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Speaker 1: Hello, I'm Michael barn and I'm Scott Sashnik. Every week

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Speaker 1: at this time plus Mondays, Wednesdays and Thursdays, we explore

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Speaker 1: the big money issues in the world of sports. Today,

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Speaker 1: Scott and the man Evan now Williams, who is joining

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Speaker 1: us right now, will speak to the president and CEO

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Speaker 1: of Reebok, Matt O'Toole. But first let's take a look

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Speaker 1: at the top stories of the week, and let's start

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Speaker 1: with E Sports Full Sailed University in Florida. I'm still

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Speaker 1: trying to understand all of this. What is this? Wow?

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Speaker 1: The top stories of the week, and we're starting with

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Speaker 1: full Sales. But it's one of the more interest ones.

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Speaker 1: This isn't one of those general interest top stories of

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Speaker 1: the week. Yeah, it's a it's a for profit university

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Speaker 1: down in Florida. They are another and another school announcing

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Speaker 1: that they're building a big sports arena, what I think

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Speaker 1: is going to be the biggest E sports arena, E

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Speaker 1: sports only arena in in college right now. They're launching

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Speaker 1: their own teams. UH. They are the latest in a

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Speaker 1: number of schools that is taking this quote unquote varsity

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Speaker 1: approach to the sports. UH. In a goal to attract

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Speaker 1: new students and new talent just tells me they see money,

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Speaker 1: and that's what it tells me. Yeah, it's interesting. The

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Speaker 1: sports has professionally has become a big deal in the US.

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Speaker 1: On the collegiate side, it's taking a little bit longer.

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Speaker 1: Must Most of the schools that you see that are

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Speaker 1: doing it well are not the schools that you think

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Speaker 1: of as big major schools. You know. It's very popular

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Speaker 1: with small colleges in the Midwest. Full Sale University another

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Speaker 1: perfect example of school I didn't even know existed until

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Speaker 1: I saw this announcement. It's an opportunity just edged. Full sale.

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Speaker 1: Didn't happen for me, no offense, full sale. If you

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Speaker 1: think about that, the cost associated with with doing this,

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Speaker 1: costs are not all that high. I think this building

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Speaker 1: has cost five million dollars. Did happen to write it?

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Speaker 1: It's called the Fortress. Yeah, that was pretty bad. It's

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Speaker 1: five We can hold five d fans. What is eleven thousand?

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Speaker 1: You can't even hold all your friends bar. This is

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Speaker 1: a good opportunity, though, for a school that isn't on

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Speaker 1: people's radar to attract, you know, if they're looking for

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Speaker 1: international students, you know, in sports pay more, who pay

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Speaker 1: more generally do better in school. Um, then this is

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Speaker 1: a chance for them to get on the radar, maybe

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Speaker 1: in kids in China, maybe kids in South Korea, places

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Speaker 1: where the sports are very popular and places where you

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Speaker 1: know people are being raised right now to expect that

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Speaker 1: it can be a ticket to get a full education.

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Speaker 1: This might be a smart offer. You remember the like

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Speaker 1: the warm up routine you showed me for the amazing

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Speaker 1: Can you put that on your Twitter feed? Sure for

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Speaker 1: anybody listening. Bar you gotta see this just when you

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Speaker 1: think like, oh, anybody can do it. Evans showed me

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Speaker 1: this sports but I don't know who it was, but

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Speaker 1: like the warm up routine to get ready to play,

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Speaker 1: you had to see this thing moving all over the

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Speaker 1: screen like specific targets. It was Bungo man. I likened

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Speaker 1: it to that video that that we shared last you're

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Speaker 1: with Patrick Kane, you know stick handling. It's a perfect

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Speaker 1: the thing you see and you watch an athlete doing

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Speaker 1: his thing and you're like, what's analogous to that? That is?

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Speaker 1: These guys are on a whole different plane. It will

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Speaker 1: make you appreciate the sports athletes as athletes. I'm not

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Speaker 1: I guess thought warming up was just have a beer

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Speaker 1: and go, But for you it is, yeah, well for

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Speaker 1: me it is. But on to our next topic, the

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Speaker 1: Colin Kaepernick trademark story. What is this all about? Uh,

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Speaker 1: Colin Kaepernick. To no surprise, he is trademarking sort of

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Speaker 1: a black and white outline of his his head, his

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Speaker 1: You know, it's obviously a a known commodity. At this point,

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Speaker 1: you can tell it's a fallen the frow. Yeah, the

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Speaker 1: whole thing. Um. And I'm reminded remember the Simpsons where

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Speaker 1: Jay Guervera was walking and he was wearing a Bart

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Speaker 1: Simpson T shirt. That's what goes through my head because

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Speaker 1: I'm thinking of the T shirts that really have people

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Speaker 1: like immediately recognizable. You have the Chay, you had the part,

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Speaker 1: now you've got the Kaepernick. What's sad is that I

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Speaker 1: knew Evans like what But listen, this guy Nike, with this,

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Speaker 1: with this new ad campaign, has put him in the

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Speaker 1: stratosphere and he is going to take advantage and whether

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Speaker 1: it's just on the commercial side, um, with a lot

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Speaker 1: of the money, by the way being donated to charity.

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Speaker 1: So he's going to take advantage of whatever he can

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Speaker 1: and whatever this platform that he has been given is

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Speaker 1: taking advantage of. Yeah, we've seen in the past couple

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Speaker 1: of months he started selling jerseys and T shirts on

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Speaker 1: his website. Proceeds from that, as Scott said, go to

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Speaker 1: his Know Your Rights campaign, the youth self empowerment stuff

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Speaker 1: that he's doing. The trademark for this the face image,

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Speaker 1: says it can be used on anything from candles to

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Speaker 1: shampoo to to T shirts. Um, I would imagine he's

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Speaker 1: going to treat this the same way as he treats

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Speaker 1: those jerseys, and that a lot of the proceeds, if

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Speaker 1: not all, the proceeds, will be going to the work

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Speaker 1: he's doing in youth communities. But a does show you know,

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Speaker 1: there's some kind of evolution going on right now. He

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Speaker 1: may be coming to terms with the fact that he's

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Speaker 1: unfortunately never going to play in the NFL again, but

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Speaker 1: we're seeing what the seeds for what maybe the next

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Speaker 1: step for Colin Kaepernick. Amazingly, whatever platform has got, it

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Speaker 1: could be bigger than the NFL. Sure, this is something

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Speaker 1: where when you have something that's on a network for

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Speaker 1: a long time and then it changes over it takes

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Speaker 1: my little feeble mind to get used to it. When

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Speaker 1: I'm talking about is the p g A Championship will

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Speaker 1: go to CBS and ESPN, and it's leaving Turner. Well

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Speaker 1: had been on CBS two for the weekend coverage, but

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Speaker 1: the Thursday Friday had been with Turner for twenty nine years,

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Speaker 1: leaving for the ESPN. ESPN. Plus, they're building quite a

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Speaker 1: platform over there. And then, and if you want people

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Speaker 1: to fork over the five bucks a month, you've got

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Speaker 1: to have the content. This gives CBS the first two

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Speaker 1: because the PGA Championships moving time of year next year,

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Speaker 1: so now CBS will have the first two majors on

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Speaker 1: their air. Uh, and more money than last time. We

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Speaker 1: don't have the specifics, but we do know it was

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Speaker 1: for more money than last time, solidifying that sports is

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Speaker 1: still a driver. The only golf that TBS Turner cares

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Speaker 1: about is UH. Is the pay per view kind is

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Speaker 1: my takeaway? Yeah? Did I see right by the way

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Speaker 1: that no public they're not giving tickets to the general

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Speaker 1: public to the to then? Yeah, I think I saw

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Speaker 1: somebody tweet that this morning. More people to buy it,

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Speaker 1: all right, Michael, I think Ebit and I can take

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Speaker 1: it from here. For our interview with the president and

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Speaker 1: CEO of Rebuked Matto Tool. Matt joined the company in

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Speaker 1: two thousand and four after Reebok acquired the hockey company.

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Speaker 1: He slowly molded it to a fitness first, athletic brand.

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Speaker 1: He helped with some sponsorships, you know, cross Fit, UFC

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Speaker 1: and the star studded Ambassadors. Matt, thanks so much for

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Speaker 1: joining us. Really happy to be here. Thanks so, Rebuk.

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Speaker 1: The company that you run right now is not the

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Speaker 1: same Rebuk that a lot of people might think of

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Speaker 1: from the from the early two thousands or before. You've

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Speaker 1: made a major transition from sports teams into fitness athletics.

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Speaker 1: Give us a sense where the company is right now?

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Speaker 1: Absolutely no. I think the way you described it as

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Speaker 1: right that we've taken a company back to its roots.

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Speaker 1: When Reebok came on the scene in the early eighties,

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Speaker 1: it came on as a fitness band, particularly a women's

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Speaker 1: fitness brand, and there's so much opportunity for us in

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Speaker 1: fitness and running, and we've spent the last four or

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Speaker 1: five years really on this transformation of building back our

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Speaker 1: authenticity and the fitness space you became. You sold to

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Speaker 1: Adidas in two thousand and five, became a subsidiary of Adidas.

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Speaker 1: How much of this was a was a desire not

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Speaker 1: to overlap with a lot of the things that Adidas

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Speaker 1: was doing as well. Well. I definitely think that, you know,

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Speaker 1: part of the calculus is that there's an opportunity for

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Speaker 1: Adidas and Reebok to be complementary to each other, and

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Speaker 1: that Reebok has this rich heritage in UH fitness and

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Speaker 1: running space and it complements Adidas is focuses on team

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Speaker 1: sports and particularly in the saw or space. So that

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Speaker 1: part really worked for us. And now our job at

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Speaker 1: Rebuke is to really you know, take advantage of what's

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Speaker 1: happening in the marketplace where so many people are, you know,

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Speaker 1: kind of living a more fitness lifestyle. I imagine that

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Speaker 1: transition was not simple, certainly financially. How how much of

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Speaker 1: the of the product that you guys had maybe four

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Speaker 1: years ago with stuff that you don't even offer anymore

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Speaker 1: right now? Yeah? Absolutely, I mean this was a tough

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Speaker 1: decision from a business point of view. We had um

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Speaker 1: almost a third of our revenue um about seven hundred

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Speaker 1: million euros of business in team sports, whether it was

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Speaker 1: cricket in India or American football here and we've spent

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Speaker 1: the last few years transitioning from that those revenue streams

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Speaker 1: to new revenue streams in the fitness space through our

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Speaker 1: partnerships with you know, folks like cross Fit or less malls,

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Speaker 1: but also um, you know on the footwear side, with

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Speaker 1: some innovations that have helped kind of propel the fitness

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Speaker 1: footwear business as well. So what's looking forward? You've now

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Speaker 1: kind of hit the reset button. It sounds like you've

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Speaker 1: e raised a lot of the kind of the revenue

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Speaker 1: deficit that you had when you cut those out. What

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Speaker 1: is Reebok in the next five years now? You're absolutely right.

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Speaker 1: We we've got gone through the process of you know,

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Speaker 1: anniversaryng the old team sport business with our fitness business,

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Speaker 1: and if you looked at our revenue over the last

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Speaker 1: several years, where there's been some modest increases, but now

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Speaker 1: we're in a position where we've kind of reset the business.

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Speaker 1: Take the US for example, where the most transition needed

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Speaker 1: to happen will be back to growth in two thousand

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Speaker 1: and eighteen. And you know, one of the things that's

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Speaker 1: making this you know, very advantageous for us right now

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Speaker 1: is not only is the fitness trend very significant, but

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Speaker 1: we have this archive of classic models that are from

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Speaker 1: the eighties and nineties that are really relevant for today.

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Speaker 1: So yeah, so it's kind of connecting our heritage with

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Speaker 1: our modern sport products and giving us a whole bunch

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Speaker 1: of different opportunities. Where do wearables come in and all

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Speaker 1: of this. Everybody with their workout, it's all digital disease.

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Speaker 1: Everybody has to track what they're doing. They use online coaching.

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Speaker 1: How does Rebok we play in that market? You know?

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Speaker 1: I think it's a really important point that you know,

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Speaker 1: we were focused on making sure that we've got a

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Speaker 1: strong loyalty program for our consumers, so they're connected to

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Speaker 1: you know, the types of exercise programs they're interested in.

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Speaker 1: I think the actual like the hardware, which there was

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Speaker 1: a time where everybody was gonna come out with their

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Speaker 1: own piece of hardware that someone would wear for their

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Speaker 1: run through Central Park. I think this is you know

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Speaker 1: already clear that the hardware isn't the place where the

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Speaker 1: brands are going to participate as much more on the

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Speaker 1: app side. But you're absolutely right. I think what's interesting

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Speaker 1: though that you mentioned that UM is there's definitely like

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Speaker 1: almost two worlds where you've got some consumers who have

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Speaker 1: really leaned into the data and they want to know everything.

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Speaker 1: And then you've got another big consumers all right, you

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Speaker 1: know they're fit bit is in their uh drawer in

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Speaker 1: the kitchen, and they really don't want to know the data.

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Speaker 1: They just know when they're feeling good or when they're

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Speaker 1: not feeling good. And I think, um, you know, there's

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Speaker 1: a lot to be said for that, because I think,

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Speaker 1: you know, exercise should be a place where you can

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Speaker 1: kind of like unplug and clear your head. Where are

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Speaker 1: you on that spectrum? I know you're I can tell

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Speaker 1: I can tell that you. I just I mean to me,

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Speaker 1: it's all about like you know, um, I've ran my

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Speaker 1: whole life and now I do a lot of crossfitt

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Speaker 1: and a few other things. But for for me, I

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Speaker 1: really I'm not interested in the exact number you know,

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Speaker 1: a revsite did and what time. It's just really about

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Speaker 1: getting in there and going for it. And some days

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Speaker 1: you're feeling really good and other days you're not. It's

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Speaker 1: CrossFit the main exercise you do. What's your what's your?

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Speaker 1: There's where? Um in our office, we have a wonderful

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Speaker 1: gym and we have I guess thirty different fitness activities

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Speaker 1: that can do, but one of them is CrossFit. There's

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Speaker 1: a noon class. I do it with thirty or forty

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Speaker 1: people every day at noon when I'm in the office,

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Speaker 1: and it's a great way. Also, just like you know,

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Speaker 1: connect that so and this is kind of related to

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Speaker 1: your comment about connected devices. I think so much of

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Speaker 1: what's happening in fitness right now is the community aspect

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Speaker 1: people are. You know, the days of like going to

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Speaker 1: a big gym and putting your credit card down and

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Speaker 1: nobody knows whether you showed up or didn't show up

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Speaker 1: is kind of being replaced with these communities of people

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Speaker 1: who are kind of keeping each other accountable. And crossfits

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Speaker 1: a good example that, like you, if you missed three

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Speaker 1: classes in a row, people, somebody's going to call you

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Speaker 1: up and say, hey, where were you? So is the

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Speaker 1: is the rebuck jim Reebuck shoes only? Oh? Absolutely, yeah,

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Speaker 1: that would be a big mistake. I went brand agnostic

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Speaker 1: today just so you know what's chadding with metal tools

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Speaker 1: rebuked and Matt, how does the company get led astray?

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Speaker 1: How does it lose its focus and now you have

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Speaker 1: to come back to what you were How does that happen. Well,

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Speaker 1: I think that that's the key word, is that, um,

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Speaker 1: there's a lot of shiny objects out there in a

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Speaker 1: big industry like the sports world, and you can kind

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Speaker 1: of spread your resources and your energy and effort attacking

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Speaker 1: a lot of different segments and and unfortunately, if you

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Speaker 1: do that, it's difficult to really be meaningful to the

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Speaker 1: consumer in anyone's space. And so that definitely we felt

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Speaker 1: like was the case for Reebok. Were well known brand,

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Speaker 1: one of the top five brands in terms of awareness

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Speaker 1: around the world, but we hadn't really established ourselves as

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Speaker 1: being known for something with the consumer in a big way,

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Speaker 1: and so we've got to go back and kind of

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Speaker 1: reclaim our home court and then kind of build back

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Speaker 1: out from there. It's quite an investment for the company,

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Speaker 1: it really is, and we have been intentional in the

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Speaker 1: fact that we have to kind of as a percentage

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Speaker 1: of our overall sales, we have to overspend in our

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Speaker 1: marketing for a while, and we're spending in the neighborhood

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Speaker 1: of fourteen or fifteen percent of revenue on marketing. But

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Speaker 1: it's to do exactly what you're saying, is to get

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Speaker 1: this story out there and make sure people know what

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Speaker 1: our focus is and what our point of the princes

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Speaker 1: versus the competition about kids? How do you win kids? Well, kids,

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Speaker 1: I mean kids very much today are you know, emulating

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Speaker 1: adults and so a lot of what's working for adults

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Speaker 1: is what's working for kids. But I mean, if we

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Speaker 1: think depending on your definition of kids, if we're talking

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Speaker 1: about teenagers, that's a different story. But um, you know,

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Speaker 1: in terms of the pure kids market, a lot of

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Speaker 1: what works for us in the adult market is what

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Speaker 1: works from the kids market. But if we look at um,

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Speaker 1: you know, reaching the younger audiences, Um, you know, kids

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Speaker 1: who are high school, college age or just out of college.

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Speaker 1: I mean, every what what they're consuming and even what's

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Speaker 1: impacting them is definitely coming through a digital space, you know,

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Speaker 1: so that we're I would say, you know, ten years ago,

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Speaker 1: if we were talking, we probably would have had a

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Speaker 1: bigger you know, broadreach media investment which involved a TV

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Speaker 1: and things like that. Today, you know, we're definitely focused

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Speaker 1: on making sure we're reaching our consumer and I focus

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Speaker 1: way through their handheld device. Yeah, So what do they

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Speaker 1: tell you that matters most? Is it cool design, is

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Speaker 1: it functionality? Is it price point or is it all

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Speaker 1: of it? Well, you know, that's a great question because

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Speaker 1: it really depends on you know, the consumer type that

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Speaker 1: that athletic business today is a kind of varied continuum

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Speaker 1: from the serious athlete who wants the absolute you know,

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Speaker 1: perfect running shoe or the best trainer like our cross

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Speaker 1: bit Nano or like are in running the float right run.

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Speaker 1: But then there there's you know, there's the whole kind

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Speaker 1: of broader aperture of the athletic space where people are

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Speaker 1: buying a piece of athletic to just have for their

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Speaker 1: everyday life and that that's how they're expressing themselves. And

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Speaker 1: this is definitely much more kind of a what's aesthetically appealing,

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Speaker 1: what connects to my style? I what my friends are wearing?

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Speaker 1: Um and it's the fastest growing part whether you're in

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Speaker 1: the United States or in China or Europe, people are

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Speaker 1: wearing athletic as fashion today and there's you know, huge

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Speaker 1: opportunities there and that definitely isn't more in that they're wearing.

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Speaker 1: Like the big thing I see is like sweatpants in

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Speaker 1: the dress pants. I'm a big fan of those. I'm

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Speaker 1: dressed up today in my jeans and uh, and what

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Speaker 1: I don't even know what these are called. Like the

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Speaker 1: dress sneakers, this is a great invention. It's like a

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Speaker 1: step up from the sneakerne It's not a dress you,

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Speaker 1: but it has it has crawled into the psyche of

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Speaker 1: corporate America as being acceptable, Yeah, comfortable for me, and

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Speaker 1: that within that world kind of this growth of lifestyle

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Speaker 1: and fitness as a kind of everyday where we've seen

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Speaker 1: companies have a lot of success partnering not with athletes,

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Speaker 1: but with influencers and celebrities. Certainly Adidas and Kanye come

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Speaker 1: to mind. You guys are doing work with Victoria Beckham,

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Speaker 1: Ariana Grande. Pierre Moss talked to us about what those

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Speaker 1: partnerships mean kind of outside of just serious fitness into

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Speaker 1: the lifestyle world as well. Yeah, absolutely, I think you

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Speaker 1: know it. It is really important for a brand like us,

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Speaker 1: who has these kind of clear credentials in the kind

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Speaker 1: of fitness and sports space is to partner with influencers

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Speaker 1: who are kind of driving the fashion and trend space.

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Speaker 1: So you mentioned Victoria Beckham. We're doing a fitness collaboration

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Speaker 1: with Victoria where she's looking kind of our archive of

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Speaker 1: fitness products and reimagining those for the consumer, or you

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Speaker 1: have Pierre Moss, who's you know, on fire right now

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Speaker 1: and and thinking about what the urban consumer is interested

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Speaker 1: in relative to our brand and his brand and these things,

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Speaker 1: you know, I think added dimensionality to the brand that ultimately,

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Speaker 1: then over a few months, start to spread into broader

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Speaker 1: distribution and those strands or styles become mainstream. And I

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Speaker 1: assume that also helps in terms of what the future

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Speaker 1: might look like. Right some of these people are kind

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Speaker 1: of on the cutting edge or even defining what style

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Speaker 1: and fashion is. Yeah. Absolutely, I mean so a great

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Speaker 1: example that is UM we just did a collaboration with Vetma,

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Speaker 1: which is a European fashion house, and it's a split

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Speaker 1: tool shoe. And now that is definitely kind of where

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Speaker 1: the market is going to, where I say split the

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Speaker 1: soul of the shoe is in pieces UM and so

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Speaker 1: now kind of the biggest shoe that will launch UM

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Speaker 1: with some of our retailers here in the US will

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Speaker 1: be a split tool shoe at a much more accessible

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Speaker 1: But I ask a very simple question why and what

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Speaker 1: is that? Well, basically what it is is the technology

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Speaker 1: came around in the nineties where you kind of make

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Speaker 1: two pieces for the bottom of your shoe instead of one,

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Speaker 1: so the shoe is more flexible and lighter. And so

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Speaker 1: this if you come now, now come back two decades

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Speaker 1: later from the fashion side saying this is really a

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Speaker 1: look that's very appealing, Um, chunky soul, it's more of

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Speaker 1: a nineties look, but we can bring it back as

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Speaker 1: well from its performance heritage. So it is kind of

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Speaker 1: connecting technology that really works with what's happening from a

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Speaker 1: fashion trend. So if on a wind tour does something

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Speaker 1: with a competitor, which do you see that and say, oh,

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Speaker 1: why didn't we think about that? Or that's not us?

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Speaker 1: I think more often than not we'll we'll say that's

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Speaker 1: not us. I think, Um, it's got to be kind

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Speaker 1: of the right person that fits what we're trying to do. Um.

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Speaker 1: But there are there's a whole bunch of different collaborations

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Speaker 1: going on with athletic companies and fashion or music, and

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Speaker 1: we're like really focused on trying to find the ones

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Speaker 1: that kind of are in our wheelhouse and connected with

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Speaker 1: what the message of the brand is. Meadow Tool, President

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Speaker 1: of Rebuk. Is there someone out there that you think, ah,

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Speaker 1: I would love to collaborate with X on a on

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Speaker 1: a shoe or a piece of apparel. Yes, there are

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Speaker 1: quite a few, but I don't want to reveal. Stay soon.

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Speaker 1: There's more to come. Absolutely, yeah. I think that the

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Speaker 1: you know, one of the things that is so exciting

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Speaker 1: about our space right now is like it's not, you know,

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Speaker 1: not everything that's happening isn't kind of being done in

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Speaker 1: some lab in the basement of your building. This is

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Speaker 1: a really open source environment, and there's so many great

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Speaker 1: ideas out there that can kind when when they're layered

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Speaker 1: against what we're doing at Reebok, can really be big,

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Speaker 1: powerful statements in the market. You're one of your biggest competitors.

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Speaker 1: Nike made news last month partnership with Colin Kaepernick. As

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Speaker 1: you think about your marketing and and the you know,

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Speaker 1: the political harm or or dangers of waiting into some

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Speaker 1: of the biggest social issues right now, is that something

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Speaker 1: that you guys are on board with something you may

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Speaker 1: do in the future. Do you want to stay as

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Speaker 1: a political as possible kind of how do you weigh

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Speaker 1: the balance? Well, I think for us, we start with,

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Speaker 1: you know, our our kind of core idea is that,

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Speaker 1: you know, sport has the power to change lives, and

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Speaker 1: if we Look, we can pick a bunch of times

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Speaker 1: in history, whether they were you know, Olympic moments um

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Speaker 1: or even with like the kind of advent of Reebok

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Speaker 1: coming on the scene, whether it was Title nine in

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Speaker 1: the US which made access to sports for women available

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Speaker 1: and then inspired a lot of other women to get active, workouts,

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Speaker 1: have muscles. I think social change can be amplified through sport,

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Speaker 1: and I think rebake we would say that's a particularly

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Speaker 1: good thing, um and there's gonna be a lot of

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Speaker 1: other opportunities in the future. And as long as they're

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Speaker 1: consistent with your brand values, I think that's the most

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Speaker 1: important thing. And maybe some consumers will not be connected

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Speaker 1: to those values, and that that's part of you know,

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Speaker 1: standing for something. Historically, don't use the tagline of the competitor,

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Speaker 1: but historically sports that commissioners leagues have talked about athletics

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Speaker 1: as unification. However, we are seeing a bit of divisiveness

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Speaker 1: these days. Is their reputational harm risk in associating with

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Speaker 1: things that could divide? I think there is, But you know,

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Speaker 1: as we've seen historically and we're seeing in the present,

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Speaker 1: I think the consumer probably deep down is more altruistic

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Speaker 1: than we give them credit even though there is like

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Speaker 1: political rhetoric that's trying to kind of get people to

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Speaker 1: choose camps that some of these basic ideas of you know, diversity, inclusion,

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Speaker 1: fairness kind of ring true with the consumer, and I

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Speaker 1: think that ultimately, you know, brands that stand for that

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Speaker 1: are going to be successful. Where's the biggest growth market

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Speaker 1: for you guys from a geography point of view. Long term,

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Speaker 1: it's definitely China. I mean, this is there's a ton

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Speaker 1: happening there. In the mid term. For US, it's the US.

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Speaker 1: I talked about earlier. We did this reset where we

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Speaker 1: moved our business from a team sport profile to more

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Speaker 1: of a fitness and running profile, and now we have

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Speaker 1: a big opportunity to accelerate, especially with what's happening on

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Speaker 1: the lifestyle or classic side of the business. You don't

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Speaker 1: hear that much for big brands in the US that

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Speaker 1: the US is also a growth market luxury in some ways, right, Absolutely,

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00:22:42,960 --> 00:22:46,360
Speaker 1: I think you're right. It's it's the biggest sports market

429
00:22:46,400 --> 00:22:48,440
Speaker 1: in the world, but also the most mature sports market

430
00:22:48,440 --> 00:22:51,159
Speaker 1: in the world. But for Reebok, it's, uh, it's a

431
00:22:51,200 --> 00:22:54,119
Speaker 1: big opportunity given uh, you know, our share. We have

432
00:22:54,240 --> 00:22:56,520
Speaker 1: a lot of opportunity to take share from our competitors.

433
00:22:56,960 --> 00:23:00,679
Speaker 1: How much of your inventory is customizable right now? That

434
00:23:00,440 --> 00:23:03,159
Speaker 1: if I could go on and design a shirt or

435
00:23:03,160 --> 00:23:06,960
Speaker 1: a shoe specific to my color and look preference. We

436
00:23:07,040 --> 00:23:10,720
Speaker 1: have our main models, you can go on and customize

437
00:23:10,760 --> 00:23:14,560
Speaker 1: and choose your colors, choose materials in some cases. UM.

438
00:23:14,600 --> 00:23:17,119
Speaker 1: It is interesting. I think this this part of the

439
00:23:17,119 --> 00:23:20,960
Speaker 1: business went through a big boom five years ago and

440
00:23:21,040 --> 00:23:24,240
Speaker 1: before UM, but has really kind of, I think shifted

441
00:23:24,240 --> 00:23:28,360
Speaker 1: more to consumers wanting to buy unique products, but by

442
00:23:28,480 --> 00:23:31,399
Speaker 1: unique products kind of in like you know, lots of

443
00:23:31,600 --> 00:23:34,720
Speaker 1: a hundred or a thousand and and not particularly kind

444
00:23:34,720 --> 00:23:38,560
Speaker 1: of you know, design their own particular products. Yeah. So

445
00:23:38,760 --> 00:23:40,919
Speaker 1: the thing I my experience with all these you know,

446
00:23:40,960 --> 00:23:43,359
Speaker 1: build your own running shoes is that I think I

447
00:23:43,400 --> 00:23:46,720
Speaker 1: can do a great job, and I never like anything

448
00:23:46,760 --> 00:23:49,480
Speaker 1: I end up with. I think I need I want

449
00:23:49,480 --> 00:23:51,480
Speaker 1: something to me because I would go and say, Edmund,

450
00:23:51,480 --> 00:23:53,560
Speaker 1: I don't think you would do well at that, but

451
00:23:53,680 --> 00:23:55,639
Speaker 1: that well that might be Like that could be the

452
00:23:55,720 --> 00:23:57,760
Speaker 1: reason why this has kind of slowed down is that

453
00:23:58,520 --> 00:24:01,880
Speaker 1: you know that consumers are realizing, Hey, what that designer

454
00:24:01,920 --> 00:24:05,840
Speaker 1: did is probably a little bit better. It's the stuff

455
00:24:05,880 --> 00:24:08,600
Speaker 1: that's already sold by you guys as vetted as as

456
00:24:08,680 --> 00:24:11,520
Speaker 1: cool and in some capacity, and the stuff that I'm creating,

457
00:24:11,520 --> 00:24:13,880
Speaker 1: I just look at it. I'm like, oh, if this

458
00:24:13,960 --> 00:24:16,439
Speaker 1: was really cool, like when reebuk have just offered this,

459
00:24:16,520 --> 00:24:18,560
Speaker 1: Like when when they have figured this out themselves, I think,

460
00:24:18,600 --> 00:24:21,120
Speaker 1: I think that's a really good insight. But how many

461
00:24:21,119 --> 00:24:23,719
Speaker 1: designs do you say, or do you designers if they

462
00:24:23,720 --> 00:24:27,359
Speaker 1: come up and wind up saying that doesn't work? How much? What?

463
00:24:27,359 --> 00:24:29,439
Speaker 1: What works? What? What's the percentage of things that are

464
00:24:29,480 --> 00:24:32,880
Speaker 1: presented and don't work just get scrapped? Oh more more

465
00:24:33,000 --> 00:24:36,119
Speaker 1: is scrapped then then actually makes it to the marketplace.

466
00:24:36,119 --> 00:24:39,040
Speaker 1: I mean the primary role. You know, our creative director

467
00:24:39,119 --> 00:24:42,919
Speaker 1: likes to say that her primary function as editor. I

468
00:24:42,960 --> 00:24:47,080
Speaker 1: mean the you know, the capacity of the design organization

469
00:24:47,240 --> 00:24:51,960
Speaker 1: to bring new models or new interpretations of existing models

470
00:24:52,080 --> 00:24:55,000
Speaker 1: is pretty significant. But what we want to do is

471
00:24:55,000 --> 00:24:57,879
Speaker 1: like ddit that down to what really is great and

472
00:24:57,880 --> 00:25:00,840
Speaker 1: and and deliver that to the marketplace. So there's a

473
00:25:00,840 --> 00:25:03,199
Speaker 1: lot of designers who you know, pour their heart and

474
00:25:03,240 --> 00:25:06,000
Speaker 1: soul into product, but doesn't make the actual you know,

475
00:25:06,080 --> 00:25:09,359
Speaker 1: final lineup and that's a very common scenario. I'd love

476
00:25:09,359 --> 00:25:12,159
Speaker 1: an outtakes page. Yeah, just an idea to look at,

477
00:25:12,160 --> 00:25:14,000
Speaker 1: like what would you guys consider it or what didn't

478
00:25:14,640 --> 00:25:16,159
Speaker 1: have and then have the customers like you know what

479
00:25:16,200 --> 00:25:19,200
Speaker 1: that actually? I like that a surprise success. That might

480
00:25:19,200 --> 00:25:23,480
Speaker 1: be a good idea. You have a vote, bring one back.

481
00:25:23,520 --> 00:25:26,200
Speaker 1: And and so you know, I told my buddy that

482
00:25:26,240 --> 00:25:27,600
Speaker 1: we were having you on today. You know what he

483
00:25:27,640 --> 00:25:30,560
Speaker 1: asked me. He's like, ask him, this is Iverson still

484
00:25:30,560 --> 00:25:36,120
Speaker 1: getting paid? Yes? Is that a bad deal? Why? Well,

485
00:25:36,119 --> 00:25:40,840
Speaker 1: I mean he's an iconic personality and obviously does anybody

486
00:25:40,920 --> 00:25:45,119
Speaker 1: who thinks about we should get let's get on a

487
00:25:45,160 --> 00:25:48,560
Speaker 1: plane to Shanghai together, because you bring Allen Iverson into

488
00:25:48,840 --> 00:25:54,000
Speaker 1: a market like that. Where have you done that recently? Okay? Okay, yeah,

489
00:25:54,040 --> 00:25:58,520
Speaker 1: but I mean he I mean, I I'll stand firmly

490
00:25:58,560 --> 00:26:00,879
Speaker 1: that he has a big place and you know basketball

491
00:26:00,920 --> 00:26:03,520
Speaker 1: and sport history. You know, he's definitely was you know,

492
00:26:03,640 --> 00:26:05,959
Speaker 1: took a road less travel and he's had a lot

493
00:26:06,000 --> 00:26:09,760
Speaker 1: of challenges, but he's relevant for a lot of our concerns.

494
00:26:09,800 --> 00:26:11,840
Speaker 1: So he has a lifetime deal. Is that right? Yes?

495
00:26:12,240 --> 00:26:14,120
Speaker 1: How much does he paid a year? If you can say,

496
00:26:14,320 --> 00:26:16,760
Speaker 1: I can't tell you that. And is he is he

497
00:26:16,840 --> 00:26:19,320
Speaker 1: relevant for the new reebok as much as the old

498
00:26:19,400 --> 00:26:21,760
Speaker 1: basketball relevant Rebok? I mean, I think it's what I

499
00:26:21,800 --> 00:26:24,280
Speaker 1: would say is he has a place in our heritage

500
00:26:24,400 --> 00:26:28,040
Speaker 1: and and that there is a group of consumers who

501
00:26:28,240 --> 00:26:31,400
Speaker 1: are want to connect to that and will introduce, uh,

502
00:26:31,520 --> 00:26:33,720
Speaker 1: you know, one of our you know, an I three

503
00:26:33,880 --> 00:26:36,600
Speaker 1: model or something like that. But these aren't huge volumes,

504
00:26:36,600 --> 00:26:38,560
Speaker 1: but it's a there's a certain group of consumers they

505
00:26:38,560 --> 00:26:40,480
Speaker 1: want to connect to that. Well, I know he's being

506
00:26:40,760 --> 00:26:43,160
Speaker 1: kind of truthful here, yeah, because he didn't say, well,

507
00:26:43,160 --> 00:26:45,359
Speaker 1: pull fireman did that? That wasn't That wasn't That didn't

508
00:26:45,359 --> 00:26:49,600
Speaker 1: happen on my watch? You know. So as any of this,

509
00:26:49,640 --> 00:26:51,680
Speaker 1: when you're competing against the Nike, do you ever feel

510
00:26:51,680 --> 00:26:55,560
Speaker 1: like sisiphus, like you just that's the behemoth. That's kind

511
00:26:55,560 --> 00:26:57,719
Speaker 1: of like competing against ESPN or or any of these

512
00:26:57,760 --> 00:27:02,000
Speaker 1: mega brands. I we don't. I mean, honestly, we don't

513
00:27:02,119 --> 00:27:03,879
Speaker 1: spend a lot of time and it sounds kind of

514
00:27:04,000 --> 00:27:07,199
Speaker 1: counterintry of thinking about our competition. We're thinking about what

515
00:27:07,240 --> 00:27:09,960
Speaker 1: we want to get done, what the kind of products

516
00:27:09,960 --> 00:27:13,000
Speaker 1: are that are important to our consumer and what message

517
00:27:13,040 --> 00:27:15,520
Speaker 1: we're getting out there. So there isn't a lot of

518
00:27:15,680 --> 00:27:19,240
Speaker 1: time spent on, you know, thinking about who else has what.

519
00:27:19,400 --> 00:27:21,520
Speaker 1: It's much more about what our mission is and where

520
00:27:21,520 --> 00:27:23,439
Speaker 1: we're trying to go. And last question for you, I

521
00:27:23,480 --> 00:27:25,200
Speaker 1: was on the website earlier. I saw that you guys

522
00:27:25,240 --> 00:27:29,520
Speaker 1: were making shoes for astronauts. Is that a marketing stunt

523
00:27:29,600 --> 00:27:32,000
Speaker 1: or is that realize it's interesting that NASA can't seem

524
00:27:32,040 --> 00:27:34,880
Speaker 1: like a big market. It's a really well we'll see

525
00:27:34,880 --> 00:27:37,720
Speaker 1: if somebody can expand that. But yeah, the NASA came

526
00:27:37,720 --> 00:27:39,240
Speaker 1: to us and said, hey, we hear you have this

527
00:27:39,359 --> 00:27:42,080
Speaker 1: material which is in our float Ride shoes. We need

528
00:27:42,119 --> 00:27:44,840
Speaker 1: the lightest ever because weight is everything in terms of

529
00:27:44,880 --> 00:27:48,040
Speaker 1: what you're shooting up into space. Lightest ever space boot,

530
00:27:48,119 --> 00:27:50,600
Speaker 1: but we need our folks to be able to do,

531
00:27:51,160 --> 00:27:53,760
Speaker 1: you know, to actually function, and so we created the

532
00:27:53,760 --> 00:27:56,600
Speaker 1: float Ride space boot, which is uh now going to

533
00:27:56,640 --> 00:27:58,800
Speaker 1: go up into orbit. You might you might have heard

534
00:27:58,840 --> 00:28:00,560
Speaker 1: we have a space force on the way, the official

535
00:28:00,760 --> 00:28:07,000
Speaker 1: shoe big contract. I will have to look into that opportunity. Yeah,

536
00:28:07,200 --> 00:28:09,400
Speaker 1: Mattow Tool, president of Reebok, thank you for joining us.

537
00:28:09,440 --> 00:28:12,520
Speaker 1: Thank you very much for having me takeaways from the

538
00:28:12,520 --> 00:28:15,800
Speaker 1: interview with Matado Tool. My takeaway Evan he still likes

539
00:28:15,800 --> 00:28:20,720
Speaker 1: Alan Iverson. A deal for Alan Iverson still good for

540
00:28:20,840 --> 00:28:25,080
Speaker 1: Reebok in the calendar year, two trips for Iverson to

541
00:28:25,200 --> 00:28:28,120
Speaker 1: Asia with Reebok. He even said, it's not a lot

542
00:28:28,119 --> 00:28:30,800
Speaker 1: of market share, but there is a segment of the

543
00:28:30,880 --> 00:28:36,080
Speaker 1: Reebok fan club that likes Alan. I just wasn't sure

544
00:28:36,119 --> 00:28:38,240
Speaker 1: if the tens of million dollars of dollars they're paying

545
00:28:38,920 --> 00:28:40,960
Speaker 1: would be worth it. He says it is. I have

546
00:28:41,000 --> 00:28:44,000
Speaker 1: two takeaways. First of all, A definitively found out that

547
00:28:44,040 --> 00:28:46,920
Speaker 1: I'm not fashionable because I just bought nit knit upper

548
00:28:46,960 --> 00:28:48,800
Speaker 1: shoes and he told me that knit upper shoes are

549
00:28:48,840 --> 00:28:52,280
Speaker 1: no longer um lifting my foot is that kind of yeah? Alright,

550
00:28:52,360 --> 00:28:54,920
Speaker 1: so we're in the same boat here. Not surprised. Second takeaway,

551
00:28:55,160 --> 00:28:58,240
Speaker 1: I knew about Rebox transformation from you know, a traditional

552
00:28:58,280 --> 00:29:00,920
Speaker 1: sports brand of more the fitness stuff. I didn't realize

553
00:29:00,960 --> 00:29:02,760
Speaker 1: how big a deal that was. They had to get

554
00:29:02,840 --> 00:29:04,520
Speaker 1: rid of a third of their inventory. The fact that

555
00:29:04,560 --> 00:29:07,160
Speaker 1: businesses back up is a good testament to what Matter

556
00:29:07,200 --> 00:29:12,040
Speaker 1: Tool is doing. It feels better to be a number

557
00:29:12,040 --> 00:29:14,080
Speaker 1: one than number five. I'll wear a number because of Mike.

558
00:29:14,200 --> 00:29:15,680
Speaker 1: We have a chance to go for three in a row.

559
00:29:15,720 --> 00:29:17,720
Speaker 1: Because numbers are a good time. And let's first started

560
00:29:17,720 --> 00:29:21,080
Speaker 1: wearing the number. I would just have the Floomberg business

561
00:29:21,160 --> 00:29:25,160
Speaker 1: of sports the number of the week and now Scott

562
00:29:25,200 --> 00:29:27,200
Speaker 1: for the number of the week. You have no former

563
00:29:27,280 --> 00:29:33,400
Speaker 1: knowledge of this. Two million dollars. Two million dollars not

564
00:29:33,520 --> 00:29:36,800
Speaker 1: enough for an e sports arena, no idea. That is

565
00:29:36,840 --> 00:29:40,520
Speaker 1: the purse that couldbib Nermagomadov was supposed to keep at home.

566
00:29:40,560 --> 00:29:44,640
Speaker 1: They're holding it back after beating Connor McGregor and the

567
00:29:45,240 --> 00:29:48,560
Speaker 1: could be but nermagomadal thank you. Uh. He is telling

568
00:29:48,680 --> 00:29:51,440
Speaker 1: UFC to keep that money. He doesn't mean that, that's

569
00:29:51,480 --> 00:29:54,680
Speaker 1: my question. Do you do you buy your selling could

570
00:29:54,720 --> 00:29:58,920
Speaker 1: be telling UFC keep the money. That's silly, emotional Twitter

571
00:29:58,960 --> 00:30:01,800
Speaker 1: talk like oh you did something my brother, you didn't

572
00:30:01,840 --> 00:30:03,960
Speaker 1: let him in, you threw him off. We stick together.

573
00:30:04,000 --> 00:30:06,480
Speaker 1: It's about family, honor. Keep the money. I don't care

574
00:30:07,160 --> 00:30:09,080
Speaker 1: his agent, his lawyer, they're on the phone with us

575
00:30:09,240 --> 00:30:11,360
Speaker 1: going where's the check? Michael Barr and I discussed this

576
00:30:11,400 --> 00:30:13,720
Speaker 1: at length on on the Monday Show when you weren't here,

577
00:30:13,800 --> 00:30:15,960
Speaker 1: But is this good for UFC. Do you see this

578
00:30:16,000 --> 00:30:18,800
Speaker 1: as a as a as a benefit moving forward or

579
00:30:18,880 --> 00:30:21,680
Speaker 1: is this brawl too much? The only problem I have

580
00:30:21,840 --> 00:30:26,960
Speaker 1: with it is that at some point the audience becomes

581
00:30:27,000 --> 00:30:30,280
Speaker 1: immune to it, and then you have to say, well,

582
00:30:30,320 --> 00:30:33,080
Speaker 1: how do I top it? If this brawl after the

583
00:30:33,120 --> 00:30:36,640
Speaker 1: fight isn't enough to really pique interest or or raise

584
00:30:36,680 --> 00:30:41,520
Speaker 1: an eyebrow, then what when does silly season end? What

585
00:30:41,560 --> 00:30:44,640
Speaker 1: does it take for to get on Sports Center for

586
00:30:44,680 --> 00:30:47,960
Speaker 1: people to talk about it? Oh? Just another brawl after

587
00:30:48,080 --> 00:30:51,280
Speaker 1: you have then? So what? At some point it's got

588
00:30:51,280 --> 00:30:55,040
Speaker 1: to be about what happens in the octagon between the

589
00:30:55,080 --> 00:30:57,360
Speaker 1: guys and all this noise has to go away, and

590
00:30:57,400 --> 00:31:00,920
Speaker 1: no question what happened in the octagon was overshadowed last weekend.

591
00:31:01,280 --> 00:31:03,080
Speaker 1: You are not kidding, Well, you have been listening to

592
00:31:03,120 --> 00:31:05,720
Speaker 1: Bloomberg Business of Sports. We are here each and every

593
00:31:05,760 --> 00:31:08,360
Speaker 1: week at the same time, plus online as a podcast.

594
00:31:08,560 --> 00:31:11,320
Speaker 1: You can catch that on Monday's, Wednesdays and Thursdays. I

595
00:31:11,320 --> 00:31:14,680
Speaker 1: am Scottsnik and on Twitter at and I'm Evan Novi

596
00:31:14,800 --> 00:31:18,320
Speaker 1: Williams at Novi Underscore. Williams join us again next week

597
00:31:18,320 --> 00:31:21,520
Speaker 1: when we speak with Indiecar champion Scott Dixon. You are

598
00:31:21,520 --> 00:31:24,560
Speaker 1: listening to Bloomberg Business of Sports from Bloomberg Radio around

599
00:31:24,600 --> 00:31:27,400
Speaker 1: the world at online, wherever, podcasts, RVL