owners 408 00:17:44,880 --> 00:17:46,719 Speaker 2: or folks who've been in the game, did they give 409 00:17:46,760 --> 00:17:48,200 Speaker 2: you any advice when you came in? 410 00:17:48,640 --> 00:17:50,800 Speaker 5: Yes, one owner said, you know, I like you, You're 411 00:17:50,840 --> 00:17:52,760 Speaker 5: a good guy, but you should have paid a higher price. 412 00:17:54,720 --> 00:17:56,480 Speaker 5: So what do you mean, he says, Well, I think 413 00:17:56,520 --> 00:17:59,480 Speaker 5: my franchise of is worth more than you think it's worth. 414 00:17:59,520 --> 00:18:01,880 Speaker 5: In other words, I think baseball franchise are worth more. 415 00:18:01,960 --> 00:18:03,719 Speaker 5: And so you didn't pay a high enough price, right, 416 00:18:04,119 --> 00:18:05,840 Speaker 5: you put a comp in the market that he didn't. 417 00:18:05,880 --> 00:18:06,959 Speaker 4: Yeah, so I guess that's right. 418 00:18:07,000 --> 00:18:10,879 Speaker 5: I won't identify that person, but I'm reasonably happy with 419 00:18:10,960 --> 00:18:13,560 Speaker 5: where we are today. I hope we continue to do 420 00:18:13,640 --> 00:18:14,359 Speaker 5: reasonably well. 421 00:18:14,400 --> 00:18:16,640 Speaker 2: And what about within your group? You know, I mean, 422 00:18:16,760 --> 00:18:19,560 Speaker 2: Mike Irraghetty is a really interesting figure, and I mean, 423 00:18:19,600 --> 00:18:21,680 Speaker 2: I don't think you guys were super close friends. 424 00:18:21,800 --> 00:18:22,880 Speaker 4: I did really know him that well. 425 00:18:22,920 --> 00:18:26,080 Speaker 5: Mike knows much more about baseball than I do, and 426 00:18:26,640 --> 00:18:30,719 Speaker 5: did Mike played fantasy baseball for twenty seven years. Wow, 427 00:18:30,800 --> 00:18:33,520 Speaker 5: I didn't even know what fantasy baseball really was. And 428 00:18:33,560 --> 00:18:36,640 Speaker 5: he also played baseball in high school, so hees much 429 00:18:36,680 --> 00:18:40,480 Speaker 5: more background. He really knows the players inside out, upside down, 430 00:18:40,560 --> 00:18:43,240 Speaker 5: much better than I do, honestly, So I'm really learning it. 431 00:18:43,280 --> 00:18:46,360 Speaker 5: So like the situation was this, I did follow baseball 432 00:18:46,560 --> 00:18:49,520 Speaker 5: until I went to college in nineteen sixty six. My 433 00:18:49,600 --> 00:18:51,960 Speaker 5: mother then threw away all my baseball cards, threw away 434 00:18:52,000 --> 00:18:54,560 Speaker 5: all my baseball books, and so I kind of been 435 00:18:54,640 --> 00:18:57,560 Speaker 5: rip van Winkle for fifty years. I kind of coming back. 436 00:18:57,600 --> 00:19:00,560 Speaker 5: And now I'm learning that there are statistics that I 437 00:19:00,600 --> 00:19:02,720 Speaker 5: did never heard of before in nineteen sixty six, so 438 00:19:02,840 --> 00:19:06,280 Speaker 5: I didn't know what war meant, wins above replacement. I 439 00:19:06,400 --> 00:19:08,840 Speaker 5: never heard of that really before, and now I'm digging 440 00:19:08,880 --> 00:19:12,000 Speaker 5: into that, or quality starts. I mean, the old days 441 00:19:12,080 --> 00:19:15,760 Speaker 5: was complete games. Now quality starts or ops, so the 442 00:19:15,760 --> 00:19:17,600 Speaker 5: statistics are a little bit different than the ones I 443 00:19:17,760 --> 00:19:20,240 Speaker 5: used to know about and focus on. It's amazing how 444 00:19:20,320 --> 00:19:22,520 Speaker 5: much data you can get now and how much the 445 00:19:22,560 --> 00:19:25,840 Speaker 5: statistics are so important at analyzing whether players good or not. 446 00:19:26,040 --> 00:19:27,720 Speaker 5: And then other way is you know, in the free 447 00:19:27,720 --> 00:19:30,920 Speaker 5: agency situation in baseball, you can get these large contracts. 448 00:19:30,920 --> 00:19:32,159 Speaker 5: I don't know if you know anybody ever got a 449 00:19:32,200 --> 00:19:36,720 Speaker 5: large contract, but these contracts going to be very, very large, 450 00:19:36,840 --> 00:19:39,720 Speaker 5: and in some cases they work out, some cases maybe not. 451 00:19:40,119 --> 00:19:41,920 Speaker 4: But you have to make these big bets. 452 00:19:41,960 --> 00:19:44,040 Speaker 5: And then you know, sometimes you can give a person 453 00:19:44,040 --> 00:19:46,720 Speaker 5: a large contract and they get injured right away, you're 454 00:19:46,760 --> 00:19:48,520 Speaker 5: on the hook for a long time. 455 00:19:48,640 --> 00:19:50,800 Speaker 2: Well, some people know a little bit about being on 456 00:19:50,880 --> 00:19:54,479 Speaker 2: both sides of a large contract, right, no comment. So 457 00:19:54,560 --> 00:19:57,040 Speaker 2: I want to go back to this notion of the 458 00:19:57,080 --> 00:19:59,480 Speaker 2: team as a community asset. You and I have talked 459 00:19:59,520 --> 00:20:04,879 Speaker 2: a lot over the years about patriotic philanthropy. Your philanthropic 460 00:20:05,000 --> 00:20:09,200 Speaker 2: portfolio is fascinating to sort of go down the list 461 00:20:09,280 --> 00:20:13,840 Speaker 2: from documents to pandas what did you learn through those 462 00:20:14,240 --> 00:20:18,240 Speaker 2: essentially philanthropic almost investments, as I think you might consider 463 00:20:18,280 --> 00:20:20,400 Speaker 2: them that informed this deal. 464 00:20:20,880 --> 00:20:24,159 Speaker 5: Well, clearly, if you buy something like the Declaration of Independence, 465 00:20:24,280 --> 00:20:27,320 Speaker 5: people feel that you're you know, in fact, contributing something 466 00:20:27,359 --> 00:20:29,520 Speaker 5: to the country, because all these will be in effect 467 00:20:29,920 --> 00:20:32,399 Speaker 5: publicly available, and I'm not just courting them and putting 468 00:20:32,400 --> 00:20:35,879 Speaker 5: in my house to show just my friends. And so 469 00:20:35,960 --> 00:20:37,720 Speaker 5: when I bought the Magna Carta, I gave it to 470 00:20:37,720 --> 00:20:40,639 Speaker 5: the National Archives to put on permit display. And so 471 00:20:40,760 --> 00:20:43,960 Speaker 5: I realized that people are thanking other people who do 472 00:20:44,040 --> 00:20:46,720 Speaker 5: things for the country, but people also thank people do 473 00:20:46,800 --> 00:20:49,040 Speaker 5: something for a city. So if you buy a baseball 474 00:20:49,080 --> 00:20:51,399 Speaker 5: team and you're thought to be adding value to the city, 475 00:20:51,440 --> 00:20:54,120 Speaker 5: you're going to do more than just try to make profits. 476 00:20:54,119 --> 00:20:56,439 Speaker 5: You're going to try to help the city. You're going 477 00:20:56,480 --> 00:20:58,720 Speaker 5: to re energize the franchise, You're going to help do 478 00:20:58,800 --> 00:21:01,160 Speaker 5: things that make people in the city. 479 00:21:01,280 --> 00:21:02,240 Speaker 4: That's a plus. 480 00:21:02,560 --> 00:21:05,600 Speaker 5: In Baltimore, like some of other cities, there aren't as 481 00:21:05,640 --> 00:21:08,520 Speaker 5: many other outside activities as there might be in New 482 00:21:08,600 --> 00:21:11,520 Speaker 5: York or Los Angeles. So in Baltimore, the Oriols have 483 00:21:11,640 --> 00:21:13,720 Speaker 5: been a really important part of the culture for such 484 00:21:13,720 --> 00:21:16,960 Speaker 5: a long time. And when the Colts left years ago 485 00:21:17,119 --> 00:21:20,280 Speaker 5: to go to Indianapolis, that also tore away some of 486 00:21:20,320 --> 00:21:22,040 Speaker 5: the fabric of Baltimore. Now where they do have the 487 00:21:22,119 --> 00:21:25,160 Speaker 5: Ravens an excellent team, but it's not quite the same 488 00:21:25,240 --> 00:21:27,359 Speaker 5: as the Cults in many respects. So it's a very 489 00:21:27,359 --> 00:21:29,600 Speaker 5: good team and have a very good owner. The Oriols 490 00:21:29,600 --> 00:21:31,840 Speaker 5: are just part of the fabric of Baltimore. And I 491 00:21:31,840 --> 00:21:34,520 Speaker 5: remember when I was a little boy, you could get 492 00:21:34,520 --> 00:21:37,200 Speaker 5: a letter from your mother or father saying I want 493 00:21:37,200 --> 00:21:39,160 Speaker 5: to be excused to go to opening Day, and every 494 00:21:39,200 --> 00:21:41,680 Speaker 5: teacher would honor that because going to opening day of 495 00:21:41,760 --> 00:21:44,199 Speaker 5: the Oriols it's like a patriotic kind of thing. How 496 00:21:44,200 --> 00:21:46,360 Speaker 5: could you not let your student go to do that? 497 00:21:46,560 --> 00:21:48,879 Speaker 5: And it is interesting though, when you think about sports teams. 498 00:21:49,160 --> 00:21:51,320 Speaker 5: Why is it that somebody lives in Baltimore roots for 499 00:21:51,320 --> 00:21:54,080 Speaker 5: the Baltimore Oriols, what is it? Or lives in Los 500 00:21:54,119 --> 00:21:56,200 Speaker 5: Angeles roots for the Dodgers or the Angels. 501 00:21:56,400 --> 00:21:57,199 Speaker 4: Why is it? 502 00:21:57,240 --> 00:21:59,919 Speaker 5: Because it makes people feel proud of the area they 503 00:22:00,000 --> 00:22:02,280 Speaker 5: live in. They feel like they're part of something. And 504 00:22:02,320 --> 00:22:05,240 Speaker 5: so if the Minnesota Timberwolves, for example, is a good example, 505 00:22:05,440 --> 00:22:09,119 Speaker 5: it's a state name around it, not in Minneapolis, right, 506 00:22:09,160 --> 00:22:11,520 Speaker 5: So people and throughout the state are probably very proud 507 00:22:11,560 --> 00:22:13,800 Speaker 5: of the team, as they should be. And some teams 508 00:22:13,840 --> 00:22:16,560 Speaker 5: are really focused on cities some are states, but people 509 00:22:16,800 --> 00:22:18,800 Speaker 5: take a pride in that. Just like when our Olympic 510 00:22:18,840 --> 00:22:21,439 Speaker 5: team goes overseas, all Americans are proud of what the 511 00:22:21,480 --> 00:22:24,920 Speaker 5: American Olympic team does. And when your local team does well, 512 00:22:24,920 --> 00:22:27,359 Speaker 5: you feel kinds of pride in. I guess it's a 513 00:22:27,400 --> 00:22:30,840 Speaker 5: sense of people feeling that I'm more than my body, myself. 514 00:22:30,880 --> 00:22:33,560 Speaker 5: I'm just more than just one person. I am part 515 00:22:33,560 --> 00:22:36,119 Speaker 5: of a larger organization. It makes me feel proud to 516 00:22:36,160 --> 00:22:38,440 Speaker 5: be part of a larger organization that's doing well. That's 517 00:22:38,480 --> 00:22:40,639 Speaker 5: why I guess people root for these teams and they 518 00:22:40,680 --> 00:22:42,040 Speaker 5: feel so passionately. 519 00:22:41,560 --> 00:22:43,760 Speaker 3: About them, you know, David, I always find that interesting. 520 00:22:43,800 --> 00:22:46,679 Speaker 3: When Carlile has a great return on capital and a 521 00:22:46,680 --> 00:22:49,879 Speaker 3: big investment, your investors don't say we, They just said Carlow. 522 00:22:49,960 --> 00:22:52,239 Speaker 3: And I'm an investor, right. But when the Oreas win 523 00:22:52,359 --> 00:22:54,520 Speaker 3: is we won or we lost. In my mood either 524 00:22:54,520 --> 00:22:57,240 Speaker 3: goes up or down, depending on winds and losses. I 525 00:22:57,280 --> 00:22:58,440 Speaker 3: find that to be fascinating. 526 00:22:58,680 --> 00:23:01,080 Speaker 5: It's true when we go to a game and we win, 527 00:23:01,600 --> 00:23:04,760 Speaker 5: I feel really happy, I'm really cheering. I'm going out, 528 00:23:04,920 --> 00:23:07,320 Speaker 5: you know, getting selfies with people who want them, and 529 00:23:07,400 --> 00:23:07,840 Speaker 5: so forth. 530 00:23:08,000 --> 00:23:09,600 Speaker 4: When we lose. I'm so dejected. 531 00:23:09,640 --> 00:23:11,760 Speaker 5: It feels like a dagger was in my heart, and sa, 532 00:23:11,880 --> 00:23:13,840 Speaker 5: how could I have let the fans down? Why didn't 533 00:23:13,840 --> 00:23:16,359 Speaker 5: we do better? I noticed I get fewer selfie requests 534 00:23:16,400 --> 00:23:19,639 Speaker 5: after we lose the game. People don't as interested in 535 00:23:19,680 --> 00:23:22,680 Speaker 5: pictures anymore, and I feel bad for people. The little 536 00:23:22,680 --> 00:23:25,000 Speaker 5: boys will come up to me, and girls as well, 537 00:23:25,080 --> 00:23:27,160 Speaker 5: and say, will you autograph my baseball? And I say, look, 538 00:23:27,560 --> 00:23:30,280 Speaker 5: I'm not, you know, a player, but they, for some reason, 539 00:23:30,320 --> 00:23:33,080 Speaker 5: they want my autograph. And so I don't have very 540 00:23:33,080 --> 00:23:35,240 Speaker 5: good handwriting, and as you know, signing a baseball is 541 00:23:35,280 --> 00:23:38,679 Speaker 5: not not easy. And I think when handwriting was being taught, 542 00:23:38,920 --> 00:23:41,160 Speaker 5: I think those were the Jewish holidays. So I wasn't 543 00:23:41,160 --> 00:23:43,159 Speaker 5: in school, and so I have to write, I do 544 00:23:43,320 --> 00:23:45,720 Speaker 5: this little print, and then because I'm a lawyer, I 545 00:23:45,760 --> 00:23:48,960 Speaker 5: write I put the date in. No other person puts 546 00:23:49,000 --> 00:23:50,399 Speaker 5: the date in when they sign the autograph, but I 547 00:23:50,440 --> 00:23:52,400 Speaker 5: want to make sure they know it's it actually happen 548 00:23:52,440 --> 00:23:53,120 Speaker 5: on a certain date. 549 00:23:53,600 --> 00:23:55,399 Speaker 2: Do you think you could do some sort of clinic 550 00:23:55,440 --> 00:23:56,800 Speaker 2: with him signing baseball? 551 00:23:57,119 --> 00:23:59,800 Speaker 3: That's about the only thing tease David Rubenstein. 552 00:24:12,720 --> 00:24:14,720 Speaker 2: You do raise a really interesting point that I've been 553 00:24:14,720 --> 00:24:17,640 Speaker 2: thinking about because you make your career, I mean, we'll 554 00:24:17,640 --> 00:24:19,920 Speaker 2: do a very quick career journey. You know, you start 555 00:24:19,960 --> 00:24:22,600 Speaker 2: as a lawyer, you work in the White House, you 556 00:24:22,840 --> 00:24:25,720 Speaker 2: work for some law firms, you start Carlas. I'm going 557 00:24:25,800 --> 00:24:28,760 Speaker 2: very fast here. Obviously, you're very successful at Carlisle. You're 558 00:24:28,800 --> 00:24:31,840 Speaker 2: one of the pre eminent fundraisers in the industry in 559 00:24:31,880 --> 00:24:35,280 Speaker 2: across Wall Street. Then, as you mentioned, you do a 560 00:24:35,320 --> 00:24:37,879 Speaker 2: TV show with Bloomberg, and you know, you get a 561 00:24:37,880 --> 00:24:40,000 Speaker 2: little notoriety from that, and people want to come on 562 00:24:40,000 --> 00:24:42,199 Speaker 2: your show and talk to you. This feels like an 563 00:24:42,480 --> 00:24:45,960 Speaker 2: entirely new level of notoriety. Tell us what that's like 564 00:24:46,280 --> 00:24:47,919 Speaker 2: and how you're responding to it. 565 00:24:48,119 --> 00:24:50,119 Speaker 5: Well, in all the years I've been in private equity, 566 00:24:50,240 --> 00:24:52,280 Speaker 5: nobody ever came up to me in the streets and said, hey, 567 00:24:52,280 --> 00:24:53,879 Speaker 5: you're doing a great job at private equity. 568 00:24:53,880 --> 00:24:54,600 Speaker 4: Nobody ever said that. 569 00:24:55,320 --> 00:24:57,959 Speaker 5: They might have said the opposite they maybe they did, 570 00:24:58,040 --> 00:25:00,000 Speaker 5: but nobody ever paid attention. I run around the world, 571 00:25:00,000 --> 00:25:01,560 Speaker 5: Nobody ever pay attention. I will walk down the street, 572 00:25:01,560 --> 00:25:03,040 Speaker 5: nobody know who I am. When I started doing the 573 00:25:03,040 --> 00:25:06,280 Speaker 5: Bloomberg Show. Bloomberg is all over the world, and so 574 00:25:06,720 --> 00:25:09,400 Speaker 5: any city I go into now, there's inevitably somebody will 575 00:25:09,400 --> 00:25:10,679 Speaker 5: come up to me and say, I really like your 576 00:25:10,720 --> 00:25:11,240 Speaker 5: TV show. 577 00:25:11,560 --> 00:25:12,080 Speaker 4: It's great. 578 00:25:12,359 --> 00:25:15,160 Speaker 5: That's amazing to me that young people or older people 579 00:25:15,240 --> 00:25:17,920 Speaker 5: see it all over the world. But baseball is even 580 00:25:17,960 --> 00:25:20,639 Speaker 5: a higher degree than that. I mean, I am recognized 581 00:25:20,680 --> 00:25:22,879 Speaker 5: more than I ever have been because I own a 582 00:25:22,920 --> 00:25:25,600 Speaker 5: sports team, and not because I've only done anything good 583 00:25:25,640 --> 00:25:27,359 Speaker 5: for the sports team yet day you know, we haven't 584 00:25:27,359 --> 00:25:29,440 Speaker 5: done anything so you know, to win a World Series. 585 00:25:29,520 --> 00:25:31,399 Speaker 5: Yet since I've been an owner, I am amazed at 586 00:25:31,400 --> 00:25:34,280 Speaker 5: how many people are happy to talk about it. People 587 00:25:34,320 --> 00:25:35,720 Speaker 5: don't come up to me on the street and say, 588 00:25:35,800 --> 00:25:37,320 Speaker 5: let's talk about this private equy deal. 589 00:25:37,200 --> 00:25:39,680 Speaker 4: You did recently. No one does that. They say, let's 590 00:25:39,720 --> 00:25:40,440 Speaker 4: talk about the team. 591 00:25:40,560 --> 00:25:40,879 Speaker 2: Yeah. 592 00:25:40,960 --> 00:25:43,600 Speaker 5: It is amazing, and how I've reconnected with people that 593 00:25:43,600 --> 00:25:45,560 Speaker 5: I hadn't seen in twenty or thirty or forty years. 594 00:25:45,680 --> 00:25:48,399 Speaker 5: It's a good way to reconnect. I recognize that, like 595 00:25:48,440 --> 00:25:50,520 Speaker 5: anybody who's an owner of a team, you're really a 596 00:25:50,760 --> 00:25:53,560 Speaker 5: temporary custodian because somebody's going to own it after you, 597 00:25:53,760 --> 00:25:55,399 Speaker 5: and then somebody's going to own it for that person. 598 00:25:55,560 --> 00:25:58,199 Speaker 5: So you're really representing the city for a relatively finite 599 00:25:58,200 --> 00:26:00,560 Speaker 5: period of time. Now there are owners who owned teams 600 00:26:00,600 --> 00:26:03,760 Speaker 5: for fifty years or so, but generally most owners probably 601 00:26:04,040 --> 00:26:05,719 Speaker 5: own it for a shorter period of time than that. 602 00:26:06,119 --> 00:26:09,560 Speaker 5: And it is an interesting phenomenon how the business of sports, 603 00:26:09,600 --> 00:26:12,720 Speaker 5: as you all have recognized so well, has taken off 604 00:26:12,720 --> 00:26:15,080 Speaker 5: in a way that didn't exist when I was a 605 00:26:15,119 --> 00:26:18,440 Speaker 5: little boy. You didn't see owners selling teams all that much. 606 00:26:18,480 --> 00:26:21,280 Speaker 5: You didn't read about profits being taken all that much. Today, 607 00:26:21,640 --> 00:26:23,480 Speaker 5: many people buy these teams and in four or five 608 00:26:23,560 --> 00:26:25,320 Speaker 5: or six years they go on the next thing, or 609 00:26:25,320 --> 00:26:27,399 Speaker 5: they sell their team at a big profit. It's a 610 00:26:27,440 --> 00:26:30,680 Speaker 5: different world. Maybe better, maybe not, but in any way, 611 00:26:30,680 --> 00:26:32,960 Speaker 5: it's a much different world. And it's not only confined 612 00:26:33,000 --> 00:26:36,560 Speaker 5: to the United States. Obviously, overseas people are buying sports 613 00:26:36,600 --> 00:26:38,720 Speaker 5: franchise as well, and people in America are buying sports 614 00:26:38,720 --> 00:26:41,480 Speaker 5: franchise all over the world. And then in the old days, 615 00:26:41,680 --> 00:26:44,399 Speaker 5: it was only males who were sports figures who are 616 00:26:44,520 --> 00:26:46,960 Speaker 5: on these teams. Now you have women sports that has 617 00:26:47,000 --> 00:26:48,840 Speaker 5: also done quite well financially for people. 618 00:26:49,119 --> 00:26:50,960 Speaker 3: So I'm going to go back to something Jason said, 619 00:26:51,119 --> 00:26:53,439 Speaker 3: because you know, you talked about being one of the 620 00:26:53,480 --> 00:26:57,320 Speaker 3: greatest prolific fundraisers. Two things I really admired about you 621 00:26:57,359 --> 00:27:00,359 Speaker 3: from a long time, even before we've met is ability 622 00:27:00,400 --> 00:27:02,480 Speaker 3: to capital raise, but not only capital raise, but do 623 00:27:02,520 --> 00:27:04,560 Speaker 3: it at a time. Well, you were crossing the pond 624 00:27:04,640 --> 00:27:06,800 Speaker 3: across the globe. When you go to Saudi or you 625 00:27:06,880 --> 00:27:08,600 Speaker 3: go to London and you go to Paris, people know 626 00:27:08,640 --> 00:27:10,440 Speaker 3: you and they think you're a celebrity over there like 627 00:27:11,080 --> 00:27:14,119 Speaker 3: they're doing Baltimore now. And then also recruiting great talent. 628 00:27:14,240 --> 00:27:16,560 Speaker 3: But focusing on the first one, what makes you such 629 00:27:16,560 --> 00:27:18,960 Speaker 3: a great capital raiser one? And two what gave you 630 00:27:19,000 --> 00:27:21,159 Speaker 3: the idea to be a visionary to go across the 631 00:27:21,200 --> 00:27:22,680 Speaker 3: pond and raise capital for Carlisle. 632 00:27:22,800 --> 00:27:24,560 Speaker 5: Well, you could argue that maybe I couldn't get any 633 00:27:24,560 --> 00:27:26,520 Speaker 5: investors in the United States, so I had to go overseas. 634 00:27:26,720 --> 00:27:28,800 Speaker 5: Now what happened was I came up on an idea 635 00:27:28,840 --> 00:27:31,199 Speaker 5: that wasn't going to win a Nobel prize. But the 636 00:27:31,280 --> 00:27:33,680 Speaker 5: idea was you could build a private equity firm based 637 00:27:33,680 --> 00:27:36,719 Speaker 5: in Washington, which was not seen as a capital center, 638 00:27:37,040 --> 00:27:39,159 Speaker 5: and I could do it by saying, we understand companies 639 00:27:39,160 --> 00:27:41,040 Speaker 5: heavily affected by the federal government better than the guys 640 00:27:41,040 --> 00:27:42,359 Speaker 5: in New York. So that was a bit of a 641 00:27:42,440 --> 00:27:45,160 Speaker 5: niche that we could exploit. But then the other two 642 00:27:45,200 --> 00:27:47,240 Speaker 5: things that I tried to do was I would say 643 00:27:47,240 --> 00:27:49,960 Speaker 5: that we were going to do more than buyouts. Historically 644 00:27:49,960 --> 00:27:53,000 Speaker 5: buyout firms only did buyouts venture capital and did venture capital. 645 00:27:52,760 --> 00:27:53,359 Speaker 4: And so forth. 646 00:27:53,480 --> 00:27:55,520 Speaker 5: But when you were in the mutual fund business, for example, 647 00:27:55,640 --> 00:27:57,680 Speaker 5: you could have mutual fund A or B or C 648 00:27:57,880 --> 00:27:59,680 Speaker 5: or D under a fidel that you have ninety different 649 00:27:59,640 --> 00:28:02,600 Speaker 5: opportun I thought I could do the same in private equity, 650 00:28:02,760 --> 00:28:05,640 Speaker 5: have a buyout fund, a venture fund, a growth capital fund, 651 00:28:05,640 --> 00:28:07,440 Speaker 5: of real estate fund. And the theory was, if you 652 00:28:07,560 --> 00:28:09,080 Speaker 5: liked our brand name, you give us a chance, and 653 00:28:09,119 --> 00:28:11,400 Speaker 5: all these other things. And then I decided to globalize 654 00:28:11,400 --> 00:28:14,800 Speaker 5: it by setting up partnerships in Europe, Asia, Latin America 655 00:28:14,840 --> 00:28:17,280 Speaker 5: and Middle East, Africa and so forth. And that was 656 00:28:17,359 --> 00:28:19,720 Speaker 5: novel at the time. So building a multi discipline firm 657 00:28:19,960 --> 00:28:23,240 Speaker 5: and globalizing it was unusual at the time. Others have 658 00:28:23,320 --> 00:28:24,760 Speaker 5: done it, and some have done it better than we did. 659 00:28:25,000 --> 00:28:26,440 Speaker 5: But to do that, I had to go around the 660 00:28:26,480 --> 00:28:29,640 Speaker 5: world to raise money, and so I just made myself 661 00:28:29,680 --> 00:28:32,720 Speaker 5: into a fundraiser. I wasn't trained that way, and I 662 00:28:32,880 --> 00:28:36,560 Speaker 5: just basically tried to learn how these investors would react 663 00:28:36,560 --> 00:28:38,520 Speaker 5: to the kind of things I was selling and try 664 00:28:38,520 --> 00:28:41,080 Speaker 5: to follow up. And the key is being polite, knowing 665 00:28:41,120 --> 00:28:44,200 Speaker 5: what you're talking about. Assistance follow up is always key, 666 00:28:44,600 --> 00:28:46,480 Speaker 5: and just trying to have a good track record too. 667 00:28:46,560 --> 00:28:47,960 Speaker 5: If you don't have a good track record, you can't 668 00:28:48,000 --> 00:28:50,640 Speaker 5: sell almost anything. So it turned out that I spent 669 00:28:51,040 --> 00:28:53,160 Speaker 5: you know, twenty plus years running around the world raising 670 00:28:53,200 --> 00:28:56,840 Speaker 5: money for Carlisle and you know, help us build along 671 00:28:56,840 --> 00:28:58,800 Speaker 5: with a good track record, a very good franchise. 672 00:28:59,200 --> 00:29:03,160 Speaker 2: Well you also we're keyed in pretty early to the 673 00:29:03,280 --> 00:29:07,160 Speaker 2: idea early in the Carli journey, especially to the power 674 00:29:07,160 --> 00:29:10,120 Speaker 2: of showing up right, I mean to actually getting on 675 00:29:10,120 --> 00:29:14,120 Speaker 2: the plane right and going and actually asking for money. 676 00:29:14,280 --> 00:29:16,680 Speaker 5: You know, people like to say, you've heard this phrase 677 00:29:16,680 --> 00:29:18,640 Speaker 5: from time to time. I hate to ask you for money, 678 00:29:18,640 --> 00:29:21,600 Speaker 5: and then they ask you for money. So the way 679 00:29:21,640 --> 00:29:23,600 Speaker 5: I looked at it, there are three types of fundraising 680 00:29:23,640 --> 00:29:26,520 Speaker 5: you do. One is for business. You're trying to raise 681 00:29:26,560 --> 00:29:28,920 Speaker 5: money and you're saying that people give me money, but 682 00:29:28,960 --> 00:29:30,960 Speaker 5: I'm going to give you more back, so ultimately you're 683 00:29:30,960 --> 00:29:34,360 Speaker 5: getting something really very tangible. That's not the hardest to 684 00:29:34,360 --> 00:29:37,440 Speaker 5: do because you're giving money back to people if you're successful. 685 00:29:37,600 --> 00:29:40,959 Speaker 5: The second is philanthropic. Philanthropic, you're saying that people you're 686 00:29:41,000 --> 00:29:42,520 Speaker 5: going to get to heaven more quickly if you give 687 00:29:42,560 --> 00:29:46,160 Speaker 5: this charitable and that's hard to do because some people say, 688 00:29:46,280 --> 00:29:48,120 Speaker 5: you know, I like the tax deduction, but I have 689 00:29:48,200 --> 00:29:50,200 Speaker 5: my money and maybe I don't want your cause. The 690 00:29:50,240 --> 00:29:52,920 Speaker 5: third is political fundraising, which I've not been involved in. 691 00:29:52,960 --> 00:29:55,800 Speaker 5: I don't make political contributions. But that's a tricky one too, 692 00:29:55,880 --> 00:29:58,560 Speaker 5: because you're asking people to make a contribution to a candidate. 693 00:29:58,840 --> 00:30:00,840 Speaker 5: You're not getting a TAXI duct for it. With the 694 00:30:00,840 --> 00:30:03,840 Speaker 5: philanthropic investment or gift, you're getting a tax deduction. 695 00:30:04,200 --> 00:30:05,560 Speaker 4: So with political. 696 00:30:05,480 --> 00:30:07,960 Speaker 5: Basically you're helping somebody get elected and you have to 697 00:30:07,960 --> 00:30:10,120 Speaker 5: hope that that person does what you think they should do. 698 00:30:10,440 --> 00:30:11,640 Speaker 4: So those are the three different types. 699 00:30:11,680 --> 00:30:13,960 Speaker 5: They have different skill sets, and different types of people 700 00:30:13,960 --> 00:30:15,880 Speaker 5: do well in them. Very few people do well in 701 00:30:15,920 --> 00:30:16,640 Speaker 5: all three of those. 702 00:30:16,800 --> 00:30:18,800 Speaker 2: You certainly did well in the first two, though, So 703 00:30:18,880 --> 00:30:19,840 Speaker 2: what did you learn from that? 704 00:30:20,080 --> 00:30:22,200 Speaker 4: Well, how did you learn to do it? 705 00:30:22,200 --> 00:30:24,840 Speaker 5: It's an interesting if you go to Harvard Business School 706 00:30:24,920 --> 00:30:26,800 Speaker 5: or Stanford Business School and say, you know, I want 707 00:30:26,840 --> 00:30:28,800 Speaker 5: to be a fundraiser. You know, there's no courses in 708 00:30:28,840 --> 00:30:30,880 Speaker 5: fundraising by and large, or maybe they have one now, 709 00:30:30,880 --> 00:30:33,280 Speaker 5: but they used to not do that because fundraising was 710 00:30:33,320 --> 00:30:35,480 Speaker 5: considered the lowest part of the totem pole in the 711 00:30:35,520 --> 00:30:38,160 Speaker 5: private equity world. A star is the guy that's doing 712 00:30:38,160 --> 00:30:40,040 Speaker 5: the deals and the person at the bottom is the 713 00:30:40,080 --> 00:30:42,280 Speaker 5: person who is raising the money. It wasn't taking that 714 00:30:42,360 --> 00:30:44,640 Speaker 5: seriously and it was something that people didn't really want 715 00:30:44,680 --> 00:30:45,680 Speaker 5: to do. If you had the ability to be a 716 00:30:45,720 --> 00:30:48,280 Speaker 5: deal maker, that was considered better than being a fundraiser. 717 00:30:48,560 --> 00:30:50,720 Speaker 5: I made myself and a fundraiser because I really didn't 718 00:30:50,720 --> 00:30:52,800 Speaker 5: have the skill set the background to be an investor. 719 00:30:53,240 --> 00:30:55,200 Speaker 5: So while I was sure of the Carlo's investment committees 720 00:30:55,200 --> 00:30:56,760 Speaker 5: that the other people really day to day doing the 721 00:30:56,760 --> 00:30:59,160 Speaker 5: deals and overseeing them. So I made myself into a 722 00:30:59,160 --> 00:31:02,080 Speaker 5: full time fundraise, which hadn't quite been done before in 723 00:31:02,080 --> 00:31:04,640 Speaker 5: the private equity world, where a founder of affirm basically 724 00:31:04,680 --> 00:31:07,400 Speaker 5: was spending most of his time fundraising, and that was novel. 725 00:31:07,440 --> 00:31:09,640 Speaker 5: Now many others do something similar. 726 00:31:09,440 --> 00:31:10,600 Speaker 3: But David, I don't think you're giving me you some 727 00:31:10,720 --> 00:31:12,640 Speaker 3: enough credit, because there's a lot of people out there 728 00:31:12,640 --> 00:31:14,120 Speaker 3: were not a lot. But there were some other folks 729 00:31:14,120 --> 00:31:16,240 Speaker 3: that were doing just as good as Carlisle as return wise, 730 00:31:16,480 --> 00:31:19,160 Speaker 3: but they weren't raising the capital you were raising. Did 731 00:31:19,200 --> 00:31:22,440 Speaker 3: you find the key to your sauce was the actual 732 00:31:22,480 --> 00:31:25,280 Speaker 3: deals to deal flow the returns, or actually that you 733 00:31:25,320 --> 00:31:27,840 Speaker 3: were connecting with the investor and you were gritty as hell. 734 00:31:28,240 --> 00:31:31,040 Speaker 5: Oprah Winfrey said to me she wasn't a great interviewer, 735 00:31:31,120 --> 00:31:33,520 Speaker 5: she's a great listener. So I think the best way 736 00:31:33,520 --> 00:31:34,840 Speaker 5: to do it is I've learned over the years, is 737 00:31:34,920 --> 00:31:37,080 Speaker 5: when you go in to make a presentation to somebody, 738 00:31:37,280 --> 00:31:39,200 Speaker 5: it's not to say, here's why this fund is great, 739 00:31:39,280 --> 00:31:41,280 Speaker 5: here's why you should come in. You get in there 740 00:31:41,320 --> 00:31:44,040 Speaker 5: and listen to what they're interested in. Let them talk first. 741 00:31:44,400 --> 00:31:46,560 Speaker 5: Let them say here's what they're interested and here's what 742 00:31:46,560 --> 00:31:48,720 Speaker 5: they're doing, Here's what's going on in their country, here's 743 00:31:48,720 --> 00:31:51,280 Speaker 5: what's going in their city. And then you can understand 744 00:31:51,320 --> 00:31:53,760 Speaker 5: what is making them tick, and then you can pivot 745 00:31:53,800 --> 00:31:56,320 Speaker 5: what you want to say by blending in with what 746 00:31:56,360 --> 00:31:58,240 Speaker 5: they like they want to hear. You have to go 747 00:31:58,320 --> 00:32:00,240 Speaker 5: in and listen to people, and then you all will 748 00:32:00,280 --> 00:32:02,640 Speaker 5: have to follow up. When you have a good fundraising meeting, 749 00:32:02,720 --> 00:32:04,320 Speaker 5: and you meet with somebody who wants to give you 750 00:32:04,360 --> 00:32:07,160 Speaker 5: money as interested in it. The good will lasts about 751 00:32:07,160 --> 00:32:08,880 Speaker 5: two and a half weeks because in two and a 752 00:32:08,880 --> 00:32:10,959 Speaker 5: half weeks they're going to go into something else. If 753 00:32:11,000 --> 00:32:12,920 Speaker 5: you haven't followed up in two and a half weeks 754 00:32:12,920 --> 00:32:15,280 Speaker 5: and made another connection with a follow up letter more 755 00:32:15,320 --> 00:32:17,800 Speaker 5: materials they want, it's probably not going to happen. So 756 00:32:17,840 --> 00:32:19,560 Speaker 5: you've got to make sure you follow up. That's the 757 00:32:19,640 --> 00:32:22,600 Speaker 5: key is making certain that you are telling them why 758 00:32:22,640 --> 00:32:24,560 Speaker 5: what they want to do is something you can help 759 00:32:24,600 --> 00:32:26,160 Speaker 5: them with. And you've got to be very polite, and 760 00:32:26,200 --> 00:32:28,360 Speaker 5: you have to learn how to say no or take no. 761 00:32:28,560 --> 00:32:31,880 Speaker 5: For example, when Steve Schwartzen and pe Peterson were raising 762 00:32:31,920 --> 00:32:34,280 Speaker 5: the money for Blackstone, their first fun Steve wrote in 763 00:32:34,280 --> 00:32:37,480 Speaker 5: his autobiography they only got money three percent of the time. 764 00:32:37,800 --> 00:32:38,920 Speaker 4: Three percent of the time. Wow. 765 00:32:39,000 --> 00:32:41,880 Speaker 5: So these very well known guys, they were not as 766 00:32:41,920 --> 00:32:44,240 Speaker 5: well known that as they later became. But they were 767 00:32:44,280 --> 00:32:46,720 Speaker 5: being turned down by friends and people told them they 768 00:32:46,720 --> 00:32:48,280 Speaker 5: would give them money and they didn't give them money. 769 00:32:48,440 --> 00:32:50,920 Speaker 5: I would say probably early on I had a similar percentage. 770 00:32:50,960 --> 00:32:54,040 Speaker 5: But you can't take it personally. Sometimes people might say 771 00:32:54,040 --> 00:32:56,160 Speaker 5: to you come and see me, and then you actually 772 00:32:56,200 --> 00:32:58,200 Speaker 5: go see them and they really don't want to give 773 00:32:58,200 --> 00:32:59,719 Speaker 5: you money, but they're just trying to be polite. I'm 774 00:32:59,760 --> 00:33:02,560 Speaker 5: sure you may have encountered some of that. And sometimes 775 00:33:02,600 --> 00:33:05,280 Speaker 5: it's hard to read what people are really thinking, and 776 00:33:05,440 --> 00:33:07,480 Speaker 5: you don't know whether they're really interested or not. I 777 00:33:07,680 --> 00:33:09,320 Speaker 5: say the most of the money that I raised for 778 00:33:09,400 --> 00:33:11,600 Speaker 5: Carlisle in the early years came for people I hadn't 779 00:33:11,640 --> 00:33:14,360 Speaker 5: known before. The people that I knew before I didn't 780 00:33:14,360 --> 00:33:16,040 Speaker 5: really raise that much money from. Maybe they knew me, 781 00:33:16,040 --> 00:33:18,680 Speaker 5: they didn't want to give me money, But you just 782 00:33:18,800 --> 00:33:21,200 Speaker 5: never know who's going to lead to something. So when 783 00:33:21,240 --> 00:33:23,720 Speaker 5: I recruited the people for Carlisle, I recruited them in 784 00:33:23,760 --> 00:33:26,080 Speaker 5: a circuitous way, right the people I didn't know before 785 00:33:26,120 --> 00:33:28,120 Speaker 5: It led to one thing led to another. For example, 786 00:33:28,360 --> 00:33:30,400 Speaker 5: the co CEO of Carlisle for many years and the 787 00:33:30,480 --> 00:33:34,000 Speaker 5: chief investment officer was Bill Conway, and I didn't know 788 00:33:34,080 --> 00:33:36,280 Speaker 5: him from Adam. He lived in Washington, but I didn't 789 00:33:36,320 --> 00:33:38,480 Speaker 5: know him. I went to recruit a woman who was 790 00:33:38,600 --> 00:33:41,040 Speaker 5: just become the treasurer of Gannett and that's a big position. 791 00:33:41,400 --> 00:33:44,000 Speaker 5: And this is in nineteen eighty seven and I went 792 00:33:44,040 --> 00:33:45,280 Speaker 5: to her and said, here's what I'm gonna do. I'm 793 00:33:45,280 --> 00:33:47,520 Speaker 5: gonna start to pry out firm in Washington. I'd like 794 00:33:47,520 --> 00:33:49,840 Speaker 5: you to join us, one of the original partners. After 795 00:33:49,880 --> 00:33:52,000 Speaker 5: I made my presentation, she said, let me see if 796 00:33:52,000 --> 00:33:54,000 Speaker 5: I got to write. You've never done a buyout before, right, 797 00:33:54,120 --> 00:33:56,360 Speaker 5: that's right. You're going to bring people together, never worked before, 798 00:33:56,480 --> 00:33:59,280 Speaker 5: right together before? Yes, you have no money yet, that's right. 799 00:33:59,440 --> 00:34:01,280 Speaker 5: And you want me to leave my position as treasurer 800 00:34:01,320 --> 00:34:03,240 Speaker 5: of Gannett to come do that. I don't think so, 801 00:34:03,560 --> 00:34:05,480 Speaker 5: but she said. As I was leaving out, she said, Oh, 802 00:34:05,520 --> 00:34:07,880 Speaker 5: there's a guy named Bill Conway who's the chief financial 803 00:34:07,880 --> 00:34:10,160 Speaker 5: officer of a company in Washington called MCI. 804 00:34:10,280 --> 00:34:11,839 Speaker 4: I heard he might be leaving. Why don't you getim 805 00:34:11,840 --> 00:34:14,640 Speaker 4: a call? So I called him. I've never known him before. 806 00:34:14,760 --> 00:34:17,480 Speaker 4: We had lunch in ultimate. He became my partner for 807 00:34:17,480 --> 00:34:19,600 Speaker 4: forty year old. So you never know where this is 808 00:34:19,640 --> 00:34:20,080 Speaker 4: going to lead. 809 00:34:20,440 --> 00:34:24,280 Speaker 2: You've made some sort of evolutions and pivots along the way, 810 00:34:24,480 --> 00:34:27,080 Speaker 2: and one sort of concurrent with your success in private 811 00:34:27,120 --> 00:34:31,759 Speaker 2: equity was being a philanthropist, but a very involved one, 812 00:34:32,080 --> 00:34:35,120 Speaker 2: especially on a number of boards. And I would say 813 00:34:35,320 --> 00:34:38,560 Speaker 2: you're more active and more involved and spread across as 814 00:34:38,680 --> 00:34:42,000 Speaker 2: many as I've ever seen anyone do. What's your thinking 815 00:34:42,640 --> 00:34:44,920 Speaker 2: behind that? How did you create that playbook? 816 00:34:45,280 --> 00:34:47,920 Speaker 5: I have four standards for philanthropy. I want to start 817 00:34:47,960 --> 00:34:52,280 Speaker 5: something otherwise wouldn't get started, Finish something otherwise wouldn't get finished. 818 00:34:52,600 --> 00:34:54,640 Speaker 5: Be intellectually involved, so that I'm going to do more 819 00:34:54,640 --> 00:34:56,719 Speaker 5: than write a check. And and four, I want to 820 00:34:56,719 --> 00:34:59,560 Speaker 5: see progress in my lifetime. The third thing, which is 821 00:34:59,560 --> 00:35:02,080 Speaker 5: to say intellectually involved, which I will go on a 822 00:35:02,080 --> 00:35:04,520 Speaker 5: board typically if I'm giving money, or very often I will, 823 00:35:04,760 --> 00:35:06,680 Speaker 5: and for reasons that are not completely clear to me, 824 00:35:06,719 --> 00:35:08,520 Speaker 5: I've often wound up as the chairman of the board. 825 00:35:08,920 --> 00:35:12,040 Speaker 5: So I've chaired a lot of organizations in the nonprofit world. 826 00:35:12,120 --> 00:35:15,080 Speaker 5: I've chaired all the cultural major culture organizations in watching 827 00:35:15,080 --> 00:35:17,480 Speaker 5: and I chaired the Smithsonian, still chair the Keunnedy Center, 828 00:35:17,640 --> 00:35:20,360 Speaker 5: Share the Library Congress Board, and now the National Galley 829 00:35:20,360 --> 00:35:23,480 Speaker 5: of Art. And it's because I enjoy it and I 830 00:35:23,520 --> 00:35:25,200 Speaker 5: love learning about it, and I think I'm giving back 831 00:35:25,239 --> 00:35:26,840 Speaker 5: to the country in that way. So you have to 832 00:35:26,880 --> 00:35:29,440 Speaker 5: be motivated as well. I chaired my two university boards. 833 00:35:29,480 --> 00:35:31,600 Speaker 5: I went to Duke, I chaired that board for four 834 00:35:31,680 --> 00:35:33,560 Speaker 5: years and now I'm the chair of the Universiticago. 835 00:35:33,840 --> 00:35:37,440 Speaker 2: You know, it's been fun to watch you, you know, 836 00:35:37,520 --> 00:35:40,080 Speaker 2: really lean into this role as an interviewer. And I'm 837 00:35:40,080 --> 00:35:41,880 Speaker 2: not just trying to plug your show, although I'm happy 838 00:35:41,880 --> 00:35:43,960 Speaker 2: to plug your show at any time. I was there 839 00:35:44,000 --> 00:35:47,520 Speaker 2: at the inception. What drew you to being on that 840 00:35:47,520 --> 00:35:49,640 Speaker 2: side of the microphone. You had given many speeches, you 841 00:35:49,640 --> 00:35:52,640 Speaker 2: had been interviewed. You were probably the most public face 842 00:35:52,680 --> 00:35:55,600 Speaker 2: of private equity for a long time, and then you 843 00:35:55,719 --> 00:35:57,760 Speaker 2: turned around and started asking questions. 844 00:35:58,120 --> 00:36:00,560 Speaker 5: It isn't like I hired Mackensey and said, tell me 845 00:36:00,600 --> 00:36:03,320 Speaker 5: what I can do to be more visible. It happens, 846 00:36:03,360 --> 00:36:06,320 Speaker 5: like most things in life, by happenstance. So what happened 847 00:36:06,400 --> 00:36:09,799 Speaker 5: was Carlisle had big events, a thousand people, fifteen hundred people. 848 00:36:09,800 --> 00:36:11,839 Speaker 5: We want to have people come to these events, and 849 00:36:11,920 --> 00:36:14,200 Speaker 5: so I was hiring people that would be a draw. 850 00:36:14,280 --> 00:36:17,240 Speaker 5: I wasn't the draw. So I would hire former presidents 851 00:36:17,239 --> 00:36:19,120 Speaker 5: of the United States, former secretaries of state. You'd pay them 852 00:36:19,280 --> 00:36:22,120 Speaker 5: speaking fee and they would come. But they were often boring, 853 00:36:22,840 --> 00:36:25,200 Speaker 5: and so people were looking at their watches and they 854 00:36:25,239 --> 00:36:27,080 Speaker 5: didn't couldn't wait tho speeches over. So I said to 855 00:36:27,120 --> 00:36:29,359 Speaker 5: the speaking agent, you think I could interview these people 856 00:36:29,680 --> 00:36:31,560 Speaker 5: make a difference, and you know, I think I could 857 00:36:31,600 --> 00:36:33,560 Speaker 5: live en up and use some humor. And they said, 858 00:36:33,600 --> 00:36:36,520 Speaker 5: is the fee going to be the same? I said, 859 00:36:36,520 --> 00:36:38,080 Speaker 5: the fee is the same. So I said, they're. 860 00:36:37,880 --> 00:36:39,560 Speaker 4: Happy to do it because they don't have to prepare speech. 861 00:36:39,719 --> 00:36:41,480 Speaker 4: So I started having these people come. I interviewed. 862 00:36:41,560 --> 00:36:43,880 Speaker 5: I made people look funnier than weren't so funny, and 863 00:36:44,080 --> 00:36:46,440 Speaker 5: made people look charming. And then I became the president 864 00:36:46,440 --> 00:36:48,960 Speaker 5: of the Economic Club in Washington. Vernon Jordan asked me 865 00:36:49,000 --> 00:36:51,000 Speaker 5: to succeed him, and I was supposed to get business 866 00:36:51,000 --> 00:36:52,480 Speaker 5: people to come in and speak, and they were boring. 867 00:36:52,840 --> 00:36:54,840 Speaker 5: So I finally said, my watch is interview them. And 868 00:36:54,840 --> 00:36:57,080 Speaker 5: then Bloomberg at her about five years, has heard about it. 869 00:36:57,120 --> 00:36:58,520 Speaker 5: They saw it and they said, let's make a show 870 00:36:58,520 --> 00:37:00,799 Speaker 5: out of it. I remember at the kickoff, I said, 871 00:37:00,800 --> 00:37:01,920 Speaker 5: what are you going to call the show? They said 872 00:37:01,960 --> 00:37:03,960 Speaker 5: they're going to call it David Rubinstein Show, Peer to 873 00:37:04,040 --> 00:37:06,319 Speaker 5: Peer David Rubenstein's Show. I said, you think a long 874 00:37:06,400 --> 00:37:09,040 Speaker 5: Jewish ethnic name is going to work? And Mike Bloomberg said, no, 875 00:37:09,080 --> 00:37:13,120 Speaker 5: it's not a problem. So now it's been ten years 876 00:37:13,120 --> 00:37:15,279 Speaker 5: and we have two shows, Peer to Peer, and then 877 00:37:15,320 --> 00:37:18,600 Speaker 5: there's one or more financi oriented Wealth with David Rubenstein. 878 00:37:18,760 --> 00:37:21,080 Speaker 5: I've enjoyed it, and what I like is the intellectual 879 00:37:21,280 --> 00:37:24,200 Speaker 5: challenge of talking to other people. But I prepare as 880 00:37:24,200 --> 00:37:27,319 Speaker 5: you obviously do as well, and preparing gives you an 881 00:37:27,320 --> 00:37:29,480 Speaker 5: opportunity to learn more about people. And one of the 882 00:37:29,520 --> 00:37:31,839 Speaker 5: things I'm trying to do is this, when you reach 883 00:37:31,880 --> 00:37:34,360 Speaker 5: a certain age, you always begin to worry are you 884 00:37:35,000 --> 00:37:36,640 Speaker 5: losing it? So I'm trying to figure out what I 885 00:37:36,640 --> 00:37:38,759 Speaker 5: can do to keep me my brain active. And one 886 00:37:38,760 --> 00:37:40,440 Speaker 5: of the things I can do is interview people, and 887 00:37:40,520 --> 00:37:43,160 Speaker 5: we do it regularly. I'm preparing for it. I'm intellectually 888 00:37:43,280 --> 00:37:45,759 Speaker 5: challenging with these people when I talk to them, and 889 00:37:45,800 --> 00:37:47,719 Speaker 5: so it keeps me busy. And also a lot of 890 00:37:47,760 --> 00:37:50,360 Speaker 5: the times I'm interviewing authors and authors I think is 891 00:37:50,360 --> 00:37:52,200 Speaker 5: a courtey you should read the book when you're interviewing them. 892 00:37:52,280 --> 00:37:54,000 Speaker 5: So I'm reading a lot of books all the time, 893 00:37:54,120 --> 00:37:56,160 Speaker 5: and I'm hoping it keeps my brain sharp. 894 00:37:56,200 --> 00:37:56,680 Speaker 4: We'll see. 895 00:37:56,840 --> 00:37:59,960 Speaker 2: So let's talk a little bit more about the intellectual 896 00:38:00,120 --> 00:38:04,799 Speaker 2: challenge of baseball. So this is a business that you know. 897 00:38:04,840 --> 00:38:08,239 Speaker 2: You're obviously familiar as a fan growing up in Baltimore. 898 00:38:08,520 --> 00:38:10,680 Speaker 2: You're aware of it. You talk to your friends who 899 00:38:10,760 --> 00:38:13,520 Speaker 2: were team owners. But now you're in it. What have 900 00:38:13,600 --> 00:38:16,880 Speaker 2: you learned so far that has surprised you about the 901 00:38:16,920 --> 00:38:17,960 Speaker 2: business of baseball? 902 00:38:18,160 --> 00:38:21,480 Speaker 5: Well, first, everybody should remember these are small businesses relative 903 00:38:21,520 --> 00:38:24,319 Speaker 5: to the businesses that the big buyout firms typically buy. 904 00:38:24,760 --> 00:38:27,080 Speaker 5: So there's no baseball team that has revenues of a 905 00:38:27,120 --> 00:38:30,120 Speaker 5: billion dollars or two billion dollars. Earlier today, Carlisle and 906 00:38:30,200 --> 00:38:32,400 Speaker 5: now is a deal where we're buying a company, a 907 00:38:32,440 --> 00:38:35,560 Speaker 5: spin out from an automobile supplier. It's about a billion 908 00:38:35,560 --> 00:38:37,600 Speaker 5: and a half revenue company or something like that. Those 909 00:38:37,680 --> 00:38:40,440 Speaker 5: are not considered all that big. We've bought companies in 910 00:38:40,480 --> 00:38:43,080 Speaker 5: the buyout where we bought a company with Blackstone at 911 00:38:43,080 --> 00:38:45,000 Speaker 5: the helmet and Freemant for thirty six billion dollars a 912 00:38:45,000 --> 00:38:47,760 Speaker 5: few years ago. These are big companies and gigantic revenues. 913 00:38:48,000 --> 00:38:50,040 Speaker 5: When you buy a baseball team, you're buying a team 914 00:38:50,040 --> 00:38:51,920 Speaker 5: that might have one hundred million, two hundred million. 915 00:38:51,719 --> 00:38:52,320 Speaker 4: Dollars in revenue. 916 00:38:52,360 --> 00:38:54,879 Speaker 5: So they are small businesses relatively speaking, but their business 917 00:38:54,920 --> 00:38:58,320 Speaker 5: the get enormous amount attention, So you've got sports writers 918 00:38:58,320 --> 00:39:00,719 Speaker 5: who are spending all their time to figure out whether 919 00:39:00,719 --> 00:39:02,480 Speaker 5: you're doing something right or wrong. And the amount of 920 00:39:02,520 --> 00:39:05,200 Speaker 5: coverage is enormous, So you're under a microscope when you're 921 00:39:05,200 --> 00:39:07,200 Speaker 5: on a team, and if you say something wrong or 922 00:39:07,200 --> 00:39:09,719 Speaker 5: do something wrong, everybody's going to criticize you. It's also 923 00:39:09,760 --> 00:39:13,040 Speaker 5: hard to please everybody. So what I've learned is people 924 00:39:13,120 --> 00:39:16,160 Speaker 5: really have a fanatical care for their local team too. 925 00:39:16,280 --> 00:39:18,000 Speaker 5: You've got to be very careful what you say about 926 00:39:18,000 --> 00:39:20,960 Speaker 5: the team publicly because everybody's paying attention to everything you 927 00:39:21,000 --> 00:39:23,920 Speaker 5: say and anything you might do. I also learned that 928 00:39:23,920 --> 00:39:26,040 Speaker 5: it can be fun. Everybody likes to win in life, 929 00:39:26,080 --> 00:39:27,680 Speaker 5: and people don't like to lose. And say you win 930 00:39:27,760 --> 00:39:30,160 Speaker 5: more than you lose. It's good, but I recognize that 931 00:39:30,320 --> 00:39:32,520 Speaker 5: the team that my partners and I bought was in 932 00:39:32,600 --> 00:39:34,000 Speaker 5: pretty good shape when we bought it. 933 00:39:34,120 --> 00:39:36,759 Speaker 2: On the ascendancy, how do you think the business of 934 00:39:36,800 --> 00:39:39,640 Speaker 2: baseball will evolve? You've made a living of very good 935 00:39:39,680 --> 00:39:42,360 Speaker 2: living investing in things that grow in value. I know that, 936 00:39:42,600 --> 00:39:46,239 Speaker 2: as you mentioned, this is an asset that is, you know, 937 00:39:46,680 --> 00:39:49,960 Speaker 2: part of financial purchase and part of philanthropic win, but 938 00:39:50,320 --> 00:39:53,640 Speaker 2: you do want the overall business to grow. How do 939 00:39:53,719 --> 00:39:57,440 Speaker 2: you affect that and how do you think it should go? 940 00:39:57,880 --> 00:40:01,640 Speaker 5: Well, Baseball was considered the national pasttime for a long time, 941 00:40:01,760 --> 00:40:04,000 Speaker 5: and then obviously the NFL came along in NBA, and 942 00:40:04,040 --> 00:40:06,680 Speaker 5: they have taken a lot of TV dollars away from 943 00:40:06,920 --> 00:40:09,560 Speaker 5: baseball and fans support away from baseball. 944 00:40:09,920 --> 00:40:10,759 Speaker 4: Baseball is a. 945 00:40:10,680 --> 00:40:14,759 Speaker 5: Sport that has enormous number of ingrained supporters, but it 946 00:40:14,760 --> 00:40:17,640 Speaker 5: also doesn't have everything you want. For example, right now, 947 00:40:17,680 --> 00:40:20,600 Speaker 5: probably of the Major League Baseball players, maybe seven or 948 00:40:20,640 --> 00:40:23,600 Speaker 5: eight percent or African American, and maybe the fan base 949 00:40:23,680 --> 00:40:26,760 Speaker 5: is four percent African American, so it's relatively small. Because 950 00:40:26,800 --> 00:40:29,120 Speaker 5: a lot of African American young boys are now playing 951 00:40:29,120 --> 00:40:31,680 Speaker 5: basketball and football, and that's a sport that is attracting 952 00:40:31,719 --> 00:40:34,359 Speaker 5: more people. And one of the ways that baseball has 953 00:40:34,440 --> 00:40:36,879 Speaker 5: got more African American boys playing is to do things 954 00:40:36,920 --> 00:40:39,200 Speaker 5: in the youth leagues in parts of cities that they're 955 00:40:39,200 --> 00:40:42,319 Speaker 5: going to likely have young African American boys playing. But also, 956 00:40:42,560 --> 00:40:45,719 Speaker 5: as you probably know, in some parts of Latin America, 957 00:40:45,760 --> 00:40:48,520 Speaker 5: baseball is a religion, and so in the Oriels case, 958 00:40:48,560 --> 00:40:50,720 Speaker 5: we have a training facility down in the Meinican Republic, 959 00:40:51,080 --> 00:40:53,080 Speaker 5: and we're not the only ones that do that as well. 960 00:40:53,200 --> 00:40:56,000 Speaker 5: So you've got to get people engaged. We have to 961 00:40:56,000 --> 00:40:58,000 Speaker 5: make sure the fan base is not aging too much. 962 00:40:58,239 --> 00:41:00,439 Speaker 5: I think the fan base could be younger, and I'd 963 00:41:00,480 --> 00:41:02,400 Speaker 5: like to try to get the fan base younger in Baltimore. 964 00:41:02,480 --> 00:41:04,719 Speaker 5: That's all the thing I can focus on. I also 965 00:41:04,760 --> 00:41:07,200 Speaker 5: want to make sure that people are bringing their children 966 00:41:07,239 --> 00:41:09,319 Speaker 5: there because they want to educate their young children at 967 00:41:09,360 --> 00:41:12,680 Speaker 5: baseball and help them kind of feel about baseball as 968 00:41:12,840 --> 00:41:15,960 Speaker 5: many people my age do because they were brought up 969 00:41:16,000 --> 00:41:18,360 Speaker 5: with baseball. Now many young kids are not brought up 970 00:41:18,360 --> 00:41:20,040 Speaker 5: on baseball as much as they used to be. 971 00:41:20,520 --> 00:41:21,680 Speaker 4: It's not easy to do. 972 00:41:21,760 --> 00:41:24,680 Speaker 5: Baseball is not as international sport as probably basketball is. 973 00:41:24,760 --> 00:41:27,520 Speaker 5: The NFL is trying to become a global sport as well, 974 00:41:27,840 --> 00:41:30,239 Speaker 5: going to Europe and doing other things they're Baseball is 975 00:41:30,280 --> 00:41:33,080 Speaker 5: played overseas, of course, but it doesn't have the overseas 976 00:41:33,160 --> 00:41:35,680 Speaker 5: residents yet that I hope it ultimately will have. 977 00:41:36,120 --> 00:41:38,239 Speaker 3: David, You've been really good in your career over the 978 00:41:38,320 --> 00:41:42,160 Speaker 3: last forty years of taking a big idea, hiring a 979 00:41:42,160 --> 00:41:45,239 Speaker 3: great team, and then executing. If you had that same 980 00:41:45,360 --> 00:41:48,200 Speaker 3: challenge in baseball, and I think Rob Manford belonged in 981 00:41:48,200 --> 00:41:49,760 Speaker 3: the Hall of Fame just for the time clock alone. 982 00:41:49,800 --> 00:41:51,520 Speaker 3: I mean, that was an incredible move for a game. 983 00:41:52,200 --> 00:41:54,040 Speaker 3: What are two or three things if you were commissioned 984 00:41:54,080 --> 00:41:56,000 Speaker 3: for a day that you would focus on to make 985 00:41:56,040 --> 00:41:56,840 Speaker 3: the game livelier. 986 00:41:57,080 --> 00:42:00,319 Speaker 5: Well, I'm nervous about answering that question directly because I'm 987 00:42:00,360 --> 00:42:02,960 Speaker 5: the newest owner in baseball. So for the newest owner 988 00:42:03,000 --> 00:42:05,319 Speaker 5: of thirty owners to say here's what Baseball should do, 989 00:42:05,480 --> 00:42:07,360 Speaker 5: it's probably going to get me in trouble. So I 990 00:42:07,400 --> 00:42:09,080 Speaker 5: only want to say is all the other owners are 991 00:42:09,160 --> 00:42:10,960 Speaker 5: much more experience, They know much more than I do. 992 00:42:11,160 --> 00:42:13,880 Speaker 5: It's a diverse group of people in some respects in 993 00:42:13,960 --> 00:42:17,120 Speaker 5: terms of their backgrounds. I would say Baseball I think 994 00:42:17,200 --> 00:42:20,120 Speaker 5: wants to appeal to younger people than it does now. 995 00:42:20,520 --> 00:42:23,280 Speaker 5: It wants to expand the television audience that it currently has. 996 00:42:23,600 --> 00:42:25,640 Speaker 5: I think it would like to expand overseas a bit 997 00:42:25,719 --> 00:42:27,920 Speaker 5: if it can, but that's obviously going to take some time. 998 00:42:28,200 --> 00:42:30,400 Speaker 5: And I also think it probably like to, you know, 999 00:42:30,480 --> 00:42:33,440 Speaker 5: find more ways to get the game into people's homes, 1000 00:42:33,440 --> 00:42:37,200 Speaker 5: either through streaming or other kinds of devices that enable 1001 00:42:37,239 --> 00:42:38,759 Speaker 5: people to watch it, even if they don't go to 1002 00:42:38,760 --> 00:42:39,120 Speaker 5: the game. 1003 00:42:39,320 --> 00:42:41,720 Speaker 3: So, David, I am interested because you've done a fantastic 1004 00:42:41,840 --> 00:42:45,000 Speaker 3: job in identifying great talent again for our audience. It's 1005 00:42:45,000 --> 00:42:47,880 Speaker 3: a very entrepreneur driven. What are some of the qualities 1006 00:42:47,920 --> 00:42:50,120 Speaker 3: you look for when you hire someone young men or 1007 00:42:50,160 --> 00:42:51,719 Speaker 3: women for one of your companies. 1008 00:42:52,080 --> 00:42:55,000 Speaker 5: Well, you're always looking for somebody who's reasonably intelligent. Don't 1009 00:42:55,000 --> 00:42:57,080 Speaker 5: have to be a geniuses. Genius are hard to manage. 1010 00:42:57,360 --> 00:43:01,400 Speaker 5: Reasonably intelligent, hard working, they have a sense of willing 1011 00:43:01,440 --> 00:43:03,720 Speaker 5: to cooperate with other people. They know how to share 1012 00:43:03,719 --> 00:43:06,040 Speaker 5: the credit. They also people that know how to get 1013 00:43:06,080 --> 00:43:08,920 Speaker 5: along with other people and give orders in a way 1014 00:43:08,960 --> 00:43:11,680 Speaker 5: that isn't offending other people. You want people are ethical 1015 00:43:11,719 --> 00:43:14,120 Speaker 5: as well. You don't want people that are cutting ethical corners. 1016 00:43:14,280 --> 00:43:16,840 Speaker 5: You want people that other people want to be around. 1017 00:43:17,280 --> 00:43:19,600 Speaker 5: And so I've made a lot of hirings over the years. 1018 00:43:19,600 --> 00:43:22,240 Speaker 5: Some people worked out well, some people didn't work out well. 1019 00:43:22,440 --> 00:43:25,640 Speaker 5: I hired a young man years ago, nice man, and 1020 00:43:25,760 --> 00:43:27,520 Speaker 5: he now is the chairman of the Federal Reserve Board. 1021 00:43:27,840 --> 00:43:29,640 Speaker 5: I didn't realize that Jay Pow would be the chairman 1022 00:43:29,600 --> 00:43:31,520 Speaker 5: of the Federal Reserve Board. I heard another young man 1023 00:43:31,560 --> 00:43:34,000 Speaker 5: one time, and he later became the governor of Virginia, 1024 00:43:34,280 --> 00:43:37,040 Speaker 5: Glenn Younkin. So sometimes you make very good decisions about 1025 00:43:37,080 --> 00:43:40,040 Speaker 5: young people. Sometimes you know, not everything works out. 1026 00:43:40,120 --> 00:43:43,680 Speaker 4: You want to hire me future, but I don't know 1027 00:43:43,719 --> 00:43:44,200 Speaker 4: if I could do. 1028 00:43:44,120 --> 00:43:46,480 Speaker 2: A ten year contract. 1029 00:43:46,640 --> 00:43:49,240 Speaker 5: You know, when you're hiring people, you really want people 1030 00:43:49,400 --> 00:43:51,840 Speaker 5: that you can work with, that you think that you 1031 00:43:52,120 --> 00:43:54,960 Speaker 5: enjoy talking to and you can listen to them and 1032 00:43:54,960 --> 00:43:57,440 Speaker 5: they will listen to you, and you know you want 1033 00:43:57,480 --> 00:43:59,520 Speaker 5: to have a good working relationship with people. 1034 00:44:00,040 --> 00:44:02,719 Speaker 3: Is there one particular deal over the last twenty years 1035 00:44:02,760 --> 00:44:04,799 Speaker 3: in sports? They said, boy, if I can have that 1036 00:44:04,880 --> 00:44:06,279 Speaker 3: one back? Which one of that deal? 1037 00:44:06,640 --> 00:44:09,759 Speaker 5: The greatest sports deal I think financial deal that was 1038 00:44:09,760 --> 00:44:11,960 Speaker 5: ever done was done in the last couple of years 1039 00:44:12,320 --> 00:44:15,120 Speaker 5: when the number of people who were at Guggenheim bought 1040 00:44:15,120 --> 00:44:18,399 Speaker 5: the LA Dodgers. Because they structured in a way where 1041 00:44:18,440 --> 00:44:20,680 Speaker 5: they didn't have to write I think a personal check. 1042 00:44:20,760 --> 00:44:22,920 Speaker 5: I think the purchase price is roughly two point one 1043 00:44:22,920 --> 00:44:25,120 Speaker 5: billion dollars or something like that. They didn't put up 1044 00:44:25,160 --> 00:44:26,960 Speaker 5: that much equity. They put it in a modest amount 1045 00:44:26,960 --> 00:44:28,920 Speaker 5: relative to what it's now worth. So that was one 1046 00:44:28,920 --> 00:44:30,680 Speaker 5: of the best deals of all time. One of the 1047 00:44:30,680 --> 00:44:32,800 Speaker 5: best deals you could say is also the New York Yankees. 1048 00:44:33,600 --> 00:44:36,319 Speaker 5: I think in nineteen seventy two when CBS sold it 1049 00:44:36,360 --> 00:44:39,520 Speaker 5: for roughly ten million dollars to George Steinbrenner, if I 1050 00:44:39,520 --> 00:44:41,280 Speaker 5: have it correct, I think he put in two hundred 1051 00:44:41,280 --> 00:44:43,560 Speaker 5: and fifty thousand of his own money and he syndicated 1052 00:44:43,560 --> 00:44:47,040 Speaker 5: the rest. And you know, the franchise is probably worth 1053 00:44:47,040 --> 00:44:49,480 Speaker 5: five to seven billion dollars today. And I think, if 1054 00:44:49,520 --> 00:44:50,759 Speaker 5: I got it right, they only put it in two 1055 00:44:50,800 --> 00:44:52,799 Speaker 5: hundred and fifty thousand initially. Now it's a long time ago, 1056 00:44:53,040 --> 00:44:54,719 Speaker 5: but still it's a pretty good deal. Mm hmm. 1057 00:44:54,840 --> 00:44:57,960 Speaker 2: Well they've paid some players along the way to a 1058 00:44:57,960 --> 00:45:06,560 Speaker 2: pretty good effect. All right, So we're going to move 1059 00:45:06,640 --> 00:45:08,640 Speaker 2: to the last portion of the interview, which is a 1060 00:45:08,719 --> 00:45:11,480 Speaker 2: rapid fire around, so you can just answer as quickly 1061 00:45:11,520 --> 00:45:13,600 Speaker 2: as when I'll start, and then you can pick up. 1062 00:45:13,840 --> 00:45:16,120 Speaker 2: What would you say is one word to describe your 1063 00:45:16,160 --> 00:45:17,160 Speaker 2: deal making style? 1064 00:45:17,600 --> 00:45:18,040 Speaker 4: Modest? 1065 00:45:18,360 --> 00:45:22,640 Speaker 3: What's more important good instincts or data and making big decisions. 1066 00:45:22,280 --> 00:45:25,240 Speaker 2: Instinct what's the hardest part of deal making the beginning, 1067 00:45:25,320 --> 00:45:26,480 Speaker 2: middle or the clothes? 1068 00:45:26,840 --> 00:45:27,880 Speaker 4: The clothes for sure. 1069 00:45:28,280 --> 00:45:30,720 Speaker 3: Who's your dream deal making partner? 1070 00:45:31,120 --> 00:45:35,799 Speaker 5: Well, the people that bought the Minnesota Timberwolves, they did 1071 00:45:35,840 --> 00:45:38,719 Speaker 5: a pretty good deal, I would say, so I'd like 1072 00:45:38,760 --> 00:45:40,120 Speaker 5: to have those people on my side. 1073 00:45:40,480 --> 00:45:41,919 Speaker 2: What's the best deal you've ever made? 1074 00:45:42,040 --> 00:45:44,560 Speaker 5: Best deal I ever made was probably decided to start 1075 00:45:44,600 --> 00:45:46,880 Speaker 5: Carlisle and hiring the people that did the outset. That 1076 00:45:46,960 --> 00:45:48,520 Speaker 5: was the best business thing I ever did. 1077 00:45:48,760 --> 00:45:51,640 Speaker 3: What's the best piece of advice you've received on deal making? 1078 00:45:52,000 --> 00:45:54,560 Speaker 5: Always try to remember what the other side needs to do, 1079 00:45:54,640 --> 00:45:56,360 Speaker 5: and so they have to come away with a victory 1080 00:45:56,360 --> 00:45:58,480 Speaker 5: as well. You can't make it to one sided. 1081 00:45:58,920 --> 00:46:00,520 Speaker 2: What's the worst advice been given? 1082 00:46:01,200 --> 00:46:02,640 Speaker 4: Trust your own instincts only. 1083 00:46:04,880 --> 00:46:07,360 Speaker 3: What's your hype song before you go into a big meeting? 1084 00:46:08,360 --> 00:46:10,600 Speaker 4: My way Frank Sinatra. That's good. 1085 00:46:10,960 --> 00:46:12,920 Speaker 3: You can only watch one sport for the rest of 1086 00:46:12,920 --> 00:46:14,440 Speaker 3: your life. What sport would it be? 1087 00:46:14,560 --> 00:46:15,440 Speaker 4: Major League Baseball? 1088 00:46:16,400 --> 00:46:18,200 Speaker 2: This is a very easy one. What team do you 1089 00:46:18,239 --> 00:46:20,400 Speaker 2: want to see win a championship more than anything? 1090 00:46:20,640 --> 00:46:24,399 Speaker 5: The Baltimore Orioles Number one, the Duke, Blue Devil's number two. 1091 00:46:25,000 --> 00:46:27,040 Speaker 3: One fun fact about you that your colleagues will be 1092 00:46:27,040 --> 00:46:28,719 Speaker 3: surprised about hearing about that. 1093 00:46:28,719 --> 00:46:31,120 Speaker 5: I am a great athlete and that I actually I 1094 00:46:31,200 --> 00:46:33,440 Speaker 5: try not to show this when I played tennis or 1095 00:46:33,520 --> 00:46:35,920 Speaker 5: with other people, but I am actually a spectActor athlete, 1096 00:46:36,080 --> 00:46:37,920 Speaker 5: but I try to hide it from people. 1097 00:46:38,320 --> 00:46:40,239 Speaker 2: David, it has been our pleasure to have you. 1098 00:46:40,360 --> 00:46:44,680 Speaker 5: Thank you for congress our success, and thank you for 1099 00:46:44,719 --> 00:46:45,080 Speaker 5: having me. 1100 00:46:45,280 --> 00:46:47,440 Speaker 2: It's good to be on the same network as you. 1101 00:46:47,680 --> 00:46:51,000 Speaker 4: Thank you very much. Thank you, dude. 1102 00:46:52,000 --> 00:46:55,839 Speaker 1: The Deal is a production from Bloomberg Podcasts and Bloomberg Originals. 1103 00:46:56,239 --> 00:46:59,280 Speaker 1: The Deal is hosted by Alex Rodriguez and Jason Kelly. 1104 00:46:59,719 --> 00:47:03,680 Speaker 1: Are producers are Anna Mazarakus, Stacey Wong, and Lizzie Phillip. 1105 00:47:04,120 --> 00:47:08,120 Speaker 1: Original music and engineering by Blake Maples. Our managing editor 1106 00:47:08,200 --> 00:47:12,120 Speaker 1: is David E. Ravella. Our executive producers are Jason Kelly, 1107 00:47:12,360 --> 00:47:18,320 Speaker 1: Brendan Francis Newnham, Jordan Opplinger, Trey Shallowhorn, Kyle Kramer, Andrew Barden, 1108 00:47:18,640 --> 00:47:22,719 Speaker 1: Kelly Laferrier, and Ashley Hoenig. 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Listen to the Deal on Apple Podcasts, Spotify, 1117 00:48:00,160 --> 00:48:02,959 Speaker 1: or wherever you get your podcasts. You can also tune 1118 00:48:02,960 --> 00:48:06,479 Speaker 1: into The Video Companion on Bloomberg Originals and on Bloomberg TV. 1119 00:48:07,200 --> 00:48:08,000 Speaker 1: Thanks for listening.