1 00:00:02,600 --> 00:00:05,120 Speaker 1: Hello, I'm Michael Bhan and I'm Scott Sasnik. On this 2 00:00:05,160 --> 00:00:07,680 Speaker 1: week's podcast will explore the big money issues in the 3 00:00:07,680 --> 00:00:09,480 Speaker 1: world of sports and talk to some of the biggest 4 00:00:09,520 --> 00:00:11,960 Speaker 1: players in the industry. On this week's show, we are 5 00:00:12,000 --> 00:00:14,400 Speaker 1: talking with the president and one of the most successful 6 00:00:14,480 --> 00:00:18,720 Speaker 1: sports franchises in the world, the New England Patriots, Jonathan Kraft. 7 00:00:18,920 --> 00:00:20,919 Speaker 1: But first, let's look at the top stories of the week, 8 00:00:20,960 --> 00:00:24,160 Speaker 1: and joining us is Bloomberg Business of Sports reporter Evan 9 00:00:24,400 --> 00:00:28,240 Speaker 1: Noby Williams. Let's start. How about them Cowboys. Oh my, 10 00:00:28,520 --> 00:00:32,640 Speaker 1: They're the most valuable team in the world at four 11 00:00:32,760 --> 00:00:36,240 Speaker 1: point eight billion dollars. Here's the thing that comes away 12 00:00:36,280 --> 00:00:38,400 Speaker 1: from this for me. Four years ago there was only 13 00:00:38,440 --> 00:00:41,519 Speaker 1: one team in the world worth more than two billion dollars, 14 00:00:41,880 --> 00:00:45,080 Speaker 1: and this year of the NFL's thirty two teams have 15 00:00:45,200 --> 00:00:48,360 Speaker 1: hit that mark. The amount that these franchises are skyrocketing 16 00:00:48,440 --> 00:00:51,040 Speaker 1: is staggering. What I take away from this, Michael, is 17 00:00:51,080 --> 00:00:54,520 Speaker 1: the difference between one and two. There's such a wide gap. 18 00:00:54,640 --> 00:00:57,120 Speaker 1: Normally their clothes, you know, somebody's on top by what 19 00:00:57,480 --> 00:01:00,560 Speaker 1: fifty million, a hundred million? Okay, this is an even close. 20 00:01:00,720 --> 00:01:04,920 Speaker 1: The Cowboys have generated a cash register, not only in 21 00:01:04,959 --> 00:01:08,199 Speaker 1: their stadium and their franchise, in their merchandise. They also 22 00:01:08,240 --> 00:01:11,360 Speaker 1: built the Star that other complex in Frisco. They have 23 00:01:11,440 --> 00:01:16,080 Speaker 1: high school games there. It's unbelievable what Jerry Jones has 24 00:01:16,120 --> 00:01:19,679 Speaker 1: created with that brand. I guess according to Forbes magazine, 25 00:01:20,200 --> 00:01:25,120 Speaker 1: why is it that Dallas has this megafranchise. You mentioned 26 00:01:25,160 --> 00:01:27,680 Speaker 1: some of the answers, but I mean it's got to 27 00:01:27,680 --> 00:01:30,840 Speaker 1: be more than that. The difference between football teams. Everybody 28 00:01:30,840 --> 00:01:34,520 Speaker 1: shares the national revenue. That that's that. The difference is 29 00:01:34,720 --> 00:01:38,360 Speaker 1: one international and to what do you do locally? And 30 00:01:38,400 --> 00:01:40,680 Speaker 1: remember Jerry suit the NFL years ago to keep more 31 00:01:40,720 --> 00:01:43,280 Speaker 1: of his local money. So if you can generate more 32 00:01:43,319 --> 00:01:48,120 Speaker 1: money locally which is not shared with the others, you 33 00:01:48,160 --> 00:01:50,639 Speaker 1: are going to be more valuable. Yeah. And the brand 34 00:01:50,680 --> 00:01:54,080 Speaker 1: of the Cowboys that Star their America's team, that is 35 00:01:54,120 --> 00:01:56,560 Speaker 1: so valuable. The fact that they can sell jerseys everywhere 36 00:01:56,560 --> 00:01:58,600 Speaker 1: in the country, that's something that not every team can do. 37 00:01:58,960 --> 00:02:03,160 Speaker 1: Remember he built this huge scoreboard so everybody can see 38 00:02:03,320 --> 00:02:06,520 Speaker 1: the Cowboys in the stadium. It was so huge. In fact, 39 00:02:06,640 --> 00:02:09,480 Speaker 1: one of one kicker I forgot who it was, kick 40 00:02:09,639 --> 00:02:13,240 Speaker 1: the ball to hit the scoreboard to say, see, that's 41 00:02:13,240 --> 00:02:17,200 Speaker 1: too low, And Jerry Jones said, not forget that. People 42 00:02:17,200 --> 00:02:19,720 Speaker 1: go to the stadium just to take tours. They charged 43 00:02:19,960 --> 00:02:22,960 Speaker 1: a good nickel just to go around and see the stadium. 44 00:02:22,960 --> 00:02:25,720 Speaker 1: People will go and watch Super Bowls outside on a 45 00:02:25,760 --> 00:02:29,239 Speaker 1: big screen. This is more than just a team. This 46 00:02:29,320 --> 00:02:32,360 Speaker 1: is a place people want to be. I mean, it 47 00:02:32,480 --> 00:02:35,720 Speaker 1: really is unbelievable. And they're they're right ahead of the Giants. 48 00:02:36,040 --> 00:02:40,240 Speaker 1: So a New York team three point three billion versus 49 00:02:40,320 --> 00:02:43,880 Speaker 1: four point eight for the Cowboys. That's a one and 50 00:02:43,919 --> 00:02:46,600 Speaker 1: a half billion dollar spread over a team and the 51 00:02:46,720 --> 00:02:49,680 Speaker 1: number one media market. They're doing something right. Also, one 52 00:02:49,680 --> 00:02:53,280 Speaker 1: thing from further down on the list, the Chargers barely 53 00:02:53,280 --> 00:02:55,240 Speaker 1: got any boost from moving to l A. The Ram's 54 00:02:55,240 --> 00:02:57,280 Speaker 1: got a nice little boost. The Chargers went from two 55 00:02:57,280 --> 00:02:59,520 Speaker 1: point o a to two point two. This is not 56 00:02:59,560 --> 00:03:03,320 Speaker 1: a very different between relocating from San Diego to the 57 00:03:03,360 --> 00:03:05,520 Speaker 1: second biggest media market and you want to own the stadium, 58 00:03:05,520 --> 00:03:07,200 Speaker 1: you want to be attendant. Absolutely. Now we know why 59 00:03:07,320 --> 00:03:11,760 Speaker 1: is the Charges? This was not planned at the mayor 60 00:03:11,919 --> 00:03:14,880 Speaker 1: of Los Angeles. Didn't he say, hey, wow, we really 61 00:03:14,919 --> 00:03:17,880 Speaker 1: didn't want the team anyway. Well, now he's got too. 62 00:03:18,400 --> 00:03:21,679 Speaker 1: And in the long run, again, people are looking at 63 00:03:22,200 --> 00:03:25,600 Speaker 1: first week attendance at the soccer stadium, you know where 64 00:03:25,600 --> 00:03:29,000 Speaker 1: the charges are playing. Let this play out. It's not 65 00:03:29,120 --> 00:03:32,839 Speaker 1: just a one week, one year play. Let's also talk 66 00:03:32,880 --> 00:03:36,920 Speaker 1: about another topic that is hot on Bloomberg, Business of sports. 67 00:03:37,240 --> 00:03:40,480 Speaker 1: Line judges in tennis. Do we really need him? Do 68 00:03:40,560 --> 00:03:43,280 Speaker 1: we really need him? If I can see the US 69 00:03:43,360 --> 00:03:45,560 Speaker 1: Open replay, I mean that I've been to the US 70 00:03:45,640 --> 00:03:47,440 Speaker 1: Open every year for the last I don't know how long. 71 00:03:48,040 --> 00:03:51,000 Speaker 1: I love when somebody challenges a call. And if people 72 00:03:51,000 --> 00:03:52,800 Speaker 1: are familiar with this, it goes on the big screen 73 00:03:52,840 --> 00:03:55,920 Speaker 1: in the stadium. You see the ball coming toward the 74 00:03:55,960 --> 00:04:00,280 Speaker 1: line and a millimeter in or out, and the crowd ups. 75 00:04:00,680 --> 00:04:03,760 Speaker 1: It's the same question do we need umpires in baseball? 76 00:04:03,800 --> 00:04:05,920 Speaker 1: And Tony Clark, the head of the Union, said we 77 00:04:05,960 --> 00:04:09,119 Speaker 1: do for that control the game factor. Evan, I don't 78 00:04:09,120 --> 00:04:10,680 Speaker 1: know if we do in tennis. Yeah. I think this 79 00:04:10,760 --> 00:04:13,120 Speaker 1: is that classic debate about how much automation is too 80 00:04:13,200 --> 00:04:16,400 Speaker 1: much automation. Do we absolutely need line judges? Probably not, 81 00:04:16,480 --> 00:04:18,719 Speaker 1: And there's certainly the technology has caught up to the 82 00:04:18,720 --> 00:04:22,120 Speaker 1: fact that we can have a totally automatic, very very 83 00:04:22,160 --> 00:04:24,479 Speaker 1: accurate system. But I'm with Scott. There's a part of 84 00:04:24,480 --> 00:04:26,919 Speaker 1: me that loves the idea of someone they're making the 85 00:04:26,960 --> 00:04:28,920 Speaker 1: call and a little bit of human error that gives 86 00:04:29,240 --> 00:04:31,440 Speaker 1: a player the chance to reverse it. It creates a 87 00:04:31,440 --> 00:04:34,320 Speaker 1: little bit of drama. I don't want umpires going away 88 00:04:34,320 --> 00:04:37,279 Speaker 1: anytime soon calling balls and strikes, even though we have 89 00:04:37,360 --> 00:04:40,560 Speaker 1: systems that can probably call them better than humans. Right now, 90 00:04:40,839 --> 00:04:43,000 Speaker 1: I love the the puppy that runs out and gets 91 00:04:43,040 --> 00:04:45,400 Speaker 1: the kickoff tea some high school football games. So that's 92 00:04:46,160 --> 00:04:49,000 Speaker 1: that's I love that you cannot be serious and see 93 00:04:49,000 --> 00:04:52,480 Speaker 1: what I did there, Macrow and let me explain more 94 00:04:52,520 --> 00:04:56,720 Speaker 1: about this story. The Men's Tour announced that the next 95 00:04:57,080 --> 00:05:02,080 Speaker 1: generation a t P Finals season ending event for top 96 00:05:02,120 --> 00:05:05,640 Speaker 1: twenty one and under players will feature electronic line calling 97 00:05:05,720 --> 00:05:08,800 Speaker 1: for all shots. And it's the first time this is 98 00:05:08,880 --> 00:05:13,080 Speaker 1: being tried at an a TP tournament. This is why 99 00:05:13,200 --> 00:05:15,600 Speaker 1: the NFL tried things when they had NFL Europe. This 100 00:05:15,680 --> 00:05:17,720 Speaker 1: is why the NBA has the d League. You try 101 00:05:17,760 --> 00:05:21,200 Speaker 1: things if it works. Another topic, and this is big 102 00:05:21,320 --> 00:05:25,920 Speaker 1: especially in college sports. Liar Field in i GM College 103 00:05:26,040 --> 00:05:30,480 Speaker 1: close to a merger deal that combines the industry's biggest 104 00:05:30,480 --> 00:05:33,479 Speaker 1: players I am G. I am G. Michael Barr. The 105 00:05:33,600 --> 00:05:38,799 Speaker 1: two biggest players in the industry are joining forces. Evan, 106 00:05:38,920 --> 00:05:42,440 Speaker 1: correct me if I'm wrong. But this brings under one umbrella, 107 00:05:42,920 --> 00:05:48,000 Speaker 1: one negotiating tent, something like two hundred plus schools. It's 108 00:05:48,000 --> 00:05:51,760 Speaker 1: pretty seismic. Yah of the Power five schools, so almost 109 00:05:51,760 --> 00:05:53,960 Speaker 1: all the schools that are great in college football and 110 00:05:54,000 --> 00:05:56,800 Speaker 1: big in college basketball. This is going to fundamentally change 111 00:05:56,839 --> 00:05:59,960 Speaker 1: the way that brands sponsor these schools, the way these 112 00:06:00,000 --> 00:06:02,400 Speaker 1: schools make revenue, and also the way that their meteor 113 00:06:02,480 --> 00:06:05,200 Speaker 1: rights are handled for the foreseeable future. I asked, just 114 00:06:05,240 --> 00:06:08,800 Speaker 1: like draft Kings and Fandel, what about some regulatorium? This 115 00:06:08,880 --> 00:06:10,960 Speaker 1: is this, This is a gorilla. It's a great question. 116 00:06:11,400 --> 00:06:14,160 Speaker 1: They can certainly cite the changing media landscape as a 117 00:06:14,160 --> 00:06:17,680 Speaker 1: as an opponent to this and as a competitor um 118 00:06:17,839 --> 00:06:20,680 Speaker 1: and we'll see what happens our Thanks to Bloomberg Business 119 00:06:20,680 --> 00:06:23,920 Speaker 1: of Sports reporter Evan now Williams and now, so it's 120 00:06:23,960 --> 00:06:27,720 Speaker 1: buying the New England Patriots. The Craft family has led 121 00:06:27,720 --> 00:06:30,840 Speaker 1: the team to five Super Bowls. Now, we have all 122 00:06:30,960 --> 00:06:33,800 Speaker 1: heard of Robert Kraft who bought the team, but his 123 00:06:33,880 --> 00:06:37,240 Speaker 1: son Jonathan is a key executive on the team. Yes 124 00:06:37,279 --> 00:06:39,880 Speaker 1: he is. He's the pat's president, overseeing the management and 125 00:06:39,920 --> 00:06:43,680 Speaker 1: strategic planning of every department in the organization. Jonathan also 126 00:06:43,720 --> 00:06:47,599 Speaker 1: serves on multiple NFL owner committees, including the Digital Committee. Jonathan, 127 00:06:47,640 --> 00:06:51,360 Speaker 1: We're hearing a lot about the business of the NFL, 128 00:06:51,360 --> 00:06:53,120 Speaker 1: so I'm good, some bad. How would you sum up 129 00:06:53,200 --> 00:06:56,320 Speaker 1: right now? How is the business of the NFL? I 130 00:06:56,360 --> 00:07:01,200 Speaker 1: think the business is UM is quite wrong. I think, 131 00:07:01,320 --> 00:07:07,520 Speaker 1: like everybody UM the technological changes that are affecting all 132 00:07:07,600 --> 00:07:11,680 Speaker 1: forms of entertainment products and the mediums by which they 133 00:07:11,720 --> 00:07:16,480 Speaker 1: reached their ultimate audience. I think we're clearly going through 134 00:07:16,480 --> 00:07:20,280 Speaker 1: a transition there, but I think that everything in that 135 00:07:20,360 --> 00:07:23,600 Speaker 1: space presents huge opportunity for us. And when you come 136 00:07:23,640 --> 00:07:27,320 Speaker 1: back and you look at the teams and and you 137 00:07:27,360 --> 00:07:31,320 Speaker 1: know season ticket sales and sponsorship revenues going into the 138 00:07:31,360 --> 00:07:36,440 Speaker 1: season and engagement at those levels is all strong Fantasy 139 00:07:36,520 --> 00:07:42,920 Speaker 1: football UM participation in terms of at NFL dot Com 140 00:07:43,000 --> 00:07:45,840 Speaker 1: and with the partners, we know the numbers four is up, 141 00:07:45,960 --> 00:07:49,600 Speaker 1: so the engagement is there. And I think that as 142 00:07:49,760 --> 00:07:53,360 Speaker 1: we continue to do things like on Thursday Night with 143 00:07:53,360 --> 00:07:59,400 Speaker 1: with Amazon Prime and continue to change our social media rules, 144 00:07:59,440 --> 00:08:03,120 Speaker 1: so the ubs can package their content non non live 145 00:08:03,200 --> 00:08:07,040 Speaker 1: game content, but other things and really try to develop, 146 00:08:08,600 --> 00:08:12,680 Speaker 1: try to try to develop a complete understanding of how people, 147 00:08:12,880 --> 00:08:17,960 Speaker 1: given the technological choices they have to interact with us UM, 148 00:08:18,160 --> 00:08:20,720 Speaker 1: how they most like it and most wanted. We're going 149 00:08:20,760 --> 00:08:24,360 Speaker 1: to have to become more very and dynamic over the 150 00:08:24,400 --> 00:08:26,920 Speaker 1: long run in terms of how we let our fans 151 00:08:26,960 --> 00:08:29,920 Speaker 1: access us. But the business as a whole is quite strong. 152 00:08:30,080 --> 00:08:32,880 Speaker 1: Does that mean too much is made of the linear TV? 153 00:08:33,000 --> 00:08:36,199 Speaker 1: I keep hearing, Oh, the ratings are down, the ratings 154 00:08:36,240 --> 00:08:39,800 Speaker 1: are down. Do you worry about the TV numbers? Well, 155 00:08:39,840 --> 00:08:43,559 Speaker 1: I think you always worry about fan engagement, and everybody 156 00:08:43,600 --> 00:08:46,439 Speaker 1: should be worried about whether our fans are engaged with us. 157 00:08:46,600 --> 00:08:48,640 Speaker 1: And at the end of the day, we're still by 158 00:08:48,720 --> 00:08:55,640 Speaker 1: far and away the number one rated UM product on television. 159 00:08:55,760 --> 00:08:58,679 Speaker 1: It's not even close to anything else. So we're lucky 160 00:08:58,760 --> 00:09:02,160 Speaker 1: that we're in a position of rank like that. At 161 00:09:02,200 --> 00:09:06,680 Speaker 1: the same time, you were not naive to the fact 162 00:09:06,760 --> 00:09:10,040 Speaker 1: that the way our audience wants to consume our product 163 00:09:10,080 --> 00:09:13,640 Speaker 1: and interact with our product is definitely changing, and changing 164 00:09:14,200 --> 00:09:17,600 Speaker 1: at a pace that's faster than it's been in the past. 165 00:09:17,640 --> 00:09:21,200 Speaker 1: And it's incumbent upon us to make sure we're meeting 166 00:09:21,240 --> 00:09:26,280 Speaker 1: their needs, um which I believe. I believe we're working 167 00:09:26,320 --> 00:09:29,640 Speaker 1: hard to try to make sure that we do. And 168 00:09:29,720 --> 00:09:32,200 Speaker 1: that's the way, that's the way I do that. You 169 00:09:32,240 --> 00:09:34,800 Speaker 1: mentioned fantasy sports. By the way, I'd like to thank 170 00:09:34,840 --> 00:09:38,880 Speaker 1: Tom Brady for helping me win in a week How 171 00:09:39,000 --> 00:09:41,720 Speaker 1: terrible your team is doing. Uh well, I'm talking about 172 00:09:41,720 --> 00:09:45,760 Speaker 1: the seasonally, but the daily league that Tom Brady came 173 00:09:45,800 --> 00:09:49,240 Speaker 1: through big time. But that's another story. So Michael, I'll 174 00:09:49,280 --> 00:09:54,920 Speaker 1: make sure he knows that weekends, I usually hear from 175 00:09:54,960 --> 00:09:57,400 Speaker 1: a couple dozen people telling me that, and I'll make 176 00:09:57,400 --> 00:10:00,719 Speaker 1: sure that that Tom knows that, and that you sent 177 00:10:00,880 --> 00:10:03,600 Speaker 1: him a thank you. It was it was fun too. 178 00:10:03,800 --> 00:10:08,000 Speaker 1: It was fun to watch. Actually, the suite that they 179 00:10:08,040 --> 00:10:10,120 Speaker 1: put us in the New Orleans is in a corner 180 00:10:10,120 --> 00:10:12,760 Speaker 1: of the end zone, which is actually a great view 181 00:10:12,960 --> 00:10:15,800 Speaker 1: for sort of having the quarterbacks perspective on the field, 182 00:10:15,840 --> 00:10:19,280 Speaker 1: and we were up pretty high and and uh, watching 183 00:10:19,400 --> 00:10:22,360 Speaker 1: watching him on Sunday was really was really a lot 184 00:10:22,400 --> 00:10:26,559 Speaker 1: of fun from that perspective. He was he was he 185 00:10:26,640 --> 00:10:28,840 Speaker 1: was having a he was having a very strong day. 186 00:10:29,040 --> 00:10:33,760 Speaker 1: Oh yeah, and I'm grateful at fantasy sports has changed 187 00:10:34,000 --> 00:10:38,679 Speaker 1: the entire complexion of the NFL. I've never seen anything 188 00:10:39,160 --> 00:10:43,960 Speaker 1: revolutionize a sport like fantasy sports. No, I I think 189 00:10:44,040 --> 00:10:48,800 Speaker 1: that's true, and I think it it's helped to drive 190 00:10:48,960 --> 00:10:52,880 Speaker 1: the interest in our teams, certainly out of season. I 191 00:10:52,880 --> 00:10:57,679 Speaker 1: mean when free agency starts, people start to really pay attention, 192 00:10:57,760 --> 00:11:01,880 Speaker 1: not only because you're interested in how you're physical team 193 00:11:02,000 --> 00:11:03,640 Speaker 1: is going to do the team you root for in 194 00:11:03,640 --> 00:11:06,600 Speaker 1: your market, but you start to keep track of everything 195 00:11:06,640 --> 00:11:09,280 Speaker 1: from a fantasy perspective. And I would tell you that 196 00:11:09,920 --> 00:11:13,480 Speaker 1: a dozen years ago, I don't think anybody in August 197 00:11:13,520 --> 00:11:16,600 Speaker 1: ever reached out to me for fantasy advice, and not 198 00:11:16,720 --> 00:11:19,040 Speaker 1: that I'm an expert or have any more insight. A 199 00:11:19,120 --> 00:11:21,400 Speaker 1: lot of them are a lot smarter than me. But 200 00:11:21,520 --> 00:11:24,760 Speaker 1: I bet you I get a hundred requests from friends 201 00:11:24,840 --> 00:11:27,880 Speaker 1: over the course of the month of August leading up 202 00:11:27,880 --> 00:11:32,400 Speaker 1: to the opening week of the season for for fantasy engaged, 203 00:11:32,520 --> 00:11:35,200 Speaker 1: you know, for help with their fantasy team, engaging with them. 204 00:11:35,200 --> 00:11:40,880 Speaker 1: And I think the way Draft Kings and Sanduel uh 205 00:11:41,000 --> 00:11:44,880 Speaker 1: Pioneer Daily Fantasy took it to a different level because 206 00:11:44,920 --> 00:11:48,400 Speaker 1: so many people were I think interested in the idea 207 00:11:48,440 --> 00:11:51,640 Speaker 1: of being a part of Fantasy. Couldn't make the time 208 00:11:51,679 --> 00:11:56,800 Speaker 1: commitment that Daily Fantasy and more products that I think 209 00:11:56,800 --> 00:12:00,720 Speaker 1: are gonna come uh be in it aided by them 210 00:12:00,760 --> 00:12:03,800 Speaker 1: and others. Now that people like Verizon have bought Yahoo, 211 00:12:03,840 --> 00:12:05,480 Speaker 1: I think, I think you're going to see more and 212 00:12:05,600 --> 00:12:11,720 Speaker 1: more fantasy products come on the market to engage our fans. 213 00:12:11,760 --> 00:12:14,480 Speaker 1: And much like with how you consume our live games, 214 00:12:14,559 --> 00:12:17,480 Speaker 1: the choices and the options are going to get greater 215 00:12:17,559 --> 00:12:20,560 Speaker 1: and greater. And that that only you know, that's only 216 00:12:20,600 --> 00:12:23,679 Speaker 1: a plus for our business because people can do what 217 00:12:23,760 --> 00:12:26,240 Speaker 1: they want to do with a product that best that's 218 00:12:26,320 --> 00:12:29,800 Speaker 1: their needs. We are chatting with on Patriots president Jonathan Craft, 219 00:12:29,800 --> 00:12:31,959 Speaker 1: and Jonathan, you mentioned draft Kings fair to say that 220 00:12:32,240 --> 00:12:36,040 Speaker 1: Craft Sports Group is an investor in drafting. Are you 221 00:12:36,080 --> 00:12:39,720 Speaker 1: still bullish on Daily Fantasy even after the merger was scrapped. 222 00:12:39,760 --> 00:12:43,640 Speaker 1: Are you still bullish on what your company, DraftKings is 223 00:12:44,200 --> 00:12:47,640 Speaker 1: able to accomplish? Well, I think, well, we invested a 224 00:12:47,679 --> 00:12:52,320 Speaker 1: long time ago and so fortunately we're we're happy with 225 00:12:52,360 --> 00:12:56,440 Speaker 1: our investment. I think that putting the two companies together 226 00:12:56,720 --> 00:12:58,720 Speaker 1: would have been the right thing for the market. You know, 227 00:12:58,760 --> 00:13:01,719 Speaker 1: the government has spoken and in their wisdom determined that 228 00:13:01,760 --> 00:13:04,400 Speaker 1: they shouldn't be together, but I think the product of 229 00:13:04,480 --> 00:13:08,480 Speaker 1: Daily Fantasy is absolutely going to exist. I think the 230 00:13:08,480 --> 00:13:12,160 Speaker 1: two of them coming together, rather than spending money beating 231 00:13:12,160 --> 00:13:14,120 Speaker 1: each other up, you would have seen more and more 232 00:13:14,160 --> 00:13:16,960 Speaker 1: invested in that innovation that I refer to, and I 233 00:13:16,960 --> 00:13:21,560 Speaker 1: think really interesting content as well as innovation created around 234 00:13:21,559 --> 00:13:25,120 Speaker 1: the games. Now, I assume more of that will be 235 00:13:25,200 --> 00:13:27,880 Speaker 1: spent on the two of them competing with each other. 236 00:13:27,960 --> 00:13:31,240 Speaker 1: From a marketing perspective, and I think, actually this is 237 00:13:31,320 --> 00:13:35,120 Speaker 1: one case my perspective, the consumer loses in that regard 238 00:13:35,240 --> 00:13:40,600 Speaker 1: because the bigger, the bigger, the more liquid the audience 239 00:13:40,760 --> 00:13:44,160 Speaker 1: is for those games, the better the games are, and 240 00:13:44,200 --> 00:13:47,199 Speaker 1: then the more money that can be spent on innovation 241 00:13:47,360 --> 00:13:50,560 Speaker 1: rather than fighting each other, the consumer wins. But the 242 00:13:50,679 --> 00:13:54,240 Speaker 1: government viewed it differently. Several years ago, the Craft family 243 00:13:54,280 --> 00:13:58,320 Speaker 1: designed the revenue sharing plan during contract negotiations for the 244 00:13:58,400 --> 00:14:01,880 Speaker 1: Collective Bargaining Agreement. Can you elaborate more on that? That 245 00:14:02,040 --> 00:14:04,959 Speaker 1: was Michael, you're the boy you're dating yourself now, because 246 00:14:05,000 --> 00:14:09,240 Speaker 1: that goes back to two thousand and six when um 247 00:14:09,480 --> 00:14:14,080 Speaker 1: we uh, when we did our extension. Back then, one 248 00:14:14,120 --> 00:14:16,680 Speaker 1: of the things that was holding it up within our room, 249 00:14:16,760 --> 00:14:20,400 Speaker 1: Paul tag Leaboo and Gene Upshaw, I think had had 250 00:14:20,440 --> 00:14:23,080 Speaker 1: a reasonable meeting of the minds for what could work 251 00:14:23,160 --> 00:14:27,920 Speaker 1: between the league and the union, But within the ownership room, 252 00:14:28,200 --> 00:14:32,520 Speaker 1: there was a need then to to have an extra 253 00:14:32,640 --> 00:14:38,080 Speaker 1: layer of revenue sharing so that the medium, the sort 254 00:14:38,120 --> 00:14:41,160 Speaker 1: of bottom half of the league clubs could feel like 255 00:14:41,200 --> 00:14:43,960 Speaker 1: they would be able to compete under the construct that 256 00:14:44,080 --> 00:14:47,120 Speaker 1: had been set up for calculating the salary caps. So 257 00:14:47,680 --> 00:14:50,760 Speaker 1: we just we came up with some ideas that were 258 00:14:50,920 --> 00:14:53,680 Speaker 1: part of the solution that that ended up working. But 259 00:14:53,880 --> 00:14:57,840 Speaker 1: that that's actually once we did the deal in two 260 00:14:57,880 --> 00:15:01,160 Speaker 1: thousand and eleven and the new team the deals were signed, 261 00:15:01,480 --> 00:15:07,440 Speaker 1: so much of the percentage of equally shared revenues between 262 00:15:07,440 --> 00:15:10,080 Speaker 1: all thirty two teams had gone up so high that 263 00:15:10,080 --> 00:15:14,480 Speaker 1: that that formula for revenue sharing doesn't exist. And really 264 00:15:14,560 --> 00:15:21,240 Speaker 1: revenue sharing in general now, supplemental revenue sharing is really 265 00:15:21,280 --> 00:15:25,320 Speaker 1: a byproduct of the past, and and I think as 266 00:15:25,320 --> 00:15:28,880 Speaker 1: a league, as as we continue to move forward, the 267 00:15:29,040 --> 00:15:32,400 Speaker 1: equally shared revenues are going to continue to grow faster 268 00:15:32,720 --> 00:15:36,320 Speaker 1: than than the unshared revenues, and that's good for the 269 00:15:36,320 --> 00:15:38,680 Speaker 1: health of any league. And I think we're lucky at 270 00:15:38,680 --> 00:15:41,880 Speaker 1: the National Football League that we're somewhere I believe around 271 00:15:42,560 --> 00:15:46,080 Speaker 1: high seventies to and I think when that's the case, 272 00:15:46,240 --> 00:15:49,280 Speaker 1: you you as long as there is a salary cap, 273 00:15:49,320 --> 00:15:52,240 Speaker 1: a hard salary cap like we have, and that that 274 00:15:52,360 --> 00:15:57,440 Speaker 1: much revenue sharing of national revenues, you have a competitive 275 00:15:57,480 --> 00:16:01,760 Speaker 1: situation which is really based on and each team's ability 276 00:16:01,800 --> 00:16:04,560 Speaker 1: to spot talent sign it up under the rules of 277 00:16:04,560 --> 00:16:07,480 Speaker 1: the CAB and coach it. It's not based on how 278 00:16:07,560 --> 00:16:10,680 Speaker 1: much money you have, and that means it's true competition, 279 00:16:11,200 --> 00:16:14,680 Speaker 1: and true competition drives entertainment value. And we're lucky to 280 00:16:14,720 --> 00:16:17,080 Speaker 1: be in that position. You're also lucky to be in 281 00:16:17,120 --> 00:16:21,200 Speaker 1: a league that has bongo national shared revenue. You have 282 00:16:21,360 --> 00:16:23,840 Speaker 1: cost containment. And I don't ask this lightly and I'm 283 00:16:23,840 --> 00:16:26,880 Speaker 1: not kidding. Is it possible Jonathan to lose money as 284 00:16:26,920 --> 00:16:30,200 Speaker 1: the owner of an NFL team? Well, I I think 285 00:16:30,200 --> 00:16:32,960 Speaker 1: it's always possible when you're running a business to do 286 00:16:33,160 --> 00:16:36,560 Speaker 1: things that are inefficiency. You've got to manage it. You 287 00:16:36,640 --> 00:16:38,680 Speaker 1: have to manage it well. I don't want to speak 288 00:16:38,720 --> 00:16:41,440 Speaker 1: for the other thirty one. I think we work hard 289 00:16:41,480 --> 00:16:46,320 Speaker 1: at at being very focused on doing everything we tend 290 00:16:46,320 --> 00:16:49,720 Speaker 1: to keep our customers happy and driving our local revenues 291 00:16:49,800 --> 00:16:55,080 Speaker 1: and managing, managing, UM, managing how we spend our money. 292 00:16:55,320 --> 00:16:58,680 Speaker 1: I I'll let somebody else talk about whether you can 293 00:16:58,720 --> 00:17:01,240 Speaker 1: lose money or not worth fortunate we don't lose money 294 00:17:01,280 --> 00:17:03,840 Speaker 1: at the Patriots. I have to ask this question, how 295 00:17:03,880 --> 00:17:08,320 Speaker 1: do you feel about Roger Goodell. Roger is UH in 296 00:17:08,440 --> 00:17:11,320 Speaker 1: a very difficult job. I think it's pretty clear that 297 00:17:11,800 --> 00:17:17,920 Speaker 1: we disagree vehemently about how the air pressure situation was handled, 298 00:17:18,080 --> 00:17:22,520 Speaker 1: and I think everybody in our organization has strongly voiced 299 00:17:22,560 --> 00:17:26,240 Speaker 1: our position on that. And I think there's a lot 300 00:17:26,320 --> 00:17:28,680 Speaker 1: more that goes into being the commissioner of the National 301 00:17:28,720 --> 00:17:32,919 Speaker 1: Football League than just adjudicating that one thing. And and 302 00:17:33,920 --> 00:17:37,239 Speaker 1: like with many people I work with and do things with, 303 00:17:37,359 --> 00:17:41,679 Speaker 1: I don't always agree with them. But UM, Roger is 304 00:17:41,720 --> 00:17:44,040 Speaker 1: the commissioner of the league, and on a number of 305 00:17:44,160 --> 00:17:49,320 Speaker 1: fronts he's he's really helping the league advanced our business 306 00:17:49,440 --> 00:17:53,639 Speaker 1: and and and making sure that we're at the forefront 307 00:17:53,720 --> 00:17:57,919 Speaker 1: of sports and entertainment. And that's what his job is, 308 00:17:58,720 --> 00:18:01,760 Speaker 1: I will forever, and I think everybody in our building 309 00:18:02,640 --> 00:18:06,760 Speaker 1: UH feels very strongly that the air pressure situation wasn't 310 00:18:07,240 --> 00:18:10,120 Speaker 1: handled the way we would have handled it. But that's 311 00:18:10,119 --> 00:18:12,320 Speaker 1: one of only a million things he has to do 312 00:18:12,400 --> 00:18:17,040 Speaker 1: every day, and he's he's um he's moving the league 313 00:18:17,040 --> 00:18:20,359 Speaker 1: forward very effectively. With a number of the other things 314 00:18:20,400 --> 00:18:23,560 Speaker 1: that he does. Roger has predicted or at least said, 315 00:18:23,560 --> 00:18:28,480 Speaker 1: he'd like to achieve billion dollars in revenue. You're on 316 00:18:28,520 --> 00:18:31,600 Speaker 1: the Digital committee. That's gonna go a long way towards 317 00:18:31,600 --> 00:18:35,240 Speaker 1: determining whether that actually happens. Where do you see the 318 00:18:35,280 --> 00:18:38,800 Speaker 1: new media and you mentioned the Amazon deal, you had Verizon, 319 00:18:38,840 --> 00:18:42,200 Speaker 1: you had Twitter. Where do you see new media in 320 00:18:42,320 --> 00:18:45,840 Speaker 1: terms of revenue generation? How far off where these companies 321 00:18:45,880 --> 00:18:50,320 Speaker 1: are contributing big time dollars to the league? Coffers well, today, 322 00:18:51,480 --> 00:18:58,480 Speaker 1: So social media and social backslash digital, you know, both forums, 323 00:18:58,520 --> 00:19:01,280 Speaker 1: and I'm not sure there's a real distinction between them 324 00:19:02,080 --> 00:19:07,040 Speaker 1: for the league this year. When you look at platforms 325 00:19:07,160 --> 00:19:13,240 Speaker 1: like what we're doing with Twitter and Amplify and um our, Facebook, 326 00:19:13,920 --> 00:19:18,400 Speaker 1: clips Steal and obviously the Amazon Prime deal, and then 327 00:19:18,440 --> 00:19:21,840 Speaker 1: what individual clubs are doing with their own properties, it'll 328 00:19:21,840 --> 00:19:25,320 Speaker 1: be you know, nine figures of revenue for the league. 329 00:19:25,440 --> 00:19:28,760 Speaker 1: So I think we're already there. I think the most 330 00:19:28,840 --> 00:19:32,520 Speaker 1: important thing going forward in the future is to really 331 00:19:32,560 --> 00:19:36,840 Speaker 1: refine each of these platforms um as a distribution model 332 00:19:36,920 --> 00:19:40,159 Speaker 1: for what they're best at, and then making sure that 333 00:19:40,359 --> 00:19:45,480 Speaker 1: the revenue, the advertising revenue that can get generated by 334 00:19:45,480 --> 00:19:51,359 Speaker 1: by each of these platforms is is relevant to the um, 335 00:19:51,400 --> 00:19:55,440 Speaker 1: to the end user, the person consuming the media as 336 00:19:55,520 --> 00:19:58,520 Speaker 1: is possible. You know, traditionally, on TV, whether it's a 337 00:19:58,600 --> 00:20:03,119 Speaker 1: live game broadcast on linear television, or if you have 338 00:20:03,280 --> 00:20:05,560 Speaker 1: some type of shoulder program and you're doing as a 339 00:20:05,600 --> 00:20:09,840 Speaker 1: club or magazine program, whatever it was you did, historically, 340 00:20:09,920 --> 00:20:14,000 Speaker 1: you're selling thirty second spots and it's going one too many. Uh. 341 00:20:14,119 --> 00:20:17,600 Speaker 1: The real future for us, as we can start to 342 00:20:17,680 --> 00:20:21,160 Speaker 1: develop an understanding of each fan of the National Football 343 00:20:21,240 --> 00:20:25,200 Speaker 1: League on an individual basis, is how we can then 344 00:20:25,240 --> 00:20:28,920 Speaker 1: monetize their consumption of content in a way that's much 345 00:20:28,960 --> 00:20:32,120 Speaker 1: more personal to them, so it'll be more relevant to them, 346 00:20:32,560 --> 00:20:36,520 Speaker 1: you know, feeding you or or I Scott or Michael 347 00:20:36,680 --> 00:20:42,159 Speaker 1: an ad for Michael Jarretts. Jarrettsal from Michael, why, I 348 00:20:42,200 --> 00:20:44,960 Speaker 1: don't know, some type of the three of us are men, 349 00:20:45,119 --> 00:20:48,920 Speaker 1: so some type of female product. It's it's it's it's 350 00:20:48,960 --> 00:20:53,280 Speaker 1: not relevant to us. But if they know enough, you know, 351 00:20:53,520 --> 00:20:56,880 Speaker 1: Scott Sun as a hockey player and travels a lot, 352 00:20:57,000 --> 00:21:01,480 Speaker 1: and the the ability to within an end fell piece 353 00:21:01,560 --> 00:21:05,320 Speaker 1: of content serve up an add like that, which otherwise 354 00:21:05,359 --> 00:21:08,119 Speaker 1: they could never afford to advertise because they're hitting too 355 00:21:08,160 --> 00:21:12,359 Speaker 1: many eyeballs that aren't relevant. You know that That's that's 356 00:21:12,400 --> 00:21:15,200 Speaker 1: really the future, not just for us, but for everybody 357 00:21:15,200 --> 00:21:17,920 Speaker 1: with this type of content. But because our audience will 358 00:21:17,920 --> 00:21:21,280 Speaker 1: hopefully be larger, you know, we'll be able to monetize 359 00:21:21,280 --> 00:21:24,680 Speaker 1: it in in very meaningful ways. And I think that's 360 00:21:24,720 --> 00:21:26,719 Speaker 1: the future. So Jonathan, let me know if I if 361 00:21:26,760 --> 00:21:28,639 Speaker 1: I have this right. So we're working out the kinks 362 00:21:28,680 --> 00:21:32,919 Speaker 1: with Amazon and Facebook and Twitter now, but down the road, 363 00:21:33,600 --> 00:21:35,919 Speaker 1: I'll be watching a game, Micha will be watching the 364 00:21:35,920 --> 00:21:38,120 Speaker 1: same game. My friends will be watching the same game, 365 00:21:38,160 --> 00:21:40,680 Speaker 1: but we'll all get different ads based on what the 366 00:21:40,760 --> 00:21:45,800 Speaker 1: data analytics tell those something. I think that's definitely one 367 00:21:45,840 --> 00:21:48,360 Speaker 1: of the possible outcomes. And I want to point out 368 00:21:48,359 --> 00:21:50,879 Speaker 1: we're not working out the kinks. I would just say 369 00:21:51,080 --> 00:21:54,840 Speaker 1: we're experimenting. There By definition, they were gonna be kinks 370 00:21:54,880 --> 00:21:57,960 Speaker 1: and we know it, um. But the idea in the 371 00:21:58,040 --> 00:22:02,879 Speaker 1: long run is to make sure that everybody's experienced with 372 00:22:02,960 --> 00:22:09,560 Speaker 1: the NFL is as relevant to them as it possibly 373 00:22:09,720 --> 00:22:13,720 Speaker 1: can be, and and that'll make the consumer happy, and 374 00:22:13,920 --> 00:22:17,439 Speaker 1: if done properly, should also be good for the National 375 00:22:17,480 --> 00:22:20,000 Speaker 1: Football League from a revenue standpoint. We're talking with the 376 00:22:20,000 --> 00:22:23,160 Speaker 1: president of the New England Patriots, Jonathan Kraft. You are 377 00:22:23,280 --> 00:22:27,280 Speaker 1: the son probably one of the most well known owners 378 00:22:27,280 --> 00:22:31,080 Speaker 1: in the National Football League, Robert Kraft. Tell us what's that? 379 00:22:31,440 --> 00:22:34,280 Speaker 1: What that is like? You're you're the son of Robert Kraft. 380 00:22:34,280 --> 00:22:36,879 Speaker 1: Can you take us through that. It's been my father 381 00:22:37,000 --> 00:22:40,520 Speaker 1: from my whole life, and along with my wife, he's 382 00:22:40,640 --> 00:22:43,240 Speaker 1: my best friend, and we do a lot more than 383 00:22:43,320 --> 00:22:45,880 Speaker 1: just the Patriots. So I'm lucky. When I get out 384 00:22:45,880 --> 00:22:48,680 Speaker 1: of out of college, I worked at a place called 385 00:22:48,760 --> 00:22:52,280 Speaker 1: Bain and and after Bain, I went to business school 386 00:22:52,320 --> 00:22:55,159 Speaker 1: and I joined my dad, and we weren't in the 387 00:22:55,200 --> 00:22:58,960 Speaker 1: football business yet. We're still in paper and packaging as 388 00:22:59,080 --> 00:23:02,959 Speaker 1: a our core foundation business for our family, and we 389 00:23:03,160 --> 00:23:05,560 Speaker 1: spend a lot of time in that together. We spend 390 00:23:05,560 --> 00:23:09,720 Speaker 1: a lot of time in real estate businesses and our 391 00:23:09,760 --> 00:23:13,080 Speaker 1: investment businesses together as well as sports. So I don't 392 00:23:13,240 --> 00:23:16,639 Speaker 1: think of him in in that role of you know 393 00:23:16,680 --> 00:23:19,560 Speaker 1: the Patriots. Who was a great dad growing up, and 394 00:23:19,600 --> 00:23:22,159 Speaker 1: he's been, as I said, my best friend along with 395 00:23:22,200 --> 00:23:24,560 Speaker 1: my wife Patty. Did he make you start at the bottom? 396 00:23:24,600 --> 00:23:26,760 Speaker 1: I'm just curious. I remember talking to Joe maloof years 397 00:23:26,760 --> 00:23:28,840 Speaker 1: and years ago. His dad used to own the Houston Rockets. 398 00:23:28,840 --> 00:23:31,560 Speaker 1: He made him sweep the floor, he made him drive 399 00:23:31,640 --> 00:23:33,520 Speaker 1: the trucks so he would know the business from the 400 00:23:33,520 --> 00:23:37,800 Speaker 1: bottom up well as a kid. Once I could drive, 401 00:23:38,040 --> 00:23:40,439 Speaker 1: I we had some factories know where we lived, and 402 00:23:40,480 --> 00:23:43,439 Speaker 1: I'd always in the summers that the way the seven 403 00:23:43,520 --> 00:23:46,840 Speaker 1: to three shift worked is over time started, which in 404 00:23:46,880 --> 00:23:50,240 Speaker 1: the summers were always busy at five am, so I 405 00:23:50,359 --> 00:23:52,840 Speaker 1: used to I used to get out of bed about 406 00:23:52,840 --> 00:23:55,000 Speaker 1: three forty five in the morning and do that. And 407 00:23:55,040 --> 00:23:59,639 Speaker 1: then my first two summers a college, a business partner 408 00:23:59,640 --> 00:24:02,080 Speaker 1: of our had a paper mill down in South Carolina, 409 00:24:02,119 --> 00:24:04,679 Speaker 1: and I used to work the overnight shift, which was 410 00:24:04,760 --> 00:24:07,640 Speaker 1: seven pm the seven am and lived in a holiday inn. 411 00:24:07,680 --> 00:24:11,359 Speaker 1: And you'd lose about ten pounds of waterway in South 412 00:24:11,400 --> 00:24:13,520 Speaker 1: Carolina in the summers at the back end of a 413 00:24:13,520 --> 00:24:17,920 Speaker 1: hot paper mill. But um, it was great. I love manufacturing, 414 00:24:18,000 --> 00:24:21,440 Speaker 1: and I think the manufacturing business, which I still probably 415 00:24:21,480 --> 00:24:24,400 Speaker 1: spend the majority of my time at. Actually that's where 416 00:24:24,440 --> 00:24:29,080 Speaker 1: I spend the majority of my time. Um, you get 417 00:24:29,160 --> 00:24:33,359 Speaker 1: great lessons when you're in a commodity manufacturing business. You 418 00:24:33,440 --> 00:24:35,879 Speaker 1: get great perspective on how lucky you are to be 419 00:24:35,960 --> 00:24:39,679 Speaker 1: in the sports business where it's not a commodity and 420 00:24:40,600 --> 00:24:44,720 Speaker 1: you you have the ability to be creative around your 421 00:24:44,720 --> 00:24:48,640 Speaker 1: product and take customer service lessons from a commodity business 422 00:24:48,680 --> 00:24:51,359 Speaker 1: where it's just critical if you don't have it, you die, 423 00:24:52,080 --> 00:24:55,200 Speaker 1: and bring it to bear in sports and so it's 424 00:24:55,400 --> 00:24:58,320 Speaker 1: been a great life lesson. Speaking of being in the 425 00:24:58,359 --> 00:25:01,920 Speaker 1: sports business. The Craft Group, they are also have the 426 00:25:01,960 --> 00:25:06,400 Speaker 1: New England Revolution in the Major League Soccer, a Major 427 00:25:06,480 --> 00:25:09,040 Speaker 1: League Soccer team. What is it like and what do 428 00:25:09,080 --> 00:25:12,680 Speaker 1: you see the future that holds for soccer? Well, Emma, 429 00:25:12,760 --> 00:25:15,879 Speaker 1: we were one of the founders of the league and um, 430 00:25:15,920 --> 00:25:18,840 Speaker 1: so we've seen it come a long way. I actually 431 00:25:18,840 --> 00:25:23,560 Speaker 1: currently chair the expansion committee for MLS and I can 432 00:25:23,600 --> 00:25:26,480 Speaker 1: tell you we've never been in such a strong, such 433 00:25:26,480 --> 00:25:30,159 Speaker 1: a strong position. Uh, We're we're going to be taking 434 00:25:30,200 --> 00:25:33,960 Speaker 1: four new teams into the league over the next couple 435 00:25:34,000 --> 00:25:37,120 Speaker 1: of years, which will bring us up to teams. I'm 436 00:25:37,160 --> 00:25:43,919 Speaker 1: extremely bullish on Major League Soccer. Uh, and it's uh. 437 00:25:44,080 --> 00:25:47,280 Speaker 1: I think you're gonna wake up in another decade and 438 00:25:47,280 --> 00:25:50,320 Speaker 1: and MLS is going to very much be at the 439 00:25:50,359 --> 00:25:53,399 Speaker 1: forefront of the consciousness of of all sports fans in 440 00:25:53,440 --> 00:25:56,360 Speaker 1: this country, not just the people that are passionate about soccer. 441 00:25:56,760 --> 00:26:00,439 Speaker 1: Jonathan Kraft, president of the New England Patriots, thank you 442 00:26:00,640 --> 00:26:04,439 Speaker 1: so much for joining us, and I hope that you 443 00:26:04,560 --> 00:26:07,440 Speaker 1: have a pleasurable season. And it looks like you guys 444 00:26:07,520 --> 00:26:11,520 Speaker 1: look strong. Thank you. Thanks Michael, thanks appreciate it. Takeaways 445 00:26:11,560 --> 00:26:15,439 Speaker 1: from Jonathan Craft. I like the way he delicately talked 446 00:26:15,480 --> 00:26:20,679 Speaker 1: about Roger Goodell. Yes, he's still upset about how the 447 00:26:20,720 --> 00:26:25,360 Speaker 1: whole deflate Gate controversy was handled, but asked for the Patriots, Hey, 448 00:26:25,400 --> 00:26:27,680 Speaker 1: they won the Super Bowl and they're moving on. Yeah, 449 00:26:27,720 --> 00:26:30,040 Speaker 1: let's see. I mean Roger's up for a new contract. 450 00:26:30,160 --> 00:26:32,800 Speaker 1: Is Jerry Jones happy with the handling of Ezekiel Elliott? 451 00:26:32,840 --> 00:26:34,920 Speaker 1: You know, you don't want to alienate the Crafts, the Jones, 452 00:26:35,119 --> 00:26:38,439 Speaker 1: These are some popular, powerful owners in the NFL. But 453 00:26:38,600 --> 00:26:41,919 Speaker 1: for me, it was about the digital strategy of the 454 00:26:42,000 --> 00:26:44,919 Speaker 1: NFL because we're hearing so much about all ratings are 455 00:26:44,960 --> 00:26:47,080 Speaker 1: down a little bit from last year. There's too much 456 00:26:47,119 --> 00:26:53,160 Speaker 1: football on TV. Jonathan so eloquently described a situation where 457 00:26:53,200 --> 00:26:57,119 Speaker 1: you where, me where he where. Our friends will be 458 00:26:57,160 --> 00:27:00,880 Speaker 1: watching the same game on different devices and we'll all 459 00:27:00,880 --> 00:27:03,600 Speaker 1: see different ads based on what the data is telling 460 00:27:03,600 --> 00:27:08,840 Speaker 1: the advertisers. That is a gold mine for anybody's sports 461 00:27:08,880 --> 00:27:12,600 Speaker 1: league entertainment. Doesn't matter. That can aggregate eyeballs. And right now, 462 00:27:12,720 --> 00:27:16,679 Speaker 1: say what you will about falling ratings, they still attract 463 00:27:16,840 --> 00:27:21,440 Speaker 1: more eyeballs than anything else. Going to be massively interesting 464 00:27:21,720 --> 00:27:24,920 Speaker 1: to see how they monetize those eyeballs down the line. 465 00:27:25,000 --> 00:27:28,120 Speaker 1: That means they're gonna see ads about pool queues and 466 00:27:28,320 --> 00:27:32,840 Speaker 1: Jared All Baby, Jarred all Oval ten and see alice 467 00:27:32,880 --> 00:27:37,840 Speaker 1: from Michael Barr. I mean they're on the NFL broadcast anyway. 468 00:27:41,160 --> 00:27:43,160 Speaker 1: Feels better to be number one than number five. I'll 469 00:27:43,160 --> 00:27:44,960 Speaker 1: wear a number because of Mike. We have a chance 470 00:27:45,000 --> 00:27:46,560 Speaker 1: to go for three in a row. Kids numbers in a 471 00:27:46,520 --> 00:27:48,679 Speaker 1: a good time, and let's first started wearing the number. 472 00:27:48,760 --> 00:27:51,840 Speaker 1: I would just have the filed Floomberg Business of Sports. 473 00:27:52,119 --> 00:27:55,920 Speaker 1: The number of the week, The number of the week, 474 00:27:56,640 --> 00:28:02,920 Speaker 1: five thousand, six hundred why courtesy of producer Rich Truman. 475 00:28:02,960 --> 00:28:06,040 Speaker 1: I didn't even realize this number was coming. But the 476 00:28:06,200 --> 00:28:09,080 Speaker 1: number of home runs, the record home runs in a 477 00:28:09,119 --> 00:28:12,000 Speaker 1: season major League Baseball back in two thousand, the height 478 00:28:12,040 --> 00:28:14,760 Speaker 1: of the steroid era. And it's gonna be eclipse now. 479 00:28:15,760 --> 00:28:19,760 Speaker 1: Interesting why, Michael Barr Well, because they have last time 480 00:28:19,800 --> 00:28:21,880 Speaker 1: this happened in two thousands and when they knocked all 481 00:28:21,920 --> 00:28:27,760 Speaker 1: these home runs, and now it's happening without quote unquote steroids, 482 00:28:27,800 --> 00:28:31,879 Speaker 1: as some critics would say. And it's good for business too, 483 00:28:31,960 --> 00:28:34,480 Speaker 1: because you get a lot of home runs. People love 484 00:28:34,560 --> 00:28:37,320 Speaker 1: the long ball, and people love to see it. People 485 00:28:37,320 --> 00:28:40,640 Speaker 1: will tune in, people will come to the ballpark to 486 00:28:40,760 --> 00:28:43,840 Speaker 1: see a home run ball, hit the big Green Monster, 487 00:28:44,280 --> 00:28:46,480 Speaker 1: or hit the stands, whatever. I will tell you. I 488 00:28:46,600 --> 00:28:49,080 Speaker 1: go everything through the eyes of my eight year old 489 00:28:49,600 --> 00:28:52,400 Speaker 1: And after Aaron Judge and the home run derby, he 490 00:28:52,440 --> 00:28:55,600 Speaker 1: was running around for weeks pretending to be Aaron Judge 491 00:28:56,040 --> 00:28:58,760 Speaker 1: and gian Carlos Stanton, who he had never heard of 492 00:28:59,240 --> 00:29:02,520 Speaker 1: before that home run derby. It makes stars. It's what 493 00:29:02,680 --> 00:29:05,480 Speaker 1: the young folks want to see. It's the most exciting 494 00:29:05,520 --> 00:29:08,239 Speaker 1: thing in baseball. Good for the game for sure. I 495 00:29:08,280 --> 00:29:11,400 Speaker 1: remember my oldest son back in the day when Sammy 496 00:29:11,480 --> 00:29:14,240 Speaker 1: Sosa and Mark McGuire were going at it, and he 497 00:29:14,360 --> 00:29:17,200 Speaker 1: got into it big time watching. Remember they had live lookings, 498 00:29:17,600 --> 00:29:19,880 Speaker 1: and each of their at bats they had live lookings. 499 00:29:19,960 --> 00:29:22,720 Speaker 1: It was a really, really fun time for baseball. I 500 00:29:22,800 --> 00:29:25,920 Speaker 1: need to bring that back. What live lookings. Let's see 501 00:29:25,920 --> 00:29:28,080 Speaker 1: if somebody's worthy of Bryce Harper. I'd like to see 502 00:29:28,080 --> 00:29:31,600 Speaker 1: his every advat you've been listening to Bloomberg Business of Sports. 503 00:29:31,640 --> 00:29:35,120 Speaker 1: We're here each and every week at the same time, 504 00:29:35,480 --> 00:29:38,440 Speaker 1: exploring the world of money and sports. Michael barn and 505 00:29:38,600 --> 00:29:40,880 Speaker 1: I'm Scott Sashnik. Thanks for joining us. Please tune in 506 00:29:40,960 --> 00:29:43,480 Speaker 1: next week when we continue our conversations with the most 507 00:29:43,520 --> 00:29:47,000 Speaker 1: powerful people in sports business. You're listening to Bloomberg Business 508 00:29:47,000 --> 00:29:50,680 Speaker 1: of Sports on Bloomberg Radio around the world and online 509 00:29:50,760 --> 00:29:52,920 Speaker 1: as an Apple podcast on iTunes.