1 00:00:00,600 --> 00:00:03,200 Speaker 1: Thanks for joining us on the Bloomberg Business of Sports show, 2 00:00:03,200 --> 00:00:05,040 Speaker 1: but we explore the big money issues in the world 3 00:00:05,080 --> 00:00:08,560 Speaker 1: of sports on Michael Barr. Hockey fans are excited for 4 00:00:08,600 --> 00:00:12,760 Speaker 1: the NHL's Winter Classic on Monday at two in the 5 00:00:12,840 --> 00:00:16,160 Speaker 1: afternoon drum Fenway Park. To set the stage for it, 6 00:00:16,239 --> 00:00:19,640 Speaker 1: let's take a listen to a special conversation with NHL 7 00:00:19,680 --> 00:00:22,600 Speaker 1: Commissioner Gary Bettman about the state of the sport and 8 00:00:22,640 --> 00:00:26,360 Speaker 1: how the NHL is positioning itself for the future. He 9 00:00:26,480 --> 00:00:29,560 Speaker 1: spoke with Bloomberg Quick Take chief correspond to Jason Kelly 10 00:00:29,760 --> 00:00:33,000 Speaker 1: and our own Scarlet Food. The nature of the game 11 00:00:33,159 --> 00:00:37,239 Speaker 1: has always been physical, and we think we've maintained the 12 00:00:37,360 --> 00:00:42,680 Speaker 1: essential physicality the the emphasis of the focus on fighting 13 00:00:43,080 --> 00:00:47,400 Speaker 1: has always I think historically given the game the reputation 14 00:00:47,960 --> 00:00:52,440 Speaker 1: you're referring to, what we're really focused on is speed 15 00:00:52,560 --> 00:00:57,080 Speaker 1: and skill and the extraordinary competitive balance that we have 16 00:00:57,920 --> 00:01:00,240 Speaker 1: when you look at our races to the playoff, when 17 00:01:00,280 --> 00:01:02,920 Speaker 1: you look at our playoffs, I don't think there's anything 18 00:01:02,920 --> 00:01:07,080 Speaker 1: in sports like our first round. UH. And the game 19 00:01:07,120 --> 00:01:11,959 Speaker 1: has gotten younger, I think it's gotten more entertaining, UH 20 00:01:12,040 --> 00:01:16,080 Speaker 1: and that has paid dividends in terms of what goes 21 00:01:16,160 --> 00:01:19,360 Speaker 1: on off the ice as well, but the game itself 22 00:01:19,480 --> 00:01:22,880 Speaker 1: and and the players, both former players and current players 23 00:01:23,400 --> 00:01:26,480 Speaker 1: all marvel saying that the game may be in the 24 00:01:26,520 --> 00:01:29,160 Speaker 1: best place it's ever been. And so what have you 25 00:01:29,280 --> 00:01:32,800 Speaker 1: seen this season that that gives you the confidence to 26 00:01:32,959 --> 00:01:34,920 Speaker 1: say that what what sort of stood out so far? 27 00:01:35,280 --> 00:01:38,360 Speaker 1: They're the things that I look at, you know, for example, 28 00:01:39,080 --> 00:01:43,000 Speaker 1: over of our games, uh, and I think that's been 29 00:01:43,040 --> 00:01:46,640 Speaker 1: the case now for the last five years at this point, 30 00:01:47,000 --> 00:01:51,960 Speaker 1: um are the result of a come from behind victory 31 00:01:52,120 --> 00:01:55,160 Speaker 1: so that the game is never at a reach. And 32 00:01:55,200 --> 00:01:57,960 Speaker 1: I think we may be even seeing a record on 33 00:01:58,200 --> 00:02:04,560 Speaker 1: multi goal comeback. Uh. Of our top twenty scorers, I 34 00:02:04,600 --> 00:02:08,960 Speaker 1: believe half of them or or younger. And then you 35 00:02:09,000 --> 00:02:12,680 Speaker 1: see Alex Ovechkin, who isn't one of the youngsters, but 36 00:02:12,919 --> 00:02:17,920 Speaker 1: he's now you know, about to tie and break Gordy 37 00:02:18,000 --> 00:02:23,720 Speaker 1: House record. And even Wayne Gretzky's record of goal scoring, 38 00:02:24,080 --> 00:02:28,919 Speaker 1: which had been for years something that nobody thought could 39 00:02:29,000 --> 00:02:32,680 Speaker 1: ever be approached, is in jeopardy. And Wayne, by the way, 40 00:02:32,840 --> 00:02:35,799 Speaker 1: is excited by that as well. So in terms of 41 00:02:35,840 --> 00:02:40,880 Speaker 1: the fundamentals of an exciting competitive game that's entertaining in 42 00:02:40,960 --> 00:02:44,360 Speaker 1: terms of most, if not all, of our clubs being 43 00:02:44,400 --> 00:02:48,600 Speaker 1: competitive because of the system we have. We find ourselves 44 00:02:49,200 --> 00:02:52,720 Speaker 1: as a game in a good place, and we weathered 45 00:02:52,919 --> 00:02:56,760 Speaker 1: COVID extraordinarily well in terms of coming out of it. 46 00:02:56,760 --> 00:02:59,640 Speaker 1: It was difficult and challenging to get through it, but 47 00:02:59,680 --> 00:03:02,640 Speaker 1: we did it, UH, and we find themselves as a 48 00:03:02,680 --> 00:03:05,280 Speaker 1: result in a very good place both on and off 49 00:03:05,320 --> 00:03:09,720 Speaker 1: the ice. How about financially, I read that how about 50 00:03:09,760 --> 00:03:12,919 Speaker 1: financially because I believe revenue is what five point four 51 00:03:12,960 --> 00:03:16,720 Speaker 1: billion last year we were projecting coming out of COVID 52 00:03:16,800 --> 00:03:21,000 Speaker 1: and having people in most of our buildings for most 53 00:03:21,040 --> 00:03:25,000 Speaker 1: of the season, we thought we would have four point 54 00:03:25,080 --> 00:03:28,400 Speaker 1: nine five billion, and actually we think we've come in 55 00:03:28,400 --> 00:03:31,000 Speaker 1: at about five point four billion, so that's about a 56 00:03:31,000 --> 00:03:33,120 Speaker 1: half a billion more than we were anticipating, which is 57 00:03:33,160 --> 00:03:35,320 Speaker 1: a record. The four point nine billion would have been 58 00:03:35,320 --> 00:03:39,800 Speaker 1: a record for us, and we're projecting continued growth. Our 59 00:03:39,960 --> 00:03:43,680 Speaker 1: business people at the league level, UH did a remarkable 60 00:03:43,760 --> 00:03:48,520 Speaker 1: job over the two year COVID period in engaging renewals 61 00:03:48,640 --> 00:03:53,440 Speaker 1: or new partnerships from a business standpoint, where I think 62 00:03:53,480 --> 00:03:57,760 Speaker 1: close to thirty different entities, So our business has never 63 00:03:57,800 --> 00:04:02,600 Speaker 1: been better or stronger off the ice, our attendance is back. Uh. 64 00:04:02,640 --> 00:04:06,560 Speaker 1: And so yeah, the growth we think will continue as 65 00:04:06,600 --> 00:04:09,320 Speaker 1: we've seen. What about the strong dollar, the weak Canadian 66 00:04:09,320 --> 00:04:11,720 Speaker 1: dollar must have had some impact, It hasn't. Well, we 67 00:04:11,800 --> 00:04:14,720 Speaker 1: do all of our computations under our system for the 68 00:04:14,760 --> 00:04:17,799 Speaker 1: Captain with the Players Association. The s grow in US 69 00:04:17,880 --> 00:04:22,279 Speaker 1: dollars and the Canadian dollar gets a little weaker. Uh, 70 00:04:22,440 --> 00:04:25,000 Speaker 1: it has an impact. But if you're doing five point 71 00:04:25,040 --> 00:04:28,960 Speaker 1: four billion dollars and again seven of our thirty two 72 00:04:29,040 --> 00:04:31,880 Speaker 1: clubs are in Canada, it has an impact, but it's 73 00:04:31,920 --> 00:04:34,440 Speaker 1: not dramatic. I mean it's more of an impact in 74 00:04:34,560 --> 00:04:37,880 Speaker 1: the Canadian clubs. But again, the system we have in 75 00:04:37,960 --> 00:04:42,040 Speaker 1: place in US dollars tries to mitigate against the impact 76 00:04:42,080 --> 00:04:44,760 Speaker 1: of the Canadian dollar. And so when you think about 77 00:04:44,839 --> 00:04:48,719 Speaker 1: that revenue mix, what what drove the change or what 78 00:04:48,839 --> 00:04:53,920 Speaker 1: drove the the upside? Well, Uh, media is particularly our 79 00:04:54,040 --> 00:04:57,400 Speaker 1: new relationships that are now a year old with the 80 00:04:57,440 --> 00:05:03,279 Speaker 1: Walt Disney Company ESPN principally and with what was Turner 81 00:05:03,680 --> 00:05:06,279 Speaker 1: and A T and T is now Warner Brothers Discovery. 82 00:05:06,360 --> 00:05:10,080 Speaker 1: There was a large uptick there. Our clubs locally are 83 00:05:10,520 --> 00:05:14,760 Speaker 1: negotiating new deals as they come do and that's been increasing. 84 00:05:15,200 --> 00:05:21,480 Speaker 1: Our partnerships are licensed products on all fronts. We're continuing 85 00:05:21,520 --> 00:05:28,320 Speaker 1: to grow and having come back from a this location 86 00:05:28,520 --> 00:05:32,440 Speaker 1: for and again, covid is not just us, I mean 87 00:05:32,720 --> 00:05:36,679 Speaker 1: all sports, all business, all people, you know, suffered during 88 00:05:36,760 --> 00:05:40,440 Speaker 1: that two year period where life as we knew it 89 00:05:40,520 --> 00:05:45,279 Speaker 1: was something that we had never experienced before. UH. And 90 00:05:46,279 --> 00:05:49,440 Speaker 1: we collaborated very well with our players and our players 91 00:05:49,520 --> 00:05:55,039 Speaker 1: association owners were very very supportive. The banks that we 92 00:05:55,200 --> 00:05:59,800 Speaker 1: borrowed from, we're very helpful and supportive, and so the 93 00:06:00,080 --> 00:06:04,159 Speaker 1: confidence that everybody showed in the business enabled us to endure. 94 00:06:04,279 --> 00:06:06,200 Speaker 1: I want to pick up on something you said about media, 95 00:06:06,279 --> 00:06:10,760 Speaker 1: because that clearly has been one of the most disrupted 96 00:06:11,600 --> 00:06:15,400 Speaker 1: but also very quickly evolving elements of the sports business. 97 00:06:16,080 --> 00:06:18,719 Speaker 1: Tell us a little bit about the mix there linear 98 00:06:18,880 --> 00:06:22,320 Speaker 1: streaming and how you think about it. Well, it's interesting 99 00:06:22,400 --> 00:06:26,000 Speaker 1: because we've been thinking about it a long time. When 100 00:06:26,040 --> 00:06:31,480 Speaker 1: we made the deal with Rogers in Canada sportsnet eight 101 00:06:31,600 --> 00:06:37,640 Speaker 1: nine years ago, UH, we bundled in digital rights and 102 00:06:37,839 --> 00:06:40,440 Speaker 1: nobody really focused on it at the time, but that 103 00:06:40,560 --> 00:06:46,919 Speaker 1: was a precursor to moving forward where ultimately there's going 104 00:06:47,000 --> 00:06:50,840 Speaker 1: to be an evolution do I think cable is going 105 00:06:50,880 --> 00:06:54,280 Speaker 1: to zero? No, nobody does. But there has been cord 106 00:06:54,320 --> 00:07:00,000 Speaker 1: cutting and coordin evers and so the million dollar subscribe 107 00:07:00,040 --> 00:07:04,479 Speaker 1: uber base for cable and satellite may wind up. I'm 108 00:07:04,520 --> 00:07:08,640 Speaker 1: not an expert on that industry, but I'm obviously somebody 109 00:07:08,640 --> 00:07:13,600 Speaker 1: who watches it in effected by million and you're seeing 110 00:07:14,000 --> 00:07:19,280 Speaker 1: the streaming services coming up, and you need to balance 111 00:07:19,320 --> 00:07:22,280 Speaker 1: the two. And then that's what we did with the 112 00:07:22,280 --> 00:07:26,560 Speaker 1: Walt Disney Company. We said, Okay, we're going to have 113 00:07:26,680 --> 00:07:31,560 Speaker 1: a linear presence on ESPN with some ABC, which was 114 00:07:31,640 --> 00:07:34,560 Speaker 1: important to us because I think is a major league sport, 115 00:07:34,760 --> 00:07:41,320 Speaker 1: you still need a major league linear presence. Uh. And 116 00:07:41,400 --> 00:07:45,480 Speaker 1: at the same time, we took what was our digital 117 00:07:45,520 --> 00:07:48,920 Speaker 1: out of market package, which is a thousand plus games, 118 00:07:49,000 --> 00:07:55,120 Speaker 1: and said with ESPN, let's put it in the ESPN Plus, 119 00:07:55,200 --> 00:07:58,320 Speaker 1: which may have been one of the most fan friendly, 120 00:07:58,840 --> 00:08:02,720 Speaker 1: consumer friendly things than any sports league has ever done. 121 00:08:02,800 --> 00:08:07,160 Speaker 1: Because when we had the NHL dot TV package which 122 00:08:07,320 --> 00:08:11,080 Speaker 1: was being done with bam Tech and which then was 123 00:08:11,120 --> 00:08:14,680 Speaker 1: acquired by Disney and are out of market package, you know, 124 00:08:15,080 --> 00:08:19,800 Speaker 1: center ice hundred and eighty dollars give or take a year. 125 00:08:20,400 --> 00:08:24,960 Speaker 1: Now you were buying the ESPN Plus package basically for 126 00:08:25,040 --> 00:08:27,880 Speaker 1: half the price, and you were getting not just US, 127 00:08:28,080 --> 00:08:31,040 Speaker 1: you were getting all the other ESPN Plus content. So 128 00:08:31,120 --> 00:08:35,080 Speaker 1: this was actually a good deal. And our digital presence 129 00:08:35,200 --> 00:08:38,080 Speaker 1: isn't in so many places that you have to worry 130 00:08:38,080 --> 00:08:42,319 Speaker 1: about searching for games. Right we're either on t N 131 00:08:42,400 --> 00:08:47,400 Speaker 1: T or ESPN ABC UM or we're on ESPN Plus 132 00:08:48,600 --> 00:08:51,800 Speaker 1: from a national standpoint, you know, and the regionals are 133 00:08:51,840 --> 00:08:54,640 Speaker 1: the regionals, and people know where to find that. Where's 134 00:08:54,679 --> 00:08:56,560 Speaker 1: your audience now, and in terms of where do you 135 00:08:56,600 --> 00:08:59,680 Speaker 1: see them going over the next five years, because you 136 00:08:59,800 --> 00:09:02,040 Speaker 1: had a foresight when you sign the Roger Seal to 137 00:09:02,160 --> 00:09:04,320 Speaker 1: wrap in the digital rights, I wonder how you're thinking 138 00:09:04,360 --> 00:09:06,720 Speaker 1: about five years from now. Well, I think what's gonna 139 00:09:06,760 --> 00:09:09,440 Speaker 1: happen is you're going to see more of more of 140 00:09:09,480 --> 00:09:14,079 Speaker 1: an evolution depending on what happens with the regionals, where 141 00:09:14,120 --> 00:09:17,400 Speaker 1: streaming is going to become more important and the national 142 00:09:17,440 --> 00:09:20,719 Speaker 1: presence is going to become increasingly important, because I think 143 00:09:20,760 --> 00:09:23,559 Speaker 1: that's the way it's evolving. Having said that, you've got 144 00:09:23,600 --> 00:09:26,120 Speaker 1: to be agile enough to keep an eye on the 145 00:09:26,160 --> 00:09:29,280 Speaker 1: trends and be prepared to embrace them. Yeah, because I 146 00:09:29,280 --> 00:09:33,040 Speaker 1: mean you're obviously seeing a situation where NFL now with 147 00:09:33,160 --> 00:09:38,439 Speaker 1: Amazon on Thursdays could end up Sunday ticket being on YouTube. 148 00:09:38,440 --> 00:09:40,959 Speaker 1: I mean, which which is what the rumor is, right, 149 00:09:41,280 --> 00:09:44,520 Speaker 1: and so that I would imagine that the evolution is 150 00:09:44,520 --> 00:09:49,280 Speaker 1: speeding up, right. Well, what what what's clear is content 151 00:09:49,520 --> 00:09:54,880 Speaker 1: remains important and there's nothing in content like live sports, 152 00:09:55,360 --> 00:09:57,800 Speaker 1: and if you're one of the majors, there's going to 153 00:09:57,840 --> 00:10:02,040 Speaker 1: be an appetite. And I view it not as as 154 00:10:02,080 --> 00:10:05,600 Speaker 1: a problem but as an opportunity. And what you want 155 00:10:05,600 --> 00:10:08,040 Speaker 1: to do is make sure you've got good partners, as 156 00:10:08,080 --> 00:10:12,080 Speaker 1: we do, and make sure that you're agile enough to 157 00:10:12,200 --> 00:10:16,480 Speaker 1: read what's going on and hopefully use those opportunities. And 158 00:10:16,559 --> 00:10:19,520 Speaker 1: it's not just about the money, because first and foremost 159 00:10:19,840 --> 00:10:22,760 Speaker 1: you've got to be touching your fans and giving them 160 00:10:22,800 --> 00:10:25,480 Speaker 1: the connection to the sport that they want. What do 161 00:10:25,520 --> 00:10:28,680 Speaker 1: you think about big technology, those big tech firms like 162 00:10:28,720 --> 00:10:31,760 Speaker 1: an Apple, like an Amazon coming in for these streaming rights. 163 00:10:31,800 --> 00:10:34,760 Speaker 1: What's the state of your thinking or discussions with any 164 00:10:34,760 --> 00:10:39,000 Speaker 1: of those players. I think it's exciting because it's it's 165 00:10:39,040 --> 00:10:42,080 Speaker 1: an opportunity and there's going to be more forms of competition. 166 00:10:42,640 --> 00:10:47,119 Speaker 1: Right the marketplace in some respects is contracting, but overall 167 00:10:47,320 --> 00:10:52,280 Speaker 1: it's expanding. Right, So the traditional methods may be contracting 168 00:10:52,320 --> 00:10:56,040 Speaker 1: a little bit, not going to zero, but the adjustment 169 00:10:56,080 --> 00:11:00,520 Speaker 1: provides us opportunities to do other things. And yes, the Apples, 170 00:11:00,600 --> 00:11:05,920 Speaker 1: the Amazons, uh, the Peacocks of the world are taking in. 171 00:11:06,120 --> 00:11:11,199 Speaker 1: You know, Netflix still hasn't its tone sports, but at 172 00:11:11,240 --> 00:11:14,000 Speaker 1: some point they may conclude that that's the way to go. 173 00:11:14,120 --> 00:11:18,840 Speaker 1: You know, if you think back thirty forty, probably forty 174 00:11:18,920 --> 00:11:25,240 Speaker 1: years now, cable and satellites got their penetration because the 175 00:11:25,360 --> 00:11:29,960 Speaker 1: sports and the regional sports channels and the appetite for sports. 176 00:11:30,520 --> 00:11:32,840 Speaker 1: I think while it may not be on a regional level, 177 00:11:32,880 --> 00:11:36,920 Speaker 1: it may be more national. I think sports maybe driving 178 00:11:36,960 --> 00:11:40,520 Speaker 1: some of these streaming services as they go forward. And 179 00:11:40,600 --> 00:11:45,160 Speaker 1: so when you think about the consumer, the fan, you know, 180 00:11:45,520 --> 00:11:48,680 Speaker 1: the mind obviously goes to we're all big sports fans here, 181 00:11:49,320 --> 00:11:51,960 Speaker 1: even the mix of sports that they consume. How do 182 00:11:52,000 --> 00:11:54,880 Speaker 1: you think about the NHL in the context of the 183 00:11:54,920 --> 00:11:58,520 Speaker 1: other big American or North American sports today? Well, I 184 00:11:59,160 --> 00:12:03,559 Speaker 1: don't view that it's us versus them, although to some extent, 185 00:12:04,080 --> 00:12:07,600 Speaker 1: you know, who's prepared to bid and how the scheduling 186 00:12:07,679 --> 00:12:14,559 Speaker 1: works out UH is a function of which UH outlets 187 00:12:14,679 --> 00:12:16,880 Speaker 1: have which sports. I mean that and that was a 188 00:12:16,960 --> 00:12:20,600 Speaker 1: challenge we had when when I took over, we really 189 00:12:20,640 --> 00:12:23,640 Speaker 1: didn't have a national presence and we had to weave 190 00:12:23,720 --> 00:12:27,280 Speaker 1: our way finding the partner in the spot that would 191 00:12:27,280 --> 00:12:31,080 Speaker 1: work for us. But to me, the most important thing 192 00:12:31,360 --> 00:12:35,880 Speaker 1: is you've got to provide your fans with easy access, 193 00:12:36,360 --> 00:12:40,600 Speaker 1: which is fairly priced. But also when you're looking at 194 00:12:40,600 --> 00:12:43,600 Speaker 1: the millennials and Gen zs, they want more than just 195 00:12:43,720 --> 00:12:47,640 Speaker 1: the games now, they want behind the scenes. You know, 196 00:12:47,800 --> 00:12:51,640 Speaker 1: we do Road to the Stanley Cup, Road to the 197 00:12:51,679 --> 00:12:55,600 Speaker 1: Winter Classic. It's about giving a look at our players 198 00:12:55,600 --> 00:12:58,720 Speaker 1: in our game from a vantage point that when I 199 00:12:58,800 --> 00:13:01,360 Speaker 1: was the equivalent in the age of a Gen Z, 200 00:13:02,000 --> 00:13:04,560 Speaker 1: you could only imagine what was it like to be 201 00:13:04,640 --> 00:13:07,959 Speaker 1: inside of a locker room to see the players getting ready, 202 00:13:08,240 --> 00:13:11,959 Speaker 1: I mean, and that's what our younger fans are demanding, 203 00:13:12,000 --> 00:13:14,520 Speaker 1: and frankly, I think it's good for the game, particularly 204 00:13:14,559 --> 00:13:17,200 Speaker 1: for our game, based on our players, for them to 205 00:13:17,240 --> 00:13:21,120 Speaker 1: see that. That's NHL Commissioner Gary Bettman talking with Bloomberg 206 00:13:21,160 --> 00:13:24,160 Speaker 1: Quick Take chief correspond to Jason Kelly and our own 207 00:13:24,200 --> 00:13:27,640 Speaker 1: scarlet pooh, and we'll have more of that exclusive conversation 208 00:13:27,960 --> 00:13:30,760 Speaker 1: coming your way as we head into the new year. 209 00:13:31,000 --> 00:13:33,360 Speaker 1: This has been the Bloomberg Business of Sports podcast. We 210 00:13:33,400 --> 00:13:35,040 Speaker 1: explore some of the big money issues in the world 211 00:13:35,040 --> 00:13:37,079 Speaker 1: of sports on Michael bar on Twitter at big Bar 212 00:13:37,200 --> 00:13:41,000 Speaker 1: Sports and do not forget to catch our podcast. You 213 00:13:41,040 --> 00:13:44,000 Speaker 1: can catch those Mondays, Wednesdays and Thursdays for the latest 214 00:13:44,200 --> 00:13:47,280 Speaker 1: stories moving big money in the world of sports.