WEBVTT - US Services Expands at Modest Pace, Power Players Event 0:00:02.440 --> 0:00:09.119 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:09.160 --> 0:00:13.280 Bloomberg Intelligence Podcast. Catch us Live weekdays at ten am 0:00:13.360 --> 0:00:14.640 Eastern on Apple card. 0:00:14.520 --> 0:00:17.040 Playing Android Auto with the Bloomberg Business App. 0:00:17.079 --> 0:00:20.279 Listen on demand wherever you get your podcasts, or watch 0:00:20.360 --> 0:00:22.320 us live on YouTube. 0:00:23.680 --> 0:00:25.159 We're taking a look though at the ECO data that 0:00:25.239 --> 0:00:27.440 just crossed right in ISM Manufacturing had come in a 0:00:27.440 --> 0:00:31.320 week earlier in the week US services sector expanding at 0:00:31.320 --> 0:00:33.839 a modest pace. For the second month in August, ISM 0:00:33.920 --> 0:00:36.680 service a little changed about fifty one point five. Now 0:00:36.680 --> 0:00:39.920 remember readings about fifty still indicate expansions. Who want to 0:00:39.920 --> 0:00:41.960 get right to the guy behind the data. Steve Miller 0:00:42.080 --> 0:00:44.800 is chair of the ISM Services PMI Hay, Steve, what 0:00:44.840 --> 0:00:45.800 do you make of the data today? 0:00:47.080 --> 0:00:49.839 Well, we're encouraged to see the second month in a 0:00:49.920 --> 0:00:52.760 row of growth, and it's the six month out of 0:00:52.880 --> 0:00:56.880 the year that we've seen growth, so definitely encouraged. One 0:00:56.880 --> 0:00:59.120 of the things that was one of the sub indexes 0:00:59.240 --> 0:01:01.880 is at a bit of a prize, was backlog dropping 0:01:01.960 --> 0:01:07.360 significantly down to about forty three percent. And what we 0:01:07.440 --> 0:01:10.720 attributed that to is a lot of the commentary has 0:01:10.720 --> 0:01:15.720 been around improving supply chain performance and utilizing capacity to 0:01:15.840 --> 0:01:18.920 catch up. So we attribute that to maybe catching up 0:01:18.920 --> 0:01:21.839 on late orders that were impacted during supply chain dissuptions 0:01:21.880 --> 0:01:22.600 earlier in the year. 0:01:25.560 --> 0:01:28.039 So give us a sense of what this means. Do 0:01:28.080 --> 0:01:29.480 you think for the Federal Reserve? How do you think 0:01:29.520 --> 0:01:32.720 the Federal Reserve will look at an ISM index that's 0:01:33.040 --> 0:01:35.320 still showing some positive growth there fifty one point five. 0:01:36.440 --> 0:01:39.280 Yeah, I think it's very consistent with going forward with 0:01:39.319 --> 0:01:43.120 the rate cuts. It's the lowest rate of increase that 0:01:43.160 --> 0:01:48.120 we've had historically. There were only three ratings or three 0:01:48.240 --> 0:01:52.720 readings last year that were lower than this month's reading, 0:01:53.000 --> 0:01:56.280 and then going back to twenty twenty two, only December's 0:01:56.320 --> 0:01:59.240 reading was lower than this. So we're seeing growth, which 0:01:59.280 --> 0:02:02.920 is positive, but all the indicators in the data are 0:02:02.960 --> 0:02:08.239 showing very slow growth and some of the indicators and 0:02:08.320 --> 0:02:12.000 far as costs and cost continuing to impact as well 0:02:12.000 --> 0:02:15.280 as interest rates continuing to impact investment. 0:02:15.520 --> 0:02:19.800 Seems like now's the right time, all right, Steve, We 0:02:19.840 --> 0:02:20.320 appreciate it. 0:02:20.360 --> 0:02:22.440 Thank you so much for that incident analysie. Steve Miller, 0:02:23.040 --> 0:02:24.640 ISM Chair for Services. 0:02:26.240 --> 0:02:30.120 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:02:30.200 --> 0:02:33.120 weekdays at ten am Eastern on applecar. 0:02:32.760 --> 0:02:35.560 Play and Android Auto with the Bloomberg Business App. 0:02:35.639 --> 0:02:38.480 You can also listen live on Amazon Alexa from our 0:02:38.520 --> 0:02:43.880 flagship New York station, Just Say Alexa playing Bloomberg eleven thirty. 0:02:44.760 --> 0:02:46.880 Alex Deel, Paul Sweeney. We are live here at the 0:02:47.120 --> 0:02:50.680 Bloomberg conference here in New York. It is called the 0:02:50.880 --> 0:02:58.720 Power Players, talking about the convergence of sport business, you know, atternowledgement, technology, 0:02:58.800 --> 0:03:00.800 all that kind of stuff all coming together other and 0:03:00.880 --> 0:03:02.800 so they've got a great lineup of folks here today 0:03:02.840 --> 0:03:05.600 talking about that, and we're going to interview a handful 0:03:05.639 --> 0:03:07.639 of some really smart people coming up over the next 0:03:07.639 --> 0:03:10.240 couple hours that are gonna be participating in this conference. 0:03:10.240 --> 0:03:12.880 We'll talk about that coming up. But it talks about 0:03:12.880 --> 0:03:16.400 the big business of sports. And the most recent news 0:03:16.480 --> 0:03:20.080 is private equity is now going to be allowed to 0:03:20.280 --> 0:03:23.560 invest in part in the NFL. So you think about 0:03:23.600 --> 0:03:25.760 the here, this is a big deal. This is a 0:03:25.760 --> 0:03:28.200 big deal because the other the private ecutris got tremendous 0:03:28.240 --> 0:03:31.600 amounts of capital, and the NFL valuations have been just 0:03:31.639 --> 0:03:35.480 going so high that individuals anymore almost are priced out 0:03:35.520 --> 0:03:37.800 of the market that when families used to own these 0:03:37.880 --> 0:03:40.800 NFL franchise that's becoming less and less of an instance. 0:03:40.800 --> 0:03:43.760 You need big institutional capital and that's kind of one 0:03:43.760 --> 0:03:45.960 of the stories that they'll be talking about yes today and. 0:03:45.960 --> 0:03:46.800 An alternative energy. 0:03:46.800 --> 0:03:49.400 I mean, I'll turnm of investments go right to where 0:03:49.400 --> 0:03:51.240 I want to talk about is definitely the thing right 0:03:51.360 --> 0:03:52.760 is you have more money and it needs to find 0:03:52.760 --> 0:03:55.600 more opportunities. And luckily the Bloomberg Big Take Today sort 0:03:55.600 --> 0:03:58.280 of helps set all of this up for us. Random 0:03:58.320 --> 0:04:00.200 Williams and one of the authors on it, and the 0:04:00.200 --> 0:04:03.280 title is the Billionaire NFL Family Eyes Windfall from Wall 0:04:03.320 --> 0:04:06.160 Street and the Swifties, and this really focuses on Dan 0:04:06.240 --> 0:04:08.560 and Clark Hunt controlling a six and a half billion 0:04:08.600 --> 0:04:12.160 dollar empire with a portfolio of teams across the nation 0:04:12.320 --> 0:04:16.400 from the NFL, Major League Soccer, and the National Basketball Association. 0:04:16.520 --> 0:04:18.120 I read it, I read the sports and it was 0:04:18.160 --> 0:04:20.920 a great, great I learned a lot. Actually, Randall Williams 0:04:21.320 --> 0:04:24.320 joins us here at Bloomberg headquarters. Hey, Randall, walk me 0:04:24.360 --> 0:04:26.720 through what you learned about this family and how it 0:04:26.800 --> 0:04:29.560 runs itself and sort of all the different branches they 0:04:29.560 --> 0:04:30.160 have in sports. 0:04:30.520 --> 0:04:32.080 Yeah you said it or you mapped it out out 0:04:32.080 --> 0:04:34.960 there going my glasses, it happens, but yes, you mapped 0:04:34.960 --> 0:04:37.320 it out. They have a majority ownership of the Chiefs 0:04:37.360 --> 0:04:40.279 of FC Dallas and then an eleven percent stake in 0:04:40.279 --> 0:04:43.440 the Bulls. So they are one of the premier sports 0:04:43.440 --> 0:04:46.120 families across the country and I'd say across the world too. 0:04:46.520 --> 0:04:50.599 What are their ambitions here just sports in general going forward? 0:04:50.600 --> 0:04:53.240 As you mentioned, they have diversified ownership. Obviously, the biggest 0:04:53.279 --> 0:04:56.720 asset is the Chiefs, which they've owned forever. It seems 0:04:56.760 --> 0:04:59.240 like where do they want to grow going forward? 0:04:59.520 --> 0:05:00.599 Well, it's all in sports. 0:05:00.720 --> 0:05:01.080 I mean. 0:05:01.240 --> 0:05:03.039 One of the things that Clark and Dan Hunt have 0:05:03.080 --> 0:05:06.480 talked about is the opportunity to grow in soccer. I mean, 0:05:06.520 --> 0:05:08.040 the World Cup will be here in twenty twenty six, 0:05:08.120 --> 0:05:10.760 the Olympics in twenty twenty eight. That's a tremendous opportunity 0:05:10.760 --> 0:05:13.800 to grow soccer domestically. Anyone who knows and I should 0:05:13.839 --> 0:05:16.039 say football, but you know, I know this is. 0:05:16.040 --> 0:05:18.120 Going to get confusing, right because like soccer play with 0:05:18.120 --> 0:05:19.760 your feets, right, should be football. 0:05:19.839 --> 0:05:22.479 I'll say soccer to stay American. But anyone who knows 0:05:22.520 --> 0:05:26.000 soccer knows that it is the giant internationally, it isn't 0:05:26.040 --> 0:05:29.560 here the same way domestically. The World Cup provides an 0:05:29.560 --> 0:05:32.440 opportunity for that. At the same time, the NFL has 0:05:32.480 --> 0:05:36.320 an opportunity internationally because that's the giant domestically. So the 0:05:36.400 --> 0:05:38.920 NFL is trying to play more games internationally. They're trying 0:05:38.920 --> 0:05:41.480 to grow their business internationally. So those are the two 0:05:41.480 --> 0:05:43.440 opportunities that both of them see, and I think they're 0:05:43.440 --> 0:05:44.760 doing a pretty good job of managing it. 0:05:45.240 --> 0:05:48.040 I have an actual, like legitimate but silly question, Sure, 0:05:48.080 --> 0:05:50.400 how do they deal with the name problem, the soccer 0:05:50.480 --> 0:05:53.240 versus football versus actual football, like, especially if they try 0:05:53.279 --> 0:05:53.799 and grow abroad. 0:05:53.800 --> 0:05:56.320 For the NFL, well, I think that when you go abroad, 0:05:56.360 --> 0:05:59.640 you adjust, you ad justin. It's a question for the 0:05:59.640 --> 0:06:01.479 committioners and how they want to market it. 0:06:01.880 --> 0:06:03.159 Do we know what the answer is that going to be. 0:06:03.200 --> 0:06:06.479 I think football is going to stay football, and you 0:06:06.480 --> 0:06:08.840 know there'll be a budding rivalry between the two quiet one. 0:06:08.880 --> 0:06:10.599 But as long as everybody's making money, then you know 0:06:10.720 --> 0:06:11.640 it keeps everybody happy. 0:06:11.680 --> 0:06:14.159 Fair enough, all right, So talk to us about private equity. 0:06:14.240 --> 0:06:15.920 That was kind of for me being a Wall Street guy. 0:06:16.000 --> 0:06:18.719 The big news in sport over the past couple weeks, 0:06:18.720 --> 0:06:22.560 and Clark Hunt himself led the committee in the NFL 0:06:22.600 --> 0:06:25.320 to kind of address this issue. What is they're thinking 0:06:25.320 --> 0:06:27.320 about private equity? Why did they go down that road? 0:06:27.560 --> 0:06:29.800 Well, I heard you talking about this a little earlier. 0:06:29.839 --> 0:06:32.280 But the reality is, if you're selling a five to 0:06:32.320 --> 0:06:35.360 ten percent stake in a franchise that's worth six billion dollars, 0:06:35.400 --> 0:06:37.640 that's three hundred million dollars or six hundred million dollars 0:06:37.640 --> 0:06:40.520 in cash, and the evaluations are only going higher. How many 0:06:40.520 --> 0:06:42.799 people can write a three hundred to six million million 0:06:42.839 --> 0:06:44.239 dollar check, even if it's discounted. 0:06:44.279 --> 0:06:45.719 Let's say you take fifty million off. 0:06:45.640 --> 0:06:47.640 That's still a lot of money. Even the richest athletes 0:06:47.680 --> 0:06:50.080 in the world don't have two hundred million dollars in 0:06:50.120 --> 0:06:52.440 cash to just send to a team. And this is 0:06:52.480 --> 0:06:54.920 a long term investment. You're not getting that money back tomorrow. 0:06:54.960 --> 0:06:56.360 You have to be in this for the long run. 0:06:56.600 --> 0:06:59.320 And so with that, if you're selling to an individual 0:06:59.480 --> 0:07:01.760 that individ isn't going to come in and just want 0:07:01.800 --> 0:07:04.000 to sit on the sidelines and say, oh, yeah, I 0:07:04.000 --> 0:07:05.840 have a piece of a team. No they might want 0:07:05.839 --> 0:07:07.800 to ride on the team plane, they might want an 0:07:07.800 --> 0:07:11.440 ownership suite. These owners and a lot across sports period, 0:07:11.960 --> 0:07:14.920 have inherited these teams over time. They are very very 0:07:15.040 --> 0:07:18.000 very close in prized possessions. That means that they don't 0:07:18.040 --> 0:07:19.840 want to let an individual who they may not know. 0:07:19.960 --> 0:07:22.760 In private equity is a solution to that. They want 0:07:22.800 --> 0:07:24.720 returns on their investment, they're not going to look to 0:07:24.760 --> 0:07:27.880 be riding on a team plane, maybe own the exactly 0:07:28.360 --> 0:07:31.000 exactly so they'll be willing to be quiet investors as 0:07:31.040 --> 0:07:33.520 what I'd called them, and so it's a solution. But 0:07:33.560 --> 0:07:36.480 the most important detail that I think I'll be saying 0:07:36.480 --> 0:07:39.040 for years to come is that both Jerry Jones and 0:07:39.040 --> 0:07:41.640 Clark Hunt said that this was a positive day, not 0:07:41.720 --> 0:07:44.920 a happy one. It's not something that the owners want 0:07:44.960 --> 0:07:47.560 to do. Quite frankly, I think if they were making 0:07:47.680 --> 0:07:50.160 more money. That doesn't mean that they're not making money, 0:07:50.240 --> 0:07:51.920 but if they were making more money, they wouldn't be 0:07:51.920 --> 0:07:55.400 allowing this. But these are providing solutions to secession issues, 0:07:55.440 --> 0:07:58.520 to stadium deals, to giving liquidity to owners who might 0:07:58.560 --> 0:08:00.760 not have the cash that they want. So that's setting 0:08:00.760 --> 0:08:02.240 a landscape for private equity and. 0:08:02.200 --> 0:08:05.240 I noticed that, you know, the Hunts, they had a 0:08:05.360 --> 0:08:08.360 defeat recently in that they weren't able to get I 0:08:08.360 --> 0:08:11.120 guess the municipalities surrounding their stadium in Kansas City to 0:08:11.200 --> 0:08:14.480 help them renovate the stadium or maybe even a new stadium. 0:08:14.680 --> 0:08:16.680 What's the future there? Because I look a lot of 0:08:16.680 --> 0:08:18.760 people look at the Kansas City as maybe over the 0:08:18.840 --> 0:08:21.480 last five years, the most successful franchise or the RFL, 0:08:21.880 --> 0:08:25.760 and our people tell you the stadium's terrible. Yeah, relative 0:08:26.080 --> 0:08:28.240 relative to the new stadiums being built that are just 0:08:28.440 --> 0:08:29.280 it's an older stadium. 0:08:29.280 --> 0:08:32.319 I'd say that I think that there's a nostalgia feeling 0:08:32.360 --> 0:08:34.840 around older stadiums. However, there's a reason they're looking for 0:08:34.840 --> 0:08:38.720 this money to renovate because it needs renovation. So what's 0:08:38.760 --> 0:08:40.680 going to happen next. They've tried at the local level. 0:08:40.679 --> 0:08:42.559 I think they'll go to the state, but they've also 0:08:42.720 --> 0:08:45.560 opened a door to going across state lines to the 0:08:45.600 --> 0:08:47.679 state of Kansas. So all options are. 0:08:47.640 --> 0:08:48.079 On the table. 0:08:48.080 --> 0:08:51.000 Do they want to leave Arrowhead Stadium? No, absolutely not. 0:08:51.120 --> 0:08:53.319 Clark will tell you that. The team president, Mark will 0:08:53.360 --> 0:08:55.080 tell you that they don't want to leave Kansas City. 0:08:55.160 --> 0:08:56.920 But the reality is this is a business, and this 0:08:57.000 --> 0:08:59.679 is a money making business. If it's going to cost 0:08:59.720 --> 0:09:01.600 them more money to stay in Kansas City as opposed 0:09:01.640 --> 0:09:03.079 to going to Kansas where they might be able to 0:09:03.080 --> 0:09:04.400 build a stadium, they're going to do that. 0:09:05.080 --> 0:09:07.600 Okay, talk to you about today, power players. 0:09:07.120 --> 0:09:09.079 The fun day. Okay, party day. 0:09:09.440 --> 0:09:10.760 It's a party yer for you and I get to 0:09:10.800 --> 0:09:14.120 learn about sports. So together we are united. What a 0:09:14.160 --> 0:09:15.559 panels are you going to be moderating? What are you 0:09:15.559 --> 0:09:16.160 excited about? 0:09:16.200 --> 0:09:20.040 Among two college sports panels, we have Dajah Kelly, Brittany Whiteside, 0:09:20.040 --> 0:09:24.000 Tim Prinetti, all prominent people in college sports who are 0:09:24.000 --> 0:09:26.319 in the business of it. We also have open Door 0:09:26.400 --> 0:09:29.959 CEO Blake Lawrence. They'll be speaking at Blake Lawrence and 0:09:30.000 --> 0:09:32.200 Britney Whiteside will be speaking at a lunch panel. And 0:09:32.200 --> 0:09:35.559 then Dejah Kelly, Tim Prinetti and again Brittany will be 0:09:35.640 --> 0:09:37.160 speaking on another college sports panel. 0:09:37.200 --> 0:09:39.240 So those are my two today. We have many Yeah, 0:09:39.400 --> 0:09:43.160 formula of Rutgers, great name in the Big East. The 0:09:43.160 --> 0:09:45.640 big thing college sports is. I think it's a wild 0:09:45.679 --> 0:09:48.120 West here in terms of oh of the dollars going around, 0:09:48.240 --> 0:09:52.320 nil name, image and likeness. Right, you got twenty million 0:09:52.320 --> 0:09:55.280 dollars rosters out there, and it's only going to go hire. 0:09:56.640 --> 0:09:58.880 Somebody's got to step in and regulate this thing. Who's 0:09:58.920 --> 0:10:03.880 going to do it? They will find out today. We'll 0:10:03.880 --> 0:10:04.520 find out today. 0:10:04.520 --> 0:10:07.080 I mean, listen, if there was an easy solution to this, 0:10:07.120 --> 0:10:09.920 I think we'd have it by now. The NCAA is 0:10:09.960 --> 0:10:11.760 going back and forth to the Supreme Court. It feels 0:10:11.800 --> 0:10:13.920 like every other week on what it can regulate and 0:10:13.960 --> 0:10:17.000 what it can't regulate. What that means for the athletes, 0:10:17.200 --> 0:10:19.199 it's a great time. It's a great time. You can 0:10:19.200 --> 0:10:21.679 get money just about everywhere legally. I mean there's, yes, 0:10:21.720 --> 0:10:23.920 there's some infractions here and there. But if you want 0:10:23.920 --> 0:10:25.760 to go into sports as a college athlete right now, 0:10:25.760 --> 0:10:27.440 the reality is you can go to Wretgers get one 0:10:27.480 --> 0:10:29.439 hundred thousand dollars, you can go to Texas get five 0:10:29.520 --> 0:10:31.280 hundred thousand dollars, and then you can go to Florida 0:10:31.320 --> 0:10:33.200 and get one point five million and never touch the 0:10:33.280 --> 0:10:35.520 NFL YE nineteen. 0:10:35.200 --> 0:10:36.679 And having that, I mean like, no way would I 0:10:36.720 --> 0:10:37.079 know what to. 0:10:37.040 --> 0:10:39.480 Do going back to school. Yes, I'm going back to school. 0:10:39.600 --> 0:10:42.440 Definitely, sports them up me and soccer and we'll talk 0:10:42.480 --> 0:10:44.880 to Britney Whiteside actually just right after this break, so 0:10:45.520 --> 0:10:46.080 great stuff. 0:10:46.120 --> 0:10:47.640 Thank you so much, Randall, really appreciate it. 0:10:47.640 --> 0:10:50.280 Good luck today, enjoy yourself, looking forward to the rest 0:10:50.280 --> 0:10:52.800 of the panels from Bloomberg. 0:10:54.160 --> 0:10:58.040 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:10:58.120 --> 0:11:01.480 weekdays at ten am Eastern car Playing and broud Otto 0:11:01.559 --> 0:11:04.520 with the Bloomberg Business app. Listen on demand wherever you 0:11:04.559 --> 0:11:08.240 get your podcasts, or watch us live on YouTube. 0:11:09.160 --> 0:11:13.160 Alex Steel here alongside Paul Sweeney. We are live at 0:11:13.160 --> 0:11:16.120 the Bloomberg Power Players at Bloomberg Global Headquarters right here 0:11:16.120 --> 0:11:18.400 in New York. The some is bringing together industry leaders 0:11:18.679 --> 0:11:21.760 at the intersection of sports, business and technology. 0:11:21.880 --> 0:11:22.360 AKA. 0:11:22.440 --> 0:11:25.120 This is the day where Alex learns more things about sports. Yes, 0:11:25.240 --> 0:11:27.520 I think everyone will be very helpful to hear about. 0:11:27.600 --> 0:11:30.520 Joining us now is Brittany Whiteside. She is vice president 0:11:30.520 --> 0:11:33.680 of All Sports Partners and she has a long career 0:11:34.040 --> 0:11:37.800 in this area. Before this, she was at trustee of 0:11:37.840 --> 0:11:40.880 Whiteside served as an executive Associate Athletes Director at the 0:11:40.960 --> 0:11:44.200 University of Virginia and Charlesville. She was also a member 0:11:44.240 --> 0:11:47.000 of the department's executive Leadership team and has been deeply 0:11:47.000 --> 0:11:49.680 involved in college sports for quite a long time. 0:11:49.720 --> 0:11:51.240 Brittany, thank you so much for joining us. 0:11:51.280 --> 0:11:52.160 Thank you for having me. 0:11:52.200 --> 0:11:54.160 Okay, this is where you get dumb stuff down for me. So, 0:11:54.240 --> 0:11:57.640 college sports, I know is definitely changing. How is it 0:11:57.720 --> 0:11:59.480 changing and how quickly is it changing? 0:12:00.000 --> 0:12:02.040 You know, it is changing rapidly. 0:12:02.200 --> 0:12:04.400 Probably in the last three years we've seen some of 0:12:04.440 --> 0:12:07.040 the most change in college sports, but also in an 0:12:07.080 --> 0:12:10.480 industry at large, we have the implementation of nil I'm 0:12:10.480 --> 0:12:11.360 sure you've heard of that. 0:12:11.360 --> 0:12:13.040 That's a buzzword right now. 0:12:13.160 --> 0:12:16.680 Athletes can earn money off of their name, image and likeness. 0:12:16.679 --> 0:12:19.679 And so when you talk about college athletics and change 0:12:19.679 --> 0:12:21.880 and you think about that in the last year, in 0:12:21.920 --> 0:12:24.480 the last three years, that's the biggest change. And now 0:12:24.520 --> 0:12:26.480 we're at a point where we continue to see the 0:12:26.559 --> 0:12:29.280 change and you have the House settlement where schools may 0:12:29.600 --> 0:12:33.600 be able to now pay athletes directly, and so as 0:12:33.640 --> 0:12:36.080 you think about college athletics and the business model, it 0:12:36.120 --> 0:12:38.920 is completely shifted and leaders across the country are preparing 0:12:38.960 --> 0:12:39.800 for that all right. 0:12:39.840 --> 0:12:41.960 To me, it's all about the economics, and I think 0:12:42.000 --> 0:12:45.319 most people agree that given the money behind big time 0:12:45.360 --> 0:12:48.679 college sports, that in fact, the athletes should be compensated 0:12:48.800 --> 0:12:52.319 for that. The question is, is nil the way it 0:12:52.360 --> 0:12:55.960 doesn't seem like it. It seems like rudimentary at best. 0:12:56.360 --> 0:13:00.520 You've got there's no regulation, there's no way to ensure 0:13:00.520 --> 0:13:02.920 and even playing field. Where do we go from here? 0:13:02.960 --> 0:13:04.920 It seems like we opened up Pandora's box and we 0:13:04.960 --> 0:13:05.559 have no idea. 0:13:05.720 --> 0:13:07.280 Yeah, well, I agree with you. 0:13:07.440 --> 0:13:09.400 It is the right thing for athletes to be able 0:13:09.440 --> 0:13:11.960 to earn money off of their name, image and likeness. 0:13:11.960 --> 0:13:14.840 So but to be able to monetize that right nil 0:13:14.960 --> 0:13:17.079 was the first step in that the ability for athletes 0:13:17.120 --> 0:13:19.600 to go out and to earn income, whether that is 0:13:19.640 --> 0:13:22.880 through working with brands or in some spaces you probably 0:13:22.880 --> 0:13:25.040 heard of collectives in this space as well, you know, 0:13:25.120 --> 0:13:28.679 helping athletes generate money off their name, image and likeness. 0:13:28.720 --> 0:13:29.720 Where do we go from here? 0:13:30.040 --> 0:13:32.600 You know, we have the pending House settlement, which as 0:13:32.600 --> 0:13:37.320 we sit today, the judge will hear arguments against the 0:13:37.320 --> 0:13:40.280 fairness of that House settlement. Right, House settlement is really 0:13:40.320 --> 0:13:43.439 the next step in the framework for college athletes and 0:13:43.760 --> 0:13:47.439 athletic departments to be able to share in that revenue. 0:13:47.520 --> 0:13:50.320 Right it's a revenue sharing proposal and so in terms 0:13:50.360 --> 0:13:53.200 of next steps, right now it is depending house settlement 0:13:53.520 --> 0:13:55.560 and next steps for athletes to be able to be 0:13:55.679 --> 0:13:59.679 paid directly from institutions versus brands and collectives and all 0:13:59.679 --> 0:14:02.440 of the other areas, and then there will be some 0:14:02.800 --> 0:14:04.840 upcoming regulation to that as well. 0:14:06.000 --> 0:14:08.240 What about I mean that this is tied to a 0:14:08.280 --> 0:14:11.280 college or university is also just so odd, Like this 0:14:11.400 --> 0:14:13.520 is like a professional business that one can be a 0:14:13.520 --> 0:14:15.200 part of, but yet you're going to be nineteen years 0:14:15.240 --> 0:14:17.800 old also expecting to like go get your GPA and 0:14:17.840 --> 0:14:20.080 do well in school. How does all of this going 0:14:20.120 --> 0:14:20.800 to coexist? 0:14:21.120 --> 0:14:23.560 You know it has coexisted now for a while, and 0:14:23.720 --> 0:14:26.200 you know that was a major concern of mine early on. 0:14:26.760 --> 0:14:27.760 Is how are athletes? 0:14:27.760 --> 0:14:29.920 How are college students going to be able to navigate this? 0:14:30.000 --> 0:14:32.400 And what we've seen is they've been don't handle it well. 0:14:32.520 --> 0:14:35.240 Some of them engage in the NIL space and do 0:14:35.360 --> 0:14:37.600 so in a way and meaningful ways where they're getting 0:14:37.680 --> 0:14:40.600 internships and opportunities and skill sets that they did not 0:14:40.720 --> 0:14:41.000 have the. 0:14:40.960 --> 0:14:42.080 Opportunity to get before. 0:14:42.280 --> 0:14:44.440 So when you think about NIL, you think about managing 0:14:44.480 --> 0:14:47.440 your brand, you think about negotiating all of those skills 0:14:47.480 --> 0:14:49.680 are skills that you need for life, and so as 0:14:49.720 --> 0:14:52.080 part of being a student, part of that is preparing 0:14:52.080 --> 0:14:55.080 for life after you know, your time on campus for 0:14:55.120 --> 0:14:58.720 four or five years, and so NIL in many ways 0:14:58.800 --> 0:15:01.760 has been handled for student has a great opportunity for 0:15:01.800 --> 0:15:04.240 them to leverage their their brand and be able to 0:15:04.360 --> 0:15:06.880 generate money and help prepare them for a future. 0:15:07.160 --> 0:15:09.680 What's the I guess the other big issue in college 0:15:09.680 --> 0:15:12.280 athletics has been the realignment of conferences. And now we've 0:15:12.320 --> 0:15:16.280 got my poor you know, Rutgers field hockey team sleeping 0:15:16.280 --> 0:15:18.160 on the floor of Newark Airport because they're taking a 0:15:18.160 --> 0:15:22.400 flight out to Stanford Stanford in Palo Alto. What's going 0:15:22.440 --> 0:15:24.680 on there? Where? How is this going to evolve? Do 0:15:24.720 --> 0:15:24.960 you think? 0:15:25.160 --> 0:15:25.280 Wait? 0:15:25.320 --> 0:15:26.800 Wait, why is that bad? 0:15:26.240 --> 0:15:29.640 Because now Stanford on the West Coast is now part 0:15:29.720 --> 0:15:33.920 of the ACC for so they got to go fly 0:15:34.000 --> 0:15:37.400 from Palo Alto to Durham, North Carolina. And I can 0:15:37.480 --> 0:15:39.240 understand that for the football team they're on a charter 0:15:39.320 --> 0:15:41.360 jet all kind of same thing for basketball. But I thought, 0:15:41.400 --> 0:15:43.720 for like the smaller sports, how is this impacting? 0:15:44.320 --> 0:15:47.120 Yeah, you know, that's an interesting dynamic when you think 0:15:47.120 --> 0:15:49.560 about some of the Olympic sports, right, yeah, and you 0:15:49.600 --> 0:15:51.040 talked about what are some of the things that we 0:15:51.080 --> 0:15:53.040 still need to figure out in college sports. I think 0:15:53.040 --> 0:15:55.480 that's part of it. Conference realignment as a whole, you know, 0:15:55.560 --> 0:15:59.240 mostly driven by football schools that are competing out the 0:15:59.320 --> 0:16:01.920 highest level, schools that want to compete at the highest level. 0:16:02.120 --> 0:16:04.880 With that comes other Olympic sports that it may not 0:16:05.040 --> 0:16:08.200 make as much sense economically for them to travel or 0:16:08.240 --> 0:16:11.360 for student athlete experience for them to travel. But when 0:16:11.360 --> 0:16:13.920 schools and institutions want to compete at the highest level, 0:16:13.920 --> 0:16:15.880 that is part of it. And so right now many 0:16:15.880 --> 0:16:18.240 schools are having those conversations on where do we want 0:16:18.240 --> 0:16:20.120 to be in this landscape? Do we want to compete 0:16:20.120 --> 0:16:22.520 at the highest level? And if we do, that may 0:16:22.560 --> 0:16:25.400 come with your field hockey team traveling across the country 0:16:25.400 --> 0:16:27.400 to compete against the best in the country. 0:16:27.440 --> 0:16:28.840 But then they still have to go like take a 0:16:28.840 --> 0:16:31.240 test and do grades. I mean, that's that's something else 0:16:31.280 --> 0:16:35.320 you have wi FI Now, fair enough, what do you 0:16:35.320 --> 0:16:36.920 think that athletes could be doing better though? 0:16:36.960 --> 0:16:37.320 Right now? 0:16:37.520 --> 0:16:37.680 Oh? 0:16:38.000 --> 0:16:40.320 You know, it's such a key time for athletes to 0:16:40.400 --> 0:16:43.240 hone in on who they are, their their identity, how 0:16:43.280 --> 0:16:45.920 they can manage themselves because we all knew that grand teams, 0:16:46.000 --> 0:16:50.160 I know, right, But also they are also engaging responsibly 0:16:50.200 --> 0:16:52.040 and thinking about like, what are some of the brands 0:16:52.080 --> 0:16:54.520 that I work with on or you know a coffee 0:16:54.520 --> 0:16:56.640 shop that I always go to, a local coffee shop, 0:16:56.840 --> 0:16:59.720 how can I utilize my NIL with that local coffee 0:16:59.720 --> 0:17:03.320 shop to create a partnership, right, And so you know 0:17:03.600 --> 0:17:05.280 that's how athletes are navigating it now. 0:17:05.280 --> 0:17:06.880 They're navigating at the local level. 0:17:06.880 --> 0:17:09.680 And then also they have schools that are putting resources 0:17:09.720 --> 0:17:12.760 together to help educate them on how to really navigate 0:17:12.760 --> 0:17:14.320 it in a way that is best for them. 0:17:14.600 --> 0:17:17.160 What do you advise schools to do as they think 0:17:17.200 --> 0:17:20.720 about how to really implement an NIL and take care 0:17:20.720 --> 0:17:22.560 of their student athletes? What are you recommending? Is that 0:17:22.640 --> 0:17:23.720 kind of an overaarching view. 0:17:23.840 --> 0:17:27.000 Yeah, absolutely, it always starts with education, and so early on, 0:17:27.080 --> 0:17:31.080 it's educating the athletes on what NIO is, what it isn't, 0:17:31.359 --> 0:17:34.359 how to build their brand, how social media plays into this, 0:17:34.520 --> 0:17:37.639 how this entire ecosystem works. The second part of that 0:17:37.720 --> 0:17:40.800 is as a department, to really hone in on your strategy, 0:17:41.000 --> 0:17:43.520 how are you going to invest in the resources for 0:17:43.600 --> 0:17:46.119 your athletes to be successful in this space like you 0:17:46.119 --> 0:17:48.320 would in strength and conditioning, like you would in nutrition. 0:17:48.640 --> 0:17:51.000 This is another part of the student and athlete experience 0:17:51.240 --> 0:17:54.480 that as an institution, it's your responsibility to invest in 0:17:54.480 --> 0:17:58.560 in resources so athletes can really optimize their nil while they're. 0:17:58.359 --> 0:17:59.120 On their campus. 0:17:59.280 --> 0:18:01.199 And for some of that athletes, this is their you know, 0:18:01.280 --> 0:18:02.960 this is their time to earn their prime time. 0:18:03.040 --> 0:18:05.720 This isn't their prime time. Some are competing at a. 0:18:05.760 --> 0:18:09.280 National level on TV, and so as an institution, it's like, 0:18:09.359 --> 0:18:13.040 how can we utilize our network, our resources, our institution 0:18:13.160 --> 0:18:16.760 ip to help athletes generate revenue and generate income for themselves. 0:18:16.800 --> 0:18:18.119 Well, because that's why we see a lot of like 0:18:18.840 --> 0:18:22.480 former pro athletes now investing because they they were able 0:18:22.520 --> 0:18:24.240 to take control of their money and they have so 0:18:24.280 --> 0:18:26.399 many stories Like when we talk to a Rod like 0:18:26.440 --> 0:18:28.119 a few months ago, they have so many stories of 0:18:28.160 --> 0:18:30.160 their peers that were you know, given all this money 0:18:30.160 --> 0:18:31.840 in a really short amount of time and your earning 0:18:31.840 --> 0:18:34.280 power so limited when you're so young, and then it's 0:18:34.280 --> 0:18:36.879 like gone, Like it's it's not a sustainable business model. 0:18:36.920 --> 0:18:39.879 Like Paul and I might have, what do you think 0:18:39.920 --> 0:18:42.960 that the media rights world, like as we change from 0:18:43.000 --> 0:18:46.960 traditional TV to streaming all that. How is that impacting 0:18:47.000 --> 0:18:47.880 college sports? 0:18:48.080 --> 0:18:50.480 I think it will continue to evolve, and that's happening 0:18:50.480 --> 0:18:53.200 in college sports at the conference level as the conferences 0:18:53.320 --> 0:18:56.919 really hold the media rights to to the to those 0:18:57.080 --> 0:19:00.080 to those sports in that entertainment space, right, and so 0:19:00.080 --> 0:19:02.400 I think it will continue to evolve. I think it's 0:19:02.400 --> 0:19:04.800 going to continue to be a big money area in 0:19:04.800 --> 0:19:07.080 college athletics is the media rights. 0:19:07.920 --> 0:19:09.960 And I think it's to be determined. 0:19:09.520 --> 0:19:13.480 On what the future structure of FBS football looks like, 0:19:13.600 --> 0:19:16.159 and some in college basketball and those other things that 0:19:16.240 --> 0:19:18.800 really may take form as some of these media contracts 0:19:18.920 --> 0:19:21.800 are coming up from renegotiation in the coming years. 0:19:21.880 --> 0:19:24.879 How about thee We all think about football and basketball 0:19:25.000 --> 0:19:28.720 driving it. How about the nil and the money? Is 0:19:28.760 --> 0:19:31.679 it there for women's sports? Is it there for the 0:19:31.680 --> 0:19:33.720 Olympic sports as you refer to them. Is it Is 0:19:33.760 --> 0:19:36.800 it trickling down to the non football bat basketball team? 0:19:36.880 --> 0:19:37.040 Yeah? 0:19:37.600 --> 0:19:40.560 Yes, with the institutions we work with, we are seeing 0:19:40.680 --> 0:19:43.400 it trickle down now, not at the same level as 0:19:43.520 --> 0:19:47.639 football and men's basketball, but we are seeing athletes in 0:19:47.720 --> 0:19:50.520 Olympic sports, primarily women's sports. We just had a school 0:19:50.520 --> 0:19:53.240 that announced that they had a women's sports sponsorship that 0:19:53.400 --> 0:19:57.720 included nil, right, And so you are seeing more brands. 0:19:58.359 --> 0:20:00.560 And I also believe that women's sport are doing a 0:20:00.600 --> 0:20:03.600 really good job of leveraging their their their personal brands 0:20:03.680 --> 0:20:06.120 and they're really figuring that out earlier, right, And it's 0:20:06.119 --> 0:20:08.760 a time for women's sports right now. So there's definitely 0:20:08.760 --> 0:20:11.159 more attention and support and that is trickling down to 0:20:11.440 --> 0:20:13.720 two women athletes on campuses as well. 0:20:14.000 --> 0:20:17.560 So how does that how does the partnership wind up starting? 0:20:17.640 --> 0:20:19.840 Like is it the athlete taking control and going, like 0:20:19.880 --> 0:20:21.960 you said, the local coffee shop, et cetera, being like, hey, 0:20:21.960 --> 0:20:24.560 here's what I got for you? Or is it you know, 0:20:24.760 --> 0:20:26.359 someone goes to watch a game and they're like that 0:20:26.400 --> 0:20:27.280 athlete's awesome. 0:20:27.320 --> 0:20:28.600 Are they like their personality? 0:20:28.680 --> 0:20:28.760 Like? 0:20:28.760 --> 0:20:31.320 How does that evolve? So it is both. 0:20:31.400 --> 0:20:33.320 So part of it is on the athlete, and athletes 0:20:33.359 --> 0:20:36.640 that do well are are are reaching out the brand means. 0:20:36.680 --> 0:20:39.199 Some of them have representations, some of them have agents 0:20:39.200 --> 0:20:41.919 that are negotiating partnerships with them. And then you have 0:20:42.000 --> 0:20:44.159 the school and you have donors and supporters that have 0:20:44.280 --> 0:20:49.840 created these these businesses, these enterprises called collectives that if 0:20:49.840 --> 0:20:52.040 they have a donor that wants to support that athlete 0:20:52.080 --> 0:20:54.480 or that sport, that donor would give to that collective 0:20:54.520 --> 0:20:56.600 and then they would you know, find opportunities for the 0:20:56.640 --> 0:20:58.399 athlete to get that money. 0:20:58.800 --> 0:21:02.120 And it seems like the collectives I'm seeing it, I'm 0:21:02.119 --> 0:21:04.200 hearing it and reading about it. There's definitely the haves 0:21:04.240 --> 0:21:04.840 and have nots. 0:21:04.960 --> 0:21:05.359 For sure. 0:21:06.240 --> 0:21:09.639 A certain school that I'm familiar with, their collective in 0:21:09.680 --> 0:21:12.800 their first year just dwarfed everybody else and it's it's 0:21:12.840 --> 0:21:15.800 a handful of phone calls. That doesn't feel right. 0:21:16.040 --> 0:21:19.800 Yeah, how does that change? How does that Well, it. 0:21:19.680 --> 0:21:22.520 Goes come directly from the university. Yeah, so you'll take 0:21:22.560 --> 0:21:23.760 out the collective as a mini. 0:21:24.080 --> 0:21:27.920 Yeah, you know, there there are certain things that may 0:21:28.560 --> 0:21:31.640 regulate that collective space a little bit more. But right now, 0:21:31.680 --> 0:21:33.919 you know, as you have the pending House settlement, schools 0:21:33.920 --> 0:21:36.360 will be able to share in that revenue directly with athletes. 0:21:36.840 --> 0:21:39.320 So you still will have collectives in the space, right 0:21:39.359 --> 0:21:42.280 that will have play some role. But long term, you know, 0:21:42.359 --> 0:21:44.479 it's really to be determined on what that looks like, 0:21:44.800 --> 0:21:47.720 as there may be more regulation coming in that space. 0:21:47.960 --> 0:21:51.000 You're absolutely right that change in college sports is just 0:21:51.640 --> 0:21:55.280 meaning so, I mean, it just seems like how how 0:21:55.320 --> 0:21:56.560 these universities are going to deal with it. 0:21:56.680 --> 0:21:58.680 You know, I should have put my daughter in something. 0:21:59.040 --> 0:21:59.800 She was three. 0:22:00.119 --> 0:22:00.439 Darn it. 0:22:00.960 --> 0:22:03.920 Hey, Brittany really appreciated. Thanks very much, Brittany Whiteside, Vice President. 0:22:03.960 --> 0:22:04.200 Thank you. 0:22:04.240 --> 0:22:07.480 Altia's sports partners are really great conversation. 0:22:07.040 --> 0:22:12.360 There, you're listening to the Bloomberg Intelligence Podcast. Catch us 0:22:12.400 --> 0:22:15.800 live weekdays at ten am Eastern on applecard Play and 0:22:15.800 --> 0:22:18.720 Android Auto with the Bloomberg Business App. You can also 0:22:18.800 --> 0:22:21.960 listen live on Amazon Alexa from our flagship New York 0:22:22.040 --> 0:22:25.399 station just Say Alexa playing Bloomberg eleven thirty. 0:22:26.680 --> 0:22:30.320 We are broadcasting live from the Bloomberg Power Players Conference 0:22:30.440 --> 0:22:33.720 at Bloomberg Global Headquarters in Midtown Manhattan, bringing together a 0:22:33.760 --> 0:22:36.760 lot of the smart folks in the business of sports, 0:22:36.800 --> 0:22:39.520 the technology of sports, and the competitiveness and the economics 0:22:39.560 --> 0:22:42.560 of sport. I'll tell you what, in the last three 0:22:42.600 --> 0:22:46.320 or four years, women's sports in terms of popularity, audience 0:22:46.400 --> 0:22:49.240 ratings just I'm not going to say exploded, but really 0:22:49.440 --> 0:22:52.679 had a noticeable surge. In my opinion, thank for example, 0:22:52.720 --> 0:22:55.280 Caitlin Clark with the basketball but I think it all 0:22:55.280 --> 0:22:58.359 started with women's soccer, the success of the US women's 0:22:58.359 --> 0:23:01.360 soccer programs team in the Olympics, in a World Cup 0:23:01.400 --> 0:23:03.359 and all that kind of stuff, and now the National 0:23:03.440 --> 0:23:05.720 Women's Soccer League. Jessica Berman joins us. She is the 0:23:05.760 --> 0:23:08.879 commissioner of the National Women's Soccer League. She joins us 0:23:08.880 --> 0:23:12.040 here at our Bloomberg conference. Jessica, talk to us about 0:23:12.720 --> 0:23:15.760 the state of the National Women's Soccer League here in US. 0:23:15.760 --> 0:23:19.080 It seems like it's just growing dramatically. And I know 0:23:19.119 --> 0:23:21.240 you've got some news about some ownership out on the 0:23:21.280 --> 0:23:23.880 West Coast which really caught my attention being a former 0:23:23.920 --> 0:23:26.239 analyst covering the Walt Disney company. But talk to us 0:23:26.240 --> 0:23:28.159 about the league right now. In women's soccer. 0:23:28.680 --> 0:23:31.760 In the last two and a half years, it is true. 0:23:32.000 --> 0:23:34.880 I think women's sports and the National Women's Soccer League 0:23:34.880 --> 0:23:38.280 in particular, has exploded. We've reached this inflection point where 0:23:38.440 --> 0:23:40.840 it is no longer a question whether investing in women's 0:23:40.840 --> 0:23:44.639 sports is a good business investment. And because of that, 0:23:45.080 --> 0:23:48.200 the money has followed. And we're looking at our ownership 0:23:48.200 --> 0:23:52.560 group across all of our teams, fourteen teams across the country, 0:23:52.720 --> 0:23:57.800 and we have the right capital and strategic investors around 0:23:57.800 --> 0:24:00.520 the table to really build for the future. About our 0:24:01.119 --> 0:24:04.600 recent announcement this morning, Bob Iger and will Obey are 0:24:04.640 --> 0:24:06.360 now the control owners. 0:24:06.400 --> 0:24:08.080 It is a boom, it is a mic drop. 0:24:09.040 --> 0:24:11.360 Are now the controlling owners of Angel City, which are 0:24:11.720 --> 0:24:16.000 the highest enterprise value women's sports team in the world, 0:24:16.840 --> 0:24:20.959 traded for two hundred and fifty million dollars. And you know, 0:24:21.000 --> 0:24:24.800 this is a league that launched twelve years ago. 0:24:25.000 --> 0:24:26.679 Angel City is only. 0:24:26.440 --> 0:24:30.160 Three years old, So jealousy if you put that side 0:24:30.200 --> 0:24:31.879 by side with the men's leagues that have been around 0:24:31.880 --> 0:24:34.560 for decades, some more than one hundred years, it's really 0:24:34.600 --> 0:24:37.199 incredible to see the amount of growth. We also announced 0:24:37.240 --> 0:24:40.000 this morning that Magic Johnson is an investor in the 0:24:40.040 --> 0:24:43.720 Washington Spirit with Michelle Kang. So the type of owners 0:24:43.760 --> 0:24:46.439 who are coming to the table to really invest in 0:24:46.480 --> 0:24:50.080 this is really driven by the future vision of you 0:24:50.320 --> 0:24:52.800 that we really can be the best league in the world, 0:24:52.880 --> 0:24:55.919 and because of the backdrop, as you mentioned of women's soccer, 0:24:56.080 --> 0:24:59.480 it's just an incredible moment to be part of witnessing 0:24:59.520 --> 0:25:00.000 this growth. 0:25:00.080 --> 0:25:02.359 Well, I was going to ask as to the why 0:25:02.480 --> 0:25:04.880 now part of it? Is it because you've. 0:25:04.680 --> 0:25:08.280 Had, you know, super good success with some amazing players 0:25:08.320 --> 0:25:10.760 in the game. I also, as a finance nerd am 0:25:10.760 --> 0:25:12.600 going to go back to like the FED had zero 0:25:12.640 --> 0:25:14.359 interest rates for a really long time. There's a lot 0:25:14.400 --> 0:25:15.680 of money that need to be put to work that 0:25:15.760 --> 0:25:17.359 needed a good return because you couldn't put it in 0:25:17.359 --> 0:25:19.040 the bond market like that kind of stuff. Like what 0:25:19.080 --> 0:25:21.880 are you hearing as to why people with money think 0:25:21.960 --> 0:25:23.240 this is a good investment now? 0:25:23.720 --> 0:25:27.320 I think if you look on a longitudinal basis, particularly 0:25:27.359 --> 0:25:31.600 at men's sports as a parallel over the course of decades, 0:25:31.960 --> 0:25:36.560 it outperforms every other asset class on a long term basis, 0:25:36.600 --> 0:25:41.159 and so you've often seen investors who are long range 0:25:41.280 --> 0:25:44.720 in their thinking around putting capital to work invest in 0:25:44.720 --> 0:25:47.800 sports and see incredible returns. If you look at that 0:25:47.880 --> 0:25:50.760 compared to the product of women's soccer, there really is 0:25:50.760 --> 0:25:54.160 no reason why we should not be as successful as 0:25:54.200 --> 0:25:57.200 men's sports, particularly in a sport that has the backdrop 0:25:57.400 --> 0:26:02.720 of when you think of success and soccer in the US, 0:26:02.800 --> 0:26:06.399 you actually think of women first, and that really creates 0:26:06.400 --> 0:26:09.919 a unique value proposition that has really woken up the 0:26:09.920 --> 0:26:12.679 investment community to say, if we look at men's sports 0:26:12.680 --> 0:26:15.440 and the way that they've grown in enterprise value on 0:26:15.480 --> 0:26:18.639 an exponential basis over decades, and we are at the 0:26:18.640 --> 0:26:21.720 inception of our growth. There's very few things in the 0:26:21.720 --> 0:26:24.359 world that you can get in at the ground level. 0:26:24.400 --> 0:26:26.520 I think we're definitely beyond the ground level, but we're 0:26:26.520 --> 0:26:29.520 certainly nowhere near the top of our hockey stick growth. 0:26:30.040 --> 0:26:34.760 Media rights, it's the big driver of global sports valuations globally. 0:26:35.400 --> 0:26:38.320 What's the media strategy for US women's the soccer League. 0:26:38.480 --> 0:26:42.359 Yeah, we signed a landmark media deal and announced it 0:26:42.400 --> 0:26:46.520 in November of twenty twenty three. We got a collective 0:26:46.640 --> 0:26:50.600 quarter of a billion dollars invested into our league from 0:26:50.840 --> 0:26:57.200 the combination of CBS, ESPN, Amazon and Script's Ion. And 0:26:57.480 --> 0:27:01.120 in addition to that incredible investment in our league, which 0:27:01.160 --> 0:27:03.960 allow us to put those resources to work to grow 0:27:04.000 --> 0:27:07.680 the league, we've also made the very important strategic decision 0:27:07.720 --> 0:27:10.439 to also invest in ourselves and ensure that our games 0:27:10.440 --> 0:27:14.840 are viewable and discoverable on platforms that are national in 0:27:14.960 --> 0:27:18.680 scope and scale. And so from last year to this year, 0:27:18.720 --> 0:27:22.600 we went from six games being available on national broadcast 0:27:22.720 --> 0:27:24.359 to over one hundred and twenty. 0:27:24.760 --> 0:27:24.920 God. 0:27:25.000 --> 0:27:27.800 So now when you are sitting on your couch, which 0:27:27.840 --> 0:27:30.760 some people still do, and channel surf, which some people 0:27:30.800 --> 0:27:32.120 still do, you. 0:27:32.280 --> 0:27:33.280 Will find our games. 0:27:33.440 --> 0:27:35.560 And if you were watching the US Open the other night, 0:27:35.640 --> 0:27:38.199 which I was, and there was a promo ad to 0:27:38.240 --> 0:27:41.240 tell everyone that you can watch this weekend on ESPN. 0:27:41.720 --> 0:27:44.320 If you were watching CBS Mornings this morning, you saw 0:27:44.320 --> 0:27:46.600 a promo ad that you can watch the NWSL on 0:27:46.640 --> 0:27:49.800 Saturday on CBS. And so we are in the places 0:27:49.840 --> 0:27:53.040 and spaces where people consume live content, and that will 0:27:53.040 --> 0:27:55.080 help us to catalyze the growth of our audience. 0:27:55.200 --> 0:27:58.199 So I don't have cable, So what about streaming? Like, 0:27:58.200 --> 0:27:59.640 how can I find it on my Apple TV? 0:28:00.359 --> 0:28:02.719 Yeah, so all of our CBS games are also on 0:28:02.840 --> 0:28:06.000 Paramount plus. All of our ABC and ESPN games are 0:28:06.080 --> 0:28:09.760 also on ESPN plus all of our games on scripts Ion. 0:28:10.000 --> 0:28:12.520 You can also walk through like a Pluto TV or 0:28:12.600 --> 0:28:16.680 other all their streaming apps that provide access to over 0:28:16.720 --> 0:28:20.720 the air platforms. And obviously Amazon Prime is basically ubiquitous 0:28:21.200 --> 0:28:25.200 with national distribution both streaming and you know anywhere else 0:28:25.200 --> 0:28:26.840 that you would want to watch. 0:28:26.680 --> 0:28:28.880 Jessica, how about talent here at the players? I mean, 0:28:29.240 --> 0:28:31.000 how you could do a whole league with the University 0:28:31.000 --> 0:28:33.520 of North Carolina. That's set such a great program for 0:28:33.920 --> 0:28:35.720 so long, and as a dupe person, I hate to 0:28:35.760 --> 0:28:39.280 admit that, but it's an international game, it's a global game. 0:28:39.640 --> 0:28:41.920 Can international players come here? Because I know that's a 0:28:41.960 --> 0:28:44.680 problem for the men's US Men's League. The US players, 0:28:44.960 --> 0:28:46.720 the great international players don't want to come to the 0:28:46.800 --> 0:28:49.360 US league relative to Europe. What's it like in the 0:28:49.400 --> 0:28:52.040 women's side, Yes, there's that. Well, unless you're at the 0:28:52.120 --> 0:28:53.280 end of your career, you're looking at them. 0:28:53.520 --> 0:28:56.440 Yeah, No, I think that is And I appreciate the 0:28:56.480 --> 0:28:58.040 question because maybe I should have led with that and 0:28:58.120 --> 0:29:00.920 the answer to why now, why invest in the NWSL. 0:29:01.360 --> 0:29:03.880 We are the best league in the world and we 0:29:03.920 --> 0:29:06.040 are at the top of the pyramid as it relates 0:29:06.080 --> 0:29:09.680 to attracting talent, and we have a lot of the 0:29:09.680 --> 0:29:12.280 best players playing here, not just the US one's national team, 0:29:12.480 --> 0:29:15.120 but we look at, for example, the Olympics this summer, 0:29:15.520 --> 0:29:18.760 where we as a league had fifty seven players competing 0:29:19.080 --> 0:29:21.840 for eleven of twelve teams in the Olympics. If you 0:29:21.880 --> 0:29:24.840 looked at the gold medal match, we had the majority 0:29:24.880 --> 0:29:27.680 of the players on the pitch both for Brazil and 0:29:27.720 --> 0:29:29.920 for the US team, we had twenty seven players competing 0:29:29.920 --> 0:29:32.200 between both of those teams, and. 0:29:32.160 --> 0:29:33.640 So we are a global league. 0:29:33.640 --> 0:29:37.600 We've actually recently changed our rules to allow nine players 0:29:37.880 --> 0:29:41.720 on the roster be international players, because we really want 0:29:41.920 --> 0:29:43.640 to be a league that is a destination for the 0:29:43.680 --> 0:29:46.720 top talent in the world, which now is not just 0:29:46.760 --> 0:29:47.320 in the US. 0:29:47.400 --> 0:29:49.120 There there's top talent everywhere. 0:29:49.240 --> 0:29:51.560 This is truly is a global game, and we're excited 0:29:51.600 --> 0:29:53.040 to be a destination for the best players. 0:29:53.120 --> 0:29:54.719 All right, Jessica, thank you so much for joining us. 0:29:54.720 --> 0:29:56.680 Really appreciate it. Jessica Berman. She's a commissioner of the 0:29:56.800 --> 0:30:01.160 National Women's Soccer League. You talk about the gro again 0:30:01.360 --> 0:30:04.960 in my opinion, kind of led by the Women's Soccer 0:30:05.600 --> 0:30:08.040 League and it's just been extraordinary, continues to grow, and 0:30:08.600 --> 0:30:10.840 you know, as a media person, we see the money, 0:30:10.880 --> 0:30:13.040 the rights start to go to a particular sport, that's 0:30:13.080 --> 0:30:15.760 where you know that the growth is and the opportunities, 0:30:15.760 --> 0:30:19.360 and that's certainly the case with the US Women's Soccer League. 0:30:19.840 --> 0:30:23.720 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:30:23.800 --> 0:30:27.320 weekdays at ten am Eastern on applecar Play and Android 0:30:27.360 --> 0:30:30.120 Auto with the Bloomberg Business App. You can also listen 0:30:30.240 --> 0:30:33.360 live on Amazon Alexa from our flagship New York station. 0:30:33.720 --> 0:30:36.480 Just say Alexa playing Bloomberg eleven thirty. 0:30:37.920 --> 0:30:41.040 All right, Happy Thursday, everybody. I'm Alex Steel alongside Paul Sweeney. 0:30:41.080 --> 0:30:44.120 This is Bloomberg Intelligence Radio and we are broadcasting too 0:30:44.200 --> 0:30:47.280 live from our headquarters right here in New York City 0:30:47.320 --> 0:30:51.320 at the Power Players Conference where we're talking about sports, money, media, 0:30:51.720 --> 0:30:55.000 business and the combination between all of those things. And 0:30:55.040 --> 0:30:58.000 we just spoke to the commissioner of the US Women's 0:30:58.560 --> 0:31:00.440 Soccer League. That was quite interesting in terms of the 0:31:00.440 --> 0:31:02.800 big money coming in in terms like you definitely missed 0:31:02.800 --> 0:31:04.959 the bottom, Like there's money already in there, but if 0:31:04.960 --> 0:31:07.840 you get in now, there's just so much more exponential 0:31:07.880 --> 0:31:08.880 growth that you could see. 0:31:09.000 --> 0:31:10.400 Yeah, and big news coming out of you know, the 0:31:10.400 --> 0:31:13.200 second biggest market in the country, Los Angeles. Bob Iger, 0:31:13.280 --> 0:31:15.640 the chairman CEO of Walt Disney Company, and his wife 0:31:15.680 --> 0:31:18.080 will Obey buying a controlling stake or I think a 0:31:18.120 --> 0:31:20.960 full stick, a complete steak of the Los Angeles franchise. 0:31:21.000 --> 0:31:23.760 So yeah, that is a huge vote of confidence. 0:31:23.960 --> 0:31:25.680 All right, Well, we just talked to the commissioner so 0:31:25.760 --> 0:31:27.000 let's talk to someone who actually. 0:31:26.760 --> 0:31:27.080 Kicks the ball. 0:31:27.160 --> 0:31:28.400 Right, Oh okay, because I think. 0:31:28.240 --> 0:31:29.400 That that's probably a great idea. 0:31:29.760 --> 0:31:32.480 Joining us now is Midge Purse is forward New Jersey, 0:31:32.560 --> 0:31:37.080 New York Gotham FC. She alsos United States women's national 0:31:37.160 --> 0:31:40.400 soccer team. Wow, okay, this is really awesome. Thank you 0:31:40.440 --> 0:31:41.400 so much for joining us. 0:31:41.480 --> 0:31:42.680 Oh no, thank you for having me. 0:31:42.880 --> 0:31:46.560 So can I ask a really dumb soccer question. This 0:31:46.760 --> 0:31:48.719 seems to me to be the hardest sport to play 0:31:48.920 --> 0:31:52.320 because everyone is running all the time. Like it's not 0:31:52.360 --> 0:31:53.720 like when you're in football and you kind of stay 0:31:53.760 --> 0:31:56.840 in a range or like tennis, it's a small area, Like. 0:31:56.800 --> 0:32:00.360 How do you do it? While our coaches make us 0:32:00.440 --> 0:32:02.440 run a lot, right all the time? 0:32:02.840 --> 0:32:03.840 Yes, all the time. 0:32:03.880 --> 0:32:06.400 But I actually what I think is makes it the 0:32:06.400 --> 0:32:09.360 hardest sport is that any other athlete who tries to 0:32:09.360 --> 0:32:12.840 play soccer looks extremely unathletic. Where you can kind of 0:32:12.840 --> 0:32:15.800 fake it if you're playing football or basketball or even 0:32:15.880 --> 0:32:18.400 running track, but you look really anathletic playing soccer unless 0:32:18.440 --> 0:32:18.800 you know it. 0:32:19.080 --> 0:32:19.960 I think that's a good point. 0:32:20.000 --> 0:32:21.840 Mitch, talk to us. We were talking to your commissioner 0:32:21.880 --> 0:32:24.360 about the state of the sport in the league and everything. 0:32:24.360 --> 0:32:25.720 I don't want to talk to you about what it's 0:32:25.760 --> 0:32:28.000 like on the field. Talk to us about the competition, 0:32:28.320 --> 0:32:31.480 the level of competition, where the players come from. What's 0:32:31.520 --> 0:32:33.560 the level of competition on the field. Now you played 0:32:33.560 --> 0:32:36.480 your college soccer at Harvard. What's it like for that 0:32:36.560 --> 0:32:37.320 jump to the pros? 0:32:37.720 --> 0:32:41.200 Oh, the jump is getting bigger and bigger. I think 0:32:41.200 --> 0:32:44.160 the gap between the collegiate game and the professional game 0:32:44.200 --> 0:32:46.920 has only grown over the past couple of years. I 0:32:46.920 --> 0:32:48.920 think when I was coming from college and going to 0:32:48.960 --> 0:32:50.680 pro that jump wasn't as big for me. 0:32:50.760 --> 0:32:52.440 I had a good time my rookie year. 0:32:53.160 --> 0:32:56.560 But now you see people not struggling more, but really 0:32:56.600 --> 0:32:59.720 having to take a little bit more time to get 0:32:59.800 --> 0:33:03.240 to that level and meshin with the rest of the players. 0:33:03.640 --> 0:33:05.880 Do you feel like if I say women's soccer is 0:33:05.920 --> 0:33:08.760 finally having its moment, is it actually finally having its 0:33:08.760 --> 0:33:10.400 moment that's durable in here to day. 0:33:11.360 --> 0:33:12.960 I don't know if I can subscribe to that. 0:33:13.120 --> 0:33:13.920 And I'll tell you why. 0:33:14.560 --> 0:33:17.240 It's because every four years we have the Olympics and 0:33:17.280 --> 0:33:19.520 we have the World Cup, and everyone gets really really 0:33:19.560 --> 0:33:24.160 excited about women's soccer and then it usually dissipates at 0:33:24.160 --> 0:33:26.920 some point. I do think women's sports in general are 0:33:27.000 --> 0:33:29.680 having an incredible moment. I mean you can see it 0:33:29.720 --> 0:33:32.120 with the WNBA, you can see it with like rugby 0:33:32.160 --> 0:33:36.160 and track. I'm with you, I believe in it, but 0:33:36.200 --> 0:33:38.720 I want to wait to see it before I subscribe. 0:33:38.800 --> 0:33:41.040 You've been on the national teams, the US national teams 0:33:41.040 --> 0:33:44.880 for years, so you've seen the global competition and how 0:33:45.200 --> 0:33:47.960 but the US team is, in my opinion, I don't 0:33:47.960 --> 0:33:50.200 know that. I'm not that into it the best team 0:33:50.400 --> 0:33:52.720 for a long time globally in terms of looking at 0:33:52.720 --> 0:33:54.600 the World Cups and so on. Talk to us about 0:33:54.600 --> 0:33:56.840 the growth of soccer internationally outside the US. What are 0:33:56.880 --> 0:33:58.960 you seeing in terms of competitiveness, because I know there 0:33:59.000 --> 0:34:01.600 are a lot of international players in the US league. 0:34:01.760 --> 0:34:04.040 Oh absolutely, And I mean I think you can see 0:34:04.040 --> 0:34:06.040 it even with the last World Cup we had. We 0:34:06.480 --> 0:34:09.880 won this Olympic gold, which is absolutely fantastic, and I 0:34:10.000 --> 0:34:12.440 think anyone who watched the games could see that they 0:34:12.440 --> 0:34:16.200 were difficult games. It wasn't six zero, wasn't five zero, 0:34:16.239 --> 0:34:19.279 wasn't three zero. A couple of Germany games where we 0:34:19.280 --> 0:34:23.320 were in our favor, But in general, it's the competition 0:34:23.440 --> 0:34:27.080 is leveling out, and you know, the global stage is 0:34:27.120 --> 0:34:29.520 getting a lot more Even so, I think even seeing 0:34:29.520 --> 0:34:31.279 a lot of those players come over to our league 0:34:31.320 --> 0:34:33.520 and increase the competitiveness that we have here at home, 0:34:34.040 --> 0:34:37.680 it's really amazing to see the progression of women's sports globally. 0:34:38.560 --> 0:34:40.480 What do you think of the way what do you 0:34:40.480 --> 0:34:42.680 think of the how to monetize that? Like as a player? 0:34:43.000 --> 0:34:46.160 Like we talked to the commissioner, We talked to a 0:34:46.200 --> 0:34:49.840 partner that sort of helps collegiate athletes monetize themselves and 0:34:49.920 --> 0:34:51.839 understand how to do that and works with them, work 0:34:51.920 --> 0:34:52.600 with colleges. 0:34:52.800 --> 0:34:55.040 Do you think this is all being done the right way? 0:34:55.880 --> 0:34:58.000 No, this is great. 0:34:58.040 --> 0:34:59.319 This is why I want to talk to someone who 0:34:59.320 --> 0:35:02.320 actually does this. In short, No, I don't. 0:35:02.400 --> 0:35:05.279 I think that we're still behind in terms of the 0:35:05.320 --> 0:35:10.520 industry approach on how we support players, help players, and 0:35:10.560 --> 0:35:13.200 promote players. I think one of the biggest issues I've 0:35:13.200 --> 0:35:16.160 had with women's sports in general is that the landscape 0:35:16.160 --> 0:35:18.400 for how we market women's sports has always been extremely 0:35:18.440 --> 0:35:20.920 derivative with the landscape of how we market men's sports. 0:35:20.920 --> 0:35:24.719 And shocking, yeah, they say shrink it and pink it 0:35:24.880 --> 0:35:27.279 is something that Michelle King likes to say, and I'll 0:35:27.320 --> 0:35:30.080 take that from her. But it's not even just derivative 0:35:30.120 --> 0:35:32.719 of the men's game, but we're derivative of the European 0:35:33.400 --> 0:35:37.440 format as well. And you know, the American population, this demographic, 0:35:37.440 --> 0:35:39.480 it's a different audience that you need to cater to, 0:35:39.640 --> 0:35:41.399 and I think we need to be just a little 0:35:41.440 --> 0:35:43.160 bit more specific industry wide. 0:35:43.000 --> 0:35:43.640 With how we do that. 0:35:44.719 --> 0:35:46.759 How do you expect the growth of the league to 0:35:46.800 --> 0:35:48.520 be over the next several years, to expect it to 0:35:48.520 --> 0:35:51.600 get more competitive, maybe more teams. What do the players 0:35:51.600 --> 0:35:52.040 feel like? 0:35:52.320 --> 0:35:55.000 Oh, I don't think anything's going to stop this league, 0:35:55.040 --> 0:35:58.200 to be completely honest, I think we will be huge 0:35:58.239 --> 0:35:59.480 competitors with the MLS. 0:36:00.120 --> 0:36:01.880 Do see a lot more teams coming in. 0:36:02.080 --> 0:36:04.799 I think more international players will want to come play here, 0:36:04.840 --> 0:36:06.319 and I think it's going to be even harder to 0:36:06.320 --> 0:36:07.360 play here domestically. 0:36:07.920 --> 0:36:10.640 Right, What about like, do you think we're gonna have 0:36:10.719 --> 0:36:13.359 like competitions not like the Olympics or whatever World Cup 0:36:13.360 --> 0:36:16.160 where like you can play more internationally and make it 0:36:16.200 --> 0:36:18.000 not just like a US soccer sport. 0:36:18.640 --> 0:36:20.840 Absolutely, I think, I mean we already have a CONCACAF 0:36:20.960 --> 0:36:23.080 tournament happening right now. My team plays tonight. Good luck 0:36:23.120 --> 0:36:25.200 at the MFC. You guys are going to be fantassic, 0:36:25.680 --> 0:36:27.960 and we have the Club World Cup that's happening. So 0:36:28.239 --> 0:36:32.000 it's definitely we are integrating with other leagues and making 0:36:32.040 --> 0:36:34.640 that global community for women's soccer. 0:36:35.200 --> 0:36:37.200 All right, Mitch, that's great. Really appreciate getting a few 0:36:37.200 --> 0:36:39.600 midges minutes of your time. Mitch Purse forward for the 0:36:39.719 --> 0:36:43.000 nj NY Gotham Football Club and also the United States 0:36:43.040 --> 0:36:47.240 women's national soccer team. She played at collegiate soccer at Harvard. 0:36:47.480 --> 0:36:49.839 Talk about the growth of this, the women's professional league 0:36:49.840 --> 0:36:53.279 here in the US certainly, as Midge was suggesting, kind 0:36:53.280 --> 0:36:55.319 of hitting an inflection point, and that's consistent with what 0:36:55.320 --> 0:36:58.040 we've seen from women's sports just over the last three 0:36:58.120 --> 0:36:59.520 or four years. And again I kind of just go 0:36:59.600 --> 0:37:02.759 back to the WNBA, which they're playing their season right 0:37:02.760 --> 0:37:05.319 now in Kaitlyn Clark and Angel Reese. That just kind 0:37:05.360 --> 0:37:08.480 of really taken over the zeitgeist and so women's sports 0:37:08.520 --> 0:37:10.480 big time here and that's certainly a focus at this 0:37:10.640 --> 0:37:11.279 conference here. 0:37:11.400 --> 0:37:16.400 Yes, sir ee, you're listening to the Bloomberg Intelligence podcast. 0:37:16.680 --> 0:37:20.000 Catch us Live weekdays at ten am Eastern on Apple. 0:37:19.760 --> 0:37:22.759 Car Play and Android Auto with the Bloomberg Business Act. 0:37:22.920 --> 0:37:25.759 You can also listen live on Amazon Alexa from our 0:37:25.800 --> 0:37:32.360 flagship New York station, Just Say Alexa playing Bloomberg eleven thirty. 0:37:31.719 --> 0:37:35.040 Alex Steele, Paul Sweeney, We're live here at the Bloomberg 0:37:35.080 --> 0:37:37.919 Power Players Conference at the Bloomberg A Global Headquarters, seven 0:37:37.960 --> 0:37:40.839 to thirty one Lexington Avenue, fifty eighth Street. Man, You've 0:37:40.840 --> 0:37:42.680 got a lot of smart people running around here, a 0:37:42.719 --> 0:37:46.080 lot of interesting conversation about the world of global sport. 0:37:46.160 --> 0:37:48.399 This one you don't want to miss. David Rubenstein joins 0:37:48.480 --> 0:37:50.840 us here. He is a co founder and co chairman 0:37:50.880 --> 0:37:53.640 of the Carlisle Group and owner of the Baltimore Orioles 0:37:54.120 --> 0:37:57.440 as well as Cal Ripkin Junior, talking about those O's 0:37:57.800 --> 0:38:01.400 Baseball Hall of Famer, founder and partner of Ripkin Baseball. Gentlemen, 0:38:01.400 --> 0:38:02.880 thanks so much for joining us here. We got a 0:38:02.880 --> 0:38:05.800 lot of sports people running around. We're talking about women's basketball, 0:38:05.840 --> 0:38:08.240 women's soccer. Let's talk a little bit of Major League baseball. 0:38:08.600 --> 0:38:10.520 You guys are up a game in the win, Colm 0:38:10.600 --> 0:38:12.839 on my Yankees. It's going to be a great last 0:38:12.880 --> 0:38:14.959 few weeks. Of the Year. David, I want to start 0:38:15.000 --> 0:38:18.160 with you here. You own the Orioles. Here, What are 0:38:18.160 --> 0:38:20.279 you doing? Why are you buying a sports franchise? 0:38:21.080 --> 0:38:23.400 Well, in this case, I grew up in Baltimore and 0:38:23.440 --> 0:38:25.279 I wanted to give back to Baltimore a bit, and 0:38:25.320 --> 0:38:29.279 I thought the team could maybe use rejuvenation in some way. 0:38:29.320 --> 0:38:32.279 And it's part of rebirth of Baltimore. Baltimore is trying 0:38:32.320 --> 0:38:34.360 to rebuild itself in many ways from some of the 0:38:34.400 --> 0:38:36.960 struggles it's had. I thought a new ownership group would 0:38:36.960 --> 0:38:39.040 probably be helpful, so I did it for that reason. 0:38:39.120 --> 0:38:40.840 And obviously I hope to make money as well for 0:38:41.000 --> 0:38:44.000 myself and my investors, but it's more of a philanthropic 0:38:44.040 --> 0:38:45.719 thing on my part than anything else. 0:38:45.880 --> 0:38:50.440 And Alex, he's got a few partners there, including mister Bloomberg, 0:38:50.480 --> 0:38:53.239 who owns this radio program. Ah, how about that? 0:38:53.760 --> 0:38:54.279 How about that? 0:38:54.560 --> 0:38:57.480 Secular forces exactly all comes back together. Cal talked to 0:38:57.560 --> 0:39:01.080 us about the Orioles. Boy, man, I'm so I'm looking 0:39:01.120 --> 0:39:03.840 at them every day. Man, they look good. Tell us 0:39:03.880 --> 0:39:05.600 about this team. 0:39:04.800 --> 0:39:08.359 It's an exciting young team to watch, talent all over 0:39:08.400 --> 0:39:10.719 the place. We've had little problems with injuries and our 0:39:10.760 --> 0:39:14.160 pitching staff. But when you have a deeper minor league system, 0:39:14.600 --> 0:39:17.360 sometimes when somebody gets hurt, you can it's an opportunity 0:39:17.360 --> 0:39:20.759 for someone else. So they're playing really well. And it's 0:39:20.800 --> 0:39:23.680 interesting when many owners come in to buy a team, 0:39:24.080 --> 0:39:25.840 the thing they have to fix is what's happening on 0:39:25.880 --> 0:39:29.080 the field. In our particular case, that's the best part 0:39:29.080 --> 0:39:32.480 about the investment is that Michaelias has done a really 0:39:32.480 --> 0:39:37.279 good job of creating an environment of culture that knows 0:39:37.320 --> 0:39:39.040 how to win, knows how to play, and he's put 0:39:39.080 --> 0:39:41.480 talent in the system. So the good part is you 0:39:41.520 --> 0:39:43.919 just take your hands off of and say just keep 0:39:43.960 --> 0:39:47.640 going and hopefully the luck factor with David will in 0:39:47.680 --> 0:39:49.279 the very first year will take that all the way 0:39:49.320 --> 0:39:50.120 to the World Series. 0:39:50.320 --> 0:39:51.480 That's a really dumb question. 0:39:51.760 --> 0:39:54.920 Yes, why is investing in sports like a good business? 0:39:55.320 --> 0:39:56.840 And I say that because at some point we're going 0:39:56.880 --> 0:39:58.960 to reach the top, right, Like, there's so much money 0:39:58.960 --> 0:39:59.319 coming in. 0:39:59.360 --> 0:40:02.319 How do you know, Well, over the last ten or 0:40:02.360 --> 0:40:04.919 fifteen years, it's been very difficult for somebody to buy 0:40:04.920 --> 0:40:10.000 a major league professional sport operation and lose money. People 0:40:10.000 --> 0:40:12.600 have made staggering sums. Now, of course that tends to 0:40:12.680 --> 0:40:15.359 tract more money, and as you suggest, at some point 0:40:15.440 --> 0:40:18.279 there's always a peak. But right now the interest in 0:40:18.840 --> 0:40:23.960 sports is so dynamic that the live television despite your 0:40:24.040 --> 0:40:26.200 view in my view that live television should focus on 0:40:26.239 --> 0:40:30.359 interview shows, actually it focuses on live sports, and live 0:40:30.400 --> 0:40:33.360 sports is what's keeping television alive really. So if you 0:40:33.400 --> 0:40:35.239 take a look at the NFL, for example, I think 0:40:35.239 --> 0:40:40.080 of the the fifty most watched television shows last year, 0:40:40.320 --> 0:40:45.200 forty five of them were NFL games. And now baseball 0:40:45.200 --> 0:40:47.000 sees a lot of people as a lot of people 0:40:47.040 --> 0:40:49.640 watching as well, so there's a view that the population 0:40:49.719 --> 0:40:52.719 increases and as other things seem to be less attractive, 0:40:52.880 --> 0:40:55.719 sports is still very, very attractive, and so the TV 0:40:55.840 --> 0:40:58.440 contracts are going up and as a result, for example, 0:40:58.480 --> 0:41:02.680 the NBA just negotiated seventy seven billion dollars worth of contracts. 0:41:02.920 --> 0:41:05.439 It's expected in two years that the NFL will top 0:41:05.480 --> 0:41:08.719 that number. So that's what it is driving. And also 0:41:08.760 --> 0:41:11.840 it's a global phenomenon that people now are buying sports 0:41:11.880 --> 0:41:14.880 teams not only in their own country, but everywhere in 0:41:14.920 --> 0:41:17.400 the world, and so it's really not just the US phenomenon. 0:41:17.719 --> 0:41:20.239 So can I have a simple all you have to 0:41:20.239 --> 0:41:22.640 do is to look at the health of sports, is 0:41:22.680 --> 0:41:24.959 to look at the salaries of the players. Yeah, and 0:41:25.000 --> 0:41:27.160 I guess I'd become one of those players saying, man, 0:41:27.200 --> 0:41:28.239 I wish i'd played in. 0:41:28.120 --> 0:41:32.960 This era always goes up. I mean, I'm like everybody else. 0:41:33.000 --> 0:41:35.479 It's got a top out somewhere, yet it just keeps 0:41:35.520 --> 0:41:38.960 going higher. Cal how is the game on the field changed? 0:41:39.280 --> 0:41:42.799 The kids today that you watch at Canbin Yards still, 0:41:42.840 --> 0:41:44.560 by the way, I would argue one of the best 0:41:44.600 --> 0:41:47.319 parks in Major League Baseball twenty five years on. But 0:41:47.760 --> 0:41:50.160 how's the game changed today versus women? You played well? 0:41:50.200 --> 0:41:52.759 I mean the analytics have taken over and all the 0:41:52.840 --> 0:41:55.400 data and all the information. And I was an analytical 0:41:55.440 --> 0:41:58.160 player and I took the data from but there was 0:41:58.200 --> 0:41:59.719 no way that I was getting all the sort of 0:41:59.800 --> 0:42:02.200 data that you can get now. And the trick is, 0:42:02.560 --> 0:42:05.600 and this is the fun part about learning the game 0:42:05.680 --> 0:42:08.840 hasn't changed much because the diamonds the same, the bases 0:42:08.840 --> 0:42:10.840 are the same, the mounds the same, The game is 0:42:10.880 --> 0:42:13.840 played the same way. But with all this influx of 0:42:13.920 --> 0:42:17.080 new data, teams feel that they have an advantage when 0:42:17.120 --> 0:42:19.360 they extract some of the data and then use that 0:42:19.440 --> 0:42:21.680 to help them play in the game. But the secret 0:42:21.760 --> 0:42:23.360 is how do you give the data to a player 0:42:23.400 --> 0:42:25.680 to make him a better player. And that's the part 0:42:25.719 --> 0:42:30.120 that I'm having fun with is learning what the data affects. 0:42:30.160 --> 0:42:32.919 The philosophy of how you play the game, and that's 0:42:33.000 --> 0:42:37.120 changed and positioning on the field. You know, different old 0:42:37.120 --> 0:42:39.439 philosophies have kind of gone out the window because they've 0:42:39.440 --> 0:42:42.319 been proven not to be effective. So it's interesting to 0:42:42.320 --> 0:42:44.200 watch the game from that perspective. But it is all 0:42:44.239 --> 0:42:47.279 about the data. The numbers they track everything that moves 0:42:47.320 --> 0:42:47.839 on that field. 0:42:48.000 --> 0:42:51.160 It's amazing and that's AI. That's big data coming into 0:42:51.200 --> 0:42:53.160 sports and ouse. I'm sure you know this, but I mean, 0:42:53.200 --> 0:42:56.040 just cal has he has a little record out there. 0:42:56.080 --> 0:42:57.480 He played a lot of games in a row. He 0:42:57.520 --> 0:43:01.840 never took a day off. That is something that just 0:43:02.640 --> 0:43:03.920 it'll never be broken down. 0:43:04.200 --> 0:43:06.680 I wish I was wearing probes or something that could 0:43:06.680 --> 0:43:08.439 figure out how I could do that, because I'm asking 0:43:08.480 --> 0:43:09.719 all the time, how in the world you play all 0:43:09.760 --> 0:43:11.359 those games in a row, and I don't know. 0:43:11.520 --> 0:43:14.440 Well, I guess my question would be with the analytics, 0:43:14.600 --> 0:43:17.239 that's never going to happen again, not even close. 0:43:17.080 --> 0:43:19.759 Well, I think they're predicting now, at least in a 0:43:19.800 --> 0:43:23.080 medical sort of way, when that you might be inclined 0:43:23.080 --> 0:43:25.160 to have an injury, you know, And so if they 0:43:25.160 --> 0:43:26.839 start to think that you might have an injury, then 0:43:26.880 --> 0:43:29.880 they put you on the list a little early, the 0:43:29.880 --> 0:43:32.279 injury list a little early, and they're they're looking at 0:43:32.280 --> 0:43:34.200 the long term as the short term. 0:43:34.239 --> 0:43:35.600 But I don't know if that's a good thing or 0:43:35.600 --> 0:43:36.000 a bad thing. 0:43:37.960 --> 0:43:40.040 There's the one thing that's hard to measure is what's 0:43:40.040 --> 0:43:42.360 inside your heart, I mean, your guts and how you 0:43:42.400 --> 0:43:45.160 go out about playing the game, how you compete. That's 0:43:45.280 --> 0:43:48.319 not measurable right now. And I think that's what drove 0:43:48.400 --> 0:43:50.880 me is when you're an everyday player. The definition of 0:43:50.920 --> 0:43:53.920 an everyday player when I played was every day. I 0:43:53.960 --> 0:43:55.520 had the body type in which to do it. I 0:43:56.200 --> 0:44:00.160 healed really well, and I could play through pain. And 0:44:00.200 --> 0:44:02.359 when you find out that you can play through being 0:44:02.440 --> 0:44:04.600 less than one hundred percent, because I would argue that 0:44:05.160 --> 0:44:07.359 even if you play one hundred and forty games, you're 0:44:07.400 --> 0:44:09.480 still playing at less than one hundred percent. Maybe the 0:44:09.480 --> 0:44:11.120 only time you're one hundred percent is the first day 0:44:11.160 --> 0:44:13.800 of spring training, right and then you end up moving 0:44:14.080 --> 0:44:17.759 towards the year. So that's the hard part where that's 0:44:17.800 --> 0:44:18.560 not measurable. 0:44:18.640 --> 0:44:18.879 Yep. 0:44:19.280 --> 0:44:21.919 And I like to see players that push through and 0:44:21.960 --> 0:44:23.719 force themselves to play every game to. 0:44:23.719 --> 0:44:27.560 See too that you don't see that too much anymore, Hey, David, 0:44:27.600 --> 0:44:29.919 And aside from the Orioles, you've got a day job 0:44:29.920 --> 0:44:32.920 here co founder, co chairman of the Carlisle Group. Perfect 0:44:32.920 --> 0:44:35.280 time to ask you this question. I know you bought 0:44:35.600 --> 0:44:38.359 the Orioles as an individual's part of a partnership. Right 0:44:38.440 --> 0:44:41.680 now private equity. The NFL has allowed private equity crime 0:44:41.760 --> 0:44:43.960 in as part ownership. What do you think about that? 0:44:44.480 --> 0:44:46.680 Well, Carlisle is one of the groups that's permitted, so 0:44:47.880 --> 0:44:50.839 for it. Yes, I think that it was inevitable because 0:44:50.880 --> 0:44:52.759 the prices of NFL teams are going up so much 0:44:52.800 --> 0:44:55.920 that it's very difficult to find somebody by himself or 0:44:55.960 --> 0:44:58.359 herself who can buy a team anymore longer. The last 0:44:58.360 --> 0:45:00.520 team that was sold they can, Washington Commander went for 0:45:00.560 --> 0:45:03.360 six billion dollars. It's a large an amount of money. 0:45:03.719 --> 0:45:05.719 Very few people can buy that by themselves. You need 0:45:05.760 --> 0:45:08.440 to have consortium of people to do this, and private 0:45:08.440 --> 0:45:11.080 equity is a big pot of capital. Sitting there. But 0:45:11.120 --> 0:45:13.480 the deals are ones where you have to be ten 0:45:13.520 --> 0:45:16.840 percent no involvement in the day to day management, and 0:45:16.880 --> 0:45:18.799 you have to hold for at least six years. So 0:45:19.680 --> 0:45:21.440 NFL's experimenting. We'll see how it goes. 0:45:21.920 --> 0:45:25.359 So Kel, you have had minor league investments, but this 0:45:25.400 --> 0:45:26.960 is the first time that both of you have had 0:45:27.320 --> 0:45:28.320 major league investments. 0:45:28.360 --> 0:45:30.440 How did this come about? Like how did the partnership 0:45:30.440 --> 0:45:30.920 come about? 0:45:31.200 --> 0:45:33.760 Haws it going well. 0:45:33.880 --> 0:45:36.439 The owner of the team for the last thirty years 0:45:36.480 --> 0:45:39.319 was the Angelo's family. I had talked to them over 0:45:39.400 --> 0:45:43.600 last summer about a possible sale and it came to be. 0:45:43.880 --> 0:45:46.520 But I wanted to have people in the consortium that 0:45:46.880 --> 0:45:50.200 were more connected to Baltimore and baseball than maybe I was, 0:45:50.239 --> 0:45:52.359 because I have grown up in Baltimore, but I haven't 0:45:52.360 --> 0:45:54.040 lived there for a while. So I talked to a 0:45:54.120 --> 0:45:57.160 number of people in Baltimore and some of the people 0:45:57.160 --> 0:45:59.520 who are also connected with the Oils, and obviously the 0:45:59.560 --> 0:46:01.399 first call was a cal Ripken. They said he would 0:46:01.440 --> 0:46:03.319 like to invest and also help us in other ways 0:46:03.360 --> 0:46:05.440 what she's doing. So I think it's worked out quite 0:46:05.480 --> 0:46:09.000 well and win win for Baltimore and for for that. 0:46:09.040 --> 0:46:10.600 Was like a no brainer for you. 0:46:10.880 --> 0:46:14.160 Yeah, absolutely, absolutely no brainer. I felt like I've been 0:46:14.200 --> 0:46:16.080 an Oriole through and through my whole life. I mean, 0:46:16.120 --> 0:46:18.400 I grew up in and around the Baltimore area. My 0:46:18.480 --> 0:46:21.759 dad was in, uh with the Orioles in the first 0:46:21.800 --> 0:46:23.920 fourteen years of my life. He was a minor league manager. 0:46:24.360 --> 0:46:25.840 And then you have a dream you'd be a player, 0:46:25.840 --> 0:46:27.359 You get drafted by the team you want to get 0:46:27.440 --> 0:46:30.600 drafted by, you play your whole career with that team. 0:46:30.680 --> 0:46:33.560 So I know that I went off for a little while, 0:46:33.560 --> 0:46:36.319 and uh, you know, you buy minor league teams, you 0:46:36.400 --> 0:46:39.239 learn about business in other ways. You put your head down. 0:46:39.280 --> 0:46:42.440 You don't pay much attention to what's happening at the Oriols. 0:46:42.840 --> 0:46:45.160 But when David called, it was an opportunity to get 0:46:45.200 --> 0:46:48.279 back in to look at it from the inside looking out, 0:46:48.680 --> 0:46:51.759 and I'm I'm really surprised that I'm way into it now. 0:46:51.800 --> 0:46:54.560 I used to think the whole world revolved around baseball, 0:46:54.800 --> 0:46:56.360 and then you get out and you realize it doesn't. 0:46:56.719 --> 0:46:58.799 But then now it seems like the world revolves around 0:46:58.800 --> 0:46:59.399 baseball again. 0:46:59.520 --> 0:47:01.480 Of course, not to put it in context for those 0:47:01.480 --> 0:47:05.759 who don't know the record, lou Garrick played in thirty 0:47:05.840 --> 0:47:09.200 consecutive games. People thought that was the unbreakable record. Cal 0:47:09.239 --> 0:47:13.080 Ripkin did six hundred and thirty two games over seventeen years, 0:47:13.360 --> 0:47:16.920 not missing one day. And all of us who worked 0:47:16.960 --> 0:47:19.120 day to day for living in non athletic things. Can 0:47:19.160 --> 0:47:21.360 you imagine going to work seventeen days in or seventeen 0:47:21.440 --> 0:47:23.040 years in a row without missing totally? 0:47:23.760 --> 0:47:27.080 Exactly, Cal, What do you think the Oils need to 0:47:27.160 --> 0:47:29.439 work on over the next couple of years? Here again, 0:47:29.440 --> 0:47:32.680 I'm looking at the record. Your record is great. What 0:47:32.719 --> 0:47:33.799 do you think they need to work on? Is it 0:47:33.840 --> 0:47:35.439 minor league? Is it No? 0:47:35.440 --> 0:47:38.720 No, We have a minor league that's stocked with talent 0:47:38.800 --> 0:47:42.320 and you can only I mean, if you developed three 0:47:42.360 --> 0:47:44.520 shortstops in the minor leagues, you can only play one 0:47:44.560 --> 0:47:44.759 of them. 0:47:44.880 --> 0:47:45.080 Yep. 0:47:45.160 --> 0:47:46.960 So many times the talent that you have in the 0:47:47.040 --> 0:47:50.000 minor leagues is used to trade to get to get 0:47:50.040 --> 0:47:52.040 the pieces that you need at the big league level. 0:47:52.239 --> 0:47:54.520 And the Ools are in good position for that. They 0:47:54.520 --> 0:47:57.400 have young players that are going to be superstars, that 0:47:57.440 --> 0:48:00.120 are already superstars, and maybe the biggest challenge in the 0:48:00.200 --> 0:48:01.480 future is how do you keep them? 0:48:01.600 --> 0:48:05.640 Yeah? Yeah, exactly, I mean, no salary cap here, so 0:48:06.440 --> 0:48:07.520 tough to keep the star players. 0:48:07.560 --> 0:48:07.719 Right. 0:48:08.040 --> 0:48:12.440 Yes, Unlike football or basketball, there's no salary cap in 0:48:12.680 --> 0:48:15.560 professional baseball, so you can get contracts at ores high 0:48:15.560 --> 0:48:18.200 ast seven hundred million dollars, and so it's hard for 0:48:18.239 --> 0:48:20.800 smaller cities to compete in that domain. 0:48:20.880 --> 0:48:21.240 Somewhat. 0:48:21.320 --> 0:48:22.920 All right, we have to see how that plays. Really. 0:48:22.960 --> 0:48:25.759 Appreciate you too, gentlemen. Stopping by David Rubinstein. He's a 0:48:25.760 --> 0:48:28.719 co founder and co chairman of the Carlisle Group. He's 0:48:28.760 --> 0:48:31.399 now the owner of the Baltimore Oils and cal Ripken 0:48:31.480 --> 0:48:34.000 Junior d cal Riton Junior Baseball Hall of Famer, founder 0:48:34.040 --> 0:48:36.839 and partner of Ripken Baseball. Appreciate you too, general. Taking 0:48:36.960 --> 0:48:38.640 a couple of minutes, you're trying to stop by here 0:48:38.719 --> 0:48:41.200 at our Bloomberg Sports Power Conference. 0:48:42.760 --> 0:48:46.640 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:48:46.719 --> 0:48:50.240 weekdays at ten am Eastern on applecar Play and Android 0:48:50.239 --> 0:48:53.040 Auto with the Bloomberg Business App. You can also listen 0:48:53.160 --> 0:48:56.239 live on Amazon Alexa from our flagship New York station, 0:48:56.600 --> 0:48:59.719 Just Say Alexa playing Bloomberg eleven thirty. 0:49:01.239 --> 0:49:03.640 Alex Deel, Paul Sweeney. We were broadcasting live from the 0:49:03.680 --> 0:49:07.040 Bloomberg Power Players Conference here at the Bloomberg Global headquarters 0:49:07.080 --> 0:49:12.080 in Midtown Manhattan. Let's switch gears to the NASCAR, the 0:49:12.080 --> 0:49:14.680 business of NASCAR. I have a lot of experience with NASCAR. 0:49:14.680 --> 0:49:17.120 We took some of those track owners public back in 0:49:17.160 --> 0:49:20.080 the early nineties, and I got to really understand the business, 0:49:20.320 --> 0:49:23.160 the sport and the heritage of NASCAR Racing is just 0:49:23.280 --> 0:49:26.160 extraordinary education. There, Steve Phelps joins us. He's a president 0:49:26.520 --> 0:49:28.799 of NASCAR. Steve, thanks so much for joining us here. 0:49:29.360 --> 0:49:31.600 You know, I got to know NASCAR in the early 0:49:31.640 --> 0:49:33.600 nineties when I think it was really on an ascendency 0:49:33.640 --> 0:49:36.160 in terms of television ratings and then attendance, and it 0:49:36.200 --> 0:49:38.000 was just crazy and it rad that it rode that 0:49:38.040 --> 0:49:40.160 way for a while. Then it kind of crested. Where 0:49:40.200 --> 0:49:43.759 are we now with NASCAR in the global sports scene here? 0:49:44.000 --> 0:49:44.280 Sure? 0:49:44.440 --> 0:49:48.279 Well, I think you're exactly right, Paul, So had this. 0:49:48.960 --> 0:49:51.800 I would say until two thousand and nine, the growth 0:49:51.840 --> 0:49:55.440 of the sport just continued. You know, the recession hit, 0:49:55.640 --> 0:50:00.399 and I think sponsorship started to go away because not 0:50:00.440 --> 0:50:02.960 necessarily the sport, just because of where things were with 0:50:03.040 --> 0:50:07.560 the economy. And then we had a slow, steady decline. 0:50:07.640 --> 0:50:09.920 If We're going to be completely honest until twenty eighteen. 0:50:10.239 --> 0:50:13.919 But since twenty nineteen, attendance is up, ratings are up. 0:50:14.360 --> 0:50:17.640 We did a almost a one point one billion dollar 0:50:17.680 --> 0:50:20.799 per year media deal last year for seven years, so 0:50:21.040 --> 0:50:22.440 almost eight billion dollars. 0:50:23.680 --> 0:50:25.600 And so I'm very. 0:50:25.480 --> 0:50:28.839 Bullish on where the sport is today, but importantly where 0:50:28.880 --> 0:50:29.279 it's going. 0:50:29.840 --> 0:50:31.400 Where do you think it's going to go? Like, has 0:50:31.440 --> 0:50:32.920 it broad an appeal? How do you get someone like 0:50:32.920 --> 0:50:33.480 me to watch it? 0:50:33.560 --> 0:50:33.840 Sure? 0:50:33.960 --> 0:50:37.000 I think you know it? Yeah, that's a and there's 0:50:37.040 --> 0:50:39.280 the trick, right, so's. 0:50:38.680 --> 0:50:40.920 Like me just I don't know. I don't do sports 0:50:40.920 --> 0:50:43.160 at all. I like the Olympics, I like the US Open. 0:50:43.280 --> 0:50:45.440 So I think you know, we're trying to appeal to 0:50:45.560 --> 0:50:48.800 both obviously our existing audience and serve that audience and 0:50:48.840 --> 0:50:51.319 then bring a new audience in. We're doing that through 0:50:51.320 --> 0:50:53.439 a number of different things. So for example, we did 0:50:53.680 --> 0:50:57.600 a Netflix show earlier in the year, and that audience 0:50:57.640 --> 0:50:59.920 for US has been more female, it has been young, 0:51:01.800 --> 0:51:04.239 and I think if you look overall in NASCAR in 0:51:04.239 --> 0:51:07.000 the last three years, our growth has come from women, 0:51:08.040 --> 0:51:10.600 people of color, and younger people. 0:51:10.760 --> 0:51:14.160 And so it's working. But we've got to continue to 0:51:14.239 --> 0:51:14.560 do that. 0:51:15.080 --> 0:51:18.520 The key for me is what content opportunities we have 0:51:19.120 --> 0:51:21.920 that will capture you Alex right, and what are the 0:51:21.960 --> 0:51:24.839 storylines we have that will capture you? And I think 0:51:24.840 --> 0:51:28.160 that's important because and it's I think people think of 0:51:28.200 --> 0:51:31.080 it in a way that is not right, which is 0:51:31.400 --> 0:51:34.560 you're either going to serve yours existing fans or you're 0:51:34.560 --> 0:51:37.000 going to go after new fans. I don't think that's true. 0:51:37.120 --> 0:51:41.160 It's an and it's not an or. These fans, the 0:51:41.200 --> 0:51:43.640 existing fans, they want great racing, they want great storylines, 0:51:43.640 --> 0:51:45.799 they want their drivers to win, they want to see 0:51:45.800 --> 0:51:46.600 exciting racing. 0:51:48.080 --> 0:51:50.680 These people want the same thing. It's how do you 0:51:51.080 --> 0:51:52.160 how do you capture them? 0:51:52.239 --> 0:51:52.399 Right? 0:51:52.480 --> 0:51:54.879 And so I don't think that two things are all 0:51:54.920 --> 0:51:57.920 that different. It's just where we investing our money. So 0:51:57.960 --> 0:52:00.279 for example, we just built a sixty million dollar our 0:52:00.640 --> 0:52:03.560 productions facility ran outside of Charlotte next to our R 0:52:03.600 --> 0:52:06.960 and D facility, and it's really two components to it. 0:52:06.960 --> 0:52:08.520 It's live event production. 0:52:09.080 --> 0:52:11.400 So how are we going to put our own events 0:52:11.480 --> 0:52:15.680 on for our five media partners going forward in twenty five? 0:52:16.280 --> 0:52:20.040 And then how do we create a you know, creative 0:52:20.120 --> 0:52:23.920 content and really compelling content either be distributed through our 0:52:23.960 --> 0:52:28.239 own channels of distribution or someone else's. So and we've 0:52:28.239 --> 0:52:31.239 got you know, the three new media partners as part 0:52:31.280 --> 0:52:33.400 of it. So Fox and NBC came back, who are 0:52:33.480 --> 0:52:37.400 existing partners, but we had an Amazon, Warner Brothers, Discovery 0:52:37.880 --> 0:52:41.160 and the CW and the CW is for our second series, 0:52:41.160 --> 0:52:44.520 which is called the Xfinity Series. So five media partners, 0:52:45.120 --> 0:52:47.560 five opportunities for us to have, you know, kind of 0:52:47.600 --> 0:52:49.439 a megaphone of where things are going. 0:52:49.560 --> 0:52:52.600 It used to be alex you know, Ford Cars, Chevy 0:52:52.680 --> 0:52:54.600 Cars in the race. If you went on Sunday, you 0:52:54.680 --> 0:52:57.520 sell on Monday. That's how important it was. Talk to 0:52:57.560 --> 0:53:00.479 us about the economics of just the teams out there. 0:53:00.520 --> 0:53:02.640 How many teams are there? Do they make money? 0:53:02.800 --> 0:53:03.000 Sure? 0:53:03.080 --> 0:53:03.840 How does that work? 0:53:04.360 --> 0:53:06.840 So I would look at it in three kind of 0:53:06.880 --> 0:53:10.040 three buckets, right, So we have three national series. The 0:53:10.080 --> 0:53:12.080 one that most people think about is our Cup series, 0:53:12.120 --> 0:53:16.840 which is our top series. So we're coming to a close, 0:53:16.880 --> 0:53:20.480 I think, you know, pretty quickly on something called charter extensions. 0:53:20.480 --> 0:53:23.640 So I would think of it as franchise light, so 0:53:23.680 --> 0:53:26.680 it's not franchise, but it creates enterprise value for our 0:53:26.719 --> 0:53:29.759 race teams, and so we're in the final throws of 0:53:29.800 --> 0:53:35.239 getting those extended. Right now, race teams, if you probably 0:53:35.320 --> 0:53:39.880 are collectively losing money. So in the charter agreement that 0:53:39.920 --> 0:53:42.040 we have, based on our media deals and some other 0:53:42.120 --> 0:53:44.480 things that we're doing, we're going to provide the race 0:53:44.480 --> 0:53:48.600 teams with more revenue, so two pieces of revenue, guaranteed 0:53:48.640 --> 0:53:50.319 revenue and then what they race for. 0:53:51.360 --> 0:53:53.239 And so to me, starting in. 0:53:53.200 --> 0:53:57.360 Twenty twenty five, we should have cash flow positive race teams, 0:53:57.360 --> 0:53:59.960 which is what we want. And I've heard lots of 0:54:00.440 --> 0:54:02.239 fans say, well, I don't really care about that. My 0:54:02.280 --> 0:54:05.400 whole point is bankru Yeah, that's exactly Well, not only that, 0:54:05.440 --> 0:54:08.520 but it creates more compelling racing, right, and that's what 0:54:08.560 --> 0:54:08.879 we want. 0:54:08.880 --> 0:54:12.280 We have competitive racing. So we have of our twenty six. 0:54:12.160 --> 0:54:17.520 Races, we've had this year, fifteen different winners, nine different 0:54:17.640 --> 0:54:21.480 organizations of the fifteen charter organizations that we have. 0:54:21.600 --> 0:54:24.960 So it's it, and the racing is terrific. 0:54:25.320 --> 0:54:27.800 It's just it's the best style of racing I believe 0:54:27.840 --> 0:54:30.600 on the planet, and I think our race fans are 0:54:30.600 --> 0:54:34.480 telling us that. So again, ratings are up despite significant 0:54:34.560 --> 0:54:38.000 rain issues we've had all year, long raining. So Daytona 0:54:38.000 --> 0:54:40.520 five hundred were down twenty seven percent because we raced 0:54:40.520 --> 0:54:44.320 on Monday. YEP, Coke six hundred rain event down fifteen percent. 0:54:44.440 --> 0:54:48.120 We had a race in the streets of Chicago rain again, 0:54:48.360 --> 0:54:52.400 down fifteen percent. So there are three largest rated events 0:54:52.400 --> 0:54:55.759 of the year, all down double digit and yet we're 0:54:55.760 --> 0:54:57.279 still positive right of rating. 0:54:57.360 --> 0:54:58.440 So it's it's. 0:54:58.239 --> 0:55:02.279 Working just real quick. Any new markets go about thirty 0:55:02.280 --> 0:55:03.000 seconds left? 0:55:03.680 --> 0:55:06.359 Sure, yeah, so yeah, so I think so we're going 0:55:06.400 --> 0:55:08.440 to race next year for the first time outside of 0:55:08.440 --> 0:55:11.160 our borders in the Cup Series in Mexico City. Okay, 0:55:11.200 --> 0:55:13.200 So we have some other discussions that are going so 0:55:13.239 --> 0:55:16.840 we're again we're excited about the broadening of our sport. 0:55:17.080 --> 0:55:20.920 YEP. Absolutely. I like Charlotte Motor Speedway, like Richmond, and 0:55:20.960 --> 0:55:23.560 I like Bristol, the smallest track, but it's just people 0:55:23.600 --> 0:55:27.400 down there are nuts for racing. It's kind of like Bristol, Tennessee, Bristol, Virginia, 0:55:27.640 --> 0:55:30.600 Span Toosday. It's really cool anyway. Steve Phillipstone joined US 0:55:30.360 --> 0:55:34.719 President of NASCAR here at the Bloomberg Sports Conference here 0:55:34.760 --> 0:55:37.080 in New York City talking to us about the business 0:55:37.200 --> 0:55:38.879 of NASCAR Racing car. 0:55:40.200 --> 0:55:44.080 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:55:44.160 --> 0:55:47.200 weekdays at ten am Eastern on Apple Car Play and 0:55:47.200 --> 0:55:50.120 Android Auto with the Bloomberg Business app. You can also 0:55:50.200 --> 0:55:53.680 listen live on Amazon Alexa from our flagship New York station, 0:55:54.080 --> 0:55:57.560 Just Say Alexa playing Bloomberg eleven thirty. 0:55:58.160 --> 0:56:00.160 All right, Alex Seal, Paul Sweeney, your life here in 0:56:00.200 --> 0:56:02.839 the sixth floor of the Bloomberg Headquarters. We're here for 0:56:02.880 --> 0:56:06.359 the Bloomberg power players here at are headquarters. Let's talk 0:56:06.360 --> 0:56:09.720 a little hoops here Team USA Basketball. I'm gonna introduce 0:56:09.760 --> 0:56:12.920 my second favorite duke player of all time, Grant Hill. 0:56:13.520 --> 0:56:17.080 Just phenomenal. Of course, Bobby Hurley, his point guard back 0:56:17.080 --> 0:56:20.560 in the day, is my number one choice from Jersey City. Grant, 0:56:20.560 --> 0:56:24.919 thanks so much for joining us here Team USA. I mean, 0:56:25.480 --> 0:56:27.359 you guys are hitting it. I mean, talk to us 0:56:27.360 --> 0:56:29.799 about the status of Team USA. I mean, you know, 0:56:29.840 --> 0:56:32.680 obviously Coach k stepped it back, A new regime kind 0:56:32.680 --> 0:56:35.279 of came in. You're there just about Team USA. Both 0:56:35.400 --> 0:56:36.680 men and women are just wow. 0:56:37.040 --> 0:56:39.000 Well, well, first of all, Bobby Hurley was my favorite 0:56:39.080 --> 0:56:41.080 dup player of all time because he passed the ball 0:56:41.160 --> 0:56:46.239 to me right, Bobby was great. No, It's an exciting time. 0:56:46.400 --> 0:56:51.839 And obviously I succeeded Jerry Colangelo, who along with coach 0:56:51.880 --> 0:56:55.400 K had an incredible run together starting in two thousand 0:56:55.400 --> 0:56:58.759 and six, and I came in during this sort of 0:56:58.800 --> 0:57:02.880 Olympic quad. We had our World Cup last summer. We 0:57:02.880 --> 0:57:05.240 didn't fare as well in the World Cup. The women 0:57:05.280 --> 0:57:08.080 won the gold medal in their World Cup, but the 0:57:08.120 --> 0:57:12.960 Olympics were absolutely incredible and both teams were pushed, they 0:57:13.000 --> 0:57:17.240 were tested. Uh, there was just excellence on the court 0:57:17.800 --> 0:57:20.320 all over the world. We saw Serbia and our semi 0:57:20.360 --> 0:57:23.000 final games, they were so worthy and deserving of winning. 0:57:23.040 --> 0:57:28.480 Came up short. Yeah, but it was It was just phenomenal. 0:57:28.520 --> 0:57:30.480 I mean the fact that we had, we got tested, 0:57:30.520 --> 0:57:33.280 we got pushed, We had to show some fight and 0:57:33.320 --> 0:57:36.800 some toughness collectively, uh, to win that game, but also 0:57:36.840 --> 0:57:39.880 win the gold medal against France. The women's team got 0:57:39.880 --> 0:57:44.000 pushed and a very close tough matchup they had in 0:57:44.040 --> 0:57:46.720 the gold medal game with France as well. So I 0:57:46.760 --> 0:57:48.560 think it was just a win win, not just for 0:57:48.720 --> 0:57:51.840 USA basketball and our continued excellence, there was a win 0:57:51.920 --> 0:57:55.800 win for basketball universally. Like I think all across the globe. 0:57:55.840 --> 0:57:58.600 If you're a fan of the game. Uh, the Olympic 0:57:58.680 --> 0:58:00.640 basketball scene was spectacular. 0:58:01.200 --> 0:58:02.720 And even if you don't know the game or watch 0:58:02.760 --> 0:58:04.760 the game normally, like I was totally into it. 0:58:04.440 --> 0:58:05.480 It was amazing. 0:58:05.520 --> 0:58:09.360 It was really great talking about investing and where do 0:58:09.360 --> 0:58:11.120 you see opportunities. I know that you and your wife 0:58:11.160 --> 0:58:13.760 are also investors in the Orlando Pro women's soccer team, 0:58:13.800 --> 0:58:15.919 and we were talking about that over the last couple 0:58:15.960 --> 0:58:18.520 hours as well as to where the opportunity set is 0:58:18.560 --> 0:58:20.200 sort of where women's soccer is going to go. 0:58:21.720 --> 0:58:24.160 You know, Look, so I have two daughters who are 0:58:24.240 --> 0:58:28.120 who are jocks, who are athletes, and and so yes, 0:58:28.640 --> 0:58:33.080 and you know, I think sort of through them really 0:58:33.120 --> 0:58:36.440 getting exposed to women's sports and really wanting them to 0:58:36.520 --> 0:58:40.200 see women professional athletes. So, whether it was the WNBA 0:58:40.920 --> 0:58:44.320 or the NWSL. We live in Orlando, we were fans 0:58:44.440 --> 0:58:48.280 and consumers at first, and we got so caught into 0:58:48.320 --> 0:58:51.000 it and just loving it and having a passion for 0:58:51.080 --> 0:58:54.720 these teams. We also saw the potential and the upside 0:58:54.760 --> 0:58:58.160 for growth and u and so the opportunity to invest 0:58:58.200 --> 0:59:01.200 in the NWSL, the Orlando Pride in first place right now, 0:59:02.160 --> 0:59:04.480 we have not lost the game, had a few ties 0:59:04.520 --> 0:59:08.720 and all wins. But I just feel the momentum is 0:59:08.960 --> 0:59:13.280 really growing. And now you have superior leadership. Jessica Berman 0:59:13.400 --> 0:59:19.200 is a fantastic commissioner, has great vision, can execute that vision, 0:59:19.600 --> 0:59:24.000 has surrounded herself with a solid team. But also we 0:59:24.080 --> 0:59:27.800 have professional ownership. Now, we have owners now who own 0:59:27.840 --> 0:59:30.680 other sports, who've been in this, who understand it, see 0:59:30.680 --> 0:59:34.760 the long term trajectory of the business, and so I 0:59:34.800 --> 0:59:37.280 wouldn't say we're at an inflection point right now, but 0:59:37.400 --> 0:59:42.560 I think we have long term positioned ourselves nicely for 0:59:43.320 --> 0:59:45.440 great success. And I think of all the sports leagues, 0:59:45.440 --> 0:59:47.720 I really believe this. I think the NWSL has the 0:59:47.720 --> 0:59:51.560 greatest subside. So really excited. I was excited to see 0:59:51.640 --> 0:59:54.640 Jessica and Midge person one of the stars in the league, 0:59:55.240 --> 0:59:58.480 and yeah, we're thrilled to be involved. 0:59:58.960 --> 1:00:01.960 Where do you see basketball is a global sport. We 1:00:02.000 --> 1:00:04.920 saw it on on at Paris. I mean, the limits 1:00:04.960 --> 1:00:08.400 all over, great competitiveness. How does the NBA, you know, 1:00:08.720 --> 1:00:10.400 how do you think then they taps into that? I 1:00:10.400 --> 1:00:13.400 mean there's so many international players playing in the NBA now, 1:00:13.800 --> 1:00:15.880 but what do you think they should be doing there well. 1:00:15.920 --> 1:00:17.840 The game has become a global sport. You figured out 1:00:17.840 --> 1:00:20.680 the ninety two Dream Team and sort of what they did, 1:00:20.720 --> 1:00:25.520 they inspired a world a whole, multiple generations of basketball players. 1:00:25.560 --> 1:00:29.000 Now that the NBA is thirty percent international, Wow, And 1:00:29.040 --> 1:00:30.560 you know, I can go all over the world and 1:00:30.600 --> 1:00:35.000 people recognize me and they identify me with the NBA brand. 1:00:35.440 --> 1:00:38.600 The NBA is a global marketing and public relations firm. 1:00:38.840 --> 1:00:41.680 The players, you know, they may come in, they may leave, 1:00:42.040 --> 1:00:44.760 they may you know, replenishes itself, but the ability to 1:00:45.120 --> 1:00:48.320 market and promote is what they've mastered and done a 1:00:48.360 --> 1:00:51.080 great job of that in the last thirty two years 1:00:51.440 --> 1:00:54.400 since the Dream Team. I think though, where we can 1:00:54.600 --> 1:00:58.040 you know, can continue to improve. Obviously domestically with our development, 1:00:58.360 --> 1:01:03.240 I think national basketball community has kind of caught us 1:01:03.280 --> 1:01:05.880 or maybe even surpassed us in some ways with how 1:01:05.880 --> 1:01:09.520 they develop young talent. I also see expansion not just 1:01:09.640 --> 1:01:13.120 here and possibly Las Vegas or Seattle, but I you know, 1:01:13.160 --> 1:01:16.000 talk about going over to Europe, talk about partnering with 1:01:16.040 --> 1:01:20.640 the EuroLeague. I'm an investor in NBA Africa and the 1:01:20.680 --> 1:01:24.400 opportunity there and the potential as a lot of the 1:01:24.480 --> 1:01:27.040 nations in that kind on that continent are still developing, 1:01:27.120 --> 1:01:31.120 but they consume the game. And uh and so the 1:01:31.480 --> 1:01:34.200 league is is is doing a number of efforts, a 1:01:34.280 --> 1:01:38.720 number a number of initiatives and just sees the continued 1:01:38.800 --> 1:01:42.040 sort of growth opportunities that their global media markets. 1:01:42.120 --> 1:01:42.720 Yep, you know. 1:01:42.880 --> 1:01:46.360 And the game is is isn't a good place and 1:01:46.440 --> 1:01:50.000 I think has even greater potential as we move forward. 1:01:50.680 --> 1:01:52.960 Ten seconds. How good is this Cooper flag kid? 1:01:54.040 --> 1:01:55.920 He's really good. He I brought him in on the 1:01:55.960 --> 1:01:59.080 select team to prepare with the prepares for the Olympic team, 1:01:59.120 --> 1:02:01.280 and he played very well, had a really good day. 1:02:01.840 --> 1:02:03.280 You know, he might have been one of the top 1:02:03.280 --> 1:02:05.760 five players. I might embellish a bit, but he might 1:02:05.800 --> 1:02:07.200 have been one of the top five players on the 1:02:07.240 --> 1:02:10.840 court that one day. And so big expectations for my 1:02:10.920 --> 1:02:12.160 Blue Devils this year. 1:02:12.000 --> 1:02:14.320 With zachfi exactly right, all right, Grant, thanks so much 1:02:14.360 --> 1:02:16.520 for joining us. Grant Hill, he's a managing director of 1:02:16.600 --> 1:02:19.080 USA Basketball. He's a co owner of the Atlanta Hawk's 1:02:19.120 --> 1:02:21.800 life from the Bloomberg Power Players. He's here at our 1:02:21.800 --> 1:02:25.200 Bloomberg Global headquarters along with the letter other sports folks. 1:02:25.200 --> 1:02:28.560 So it's business, it's technology, it's sport, it's entertainment, it's 1:02:28.600 --> 1:02:29.280 only intersecting. 1:02:29.520 --> 1:02:33.120 I'm so impressed with your ability to have this muscle. 1:02:33.160 --> 1:02:33.320 Here. 1:02:34.920 --> 1:02:39.400 This is the Bloomberg Intelligence Podcast, available on apples, Spotify, 1:02:39.600 --> 1:02:42.520 and anywhere else you will get your podcasts. Listen live 1:02:42.600 --> 1:02:46.200 each weekday, ten am to noon Eastern on Bloomberg dot com, 1:02:46.320 --> 1:02:49.720 the iHeartRadio app, tune In, and the Bloomberg Business app. 1:02:49.800 --> 1:02:52.960 You can also watch us live every weekday on YouTube 1:02:53.040 --> 1:02:54.920 and always on the Bloomberg terminal