WEBVTT - Mark Attanasio and Tom Werner Talk PGA's Future

0:00:02.600 --> 0:00:10.039
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. The Bloomberg invest Conferences

0:00:10.160 --> 0:00:13.800
<v Speaker 1>underway in New York. Earlier, Bloomberg's Jason Kelly spoke with

0:00:13.920 --> 0:00:18.200
<v Speaker 1>Mark Attanasio, the chairman and principal owner of the Milwaukee

0:00:18.200 --> 0:00:22.320
<v Speaker 1>Brewers baseball club, and Tom Warner, chairman and co founder

0:00:22.400 --> 0:00:26.080
<v Speaker 1>of Fenway Sports Group. Here's some of their conversation.

0:00:26.440 --> 0:00:28.600
<v Speaker 2>We're talking about golf. We're to talk about sports.

0:00:28.720 --> 0:00:32.360
<v Speaker 3>I'm so delighted to have both of you here because

0:00:32.400 --> 0:00:35.680
<v Speaker 3>you were at the white hot center of something we

0:00:35.720 --> 0:00:38.440
<v Speaker 3>all care deeply about, which is the world of sports.

0:00:38.920 --> 0:00:42.760
<v Speaker 3>I want to start with golf. You guys are both

0:00:42.800 --> 0:00:44.879
<v Speaker 3>part of the Strategic Sports Group, which made a big

0:00:44.920 --> 0:00:47.599
<v Speaker 3>investment in the PGA, and I want to put up

0:00:47.880 --> 0:00:50.000
<v Speaker 3>a couple slides that Tom you were nice enough to

0:00:50.280 --> 0:00:54.480
<v Speaker 3>share with me that talk about the growth of the

0:00:54.520 --> 0:00:58.520
<v Speaker 3>game and the opportunity that presents itself in golf.

0:00:58.600 --> 0:01:04.680
<v Speaker 2>If we can get those, it's somewhere. Okay, it's really big.

0:01:04.959 --> 0:01:07.360
<v Speaker 2>There we go there, So there's us.

0:01:07.480 --> 0:01:13.679
<v Speaker 3>I mean, these are staggering numbers, and I think maybe

0:01:14.520 --> 0:01:16.120
<v Speaker 3>I certainly when I had looked at them when you

0:01:16.160 --> 0:01:18.200
<v Speaker 3>send them to me, I was surprised at how big

0:01:18.240 --> 0:01:18.840
<v Speaker 3>these numbers are.

0:01:18.840 --> 0:01:20.160
<v Speaker 2>Can we go to the next one because it gives

0:01:20.200 --> 0:01:22.080
<v Speaker 2>them Okay, please?

0:01:22.200 --> 0:01:26.160
<v Speaker 4>The first slide is about the popularity of golf in

0:01:26.200 --> 0:01:29.360
<v Speaker 4>the United States. Part of what made us all excited

0:01:29.360 --> 0:01:31.640
<v Speaker 4>about it is that this is really a global sport.

0:01:31.760 --> 0:01:35.160
<v Speaker 4>So you know, when you think about the one hundred

0:01:35.200 --> 0:01:38.800
<v Speaker 4>and two billions spent in golf that's in the United States.

0:01:38.560 --> 0:01:40.600
<v Speaker 5>And of course there's a bigger number worldwide.

0:01:40.880 --> 0:01:43.480
<v Speaker 3>Yeah, so let's look at the global numbers because it

0:01:43.480 --> 0:01:46.600
<v Speaker 3>does feel like that's at the core of this business case.

0:01:46.640 --> 0:01:48.600
<v Speaker 2>So that if we go to the next slide about

0:01:48.640 --> 0:01:49.600
<v Speaker 2>the global.

0:01:51.120 --> 0:01:55.040
<v Speaker 3>I mean that is a staggerer almost four hundred million people.

0:01:55.600 --> 0:02:00.080
<v Speaker 3>So Mark, I want to start with you, why do

0:02:00.120 --> 0:02:04.880
<v Speaker 3>this deal? I mean, obviously the numbers pencil out, but golf,

0:02:05.640 --> 0:02:07.960
<v Speaker 3>if you look at it, if anyone falls the headlines,

0:02:08.600 --> 0:02:12.119
<v Speaker 3>not exactly, it's not not a mess when it comes

0:02:12.200 --> 0:02:12.880
<v Speaker 3>to a business.

0:02:12.960 --> 0:02:14.000
<v Speaker 2>Is that part of the attraction?

0:02:15.200 --> 0:02:17.760
<v Speaker 5>Well, it starts with the macro and the brand. Yeah.

0:02:17.760 --> 0:02:21.360
<v Speaker 6>And I was sitting I'm on a committee with John,

0:02:21.440 --> 0:02:23.400
<v Speaker 6>actually a couple of committees with John and Tom at

0:02:23.440 --> 0:02:27.480
<v Speaker 6>Major League Baseball John Henry and they were talking about

0:02:27.800 --> 0:02:30.960
<v Speaker 6>the opportunity here, but I didn't realize that what they

0:02:31.000 --> 0:02:33.400
<v Speaker 6>were working on. They just talked about some of the

0:02:33.480 --> 0:02:37.359
<v Speaker 6>challenges that were being faced and I said to John, well,

0:02:37.400 --> 0:02:42.799
<v Speaker 6>to me, given that brand, the more challenges, the more opportunity. Right,

0:02:43.120 --> 0:02:45.840
<v Speaker 6>thirty three years of investing at Crescent, that's what we found.

0:02:45.960 --> 0:02:49.919
<v Speaker 6>You know, the easy investments don't really create a lot

0:02:49.960 --> 0:02:55.000
<v Speaker 6>of opportunity that more difficult ones do. So Tom and

0:02:55.040 --> 0:02:56.760
<v Speaker 6>John called me a few days later and said, were

0:02:56.760 --> 0:02:58.640
<v Speaker 6>you really serious on how you looked at that? And

0:02:59.000 --> 0:03:03.280
<v Speaker 6>would you invest in the PGA and course? And I

0:03:03.280 --> 0:03:05.840
<v Speaker 6>still didn't know what they were working on, and then

0:03:05.880 --> 0:03:09.480
<v Speaker 6>they let me under the tent and it's it's extremely exciting.

0:03:09.960 --> 0:03:11.440
<v Speaker 2>And so Tom, what was it for you?

0:03:11.600 --> 0:03:15.280
<v Speaker 3>I mean you you know your Fenway Sports Group, obviously

0:03:15.320 --> 0:03:20.639
<v Speaker 3>the Red Sox, Liverpool, Pittsburgh Penguins, Nessen, the Sports Network

0:03:20.720 --> 0:03:21.200
<v Speaker 3>and more.

0:03:23.280 --> 0:03:26.320
<v Speaker 2>What was it about golf that jumped out to you?

0:03:27.120 --> 0:03:27.280
<v Speaker 5>Well?

0:03:27.320 --> 0:03:30.200
<v Speaker 4>As most of you know, the structure of golf a

0:03:30.240 --> 0:03:33.280
<v Speaker 4>couple of years ago is that it was a nonprofit

0:03:34.000 --> 0:03:39.480
<v Speaker 4>and the players were independent contractors. And so this now

0:03:39.640 --> 0:03:43.880
<v Speaker 4>is a league that the players are now owners, they

0:03:43.920 --> 0:03:48.440
<v Speaker 4>have equity in the league, and uh, this SSG and

0:03:48.520 --> 0:03:54.480
<v Speaker 4>Fenway Sports Group are really investing in the commercial growth

0:03:54.720 --> 0:03:57.280
<v Speaker 4>of the game, and of course it all starts with,

0:03:57.840 --> 0:04:01.360
<v Speaker 4>you know, what can create a better fan experience. And

0:04:02.000 --> 0:04:04.640
<v Speaker 4>you know, we are grateful that we were selected because

0:04:04.640 --> 0:04:08.040
<v Speaker 4>it was a very competitive situation to invest in the

0:04:08.080 --> 0:04:11.880
<v Speaker 4>new structure. But you know, we think that and Mark

0:04:12.000 --> 0:04:15.920
<v Speaker 4>is part of this group, that the operational experience that

0:04:16.000 --> 0:04:20.919
<v Speaker 4>we have in sports can benefit the players and be

0:04:21.000 --> 0:04:21.680
<v Speaker 4>a resource.

0:04:22.200 --> 0:04:25.360
<v Speaker 3>And so so take us inside this proverbial ten a

0:04:25.400 --> 0:04:27.400
<v Speaker 3>little bit, like what do you need to do, Like

0:04:27.400 --> 0:04:30.320
<v Speaker 3>what's the low hanging fruit here? And what are the

0:04:30.360 --> 0:04:35.599
<v Speaker 3>things you're seeing that can be relatively easily fixed or

0:04:35.680 --> 0:04:38.280
<v Speaker 3>changed to improve those elements.

0:04:38.600 --> 0:04:42.000
<v Speaker 4>Well, one thing that Jay Monahan, who we think is

0:04:42.040 --> 0:04:45.920
<v Speaker 4>a very strong leader, is doing is we are commencing

0:04:45.960 --> 0:04:52.960
<v Speaker 4>a very extensive research study that it's called Fan Forward.

0:04:53.520 --> 0:04:56.600
<v Speaker 4>But Rob Manfred did the same thing in i think

0:04:56.640 --> 0:05:01.880
<v Speaker 4>twenty nineteen where we did a about what was good

0:05:01.880 --> 0:05:05.200
<v Speaker 4>about baseball how to make the experience better, and you

0:05:05.240 --> 0:05:08.040
<v Speaker 4>know a lot of positive changes have come from that.

0:05:08.200 --> 0:05:11.159
<v Speaker 4>But but you know, we're going to be listening to

0:05:11.200 --> 0:05:14.960
<v Speaker 4>our fans and you know, just one one idea that

0:05:16.040 --> 0:05:18.560
<v Speaker 4>we've been talking about is when you think about the

0:05:18.640 --> 0:05:23.920
<v Speaker 4>experience of going to an event on the tour, that

0:05:24.000 --> 0:05:26.520
<v Speaker 4>we are trying to event tize it and make it

0:05:26.800 --> 0:05:30.479
<v Speaker 4>really more must see. And somebody at the PGA was

0:05:30.640 --> 0:05:33.760
<v Speaker 4>looking at Louisville. You know, they have an event every

0:05:33.839 --> 0:05:37.320
<v Speaker 4>year that is really just two minutes long in its

0:05:37.400 --> 0:05:41.480
<v Speaker 4>actual composition of the Kentucky Derby, but around it they

0:05:41.480 --> 0:05:44.480
<v Speaker 4>have a week long festival. So one of the things

0:05:44.480 --> 0:05:48.360
<v Speaker 4>that we're talking about is how to create experiences at

0:05:48.400 --> 0:05:52.320
<v Speaker 4>PGA tour events that will make them more attractive.

0:05:52.360 --> 0:05:54.000
<v Speaker 3>And so Mark as you look at this you're a

0:05:54.000 --> 0:05:59.320
<v Speaker 3>global investor. Obviously, one of the elements that is clearly

0:05:59.360 --> 0:06:01.000
<v Speaker 3>at play here is live.

0:06:01.560 --> 0:06:02.400
<v Speaker 2>What needs to happen.

0:06:03.920 --> 0:06:08.400
<v Speaker 6>Well, if you look at the golfers, whether they're at

0:06:08.440 --> 0:06:11.600
<v Speaker 6>Live or PGA, these are some of the best athletes

0:06:11.640 --> 0:06:15.200
<v Speaker 6>in the world, and across all sports, you want to

0:06:15.240 --> 0:06:18.000
<v Speaker 6>see the best athletes competing against each other. That's why,

0:06:18.600 --> 0:06:21.080
<v Speaker 6>for example, you have so much interest in the Olympics,

0:06:21.760 --> 0:06:25.359
<v Speaker 6>and so we you know, we've hoped to be a

0:06:25.400 --> 0:06:29.480
<v Speaker 6>bridge or a catalyst to try to bring the golfers

0:06:29.480 --> 0:06:32.599
<v Speaker 6>back together so they could compete more than just a

0:06:32.600 --> 0:06:33.880
<v Speaker 6>handful of times each year.

0:06:34.160 --> 0:06:37.080
<v Speaker 2>What's your level of confidence at this moment that that'll happen.

0:06:39.240 --> 0:06:42.200
<v Speaker 6>Well, look, we're all optimistic, right we know, so we

0:06:42.320 --> 0:06:45.000
<v Speaker 6>know how difficult it is and what the hurdles are,

0:06:45.040 --> 0:06:50.159
<v Speaker 6>including some regulatory ones. Yeah, but it really should happen,

0:06:50.200 --> 0:06:51.640
<v Speaker 6>and so I think it will.

0:06:52.160 --> 0:06:53.920
<v Speaker 3>And so Tom when you think about you know, one

0:06:53.920 --> 0:06:56.359
<v Speaker 3>of the things that is very compelling about sort of

0:06:56.360 --> 0:07:01.080
<v Speaker 3>the data underneath this is this notion of sort of

0:07:01.080 --> 0:07:04.559
<v Speaker 3>off course. You know, many of us in this room,

0:07:04.960 --> 0:07:07.240
<v Speaker 3>for better worse, go out and hack it around the

0:07:07.480 --> 0:07:10.960
<v Speaker 3>you know, nine or eighteen holes. But increasingly more people,

0:07:11.040 --> 0:07:15.120
<v Speaker 3>especially younger people, are experiencing golf in different ways. How

0:07:15.120 --> 0:07:20.120
<v Speaker 3>do you, through the PGA monetize, I mean, how do

0:07:20.200 --> 0:07:22.760
<v Speaker 3>you take advantage of that movement towards the top golf

0:07:23.120 --> 0:07:24.239
<v Speaker 3>and the sims and whatnot.

0:07:24.400 --> 0:07:29.000
<v Speaker 4>Well, the first thing is to acknowledge that one factoid

0:07:29.000 --> 0:07:30.880
<v Speaker 4>I think it was up there is that more people

0:07:30.920 --> 0:07:35.920
<v Speaker 4>were playing off course golf in twenty twenty three than encore.

0:07:36.080 --> 0:07:37.120
<v Speaker 5>So they're both growing.

0:07:37.200 --> 0:07:42.560
<v Speaker 4>But off course golf things like top golf, is very attractive.

0:07:42.800 --> 0:07:46.520
<v Speaker 4>So you know, it is all about the popularity of

0:07:46.520 --> 0:07:49.200
<v Speaker 4>the game. One of the great things about golf as

0:07:49.240 --> 0:07:52.280
<v Speaker 4>opposed to the NFL, for example, which you know has

0:07:52.320 --> 0:07:53.720
<v Speaker 4>its own great attributes.

0:07:53.840 --> 0:07:56.000
<v Speaker 5>Is that people are playing it.

0:07:56.120 --> 0:08:00.680
<v Speaker 4>And so when they're watching watching golf, they are participants

0:08:00.720 --> 0:08:04.280
<v Speaker 4>in the sports. So you know, whether they you know,

0:08:04.760 --> 0:08:08.640
<v Speaker 4>play golf at their country club or they're playing mini golf,

0:08:09.440 --> 0:08:14.000
<v Speaker 4>you know, with their local local hangout, it's all good

0:08:14.000 --> 0:08:14.480
<v Speaker 4>for the game.

0:08:15.240 --> 0:08:16.960
<v Speaker 6>And that's you know, five year olds can play. Or

0:08:17.000 --> 0:08:19.520
<v Speaker 6>Hall of Fame announcer Bob Yucker turned ninety, he still

0:08:19.520 --> 0:08:23.440
<v Speaker 6>plays golf pretty well, actually right, that's.

0:08:23.360 --> 0:08:25.760
<v Speaker 3>And what about the you know, both of you, I

0:08:25.800 --> 0:08:32.200
<v Speaker 3>mean Tom, obviously your your experience and success in in

0:08:32.280 --> 0:08:35.080
<v Speaker 3>the in the media world is very well known. You

0:08:35.120 --> 0:08:37.920
<v Speaker 3>have created, you know, many beloved shows, are still creating

0:08:38.679 --> 0:08:41.400
<v Speaker 3>beloved shows on on multiple platforms.

0:08:41.559 --> 0:08:44.120
<v Speaker 2>What's the media side of the of golf?

0:08:44.160 --> 0:08:46.320
<v Speaker 3>And then I want to talk about some other sports,

0:08:46.320 --> 0:08:48.400
<v Speaker 3>but like, what's what's the media play here for you?

0:08:49.240 --> 0:08:52.360
<v Speaker 4>Well, I think we focused too much on Nielsen ratings,

0:08:52.400 --> 0:08:57.199
<v Speaker 4>even though they're obviously very important. But the platforms that

0:08:57.320 --> 0:09:00.880
<v Speaker 4>golf is on, the social media, you know, people are

0:09:01.360 --> 0:09:07.040
<v Speaker 4>it's growing exponentially on social media, and it's all it's

0:09:07.080 --> 0:09:11.960
<v Speaker 4>all about how to communicate the game to the consumer

0:09:12.120 --> 0:09:14.200
<v Speaker 4>in a variety of ways.

0:09:14.880 --> 0:09:18.000
<v Speaker 3>And so what's the what's the non obvious mark lest

0:09:18.000 --> 0:09:23.640
<v Speaker 3>golf question for now? What what's the non obvious thing

0:09:23.720 --> 0:09:26.760
<v Speaker 3>that could help golf in your mind? Like, what's the

0:09:26.800 --> 0:09:29.280
<v Speaker 3>surprise as you got into it and said, this is

0:09:29.320 --> 0:09:32.160
<v Speaker 3>a nonprofit you know they're doing this, they're doing that.

0:09:32.240 --> 0:09:33.600
<v Speaker 3>Like what was the thing where you're like, oh, well,

0:09:34.440 --> 0:09:36.720
<v Speaker 3>just do this or you know that it surprises me

0:09:36.840 --> 0:09:38.120
<v Speaker 3>that this is going on here.

0:09:38.840 --> 0:09:42.160
<v Speaker 6>Well, I think the best athletes in the world want

0:09:42.200 --> 0:09:43.400
<v Speaker 6>to compete against each other.

0:09:43.520 --> 0:09:44.920
<v Speaker 5>Yeah, and and so.

0:09:45.640 --> 0:09:48.560
<v Speaker 6>Underlying, however, we got to where we are now, you

0:09:48.559 --> 0:09:50.880
<v Speaker 6>would you would think they'd want to be able to

0:09:51.120 --> 0:09:55.240
<v Speaker 6>go head to head. And I'm hoping that that undercurrent

0:09:55.800 --> 0:09:57.040
<v Speaker 6>will will prevail.

0:09:57.760 --> 0:09:59.880
<v Speaker 2>So let's talk a little baseball if we can.

0:10:00.040 --> 0:10:02.679
<v Speaker 3>And both of you were, you know, owners of Major

0:10:02.720 --> 0:10:05.360
<v Speaker 3>League Baseball teams, and when you think about this, we were

0:10:05.280 --> 0:10:08.160
<v Speaker 3>talking a little bit about this backstage. You know, Tom,

0:10:08.200 --> 0:10:10.840
<v Speaker 3>this was a sport baseball. You know, I grew up

0:10:10.880 --> 0:10:12.480
<v Speaker 3>watching it. I'm sure many people in the in this

0:10:12.559 --> 0:10:17.280
<v Speaker 3>audience did. And folks you know watching this, and yet

0:10:17.480 --> 0:10:20.000
<v Speaker 3>it seemed to be running into a little bit of

0:10:20.040 --> 0:10:23.560
<v Speaker 3>trouble over the last couple of years. Competition committee, you know,

0:10:23.679 --> 0:10:30.199
<v Speaker 3>gets together and and make some real changes. It feels

0:10:30.240 --> 0:10:33.800
<v Speaker 3>like it's made a difference. Tell us what it looks

0:10:33.880 --> 0:10:36.520
<v Speaker 3>like from from your perspective when you actually get down

0:10:36.559 --> 0:10:37.040
<v Speaker 3>to the numbers.

0:10:37.040 --> 0:10:39.160
<v Speaker 4>Well, we know, we know it's made a difference because

0:10:39.840 --> 0:10:43.280
<v Speaker 4>the fans have have told us that that one of

0:10:43.320 --> 0:10:46.400
<v Speaker 4>the most important changes in Mark and I are very

0:10:46.440 --> 0:10:50.199
<v Speaker 4>supportive of of all these these changes, is that the

0:10:51.200 --> 0:10:53.760
<v Speaker 4>game was too long. We all knew that it was

0:10:53.840 --> 0:10:56.920
<v Speaker 4>over three hours in length for a night and nine

0:10:56.920 --> 0:11:01.160
<v Speaker 4>inning game. And the pitch clock really has transformed a game.

0:11:01.200 --> 0:11:05.080
<v Speaker 4>Now the game averages about two hours and thirty five

0:11:05.080 --> 0:11:07.720
<v Speaker 4>minutes per game, and so people were not leaving in

0:11:07.760 --> 0:11:10.320
<v Speaker 4>the six or seventh inning. But that's just part of

0:11:10.360 --> 0:11:13.840
<v Speaker 4>an initiative to make changes. You know, the NFL makes

0:11:13.920 --> 0:11:18.600
<v Speaker 4>changes every year and nobody notices it, and every change

0:11:18.640 --> 0:11:20.080
<v Speaker 4>in baseball is scrutinized.

0:11:20.120 --> 0:11:21.559
<v Speaker 5>But along with the.

0:11:21.520 --> 0:11:25.320
<v Speaker 4>Pitch clock, we've made some other changes. We now have

0:11:25.520 --> 0:11:29.080
<v Speaker 4>rules about defensive alignment, which allow more balls.

0:11:28.800 --> 0:11:29.520
<v Speaker 5>To be in play.

0:11:30.240 --> 0:11:37.040
<v Speaker 4>The size of each base is larger, which encourages stealing,

0:11:38.400 --> 0:11:42.280
<v Speaker 4>and so there were rules that have already been implemented.

0:11:42.360 --> 0:11:46.080
<v Speaker 4>And last year, you know, again, another factoid is over

0:11:46.160 --> 0:11:50.040
<v Speaker 4>seventy million people came to Major League baseball games, which

0:11:50.440 --> 0:11:55.960
<v Speaker 4>dwarfs the combined attendance of the NFL, the NBA, and

0:11:56.000 --> 0:11:59.000
<v Speaker 4>the NHL. So we could do probably a better job

0:11:59.080 --> 0:12:02.520
<v Speaker 4>touting that, but to people are going to baseball games,

0:12:03.080 --> 0:12:04.440
<v Speaker 4>you know the minor leagues.

0:12:05.320 --> 0:12:08.360
<v Speaker 6>The most watched sport live in the country is Major

0:12:08.400 --> 0:12:11.520
<v Speaker 6>League baseball. The second most watch sport is minor league baseball.

0:12:12.280 --> 0:12:15.599
<v Speaker 6>So you know, the game and and I think a

0:12:15.640 --> 0:12:17.800
<v Speaker 6>lot of the demographics don't get picked up. You have

0:12:17.960 --> 0:12:23.000
<v Speaker 6>increasing interest on from you know, Latin American community for example,

0:12:23.040 --> 0:12:26.120
<v Speaker 6>and it's not clear that all of that younger demographic

0:12:26.160 --> 0:12:30.520
<v Speaker 6>interest is picked up in the numbers. So look, there's

0:12:30.520 --> 0:12:33.120
<v Speaker 6>nothing more riveting than the ninth inning of a baseball game,

0:12:33.200 --> 0:12:37.000
<v Speaker 6>right And and you know, to Tom's point on on the.

0:12:38.520 --> 0:12:40.840
<v Speaker 5>Some of the changes the pace of game, the action.

0:12:41.679 --> 0:12:46.040
<v Speaker 6>So two years ago, you'd have the shortstop and short

0:12:46.120 --> 0:12:48.319
<v Speaker 6>right field almost like a softball player, and the ball

0:12:48.360 --> 0:12:51.120
<v Speaker 6>would go right to them. Now you've got second basement

0:12:51.280 --> 0:12:53.520
<v Speaker 6>diving and making plays. There's a lot more action and

0:12:53.800 --> 0:12:56.200
<v Speaker 6>and a lot more you know, for the fans to

0:12:56.280 --> 0:12:56.839
<v Speaker 6>engage with.

0:12:57.559 --> 0:12:57.760
<v Speaker 5>You know.

0:12:57.840 --> 0:13:01.480
<v Speaker 3>One of the underlying themes of of your investments, and

0:13:01.720 --> 0:13:04.320
<v Speaker 3>the golf thing fits into this too, is this sort.

0:13:04.200 --> 0:13:04.920
<v Speaker 2>Of global view.

0:13:05.720 --> 0:13:08.920
<v Speaker 3>You know, Mark, you more recently have have gotten into

0:13:09.320 --> 0:13:13.840
<v Speaker 3>the world of football soccer, Tom, you've been there, you know,

0:13:14.080 --> 0:13:17.840
<v Speaker 3>via Liverpool. What is it you take from that experience

0:13:17.880 --> 0:13:20.760
<v Speaker 3>and you apply back to you know, some of your

0:13:21.040 --> 0:13:24.520
<v Speaker 3>US side investments. Tom, I'll start with you, like, what

0:13:24.960 --> 0:13:27.120
<v Speaker 3>have you picked up from Liverpool? You're like, okay, we

0:13:27.160 --> 0:13:29.880
<v Speaker 3>need to do that either from a management perspective or

0:13:30.320 --> 0:13:31.800
<v Speaker 3>an organizational perspective.

0:13:32.640 --> 0:13:37.240
<v Speaker 4>Well, the Premier League, and Mark is involved in English

0:13:37.280 --> 0:13:41.400
<v Speaker 4>football too, is a very popular sport globally. You know.

0:13:41.480 --> 0:13:44.240
<v Speaker 4>Sometimes we have that narrow focus of the United States,

0:13:44.280 --> 0:13:48.679
<v Speaker 4>but we are very pleased to be in the Premier League.

0:13:48.880 --> 0:13:53.319
<v Speaker 4>And many more people watch in Manchester United a Liverpool

0:13:53.360 --> 0:13:54.560
<v Speaker 4>match than the super Bowl.

0:13:54.640 --> 0:13:55.640
<v Speaker 5>So we're aware of that.

0:13:55.720 --> 0:13:59.000
<v Speaker 4>And and part of what we bring to all of

0:13:59.040 --> 0:14:05.199
<v Speaker 4>our investments is relationships with sponsors because they fuel our growth.

0:14:06.000 --> 0:14:10.719
<v Speaker 4>Part of our operational expertise is the relationships we have

0:14:11.160 --> 0:14:18.160
<v Speaker 4>in Liverpool, for example, with ups Google. This week we

0:14:18.200 --> 0:14:23.520
<v Speaker 4>announced a new partnership with Japan Airlines, so you know,

0:14:23.560 --> 0:14:28.000
<v Speaker 4>we are we are excited to be in the Premier League.

0:14:28.760 --> 0:14:31.840
<v Speaker 3>So Mark you looking at and saying, I'm sorry, did

0:14:31.840 --> 0:14:32.680
<v Speaker 3>you say relegation?

0:14:32.880 --> 0:14:34.600
<v Speaker 2>Like what ocean relegation?

0:14:34.680 --> 0:14:34.880
<v Speaker 6>What?

0:14:35.440 --> 0:14:35.600
<v Speaker 3>Well?

0:14:35.640 --> 0:14:35.840
<v Speaker 5>What?

0:14:35.840 --> 0:14:39.160
<v Speaker 6>What created the opportunity for us was relegation. North City

0:14:39.280 --> 0:14:43.760
<v Speaker 6>Canaries were relegated from the Premier League to the Championship League.

0:14:43.800 --> 0:14:47.320
<v Speaker 6>And that that's what created. Out of adversity comes opportunity.

0:14:47.760 --> 0:14:48.560
<v Speaker 5>And what I've.

0:14:48.440 --> 0:14:53.400
<v Speaker 6>Taken from it is the you know, this is this team,

0:14:53.880 --> 0:14:56.680
<v Speaker 6>This club has been in existence over one hundred years.

0:14:56.720 --> 0:14:57.160
<v Speaker 5>They have the.

0:14:57.080 --> 0:15:00.520
<v Speaker 6>Oldest fight song in English football. And what struck me

0:15:01.480 --> 0:15:04.600
<v Speaker 6>sort of I really knew very little about football or

0:15:04.600 --> 0:15:08.600
<v Speaker 6>soccer as somewhat the ted lasso of owners was that

0:15:08.640 --> 0:15:13.320
<v Speaker 6>the fans were close supporters, and the way you engage

0:15:13.320 --> 0:15:16.720
<v Speaker 6>with your supporters is meaningful in such a way that

0:15:16.880 --> 0:15:19.840
<v Speaker 6>almost when you're born in Norfolk County in the east

0:15:19.880 --> 0:15:23.200
<v Speaker 6>of the UK, you start wearing yellow and green. So

0:15:23.680 --> 0:15:26.760
<v Speaker 6>we've looked how to take that sort of feeling and

0:15:27.040 --> 0:15:30.160
<v Speaker 6>bring it to Milwaukee, where we have a natural, you know,

0:15:30.240 --> 0:15:32.480
<v Speaker 6>fan base that grew up with the Milwaukee Brewers.

0:15:32.520 --> 0:15:36.040
<v Speaker 5>And we've learned a lot of lessons from that.

0:15:36.480 --> 0:15:38.040
<v Speaker 3>And so as you look across you just have a

0:15:38.080 --> 0:15:40.040
<v Speaker 3>couple of minutes left. But so as you look across

0:15:40.080 --> 0:15:45.920
<v Speaker 3>the sports opportunity landscape, you do this golf deal, it's

0:15:46.240 --> 0:15:49.920
<v Speaker 3>you know, three billion dollars. The amount of money that

0:15:50.040 --> 0:15:53.480
<v Speaker 3>is pouring into sports is breathtaking. And I sat on

0:15:53.520 --> 0:15:56.760
<v Speaker 3>the stage earlier with Josh Harrison talked about that do

0:15:56.760 --> 0:16:00.120
<v Speaker 3>you worry about sort of the cost and the valuation

0:16:00.240 --> 0:16:02.840
<v Speaker 3>is getting so high? Tom, Like, what do you what

0:16:02.880 --> 0:16:04.080
<v Speaker 3>do you look at You guys have been doing this

0:16:04.120 --> 0:16:04.720
<v Speaker 3>for a long time.

0:16:04.840 --> 0:16:06.320
<v Speaker 5>Now, Well, I look at it differently.

0:16:06.400 --> 0:16:08.960
<v Speaker 4>I think that in Mark would agree that as an

0:16:09.000 --> 0:16:13.080
<v Speaker 4>asset class, investing in sports has shown to has been

0:16:13.320 --> 0:16:18.720
<v Speaker 4>demonstrated to be very attractive to investors, and more and

0:16:18.800 --> 0:16:24.400
<v Speaker 4>more people are investing in sports as an asset. You know,

0:16:24.680 --> 0:16:27.800
<v Speaker 4>part of our we are in partnership with Redbird Capital,

0:16:28.600 --> 0:16:31.680
<v Speaker 4>We're in partnership with Arctos that has a fund that

0:16:31.760 --> 0:16:35.400
<v Speaker 4>invests in multiple teams in major sports.

0:16:35.440 --> 0:16:38.120
<v Speaker 5>So the fact is that.

0:16:38.520 --> 0:16:43.400
<v Speaker 4>Sports as a part of life is immensely important, and

0:16:43.680 --> 0:16:46.680
<v Speaker 4>it's one of the things that brings people together. And

0:16:46.880 --> 0:16:50.760
<v Speaker 4>obviously there's revenue implications for that, and the live.

0:16:50.520 --> 0:16:52.080
<v Speaker 5>Event business is booming.

0:16:52.640 --> 0:16:57.440
<v Speaker 4>So I'm very optimistic about the future of sports and

0:16:57.480 --> 0:16:59.920
<v Speaker 4>the future of teams in a world in which they

0:17:00.000 --> 0:17:01.920
<v Speaker 4>there's obviously scarcity value.

0:17:02.280 --> 0:17:04.560
<v Speaker 3>So mark anything that you're like, no, I'm not gonna

0:17:05.080 --> 0:17:07.760
<v Speaker 3>I'm I'm good for now when it comes to sports

0:17:07.880 --> 0:17:09.760
<v Speaker 3>or something that you want to get into that you.

0:17:09.680 --> 0:17:13.800
<v Speaker 6>Haven't yet well to the point on some of this

0:17:13.920 --> 0:17:18.199
<v Speaker 6>twenty plus years ago, when I bought the Brewers, I

0:17:18.240 --> 0:17:20.200
<v Speaker 6>knew my In fact, my wife came into the study

0:17:20.200 --> 0:17:21.920
<v Speaker 6>one day. My wife, Devian, said, you're not going to

0:17:22.000 --> 0:17:25.840
<v Speaker 6>lose all our money, are you? And so I had

0:17:25.880 --> 0:17:28.160
<v Speaker 6>The Bank of America did a study back twenty years

0:17:28.200 --> 0:17:30.719
<v Speaker 6>ago that showed it was a non correlated asset class

0:17:31.080 --> 0:17:35.000
<v Speaker 6>that didn't you know, would be somewhat recession resistant, which

0:17:35.880 --> 0:17:38.040
<v Speaker 6>sort of is we found in COVID that you know,

0:17:38.359 --> 0:17:41.399
<v Speaker 6>yeh might be different for what's a live event business,

0:17:41.880 --> 0:17:46.320
<v Speaker 6>but I yeah, So look, we're looking at everything from

0:17:46.400 --> 0:17:54.679
<v Speaker 6>women's volleyball to professional sailing and and and other leagues

0:17:54.720 --> 0:17:57.639
<v Speaker 6>to invest in. But you know, I think at some

0:17:57.680 --> 0:18:01.320
<v Speaker 6>point there'll be differentiation. There's some sport that don't make

0:18:01.359 --> 0:18:04.480
<v Speaker 6>sense to me. What's probably the greatest opportunities, not just clear.

0:18:04.520 --> 0:18:09.359
<v Speaker 6>What the land will be is college sports, yeah, and

0:18:10.320 --> 0:18:14.400
<v Speaker 6>enormous revenue opportunities, and that they're not organized yet, they're

0:18:14.440 --> 0:18:17.320
<v Speaker 6>getting organized to take advantage of it. So we've made

0:18:17.320 --> 0:18:21.040
<v Speaker 6>a toe hold investment in a company that's involved with

0:18:21.080 --> 0:18:23.960
<v Speaker 6>the Big twelve and we'll see.

0:18:24.560 --> 0:18:27.080
<v Speaker 3>So Tom will sort of wrap where we started with,

0:18:27.119 --> 0:18:29.400
<v Speaker 3>you know, with golf, this big opportunity.

0:18:29.720 --> 0:18:32.160
<v Speaker 2>What does success look like for you? You know, as you.

0:18:32.320 --> 0:18:34.679
<v Speaker 3>Sort of embarched on this, you put together this pretty

0:18:34.680 --> 0:18:40.720
<v Speaker 3>incredible roster of investors a year from now, two years

0:18:40.720 --> 0:18:43.000
<v Speaker 3>from now, Like what a success looking feel like?

0:18:43.760 --> 0:18:48.800
<v Speaker 4>Well, we're patient, but success is the fact that the

0:18:48.840 --> 0:18:53.400
<v Speaker 4>best players will be playing in events in a schedule

0:18:53.480 --> 0:18:56.120
<v Speaker 4>that works for the players and the audience.

0:18:56.880 --> 0:19:00.680
<v Speaker 6>Mark agreat FSG has a real sense of agency here,

0:19:00.920 --> 0:19:04.400
<v Speaker 6>and you know, I think that's going to prove out.

0:19:05.000 --> 0:19:08.320
<v Speaker 1>Mark Attanasio, the chairman and principal owner of the Milwaukee

0:19:08.440 --> 0:19:12.080
<v Speaker 1>Brewers Baseball Club, and Tom Werner, chairman and co founder

0:19:12.119 --> 0:19:16.400
<v Speaker 1>of Fenway Sports Group, speaking with Bloomberg's Jason Kelly at

0:19:16.440 --> 0:19:18.320
<v Speaker 1>the Bloomberg invest Conference