1 00:00:00,280 --> 00:00:03,560 Speaker 1: This is the business of sports where in the situation 2 00:00:03,640 --> 00:00:06,400 Speaker 1: that we haven't dealt with in modern times, pandemic here 3 00:00:06,440 --> 00:00:10,479 Speaker 1: has really accelerated the investments that you've been advocating for 4 00:00:10,480 --> 00:00:12,880 Speaker 1: for years. From a macro standpoint, I think our sport 5 00:00:12,920 --> 00:00:16,360 Speaker 1: industry is really forced to look at the business a 6 00:00:16,440 --> 00:00:19,639 Speaker 1: little bit differently. In depth conversations with the leaders in 7 00:00:19,720 --> 00:00:22,720 Speaker 1: the sports industry. Who wants to be the sacrificial lambs 8 00:00:22,800 --> 00:00:25,599 Speaker 1: that shows up at the first big major sporting event 9 00:00:25,680 --> 00:00:27,640 Speaker 1: were part of something much bigger than the sports right 10 00:00:27,680 --> 00:00:30,080 Speaker 1: now and the health and dapt of our stakeholders the 11 00:00:30,160 --> 00:00:32,839 Speaker 1: works much important every moment. I think we're all from 12 00:00:32,840 --> 00:00:35,560 Speaker 1: the business respective thinking about the impact that the virus 13 00:00:35,600 --> 00:00:38,479 Speaker 1: is having on across the country against Bloomberg Business of 14 00:00:38,520 --> 00:00:42,000 Speaker 1: Sports from Bloomberg Radio. Hello, I'm Jason Kelly, and I'm 15 00:00:42,040 --> 00:00:44,400 Speaker 1: Michael Bach and I'm Mike Lynch, and this is a 16 00:00:44,479 --> 00:00:47,920 Speaker 1: very special edition of the Bloomberg Business of Sports podcast. 17 00:00:48,240 --> 00:00:50,839 Speaker 1: We explored the big money issues in the world of sports. 18 00:00:50,840 --> 00:00:54,440 Speaker 1: We are so excited to be speaking today with Dave mcgilfrey. 19 00:00:54,560 --> 00:00:57,000 Speaker 1: He is the founder and president of b M s 20 00:00:57,080 --> 00:01:00,840 Speaker 1: E Sports Race director of the Boston Marathon. On so 21 00:01:00,960 --> 00:01:04,560 Speaker 1: much more. I have to say I was humbled and 22 00:01:04,720 --> 00:01:09,920 Speaker 1: amazed just reading your bio, Dave, and that part is special. 23 00:01:09,959 --> 00:01:14,760 Speaker 1: It's also special because the Lynch e on Dave conversation 24 00:01:14,800 --> 00:01:18,120 Speaker 1: that's about to unfurl here I I'm here for it. 25 00:01:18,160 --> 00:01:20,360 Speaker 1: I'm here for it. So thank you so much for 26 00:01:20,440 --> 00:01:24,440 Speaker 1: joining us from Massachusetts. Thank you for having me on guys. So, 27 00:01:25,120 --> 00:01:26,800 Speaker 1: you know, one of the reasons we wanted to chat 28 00:01:26,800 --> 00:01:29,800 Speaker 1: with you, Dave, is I'm a marathon runner. I've I've 29 00:01:29,800 --> 00:01:32,920 Speaker 1: had the great pleasure of running in a number of 30 00:01:32,959 --> 00:01:36,480 Speaker 1: your races, especially the Boston Marathon, over the last decade 31 00:01:36,560 --> 00:01:40,840 Speaker 1: or so. And this is often a day this Monday 32 00:01:40,880 --> 00:01:44,119 Speaker 1: before Thanksgiving, where I and others have been coming off 33 00:01:44,160 --> 00:01:46,319 Speaker 1: the Philadelphia Marathon, you know, one of the big fall 34 00:01:46,360 --> 00:01:51,840 Speaker 1: marathons this year has just eviscerated the racing business, kept 35 00:01:51,880 --> 00:01:55,600 Speaker 1: a lot of people virtual at best. What's it like 36 00:01:55,720 --> 00:01:59,200 Speaker 1: out there right now in this pandemic for the business 37 00:01:59,200 --> 00:02:01,640 Speaker 1: of racing. Well, I wish i could say I'm living 38 00:02:01,680 --> 00:02:05,240 Speaker 1: the dream, um, but um, nothing could be further from 39 00:02:05,240 --> 00:02:08,480 Speaker 1: the truth. You know, we try to keep things in perspective. 40 00:02:08,840 --> 00:02:11,880 Speaker 1: People are dying, people are sick, you know, millions of 41 00:02:12,280 --> 00:02:17,400 Speaker 1: people are on unemployment. Frontline medical folks are risking their lives, 42 00:02:17,400 --> 00:02:19,919 Speaker 1: and school children and teachers are struggling, and the list 43 00:02:19,960 --> 00:02:22,640 Speaker 1: goes on and on and on. And but that being said, 44 00:02:23,120 --> 00:02:25,880 Speaker 1: you know, I just can't ignore what is also happening 45 00:02:25,880 --> 00:02:30,040 Speaker 1: in the mass participatory and endurance industry. Um. You know, 46 00:02:30,120 --> 00:02:33,200 Speaker 1: for me personally, I had thirty five events block and 47 00:02:33,240 --> 00:02:35,760 Speaker 1: loaded in March. This was going to be the best 48 00:02:35,919 --> 00:02:39,240 Speaker 1: year in forty years. UM my company was going to 49 00:02:39,320 --> 00:02:43,680 Speaker 1: have and one by one, every event went over the cliff. 50 00:02:44,320 --> 00:02:47,600 Speaker 1: And you know, I'm not not trying to cry poor, 51 00:02:47,680 --> 00:02:50,880 Speaker 1: but I do have to face the reality of what 52 00:02:50,880 --> 00:02:53,799 Speaker 1: what just happened to my business. It wiped it out, 53 00:02:53,960 --> 00:02:57,120 Speaker 1: and and I tell awful for my staff and my consultants. 54 00:02:57,160 --> 00:03:00,400 Speaker 1: And you know, we've helped manage over It's all over 55 00:03:00,440 --> 00:03:02,959 Speaker 1: the world, from Olympic Games, the US Olympic Trials, good 56 00:03:02,960 --> 00:03:06,560 Speaker 1: Will Games, Dirty Boston Marathons, and things were looking really bright. 57 00:03:06,720 --> 00:03:10,520 Speaker 1: And you know, we raised, We've helped raised hundreds of 58 00:03:10,720 --> 00:03:15,280 Speaker 1: millions of dollars, but worthwhile charities and various nonprofits putting 59 00:03:15,320 --> 00:03:17,840 Speaker 1: on events, and all of a sudden, this pandemic came 60 00:03:17,840 --> 00:03:21,360 Speaker 1: along and just wiped us out day for next year. 61 00:03:21,480 --> 00:03:25,079 Speaker 1: What do you expect? What is the realistic expectation? Well, 62 00:03:25,600 --> 00:03:27,720 Speaker 1: the problem is, you know the cliche right now, and 63 00:03:27,720 --> 00:03:30,280 Speaker 1: the only thing that's certain is everything is uncertain. And 64 00:03:31,320 --> 00:03:35,920 Speaker 1: you know, our industry, this industry, now, what we do 65 00:03:36,040 --> 00:03:38,400 Speaker 1: flies right in the face of the pandemic, you know, 66 00:03:38,520 --> 00:03:40,760 Speaker 1: I mean, you know, what we try to do is 67 00:03:40,800 --> 00:03:43,200 Speaker 1: get as many people together as possible and a small 68 00:03:43,200 --> 00:03:46,280 Speaker 1: little space all breathing on each other and sneezing and 69 00:03:47,120 --> 00:03:49,640 Speaker 1: sweating all over each other. And you know, along comes 70 00:03:49,680 --> 00:03:52,600 Speaker 1: to pandemic, and now we're told you can't do that anymore, 71 00:03:53,120 --> 00:03:55,080 Speaker 1: you know. So, like I said, I always thought this 72 00:03:55,120 --> 00:03:59,240 Speaker 1: industry was bulletproof and nothing will take us down until this. 73 00:03:59,440 --> 00:04:03,320 Speaker 1: So it's really tough to anticipate, you know, what's gonna 74 00:04:03,480 --> 00:04:06,440 Speaker 1: what's gonna happen. You know, there were thousands of events, 75 00:04:06,680 --> 00:04:10,119 Speaker 1: millions of participants in the country and globally, and I'd 76 00:04:10,160 --> 00:04:14,440 Speaker 1: say nine events were canceled this year and are already 77 00:04:14,480 --> 00:04:19,880 Speaker 1: being canceled for next year. So it has significant impact. 78 00:04:19,920 --> 00:04:23,800 Speaker 1: I mean, I understand about you know, restaurants shutting down 79 00:04:23,839 --> 00:04:27,039 Speaker 1: and hotels shutting down, but guess what when we put 80 00:04:27,080 --> 00:04:30,720 Speaker 1: on a Boston Marathon, over two hundred million dollars in 81 00:04:30,800 --> 00:04:34,200 Speaker 1: economic impact when we put on a Boston Marathon or 82 00:04:34,240 --> 00:04:38,560 Speaker 1: other events, you know, philanthropy thirty nine million dollars raised 83 00:04:38,560 --> 00:04:43,560 Speaker 1: for hundreds of worthwhile causes just to health and fitness benefits. 84 00:04:43,720 --> 00:04:46,119 Speaker 1: All of that, the jobs that are created for event 85 00:04:46,200 --> 00:04:50,520 Speaker 1: directors and timers and just all different types sorts of people. 86 00:04:50,880 --> 00:04:53,000 Speaker 1: I mean, we're the ones who filled the hotels and 87 00:04:53,080 --> 00:04:57,120 Speaker 1: fill the airplanes and fill the restaurants too. And unfortunately, 88 00:04:57,200 --> 00:05:02,279 Speaker 1: now since we're out of business, hope to be temporarily um, 89 00:05:02,320 --> 00:05:05,200 Speaker 1: you know, they're impacted by the fact that we're out 90 00:05:05,200 --> 00:05:08,240 Speaker 1: of business. So what we've had to do over the 91 00:05:08,320 --> 00:05:13,240 Speaker 1: last six seventy months is try to pivot ourselves. Um, 92 00:05:13,279 --> 00:05:15,640 Speaker 1: you know, putting on virtual events. I never thought of 93 00:05:15,760 --> 00:05:18,480 Speaker 1: my world this dreams I'd ever be putting on virtual 94 00:05:18,680 --> 00:05:22,160 Speaker 1: road races, but here we are. We had no choice, 95 00:05:22,400 --> 00:05:24,920 Speaker 1: you know. And I've been putting on drive in movies 96 00:05:25,120 --> 00:05:29,560 Speaker 1: and ramping on equipment to graduations and outdoor dining for restaurants. 97 00:05:29,640 --> 00:05:32,440 Speaker 1: Whatever it takes to keep a pose. That's what we've 98 00:05:32,440 --> 00:05:37,599 Speaker 1: been doing, just just to get through. Now. Your question 99 00:05:37,640 --> 00:05:44,000 Speaker 1: about that's the heartbreaker. You know, we could survive this year, 100 00:05:44,120 --> 00:05:47,120 Speaker 1: but can we survive another one? Is the big questioned. 101 00:05:47,839 --> 00:05:52,680 Speaker 1: David's Lynchy here Um the marathon Boston Marathon that we 102 00:05:52,720 --> 00:05:56,640 Speaker 1: always call it the Marathon around here Um was postponed 103 00:05:56,680 --> 00:05:59,560 Speaker 1: until September, and then of course next April is postponed. 104 00:05:59,800 --> 00:06:03,440 Speaker 1: But she ran a virtual Boston Marathon in September um, 105 00:06:04,200 --> 00:06:06,640 Speaker 1: and you know, the entry fee was obviously much lower 106 00:06:06,680 --> 00:06:08,560 Speaker 1: than it is to when you actually run the race, 107 00:06:08,640 --> 00:06:10,719 Speaker 1: of which one we were able to raise during that 108 00:06:10,920 --> 00:06:14,720 Speaker 1: virtual marathon in September. Well, you have to remember that 109 00:06:14,880 --> 00:06:17,440 Speaker 1: a lot of the fundraising for the charities had been 110 00:06:17,640 --> 00:06:21,600 Speaker 1: ongoing up until March when we postponed it till September, 111 00:06:22,200 --> 00:06:25,280 Speaker 1: so a good chunk of what normally is raised was raised, 112 00:06:25,320 --> 00:06:27,880 Speaker 1: and then things came to a grinding hall. And then 113 00:06:27,920 --> 00:06:31,680 Speaker 1: as we got closer to September and then the announcement 114 00:06:31,720 --> 00:06:35,520 Speaker 1: of the cancelation going to virtual, you know, it's slowed 115 00:06:35,520 --> 00:06:37,680 Speaker 1: again and then it picked up a little bit. But 116 00:06:37,800 --> 00:06:41,679 Speaker 1: I think you know, last year we raised thirty nine million. 117 00:06:41,720 --> 00:06:44,080 Speaker 1: I think this year was like thirty two millions. So 118 00:06:44,680 --> 00:06:48,320 Speaker 1: runners still rose to the occasion and they still get 119 00:06:48,360 --> 00:06:51,440 Speaker 1: out there and they ran around their neighborhoods, and they 120 00:06:51,480 --> 00:06:54,680 Speaker 1: still got the job done, and they still did um 121 00:06:54,720 --> 00:06:58,279 Speaker 1: a lot of goodwill by still raising money for worthwhile causes. 122 00:06:58,360 --> 00:07:02,480 Speaker 1: But that being said, isn't as much And what will 123 00:07:02,520 --> 00:07:06,800 Speaker 1: happen going forward? I mean, the novelty of virtual was 124 00:07:06,960 --> 00:07:10,360 Speaker 1: strong early on in this year, and now it's starting 125 00:07:10,400 --> 00:07:12,559 Speaker 1: to peter out a little bit. You know, maybe people 126 00:07:12,560 --> 00:07:14,440 Speaker 1: are like, Okay, I'm tired of paying a fee and 127 00:07:14,480 --> 00:07:17,840 Speaker 1: running around my neighborhood. But at the same time, you know, 128 00:07:18,040 --> 00:07:20,840 Speaker 1: if that's all there is, there's no other options, then 129 00:07:21,640 --> 00:07:23,760 Speaker 1: you know it's going to be interesting to see what 130 00:07:23,920 --> 00:07:29,080 Speaker 1: happens in one If in person events don't come back, 131 00:07:29,240 --> 00:07:31,240 Speaker 1: you have to realize there are races going on in 132 00:07:31,280 --> 00:07:34,760 Speaker 1: this country. New Hampshire has races going on, in Connecticut 133 00:07:34,760 --> 00:07:37,600 Speaker 1: has some races, and in other parts of the country. 134 00:07:37,680 --> 00:07:40,440 Speaker 1: But they're small. They're two hundred, three hundred, four hundred, 135 00:07:40,480 --> 00:07:44,640 Speaker 1: five hundred person events. They're not the five person events 136 00:07:44,640 --> 00:07:48,160 Speaker 1: that I directed, you know, And so when of those 137 00:07:48,280 --> 00:07:52,239 Speaker 1: coming back, It's all a function of two um two things. 138 00:07:52,280 --> 00:07:55,320 Speaker 1: One is time and two is space. How much time 139 00:07:55,400 --> 00:07:57,320 Speaker 1: do you have to conduct the event? And how much 140 00:07:57,320 --> 00:08:00,200 Speaker 1: space do you have to conduct it within? And if 141 00:08:00,240 --> 00:08:03,120 Speaker 1: you know my you know Boston Marathon, you started over 142 00:08:03,120 --> 00:08:05,240 Speaker 1: a hundred years ago in this little town called Hopkinton, 143 00:08:05,280 --> 00:08:07,200 Speaker 1: one a hundred people. We have no more real estate 144 00:08:07,240 --> 00:08:10,200 Speaker 1: today to do business in Hopkinton that we had a 145 00:08:10,280 --> 00:08:13,000 Speaker 1: hundred years ago. And we get thirty thousand people versus hundred. 146 00:08:13,560 --> 00:08:17,160 Speaker 1: So now you take that number and you mitigate. So 147 00:08:17,200 --> 00:08:19,760 Speaker 1: you've got to spread things out in socially distance and 148 00:08:19,800 --> 00:08:21,520 Speaker 1: do this, that and the other thing. You know, it's 149 00:08:21,560 --> 00:08:23,160 Speaker 1: going to take four and a half days to stop 150 00:08:23,200 --> 00:08:26,720 Speaker 1: the race. So we're looking at all kinds of different things, 151 00:08:26,800 --> 00:08:28,960 Speaker 1: whether it has to be a field size reduction, whether 152 00:08:28,960 --> 00:08:32,720 Speaker 1: it has to be rapid testing, what the status is 153 00:08:32,760 --> 00:08:35,240 Speaker 1: with the vaccine. And there's so many movement past to this, 154 00:08:35,400 --> 00:08:39,200 Speaker 1: it's like your head spins. Well and Dave, you know, 155 00:08:39,640 --> 00:08:43,720 Speaker 1: obviously there's a lot invested literally and figuratively in this 156 00:08:43,800 --> 00:08:46,560 Speaker 1: notion that a vaccine will at least get us close 157 00:08:46,640 --> 00:08:49,839 Speaker 1: to uh, back to to where we were. I want 158 00:08:49,840 --> 00:08:52,040 Speaker 1: to go back to to something that you said and 159 00:08:52,240 --> 00:08:55,280 Speaker 1: and talk about maybe the longer arc of history when 160 00:08:55,320 --> 00:08:58,760 Speaker 1: it comes to the business of running and fitness and 161 00:08:58,840 --> 00:09:04,240 Speaker 1: cycling and race is in general because pandemic aside, you 162 00:09:04,400 --> 00:09:07,400 Speaker 1: were part of a massive movement. I think it's fair 163 00:09:07,440 --> 00:09:10,040 Speaker 1: to say a massive economic movement in many ways where 164 00:09:10,040 --> 00:09:13,800 Speaker 1: people just started investing so much more and more literally 165 00:09:13,960 --> 00:09:19,200 Speaker 1: in their bodies and in fitness overall. From your perspective, 166 00:09:19,240 --> 00:09:22,840 Speaker 1: having watched that, what was the catalyst for for that 167 00:09:22,880 --> 00:09:26,440 Speaker 1: to really happen? Two things? I think, Um, you know, 168 00:09:26,520 --> 00:09:28,600 Speaker 1: it's funny. When I started my business forty years ago, 169 00:09:28,640 --> 00:09:30,480 Speaker 1: people looked at me like I had three heads. You 170 00:09:30,679 --> 00:09:33,120 Speaker 1: really think you can earn a living putting on road races. 171 00:09:33,360 --> 00:09:34,839 Speaker 1: I said, well, that's where you're wrong. And they said, 172 00:09:34,840 --> 00:09:36,160 Speaker 1: what do you mean. I said, I'm not just putting 173 00:09:36,160 --> 00:09:38,840 Speaker 1: on robots. They said, well what are you doing? I said, 174 00:09:38,880 --> 00:09:41,640 Speaker 1: you watched I'll show you what I'm doing. Because the 175 00:09:41,679 --> 00:09:45,400 Speaker 1: bottom line is this. You know, when the toughest part 176 00:09:45,400 --> 00:09:49,400 Speaker 1: about running a marathon designing the application, right, there's haven't 177 00:09:49,400 --> 00:09:51,280 Speaker 1: the guts to make the commitment to do it, and 178 00:09:51,320 --> 00:09:53,560 Speaker 1: then you have to earn the right to do it 179 00:09:54,240 --> 00:09:56,480 Speaker 1: then by doing the work, and then you totally line 180 00:09:56,520 --> 00:09:58,560 Speaker 1: to answer the gun. You run the course, question, finishine, 181 00:09:58,559 --> 00:10:02,880 Speaker 1: you get a medal and magic happens, you go home 182 00:10:02,920 --> 00:10:05,679 Speaker 1: feeling good about yourself. And that's the very foundation by 183 00:10:05,679 --> 00:10:08,160 Speaker 1: which we accomplish anything in our lives, right, And so 184 00:10:08,360 --> 00:10:12,000 Speaker 1: that's what this thing is all about. It's about again. 185 00:10:12,080 --> 00:10:13,920 Speaker 1: Years ago, people say, so, what do you do for 186 00:10:13,960 --> 00:10:15,880 Speaker 1: a living? I said, well, I'm a race director? You 187 00:10:15,880 --> 00:10:18,199 Speaker 1: know what, I'm a race director. Well what the heck 188 00:10:18,200 --> 00:10:20,719 Speaker 1: do you guys do? Chalk mark in the road You'll go. 189 00:10:21,360 --> 00:10:23,040 Speaker 1: And now when people ask me what do I do 190 00:10:23,080 --> 00:10:24,439 Speaker 1: for a living? I said, I help raise the level 191 00:10:24,480 --> 00:10:27,120 Speaker 1: of self esteem and self confidence of tens of thousands 192 00:10:27,160 --> 00:10:30,720 Speaker 1: of people in America. Because that's what this does. The 193 00:10:30,800 --> 00:10:35,239 Speaker 1: walls of intimidation have crumbled and people are believing in themselves. 194 00:10:35,600 --> 00:10:40,959 Speaker 1: And the thing that helped this in its trajectory was philanthropy. 195 00:10:41,160 --> 00:10:44,120 Speaker 1: Was Philanthey, Mike, you knew when I um ran across 196 00:10:44,160 --> 00:10:46,920 Speaker 1: American nineteen seventy eight for the Gemmyspond and finished in 197 00:10:46,960 --> 00:10:50,960 Speaker 1: Semuary Park. Applied to that. And I'm not saying I'm 198 00:10:50,960 --> 00:10:52,840 Speaker 1: was the one who started this whole movement, a pride 199 00:10:52,840 --> 00:10:55,000 Speaker 1: to that no one was doing that. This is all 200 00:10:55,000 --> 00:10:59,120 Speaker 1: a very competitive environment. People ran for themselves, not for 201 00:10:59,200 --> 00:11:02,800 Speaker 1: anything else. I ran for a greater purpose. I just 202 00:11:03,160 --> 00:11:05,320 Speaker 1: met with Ken Coleman, a voice of the Red Sox, 203 00:11:05,880 --> 00:11:08,640 Speaker 1: Jeck Jimmy Foon. I saw the kids, and I knew 204 00:11:08,640 --> 00:11:10,319 Speaker 1: at the time that the battle that I was about, 205 00:11:10,360 --> 00:11:12,400 Speaker 1: the fight by running over five and a half million 206 00:11:12,400 --> 00:11:15,439 Speaker 1: footsteps across America, was no way as difficult as a 207 00:11:15,440 --> 00:11:17,400 Speaker 1: battle that these kids a fightings for the wrong life. 208 00:11:17,600 --> 00:11:20,240 Speaker 1: I said, these kids are actually gonna help me more 209 00:11:20,280 --> 00:11:23,200 Speaker 1: than I'm probably going to help them by me raising 210 00:11:23,240 --> 00:11:26,719 Speaker 1: money to help them right. And thus took off this 211 00:11:26,800 --> 00:11:31,480 Speaker 1: whole combining personal goal setting with philanthropy, and that's what 212 00:11:31,720 --> 00:11:35,160 Speaker 1: really brought this thing to a whole different level. So 213 00:11:35,280 --> 00:11:38,680 Speaker 1: self esteem and philanthropy are the two things, in my opinion, 214 00:11:39,360 --> 00:11:41,720 Speaker 1: that made this thing go off the chops and races 215 00:11:41,800 --> 00:11:45,400 Speaker 1: selling out at record pace. Let's go back over forty years. 216 00:11:45,400 --> 00:11:48,480 Speaker 1: I want to go back to and you are the 217 00:11:48,520 --> 00:11:52,520 Speaker 1: epitome of when one door closes, the other door opens. 218 00:11:52,840 --> 00:11:56,160 Speaker 1: And what happened is that you ran what over thirty 219 00:11:56,200 --> 00:12:00,000 Speaker 1: four miles, You ran from Medford, Oregon to Medford, Massachusett. 220 00:12:00,040 --> 00:12:04,160 Speaker 1: It's you raised a hundred thousand dollars for the Jimmy Fund, 221 00:12:04,440 --> 00:12:07,480 Speaker 1: which is put the Dana Farber Cancer Institute in Boston, 222 00:12:08,160 --> 00:12:11,679 Speaker 1: and after the truck you come back and they fire 223 00:12:11,760 --> 00:12:15,920 Speaker 1: you in your job at Boston's Hancock Tower, and that's 224 00:12:16,520 --> 00:12:18,760 Speaker 1: what set the whole thing in motion. Can can you 225 00:12:18,800 --> 00:12:22,000 Speaker 1: take us through that? Yeah? Well, I I you know, 226 00:12:22,040 --> 00:12:24,400 Speaker 1: I got a degree in math. You know, I was, 227 00:12:25,120 --> 00:12:29,120 Speaker 1: you know, valedictorian High school in Medford and valedictorian Merrimack College, 228 00:12:29,200 --> 00:12:33,120 Speaker 1: So you know I had I just had a hot 229 00:12:33,120 --> 00:12:37,079 Speaker 1: work ethic. I always had to because of my upbringing 230 00:12:37,120 --> 00:12:39,240 Speaker 1: in Medford, and I always wanted to be an athlete, 231 00:12:39,240 --> 00:12:40,920 Speaker 1: but I was always the last one pick because of 232 00:12:41,040 --> 00:12:42,920 Speaker 1: my short statue and the last one cut when I 233 00:12:42,960 --> 00:12:45,080 Speaker 1: went out to team. So you know, when I was 234 00:12:45,080 --> 00:12:47,319 Speaker 1: a little kid, I mean obviously, growing up in Boston, 235 00:12:47,320 --> 00:12:50,199 Speaker 1: it's so sports orientated, you know, I can tell you that. 236 00:12:50,440 --> 00:12:52,319 Speaker 1: And I want to play second base at then wait 237 00:12:52,360 --> 00:12:54,840 Speaker 1: Bart but unfortunately, you know, it wasn't meant to be. 238 00:12:54,960 --> 00:12:56,920 Speaker 1: So I started running. Why no one can cutch you 239 00:12:56,960 --> 00:13:00,520 Speaker 1: up for running. So that's why I combined, you know, 240 00:13:00,679 --> 00:13:03,840 Speaker 1: my my hobby with my vocation and just started going 241 00:13:03,880 --> 00:13:07,120 Speaker 1: in that direction. But you know, I got a degree 242 00:13:07,120 --> 00:13:09,280 Speaker 1: in math and went to work for a benefit consulting 243 00:13:09,360 --> 00:13:12,319 Speaker 1: firm ask for a three month leave up appsince. They said, Okay, 244 00:13:12,559 --> 00:13:14,839 Speaker 1: ran across the country, finished at then Way Park, and 245 00:13:14,880 --> 00:13:16,199 Speaker 1: all of a sudden, my boss says, you've got to 246 00:13:16,200 --> 00:13:18,280 Speaker 1: come back to work tomorrow. I hope, can I have 247 00:13:18,320 --> 00:13:19,959 Speaker 1: a couple of days off. I just went across the 248 00:13:20,040 --> 00:13:23,199 Speaker 1: continent and then two days later I got a termination letter. 249 00:13:23,679 --> 00:13:25,600 Speaker 1: And as I looked at and I say, the best 250 00:13:25,640 --> 00:13:28,000 Speaker 1: thing that ever happened to me. Because sometimes we all, 251 00:13:28,240 --> 00:13:31,840 Speaker 1: you know, we get into this proverbial security run. You 252 00:13:31,840 --> 00:13:34,440 Speaker 1: know we're doing something, we keep doing it, keep doing it, 253 00:13:34,520 --> 00:13:37,640 Speaker 1: but we know we should probably go in a different path, 254 00:13:38,000 --> 00:13:40,280 Speaker 1: but we don't have the guts to like leave what 255 00:13:40,320 --> 00:13:44,040 Speaker 1: we got and and risk it and go somewhere else. Well, 256 00:13:44,040 --> 00:13:46,840 Speaker 1: this guy forced me to do it, and like I said, 257 00:13:46,840 --> 00:13:49,160 Speaker 1: it's the best thing. I opened up a running center 258 00:13:49,440 --> 00:13:51,520 Speaker 1: in my hometown of Medford, and I started putting on 259 00:13:51,559 --> 00:13:54,160 Speaker 1: events to promote the store, and I realized I liked 260 00:13:54,200 --> 00:13:56,880 Speaker 1: putting on events more than shoes on people's seat, and 261 00:13:56,880 --> 00:14:02,120 Speaker 1: thus began my my event management business and events. Later 262 00:14:02,240 --> 00:14:05,280 Speaker 1: here I am well, here, I am wondering if this 263 00:14:05,320 --> 00:14:07,320 Speaker 1: thing I was going to come back, But yeah, it's 264 00:14:07,320 --> 00:14:11,560 Speaker 1: been it's been great. So so to Valdatorians from Medford 265 00:14:11,600 --> 00:14:17,840 Speaker 1: High School, Michael Bloomberg and Dave mcgilburn. And ironically, you know, 266 00:14:17,960 --> 00:14:21,720 Speaker 1: you're in the Hancock Building and Hancock became the primary 267 00:14:21,760 --> 00:14:24,240 Speaker 1: sponsor of the Boston Marathon. How I rock that is 268 00:14:24,280 --> 00:14:26,840 Speaker 1: that we're not's a good point. It wasn't then obviously, 269 00:14:26,960 --> 00:14:30,320 Speaker 1: but no. Yeah, but so so here's my here's what 270 00:14:30,440 --> 00:14:32,280 Speaker 1: I want to get to a turning point in the marathon. 271 00:14:32,320 --> 00:14:34,760 Speaker 1: We all remember the glory days Bill Rogers and Joe 272 00:14:34,760 --> 00:14:38,280 Speaker 1: Panoy Samuelson. Then prize money came in and and and 273 00:14:38,320 --> 00:14:41,040 Speaker 1: a lot of the big international runners came in. At 274 00:14:41,080 --> 00:14:43,640 Speaker 1: what point did this and I know what this race 275 00:14:43,760 --> 00:14:46,680 Speaker 1: is today? This race is all about fundraising. It's all 276 00:14:46,720 --> 00:14:51,240 Speaker 1: about people running for uh for a cause, running with groups. 277 00:14:51,360 --> 00:14:53,600 Speaker 1: And I don't think that your average fan could tell 278 00:14:53,640 --> 00:14:56,280 Speaker 1: you who won the last Boston Marathon that that was run, 279 00:14:56,480 --> 00:14:59,160 Speaker 1: but they could tell you they could name ten charities 280 00:14:59,200 --> 00:15:01,120 Speaker 1: off the top of their that people were running for. 281 00:15:01,400 --> 00:15:04,440 Speaker 1: When did that whole thing change into just philanthropy and 282 00:15:04,480 --> 00:15:06,640 Speaker 1: people running for a cause or someone that might have 283 00:15:06,720 --> 00:15:10,720 Speaker 1: might have in memory of someone When did that all change? Yeah? 284 00:15:10,760 --> 00:15:15,120 Speaker 1: That was probably almost forty years ago with the American 285 00:15:15,160 --> 00:15:20,240 Speaker 1: Liver Foundation and then Dana harbor Um. But but no, 286 00:15:20,520 --> 00:15:24,720 Speaker 1: I mean we were a very competitive event. Obviously in 287 00:15:24,720 --> 00:15:26,880 Speaker 1: in the early years, we'll be the owning event, were 288 00:15:26,920 --> 00:15:30,720 Speaker 1: the longest continuous running marathon in the world. And then 289 00:15:31,640 --> 00:15:34,240 Speaker 1: what happened They started growing and growing, and back then 290 00:15:34,280 --> 00:15:36,680 Speaker 1: the will Clooneys of the world in Jock Semples so saying, hey, 291 00:15:36,680 --> 00:15:38,800 Speaker 1: wait a minute, you know this is growing too much. 292 00:15:38,840 --> 00:15:41,360 Speaker 1: We have to somehow cap it. And the way they 293 00:15:41,400 --> 00:15:45,800 Speaker 1: thought the cap it was to impose qualifying standards, and 294 00:15:45,920 --> 00:15:49,000 Speaker 1: so they did that, and what what happened was just 295 00:15:49,080 --> 00:15:51,800 Speaker 1: the opposite of what they were trying to prevent. The 296 00:15:51,960 --> 00:15:56,840 Speaker 1: qualifying standards then became the draw because it for people, 297 00:15:56,880 --> 00:15:59,080 Speaker 1: this is the holy grail, this is the super bowled tour, 298 00:15:59,200 --> 00:16:02,560 Speaker 1: the fronts that can take derby of marathoning throughout the world. 299 00:16:02,680 --> 00:16:05,440 Speaker 1: And yeah, I can't make the Olympic team, but if 300 00:16:05,480 --> 00:16:08,760 Speaker 1: I can qualify for the Boston Marathon, that's a notch 301 00:16:08,920 --> 00:16:11,640 Speaker 1: in my belt. So I'm going after that. That's that's 302 00:16:11,680 --> 00:16:14,520 Speaker 1: the pinnacle right there. So all of a sudden, instead 303 00:16:14,520 --> 00:16:19,440 Speaker 1: of slowing down the interest, it escalated the interest and 304 00:16:19,480 --> 00:16:23,240 Speaker 1: then you know, obviously, once one or two charities kind 305 00:16:23,240 --> 00:16:27,400 Speaker 1: of got involved, they realized that by virtual being able 306 00:16:27,440 --> 00:16:32,080 Speaker 1: to have that that coveted BIB number, that the only 307 00:16:32,120 --> 00:16:34,360 Speaker 1: other way you could get it was to qualify. Well, 308 00:16:34,400 --> 00:16:36,320 Speaker 1: I can't qualify, Well, how else can I get a 309 00:16:36,440 --> 00:16:39,680 Speaker 1: number raise money for a charity? Bingo. Then all of 310 00:16:39,680 --> 00:16:42,000 Speaker 1: a sudden, that one of charts and we almost built 311 00:16:42,000 --> 00:16:45,560 Speaker 1: a Frankenstein in the sense that it became so popular 312 00:16:45,640 --> 00:16:48,840 Speaker 1: because they're golden nuggets. Of course, I mean, I can 313 00:16:48,880 --> 00:16:52,120 Speaker 1: give you fifteen BIB numbers and you get fifteen runners 314 00:16:52,120 --> 00:16:54,400 Speaker 1: to raise ten thousand dollars each. That's a hundred and 315 00:16:54,400 --> 00:16:57,360 Speaker 1: fifty thousand dollars without a lot of sweat equity. And 316 00:16:57,400 --> 00:17:01,760 Speaker 1: so the fundraising component of this became. You know, it 317 00:17:01,840 --> 00:17:05,200 Speaker 1: was a phenomenon in fundraising throughout the country and still 318 00:17:05,240 --> 00:17:08,200 Speaker 1: remains so. And that's why we had to and still 319 00:17:08,280 --> 00:17:12,359 Speaker 1: have to maintain a delicate balance between you know, the 320 00:17:12,480 --> 00:17:16,200 Speaker 1: concept of we're about the pursuit of athletic excellence, making 321 00:17:16,200 --> 00:17:19,680 Speaker 1: sure we maintain that, but at the same time recognizing 322 00:17:19,920 --> 00:17:22,359 Speaker 1: we can do a lot of good at the same 323 00:17:22,400 --> 00:17:25,520 Speaker 1: time by virtue of giving some of these numbers to 324 00:17:25,720 --> 00:17:30,719 Speaker 1: work while charities, so we have come up with a 325 00:17:30,760 --> 00:17:36,680 Speaker 1: balance qualify in the field don't but have to earn 326 00:17:36,760 --> 00:17:39,800 Speaker 1: the right in their own way by raising money to 327 00:17:39,880 --> 00:17:42,840 Speaker 1: all these different charities. And I think we just surpassed 328 00:17:42,840 --> 00:17:46,800 Speaker 1: the four hundred million dollar mark this year in total 329 00:17:46,800 --> 00:17:50,919 Speaker 1: fundraising since it began thirty s our years ago. And 330 00:17:51,000 --> 00:17:55,560 Speaker 1: so Dave, you have really described well, and I think 331 00:17:55,600 --> 00:18:00,119 Speaker 1: everybody in this interview understands the gold standard that that 332 00:18:00,240 --> 00:18:03,280 Speaker 1: Boston is. And as you and I were talking about 333 00:18:03,320 --> 00:18:08,120 Speaker 1: before we started this, UM, there is something just incredibly special, 334 00:18:08,200 --> 00:18:11,600 Speaker 1: and especially when you qualify, of standing on that line 335 00:18:11,600 --> 00:18:14,280 Speaker 1: and in a neighbor of mine who's also a Boston qualifier, 336 00:18:14,760 --> 00:18:18,800 Speaker 1: UM has often described Boston as that's the race you 337 00:18:18,840 --> 00:18:21,280 Speaker 1: get to run because you did so well at another 338 00:18:22,040 --> 00:18:26,159 Speaker 1: at another race. But I do wonder as we go forward, 339 00:18:27,240 --> 00:18:31,200 Speaker 1: Boston will be here, I think forever, the Boston Marathon, Uh, 340 00:18:31,280 --> 00:18:35,320 Speaker 1: the marathon. As Lynch you rightly said, do you worry 341 00:18:35,359 --> 00:18:38,359 Speaker 1: that there will be a drop off? Though? Even with 342 00:18:38,400 --> 00:18:41,040 Speaker 1: a vaccine and all of this, that we've sort of 343 00:18:41,119 --> 00:18:43,840 Speaker 1: seen the peak and what does that look like even 344 00:18:43,920 --> 00:18:47,560 Speaker 1: in a in a healthier world knowing that there still 345 00:18:47,680 --> 00:18:51,680 Speaker 1: is this commitment and and this desire for races. Well, 346 00:18:51,720 --> 00:18:55,040 Speaker 1: I I honestly felt that prior to the pandemic, and 347 00:18:55,080 --> 00:18:57,280 Speaker 1: I still feel this way that we've only hit the 348 00:18:57,800 --> 00:19:02,440 Speaker 1: iceberg in terms of people wanting to participate in events. 349 00:19:02,640 --> 00:19:05,440 Speaker 1: Look at what has happened since the pandemic. You look 350 00:19:05,440 --> 00:19:08,119 Speaker 1: out your front window. You see navies you never saw before. 351 00:19:08,840 --> 00:19:12,000 Speaker 1: They're out there jogging, they're out there walking, they're out 352 00:19:12,000 --> 00:19:15,000 Speaker 1: there riding their bike. I think once we do come back, 353 00:19:15,520 --> 00:19:17,920 Speaker 1: it's gonna be amazing that demand. You gotta remember we 354 00:19:18,480 --> 00:19:22,560 Speaker 1: we didn't lose business, you know, we didn't lose business. 355 00:19:22,800 --> 00:19:26,480 Speaker 1: We have just been prevented. I've been told you can't, 356 00:19:26,920 --> 00:19:30,000 Speaker 1: you can't conduct your business just yet. So it isn't 357 00:19:30,040 --> 00:19:34,200 Speaker 1: like business went away. It's still out there all around us. 358 00:19:34,240 --> 00:19:37,520 Speaker 1: People want in, but we can't. We can't accept them 359 00:19:37,600 --> 00:19:40,960 Speaker 1: yet until we were given permission, and there in lies. 360 00:19:41,359 --> 00:19:43,880 Speaker 1: You know, the challenge for all of us is how 361 00:19:43,960 --> 00:19:46,000 Speaker 1: and when is that all going to happen. I mean, 362 00:19:46,040 --> 00:19:47,800 Speaker 1: they say there's a light at the end of the tunnel, 363 00:19:47,840 --> 00:19:49,840 Speaker 1: and you know, for me is I just don't know 364 00:19:50,040 --> 00:19:53,000 Speaker 1: how long the tunnel is. You know, We usually need 365 00:19:53,040 --> 00:19:55,800 Speaker 1: six to nine months to plan an event, even with 366 00:19:55,880 --> 00:19:58,600 Speaker 1: a vaccine. You know that that's probably not going to 367 00:19:58,680 --> 00:20:01,560 Speaker 1: help us much for this come and spling, this coming summer, 368 00:20:02,080 --> 00:20:06,080 Speaker 1: maybe the fall. You know, um, you know, our industry 369 00:20:06,119 --> 00:20:08,920 Speaker 1: and our people will be last in line to get vaccinated. 370 00:20:08,920 --> 00:20:12,080 Speaker 1: Of course, it's the frontliners, and then you know those 371 00:20:12,240 --> 00:20:15,240 Speaker 1: most you know, most vulnerable, and the list goes on 372 00:20:15,280 --> 00:20:17,199 Speaker 1: and on and on. So there's just a lot of 373 00:20:17,240 --> 00:20:21,760 Speaker 1: complications with proof of vaccination, with testing, with mitigation strategies, 374 00:20:22,040 --> 00:20:24,840 Speaker 1: and just the optics of it. Even if you're like said, Okay, 375 00:20:24,840 --> 00:20:27,680 Speaker 1: everything's good, We've got a mitigation plan, No one's it's 376 00:20:27,800 --> 00:20:30,440 Speaker 1: very very safe. You know, the community within which you 377 00:20:30,520 --> 00:20:32,520 Speaker 1: put the event on might say, well, wait a minute, 378 00:20:32,520 --> 00:20:34,680 Speaker 1: you bring in ten thousand people to my back yard 379 00:20:35,080 --> 00:20:36,960 Speaker 1: from all over the country or all over the world. 380 00:20:37,440 --> 00:20:40,240 Speaker 1: You know, so it's gonna be it's not gonna be simple. 381 00:20:40,840 --> 00:20:43,440 Speaker 1: We will be back. You know, I got my cliche 382 00:20:43,600 --> 00:20:45,959 Speaker 1: at a Sence two thousand and thirteen and fourteen is 383 00:20:46,280 --> 00:20:50,760 Speaker 1: to come back. It's always stronger than the setback, and 384 00:20:50,800 --> 00:20:53,560 Speaker 1: I think such will be the case with our business. 385 00:20:53,600 --> 00:20:55,919 Speaker 1: You know, like I said, they haven't gone away, but 386 00:20:56,359 --> 00:20:58,280 Speaker 1: you know, we just gotta we gotta, we gotta wait 387 00:20:58,359 --> 00:21:01,560 Speaker 1: this thing out. Unfortunately, Thank you so much. It was 388 00:21:01,720 --> 00:21:03,480 Speaker 1: great to talk to you. We could talk to you 389 00:21:03,520 --> 00:21:06,080 Speaker 1: all day and we didn't even uh you know, have 390 00:21:06,280 --> 00:21:09,400 Speaker 1: you tell us all the deep dark secrets of when 391 00:21:09,520 --> 00:21:12,000 Speaker 1: Mike lynch. So we'll have to have a part two 392 00:21:12,119 --> 00:21:14,320 Speaker 1: for that. That was an ex mose. I was waiting 393 00:21:14,320 --> 00:21:20,639 Speaker 1: for it. Yeah, but before we go, you guys, what 394 00:21:20,840 --> 00:21:23,320 Speaker 1: one thing now? Dave I swear he clones himself during 395 00:21:23,320 --> 00:21:24,920 Speaker 1: the marathon. You see him at the starting line, you 396 00:21:24,920 --> 00:21:26,840 Speaker 1: see him a hot break hill, you see him at 397 00:21:26,880 --> 00:21:29,239 Speaker 1: the finish line. When all is said and done, he 398 00:21:29,320 --> 00:21:31,919 Speaker 1: runs the race and reverse. He starts at the finish 399 00:21:31,960 --> 00:21:33,640 Speaker 1: line and runs to the starting line and the pitch 400 00:21:33,720 --> 00:21:36,400 Speaker 1: black all by himself, every single year in the marathon. 401 00:21:36,480 --> 00:21:41,520 Speaker 1: Can you imagine that? Actually what I do? Just not 402 00:21:41,600 --> 00:21:45,200 Speaker 1: to correct anyone, but so I ran a fifteen years 403 00:21:45,200 --> 00:21:46,880 Speaker 1: in a row, and I made a commitment to run 404 00:21:46,920 --> 00:21:48,640 Speaker 1: it for the rest of my life, and then got 405 00:21:48,640 --> 00:21:50,879 Speaker 1: off at the job to direct it. I helped direct it. 406 00:21:50,920 --> 00:21:52,240 Speaker 1: So I was like, what do I do? Do I 407 00:21:52,520 --> 00:21:55,280 Speaker 1: run in it or run it? And I said, I 408 00:21:56,000 --> 00:21:57,600 Speaker 1: need the money I'll take the job. So I took 409 00:21:57,600 --> 00:21:59,439 Speaker 1: the job. And I'm standing at the finish line and 410 00:21:59,560 --> 00:22:01,920 Speaker 1: everyone finishing. I'm houtside and I'm and I'm like, this 411 00:22:01,960 --> 00:22:05,119 Speaker 1: is awful. You're full of self pity. But that's okay. 412 00:22:05,160 --> 00:22:08,280 Speaker 1: Where we can do that sometimes. And I tapped this 413 00:22:08,320 --> 00:22:09,960 Speaker 1: State Police toop on the shoulder. I said, off to 414 00:22:10,080 --> 00:22:11,400 Speaker 1: do me a baby. He said, what, I Sai, way 415 00:22:11,400 --> 00:22:13,560 Speaker 1: you drive me back to the start. You should watch 416 00:22:13,560 --> 00:22:15,880 Speaker 1: you forget something. I said, yeah, but not to run 417 00:22:17,440 --> 00:22:19,239 Speaker 1: going back to the start at eight o'clock at night. 418 00:22:19,280 --> 00:22:21,800 Speaker 1: I ran the whole thing finished at eleven o'clock at night. 419 00:22:22,440 --> 00:22:24,080 Speaker 1: And I've been doing it that way for the last 420 00:22:24,119 --> 00:22:26,760 Speaker 1: thirty three years. Been dead last in my own race 421 00:22:27,040 --> 00:22:29,480 Speaker 1: for the last thirty three years, and I don't really care. 422 00:22:29,960 --> 00:22:31,480 Speaker 1: You know, I have a model in my life. It's 423 00:22:31,520 --> 00:22:33,879 Speaker 1: my game, so it's my rules, and so for me, 424 00:22:33,920 --> 00:22:36,639 Speaker 1: I've been able to keep my my own personal streak 425 00:22:36,680 --> 00:22:39,680 Speaker 1: and commitment alive for the last forty eight years. Well, 426 00:22:39,720 --> 00:22:43,920 Speaker 1: we look forward to seeing you in Hopkinton in Boston 427 00:22:44,000 --> 00:22:47,600 Speaker 1: on Boylston Street before too long. We love the marathon, 428 00:22:47,840 --> 00:22:50,800 Speaker 1: and I love all that you've done. Congratulations on all 429 00:22:50,840 --> 00:22:53,800 Speaker 1: of it, Dave. This is the Bloomberg Business of Sports podcast. 430 00:22:54,000 --> 00:22:56,760 Speaker 1: We're here each and every Monday, Wednesday and Thursday exploring 431 00:22:57,080 --> 00:22:59,119 Speaker 1: the world of money in sports. I'm Jason Kelly. You 432 00:22:59,119 --> 00:23:01,600 Speaker 1: can find me on Twitter at Jason Kelly Moves. And 433 00:23:01,600 --> 00:23:05,040 Speaker 1: I'm Michael Barr at Big Bar Sports. And I'm Mike Lynch. 434 00:23:05,080 --> 00:23:07,880 Speaker 1: You can follow me at Lynch e w CVB. You're 435 00:23:07,920 --> 00:23:10,879 Speaker 1: listening to Bloomberg Business of Sports right here on Bloomberg 436 00:23:10,960 --> 00:23:14,480 Speaker 1: Radio around the world and online wherever you get your podcast.