WEBVTT - A-Rod Convo, Amazon Shareholder Letter 0:00:02.920 --> 0:00:07.280 Bloomberg Audio Studios, Podcasts, radio News. 0:00:09.960 --> 0:00:13.840 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:00:13.920 --> 0:00:17.000 weekdays at ten am Eastern on Apple Car playing Android 0:00:17.040 --> 0:00:20.120 Auto with the Bloomberg Business App. Listen on demand wherever 0:00:20.200 --> 0:00:24.040 you get your podcasts, or watch us live on YouTube. 0:00:25.040 --> 0:00:28.240 Well, we are joined here in studio by Jason Kelly, 0:00:28.760 --> 0:00:32.120 Chief corresponding for Bloomberg Originals and executive producer of a 0:00:32.280 --> 0:00:36.159 new podcast, It's called The Deal with Alex Rodriguez and 0:00:36.280 --> 0:00:38.640 Jason Kelly. On this week's episode of The Deal, Alex 0:00:38.720 --> 0:00:41.240 Rodriguez and Jason Kelly speak with you as soccer legend 0:00:41.800 --> 0:00:46.440 Brandy Chastain about private equity firm Six Streets Sports investments 0:00:46.479 --> 0:00:48.599 and the bay FC owners. 0:00:48.240 --> 0:00:49.680 Hope for the sports. 0:00:49.680 --> 0:00:52.519 She also talks about if the world is ready for 0:00:52.600 --> 0:00:54.080 women's sports, Let's take a listen. 0:00:54.560 --> 0:00:58.360 I honestly believe that part of the equation that wasn't 0:00:58.400 --> 0:01:02.960 in our control was the mass, general public and the 0:01:03.040 --> 0:01:07.080 business sector not ready for women, not ready for powerful women, 0:01:07.200 --> 0:01:11.240 not ready for women with big voices who have grand ideas. 0:01:11.480 --> 0:01:14.639 We didn't have the deep pockets, and before coming here today, 0:01:14.640 --> 0:01:17.319 I think that's the one thing that kept coming into 0:01:17.319 --> 0:01:20.760 my head was I had zero dollars that I could 0:01:20.800 --> 0:01:23.360 be an owner with all right, very. 0:01:23.240 --> 0:01:26.880 Good stuff, Jessica che Chestain with our own Jason Kelly. Jason, 0:01:26.880 --> 0:01:28.480 thanks for cover much for coming into the studio. Big 0:01:28.520 --> 0:01:30.200 commute from your desk. You got a guest with you. 0:01:30.440 --> 0:01:32.280 I know, I brought a buddy. I thought it was 0:01:32.280 --> 0:01:34.720 bringing I thought it was bringing your former all star 0:01:35.000 --> 0:01:37.520 friend to workday. Oh is it? 0:01:37.640 --> 0:01:37.880 Oh? 0:01:37.959 --> 0:01:41.080 Yeah, sorry, I've remembered. I mean I'm a good sit Yeah. 0:01:41.080 --> 0:01:43.959 Hey Rod, my co host right here with me. Awesome, 0:01:43.959 --> 0:01:46.080 Thanks for coming in, Alex, appreciate it. Great to be here. 0:01:46.080 --> 0:01:46.600 Thank you guys. 0:01:46.640 --> 0:01:49.840 You guys, I've had so many cool podcasts and episodes 0:01:49.880 --> 0:01:52.480 here speaking to some really cool people. Jessica Chestain, I 0:01:52.520 --> 0:01:55.280 think for Brandy chester Brand, Brandy Chestain different chestin. 0:01:55.400 --> 0:01:56.960 Yeah, just amazing. 0:01:57.040 --> 0:01:59.480 Yeah, kind of when you think about nineteen ninety nine, 0:01:59.520 --> 0:02:02.360 the world ripping the jersey off and everything, just that 0:02:02.360 --> 0:02:04.920 that's such a big image and you kind of thought 0:02:05.000 --> 0:02:08.400 she maybe that would be the launch of right women's soccer, 0:02:08.440 --> 0:02:10.880 at least maybe women's sport. We haven't, I'm not sure 0:02:10.880 --> 0:02:12.480 we've seen it. What'd you guys talk. 0:02:12.320 --> 0:02:14.560 About I mean, I thought it was so fascinating Alex 0:02:14.600 --> 0:02:17.320 because you know, she's an icon, right. I mean when 0:02:17.360 --> 0:02:22.440 you think about like the people who have defined sports 0:02:22.800 --> 0:02:26.880 in our lifetimes, especially in women's sports, like nobody bigger 0:02:26.919 --> 0:02:31.040 than Brandy Chastain. And the amazing thing was that this 0:02:32.480 --> 0:02:34.120 moment in nineteen ninet nine, it was gonna be like 0:02:34.160 --> 0:02:36.840 the takeoff for women's sports, and it's like womp wamp, 0:02:36.960 --> 0:02:39.480 like it just didn't happen. It actually failed twice, and 0:02:39.520 --> 0:02:42.239 now she's an owner of a team. I was fascinated 0:02:42.240 --> 0:02:45.200 by just kind of her perspective on all that. I 0:02:45.240 --> 0:02:45.880 don't know if you were. 0:02:46.000 --> 0:02:47.359 I thought it was great. And if you see what's 0:02:47.400 --> 0:02:49.680 happened with Caitlyn Clark, now, we thought that was gonna 0:02:49.680 --> 0:02:52.160 happen ninety nine and it kind of stalled, as Jason said, 0:02:52.160 --> 0:02:55.200 But for me was how she's kind of going through 0:02:55.200 --> 0:02:57.840 her journey from sports to business as a sports owner 0:02:58.440 --> 0:03:01.680 and all the lessons that she's learned sports, the hard times, 0:03:01.680 --> 0:03:04.480 the good times. She shared some incredible stories. But I'm 0:03:04.560 --> 0:03:07.880 really interested how her next decade goes because she's all in. 0:03:08.040 --> 0:03:10.040 Can I ask it? Okay, first of all, we should know, 0:03:10.440 --> 0:03:12.280 I know very little about sports. So I'm going to 0:03:12.320 --> 0:03:16.760 ask this question. I have a question about energy power prisons. 0:03:16.800 --> 0:03:19.000 You can come to me, But why is it so 0:03:19.200 --> 0:03:22.040 hard for women's sports to take to take off in 0:03:22.040 --> 0:03:23.960 a material of way? Is it like the type of 0:03:23.960 --> 0:03:26.440 sports we play? What's the problem, Alex? What do you think? 0:03:26.760 --> 0:03:26.959 Well? 0:03:27.000 --> 0:03:31.400 I think Kaylen Clark has captured the imagination of everyone. 0:03:31.520 --> 0:03:35.040 And I'm old enough to remember when the NBA was on. 0:03:35.520 --> 0:03:38.880 You watch the finals on tape delay, right, it was incredible, 0:03:38.960 --> 0:03:41.040 right to think about that and the amount of tens 0:03:41.040 --> 0:03:44.440 of millions of people that watch today. What Kayln Clark 0:03:44.440 --> 0:03:46.440 has done is very much what I think Magic Johnson 0:03:46.440 --> 0:03:49.080 and Larry Bird did in nineteen seventy nine, when you 0:03:49.080 --> 0:03:51.520 know Bird was at Indiana State, Magic was at Michigan State, 0:03:51.880 --> 0:03:54.960 and it was like these two Midwestern guys that captured America. 0:03:55.040 --> 0:03:58.240 I think that is now here is true the moments right. 0:03:58.280 --> 0:04:01.280 I think post COVID de Lance, the world has changed, 0:04:01.520 --> 0:04:03.640 and I think it's been a perfect storm and she's 0:04:03.640 --> 0:04:06.360 been the perfect ambassador. To have almost twenty million people 0:04:06.400 --> 0:04:07.520 watching this is incredible. 0:04:07.560 --> 0:04:10.520 And by the way, more people watched the Women's final 0:04:10.600 --> 0:04:12.960 this year than the men's final first time in history, 0:04:13.200 --> 0:04:15.440 and that actually, I think is one of the biggest 0:04:15.680 --> 0:04:19.240 points of this is that there was long this assumption 0:04:19.360 --> 0:04:21.480 of like, people are gonna watch women's sports on TV, 0:04:21.880 --> 0:04:25.240 and so they just didn't put it on. I mean, shockingly, 0:04:25.839 --> 0:04:28.440 a bunch of men made a decision that people wouldn't 0:04:28.480 --> 0:04:31.719 watch women on TV. And then what happened was they 0:04:31.800 --> 0:04:34.440 saw and you've seen this in your investment work, Alex, 0:04:35.480 --> 0:04:37.880 what they saw was when they did put it on 0:04:37.920 --> 0:04:41.440 the air, people watched and then it just kept building. 0:04:41.560 --> 0:04:44.000 And I think the other really interesting thing that we 0:04:44.080 --> 0:04:49.080 learned from Brandy was this idea that the investment wasn't 0:04:49.120 --> 0:04:52.440 there initially. I mean, those two leagues failed because the 0:04:52.480 --> 0:04:55.320 two previous soccer leagues for women in the US failed 0:04:55.360 --> 0:04:57.920 because they tried it for like a year or two 0:04:57.960 --> 0:05:01.680 and they're like, oh, that didn't work. Instead of you know, 0:05:01.720 --> 0:05:03.880 you think about the NBA, you think about the NFL, 0:05:04.240 --> 0:05:07.440 those were leagues that took decades to take hold. The 0:05:07.600 --> 0:05:11.720 MLS is in its like twenty fifth thirtieth season and 0:05:11.880 --> 0:05:14.720 is just getting traction. So part of it is just 0:05:14.720 --> 0:05:16.240 like putting in the time in the month. I think, 0:05:16.320 --> 0:05:18.039 you know, it's a former Wall Street guy, What makes 0:05:18.080 --> 0:05:20.799 me about this transaction? You got private equity, yes, coming 0:05:21.560 --> 0:05:24.200 private acquas not in Major League Baseball are there? 0:05:24.320 --> 0:05:24.480 Yea? 0:05:25.160 --> 0:05:27.039 Now they are getting there. I mean this is a 0:05:27.040 --> 0:05:28.840 big thing that you're seeing up close and personal. 0:05:28.920 --> 0:05:32.200 Yeah, I mean sports have these franchises have gotten so expensive. 0:05:32.240 --> 0:05:34.800 To think a guy like Jerry Reinsdorf bought in nineteen 0:05:34.800 --> 0:05:38.120 eighty one the White Sox for about sixteen million dollars, 0:05:38.120 --> 0:05:39.880 and three years later, in eighty four, he buys the 0:05:39.920 --> 0:05:42.479 Bulls with a guy with the name of Michael Jordan 0:05:42.560 --> 0:05:46.320 already there for nineteen million dollars. It's incredible, right, and 0:05:46.360 --> 0:05:48.719 those franches are worth close to ten collectively today. 0:05:48.920 --> 0:05:50.000 So the world has exploded. 0:05:50.040 --> 0:05:53.160 So what's happened is individuals can't really afford to write 0:05:53.279 --> 0:05:55.640 checks for a billion two million dollars. It's hard to 0:05:55.680 --> 0:05:57.919 have the type of liquidity. So what that leagues have 0:05:57.960 --> 0:06:00.320 done is they've opened up the capital markets and private 0:06:00.320 --> 0:06:03.160 eco groups like Arctos and Dial are now big investors. 0:06:03.160 --> 0:06:06.440 And they said as LPs while passive LPs it's been 0:06:06.960 --> 0:06:08.880 an industry for the last thirty years, has gone up 0:06:08.920 --> 0:06:11.760 into the right about fifteen percent a year a year 0:06:11.760 --> 0:06:12.159 over year. 0:06:12.320 --> 0:06:14.760 And this is why Jason you were here because you've 0:06:14.760 --> 0:06:17.120 covered private equity for a very long time. You literally 0:06:17.160 --> 0:06:19.080 wrote books on it, and then you kind of saw 0:06:19.120 --> 0:06:21.960 a while ago like where the direction of travel was 0:06:22.000 --> 0:06:24.640 really going, Yeah, what's the kind of the return? Like 0:06:25.120 --> 0:06:27.400 what's the return like on these things? Like like what 0:06:27.440 --> 0:06:27.840 do you think? 0:06:27.960 --> 0:06:33.880 I mean TBD A little long pause. Well, because we 0:06:34.000 --> 0:06:37.200 haven't really you know, we've seen a couple exits. I mean, 0:06:37.600 --> 0:06:40.800 so Dial made some money on the Phoenix Suns when 0:06:40.800 --> 0:06:42.520 they were sold for four billion dollars a couple of 0:06:42.560 --> 0:06:44.840 years ago, So that's been one exit. I mean what's 0:06:44.880 --> 0:06:48.000 interesting is so Sixth Street. Just speaking specifically about Sixth Street, 0:06:48.080 --> 0:06:51.080 and you know this is started by Alan Waxman, former 0:06:51.080 --> 0:06:54.120 special situation said for Goldman Sachs was in a partnership 0:06:54.120 --> 0:06:57.000 with TPG. You know, so they've invested one hundred and 0:06:57.040 --> 0:06:59.160 twenty five million. They led an investment for one hundred 0:06:59.200 --> 0:07:02.320 and twenty five million dollars into BAFC. I mean that's 0:07:02.400 --> 0:07:06.479 real money, paid a record franchise fee fifty three million 0:07:06.480 --> 0:07:09.040 dollars just to buy the team. I mean they're looking 0:07:09.200 --> 0:07:11.960 at a scenario where they can get a five x 0:07:12.040 --> 0:07:15.320 ten X. I mean, this is a long hold. So 0:07:16.160 --> 0:07:18.800 the franchise values, as Alex just demonstrated, I mean, think 0:07:18.800 --> 0:07:21.800 about I mean, Jerry Jones bought the Dallas Cowboys for 0:07:21.880 --> 0:07:24.160 less than two hundred million dollars in the late eighties 0:07:24.160 --> 0:07:27.800 early nineties, which, by the way, they said he was insane. 0:07:28.080 --> 0:07:30.440 That was a crazy amount. This is a franchise now 0:07:30.480 --> 0:07:33.840 worth nine or ten billion dollars. Alex, let's talk about ownership. 0:07:33.880 --> 0:07:37.040 You're part of an ownership group for the Minnesota Timberwolves, right, 0:07:37.200 --> 0:07:39.880 talk to us about that experience, and I love you 0:07:40.000 --> 0:07:42.960 to talk to you about My personal opinion is I'm 0:07:43.000 --> 0:07:46.240 concerned about the evaluation of franchises. I'm concerned about salaries 0:07:46.280 --> 0:07:49.440 because it's all predicated in large part. 0:07:49.720 --> 0:07:50.840 On broadcast rights. 0:07:51.040 --> 0:07:53.920 Yeah, and with cord cutting, I'm not sure ESPN's going 0:07:53.960 --> 0:07:56.240 to continue to write these crazy checks. So talk to 0:07:56.320 --> 0:07:58.680 us about kind of what you've learned about as being 0:07:58.680 --> 0:07:59.240 an owner there. 0:07:59.320 --> 0:08:01.560 It's funny because one of my good friends and mentors 0:08:01.600 --> 0:08:03.760 of Magic Johnson, and of course he played basketball for 0:08:03.760 --> 0:08:06.560 a long time and he owns a baseball team, and 0:08:06.640 --> 0:08:08.600 I played baseball for a long time, and I'm part 0:08:08.640 --> 0:08:10.880 of the ownership group of the Minnesota Timberwolves and the Lynks. 0:08:11.720 --> 0:08:14.160 You know what I think is there's no question that 0:08:14.200 --> 0:08:17.600 the giant in sports in America's NFL. Right, And to 0:08:17.640 --> 0:08:20.760 think that, you know, almost twenty million people watch Kayln Clark. 0:08:21.840 --> 0:08:23.920 Those are NFL numbers on Sundays. I mean that is 0:08:24.280 --> 0:08:27.000 that's the number one driver for all sports and which 0:08:27.040 --> 0:08:29.560 creates a lot of people to be very bullish in 0:08:29.720 --> 0:08:32.400 women's sports. But going back to well we have the 0:08:32.440 --> 0:08:34.720 links as well. But I do think that the NFL 0:08:34.800 --> 0:08:37.199 and the NBA are global sports, especially the NBA. 0:08:37.720 --> 0:08:39.240 It's growing year over year. 0:08:40.559 --> 0:08:42.520 If you look at social media as an example. As 0:08:42.520 --> 0:08:45.040 a metrics, we're almost ten to one to the NFL. 0:08:45.080 --> 0:08:49.080 We're almost fifteen to one to Major League Baseball. So Lebron, James, 0:08:49.160 --> 0:08:52.920 Michael Jordan, Steph Curry, these are global names. I think 0:08:53.280 --> 0:08:55.920 that is going to be a different landscape. But you'll 0:08:55.920 --> 0:08:59.960 have more contributors. Maybe you have NBC pop in Amazon. 0:08:59.520 --> 0:09:01.120 Apples, a lot of shooters. 0:09:01.559 --> 0:09:03.319 Is not going to be the traditional So ESPN may 0:09:03.320 --> 0:09:05.559 not write as big as check, but is there. I'm 0:09:05.600 --> 0:09:07.520 not speaking for the NBA. I'm just giving you my 0:09:07.600 --> 0:09:09.880 opinion that you may have a world where NBC may 0:09:09.880 --> 0:09:13.720 split the finals with ESPN and ABC, So I think 0:09:13.960 --> 0:09:16.680 you'll get to a similar result, just a different way. 0:09:17.000 --> 0:09:19.360 So you said those words, and I knew those people, 0:09:19.440 --> 0:09:22.120 so I feel like I'm not qualified ask this question. 0:09:22.280 --> 0:09:25.600 But then for someone like me who's a newbie who 0:09:25.600 --> 0:09:27.920 maybe wants to watch some stuff like I'm I don't know, 0:09:27.960 --> 0:09:30.240 I would I need like a spreadsheet to like find 0:09:30.280 --> 0:09:33.000 out like what's playing where or when what time, like 0:09:33.120 --> 0:09:35.840 Amazon Prime, Netflix, something like that. And I wonder if 0:09:35.840 --> 0:09:38.480 that's going to be a hurdle. Jason, what do you think. 0:09:38.440 --> 0:09:40.240 To like, I mean, it could be. I mean, and 0:09:40.760 --> 0:09:45.800 Paul knows this space better than anyone. You know, there's 0:09:45.840 --> 0:09:50.440 been sort of a fracturing, but now sort of a reconsolidation. 0:09:50.600 --> 0:09:52.880 It feels like of how we're going to consume sports. 0:09:52.880 --> 0:09:55.760 I mean, you've followed this for years. You know that 0:09:56.960 --> 0:10:00.480 live sports. Alex knows it from being on tele Division 0:10:00.559 --> 0:10:04.640 and being broadcast himself. People love live sports and that 0:10:04.720 --> 0:10:07.040 it's one of the only things that actually keeps people 0:10:07.040 --> 0:10:10.400 coming back to live content. I do think, though, we 0:10:10.480 --> 0:10:13.240 are in this weird world where sometimes you don't know 0:10:13.600 --> 0:10:16.480 where to find it, and yet when you do, it 0:10:16.760 --> 0:10:20.160 attracts the eyeballs. My New York Yankees off to a 0:10:20.200 --> 0:10:21.079 great start this year. 0:10:21.160 --> 0:10:23.480 Yes, what's your scouting You could say an hour New 0:10:23.559 --> 0:10:27.320 York games in this room. Also a great start this year, 0:10:27.360 --> 0:10:29.000 and now what's your scouting report of them? 0:10:29.120 --> 0:10:31.920 Well, I think the Yankees have done a bunch of 0:10:31.960 --> 0:10:32.720 good things this year. 0:10:33.200 --> 0:10:33.760 Excuse me. 0:10:33.800 --> 0:10:36.800 One of them is they've introduced baseball people back. If 0:10:36.800 --> 0:10:38.840 you think about the powerhouse of the Yankees, they've been 0:10:39.679 --> 0:10:42.520 built by great baseball people like Geene Michael's Stick Michael 0:10:42.520 --> 0:10:46.000 as they call them, you know, Lupenela, Billy Martin. They've 0:10:46.000 --> 0:10:47.840 gone away from that the last four or five years, 0:10:47.840 --> 0:10:51.040 and they've suffered tremendously. The fact they brought baseball people 0:10:51.080 --> 0:10:53.720 back in. They brought a much more balanced lineup, meaning 0:10:53.760 --> 0:10:57.600 Alex there's more lefties than righty's. Historically, Yankee Stadium is 0:10:57.600 --> 0:11:00.920 better for lefties. Last year they have like nine righties 0:11:00.920 --> 0:11:03.079 in the lineup, which just way too much. They've gone 0:11:03.120 --> 0:11:05.120 back to a much balanced lineup and now they have 0:11:05.160 --> 0:11:07.280 the best one two punch in the sport with Aaron 0:11:07.360 --> 0:11:11.200 Judge and Juan Soto. The challenge is do they have 0:11:11.320 --> 0:11:14.720 enough pitching is one and two? They have they cornered 0:11:14.760 --> 0:11:17.800 themselves by bringing in Juan Soto and not have a 0:11:17.800 --> 0:11:20.720 long term contract. Where now? Is he gonna want the 0:11:20.920 --> 0:11:23.280 tiny contract for seven hundred million dollars? And is he 0:11:23.440 --> 0:11:24.880 just a one year wonder here in New York? I 0:11:24.920 --> 0:11:26.160 think he's gonna have a massive year. 0:11:26.320 --> 0:11:26.520 Yep. 0:11:26.559 --> 0:11:28.880 The question is can they keep them? Second question is 0:11:28.880 --> 0:11:30.160 do they have enough pitching to win the title? 0:11:30.160 --> 0:11:32.160 Well, let me ask you that question. We like to 0:11:32.200 --> 0:11:34.880 think New York fans that New York is a selling 0:11:34.920 --> 0:11:36.760 point everybody would love to be. If you can be 0:11:36.800 --> 0:11:38.360 a star here, you can be a star anywhere. There's 0:11:38.360 --> 0:11:40.240 nothing better to be a star than New York City. 0:11:40.920 --> 0:11:43.200 A lot of players, it's that I think they find 0:11:43.240 --> 0:11:44.760 it hard to play in New York. 0:11:44.800 --> 0:11:47.240 What was your experience coming to New York. I know 0:11:47.240 --> 0:11:49.839 you're a New Yorker, so you you kind of know this, 0:11:49.960 --> 0:11:52.600 But some of the people you saw during your career. 0:11:52.360 --> 0:11:55.200 No, Paul, You're exactly right. I mean some people, you know, 0:11:55.200 --> 0:11:57.240 the kitchens maybe a little bit too hot for some players, 0:11:57.480 --> 0:12:00.240 and you know right away if they're uncomfortable, it's a 0:12:00.240 --> 0:12:02.160 different place. He's the biggest media market in the world. 0:12:02.440 --> 0:12:04.600 As they say, the pinstripes are very very heavy and 0:12:04.640 --> 0:12:07.400 not everyone can carry them. Juan SODA's obviously one that 0:12:07.520 --> 0:12:09.439 is going to play and play really well. Aaron Judge. 0:12:09.440 --> 0:12:10.160 The Jetters of the. 0:12:10.080 --> 0:12:12.640 World, they're icons for life because they won here in 0:12:12.679 --> 0:12:15.280 New York. But some, I mean they melt into the sun. 0:12:15.320 --> 0:12:16.920 I mean, you've seen a couple over the last four 0:12:17.000 --> 0:12:19.960 or five years that were a shell of themselves and 0:12:20.040 --> 0:12:21.840 you quickly have to pivot and get them out of here. 0:12:21.880 --> 0:12:22.080 Yep. 0:12:22.160 --> 0:12:24.240 One interesting thing on that note. First of all, we 0:12:24.280 --> 0:12:26.760 talked about Michael talked to Michael Strahan about that on 0:12:26.800 --> 0:12:29.480 the previous episode of The Deal. One person we are 0:12:29.600 --> 0:12:31.199 literally going to tape with today, it's one of the 0:12:31.240 --> 0:12:33.360 reasons Alex is in the building is stephen A. Smith, 0:12:33.640 --> 0:12:37.880 and he's actually talked about Soto and like the power 0:12:37.920 --> 0:12:42.160 of the pin stripes maybe enough to lure him in 0:12:43.160 --> 0:12:45.480 to stay. So yeah, tune into that episode of The 0:12:45.520 --> 0:12:47.480 Deal coming up in a few weeks because stephen A 0:12:47.760 --> 0:12:51.280 he's got literally some takes. It's a sole job, that's 0:12:51.320 --> 0:12:52.880 what he does, and what a career. 0:12:53.160 --> 0:12:55.840 So this is this is really cool, Like what you guys, 0:12:55.880 --> 0:12:58.280 do is super fun. Jason comes in and he talks 0:12:58.280 --> 0:12:59.920 about it and you can tell he's like totally digg 0:13:00.200 --> 0:13:03.240 is what's it like to work with Jason Kelly? How 0:13:03.280 --> 0:13:04.920 do you manage that guy? Like? 0:13:04.960 --> 0:13:07.000 What, Alex? 0:13:07.000 --> 0:13:09.280 We already made a deal this morning because we are 0:13:09.480 --> 0:13:11.400 you know, he's covered private equity. He's a great writer, 0:13:11.559 --> 0:13:13.600 so I say, he writes, and I used the bat 0:13:13.679 --> 0:13:14.760 so I hit he writes, and. 0:13:14.679 --> 0:13:15.440 We made a good team. 0:13:15.840 --> 0:13:19.319 But no, Alex, in all seriousness, is really the intersection 0:13:19.559 --> 0:13:22.199 of Jason's career, mostly here at Bloomberg, in my career 0:13:22.200 --> 0:13:24.719 mostly with the Yankees. And the fact is what we're 0:13:24.720 --> 0:13:27.520 talking about is exactly both. And we live in a 0:13:27.520 --> 0:13:30.959 world where it used to be sports and media and culture. 0:13:31.120 --> 0:13:33.120 Now all three have come together, and that's what we 0:13:33.200 --> 0:13:35.160 try to take away. And then also a lot of 0:13:35.240 --> 0:13:37.920 lessons learned in this world of Shark Tank where young 0:13:37.960 --> 0:13:40.720 people want to be more entrepreneurs than athletes, right, And 0:13:40.800 --> 0:13:43.480 that's I think we're serving up and teaching and hoping 0:13:43.520 --> 0:13:46.240 and inspiring through storytelling. 0:13:46.080 --> 0:13:47.960 A lot of greats and I like you guys do 0:13:48.080 --> 0:13:51.720 kind of bringing sports, entertainment, you know, all that together 0:13:52.080 --> 0:13:54.800 and we're seeing it actually now in college sports with 0:13:54.880 --> 0:13:58.200 it the nil the transfer portals, a lot of these 0:13:58.400 --> 0:14:00.800 kids are able to monetize their value totally. 0:14:01.280 --> 0:14:03.320 But there's some downside to that. It seems like if 0:14:03.360 --> 0:14:05.480 you talk to you know, coach j. 0:14:05.559 --> 0:14:07.280 Right at Villanova or maybe even coach k I'm going 0:14:07.320 --> 0:14:10.160 to see today down at Duke or some others, they're saying, boy, 0:14:10.200 --> 0:14:12.040 I'm not sure, maybe we've gone too far. What do 0:14:12.080 --> 0:14:14.400 you think, Alex about what's happening in the college ranks 0:14:14.640 --> 0:14:15.880 about paying some of these athletes. 0:14:15.880 --> 0:14:16.920 It's a very dangerous road. 0:14:17.000 --> 0:14:19.120 It's a very dangerous and very slippery and the reason 0:14:19.120 --> 0:14:21.440 why I love that players are getting you know, the 0:14:21.520 --> 0:14:23.920 finances and all of that. But maybe there's a structure 0:14:23.920 --> 0:14:26.800 where there's more parity. Maybe there's a structure where kids 0:14:26.800 --> 0:14:28.400 don't get the money when they're not ready for it 0:14:28.600 --> 0:14:30.400 and they get in trouble by not knowing how to 0:14:30.440 --> 0:14:32.680 pay taxes, And is this more of a liability than 0:14:32.680 --> 0:14:36.200 an asset. I'm all for somebody getting market value, but 0:14:36.280 --> 0:14:38.560 is there a world that we can, you know, hold 0:14:38.760 --> 0:14:40.960 unto their thirty or thirty five until they get the 0:14:40.960 --> 0:14:43.320 majority of that where that money is compounding for them, 0:14:43.680 --> 0:14:46.040 so gift from the curse. And the other part is 0:14:46.040 --> 0:14:48.640 that I'm concerned is we want to teach Coach k 0:14:48.720 --> 0:14:50.400 is one of my great friends and one of the 0:14:50.440 --> 0:14:53.640 great great personalities in all of sports. You want athletes 0:14:53.680 --> 0:14:55.400 to be around coach k for three or four years, 0:14:55.440 --> 0:14:57.640 not just one great point. So and same thing with 0:14:57.680 --> 0:14:59.040 Kyle Party and all of that. So we want to 0:14:59.040 --> 0:15:01.640 teach these kids that you know the power of restriction 0:15:02.160 --> 0:15:04.200 and to be able to wait a little bit before 0:15:04.240 --> 0:15:06.000 they get you know, the marshmallow, as they. 0:15:05.840 --> 0:15:08.480 Say, before you let you go. And this is a 0:15:08.560 --> 0:15:10.800 question we ask everybody, So, hey, why not you What 0:15:10.880 --> 0:15:11.440 are you gonna buy? 0:15:11.480 --> 0:15:11.640 Now? 0:15:12.680 --> 0:15:14.200 What do you like? 0:15:14.560 --> 0:15:16.840 This is a question. We have support folio matter what, 0:15:17.920 --> 0:15:19.160 You've got a lot of investments. 0:15:19.200 --> 0:15:20.000 Yeah, so what do you like? 0:15:20.200 --> 0:15:21.400 You know that is a great question. 0:15:21.440 --> 0:15:23.520 I mean, I'm so excited about the Minnesota Timbles and 0:15:23.520 --> 0:15:25.720 the Lynx and we've done a lot of good work 0:15:25.720 --> 0:15:28.560 over the last three years. We've been in first place 0:15:28.600 --> 0:15:31.280 for most of the year, only two games remaining, so 0:15:31.320 --> 0:15:33.840 we're sound to make a poison to make a good run, 0:15:33.840 --> 0:15:36.480 hopefully in the postseason. But look, I think you wake 0:15:36.560 --> 0:15:40.040 up every day you're prepared, you're ready for opportunities. That's 0:15:40.040 --> 0:15:42.120 exactly how the opportunity of the timbulves came up and 0:15:42.160 --> 0:15:44.520 the links. So the answer is, I don't know, but 0:15:44.520 --> 0:15:45.280 we're always looking. 0:15:46.040 --> 0:15:47.520 What are you guys going to ask steven A. I 0:15:47.520 --> 0:15:51.560 can't imagine this thing could get heated quickly, you know. 0:15:51.640 --> 0:15:54.520 I mean what I'm really interested in with him is 0:15:54.640 --> 0:15:57.040 the business of stephen A. You know, I mean, because 0:15:57.120 --> 0:15:59.480 he he's a game changer in so many ways. You know, 0:15:59.520 --> 0:16:02.320 we both had chance to read his book ahead of this. 0:16:02.400 --> 0:16:06.080 I mean, this is a guy who completely reshaped the 0:16:06.120 --> 0:16:09.680 business of sports media. My sheer force of will got 0:16:09.720 --> 0:16:12.520 knocked down a bunch. He had a great mentor in 0:16:12.560 --> 0:16:16.120 Mark Shapiro, another upcoming guest on the deal. I'm just 0:16:16.160 --> 0:16:18.560 telling all of our guests here, that's what I did. 0:16:19.320 --> 0:16:23.040 Shameless plug, shamelessly, that's my middle name. But you know, 0:16:23.200 --> 0:16:26.440 for stephen A, I think we don't know where it's 0:16:26.480 --> 0:16:28.280 going to go. We know he doesn't like the Dallas Cowboys, 0:16:28.440 --> 0:16:30.240 he doesn't, and he does love the Yankees. 0:16:30.280 --> 0:16:31.920 And I just say, in conclusion, with Steven A is 0:16:31.960 --> 0:16:34.680 really a story of rags to riches, But it hasn't 0:16:34.680 --> 0:16:36.320 been straight up into the right. I mean to think 0:16:36.360 --> 0:16:39.840 most people forgot this reading his book. I just remembered 0:16:40.000 --> 0:16:41.800 he got fired from ESPN, he had to go to 0:16:41.840 --> 0:16:44.320 Fox Radio, and then he's come back. And to think, 0:16:44.360 --> 0:16:46.280 not only is he going to be the first guy 0:16:46.320 --> 0:16:48.720 that makes person that makes over probably twenty to twenty 0:16:48.760 --> 0:16:52.040 five million, but he's also could be the next Johnny Carson. Yeah, 0:16:52.120 --> 0:16:54.960 and he's built an incredible business and I can't wait 0:16:54.960 --> 0:16:55.440 to ask. 0:16:55.240 --> 0:16:58.800 Them Michael Strahan talk about another mazing career coming in entertainment. 0:16:58.800 --> 0:16:59.960 All right, guys, thanks very much. 0:17:00.720 --> 0:17:04.120 Podcast It's called The Deal with Alex Rodriguez and Jason Kelly. 0:17:04.119 --> 0:17:06.359 On this week's episode of The Deal, Alex Rodriguez and 0:17:06.400 --> 0:17:09.800 Jason Kelly speak with US soccer legend Brandy Schestain about 0:17:09.800 --> 0:17:13.240 private equity firm Sixth Street Sports Investment and the Bay 0:17:13.480 --> 0:17:15.760 FC owners hope for the sports. She also talks about 0:17:15.920 --> 0:17:17.240 if the world is ready. 0:17:16.960 --> 0:17:19.680 For women's sports. So take a listen to that good stuff. 0:17:21.840 --> 0:17:25.720 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:17:25.800 --> 0:17:29.320 weekdays at ten am Eastern on applecard Play and Android 0:17:29.359 --> 0:17:32.119 otto With the Bloomberg Business app. You can also listen 0:17:32.240 --> 0:17:35.320 live on Amazon Alexa from our flagship New York station, 0:17:35.720 --> 0:17:40.280 Just say Alexa play Bloomberg eleven thirty Caroly Paul. 0:17:40.320 --> 0:17:41.800 Amazon had a let her out today. 0:17:41.960 --> 0:17:42.920 Yeah, this is something to do. 0:17:43.160 --> 0:17:43.880 Is that a thing we do? 0:17:44.000 --> 0:17:44.119 No? 0:17:44.359 --> 0:17:46.440 Well, I think we start doing it now with mister Jesse. 0:17:46.680 --> 0:17:49.760