1 00:00:02,480 --> 00:00:09,680 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg Business 2 00:00:09,720 --> 00:00:10,320 Speaker 1: of Sports. 3 00:00:10,480 --> 00:00:13,319 Speaker 2: Business of Sports can be intimidating for hard for a 4 00:00:13,360 --> 00:00:14,200 Speaker 2: start to break into. 5 00:00:14,360 --> 00:00:17,360 Speaker 3: We really appreciate when our owners are actually there, you know, 6 00:00:17,440 --> 00:00:18,520 Speaker 3: with us through the journey. 7 00:00:18,560 --> 00:00:22,080 Speaker 4: Teams ours especially have been very intentional to diversify at 8 00:00:22,120 --> 00:00:23,040 Speaker 4: all levels of the company. 9 00:00:23,160 --> 00:00:25,599 Speaker 3: Maybe we're in the golden years for the NFL and 10 00:00:25,720 --> 00:00:29,480 Speaker 3: college football. Our demographic reach has continued to explode. 11 00:00:29,600 --> 00:00:33,240 Speaker 5: This is going to be really unlocking the streaming platform 12 00:00:33,320 --> 00:00:34,240 Speaker 5: for sports fans. 13 00:00:34,360 --> 00:00:36,800 Speaker 1: Sports evaluations are rising. We'll see when they peak. 14 00:00:36,880 --> 00:00:39,400 Speaker 2: You don't have to be the best in your sport 15 00:00:39,520 --> 00:00:42,400 Speaker 2: to make a whole ton of money. 16 00:00:42,440 --> 00:00:45,360 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 17 00:00:47,080 --> 00:00:49,479 Speaker 2: This is the Bloomberg Business of Sports, where we explore 18 00:00:49,520 --> 00:00:51,319 Speaker 2: the big money issues in the world of sports. I'm 19 00:00:51,320 --> 00:00:56,600 Speaker 2: Michael Barr, along with special guest host Bloomberg Original Sports 20 00:00:56,600 --> 00:01:01,160 Speaker 2: correspondent Vanessa Bernomo, Scarlett Food and Damian Saso are on assignment. 21 00:01:01,560 --> 00:01:06,480 Speaker 2: Coming up on the show, We Talk Racing, We will 22 00:01:06,520 --> 00:01:10,880 Speaker 2: hear from James Vowels. He is the team principal for 23 00:01:10,959 --> 00:01:14,199 Speaker 2: the Williams Racing Formula One team. As we get ready 24 00:01:14,240 --> 00:01:16,480 Speaker 2: for this week's US Grand Prix in Austin. 25 00:01:16,600 --> 00:01:18,560 Speaker 6: I've had the pleasure of being the sport for about 26 00:01:18,560 --> 00:01:21,440 Speaker 6: thirty years now. There is nothing like the last sort 27 00:01:21,440 --> 00:01:23,280 Speaker 6: of four or five years where the sport is just 28 00:01:23,440 --> 00:01:27,000 Speaker 6: really really taking off globally worldwide. It's an absolute pleasure 29 00:01:27,040 --> 00:01:28,360 Speaker 6: to be a part of it at this time. It's 30 00:01:28,360 --> 00:01:30,280 Speaker 6: a pleasure to have sort of a fan base that 31 00:01:30,480 --> 00:01:34,440 Speaker 6: is growing so tremendously. But more importantly, I think we 32 00:01:34,560 --> 00:01:35,880 Speaker 6: have really good racing now. 33 00:01:36,000 --> 00:01:39,120 Speaker 2: We also speak with Jennifer Epstein, controlling owner of a 34 00:01:39,160 --> 00:01:42,759 Speaker 2: brand new National Women's Soccer League club in Boston. Will 35 00:01:42,840 --> 00:01:46,040 Speaker 2: find out more about the new team and the league's growth. 36 00:01:46,480 --> 00:01:49,360 Speaker 2: All that and more straight ahead on the Bloomberg Business 37 00:01:49,360 --> 00:01:52,640 Speaker 2: of Sports. But first we want to check in on 38 00:01:52,720 --> 00:01:57,040 Speaker 2: the college ranks, as college athletes get closer to being 39 00:01:57,080 --> 00:02:00,920 Speaker 2: able to be paid directly by their school. For more 40 00:02:00,960 --> 00:02:03,680 Speaker 2: on this and the changing college sports landscape, we bring 41 00:02:03,720 --> 00:02:06,760 Speaker 2: in Jim Cavell. He is the founder and chairman of 42 00:02:06,920 --> 00:02:11,880 Speaker 2: Athletes dot Org, a nonprofit that organizes college athletes into 43 00:02:11,919 --> 00:02:16,000 Speaker 2: their own players association. Broken down in the chapters, Jim, 44 00:02:16,200 --> 00:02:18,200 Speaker 2: Welcome to the Bloomberg Business of Sports. 45 00:02:18,280 --> 00:02:20,200 Speaker 3: We're going to talk about college sports, and there's so 46 00:02:20,320 --> 00:02:23,080 Speaker 3: much going on, and so I appreciate you guys taking 47 00:02:23,080 --> 00:02:24,400 Speaker 3: some time out for the conversation. 48 00:02:24,720 --> 00:02:27,680 Speaker 2: Yeah. I don't know where to start. I mean, it 49 00:02:27,800 --> 00:02:29,919 Speaker 2: is so much here. I mean, it's like, I guess 50 00:02:29,960 --> 00:02:33,040 Speaker 2: I'm going to start with the elephant in the room 51 00:02:33,080 --> 00:02:37,200 Speaker 2: with the latest developments on NIL and they got a 52 00:02:37,240 --> 00:02:41,440 Speaker 2: big boost the college athletes with what happened recently. Can 53 00:02:41,480 --> 00:02:42,240 Speaker 2: you take us through that? 54 00:02:42,919 --> 00:02:46,320 Speaker 3: Yeah, the House Settlement, which is a consolidation of multiple 55 00:02:46,440 --> 00:02:50,360 Speaker 3: court cases by athletes against the NCAA and its schools 56 00:02:50,760 --> 00:02:54,120 Speaker 3: for not having revenue shared with them, whether it's NIL 57 00:02:54,800 --> 00:02:59,359 Speaker 3: or just broadcast revenue. Those cases have been consolidated into 58 00:02:59,400 --> 00:03:03,280 Speaker 3: one settlement called the House Settlement, and it basically takes 59 00:03:03,680 --> 00:03:06,880 Speaker 3: three cases House versus Antaba, Hubbard versus the NCAA, and 60 00:03:06,960 --> 00:03:09,240 Speaker 3: Carter versus the NCUABLEA, which are all about that revenue 61 00:03:09,240 --> 00:03:13,400 Speaker 3: sharing topic and consolidates them into one. And it's been 62 00:03:13,440 --> 00:03:19,280 Speaker 3: preliminarily approved by Judge Wilkin, and she, with her preliminary approval, 63 00:03:20,080 --> 00:03:23,200 Speaker 3: is likely to approve it altogether on April seventh, and 64 00:03:23,240 --> 00:03:26,880 Speaker 3: it will basically create a whole new system for college 65 00:03:26,919 --> 00:03:30,040 Speaker 3: athletics that will start next summer, where schools will have 66 00:03:30,080 --> 00:03:33,840 Speaker 3: an annual cap. Twenty two million is the initial cap 67 00:03:34,160 --> 00:03:36,680 Speaker 3: per school that they will be able to use to 68 00:03:36,720 --> 00:03:38,520 Speaker 3: pay players, and it comes from their revenue. 69 00:03:38,520 --> 00:03:40,080 Speaker 7: They're not getting the money from somewhere else. 70 00:03:40,080 --> 00:03:41,680 Speaker 3: But they'll have to figure out if they want to 71 00:03:41,720 --> 00:03:44,440 Speaker 3: fully fund the twenty two million dollar cap, how they 72 00:03:44,480 --> 00:03:45,960 Speaker 3: want to split it up for sport, how they want 73 00:03:46,000 --> 00:03:48,040 Speaker 3: to split it up per athlete, what the contracts going 74 00:03:48,080 --> 00:03:50,080 Speaker 3: to look like between them and the athlete, because the 75 00:03:50,120 --> 00:03:53,720 Speaker 3: athlete will not be employee, won't have a salary. On 76 00:03:53,880 --> 00:03:57,160 Speaker 3: W two, this will be an nil deal essentially between 77 00:03:57,200 --> 00:03:59,760 Speaker 3: the school and the athlete instead of the outside and 78 00:03:59,800 --> 00:04:04,520 Speaker 3: I deals we've seen between you know, collectives of donors 79 00:04:04,520 --> 00:04:05,240 Speaker 3: and athletes. 80 00:04:05,320 --> 00:04:07,760 Speaker 7: And so it's going to change a lot. 81 00:04:07,960 --> 00:04:10,120 Speaker 3: And that it's a ten year deal, and so if 82 00:04:10,160 --> 00:04:13,320 Speaker 3: the settlement gets fully approved in April seventh, this will 83 00:04:13,520 --> 00:04:15,320 Speaker 3: be a system that's in place for ten years and 84 00:04:15,360 --> 00:04:17,560 Speaker 3: the cap will go up a little bit every year. 85 00:04:17,680 --> 00:04:19,719 Speaker 3: It could be as high as about thirty three million 86 00:04:19,760 --> 00:04:22,960 Speaker 3: by year ten. So this means that a big step, 87 00:04:23,040 --> 00:04:26,440 Speaker 3: a transformational step, is being taken where schools are finally 88 00:04:26,520 --> 00:04:29,560 Speaker 3: going to share their gross revenue with their athletes to 89 00:04:29,600 --> 00:04:30,200 Speaker 3: help produce it. 90 00:04:30,640 --> 00:04:33,200 Speaker 8: Now, that's definitely a landmark and it'll change a lot 91 00:04:33,240 --> 00:04:35,760 Speaker 8: of things, but obviously really beneficial to the athletes. But 92 00:04:35,800 --> 00:04:38,080 Speaker 8: I want to talk about how it's going to, you know, 93 00:04:38,160 --> 00:04:40,440 Speaker 8: change the recruiting process, how it's going to change the 94 00:04:40,480 --> 00:04:43,520 Speaker 8: way everything works. Because you said it's it's about twenty 95 00:04:43,520 --> 00:04:45,880 Speaker 8: two million dollars that the schools will be able to 96 00:04:45,920 --> 00:04:48,440 Speaker 8: lay out, but not every school will probably go up 97 00:04:48,480 --> 00:04:50,720 Speaker 8: to that salary cap, right, So how do you think 98 00:04:50,760 --> 00:04:53,559 Speaker 8: that that's going to We're already seeing you know, these big, 99 00:04:53,600 --> 00:04:56,760 Speaker 8: big schools that have big boosters and collectives, you know, 100 00:04:56,960 --> 00:05:00,000 Speaker 8: gaining more recruits or you know, taking them away from 101 00:05:00,080 --> 00:05:01,960 Speaker 8: other schools because they can say they can pay them 102 00:05:02,000 --> 00:05:04,280 Speaker 8: more in nil. So how is this going to change 103 00:05:04,279 --> 00:05:06,080 Speaker 8: if not every school goes up to that twenty two 104 00:05:06,080 --> 00:05:06,800 Speaker 8: million dollars cap. 105 00:05:07,000 --> 00:05:10,839 Speaker 7: There's a few points that this question kind of brings 106 00:05:10,920 --> 00:05:11,120 Speaker 7: us to. 107 00:05:11,320 --> 00:05:15,400 Speaker 3: Number one, About seventy schools will try to fully fund 108 00:05:15,440 --> 00:05:19,120 Speaker 3: the twenty two million. There's a little over sixty Power 109 00:05:19,160 --> 00:05:23,520 Speaker 3: conference schools right now, Big ten, scc ACC, Big twelve, 110 00:05:24,800 --> 00:05:27,159 Speaker 3: And then there's a handful of schools outside of the 111 00:05:27,160 --> 00:05:30,279 Speaker 3: power conferences that want to still compete at that level, 112 00:05:30,960 --> 00:05:34,240 Speaker 3: Schools like Washington State and Oregon State that are in. 113 00:05:34,160 --> 00:05:35,280 Speaker 7: The PAC two right now. 114 00:05:36,520 --> 00:05:39,440 Speaker 3: And so those schools, I believe those seventy or so 115 00:05:39,560 --> 00:05:41,840 Speaker 3: schools will fully fund the twenty two million, which means 116 00:05:41,880 --> 00:05:44,880 Speaker 3: about one point five billion will be paid to athletes 117 00:05:44,960 --> 00:05:47,800 Speaker 3: in the twenty twenty five twenty six athletic year alone, 118 00:05:47,880 --> 00:05:50,600 Speaker 3: which is awesome. But to your point, how are they 119 00:05:50,640 --> 00:05:53,480 Speaker 3: going to fund it? Who's going to fund it easier 120 00:05:53,560 --> 00:05:57,280 Speaker 3: than others? That's a really really big question. Big ten 121 00:05:57,440 --> 00:06:01,480 Speaker 3: SEC schools make fifty million more a year per school 122 00:06:01,560 --> 00:06:04,960 Speaker 3: on their media deals than the Big twelve and ACC schools. 123 00:06:05,240 --> 00:06:07,440 Speaker 3: So schools in the Big ten and SEC are gonna 124 00:06:07,440 --> 00:06:10,360 Speaker 3: have a much easier time funding the twenty two million 125 00:06:10,960 --> 00:06:11,800 Speaker 3: than schools in. 126 00:06:11,760 --> 00:06:15,640 Speaker 7: The Big twelve and ACC will. And that's a real thing. 127 00:06:15,640 --> 00:06:18,320 Speaker 3: And so what that means is, you know, an SEC 128 00:06:18,400 --> 00:06:21,080 Speaker 3: school probably will fully fund the twenty two million. This 129 00:06:21,120 --> 00:06:23,680 Speaker 3: will allow them to add scholarships for sports that they 130 00:06:23,720 --> 00:06:26,279 Speaker 3: traditionally have not been able to, like a baseball or softball, 131 00:06:26,279 --> 00:06:28,800 Speaker 3: where they want to have more full scholarships for athletes 132 00:06:28,800 --> 00:06:29,960 Speaker 3: without any limitations. 133 00:06:30,000 --> 00:06:31,159 Speaker 7: This settlement will. 134 00:06:31,000 --> 00:06:33,280 Speaker 3: Allow for that, And so I expect a Big ten 135 00:06:33,600 --> 00:06:35,560 Speaker 3: or SEC school to not only fully fund the twenty 136 00:06:35,560 --> 00:06:38,520 Speaker 3: two million dollars of revenue sharing, but to add scholarships 137 00:06:38,520 --> 00:06:41,760 Speaker 3: for certain sports. You know, Big twelve and ACC schools 138 00:06:42,200 --> 00:06:44,719 Speaker 3: are going to be scraping and clawing to fund that 139 00:06:44,760 --> 00:06:47,839 Speaker 3: twenty two million dollars and they may even eliminate a 140 00:06:47,880 --> 00:06:50,520 Speaker 3: sport or get rid of some scholarships to be able 141 00:06:50,520 --> 00:06:53,440 Speaker 3: to afford the twenty two million. So there's already going 142 00:06:53,520 --> 00:06:56,600 Speaker 3: to be a stronger divide between the haves and the 143 00:06:56,680 --> 00:06:59,960 Speaker 3: have nots just within the power conferences with them. 144 00:07:00,320 --> 00:07:01,400 Speaker 7: It's just a reality. 145 00:07:01,680 --> 00:07:03,600 Speaker 3: Schools are going to have to figure out how to 146 00:07:03,640 --> 00:07:07,240 Speaker 3: become more of a revenue generating engine to be able 147 00:07:07,279 --> 00:07:10,960 Speaker 3: to produce more revenue, afford the salaries of their coaches, 148 00:07:11,280 --> 00:07:16,160 Speaker 3: their athletics administrators, and the facilities while also now having 149 00:07:16,200 --> 00:07:17,960 Speaker 3: twenty two million dollars to pay athletes. 150 00:07:18,000 --> 00:07:19,880 Speaker 7: And the last thing I'll say is I. 151 00:07:19,880 --> 00:07:22,680 Speaker 3: Expect those bigger schools in the SEC and Big ten 152 00:07:23,000 --> 00:07:26,040 Speaker 3: to also still have fully funded collectives. 153 00:07:25,920 --> 00:07:27,320 Speaker 7: That are still doing nil. 154 00:07:27,040 --> 00:07:29,560 Speaker 3: Deals outside of the twenty two million, and those deals 155 00:07:29,600 --> 00:07:32,360 Speaker 3: will become icing on the cake deals for athletes to 156 00:07:32,400 --> 00:07:34,840 Speaker 3: get on top of the revenue sharing they're getting from 157 00:07:34,840 --> 00:07:38,440 Speaker 3: the schools. So yeah, it's going to be a literal 158 00:07:38,520 --> 00:07:42,080 Speaker 3: dichotomy of haves and have not just in the power 159 00:07:42,120 --> 00:07:42,880 Speaker 3: conferences with this. 160 00:07:43,600 --> 00:07:46,600 Speaker 2: Can you imagine this in college football back in my 161 00:07:46,880 --> 00:07:51,840 Speaker 2: old day with Bullsham Beckler and Woody Hayes going through 162 00:07:51,840 --> 00:07:56,800 Speaker 2: this that I just can't imagine the old schoolers accepting this. 163 00:07:56,920 --> 00:07:59,200 Speaker 2: And I think maybe that's why Nick Saban said, Hey 164 00:08:00,000 --> 00:08:01,720 Speaker 2: in Alabama, Well. 165 00:08:01,680 --> 00:08:05,560 Speaker 3: Nick Saban had a comment in twenty twenty three at 166 00:08:05,560 --> 00:08:08,920 Speaker 3: the spring meetings for the Southeastern Conference. For the SEC, 167 00:08:09,720 --> 00:08:13,679 Speaker 3: they were down in Destin, Florida, and Nick Saban's opening statement, 168 00:08:14,160 --> 00:08:16,880 Speaker 3: he went off on the fact that if we're going 169 00:08:16,960 --> 00:08:18,480 Speaker 3: to do this at il thing, we need to do 170 00:08:18,520 --> 00:08:19,040 Speaker 3: it all the way. 171 00:08:19,080 --> 00:08:20,000 Speaker 7: We need to structure it. 172 00:08:20,040 --> 00:08:22,440 Speaker 3: We need to have a collective bargaining agreement between the 173 00:08:22,480 --> 00:08:25,280 Speaker 3: athletes and their schools. We need to regulate the transfer 174 00:08:25,280 --> 00:08:29,760 Speaker 3: portal to create a reformation of commitment between the athletes 175 00:08:29,800 --> 00:08:31,480 Speaker 3: and the schools, and that commitment can be tied to 176 00:08:31,520 --> 00:08:33,600 Speaker 3: what they get paid. And you know, he said a 177 00:08:33,600 --> 00:08:36,520 Speaker 3: lot of things that more and more people, including us 178 00:08:36,520 --> 00:08:39,960 Speaker 3: at athletes dot Org have continued to champion over time. 179 00:08:40,240 --> 00:08:42,880 Speaker 3: Joe Klatt just interviewed James Franklin, and head coach of 180 00:08:42,920 --> 00:08:45,960 Speaker 3: Penn State for Big News Saturday a few weeks ago, 181 00:08:46,000 --> 00:08:48,480 Speaker 3: and James Franklin talked about it. Jim Harbaugh championed it 182 00:08:48,520 --> 00:08:50,960 Speaker 3: multiple times during the season, including in the press conference 183 00:08:51,040 --> 00:08:53,400 Speaker 3: right after they won the national championship with the CFP. 184 00:08:54,000 --> 00:08:56,880 Speaker 7: So we need structure. This system needs structure. 185 00:08:57,520 --> 00:09:01,199 Speaker 3: Fans are frustrated with the transfer portals, are now feeling 186 00:09:01,320 --> 00:09:05,679 Speaker 3: like athletes are greedy. Fans are feeling like athletes are 187 00:09:05,679 --> 00:09:08,400 Speaker 3: not loyal. What fans have to understand is this is 188 00:09:08,480 --> 00:09:11,079 Speaker 3: not the fault of the athlete. The athlete is just 189 00:09:11,160 --> 00:09:14,840 Speaker 3: taking advantage of a system that is not structured. And 190 00:09:14,880 --> 00:09:17,720 Speaker 3: once it's structured and the athletes actually have a seat 191 00:09:17,720 --> 00:09:21,400 Speaker 3: at the table, you can negotiate as athletes with your 192 00:09:21,400 --> 00:09:24,880 Speaker 3: school what the minimum salary is, what the maximum salary is, 193 00:09:25,080 --> 00:09:27,840 Speaker 3: what free agency or the transfer portal looks like. But 194 00:09:28,000 --> 00:09:30,920 Speaker 3: until you involve the athletes and that negotiation, you're going 195 00:09:30,960 --> 00:09:33,240 Speaker 3: to continue to have a little moral lawsuits and the 196 00:09:33,240 --> 00:09:36,480 Speaker 3: Department of Justice is the reason we don't have transfer 197 00:09:36,559 --> 00:09:38,720 Speaker 3: rules and we have a transfer portal, and they said 198 00:09:39,320 --> 00:09:42,320 Speaker 3: you cannot treat non employees with non competes. 199 00:09:42,640 --> 00:09:43,640 Speaker 7: And that's what college. 200 00:09:43,400 --> 00:09:45,360 Speaker 3: Athletics has done for a long time with the transfer 201 00:09:45,440 --> 00:09:46,640 Speaker 3: rules which are now gone. 202 00:09:46,679 --> 00:09:48,960 Speaker 7: So this is not the athlete's fault. 203 00:09:49,520 --> 00:09:52,240 Speaker 3: This is a lack of leadership and forward thinking from 204 00:09:52,280 --> 00:09:53,679 Speaker 3: the leaders in college athletics. 205 00:09:54,040 --> 00:09:56,360 Speaker 2: I want to get your reaction to a story that 206 00:09:56,520 --> 00:10:01,280 Speaker 2: happened last month of UNLV quarterback Matthew Sluca and he 207 00:10:01,400 --> 00:10:04,959 Speaker 2: left the team because of an unfulfilled one hundred thousand 208 00:10:04,920 --> 00:10:10,559 Speaker 2: dollars payment for transferring to the program. Your thoughts about 209 00:10:10,600 --> 00:10:12,680 Speaker 2: all of this that's going on in that drama. 210 00:10:13,080 --> 00:10:16,160 Speaker 3: In my last year is CEO at Influencer and TeamWorks, 211 00:10:16,240 --> 00:10:18,880 Speaker 3: I was asked to speak at a lot of meetings 212 00:10:19,000 --> 00:10:22,120 Speaker 3: with athletic directors and commissioners and they wanted to hear 213 00:10:22,280 --> 00:10:25,200 Speaker 3: the data around what was actually happening with NIL because 214 00:10:25,200 --> 00:10:27,640 Speaker 3: we had hundreds of millions of dollars of NIL payment 215 00:10:27,720 --> 00:10:30,320 Speaker 3: data in our software system, and so I would go 216 00:10:30,360 --> 00:10:32,640 Speaker 3: present and I would basically say, hey, guys, here's what's 217 00:10:32,720 --> 00:10:33,319 Speaker 3: really happening. 218 00:10:33,800 --> 00:10:38,440 Speaker 7: Your donors are laundering money in these shell companies. 219 00:10:37,960 --> 00:10:40,480 Speaker 3: That are associated with your school. They're called collectives. I'm 220 00:10:40,480 --> 00:10:44,160 Speaker 3: sure you're familiar with them, and nil is being used 221 00:10:44,200 --> 00:10:48,120 Speaker 3: to pay your players outside of the school, and these 222 00:10:48,120 --> 00:10:50,360 Speaker 3: court cases are going on. Eventually you're going to be 223 00:10:50,400 --> 00:10:54,600 Speaker 3: forced to revenue shared directly. But without the structure of 224 00:10:54,640 --> 00:10:57,400 Speaker 3: you sharing revenue directly, you don't have transparency, you don't 225 00:10:57,440 --> 00:11:01,000 Speaker 3: have structure, rules, system that can be governed. And that's 226 00:11:01,040 --> 00:11:03,640 Speaker 3: why you need to collectively negotiate with your athletes. And 227 00:11:03,880 --> 00:11:05,440 Speaker 3: you can imagine some of the reactions that. 228 00:11:05,440 --> 00:11:06,720 Speaker 7: I'd get when I give that talk. 229 00:11:06,840 --> 00:11:10,080 Speaker 3: But that brings me to Sluka, and he is one 230 00:11:10,120 --> 00:11:14,320 Speaker 3: of thousands of athletes that are getting these collective deals 231 00:11:14,880 --> 00:11:16,479 Speaker 3: in the transfer portal. 232 00:11:16,520 --> 00:11:18,800 Speaker 7: Told to them by a coach who. 233 00:11:18,640 --> 00:11:20,960 Speaker 3: Then goes to a collective, which is a shell company 234 00:11:21,080 --> 00:11:24,200 Speaker 3: associated with the school funded by donor money, and then 235 00:11:24,360 --> 00:11:27,640 Speaker 3: he the coach tells the collective, Hey, we've promised this 236 00:11:27,679 --> 00:11:29,880 Speaker 3: player X. We need to make sure you put a 237 00:11:29,880 --> 00:11:33,840 Speaker 3: contract together and pay them. It's not a structured system. 238 00:11:34,080 --> 00:11:36,840 Speaker 3: A lot of athletes are in Sluca's position. He just 239 00:11:36,880 --> 00:11:39,839 Speaker 3: had leverage and the ability to use his last year 240 00:11:39,880 --> 00:11:42,360 Speaker 3: of eligibility if he stopped playing games this year, because 241 00:11:42,400 --> 00:11:43,720 Speaker 3: he can use a red shirt. 242 00:11:43,880 --> 00:11:44,520 Speaker 7: And he did it. 243 00:11:44,760 --> 00:11:48,359 Speaker 3: And that's the system we're in. Athletes are taking advantage 244 00:11:48,679 --> 00:11:50,840 Speaker 3: of this system we're in, and there's a lot of 245 00:11:50,840 --> 00:11:53,240 Speaker 3: great stories from it. Dalton connect is a lottery pick 246 00:11:53,280 --> 00:11:56,280 Speaker 3: for the Lakers this year and he started in Juco 247 00:11:56,360 --> 00:11:58,080 Speaker 3: and then played for Northern Colorado and then. 248 00:11:58,040 --> 00:11:59,520 Speaker 7: Lent to Tennessee and became a star. 249 00:12:00,000 --> 00:12:01,720 Speaker 3: It's a great story of the transfer portal, but there's 250 00:12:01,720 --> 00:12:03,920 Speaker 3: also a lot of tough stories of the transfer portal 251 00:12:03,960 --> 00:12:08,480 Speaker 3: where kids continue, young athletes continue to transfer every year. 252 00:12:08,840 --> 00:12:11,439 Speaker 3: Some of them don't graduate, some things don't pan out 253 00:12:11,440 --> 00:12:14,040 Speaker 3: for him, some of them don't get money that was 254 00:12:14,080 --> 00:12:17,240 Speaker 3: promised to them by collectives, and nobody is governing it. 255 00:12:17,400 --> 00:12:21,360 Speaker 3: And that's why this house settlement system is a step forward, 256 00:12:21,920 --> 00:12:23,959 Speaker 3: but I don't think it's the full step forward unless 257 00:12:24,040 --> 00:12:26,959 Speaker 3: you have a collectively negotiated agreement between the athletes in 258 00:12:27,000 --> 00:12:29,120 Speaker 3: the school. That's how you protect SLUCA. You have a 259 00:12:29,120 --> 00:12:33,520 Speaker 3: standard contract did all collectives or agents or anyone on 260 00:12:33,559 --> 00:12:35,960 Speaker 3: the outside has to use. You have a standard set 261 00:12:35,960 --> 00:12:39,560 Speaker 3: of agreements that are transparent. There is guarantee, money, etc. 262 00:12:40,200 --> 00:12:44,000 Speaker 2: Our thanks to Jim Carvell, founder and chairman of athletes 263 00:12:44,040 --> 00:12:47,320 Speaker 2: dot Org, up next, we head to Boston and find 264 00:12:47,320 --> 00:12:51,719 Speaker 2: out about the newest National Women's Soccer League club or 265 00:12:51,880 --> 00:12:55,160 Speaker 2: Vaness Sipridomo. I'm Michael Barr. You're listening to the Bloomberg 266 00:12:55,200 --> 00:12:57,680 Speaker 2: Business of Sports from Bloomberg Radio. 267 00:12:57,800 --> 00:13:05,680 Speaker 1: Around the world, you're listening to Bloomberg Business of Sports 268 00:13:05,880 --> 00:13:07,120 Speaker 1: from Bloomberg Radio. 269 00:13:08,480 --> 00:13:10,760 Speaker 2: This is the Bloomberg Business of Sports show, but we 270 00:13:10,800 --> 00:13:12,840 Speaker 2: explore the big money issues in the world of sports. 271 00:13:12,840 --> 00:13:17,360 Speaker 2: I'm Michael Barr along with Bloomberg original sports correspondent Vanessa Protomo. 272 00:13:17,720 --> 00:13:21,240 Speaker 2: She is in for Scarlett Foo and Damien Sassour this week. 273 00:13:21,280 --> 00:13:25,280 Speaker 2: That's right, she's handling for two. Boston is getting a 274 00:13:25,400 --> 00:13:29,240 Speaker 2: brand new team to root for. The National Women's Soccer 275 00:13:29,320 --> 00:13:32,000 Speaker 2: League is adding Boss Nation FC. 276 00:13:32,400 --> 00:13:32,920 Speaker 7: For more. 277 00:13:33,200 --> 00:13:36,320 Speaker 2: We're happy to have Jennifer Epstein with us. She's controlling 278 00:13:36,400 --> 00:13:38,920 Speaker 2: owner of the new club. Jennifer, Welcome to the Bloomberg 279 00:13:38,960 --> 00:13:39,840 Speaker 2: Business of Sports. 280 00:13:39,840 --> 00:13:41,840 Speaker 4: Hello there, Thank you very much for having me. 281 00:13:42,200 --> 00:13:44,319 Speaker 2: Well, let's start with that. First of all, you are 282 00:13:44,480 --> 00:13:49,280 Speaker 2: part of the expansion and it's big news for the NWSL. 283 00:13:49,360 --> 00:13:51,760 Speaker 2: Can you tell us about it and you know what 284 00:13:51,800 --> 00:13:54,440 Speaker 2: it's like now that you're part of this league. 285 00:13:55,080 --> 00:13:58,800 Speaker 4: Well, you know it's great news for America, right that 286 00:13:58,920 --> 00:14:02,040 Speaker 4: Boston has another professional sports. 287 00:14:01,640 --> 00:14:03,200 Speaker 1: Team and we're in New York. 288 00:14:03,240 --> 00:14:04,240 Speaker 8: You know, I don't know, I don't know. 289 00:14:05,640 --> 00:14:08,400 Speaker 4: I mean, there could be sarcasm there for some depends 290 00:14:08,400 --> 00:14:12,320 Speaker 4: how you'd hit it. But you know, we are just 291 00:14:12,440 --> 00:14:17,640 Speaker 4: launching Boss Nation Football Club and just put out there 292 00:14:17,800 --> 00:14:23,000 Speaker 4: are new visual and brand identity, and I might take 293 00:14:23,000 --> 00:14:24,840 Speaker 4: a moment to tell you about that. You know, when 294 00:14:24,880 --> 00:14:27,320 Speaker 4: we thought about naming this team, we started with the 295 00:14:27,320 --> 00:14:31,360 Speaker 4: word Bostonian. It's nine letters that mean so much to 296 00:14:31,360 --> 00:14:34,240 Speaker 4: those of us that live there. And when you rearrange 297 00:14:34,280 --> 00:14:37,440 Speaker 4: those same nine letters, it's a n anagram you get 298 00:14:37,480 --> 00:14:40,320 Speaker 4: to the words of our name, Boss Nation. And that 299 00:14:40,480 --> 00:14:44,280 Speaker 4: was really the essence, because we're a team whose identity 300 00:14:44,320 --> 00:14:46,640 Speaker 4: is about our community of diverse fans who make up 301 00:14:46,640 --> 00:14:50,080 Speaker 4: our strong city and love the world's beautiful game, or 302 00:14:50,080 --> 00:14:52,000 Speaker 4: they will soon love the world's beautiful game if they 303 00:14:52,040 --> 00:14:56,560 Speaker 4: do not already. So yeah, and we are thrilled to 304 00:14:56,600 --> 00:14:59,680 Speaker 4: be joining the NWSL to take the pitch in March 305 00:14:59,680 --> 00:15:00,600 Speaker 4: of twenty twenty six. 306 00:15:01,440 --> 00:15:03,680 Speaker 8: Jennifer, you know, it's so it's such an interesting way 307 00:15:03,720 --> 00:15:06,160 Speaker 8: that you came about that name and Boss Nation FC 308 00:15:06,240 --> 00:15:08,800 Speaker 8: is very it's very different than a lot of other, 309 00:15:09,000 --> 00:15:13,200 Speaker 8: let's say, plainly named soccer clubs out there. How did 310 00:15:13,240 --> 00:15:14,800 Speaker 8: you come up with that? I mean, was there an 311 00:15:14,800 --> 00:15:19,120 Speaker 8: outside marketing company that was consulted? Because this is obviously branded, 312 00:15:19,320 --> 00:15:22,360 Speaker 8: you know, it's not just a city name. There's obviously 313 00:15:22,680 --> 00:15:24,240 Speaker 8: very much intention behind that. 314 00:15:25,720 --> 00:15:28,760 Speaker 4: So, you know, my one of my partners, we are 315 00:15:29,640 --> 00:15:32,480 Speaker 4: you know, unique and professional sports. We are our core 316 00:15:33,400 --> 00:15:37,240 Speaker 4: ownership are all female, and my partners are Anna Palmer 317 00:15:37,320 --> 00:15:41,200 Speaker 4: and Amy Kwon Danoff and Stephanie Connaton. And Stephanie Connaton 318 00:15:41,360 --> 00:15:45,440 Speaker 4: is a marketer. She worked for many many years at Gillette, 319 00:15:46,400 --> 00:15:49,160 Speaker 4: one of the original minds behind the Venus Razor, and 320 00:15:49,840 --> 00:15:54,760 Speaker 4: she spearheaded our our branding efforts. And we worked with 321 00:15:54,960 --> 00:16:01,760 Speaker 4: a local ad agency, Colossus named small Agency of the 322 00:16:01,840 --> 00:16:05,600 Speaker 4: Year actually just recently by ad Week. So you know, 323 00:16:06,080 --> 00:16:09,440 Speaker 4: we you know, as an ownership group, we are Bostonians 324 00:16:09,440 --> 00:16:12,440 Speaker 4: first and foremost, and we are deeply connected in the market. 325 00:16:12,680 --> 00:16:15,080 Speaker 4: And when we thought about naming this team, you know, 326 00:16:15,080 --> 00:16:19,720 Speaker 4: we want to name that that reflects our market, and 327 00:16:19,960 --> 00:16:22,600 Speaker 4: we intentionally hired this branding firm that also is within 328 00:16:22,640 --> 00:16:26,480 Speaker 4: our market. And and if you know you live in Boston. 329 00:16:26,800 --> 00:16:30,200 Speaker 4: You know, you think of Red Sox Nation or Pat's Nation, 330 00:16:30,440 --> 00:16:32,720 Speaker 4: and so you know, this was again fan first. We 331 00:16:32,760 --> 00:16:35,360 Speaker 4: are looking to build this team embedded in the fabrica 332 00:16:35,360 --> 00:16:37,720 Speaker 4: of the community and and and put our fans first, 333 00:16:38,160 --> 00:16:40,480 Speaker 4: and so so then you know that that was the 334 00:16:40,560 --> 00:16:45,160 Speaker 4: name and the whole visual brand. Alongside it. We have some, 335 00:16:45,560 --> 00:16:49,200 Speaker 4: you know, a great palette of colors. The primary colors 336 00:16:49,200 --> 00:16:53,240 Speaker 4: are you know, we've called them Championship Green and Relentless 337 00:16:53,360 --> 00:16:57,000 Speaker 4: Raspberry and Loyal Charcoal, which is essentially great green and 338 00:16:57,120 --> 00:17:02,720 Speaker 4: raspberry and black, and some additional colors orange, press and 339 00:17:03,960 --> 00:17:06,800 Speaker 4: yellow and white. And we think that you know, that 340 00:17:06,880 --> 00:17:12,000 Speaker 4: palette also reflects the diversity of our majority minority city 341 00:17:12,400 --> 00:17:16,040 Speaker 4: and the global population that we hope fill our stadium. 342 00:17:16,960 --> 00:17:20,440 Speaker 2: You guys, kick off your inaugural season twenty twenty six. 343 00:17:20,520 --> 00:17:23,359 Speaker 2: You will be the fifteenth franchise in the National Women's 344 00:17:23,440 --> 00:17:26,639 Speaker 2: Soccer League. It's not going to stay at fifteen for 345 00:17:26,720 --> 00:17:30,080 Speaker 2: long because this thing is growing and growing and growing. 346 00:17:30,600 --> 00:17:34,240 Speaker 2: To give you an example, even with the valuations, Angel 347 00:17:34,320 --> 00:17:37,399 Speaker 2: City has been valued at two hundred and fifty million 348 00:17:37,480 --> 00:17:42,800 Speaker 2: dollars and that's now I'm just thinking, what kind of 349 00:17:42,800 --> 00:17:45,600 Speaker 2: future are you looking for for the valuation of your 350 00:17:45,640 --> 00:17:50,680 Speaker 2: team and tell us about it's nice to see that. 351 00:17:51,040 --> 00:17:52,920 Speaker 2: You know, it ain't cheap anymore. 352 00:17:54,760 --> 00:17:58,159 Speaker 4: Well, you know, you're right, there's an incredible flywheel in 353 00:17:58,200 --> 00:18:00,480 Speaker 4: motion when it comes to the growth of women sports. 354 00:18:00,600 --> 00:18:02,679 Speaker 4: I'm sure you've seen some of the data that women's 355 00:18:02,680 --> 00:18:05,640 Speaker 4: sports are expected to generate one point three billion dollars 356 00:18:05,840 --> 00:18:09,480 Speaker 4: in twenty twenty four global revenues, three hundred percent higher 357 00:18:09,480 --> 00:18:13,399 Speaker 4: than in previous market estimates. You know, the NWS sales 358 00:18:13,400 --> 00:18:15,840 Speaker 4: in the first year of a landmark new media deal 359 00:18:16,160 --> 00:18:20,320 Speaker 4: that is, you know, forty times higher than the previous one. 360 00:18:20,320 --> 00:18:23,040 Speaker 4: And you probably heard the announcement of the you know, 361 00:18:23,080 --> 00:18:26,399 Speaker 4: the NWNBA is two hundred million dollars a year media deal. Also, 362 00:18:26,600 --> 00:18:30,520 Speaker 4: so you know there is women's sports you know is 363 00:18:30,560 --> 00:18:35,560 Speaker 4: on the rise. Record breaking attendance, record breaking viewership, viewership. 364 00:18:35,840 --> 00:18:39,000 Speaker 4: It's not a moment, it's a movement. And you know, 365 00:18:39,240 --> 00:18:42,400 Speaker 4: in Boston we hope to be a top performing team 366 00:18:42,440 --> 00:18:44,800 Speaker 4: on many levels. You know, first and foremost in the 367 00:18:44,800 --> 00:18:47,800 Speaker 4: depth of our impact in the community, but in ticket sales, 368 00:18:47,960 --> 00:18:52,280 Speaker 4: in sponsorship revenues, fan engagement, merch sales, and of course 369 00:18:52,280 --> 00:18:53,879 Speaker 4: our performance on the field. 370 00:18:54,640 --> 00:18:56,960 Speaker 8: You talked about, you know, being one of the teams 371 00:18:57,000 --> 00:19:01,600 Speaker 8: in this city, and obviously Boston's is incredibly iconic sports city. 372 00:19:02,200 --> 00:19:06,120 Speaker 8: Is there an advantage to knowing there's so much sports 373 00:19:06,200 --> 00:19:09,480 Speaker 8: history and obviously fans there, or is there some disadvantages 374 00:19:09,480 --> 00:19:12,560 Speaker 8: of now being a seventh team added into this saturated market. 375 00:19:13,280 --> 00:19:16,120 Speaker 4: I mean, I would not call it a saturated market. 376 00:19:16,720 --> 00:19:19,400 Speaker 4: I think, you know, in Boston, we are a town 377 00:19:19,560 --> 00:19:23,200 Speaker 4: united by our legions of sports teams. We're a place 378 00:19:23,240 --> 00:19:26,240 Speaker 4: where no u rests until championship banners are raised. I 379 00:19:26,280 --> 00:19:28,280 Speaker 4: think we have some of the most passionate fans in 380 00:19:28,320 --> 00:19:32,399 Speaker 4: all of professional sports. So I think in Boston there's 381 00:19:32,400 --> 00:19:36,720 Speaker 4: there's always room for teams that are, you know, competing 382 00:19:36,800 --> 00:19:38,919 Speaker 4: at a high level. We're going to bring in some 383 00:19:39,000 --> 00:19:41,000 Speaker 4: of the best athletes you know, in the world in 384 00:19:41,040 --> 00:19:43,959 Speaker 4: the sport into our market. That's what we're looking to do. 385 00:19:44,200 --> 00:19:48,359 Speaker 4: And you know, our and our initial data also demonstrates 386 00:19:48,359 --> 00:19:51,119 Speaker 4: that Boston has a passionate and vibrant soccer community. We 387 00:19:51,160 --> 00:19:54,120 Speaker 4: will be the soccer team in the city. Forty five 388 00:19:54,160 --> 00:19:58,320 Speaker 4: percent of the population identify as fans of soccer, and 389 00:19:58,680 --> 00:20:00,920 Speaker 4: our data also shows that, you know, our market has 390 00:20:01,200 --> 00:20:05,800 Speaker 4: significantly above national average interest in women's sports, and specifically 391 00:20:05,840 --> 00:20:09,840 Speaker 4: women's soccer, up twenty three percent to to you know, 392 00:20:10,160 --> 00:20:14,119 Speaker 4: the national So I think it shows that there's an 393 00:20:14,280 --> 00:20:19,000 Speaker 4: enthusiasm for the sport, there's an enthusiasm for women's sports. 394 00:20:19,040 --> 00:20:21,440 Speaker 4: There's a gap in the market around women's soccer, and 395 00:20:21,600 --> 00:20:23,520 Speaker 4: we're here to fill that gap. 396 00:20:24,280 --> 00:20:27,159 Speaker 2: How are you guys doing with media rights? Those are 397 00:20:27,160 --> 00:20:30,080 Speaker 2: two words that a lot of broadcasters are like, Okay, 398 00:20:30,560 --> 00:20:33,439 Speaker 2: how much are we going to pay for this league 399 00:20:33,480 --> 00:20:38,280 Speaker 2: and that league? Do you have any insight to the 400 00:20:38,680 --> 00:20:40,639 Speaker 2: media rights and what's going on with your team? 401 00:20:41,200 --> 00:20:43,800 Speaker 4: Well, so there's you know, I mentioned already that we're 402 00:20:43,800 --> 00:20:48,200 Speaker 4: in the first year of the league is in first 403 00:20:48,280 --> 00:20:51,040 Speaker 4: year of a four year deal two hundred and forty 404 00:20:51,080 --> 00:20:55,840 Speaker 4: million dollars forty x from the previous deal and spread 405 00:20:55,840 --> 00:21:00,560 Speaker 4: across four different networks to increase reach and visib There's 406 00:21:00,600 --> 00:21:03,840 Speaker 4: been tremendous growth. The national broadcast viewership is up ninety 407 00:21:03,880 --> 00:21:09,800 Speaker 4: five percent. So this is year one and and with 408 00:21:09,880 --> 00:21:13,960 Speaker 4: our record breaking attendance and viewership, I would only anticipate 409 00:21:14,000 --> 00:21:17,720 Speaker 4: that the next national media deal, you know, is even 410 00:21:17,800 --> 00:21:21,040 Speaker 4: bigger and better. So we're excited for where we are 411 00:21:21,119 --> 00:21:23,400 Speaker 4: now and and we'll certainly learn. 412 00:21:23,720 --> 00:21:23,840 Speaker 5: Uh. 413 00:21:23,880 --> 00:21:27,000 Speaker 4: You know, we have interest from our local media partners also, 414 00:21:27,080 --> 00:21:29,680 Speaker 4: and we're early on right now in Boston, but we're 415 00:21:29,720 --> 00:21:31,879 Speaker 4: about to have meetings with you know, a couple of 416 00:21:31,880 --> 00:21:35,000 Speaker 4: the local media partners that are interested in in what 417 00:21:35,000 --> 00:21:38,480 Speaker 4: we're doing and what we're building and being a partner 418 00:21:38,560 --> 00:21:39,679 Speaker 4: with respect to our games. 419 00:21:39,840 --> 00:21:41,679 Speaker 2: That's that's more what I was trying to get at 420 00:21:41,680 --> 00:21:46,880 Speaker 2: about the regional sports networks, because that's that that's becoming 421 00:21:46,960 --> 00:21:50,119 Speaker 2: old hat now, and I was talking more, do you 422 00:21:50,160 --> 00:21:53,840 Speaker 2: have any you know, idea about you know, the future 423 00:21:53,840 --> 00:21:56,200 Speaker 2: of streaming for you guys or where are you going 424 00:21:56,240 --> 00:21:56,480 Speaker 2: with that? 425 00:21:57,000 --> 00:22:00,800 Speaker 4: I don't have a fully expansive answer to that question. 426 00:22:01,080 --> 00:22:06,600 Speaker 4: It's a really important one, and you know, building up 427 00:22:06,680 --> 00:22:14,159 Speaker 4: the team side expertise to help us think through that 428 00:22:14,400 --> 00:22:16,880 Speaker 4: very carefully. We're a lean team right now. We are 429 00:22:17,320 --> 00:22:20,800 Speaker 4: close to announcing you know, our top higher and the 430 00:22:20,840 --> 00:22:24,680 Speaker 4: sporting side, and I hope alongside that very soon the 431 00:22:25,080 --> 00:22:29,000 Speaker 4: top hire on the business side and we'll grow the 432 00:22:29,000 --> 00:22:32,800 Speaker 4: team underneath them. You know, I know from from my 433 00:22:33,040 --> 00:22:37,360 Speaker 4: involvement with the Celtics part of that ownership group as 434 00:22:37,359 --> 00:22:41,639 Speaker 4: well for over twenty years and and certainly have talked 435 00:22:41,680 --> 00:22:45,119 Speaker 4: to their media partner who's expressed interest, you know, And 436 00:22:45,440 --> 00:22:49,920 Speaker 4: so we're we're going to build our relationships and see 437 00:22:49,920 --> 00:22:50,480 Speaker 4: what we can. 438 00:22:50,400 --> 00:22:54,040 Speaker 8: Do, Jennifer, I you know, talking about building out your team, 439 00:22:54,200 --> 00:22:57,159 Speaker 8: the front office and then eventually the players. I mean, 440 00:22:57,200 --> 00:22:59,840 Speaker 8: you guys announced the that you had the bid last 441 00:23:00,080 --> 00:23:02,000 Speaker 8: year in twenty twenty three, and you don't kick off 442 00:23:02,080 --> 00:23:04,680 Speaker 8: until twenty twenty six. This is a little bit longer 443 00:23:04,720 --> 00:23:06,760 Speaker 8: of a leeway than we've seen. And I've you know, 444 00:23:06,840 --> 00:23:09,520 Speaker 8: spoken to other teams that came on a little bit 445 00:23:09,560 --> 00:23:11,359 Speaker 8: quick and they wish they had a longer leeway. Do 446 00:23:11,400 --> 00:23:14,600 Speaker 8: you feel like, you know, it's it's great to have 447 00:23:14,680 --> 00:23:18,080 Speaker 8: this much time, or you just stoke to finally see 448 00:23:18,680 --> 00:23:20,320 Speaker 8: them out there playing eventually. 449 00:23:20,840 --> 00:23:23,560 Speaker 4: Well, I certainly cannot wait to see our team playing, 450 00:23:23,640 --> 00:23:26,239 Speaker 4: but you know, I already feel like it's you know, 451 00:23:26,280 --> 00:23:29,680 Speaker 4: it's not a we need all the time we can get. 452 00:23:29,760 --> 00:23:31,880 Speaker 4: We'll we'll just say that, I mean, because you still 453 00:23:31,920 --> 00:23:38,240 Speaker 4: not enough time. Well, we're also you know, in a partnership, 454 00:23:38,240 --> 00:23:42,120 Speaker 4: a public private community partnership with the City of Boston. 455 00:23:42,280 --> 00:23:45,679 Speaker 4: We have a pioneering, first of its kind stadium model 456 00:23:45,760 --> 00:23:47,760 Speaker 4: where we are going to be playing in the heart 457 00:23:47,760 --> 00:23:52,800 Speaker 4: of the city, renovating White Stadium in Franklin Park. It 458 00:23:52,840 --> 00:23:54,800 Speaker 4: will be the first facility in the nation to house 459 00:23:54,800 --> 00:23:58,399 Speaker 4: both a pro sports team and a public school's athletic programs. 460 00:23:58,560 --> 00:24:01,800 Speaker 4: So we've got a lot to do to turn White 461 00:24:01,840 --> 00:24:07,159 Speaker 4: Stadium into a state of the art, top tier facility 462 00:24:07,520 --> 00:24:10,800 Speaker 4: for our players and create the fan experience that you know, 463 00:24:10,840 --> 00:24:14,720 Speaker 4: our fans in Boston are used to. So it's not 464 00:24:14,800 --> 00:24:20,560 Speaker 4: just about building the team, it's also about building the facilities. 465 00:24:20,720 --> 00:24:24,040 Speaker 4: And we're also going to be building a practice facility, 466 00:24:24,119 --> 00:24:26,080 Speaker 4: So we have a lot of work ahead. 467 00:24:26,800 --> 00:24:29,160 Speaker 2: Yeah, and we're running out of time. But you are 468 00:24:29,240 --> 00:24:31,119 Speaker 2: right because that's going to be a state of the 469 00:24:31,280 --> 00:24:36,119 Speaker 2: art natural grass facility, and that's not easy at all, Jennifer. 470 00:24:35,960 --> 00:24:40,480 Speaker 4: That is true. But we are have a great team 471 00:24:40,520 --> 00:24:45,040 Speaker 4: in place from our design partners, and we are working 472 00:24:45,119 --> 00:24:48,240 Speaker 4: with the Legends Project Development Group who did the Kansas 473 00:24:48,240 --> 00:24:54,560 Speaker 4: City Current Stadium providing project management services. And so yeah, 474 00:24:54,560 --> 00:24:56,879 Speaker 4: it's going to be a beautiful, state of the art 475 00:24:56,960 --> 00:25:01,520 Speaker 4: stadium grass field. And you know, we think our market 476 00:25:01,640 --> 00:25:04,720 Speaker 4: and our facilities will attract players that want to play 477 00:25:04,720 --> 00:25:09,479 Speaker 4: in Boston and you know, and this model really allows 478 00:25:09,520 --> 00:25:12,280 Speaker 4: our team to have impact not just the twenty or 479 00:25:12,280 --> 00:25:16,000 Speaker 4: so home game days, but three hundred and sixty five 480 00:25:16,080 --> 00:25:16,680 Speaker 4: days of the year. 481 00:25:16,760 --> 00:25:20,200 Speaker 2: Special thanks to Jennifer Epstein for joining us. She's controlling 482 00:25:20,320 --> 00:25:26,000 Speaker 2: owner of the newly announced Boss Nation FC, Boston's new 483 00:25:26,080 --> 00:25:29,159 Speaker 2: women's soccer league club. Up next on the show, we 484 00:25:29,320 --> 00:25:33,320 Speaker 2: turned to racing and look ahead to this weekend's United 485 00:25:33,400 --> 00:25:37,720 Speaker 2: States Grand Prix with James Fowls, team principal for the 486 00:25:37,840 --> 00:25:42,280 Speaker 2: Williams Racing f one team for Vanessa Perdomo. I'm Michael Barr. 487 00:25:42,480 --> 00:25:46,080 Speaker 2: You're listening to the Bloomberg Business of Sports from Bloomberg Radio. 488 00:25:46,160 --> 00:25:48,000 Speaker 2: Around the world. 489 00:25:52,280 --> 00:25:56,399 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 490 00:25:57,600 --> 00:25:59,920 Speaker 2: Thanks for joining us on the Bloomberg Business of Sport, 491 00:26:00,240 --> 00:26:02,280 Speaker 2: but we explore the big money issues in the world 492 00:26:02,280 --> 00:26:06,440 Speaker 2: of sports. Michael Barr along with special guest hosts Vanessa Perdomo, 493 00:26:06,760 --> 00:26:11,480 Speaker 2: sports correspondent for Bloomberg Original Scarlett Foo and Damian Sasaur 494 00:26:11,520 --> 00:26:14,320 Speaker 2: are both on assignment. Time now for us to talk 495 00:26:14,400 --> 00:26:18,439 Speaker 2: some racing. The US Grand Prix is this weekend. To 496 00:26:18,520 --> 00:26:22,439 Speaker 2: get us ready for that race, hitting Austin, Texas Plus 497 00:26:22,480 --> 00:26:24,840 Speaker 2: talk about F one's growth. We are happy to welcome 498 00:26:25,080 --> 00:26:29,840 Speaker 2: James Fowls. He is team principal for Williams Racing Plus. 499 00:26:29,960 --> 00:26:33,880 Speaker 2: Joining us for the conversation is Bloomberg Pursuits Auto columnist 500 00:26:34,240 --> 00:26:38,080 Speaker 2: Hannah Elliott. James, welcome to the Bloomberg Business of Sports. 501 00:26:38,720 --> 00:26:41,159 Speaker 6: Wow, that is an entry and ah, thank you so 502 00:26:41,280 --> 00:26:44,600 Speaker 6: much off of it at least talk of a justice today. 503 00:26:44,720 --> 00:26:47,400 Speaker 1: Thank you for that man, F one. 504 00:26:47,840 --> 00:26:50,919 Speaker 2: It's now see I'm going back to the old Jackie 505 00:26:51,000 --> 00:26:54,760 Speaker 2: Stewart Day's F one, which was big then, but now 506 00:26:55,040 --> 00:26:57,520 Speaker 2: F one is off the charts. James, can you can 507 00:26:57,560 --> 00:26:58,600 Speaker 2: you talk about the growth. 508 00:26:58,880 --> 00:27:01,080 Speaker 6: I've had the pleasure of being sport for about thirty 509 00:27:01,160 --> 00:27:03,800 Speaker 6: years now. There is nothing like the last sort of 510 00:27:03,800 --> 00:27:06,120 Speaker 6: four or five years where the sport is just really 511 00:27:06,240 --> 00:27:09,399 Speaker 6: really taken off globally worldwide. It's an absolute pleasure to 512 00:27:09,440 --> 00:27:10,720 Speaker 6: be a part of it at this time. It's a 513 00:27:10,720 --> 00:27:12,879 Speaker 6: pleasure to have sort of a fan base that is 514 00:27:13,359 --> 00:27:16,919 Speaker 6: growing so tremendously. But more importantly, I think we have 515 00:27:17,160 --> 00:27:19,840 Speaker 6: really good racing now. I mean, take take this year's championship. 516 00:27:20,359 --> 00:27:23,040 Speaker 6: No one can predict who's going to win. Drivers or 517 00:27:23,080 --> 00:27:24,960 Speaker 6: constructors can't. I can't tell you it's going to be 518 00:27:25,000 --> 00:27:27,399 Speaker 6: a surprise in Abadabi when it happens, and no one 519 00:27:27,440 --> 00:27:29,960 Speaker 6: can tell you who's going to finish sixth, seventh, eighth, ninth. 520 00:27:30,240 --> 00:27:32,560 Speaker 6: It's still all up in the air. And that's what 521 00:27:32,600 --> 00:27:35,240 Speaker 6: it should be. It should be this fierce competition where 522 00:27:37,160 --> 00:27:39,359 Speaker 6: you have guy the ass dooking it out on track 523 00:27:39,760 --> 00:27:42,000 Speaker 6: without anyone being able to predict what's going to happen 524 00:27:42,000 --> 00:27:45,240 Speaker 6: in the future. And in terms of growth, I mean, 525 00:27:45,800 --> 00:27:48,720 Speaker 6: I remember just about ten years ago in the US, 526 00:27:48,720 --> 00:27:52,359 Speaker 6: for example, we had one race and even then we 527 00:27:52,680 --> 00:27:54,800 Speaker 6: didn't do a very good job at all. That that's 528 00:27:54,840 --> 00:27:58,080 Speaker 6: on us, that's on our heads. But in the last 529 00:27:58,720 --> 00:28:01,400 Speaker 6: sort of few four through three four years cer only 530 00:28:01,440 --> 00:28:03,960 Speaker 6: five years, we've gone from one race to three races, 531 00:28:04,000 --> 00:28:05,600 Speaker 6: and by the way, all three of them are what 532 00:28:05,640 --> 00:28:08,439 Speaker 6: I would call pinnacle races. They're the very top of 533 00:28:08,440 --> 00:28:11,840 Speaker 6: what you can achieve in Formula one. Between Miami, Austin, 534 00:28:11,880 --> 00:28:14,040 Speaker 6: which is what we have right now, and Las Vegas, 535 00:28:14,080 --> 00:28:16,320 Speaker 6: they're all different as well to each other. We have 536 00:28:16,359 --> 00:28:18,960 Speaker 6: a fan base that's forty four million, and that's a 537 00:28:19,000 --> 00:28:21,960 Speaker 6: large fan base. But the impressive thing is that's doubled 538 00:28:22,359 --> 00:28:26,359 Speaker 6: in the last five years, so effectively, we have this 539 00:28:26,560 --> 00:28:28,680 Speaker 6: huge growth that's taking place and I'm only talking about 540 00:28:28,680 --> 00:28:31,960 Speaker 6: the US market at the moment, and it's exciting times. 541 00:28:32,160 --> 00:28:33,520 Speaker 6: I'm really happy to be a part of it. 542 00:28:34,040 --> 00:28:35,879 Speaker 8: Yeah, I wanted to talk to you about that, James, 543 00:28:35,880 --> 00:28:38,320 Speaker 8: for sure. About you know, last year, it seems like 544 00:28:38,440 --> 00:28:40,880 Speaker 8: everyone was talking about everyone was talking about Vegas. It 545 00:28:41,000 --> 00:28:43,200 Speaker 8: was the big talk, you know, them coming back onto 546 00:28:43,240 --> 00:28:47,240 Speaker 8: the circuit and just this overall like super hype for 547 00:28:47,320 --> 00:28:50,120 Speaker 8: it and having the three races in the US. Do 548 00:28:50,160 --> 00:28:53,480 Speaker 8: you think it's warranted to have that many races here 549 00:28:53,640 --> 00:28:56,120 Speaker 8: and do you feel like Vegas lived up to the 550 00:28:56,160 --> 00:28:56,800 Speaker 8: hype last year? 551 00:28:58,640 --> 00:29:00,960 Speaker 6: So, first, I think it's one I did one hundred percent. 552 00:29:01,600 --> 00:29:04,880 Speaker 6: If any one of these three events wasn't just filled capacity, 553 00:29:05,040 --> 00:29:07,240 Speaker 6: then you'd put a debate on it. They're not. It's 554 00:29:07,320 --> 00:29:10,280 Speaker 6: quite the contrary. If I had to sort of speak 555 00:29:10,320 --> 00:29:14,840 Speaker 6: to our partners, these three races are the key events 556 00:29:14,880 --> 00:29:16,560 Speaker 6: for all of them. It was respective of what market 557 00:29:16,600 --> 00:29:19,680 Speaker 6: they're from. And so I think it's absolutely the right number, 558 00:29:19,720 --> 00:29:22,600 Speaker 6: and it's the white spread across the USA as well. 559 00:29:22,680 --> 00:29:25,760 Speaker 6: At the same time, covering all elements of it. In 560 00:29:25,840 --> 00:29:28,760 Speaker 6: terms of Vegas itself, it was. The best way I 561 00:29:28,800 --> 00:29:30,400 Speaker 6: can put it to you is it was a spectacle 562 00:29:30,480 --> 00:29:34,320 Speaker 6: one I will never forget. It was extraordinary. There's some 563 00:29:34,440 --> 00:29:38,160 Speaker 6: races that are just about It could be about the circuit, 564 00:29:38,200 --> 00:29:40,280 Speaker 6: or it can be about the city. Vegas was a 565 00:29:40,320 --> 00:29:43,680 Speaker 6: show beyond anything I've seen ever in the sport, and 566 00:29:43,720 --> 00:29:45,680 Speaker 6: in a good way, not in a bad way at all. 567 00:29:45,680 --> 00:29:48,680 Speaker 6: But it's carved out its own niche, its own way 568 00:29:48,680 --> 00:29:53,000 Speaker 6: of operating, its own element, and now I absolutely think 569 00:29:53,000 --> 00:29:54,720 Speaker 6: it's deserving of its place in the calendar. 570 00:29:55,840 --> 00:29:59,120 Speaker 5: James, I'm really curious. You know, we're talking about the 571 00:29:59,160 --> 00:30:01,880 Speaker 5: growth of of the sport in the US, and of 572 00:30:01,920 --> 00:30:04,760 Speaker 5: course there's also been a lot of talk about expanding 573 00:30:05,880 --> 00:30:08,600 Speaker 5: the series to new entrants, and I know you've said 574 00:30:08,640 --> 00:30:13,640 Speaker 5: before you're totally open to having new teams potentially, but 575 00:30:13,680 --> 00:30:15,920 Speaker 5: you do want to make the sports sustainable for the 576 00:30:15,920 --> 00:30:18,480 Speaker 5: ten teams that are in the race. Can you talk 577 00:30:18,520 --> 00:30:21,040 Speaker 5: a little bit more about what you mean when you say. 578 00:30:20,840 --> 00:30:25,960 Speaker 6: That, Yeah, definitely. So I'll take Williams very specifically. Williams 579 00:30:26,040 --> 00:30:29,080 Speaker 6: is an organization with great success in this history, second 580 00:30:29,080 --> 00:30:32,880 Speaker 6: most successful team in Formula One, We've obviously been around 581 00:30:32,920 --> 00:30:35,040 Speaker 6: for a few years which has allowed us time to 582 00:30:35,080 --> 00:30:38,240 Speaker 6: do that. But only Ferrari has more championships than Williams 583 00:30:38,240 --> 00:30:41,400 Speaker 6: does in the sport. So that gives you a really 584 00:30:41,440 --> 00:30:44,000 Speaker 6: good grounding as to where Williams is and why, by 585 00:30:44,040 --> 00:30:46,680 Speaker 6: the way, I left the comfort of Mercedes Everything, we 586 00:30:46,760 --> 00:30:50,360 Speaker 6: want everything for eight years. Why I came here, It's 587 00:30:50,440 --> 00:30:53,280 Speaker 6: because you get an opportunity to take a team with 588 00:30:53,440 --> 00:30:56,080 Speaker 6: such a heritage back to front as a butt to it. 589 00:30:56,840 --> 00:30:59,880 Speaker 6: For about twenty years, Williams didn't have the investment required 590 00:31:00,080 --> 00:31:02,760 Speaker 6: to it as the sport effectively was moving and changing. 591 00:31:03,600 --> 00:31:06,280 Speaker 6: These teams required you to have investors that were prepared 592 00:31:06,320 --> 00:31:08,560 Speaker 6: to lose money, a lot of money. And where we 593 00:31:08,600 --> 00:31:11,160 Speaker 6: are today is I have. I'm really fortunate with Dalton 594 00:31:11,280 --> 00:31:13,480 Speaker 6: that they understand what the journey's about. They understand this 595 00:31:13,560 --> 00:31:16,240 Speaker 6: is a journey about taking a team with the huge 596 00:31:16,280 --> 00:31:18,680 Speaker 6: presence that Williams has back to the front of the grid. 597 00:31:18,920 --> 00:31:22,600 Speaker 6: There's a butt to it. They're investing hundreds of millions 598 00:31:22,640 --> 00:31:24,320 Speaker 6: a year more than any other team on the grid. 599 00:31:24,600 --> 00:31:28,040 Speaker 6: It's a very serious proposition. But our bottom line does 600 00:31:28,080 --> 00:31:30,000 Speaker 6: not look healthy at the moment. It won't do you 601 00:31:30,040 --> 00:31:31,600 Speaker 6: have to treat it like a startup where we have 602 00:31:31,640 --> 00:31:33,920 Speaker 6: to put in a tremendous amount for this to be 603 00:31:33,960 --> 00:31:37,280 Speaker 6: successful in the future. Today and this is a great 604 00:31:37,320 --> 00:31:39,200 Speaker 6: thing with the sport, we're in a cost cap, So 605 00:31:39,480 --> 00:31:41,320 Speaker 6: explain the cost cap first and foremost, the sort of 606 00:31:41,360 --> 00:31:43,920 Speaker 6: two elements to it. But the really important one is 607 00:31:44,400 --> 00:31:46,080 Speaker 6: we can only spend one hundred and forty five million 608 00:31:46,320 --> 00:31:50,520 Speaker 6: US on effectively building the cars and operating the cars. 609 00:31:50,560 --> 00:31:52,000 Speaker 6: And that's a really good thing. I think it's brought 610 00:31:52,040 --> 00:31:54,400 Speaker 6: the teams closer together, but it's now made it into 611 00:31:54,440 --> 00:31:57,480 Speaker 6: a business. So finally I know there's an end stop 612 00:31:57,480 --> 00:31:59,040 Speaker 6: to how much I can spend and an end stop 613 00:31:59,040 --> 00:32:00,720 Speaker 6: to how much others can spend as well. At the 614 00:32:00,720 --> 00:32:05,040 Speaker 6: same time, we are still very negative, so we're putting in, 615 00:32:05,040 --> 00:32:06,600 Speaker 6: as I said, about one hundred million or so. Our 616 00:32:06,600 --> 00:32:09,560 Speaker 6: accounts came out recently. You'll see those numbers, and by 617 00:32:09,560 --> 00:32:12,600 Speaker 6: any standard of any company in the world, that's enormous. 618 00:32:13,320 --> 00:32:16,120 Speaker 6: But there's some good news. The top teams, the top 619 00:32:16,160 --> 00:32:19,400 Speaker 6: one or two are now break even to slightly profitable 620 00:32:19,480 --> 00:32:21,760 Speaker 6: because the cost caps limited what they can spend, and 621 00:32:21,880 --> 00:32:25,880 Speaker 6: sponsorship partners and even the business is growing enough that 622 00:32:25,920 --> 00:32:28,320 Speaker 6: allows them to be in that position. And what I've said, 623 00:32:28,520 --> 00:32:30,560 Speaker 6: and what I think is the right direction of travel 624 00:32:30,640 --> 00:32:33,280 Speaker 6: is just give us a moment while we get all 625 00:32:33,320 --> 00:32:35,760 Speaker 6: ten teams up to a position where we're not necessarily 626 00:32:35,760 --> 00:32:38,840 Speaker 6: making profit, but it's just financially stable because the first 627 00:32:38,880 --> 00:32:40,920 Speaker 6: time in a long long time where we're not questioning 628 00:32:40,920 --> 00:32:43,360 Speaker 6: whether one of the teams will disappear next year because 629 00:32:43,360 --> 00:32:45,960 Speaker 6: it's investment at a high level required for eight of 630 00:32:45,960 --> 00:32:48,120 Speaker 6: the teams in the grid. And at that point then 631 00:32:48,160 --> 00:32:51,520 Speaker 6: growth absolutely should be on the radar. We're just not 632 00:32:51,640 --> 00:32:52,320 Speaker 6: quite there yet. 633 00:32:53,440 --> 00:32:57,840 Speaker 2: There is some promising news about the continuous growth of 634 00:32:57,920 --> 00:33:03,120 Speaker 2: Formula one. Years ago, Toyota withdrew and now they're coming back. 635 00:33:03,120 --> 00:33:05,800 Speaker 2: I want to explain though they're coming back as a 636 00:33:05,880 --> 00:33:12,800 Speaker 2: technical partnership with has F one Racing. Is that going 637 00:33:12,880 --> 00:33:16,719 Speaker 2: to expand maybe to not just has maybe to you 638 00:33:16,760 --> 00:33:19,240 Speaker 2: guys and other teams down the line. 639 00:33:20,200 --> 00:33:24,480 Speaker 6: I think Toyota will probably put focus on one organization. 640 00:33:24,520 --> 00:33:27,280 Speaker 6: It's very rare for an OEM to spread themselves across 641 00:33:27,400 --> 00:33:32,520 Speaker 6: multiple So you summarized it well, Actually this goes into 642 00:33:32,560 --> 00:33:34,960 Speaker 6: really well with what I was saying before I was 643 00:33:35,000 --> 00:33:37,239 Speaker 6: a part of a Honda back in two thousand and 644 00:33:37,280 --> 00:33:39,880 Speaker 6: eight where we had the financial crisis and that's where 645 00:33:39,920 --> 00:33:43,160 Speaker 6: Toyota and Honda stopped overnight, literally from one day to 646 00:33:43,160 --> 00:33:47,240 Speaker 6: the next time I lost my job. I'm glad Toyota 647 00:33:47,320 --> 00:33:49,120 Speaker 6: coming back in. I think it shows you the strength 648 00:33:49,160 --> 00:33:52,000 Speaker 6: of the business now has And what Toyota have realized 649 00:33:52,080 --> 00:33:53,720 Speaker 6: is we don't have to do this by calling the 650 00:33:53,720 --> 00:33:55,720 Speaker 6: team Toyota. What we need to do is just bring 651 00:33:55,720 --> 00:33:58,840 Speaker 6: in our technical expertise to an organization which is has 652 00:33:59,000 --> 00:34:03,200 Speaker 6: in the circumstance and allow us to use some of 653 00:34:03,240 --> 00:34:07,200 Speaker 6: the faculties, some of the experience, some of the organization 654 00:34:07,280 --> 00:34:09,920 Speaker 6: that we have to make it stronger. That is great 655 00:34:09,920 --> 00:34:11,440 Speaker 6: for the sport. And I don't think you've seen the 656 00:34:11,520 --> 00:34:13,160 Speaker 6: end of OEMs joining. I think there's a few other 657 00:34:13,200 --> 00:34:15,520 Speaker 6: OEMs on the sidelines that the one to come in 658 00:34:15,520 --> 00:34:16,239 Speaker 6: in a similar way. 659 00:34:16,400 --> 00:34:20,359 Speaker 8: Absolutely, And James, you spoke with Bloomberg earlier, and you know, 660 00:34:20,440 --> 00:34:23,400 Speaker 8: you kind of alluded to the fact that or not alluded. 661 00:34:23,520 --> 00:34:25,560 Speaker 8: You know, you said that you guys are really focused 662 00:34:25,600 --> 00:34:28,239 Speaker 8: on the future and looking forward to these new regulations 663 00:34:28,239 --> 00:34:31,400 Speaker 8: in twenty twenty six. Can you tell us why you 664 00:34:31,440 --> 00:34:33,360 Speaker 8: know you're so focused on the future and what you 665 00:34:33,440 --> 00:34:36,320 Speaker 8: think those new regulations are going to do for a oileriness. 666 00:34:35,920 --> 00:34:41,200 Speaker 6: Raising, Yeah, definitely. So I mean, first, it doesn't mean 667 00:34:41,280 --> 00:34:44,279 Speaker 6: we're going to fall back in twenty four to twenty five, 668 00:34:44,320 --> 00:34:46,759 Speaker 6: not at all. We were investing significantly and we have 669 00:34:46,760 --> 00:34:48,800 Speaker 6: some low hanging fruit to still pick up and performance. 670 00:34:49,680 --> 00:34:53,719 Speaker 6: But twenty twenty six is the largest regulation change since 671 00:34:53,719 --> 00:34:55,640 Speaker 6: I've been in the sport in thirty years. We've never 672 00:34:55,760 --> 00:34:58,120 Speaker 6: changed the power unit and the chassis to this level 673 00:34:58,480 --> 00:35:01,000 Speaker 6: in one year before. It's a complet e leaked shake 674 00:35:01,080 --> 00:35:03,680 Speaker 6: up of everything we've known and everything we will know 675 00:35:03,760 --> 00:35:06,959 Speaker 6: in the future, and it's a good thing. It creates opportunity. 676 00:35:07,920 --> 00:35:10,719 Speaker 6: In twenty twenty five, I think you're going to see 677 00:35:10,719 --> 00:35:12,760 Speaker 6: one of the best championships we've seen for a while, 678 00:35:13,160 --> 00:35:16,600 Speaker 6: because you're going to have McLaren, red Bull, Mercedes Ferrari 679 00:35:17,160 --> 00:35:19,920 Speaker 6: all fighting for that championship and you can't let go. 680 00:35:20,200 --> 00:35:22,080 Speaker 6: I've been in that position before, when you're fighting for 681 00:35:22,120 --> 00:35:24,279 Speaker 6: a championship, you've got to fight tooth and now you've 682 00:35:24,280 --> 00:35:27,279 Speaker 6: got to invest into it, and that creates opportunity for me. 683 00:35:27,440 --> 00:35:30,080 Speaker 6: It creates opportunity because in twenty twenty six. I can 684 00:35:30,120 --> 00:35:33,399 Speaker 6: put our money in basically making sure that our car 685 00:35:33,480 --> 00:35:35,360 Speaker 6: is in the wind tunnel before anyone else's, that we 686 00:35:35,440 --> 00:35:38,000 Speaker 6: develop it before anyone else's, that we put our time, 687 00:35:38,040 --> 00:35:40,000 Speaker 6: we source an effort into it. Because it's a clean 688 00:35:40,040 --> 00:35:42,560 Speaker 6: slate from an engineering perspective, I can throw out what 689 00:35:42,560 --> 00:35:45,160 Speaker 6: we've done for the last four or five years and 690 00:35:45,239 --> 00:35:47,520 Speaker 6: focus on the future, which is exactly what we're doing now. 691 00:35:47,840 --> 00:35:49,640 Speaker 6: So if I give you a sort of construct of 692 00:35:49,640 --> 00:35:52,040 Speaker 6: our team, it's about a thousand people, but we've got 693 00:35:52,040 --> 00:35:54,920 Speaker 6: around about three hundred of those today, the twenty twenty 694 00:35:54,920 --> 00:35:57,439 Speaker 6: four working on that twenty six car. 695 00:35:57,719 --> 00:36:02,200 Speaker 5: James, I'm really curious, you know, speaking about engineering and technology, 696 00:36:02,200 --> 00:36:07,200 Speaker 5: of course, but I'm also curious about brain power. And 697 00:36:07,280 --> 00:36:09,560 Speaker 5: I'm thinking of Adrian Newey of course, leaving a Red 698 00:36:09,600 --> 00:36:13,719 Speaker 5: Bull going to Acid Martin. Obviously you're, you know, a 699 00:36:13,719 --> 00:36:16,759 Speaker 5: bit of an arms length away from that. But how 700 00:36:16,880 --> 00:36:22,799 Speaker 5: much can one person potentially change an organization, you know, 701 00:36:23,000 --> 00:36:27,440 Speaker 5: just in general, and really you know, where are you 702 00:36:27,480 --> 00:36:31,200 Speaker 5: looking for talent and people as you build the team 703 00:36:31,239 --> 00:36:31,880 Speaker 5: for the future. 704 00:36:32,239 --> 00:36:35,880 Speaker 6: So starting with Adrian, I mean, you don't get more 705 00:36:35,920 --> 00:36:38,239 Speaker 6: successful than him in the sports. I have a good 706 00:36:38,320 --> 00:36:41,120 Speaker 6: number of championships on my belt. He tranced me by 707 00:36:41,120 --> 00:36:45,120 Speaker 6: a long way. He's an exceptional individual, exceptional character, and 708 00:36:45,200 --> 00:36:48,160 Speaker 6: I had the privilege really of spending nearly a full 709 00:36:48,200 --> 00:36:49,960 Speaker 6: day with him. Actually we both went to Wimbledon at 710 00:36:49,920 --> 00:36:52,520 Speaker 6: the same time coincidence, but we caught up on the 711 00:36:52,600 --> 00:36:56,440 Speaker 6: day and I think I think the conclusion really that 712 00:36:56,520 --> 00:36:59,759 Speaker 6: I came to at the time was any team would 713 00:36:59,760 --> 00:37:02,279 Speaker 6: be for it to have him full stop. In the 714 00:37:02,280 --> 00:37:05,000 Speaker 6: case of Williams, we have so much foundation work that 715 00:37:05,040 --> 00:37:07,800 Speaker 6: we need to do before someone of his caliber would 716 00:37:07,800 --> 00:37:11,439 Speaker 6: make a substantial difference, and I didn't want to bring 717 00:37:11,480 --> 00:37:14,080 Speaker 6: in someone that would be frustrated. In fact, by that 718 00:37:14,200 --> 00:37:17,799 Speaker 6: I mean Williams. He's got some incredible people that work 719 00:37:17,920 --> 00:37:20,240 Speaker 6: there night. If you ask them to do something, they'll 720 00:37:20,480 --> 00:37:22,759 Speaker 6: give up everything for you that they're driven by that, 721 00:37:22,800 --> 00:37:24,480 Speaker 6: But we don't have the infrastructure in place at the 722 00:37:24,520 --> 00:37:26,920 Speaker 6: moment that delivers on the back end of that. In 723 00:37:26,960 --> 00:37:30,800 Speaker 6: the case of one person answering your question, I personally 724 00:37:30,800 --> 00:37:32,759 Speaker 6: believe that the sport has changed. We're not in a 725 00:37:32,800 --> 00:37:36,160 Speaker 6: situation anymore where one person is the difference between winning 726 00:37:36,200 --> 00:37:38,560 Speaker 6: or losing. It is about a thousand people pointing the 727 00:37:38,600 --> 00:37:42,040 Speaker 6: right way and working together. Now, leadership can obviously point 728 00:37:42,040 --> 00:37:44,120 Speaker 6: people the right way, but the point I'm trying to 729 00:37:44,160 --> 00:37:47,080 Speaker 6: make is it's not about one individual anymore. It's about 730 00:37:48,000 --> 00:37:52,520 Speaker 6: one hundred to five hundred working together in harmony, synced up, 731 00:37:52,880 --> 00:37:55,120 Speaker 6: and that's how you get not just success in one year, 732 00:37:55,160 --> 00:37:57,880 Speaker 6: but continued success across many, many years. 733 00:37:58,800 --> 00:38:02,200 Speaker 2: Our thanks to William's Racing Team principal James Fowls for 734 00:38:02,280 --> 00:38:05,480 Speaker 2: joining us, plus a special thank you to both Bloomberg 735 00:38:05,520 --> 00:38:10,560 Speaker 2: Pursuits Auto columnist Hannah Elliott and Bloomberg Original Sports correspondent 736 00:38:11,040 --> 00:38:15,240 Speaker 2: Vanessa Perdomo for guest hosting today, And of course thank 737 00:38:15,320 --> 00:38:18,240 Speaker 2: you for joining us on the Bloomberg Business of Sports. 738 00:38:18,400 --> 00:38:21,239 Speaker 2: We are here each and every week at the same time. 739 00:38:21,280 --> 00:38:24,719 Speaker 2: Plus wherever you get your podcasts, I'm Michael Barn. Tune 740 00:38:24,760 --> 00:38:26,840 Speaker 2: in again next week for the latest on the stories 741 00:38:26,920 --> 00:38:29,799 Speaker 2: moving big old money in the world of sports. You're 742 00:38:29,800 --> 00:38:34,240 Speaker 2: listening to Bloomberg Business of Sports Bloomberg Radio around the world.