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Speaker 1: Hello, I've Scott sucked, Evan Nobi Williams and Michael barn

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Speaker 1: And this is the Bloomberg Business of Sports podcast where

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Speaker 1: we he didn't do anything, he pumped his fist explore

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

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Speaker 1: topics talk about. Let's start with Take two and the NBA.

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Speaker 1: Let's start with Take two in the NBA re up

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Speaker 1: their deal. Key here, big money. I mean it's the

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Speaker 1: most popular video game out there, big money, one popular,

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Speaker 1: most popular sports, most popular sports video game. Yeah, I

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Speaker 1: think people would understand the genre we're in. Yeah, Fortnite,

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Speaker 1: I know, one point two billion dollars to the NBA

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Speaker 1: and the players. Interesting part for me is that this

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Speaker 1: is the biggest deal, not the first deal, but it's

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Speaker 1: the biggest deal done since the players took their licensing

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Speaker 1: and marketing rights back. So part of that direct check

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Speaker 1: goes to them, something to the NBA for the rights

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Speaker 1: of the uniforms in the marks, and the ever popular

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Speaker 1: video game will continue. Yeah, this is a franchise that's

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Speaker 1: been around for twenty years. I was actually surprised they

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Speaker 1: sold ten million copies last year. Apparently that that outselling Madden,

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Speaker 1: out selling FIFA. Both of those things surprised me. This

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Speaker 1: is the most popular sports video game out there, which

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Speaker 1: makes sense that they would also have the most expensive

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Speaker 1: licensing fee out there. And from what the Wall Street

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Speaker 1: Journal reported, at one point one billion dollars may swing

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Speaker 1: up or down. De pit's tied to the sales of

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Speaker 1: the game itself. However, the trajectory that the NBA is going,

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Speaker 1: the trajectory that the game is going a small portion

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Speaker 1: of this and yes small, the sports league that was

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Speaker 1: launched around this game last year, between Take two and

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Speaker 1: the NBA, all those things, I would think, you know,

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Speaker 1: portend increases in sales moving forward. I'm surprised that it

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Speaker 1: really is superseding the Madden franchise, that that's that really

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Speaker 1: is doing something. Yeah, I would think Global has a

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Speaker 1: big impact on that, right, I mean, the just the

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Speaker 1: American football playing and watching, you know, audience is so

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Speaker 1: concentrated in the US, whereas you know, especially in in

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Speaker 1: in Asia, China, India, basketball is tremendously popular. Alright, Any

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Speaker 1: trepidation ever using the word portend, I always feel like

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Speaker 1: I'm gonna say pretend. I know what portend means, but

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Speaker 1: I still feel like I'm going to get it wrong,

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Speaker 1: so I stay away from poor tend at all costs.

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Speaker 1: That's like, that's like one of those words man like

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Speaker 1: quash and squash. I have no idea what you're talking. Well,

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Speaker 1: that's what I'm saying. Anyway, moving right, Uh this one,

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Speaker 1: this does not portend well for the rest of the

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Speaker 1: talking about x ESPN Skipper, John Skipper and uh you

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Speaker 1: mean to do that? Okay, that was really smooth until

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Speaker 1: I interrupted, That's what I do, that's what you do.

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Speaker 1: He wants to be the Netflix of sports. Well, yeah,

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Speaker 1: I foodway. Our colleague wrote a big piece for Business

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Speaker 1: Week on John Skipper and where he is and what

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Speaker 1: he's doing. And uh, the Zone USA. It's a direct

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Speaker 1: to consumer service. I had to ask Aaron, what is

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Speaker 1: it again? How much ten bucks a month? I've forgotten? Yeah,

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Speaker 1: competing again with ESPN Plus, which is less expensive. But

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Speaker 1: the thinking right now they're building it around fighting boxing,

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Speaker 1: and the thinking is if you buy one pay per

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Speaker 1: view fight, you kind of spend pretty much you know,

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Speaker 1: almost what the ten dollars a month would cost rout

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Speaker 1: the year. So you're advertizing it and you get other

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Speaker 1: events as well. So, uh, they're gonna be bidders on

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Speaker 1: big time sports. That that's what they're telling you that

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Speaker 1: live sports is their bread and butter. Now it remains

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Speaker 1: to be seen. What else are they going to have

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Speaker 1: long term? Can they Can they pay up? And is

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Speaker 1: that where people are gonna go? He just paid it

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Speaker 1: up for Canelo Albarez, he did. Yeah, they've certainly backed

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Speaker 1: by by lenn the Ukrainian born media billionaire. We're saying

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Speaker 1: they're also selling the Performed Group, the other half of

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Speaker 1: the business that came out of Reform Group, which is

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Speaker 1: now two parts, to Zone being one of them, the

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Speaker 1: other part being you know, this media and data service

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Speaker 1: that is, you know, contemplating a sale right now about

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Speaker 1: a billion billion plus around there. But you know, do

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Speaker 1: Zone has proven in other markets to be more than

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Speaker 1: willing to open a check book to overpay just to

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Speaker 1: kind of monopolize the rights. When they launched in two

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Speaker 1: thousands sixteen in Japan, they spent three billion dollars immediately

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Speaker 1: on the Japanese Baseball League, the Japanese soccer leagues MLB,

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Speaker 1: NFL Champions League, and the five biggest European soccer leagues.

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Speaker 1: Of course, that gets to a relationship with the big.

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Speaker 1: Not that John Skipper doesn't have a relationship with all

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Speaker 1: of these people, but it gets that business relationship going

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Speaker 1: chum the waters for when the US rights are sure,

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Speaker 1: and as Skipper knows, launching in Japan where you could

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Speaker 1: buy those things immediately with a lot of money, is easy,

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Speaker 1: and launching in the US, where none of those things

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Speaker 1: are available, regardless of how big your your paycheck is

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Speaker 1: right now, is a totally differ and things. So they're

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Speaker 1: they're chipping around the edges. You mentioned the Canelo Alvarez deal,

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Speaker 1: there was a matchroom deal in there as well. They're

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Speaker 1: they're pretty entrenched in boxing. They just announced recently that

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Speaker 1: MLB deal where they're going to create that red Zone style,

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Speaker 1: the kind of skip around show on weeknights for for

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Speaker 1: Major League Baseball. All of this, as you said, Scott,

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Speaker 1: gearing up for uh this time in the next three

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Speaker 1: years or so, when almost all the major sports rights

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Speaker 1: in the coming up. The advantage for the Zone, as

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Speaker 1: I would see it here is is that it's not Disney.

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Speaker 1: It's not this huge corporate conglomerate that's the ship, the

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Speaker 1: ocean liner that has to take forever to turn around.

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Speaker 1: The Zone, I would think as much more nimulate. I

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Speaker 1: want to do something, go do it. Boom. One person

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Speaker 1: says yes, two people say yes, we're gonna go do it.

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Speaker 1: Things don't work like that at Disney, and Skipper knows that,

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Speaker 1: and he's probably going to try to use that to

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Speaker 1: his advantage. I think it's a fair assumption to think

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Speaker 1: that whenever the next next time Skipper sits across the

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Speaker 1: table and his bidding for a big piece of rights,

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Speaker 1: he's going to be delivering fewer subscribers or viewer than

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Speaker 1: a lot of the people around the table, which is

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Speaker 1: a disadvantage. Right. We heard Brian roll Lap say on

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Speaker 1: on this podcast two weeks ago, the guy behind the

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Speaker 1: money at the NFL, that when the NFL's rights are up,

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Speaker 1: you know they're not interested in more money for a

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Speaker 1: smaller audience pool, right. They care so much about having distribution,

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Speaker 1: being able to reach the most amount of people. I

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Speaker 1: imagine for a long time that's a hurdle that John

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Speaker 1: Skipper is gonna have a favorite word on this podcast, scale, Preach, preach, scale,

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Speaker 1: whatever you gotta be able to scale. Two things. One

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Speaker 1: I should add that Skipper signed Alvarez to an eleven

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Speaker 1: fight contract three hundred sixty five million dollars for the

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Speaker 1: next eleven fights for Alvarez, and he's in the running

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Speaker 1: apparently for Triple G as well. Right, so, I mean,

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Speaker 1: between Alvarez and Triple G, those are two of, if

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Speaker 1: not the two most exciting boxers right now. Triples claimed

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Speaker 1: to fame. His real claim to fame um that his

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Speaker 1: son plays against my son and hug. Yeah, at last

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Speaker 1: for the Junior Kings, the Junior l A Kings. I

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Speaker 1: don't know if they're going to be at the next tournament,

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Speaker 1: but maybe we'll see. Triple G was there, you know,

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Speaker 1: so he was taking photos with some of the kids

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Speaker 1: and some of the parents in Toronto. Imagine fight breaks

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Speaker 1: out in the state you square up on the back

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Speaker 1: of stay away from that. That's whatever he says. He's

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Speaker 1: right by the way, real quick. Can we retire the

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Speaker 1: Netflix of Moniker? It makes me so, ain't we? The

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Speaker 1: Netflix of e sports, Netflix of media, the Netflix of cars,

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Speaker 1: the Netflix of this is just a digital This is

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Speaker 1: what all TV is going to be in in in

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Speaker 1: twenty years right there. But Netflix just raised its rates.

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Speaker 1: Netflix is the YouTube of Netflix, right, It's ridiculous. We

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Speaker 1: talked about that a lot, though. I mean I have

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Speaker 1: with with our guests the price point and the psychology

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Speaker 1: behind the price point. So they've got him hooked. Now

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Speaker 1: you raised the price very eager to see the attrition.

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Speaker 1: How many people say, you know what, thirteen bucks too high?

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Speaker 1: I'm very, very interesting. I'm very just a little pet

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Speaker 1: thing here, the psychology behind the price point of Netflix

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Speaker 1: and those folks like I didn't use it this month,

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Speaker 1: but it's ten bucks. Okay, leave it. They see it

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Speaker 1: every month. It's fine, but obviously they feel as if

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Speaker 1: they can do this same as Starbucks. You got the

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Speaker 1: people hooked on the coffee, so you raise a cup

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Speaker 1: five cents. So what that people are still coming in.

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Speaker 1: By the way, I like it when Evan gets salty man.

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Speaker 1: I like that at the Master's sliding the day. I'm

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Speaker 1: very familiar with salty, by the way. On a human

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Speaker 1: interest note, and to John Skipper, blessed his art because

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Speaker 1: he has picked it all up from one of the

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Speaker 1: reasons why he left ESPN, because he admitted himself that

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Speaker 1: he had a substance addiction, and he has picked it

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Speaker 1: up and he's moving on. He goes in in this

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Speaker 1: in IRA's Business Week, story, he goes in a little

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Speaker 1: more in depth about the circumstances of his leaving and

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Speaker 1: where he is right now about a year later. So

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Speaker 1: if you're curious about the John Skipper's departure from ESPN,

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Speaker 1: there is more in that story that you should read.

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Speaker 1: Let's talk about Nike shoes. Now, let's start with this.

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Speaker 1: What is this a smart what is this Nike is building? Me?

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Speaker 1: Netflix Evan was there, so Edvan. But why don't you

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Speaker 1: tell me about these things you put on your Nike

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Speaker 1: This week? At an event they build as the future

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Speaker 1: of footwear unveiled for me what they what they see

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Speaker 1: as as as the future of sneakers. And much like

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Speaker 1: everything that Nike is doing, uh, it is digitally connected.

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Speaker 1: It is centered on getting you to interact more with

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Speaker 1: the company on their apps, on their membership program, etcetera.

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Speaker 1: The shoe itself fifty dollar basketball shoe. It has no laces,

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Speaker 1: itself tightens with a motor essentially built into the shoe.

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Speaker 1: So hold on, it's fear, Chuck Taylor, I'm just getting

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Speaker 1: over that thing. When we put the pump in a shoe, man,

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Speaker 1: we're way past the pump. Yeah. So the shoe self titans.

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Speaker 1: You can either do it with buttons on the side

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Speaker 1: of the shoe. Ideally buttons do change color or ideally, uh,

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Speaker 1: you open your app and you can tighten the shoe

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Speaker 1: using your cell phone obviously since it's powered. And also,

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Speaker 1: hold on, we have to stop the game for a second.

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Speaker 1: Where's my phone? Hold on, guys, it needs to be charged. Um,

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Speaker 1: so the shoes need to be charged on a on

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Speaker 1: a charging platform every two weeks or so. Judging by

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Speaker 1: your reaction bar, it's not it's not for you. I

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Speaker 1: think they'll be popular among some circles. It's certainly cool, right,

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Speaker 1: the cool factors there, and that's a that's a factor

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Speaker 1: that Nike prides itself in and likes to likes to

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Speaker 1: trade in. Come on and say what it's really about.

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Speaker 1: Give me the word yeah to me. The data is

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Speaker 1: there is the big is the big thing when you

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Speaker 1: buy these shoes, there's you know, there's sensors in them.

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Speaker 1: There's accelerometers, there's gyrometers. These things measure everything you do

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Speaker 1: in the shoe, right and if you're willing to share

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Speaker 1: that data with Nike, Nike can see every time you're walking,

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Speaker 1: every time you're running. The extent to which you're cutting

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Speaker 1: your change of speed. They know if you're a serious

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Speaker 1: athlete or just an amateur on the basketball court, and

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Speaker 1: that's important information for Nike, right they want to sell

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Speaker 1: you on the highest end basketball stuff if they know

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Speaker 1: that you're a serious player, or if you're just walking

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Speaker 1: around you might just want them for lifestyle, and they

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Speaker 1: want to sell you the lifestyle. Fact that they'll have

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Speaker 1: your name, what you have purchased in the past, your

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Speaker 1: credit card, this is what this is what Nike wants.

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Speaker 1: It can feed all that. It just contributes again to

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Speaker 1: the datification of what companies want. We don't know who

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Speaker 1: they are, what they're buying, when they're buying, how they're buying, etcetera.

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Speaker 1: For folks who are curious. If you live in New York,

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Speaker 1: Nike a couple of months ago opened in their flagship

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Speaker 1: store in New York on Fifth Avenue. We talked about

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Speaker 1: it on the podcast here. It's another to my I mean,

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Speaker 1: in my opinion, a great example of where Nike wants

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Speaker 1: to be going as a company. You almost can't walk

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Speaker 1: through the store if you don't have the app out simultaneously.

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Speaker 1: There's so much about the experience in the store, and

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Speaker 1: there are so many bells and whistles and perks and

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Speaker 1: advantages that you get from shopping there. If you're already

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Speaker 1: a Nike member with the app, and this shoe is

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Speaker 1: no different. You can buy this shoe and you can

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Speaker 1: never download app, and you can just charge it and

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Speaker 1: use the buttons and that's your experience. But if you're

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Speaker 1: paying three and fifty dollars for a shoe that has

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Speaker 1: all this capability, obviously there's incentive in there to do

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Speaker 1: more with it. And doing more with it involves interacting

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Speaker 1: with Nike on a more granular level. And and and this

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Speaker 1: is the big stat right, Nike members spend three times

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Speaker 1: more than non members when they shop at Nike dot com.

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Speaker 1: So once they get you in the ecosystem, they're better

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Speaker 1: at building loyalty and better at selling you product. Well,

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Speaker 1: what if you step in the puddle? I think their waterproof.

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Speaker 1: I think they figured that question first question in the

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Speaker 1: press conference. It's you know, it's my it's the Microsoft

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Speaker 1: of sneakers, okay, see, and I my big question was

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Speaker 1: can can the battery run out while you're wearing them?

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Speaker 1: And then they get difficult to get off? And that's

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Speaker 1: not true, they will automatically save enough batteries so they

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Speaker 1: will be able to lose see the data scientists take

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Speaker 1: a peek at the accelerometer when bar hits full. That's

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Speaker 1: all the ways like, is he running? Is he trotting

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Speaker 1: to catch the bus? What's this guy? What's this guy doing?

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Speaker 1: The truth is that you know, this is probably as

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Speaker 1: much as maybe the three of us are not the

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Speaker 1: target audience, this is probably the future of the foot

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Speaker 1: in a lot of ways. Years. Yeah, in thirty years,

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Speaker 1: this might be the prevailing type of shoe, right, one

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Speaker 1: that has no laces that you can tighten or loosen

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Speaker 1: via your smartphone, which is always in your hand. Let's

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Speaker 1: do the conversation that we're going to have in the household.

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Speaker 1: When you find out about there's a conversation. Go back

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Speaker 1: to Fortnit, go play fortnight exactly. Put the books away.

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Speaker 1: Wow that Okay, this this is the Bloomberg Business of

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Speaker 1: Sports podcast. I'm Michael bar along with Scotts and Evan

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Speaker 1: Nobody Williams. And that did by the way that that

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Speaker 1: it was a nice segue into what we're going to

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Speaker 1: talk about this week with Sean Bryan of Intel. So

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Speaker 1: we're tech and sports little tease as to what we're

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Speaker 1: gonna have later on in the week. We are here

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Speaker 1: each and every Monday, Wednesday and Thursday exploring the world

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Speaker 1: of money and sports. Join us again at the end

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Speaker 1: of the week. Scott just said, we're talking with Sean

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Speaker 1: Bryant who runs Intel Sports. There. They're data technology around

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Speaker 1: the sports world. I can't wait to ask them about this.

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Speaker 1: You're listening to Bloomberg Business and Sports on Bloomberg Radio

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Speaker 1: around the world and online with Sneakers and Shoelaces. Where

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Speaker 1: lay my shoes are? We get your podcast available