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Speaker 1: Bass is the business of sports? Should Major League Baseball

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Speaker 1: shorten up the season? How do we present football to

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Speaker 1: the audience of the future. I don't think that most

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Speaker 1: players understand the power that they have. The future of

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Speaker 1: IndyCar racing is looking bright. Scott Sushnick, very basic math here,

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Speaker 1: more bidders means more money, Evan Nobody Williams. The team

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Speaker 1: value has essentially quadruples. And the leaders in the sports industry.

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Speaker 1: Time to bring in our guest, hol Stiebrunner, National Hockey

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Speaker 1: League Commissioner Gary Bettman, Atlanta Braves president Derek Schiller, Patriots

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Speaker 1: President Jonathan Kraft. Bloomberg Business of Sports from Bloomberg Radio. Hello,

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Speaker 1: I'm Scott Sushi, I'm Evan Nobe Williams, and I'm Michael Barr.

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Speaker 1: This is the Bloomberg Business of Sports podcast, really where

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Speaker 1: we Evan didn't participated, explore the big money issues in

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Speaker 1: the world of sports. Like our stories. Oh my uh.

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Speaker 1: Today we begin with let's get serious. Sorry your directive.

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Speaker 1: I can't help it, man, that was funny anyway, Brooklyn Nets. Yes, uh,

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Speaker 1: they are making big now they're winning. That's the difference here.

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Speaker 1: Let me see that the stats here twenty one and

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Speaker 1: six and who would have known this. I knew they

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Speaker 1: were winning on a streak. I didn't realize they were

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Speaker 1: twenty one and six since December seven, Oh yeah, they

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Speaker 1: they've been rolling it. I mean, obviously they started out poorly,

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Speaker 1: but when they got there, they reached down. As you know,

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Speaker 1: the old cliche is like, you know, we had to

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Speaker 1: take a look in the mirror, and they did, and

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Speaker 1: then they've been playing. This is about Sean Marks and

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Speaker 1: Kenny Atkinson's they really have I know because I have

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Speaker 1: talked to folks over there. A big part of the

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Speaker 1: Kenny and Shawn regime has been to change the culture.

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Speaker 1: And this could be a business story, I really I

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Speaker 1: told him, and I want to get Shawn Marks on

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Speaker 1: the show specifically to talk about the process of changing culture.

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Speaker 1: And that means everything from getting everybody into the same space,

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Speaker 1: not one in their practice, flility and the sales people

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Speaker 1: down by the arena. Everybody has to be in the

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Speaker 1: same place to share the same culture. I know Sean

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Speaker 1: believes that, so we're gonna talking about that. But what

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Speaker 1: they're doing now, they have a new campaign. It's a

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Speaker 1: new marketing campaign. Bet On Brooklyn Okay, I see bet

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Speaker 1: on Brooklyn. But here's what I like. They're going after

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Speaker 1: the Wall Street folks. They're gonna have ads and carts

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Speaker 1: branded carts at the Fulton Street subway stop, the Wall

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Speaker 1: Street stop that they think the folks who are are

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Speaker 1: the finance folks who maybe typically hang out at Madison

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Speaker 1: Square Garden are ready to come to Brooklyn and this

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Speaker 1: is a good time because they're saying, come join now,

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Speaker 1: and they've frozen their season ticket prices for two years.

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Speaker 1: By now you get two years no price hikes. That's

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Speaker 1: the pitch eman. You're buying. Yeah, am I buying? Maybe? Yeah?

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Speaker 1: This this is the same franchise that you know ten

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Speaker 1: years ago did that that promotion ten game promotion where

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Speaker 1: they were giving out reversible jerseys, one of the nets

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Speaker 1: and the other one of the of the visiting team.

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Speaker 1: So if you if you were if you were coming

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Speaker 1: to watch Lebron James and Calves, you could just reverse

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Speaker 1: your Devin Harris jersey to be a well that's what

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Speaker 1: they did years ago. I used to tell you driving

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Speaker 1: on the New Jersey Turnpike, the nets billboard would be

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Speaker 1: come see whether the biggest stars on the other team

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Speaker 1: shack in Orlando, David Robinson. They were really advertised the

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Speaker 1: best players on the other team because they just weren't

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Speaker 1: very good. And to to bret your marks credit a

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Speaker 1: guy we found on the podcast before when when they

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Speaker 1: did that promotion. I remember him saying something to the

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Speaker 1: along the lines of, you know, we're a rebuilding team.

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Speaker 1: This is a team of stars. You know that they

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Speaker 1: were owning that. Now that the Nets are there in

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Speaker 1: fifth place, sixth place, there, they're surging. They are one

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Speaker 1: of the hottest teams in the league if you go

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Speaker 1: back a month or two. Um, obviously the branding has

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Speaker 1: to change in that regard and this seems like a

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Speaker 1: smart step. And as you said, Wall Street is a

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Speaker 1: isn't has historically been a Knicks crowd. Um, it's an

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Speaker 1: MSG crowd. If the Nets can capitalize on on this

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Speaker 1: buzz at a time when the Knicks are are not good, uh,

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Speaker 1: to maybe lure some of those people. A lot of

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Speaker 1: them live in Brooklyn. Here's to the Barclays Center. There's

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Speaker 1: the questions success, it's all about you know, the Nets

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Speaker 1: are poised maybe the superstar free agent will want to

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Speaker 1: come to Brooklyn. I think the culture they've built be careful.

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Speaker 1: The culture they've built seemingly is built on hard work.

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Speaker 1: Like these guys bring it every night. That's what they demand,

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Speaker 1: bring it every night. And I've always said, if you

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Speaker 1: can get a team to do that, you'll win more

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Speaker 1: than half your games just on that alone. Because so

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Speaker 1: many teams don't bring it every night. You better bring

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Speaker 1: the right If you're gonna have two stars, better be

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Speaker 1: the right star. It better be Tim Duncan, who's going

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Speaker 1: to be the model citizen and show everybody else I

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Speaker 1: buy in, so you better buy in. Better not be

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Speaker 1: some prima donna who's like, I don't feel like practicing today.

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Speaker 1: That doesn't work. So which stars are out there fit

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Speaker 1: in the culture of what the Nets are trying to do?

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Speaker 1: And my dad shout out Richard Williams not an NBA guy,

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Speaker 1: but he's kind of becoming a Brooklyn Nets fan. Uh.

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Speaker 1: He loves Jared Allen, the guy who's blocking all these superstars.

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Speaker 1: He is enjoying the team that the Nets have put

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Speaker 1: together because, as you said, it's built a little differently

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Speaker 1: than a lot of the more buzzy NBA teams. And

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Speaker 1: where does need a movie come down on the side

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Speaker 1: of the Brooklyn. That's a great question. I do well.

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Speaker 1: By the way, Quinky Dink think about it, I guess

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Speaker 1: who else is coming to Brooklyn? Amazon? The team is kicking.

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Speaker 1: But that's the Amazon. Yeah aren't there? Aren't they the

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Speaker 1: headquarter Long Island City? Yeah? Okay, in a technically Queen's

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Speaker 1: technically technically not completely different, get it, I get it.

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Speaker 1: But what I'm trying there's ways to get there. There's

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Speaker 1: ways to get there, and a lot of I was

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Speaker 1: gonna say, that's That's where I'm trying to go with

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Speaker 1: this thing. So you're saying that there's a whole new

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Speaker 1: bunch of folks that they might be bringing on. It's like,

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Speaker 1: you know, a lot of people are gonna go and

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Speaker 1: Brooklyn is the hot place to be now to live,

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Speaker 1: and you know it's gonna Okay, I like it. Kudos

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Speaker 1: to the Nets. Let's see how many wool Streeters decided

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Speaker 1: to head out to Barkley Center. So, and by the way,

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Speaker 1: speaking we're talking about promotions, I'm surprised that they're doing this.

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Speaker 1: As we know the super Bowl is coming up this

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Speaker 1: Sunday uh at Mercedes Benz Stadium. The pricing is going

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Speaker 1: to stay the same for hot dogs. I love bar

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Speaker 1: finding this. Evan wrote this story before the stadium opened,

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Speaker 1: like I love the people that. Rich Truman, who works

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Speaker 1: in radio here, was like, wow, I'm surprised they kept

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Speaker 1: us for the Super Bowl. It's part of the contract.

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Speaker 1: It says, any event that takes place in the stadium

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Speaker 1: has community bowl. So what it's a one off event?

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Speaker 1: What what good would it do to raise the price

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Speaker 1: for one day? Any event that takes place in that

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Speaker 1: building has the community pricing, which means it's a lot lower.

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Speaker 1: All I want to know is never gonna happen in Brooklyn,

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Speaker 1: Never gonna happen at Madison Square, guard, never gonna happen

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Speaker 1: in l A. Never but never gonna happen. When when

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Speaker 1: did it become okay to charge dollars for a hot dog?

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Speaker 1: Six dollars for so when did that become okay when

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Speaker 1: people at the game are willing to pay for it

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Speaker 1: and beer? Held hostage? At least with like at City Field,

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Speaker 1: you can bring your own food, you can bring a pack.

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Speaker 1: At least you can do they give the people the option.

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Speaker 1: It drives me nuts. That's simply because you're held hostage

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Speaker 1: in this building. The prices are what they are. Kudos

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Speaker 1: to Arthur Blank. Do they make more money because the

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Speaker 1: hot dogs are cheaper therefore people buy more? A great question.

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Speaker 1: The way it works is the Falcons pay leavies, you know,

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Speaker 1: the people who do the concessionaire a flat feet, So

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Speaker 1: leavies is okay with it because they know they're gonna

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Speaker 1: make X amount of money and then anything above and

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Speaker 1: beyond that goes to the team. Evan can now because

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Speaker 1: he was the only one and go back and look,

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Speaker 1: maybe you should tweet the story again for those who

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Speaker 1: are a little confused how this works. Everyone everyone was saying, oh,

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Speaker 1: they're making money. They making money and making more money.

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Speaker 1: Evan was the only one to do the math and

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Speaker 1: get it right. Seriously, is the only one. They Falcons

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Speaker 1: sold a lot more, uh in be food to be

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Speaker 1: expected because it was significantly cheaper. However, obviously, if you're

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Speaker 1: if you're shrinking margins that much, you need to sell

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Speaker 1: a lot a lot more to make more money. And

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Speaker 1: that's a critical difference. So a lot of people were

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Speaker 1: reporting the Falcon slash prices and made more money. That

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Speaker 1: is not true. It's not true yet there's a chance

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Speaker 1: it will get there. They believe that they will get there.

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Speaker 1: But right now they slash prices. They sold a lot

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Speaker 1: more goods, but they did not make more money in

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Speaker 1: concessions than they did in the past. However, if you're

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Speaker 1: familiar with the waste stadium economics work, it's not a huge,

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Speaker 1: huge piece of the revenue pie. I think Arthur Blink

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Speaker 1: is happy exactly. They happy to trade off a little

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Speaker 1: bit of a couple of million dollars in concession revenue

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Speaker 1: every year for the fact that fans are happy when

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Speaker 1: they go. Evan doesn't have a kid, so he doesn't

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Speaker 1: know how this part works. Because you're willing to come

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Speaker 1: to the game, and you're willing to pay the two

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Speaker 1: or five bucks for the bottomless soda whatever it is,

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Speaker 1: you're gonna go a little bit earlier. You can have

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Speaker 1: your food there. And if you've ever tried to take

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Speaker 1: a kid through a stadium, I guarantee you they haven't

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Speaker 1: set up like Disney. You don't have to go through

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Speaker 1: When you get off a what do you do? You

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Speaker 1: go through the darn store? So your kids bugging you

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Speaker 1: every single second? Can I get this? Can I get

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Speaker 1: that wand can I get that hat? You take a

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Speaker 1: kid to a game. Dad, can have a hat, can

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Speaker 1: have a foam finger? Can I have a jersey? Can

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Speaker 1: I have a bag? Can I have a puck? Whatever

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Speaker 1: it is, So it's not just limited to the hot dogs.

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Speaker 1: There's also a merchandise component as well. Also. I think

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Speaker 1: it keeps fans uh longer because then throughout the year

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Speaker 1: they remember their experience like, oh, I had such a

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Speaker 1: great time, and then throughout the year they'll probably buy

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Speaker 1: more merchandise and go to more simple when the kids

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Speaker 1: because if the kids say, dad, Mom, Dad, I want

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Speaker 1: to go to the game when the pocket got it.

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Speaker 1: The NFL keeps stats on, you know, at the time

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Speaker 1: before the game starts, when your stadium starts to fill up.

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Speaker 1: And no surprise, the Falcons had the earliest average fan

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Speaker 1: arrival in the league. And that's because people are not

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Speaker 1: eating before they go there. They're going there to eat

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Speaker 1: because it's the cheap option. And I wonder if that's

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Speaker 1: how played a role in Also the soccer team drawing

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Speaker 1: seventy It was regular pricing. It wasn't seven thousands. What

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Speaker 1: else we got that was a little segue that wasn't

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Speaker 1: even on the list, that wasn't on the list so

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Speaker 1: now we have time, we picked one of the last two.

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Speaker 1: I would say Coke Pepsi because you know, Mr No,

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Speaker 1: right ahead, I think you're right. No, you're the set up.

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Speaker 1: Now you're the set up man. John Wetland, Marianna Riveroke Pepsi,

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Speaker 1: get set up. Yeah. So uh. The super Bowl in

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Speaker 1: Atlanta is obviously home headquarters for for coke. Atlanta is

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Speaker 1: if you've been before, Atlanta is a coke city. Um. However,

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Speaker 1: the official soda, official beverage of the of the NFL

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Speaker 1: is Pepsi um. And if you've ever been to a

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Speaker 1: Super Bowl before or you can imagine it, the NFL

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Speaker 1: and the host city does a tremendous job essentially scrubbing

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Speaker 1: rival mostly protecting very closely protected, especially around the stadium

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Speaker 1: and around the fan zone. That this big area, the

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Speaker 1: fan fest the most traffic area. Joke, this is not hyperbole.

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Speaker 1: NBA All Star at the Pepsi Center in Denver. I

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Speaker 1: walked out. I think it was what's the coke water

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Speaker 1: to Sani? I walked out with a Dosani. I got

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Speaker 1: tackled I from behind, embraced around the waist almost down.

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Speaker 1: You have to pour that in a cup. I was

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Speaker 1: told who grabs and it's one of the stadium concession guys,

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Speaker 1: you know the first of all. Who Well, I'll not

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Speaker 1: get it, you know whatever, But no, just say, look,

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Speaker 1: you can't take that in there, poured in a cup. Yes,

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Speaker 1: nobody has the right to put their hands on you. Yes,

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Speaker 1: you're right. He was breaking the cardinal rule of sporting

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Speaker 1: events bringing a non sponsor into the event. You put

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Speaker 1: your hands on it, you're gonna break the card in

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Speaker 1: the rule of getting a butt weapon because you didn't.

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Speaker 1: Nobody puts your hands on it, like, I'm sorry, I'm sorry.

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Speaker 1: Part I brought my own cup. I'm sorry, that's not cool.

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Speaker 1: Put your hands on missing the point. We have a

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Speaker 1: good content opportunity here. We're gonna take part of the

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Speaker 1: march badness with with the Pepsi cup and in the

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Speaker 1: world hit the nail. Sorry sorry, So what's Cape doing then?

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Speaker 1: If if you're in Atlanta and you have to do something.

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Speaker 1: And the fun thing about the way this is set

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Speaker 1: up in Atlanta is that within that restricted zone, the

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Speaker 1: zone where only NFL partners are allowed to activate, Coke

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Speaker 1: actually has a physical like when he used his jargon,

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Speaker 1: Coke actually has a physical property. The World of Coca Cola,

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Speaker 1: which is their big square foot museum down in Atlanta,

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Speaker 1: is within the zone that typically would be scrubbed of

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Speaker 1: all competitors. There's a twenty seven foot coke bottle in

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Speaker 1: a hundred foot glass tower that's lit at night. Um

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Speaker 1: it is. It is an unfortunate kind of side effect

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Speaker 1: of the Cola wars that we've seen. I don't remember,

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Speaker 1: you know, I always say, weird stuff goes through my head.

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Speaker 1: I'm just trying to imagine the music that's in like

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Speaker 1: the Coke World. It's like Wally Wanka as good. Oh

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Speaker 1: my god, get me out of here. Yeah. At all times,

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Speaker 1: I'm just going, oh my god. You know what the

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Speaker 1: factory I did when I was visiting Atlanta, And there's

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Speaker 1: actually a part towards the end where you get a

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Speaker 1: cup and you get to try every single kind of

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Speaker 1: coke product. And there was a Fanta. Oh my god,

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Speaker 1: a Fanta soda drink that was amazing. I don't know,

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Speaker 1: it was just so good. Bring back to Fanta. I

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Speaker 1: love it. I love this would drive me crazy. Any

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Speaker 1: of you guys ever heard of Burners. That's that's a

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Speaker 1: Detroit drink. The best ginger ale that was made anywhere anytime.

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Speaker 1: Burners still around her now it's still around. But you

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Speaker 1: know it's it's like boilance. It's like a specialty really quick.

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Speaker 1: It was called and to Exotica. Yeah, can we find that?

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Speaker 1: Can you go? Can we get a little of the world?

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Speaker 1: And I think it was a part of like South Africa,

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Speaker 1: not now now I got the Disney Uh it's a

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Speaker 1: small world going through the little canal. Oh my gosh,

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Speaker 1: it's a nightmare. Oh god, I think we're done for

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Speaker 1: the So what's a better game? Rams and Patriots or

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Speaker 1: coke verst Pepsi? Oh man for me? Like yeah, but again,

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Speaker 1: these companies they do this all the time. The venue

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Speaker 1: itself is actually a coke venue, you know, so so

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Speaker 1: they'll be pouring coke, but the signs are gone, no

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Speaker 1: coke cups at the actual game. There's a lot of

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Speaker 1: fun little that's the that's the audio. We need to

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Speaker 1: get Pepsi. By the way, at my nine people so

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Speaker 1: far that have answered on who's gonna win, the Patriots

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Speaker 1: or the Rams? Uh five or it's the Patriots for

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Speaker 1: now four saying it's the Rams. We're still up there

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Speaker 1: for a day, folks, it's it's awful, driving me crazy.

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Speaker 1: The music undernea it now it's subliminal. Drink drink coke? Right? Oh?

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Speaker 1: Was that that was coke? Wasn't it? Drink coke? Drink

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Speaker 1: coke in the movie theater the subliminal as Anyway, this

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Speaker 1: is the Bloomberg Business of Sports podcast. Michael Barr along

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Speaker 1: with Scott Sasnick and Evan W. Williams. 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 in sports. Join us again at the end

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Speaker 1: of the week when we speak with Kevin dem Off,

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Speaker 1: the CEO of the Super Bowl Bound it was. It

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Speaker 1: was good. It's a good conversation. All I gotta say

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Speaker 1: is you gotta hear his Wolfgang Puck and Sean McBeth story.

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

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Speaker 1: around the world. We love you, Medina and online where

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Speaker 1: you get your podcasts. Seven