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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: This is a Bloomberg Business Flash and I'm Karin moscown

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Speaker 1: the Bloomberg Futures Report, brought to you by Interactive Brokers

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Speaker 1: c m E Group and futures this morning are little

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Speaker 1: change to lower. SNP E Mini futures down a point

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Speaker 1: so arenaz Documuni futures. The acts in Germany is down

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Speaker 1: about two tenths percent. Ten year treasury down ten thirty seconds,

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Speaker 1: the yel to one point nine one percent, nim X

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Speaker 1: screwed oil up three tents per cent or twelve cents,

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Speaker 1: Call Mix Goal down seven tenths per cent or eight

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Speaker 1: dollars twenty cents the euro and dollar twelve sixty nine.

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Speaker 1: And Valian Pharmaceuticals International Chief executive Officer Mike Pearson will

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Speaker 1: step down. That's a Bloomberg Business Flash, Tom and Mike, Karen,

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Speaker 1: thanks so much. Sam Kennedy with us with the Boston

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Speaker 1: Red Sox as you look at the state of baseball.

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Speaker 1: But first she is at her desk putting together the

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Speaker 1: reaction of Global Wall Street to the Valiant announcements. Cynthia

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Speaker 1: Coons will join us later in the hour, but we

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Speaker 1: touch her right now with a few questions, Cynthia, were

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Speaker 1: the actions this morning of Valiant with Mr Pearson stepping

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Speaker 1: aside after succession with Mr Ackman joining the board? Is

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Speaker 1: this dictated by the board or was this dictated by

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Speaker 1: their auditors? Oh, this looks like it was the board's decision.

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Speaker 1: I mean, Robert and Grim came in and he took

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Speaker 1: over as chairman. He took that roll away from Mike

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Speaker 1: Pearson just a few weeks ago. And this looks like

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Speaker 1: the board has decided the top of the board, perhaps

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Speaker 1: even uh Mis during of himself being being moving forward

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Speaker 1: with this and Bill Lackman getting warm the voice and

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Speaker 1: pushing forward to it. But it looks like they've decided

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Speaker 1: to take control and also come out with some of

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Speaker 1: the information from this ongoing investigation that we've been waiting for.

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Speaker 1: And this is where they say that they've identified material

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Speaker 1: weaknesses and internal controls and that is what everyone had

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Speaker 1: been waiting to know if Valiant was going to put

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Speaker 1: that to rest, and now it's out on before were

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Speaker 1: you get back to your work and we'll have you

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Speaker 1: on later in the hour, Cynthia Coon's when I look

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Speaker 1: at the cell side response to this, there has to

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Speaker 1: be a clear and present valuation of the company after Pearson,

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Speaker 1: after Acman and the board do their work. Is that

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Speaker 1: at a lesser price or a higher price from where

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Speaker 1: we are now? What does the streets say? I mean,

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Speaker 1: the reality here is can Valiant cell drugs? Are Valiance

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Speaker 1: drugs going to be hurt by this reputational issue? And

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Speaker 1: is this going to affect whether or not doctors prescribed it?

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Speaker 1: That is the most fundamental thing and the most fundamental

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Speaker 1: issue as to whether or not that can pay down

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Speaker 1: their debt. So some of this reputational stuff, I think

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Speaker 1: the street will like it for the fact that Okay,

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Speaker 1: there's we've gotten a lot of stuff out on the table.

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Speaker 1: Now we can move forward. But I think the reality

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Speaker 1: is there's more certainty now and there's this issue of

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Speaker 1: that that really that's that's where we're walking a fine line,

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Speaker 1: and I think investors really just need to know that

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Speaker 1: Valiant can sell drugs. Cynthia will have you back here

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Speaker 1: in a good forty minutes. She's writing from her desk

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Speaker 1: with us rather at her desk at Bloom News. Or

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Speaker 1: she's writing up the Valiant story with our Drew Armstrong

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Speaker 1: as well. Mike. We continue with Sam Kennedy of the

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Speaker 1: Boston Red Sox. Sam, Mike and I were talking about

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Speaker 1: with you about baseball's need to find the younger generation.

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Speaker 1: I look at Red Sox behind home plate, every seat

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Speaker 1: is taken. I look at Yankee Stadium. That's Bologney. The

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Speaker 1: ultra expensive seats are usually empty except for the biggest games.

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Speaker 1: His baseball priced itself out of interest. You know, I

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Speaker 1: don't think prices is an issue around the league because

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Speaker 1: I think clubs have done a good job for the

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Speaker 1: most part. I don't want to speak for specific clubs,

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Speaker 1: but we've got the variable pricing here. Where your tickets again?

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Speaker 1: That started nine dollars um and and range up. You know,

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Speaker 1: north of d fifty dollars for general admission tickets based

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Speaker 1: upon opponent, based upon game of day of weeks, so

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Speaker 1: on and so forth. So you've got to make sure

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Speaker 1: you're efficiently prey senior inventory because the secondary market will

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Speaker 1: efficiently price your inventory. So I don't think pricing is

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Speaker 1: an issue. I think you know, we we sold out

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Speaker 1: forty of our games last year in the difficult season,

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Speaker 1: so price that really isn't an issue. You need to

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Speaker 1: make sure that you're providing a compelling product. We still

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Speaker 1: had about seventy five million fans attend our games around

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Speaker 1: the league, more than all the other major sports combined.

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Speaker 1: So we've got a great product, in my humble opinion,

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Speaker 1: the greatest game ever. But you've got to get, uh,

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Speaker 1: some of these initiatives that Commissioner Manford has taken on

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Speaker 1: the pace of game streaming games digitally, two kids iPhones,

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Speaker 1: so on and so forth. So like we talked about

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Speaker 1: earlier access than nine dollar student tickets, Uh, if if

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Speaker 1: we have help in all in love with the game,

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Speaker 1: that's really important. Well let's talk about the game off

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Speaker 1: the field. And speaking of Price, David Price, you signed

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Speaker 1: him to a seven year, two hundred and seventeen two

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Speaker 1: hundred and seventeen million all our contract. As a business model,

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Speaker 1: how do you make money when you have to pay

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Speaker 1: those kinds of contracts these days? To compete at the

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Speaker 1: upper echelons of baseball. Yeah, it's very difficult, but we

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Speaker 1: are fortunate in Boston to have a market that supports us.

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Speaker 1: I mentioned at the gate on television, UH, with concessions,

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Speaker 1: so on and so forth, we're able to afford the

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Speaker 1: resources to not only play in free agency, to hopefully

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Speaker 1: go out and get that missing piece, whether it's you know,

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Speaker 1: Kirk chilling back in two thousand and four to help

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Speaker 1: win a championship, or a Josh Beckett in two thousand

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Speaker 1: and seven, and hopefully we have our guy in two

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Speaker 1: thousand and sixteen. But we also have the resources to

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Speaker 1: work hard in scouting and player development. So look, we're

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Speaker 1: very fortunate. I've worked for the San Diego Padres, I've

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Speaker 1: worked for the New York Yankees and and now the

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Speaker 1: Red Socks. So I've been a part of different organizations,

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Speaker 1: and your your business model is different in each market.

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Speaker 1: We are blessed in Boston to be able to have

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Speaker 1: the resources to do what we've done. Sam, I was

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Speaker 1: once on Camera Square having lunch, and I saw the

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Speaker 1: police put a guy up on a street sign and

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Speaker 1: hang them from it who was scalping tickets. We've moved

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Speaker 1: from that to StubHub. You're gonna you're gonna like do

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Speaker 1: an end around stub ub. How's that gonna work out? Well,

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Speaker 1: We're really not going to do an end around StubHub. Actually,

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Speaker 1: we're we're we're going to participate um with our own

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Speaker 1: system called red Sox Replay and allow our season ticket

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Speaker 1: holders to post their tickets on our site. But they're

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Speaker 1: also of course free to post their tickets on any

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Speaker 1: third party platform, whether that StubHub or ACE tickets. In

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Speaker 1: this market, StubHub is gonna have been a great partner

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Speaker 1: for Major League Baseball in the industry as as a

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Speaker 1: ticket locally here in Boston. So we're going to participate.

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Speaker 1: We think that the secondary market, uh is obviously it's

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Speaker 1: a free market system. Uh, it's it's never going away.

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Speaker 1: But our mission is to sell pre million tickets a

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Speaker 1: year on the primary market wants a ticket is sold

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Speaker 1: and in the hands of the fans, we want them

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Speaker 1: to be able to do with that ticket what they want.

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Speaker 1: At our primary goal, I spect Sam Kennedy. Uh, I

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Speaker 1: will pray he was the president come back and come

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Speaker 1: back in a couple of months. We'll talk to business

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Speaker 1: in baseball and we'll try to get Tom's chin up.

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Speaker 1: Mr Kennedy uh in first place in Tom will be wrong.

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Speaker 1: I wonder if he serves at the best of the president.

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Speaker 1: He has the job every young lad of their childhood want.

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Speaker 1: Sam Kennedy, President of the Boston Red Sox. We will

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Speaker 1: speak with Cynthia Coons about Mr Ackman and Valiant in

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Speaker 1: this half hour of Bloomberg surveillance. We're hinting you down

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Speaker 1: to the opening bill, brought to you by the Jep

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Speaker 1: and legendary four by four capability drive by into local

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Speaker 1: Jeep dealer