1 00:00:01,760 --> 00:00:05,240 Speaker 1: This is the business of sports. Should Major League Baseball 2 00:00:05,480 --> 00:00:08,320 Speaker 1: shorten up the season? How do we present football to 3 00:00:08,360 --> 00:00:10,360 Speaker 1: the audience of the future. I don't think that most 4 00:00:10,400 --> 00:00:13,119 Speaker 1: players understand the power that they have. Michael vaugh The 5 00:00:13,200 --> 00:00:17,000 Speaker 1: future of IndyCar racing is looking bright. Scott Sashnik, very 6 00:00:17,040 --> 00:00:20,439 Speaker 1: basic math here, more bidders means more money. Evan Nobody Williams. 7 00:00:20,440 --> 00:00:23,560 Speaker 1: The team value has essentially quadruples. And the leaders in 8 00:00:23,600 --> 00:00:26,160 Speaker 1: the sports industry. Time to bring in our guest hal 9 00:00:26,280 --> 00:00:29,640 Speaker 1: stand Runner, National Hockey League Commissioner Gary Bettman, Atlanta Braves 10 00:00:29,680 --> 00:00:33,800 Speaker 1: president Derek Schiller, Patriots President Jonathan Kraft. Bloomberg Business of 11 00:00:33,880 --> 00:00:37,440 Speaker 1: Sports from Bloomberg Radio. Hello, I'm Michael Barr, I'm Evan 12 00:00:37,520 --> 00:00:40,440 Speaker 1: Novie Williams, and I'm Scott Sashnik. Every weekend, this time 13 00:00:40,479 --> 00:00:43,440 Speaker 1: plus Mondays and Wednesdays, we explore the big Today we 14 00:00:43,479 --> 00:00:47,800 Speaker 1: speak with Pete Flestelica, the CEO of Activision E Sports, 15 00:00:47,800 --> 00:00:50,159 Speaker 1: on the E sports business model and the rise of 16 00:00:50,159 --> 00:00:53,040 Speaker 1: the industry. And that's coming up shortly. But first let's 17 00:00:53,120 --> 00:00:54,640 Speaker 1: look at the top stories of the week. And we 18 00:00:54,760 --> 00:00:59,640 Speaker 1: begin with the NBA finding the Milwaukee Bucks for tampering. Yeah, 19 00:00:59,680 --> 00:01:03,720 Speaker 1: the hoortant thing here. It's just fine. And by the way, 20 00:01:03,760 --> 00:01:06,360 Speaker 1: for anybody from the Milwaukee Bucks to say, we're gonna 21 00:01:06,520 --> 00:01:10,280 Speaker 1: offer John Asanta the compo a super max contract when 22 00:01:10,280 --> 00:01:14,320 Speaker 1: he's when he's eligible, yeah, you don't say, stop the presses. 23 00:01:14,760 --> 00:01:17,160 Speaker 1: But maybe this is bad timing for the Bucks. This 24 00:01:17,280 --> 00:01:21,039 Speaker 1: comes just a few days after Adam Silver held his 25 00:01:21,200 --> 00:01:24,280 Speaker 1: press conference at the Board of Governors meeting stating that 26 00:01:24,360 --> 00:01:27,240 Speaker 1: the culture of the league has to change, that everybody 27 00:01:27,360 --> 00:01:29,880 Speaker 1: has to want to play by the rules, that they 28 00:01:29,920 --> 00:01:33,760 Speaker 1: have to really start to enforce the rules. Uh, and 29 00:01:33,880 --> 00:01:36,560 Speaker 1: this is step one. This was really just Adam saying 30 00:01:37,160 --> 00:01:40,120 Speaker 1: we were serious. And here you go. There's just too 31 00:01:40,160 --> 00:01:43,840 Speaker 1: many teams out there that are taking liberties with the 32 00:01:43,920 --> 00:01:47,560 Speaker 1: rules and trying to gain advantages with free agents, let's say, 33 00:01:47,640 --> 00:01:49,600 Speaker 1: and talking to them when they're not supposed to and 34 00:01:49,720 --> 00:01:53,800 Speaker 1: doing things they're not supposed to say. So here's step one. 35 00:01:54,320 --> 00:01:57,320 Speaker 1: Shows me that the NBA is serious about this and 36 00:01:57,360 --> 00:01:59,120 Speaker 1: getting to the point where, by the way, Adam said, 37 00:01:59,120 --> 00:02:01,680 Speaker 1: we might have to start take devices and investigations. And 38 00:02:01,720 --> 00:02:04,120 Speaker 1: again this is the GM of the Bucks. John Horst 39 00:02:04,200 --> 00:02:06,760 Speaker 1: at a public event said, you know, we will be 40 00:02:06,800 --> 00:02:10,160 Speaker 1: offering Jonas the max we can next surprising literally nobody. 41 00:02:10,200 --> 00:02:13,040 Speaker 1: Do you think if this was last year and John 42 00:02:13,040 --> 00:02:14,600 Speaker 1: Horst had said that same thing, that there would be 43 00:02:14,680 --> 00:02:19,040 Speaker 1: and maybe maybe an email, maybe an email. Hey, don't 44 00:02:19,080 --> 00:02:21,519 Speaker 1: say that, you know, you remember the rule. You're a 45 00:02:21,560 --> 00:02:23,600 Speaker 1: little early. You can say that within a certain time 46 00:02:23,600 --> 00:02:25,840 Speaker 1: period of the deal, but you can't say it right now. 47 00:02:26,280 --> 00:02:30,040 Speaker 1: And this culture change. And I've never asked David Stern 48 00:02:30,080 --> 00:02:31,840 Speaker 1: this or Adam, but maybe I will next time I'm 49 00:02:31,880 --> 00:02:35,440 Speaker 1: with them. I thought it was odd that, remember years ago, 50 00:02:35,480 --> 00:02:39,919 Speaker 1: the illegal Joe Smith contract with the Minnesota Timberwolves, Glen 51 00:02:40,040 --> 00:02:42,920 Speaker 1: Glenn Taylor was Yeah, he was suspended, they took draft picks, 52 00:02:42,919 --> 00:02:45,640 Speaker 1: big fine, the whole shebang. David Stern called it an 53 00:02:45,680 --> 00:02:49,520 Speaker 1: I'm paraphrasing here something like the widest ranging fraud in 54 00:02:49,639 --> 00:02:54,919 Speaker 1: league history, right, And then subsequent to that, Glenn Taylor 55 00:02:55,520 --> 00:02:58,200 Speaker 1: was elected by his fellow owners as the chairman of 56 00:02:58,240 --> 00:03:02,640 Speaker 1: the Board of Governors, this sort of honorary position. So wait, like, 57 00:03:02,800 --> 00:03:06,119 Speaker 1: which is it seems so incongruous? Maybe you helped create 58 00:03:07,160 --> 00:03:11,080 Speaker 1: the culture whereby the biggest cheat in the history of 59 00:03:11,120 --> 00:03:13,239 Speaker 1: the league is now in an honorary position as the 60 00:03:13,320 --> 00:03:15,400 Speaker 1: chairman of a board of governors. Maybe that should have 61 00:03:15,440 --> 00:03:18,320 Speaker 1: never had up. Next, we need to talk about a 62 00:03:18,400 --> 00:03:21,639 Speaker 1: court ruling that's offering Monmouth Park hope. And it's one 63 00:03:22,320 --> 00:03:25,040 Speaker 1: million dollar lawsuit against the n C double A. Yeah, 64 00:03:25,160 --> 00:03:27,720 Speaker 1: pretty big, major victory for Monmouth Park and the Third 65 00:03:27,720 --> 00:03:32,400 Speaker 1: Circuit Court of Appeals. And it's not just it's against 66 00:03:32,440 --> 00:03:35,760 Speaker 1: all the leagues, the NFL, the NBA, the MLB, NHL. 67 00:03:35,920 --> 00:03:42,120 Speaker 1: Everybody scream sports betting is bad, No, we can't have it. Essentially, 68 00:03:42,320 --> 00:03:44,600 Speaker 1: I mean, you know, if people remember back in two 69 00:03:44,640 --> 00:03:47,760 Speaker 1: thousand twelve, Governor Chris Christie of New Jersey, he legalized 70 00:03:47,760 --> 00:03:50,600 Speaker 1: sports betting and Monmouth Park was set to take bets 71 00:03:51,160 --> 00:03:53,760 Speaker 1: and the league sued. They got an injunction, you know, 72 00:03:53,840 --> 00:03:57,240 Speaker 1: overstraining order moment Park was held from doing that. Now 73 00:03:57,360 --> 00:04:00,160 Speaker 1: Monmouth Park is asking for damages, essentially saying that the 74 00:04:00,280 --> 00:04:03,160 Speaker 1: argument the league's made that this was a huge were 75 00:04:03,240 --> 00:04:06,280 Speaker 1: illegally enjoined or stop they were illegally enjoined. That the 76 00:04:06,320 --> 00:04:08,600 Speaker 1: league's claimed that, you know, this was a threat, fundamental 77 00:04:08,680 --> 00:04:11,520 Speaker 1: threat to their leagues. Well, fast forward a couple of years. 78 00:04:11,800 --> 00:04:14,200 Speaker 1: Now they're taking equity deals and some of these betting 79 00:04:14,200 --> 00:04:17,760 Speaker 1: companies they have data deals, They've moved teams to Las Vegas. 80 00:04:18,040 --> 00:04:21,159 Speaker 1: You know, the Mommouth Park is now saying, look, the 81 00:04:21,240 --> 00:04:24,000 Speaker 1: argument they made back then to to shut us down, 82 00:04:24,560 --> 00:04:26,640 Speaker 1: uh is not something that they are at hearing has 83 00:04:26,640 --> 00:04:29,480 Speaker 1: already been teamed illegal, you know, so that so this 84 00:04:29,600 --> 00:04:32,600 Speaker 1: is now legal. So I mean, obviously the band was 85 00:04:32,920 --> 00:04:35,360 Speaker 1: not at the time, and the leagues had to put 86 00:04:35,400 --> 00:04:38,520 Speaker 1: up a three and a half million dollar bond, so 87 00:04:38,560 --> 00:04:40,760 Speaker 1: some of that money goes back. But what Monmouth has 88 00:04:40,800 --> 00:04:43,600 Speaker 1: to do now bar is show that had they been 89 00:04:43,640 --> 00:04:46,679 Speaker 1: operating and taking these bets for that period of time, 90 00:04:47,040 --> 00:04:50,040 Speaker 1: what sorts of revenue have they missed out? One and finally, 91 00:04:50,080 --> 00:04:53,320 Speaker 1: let's talk about Dignatasi Sports, the company that just raised 92 00:04:53,400 --> 00:04:56,880 Speaker 1: thirty million dollars and is now forming a parent company 93 00:04:56,960 --> 00:05:01,240 Speaker 1: called New Meta Entertainment. And me and you as a 94 00:05:01,400 --> 00:05:07,000 Speaker 1: fourteen year old purveyor of your side and they get 95 00:05:07,040 --> 00:05:11,799 Speaker 1: it in the gaming culture. So not just the money, 96 00:05:11,839 --> 00:05:14,920 Speaker 1: but the high creativity over there at Dignitas. But look 97 00:05:14,920 --> 00:05:16,720 Speaker 1: at the names involved again, and this is what we're 98 00:05:16,720 --> 00:05:20,760 Speaker 1: talking about the maturation of the sports. You've got, of course, 99 00:05:20,920 --> 00:05:25,719 Speaker 1: Harris Splitzer Sports and Entertainment, parents of sixers Devils for 100 00:05:25,839 --> 00:05:30,679 Speaker 1: Tita Entertainment, m HM, Susquehanna, Private Equity Investments, Delaware North, 101 00:05:31,240 --> 00:05:36,279 Speaker 1: the Jacob's Family, that's the Boston Bruins. Serious sports and 102 00:05:36,400 --> 00:05:40,120 Speaker 1: investment folks are finding their way to e sports. And 103 00:05:40,560 --> 00:05:42,960 Speaker 1: last Delica is gonna talk about it later on the show. 104 00:05:43,360 --> 00:05:46,000 Speaker 1: Who's involved, how big it's getting, and what they seem 105 00:05:46,040 --> 00:05:48,760 Speaker 1: to be getting at it. Absolutely, and the seventy sixers 106 00:05:48,800 --> 00:05:51,520 Speaker 1: Harris Splitzer Entertainment, they were early in this in this 107 00:05:51,520 --> 00:05:54,520 Speaker 1: wave right when they bought Dignitas Man probably four years 108 00:05:54,520 --> 00:05:56,359 Speaker 1: ago now, they were the I think they were the 109 00:05:56,400 --> 00:06:01,240 Speaker 1: first major US based sports team to buy into competitive 110 00:06:01,320 --> 00:06:04,279 Speaker 1: video gaming. You know, they just recently bought Clutch Gaming 111 00:06:04,320 --> 00:06:07,240 Speaker 1: from the Houston Rockets. That's a league of Legends slot, 112 00:06:07,320 --> 00:06:09,800 Speaker 1: so that they are building a little sports empire there. 113 00:06:09,800 --> 00:06:12,240 Speaker 1: But as Scott said, they're not alone. You know, the 114 00:06:12,240 --> 00:06:16,200 Speaker 1: the number of billionaire traditional sports owners that are finding 115 00:06:16,240 --> 00:06:18,800 Speaker 1: their way into e sports, uh, there's a number of them. 116 00:06:18,839 --> 00:06:20,560 Speaker 1: There is going to be more. This is just a 117 00:06:20,640 --> 00:06:22,760 Speaker 1: sign with more to come. Now let's get to this 118 00:06:22,800 --> 00:06:27,200 Speaker 1: week's interview with Pete Lostelica, the CEO of Activision e Sports, 119 00:06:27,240 --> 00:06:30,159 Speaker 1: on the East Sports business model and the rise of 120 00:06:30,200 --> 00:06:33,000 Speaker 1: the industry. Pete, thank you so much for coming on 121 00:06:33,040 --> 00:06:35,800 Speaker 1: Bloomberg Business of Sports. Thanks a lot for having me on. 122 00:06:36,200 --> 00:06:38,720 Speaker 1: So the timing here is is pretty perfect. You guys 123 00:06:38,720 --> 00:06:41,599 Speaker 1: are heading into the Grand Finals of the Overwatch League season. 124 00:06:41,920 --> 00:06:45,440 Speaker 1: What's in store for folks in Philadelphia this weekend? Well, 125 00:06:45,440 --> 00:06:48,680 Speaker 1: this is our this is our big one, so you know, 126 00:06:48,760 --> 00:06:52,400 Speaker 1: it's the culmination of a long season. Most of our 127 00:06:52,400 --> 00:06:54,960 Speaker 1: events have been played in Los Angeles, but we did 128 00:06:55,480 --> 00:06:58,640 Speaker 1: have three events in our team's home markets this year. 129 00:06:58,680 --> 00:07:00,400 Speaker 1: We did one in Dallas, one in the and one 130 00:07:00,760 --> 00:07:02,919 Speaker 1: and one in Los Angeles. But at the end of 131 00:07:02,920 --> 00:07:08,160 Speaker 1: a long playoffs which was a double elimination style playoff bracket, UH, 132 00:07:08,360 --> 00:07:12,400 Speaker 1: the Vancouver Titans in the San Francisco Shock emerged as 133 00:07:12,720 --> 00:07:14,600 Speaker 1: the two teams that are going to be representing the 134 00:07:14,640 --> 00:07:18,880 Speaker 1: league in our Grand Finals match this weekend Sunday at 135 00:07:18,880 --> 00:07:21,200 Speaker 1: the Wells Fargo Center. With great is that these are 136 00:07:21,200 --> 00:07:23,559 Speaker 1: the two best teams all season. There are two teams 137 00:07:23,560 --> 00:07:26,880 Speaker 1: are the best writer in the same division, but they 138 00:07:27,040 --> 00:07:31,400 Speaker 1: they had the best records all season. The Shock have 139 00:07:32,120 --> 00:07:36,800 Speaker 1: UM the leaving m VP Sinatra on the team UM. 140 00:07:36,880 --> 00:07:40,480 Speaker 1: The Titans have the League Rookie of the Year Hastell 141 00:07:40,520 --> 00:07:43,280 Speaker 1: on the team, the lots of great storylines. You Grand 142 00:07:43,320 --> 00:07:45,360 Speaker 1: Finals is exactly what it sounds like, right like, we're 143 00:07:45,520 --> 00:07:47,400 Speaker 1: these are the two best teams in the league trying 144 00:07:47,440 --> 00:07:49,360 Speaker 1: to win it all. I think a lot of people 145 00:07:49,400 --> 00:07:53,160 Speaker 1: they understand the sports competitive video gaming, people don't understand 146 00:07:53,160 --> 00:07:55,440 Speaker 1: what these events look like live in person, at least 147 00:07:55,440 --> 00:07:56,960 Speaker 1: the big ones. You know you are in the Wells 148 00:07:57,000 --> 00:07:59,440 Speaker 1: Fargo Center. I believe it's sold out. Correct me if 149 00:07:59,440 --> 00:08:01,880 Speaker 1: I'm wrong. Give us a senset this scene for us? 150 00:08:01,920 --> 00:08:04,080 Speaker 1: What what does this look like for people who are 151 00:08:04,120 --> 00:08:08,120 Speaker 1: in the arena on Sunday for the Grand Finals? It 152 00:08:08,160 --> 00:08:11,960 Speaker 1: looks like a an NBA Game seven. If you're in 153 00:08:12,000 --> 00:08:15,520 Speaker 1: the arena, you you look around and every eye is 154 00:08:15,640 --> 00:08:19,800 Speaker 1: glued to what's happening on the stage. UM and uh, 155 00:08:19,880 --> 00:08:21,600 Speaker 1: you know every seat is filled. As you said, we 156 00:08:21,680 --> 00:08:24,840 Speaker 1: sold out this year for the second straight year. Is 157 00:08:24,880 --> 00:08:28,200 Speaker 1: their second season. Um. Last year we did our Grand 158 00:08:28,200 --> 00:08:30,720 Speaker 1: Final at the Barclay Center in Brooklyn, which is a 159 00:08:30,800 --> 00:08:33,360 Speaker 1: fantastic event. I've been. I've been in the sports industry 160 00:08:33,400 --> 00:08:35,439 Speaker 1: in my whole career. I have been a lot of 161 00:08:35,480 --> 00:08:37,480 Speaker 1: sporting events and a lot of the sports events now 162 00:08:37,559 --> 00:08:41,080 Speaker 1: and honestly, even as a SAM like I can't think 163 00:08:41,120 --> 00:08:44,480 Speaker 1: of a better fan environment or experience than that that 164 00:08:45,080 --> 00:08:47,920 Speaker 1: Grand Finals at that Barclays last year. And that was 165 00:08:47,960 --> 00:08:50,079 Speaker 1: because of the fan and the fans are there. You 166 00:08:50,160 --> 00:08:53,520 Speaker 1: gotta you canna understand, like, these are players of our 167 00:08:53,600 --> 00:08:56,600 Speaker 1: game of Overwatch who who play you know, a couple 168 00:08:56,679 --> 00:09:00,680 Speaker 1: hours a day on average, who uh love this game 169 00:09:01,440 --> 00:09:05,080 Speaker 1: as not just you know, recreation or um even like 170 00:09:05,160 --> 00:09:08,480 Speaker 1: social life, but as part of their identity and the 171 00:09:08,480 --> 00:09:11,080 Speaker 1: opportunity to come out in a major event like this 172 00:09:11,120 --> 00:09:13,559 Speaker 1: with and be around thousands of other people who love 173 00:09:13,640 --> 00:09:17,439 Speaker 1: the game and the sport and a team as much 174 00:09:17,440 --> 00:09:19,800 Speaker 1: as they do. Um. It's something that they look forward 175 00:09:19,840 --> 00:09:22,160 Speaker 1: to all year and so when they get there, um 176 00:09:22,240 --> 00:09:26,040 Speaker 1: they're just ready to party, uh and and watch the event. 177 00:09:26,360 --> 00:09:29,240 Speaker 1: Give me a little idea about the dollars involved in 178 00:09:29,360 --> 00:09:33,160 Speaker 1: this event from a sponsorship from merch, from food and BEV. 179 00:09:33,520 --> 00:09:36,080 Speaker 1: What's the breakdown and what are we looking at? Well, 180 00:09:36,840 --> 00:09:41,719 Speaker 1: you know, major event for sure. We've we've managed, i think, 181 00:09:41,720 --> 00:09:44,760 Speaker 1: in a short time to secure um a great roster 182 00:09:44,840 --> 00:09:47,480 Speaker 1: of what we call non endemic sponsors, right sponsors that 183 00:09:47,480 --> 00:09:50,680 Speaker 1: are not uh kind of native to the e sports 184 00:09:50,720 --> 00:09:54,880 Speaker 1: space or even the gaming space. But who are traditionally 185 00:09:55,120 --> 00:09:58,600 Speaker 1: investors in traditional in in sports because they're non endemic, 186 00:09:58,679 --> 00:10:01,720 Speaker 1: Do they need more stants from you? I mean, imagine 187 00:10:01,720 --> 00:10:04,480 Speaker 1: it's a different audience, it's a different message, it's it's 188 00:10:04,480 --> 00:10:07,440 Speaker 1: a different relationship that they're just not well versed in. 189 00:10:07,920 --> 00:10:10,160 Speaker 1: What sort of things do they need from you? They 190 00:10:10,160 --> 00:10:13,640 Speaker 1: need the audience? Um, and you know that that that's 191 00:10:13,640 --> 00:10:17,160 Speaker 1: what makes uh, what makes these sports unique. You know, 192 00:10:17,600 --> 00:10:20,200 Speaker 1: the structure of our league looks a lot like traditional sports, 193 00:10:20,400 --> 00:10:24,880 Speaker 1: right Like we have permanent franchise owners. We are city based, 194 00:10:25,440 --> 00:10:30,880 Speaker 1: um we uh you know, we share revenue between Every 195 00:10:30,880 --> 00:10:33,680 Speaker 1: dollar of le revenue gets shared with with the teams. 196 00:10:34,160 --> 00:10:37,040 Speaker 1: Um we uh you know we look, we've designed a 197 00:10:37,120 --> 00:10:39,840 Speaker 1: structure really for the first time in the sport that 198 00:10:39,960 --> 00:10:44,520 Speaker 1: looks familiar to uh an investor in traditional sports. And 199 00:10:44,520 --> 00:10:46,600 Speaker 1: when I say investor, that could you know, that could 200 00:10:46,600 --> 00:10:49,320 Speaker 1: be an owner, that could be a brand, that could 201 00:10:49,320 --> 00:10:52,160 Speaker 1: be a media company, it could be a licensee. That 202 00:10:52,280 --> 00:10:54,840 Speaker 1: was by design, right, we wanted to create a structure 203 00:10:54,920 --> 00:10:59,520 Speaker 1: that uh that somebody who has spent the last twenty 204 00:10:59,600 --> 00:11:03,120 Speaker 1: years uh investing alongside traditional sports could look at and 205 00:11:03,120 --> 00:11:06,720 Speaker 1: say like, look, I don't totally understand these sports. Um, 206 00:11:06,840 --> 00:11:09,120 Speaker 1: when I look at it, it sort of confuses me. 207 00:11:09,200 --> 00:11:12,160 Speaker 1: But I know the audience is there. I know they're young, um, 208 00:11:13,000 --> 00:11:15,559 Speaker 1: and this is a structure that actually looks familiar that 209 00:11:15,600 --> 00:11:17,760 Speaker 1: I can get comfortable investing in. Give us a sense 210 00:11:17,760 --> 00:11:19,000 Speaker 1: of some of the big names. I mean that the 211 00:11:19,000 --> 00:11:21,079 Speaker 1: Sterlings who own the Mets, the Cronkis who own the 212 00:11:21,200 --> 00:11:22,920 Speaker 1: l A Rams. Give us a sense of all the 213 00:11:23,120 --> 00:11:25,920 Speaker 1: sports team owners that are involved in Overwatch League for sure. 214 00:11:25,960 --> 00:11:27,800 Speaker 1: I mean you mentioned a couple of them. You know, 215 00:11:27,840 --> 00:11:31,040 Speaker 1: the Crafts on our Boston team. We're here in Philly 216 00:11:31,559 --> 00:11:35,959 Speaker 1: where Comcast Spectacres owns our Philadelphia team. I mean, the 217 00:11:36,320 --> 00:11:40,960 Speaker 1: owners from the Sacramento Kings, in Miami Heat, or Lando Magic, um, 218 00:11:41,000 --> 00:11:44,160 Speaker 1: you know the Texas Rangers. Like it's actually a very 219 00:11:44,200 --> 00:11:47,839 Speaker 1: long list of traditional sports team owners who have made 220 00:11:47,840 --> 00:11:51,280 Speaker 1: this either they're they're only bet in e sports or 221 00:11:51,280 --> 00:11:53,520 Speaker 1: one of their bets in the sports. Again, we think 222 00:11:53,559 --> 00:11:57,079 Speaker 1: because we've designed the structure that looks familiar and that 223 00:11:57,400 --> 00:12:00,160 Speaker 1: they were able to get comfortable with brands too, right, 224 00:12:00,200 --> 00:12:03,680 Speaker 1: brands too, And so you ask what these non endemic 225 00:12:03,679 --> 00:12:07,120 Speaker 1: brands need from us. You know, if you're a brand 226 00:12:07,160 --> 00:12:11,240 Speaker 1: that has been investing alongside traditional sports leagues, you love 227 00:12:11,360 --> 00:12:15,160 Speaker 1: the format. You love you're convinced that competitive entertainment is 228 00:12:15,200 --> 00:12:18,080 Speaker 1: the best format of entertainment in the world. You know, 229 00:12:18,080 --> 00:12:22,199 Speaker 1: it's live, it's unpredictable, you know that there's the thrill 230 00:12:22,240 --> 00:12:25,160 Speaker 1: of victory in the agony of defeat. If you're bought 231 00:12:25,200 --> 00:12:28,439 Speaker 1: into the idea that sports is a great investment as 232 00:12:28,440 --> 00:12:32,120 Speaker 1: a brand. But you're trying to reach a young audience. 233 00:12:32,160 --> 00:12:34,480 Speaker 1: You know, our average fan is twenty one. You're trying 234 00:12:34,480 --> 00:12:36,480 Speaker 1: to reach a global audience. You know, we're the first 235 00:12:36,559 --> 00:12:39,560 Speaker 1: league in any sport really that that's truly global. Um. 236 00:12:39,600 --> 00:12:41,640 Speaker 1: There are the global sports, but where the We're the 237 00:12:41,640 --> 00:12:46,640 Speaker 1: first global league where you know, Shanghai plays, Dallas plays um, 238 00:12:46,679 --> 00:12:49,640 Speaker 1: you know Paris UM. And we're digital native. You know, 239 00:12:49,640 --> 00:12:53,360 Speaker 1: we're not kind of constrained by the audience of the 240 00:12:53,880 --> 00:12:57,640 Speaker 1: paid television ecosystem. Um, We're going to direct the consumer 241 00:12:58,080 --> 00:13:02,959 Speaker 1: uh uh, you know on on digital platforms as a 242 00:13:03,040 --> 00:13:06,440 Speaker 1: primary way of reaching fans. Those are all things like young, 243 00:13:06,559 --> 00:13:08,760 Speaker 1: global and digital native are all things that I think 244 00:13:08,800 --> 00:13:12,679 Speaker 1: every other sport is is trying to become more of UM. 245 00:13:12,720 --> 00:13:15,120 Speaker 1: You know, the sports is already there. So whether you're 246 00:13:15,120 --> 00:13:18,440 Speaker 1: an owner or brand, or you know, a media company 247 00:13:18,440 --> 00:13:22,280 Speaker 1: trying to age down or licensee trying to sell you know, 248 00:13:22,400 --> 00:13:25,920 Speaker 1: cool merch, you know, the sports is pretty good fit. Pete. 249 00:13:26,000 --> 00:13:28,640 Speaker 1: Let's talk more about the owners in Overwatch League. Earlier 250 00:13:28,679 --> 00:13:31,720 Speaker 1: you mentioned the Crafts who owned the New England Patriots. Obviously, 251 00:13:32,000 --> 00:13:34,120 Speaker 1: you know you have a whole host of traditional sports 252 00:13:34,160 --> 00:13:37,880 Speaker 1: owners in there, the New York Mets, the Vancouver Canucks, 253 00:13:37,960 --> 00:13:40,199 Speaker 1: you have you know, Stan Cronki, the billionaire owner of 254 00:13:40,240 --> 00:13:42,640 Speaker 1: the l A Rams. What are those owners learning from 255 00:13:42,640 --> 00:13:46,240 Speaker 1: the sports about reaching new audiences and a new digital medium. Yeah. 256 00:13:46,240 --> 00:13:48,800 Speaker 1: You know, it's funny when going into the first season, 257 00:13:49,120 --> 00:13:54,360 Speaker 1: I think there was a a suspicion that because we 258 00:13:54,559 --> 00:13:57,760 Speaker 1: didn't just sell franchises to traditional sports owners, we also 259 00:13:58,360 --> 00:14:01,680 Speaker 1: had some groups UM as part of that first cohort 260 00:14:01,800 --> 00:14:06,320 Speaker 1: who were endemic E sports organizations, right who Some of 261 00:14:06,320 --> 00:14:10,920 Speaker 1: them had investments from UM, from sports teams UM, but 262 00:14:11,600 --> 00:14:14,960 Speaker 1: really they were kind of startup or or relatively young 263 00:14:15,600 --> 00:14:18,840 Speaker 1: UH companies designed to just run E sports teams. And 264 00:14:19,640 --> 00:14:23,280 Speaker 1: you know, I think the fans in general going into 265 00:14:23,320 --> 00:14:27,640 Speaker 1: season one, I think thought that that the you know, 266 00:14:27,720 --> 00:14:30,720 Speaker 1: the the Croppys and the and the Comcasts and the 267 00:14:30,840 --> 00:14:34,400 Speaker 1: and the Crafts. Um, we're going to be at a disadvantage, 268 00:14:34,800 --> 00:14:37,440 Speaker 1: um because they, you know, might not know how to 269 00:14:37,440 --> 00:14:41,280 Speaker 1: put a team together. UM, might not know what motivates um. 270 00:14:41,320 --> 00:14:43,760 Speaker 1: You know fans in this category. I turned out to 271 00:14:43,800 --> 00:14:46,760 Speaker 1: not be true though, UM. You know last year, Uh, 272 00:14:46,840 --> 00:14:50,080 Speaker 1: Philadelphia Fusion we're in. We're in the grand finals. Um. 273 00:14:50,120 --> 00:14:53,160 Speaker 1: You know, team owned by by Comcast and Massive Public Company. 274 00:14:53,640 --> 00:14:58,280 Speaker 1: UM that had you know, not much, if any sports 275 00:14:58,320 --> 00:15:01,800 Speaker 1: experience prior. Um, but they knew how to run sports teams, right. 276 00:15:01,840 --> 00:15:04,440 Speaker 1: They knew the importance of going on and finding a 277 00:15:04,440 --> 00:15:09,280 Speaker 1: great GM who understood where to find the best players. Um. 278 00:15:09,720 --> 00:15:12,480 Speaker 1: That's where you start, you know, in any sport. But 279 00:15:12,560 --> 00:15:15,400 Speaker 1: whether it's the sports or or you know, cricket. I 280 00:15:15,400 --> 00:15:18,920 Speaker 1: think if you're if you're if you're attracting great players 281 00:15:18,920 --> 00:15:22,320 Speaker 1: and winning games, you're gonna bring fans in. Pete old 282 00:15:22,320 --> 00:15:25,320 Speaker 1: man bar is gonna slow the show down because his youngest, 283 00:15:25,440 --> 00:15:29,200 Speaker 1: fourteen year old son just started high school. By the way, evident, 284 00:15:29,240 --> 00:15:31,080 Speaker 1: I had a bet whether your first question would include 285 00:15:31,080 --> 00:15:37,000 Speaker 1: your fourteen year old son, that's that's my goal to guy. Yeah, 286 00:15:38,000 --> 00:15:40,640 Speaker 1: we both did. Nobody nobody can take the note. He 287 00:15:40,840 --> 00:15:43,480 Speaker 1: told me that in his high school. We just started 288 00:15:43,840 --> 00:15:47,720 Speaker 1: that at once. He was he's playing Rocket League and 289 00:15:47,760 --> 00:15:50,360 Speaker 1: I said, look, man, you gotta do your homework. He said, Dad, 290 00:15:50,760 --> 00:15:53,400 Speaker 1: we have a league now where I'm trying to get 291 00:15:53,440 --> 00:15:56,960 Speaker 1: on the team in high school for Rocket League. And 292 00:15:57,000 --> 00:15:59,320 Speaker 1: I told him then to drive it like you stole it. 293 00:15:59,640 --> 00:16:03,120 Speaker 1: So I'm wondering now it was he gaming as old man, 294 00:16:03,280 --> 00:16:05,160 Speaker 1: or is this something that's going on in high school 295 00:16:07,760 --> 00:16:09,200 Speaker 1: if you want to say, Dad, I need a hundred 296 00:16:09,240 --> 00:16:14,200 Speaker 1: bucks in the old man. I can't promise you that 297 00:16:14,280 --> 00:16:17,040 Speaker 1: his high school has the Rocket League team, but I 298 00:16:17,080 --> 00:16:18,800 Speaker 1: think there's a there's a good chance that if he 299 00:16:18,880 --> 00:16:21,600 Speaker 1: told you that. And I don't know your son, but 300 00:16:21,600 --> 00:16:23,640 Speaker 1: it sounds like the high school may have a Rocket 301 00:16:23,680 --> 00:16:25,880 Speaker 1: League team. And what I would say is, you know, 302 00:16:26,760 --> 00:16:30,360 Speaker 1: like I I would treat that um that interest in 303 00:16:30,400 --> 00:16:32,480 Speaker 1: the same way as I would treat interest in you know, 304 00:16:32,960 --> 00:16:35,320 Speaker 1: the lacrosse team, or the swim team or or or 305 00:16:35,520 --> 00:16:38,560 Speaker 1: you know, the baseball team. I mean, I think he's right, 306 00:16:38,640 --> 00:16:42,600 Speaker 1: like there there is a new layer of the gaming 307 00:16:43,440 --> 00:16:47,600 Speaker 1: U World. Now that is much more serious and competitive 308 00:16:47,640 --> 00:16:50,240 Speaker 1: than what you know what a lot of us remember 309 00:16:50,280 --> 00:16:54,040 Speaker 1: from when when we were kids. Um and and you 310 00:16:54,080 --> 00:16:56,080 Speaker 1: know that plays out at the highest level through events 311 00:16:56,160 --> 00:16:58,960 Speaker 1: like like you know, the one we're hosting this weekend 312 00:16:58,960 --> 00:17:02,200 Speaker 1: in Philly. But uh, even as you go kind of 313 00:17:02,280 --> 00:17:07,200 Speaker 1: down that path to pro um EC players, UM just 314 00:17:07,200 --> 00:17:10,760 Speaker 1: approaching gaming much more like a like a like a 315 00:17:10,800 --> 00:17:14,560 Speaker 1: traditional sport than than like a you know, a mindless hobby. Okay, 316 00:17:14,640 --> 00:17:16,200 Speaker 1: wait all the pete I want to jump into serious 317 00:17:16,280 --> 00:17:17,720 Speaker 1: let me let me jump in because I have a 318 00:17:17,720 --> 00:17:19,560 Speaker 1: ten year old and I'm curious do you think that 319 00:17:19,640 --> 00:17:23,119 Speaker 1: message is getting through because from what I see from 320 00:17:23,200 --> 00:17:26,240 Speaker 1: my son and his friends, I think it lends lends 321 00:17:26,240 --> 00:17:28,760 Speaker 1: itself more towards the I'm just sitting here with the 322 00:17:28,800 --> 00:17:31,120 Speaker 1: cheetos and playing. I don't know what the aspirations are 323 00:17:31,160 --> 00:17:33,720 Speaker 1: whether to reach the highest level, but there is a 324 00:17:33,800 --> 00:17:36,080 Speaker 1: real thing about the addiction to the video games where 325 00:17:36,119 --> 00:17:38,640 Speaker 1: kids are just doing it all the time. Yeah. Look, 326 00:17:38,680 --> 00:17:42,680 Speaker 1: I I don't think that's I think what you're pointing 327 00:17:42,680 --> 00:17:45,520 Speaker 1: out of it. Not every kid is going to aspire 328 00:17:45,600 --> 00:17:48,840 Speaker 1: to be the best. And I think that's true in 329 00:17:48,880 --> 00:17:55,000 Speaker 1: any sport um and certainly it's possible to to play uh, 330 00:17:55,040 --> 00:17:57,840 Speaker 1: you know, games casually, and a lot of people do 331 00:17:57,960 --> 00:18:02,120 Speaker 1: play our games casually. I'm not suggesting that that we're 332 00:18:02,160 --> 00:18:06,240 Speaker 1: sort of changing the the the audience's mind wholesale, but 333 00:18:06,320 --> 00:18:10,159 Speaker 1: I do think by propping up examples of of what 334 00:18:10,280 --> 00:18:13,320 Speaker 1: it takes to be the best, we're going to capture. 335 00:18:13,359 --> 00:18:17,199 Speaker 1: We're gonna we're gonna give those kids who who you 336 00:18:17,760 --> 00:18:21,640 Speaker 1: do have the inclination to treat, uh, to treat their 337 00:18:21,720 --> 00:18:25,840 Speaker 1: their hobby is more than a hobby, a realistic uh 338 00:18:26,000 --> 00:18:28,880 Speaker 1: way to aspire to to to bring it into into 339 00:18:28,880 --> 00:18:32,320 Speaker 1: some other, some other area. Puts this earlier, there's something 340 00:18:32,320 --> 00:18:34,800 Speaker 1: big happening for Overwatch League next year. Teams that have 341 00:18:34,920 --> 00:18:37,640 Speaker 1: been based in l A since their inception are now 342 00:18:37,680 --> 00:18:39,520 Speaker 1: going to head out next year and go to their 343 00:18:39,560 --> 00:18:42,760 Speaker 1: separate cities. You know, that's Shanghai, that's Paris, that's Dallas, 344 00:18:42,800 --> 00:18:45,000 Speaker 1: that's New York. How do the economics for owners in 345 00:18:45,000 --> 00:18:47,440 Speaker 1: the league's change when people aren't sitting across the studio 346 00:18:47,480 --> 00:18:50,720 Speaker 1: a lot from each other now that they're thousand miles away. Sure, 347 00:18:50,720 --> 00:18:55,040 Speaker 1: and well, you know, as I mentioned, the division for 348 00:18:55,320 --> 00:18:58,880 Speaker 1: this league have always been UM to be in home markets, 349 00:18:59,280 --> 00:19:01,560 Speaker 1: and we spent the is two years playing most of 350 00:19:01,560 --> 00:19:04,359 Speaker 1: our regular season matches in Los Angeles, and that was 351 00:19:04,359 --> 00:19:07,080 Speaker 1: really to give the league and the team's time to 352 00:19:07,119 --> 00:19:11,320 Speaker 1: get ready for season when when when we're going home. 353 00:19:11,359 --> 00:19:13,840 Speaker 1: In a way, part of the reason that the vision 354 00:19:14,359 --> 00:19:16,960 Speaker 1: from the beginning was to be in home markets was 355 00:19:17,040 --> 00:19:21,640 Speaker 1: that once you're in home markets, UM, there are streams 356 00:19:21,680 --> 00:19:24,639 Speaker 1: of revenue that get unlocked that are the like blood 357 00:19:24,640 --> 00:19:28,320 Speaker 1: of many traditional sports. So I'm talking about ticket sales 358 00:19:28,680 --> 00:19:33,359 Speaker 1: and local sponsorship UM. Local UM, you know, merchandise sales 359 00:19:34,240 --> 00:19:38,160 Speaker 1: that have never really been part of the sports because 360 00:19:38,160 --> 00:19:43,120 Speaker 1: there have never been locally sports teams UM. But the 361 00:19:43,160 --> 00:19:46,000 Speaker 1: traditional sports teams depend on these these streams of revenue. 362 00:19:46,000 --> 00:19:49,359 Speaker 1: Those really haven't been unlocked yet because we're not in 363 00:19:49,440 --> 00:19:53,320 Speaker 1: home markets set. So next year, you know, we'll start 364 00:19:53,359 --> 00:19:56,720 Speaker 1: to see teams UM selling tickets, selling season tickets, selling 365 00:19:56,760 --> 00:20:02,520 Speaker 1: VIP packages, bringing sponsors in to act giving around the events. UM. 366 00:20:02,600 --> 00:20:05,440 Speaker 1: And we think the revenue story gets a lot better 367 00:20:05,520 --> 00:20:08,159 Speaker 1: for our teams next year. How do you think about 368 00:20:08,200 --> 00:20:10,439 Speaker 1: sharing that revene? I mean, the NFL, you know, all 369 00:20:10,480 --> 00:20:13,480 Speaker 1: these other you know, big established traditional sports leagues, share 370 00:20:13,520 --> 00:20:15,240 Speaker 1: their revenue in ways that you know, if if the 371 00:20:15,240 --> 00:20:17,199 Speaker 1: team in Dallas, the NFL team in Dallas makes a 372 00:20:17,200 --> 00:20:20,119 Speaker 1: ton more money locally than you know, the team in Jacksonville, 373 00:20:20,200 --> 00:20:23,320 Speaker 1: they share that. What happens when, if you know, the 374 00:20:23,359 --> 00:20:26,439 Speaker 1: Shanghai Dragons in the Overwatch League are suddenly bringing in 375 00:20:26,480 --> 00:20:30,680 Speaker 1: ten times locally for all these reasons, ticket sales, local sponsorships, etcetera, 376 00:20:30,920 --> 00:20:32,919 Speaker 1: ten times more than than the Titans are doing up 377 00:20:32,920 --> 00:20:37,440 Speaker 1: in Vancouver. Yea, So a couple of things. They're one 378 00:20:37,640 --> 00:20:42,280 Speaker 1: that the league is responsible for driving UM revenue in 379 00:20:42,560 --> 00:20:47,199 Speaker 1: the form of global sponsorship, global media rights, UM, you know, 380 00:20:47,240 --> 00:20:50,640 Speaker 1: global merch sales, those kinds of things. So that that's 381 00:20:50,760 --> 00:20:54,520 Speaker 1: league controlled and league driven revenue that gets spread, that 382 00:20:54,600 --> 00:20:58,240 Speaker 1: gets split evenly with each of the teams UM, and 383 00:20:58,280 --> 00:21:00,919 Speaker 1: so no team gets a bigger share than the others 384 00:21:01,080 --> 00:21:05,719 Speaker 1: of the revenue that the league drives. Local revenue, however, 385 00:21:06,480 --> 00:21:10,080 Speaker 1: is a different story. So UH, the revenue that a 386 00:21:10,119 --> 00:21:13,760 Speaker 1: local team is able to generate, UH stays with with 387 00:21:13,840 --> 00:21:16,000 Speaker 1: the team. Pete, A lot of your games are our 388 00:21:16,119 --> 00:21:20,600 Speaker 1: gun associated your thoughts of what's going on in society now? 389 00:21:21,320 --> 00:21:24,040 Speaker 1: Is there any fear at all that there will be 390 00:21:24,080 --> 00:21:27,679 Speaker 1: backlash against shooter games, parents not wanting their kids to 391 00:21:27,720 --> 00:21:30,920 Speaker 1: participate in finding something else to do. UM. You know, look, 392 00:21:31,200 --> 00:21:33,560 Speaker 1: this is a topic that's been around for a while, 393 00:21:33,640 --> 00:21:38,560 Speaker 1: I guess, and UM comes up from time to time. Unfortunately, UM, 394 00:21:38,960 --> 00:21:42,320 Speaker 1: I think you know Overwatch. We're focused on Overwatch now. 395 00:21:42,480 --> 00:21:46,040 Speaker 1: I mean Overwatch is a it's a family friendly game. 396 00:21:46,080 --> 00:21:48,480 Speaker 1: It's it's a rated team for team game, not a 397 00:21:48,520 --> 00:21:52,919 Speaker 1: mature game. UM. It is. Um. It's a kind of 398 00:21:52,920 --> 00:21:56,160 Speaker 1: first person action game. UM. And there are some guns 399 00:21:56,160 --> 00:21:59,520 Speaker 1: in the game. But if you spending time playing the 400 00:21:59,560 --> 00:22:04,320 Speaker 1: game or and just looking at the art, it's a 401 00:22:04,400 --> 00:22:08,640 Speaker 1: very sort of fantasy based game. It's bright, colorful, optimistic. 402 00:22:08,960 --> 00:22:11,800 Speaker 1: You know, half of the the heroes in the game 403 00:22:11,840 --> 00:22:16,399 Speaker 1: are a female. Um. You know, there's there's heroes from 404 00:22:16,440 --> 00:22:19,320 Speaker 1: all over the world in the game. So diversity inclusion 405 00:22:19,440 --> 00:22:21,320 Speaker 1: is very much kind of built into the game. We 406 00:22:21,320 --> 00:22:24,600 Speaker 1: think there's so many positive messages that are baked into 407 00:22:24,680 --> 00:22:28,159 Speaker 1: the game itself. Uh, combined the fact that you know, 408 00:22:28,400 --> 00:22:32,800 Speaker 1: the action in the game is not terribly realistic. Um. 409 00:22:32,840 --> 00:22:35,320 Speaker 1: That you know, this game is sort of in a 410 00:22:35,359 --> 00:22:39,840 Speaker 1: different category when it comes to the conversation about about violence. 411 00:22:40,000 --> 00:22:42,679 Speaker 1: Pete one other question that we often ask investors, And 412 00:22:42,720 --> 00:22:44,560 Speaker 1: we had Mark Iron on the show a couple of 413 00:22:44,560 --> 00:22:46,760 Speaker 1: weeks ago, and then we asked him as well, you know, 414 00:22:47,359 --> 00:22:49,879 Speaker 1: investors in traditional sports, one thing they don't really need 415 00:22:49,920 --> 00:22:52,119 Speaker 1: to worry about, at least in the short term, is 416 00:22:52,240 --> 00:22:54,840 Speaker 1: the sport going out of favor. In ten years, people 417 00:22:54,840 --> 00:22:58,000 Speaker 1: will still be playing basketball, They'll still be playing football. Uh, 418 00:22:58,040 --> 00:23:00,159 Speaker 1: it's not quite the same kind of come for it. 419 00:23:00,200 --> 00:23:02,760 Speaker 1: I think for a lot of e sports investments. How 420 00:23:02,760 --> 00:23:05,560 Speaker 1: do you guys make sure that Overwatch is still being 421 00:23:05,600 --> 00:23:09,080 Speaker 1: played in popular in ten years and in the you know, 422 00:23:09,160 --> 00:23:12,080 Speaker 1: disaster case scenario where it's not what happens to kind 423 00:23:12,080 --> 00:23:14,760 Speaker 1: of all the infrastructure that you guys have built around 424 00:23:14,760 --> 00:23:19,000 Speaker 1: Overwatch League. Yeah, you know, it's interesting that that question 425 00:23:19,040 --> 00:23:22,119 Speaker 1: comes up, and I think it's because, you know, if 426 00:23:22,119 --> 00:23:25,879 Speaker 1: you look at the gaming industry broadly, there are a 427 00:23:25,880 --> 00:23:29,840 Speaker 1: lot of games that kind of come into fashion, um 428 00:23:29,920 --> 00:23:32,160 Speaker 1: for you know, six months or a year, or two 429 00:23:32,240 --> 00:23:36,040 Speaker 1: years or three years, and then kind of go away. Um. 430 00:23:36,400 --> 00:23:38,800 Speaker 1: And you know, if you look at the companies that 431 00:23:38,880 --> 00:23:41,520 Speaker 1: make those games, like that's sort of by design, Like 432 00:23:41,600 --> 00:23:45,240 Speaker 1: there they're in the business of finding that hit and 433 00:23:45,240 --> 00:23:47,520 Speaker 1: writing it as long as they can and then moving 434 00:23:47,560 --> 00:23:51,000 Speaker 1: on to hopefully find the next hit. UM. That's that's 435 00:23:51,000 --> 00:23:54,200 Speaker 1: not the business that that our companies in. And I'm 436 00:23:54,240 --> 00:23:56,200 Speaker 1: not just saying that. You can look at our portfolio 437 00:23:56,320 --> 00:23:59,560 Speaker 1: and Call of Duty has been around for a fifteen 438 00:23:59,600 --> 00:24:02,359 Speaker 1: years of the Warcraft has been around for you know, 439 00:24:02,480 --> 00:24:05,639 Speaker 1: I think that long or even longer. Um. You know, 440 00:24:05,960 --> 00:24:13,080 Speaker 1: Overwatches is our youngest new title. UM. But our our 441 00:24:13,320 --> 00:24:16,760 Speaker 1: our plan, based on our model and how we how 442 00:24:16,800 --> 00:24:19,919 Speaker 1: we operate all of our franchises, is to keep it 443 00:24:20,320 --> 00:24:24,040 Speaker 1: um relevant as a game for a very very long time. 444 00:24:24,480 --> 00:24:27,320 Speaker 1: Also say that you have to look at the competitive 445 00:24:27,359 --> 00:24:29,800 Speaker 1: depth of a game anytime you're sort of making a 446 00:24:29,880 --> 00:24:33,080 Speaker 1: bet on how long it's it's gonna last. And by 447 00:24:33,119 --> 00:24:36,080 Speaker 1: competitive depth, I mean like the more you play it, 448 00:24:36,160 --> 00:24:38,600 Speaker 1: the more fun it gets. UM. Not all games are 449 00:24:38,640 --> 00:24:40,320 Speaker 1: like that, right. There are a lot of games that 450 00:24:40,359 --> 00:24:43,600 Speaker 1: you master pretty quickly or you beat the game, um 451 00:24:43,800 --> 00:24:47,560 Speaker 1: and you're onto the next one. UM. A game like Overwatch, 452 00:24:47,720 --> 00:24:50,679 Speaker 1: or really any game that's successful as any sport title 453 00:24:51,240 --> 00:24:54,159 Speaker 1: is a lot more like you know, basketball or chess, 454 00:24:54,440 --> 00:24:56,600 Speaker 1: or you know a game that maybe it's easy to learn, 455 00:24:56,720 --> 00:24:58,960 Speaker 1: but it's going to take you a long time to master. 456 00:24:59,080 --> 00:25:02,040 Speaker 1: And as a result of that, there are definitely some 457 00:25:02,080 --> 00:25:03,840 Speaker 1: people who are the best in the world of the game. 458 00:25:03,920 --> 00:25:06,320 Speaker 1: Who the people who aren't the best. I can look 459 00:25:06,359 --> 00:25:09,399 Speaker 1: at and go, oh, that I just did something I 460 00:25:09,400 --> 00:25:13,200 Speaker 1: could never do. And the bar goes up every year 461 00:25:13,280 --> 00:25:16,080 Speaker 1: because every year people are investing more time and getting 462 00:25:16,080 --> 00:25:18,240 Speaker 1: better and better at the game. It turns out it's 463 00:25:18,280 --> 00:25:20,720 Speaker 1: really hard to make a game like that, by the way, 464 00:25:20,840 --> 00:25:23,600 Speaker 1: but Overwatching is one of those games, and if you 465 00:25:23,680 --> 00:25:25,600 Speaker 1: make a game like that, it's not going to go 466 00:25:25,640 --> 00:25:29,240 Speaker 1: away in a few years. Well, you've given me an education, Pete. 467 00:25:29,280 --> 00:25:33,800 Speaker 1: Thank you, Pete Lostelica. You are the CEO of Activision 468 00:25:33,840 --> 00:25:38,440 Speaker 1: Blizzards e Sports Unit, and I'm excited. Hey, I knew 469 00:25:38,440 --> 00:25:40,600 Speaker 1: what Rocket League was. I'm proud of myself you brought 470 00:25:40,680 --> 00:25:43,399 Speaker 1: Rocket League. That doesn't stop you from getting fleeced by 471 00:25:43,400 --> 00:25:46,960 Speaker 1: your son than you for you, Pete, Thank you, sir. 472 00:25:47,000 --> 00:25:49,200 Speaker 1: We appreciate it all right, Thanks a lot, guys. I 473 00:25:49,280 --> 00:25:52,800 Speaker 1: appreciate time. Thanks Pete. You know what, guys, my fourteen 474 00:25:52,880 --> 00:25:55,320 Speaker 1: year old son might be onto something. You have a 475 00:25:55,320 --> 00:25:59,359 Speaker 1: fourteen year old Yes I do, Hi, John, and he 476 00:25:59,520 --> 00:26:03,240 Speaker 1: is trying out for the sports team, when do we 477 00:26:03,240 --> 00:26:05,359 Speaker 1: find out if he makes it. I will find out 478 00:26:05,400 --> 00:26:07,480 Speaker 1: in about a couple of months, a couple of months, 479 00:26:07,480 --> 00:26:09,720 Speaker 1: a couple of months, because he's got a practice, because 480 00:26:09,760 --> 00:26:12,680 Speaker 1: that's when the tryouts out. Oh my god. Again, for me, Evan, 481 00:26:13,119 --> 00:26:16,280 Speaker 1: it's all about where are we headed on this? And 482 00:26:17,119 --> 00:26:20,280 Speaker 1: for that I looked to the leaders and the investors, 483 00:26:21,160 --> 00:26:23,680 Speaker 1: and when you tell me Cronky's there, when you tell 484 00:26:23,720 --> 00:26:26,240 Speaker 1: me the Acquilinis are there, when you tell me the 485 00:26:26,320 --> 00:26:30,520 Speaker 1: Mets are there, and Harris Blitzer, I I gotta believe 486 00:26:30,560 --> 00:26:33,640 Speaker 1: that these folks are going to figure it out. And 487 00:26:33,800 --> 00:26:36,000 Speaker 1: whether it busts is a is a really interesting question. 488 00:26:36,000 --> 00:26:37,800 Speaker 1: And I thought his answer right at the end there 489 00:26:37,840 --> 00:26:41,560 Speaker 1: about how you keep Overwatch League relevant? Is that's top 490 00:26:41,560 --> 00:26:44,439 Speaker 1: of mind for especially for you know, a game like 491 00:26:44,520 --> 00:26:47,280 Speaker 1: Overwatch that came out two years ago. Now you know, 492 00:26:47,520 --> 00:26:49,440 Speaker 1: if that turns into the next League of Legends, which 493 00:26:49,440 --> 00:26:51,920 Speaker 1: is turning ten this year and is arguably more popular 494 00:26:51,960 --> 00:26:54,480 Speaker 1: than ever, this is a huge success for them. If 495 00:26:54,480 --> 00:26:56,840 Speaker 1: that turns into a game that you don't remember because 496 00:26:56,920 --> 00:26:59,320 Speaker 1: it lasted for three years and people kids stopped playing it, 497 00:26:59,760 --> 00:27:03,360 Speaker 1: that's bad. But but his idea that Overwatch League can 498 00:27:03,359 --> 00:27:06,159 Speaker 1: play a central point in keeping the game relevant because 499 00:27:06,280 --> 00:27:09,560 Speaker 1: not only just kids playing it, but also watching professional 500 00:27:09,560 --> 00:27:11,960 Speaker 1: teams play it. And and and this whole city based model. 501 00:27:12,359 --> 00:27:14,280 Speaker 1: I think that's really interesting and and and you know, 502 00:27:14,640 --> 00:27:16,440 Speaker 1: the next couple of years will bear that if most 503 00:27:16,480 --> 00:27:18,920 Speaker 1: of the kids are obsessive like mine and they see 504 00:27:18,960 --> 00:27:21,440 Speaker 1: somebody do something that they can't do and they want 505 00:27:21,440 --> 00:27:24,000 Speaker 1: to get to a little higher score than it bodes 506 00:27:24,000 --> 00:27:26,159 Speaker 1: well because my kid will just keep striving. And this, 507 00:27:26,400 --> 00:27:28,919 Speaker 1: you know, this grand finale this weekend, three o'clock on 508 00:27:28,920 --> 00:27:30,879 Speaker 1: Sunday on ABC, So you know, this is going to 509 00:27:30,920 --> 00:27:34,080 Speaker 1: reach a wider audience than most e sports events do. 510 00:27:34,440 --> 00:27:39,480 Speaker 1: And we'll see where that shakes out. Feels better to 511 00:27:39,480 --> 00:27:41,480 Speaker 1: be number one than number five. I'll wear a number 512 00:27:41,480 --> 00:27:43,080 Speaker 1: because of Mike. We have a chance to go for 513 00:27:43,080 --> 00:27:44,800 Speaker 1: three in a row. Kids numbers in a good time. 514 00:27:44,840 --> 00:27:46,919 Speaker 1: And I first started wearing the number, how would just 515 00:27:46,960 --> 00:27:51,000 Speaker 1: have they Floomberg? Business of sports? The number of the week, 516 00:27:51,440 --> 00:27:54,520 Speaker 1: the number of the week. I'm trying to word this 517 00:27:54,680 --> 00:27:57,000 Speaker 1: so that I don't give too much away. It's the 518 00:27:57,040 --> 00:28:06,880 Speaker 1: Detroit Lions. The Detroit Lions. Let's just discuss it. They'ved 519 00:28:06,920 --> 00:28:11,200 Speaker 1: it for you nineteen sixty two. The number is the 520 00:28:11,280 --> 00:28:15,680 Speaker 1: last time this happened. Go ahead, just just let's undefeated 521 00:28:15,720 --> 00:28:23,959 Speaker 1: through three games, but playing a team that's also undefeated. Well, well, now, okay, 522 00:28:24,440 --> 00:28:28,199 Speaker 1: it's the yes, that's the answer. Another question. There was 523 00:28:28,280 --> 00:28:31,119 Speaker 1: no mystery to this one at all. The Lions are 524 00:28:31,200 --> 00:28:34,720 Speaker 1: two oh and one. That counts. They are undefeated, yes, 525 00:28:35,000 --> 00:28:38,480 Speaker 1: and they're playing the Chiefs three and oh yes, so 526 00:28:38,560 --> 00:28:40,560 Speaker 1: it's the longest Like, this is the first time since 527 00:28:40,560 --> 00:28:43,960 Speaker 1: when sixty two, this late in the season that a 528 00:28:43,960 --> 00:28:46,400 Speaker 1: Lions team is playing an undefeated Lions team is playing 529 00:28:46,400 --> 00:28:49,080 Speaker 1: a team that also has And I would think most 530 00:28:49,120 --> 00:28:52,840 Speaker 1: of that because of the Lions and they're playing at 531 00:28:52,880 --> 00:28:56,160 Speaker 1: Ford Field and the Chiefs are going to visit. It's 532 00:28:56,160 --> 00:28:58,400 Speaker 1: going to be a good game. All right, I'm done. 533 00:28:58,440 --> 00:29:04,160 Speaker 1: Promise you're listening to the Bloomberg Business of Sports, where 534 00:29:04,160 --> 00:29:06,280 Speaker 1: you're each and every week at the same time, plus 535 00:29:06,320 --> 00:29:08,800 Speaker 1: online wherever you get your podcast, and you can catch 536 00:29:08,840 --> 00:29:12,920 Speaker 1: those Mondays, Wednesdays and Thursdays. I'm Michael Barrow on Twitter 537 00:29:12,960 --> 00:29:15,440 Speaker 1: at Big Bar Sports. I'm Evan Novie Williams at nov 538 00:29:15,720 --> 00:29:18,800 Speaker 1: Underscore Williams, and I'm Scott sat You can follow me 539 00:29:18,800 --> 00:29:21,400 Speaker 1: on Twitter at Sashnik. Thank you very much for joining us. 540 00:29:21,520 --> 00:29:23,480 Speaker 1: Please tune in next week when we speak with Evan 541 00:29:23,480 --> 00:29:25,600 Speaker 1: who we got from the Score. We got the CEO 542 00:29:25,640 --> 00:29:28,240 Speaker 1: of the Score, John Levy, you know a cential media 543 00:29:28,280 --> 00:29:32,560 Speaker 1: company that is turning into a sports betting betting diving 544 00:29:32,600 --> 00:29:33,920 Speaker 1: in a lot more than you know a lot of 545 00:29:34,000 --> 00:29:36,560 Speaker 1: the other ones are. You're listening to Bloomberg Business of 546 00:29:36,640 --> 00:29:39,360 Speaker 1: Sports from Bloomberg Radio around the world.