1 00:00:02,520 --> 00:00:09,200 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Okay, I'm gonna sit back. 2 00:00:09,320 --> 00:00:12,800 Speaker 1: Alexis Christophus can't even She's had two titos and tanks 3 00:00:12,840 --> 00:00:15,400 Speaker 1: just this announcement, and the Rangers and the Knicks. Paul 4 00:00:15,440 --> 00:00:18,599 Speaker 1: Sweeney has those those rock star seats for the Knicks 5 00:00:18,920 --> 00:00:22,280 Speaker 1: as well. Nick Turner's biggest headache has joined us. Randall 6 00:00:22,320 --> 00:00:25,600 Speaker 1: Williams is with us. Write it up? Does Ronald Gregory 7 00:00:25,760 --> 00:00:28,520 Speaker 1: ever Senior? AMX all of it? 8 00:00:28,640 --> 00:00:30,680 Speaker 2: All of my managers have seen it. They've ast sen 9 00:00:31,320 --> 00:00:33,920 Speaker 2: I'm under the bad bunny merch at the Super Bowl. 10 00:00:33,960 --> 00:00:35,720 Speaker 2: I didn't. I don't have any bad bunny March, not 11 00:00:35,800 --> 00:00:38,919 Speaker 2: this time. I wore Kendrick Coudy yesterday from Super Bowl 12 00:00:39,000 --> 00:00:40,840 Speaker 2: fifty nine half time show. But I did not get 13 00:00:40,840 --> 00:00:42,080 Speaker 2: any bad bunny March this year. 14 00:00:42,200 --> 00:00:42,600 Speaker 3: Interesting. 15 00:00:42,640 --> 00:00:45,400 Speaker 4: Randa Williams, EO sports business reporter for Bloomberg News Joints, 16 00:00:45,440 --> 00:00:45,680 Speaker 4: is here. 17 00:00:45,880 --> 00:00:47,880 Speaker 3: Randall. We saw some news this morning. 18 00:00:48,000 --> 00:00:50,920 Speaker 4: Alexis was just reporting at MSG, which is a publicly 19 00:00:51,000 --> 00:00:55,280 Speaker 4: traded company, UH, thinking about splitting off two of their main. 20 00:00:55,120 --> 00:00:57,720 Speaker 3: Businesses, the Knicks and the Rangers. What's behind that? Do 21 00:00:57,760 --> 00:00:58,080 Speaker 3: you think? 22 00:00:58,480 --> 00:00:58,639 Speaker 1: Well? 23 00:00:58,680 --> 00:01:00,440 Speaker 2: They said in the statement that they want to get 24 00:01:00,440 --> 00:01:03,400 Speaker 2: a proper valuation on these things. Msg is a company's 25 00:01:03,480 --> 00:01:07,040 Speaker 2: valued at seven billion dollars Sporter Coo Forbes, CNBC all 26 00:01:07,200 --> 00:01:10,280 Speaker 2: estimate the Knicks and the Rangers combined are much larger 27 00:01:10,319 --> 00:01:12,759 Speaker 2: than that. You're talking about the Knicks being at ten potentially, 28 00:01:12,840 --> 00:01:15,399 Speaker 2: the Rangers probably at three to four, and so that 29 00:01:15,480 --> 00:01:18,360 Speaker 2: combined is anywhere between thirteen to fourteen billion dollars. I 30 00:01:18,400 --> 00:01:22,000 Speaker 2: think when you're thinking about these assets, they are very huge, 31 00:01:22,040 --> 00:01:23,920 Speaker 2: and they want to get a proper valuation on them. 32 00:01:24,160 --> 00:01:26,679 Speaker 4: Is it they're generally speaking? Though, when you think about that, 33 00:01:26,720 --> 00:01:28,600 Speaker 4: whether you're thinking about the Atlanta Braves, which is also 34 00:01:28,640 --> 00:01:31,200 Speaker 4: publicly tradition that they do in fact trade at a 35 00:01:31,280 --> 00:01:34,760 Speaker 4: discount to private market value. But I guess the Dolans 36 00:01:34,760 --> 00:01:36,839 Speaker 4: are thinking not this much of a discount. 37 00:01:36,920 --> 00:01:38,880 Speaker 2: Yeah, I think so. I mean, look, the Knix of 38 00:01:38,959 --> 00:01:41,680 Speaker 2: the I believe the third most valuable team depending on 39 00:01:41,720 --> 00:01:42,759 Speaker 2: who you asked. I'm sure. 40 00:01:43,880 --> 00:01:44,559 Speaker 3: I think if. 41 00:01:44,440 --> 00:01:47,640 Speaker 2: Both Warriors and the Lakers were up for sale again, 42 00:01:47,680 --> 00:01:50,560 Speaker 2: they might trade for higher, but there would be a strong, 43 00:01:50,720 --> 00:01:52,800 Speaker 2: strong market. And the Rangers as well, because they do 44 00:01:52,920 --> 00:01:54,920 Speaker 2: play so Lexis are like. 45 00:01:54,920 --> 00:01:58,760 Speaker 1: The Toronto Maple Leafs. They're like the third most valuable franchise, which. 46 00:01:58,600 --> 00:02:00,840 Speaker 5: Is crazy when you think about the fact that both 47 00:02:00,840 --> 00:02:03,520 Speaker 5: the Knicks and the Rangers haven't won a championship in years. 48 00:02:03,520 --> 00:02:05,440 Speaker 5: And the Nicks and we're talking about nineteen seventy three. 49 00:02:05,760 --> 00:02:08,240 Speaker 3: I was a toddler. What's going on? So what would 50 00:02:08,240 --> 00:02:08,800 Speaker 3: they be worth? 51 00:02:08,919 --> 00:02:11,200 Speaker 5: You know, if they actually went out and won a championship. 52 00:02:11,400 --> 00:02:15,359 Speaker 2: I think that there is a championship surge as part 53 00:02:15,400 --> 00:02:17,120 Speaker 2: of it. You'll probably see it. What the Seahawks are, 54 00:02:17,200 --> 00:02:19,920 Speaker 2: which are expected to trade later this year. Give us 55 00:02:19,919 --> 00:02:24,000 Speaker 2: a number on the Seahawks. I would guess at minimum 56 00:02:24,000 --> 00:02:28,280 Speaker 2: eight billion, at maximum ten That would be my guess 57 00:02:28,320 --> 00:02:30,800 Speaker 2: on the Seahawks. And the reason that these assets trade 58 00:02:30,800 --> 00:02:32,600 Speaker 2: for so large is because there's not that many of them. 59 00:02:32,680 --> 00:02:35,240 Speaker 2: You're talking about a New York based market. And so 60 00:02:35,320 --> 00:02:37,440 Speaker 2: with that in mind, anybody who wants to own a 61 00:02:37,440 --> 00:02:40,280 Speaker 2: sports franchise, it's almost a once in a lifetime opportunity. 62 00:02:40,320 --> 00:02:42,959 Speaker 2: The Knicks, whoever were to buy them, if they were 63 00:02:43,000 --> 00:02:45,240 Speaker 2: for sale, would probably not be up for sale for another. 64 00:02:45,080 --> 00:02:47,280 Speaker 5: Fifty you know, much another once in a lifetime opportunity 65 00:02:47,360 --> 00:02:50,720 Speaker 5: to see them live because these ticket prices are out 66 00:02:50,720 --> 00:02:54,680 Speaker 5: of You're not wrong, So I guess if they spin off, 67 00:02:54,680 --> 00:02:56,359 Speaker 5: We're still not going to get cheaper tickets, are we? 68 00:02:56,480 --> 00:02:58,800 Speaker 2: Sports are a luxury experience right now. Gone are the 69 00:02:58,840 --> 00:03:00,480 Speaker 2: days where you can just be like, oh, I want 70 00:03:00,480 --> 00:03:02,160 Speaker 2: to go to a Knicks game and walk in. Now 71 00:03:02,200 --> 00:03:03,400 Speaker 2: you sort of have to plan for it. 72 00:03:03,680 --> 00:03:06,840 Speaker 4: We had the head of Sports Investment Bank into Goldman 73 00:03:06,919 --> 00:03:09,840 Speaker 4: Sachs yesterday in on the Bloomerg Intelligence over Day Days yep, 74 00:03:09,960 --> 00:03:11,880 Speaker 4: and he did a great job. But he was saying, 75 00:03:12,080 --> 00:03:16,000 Speaker 4: there's institutional investor money out there, Tom that is looking 76 00:03:16,040 --> 00:03:18,920 Speaker 4: to invest in professional sports franchise. They now view it 77 00:03:18,919 --> 00:03:22,160 Speaker 4: as an asset class, not as like a trophy property. 78 00:03:22,320 --> 00:03:24,800 Speaker 4: It stops bonds in sports teams. 79 00:03:25,800 --> 00:03:27,639 Speaker 1: Excuse me, it sounds like David Rubertstein. 80 00:03:27,800 --> 00:03:29,440 Speaker 3: Yes, exactly, absolutely. 81 00:03:29,520 --> 00:03:30,960 Speaker 2: I mean you look at the next they have silver 82 00:03:31,040 --> 00:03:34,359 Speaker 2: Lake as one of their investors, or Madison Square Garden 83 00:03:34,400 --> 00:03:37,040 Speaker 2: has silver Lake. You look across sports and private equity 84 00:03:37,120 --> 00:03:40,280 Speaker 2: is increasingly buying more stakes because they are seeing these 85 00:03:40,320 --> 00:03:43,560 Speaker 2: media rights fees continue to rise. You're seeing sports franchise 86 00:03:43,640 --> 00:03:46,600 Speaker 2: valuations continue to rise. Years ago, the Knicks were probably 87 00:03:46,600 --> 00:03:49,080 Speaker 2: worth between two to three billion dollars Today they're valued 88 00:03:49,080 --> 00:03:52,080 Speaker 2: at ten. When I think these private investment firms are 89 00:03:52,080 --> 00:03:53,800 Speaker 2: looking at this, they're like, Okay, well, if this is 90 00:03:53,840 --> 00:03:56,000 Speaker 2: turning over so many times over again. 91 00:03:56,080 --> 00:03:57,680 Speaker 3: Of course I would like to be in the dance 92 00:03:57,920 --> 00:03:58,560 Speaker 3: private equity. 93 00:03:58,600 --> 00:04:01,880 Speaker 4: We've seen private equity in the NFL, of course, will 94 00:04:01,880 --> 00:04:03,520 Speaker 4: we see that in other sports? 95 00:04:03,520 --> 00:04:04,000 Speaker 3: It's all over. 96 00:04:04,040 --> 00:04:06,720 Speaker 2: The NFL was the last to add the rules. The 97 00:04:06,800 --> 00:04:09,600 Speaker 2: NBA has had private equity for years, so as the NHL, 98 00:04:09,680 --> 00:04:12,000 Speaker 2: the MLB, and I believe the MLS as well. 99 00:04:12,400 --> 00:04:14,400 Speaker 4: I mean, it used to be a sport for if 100 00:04:14,440 --> 00:04:16,640 Speaker 4: you're a millionaire, you own a sports team. 101 00:04:16,839 --> 00:04:19,400 Speaker 3: Right now it's billionaire. 102 00:04:19,400 --> 00:04:23,960 Speaker 4: And even then, Stevie Cohen, the wealthiest owner in Major 103 00:04:24,040 --> 00:04:29,000 Speaker 4: League Baseball individually, is being outgunned by this consortium of investors. 104 00:04:28,400 --> 00:04:29,760 Speaker 3: In Los Angeles for the Dodgers. 105 00:04:29,880 --> 00:04:30,080 Speaker 1: Yeah. 106 00:04:30,080 --> 00:04:32,080 Speaker 2: And I think a good way to look at this 107 00:04:32,279 --> 00:04:34,960 Speaker 2: is thinking about the Seahawks sale. Let's say that they 108 00:04:34,960 --> 00:04:38,200 Speaker 2: do sell for at minimum eight billion dollars. Well, in 109 00:04:38,400 --> 00:04:40,760 Speaker 2: NFL rules that you have to have thirty percent of 110 00:04:40,800 --> 00:04:44,720 Speaker 2: that overall valuation in cash, so that's at minimum two 111 00:04:44,760 --> 00:04:46,960 Speaker 2: point five billion dollars. There's not that many people in 112 00:04:46,960 --> 00:04:49,320 Speaker 2: the world who can write that check. That check cannot 113 00:04:49,360 --> 00:04:51,839 Speaker 2: come from private equity. You can use private equity to 114 00:04:51,920 --> 00:04:53,640 Speaker 2: add on to that to get to the eight billion 115 00:04:53,680 --> 00:04:57,159 Speaker 2: dollar number after the discount. But it's a lot of 116 00:04:57,200 --> 00:04:59,599 Speaker 2: money to buy these sports franchises. In the pool of 117 00:05:00,040 --> 00:05:02,520 Speaker 2: you know, people who can buy these teams is getting smaller. 118 00:05:02,839 --> 00:05:03,160 Speaker 1: All right. 119 00:05:03,200 --> 00:05:06,479 Speaker 4: You were out in the Bay Area for the Super Bowl. 120 00:05:07,320 --> 00:05:10,520 Speaker 4: I mean six nothing going into the third quarter, but 121 00:05:10,680 --> 00:05:13,560 Speaker 4: still one hundred and twenty five billion people tuned in. 122 00:05:14,040 --> 00:05:17,880 Speaker 3: I mean this is the juggernaut. No scientific, yah, it is. 123 00:05:17,960 --> 00:05:21,160 Speaker 2: The NFL is a booming business unlike any other when 124 00:05:21,400 --> 00:05:24,760 Speaker 2: you have two teams, Seahawks and the Patriots. Who you know, 125 00:05:24,760 --> 00:05:27,200 Speaker 2: Boston is a big market, but Seattle is mid size 126 00:05:27,200 --> 00:05:30,239 Speaker 2: market and they attract that number. Of course, Roger Goodell 127 00:05:30,279 --> 00:05:31,720 Speaker 2: wants to rip up the media deal and go get 128 00:05:31,760 --> 00:05:32,279 Speaker 2: some more money. 129 00:05:32,480 --> 00:05:35,800 Speaker 1: Randa Williams with this definitive and US Sports and the 130 00:05:35,839 --> 00:05:38,960 Speaker 1: finance of it as well, just absolutely owns a high 131 00:05:38,960 --> 00:05:43,040 Speaker 1: grown Thank you. I know this, this this back and forth. 132 00:05:43,440 --> 00:05:49,080 Speaker 1: You went to Hampton University. My father beat into me 133 00:05:49,360 --> 00:05:53,080 Speaker 1: that you read Tom Boswell and the Baltimore Sun in 134 00:05:53,120 --> 00:05:57,880 Speaker 1: the Washington Post. Randa Williams on the elimination of the 135 00:05:58,200 --> 00:06:02,520 Speaker 1: venerable sports desk of the Washington Post discuss. 136 00:06:03,120 --> 00:06:05,120 Speaker 2: Yeah, I had some friends who are actually out there 137 00:06:05,120 --> 00:06:07,360 Speaker 2: with me on the Super Bowl trip, who were at 138 00:06:07,440 --> 00:06:09,760 Speaker 2: Roger Godell's press conference and they got the news there 139 00:06:09,880 --> 00:06:13,120 Speaker 2: and it's a travesty. I mean, you think about just 140 00:06:13,160 --> 00:06:15,400 Speaker 2: the things that have occurred in Washington, DC over the 141 00:06:15,440 --> 00:06:18,880 Speaker 2: last five years with the Commander's sale before that, the 142 00:06:18,920 --> 00:06:22,240 Speaker 2: ownership of Dan Snyder, NFL owner is essentially forcing him out, 143 00:06:22,520 --> 00:06:26,080 Speaker 2: alongside the coverage of just Washington DC as a whole. 144 00:06:26,120 --> 00:06:28,360 Speaker 2: That's that's some of the larger stories. But talk about 145 00:06:28,360 --> 00:06:31,039 Speaker 2: the Wizards and when they were thinking about moving to 146 00:06:31,160 --> 00:06:34,640 Speaker 2: think about the Washington Post without a sports money loser. 147 00:06:35,000 --> 00:06:37,679 Speaker 1: Because I went down the Washington Post yesterday. I literally 148 00:06:37,720 --> 00:06:42,520 Speaker 1: did this, folks. I counted twelve articles of Washington Post substance, 149 00:06:42,600 --> 00:06:47,559 Speaker 1: international politics and that, and the next article was here's 150 00:06:47,600 --> 00:06:49,560 Speaker 1: the three ways to eat the cheese pizza. 151 00:06:49,960 --> 00:06:51,160 Speaker 2: Yeah, it's ridiculous. 152 00:06:51,279 --> 00:06:57,400 Speaker 1: That's what we're substituting for the legacy of Sally jenkinsous. 153 00:06:55,960 --> 00:06:58,720 Speaker 2: Well, it's ridiculous. I think that you know, the Baltimore 154 00:06:58,720 --> 00:07:00,840 Speaker 2: Banner had announced that they are going to be hiring 155 00:07:00,880 --> 00:07:02,960 Speaker 2: some people to cover DC, and I think that that's good. 156 00:07:03,040 --> 00:07:06,640 Speaker 2: But to imagine the Washington Post without a sports desk 157 00:07:06,720 --> 00:07:07,239 Speaker 2: is who. 158 00:07:07,120 --> 00:07:09,800 Speaker 1: Was your hero? You're at Hampton, okay, you're a kid. 159 00:07:10,160 --> 00:07:11,800 Speaker 1: Who is your hero in sports writing? 160 00:07:12,000 --> 00:07:14,280 Speaker 2: I would say Bill Roden? Bill Roden, who was at 161 00:07:14,320 --> 00:07:16,720 Speaker 2: the New York Times for many, many years. And to 162 00:07:16,800 --> 00:07:18,800 Speaker 2: think about even the New York Times and what they 163 00:07:18,880 --> 00:07:21,920 Speaker 2: have done, like they bought the they have and there 164 00:07:21,920 --> 00:07:24,200 Speaker 2: are still sports writers here and there that the dabble. 165 00:07:24,640 --> 00:07:27,480 Speaker 2: But they bought the Athletic and that is essentially their substitute. 166 00:07:27,480 --> 00:07:30,280 Speaker 2: The Washington Polsion did not buy anything. They just cut jobs. 167 00:07:30,600 --> 00:07:33,560 Speaker 1: I have in my closet at home a fancy leather 168 00:07:33,600 --> 00:07:37,360 Speaker 1: briefcase what would you expect from years ago? And in 169 00:07:37,480 --> 00:07:41,200 Speaker 1: it is a folded up globe of Buster Only. Excuse me, 170 00:07:41,240 --> 00:07:46,240 Speaker 1: maybe at times Buster One's classic article on Pedro Martinez 171 00:07:46,280 --> 00:07:50,640 Speaker 1: getting older. That's what we're losing is people like Only 172 00:07:50,720 --> 00:07:55,280 Speaker 1: and others George Will's you know, away from it maybe 173 00:07:55,520 --> 00:07:58,040 Speaker 1: and all that this has been great? Can you your 174 00:07:58,560 --> 00:08:03,320 Speaker 1: travels like American Express? Redo just emailed it, keeper of 175 00:08:03,360 --> 00:08:05,760 Speaker 1: the AMEX and said to random us. 176 00:08:06,480 --> 00:08:08,679 Speaker 2: Down, I don't even think I would crack top fifty 177 00:08:08,720 --> 00:08:09,240 Speaker 2: in the company. 178 00:08:10,240 --> 00:08:12,680 Speaker 1: Why are you looking at me? What are you going 179 00:08:13,000 --> 00:08:15,320 Speaker 1: to Canada? US in two days? In Italy? 180 00:08:16,640 --> 00:08:18,000 Speaker 2: Here he's trying to set me up. 181 00:08:18,000 --> 00:08:19,600 Speaker 3: He's trying to get me on the fly out of there. 182 00:08:19,800 --> 00:08:22,160 Speaker 3: You can take my place, you can take my place. 183 00:08:22,200 --> 00:08:22,840 Speaker 2: I'm not headed out. 184 00:08:22,840 --> 00:08:25,120 Speaker 1: We'll let Alexis go. Ridda Williams, thank you, thank you 185 00:08:25,200 --> 00:08:28,520 Speaker 1: so much. Short notice and this is Alexis. Was that okay? 186 00:08:28,560 --> 00:08:30,440 Speaker 1: Did we learn about the Rangers and the Knicks? 187 00:08:30,560 --> 00:08:32,199 Speaker 3: I think he did a great job. I learned the 188 00:08:32,280 --> 00:08:33,840 Speaker 3: ten billion they've never won. 189 00:08:33,920 --> 00:08:36,960 Speaker 5: These are eye popping numbers. New York Yankees? Are they 190 00:08:36,960 --> 00:08:39,000 Speaker 5: worth like eight and a half worth? 191 00:08:40,320 --> 00:08:42,880 Speaker 3: I don't know. My boy Jos the debts, he's left 192 00:08:43,320 --> 00:08:44,120 Speaker 3: the five seconds. 193 00:08:44,120 --> 00:08:45,120 Speaker 1: What are the Yankees worth? 194 00:08:45,800 --> 00:08:48,920 Speaker 2: I say, I say the Yankees got to be worth 195 00:08:48,960 --> 00:08:52,320 Speaker 2: more than ten Yankees. The Lakers traded for ten last year. 196 00:08:52,320 --> 00:08:54,120 Speaker 2: I think the Yankees would go for something similar.