1 00:00:00,720 --> 00:00:04,800 Speaker 1: This is Bloomberg Business of Sports where in a situation 2 00:00:04,880 --> 00:00:07,400 Speaker 1: that we haven't dealt with in modern times, the pandemic 3 00:00:07,440 --> 00:00:11,320 Speaker 1: here has really accelerated the investments that we've been advocating 4 00:00:11,360 --> 00:00:13,640 Speaker 1: for for a year. From a macro standpoint, I think 5 00:00:13,680 --> 00:00:16,919 Speaker 1: our sport industry is really forced to look at the 6 00:00:17,000 --> 00:00:20,079 Speaker 1: business a little bit differently. In depth conversations with the 7 00:00:20,239 --> 00:00:23,439 Speaker 1: leaders in the sports industry and sport, there's a good admiration. 8 00:00:23,600 --> 00:00:26,000 Speaker 1: We're still moving forward part of something much bigger than 9 00:00:26,000 --> 00:00:27,880 Speaker 1: the sport right now, the health and sastry of our 10 00:00:27,880 --> 00:00:30,800 Speaker 1: stakeholders are real smart important every moment. I think we're 11 00:00:30,800 --> 00:00:33,360 Speaker 1: all from a business respective thinking about the impact that 12 00:00:33,400 --> 00:00:36,519 Speaker 1: the virus is having across the country. In Bloomberg Business 13 00:00:36,520 --> 00:00:40,720 Speaker 1: of Sports from Bloomberg Radio, Hi, I'm Jason Kelly, Mike Lynch, 14 00:00:40,840 --> 00:00:43,400 Speaker 1: and I'm Michael bar Every week of this time plus 15 00:00:43,479 --> 00:00:46,000 Speaker 1: Mondays and Wednesdays, we explore the big money issues in 16 00:00:46,040 --> 00:00:49,080 Speaker 1: the world of sports. We have a jam packed show 17 00:00:49,159 --> 00:00:52,200 Speaker 1: for you today. Coming up, we're breaking down the business 18 00:00:52,240 --> 00:01:05,440 Speaker 1: of horse racing with Churchill Down CEO Bill carstent Well. 19 00:01:05,480 --> 00:01:08,480 Speaker 1: I think we're going in a worm hole into the 20 00:01:08,520 --> 00:01:11,080 Speaker 1: head of Michael Barr, this is what he dreams about 21 00:01:11,400 --> 00:01:14,759 Speaker 1: this week the Kentucky Derby. Really excited for that conversation. Plus, 22 00:01:14,760 --> 00:01:17,400 Speaker 1: we're gonna hear some of my interview with Endeavor CEO 23 00:01:17,520 --> 00:01:21,880 Speaker 1: Ari Emmanuel. He took his company public this week and 24 00:01:22,000 --> 00:01:25,040 Speaker 1: the market seems to like it. This was an I 25 00:01:25,200 --> 00:01:27,679 Speaker 1: p O that has been long in the making. Word 26 00:01:27,720 --> 00:01:30,720 Speaker 1: to talk about UFC and a lot of his sports 27 00:01:30,720 --> 00:01:34,160 Speaker 1: holdings and how we're going to be consuming sports going forward. 28 00:01:34,160 --> 00:01:36,520 Speaker 1: That's straight ahead on the Blueberg Business of Sports show. 29 00:01:36,560 --> 00:01:38,840 Speaker 1: But first, guys, let's talk about some of the things 30 00:01:38,840 --> 00:01:42,360 Speaker 1: that are going on in the business world and the 31 00:01:42,400 --> 00:01:44,520 Speaker 1: business of sports. You know. One of the things that 32 00:01:44,560 --> 00:01:47,280 Speaker 1: I did talk to Ari Emmanuel about is how people 33 00:01:47,319 --> 00:01:51,120 Speaker 1: are consuming and guess what, They're still watching TV for 34 00:01:51,240 --> 00:01:54,920 Speaker 1: sports in many ways, and a reminder of that Lynchy 35 00:01:54,960 --> 00:02:00,760 Speaker 1: Hockey doing a new broadcast deal and not surprising, there's 36 00:02:00,800 --> 00:02:03,680 Speaker 1: TV and a little bit of streaming mixed in there. 37 00:02:04,000 --> 00:02:05,280 Speaker 1: What do you make of it? Well, I think the 38 00:02:05,280 --> 00:02:07,800 Speaker 1: big loser is NBC, who's had hockey for the last 39 00:02:07,840 --> 00:02:10,160 Speaker 1: sixteen years and done a very credible job for the 40 00:02:10,240 --> 00:02:13,040 Speaker 1: league and exposing it to different areas of the country. 41 00:02:13,520 --> 00:02:16,520 Speaker 1: But now this new deal of with ESPN is going 42 00:02:16,560 --> 00:02:19,560 Speaker 1: to split with Turner Sports. ESPN will have four Stanley 43 00:02:19,560 --> 00:02:22,520 Speaker 1: Cup Finals. T n T or TBS will have three 44 00:02:22,560 --> 00:02:25,200 Speaker 1: of them over seven years, but they also have a 45 00:02:25,240 --> 00:02:27,359 Speaker 1: different There's a lot of platforms here and there's a 46 00:02:27,400 --> 00:02:29,880 Speaker 1: lot going on. Remember t n T has Major League Baseball, 47 00:02:29,919 --> 00:02:31,640 Speaker 1: they have the NBA, they got the n C Double 48 00:02:31,680 --> 00:02:34,000 Speaker 1: A Tournament. But they have a deal now with HBO 49 00:02:34,080 --> 00:02:36,400 Speaker 1: Max in which they could be streaming some of the 50 00:02:36,520 --> 00:02:39,639 Speaker 1: National Hockey League games, much like the package that ESPN has. 51 00:02:39,720 --> 00:02:41,720 Speaker 1: So I guess the ultimate winner is the hockey fan. 52 00:02:42,040 --> 00:02:46,040 Speaker 1: There's more platforms to watch National Hockey League games and 53 00:02:46,040 --> 00:02:48,639 Speaker 1: and they'll be broadcast all over the place. Yeah, I mean, 54 00:02:48,800 --> 00:02:53,200 Speaker 1: I am fascinated by this shift to streaming. It feels 55 00:02:53,200 --> 00:02:56,720 Speaker 1: like the future. We know that's how people are consuming it. 56 00:02:57,200 --> 00:03:00,840 Speaker 1: Michael Barr, I mean, I'm not sure that that is 57 00:03:01,080 --> 00:03:03,960 Speaker 1: universal in many ways, but hockey does have an issue 58 00:03:03,960 --> 00:03:06,760 Speaker 1: where it needs to get a more diverse set of fans. 59 00:03:06,760 --> 00:03:09,240 Speaker 1: It needs to get a younger group of fans, and 60 00:03:09,280 --> 00:03:12,120 Speaker 1: so you gotta go to where they're watching. That is 61 00:03:12,160 --> 00:03:15,799 Speaker 1: where everybody's going. They're going to the streaming services in fact, 62 00:03:15,919 --> 00:03:20,080 Speaker 1: if a television of all the television makers want to 63 00:03:20,280 --> 00:03:24,280 Speaker 1: make some money, put that app on your TV automatically, 64 00:03:24,840 --> 00:03:27,560 Speaker 1: and I bet you people like, oh, well wait, this 65 00:03:27,639 --> 00:03:30,080 Speaker 1: has the streaming app that I want on it, so 66 00:03:30,120 --> 00:03:32,040 Speaker 1: I'll just go ahead and buy it. Well, I mean, 67 00:03:32,120 --> 00:03:35,240 Speaker 1: I will tell you that buying a TV these days 68 00:03:35,920 --> 00:03:38,760 Speaker 1: is an interesting process because so much of the stuff 69 00:03:38,800 --> 00:03:43,200 Speaker 1: does come preloaded, and that is how that's how we're 70 00:03:43,200 --> 00:03:45,640 Speaker 1: gonna be watching all this stuff. And I watched March 71 00:03:45,800 --> 00:03:49,080 Speaker 1: Madness through all those apps and didn't feel like I 72 00:03:49,440 --> 00:03:53,200 Speaker 1: missed miss much in that process. So the world is changing. 73 00:03:53,520 --> 00:03:58,160 Speaker 1: Let you Another story that I found fascinating is the 74 00:03:58,320 --> 00:04:02,000 Speaker 1: MLB expansion fees could be two point two billion dollars, 75 00:04:02,040 --> 00:04:04,480 Speaker 1: meaning that's what you're gonna have to pay Major League 76 00:04:04,520 --> 00:04:09,360 Speaker 1: Baseball if you want to own one of these expansion teams. 77 00:04:09,400 --> 00:04:12,640 Speaker 1: This came in a discussion with our friends over at 78 00:04:12,680 --> 00:04:17,240 Speaker 1: Sportico by the MLB Commissioner Rob Manfred. Now there are 79 00:04:17,279 --> 00:04:23,119 Speaker 1: no expansion plans right now, but which I actually begs 80 00:04:23,160 --> 00:04:26,080 Speaker 1: the question should we be expanding baseball not to get 81 00:04:26,120 --> 00:04:29,400 Speaker 1: to extend existential around it? Lynching, I don't think we should, 82 00:04:29,480 --> 00:04:33,200 Speaker 1: because I think that it's a water down product right now, 83 00:04:33,240 --> 00:04:35,040 Speaker 1: and people are not watching it. And I think that 84 00:04:35,240 --> 00:04:38,080 Speaker 1: the more quality you have in the higher level of 85 00:04:38,279 --> 00:04:41,160 Speaker 1: play and talent will draw more fans. But they're looking 86 00:04:41,160 --> 00:04:45,880 Speaker 1: at places like Charlotte, Vegas, Montreal, Nashville, Portland, Oregon, Vancouver. 87 00:04:46,320 --> 00:04:48,120 Speaker 1: If I had to pick one of those cities right there, 88 00:04:48,120 --> 00:04:50,640 Speaker 1: I'd pick Vegas because it's working. It's gonna work for 89 00:04:50,680 --> 00:04:53,839 Speaker 1: the Raiders. It's obviously working for the Golden Knights in hockey. 90 00:04:54,040 --> 00:04:56,479 Speaker 1: Two point two billion will be the price tag. The 91 00:04:56,560 --> 00:05:00,680 Speaker 1: last time baseball expanded and the entry fee for Arizona 92 00:05:00,720 --> 00:05:03,400 Speaker 1: in Tampa Bay was a hundred and thirty million dollars. 93 00:05:03,960 --> 00:05:06,800 Speaker 1: I mean, it does tell you that if this is 94 00:05:06,839 --> 00:05:09,240 Speaker 1: the fee, if this is what they think they can get, 95 00:05:09,360 --> 00:05:13,160 Speaker 1: Michael Barr, there is still a lot of value in baseball. 96 00:05:13,360 --> 00:05:18,840 Speaker 1: And it's a reminder that sports franchises for the moment, 97 00:05:19,160 --> 00:05:23,360 Speaker 1: and we see nothing to really contradict this, with very 98 00:05:23,480 --> 00:05:29,320 Speaker 1: rare exceptions, are an appreciating asset. No one is losing 99 00:05:29,360 --> 00:05:31,840 Speaker 1: money buying sports teams. They will get the two point 100 00:05:31,839 --> 00:05:34,760 Speaker 1: two billion dollar expansion feet that I'm going to go 101 00:05:34,920 --> 00:05:39,440 Speaker 1: something that Lynch. He said, if Las Vegas. Say, for instance, 102 00:05:39,480 --> 00:05:42,160 Speaker 1: that pops up and they get a team, they're going 103 00:05:42,200 --> 00:05:44,520 Speaker 1: to have to build it in a dome because in 104 00:05:44,560 --> 00:05:47,120 Speaker 1: the daytime it's two thousand degrees. I mean, they can't 105 00:05:47,160 --> 00:05:50,200 Speaker 1: play in that and and or all the games are 106 00:05:50,240 --> 00:05:53,480 Speaker 1: gonna have to be played at night. But I could 107 00:05:53,480 --> 00:05:56,960 Speaker 1: see Las Vegas being in play with this. Yeah, it's 108 00:05:57,000 --> 00:05:59,960 Speaker 1: it's interesting too. One of the things that Commissioner Manfred's 109 00:06:00,000 --> 00:06:03,720 Speaker 1: said was that or he has said, is that Major 110 00:06:03,800 --> 00:06:07,120 Speaker 1: League Baseball will not consider expansion until the A's out 111 00:06:07,160 --> 00:06:09,920 Speaker 1: in Oakland and the Rays down to Tampa Bay get 112 00:06:10,080 --> 00:06:13,120 Speaker 1: new ballparks. There is one that has been proposed for 113 00:06:13,160 --> 00:06:17,680 Speaker 1: downtown Oakland. And what's interesting is the Race have said 114 00:06:17,720 --> 00:06:22,320 Speaker 1: they'll pursue splitting season between Tampa and Montreal starting in 115 00:06:23,720 --> 00:06:26,279 Speaker 1: Now that's a few years down the road because their 116 00:06:26,520 --> 00:06:31,800 Speaker 1: leases expiring at Tropicana Field there in the Title Town area. 117 00:06:32,040 --> 00:06:33,640 Speaker 1: I don't know. Maybe Tom Brady is going to have 118 00:06:33,680 --> 00:06:35,840 Speaker 1: something to say about that, Lynching, who knows. I mean, 119 00:06:36,960 --> 00:06:39,520 Speaker 1: a long time away for to start splitting your time. 120 00:06:40,200 --> 00:06:43,400 Speaker 1: But you know, those those long ago Expos fans, they 121 00:06:43,400 --> 00:06:48,239 Speaker 1: want baseball back in in in Montreal. I guess anything 122 00:06:48,240 --> 00:06:49,960 Speaker 1: else that jumped out of you for the week lynching 123 00:06:50,200 --> 00:06:54,120 Speaker 1: this regional sports Sinclair Os regional sports networks nearly two 124 00:06:54,160 --> 00:06:58,200 Speaker 1: billion dollars for make goods for throw eyeballs. And this 125 00:06:58,240 --> 00:07:00,320 Speaker 1: is gets back to this thing we talk about all 126 00:07:00,360 --> 00:07:03,520 Speaker 1: the time, people cutting the cord and just not watching 127 00:07:03,560 --> 00:07:06,599 Speaker 1: on on regional sports networks or cable TV. This is 128 00:07:06,640 --> 00:07:09,359 Speaker 1: going to be an ongoing discussion and a problem I 129 00:07:09,360 --> 00:07:13,280 Speaker 1: think for these regional sports networks going forward. Well and 130 00:07:13,400 --> 00:07:15,920 Speaker 1: along those lines, I mean, there was also some news 131 00:07:16,040 --> 00:07:19,559 Speaker 1: out of London from BT group, you know, saying that 132 00:07:19,920 --> 00:07:22,760 Speaker 1: they may be selling uh and they are in talks 133 00:07:22,800 --> 00:07:26,120 Speaker 1: to sell potentially all of their broadcast division when it 134 00:07:26,160 --> 00:07:29,320 Speaker 1: comes to sports BT Sport. And what caught my eye 135 00:07:29,560 --> 00:07:32,640 Speaker 1: is that two of the three bidders that are named 136 00:07:32,680 --> 00:07:37,480 Speaker 1: in this Bloomberg story from this week our streamers. One 137 00:07:37,600 --> 00:07:40,280 Speaker 1: is Amazon, which we know is part of the we've 138 00:07:40,320 --> 00:07:43,000 Speaker 1: talked about this, it was part of the group buying 139 00:07:43,040 --> 00:07:46,480 Speaker 1: the NFL broadcast rights. Disney is another. I mean, they 140 00:07:46,520 --> 00:07:49,160 Speaker 1: obviously have a streaming service, but they also own you know, 141 00:07:49,520 --> 00:07:53,160 Speaker 1: a little network called ABC but do Zone, which of 142 00:07:53,160 --> 00:07:56,960 Speaker 1: course is run by John Skipper, former skipper of ESPN. 143 00:07:57,640 --> 00:08:01,200 Speaker 1: UH I am fascinated by that because the Zone has 144 00:08:01,240 --> 00:08:04,320 Speaker 1: been a little bit of a sleeper here, Lynch, in 145 00:08:04,480 --> 00:08:09,320 Speaker 1: that you know, they've really made their bones on boxing. 146 00:08:09,520 --> 00:08:13,680 Speaker 1: It's very globally minded. But if they were to, you know, 147 00:08:13,760 --> 00:08:16,760 Speaker 1: get something that really gave them a nice foothold into 148 00:08:16,800 --> 00:08:21,120 Speaker 1: some of the more popular or mainstream as it were, sports, 149 00:08:21,120 --> 00:08:22,720 Speaker 1: that could be a big move up for them. Pt 150 00:08:22,840 --> 00:08:25,080 Speaker 1: Sport has the rights to the premiere of the Champions 151 00:08:25,160 --> 00:08:28,160 Speaker 1: League right now, and we know how lucrative those television 152 00:08:28,200 --> 00:08:31,560 Speaker 1: deals are. This is amazing, right space keep going up 153 00:08:31,640 --> 00:08:34,760 Speaker 1: and as you said, price tags for franchises keep going up. 154 00:08:34,800 --> 00:08:37,400 Speaker 1: Sports is making money. Well, the rest of the world 155 00:08:37,440 --> 00:08:39,240 Speaker 1: is trying to figure out how to make money. I mean, 156 00:08:39,280 --> 00:08:42,160 Speaker 1: it's interesting just reading this story on on the Bloomberg 157 00:08:42,240 --> 00:08:45,600 Speaker 1: some nice reporting by Thomas Seal that the division inside 158 00:08:45,600 --> 00:08:49,200 Speaker 1: BT quote carries zero value in some of the parts 159 00:08:49,280 --> 00:08:55,520 Speaker 1: equity valuation, and so this is really about shedding a 160 00:08:55,640 --> 00:08:58,319 Speaker 1: non core asset, which to your point, Lynchy, I mean, 161 00:08:58,400 --> 00:09:00,320 Speaker 1: this is really me sort of geeking out from a 162 00:09:00,440 --> 00:09:03,480 Speaker 1: business perspective. But and you know, you can't take the 163 00:09:03,480 --> 00:09:05,920 Speaker 1: guy out of Bloomberg. It is you know, it's a 164 00:09:05,960 --> 00:09:08,480 Speaker 1: situation where it does have a tremendous amount of value 165 00:09:08,760 --> 00:09:13,160 Speaker 1: outside of its existing home, so eager to see what 166 00:09:13,280 --> 00:09:15,959 Speaker 1: happens there. Coming up on the show, we're going to 167 00:09:16,040 --> 00:09:20,040 Speaker 1: talk about the business of horse racing and so much more. 168 00:09:20,120 --> 00:09:23,880 Speaker 1: Down in Louisville, The Triple Crown kicks off this weekend. 169 00:09:24,240 --> 00:09:26,720 Speaker 1: Bill Carstandin is going to join us. He's the CEO 170 00:09:26,880 --> 00:09:29,440 Speaker 1: of Churchill Downs. Of course, that is the home of 171 00:09:29,480 --> 00:09:32,120 Speaker 1: the Kentucky Derby. But first I want to play a 172 00:09:32,160 --> 00:09:35,480 Speaker 1: part of the interview that I did earlier this week 173 00:09:35,559 --> 00:09:40,000 Speaker 1: with Ari Emmanuel. You know him as arguably the most 174 00:09:40,240 --> 00:09:43,920 Speaker 1: famous agent in the modern world, but he's now something 175 00:09:43,960 --> 00:09:47,880 Speaker 1: of a media mogul. His company, Endeavor, went public on 176 00:09:47,920 --> 00:09:51,040 Speaker 1: the New York Stock Exchange this week after a little 177 00:09:51,080 --> 00:09:53,959 Speaker 1: bit of a windy road getting there. And we started 178 00:09:53,960 --> 00:09:57,400 Speaker 1: by talking about something that happened this week right here 179 00:09:57,440 --> 00:10:00,560 Speaker 1: in New York, which is that the mayor say the 180 00:10:00,640 --> 00:10:03,160 Speaker 1: city is going to be open in July, and certainly 181 00:10:03,520 --> 00:10:05,480 Speaker 1: that's good for business. Well, I would say to you, 182 00:10:05,520 --> 00:10:07,840 Speaker 1: we're different from most people because we're global. Where we 183 00:10:07,880 --> 00:10:11,720 Speaker 1: sit on the Taste Festival series in London were at capacity, 184 00:10:11,840 --> 00:10:13,760 Speaker 1: but we've had to add more days because of the 185 00:10:13,800 --> 00:10:17,520 Speaker 1: demand on our festival from on location that we have 186 00:10:17,559 --> 00:10:20,000 Speaker 1: a business with the NFL. We had a concert in 187 00:10:20,040 --> 00:10:23,000 Speaker 1: the first quarter of twenty two sold out in less 188 00:10:23,040 --> 00:10:25,720 Speaker 1: than ninety minutes, and we had to add an extra weekend. 189 00:10:26,000 --> 00:10:28,120 Speaker 1: When we put our UFC fights, the three in a row, 190 00:10:28,280 --> 00:10:31,280 Speaker 1: they sold out immediately. We had our biggest packages for 191 00:10:31,320 --> 00:10:35,040 Speaker 1: the Super Bowl coming up in Los Angeles for on location, 192 00:10:35,559 --> 00:10:38,679 Speaker 1: the ten biggest tickets we've ever sold sold out. The 193 00:10:38,720 --> 00:10:41,560 Speaker 1: movie theater business, we are in all those areas. So 194 00:10:41,679 --> 00:10:44,800 Speaker 1: from our perspective, you know, you can't. The good thing 195 00:10:44,800 --> 00:10:47,200 Speaker 1: about the company is you can't say were We can't 196 00:10:47,240 --> 00:10:48,920 Speaker 1: position us in one area, And I would say to 197 00:10:48,960 --> 00:10:51,400 Speaker 1: you during COVID, and that's what was the benefit of 198 00:10:51,440 --> 00:10:54,280 Speaker 1: us during COVID. We did eight percent of our Even 199 00:10:54,440 --> 00:10:57,480 Speaker 1: during COVID, the UFC without audiences, which is a big 200 00:10:57,480 --> 00:11:00,160 Speaker 1: player for US, and commercial pay per views, we eat 201 00:11:00,200 --> 00:11:03,520 Speaker 1: our numbers by ten percent. So we are, um I think, 202 00:11:03,600 --> 00:11:06,960 Speaker 1: the best position for where the world's going and distribution 203 00:11:07,040 --> 00:11:10,200 Speaker 1: at all forms. And so talk to me more about 204 00:11:10,280 --> 00:11:13,240 Speaker 1: that UFC experience and we can talk more about sort 205 00:11:13,240 --> 00:11:15,080 Speaker 1: of the structure of the deal. In a second but 206 00:11:15,440 --> 00:11:18,600 Speaker 1: the learnings from that because some of that has got 207 00:11:18,640 --> 00:11:21,480 Speaker 1: to stick. I would imagine in terms of how people 208 00:11:21,559 --> 00:11:25,479 Speaker 1: consume it and therefore how you produce it. You understand 209 00:11:25,559 --> 00:11:28,280 Speaker 1: content better than anyone. How does it change what you 210 00:11:28,360 --> 00:11:31,000 Speaker 1: do going forward? Well, here's what I would say to 211 00:11:31,040 --> 00:11:34,440 Speaker 1: you is, you know, in we have an incredible partnership 212 00:11:34,840 --> 00:11:38,719 Speaker 1: with Disney and ESPN. They've been incredible partners and we 213 00:11:39,120 --> 00:11:40,719 Speaker 1: have kind of figured out we have a direct to 214 00:11:40,720 --> 00:11:44,280 Speaker 1: consumer business on fight Pass as a global product. Um. 215 00:11:44,320 --> 00:11:46,560 Speaker 1: We we do digital. You know, we have a great 216 00:11:46,600 --> 00:11:49,680 Speaker 1: deal with TikTok Um that they've given to our support. 217 00:11:49,920 --> 00:11:52,280 Speaker 1: We're doing n f T s right now with Dappler Labs. 218 00:11:52,280 --> 00:11:54,160 Speaker 1: We were one of the first investors in dapple Has 219 00:11:54,160 --> 00:11:56,040 Speaker 1: about two years ago. We'll be the second sport after 220 00:11:56,080 --> 00:11:58,679 Speaker 1: the NBA. So we have looked at the world and 221 00:11:58,800 --> 00:12:02,360 Speaker 1: kind of how our thesis distributions of commodity and how 222 00:12:02,400 --> 00:12:05,880 Speaker 1: we distribute things and make things aware, um. And so 223 00:12:05,920 --> 00:12:08,240 Speaker 1: we've used all of our knowledge to do that, and 224 00:12:08,280 --> 00:12:09,920 Speaker 1: then we bring it back to the company. We use 225 00:12:09,960 --> 00:12:11,760 Speaker 1: it for clients in all forms, whether that be a 226 00:12:11,760 --> 00:12:15,440 Speaker 1: Wimbledon client, a movie star, a movie etcetera. So that's 227 00:12:15,440 --> 00:12:18,680 Speaker 1: how we we we approached the business. We use other 228 00:12:18,920 --> 00:12:21,880 Speaker 1: all the elements that we have access to globally, and 229 00:12:21,920 --> 00:12:25,000 Speaker 1: we kind of utilize that throughout the company. You know, 230 00:12:25,120 --> 00:12:30,280 Speaker 1: this whole notion of ownership of content and ownership of businesses. 231 00:12:30,360 --> 00:12:33,160 Speaker 1: I feel like you've been talking about that for some time. 232 00:12:33,360 --> 00:12:36,319 Speaker 1: The world has certainly caught up in that regard, and 233 00:12:36,360 --> 00:12:38,880 Speaker 1: we talked about every time, all the time when we talked. 234 00:12:39,040 --> 00:12:41,040 Speaker 1: You know, we started the business based on George Guildy. 235 00:12:41,200 --> 00:12:43,959 Speaker 1: You know, in his book Life After Television, he talks about, 236 00:12:44,200 --> 00:12:47,000 Speaker 1: you know, um, that's gonna be infinite distribution and content 237 00:12:47,040 --> 00:12:49,320 Speaker 1: is going to be more more important than anything and anything, 238 00:12:49,400 --> 00:12:51,640 Speaker 1: and that's what we built the business on that thesis, 239 00:12:51,920 --> 00:12:54,079 Speaker 1: and kind of we're in every vertical of where the 240 00:12:54,200 --> 00:12:57,440 Speaker 1: entertainment business going in. We're in fashion, we're in food 241 00:12:57,440 --> 00:12:59,760 Speaker 1: with the Taste Fellow, We're in art with Freeze, art fear, 242 00:13:00,240 --> 00:13:03,559 Speaker 1: we're in sports, were in music, were in events because 243 00:13:03,559 --> 00:13:06,560 Speaker 1: it's an experience economy. So we have used that thesis 244 00:13:06,559 --> 00:13:09,160 Speaker 1: from twenty six years ago and kept on expanding on it, 245 00:13:09,240 --> 00:13:12,640 Speaker 1: and the world has kind of expanded its distribution platforms. 246 00:13:12,840 --> 00:13:14,839 Speaker 1: How we used to define content to today's how we 247 00:13:14,920 --> 00:13:18,800 Speaker 1: used to define content is completely different, and we're positioned 248 00:13:18,800 --> 00:13:20,560 Speaker 1: for all of it. And that was just part of 249 00:13:20,600 --> 00:13:24,040 Speaker 1: my interview with R. Emmanuel this week his firm Endeavor 250 00:13:24,440 --> 00:13:26,560 Speaker 1: going public on the New York Stock Exchange. You can 251 00:13:26,640 --> 00:13:30,000 Speaker 1: check out that full interview at Bloomberg dot com slash 252 00:13:30,080 --> 00:13:33,920 Speaker 1: quick take. Alright, so guys, this deal with the UFC 253 00:13:34,559 --> 00:13:38,480 Speaker 1: I find to be fascinating, Lynchi, because you know, this 254 00:13:38,600 --> 00:13:43,240 Speaker 1: was a scrappy Dana White lead, you know, literally just 255 00:13:43,440 --> 00:13:47,160 Speaker 1: fighting league that has been created from the ground up 256 00:13:47,360 --> 00:13:51,480 Speaker 1: and now it is going to be fully owned by Endeavor, 257 00:13:51,600 --> 00:13:55,880 Speaker 1: and it is arguably one of the single most successful 258 00:13:55,920 --> 00:13:58,400 Speaker 1: businesses to come out of the pandemic. It is right 259 00:13:58,400 --> 00:14:01,600 Speaker 1: now the number three sport on the planet behind soccer 260 00:14:01,800 --> 00:14:05,400 Speaker 1: or football and basketball. And if anybody that doesn't think 261 00:14:05,440 --> 00:14:07,400 Speaker 1: that this stuff is real and it's staying around for 262 00:14:07,400 --> 00:14:09,880 Speaker 1: a long long time, it is here and now Endeavor 263 00:14:11,280 --> 00:14:15,920 Speaker 1: of UFC. So, Michael Barr, you know, it's it's global, 264 00:14:16,559 --> 00:14:21,840 Speaker 1: which is important. Uh, it was easily consumed during the pandemic. 265 00:14:22,360 --> 00:14:25,280 Speaker 1: It is wildly popular. As Lynch says, you know, I 266 00:14:25,280 --> 00:14:27,640 Speaker 1: think back to our conversation just to bring up a 267 00:14:27,680 --> 00:14:30,720 Speaker 1: competitor into the UFC with the Professional Fighters League that 268 00:14:30,760 --> 00:14:35,240 Speaker 1: we had just a couple weeks ago. I have to say, 269 00:14:35,280 --> 00:14:40,720 Speaker 1: I'm amazed at the resilience and the growth that is 270 00:14:40,760 --> 00:14:44,480 Speaker 1: there in that sport. We were talking about this off 271 00:14:44,560 --> 00:14:47,760 Speaker 1: air and when we had an interview with Stephanie McMahon, 272 00:14:48,920 --> 00:14:53,080 Speaker 1: my son, who is my oldest son. When I mentioned 273 00:14:53,440 --> 00:14:57,200 Speaker 1: that we're going to talk to Stephanie McMahon, he's like, who, what, where? 274 00:14:57,280 --> 00:14:59,560 Speaker 1: What time? What is going on? What's happening here? And 275 00:15:00,840 --> 00:15:05,120 Speaker 1: that shows you the popularity of sports like that, like 276 00:15:05,240 --> 00:15:08,960 Speaker 1: with the UFC, and that's something that you know it 277 00:15:09,840 --> 00:15:13,720 Speaker 1: get with the program, folks, because that's for the younger crowd, 278 00:15:13,880 --> 00:15:17,200 Speaker 1: that's what's happening. It also struck me Lynch and talking 279 00:15:17,240 --> 00:15:20,280 Speaker 1: to Ari about how sports have changed because that's not 280 00:15:20,360 --> 00:15:24,280 Speaker 1: their only UH sporting asset that they own, and they 281 00:15:24,360 --> 00:15:28,640 Speaker 1: work with a lot of athletes and entertainers. This whole 282 00:15:28,680 --> 00:15:32,840 Speaker 1: notion of athletes and entertainers taking a larger ownership steak 283 00:15:33,400 --> 00:15:36,360 Speaker 1: in the things that they're involved in. They're not just 284 00:15:36,520 --> 00:15:41,360 Speaker 1: endorsing anymore. We talk about that a lot on this program. UH. 285 00:15:41,440 --> 00:15:44,200 Speaker 1: I do also think that there are some interesting questions 286 00:15:44,240 --> 00:15:48,120 Speaker 1: to be asked and are answered them, maybe not surprisingly 287 00:15:48,160 --> 00:15:52,000 Speaker 1: with enthusiasm about people getting back back out there and 288 00:15:52,320 --> 00:15:55,320 Speaker 1: back into arenas. What do you make of that. I mean, 289 00:15:55,360 --> 00:15:57,640 Speaker 1: you're a longtime sports fan, you're there in one of 290 00:15:57,840 --> 00:16:00,800 Speaker 1: I you know, fully admit one of the greatest sports 291 00:16:00,840 --> 00:16:03,840 Speaker 1: cities in the world. Blah blah blah blah blah. Um. 292 00:16:03,880 --> 00:16:05,760 Speaker 1: But you know die hard fans who want to go 293 00:16:05,800 --> 00:16:10,400 Speaker 1: to Fenway, who you know want to go to Gillette Stadium. 294 00:16:10,520 --> 00:16:13,560 Speaker 1: Nobody really knows the future, but Ari is really predicting 295 00:16:13,680 --> 00:16:17,080 Speaker 1: a massive snap back. People really wanted to get out, 296 00:16:17,200 --> 00:16:19,560 Speaker 1: which has to be good for the business of sports. Well, 297 00:16:19,640 --> 00:16:22,640 Speaker 1: every state is different. For instance, here in Massachusetts it's 298 00:16:22,680 --> 00:16:24,520 Speaker 1: currently a twelve percent, but it's going to go to 299 00:16:24,640 --> 00:16:29,920 Speaker 1: twenty very very shortly as we inch back now. The 300 00:16:30,040 --> 00:16:32,680 Speaker 1: UFC last weekend was down in Jacksonville and they had 301 00:16:32,760 --> 00:16:36,880 Speaker 1: fifteen thousand people and they it was slammed together, no 302 00:16:37,040 --> 00:16:39,840 Speaker 1: social distancing, very few people wearing masks. They brought in 303 00:16:39,920 --> 00:16:42,680 Speaker 1: over three million dollars at the gate. Tom Brady was 304 00:16:42,720 --> 00:16:47,160 Speaker 1: sitting there a ringside timp. Tebow was sitting near ringside um. Remember, 305 00:16:47,280 --> 00:16:51,400 Speaker 1: UFC was the first sport that was up and running 306 00:16:51,440 --> 00:16:54,240 Speaker 1: after the pandemic last year, and they basically just said, 307 00:16:54,280 --> 00:16:56,840 Speaker 1: you know what, we're going rain of Shine. We're going 308 00:16:56,880 --> 00:16:58,480 Speaker 1: to find a place that wants us and what it's 309 00:16:58,480 --> 00:17:01,280 Speaker 1: gonna let us go. And they started in Florida and 310 00:17:01,480 --> 00:17:04,199 Speaker 1: they've been flourishing. Um. They had a tough, tough year 311 00:17:04,280 --> 00:17:06,160 Speaker 1: last year, but they came flying out of the gate. 312 00:17:06,240 --> 00:17:09,440 Speaker 1: People want to be back at sporting events. They want 313 00:17:09,480 --> 00:17:11,960 Speaker 1: to be New York has just increased their capacity to 314 00:17:12,240 --> 00:17:16,600 Speaker 1: I think so. And they will have no trouble selling 315 00:17:16,600 --> 00:17:18,840 Speaker 1: any of those tickets. And I thought that last year 316 00:17:19,359 --> 00:17:21,360 Speaker 1: people were gonna be very reluctant to go back into 317 00:17:21,400 --> 00:17:23,000 Speaker 1: the stadium. Well, I don't want to be the first 318 00:17:23,000 --> 00:17:24,240 Speaker 1: one to go back, and I'm not going to be 319 00:17:24,280 --> 00:17:26,760 Speaker 1: the sacrificial lamb here. But that's not the case at all. 320 00:17:26,840 --> 00:17:29,440 Speaker 1: People have vaccinated. I think people have a greater understanding 321 00:17:29,480 --> 00:17:32,720 Speaker 1: of COVID and they understand social distancing, and I think 322 00:17:32,720 --> 00:17:35,959 Speaker 1: they'll be once that those skates are open. I think 323 00:17:36,000 --> 00:17:38,400 Speaker 1: there'll be a stampede to the seats. Well, I mean, 324 00:17:38,600 --> 00:17:41,359 Speaker 1: Michael barr It it takes us back to the beginning 325 00:17:41,400 --> 00:17:44,000 Speaker 1: of this show in the conversation that we had about 326 00:17:44,359 --> 00:17:49,119 Speaker 1: streaming rights and just broadcast rights in general. But some 327 00:17:49,200 --> 00:17:51,120 Speaker 1: of them are going streaming, some of them are going 328 00:17:51,160 --> 00:17:54,080 Speaker 1: to traditional broadcast. But the fact is there's a massive 329 00:17:54,080 --> 00:17:57,840 Speaker 1: amount of value because these sports are incredibly popular, and 330 00:17:58,320 --> 00:18:00,120 Speaker 1: I think we're all going to be living in something 331 00:18:00,160 --> 00:18:03,200 Speaker 1: of a hybrid world and there's gonna be heavy demand 332 00:18:03,640 --> 00:18:06,680 Speaker 1: for those sports too to attend in person, but there's 333 00:18:06,680 --> 00:18:08,840 Speaker 1: also gonna be heavy demand to watch them on TV. 334 00:18:08,880 --> 00:18:10,439 Speaker 1: And so the way that they're produced, and that was 335 00:18:10,480 --> 00:18:13,120 Speaker 1: something that came up in the conversation with Ari as well, 336 00:18:13,359 --> 00:18:16,400 Speaker 1: things that they learned with the UFC, just about how 337 00:18:16,440 --> 00:18:20,640 Speaker 1: you put together an increasingly attractive package for the viewer 338 00:18:20,680 --> 00:18:23,320 Speaker 1: and the fan. We'll take the NFL. They're gonna be 339 00:18:23,640 --> 00:18:27,600 Speaker 1: broadcasting their Thursday games on Amazon, and if you don't 340 00:18:27,640 --> 00:18:30,040 Speaker 1: have Amazon, and better if you better get the app 341 00:18:30,080 --> 00:18:32,760 Speaker 1: because you're not going to really see the Thursday night games. 342 00:18:33,200 --> 00:18:36,840 Speaker 1: Better learn how to use my phone or put it 343 00:18:36,880 --> 00:18:39,439 Speaker 1: on my television or whatever, because that's the way the 344 00:18:39,480 --> 00:18:42,040 Speaker 1: world is going. And this was something else that came 345 00:18:42,119 --> 00:18:44,640 Speaker 1: up in the conversation that I had with Ari, was this, 346 00:18:44,840 --> 00:18:47,720 Speaker 1: you know that this evolution of talent in many ways. 347 00:18:48,119 --> 00:18:51,199 Speaker 1: And also you know sports figures. We talked about it 348 00:18:51,280 --> 00:18:53,920 Speaker 1: ad nauseum on this show. You know, just being much 349 00:18:53,920 --> 00:18:58,359 Speaker 1: more vocal about about various things out there in the world. 350 00:18:58,720 --> 00:19:01,960 Speaker 1: So now let's turn to an other very timely interview. 351 00:19:02,040 --> 00:19:06,600 Speaker 1: While Endeavor was going public, folks down in Kentucky they 352 00:19:06,640 --> 00:19:10,120 Speaker 1: were getting ready for, Yeah, the Kentucky Derby, the first 353 00:19:10,200 --> 00:19:13,000 Speaker 1: leg of the Triple Crown. They're only line. We're ready 354 00:19:13,040 --> 00:19:19,720 Speaker 1: for the start uck Chucky Derby. And we love the 355 00:19:19,800 --> 00:19:21,639 Speaker 1: sound of that bell. No one loves it more than 356 00:19:21,680 --> 00:19:25,800 Speaker 1: Michael Barr, But I digress. Today we're delighted to be 357 00:19:25,800 --> 00:19:28,359 Speaker 1: speaking with Bill Carstang, and he is the CEO of 358 00:19:28,440 --> 00:19:31,760 Speaker 1: Churchill Downs of course, home to the Kentucky Derby. Bill, 359 00:19:31,840 --> 00:19:33,720 Speaker 1: really nice to have you with us. It's obviously a 360 00:19:33,840 --> 00:19:36,840 Speaker 1: very busy week set the scene for us because obviously 361 00:19:37,000 --> 00:19:39,320 Speaker 1: this has been a crazy year leading up to this 362 00:19:39,920 --> 00:19:43,760 Speaker 1: for everyone. Uh, everything was different with the calendar last year. 363 00:19:43,800 --> 00:19:47,040 Speaker 1: But what can we expect? What are you expecting to see? 364 00:19:47,400 --> 00:19:51,240 Speaker 1: Uh this weekend they're at Churchill Downs. Well, first, it's 365 00:19:51,240 --> 00:19:54,320 Speaker 1: it's great to be back doing what we love again. 366 00:19:54,840 --> 00:19:58,199 Speaker 1: Last year was a disjointed year. With COVID and we 367 00:19:58,320 --> 00:20:01,920 Speaker 1: ended up running the derby in September, whereas it's always 368 00:20:02,000 --> 00:20:04,480 Speaker 1: run the first Saturday in May. So it's good to 369 00:20:04,480 --> 00:20:06,239 Speaker 1: be back on schedule and it's good to do it 370 00:20:06,280 --> 00:20:11,000 Speaker 1: with a crowd this year. So because of COVID restrictions, 371 00:20:11,640 --> 00:20:15,680 Speaker 1: we'll probably top out at around fifty tho spectators, and 372 00:20:16,280 --> 00:20:21,200 Speaker 1: that numbers built with some of our reserve seats, of 373 00:20:21,280 --> 00:20:24,120 Speaker 1: those depending on the section and the social distancing within 374 00:20:24,200 --> 00:20:27,280 Speaker 1: each of those sections, and then some of our general admissions. 375 00:20:27,400 --> 00:20:30,440 Speaker 1: Um we worked with the state and local authorities to 376 00:20:30,520 --> 00:20:33,800 Speaker 1: come up with a safety protocol that allowed us to 377 00:20:34,320 --> 00:20:36,600 Speaker 1: build up to a crowd number of that size. So 378 00:20:36,840 --> 00:20:39,440 Speaker 1: we're excited. It's not the normal derby of a hundred 379 00:20:39,480 --> 00:20:42,639 Speaker 1: and fifty hundred and seventy five thousand people, but it's 380 00:20:42,680 --> 00:20:46,040 Speaker 1: gonna feel great to be out there again. But Michael people, 381 00:20:46,080 --> 00:20:48,800 Speaker 1: I mean it's a lot. That's a pretty good clown. 382 00:20:48,960 --> 00:20:51,280 Speaker 1: You can get that that's way more than what you 383 00:20:51,400 --> 00:20:53,840 Speaker 1: get at Belmont of the regular day, So you know 384 00:20:54,200 --> 00:20:56,479 Speaker 1: that's pretty good. And by the way, Bill, I have 385 00:20:56,560 --> 00:21:03,200 Speaker 1: to add any horse name rock your world has my money. 386 00:21:03,400 --> 00:21:06,960 Speaker 1: But where is the industry today? You started to talk 387 00:21:07,000 --> 00:21:09,520 Speaker 1: about it with you know, with COVID and how it 388 00:21:09,720 --> 00:21:13,640 Speaker 1: really impacted the industry, but the industry in general full 389 00:21:13,680 --> 00:21:17,280 Speaker 1: horse racing. Where are we today, Well, it can depend 390 00:21:17,320 --> 00:21:19,239 Speaker 1: on the region of the country that that you're in, 391 00:21:19,440 --> 00:21:24,120 Speaker 1: but I'd start by saying, um, there's been online wagering 392 00:21:24,160 --> 00:21:26,479 Speaker 1: on horse racing for quite some time, so that's been 393 00:21:26,520 --> 00:21:30,399 Speaker 1: a really healthy tail wind for the industry. That that 394 00:21:30,400 --> 00:21:32,800 Speaker 1: that's really helped us, and it helped us during COVID, 395 00:21:32,800 --> 00:21:35,360 Speaker 1: it helped the company, and it helped help the industry. 396 00:21:35,920 --> 00:21:38,800 Speaker 1: So now that we're seeing more sports wagering, I think 397 00:21:38,840 --> 00:21:41,000 Speaker 1: that's a good thing to introduced our game to even 398 00:21:41,040 --> 00:21:44,840 Speaker 1: more people. So sports are horse racing is a great 399 00:21:45,200 --> 00:21:48,760 Speaker 1: sport and it's a great gambling product. So there was 400 00:21:48,800 --> 00:21:50,879 Speaker 1: a time in this country where it had a monopoly. 401 00:21:50,920 --> 00:21:53,960 Speaker 1: It was really the only form of legal gambling, and 402 00:21:54,000 --> 00:21:57,000 Speaker 1: that's of course changed over the last forty years. But 403 00:21:57,080 --> 00:21:59,040 Speaker 1: today there's a lot of competition, but it's still a 404 00:21:59,119 --> 00:22:03,080 Speaker 1: really really great game. So uh So there's an element, 405 00:22:03,119 --> 00:22:06,040 Speaker 1: there's a there's an underbelly of horse racing that's that's 406 00:22:06,119 --> 00:22:09,920 Speaker 1: really a healthy and has an opportunity to grow. Um. 407 00:22:09,960 --> 00:22:12,920 Speaker 1: But that doesn't mean every jurisdiction is the same. Horse 408 00:22:13,000 --> 00:22:15,800 Speaker 1: Racing is a very Balkanized sport in this country in 409 00:22:15,840 --> 00:22:19,080 Speaker 1: the sense that every state does it a little bit differently, 410 00:22:19,119 --> 00:22:23,080 Speaker 1: and every every state has different wrinkles and a different 411 00:22:23,080 --> 00:22:27,880 Speaker 1: economic dynamic. But there's a there's an undercurrent of several jurisdictions, 412 00:22:27,920 --> 00:22:31,280 Speaker 1: and including Kentucky where the sports actually really really strong 413 00:22:31,480 --> 00:22:37,159 Speaker 1: gambling in this establishment Shot eight bill. This is Mike 414 00:22:37,240 --> 00:22:41,560 Speaker 1: up in Boston. Following up on that, Michael Barr's favorite pastime. 415 00:22:41,600 --> 00:22:45,080 Speaker 1: Twinspires dot Com, the official betting partner of the Kentucky Derby. 416 00:22:45,119 --> 00:22:46,760 Speaker 1: Tell me a little bit of how how long they've 417 00:22:46,760 --> 00:22:49,879 Speaker 1: been around and uh and how they became your partner 418 00:22:49,920 --> 00:22:51,879 Speaker 1: when there's a lot of other competition out there for 419 00:22:52,280 --> 00:22:56,280 Speaker 1: betting with van duel, draft kings, etcetera. Well, twinspires dot 420 00:22:56,280 --> 00:23:00,240 Speaker 1: Com actually sort of is tied really closely in my 421 00:23:00,320 --> 00:23:02,480 Speaker 1: career because I was part of the team that started 422 00:23:02,520 --> 00:23:05,840 Speaker 1: that business. It's a subsidiary of Churchill Downs, so we 423 00:23:05,880 --> 00:23:08,840 Speaker 1: started it back in two thousand seven. Because there's actually 424 00:23:08,880 --> 00:23:12,080 Speaker 1: a separate law that governs how horse racing works in 425 00:23:12,119 --> 00:23:15,080 Speaker 1: this country across state lines, and it's called the Interstate 426 00:23:15,119 --> 00:23:17,679 Speaker 1: Horse Racing Act, and under that law there was a 427 00:23:18,359 --> 00:23:21,639 Speaker 1: there is the ability as the Internet developed to have 428 00:23:21,840 --> 00:23:25,520 Speaker 1: online wagering on horse racing. So we took advantage of 429 00:23:25,560 --> 00:23:28,359 Speaker 1: that legal construct back in two thousand seven to start 430 00:23:28,400 --> 00:23:32,800 Speaker 1: to inspires and it's it's UM. I've started several businesses 431 00:23:32,840 --> 00:23:36,880 Speaker 1: within within larger companies, and that's the one that took 432 00:23:36,920 --> 00:23:41,719 Speaker 1: off and performed beyond our wildest expectations. So it had 433 00:23:41,760 --> 00:23:43,960 Speaker 1: a great run, a great lead up and it and 434 00:23:44,000 --> 00:23:46,960 Speaker 1: it had a fantastic two thousand twenty. And now we 435 00:23:47,040 --> 00:23:49,480 Speaker 1: enter into a world where we can do other products 436 00:23:49,480 --> 00:23:53,280 Speaker 1: besides horse racing, as different states are legalizing other forms 437 00:23:53,320 --> 00:23:56,760 Speaker 1: of online sports wagering, So we're taking that business in 438 00:23:56,800 --> 00:24:00,520 Speaker 1: that direction as well to to offer more products UM 439 00:24:00,560 --> 00:24:04,000 Speaker 1: over time as different states legalize more products. We'll tell 440 00:24:04,080 --> 00:24:06,280 Speaker 1: us more about that bill, because you know, you've hit 441 00:24:06,320 --> 00:24:09,000 Speaker 1: on something that we talked about a lot on this show. 442 00:24:09,080 --> 00:24:11,040 Speaker 1: We talked about it in the in the capital markets, 443 00:24:11,400 --> 00:24:13,520 Speaker 1: you know, as as so many companies like yours are 444 00:24:13,600 --> 00:24:16,280 Speaker 1: are publicly traded, there's a lot of investor interests, a 445 00:24:16,320 --> 00:24:21,399 Speaker 1: lot of consumer interests. It feels like betting specifically was 446 00:24:21,480 --> 00:24:23,960 Speaker 1: one of these business for which the pandemic was a 447 00:24:24,040 --> 00:24:29,439 Speaker 1: real accelerant, both from a consumer uptake perspective, but also 448 00:24:29,680 --> 00:24:33,719 Speaker 1: from the perspective of states and municipalities looking for new 449 00:24:33,760 --> 00:24:38,600 Speaker 1: sources of revenue. What did you see from where you sit, Well, 450 00:24:39,400 --> 00:24:44,119 Speaker 1: I've paid attention to gambling industries around the world for 451 00:24:44,160 --> 00:24:48,040 Speaker 1: a long time. So every every jurisdiction that's legalized it 452 00:24:48,240 --> 00:24:50,119 Speaker 1: over time has done it a little bit differently. In 453 00:24:50,119 --> 00:24:53,280 Speaker 1: the United States is no exception. So I think it's 454 00:24:53,400 --> 00:24:57,080 Speaker 1: it's been a journey, a unique journey because it's been 455 00:24:57,119 --> 00:24:58,879 Speaker 1: worked a little bit differently here than the rest of 456 00:24:58,920 --> 00:25:02,680 Speaker 1: the world. I'd say here because of the capital markets, 457 00:25:02,720 --> 00:25:06,800 Speaker 1: because of UH financing through public companies, etcetera. I think 458 00:25:06,800 --> 00:25:12,440 Speaker 1: there's been even more abolishness on it and UH less patients. 459 00:25:12,520 --> 00:25:14,760 Speaker 1: You know, get in, build the build the top line 460 00:25:14,760 --> 00:25:17,560 Speaker 1: as quickly as possible. And for somebody that's been in 461 00:25:17,600 --> 00:25:19,800 Speaker 1: the gambling industry a long time, I would tell you 462 00:25:19,840 --> 00:25:22,560 Speaker 1: that gambling is a margin business. It's not a top 463 00:25:22,600 --> 00:25:25,720 Speaker 1: line business. It's a margin business. It's it's not hard 464 00:25:25,760 --> 00:25:28,800 Speaker 1: to get customers. You can always economically and sent them 465 00:25:28,840 --> 00:25:32,720 Speaker 1: to gamble. It's how do you get a profitable business 466 00:25:32,720 --> 00:25:35,320 Speaker 1: set up. So I think in the current environment with 467 00:25:35,400 --> 00:25:38,480 Speaker 1: online wagering, you still see a lot of distortion because 468 00:25:38,520 --> 00:25:43,359 Speaker 1: there's a lot of uh acquisition money customer acquisition money 469 00:25:43,359 --> 00:25:45,840 Speaker 1: in the market, and there isn't the long history of 470 00:25:46,040 --> 00:25:49,960 Speaker 1: really understanding the margins, the profit margins, the contribution margins 471 00:25:49,960 --> 00:25:52,320 Speaker 1: of the business, and that's something that will sort out 472 00:25:52,320 --> 00:25:54,880 Speaker 1: over time. But there's a lot of precedent you can 473 00:25:54,920 --> 00:25:58,320 Speaker 1: look to to in you know, Western Europe, Australia and 474 00:25:58,359 --> 00:26:00,760 Speaker 1: other places to try to give you a picture of 475 00:26:00,760 --> 00:26:03,879 Speaker 1: what you hope this business looks like long term. But 476 00:26:03,960 --> 00:26:05,960 Speaker 1: here in the United States we're still in the early 477 00:26:06,000 --> 00:26:08,439 Speaker 1: innings and there's still a bit of a frenzy to 478 00:26:08,640 --> 00:26:13,639 Speaker 1: get states open under any construct and to focus on 479 00:26:13,680 --> 00:26:17,400 Speaker 1: metrics like revenues or or numbers of customers, and those 480 00:26:17,440 --> 00:26:20,439 Speaker 1: aren't metrics long term I think will truly drive this 481 00:26:20,920 --> 00:26:25,280 Speaker 1: because eventually, like all industries, people as they see the 482 00:26:25,280 --> 00:26:28,440 Speaker 1: industry approach maturity, will want to see profitability. And that's 483 00:26:28,440 --> 00:26:30,680 Speaker 1: a story that I think we understand, but it's a 484 00:26:30,720 --> 00:26:33,560 Speaker 1: story that's not been written yet. So I think right 485 00:26:33,600 --> 00:26:35,600 Speaker 1: now we're still in a period of a lot of 486 00:26:35,680 --> 00:26:39,159 Speaker 1: chaos um and that makes it fun. There's always a 487 00:26:39,160 --> 00:26:41,040 Speaker 1: lot of opportunity in chaos, but you have to be 488 00:26:41,040 --> 00:26:44,040 Speaker 1: disciplined and careful during chaos too, especially when you have 489 00:26:44,040 --> 00:26:48,280 Speaker 1: a lot to protect. Um In terms of other gambling 490 00:26:48,280 --> 00:26:50,440 Speaker 1: businesses are in the case of ours, to inspires, which 491 00:26:50,760 --> 00:26:56,040 Speaker 1: is an incredibly profitable online business because horse racing, betting 492 00:26:56,040 --> 00:27:00,080 Speaker 1: on horse racing online is an incredibly profitable business. To 493 00:27:00,240 --> 00:27:05,399 Speaker 1: us a little bit about Louisville and Kentucky and the 494 00:27:05,440 --> 00:27:09,760 Speaker 1: economic impact of this race, the economic impact of this 495 00:27:10,440 --> 00:27:14,960 Speaker 1: business because it's you know, horses in Bourbon as far 496 00:27:15,000 --> 00:27:17,520 Speaker 1: as I can tell, I know it's much more diversified 497 00:27:17,520 --> 00:27:19,240 Speaker 1: than that, but that's what I think about when I 498 00:27:19,240 --> 00:27:22,320 Speaker 1: think about, uh, your great state. But you know, when 499 00:27:22,359 --> 00:27:25,520 Speaker 1: it comes to horse racing, this is a massive industry, 500 00:27:25,600 --> 00:27:27,600 Speaker 1: not just from a tourist perspective, not just from a 501 00:27:27,680 --> 00:27:31,400 Speaker 1: racing perspective, but but it's really baked into the fabric 502 00:27:31,440 --> 00:27:33,680 Speaker 1: of the economy there. Tell us about that. When you 503 00:27:33,720 --> 00:27:38,159 Speaker 1: think about the Kentucky Derby in Louisville and in this region, 504 00:27:38,640 --> 00:27:42,160 Speaker 1: not just the state, but this whole surrounding region, it's 505 00:27:42,240 --> 00:27:44,639 Speaker 1: really akin to a holiday. I mean, that's the rhythm 506 00:27:44,720 --> 00:27:48,959 Speaker 1: and the energy that that you feel. It's it's like Thanksgiving, 507 00:27:49,000 --> 00:27:52,840 Speaker 1: it's like Christmas. In fact, in Louisville on Friday, the 508 00:27:52,920 --> 00:27:57,760 Speaker 1: day before the derby, UM, there's no public school. It's canceled. 509 00:27:58,040 --> 00:28:01,640 Speaker 1: So this very much has a holiday feel in the rhythm, 510 00:28:02,080 --> 00:28:05,760 Speaker 1: just like a holiday rhythm. UH is really what drives 511 00:28:06,040 --> 00:28:09,680 Speaker 1: the ultimate day and the ultimate event. UH. It's people 512 00:28:09,720 --> 00:28:12,480 Speaker 1: planning family reunions. It's when they get back in touch 513 00:28:12,560 --> 00:28:15,720 Speaker 1: with their college friends, or their high school friends, or 514 00:28:15,840 --> 00:28:18,879 Speaker 1: or friends from their neighborhood. It has that sort of 515 00:28:18,960 --> 00:28:22,800 Speaker 1: rhythm to it and that energy you know, charitable events, etcetera. 516 00:28:22,840 --> 00:28:25,840 Speaker 1: And that energy builds over the over the weeks prior 517 00:28:25,880 --> 00:28:29,120 Speaker 1: to the derby, and then derby day itself arrives. Everybody 518 00:28:29,160 --> 00:28:32,359 Speaker 1: puts all that down and focuses on coming to the 519 00:28:32,400 --> 00:28:36,960 Speaker 1: track or what's on TV. So UM. Ultimately that energy 520 00:28:37,000 --> 00:28:39,400 Speaker 1: belongs to this community, and what we try to do 521 00:28:39,520 --> 00:28:41,640 Speaker 1: is harness a little piece of it. But we want 522 00:28:41,680 --> 00:28:45,960 Speaker 1: the community itself to enjoy uh their own fruits of 523 00:28:45,960 --> 00:28:48,760 Speaker 1: of of that energy. We we want those charities to thrive, 524 00:28:48,840 --> 00:28:51,360 Speaker 1: we want those local restaurants to thrive. So when we 525 00:28:51,400 --> 00:28:55,800 Speaker 1: look at the the economic impact to our region, which 526 00:28:55,840 --> 00:28:59,400 Speaker 1: can be hard to fully calculate. It's in it's in 527 00:28:59,440 --> 00:29:01,960 Speaker 1: the in the nature of hundreds and hundreds of millions 528 00:29:01,960 --> 00:29:04,600 Speaker 1: of dollars. It fills the hotels, that fills the restaurants, 529 00:29:04,600 --> 00:29:07,320 Speaker 1: that fills the stores. Uh, and that's a great thing 530 00:29:07,320 --> 00:29:09,720 Speaker 1: to be a part of. We get our little piece 531 00:29:09,840 --> 00:29:13,920 Speaker 1: where the culmination. But it really feels like something that 532 00:29:14,000 --> 00:29:18,320 Speaker 1: belongs to everybody. Uh. It's almost it's almost sort of 533 00:29:18,360 --> 00:29:20,520 Speaker 1: a public event as opposed to an event owned by 534 00:29:20,560 --> 00:29:24,160 Speaker 1: a company. But that's the dynamic in this region, and 535 00:29:24,200 --> 00:29:27,200 Speaker 1: we stand on the shoulders of the people that helped 536 00:29:27,280 --> 00:29:30,680 Speaker 1: develop this, help drive it to the point where it's 537 00:29:30,720 --> 00:29:35,320 Speaker 1: at now, where it's an institution, it's a holiday, it's 538 00:29:35,320 --> 00:29:38,560 Speaker 1: it's something that everybody has circled on their calendar and 539 00:29:38,600 --> 00:29:40,560 Speaker 1: they designed their whole week or a whole couple of 540 00:29:40,600 --> 00:29:45,480 Speaker 1: weeks around around that ultimate day. One thing always impressed 541 00:29:45,480 --> 00:29:48,920 Speaker 1: me with the Triple Crown, especially the Kentucky Derby, is 542 00:29:49,080 --> 00:29:51,720 Speaker 1: if a horse wins it and stud fees. So let's 543 00:29:51,760 --> 00:29:54,400 Speaker 1: say I've got a horse, its name fixed the faucet, 544 00:29:54,720 --> 00:29:58,080 Speaker 1: and it wins the Kentucky Derby, how much could I 545 00:29:58,160 --> 00:30:02,440 Speaker 1: get in stud fees? Well, um, it's a game of 546 00:30:02,440 --> 00:30:10,560 Speaker 1: hope and uh and the thing isn't Michael, So I 547 00:30:10,600 --> 00:30:14,520 Speaker 1: was just gonna say, in the game of hope, uh, 548 00:30:14,560 --> 00:30:17,160 Speaker 1: nothing sells better than hope. So let's let's say you 549 00:30:17,200 --> 00:30:20,560 Speaker 1: win that Kentucky Derby and and now now you've got 550 00:30:20,600 --> 00:30:23,760 Speaker 1: yourself a stallion prospect for the next three years. Nobody's 551 00:30:23,800 --> 00:30:27,360 Speaker 1: really gonna know how good that stallion prospect is because 552 00:30:27,400 --> 00:30:32,320 Speaker 1: none of the none of it's uh offspringer on the 553 00:30:32,400 --> 00:30:35,400 Speaker 1: racetrack yet in any material way. So it's not until 554 00:30:35,440 --> 00:30:37,760 Speaker 1: that first crop really hits their third year and you 555 00:30:37,800 --> 00:30:41,240 Speaker 1: start to see if they're Kentucky Derby contenders or Triple 556 00:30:41,280 --> 00:30:44,280 Speaker 1: Crown contenders. It's not until then that you really see 557 00:30:44,880 --> 00:30:47,800 Speaker 1: what you've got. But let's say you've got something, well, 558 00:30:48,240 --> 00:30:52,320 Speaker 1: then you've you've you've got a stallion that uh that's 559 00:30:52,320 --> 00:30:55,440 Speaker 1: gonna be busy all the time, whether just in the 560 00:30:55,480 --> 00:30:58,560 Speaker 1: Northern Hemisphere, maybe they'll go to Australia in in uh 561 00:30:59,640 --> 00:31:03,920 Speaker 1: in the our time. So um uh. For the first 562 00:31:03,920 --> 00:31:06,760 Speaker 1: three years, it's a great start, but you don't really 563 00:31:06,840 --> 00:31:11,920 Speaker 1: hit that that ultimate sort of legendary stallion status until 564 00:31:11,920 --> 00:31:14,040 Speaker 1: they can see your offspring on the track and they 565 00:31:14,040 --> 00:31:17,480 Speaker 1: can see that you're generating lots of winners. And Thoroughbred 566 00:31:17,560 --> 00:31:22,160 Speaker 1: racing the you know, the the historic rules of thoroughbred 567 00:31:22,240 --> 00:31:27,040 Speaker 1: racing still apply. There's no artificial insemination, so every mayor 568 00:31:27,120 --> 00:31:30,120 Speaker 1: has to be a live cover cover there. There isn't 569 00:31:30,200 --> 00:31:33,360 Speaker 1: artificial semination like you see in other uh you know, 570 00:31:33,400 --> 00:31:39,800 Speaker 1: other industries, livestock, etcetera. So so that horse, ultimately, if 571 00:31:39,840 --> 00:31:44,520 Speaker 1: there's demand for uh that horse uh seasons from that 572 00:31:44,560 --> 00:31:47,400 Speaker 1: horse as they call it, UH, then it becomes a 573 00:31:47,480 --> 00:31:50,440 Speaker 1: question of well, how much, how much stamina and how 574 00:31:50,480 --> 00:31:53,000 Speaker 1: much interest is your horse going to give you to 575 00:31:53,040 --> 00:31:56,600 Speaker 1: cover those mayors? Bill coming into the derby on Saturday, 576 00:31:56,600 --> 00:31:59,239 Speaker 1: I assume there will be a contactless coming in with 577 00:31:59,280 --> 00:32:01,720 Speaker 1: tickets and take me all the way to the betting window. 578 00:32:02,040 --> 00:32:05,760 Speaker 1: Will it apply there or will cash change hands? Well, 579 00:32:05,800 --> 00:32:10,200 Speaker 1: we've done the best we could to make h to 580 00:32:10,320 --> 00:32:13,400 Speaker 1: limit the number of contact points. So for example, all 581 00:32:13,560 --> 00:32:18,760 Speaker 1: the seats this year UM have an all inclusive aspect 582 00:32:18,760 --> 00:32:21,720 Speaker 1: to it, so it's all all food and beverage included. 583 00:32:21,840 --> 00:32:24,880 Speaker 1: Because we were trying to keep those lines down and 584 00:32:24,920 --> 00:32:29,040 Speaker 1: we were trying to make this as castless as possible. UH, 585 00:32:29,040 --> 00:32:33,400 Speaker 1: And that that starts when you enter the facility UM 586 00:32:33,440 --> 00:32:37,000 Speaker 1: with your electronic tickets. So we've done the best we've 587 00:32:37,000 --> 00:32:39,000 Speaker 1: could on that. But if you have cash and you 588 00:32:39,040 --> 00:32:41,120 Speaker 1: want to go to the betting window, yes you can. 589 00:32:41,200 --> 00:32:44,240 Speaker 1: You can bet with cash and U you'll need to 590 00:32:44,240 --> 00:32:46,680 Speaker 1: wear your mask and our our our tellers will be 591 00:32:46,680 --> 00:32:49,960 Speaker 1: wearing their masks, and they'll have plenty of hand sanitizer UM. 592 00:32:50,200 --> 00:32:52,680 Speaker 1: So there's no such thing as perfection in this process. 593 00:32:52,720 --> 00:32:55,200 Speaker 1: But the windows are still going to be open and 594 00:32:55,480 --> 00:32:58,120 Speaker 1: they're still going to process your bets with with cash. 595 00:32:58,520 --> 00:33:02,080 Speaker 1: Do you get the sense from the folks that you 596 00:33:02,200 --> 00:33:05,320 Speaker 1: talked to in the business and the folks that you 597 00:33:05,480 --> 00:33:09,720 Speaker 1: talked to around the industry that this is the last 598 00:33:09,880 --> 00:33:14,440 Speaker 1: abnormal Derby and that going forward, you know, you feel 599 00:33:14,520 --> 00:33:18,720 Speaker 1: confident about life attorney into some sense of normalcy. I 600 00:33:18,760 --> 00:33:22,240 Speaker 1: do feel this is the last abnormal Derby, I really do. 601 00:33:22,280 --> 00:33:24,600 Speaker 1: I think the state in particular has done a really 602 00:33:24,600 --> 00:33:28,160 Speaker 1: good job with rolling out the vaccines, and I think 603 00:33:28,200 --> 00:33:30,880 Speaker 1: when you plan for the derby, it's important to understand 604 00:33:31,000 --> 00:33:33,240 Speaker 1: that this thing is a big aircraft carrier and you 605 00:33:33,280 --> 00:33:35,880 Speaker 1: can't just yank that wheel at the last second. A 606 00:33:35,920 --> 00:33:38,360 Speaker 1: lot of the decisions we've made about how this Derby 607 00:33:38,440 --> 00:33:41,920 Speaker 1: is being conducted this coming Saturday really were made months ago. 608 00:33:42,200 --> 00:33:46,000 Speaker 1: Because we're training our team, we're setting up the ticketing system, 609 00:33:46,000 --> 00:33:48,280 Speaker 1: we're ordering the food and beverage, we're hiring a certain 610 00:33:48,360 --> 00:33:51,120 Speaker 1: number of people. Yeah, all of these things get done 611 00:33:51,200 --> 00:33:53,760 Speaker 1: in advance, and they get executed carefully. You can't change 612 00:33:53,760 --> 00:33:57,840 Speaker 1: it in the middle of execution. So I think, um 613 00:33:58,280 --> 00:34:00,360 Speaker 1: and I contend to be an optimistic per and but 614 00:34:00,680 --> 00:34:03,200 Speaker 1: I think as we head into I think we're looking 615 00:34:03,240 --> 00:34:06,640 Speaker 1: at a much more typical derby, and I think the 616 00:34:06,760 --> 00:34:10,359 Speaker 1: demand for an event like this, for for the tickets, 617 00:34:10,400 --> 00:34:12,680 Speaker 1: I think it's going to be there. And we're We've 618 00:34:12,680 --> 00:34:15,279 Speaker 1: got a lot of disappointed people this year who would 619 00:34:15,360 --> 00:34:18,680 Speaker 1: like to come, but they were were limited in terms 620 00:34:18,680 --> 00:34:22,160 Speaker 1: of how many people can come. And and we made 621 00:34:22,160 --> 00:34:26,239 Speaker 1: our decisions with respect to that months ago. UM. So, 622 00:34:26,920 --> 00:34:29,680 Speaker 1: based on the demand that's out there and what I 623 00:34:29,760 --> 00:34:33,879 Speaker 1: read across the vaccine rollouts across the country, I feel 624 00:34:33,920 --> 00:34:36,920 Speaker 1: like we're in pretty good shape for two um and 625 00:34:37,000 --> 00:34:39,640 Speaker 1: I think it will be something that's a normal you know, 626 00:34:40,480 --> 00:34:43,239 Speaker 1: defining normal is what we saw two thousand nineteen and 627 00:34:43,280 --> 00:34:47,840 Speaker 1: before that are so very close to it that that 628 00:34:47,840 --> 00:34:50,719 Speaker 1: that it's still a really wonderful thing. Let me ask 629 00:34:50,760 --> 00:34:53,520 Speaker 1: one question and just go back to the mint and Julius, 630 00:34:53,840 --> 00:34:57,520 Speaker 1: because what that means is now that you have fans 631 00:34:57,520 --> 00:35:01,480 Speaker 1: in the stands. That means all of the people who 632 00:35:01,560 --> 00:35:06,080 Speaker 1: are selling concessions and drinks can now make money for 633 00:35:06,160 --> 00:35:09,120 Speaker 1: a change. Right. Have you talked to the people in 634 00:35:09,160 --> 00:35:13,040 Speaker 1: the concession arena about the hits that they have taken 635 00:35:13,239 --> 00:35:16,160 Speaker 1: from this COVID and can you expand on that? Yeah? 636 00:35:16,200 --> 00:35:19,200 Speaker 1: Absolutely so. I've been on the back side of the 637 00:35:19,280 --> 00:35:21,520 Speaker 1: race track as they call it, the You know, you 638 00:35:21,560 --> 00:35:23,400 Speaker 1: have the front side where the where the crowd is, 639 00:35:23,440 --> 00:35:25,080 Speaker 1: and then on the other side of the track that's 640 00:35:25,120 --> 00:35:27,239 Speaker 1: where the horses live. And it's really a city in 641 00:35:27,320 --> 00:35:30,240 Speaker 1: a community of it in and of itself, all oriented 642 00:35:30,280 --> 00:35:32,879 Speaker 1: around taking care of these horses. So I can tell 643 00:35:32,880 --> 00:35:36,399 Speaker 1: you that I've never felt such a sense of optimism 644 00:35:36,440 --> 00:35:39,560 Speaker 1: and confidence. And I think that's an important thing about 645 00:35:40,520 --> 00:35:43,320 Speaker 1: the success of any industry or or of any city. 646 00:35:43,360 --> 00:35:47,080 Speaker 1: It's it's confidence to to build the business, to to 647 00:35:47,239 --> 00:35:50,600 Speaker 1: take chances, and that's returning. I mean, what happened in 648 00:35:50,640 --> 00:35:54,319 Speaker 1: this community over the last year is a microcosm of 649 00:35:54,360 --> 00:35:58,080 Speaker 1: what happened across the country and across the world. These 650 00:35:58,120 --> 00:36:04,120 Speaker 1: local businesses were so so hit, so devastated by COVID, 651 00:36:04,320 --> 00:36:08,960 Speaker 1: the restaurants, the concessionaires, every kind of business, and that 652 00:36:08,960 --> 00:36:12,480 Speaker 1: that flowed right into horse racing as well. So people 653 00:36:12,560 --> 00:36:15,480 Speaker 1: really really took a hit. And it's only now that 654 00:36:15,480 --> 00:36:18,320 Speaker 1: they're starting to feel confident again, and the Derby is 655 00:36:18,320 --> 00:36:20,799 Speaker 1: a big part of that. Seeing that we're taking a 656 00:36:20,800 --> 00:36:22,719 Speaker 1: step forward, that we're going to hold an event with 657 00:36:23,160 --> 00:36:26,359 Speaker 1: something approaching fifty people, and that we're going to sell 658 00:36:26,440 --> 00:36:29,439 Speaker 1: men julips, that we're going to serve food, that people 659 00:36:29,480 --> 00:36:31,799 Speaker 1: are going to be together again, and that we're going 660 00:36:31,840 --> 00:36:33,839 Speaker 1: to start to get back to normal. I think it's 661 00:36:33,880 --> 00:36:36,359 Speaker 1: been a real catalyst in our community and in our 662 00:36:36,400 --> 00:36:41,520 Speaker 1: industry that that their better days ahead. So I'd have 663 00:36:41,600 --> 00:36:45,960 Speaker 1: to say it's while we still have reduced crowds in 664 00:36:46,000 --> 00:36:48,840 Speaker 1: the morning, on the back side, I've never felt the 665 00:36:48,960 --> 00:36:52,439 Speaker 1: sense of optimism and confidence that that we're seeing back 666 00:36:52,480 --> 00:36:54,920 Speaker 1: there today. So Bill, how long will it take Churchill 667 00:36:55,000 --> 00:36:58,439 Speaker 1: Downs to recover from what they lost? In well? As 668 00:36:58,480 --> 00:37:02,520 Speaker 1: a as a company, we're in the gambling business and 669 00:37:02,520 --> 00:37:05,960 Speaker 1: and that extends the online and extends the casinos. So 670 00:37:06,320 --> 00:37:10,319 Speaker 1: our first quarter numbers are EB was up over two 671 00:37:10,320 --> 00:37:14,680 Speaker 1: thousand nineteen. So as a company, we've already recovered because 672 00:37:14,680 --> 00:37:18,160 Speaker 1: we were growing so rapidly anyway across all our properties. 673 00:37:18,320 --> 00:37:20,160 Speaker 1: When it comes to the Derby, we took a really 674 00:37:20,200 --> 00:37:23,120 Speaker 1: big hit last year, and I think because we had 675 00:37:23,120 --> 00:37:26,040 Speaker 1: to hold it without a crowd in September. I think 676 00:37:26,120 --> 00:37:29,560 Speaker 1: this year, um, a lot of our metrics are returning. 677 00:37:29,600 --> 00:37:31,880 Speaker 1: I think the wagering will be tremendous. I think it 678 00:37:31,880 --> 00:37:35,200 Speaker 1: will be really strong. I love this card, I love 679 00:37:35,320 --> 00:37:37,719 Speaker 1: the field in the Derby itself. I think this is 680 00:37:37,719 --> 00:37:39,919 Speaker 1: gonna be a great betting race. And I think that's 681 00:37:39,920 --> 00:37:43,480 Speaker 1: going to be evident at the windows. A full recovery 682 00:37:44,800 --> 00:37:48,080 Speaker 1: of of the economics of the Kentucky Derby. That can't 683 00:37:48,160 --> 00:37:52,000 Speaker 1: quite happen until we can sell the tickets again, you know, 684 00:37:52,200 --> 00:37:55,200 Speaker 1: sell the place out again. So I hope that that's 685 00:37:55,320 --> 00:37:58,399 Speaker 1: next year. But as a company overall, because the rest 686 00:37:58,400 --> 00:38:02,239 Speaker 1: of our businesses are doing so well already, uh, we're 687 00:38:02,239 --> 00:38:06,520 Speaker 1: looking pretty good. Bill carstangin CEO of Churchill Downs, Oh 688 00:38:06,560 --> 00:38:09,480 Speaker 1: thank you so much for talking with us, because I 689 00:38:09,520 --> 00:38:11,920 Speaker 1: get excited every time I think of the Kentucky Derby. 690 00:38:12,000 --> 00:38:14,200 Speaker 1: Thank you so much, sir, thanks for having me on 691 00:38:14,440 --> 00:38:17,040 Speaker 1: Happy Derby. So, guys, really interesting conversation there with Bill 692 00:38:17,080 --> 00:38:20,440 Speaker 1: Carstangin enjoyed getting some time with him ahead of the 693 00:38:20,440 --> 00:38:24,400 Speaker 1: big race this weekend. Uh. I was saying to you 694 00:38:24,400 --> 00:38:28,400 Speaker 1: guys off air, he's a he's a gambling guy. I 695 00:38:29,160 --> 00:38:32,160 Speaker 1: found that very interesting that and you know, a man 696 00:38:32,239 --> 00:38:35,160 Speaker 1: after your own heart, Michael bar But that is the 697 00:38:35,200 --> 00:38:37,799 Speaker 1: business of horse racing. I was saying. I knew I 698 00:38:37,920 --> 00:38:40,839 Speaker 1: felt a kindred spirit when I was talking to him. 699 00:38:41,360 --> 00:38:47,880 Speaker 1: He is he is really uh, hands on guy, and 700 00:38:48,120 --> 00:38:51,439 Speaker 1: this is his business about the gambling part of it. Uh. 701 00:38:51,480 --> 00:38:55,160 Speaker 1: And also along with the studs, the stud feed we 702 00:38:55,160 --> 00:38:57,759 Speaker 1: were talking about that is like fix the faucet might 703 00:38:57,840 --> 00:39:01,400 Speaker 1: have a shot of getting any horse that wins the 704 00:39:01,480 --> 00:39:07,280 Speaker 1: Kentucky Derby has a shot at making the owner wealthy 705 00:39:07,360 --> 00:39:08,960 Speaker 1: for the rest of their lives if they're good at 706 00:39:09,000 --> 00:39:11,960 Speaker 1: making good baby horses. I mean that there is some 707 00:39:11,960 --> 00:39:15,080 Speaker 1: some contingency on that, which I thought was interesting that 708 00:39:15,080 --> 00:39:17,120 Speaker 1: that he pointed out Lynch, you what what did you think, 709 00:39:17,160 --> 00:39:19,719 Speaker 1: because this is one of the I mean, you know 710 00:39:19,800 --> 00:39:21,880 Speaker 1: the history of sports as well as anyway, this is 711 00:39:22,239 --> 00:39:26,719 Speaker 1: literally one of the most storied venues, but also one 712 00:39:26,760 --> 00:39:29,760 Speaker 1: of these you know, mark your calendar type of type 713 00:39:29,800 --> 00:39:32,560 Speaker 1: of races, but a massive business, you know. And I 714 00:39:32,600 --> 00:39:34,800 Speaker 1: thought that it was interesting when he said the Kentucky 715 00:39:34,840 --> 00:39:38,360 Speaker 1: Derby every year is like a holiday. No public school 716 00:39:38,880 --> 00:39:42,080 Speaker 1: on Friday the day before the Derby, and people treated 717 00:39:42,160 --> 00:39:45,319 Speaker 1: like we treat up here in New England Thanksgiving, where 718 00:39:45,360 --> 00:39:48,200 Speaker 1: it's basically people plan reunions, People come back home to 719 00:39:48,239 --> 00:39:51,120 Speaker 1: the high school friends, their college friends, their neighborhood friends, 720 00:39:51,440 --> 00:39:53,840 Speaker 1: and it all builds up. In the culmination is you 721 00:39:53,880 --> 00:39:57,839 Speaker 1: know what called of the post on Saturday Derby time. 722 00:39:57,880 --> 00:40:00,640 Speaker 1: I mean, there's nothing like the Twin Spires, hundred forty 723 00:40:00,680 --> 00:40:04,080 Speaker 1: seven years of tradition, unmatched and unequaled in sport. What 724 00:40:04,120 --> 00:40:05,520 Speaker 1: I thought you were gonna say when you started that 725 00:40:05,640 --> 00:40:07,799 Speaker 1: was it's like Patriots Day. That feels a little bit 726 00:40:07,840 --> 00:40:11,400 Speaker 1: like that, um in some ways. Yeah, I mean, listen 727 00:40:11,600 --> 00:40:14,279 Speaker 1: the history of it and the sheer economic impact, he said. 728 00:40:14,400 --> 00:40:16,279 Speaker 1: You know, in a typical year, hundreds of millions of 729 00:40:16,320 --> 00:40:20,719 Speaker 1: dollars coming into Louisville and and the surrounding areas. Obviously, 730 00:40:20,719 --> 00:40:24,160 Speaker 1: there's so much infrastructure that's built around that fifty thou 731 00:40:24,400 --> 00:40:26,799 Speaker 1: people will be in the stands, which sounds like a lot, 732 00:40:26,840 --> 00:40:31,000 Speaker 1: but it's only a third of of normal capacity. But 733 00:40:31,120 --> 00:40:33,279 Speaker 1: you know, he like a lot of people, definitely looking 734 00:40:33,320 --> 00:40:37,400 Speaker 1: ahead to two when you know probably all those folks 735 00:40:37,400 --> 00:40:41,040 Speaker 1: will be on the infield and uh drinking mint julips. 736 00:40:41,120 --> 00:40:43,759 Speaker 1: I will say, I think I mentioned this to you 737 00:40:43,800 --> 00:40:47,359 Speaker 1: guys offline as well. One thing that that has put 738 00:40:47,400 --> 00:40:48,880 Speaker 1: me in the mood for the Kentucutive. But there's a 739 00:40:48,920 --> 00:40:52,920 Speaker 1: fantastic thirty short called Gonzo at the Derby, which I'm 740 00:40:52,960 --> 00:40:57,080 Speaker 1: guessing the folks at Churchill Downs wouldn't necessarily fully endorsed. 741 00:40:57,120 --> 00:41:00,560 Speaker 1: But it's about the famous Hunter Thompson visit uh to 742 00:41:00,600 --> 00:41:02,960 Speaker 1: the Kentucky Derby back in the day, and the and 743 00:41:03,000 --> 00:41:04,839 Speaker 1: the famous story he read about that. It's a very 744 00:41:04,920 --> 00:41:09,320 Speaker 1: very it's a terrific short talk directed by by Michael Ratner. 745 00:41:09,719 --> 00:41:11,239 Speaker 1: So check that out if you want to get in 746 00:41:11,280 --> 00:41:16,240 Speaker 1: the in the Derby mood. Mondros will be kids. Feels 747 00:41:16,239 --> 00:41:17,960 Speaker 1: better to be than the one than number five. I'll 748 00:41:17,960 --> 00:41:19,760 Speaker 1: wear a number because of Mike. We have a chance 749 00:41:19,760 --> 00:41:21,400 Speaker 1: to go for three and a rown good numbers at 750 00:41:21,400 --> 00:41:23,400 Speaker 1: a good time when I first started wearing the number, 751 00:41:23,520 --> 00:41:26,480 Speaker 1: how would just have been proud Floomberg? Business of sports, 752 00:41:26,719 --> 00:41:30,040 Speaker 1: the number of the week. Time for the number of 753 00:41:30,080 --> 00:41:35,080 Speaker 1: the week might be snumber famous last words. Accorting to 754 00:41:35,200 --> 00:41:39,960 Speaker 1: tal Jones, Well, some clients may want to invest in bitcoin. 755 00:41:40,120 --> 00:41:43,400 Speaker 1: Kansas City chiefs tight end Sean Coulkin is taking it 756 00:41:43,520 --> 00:41:46,200 Speaker 1: a step further. He decided to convert his entire base 757 00:41:46,320 --> 00:41:50,520 Speaker 1: salary into the cryptocurrency. What I want to know is 758 00:41:51,120 --> 00:41:57,560 Speaker 1: what is his entire base salary? Base salary. I'll go 759 00:41:57,600 --> 00:42:04,719 Speaker 1: with a nice round million bucks. I'm gonna play. The 760 00:42:04,760 --> 00:42:07,040 Speaker 1: price is right here, and I'm gonna go. I'm gonna 761 00:42:07,120 --> 00:42:10,320 Speaker 1: undercut you, Jason, and I'm gonna go nine hundred thousand. 762 00:42:10,680 --> 00:42:14,560 Speaker 1: How in the world does he do it? Nine hundred 763 00:42:14,719 --> 00:42:20,000 Speaker 1: twenty thousand dollars? How do you do it? Man? If 764 00:42:19,440 --> 00:42:22,040 Speaker 1: he if he, if he said two million, I would 765 00:42:22,040 --> 00:42:27,799 Speaker 1: have got one. We need to the three of us 766 00:42:27,840 --> 00:42:30,400 Speaker 1: need to go to Churchill Downs. All right, Lynda, you 767 00:42:30,440 --> 00:42:33,400 Speaker 1: just take the money and bet on something. Bet on 768 00:42:33,520 --> 00:42:36,960 Speaker 1: some you know, smart horse, bet on soup and sandwich. 769 00:42:37,000 --> 00:42:42,040 Speaker 1: That's that's one of the Charlie, Yeah, Charlie, that's the 770 00:42:42,080 --> 00:42:44,240 Speaker 1: one that's owned by the guys from Brown. I'm definitely 771 00:42:44,239 --> 00:42:46,200 Speaker 1: I'm pulling for them. I don't know if I'll actually 772 00:42:46,200 --> 00:42:50,320 Speaker 1: actually a known to insider, says simply as Chuck Chuck. 773 00:42:50,480 --> 00:42:55,399 Speaker 1: There you go. This is the Bloomberg Business of Sports show. 774 00:42:55,400 --> 00:42:57,040 Speaker 1: We're here each and every week at the same time, 775 00:42:57,040 --> 00:42:59,839 Speaker 1: plus online wherever you get your podcast. You can catch 776 00:43:00,000 --> 00:43:02,800 Speaker 1: those Mondays, Wednesdays and Thursdays. I'm Michael Barrow on Twitter 777 00:43:02,840 --> 00:43:04,840 Speaker 1: at Big Bar Sports and I'm really not that smart. 778 00:43:04,920 --> 00:43:06,880 Speaker 1: Jason made the mistake of going first and I just 779 00:43:07,000 --> 00:43:10,160 Speaker 1: undercut him. Michael, you can follow me at Lynchy w CPV, 780 00:43:10,440 --> 00:43:13,080 Speaker 1: and I'm Jason Kelly always the number of the week, Patsy. 781 00:43:13,120 --> 00:43:16,120 Speaker 1: You can follow me on Twitter at Jason Kelly News. 782 00:43:16,120 --> 00:43:18,440 Speaker 1: Thanks so much for joining us. You're listening to Bloomberg 783 00:43:18,480 --> 00:43:21,560 Speaker 1: Business with Sports from Bloomberg Radio around the world.