1 00:00:02,759 --> 00:00:10,160 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is the Business 2 00:00:10,200 --> 00:00:10,800 Speaker 1: of sports. 3 00:00:10,840 --> 00:00:13,720 Speaker 2: The business of sports can be intimidating or hard for 4 00:00:13,720 --> 00:00:14,720 Speaker 2: a starting to break into. 5 00:00:14,840 --> 00:00:17,840 Speaker 3: We really appreciate when our owners are actually there, you know, 6 00:00:17,920 --> 00:00:19,000 Speaker 3: with us through the journey. 7 00:00:19,040 --> 00:00:22,560 Speaker 4: Teams ours especially have been very intentional to diversify at 8 00:00:22,600 --> 00:00:23,560 Speaker 4: all levels of the company. 9 00:00:23,640 --> 00:00:26,040 Speaker 5: I think we're in bolden years for the NFL and 10 00:00:26,200 --> 00:00:29,960 Speaker 5: college football. Our demographic reach has continued to explode. 11 00:00:30,080 --> 00:00:33,720 Speaker 4: This is going to be really unlocking the streaming platform 12 00:00:33,800 --> 00:00:35,040 Speaker 4: for sports fans. 13 00:00:34,840 --> 00:00:36,199 Speaker 6: Sports evaluations arising. 14 00:00:36,320 --> 00:00:37,280 Speaker 2: We'll see when they peak. 15 00:00:37,360 --> 00:00:40,000 Speaker 3: You don't have to be the best in your sports 16 00:00:40,000 --> 00:00:42,920 Speaker 3: and make a whole ton of money. 17 00:00:43,040 --> 00:00:46,520 Speaker 1: Bloomberg Business of Sports from Bloomberg Radio. 18 00:00:47,320 --> 00:00:50,159 Speaker 2: This is the Bloomberg Business of Sports, where we explore 19 00:00:50,200 --> 00:00:52,400 Speaker 2: the big money issues in the world of sports. I'm 20 00:00:52,400 --> 00:00:57,080 Speaker 2: Michael Barr, along with my colleagues Damian Sasauur and Vanessa Berdomo. 21 00:00:57,360 --> 00:00:59,920 Speaker 2: Scarlett Foo would join us later on in the show. 22 00:01:00,400 --> 00:01:03,440 Speaker 2: Coming up, we'll talk with the founder and CEO of 23 00:01:03,600 --> 00:01:08,120 Speaker 2: Gambling dot Com Group, Charles Gillespie, about the growth of 24 00:01:08,160 --> 00:01:10,039 Speaker 2: the sports gaming industry. 25 00:01:09,800 --> 00:01:11,120 Speaker 6: All that pent up demand. 26 00:01:11,200 --> 00:01:13,400 Speaker 3: You know, people that have been waiting to register accounts, 27 00:01:13,680 --> 00:01:16,080 Speaker 3: go out and set up their accounts, and then it 28 00:01:16,160 --> 00:01:18,000 Speaker 3: quiets down a bit, But then you're going to have, 29 00:01:18,480 --> 00:01:23,240 Speaker 3: you know, fifteen twenty thirty years of fairly reliable growth. 30 00:01:23,520 --> 00:01:26,440 Speaker 2: We'll also talk about the big money going into getting 31 00:01:26,600 --> 00:01:31,000 Speaker 2: and keeping top Argentine soccer talent in Argentina and what 32 00:01:31,200 --> 00:01:34,080 Speaker 2: President Javier Malay has to do with it. All that 33 00:01:34,200 --> 00:01:36,360 Speaker 2: and more is on the way on the Bloomberg Business 34 00:01:36,360 --> 00:01:39,839 Speaker 2: of Sports. But first we got a couple of big 35 00:01:39,920 --> 00:01:43,040 Speaker 2: moves in sports media, and we want to go over 36 00:01:43,440 --> 00:01:48,680 Speaker 2: all of that, including ESPN officially moving on from Baseball. 37 00:01:49,120 --> 00:01:52,680 Speaker 2: Joining us now to talk about it is Bloomberg News, 38 00:01:52,840 --> 00:01:57,000 Speaker 2: Media and Entertainment reporter Hannah Miller. Hannah, welcome to the 39 00:01:57,000 --> 00:01:58,520 Speaker 2: Bloomberg Business of Sports. 40 00:01:58,680 --> 00:01:59,600 Speaker 7: Thank you for having me. 41 00:02:00,120 --> 00:02:02,720 Speaker 2: Well well, well, well, well we're back to that old 42 00:02:02,920 --> 00:02:07,760 Speaker 2: fight with the regional sports networks and then the ESPN 43 00:02:07,880 --> 00:02:09,360 Speaker 2: and all this stuff. So I'm going to start with 44 00:02:09,600 --> 00:02:14,560 Speaker 2: ESPN first. ESPN. Now, Now, the way I'm going to 45 00:02:14,600 --> 00:02:18,040 Speaker 2: word this is going to sound weird. They're dropping Major 46 00:02:18,120 --> 00:02:23,320 Speaker 2: League Baseball, but major League Baseball says, oh no, no, no, no, 47 00:02:23,400 --> 00:02:28,120 Speaker 2: we're dropping you. So can you explain what happened. 48 00:02:28,440 --> 00:02:31,359 Speaker 7: Yeah, so MLB is trying to make this seem very mutual. 49 00:02:31,600 --> 00:02:35,280 Speaker 7: You know that they came to this decision together, but 50 00:02:35,720 --> 00:02:39,080 Speaker 7: we know that there's more tension than that. You know, 51 00:02:39,280 --> 00:02:42,360 Speaker 7: MLB has been really trying to expand with its meteorites. 52 00:02:42,639 --> 00:02:47,720 Speaker 7: It's struck multiple deals, including with Roku and Apple. And 53 00:02:48,320 --> 00:02:51,160 Speaker 7: you know, these deals are a lot cheaper than what 54 00:02:51,880 --> 00:02:54,960 Speaker 7: ESPN was paying. I mean, the deal with ESPN was 55 00:02:55,000 --> 00:02:58,360 Speaker 7: five hundred and fifty million dollars per year, and they 56 00:02:58,440 --> 00:03:01,760 Speaker 7: wanted they wanted a better price than that. So you know, 57 00:03:02,120 --> 00:03:04,200 Speaker 7: they've kind of gone tip for tat. You know, MLB 58 00:03:04,280 --> 00:03:07,960 Speaker 7: has complained about you know, ESPN not covering baseball enough, 59 00:03:08,000 --> 00:03:12,040 Speaker 7: not giving them enough airtime. ESPN has countered with you know, 60 00:03:12,120 --> 00:03:15,800 Speaker 7: this is too high of a price to pay, and 61 00:03:15,960 --> 00:03:18,600 Speaker 7: they basically you know that this deal ended early. There 62 00:03:18,600 --> 00:03:20,840 Speaker 7: was an early opt out for the you know, after 63 00:03:20,840 --> 00:03:24,120 Speaker 7: the twenty twenty five season. The deal actually expired in 64 00:03:24,160 --> 00:03:28,160 Speaker 7: twenty twenty eight, so this is this is pretty surprising, 65 00:03:28,400 --> 00:03:31,840 Speaker 7: but you know, the door is still open. ESPN N 66 00:03:31,960 --> 00:03:35,040 Speaker 7: MLB could come together come to some sort of agreement. 67 00:03:35,400 --> 00:03:36,720 Speaker 7: So we'll see if that happens. 68 00:03:37,040 --> 00:03:39,160 Speaker 8: And it's interesting for me. You know that the back 69 00:03:39,200 --> 00:03:42,720 Speaker 8: and forth is so interesting. You know, why did ESPN 70 00:03:42,800 --> 00:03:45,040 Speaker 8: ultimately feel like that they were paying too much? 71 00:03:45,240 --> 00:03:48,839 Speaker 7: Yeah, so I think ESPN was really looking at these 72 00:03:48,920 --> 00:03:51,200 Speaker 7: other platforms. You know, they were looking at Roku, they 73 00:03:51,200 --> 00:03:52,880 Speaker 7: were looking at Apple, both of whom are trying to 74 00:03:52,880 --> 00:03:55,880 Speaker 7: get more and more into support streaming. And you know, 75 00:03:56,080 --> 00:03:58,160 Speaker 7: ESPN was like, hey, we want a better deal. We 76 00:03:58,200 --> 00:03:59,960 Speaker 7: want to be more in line with what these are 77 00:04:00,040 --> 00:04:02,600 Speaker 7: their guys are paying. So it's been very interesting to 78 00:04:02,640 --> 00:04:05,600 Speaker 7: see in the context of other you know, sports media rights. 79 00:04:05,840 --> 00:04:08,680 Speaker 7: The NBA deal over the summer was a knockout, you know, 80 00:04:09,040 --> 00:04:12,280 Speaker 7: record value. I think there is a real question of 81 00:04:12,320 --> 00:04:15,720 Speaker 7: whether MLB will be the only major sports league to 82 00:04:15,760 --> 00:04:19,360 Speaker 7: see a decline in price sport media rights. But you know, 83 00:04:19,480 --> 00:04:21,800 Speaker 7: even though ratings have been good for them, I don't 84 00:04:21,839 --> 00:04:25,400 Speaker 7: think they've necessarily had the degree of success that they 85 00:04:25,440 --> 00:04:28,560 Speaker 7: were hoping for. You know, in the NBA that it's 86 00:04:28,600 --> 00:04:32,159 Speaker 7: just a lot of star power. You know, it's a 87 00:04:32,200 --> 00:04:35,320 Speaker 7: game that people describe as more fun to watch. So 88 00:04:35,480 --> 00:04:39,400 Speaker 7: these are going to be problems that follow MLB going forward. 89 00:04:39,720 --> 00:04:41,880 Speaker 5: Well, and let's crystallize it for our audience, shall we 90 00:04:41,960 --> 00:04:44,000 Speaker 5: I mean the deal, as I understand, it was a 91 00:04:44,040 --> 00:04:46,960 Speaker 5: seven year deal that ESPN agreed to pay the league 92 00:04:47,640 --> 00:04:50,359 Speaker 5: five hund fifty million a year, thirty regular season games, 93 00:04:50,360 --> 00:04:52,560 Speaker 5: including the wildcard playoff round, and I think the home 94 00:04:52,640 --> 00:04:55,839 Speaker 5: run Derby. But you know, I think I mean for me, 95 00:04:56,080 --> 00:04:58,560 Speaker 5: I mean, and I watch baseball, I mean I never 96 00:04:58,600 --> 00:05:00,960 Speaker 5: have to watch on an ESPN beca YUS. It's on Fox, 97 00:05:01,000 --> 00:05:04,480 Speaker 5: it's turn it's on Turner, it's on Apple, it's on Peacock. 98 00:05:04,520 --> 00:05:07,920 Speaker 5: I mean, is that the reason did Major League Baseball 99 00:05:08,400 --> 00:05:11,320 Speaker 5: kind of sell themselves short? Did they thin the rankings 100 00:05:11,360 --> 00:05:13,880 Speaker 5: so to speak by offering on so many different platforms? 101 00:05:14,080 --> 00:05:15,960 Speaker 7: Yeah, I think that definitely played a part into it. 102 00:05:16,040 --> 00:05:18,080 Speaker 7: You know, MLB has been known for sharing the love. 103 00:05:18,160 --> 00:05:22,000 Speaker 7: You know, you can access games on Fox, on Turner, 104 00:05:22,760 --> 00:05:24,440 Speaker 7: you know, there are a lot of ways to watch it. 105 00:05:24,520 --> 00:05:29,400 Speaker 7: You also, you know, still have some strong regional networks. 106 00:05:29,600 --> 00:05:32,719 Speaker 7: I think that definitely kind of diluted things a bit, 107 00:05:32,880 --> 00:05:34,920 Speaker 7: just spreading them around to different places. 108 00:05:35,240 --> 00:05:38,880 Speaker 2: Well, here's what I'm confused about, because in the contract, 109 00:05:39,760 --> 00:05:43,120 Speaker 2: ESPN was going to air thirty regular season games, the 110 00:05:43,160 --> 00:05:46,760 Speaker 2: five hundred million dollar contract. Then, of course the wild 111 00:05:46,839 --> 00:05:51,440 Speaker 2: card playoffs, the home run derby, ten spring training games, 112 00:05:51,680 --> 00:05:55,599 Speaker 2: but they're saying MLB that THEYD got it did not 113 00:05:55,680 --> 00:05:59,360 Speaker 2: get enough baseball coverage? Are they talking about the regular 114 00:06:01,000 --> 00:06:05,760 Speaker 2: when you watch daily ESPN reports, that's what they're upset about. 115 00:06:05,920 --> 00:06:07,640 Speaker 7: I think that's a huge part of it. It's just 116 00:06:07,720 --> 00:06:09,800 Speaker 7: you know, not getting it focused enough in a lot 117 00:06:09,800 --> 00:06:13,280 Speaker 7: of ESPN sports shows and their news coverage. Even the 118 00:06:13,320 --> 00:06:15,520 Speaker 7: spring training games is actually up to ten games that 119 00:06:15,520 --> 00:06:17,120 Speaker 7: they could have aired, so they didn't even have to 120 00:06:17,120 --> 00:06:21,320 Speaker 7: fulfill fill all of that with showing games. So you know, 121 00:06:21,400 --> 00:06:24,360 Speaker 7: it's it's definitely I think makes sense in the context 122 00:06:24,440 --> 00:06:27,320 Speaker 7: of this battle. You know, like neither side was satisfied 123 00:06:27,320 --> 00:06:28,120 Speaker 7: with what was happening. 124 00:06:28,560 --> 00:06:31,200 Speaker 2: Wow, I want to see the home run derby. Now 125 00:06:31,240 --> 00:06:32,280 Speaker 2: where am I going to see it? 126 00:06:32,400 --> 00:06:34,680 Speaker 7: Well, that's the question. There's gonna you know, there are 127 00:06:34,800 --> 00:06:37,040 Speaker 7: rights up for grabs here, and like I said, they 128 00:06:37,400 --> 00:06:41,040 Speaker 7: could come back together, you know, patch things up, have 129 00:06:41,040 --> 00:06:43,080 Speaker 7: an agreement where they could get those games back. 130 00:06:43,320 --> 00:06:46,160 Speaker 8: And you think that when they come when they do 131 00:06:46,240 --> 00:06:48,240 Speaker 8: get their agreement, that you think it's going to be 132 00:06:48,520 --> 00:06:50,600 Speaker 8: a lower value than they would think. 133 00:06:51,000 --> 00:06:54,200 Speaker 7: I think it would. I think that's definitely a strong possibility. 134 00:06:54,240 --> 00:06:56,040 Speaker 7: I was talking about that with someone the other day 135 00:06:56,040 --> 00:07:00,120 Speaker 7: where it's just like, you know, we've seen just you know, 136 00:07:00,200 --> 00:07:03,280 Speaker 7: knockouts for other leagues. You know, we talked about the 137 00:07:03,360 --> 00:07:06,240 Speaker 7: NBA before. But yeah, there is a question here that 138 00:07:06,520 --> 00:07:07,720 Speaker 7: MLB could be the outlier. 139 00:07:08,240 --> 00:07:10,200 Speaker 5: You know, Hannah, you know I have to ask you 140 00:07:10,720 --> 00:07:14,080 Speaker 5: just to switch gears here. I mean this whole restructuring 141 00:07:14,160 --> 00:07:17,280 Speaker 5: of Diamond Sports Group I think it's now called main 142 00:07:17,320 --> 00:07:19,600 Speaker 5: Street Sports Group, right, and you know, we all know 143 00:07:19,640 --> 00:07:22,000 Speaker 5: what happened. They filed for bankruptcy in twenty twenty three, 144 00:07:22,440 --> 00:07:26,240 Speaker 5: then they want approval of an Amazon aided restructuring, and 145 00:07:26,280 --> 00:07:30,840 Speaker 5: now Diamond I'm sorry, main Street Sports Group is going 146 00:07:30,920 --> 00:07:34,720 Speaker 5: to be offering sixteen regional sports networks for twenty dollars 147 00:07:34,800 --> 00:07:37,400 Speaker 5: a month in addition to its streaming service. I mean, 148 00:07:37,440 --> 00:07:39,760 Speaker 5: how did this happen? How did this company turn it 149 00:07:39,800 --> 00:07:40,600 Speaker 5: around so quickly? 150 00:07:41,080 --> 00:07:43,480 Speaker 7: Yeah, they needed a lot of help to turn it around. 151 00:07:43,560 --> 00:07:47,040 Speaker 7: So all of this is progressive Amazon helps, Yes, yeah, 152 00:07:47,120 --> 00:07:50,320 Speaker 7: this is all part of their bankruptcy restructuring. This is 153 00:07:50,320 --> 00:07:54,240 Speaker 7: how they were merging from bankruptcy. So both Amazon and 154 00:07:54,360 --> 00:07:58,360 Speaker 7: FanDuel stepped in as white knights here. So Amazon struck 155 00:07:58,360 --> 00:08:02,800 Speaker 7: a multi year streaming with Diamond. Diamond has undergone this 156 00:08:02,920 --> 00:08:05,360 Speaker 7: rebrand to be main Street Sports Group. You know, they 157 00:08:05,400 --> 00:08:08,320 Speaker 7: want to leave Diamond in the past, have a new future. 158 00:08:09,280 --> 00:08:13,200 Speaker 7: And any other player here is FanDuel. So this these 159 00:08:13,240 --> 00:08:15,880 Speaker 7: regional sports packages, it's going to be marketed under FanDuel 160 00:08:15,920 --> 00:08:20,320 Speaker 7: Sports Network and this naming rights agreement that you know, 161 00:08:20,360 --> 00:08:24,360 Speaker 7: FanDuel paid for this branding that helped you know, Diamond 162 00:08:24,400 --> 00:08:27,840 Speaker 7: slash main Street get out of bankruptcy. So none of 163 00:08:27,840 --> 00:08:29,960 Speaker 7: this is a huge surprise, like we've been waiting for 164 00:08:30,000 --> 00:08:33,160 Speaker 7: this to happen and get finalized. But yeah, I mean 165 00:08:33,160 --> 00:08:34,680 Speaker 7: this is how they were able to get out of 166 00:08:34,679 --> 00:08:34,960 Speaker 7: the hole. 167 00:08:35,760 --> 00:08:39,360 Speaker 2: Well wait a minute, Piggy loves going in the sports 168 00:08:39,440 --> 00:08:41,760 Speaker 2: draft here, so I want to make sure I got 169 00:08:41,760 --> 00:08:46,319 Speaker 2: this right. Amazon. They're going to offer sixteen regional sports networks. 170 00:08:46,520 --> 00:08:49,720 Speaker 2: Anyone of the sixteen I can watch is I live 171 00:08:49,760 --> 00:08:54,040 Speaker 2: in the Poconos in Pennsylvania, and I could get Miami 172 00:08:54,120 --> 00:08:57,360 Speaker 2: if I wanted to and watch that all sixteen are open. 173 00:08:57,679 --> 00:09:00,640 Speaker 7: My understanding is it is based off zip code, so 174 00:09:00,720 --> 00:09:04,120 Speaker 7: you will get the regional sports network that's for your area. 175 00:09:04,200 --> 00:09:06,360 Speaker 7: So I actually was looking at the website today and 176 00:09:06,440 --> 00:09:08,200 Speaker 7: they were like, this is not available in your area, 177 00:09:08,280 --> 00:09:10,280 Speaker 7: Like get out, you know, New York, It's not for 178 00:09:10,400 --> 00:09:13,000 Speaker 7: New York. So that that's my understanding at least. 179 00:09:13,280 --> 00:09:16,880 Speaker 8: Oh, and it's interesting when we were thinking about that 180 00:09:16,920 --> 00:09:18,839 Speaker 8: and thinking about local blackouts and stuff. So one of 181 00:09:18,880 --> 00:09:22,000 Speaker 8: the things that happened when Diamond Sports filed for bankruptcy 182 00:09:22,200 --> 00:09:24,640 Speaker 8: was the MLB. You know, reports kind of came out 183 00:09:24,720 --> 00:09:28,080 Speaker 8: that they were almost it was almost in their favor 184 00:09:28,520 --> 00:09:31,800 Speaker 8: for regional sports networks to go away because they wanted 185 00:09:31,840 --> 00:09:35,600 Speaker 8: to retain the rights to all of their media rights 186 00:09:35,640 --> 00:09:38,120 Speaker 8: so that they could go to national partners and that 187 00:09:38,120 --> 00:09:42,160 Speaker 8: would maximize revenue and stop local blackouts. So how does 188 00:09:42,280 --> 00:09:42,960 Speaker 8: this all. 189 00:09:42,760 --> 00:09:43,559 Speaker 7: Plan to that? 190 00:09:43,720 --> 00:09:45,880 Speaker 8: This new Amazon deal with main Street And then when 191 00:09:45,920 --> 00:09:49,040 Speaker 8: you look at popular regional sports networks, like you said. 192 00:09:48,880 --> 00:09:52,760 Speaker 7: Like with yes, yeah, I mean so Amazon has been 193 00:09:52,800 --> 00:09:56,240 Speaker 7: making this push into regional sports streaming and just sports 194 00:09:56,240 --> 00:10:00,520 Speaker 7: streaming more broadly, Like this isn't totally shocking. And you know, 195 00:10:00,600 --> 00:10:03,200 Speaker 7: this struggle for regional sports network it's a tale as 196 00:10:03,240 --> 00:10:05,760 Speaker 7: old as time. You know, people are switching to streaming 197 00:10:05,800 --> 00:10:10,079 Speaker 7: their trimming expensive cable packages. Yeah, I think they're hoping 198 00:10:10,200 --> 00:10:12,720 Speaker 7: that this is going to make everything more accessible to people. 199 00:10:12,800 --> 00:10:16,160 Speaker 7: You know that they will get more coverage. We've even 200 00:10:16,200 --> 00:10:17,840 Speaker 7: seen you know, you brought up yes, like they're going 201 00:10:17,920 --> 00:10:21,560 Speaker 7: to be Yankees games streaming on Amazon. We just heard 202 00:10:21,600 --> 00:10:26,480 Speaker 7: about that, and it's something that you know, it's going 203 00:10:26,559 --> 00:10:30,200 Speaker 7: to help these regional sports networks like this is not 204 00:10:30,360 --> 00:10:32,960 Speaker 7: easy for them, Like MLB has also been doing deals 205 00:10:33,000 --> 00:10:38,000 Speaker 7: with various teams to kind of develop their own regional brand. 206 00:10:38,080 --> 00:10:41,480 Speaker 7: But yeah, I mean, I think with looking ahead, we're 207 00:10:41,880 --> 00:10:44,560 Speaker 7: just going to see more and more stuff switched from 208 00:10:44,600 --> 00:10:47,520 Speaker 7: cable to streaming. This is across the board, not just 209 00:10:47,600 --> 00:10:50,920 Speaker 7: in sports. People want to pay less money per month, 210 00:10:51,000 --> 00:10:54,000 Speaker 7: they want similar packages, and they want more customization, so 211 00:10:54,160 --> 00:10:56,440 Speaker 7: all of this con per month. 212 00:10:56,440 --> 00:10:59,440 Speaker 8: But it's twenty dollars a month on a streaming service 213 00:11:00,040 --> 00:11:01,840 Speaker 8: straight up than what you pay for it already, which 214 00:11:01,880 --> 00:11:02,400 Speaker 8: is crazy. 215 00:11:02,600 --> 00:11:04,800 Speaker 7: Yeah, no, I mean it's I think they're kind of 216 00:11:05,520 --> 00:11:08,240 Speaker 7: going for cord cutters here, like yeah, you're paying twenty 217 00:11:08,280 --> 00:11:10,800 Speaker 7: dollars a month for your streaming package, but like maybe 218 00:11:10,800 --> 00:11:15,160 Speaker 7: you're not doing that expensive sports cable package that is, 219 00:11:15,520 --> 00:11:17,600 Speaker 7: you know, hundreds of dollars a month, Like maybe you're 220 00:11:17,600 --> 00:11:20,760 Speaker 7: getting rid of that to kind of get the sports 221 00:11:20,800 --> 00:11:24,840 Speaker 7: you want specifically for your area. It's a toss up. 222 00:11:24,840 --> 00:11:28,199 Speaker 7: I don't know. I think like these slim sports packages, 223 00:11:28,280 --> 00:11:30,280 Speaker 7: that's going to be a trend we're going to continue 224 00:11:30,280 --> 00:11:31,520 Speaker 7: to see in twenty twenty five. 225 00:11:32,679 --> 00:11:36,560 Speaker 5: Vanessa, it's the Arizona Diamondbacks we're talking about here. I mean, 226 00:11:36,720 --> 00:11:39,000 Speaker 5: shame on you, but no, I mean, seriously, Hannah, my 227 00:11:39,040 --> 00:11:42,120 Speaker 5: last question is this. I know that you know diamond 228 00:11:42,200 --> 00:11:45,360 Speaker 5: used Chapter sorry, main Street used Chapter eleven protection to 229 00:11:45,440 --> 00:11:48,160 Speaker 5: end broadcast deals with a few teams, the Diamondbacks being 230 00:11:48,160 --> 00:11:49,920 Speaker 5: one of them. I think the Padres and the Rangers 231 00:11:49,920 --> 00:11:52,600 Speaker 5: were a few others. Who do they have agreements left with? 232 00:11:52,679 --> 00:11:54,520 Speaker 5: I think I think they had to deal with the Braves, 233 00:11:54,559 --> 00:11:57,240 Speaker 5: maybe the Angels. I mean, I mean, do we know 234 00:11:57,240 --> 00:12:00,320 Speaker 5: who those six teams are? Sixteen teams are? And I 235 00:12:00,320 --> 00:12:02,520 Speaker 5: think what Michael Barr really wants to know. Are the 236 00:12:02,559 --> 00:12:03,440 Speaker 5: Tigers one of them? 237 00:12:03,880 --> 00:12:08,440 Speaker 7: Yes, the Tigers are one of them. Yeah, Detroit, La, Miami. 238 00:12:08,559 --> 00:12:10,440 Speaker 7: Like they have some big cities that are in the 239 00:12:10,480 --> 00:12:14,080 Speaker 7: mix here, so you know there are good offerings like 240 00:12:14,160 --> 00:12:16,520 Speaker 7: it's not you know, there are some really high profile 241 00:12:16,559 --> 00:12:22,760 Speaker 7: teams included here. So yeah, it's a whole mix, but yeah, 242 00:12:22,880 --> 00:12:25,359 Speaker 7: definitely definitely La Miami Air standouts. 243 00:12:25,720 --> 00:12:28,760 Speaker 2: Hannah Miller, thank you so much for coming in and 244 00:12:28,840 --> 00:12:32,720 Speaker 2: talking baseball with us and regional sports networks and all 245 00:12:32,800 --> 00:12:35,800 Speaker 2: the hooton Nanny on the Bloomberg Business of Sports. Thank 246 00:12:35,840 --> 00:12:37,959 Speaker 2: you again, Thank you for having me our thanks to 247 00:12:37,960 --> 00:12:41,200 Speaker 2: Hannah Miller for joining us. She covers media and entertainment 248 00:12:41,240 --> 00:12:43,920 Speaker 2: for Bloomberg News. Up next, we turned to soccer in 249 00:12:44,080 --> 00:12:48,160 Speaker 2: Argentina and the big money going into bringing top talent there. 250 00:12:48,440 --> 00:12:52,440 Speaker 2: For my colleagues Damian Sasauer and Vanessa Perdomo. I'm Michael Barr. 251 00:12:52,720 --> 00:12:56,080 Speaker 2: You're listening to the Bloomberg Business of Sports from Bloomberg 252 00:12:56,280 --> 00:12:57,720 Speaker 2: Radio around the world. 253 00:13:02,559 --> 00:13:06,520 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 254 00:13:07,960 --> 00:13:10,360 Speaker 2: This is the Bloomberg Business of Sports. We explore the 255 00:13:10,360 --> 00:13:12,640 Speaker 2: big money issues in the world of sports. I'm Michael 256 00:13:12,640 --> 00:13:17,320 Speaker 2: Barr along with Damian Sassauer and Vanessa Berdomo. Argentinian soccer 257 00:13:17,320 --> 00:13:20,800 Speaker 2: clubs are doling out big time contracts to players lately, 258 00:13:21,360 --> 00:13:24,920 Speaker 2: driving a revival in the team's and in homegrown talent. 259 00:13:25,320 --> 00:13:30,280 Speaker 2: And Bloomberg is reporting that Argentina's president Javier Malay's economy 260 00:13:30,440 --> 00:13:32,880 Speaker 2: has a lot to do with it. Joining us now 261 00:13:32,880 --> 00:13:36,160 Speaker 2: to dive into the revival of big money soccer in 262 00:13:36,360 --> 00:13:41,600 Speaker 2: Argentina is Bloomberg Buenos Aire's bureau chief Patrick Gillespie. Patrick, 263 00:13:41,640 --> 00:13:43,679 Speaker 2: Welcome to the Bloomberg Business of Sports. 264 00:13:43,960 --> 00:13:44,839 Speaker 9: Thank you for having me. 265 00:13:45,760 --> 00:13:52,040 Speaker 2: Argentine getting back into soccer now because before they really 266 00:13:52,080 --> 00:13:55,680 Speaker 2: couldn't afford it, But all of a sudden, now they're 267 00:13:55,720 --> 00:14:00,439 Speaker 2: signing million dollar contracts to revive soccer in the country 268 00:14:00,760 --> 00:14:06,040 Speaker 2: and it's all thanks to the shoring up of the pesos. 269 00:14:06,080 --> 00:14:07,679 Speaker 2: Can you describe what's going on? 270 00:14:08,240 --> 00:14:13,600 Speaker 9: Yes, President Javier Malay, his overhaul of Argentina's economy has 271 00:14:13,679 --> 00:14:17,800 Speaker 9: had an unexpected outcome. Soccer players are returning home to 272 00:14:18,000 --> 00:14:23,480 Speaker 9: a soccer or should I say football crazy nation. For decades, 273 00:14:23,600 --> 00:14:27,480 Speaker 9: when the likes of Leo Messi or Diego Maradona grew 274 00:14:27,560 --> 00:14:31,120 Speaker 9: up in Argentina, it was just understood that players were 275 00:14:31,120 --> 00:14:33,960 Speaker 9: going to go to Europe. First, the best teams are 276 00:14:33,960 --> 00:14:38,360 Speaker 9: there in Europe, but also Argentina's repeated economic crises made 277 00:14:38,360 --> 00:14:42,080 Speaker 9: it impossible for the top clubs in Argentina to recruit 278 00:14:42,120 --> 00:14:45,800 Speaker 9: and retain great players. And now that's starting to change. 279 00:14:45,880 --> 00:14:50,520 Speaker 9: Little by little thanks mostly to Javier Malay's economic policies. 280 00:14:51,760 --> 00:14:55,880 Speaker 9: He factors in because Melay controls the exchange rate between 281 00:14:55,880 --> 00:14:59,040 Speaker 9: the pacer and the dollar, and the currency is getting 282 00:14:59,160 --> 00:15:03,800 Speaker 9: much stronger on Mela's watch. For example, prices in paesols 283 00:15:03,800 --> 00:15:06,560 Speaker 9: in Argentina went up over one hundred percent last year, 284 00:15:06,560 --> 00:15:09,680 Speaker 9: but the currency only, I know, we wouldn't say this 285 00:15:09,960 --> 00:15:14,080 Speaker 9: very jokingly, but only fell twenty two percent last year. 286 00:15:14,560 --> 00:15:17,360 Speaker 9: And so that mismatch between how much prices are going 287 00:15:17,440 --> 00:15:20,280 Speaker 9: up and how much the currency is going down is 288 00:15:20,360 --> 00:15:23,600 Speaker 9: making the currency, the peso, a lot stronger, and that's 289 00:15:23,640 --> 00:15:28,520 Speaker 9: helping football teams sign players to these multimillion dollar contracts. 290 00:15:28,960 --> 00:15:31,880 Speaker 8: It's such an interesting, you know, thing that's happened here. 291 00:15:31,920 --> 00:15:35,880 Speaker 8: It's a very unique bloomberg business of sports stories, the 292 00:15:35,920 --> 00:15:39,160 Speaker 8: way that the dollar and the paeso have then affected 293 00:15:39,600 --> 00:15:42,840 Speaker 8: the sports and the soccer system there. Can you give 294 00:15:42,920 --> 00:15:44,680 Speaker 8: us a little bit more on that and how, you know, 295 00:15:45,120 --> 00:15:47,680 Speaker 8: the owners of these clubs are dealing with that, how 296 00:15:47,720 --> 00:15:50,600 Speaker 8: they've been able to recruit these players back, and how 297 00:15:50,600 --> 00:15:53,800 Speaker 8: it's you know, really raised maybe has it raised you know, 298 00:15:54,320 --> 00:15:58,320 Speaker 8: the overall fever of football again or how how has 299 00:15:58,360 --> 00:15:59,920 Speaker 8: it raised you know the level of play. 300 00:16:00,200 --> 00:16:03,800 Speaker 9: There's about two dozen soccer players in Argentina making a 301 00:16:03,880 --> 00:16:06,680 Speaker 9: million dollars or more this year, and that's up from 302 00:16:06,720 --> 00:16:08,960 Speaker 9: just a handful a couple of years ago. To give 303 00:16:08,960 --> 00:16:12,080 Speaker 9: a little bit more size and scope, Argentine clubs has 304 00:16:12,080 --> 00:16:14,880 Speaker 9: spent about two hundred million dollars in what's called the 305 00:16:14,920 --> 00:16:18,840 Speaker 9: transfer market, where players shift from say one league to 306 00:16:18,880 --> 00:16:21,320 Speaker 9: the other, and that's up from less than half of 307 00:16:21,360 --> 00:16:24,520 Speaker 9: that amount, less than one hundred million dollars just a couple. 308 00:16:24,240 --> 00:16:24,800 Speaker 6: Of years ago. 309 00:16:25,040 --> 00:16:28,480 Speaker 9: So really you've seen an exponential increase in how much 310 00:16:28,520 --> 00:16:32,360 Speaker 9: teams are spending on players. And also, I think another 311 00:16:32,480 --> 00:16:35,120 Speaker 9: key difference is that these players are not, say sun setting, 312 00:16:35,160 --> 00:16:38,760 Speaker 9: they're not exactly at the end of their careers. One 313 00:16:38,800 --> 00:16:42,600 Speaker 9: example is Sebastian Drusi, who is just twenty nine years old. 314 00:16:43,240 --> 00:16:45,520 Speaker 9: He signed a ten million dollar contract with one of 315 00:16:45,600 --> 00:16:50,880 Speaker 9: Argentina's biggest clubs, river Plate. Another example is Gonzale Montiel, 316 00:16:50,960 --> 00:16:54,280 Speaker 9: who scored a very important goal during Argentina's World Cup 317 00:16:54,520 --> 00:16:57,920 Speaker 9: victory a couple of years ago. He returned as well 318 00:16:58,280 --> 00:17:02,160 Speaker 9: on a multimillion dollar contract. So not only is Argentina 319 00:17:02,400 --> 00:17:05,840 Speaker 9: getting more players from abroad, right now on these big contracts, 320 00:17:05,960 --> 00:17:09,080 Speaker 9: but they're getting high quality talent that's not players at 321 00:17:09,119 --> 00:17:10,879 Speaker 9: the end of their careers but still in their prime. 322 00:17:11,359 --> 00:17:13,720 Speaker 5: Patrick, you know you mentioned Rusi and you know I 323 00:17:13,760 --> 00:17:15,760 Speaker 5: look at the contract he signed and yeah, okay, he 324 00:17:15,840 --> 00:17:18,040 Speaker 5: was getting paid ten point four billion pasos when he 325 00:17:18,040 --> 00:17:21,240 Speaker 5: signed it. Well guess what now due to the depreciation 326 00:17:21,359 --> 00:17:23,439 Speaker 5: of the paeso, it's ten point six billion, right, So 327 00:17:23,760 --> 00:17:26,159 Speaker 5: the movement the fx vall and our audience knows that 328 00:17:26,200 --> 00:17:28,600 Speaker 5: I run emerging market fixed income here at Bloomberg, so 329 00:17:28,920 --> 00:17:31,000 Speaker 5: the blue chips to operate is nothing new to me, 330 00:17:31,119 --> 00:17:33,359 Speaker 5: my friend. And you know, my question is this A 331 00:17:33,359 --> 00:17:35,600 Speaker 5: million dollars a year is peanuts when you see what 332 00:17:35,720 --> 00:17:38,840 Speaker 5: McAllister Martinez and Dibala and some of these other Argentine 333 00:17:38,840 --> 00:17:42,000 Speaker 5: players are getting paid from what as Roma Liverpool. I mean, 334 00:17:42,040 --> 00:17:44,320 Speaker 5: I think Thecalison is getting paid seven point eight million 335 00:17:44,440 --> 00:17:47,840 Speaker 5: US a year. So this is just scratching the surface. 336 00:17:47,880 --> 00:17:50,760 Speaker 5: And I guess my question for you, sir, is does 337 00:17:50,840 --> 00:17:54,000 Speaker 5: Hobby and Malay really have the clout to pull some 338 00:17:54,160 --> 00:17:57,480 Speaker 5: of the top players, the top Argentine players in the 339 00:17:57,480 --> 00:18:00,080 Speaker 5: world back home and the two. 340 00:18:00,160 --> 00:18:04,080 Speaker 9: I think the answer is no, because first Unfortunately, it 341 00:18:04,080 --> 00:18:06,479 Speaker 9: seems like Leo Messi is probably going to finish his 342 00:18:06,560 --> 00:18:07,920 Speaker 9: career at Inter Miami. 343 00:18:08,200 --> 00:18:10,320 Speaker 5: But no one's gonna pull. 344 00:18:10,280 --> 00:18:11,119 Speaker 6: Leo out of Miami. 345 00:18:11,160 --> 00:18:13,760 Speaker 9: I agree with you there, Patrick, I don't Yeah, I 346 00:18:13,760 --> 00:18:16,439 Speaker 9: don't think Leo Messi is coming home to play for 347 00:18:16,640 --> 00:18:20,919 Speaker 9: a pro team in Argentina. Another big factor that Melay 348 00:18:21,000 --> 00:18:23,359 Speaker 9: could change is that MELA is trying to change the 349 00:18:23,400 --> 00:18:26,960 Speaker 9: structure of these clubs in Argentina into more private enterprise. 350 00:18:27,440 --> 00:18:30,399 Speaker 9: Right now, a lot of the clubs, their leadership is 351 00:18:30,440 --> 00:18:34,159 Speaker 9: elected by the fan base, and so that limits the 352 00:18:34,200 --> 00:18:37,320 Speaker 9: amount of say foreign private investment that can go into 353 00:18:37,359 --> 00:18:40,480 Speaker 9: these clubs and juice up contracts. So we've seen in 354 00:18:40,520 --> 00:18:44,199 Speaker 9: Brazil there was a reform in their soccer leagues to 355 00:18:44,240 --> 00:18:47,439 Speaker 9: make make it easier for teams to have foreign investors, 356 00:18:48,240 --> 00:18:53,200 Speaker 9: and that's helped to attract, retain and recruit higher quality talent. 357 00:18:53,600 --> 00:18:56,080 Speaker 9: So I don't know if the the World Cup starting 358 00:18:56,160 --> 00:18:57,800 Speaker 9: roster is going to come back to one of the 359 00:18:57,880 --> 00:19:02,320 Speaker 9: sorries anytime soon, but certainly the stronger Paeso is going 360 00:19:02,400 --> 00:19:05,960 Speaker 9: to help attract more players in the near term after 361 00:19:06,080 --> 00:19:10,760 Speaker 9: really decades of the talent just immediately leaving either a 362 00:19:10,840 --> 00:19:14,040 Speaker 9: MESSI left Argentina when he was twelve years old. Many 363 00:19:14,080 --> 00:19:16,560 Speaker 9: of these players leave when they're twenty one, twenty two 364 00:19:16,640 --> 00:19:19,159 Speaker 9: years old, so the fact that some are coming still 365 00:19:19,200 --> 00:19:22,000 Speaker 9: relatively in their prime is welcome news. But you're right, 366 00:19:22,040 --> 00:19:24,719 Speaker 9: this is a very early trend. It's very incipient, and 367 00:19:24,760 --> 00:19:27,160 Speaker 9: there's a lot of questions about whether Melay can sustain 368 00:19:27,240 --> 00:19:32,400 Speaker 9: his economic policies, particularly the currency FX policies that are 369 00:19:32,440 --> 00:19:35,720 Speaker 9: really a big part of Argentina's negotiation with the International 370 00:19:35,760 --> 00:19:36,719 Speaker 9: Monetary Fund right now. 371 00:19:37,400 --> 00:19:40,000 Speaker 8: I mean, Boca Juniors is going to be playing in 372 00:19:40,040 --> 00:19:43,840 Speaker 8: the FIFA Club World Cup this year, so signing those 373 00:19:44,240 --> 00:19:46,560 Speaker 8: a few of the big players like Alan Vlesco who's 374 00:19:46,600 --> 00:19:49,480 Speaker 8: playing in the MLS and now he's playing for Boga Juniors. 375 00:19:49,760 --> 00:19:51,880 Speaker 8: Do you think these new signings are going to help 376 00:19:51,920 --> 00:19:53,760 Speaker 8: them on that world stage. 377 00:19:54,000 --> 00:19:58,720 Speaker 9: Yes, these players especially, I think when I know we 378 00:19:58,800 --> 00:20:02,240 Speaker 9: mentioned Boca Juniors, but I think River Plate stands to 379 00:20:02,280 --> 00:20:05,840 Speaker 9: benefit the most just because of their these two players 380 00:20:06,160 --> 00:20:10,760 Speaker 9: in their prime joining an already pretty strong club. So 381 00:20:10,840 --> 00:20:14,520 Speaker 9: I think you are going to see the Argentine professional 382 00:20:14,520 --> 00:20:17,119 Speaker 9: clubs compete at a higher level at the international stage, 383 00:20:17,400 --> 00:20:19,640 Speaker 9: which is where they were about. You know, two decades 384 00:20:19,640 --> 00:20:23,560 Speaker 9: ago there were friendlies between Boca Juniors and some of 385 00:20:23,560 --> 00:20:28,520 Speaker 9: the Spanish clubs where Boca either won or pulled a draw, 386 00:20:29,160 --> 00:20:32,200 Speaker 9: which at the time was unheard of. It just never 387 00:20:32,400 --> 00:20:35,800 Speaker 9: you could never conceive of that. So it would be really, 388 00:20:35,920 --> 00:20:40,119 Speaker 9: I think special for Argentine clubs that are considered you know, 389 00:20:40,160 --> 00:20:44,080 Speaker 9: going to an Argentine football game is an incredible experience, 390 00:20:44,160 --> 00:20:46,399 Speaker 9: and to see that happen on an international stage like 391 00:20:46,400 --> 00:20:49,560 Speaker 9: the FIFA Club Cup would be really really special. But 392 00:20:50,160 --> 00:20:52,679 Speaker 9: I can confirm, and I know people like Matt Damon 393 00:20:52,960 --> 00:20:55,320 Speaker 9: can confirm that going to a Boca Juniors game or 394 00:20:55,320 --> 00:20:57,800 Speaker 9: a River Plate game is one of the most phenomenal 395 00:20:57,840 --> 00:21:00,560 Speaker 9: sports experiences any fan could ever have. And I'm not 396 00:21:00,600 --> 00:21:02,840 Speaker 9: talking about a championship. I mean you can go to 397 00:21:02,880 --> 00:21:05,960 Speaker 9: a regular season game and it's nearly a religious experience. 398 00:21:06,000 --> 00:21:08,520 Speaker 9: It's really incredible, the passion the fans bring every night. 399 00:21:08,880 --> 00:21:10,639 Speaker 5: Patrick, I have to ask this. I mean, we have 400 00:21:10,760 --> 00:21:13,200 Speaker 5: you on the phone here, you're dialing in from Buenos Airas, 401 00:21:13,280 --> 00:21:16,240 Speaker 5: and you know what is sentiment like on the ground 402 00:21:16,400 --> 00:21:19,120 Speaker 5: in Argentina right now? I mean it's got to be positive. 403 00:21:19,160 --> 00:21:21,640 Speaker 5: I mean, through all the austerity measures, that Malay has 404 00:21:21,680 --> 00:21:24,320 Speaker 5: passed through in the last year. You know, he's still 405 00:21:24,400 --> 00:21:27,720 Speaker 5: you know, it seems that the populace is still very 406 00:21:27,800 --> 00:21:29,800 Speaker 5: very pleased with him, that they're still very much on 407 00:21:29,880 --> 00:21:31,920 Speaker 5: his side and in support of him. You know, talk 408 00:21:31,920 --> 00:21:33,840 Speaker 5: to us a little bit about you know, what you're 409 00:21:33,880 --> 00:21:34,760 Speaker 5: seeing on the ground. 410 00:21:35,200 --> 00:21:38,840 Speaker 9: Yeah, Melay is still enjoying a relatively high level of 411 00:21:38,880 --> 00:21:41,879 Speaker 9: approval rating, especially when you think about what you the 412 00:21:42,160 --> 00:21:46,239 Speaker 9: measures you outlined, a historic austerity campaign that saw the 413 00:21:46,240 --> 00:21:50,960 Speaker 9: cost of living increase significantly in Argentina. Milee still has 414 00:21:50,960 --> 00:21:54,240 Speaker 9: approval ratings around forty seven percent. Those of stayed stable 415 00:21:54,720 --> 00:21:59,399 Speaker 9: for several months at this point, and they're really He 416 00:21:59,560 --> 00:22:02,280 Speaker 9: only stays to benefit in the upcoming months as the 417 00:22:02,359 --> 00:22:06,760 Speaker 9: economy is expected to continue recovering from a pretty brutal recession. 418 00:22:07,000 --> 00:22:10,400 Speaker 9: But the government published economic activity data that showed five 419 00:22:10,440 --> 00:22:13,800 Speaker 9: percent annual growth in December. That's one of the highest 420 00:22:13,840 --> 00:22:18,200 Speaker 9: figures in years. So Malay has a stable exchange rate, 421 00:22:18,640 --> 00:22:23,240 Speaker 9: lowering inflation, and an economy that's recovering with pretty stable unemployment. 422 00:22:23,280 --> 00:22:26,240 Speaker 9: At the moment, the wind is at its back his 423 00:22:26,359 --> 00:22:31,359 Speaker 9: back for the economy. Melay is benefiting, but he's dealing 424 00:22:31,400 --> 00:22:36,439 Speaker 9: with some say some issues on the sidelines that investors 425 00:22:36,720 --> 00:22:40,639 Speaker 9: would like him to, you know, get off stop speaking about. 426 00:22:40,680 --> 00:22:44,240 Speaker 9: But if Malay can focus on the IMF program and 427 00:22:44,320 --> 00:22:48,960 Speaker 9: economic recovery in unwinding some of the currency controls and 428 00:22:49,160 --> 00:22:53,240 Speaker 9: other restrictions that he inherited from the previous government, you know, 429 00:22:53,320 --> 00:22:55,480 Speaker 9: he could be looking at a big victory when Argentina 430 00:22:55,520 --> 00:22:58,520 Speaker 9: gets to midterm elections in October, and that would help 431 00:22:58,560 --> 00:23:01,080 Speaker 9: him advance his pro mark agenda even more. 432 00:23:01,320 --> 00:23:03,919 Speaker 2: I know we're running out of time, Patrick, but I 433 00:23:04,000 --> 00:23:05,600 Speaker 2: want to try to kind of put a bow on 434 00:23:05,640 --> 00:23:11,000 Speaker 2: it about Malay before he had taken over, with his 435 00:23:11,080 --> 00:23:16,560 Speaker 2: economic policies, obscure markets. We're talking like Paraguay and Bolivia 436 00:23:16,640 --> 00:23:19,480 Speaker 2: because we all know that they're like super soccer markets. 437 00:23:20,160 --> 00:23:26,480 Speaker 2: They were luring the Argentine players away before Malay came in. 438 00:23:27,119 --> 00:23:32,080 Speaker 9: Absolutely, we had inflation reach nearly three hundred percent last 439 00:23:32,119 --> 00:23:34,560 Speaker 9: year as Mila was trying to implement some of the 440 00:23:34,680 --> 00:23:38,920 Speaker 9: necessary cold medicine Argentina needed because his predecessors were simply 441 00:23:39,400 --> 00:23:42,719 Speaker 9: spending too much money and printing too much money, and 442 00:23:42,800 --> 00:23:46,119 Speaker 9: that resulted in sort of a carving out of the 443 00:23:46,160 --> 00:23:49,919 Speaker 9: soccer talent in Argentina, where some players felt forced to 444 00:23:49,960 --> 00:23:54,960 Speaker 9: go to much smaller markets because they have more stable currencies. 445 00:23:55,560 --> 00:24:00,240 Speaker 9: It really is unimaginable, the change from a just a 446 00:24:00,240 --> 00:24:03,160 Speaker 9: couple of years ago when players were going anywhere they 447 00:24:03,160 --> 00:24:05,960 Speaker 9: could because they can't get paid in dollars here. They 448 00:24:06,000 --> 00:24:08,840 Speaker 9: have to be paid in paesos. You know, the currency 449 00:24:09,840 --> 00:24:13,320 Speaker 9: was losing. It was, you know, has lost since I've 450 00:24:13,400 --> 00:24:16,280 Speaker 9: arrived in twenty eighteen, the peso has lost ninety five 451 00:24:16,320 --> 00:24:21,920 Speaker 9: percent of its value. So we've had some of many 452 00:24:21,960 --> 00:24:24,880 Speaker 9: of the bills, the cash bills that I first used 453 00:24:24,920 --> 00:24:27,000 Speaker 9: to have when you got to the ATM here, they 454 00:24:27,000 --> 00:24:29,600 Speaker 9: no longer exist because the government stopped printing him They're 455 00:24:29,720 --> 00:24:34,119 Speaker 9: worth nearly nothing. So the impact that Melee is having 456 00:24:34,520 --> 00:24:36,679 Speaker 9: on the soccer league is really a reflection of his 457 00:24:36,760 --> 00:24:39,720 Speaker 9: ability to stabilize the economy. But there's a lot of 458 00:24:39,800 --> 00:24:43,920 Speaker 9: questions about whether his policies are sustainable in the near 459 00:24:44,000 --> 00:24:47,440 Speaker 9: term or after this year because Argentina has midterm elections. 460 00:24:48,240 --> 00:24:51,040 Speaker 9: But also he still has a whole lot of homework 461 00:24:51,040 --> 00:24:54,280 Speaker 9: to do on the economy when it comes to, you know, 462 00:24:54,480 --> 00:24:57,040 Speaker 9: showing up the central bank making sure they have the 463 00:24:57,080 --> 00:24:59,960 Speaker 9: stability to keep the Paso on a more stable path. 464 00:25:00,359 --> 00:25:02,840 Speaker 9: So there's a lot of questions about his economic policies, 465 00:25:02,880 --> 00:25:06,600 Speaker 9: but for now he's benefiting from a lot of social support. 466 00:25:06,760 --> 00:25:11,040 Speaker 9: People like this economic program. They feel like the worst 467 00:25:11,080 --> 00:25:13,240 Speaker 9: is behind them in terms of the recession and the 468 00:25:13,280 --> 00:25:17,200 Speaker 9: biggest of the austerity measures, and it looks like me 469 00:25:17,320 --> 00:25:20,240 Speaker 9: Lay could be heading towards a big victory when we 470 00:25:20,280 --> 00:25:22,280 Speaker 9: get to those midterms later this year. 471 00:25:22,640 --> 00:25:26,800 Speaker 2: Buenos Ares Bureau Chief Patrick Gillespie, thank you so much 472 00:25:26,880 --> 00:25:29,000 Speaker 2: for joining us on the Bloomberg Business of Sports. We 473 00:25:29,040 --> 00:25:30,160 Speaker 2: really do appreciate it. 474 00:25:30,200 --> 00:25:30,920 Speaker 9: Thank you so much. 475 00:25:31,240 --> 00:25:36,120 Speaker 2: Our thanks to Bloomberg Buenos Aires Bureau Chief Patrick Gillespie 476 00:25:36,160 --> 00:25:39,119 Speaker 2: for joining us. Up next, Carla Food joins the conversation 477 00:25:39,400 --> 00:25:42,960 Speaker 2: as we talk sports, gambling and bring in the founder 478 00:25:43,000 --> 00:25:47,040 Speaker 2: and CEO of Gambling dot Com group for Damian Sasaur 479 00:25:47,200 --> 00:25:50,159 Speaker 2: and Vanessa Verdomo. I'm Michael Barr. You're listening to the 480 00:25:50,160 --> 00:25:54,000 Speaker 2: Bloomberg Business of Sports from Bloomberg Radio around the world. 481 00:25:59,400 --> 00:26:03,399 Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio. 482 00:26:04,560 --> 00:26:07,120 Speaker 2: Thanks for joining us on the Bloomberg Business of Sports, 483 00:26:07,240 --> 00:26:09,879 Speaker 2: where we explore the big money issues in the world 484 00:26:09,880 --> 00:26:13,960 Speaker 2: of sports. I'm Michael Barr, along with Scarlettfu and Damian Sasaur. 485 00:26:14,400 --> 00:26:19,879 Speaker 2: Gambling dot Com Group, trading under the ticket symbol gamb 486 00:26:20,440 --> 00:26:24,119 Speaker 2: is a leading sports gambling affiliate working as a liaison 487 00:26:24,200 --> 00:26:28,560 Speaker 2: between the growing sports gambling public and the popular sportsbooks 488 00:26:28,560 --> 00:26:33,280 Speaker 2: and regulated online casinos. Gambling dot Com Group's founder and CEO, 489 00:26:33,480 --> 00:26:36,760 Speaker 2: Charles Gillespie joins us now to talk about the platform 490 00:26:36,920 --> 00:26:41,000 Speaker 2: and about the sports gaming landscape. Charles, Welcome to the 491 00:26:41,040 --> 00:26:42,480 Speaker 2: Bloomberg Business of sports. 492 00:26:42,880 --> 00:26:44,680 Speaker 6: Great to be here, guys. How can I help? 493 00:26:45,000 --> 00:26:50,320 Speaker 2: Well, you're talking to a degenerate gambler, But I love Listen, 494 00:26:50,440 --> 00:26:54,600 Speaker 2: I love online gambling. I don't get carried away with it, 495 00:26:55,200 --> 00:26:57,919 Speaker 2: and I think, and I'm going to start right from 496 00:26:57,960 --> 00:27:00,280 Speaker 2: the beginning. That's the key to the whole Google. Lot 497 00:27:00,280 --> 00:27:02,000 Speaker 2: to talk about it, but that's the key to the 498 00:27:02,040 --> 00:27:04,800 Speaker 2: whole thing. Nothing wrong. If you want to go and 499 00:27:04,920 --> 00:27:07,679 Speaker 2: gamble your five ten dollars and put it on the 500 00:27:07,680 --> 00:27:09,800 Speaker 2: Detroit Tigers, you go ahead. 501 00:27:10,240 --> 00:27:11,120 Speaker 6: That's absolutely right. 502 00:27:11,160 --> 00:27:13,199 Speaker 3: I mean, you know, the industry in the United States 503 00:27:13,320 --> 00:27:18,480 Speaker 3: wasn't really regulated in to any meaningful extent until about 504 00:27:18,560 --> 00:27:22,680 Speaker 3: twenty eighteen, when the Supreme Court decision allowed states to 505 00:27:22,720 --> 00:27:26,080 Speaker 3: start regulating and that's brought the business out of the shadows. 506 00:27:26,119 --> 00:27:29,000 Speaker 3: You know, it's not like people weren't betting online prior 507 00:27:29,040 --> 00:27:32,879 Speaker 3: to twenty eighteen. It was just entirely offshore. So you know, 508 00:27:32,920 --> 00:27:37,440 Speaker 3: in order to have proper safeguards for people and identify 509 00:27:37,600 --> 00:27:42,159 Speaker 3: problem gambling early, it's critical that the activity actually be 510 00:27:42,880 --> 00:27:44,399 Speaker 3: regulated and on shore. 511 00:27:44,920 --> 00:27:47,160 Speaker 6: Otherwise you've got no visibility into it and you. 512 00:27:47,080 --> 00:27:49,879 Speaker 3: Can't help these people, which of course, you know, problem 513 00:27:49,880 --> 00:27:53,320 Speaker 3: gambling is is it's a problem for the for the industry. 514 00:27:53,359 --> 00:27:56,800 Speaker 3: It's everybody's problem, and nobody wants to, you know, see 515 00:27:56,800 --> 00:27:59,480 Speaker 3: these people struggle, so it's a critical focus area for 516 00:27:59,520 --> 00:28:00,639 Speaker 3: the whole indust that's. 517 00:28:00,560 --> 00:28:02,760 Speaker 2: Right, Scarlett. I was caught up in the Kingman Islands 518 00:28:02,800 --> 00:28:08,080 Speaker 2: era Man, you know, before it was regulated. Thank god 519 00:28:08,119 --> 00:28:09,159 Speaker 2: it's regulated now. 520 00:28:09,040 --> 00:28:11,560 Speaker 4: Scarlett Charles, you've come on Bloomberg Radio in the past 521 00:28:11,560 --> 00:28:13,720 Speaker 4: to tell us how the online gambling industry is pretty 522 00:28:13,760 --> 00:28:16,600 Speaker 4: resilient to the swings of the economy, the ups and downs. 523 00:28:16,920 --> 00:28:19,359 Speaker 4: For example, in the UK, gambling growing at more than 524 00:28:19,400 --> 00:28:22,119 Speaker 4: eight percent a year when GDP is forecast to be 525 00:28:22,119 --> 00:28:24,600 Speaker 4: sub one percent for a second year. Talk about the 526 00:28:24,640 --> 00:28:27,600 Speaker 4: growth of online gambling in the US, especially sports betting, 527 00:28:28,000 --> 00:28:31,720 Speaker 4: and the seasonal pattern of that growth. I'm wondering how 528 00:28:31,800 --> 00:28:34,040 Speaker 4: much of a correlation there is with calendar events like 529 00:28:34,320 --> 00:28:37,040 Speaker 4: the super Bowl in February or March Madness, or the 530 00:28:37,160 --> 00:28:39,720 Speaker 4: NBA Finals in June or the World Series in October. 531 00:28:40,120 --> 00:28:43,240 Speaker 3: The growth of the industry in the US absolutely is 532 00:28:43,320 --> 00:28:47,400 Speaker 3: driven in part by the sporting calendar. The super Bowl, 533 00:28:47,400 --> 00:28:50,240 Speaker 3: of course, the biggest individual betting event of the year. 534 00:28:50,840 --> 00:28:54,080 Speaker 3: March Madness and aggregate would have a lot more handle 535 00:28:54,840 --> 00:28:57,840 Speaker 3: than the super Bowl, and that's obviously because it's many 536 00:28:57,840 --> 00:29:00,960 Speaker 3: more events, it's not just one event. Another big driver 537 00:29:01,000 --> 00:29:03,240 Speaker 3: in the US is every time there's a new state 538 00:29:03,480 --> 00:29:07,800 Speaker 3: which goes live. So at this point, Missouri. 539 00:29:07,600 --> 00:29:08,480 Speaker 4: That's a one time thing. 540 00:29:09,000 --> 00:29:10,920 Speaker 3: Well it's a one time thing, but then it kind 541 00:29:10,920 --> 00:29:13,680 Speaker 3: of permanently expands the tam right, you know, there's a 542 00:29:13,800 --> 00:29:16,680 Speaker 3: kind of rush of activity when the new state goes live, 543 00:29:17,840 --> 00:29:19,960 Speaker 3: all that pent up demand. You know, people that have 544 00:29:20,000 --> 00:29:23,560 Speaker 3: been waiting to register accounts go out and set up 545 00:29:23,560 --> 00:29:26,080 Speaker 3: their accounts, and then it quiets down a bit. But 546 00:29:26,120 --> 00:29:29,280 Speaker 3: then you're going to have, you know, fifteen twenty thirty 547 00:29:29,560 --> 00:29:33,480 Speaker 3: years of fairly reliable growth. You know, you just look 548 00:29:33,480 --> 00:29:35,600 Speaker 3: at the UK, as you pointed out, they regulated online 549 00:29:35,600 --> 00:29:38,160 Speaker 3: gambling in two thousand and five and it's still growing 550 00:29:38,200 --> 00:29:41,880 Speaker 3: by nearly double digit rates, is right, And you know, 551 00:29:41,920 --> 00:29:45,720 Speaker 3: with our business, we're making more money in the UK 552 00:29:45,840 --> 00:29:48,239 Speaker 3: than we have ever made before, despite the fact that 553 00:29:48,280 --> 00:29:51,800 Speaker 3: this this business has been around for some time. Just 554 00:29:52,040 --> 00:29:54,280 Speaker 3: to clarify for your for all the listeners out there 555 00:29:54,320 --> 00:29:57,200 Speaker 3: at gambling dot com, it's not actually an online gambling site, 556 00:29:57,280 --> 00:29:58,840 Speaker 3: despite the names. 557 00:29:59,600 --> 00:30:01,560 Speaker 6: It's a a. 558 00:30:00,840 --> 00:30:05,000 Speaker 3: Website to help people find the best places to play online. 559 00:30:05,000 --> 00:30:08,280 Speaker 3: So whether it's sports betting or online casino, there's a 560 00:30:08,320 --> 00:30:10,240 Speaker 3: lot of different options out there, especially in the US. 561 00:30:10,280 --> 00:30:11,800 Speaker 3: You know, every single state is different. 562 00:30:12,120 --> 00:30:15,560 Speaker 5: Charles, you're the group CEO of gambling dot Com group, 563 00:30:15,560 --> 00:30:17,360 Speaker 5: but you started the company in two thousand and six. 564 00:30:17,400 --> 00:30:20,200 Speaker 5: You're an American, you went to UNC Chapel Hill, but 565 00:30:20,240 --> 00:30:22,360 Speaker 5: you're living in Europe. You're actually living in Monte Carlo, 566 00:30:22,400 --> 00:30:24,160 Speaker 5: one of my most favorite places. They know me over 567 00:30:24,200 --> 00:30:26,920 Speaker 5: there by name, and I really just wanted to ask you, 568 00:30:26,920 --> 00:30:30,120 Speaker 5: you know now that gambling has really arrived here in 569 00:30:30,120 --> 00:30:32,840 Speaker 5: the United States. I mean, you're really well positioned having 570 00:30:32,880 --> 00:30:35,840 Speaker 5: lived there for a very long time to see how 571 00:30:35,920 --> 00:30:38,840 Speaker 5: it affected Europe before the US, right, because gambling was 572 00:30:38,880 --> 00:30:40,840 Speaker 5: legal there before us. So talk to us a little 573 00:30:40,840 --> 00:30:43,120 Speaker 5: bit about what comes next for the United States of 574 00:30:43,120 --> 00:30:45,160 Speaker 5: America for sports gambling here in the US. If you 575 00:30:45,200 --> 00:30:46,880 Speaker 5: had to look out over the next say, two three, 576 00:30:47,000 --> 00:30:49,400 Speaker 5: five years, you know, do you expect every state to 577 00:30:49,480 --> 00:30:52,280 Speaker 5: legalize sports gambling? I mean, is it unique to the 578 00:30:52,400 --> 00:30:54,280 Speaker 5: US that you know it's taking us this long to 579 00:30:54,280 --> 00:30:55,680 Speaker 5: get there. I'm just curious to hear your thoughts. 580 00:30:55,920 --> 00:30:58,320 Speaker 3: Yeah, great questions, and I'm very happy to talk about that. 581 00:30:58,360 --> 00:31:00,240 Speaker 3: We have a bit of a unique perspective in this 582 00:31:00,320 --> 00:31:02,560 Speaker 3: because I grew up in the States. I grew up 583 00:31:02,600 --> 00:31:05,320 Speaker 3: in North Carolina. I went to UNC. When I was 584 00:31:05,360 --> 00:31:07,480 Speaker 3: graduating from UNC, I wanted to start a business in 585 00:31:07,480 --> 00:31:10,680 Speaker 3: the online gaming industry. But the industry didn't exist in 586 00:31:10,720 --> 00:31:11,280 Speaker 3: the United States. 587 00:31:11,320 --> 00:31:12,760 Speaker 4: It wasn't ahead of your time. 588 00:31:12,880 --> 00:31:14,960 Speaker 6: Yeah, you just couldn't do it here. 589 00:31:15,800 --> 00:31:17,560 Speaker 3: So I left and we ended up building one of 590 00:31:17,560 --> 00:31:20,760 Speaker 3: the biggest businesses in the industry in Europe. And you know, 591 00:31:20,760 --> 00:31:23,160 Speaker 3: on the back of the power of the UK and 592 00:31:23,160 --> 00:31:27,080 Speaker 3: and and you know other European markets, Ireland, Sweden, Italy, 593 00:31:27,120 --> 00:31:29,440 Speaker 3: and Germany. I mean, it's you know, there's a lot 594 00:31:29,760 --> 00:31:33,320 Speaker 3: of regulation. The industry was regulated first in Europe. You know, 595 00:31:33,360 --> 00:31:36,360 Speaker 3: the UK has been the biggest regulated online gamiling market, 596 00:31:37,040 --> 00:31:40,320 Speaker 3: you know, basically until now. It still is bigger than 597 00:31:40,360 --> 00:31:43,360 Speaker 3: any individual US state right now, the US and aggregate, 598 00:31:43,400 --> 00:31:45,360 Speaker 3: if you count you know, all the states, it's bigger 599 00:31:45,400 --> 00:31:48,520 Speaker 3: than the UK. So that has really set the tone 600 00:31:49,800 --> 00:31:52,120 Speaker 3: and for the whole industry. Right you know, a lot 601 00:31:52,160 --> 00:31:55,480 Speaker 3: of the technology companies, marketing companies, data services companies, they're 602 00:31:55,520 --> 00:31:58,360 Speaker 3: all European. Actually, biggest online gaming company in the world 603 00:31:58,440 --> 00:32:02,280 Speaker 3: is flutter based in Dublin. But of course you've got DraftKings, 604 00:32:03,040 --> 00:32:06,520 Speaker 3: you know, in Flutternow owns fan Duel, And you've had 605 00:32:06,520 --> 00:32:10,200 Speaker 3: this coming of age in America of this industry finally, 606 00:32:10,280 --> 00:32:13,480 Speaker 3: but because it was so late to the party, it's 607 00:32:13,520 --> 00:32:17,000 Speaker 3: been this just absolute mad rush for everyone in the 608 00:32:17,120 --> 00:32:18,720 Speaker 3: US to kind of catch up. But you know, you 609 00:32:18,800 --> 00:32:24,640 Speaker 3: talk endlessly about you know, American technology hegemony and you know, Google, Apple, 610 00:32:24,960 --> 00:32:28,160 Speaker 3: every Magnificent seven, all this stuff. Right, It's it's quite 611 00:32:28,240 --> 00:32:32,200 Speaker 3: rare that you can find an example of Europe leading 612 00:32:32,640 --> 00:32:35,880 Speaker 3: in an in any area of technology. But they really 613 00:32:35,920 --> 00:32:38,680 Speaker 3: are truly ahead of the United States still when it 614 00:32:38,720 --> 00:32:41,360 Speaker 3: comes to everything related to the online gambling industry. And 615 00:32:41,360 --> 00:32:43,240 Speaker 3: that's not a slight that you know, some of the 616 00:32:43,240 --> 00:32:46,720 Speaker 3: big American suppliers or operators, which are amazing businesses. But 617 00:32:46,920 --> 00:32:48,320 Speaker 3: you know, if you just look at the balance of 618 00:32:48,360 --> 00:32:51,960 Speaker 3: the industry, it is still fundamentally not led by the 619 00:32:52,080 --> 00:32:56,080 Speaker 3: United States. Now, five or ten years from now, anything's possible. 620 00:32:56,120 --> 00:32:58,040 Speaker 3: You know, I think the industry is going to continue 621 00:32:58,080 --> 00:33:01,920 Speaker 3: to grow up in the US. The center of gravity 622 00:33:01,960 --> 00:33:04,160 Speaker 3: of the industry in terms of you know, where is 623 00:33:04,200 --> 00:33:07,440 Speaker 3: the heat, where is the investment, where's the growth? That's 624 00:33:07,480 --> 00:33:11,440 Speaker 3: clearly been the United States since twenty eighteen. You've got 625 00:33:11,440 --> 00:33:14,440 Speaker 3: thirty plus states now with sports betting, You've got a 626 00:33:14,480 --> 00:33:18,440 Speaker 3: handful of states with these online casino games, and that 627 00:33:18,600 --> 00:33:22,120 Speaker 3: still works. It works because they have both sports betting 628 00:33:22,480 --> 00:33:24,959 Speaker 3: and the online casino games, which kind of prop each 629 00:33:25,000 --> 00:33:27,480 Speaker 3: other up. It's a one plus one equals more than 630 00:33:27,480 --> 00:33:28,520 Speaker 3: two sort of situation. 631 00:33:29,320 --> 00:33:32,120 Speaker 4: Charles, You've made a number of acquisitions in the past year. 632 00:33:32,480 --> 00:33:35,240 Speaker 4: In April last April, you bought Excelmedia sports betting and 633 00:33:35,280 --> 00:33:38,840 Speaker 4: gaming assets in Europe and Canada. More recently, in December, 634 00:33:38,880 --> 00:33:41,040 Speaker 4: you bought odds Jam, which has been described as a 635 00:33:41,040 --> 00:33:44,360 Speaker 4: Bloomberg terminal for sports betters, which I like that comparison 636 00:33:44,400 --> 00:33:47,520 Speaker 4: a lot. What other capabilities are you looking to grow 637 00:33:47,560 --> 00:33:49,640 Speaker 4: through purchases rather than organically. 638 00:33:51,480 --> 00:33:52,080 Speaker 6: So the Heart and. 639 00:33:52,040 --> 00:33:55,360 Speaker 3: Solar business is a affiliate marketing business for the online 640 00:33:55,400 --> 00:33:56,160 Speaker 3: gambling industry. 641 00:33:57,320 --> 00:33:59,240 Speaker 6: It's an incredible business. We drive a. 642 00:33:59,240 --> 00:34:04,440 Speaker 3: Lot of our traffic from Google Search, natural search. We 643 00:34:04,480 --> 00:34:06,800 Speaker 3: know we buy a little bit of media, but it's 644 00:34:06,800 --> 00:34:10,720 Speaker 3: fundamentally a business that drives its revenue from natural search, 645 00:34:10,760 --> 00:34:14,440 Speaker 3: and that's a very high margin business. But you know, 646 00:34:14,440 --> 00:34:17,120 Speaker 3: we're a publicly traded company and as we think about 647 00:34:17,880 --> 00:34:21,640 Speaker 3: our future is a is a publicly traded company that 648 00:34:21,640 --> 00:34:24,920 Speaker 3: that revenue from the affiliate business. It can be a 649 00:34:24,960 --> 00:34:28,640 Speaker 3: little bit volatile, you know. Frankly, it's a phenomenal business 650 00:34:29,239 --> 00:34:33,279 Speaker 3: and extremely cash generative, but as a listed company you 651 00:34:33,640 --> 00:34:36,319 Speaker 3: got to, you know, manage the earnings core to quarter. 652 00:34:37,080 --> 00:34:41,160 Speaker 3: And we like these subscription revenue businesses. So when you 653 00:34:41,200 --> 00:34:45,600 Speaker 3: think about odds Jam, you've got a highly predictable B 654 00:34:45,760 --> 00:34:49,360 Speaker 3: two C subscription business. And they also have a B 655 00:34:49,440 --> 00:34:52,720 Speaker 3: to B side of that that business called Optic Gods. 656 00:34:53,960 --> 00:34:56,840 Speaker 3: They sell that to you know, that's really the Bloomberg 657 00:34:56,920 --> 00:34:59,640 Speaker 3: terminal if you will. That's the more sophisticated product which 658 00:34:59,640 --> 00:35:02,360 Speaker 3: they actual we sell to the online gambling operators themselves 659 00:35:02,400 --> 00:35:04,640 Speaker 3: so that they can manage their risks. You know, they 660 00:35:04,640 --> 00:35:05,960 Speaker 3: want to make sure they're on the right side of 661 00:35:06,000 --> 00:35:08,080 Speaker 3: every market. They're not, you know, too far off of 662 00:35:08,120 --> 00:35:12,440 Speaker 3: the market and everything. Both of those businesses. The revenue 663 00:35:12,440 --> 00:35:15,520 Speaker 3: there is more predictable, right, it's longer term contracts, it's 664 00:35:15,719 --> 00:35:19,200 Speaker 3: it's it's it's just we can forecast that with a 665 00:35:19,239 --> 00:35:22,319 Speaker 3: higher degree of precision. So when you mix that into 666 00:35:22,360 --> 00:35:26,960 Speaker 3: our overall revenue profile, it gives us, you know, a 667 00:35:27,040 --> 00:35:29,359 Speaker 3: greater kind of control quarter to quarter to see where 668 00:35:29,360 --> 00:35:32,200 Speaker 3: we're going to land. It just makes it works well 669 00:35:32,200 --> 00:35:34,200 Speaker 3: in the public company context. But at the same time, 670 00:35:34,800 --> 00:35:38,080 Speaker 3: their margins are actually even higher than our margins are 671 00:35:38,120 --> 00:35:42,319 Speaker 3: already very high margins. So we love that acquisition. It's 672 00:35:42,360 --> 00:35:45,239 Speaker 3: gone over really well with all of our investors. That 673 00:35:45,280 --> 00:35:47,919 Speaker 3: really ticked all the right boxes, and there's a bright 674 00:35:47,960 --> 00:35:48,480 Speaker 3: future for that. 675 00:35:48,920 --> 00:35:51,799 Speaker 2: Now. To give you how much money is out there, 676 00:35:51,840 --> 00:35:54,640 Speaker 2: we're talking last year about one hundred and fifty billion 677 00:35:54,840 --> 00:36:00,880 Speaker 2: dollars in the industry online gaming alone. Now this year, yes, 678 00:36:01,000 --> 00:36:04,919 Speaker 2: only Missouri is expected to approve it, but it's going 679 00:36:04,960 --> 00:36:08,800 Speaker 2: to grow because we did a story recently Texas Governor 680 00:36:08,800 --> 00:36:12,200 Speaker 2: Greg Abbott, who was totally against it when it first 681 00:36:12,200 --> 00:36:16,480 Speaker 2: came out, and recently said, you know, maybe this isn't 682 00:36:16,520 --> 00:36:20,440 Speaker 2: such a bad idea. So I see a lot of 683 00:36:20,480 --> 00:36:21,040 Speaker 2: growth in this. 684 00:36:21,840 --> 00:36:24,080 Speaker 3: The only thing we know for sure right now in 685 00:36:24,160 --> 00:36:27,200 Speaker 3: terms of new state launches is that Missouri will launch. 686 00:36:27,800 --> 00:36:29,520 Speaker 3: You know, that's already been voted on. That was a 687 00:36:29,560 --> 00:36:33,800 Speaker 3: referendum in November, and in the terms of that referendum, 688 00:36:33,840 --> 00:36:35,840 Speaker 3: they have to launch by December. So that's one hundred 689 00:36:35,840 --> 00:36:39,239 Speaker 3: percent coming and is incremental to our guidance because we 690 00:36:39,280 --> 00:36:43,440 Speaker 3: don't put new state launches in our guidance until the 691 00:36:43,560 --> 00:36:48,960 Speaker 3: date of launches is crystal clear. But all of the 692 00:36:49,000 --> 00:36:52,359 Speaker 3: other states are, you know, still looking at it right now. 693 00:36:52,400 --> 00:36:54,840 Speaker 3: So a lot of these state legislators they meet in 694 00:36:54,880 --> 00:36:56,759 Speaker 3: the first couple of months of the year, so a 695 00:36:56,760 --> 00:36:59,080 Speaker 3: lot of these folks are in session right now, including Texas. 696 00:36:59,080 --> 00:37:01,439 Speaker 6: Texas every other year, but they're in session now. They're 697 00:37:01,480 --> 00:37:02,000 Speaker 6: looking at it. 698 00:37:03,080 --> 00:37:05,960 Speaker 3: There's tons of bills both on the sports betting and 699 00:37:06,080 --> 00:37:09,000 Speaker 3: I gaming side in process now that have been filed. 700 00:37:10,480 --> 00:37:15,480 Speaker 3: It is certainly my view and that of the rest 701 00:37:15,520 --> 00:37:17,960 Speaker 3: of the senior people in the industry that will get 702 00:37:18,000 --> 00:37:20,920 Speaker 3: a few more things through this year. It's always hard 703 00:37:20,960 --> 00:37:23,320 Speaker 3: to say exactly what, but you know, I'd be shocked 704 00:37:23,320 --> 00:37:27,200 Speaker 3: if we don't get you know, two or three sports 705 00:37:27,280 --> 00:37:29,480 Speaker 3: betting states and two or three I gaming states. 706 00:37:29,480 --> 00:37:30,799 Speaker 6: And but you know, it. 707 00:37:30,760 --> 00:37:33,000 Speaker 3: Takes it can take six, nine, twelve months for them 708 00:37:33,040 --> 00:37:35,560 Speaker 3: to launch, right so even if they get the legislation 709 00:37:35,640 --> 00:37:37,200 Speaker 3: finished in the first half of the year, they may 710 00:37:37,200 --> 00:37:41,200 Speaker 3: not launch until twenty twenty six. And you know, of 711 00:37:41,200 --> 00:37:43,319 Speaker 3: course with these new as we discussed these new state 712 00:37:43,360 --> 00:37:46,640 Speaker 3: launches being kind of big moments of business for us, 713 00:37:47,840 --> 00:37:49,880 Speaker 3: we don't add it into our guidance until we're know, 714 00:37:50,000 --> 00:37:52,160 Speaker 3: you know, exactly when it's going to launch, because you know, 715 00:37:52,200 --> 00:37:54,520 Speaker 3: we need to show where that which quarter of that 716 00:37:54,560 --> 00:37:55,520 Speaker 3: revenue is going to fall into. 717 00:37:56,560 --> 00:37:59,600 Speaker 2: Charles Gillespie, Oh, my goodness, Grace, as we talk in 718 00:37:59,680 --> 00:38:02,240 Speaker 2: the game, and I just said I was out before 719 00:38:02,280 --> 00:38:04,919 Speaker 2: we came into the studio, as you know, I said, 720 00:38:05,000 --> 00:38:08,120 Speaker 2: my goodness, are you ready, Michael, I said, yeah, that's 721 00:38:08,200 --> 00:38:11,560 Speaker 2: like the rat talking about the cheese man talking about gambling. Here. 722 00:38:12,080 --> 00:38:15,240 Speaker 2: Charles Gillespie, thank you for coming on the Bloomberg Business 723 00:38:15,239 --> 00:38:19,640 Speaker 2: of Sports. Gambling dot Com CEO right here in studio. 724 00:38:19,760 --> 00:38:23,160 Speaker 2: Thank you, sir, my pleasure. A special thanks to Charles 725 00:38:23,160 --> 00:38:26,480 Speaker 2: Gilaspie for joining us. He is the founder and CEO 726 00:38:26,719 --> 00:38:30,440 Speaker 2: at Gambling dot Com group, and thanks to you for 727 00:38:30,520 --> 00:38:34,960 Speaker 2: joining us. For my colleagues Damien Sasauer, Scarlettfoo and Vanessa Berdomo, 728 00:38:35,120 --> 00:38:37,680 Speaker 2: I'm Michael Barr. Tune in again next week for the 729 00:38:37,760 --> 00:38:40,279 Speaker 2: latest on the stories moving big old money in the 730 00:38:40,280 --> 00:38:43,360 Speaker 2: world of sports. You're listening to The Bloomberg Business of 731 00:38:43,400 --> 00:38:46,160 Speaker 2: Sports from Bloomberg Radio around the world.