1 00:00:02,440 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:07,720 --> 00:00:11,600 Speaker 2: This is Bloomberg Business of Sports. Business of Sports can 3 00:00:11,640 --> 00:00:14,200 Speaker 2: be intimidating for hard for a start break into. 4 00:00:14,320 --> 00:00:17,279 Speaker 3: We really appreciate when our owners are actually there, you know, 5 00:00:17,360 --> 00:00:18,439 Speaker 3: with us through the journey. 6 00:00:18,480 --> 00:00:21,959 Speaker 4: Teams ours especially have been very intentional to diversify at 7 00:00:22,000 --> 00:00:22,960 Speaker 4: all levels of the company. 8 00:00:23,120 --> 00:00:25,160 Speaker 5: I think we're in the golden years for the NFL 9 00:00:25,400 --> 00:00:29,360 Speaker 5: and college football. Our demographic reach has continued to explode. 10 00:00:29,480 --> 00:00:33,080 Speaker 5: This is going to be really unlocking the streaming platform 11 00:00:33,159 --> 00:00:34,080 Speaker 5: for sports fans. 12 00:00:34,200 --> 00:00:36,760 Speaker 2: Sports evaluations are rising. We'll see when they peak. You 13 00:00:36,760 --> 00:00:39,400 Speaker 2: don't have to be the best in your sports to 14 00:00:39,440 --> 00:00:42,200 Speaker 2: make a whole ton of money. 15 00:00:42,240 --> 00:00:45,480 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 16 00:00:46,400 --> 00:00:49,839 Speaker 2: Hello, this is the Bloomberg Business of Sports show. But 17 00:00:49,960 --> 00:00:52,880 Speaker 2: we explore the big money issues in the world of sports. 18 00:00:53,040 --> 00:00:55,640 Speaker 2: Michael Barr and I'm Damian sas Hour Scarlett. We'll be 19 00:00:55,680 --> 00:00:58,320 Speaker 2: back next week. Coming up on the show, we talk 20 00:00:58,800 --> 00:01:02,800 Speaker 2: a lot of hockey with the NHL's chief Business and 21 00:01:02,960 --> 00:01:07,520 Speaker 2: Revenue Officer and senior executive vice president, Keith Wucked. 22 00:01:07,880 --> 00:01:11,240 Speaker 5: We put almost twenty three million people into our buildings 23 00:01:11,360 --> 00:01:14,720 Speaker 5: this past year. It's a record for us attendance. I 24 00:01:14,760 --> 00:01:17,319 Speaker 5: mean our sport. Yes, it is the most passionate. We 25 00:01:17,400 --> 00:01:21,520 Speaker 5: have diehard fans and it's always been a great live 26 00:01:21,600 --> 00:01:24,520 Speaker 5: sport and you do see these pact arenas. 27 00:01:24,680 --> 00:01:27,320 Speaker 4: Plus we get ready for this year's Kentucky Derby with 28 00:01:27,480 --> 00:01:30,720 Speaker 4: the CEO of Churchill Downs, Bill Kristamsian. 29 00:01:30,959 --> 00:01:33,760 Speaker 6: The central point of the track when the horses aren't 30 00:01:33,760 --> 00:01:35,959 Speaker 6: on it is the paddock. That's where the horses are 31 00:01:36,000 --> 00:01:39,280 Speaker 6: paraded before the race for everybody to look at. And 32 00:01:39,319 --> 00:01:42,200 Speaker 6: that's the heartbeat. That's what everybody in the track looks 33 00:01:42,240 --> 00:01:45,360 Speaker 6: at and sees and thinks. As as the center point, 34 00:01:45,480 --> 00:01:46,920 Speaker 6: you know, the heartbeat of the facility. 35 00:01:49,840 --> 00:01:53,800 Speaker 2: All that is on the way the Bloomberg Business and sports. 36 00:01:53,800 --> 00:01:56,680 Speaker 2: That was bad. But first, we've been talking a lot 37 00:01:56,760 --> 00:02:00,000 Speaker 2: lately about big stadium moves and the big money involved. 38 00:02:00,640 --> 00:02:03,560 Speaker 2: Here now to talk to us a little about firms 39 00:02:03,800 --> 00:02:07,760 Speaker 2: investing in the live entertainment space and other big money 40 00:02:07,800 --> 00:02:11,440 Speaker 2: investments in sports. We welcome Bobby Sharma. He is the 41 00:02:11,480 --> 00:02:16,400 Speaker 2: founder and managing partner of Bluestone Equity Partners. Bobby, welcome 42 00:02:16,480 --> 00:02:18,200 Speaker 2: to the Bloomberg Business of Sports. 43 00:02:18,480 --> 00:02:19,560 Speaker 7: It's a pleasure to be here. 44 00:02:20,080 --> 00:02:23,560 Speaker 2: So I said to myself self, as I'm looking at 45 00:02:23,800 --> 00:02:27,519 Speaker 2: the business world here and you have a vast amount 46 00:02:27,560 --> 00:02:31,640 Speaker 2: of knowledge about it. Where is it right now that 47 00:02:31,840 --> 00:02:35,959 Speaker 2: you think the investment focus of Bluestone should be when 48 00:02:35,960 --> 00:02:37,680 Speaker 2: it comes to this landscape. 49 00:02:37,720 --> 00:02:41,320 Speaker 7: Well, we're differentiated, I think from a lot of the 50 00:02:41,360 --> 00:02:43,960 Speaker 7: other capital that's being deployed in the space in that 51 00:02:45,200 --> 00:02:48,720 Speaker 7: not only are we will capitalize, but we're employing a 52 00:02:48,840 --> 00:02:53,360 Speaker 7: very specific focus strategy, which is to say, we're growth 53 00:02:53,360 --> 00:02:57,640 Speaker 7: equity investors. So I get question a lot, where do 54 00:02:57,680 --> 00:03:01,360 Speaker 7: you see the opportunities? Well, deploying that kind of a strategy, 55 00:03:01,400 --> 00:03:05,079 Speaker 7: we basically look for good businesses that we can help 56 00:03:05,120 --> 00:03:07,360 Speaker 7: make great. So what I mean by that is our 57 00:03:07,400 --> 00:03:11,280 Speaker 7: starting point is cash really positive. Second hurdle is can 58 00:03:11,320 --> 00:03:13,839 Speaker 7: we add value to it? And the third is can 59 00:03:13,880 --> 00:03:16,480 Speaker 7: we underwrite it to a thirty percent IRR and a 60 00:03:16,520 --> 00:03:20,600 Speaker 7: three times MC return. So we've had the good fortune 61 00:03:20,600 --> 00:03:23,520 Speaker 7: of enjoying tremendous deal flow, both in terms of volume. 62 00:03:23,720 --> 00:03:25,520 Speaker 7: At this point, I think we're over seven hundred deals 63 00:03:25,520 --> 00:03:30,520 Speaker 7: reviewed and quality seventy five percent proprietary, by which I 64 00:03:30,600 --> 00:03:34,920 Speaker 7: mean off market and non competitive bidding processes. So we've 65 00:03:34,920 --> 00:03:37,240 Speaker 7: been able to extract three amazing deals out of that 66 00:03:37,280 --> 00:03:41,240 Speaker 7: and three amazing companies, and we're close to several more. 67 00:03:41,600 --> 00:03:45,960 Speaker 7: But I think maybe the short answer to your question 68 00:03:47,120 --> 00:03:52,280 Speaker 7: is everywhere. I think the entire ecosystem of sport is vibrant. 69 00:03:52,680 --> 00:03:56,720 Speaker 7: It's dynamic. It's also still very closely held a lot 70 00:03:56,720 --> 00:04:00,680 Speaker 7: of it, and it's still and constantly say still. It's 71 00:04:00,680 --> 00:04:04,440 Speaker 7: like it's constantly shifting, like the primary value drivers are shifting, 72 00:04:05,080 --> 00:04:09,440 Speaker 7: the culture underlying the businesses shift. Obviously, the technologies continue 73 00:04:09,440 --> 00:04:12,880 Speaker 7: to evolve, and sometimes revenue streams are cut off by 74 00:04:12,920 --> 00:04:16,120 Speaker 7: such things. Sometimes they're created by such things. So all 75 00:04:16,120 --> 00:04:19,680 Speaker 7: in all, where we consider ourselves asset type agnostic and 76 00:04:19,720 --> 00:04:23,839 Speaker 7: sector agnostic, we just look for good companies with great 77 00:04:24,400 --> 00:04:27,080 Speaker 7: leaders that we can work together with as partners and grow. 78 00:04:27,480 --> 00:04:30,080 Speaker 4: So Bobby, I got to ask it, and for our audience. 79 00:04:30,120 --> 00:04:32,719 Speaker 4: Bobby used to be general counsel of the NBA Developmental League. 80 00:04:32,760 --> 00:04:36,320 Speaker 4: He's a former executive IMG. You know, he's been involved 81 00:04:36,360 --> 00:04:38,400 Speaker 4: in the game for many, many years. And you know, 82 00:04:38,600 --> 00:04:40,920 Speaker 4: I'm looking at your portfolio of companies and it seems 83 00:04:40,920 --> 00:04:42,240 Speaker 4: to be you know, look, I mean a lot of 84 00:04:42,240 --> 00:04:45,640 Speaker 4: it is you know, content, the experience. It's a lot 85 00:04:45,640 --> 00:04:48,840 Speaker 4: of technology. And you know, I like the NBA. I've 86 00:04:48,880 --> 00:04:50,880 Speaker 4: been watching the NBA playoffs and I'm watching some of 87 00:04:50,880 --> 00:04:52,880 Speaker 4: these calls that the officials are making, and I'm wondering 88 00:04:52,920 --> 00:04:58,320 Speaker 4: to myself, when is technology gonna help these officials make 89 00:04:58,360 --> 00:04:59,960 Speaker 4: the call they need to make at the end of game. 90 00:05:00,120 --> 00:05:01,080 Speaker 2: I mean, I'm a mixed fan. 91 00:05:01,240 --> 00:05:03,039 Speaker 4: I'm a Knicks fan, and I I mean, we're not 92 00:05:03,120 --> 00:05:05,320 Speaker 4: crying here, Bobby, but I'm just kidding. Just talk to 93 00:05:05,400 --> 00:05:07,040 Speaker 4: us a little bit about the role of technology in 94 00:05:07,080 --> 00:05:09,880 Speaker 4: sports today. You know, the type of investments that you're seeing, 95 00:05:09,880 --> 00:05:11,200 Speaker 4: the type of pipeline that's out there. 96 00:05:11,360 --> 00:05:14,760 Speaker 7: Yeah, I think you know, technology is interlaced in all 97 00:05:14,880 --> 00:05:17,719 Speaker 7: all three of the investments that we've we've made so far. 98 00:05:17,839 --> 00:05:20,640 Speaker 7: But but to your specific point as a fan, there 99 00:05:20,640 --> 00:05:24,040 Speaker 7: are technologies already that we start now taking. You know, 100 00:05:24,080 --> 00:05:28,039 Speaker 7: for granted is just normal course of business. But the 101 00:05:28,080 --> 00:05:31,159 Speaker 7: Hawkeye technology that's used in tennis, like you know, we 102 00:05:31,160 --> 00:05:33,880 Speaker 7: don't rely on human beings for tennis calls generally and 103 00:05:33,920 --> 00:05:37,560 Speaker 7: competitives tennison. I'm on the board of the USTA, so 104 00:05:37,600 --> 00:05:40,400 Speaker 7: that one's especially you know, near and dear to me. 105 00:05:41,200 --> 00:05:45,839 Speaker 7: But also you know, video review and some replay review. 106 00:05:46,200 --> 00:05:48,359 Speaker 7: Major League Baseball, as you may know, is employing a 107 00:05:48,400 --> 00:05:54,360 Speaker 7: technology called balls Strikes. So I think AI driven versions 108 00:05:54,400 --> 00:05:57,800 Speaker 7: of these replay technologies and line judging calls. I think 109 00:05:57,920 --> 00:06:00,800 Speaker 7: I think we're going to have more and more in 110 00:06:00,880 --> 00:06:04,839 Speaker 7: evolution of this of sports and rules and and and 111 00:06:04,920 --> 00:06:09,240 Speaker 7: judgment calling, UH, to get to a place where it's 112 00:06:09,279 --> 00:06:11,320 Speaker 7: just it's just more accurate, right. I think that's that's 113 00:06:11,320 --> 00:06:13,920 Speaker 7: what what the Hawkeye does for tennis. Basketball is just 114 00:06:13,960 --> 00:06:16,560 Speaker 7: the hardest sport, right, Like so another sport near and 115 00:06:16,600 --> 00:06:19,440 Speaker 7: dear to me. I went to Duke for undergrad in 116 00:06:19,480 --> 00:06:21,400 Speaker 7: law school and parks of the basketball team, and as 117 00:06:21,400 --> 00:06:23,480 Speaker 7: you referenced, I worked at the NBA for David cern 118 00:06:23,520 --> 00:06:27,839 Speaker 7: and Adam Silver for a decade And it's just the hardest, 119 00:06:27,920 --> 00:06:31,880 Speaker 7: fastest sport with the most rules to be applied at 120 00:06:31,920 --> 00:06:34,080 Speaker 7: the same time. So in some ways, I think, yeah, 121 00:06:34,080 --> 00:06:36,360 Speaker 7: I think AI is probably going to help drive more 122 00:06:36,400 --> 00:06:39,040 Speaker 7: accuracy in that sense. But the NBA does a tremendous 123 00:06:39,120 --> 00:06:40,400 Speaker 7: job training their officials. 124 00:06:40,480 --> 00:06:40,680 Speaker 2: Yeah. 125 00:06:40,760 --> 00:06:43,080 Speaker 4: No, I mean, I'm it's not past the NBA. I mean, 126 00:06:43,279 --> 00:06:46,239 Speaker 4: those officials the best they could in that type of environment. 127 00:06:46,240 --> 00:06:48,240 Speaker 4: I mean, in MSG, I mean could forget about it. 128 00:06:48,279 --> 00:06:50,760 Speaker 4: I mean they I mean anyway, but I guess. 129 00:06:50,600 --> 00:06:53,240 Speaker 7: If if you if you knew, started to interrupt you, 130 00:06:53,400 --> 00:06:56,720 Speaker 7: but if you knew, like the degree of training that 131 00:06:56,520 --> 00:06:59,880 Speaker 7: the referees at the NBA undergo, Like after every game ever, 132 00:07:00,040 --> 00:07:03,720 Speaker 7: replay is reviewed by the officiating crew to learn like 133 00:07:03,760 --> 00:07:06,080 Speaker 7: what went right, what went wrong? So but absolutely right, 134 00:07:06,080 --> 00:07:09,800 Speaker 7: there's always that human element. And baseball is probably my 135 00:07:09,800 --> 00:07:12,800 Speaker 7: my first love and maybe still biggest love in terms 136 00:07:12,840 --> 00:07:15,480 Speaker 7: of sports. And I kind of like, I like the 137 00:07:15,560 --> 00:07:18,880 Speaker 7: human element. I like the that there's decision making and argument. 138 00:07:19,200 --> 00:07:21,120 Speaker 2: And how wouldn't I say that to Aaron. 139 00:07:20,920 --> 00:07:25,280 Speaker 4: Bo Well you know, well you know he liked about life, 140 00:07:25,320 --> 00:07:28,680 Speaker 4: you know. But well let me know, Bobby, let me 141 00:07:28,680 --> 00:07:31,120 Speaker 4: ask you this. I look at pmy group RWs. You know, 142 00:07:31,160 --> 00:07:33,000 Speaker 4: I mean a lot of what you know I'm seeing here, 143 00:07:33,040 --> 00:07:36,240 Speaker 4: I mean video versus smart video editing, you know, graphic design, 144 00:07:36,320 --> 00:07:39,320 Speaker 4: art throughout, you know, basically data analysis, right, And so 145 00:07:39,520 --> 00:07:41,640 Speaker 4: I mean I mean if you look at pmy group, right, 146 00:07:41,640 --> 00:07:43,800 Speaker 4: I mean a lot of it is surveillance and Wi 147 00:07:43,800 --> 00:07:46,680 Speaker 4: Fi and cyber within you know, the event venue obviously, 148 00:07:46,680 --> 00:07:49,280 Speaker 4: But my my thinking here is how involved are you 149 00:07:49,680 --> 00:07:53,040 Speaker 4: with making sure that the data collection right, the images 150 00:07:53,080 --> 00:07:56,160 Speaker 4: you're taking of strike zones for example, or a tennis 151 00:07:56,160 --> 00:07:59,360 Speaker 4: court for example, are finding its way to an official 152 00:07:59,760 --> 00:08:02,400 Speaker 4: in short order so that they can actually make the 153 00:08:02,520 --> 00:08:05,120 Speaker 4: right call and not really impact the game negatively. Right, 154 00:08:05,160 --> 00:08:07,560 Speaker 4: I mean, is that technology out there? Are you seeing 155 00:08:07,600 --> 00:08:08,760 Speaker 4: anything on that front at all? 156 00:08:09,400 --> 00:08:12,440 Speaker 7: I think there are technologies like that under development. I 157 00:08:12,520 --> 00:08:17,360 Speaker 7: mentioned you several that are post development being utilized on 158 00:08:17,400 --> 00:08:21,600 Speaker 7: a consistent basis. But yeah, in reference to my portfolio companies, 159 00:08:21,600 --> 00:08:26,560 Speaker 7: you said, so pmy is the market leader in terms 160 00:08:26,560 --> 00:08:29,720 Speaker 7: of technology solutions for major events and venues, so not 161 00:08:29,880 --> 00:08:36,240 Speaker 7: so much decision making. Yeah, But even more interestingly, they're 162 00:08:36,360 --> 00:08:40,480 Speaker 7: very illustrative of technology throughout the ecosystem. So they do 163 00:08:40,600 --> 00:08:47,320 Speaker 7: everything from analyzing foot traffic for commercial purposes, security purposes, 164 00:08:48,400 --> 00:08:52,400 Speaker 7: just human inflow outflow purposes. They do everything from the 165 00:08:52,480 --> 00:08:55,640 Speaker 7: video boards to the lighting, making them all connect and 166 00:08:55,720 --> 00:08:59,439 Speaker 7: talk and smart for everything from the US Open and 167 00:08:59,480 --> 00:09:04,440 Speaker 7: wimbled In and the Australian Open to every NBA arena, 168 00:09:04,520 --> 00:09:09,320 Speaker 7: every NFL stadium, Glastonbury Festival, the LA Olympics, Parasalympics, and 169 00:09:09,360 --> 00:09:16,160 Speaker 7: even bigger addressable market opportunities like LAX Airport JFK Airport's refurbishment. 170 00:09:16,600 --> 00:09:19,760 Speaker 7: So technology is kind of and everything in our lives, 171 00:09:20,080 --> 00:09:24,400 Speaker 7: and with respect to sports, it's especially valuable both as 172 00:09:24,440 --> 00:09:27,280 Speaker 7: a commercial matter to help improve the business obviously, always 173 00:09:27,320 --> 00:09:31,480 Speaker 7: as a security matter, and also as a sporting matter. 174 00:09:31,679 --> 00:09:34,960 Speaker 7: I'm the sporting side. Actually, Pmy does have a sporting 175 00:09:35,120 --> 00:09:38,679 Speaker 7: data platform that's been utilized by some of the most 176 00:09:38,679 --> 00:09:43,040 Speaker 7: successful European football clubs, for example, that helps them track 177 00:09:43,360 --> 00:09:49,560 Speaker 7: understand the players, their data that they're constantly creating with 178 00:09:49,600 --> 00:09:52,000 Speaker 7: their play on the field, and how to make better 179 00:09:52,040 --> 00:09:56,440 Speaker 7: decision making in terms of personnel decisions. But yeah, but 180 00:09:56,559 --> 00:09:58,400 Speaker 7: I'll go back to my romantic answer in terms of 181 00:09:58,640 --> 00:10:01,520 Speaker 7: I kind of like a little bit of human decision 182 00:10:01,520 --> 00:10:04,760 Speaker 7: making when it comes to the officiating part of things. 183 00:10:05,240 --> 00:10:10,840 Speaker 2: Thank god, demand for live events is coming back strong 184 00:10:11,320 --> 00:10:17,280 Speaker 2: because COVID just wiped everything. I mean, it's Bobby, if 185 00:10:17,320 --> 00:10:20,480 Speaker 2: you can expand more on this. I still don't think 186 00:10:20,520 --> 00:10:26,680 Speaker 2: people understand what COVID did to the sports industry in general, 187 00:10:26,760 --> 00:10:27,960 Speaker 2: especially for live events. 188 00:10:28,440 --> 00:10:32,439 Speaker 7: Absolutely, yeah, it was. I mean there was an existential 189 00:10:32,440 --> 00:10:36,520 Speaker 7: moment where those of us who focused our careers in 190 00:10:36,520 --> 00:10:40,080 Speaker 7: this industry were concerned that there wouldn't be an industry 191 00:10:40,120 --> 00:10:43,560 Speaker 7: of sport. And I think, you know, my old colleagues 192 00:10:43,600 --> 00:10:47,120 Speaker 7: at the NBA are often market leading and a lot 193 00:10:47,120 --> 00:10:50,520 Speaker 7: of things, and sometimes when things are hardest, I think 194 00:10:50,760 --> 00:10:54,079 Speaker 7: their decision to pause the season when they did is 195 00:10:54,120 --> 00:10:57,720 Speaker 7: the thing that made COVID the real for everybody right 196 00:10:57,760 --> 00:11:01,079 Speaker 7: inside and outside of sport. And then they're figuring out 197 00:11:01,080 --> 00:11:03,199 Speaker 7: a playbook with the bubble, as they did, the show 198 00:11:03,280 --> 00:11:08,199 Speaker 7: must go on in order to provide a safe environment 199 00:11:08,240 --> 00:11:12,800 Speaker 7: in order to deliver that media product, both to meet 200 00:11:12,800 --> 00:11:18,160 Speaker 7: their obligations there but then also to satisfy their consumers 201 00:11:18,600 --> 00:11:21,120 Speaker 7: when we were all stuck at home. I think was 202 00:11:21,320 --> 00:11:25,000 Speaker 7: pretty amazing. But it definitely COVID definitely shifted a lot 203 00:11:25,040 --> 00:11:29,400 Speaker 7: of things in our lives for permanently. But I think, 204 00:11:29,400 --> 00:11:32,400 Speaker 7: if anything, what it showed is the resilience of sports 205 00:11:32,440 --> 00:11:36,280 Speaker 7: media and entertainment as an investible asset class. And that's 206 00:11:36,280 --> 00:11:39,520 Speaker 7: what gave rise to my private equity fund and firm 207 00:11:39,679 --> 00:11:42,280 Speaker 7: and Blue Son Equity Partners. As you as you may know, 208 00:11:42,360 --> 00:11:46,079 Speaker 7: we closed three hundred million dollars a year ago, a 209 00:11:46,120 --> 00:11:49,480 Speaker 7: little more than a year ago, and what gave rise 210 00:11:49,520 --> 00:11:53,040 Speaker 7: to that, and we're entirely institutional backed so pension fund 211 00:11:53,040 --> 00:11:57,840 Speaker 7: capital that that is generally conservative but is looking for 212 00:11:57,920 --> 00:12:02,360 Speaker 7: exposure into this space. Why eye growth for generations at 213 00:12:02,360 --> 00:12:06,600 Speaker 7: this point and also resilience through not just COVID, but 214 00:12:07,400 --> 00:12:11,120 Speaker 7: you know, the dot com bubble, the two thousand and 215 00:12:11,600 --> 00:12:15,080 Speaker 7: two thousand and seven eight financial crisis. One of the 216 00:12:15,120 --> 00:12:18,120 Speaker 7: few asset classes that have shown a resilience and consistent 217 00:12:18,160 --> 00:12:20,439 Speaker 7: growth through all that has been sports media and entertainment. 218 00:12:21,160 --> 00:12:23,840 Speaker 7: In a world of you know, time shifting video on 219 00:12:23,880 --> 00:12:28,720 Speaker 7: demand Netflix watching at the live sports content is still 220 00:12:29,000 --> 00:12:34,559 Speaker 7: king and it's it's really kind of underpinning those valuations 221 00:12:34,600 --> 00:12:37,200 Speaker 7: that you see and the teams and the major sports 222 00:12:37,200 --> 00:12:39,240 Speaker 7: properties that drive viewership at scale. 223 00:12:39,280 --> 00:12:43,520 Speaker 2: Bobby Sharma, Founder and managing partner of Bluestone Equity Partners, 224 00:12:43,880 --> 00:12:47,200 Speaker 2: You are gold, sir. Thank you so much for joining 225 00:12:47,240 --> 00:12:49,200 Speaker 2: us on the Bloomberg Business of Sports. We really do 226 00:12:49,280 --> 00:12:51,720 Speaker 2: appreciate it. I'm next on the show, we turned to 227 00:12:51,880 --> 00:12:55,840 Speaker 2: Big Money in Hockey. You're listening to the Bloomberg Business 228 00:12:55,840 --> 00:13:00,559 Speaker 2: of Sports from Bloomberg Radio. Around We're. 229 00:13:01,480 --> 00:13:05,640 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 230 00:13:06,720 --> 00:13:07,560 Speaker 1: This is the. 231 00:13:07,559 --> 00:13:10,120 Speaker 2: Bloomberg Business of Sports show. But we explore the big 232 00:13:10,120 --> 00:13:13,080 Speaker 2: money issues in the world of sports. I'm Michael Barr 233 00:13:13,280 --> 00:13:17,000 Speaker 2: along with Damian Sasaware Scarlett. We'll be back next week. 234 00:13:17,400 --> 00:13:20,360 Speaker 2: The NHL playoffs are in full swaying. 235 00:13:21,040 --> 00:13:31,559 Speaker 8: Here's any Scots, the Kings captain Hanse Copatar, the overtime 236 00:13:31,640 --> 00:13:36,000 Speaker 8: hero for LA and the king Steel Game two five 237 00:13:36,040 --> 00:13:37,400 Speaker 8: to four final score. 238 00:13:37,640 --> 00:13:39,360 Speaker 2: Here now to take us through the state of the 239 00:13:39,400 --> 00:13:43,800 Speaker 2: sport as we make our way toward crowning a new champion. 240 00:13:44,160 --> 00:13:48,400 Speaker 2: Plus some of the big money headlines. We welcome Keith Walkdel, 241 00:13:48,720 --> 00:13:52,560 Speaker 2: He's chief Business and Revenue Officer and Senior executive vice 242 00:13:52,600 --> 00:13:57,120 Speaker 2: president of Global Partnerships for the NHL, gave welcome to 243 00:13:57,160 --> 00:13:58,760 Speaker 2: the Bloomberg Business of sports. 244 00:13:59,040 --> 00:14:00,719 Speaker 5: Thank you. I like the enthusiasm. 245 00:14:02,240 --> 00:14:05,080 Speaker 2: Well see, I have followed hockey for many years. I'm 246 00:14:05,080 --> 00:14:08,920 Speaker 2: a native Detroit kid Detroit Red Wings, and I could 247 00:14:08,960 --> 00:14:13,199 Speaker 2: also get Channel nine and also see all of the 248 00:14:13,200 --> 00:14:17,480 Speaker 2: Toronto Maple Leafs games and the Canadians. I could see 249 00:14:17,520 --> 00:14:22,280 Speaker 2: it all. And hockey goes back to what way back 250 00:14:22,320 --> 00:14:25,640 Speaker 2: to nineteen seventeen. What wasn't even real life back then. 251 00:14:26,080 --> 00:14:28,040 Speaker 2: It was just you know, you took sand and then 252 00:14:28,080 --> 00:14:31,120 Speaker 2: you made it ice. That's how old this game is. 253 00:14:31,760 --> 00:14:35,600 Speaker 2: Can you take us now to where we've been to 254 00:14:35,800 --> 00:14:37,320 Speaker 2: what the game is like right now? 255 00:14:38,200 --> 00:14:41,240 Speaker 5: I mean, you know, it certainly has changed. I think 256 00:14:41,280 --> 00:14:45,000 Speaker 5: it's changed dramatically, even from you know, the past decade. 257 00:14:45,520 --> 00:14:47,280 Speaker 5: You know, I think it all starts with the game 258 00:14:47,360 --> 00:14:50,800 Speaker 5: on the ice. The level of skill that you see 259 00:14:51,000 --> 00:14:53,880 Speaker 5: night in night out from these players all over the 260 00:14:53,920 --> 00:14:57,480 Speaker 5: world to me is, you know, proves these are the 261 00:14:57,520 --> 00:15:02,280 Speaker 5: best athletes in all of sport. Every night. They defy logic, 262 00:15:02,360 --> 00:15:06,160 Speaker 5: they really do. How they're able to skate as fast 263 00:15:06,160 --> 00:15:10,200 Speaker 5: as they do shoot, and the speed of the game 264 00:15:10,360 --> 00:15:13,240 Speaker 5: is just never been better. And the results on the 265 00:15:13,280 --> 00:15:16,960 Speaker 5: ice obviously and the success that we've had and kind 266 00:15:17,000 --> 00:15:20,760 Speaker 5: of that change to the game really has led to 267 00:15:21,120 --> 00:15:24,560 Speaker 5: increased fandom as well as growth in the business. So 268 00:15:24,960 --> 00:15:28,280 Speaker 5: we couldn't be more thrilled with the young group of 269 00:15:28,320 --> 00:15:33,120 Speaker 5: players that we have and still the superstars like Sidney 270 00:15:33,120 --> 00:15:35,600 Speaker 5: Crosby and Alexavechkin that are still playing at such a 271 00:15:35,680 --> 00:15:39,400 Speaker 5: high level. So when you look at the sport and 272 00:15:39,440 --> 00:15:41,600 Speaker 5: where it is today, I think it is in such 273 00:15:41,600 --> 00:15:45,280 Speaker 5: a great place and only improving. And that is a 274 00:15:45,360 --> 00:15:47,680 Speaker 5: testament to like you just said, over one hundred years, 275 00:15:47,720 --> 00:15:52,200 Speaker 5: the game continuing to evolve and really be in a 276 00:15:52,200 --> 00:15:52,800 Speaker 5: great place. 277 00:15:53,360 --> 00:15:55,760 Speaker 4: Keith, I really want to ask you about the turn 278 00:15:55,800 --> 00:15:58,000 Speaker 4: of media deal that's said to expire in twenty twenty 279 00:15:58,000 --> 00:16:01,240 Speaker 4: seven eight, But before I did, what is your approach 280 00:16:01,320 --> 00:16:04,800 Speaker 4: to the new elevated green on fifteen at Tamrick Country Club? 281 00:16:04,920 --> 00:16:07,560 Speaker 4: Because you know or Abotty yet, what are your thoughts 282 00:16:07,560 --> 00:16:10,000 Speaker 4: to the two traps in the middle of number five? Because, 283 00:16:10,240 --> 00:16:11,920 Speaker 4: by the way, Michael Barry, Keith and I belong to 284 00:16:11,960 --> 00:16:14,560 Speaker 4: the same club as you can probably imagine we have. 285 00:16:14,720 --> 00:16:16,400 Speaker 2: We have some new things going on in the courts. 286 00:16:16,400 --> 00:16:18,400 Speaker 2: Call for icing on that question, Keith. 287 00:16:18,520 --> 00:16:20,400 Speaker 4: I'm just kidding, But you know what, this is my 288 00:16:20,520 --> 00:16:24,239 Speaker 4: question for you, Keith, your NHL Original Productions, NHL Studios. 289 00:16:24,240 --> 00:16:26,720 Speaker 4: You know you're in charge of all that original programming. 290 00:16:27,080 --> 00:16:29,800 Speaker 4: Talk to us about I mean, since miracle right, Miracle 291 00:16:29,840 --> 00:16:32,120 Speaker 4: on I is nineteen eighty right, Kurt Russell, you know 292 00:16:32,160 --> 00:16:35,320 Speaker 4: what stories in hockey haven't yet been told on the 293 00:16:35,320 --> 00:16:35,840 Speaker 4: big screen. 294 00:16:36,880 --> 00:16:40,960 Speaker 5: Well, it's interesting question, and I certainly would love to 295 00:16:41,000 --> 00:16:43,280 Speaker 5: take you know, maybe a golf podcast. You and I 296 00:16:43,320 --> 00:16:47,320 Speaker 5: could do something separate about the elevated and the greens 297 00:16:47,400 --> 00:16:52,280 Speaker 5: rolling out about an eleven. But the content, you know, 298 00:16:52,320 --> 00:16:54,640 Speaker 5: if you think about you know, we look at the 299 00:16:54,720 --> 00:16:58,440 Speaker 5: game itself every night as incredible content, right, I mean 300 00:16:58,480 --> 00:17:02,080 Speaker 5: that that's that's the story Night in, Night Out and 301 00:17:02,360 --> 00:17:05,280 Speaker 5: all of the partners that we have. You mentioned Turner, 302 00:17:05,320 --> 00:17:10,119 Speaker 5: but it's Turner, it's ESPN, it's Rogers in Canada. You know, 303 00:17:10,160 --> 00:17:12,720 Speaker 5: we have global distribution of our game in over one 304 00:17:12,800 --> 00:17:17,000 Speaker 5: hundred and forty countries, you know, streaming platforms with ESPN 305 00:17:17,040 --> 00:17:19,679 Speaker 5: Plus and Max. So you know, you look at the 306 00:17:19,760 --> 00:17:23,200 Speaker 5: totality and the amount of content that we put out 307 00:17:23,280 --> 00:17:25,359 Speaker 5: on a day to day basis. Steve Mayer, who is 308 00:17:25,400 --> 00:17:28,560 Speaker 5: the head of our head of content, does a tremendous 309 00:17:28,640 --> 00:17:32,880 Speaker 5: job trying to find those unique stories. So this year 310 00:17:32,880 --> 00:17:36,720 Speaker 5: he put a documentary out on Alexander Daig. Just last 311 00:17:36,720 --> 00:17:41,000 Speaker 5: week we had a documentary called Saving Sakik, The Story 312 00:17:41,000 --> 00:17:44,480 Speaker 5: of Joe Sakik, the untold story of when the Rangers 313 00:17:44,520 --> 00:17:47,520 Speaker 5: put a offer sheet to him that had never been 314 00:17:47,960 --> 00:17:52,320 Speaker 5: done before and never certainly been matched, and that's what 315 00:17:52,359 --> 00:17:55,360 Speaker 5: the Coloradiomnch did went on to win another Stanley Cup. 316 00:17:55,680 --> 00:17:58,760 Speaker 5: I mean, those are the types of stories that we 317 00:17:58,840 --> 00:18:03,600 Speaker 5: think are really important, especially for our avid hockey fans. 318 00:18:04,320 --> 00:18:06,960 Speaker 5: But one of the areas that we're really focused on 319 00:18:07,119 --> 00:18:10,520 Speaker 5: in the world of content. And maybe you saw what 320 00:18:10,560 --> 00:18:15,639 Speaker 5: we did with ESPN and Disney and Big City Greens, 321 00:18:15,680 --> 00:18:18,920 Speaker 5: what we just did with MultiVersus and Turner. We did 322 00:18:19,040 --> 00:18:23,720 Speaker 5: application with the Chicago Blackhawks in reaching a new audience 323 00:18:23,760 --> 00:18:27,160 Speaker 5: of youth these animated games where we use our puck 324 00:18:27,200 --> 00:18:31,679 Speaker 5: and player technology to basically have an alternative broadcast that 325 00:18:31,840 --> 00:18:34,679 Speaker 5: is live, that is exactly the same as what you 326 00:18:34,680 --> 00:18:38,200 Speaker 5: would see on our more traditional linear channels, and we're 327 00:18:38,200 --> 00:18:40,760 Speaker 5: putting that in a completely new way to reach a 328 00:18:40,800 --> 00:18:44,159 Speaker 5: new audience. And that's really what's important to us. And 329 00:18:44,240 --> 00:18:47,320 Speaker 5: if you think about what's really evolved, not just the 330 00:18:47,320 --> 00:18:50,560 Speaker 5: game on the ice, but technology in all sports, it's 331 00:18:50,600 --> 00:18:53,240 Speaker 5: become a focal point for all of the leagues, for 332 00:18:53,320 --> 00:18:56,000 Speaker 5: all of the properties and the broadcasters and the teams, 333 00:18:56,440 --> 00:18:58,480 Speaker 5: and that's really what we're trying to do the Amian. 334 00:18:58,520 --> 00:19:01,080 Speaker 5: We're trying to look at the game and how do 335 00:19:01,119 --> 00:19:04,080 Speaker 5: we get it in this great game that we all love. 336 00:19:04,160 --> 00:19:09,960 Speaker 5: We just talked about into more households, more engagement. So 337 00:19:10,200 --> 00:19:14,840 Speaker 5: content is one of the premier strategies for us in 338 00:19:14,960 --> 00:19:16,479 Speaker 5: order for us to be able to do that and 339 00:19:16,520 --> 00:19:17,200 Speaker 5: grow the game. 340 00:19:17,800 --> 00:19:21,080 Speaker 2: We just were talking about this. Fifteen of the markets 341 00:19:21,400 --> 00:19:26,040 Speaker 2: in the NHL, they're packed in the arenas. I mean, 342 00:19:26,119 --> 00:19:30,439 Speaker 2: you can't get a seat, my goodness. And that shows 343 00:19:30,480 --> 00:19:33,240 Speaker 2: you about the die hard hockey fans. 344 00:19:33,440 --> 00:19:37,120 Speaker 5: Yeah, you know, certainly would argue it is the best 345 00:19:37,160 --> 00:19:41,399 Speaker 5: live sport. We put almost twenty three million people into 346 00:19:41,440 --> 00:19:45,280 Speaker 5: our buildings this past year. It's a record for US attendance, 347 00:19:45,600 --> 00:19:48,200 Speaker 5: I mean our sport. Yes, it is the most passionate. 348 00:19:48,280 --> 00:19:52,399 Speaker 5: We have diehard fans, and it's always been a great 349 00:19:52,440 --> 00:19:56,320 Speaker 5: live sport. And you do see these packed arenas, and 350 00:19:56,359 --> 00:19:58,960 Speaker 5: it's not just fifteen. I would argue that all thirty 351 00:19:59,000 --> 00:20:03,680 Speaker 5: two only throughout the year, we'll see their fair share 352 00:20:03,720 --> 00:20:07,840 Speaker 5: of sellouts, if not every game. What we're trying to 353 00:20:07,840 --> 00:20:11,080 Speaker 5: do is figure out how to make even that intern 354 00:20:11,200 --> 00:20:15,480 Speaker 5: experience even better for the fans, because we want them 355 00:20:15,520 --> 00:20:17,800 Speaker 5: to keep going. At the same time, how do we 356 00:20:17,800 --> 00:20:19,920 Speaker 5: make it better for those that can't get to a game, 357 00:20:19,960 --> 00:20:22,840 Speaker 5: that can't buy that ticket, and whether they're watching it 358 00:20:22,880 --> 00:20:26,000 Speaker 5: at home or elsewhere. And that's really important. But from 359 00:20:26,000 --> 00:20:29,160 Speaker 5: an attendance standpoint, and you look at the playoffs starting 360 00:20:29,480 --> 00:20:34,200 Speaker 5: on Saturday. Incredible numbers coming out of the weekend, packed houses, 361 00:20:34,280 --> 00:20:36,199 Speaker 5: you know, the white out in Winnipeg. I mean, you 362 00:20:36,320 --> 00:20:40,200 Speaker 5: name it. What's happening. You know, with the sixteen teams 363 00:20:40,240 --> 00:20:43,200 Speaker 5: that are currently in it, it is must watch TV 364 00:20:43,440 --> 00:20:47,639 Speaker 5: every single night. The storylines are incredible and we do 365 00:20:47,720 --> 00:20:49,680 Speaker 5: think this is the best two months in sports. Is 366 00:20:49,680 --> 00:20:50,760 Speaker 5: the NHL playoffs? 367 00:20:50,840 --> 00:20:52,679 Speaker 4: You know, Keith, I have to ask you this one 368 00:20:52,760 --> 00:20:56,160 Speaker 4: last question quickly, sports gambling, and you know, I look 369 00:20:56,160 --> 00:20:58,040 Speaker 4: at odds to win the Stanley Cup this year and 370 00:20:58,080 --> 00:21:01,200 Speaker 4: I don't think I've ever seen seventeen. I mean, basically 371 00:21:01,280 --> 00:21:03,840 Speaker 4: Vegas has no idea you know, who's winning the Stanley 372 00:21:03,840 --> 00:21:05,399 Speaker 4: Cup this year. And I'm not going to ask what 373 00:21:05,440 --> 00:21:08,080 Speaker 4: your opinion is of that, but just the impact of 374 00:21:08,200 --> 00:21:10,840 Speaker 4: sports betting, of sports gambling on the NHL. Talk to 375 00:21:10,920 --> 00:21:11,720 Speaker 4: us briefly about that. 376 00:21:13,160 --> 00:21:16,760 Speaker 5: I think the unpredictability of our sport night after nine 377 00:21:16,840 --> 00:21:19,760 Speaker 5: shartly in the playoffs, you just got to get in right. 378 00:21:19,840 --> 00:21:23,359 Speaker 5: So we love the competitive balance that we have in 379 00:21:23,400 --> 00:21:26,919 Speaker 5: the league. Uh And as you look at sports betting, 380 00:21:26,960 --> 00:21:29,719 Speaker 5: I mean it's here, It's part of the fabric of 381 00:21:29,840 --> 00:21:34,520 Speaker 5: you know, certainly the global culture and what you know, 382 00:21:34,600 --> 00:21:37,040 Speaker 5: what it does is it provides another bit of a 383 00:21:37,119 --> 00:21:41,000 Speaker 5: rooting interest, right, so you know, there there is so 384 00:21:41,080 --> 00:21:44,560 Speaker 5: many opportunities now to engage in a sport. Sports betting 385 00:21:44,640 --> 00:21:49,479 Speaker 5: is one of them, certainly where it's legalized. And you know, 386 00:21:49,520 --> 00:21:53,080 Speaker 5: we like the engagement factor really as you start looking 387 00:21:53,119 --> 00:21:55,959 Speaker 5: into you know, prop bets and things like that. With 388 00:21:56,000 --> 00:21:58,640 Speaker 5: our puck and player tracking, you can now see how 389 00:21:58,680 --> 00:22:03,480 Speaker 5: fast everyone's skating, how hard they're shooting. And what sports 390 00:22:03,520 --> 00:22:07,159 Speaker 5: betting really does, in our opinion, is engage fans a 391 00:22:07,200 --> 00:22:10,360 Speaker 5: little bit deeper. It's very important that they bet responsibly, 392 00:22:10,800 --> 00:22:15,200 Speaker 5: but the engagement is really really important, and I think 393 00:22:14,800 --> 00:22:19,239 Speaker 5: that's that's helped quite frankly all the sports from an 394 00:22:19,280 --> 00:22:22,760 Speaker 5: engagement standpoint. And again, as long as it's done responsibly, 395 00:22:22,880 --> 00:22:25,800 Speaker 5: we are very supportive of you know, again betting and 396 00:22:25,880 --> 00:22:27,800 Speaker 5: legalized in legalized states. 397 00:22:28,000 --> 00:22:30,280 Speaker 4: Man, what a year it's been. What a playoffs we 398 00:22:30,320 --> 00:22:34,240 Speaker 4: can expect to have here. Keith Wachtel, chief business Officer 399 00:22:34,320 --> 00:22:39,240 Speaker 4: and senior executive vice president for the NHL, also Tamerack 400 00:22:39,640 --> 00:22:42,639 Speaker 4: Country called Sandberger, thank you for joining us on the 401 00:22:42,680 --> 00:22:44,000 Speaker 4: Bloomberg Business of Sports. 402 00:22:44,160 --> 00:22:46,040 Speaker 5: Thank you very much, It's been a pleasure, and I 403 00:22:46,080 --> 00:22:49,160 Speaker 5: look forward to taking some of your money in the coming. 404 00:22:48,880 --> 00:22:54,000 Speaker 2: Months from Battles on a Ice the Battles in the Ring. 405 00:22:54,480 --> 00:22:58,240 Speaker 2: On the latest episode of the Deal with Alex Rodriguez 406 00:22:58,359 --> 00:23:03,439 Speaker 2: and Jason Kelly, they speak with Mark Shapiro, Endeavor and 407 00:23:03,640 --> 00:23:08,520 Speaker 2: TKO President and COO in a wide ranging conversation. They 408 00:23:08,680 --> 00:23:12,679 Speaker 2: talk about the real story behind the landmark merger of 409 00:23:12,800 --> 00:23:16,520 Speaker 2: the UFC and WWE. Let's take a listen to a 410 00:23:16,560 --> 00:23:17,840 Speaker 2: portion of that conversation. 411 00:23:18,280 --> 00:23:21,040 Speaker 9: One of the things that's really interesting about when you 412 00:23:21,040 --> 00:23:23,239 Speaker 9: combine UFC and WWE. By the way, I was a 413 00:23:23,400 --> 00:23:27,399 Speaker 9: massive WWE fan with you know, going back to the 414 00:23:27,400 --> 00:23:30,280 Speaker 9: whole Coogan days and on Macho Camatro, on Brandy Mayal. 415 00:23:30,840 --> 00:23:34,359 Speaker 9: My question to you is over a billion fans right combined. 416 00:23:34,840 --> 00:23:36,639 Speaker 9: I actually thank you guys in their early days of 417 00:23:36,680 --> 00:23:38,560 Speaker 9: how do you serve that consumer? Twenty four to seven, 418 00:23:38,600 --> 00:23:41,680 Speaker 9: three sixty five. There's so much upside. 419 00:23:41,280 --> 00:23:41,680 Speaker 2: That's right. 420 00:23:42,080 --> 00:23:44,840 Speaker 3: So we know we're still building a lot here domestically, 421 00:23:45,119 --> 00:23:48,560 Speaker 3: but yet there's a lot of international growth for the WWE, 422 00:23:48,880 --> 00:23:52,600 Speaker 3: and using IMG and the Endeavor platform is the underpinning 423 00:23:52,760 --> 00:23:55,400 Speaker 3: to get it out there, to make deals that catch 424 00:23:55,400 --> 00:23:58,399 Speaker 3: you into new territories all the time, in good programming 425 00:23:58,440 --> 00:24:02,240 Speaker 3: windows on the platforms that absolutely key to that growth. 426 00:24:02,280 --> 00:24:05,760 Speaker 9: Could you ever see integrating both into one mega event. 427 00:24:05,960 --> 00:24:09,480 Speaker 3: I see it potentially as a one event, especially although 428 00:24:09,480 --> 00:24:10,639 Speaker 3: they're two different audiences. 429 00:24:11,040 --> 00:24:12,680 Speaker 2: WW is Middle America. 430 00:24:13,000 --> 00:24:16,040 Speaker 3: It's you know, the show's coming to town, a lot 431 00:24:16,040 --> 00:24:21,440 Speaker 3: of kids, and it's a slice of Americana. The UFC 432 00:24:21,960 --> 00:24:26,000 Speaker 3: has an international flavor, right, it's college age and up. 433 00:24:26,280 --> 00:24:27,840 Speaker 2: It's a big betting sport. 434 00:24:28,000 --> 00:24:31,240 Speaker 3: Also, uh, it's gender neutral because we have a lot 435 00:24:31,240 --> 00:24:32,919 Speaker 3: of family female champions. 436 00:24:33,000 --> 00:24:33,800 Speaker 2: Ron and Rowsey is one of. 437 00:24:33,800 --> 00:24:36,359 Speaker 3: The biggest stars ever to come out of the UFC. 438 00:24:37,000 --> 00:24:40,719 Speaker 3: UH and ultimately Brazil, South America. I mean it's you know, 439 00:24:40,760 --> 00:24:44,280 Speaker 3: it's it's a monster, Canada, Australia, these are these are 440 00:24:44,320 --> 00:24:46,560 Speaker 3: good places to be. So I think that there's an 441 00:24:46,560 --> 00:24:49,080 Speaker 3: opportunity to bring them out Together's opportunity to event and. 442 00:24:49,040 --> 00:24:51,240 Speaker 8: Maybe there's an opportunity to launch a channel with them. 443 00:24:51,160 --> 00:24:52,200 Speaker 9: Together the Yankees model. 444 00:24:52,320 --> 00:24:56,560 Speaker 2: Yes, yes, exactly right. That is Endeavor and TKO President 445 00:24:56,680 --> 00:25:00,280 Speaker 2: and CEO Mark Shapiro on the latest edition of the 446 00:25:00,520 --> 00:25:05,199 Speaker 2: Deal with Alex Rodriguez and Jason Kelly Listen to the 447 00:25:05,240 --> 00:25:09,560 Speaker 2: full episode now on your favorite podcast platform. Plus watch 448 00:25:09,680 --> 00:25:13,119 Speaker 2: new episodes of The Deal every Friday at seven pm 449 00:25:13,200 --> 00:25:17,760 Speaker 2: Eastern on Bloomberg Television or streaming on Thursdays at nine 450 00:25:17,760 --> 00:25:21,960 Speaker 2: pm Eastern on Bloomberg Originals. Coming up next, it's almost 451 00:25:22,000 --> 00:25:26,240 Speaker 2: Derby time. We'll get you set for this year's Kentucky Derby. 452 00:25:26,400 --> 00:25:31,200 Speaker 2: Next with the CEO of Church Hill Downs, Bill Kristangen. 453 00:25:31,720 --> 00:25:36,080 Speaker 2: This is the Bloomberg Business of Sports from Bloomberg Radio. 454 00:25:36,200 --> 00:25:39,400 Speaker 2: Around the world. 455 00:25:48,440 --> 00:25:52,560 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 456 00:25:53,680 --> 00:25:55,960 Speaker 2: This is the Bloomberg Business of Sports show where we 457 00:25:56,000 --> 00:25:58,840 Speaker 2: explore the big money issues in the world of sports. 458 00:25:58,880 --> 00:26:02,480 Speaker 2: I'm Michael Barr, Scarlett and Damien. We'll be back next week. 459 00:26:02,680 --> 00:26:06,040 Speaker 2: But here to help me with our next conversation is 460 00:26:06,280 --> 00:26:10,600 Speaker 2: friend of the show, Vanessa Perdomo. She covers sports for 461 00:26:10,760 --> 00:26:16,280 Speaker 2: Bloomberg Originals, a partner. The fans just love it. In fact, 462 00:26:16,400 --> 00:26:19,760 Speaker 2: for Vanessa Perdomo, it's going up another ten percent of 463 00:26:19,800 --> 00:26:22,920 Speaker 2: all the fans that I'd love listening to her. Vanessa, 464 00:26:22,960 --> 00:26:24,200 Speaker 2: how you doing, I'm. 465 00:26:24,080 --> 00:26:26,200 Speaker 10: Doing great, Thanks so much for the warm welcome, Michael, 466 00:26:26,240 --> 00:26:28,760 Speaker 10: and I'm so happy I can join for all my 467 00:26:28,800 --> 00:26:29,440 Speaker 10: fans out there. 468 00:26:30,800 --> 00:26:34,120 Speaker 2: Well, Vanessa, we're getting ready for Derby Day. The Kentucky 469 00:26:34,160 --> 00:26:38,280 Speaker 2: Derby is back next weekend and it's a big anniversary. 470 00:26:38,560 --> 00:26:41,520 Speaker 2: Here to help us preview the run plus take us 471 00:26:41,520 --> 00:26:45,320 Speaker 2: behind the scenes, is Bill Carstangian, chief executive officer at 472 00:26:45,400 --> 00:26:49,200 Speaker 2: Churchill Downs. Bill, Welcome to the Bloomberg Business of Sports. 473 00:26:49,520 --> 00:26:51,520 Speaker 6: Michael, thanks for having me. It's great to be back, 474 00:26:51,680 --> 00:26:54,160 Speaker 6: really really pleased to be here, excited to be here. 475 00:26:54,320 --> 00:26:56,439 Speaker 2: We were talking about this off air, so now I 476 00:26:56,440 --> 00:27:00,600 Speaker 2: got to bring it up again. My wife was she's 477 00:27:00,720 --> 00:27:03,479 Speaker 2: not a gambler, but she had to make a bet 478 00:27:03,600 --> 00:27:05,800 Speaker 2: and this happened a couple of years ago. I believe 479 00:27:05,880 --> 00:27:08,800 Speaker 2: Strike Rich, I believe won the Kentucky Derby. 480 00:27:08,920 --> 00:27:10,159 Speaker 6: Rich Strike rich Stott. 481 00:27:10,280 --> 00:27:13,240 Speaker 2: Yeah, it was what forty to one or whatever the 482 00:27:13,280 --> 00:27:16,400 Speaker 2: heck it was or something like that. Whatever. She actually 483 00:27:16,400 --> 00:27:19,120 Speaker 2: put one hundred dollars down on this horse to win, 484 00:27:19,840 --> 00:27:21,840 Speaker 2: and my first thought was like, well, what the hell 485 00:27:21,880 --> 00:27:25,720 Speaker 2: would you do that for? Well, she won four thousand dollars. 486 00:27:26,440 --> 00:27:29,800 Speaker 2: This is the day where people when the run for 487 00:27:29,840 --> 00:27:33,040 Speaker 2: the Roses happens, that they have to be careful because 488 00:27:33,440 --> 00:27:34,800 Speaker 2: that usually does not happen. 489 00:27:34,880 --> 00:27:37,520 Speaker 6: No, I'm living in Kentucky like I do. I'm surrounded 490 00:27:37,520 --> 00:27:40,399 Speaker 6: by people that speak with great authority about what's going 491 00:27:40,440 --> 00:27:43,080 Speaker 6: to happen, and you believe it the first time you 492 00:27:43,119 --> 00:27:44,640 Speaker 6: hear it. Then you talk to somebody else and they 493 00:27:44,640 --> 00:27:48,280 Speaker 6: tell you something completely different. Everybody's got a theory, but 494 00:27:48,320 --> 00:27:51,320 Speaker 6: they're twenty horses in the race and anything can happen 495 00:27:51,359 --> 00:27:54,080 Speaker 6: and rich strike. A couple of years ago, the horse 496 00:27:54,119 --> 00:27:56,480 Speaker 6: your wife went on that was one of the biggest 497 00:27:56,600 --> 00:27:59,200 Speaker 6: upsets of all time. But it seems like every five 498 00:27:59,240 --> 00:28:02,640 Speaker 6: to ten years we have a similar sort of wild 499 00:28:02,880 --> 00:28:05,359 Speaker 6: finish where there are lots of folks like your wife saying, 500 00:28:05,440 --> 00:28:08,080 Speaker 6: I just want all this money unexpectedly, and then there 501 00:28:08,080 --> 00:28:10,040 Speaker 6: are a lot of people from Kentucky going, I can't 502 00:28:10,040 --> 00:28:12,040 Speaker 6: believe that horse. I never heard of it, and I 503 00:28:12,119 --> 00:28:14,760 Speaker 6: lost all my money. So the good news about horse 504 00:28:14,840 --> 00:28:18,080 Speaker 6: racing and betting on horse racing, and somebody's always happy 505 00:28:18,080 --> 00:28:18,680 Speaker 6: at the end of it. 506 00:28:19,080 --> 00:28:22,760 Speaker 10: Well, Bill, you know, talking about the betting on racing, 507 00:28:22,840 --> 00:28:25,119 Speaker 10: you know, we got to talk about the current state 508 00:28:25,320 --> 00:28:27,160 Speaker 10: of you know, mobile betting. 509 00:28:27,440 --> 00:28:30,720 Speaker 11: How has that you know the. 510 00:28:29,880 --> 00:28:32,639 Speaker 10: Impact of it and the growth of mobile betting really 511 00:28:32,720 --> 00:28:35,080 Speaker 10: taken off for the Derby. 512 00:28:35,280 --> 00:28:37,720 Speaker 6: Well, the Derby it's been around for one hundred and 513 00:28:37,760 --> 00:28:39,840 Speaker 6: fifty years, so this will be the one hundred and 514 00:28:39,880 --> 00:28:43,680 Speaker 6: fiftieth Derby. It's the longest continually held sporting event in 515 00:28:43,680 --> 00:28:47,760 Speaker 6: the United States, and interestingly, because of some flukes in 516 00:28:47,800 --> 00:28:49,520 Speaker 6: the law and sort of they hit the long history 517 00:28:49,520 --> 00:28:53,080 Speaker 6: of the sport. There was online wagering on horse racing 518 00:28:53,520 --> 00:28:56,160 Speaker 6: since the advent of the internet, so really the late 519 00:28:56,240 --> 00:28:59,000 Speaker 6: nineties early two thousands, when the internet really took off. 520 00:28:59,280 --> 00:29:03,120 Speaker 6: There's been line wagering on horse racing as other sports 521 00:29:03,160 --> 00:29:06,200 Speaker 6: became legalized over the last four or five years. There 522 00:29:06,200 --> 00:29:07,960 Speaker 6: were two ways to look at it. One is, horse 523 00:29:08,040 --> 00:29:10,280 Speaker 6: racing would no longer have its monopoly, it would no 524 00:29:10,360 --> 00:29:13,080 Speaker 6: longer be the only product you could wager on. But 525 00:29:13,200 --> 00:29:15,440 Speaker 6: on the other hand, and this is the way we 526 00:29:15,560 --> 00:29:17,320 Speaker 6: chose to look at it, on the other hand, there 527 00:29:17,320 --> 00:29:19,239 Speaker 6: were all these people who are now going to have 528 00:29:19,320 --> 00:29:22,440 Speaker 6: online wagering accounts because they wanted to bet on the Giants, 529 00:29:22,480 --> 00:29:24,080 Speaker 6: or they wanted to bet on the Rangers, or they 530 00:29:24,080 --> 00:29:26,640 Speaker 6: wanted to bet on the Knicks, and now it is 531 00:29:26,680 --> 00:29:30,080 Speaker 6: easier to reach those people. So our distribution got a 532 00:29:30,120 --> 00:29:33,040 Speaker 6: lot broader, and so how that's translated for the Kentucky 533 00:29:33,080 --> 00:29:37,240 Speaker 6: Derby is we've been setting our wagering record. Every single 534 00:29:37,320 --> 00:29:40,880 Speaker 6: year we set a new wagering record and the availability 535 00:29:41,280 --> 00:29:45,920 Speaker 6: of the Derby online has been a big contributor to that. 536 00:29:46,280 --> 00:29:48,600 Speaker 10: Can you give us some numbers on how it's grown 537 00:29:48,800 --> 00:29:50,000 Speaker 10: over the last couple of years? 538 00:29:50,080 --> 00:29:50,280 Speaker 8: Now? 539 00:29:50,400 --> 00:29:52,880 Speaker 12: That is, are you reaching out to people who've never 540 00:29:52,920 --> 00:29:55,040 Speaker 12: bet before? Like you said, like you're reaching out to 541 00:29:55,040 --> 00:29:57,360 Speaker 12: people who bet on football and now you're trying to 542 00:29:57,360 --> 00:29:58,320 Speaker 12: get them to bet on the Derby. 543 00:29:58,360 --> 00:30:00,640 Speaker 11: So how does that work for you? How has it 544 00:30:00,680 --> 00:30:01,880 Speaker 11: grown numerically? 545 00:30:02,120 --> 00:30:05,960 Speaker 6: So generally across the country, there's horse racing every day, 546 00:30:06,480 --> 00:30:10,920 Speaker 6: so there are hardcore horse racing players and they're out 547 00:30:10,920 --> 00:30:12,920 Speaker 6: there betting every day. But when you get to an 548 00:30:12,880 --> 00:30:16,160 Speaker 6: event like the Derby, there's all this casual fan money 549 00:30:16,240 --> 00:30:19,520 Speaker 6: that comes in. So it's a much much bigger day 550 00:30:19,880 --> 00:30:22,440 Speaker 6: and it's our chance, really our best chance every year 551 00:30:22,480 --> 00:30:25,920 Speaker 6: to reach new people to introduce them to horse racing. 552 00:30:26,280 --> 00:30:29,280 Speaker 6: I remember when we did one hundred million dollars of wagering, 553 00:30:29,320 --> 00:30:31,560 Speaker 6: and last year, I think on the Derby race itself, 554 00:30:31,840 --> 00:30:34,360 Speaker 6: I think we did two twenty five three fifty for 555 00:30:34,560 --> 00:30:37,800 Speaker 6: the whole week, huge wagering pools. They're getting bigger every year. 556 00:30:38,440 --> 00:30:41,520 Speaker 6: There's an international component, but it's really what's driving it 557 00:30:41,640 --> 00:30:46,720 Speaker 6: is better distribution to reach the American casual player who 558 00:30:47,320 --> 00:30:50,840 Speaker 6: isn't an expert in horse racing, but like Michael's wife, 559 00:30:51,080 --> 00:30:53,280 Speaker 6: likes the name of a horse, or has a theory 560 00:30:53,400 --> 00:30:56,040 Speaker 6: or a lucky number, and that's as good a way 561 00:30:56,080 --> 00:30:57,040 Speaker 6: of picking a horse as any. 562 00:30:57,360 --> 00:30:59,520 Speaker 10: I mean, right, because you never know who it's going 563 00:30:59,560 --> 00:31:02,560 Speaker 10: to be, and quite often it's never the people that 564 00:31:02,600 --> 00:31:04,520 Speaker 10: the experts that it's going to be. 565 00:31:04,680 --> 00:31:04,920 Speaker 11: Right. 566 00:31:05,160 --> 00:31:07,400 Speaker 6: If I could just say on that, there's a series 567 00:31:07,440 --> 00:31:11,400 Speaker 6: of qualifying races to get your horse in the Kentucky Derby, 568 00:31:11,720 --> 00:31:13,920 Speaker 6: and your horse can only run in the Kentucky Derby 569 00:31:13,960 --> 00:31:16,560 Speaker 6: one time. Whatever year a horse is born in, it's 570 00:31:16,560 --> 00:31:20,200 Speaker 6: always given the birthday date of January first, So the 571 00:31:20,320 --> 00:31:23,320 Speaker 6: Kentucky Derby you can your horse has to be three 572 00:31:23,400 --> 00:31:25,800 Speaker 6: years old, so it can only run in at one time. 573 00:31:26,160 --> 00:31:29,840 Speaker 6: And there's a series of qualifying events in order to qualify. 574 00:31:30,040 --> 00:31:32,239 Speaker 6: But what happens on derby days you have anywhere from 575 00:31:32,280 --> 00:31:34,360 Speaker 6: one hundred and fifty to one hundred and seventy thousand 576 00:31:34,360 --> 00:31:38,200 Speaker 6: people in the stands cheering, and you have twenty horses 577 00:31:38,200 --> 00:31:41,479 Speaker 6: in the gate and it's it's chaotic, so you can 578 00:31:41,520 --> 00:31:45,239 Speaker 6: get all kinds of interesting results in those circumstances. That's 579 00:31:45,280 --> 00:31:47,640 Speaker 6: why it's such a fun it's such a fun race 580 00:31:47,640 --> 00:31:48,200 Speaker 6: to bet on. 581 00:31:48,440 --> 00:31:51,320 Speaker 11: That's really interesting. Well, let's talk, you know a little 582 00:31:51,320 --> 00:31:52,040 Speaker 11: bit more about that. 583 00:31:52,120 --> 00:31:56,280 Speaker 12: You know, the casualness and the entire event itself one 584 00:31:56,360 --> 00:31:57,920 Speaker 12: hundred and fifty years. 585 00:31:58,320 --> 00:32:01,080 Speaker 11: How do you stay reletive in over one hundred and 586 00:32:01,120 --> 00:32:03,880 Speaker 11: fifty years and how has the derby been able to 587 00:32:03,880 --> 00:32:07,440 Speaker 11: innovate for the ever changing landscape of sports and fandom 588 00:32:07,600 --> 00:32:09,040 Speaker 11: In view, I. 589 00:32:08,960 --> 00:32:11,320 Speaker 6: Don't think we would have survived all these years if 590 00:32:11,320 --> 00:32:13,200 Speaker 6: we didn't ask ourselves that question. I think it's a 591 00:32:13,240 --> 00:32:15,960 Speaker 6: really important question. When you've been around for one hundred 592 00:32:15,960 --> 00:32:19,920 Speaker 6: and fifty years, if you're not changing constantly, you become irrelevant. 593 00:32:20,400 --> 00:32:23,760 Speaker 6: So we are constantly investing in our facility. We are 594 00:32:23,800 --> 00:32:27,240 Speaker 6: constantly going all over the world to see from a 595 00:32:27,240 --> 00:32:31,040 Speaker 6: sports venue and from an entertainment venue perspective, what works 596 00:32:31,080 --> 00:32:34,040 Speaker 6: the best, what's going to excite people, what's going to 597 00:32:34,040 --> 00:32:37,520 Speaker 6: give them that unique bucket list event? And we try 598 00:32:37,560 --> 00:32:40,680 Speaker 6: to capitalize on that. So we're very aggressive about investing 599 00:32:40,720 --> 00:32:44,320 Speaker 6: and continuously changing our venue. And I would also say, 600 00:32:44,840 --> 00:32:47,360 Speaker 6: different from any other sporting event I've ever seen in 601 00:32:47,360 --> 00:32:51,480 Speaker 6: the United States or the world, we're a female driven 602 00:32:51,760 --> 00:32:55,280 Speaker 6: fan base. Yes, there are plenty of men that are there, 603 00:32:55,320 --> 00:32:57,960 Speaker 6: but the Derby's really sort of like the Oscars for 604 00:32:58,040 --> 00:33:02,560 Speaker 6: the everyday person. Everybody wears clothes that they wouldn't wear 605 00:33:02,560 --> 00:33:05,880 Speaker 6: at any other event during the year. For women, it's hats, 606 00:33:05,360 --> 00:33:08,640 Speaker 6: it's colorful outfits, and I think it's a chance for 607 00:33:08,720 --> 00:33:11,480 Speaker 6: everybody to be the star of the show. And that 608 00:33:11,640 --> 00:33:15,560 Speaker 6: is a female energy that I think drives the whole event, 609 00:33:15,680 --> 00:33:18,760 Speaker 6: and it's unique in America, and I think that's something 610 00:33:18,760 --> 00:33:21,080 Speaker 6: that we noticed over time. I don't know that originally 611 00:33:21,200 --> 00:33:23,680 Speaker 6: the founders of the Kentucky Derby were trying to create that, 612 00:33:24,160 --> 00:33:27,360 Speaker 6: but that's become the cultural event that it is, and 613 00:33:27,400 --> 00:33:30,080 Speaker 6: that's something that our team works very very hard on 614 00:33:30,560 --> 00:33:33,800 Speaker 6: trying to capitalize on because we do think it's one 615 00:33:33,800 --> 00:33:36,640 Speaker 6: of those things that makes us a unique bucket list 616 00:33:36,840 --> 00:33:37,720 Speaker 6: event for people. 617 00:33:38,080 --> 00:33:41,040 Speaker 2: It is an event which brings me to the next point, 618 00:33:41,400 --> 00:33:44,520 Speaker 2: thank goodness. And I know it's an old story, but 619 00:33:44,640 --> 00:33:46,760 Speaker 2: and I'm so glad now. We were talking about it 620 00:33:46,800 --> 00:33:52,600 Speaker 2: earlier about live events coming back strong, especially after COVID, 621 00:33:53,400 --> 00:33:58,920 Speaker 2: because I don't think people understand how it destroyed the 622 00:33:59,080 --> 00:34:02,320 Speaker 2: sports industry all around, especially for live events. 623 00:34:02,600 --> 00:34:06,400 Speaker 6: Yeah, in twenty twenty, when COVID really hit, you know, 624 00:34:06,440 --> 00:34:09,520 Speaker 6: we were notified by the governor of the state that 625 00:34:09,520 --> 00:34:12,319 Speaker 6: that we couldn't run the Kentucky Derby, And as an 626 00:34:12,320 --> 00:34:14,240 Speaker 6: event that at that point was one hundred and forty 627 00:34:14,239 --> 00:34:16,520 Speaker 6: six years old, we didn't want to be the team 628 00:34:16,600 --> 00:34:19,320 Speaker 6: that let everybody down and broke the streak. So we 629 00:34:19,480 --> 00:34:23,440 Speaker 6: were negotiated with the state and the governor and that Derby, 630 00:34:23,480 --> 00:34:27,080 Speaker 6: the twenty twenty Derby, we ran with no fans and 631 00:34:27,120 --> 00:34:29,680 Speaker 6: it was and we also we had to run it 632 00:34:29,719 --> 00:34:31,879 Speaker 6: at a different time of the year. We had it's 633 00:34:31,880 --> 00:34:34,440 Speaker 6: always run the first Saturday in May, but that year 634 00:34:34,440 --> 00:34:36,279 Speaker 6: we had to run it in September because in May 635 00:34:36,400 --> 00:34:40,960 Speaker 6: there was absolutely no ability to hold a sporting event 636 00:34:41,239 --> 00:34:43,680 Speaker 6: even without fans. But the way we looked at at 637 00:34:43,680 --> 00:34:45,960 Speaker 6: the time, you know, this is an event that survived 638 00:34:46,000 --> 00:34:50,920 Speaker 6: the World Wars, that survived another pandemic in nineteen nineteen, 639 00:34:51,560 --> 00:34:55,840 Speaker 6: So we never accepted taking a year off. We just 640 00:34:56,080 --> 00:34:58,200 Speaker 6: we just found a way to get it done that year, 641 00:34:58,360 --> 00:34:59,759 Speaker 6: and in a lot of ways that was a hard 642 00:34:59,760 --> 00:35:02,160 Speaker 6: to because it didn't have any of the celebration that 643 00:35:02,200 --> 00:35:05,520 Speaker 6: really defines the event. But in another way, the team 644 00:35:05,600 --> 00:35:07,440 Speaker 6: was very proud that we did our part, that we 645 00:35:07,600 --> 00:35:09,759 Speaker 6: kept the streak going and that we found a way 646 00:35:09,760 --> 00:35:11,759 Speaker 6: to get the race in even if it didn't have 647 00:35:11,800 --> 00:35:14,879 Speaker 6: the same magic, it had a different magic. The next 648 00:35:14,960 --> 00:35:17,000 Speaker 6: year we were allowed to hold it with fifty percent 649 00:35:17,040 --> 00:35:21,640 Speaker 6: of the crowd, and after that it's it's been. It's 650 00:35:21,640 --> 00:35:24,200 Speaker 6: been full speed ahead in big crowds, and this year 651 00:35:24,239 --> 00:35:27,960 Speaker 6: we're looking tremendous crowds and a tremendous events. Everything that 652 00:35:28,000 --> 00:35:31,080 Speaker 6: we track, all the metrics that we follow, really look 653 00:35:31,160 --> 00:35:34,520 Speaker 6: exceptional for this derby. There's a lot of excitement and 654 00:35:34,560 --> 00:35:37,400 Speaker 6: I think, you know, if we were England, maybe we 655 00:35:37,440 --> 00:35:39,880 Speaker 6: wouldn't be so excited about one hundred and fifty years 656 00:35:39,920 --> 00:35:43,400 Speaker 6: because that's a much older country. But in the United States, 657 00:35:43,160 --> 00:35:45,440 Speaker 6: there's really not very much that's one hundred and fifty 658 00:35:45,480 --> 00:35:48,799 Speaker 6: years old. I think there's a lot of cachet around that. 659 00:35:49,160 --> 00:35:51,200 Speaker 6: The fact that this is the oldest, you know, the 660 00:35:51,200 --> 00:35:53,080 Speaker 6: oldest continually run sporting event. 661 00:35:53,400 --> 00:35:55,960 Speaker 10: Truly crazy when you think of all the things that 662 00:35:56,000 --> 00:35:57,840 Speaker 10: the dery has been through. Like you were just saying, 663 00:35:58,080 --> 00:36:00,279 Speaker 10: you know, wrapping up here, I love to you know, 664 00:36:00,320 --> 00:36:02,800 Speaker 10: you're talking about people coming back and you just finished 665 00:36:02,840 --> 00:36:05,359 Speaker 10: two hundred million dollars renovation and you tell us about 666 00:36:05,400 --> 00:36:07,480 Speaker 10: that and what people can expect from the fans who 667 00:36:07,719 --> 00:36:08,279 Speaker 10: experience that. 668 00:36:08,600 --> 00:36:12,239 Speaker 6: Yeah, we just we just did a transformative project two 669 00:36:12,320 --> 00:36:15,800 Speaker 6: hundred million dollars to rebuild the paddock of the race track. 670 00:36:16,200 --> 00:36:19,319 Speaker 6: And in in erace track, the central point other than 671 00:36:19,360 --> 00:36:21,399 Speaker 6: the finish line. Everybody will go out to the track 672 00:36:21,440 --> 00:36:24,640 Speaker 6: itself to watch the horses finish, but the central point 673 00:36:24,960 --> 00:36:27,000 Speaker 6: of the track when the horses aren't on it is 674 00:36:27,040 --> 00:36:30,319 Speaker 6: the paddock. That's where the horses are paraded before the 675 00:36:30,400 --> 00:36:33,080 Speaker 6: race for everybody to look at. And that's the heartbeat. 676 00:36:33,120 --> 00:36:36,040 Speaker 6: That's what everybody in the track looks at and sees 677 00:36:36,120 --> 00:36:38,719 Speaker 6: and thinks as as the center point, you know, the 678 00:36:38,760 --> 00:36:42,480 Speaker 6: heartbeat of the facility. So we did a transformative project 679 00:36:42,680 --> 00:36:45,920 Speaker 6: two hundred million dollars, rebuilt the paddock, made it vertical, 680 00:36:46,000 --> 00:36:51,960 Speaker 6: so it's several layers, several floors so that more people 681 00:36:52,320 --> 00:36:54,720 Speaker 6: can see the paddock and the energy is more centered 682 00:36:54,719 --> 00:36:57,640 Speaker 6: on the paddock and it affects every person that comes 683 00:36:57,640 --> 00:37:02,080 Speaker 6: into the facility. And our most distinguished architectural feature of 684 00:37:02,160 --> 00:37:04,479 Speaker 6: this facility that's been there for one hundred and fifty 685 00:37:04,560 --> 00:37:07,440 Speaker 6: years are these things called the twin spires that are 686 00:37:07,480 --> 00:37:10,960 Speaker 6: on the brand stands. These spires, but you couldn't see 687 00:37:11,000 --> 00:37:13,920 Speaker 6: them previously because they were behind other buildings. You couldn't 688 00:37:13,920 --> 00:37:16,440 Speaker 6: get the angle. But now when you walk in our facility, 689 00:37:16,440 --> 00:37:19,600 Speaker 6: you see this massive brass paddock and you look right 690 00:37:19,640 --> 00:37:22,560 Speaker 6: at the twin spires and it touches you immediately with 691 00:37:22,680 --> 00:37:25,719 Speaker 6: the history and the pageantry of the place and just 692 00:37:25,760 --> 00:37:27,920 Speaker 6: get you in the move for a special experience you 693 00:37:28,000 --> 00:37:29,319 Speaker 6: just can't get anywhere else. 694 00:37:29,640 --> 00:37:33,400 Speaker 2: Bill Corestenze, chief executive off of Deir church Hill Downs 695 00:37:33,920 --> 00:37:37,360 Speaker 2: the Run for the Roses Saturday, May fourth, for the 696 00:37:37,360 --> 00:37:40,600 Speaker 2: one hundred and fiftieth running of the Kentucky Derby. Bill, 697 00:37:40,640 --> 00:37:42,000 Speaker 2: thank you so much for joining us. 698 00:37:41,960 --> 00:37:43,640 Speaker 6: Here my pleasure, happy Derby. 699 00:37:44,239 --> 00:37:49,120 Speaker 2: Our thanks to Churchill Downs CEO Bill Cristangen for joining us. 700 00:37:49,520 --> 00:37:52,520 Speaker 2: This is the Bloomberg Business of sports show. We are 701 00:37:52,560 --> 00:37:54,840 Speaker 2: here each and every week at the same time for 702 00:37:54,960 --> 00:37:58,839 Speaker 2: my colleagues. Garlet Foo and Damien sas Hour with us 703 00:37:59,000 --> 00:38:02,440 Speaker 2: special thank you you to special guest host Vanessa Perdomo 704 00:38:02,719 --> 00:38:06,319 Speaker 2: of Bloomberg Originals. I'm Michael Barr. Thanks for joining us. 705 00:38:06,320 --> 00:38:08,040 Speaker 2: Tune in again next week for the latest on the 706 00:38:08,120 --> 00:38:11,440 Speaker 2: stories moving big old money in the world of sports. 707 00:38:11,719 --> 00:38:15,720 Speaker 2: You're listening to Bloomberg Business of Sports from Bloomberger Radio 708 00:38:15,880 --> 00:38:20,160 Speaker 2: around the world. Stay with us. Today's top stories and 709 00:38:20,400 --> 00:38:23,400 Speaker 2: global business headlines are coming up right now.