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Speaker 1: Hello, I'm Scottsnik, I'm been Nobi Williams, and I'm Michael barn.

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

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

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Speaker 1: Let's begin with the NFL and Fortnite. I was reading

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Speaker 1: a story that some players, some Patriot players like to

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Speaker 1: play fortnite is they're preparing ahead of the game, and

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Speaker 1: of course I'm winding and they don't have to be

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Speaker 1: on the field. They loved playing Fortnite. If you're trying

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Speaker 1: to reach kids these days, Fortnite is the way to

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Speaker 1: do it. I mean, these kids, you know, will bring

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Speaker 1: up the Rockets again. By the way, finished second at

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Speaker 1: the Shanahan Tournament, losing to the Market in the championship game.

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Speaker 1: So well done, Rockets. Um. All they do on the ice,

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Speaker 1: in the locker room, they're doing the dances they're talking about.

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Speaker 1: I don't I don't even know what they're talking about.

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Speaker 1: My son likes it. Um. And if you're a sports

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Speaker 1: league and you're trying to reach the kids, evan no

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Speaker 1: better way, man. Slap uh Cowboys, Jersey A Giants, Jersey, Jaguars, Jersey.

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Speaker 1: See how I brought you in there. Uh, slap it

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Speaker 1: on your character and and go at it. I'll be

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Speaker 1: the only one player Jersey. Yeah. News today on Monday,

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Speaker 1: the NFL is partnering with Fortnite. Uh. Starting on November nine,

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Speaker 1: you'll be able to buy a keyword there by how

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Speaker 1: much Jersey's fifteen dollars in the in game currency febucks. Yeah,

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Speaker 1: buying a jersey that you can slap on your character. Man,

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Speaker 1: male character, female character. You get to choose your number.

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Speaker 1: You want a Patriots number twelve jersey, you want a

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Speaker 1: Jaguars number number fifteen. Whatever you want, you can buy it,

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Speaker 1: pop it on your character. I want to recreate what's

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Speaker 1: gonna happen in my households all over America. Pretend you're

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Speaker 1: a nine year old and start with dad can I

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Speaker 1: ready go Dad can Detroit? As many of our listeners, No, Fortnite,

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Speaker 1: which is I mean incredibly popular right now, is a

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Speaker 1: is a free game. Um. And the way that free

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Speaker 1: games make their money is there in game purchases. Uh.

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Speaker 1: This is the first for Fortnite. This is the first

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Speaker 1: time I believe that they're allowed. They're putting outside I

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Speaker 1: p into that store. I imagine this will not be

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Speaker 1: the last, there is a tremendous, tremendous business opportunity here

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Speaker 1: for groups like the NFL other sports league teams that

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Speaker 1: you could do advertising if you want, you can put

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Speaker 1: together a Sprite or a Mr. Peanut costume that the

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Speaker 1: opportunities are are really endless. But this is the next

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Speaker 1: stage of how Epic Games, which makes Fortnite and was

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Speaker 1: recently valued value to fifteen billion dollars um. Remember anyway, Uh,

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Speaker 1: this is the new level of how you know, Epic

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Speaker 1: Games begins to make more and more money off of

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Speaker 1: an incredibly popular game. Well, this is going to raise

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Speaker 1: a lot of money because first of all, what they

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Speaker 1: had to cut a deal with the NFL, and uh,

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Speaker 1: you know, kids are going I know, my kid, you know,

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Speaker 1: it's like just for the fact that he knows that

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Speaker 1: I'd like the Detroit Lions, He's gonna ask me, hey,

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Speaker 1: can I have it? Let me let me ask you

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Speaker 1: this part. You say, Oh, they cut a deal with

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Speaker 1: the NFL. Which side of the table, If you're the

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Speaker 1: executive design with getting the bucks, which side of the

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Speaker 1: table right now would you rather be on? Would you

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Speaker 1: rather be the NFL side saying Hey, we've got this

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Speaker 1: valuable stuff people will buy or would you rather be

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Speaker 1: on the Epic side saying you need us, like you

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Speaker 1: need us to reach kids and we're driving this. Who's

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Speaker 1: got the leverage in this transaction? Somebody had to put

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Speaker 1: some ego aside because they've worked out the deal. And

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Speaker 1: you're right though, it's like right now, i'd say Epic

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Speaker 1: is in the driver for this particular deal. Evan, Yeah,

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Speaker 1: I mean, I think the answer to your question is

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Speaker 1: that right now you've Epic right. No, I think you

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Speaker 1: try to be the NFL. I think in five years

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Speaker 1: maybe that's different. I mean, the one big the big

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Speaker 1: caveat here, and it's something we've talked about before. I'm

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Speaker 1: not convinced and most a lot of people are not

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Speaker 1: convinced that in two years your kids are gonna be

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Speaker 1: playing Fortnite. Fortnite could be that thing like remember exactly,

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Speaker 1: remember when Fortnite was that huge thing, and now everybody's

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Speaker 1: dancing to a dance from a game that Valve built,

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Speaker 1: not up a game. It might be in the same

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Speaker 1: sentence as fidget spinner exactly exactly, whereas in two years,

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Speaker 1: the NFL is definitely gonna be like there's no question

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Speaker 1: about that. The evaluation was they raised one point to

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Speaker 1: five billion evaluation with UM, I knew there was a

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Speaker 1: fifteen Yeah. And we had a couple of weeks ago

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Speaker 1: on the show, we had G two owner Carlos Rodriguez

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Speaker 1: in and he was talking about one of the big

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Speaker 1: ways that the sports franchises around around the world make

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Speaker 1: money is they sell, you know, skins within games. They

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Speaker 1: sell stickers to put on guns within games. UM, I'm

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Speaker 1: surprised it took this long to be honest for for

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Speaker 1: for a major league, and I didn't think it would

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Speaker 1: be the NFL. I thought it would be the n

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Speaker 1: b A, but for a league to realize that, hey,

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Speaker 1: we can become a part of this economy. Uh, these

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Speaker 1: are young people that we want to become fans. They

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Speaker 1: may prefer to play Fortnite, but they probably have an

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Speaker 1: NFL team that they like or player. Let's let's merge

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Speaker 1: those ecosystems. Let me say, Bart, I'm gonna ask you guys,

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Speaker 1: because I kind of watch my son play every now

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Speaker 1: and then, but I really don't pay attention. Now, is

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Speaker 1: this the way it works? Is it that you need

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Speaker 1: to buy new stuff in the game to be a

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Speaker 1: better player and progress not necessary. My son always says, oh,

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Speaker 1: I need this better gun or something because I got

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Speaker 1: to get a level whatever. But you can get the

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Speaker 1: gun in the game. You know, if you hit the

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Speaker 1: right chest, you can do that. But now you can't. Yes,

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Speaker 1: you can buy certain pieces of equipment. They're shortcuts to

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Speaker 1: equipment and things that help you play sorts the keyword okay,

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Speaker 1: So I I can find saying no all the time,

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Speaker 1: like you want it, you gotta go earn it, but

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Speaker 1: it no. But here's the thing. I mean, if you

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Speaker 1: say no and he has to earned, maybe he's playing

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Speaker 1: what x more hours than he would have normally. Just

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Speaker 1: I mean, this is this is kind of the way

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Speaker 1: these things are structured, right. It's either I think you

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Speaker 1: play a lot of hours or you pay the money together.

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Speaker 1: I have a great idea because you was at n

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Speaker 1: b A and you thought to be the team, and

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Speaker 1: we know the Union has its own licensing arm now

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Speaker 1: and you don't need the jersey. What if you could

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Speaker 1: buy individual players where you could play as Steph Curry,

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Speaker 1: who's obviously a better shooter than the others, like you

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Speaker 1: ask to change the ability of certain characters. If you're

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Speaker 1: playing as Steph Curry, you are a more accurate shot

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Speaker 1: than if you are a member of the New York Knicks.

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Speaker 1: Jim Dolan One, No, that's just statistical fact. I mean

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Speaker 1: I could have said anybody, but it was fun saying

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Speaker 1: New York Knicks. Um, I want to talk about fanatics

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Speaker 1: and NASCAR. A NASCAR man, they're gonna end. They had

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Speaker 1: a tenure deal with NASCAR to sell their merchandise at

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Speaker 1: race tracks, but it is coming to an early end. Uh,

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Speaker 1: it's licensed sports where, sports equipment where and dice. They

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Speaker 1: had signed that tenure deal, but at the end of

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Speaker 1: this season. Are you know the way it used to

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Speaker 1: work that each individual team and driver used to sell

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Speaker 1: their own so you'd go to one shop if you wanted.

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Speaker 1: I'm gonna say, yeah, I'm gonna say the start of

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Speaker 1: the sentence, you're filling more driver names because I can't

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Speaker 1: you go to another truck Kevin Kevin Harvick. And if

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Speaker 1: you wanted Kyle Bush Bush, you'd go somewhere else. Who's

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Speaker 1: the guy does the flips? Bill Elliott? Well, no, he's

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Speaker 1: not racing anymore. Just give me something ever, Yeah, yeah, okay,

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Speaker 1: So there we go. You want to talk about I'll

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Speaker 1: give you. This is this strikes me is how they

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Speaker 1: used to buy stuff in seventy nine. Who goes to

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Speaker 1: the track and buy like you can get it delivered

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Speaker 1: to you? Do you need to be at the track

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Speaker 1: to buy? But the purpose was that we're gonna have

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Speaker 1: one story you buy everything like forget about this individualized

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Speaker 1: cut up piece meal. They had the one Fanatics place

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Speaker 1: where you could go and get anything you wished. However,

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Speaker 1: the seemed to be and been that just not enough

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Speaker 1: people were going. Yeah and and this is a from

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Speaker 1: a report from the Sports Business journal. Um, yeah, not

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Speaker 1: enough people are going Fanatics as they do with almost

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Speaker 1: every other major league in the in the world. They're

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Speaker 1: operating the online store. They're still going to do that.

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Speaker 1: This is just that track side portion of it. For

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Speaker 1: a while there, Fanatics was driving a huge a team

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Speaker 1: will or a bus around you know, that kind of

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Speaker 1: unfolded as a as a store, which became you know,

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Speaker 1: it was popular among NASCAR fans because it was endemic,

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Speaker 1: you know, just like the cars are driven around the

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Speaker 1: country that the store was as well. Um, NASCAR says

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Speaker 1: they're gonna put together a different merchandising model for two

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Speaker 1: thousand nineteen unclear immediately what that what that looks like? Um,

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Speaker 1: but you know there's a lot of changes going on

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Speaker 1: over there. They've got a new CEO right in place,

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Speaker 1: starting earlier this month or last month. Um, so yeah,

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Speaker 1: this is uh a time of flot I know they're

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Speaker 1: gonna do a bar as the drivers go around the track,

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Speaker 1: They're got to shoot, like the T shirt candidates out

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Speaker 1: of the window. Here's the cracking at you at two

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Speaker 1: and now we're going to shoot a T shirt gun.

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Speaker 1: Would you go? I mean i'd buy the chiefs. Yeah,

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Speaker 1: one quick thing and we gotta move on. But this

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Speaker 1: brings up an even bigger problem because of dwindling track attendance.

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Speaker 1: And I hate to say it, when you see the

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Speaker 1: stuff televised on TV, you see the attendance in the

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Speaker 1: stands is a lot of a lot of fans disguised

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Speaker 1: as empty seats. So this is something NASCAR is going

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Speaker 1: to have to NASCAR is trying to figure this out

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Speaker 1: as they try and sell a partnership stake or limited

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Speaker 1: steak in the series. Lots of things happening. Let's talk

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Speaker 1: about Floyd Mayweather. He is planning on fighting Japanese kickboxer tension,

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Speaker 1: Nasukawa on December thirty one, north of Tokyo. Oh no, no,

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Speaker 1: you don't get to just introduce this until it you said,

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Speaker 1: you don't get to just throw that out. I wanted

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Speaker 1: this is you know what, this is great? You know,

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Speaker 1: what do you know about Mr not A. He's twenty

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Speaker 1: years old? All right? Undefeated? Undefeated? Yeah, I undefeated, he's undefeated.

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Speaker 1: But Mayweather he's fifty or oh yeah, so but see

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Speaker 1: he's obviously he's a boxer. He doesn't he has never

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Speaker 1: been into the m m A rules. So I want

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Speaker 1: to see how this is gonna go. Yeah, I mean,

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Speaker 1: they haven't announced what rules they may end up fighting

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Speaker 1: boxing rules. You know, they haven't announced the rules yet. Again,

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Speaker 1: Floyd Mayweather has fought his entire career very carefully, calculating

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Speaker 1: who he fought to make sure that he never lost.

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Speaker 1: I cannot imagine that he is going to do anything

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Speaker 1: under these rules, under the weight classes, under the weight

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Speaker 1: of the gloves, etcetera. And he's going to do anything

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Speaker 1: that he is not supremely confident that he is going

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Speaker 1: to be the dominant fighter within. But it's an interesting

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Speaker 1: He hasn't realized this until I read this story. Floyd

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Speaker 1: hasn't fought outside of Las Vegas since November two five. Yeah,

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Speaker 1: it's been a long time. It's gonna be almost fifteen

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Speaker 1: years from his last which was against Charmba Mitchell at

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Speaker 1: the Rose Garden in Portland, Oregon. So since then, since

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Speaker 1: then he's only fought in Vegas. Um, this is gonna

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Speaker 1: be obviously in Tokyo, as you said, Michael, so a

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Speaker 1: far trip away, a smaller, smaller venue than some of

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Speaker 1: the ones he's fought. And I believe um interesting to

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Speaker 1: see kind of what the money, who sells it? What

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Speaker 1: the cut is Tiger Phil Cumming or get the Yeah,

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Speaker 1: and you know, if you're going again, this is about

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Speaker 1: scale and aggregation. How many people are willing to fork

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Speaker 1: over X dollars to see it? You got a forty

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Speaker 1: one year old going up against the twenty year old.

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Speaker 1: So I mean, here's here's a guy that's going to

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Speaker 1: fight somebody that's more then double his eight. So I'm

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Speaker 1: just wondering how much would you pay? I was really

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Speaker 1: remember when we guess the Tiger Phil price, and I

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Speaker 1: was like fifty fifty four whatever it was, and I

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Speaker 1: was really far off there. Let's set the price on

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Speaker 1: this nineteen you asked me what I would pay or

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Speaker 1: how much I think it's gonna cost. What would you

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Speaker 1: said it and what would you pay? I mean I

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Speaker 1: would pay five dollars. So this isn't something that I

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Speaker 1: don't I don't buy big boxing match. But my guess

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Speaker 1: is it's gonna cost oh with twenty one knockouts in

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Speaker 1: kickboxing and four with two knockouts in m A, so

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Speaker 1: that's not too oh um. What I think it will cost,

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Speaker 1: My guesses would be in the sixty dollar range. Whether

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Speaker 1: it is a is an incredible draw for the for

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Speaker 1: the for the fight community. He's the only has zero

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Speaker 1: appeal to me. Zero. But you're not the audience, right

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Speaker 1: that you're not. You're not the one looking for it

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Speaker 1: and the audience, much like you see in other sports,

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Speaker 1: the allure of people who want to see Floyd Mayweather

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Speaker 1: lose is a large amount of the people that buy

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Speaker 1: these fights. And if and if putting in the undefeated

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Speaker 1: Japanese fighter who not a lot of people know, with

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Speaker 1: maybe a few different rules than boxing that might make

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Speaker 1: it a little more likely than he loses, that's probably

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Speaker 1: gonna drive. That's probably gonna drive drive interest, you know,

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Speaker 1: Nasakawa said during the press conference. He said, first of all,

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Speaker 1: he said, probably this is the biggest event of my

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Speaker 1: life so far. Yeah, I guess so. It's funny. But

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Speaker 1: the other line I love. He said, my punch can

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Speaker 1: change history and I will show that to you, so

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Speaker 1: please stay tuned. And that As far as the Cuffs promotion,

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Speaker 1: that's tamer than team. But no entourage, pushing, shutting chairs,

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Speaker 1: flying nothing. We just respect my opponent and I wish

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Speaker 1: to do well. You can hear Connor McGregor laughingly going,

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Speaker 1: young man, this is no way to get rich. Here's

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Speaker 1: this is no way to get rich, young man. Uh.

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Speaker 1: This is the Bloomberg Business of Sports podcast Tom Michael Barr,

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Speaker 1: along with Scott Sasnik and Evan W. Williams. We are

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

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Speaker 1: world of money in sports. Join us again at the

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Speaker 1: end of the week when we speak with the biggest

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Speaker 1: and brightest in the sports business industry. You're listening to

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Speaker 1: Bloomberg Business of Sports on Bloomberg Radio around the world

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Speaker 1: and online, where our podcast