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Speaker 1: This is the business of sports where in the situation

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Speaker 1: that we haven't dealt with in modern times, pandemic here

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Speaker 1: has really accelerated the investments that we've been advocating for

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Speaker 1: for years. Almost everyone else there is hoping that there's

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Speaker 1: some kind of return to normal by August September. In

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Speaker 1: depth conversations with the leaders in the sports industry, who

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Speaker 1: wants to be the sacrificial lambs that shows up at

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Speaker 1: the first big major sporting events were part of something

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Speaker 1: much bigger than the sports right now and the health

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Speaker 1: and safety of our stakeholders are both smart important every moment.

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Speaker 1: I think we're all from business respective thinking about the

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Speaker 1: impact that the virus is having across the country. Bloomberg

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Speaker 1: Business of Sports from Bloomberg Radio. I'm Jason Kelly, Mike

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Speaker 1: Lynch and Michael Barr. Over the next hour, we will

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Speaker 1: explore the big money issues in the world of sports

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Speaker 1: and talk to some of the biggest players in the industry.

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Speaker 1: Well and today we're gonna get some perspective when COVID

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Speaker 1: nineteen's effect at your local neighborhood fitness center, your workout

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Speaker 1: place that you haven't probably been to in quite some time.

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Speaker 1: We're gonna talk about both ends of the economic spectrum.

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Speaker 1: We're gonna sit down with the Planet Fitness CEO Chris

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Speaker 1: Rondo and also the chairman of Equinox Harvey speed back.

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Speaker 1: But first let's talk about, guys, some of the top

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Speaker 1: stories of the week. It's a tale of three sports

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Speaker 1: in many ways. Let's start with baseball. I feel like

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Speaker 1: there was a lot of enthusiasm here Michael Barr and

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Speaker 1: then it's really kind of ground to a halt. Maybe well,

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Speaker 1: part of it is because Major League Baseball they gave

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Speaker 1: the MLB Players Association two options, and the players assalization

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Speaker 1: they don't like either one. In fact, it has come

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Speaker 1: down to the point where Major League Baseball is said, okay, look,

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Speaker 1: if you guys you know, don't like the money, uh

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Speaker 1: wait until the fans come in, which brings up the

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Speaker 1: point that you see now where a lot of the

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Speaker 1: money in their business structure for the Major League Baseball

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Speaker 1: owners in paying the players where it comes in like Lynch, Well,

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Speaker 1: we all know that the Major League Baseball Players Association

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Speaker 1: is the most powerful of the top four major sports,

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Speaker 1: but they're also the most obstinate, and they have been

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Speaker 1: since its inception, and they did themselves a big disservice

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Speaker 1: last week when Blake Snell, the cy Young Award winner,

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Speaker 1: says I'm not playing until I get mine. I'm risking

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Speaker 1: my life out there and it's not worth it. And

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Speaker 1: he's due to make seven million dollars this year, and

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Speaker 1: if we go with the pro rated season, he'd make

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Speaker 1: three and a half million dollars, and that's not sitting

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Speaker 1: well with people that are filing unemployment sending in line

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Speaker 1: for groceries around this country. I thought that was a bad,

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Speaker 1: bad move by by Snell, which sort of represented the

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Speaker 1: feelings and the posture of the Players Association. I have

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Speaker 1: to say, I'm having a really tough time with this

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Speaker 1: because the optics are really really tricky here. And you know,

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Speaker 1: it was interesting speaking with Rachel Luba, sports agent and

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Speaker 1: baseball agent Trevor Barr's agent earlier this week, and you know,

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Speaker 1: she was pointing out that it's it's sort of brilliant

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Speaker 1: and kind of a perverse way that somehow the public

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Speaker 1: is siding with the billionaire owners over the millionaire players

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Speaker 1: in some cases. But she also makes the point that,

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Speaker 1: you know, some of the players are not millionaires, and

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Speaker 1: you know, it's such an interesting moment where you have

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Speaker 1: essentially like to go to the country being invoked, and

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Speaker 1: that plays into exactly what you were just saying, uh,

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Speaker 1: Mike about you know, the the optics of this and

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Speaker 1: someone who's filing for unemployment. Um, this is also coming

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Speaker 1: at a time Mike where baseball's popularity, I mean not

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Speaker 1: to go to grandiose about this, but baseball's popularity already,

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Speaker 1: at least for a certain generation, is a little bit

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Speaker 1: on the wayne. How much do you worry that this

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Speaker 1: sort of triggers an even deeper existential crisis? The collision

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Speaker 1: is going to happen here if if the NBA comes

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Speaker 1: back and the National Hockey League comes back and they're

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Speaker 1: competing at the same time with Major League Baseball. Major

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Speaker 1: League Baseball is trying to change the demographics, get some

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Speaker 1: young people to watch it, uh, to speed up the games,

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Speaker 1: make it more into resting to watch. And now with

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Speaker 1: this posturing going on right here, this selfishness by the players,

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Speaker 1: it's just stuck going to sit well, and I think

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Speaker 1: it's really gonna set Major League Baseball back a long

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Speaker 1: long way. Let me bring it down real here. The

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Speaker 1: rehab centers across the nation they have seen an increase

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Speaker 1: in traffic of people who are afraid of COVID nineteen,

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Speaker 1: who have anxiety, who are depressed, they've lost their job,

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Speaker 1: they don't know where the income is coming from. That

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Speaker 1: has gone up over three d since this whole pandemic started.

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Speaker 1: So and I'm even gonna to get on the players

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Speaker 1: who aren't millionaires, but they sure are hundred thousand airs

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Speaker 1: and that's way more than what these poor people out

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Speaker 1: here are are trying to survive and get bias. And

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Speaker 1: when you try to bring that message to someone who

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Speaker 1: maybe at the bottom end in Major League Baseball makes

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Speaker 1: six figures, the general public doesn't want to hear it.

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Speaker 1: Let's take a look now at the NBA. The season

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Speaker 1: could restart, It is gaining some momentum. Guess what gang

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Speaker 1: They're going to Disney World. I have to say I

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Speaker 1: love this story in part because there is some real

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Speaker 1: optimism here and I don't know, like one of the

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Speaker 1: things that strikes me about this as I was thinking

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Speaker 1: about it is, you know, Adam Silver, you can never

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Speaker 1: count that guy out. Like he's sort of a grinder

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Speaker 1: in the in the back of the you know, sort

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Speaker 1: of behind the scenes kind of making this happen, working

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Speaker 1: the work, kind of talking to everybody he needs to

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Speaker 1: talk to. I guess the it's really gonna come down

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Speaker 1: to Mike. Can they get the right venue and can

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Speaker 1: they get everybody comfortable? Those are the obvious questions. Why

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Speaker 1: do you think the NBA has maybe made some progress

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Speaker 1: where others haven't. The players in the NBA, they really

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Speaker 1: really like and respect Adam Silver, They consider them him

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Speaker 1: a partner. And I love this idea of Disney in Vegas.

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Speaker 1: This sort of reminds me of an Olympic setup where

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Speaker 1: you could have a little a little hole tell complex

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Speaker 1: where the players would be in something comparable to the

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Speaker 1: Olympic village, and all the games are played at the

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Speaker 1: same venue, maybe Eastern Conference, so they're talking about at

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Speaker 1: Disney Western Conference in Vegas. The only issue to be

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Speaker 1: ironed out do you resume the schedule with all thirty

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Speaker 1: teams or do you just start a playoff with sixteen teams?

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Speaker 1: Or do you have a plan right? Yeah, I mean

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Speaker 1: it feels like there are a couple of different options here.

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Speaker 1: I mean. One of the things that does come up, though,

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Speaker 1: and I think we've all been thinking about this to

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Speaker 1: some extent having watched the last Dance as obsessively as

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Speaker 1: the rest of the country has. And we can have

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Speaker 1: a debate another time about whether this would have been

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Speaker 1: so well watched had there been you know, actual sports

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Speaker 1: on TV. But you're reminded though, of the energy of

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Speaker 1: the fans and those arenas, I mean NBA arenas, especially

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Speaker 1: with really exciting teams, and let's be honest, there are

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Speaker 1: some really exciting players in the game right now. Is

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Speaker 1: this gonna be too weird to watch? I know I'm

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Speaker 1: getting ahead of myself here, Michael, but it does feel

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Speaker 1: a little straight Well, yes, first, the strange part is

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Speaker 1: going to be we're gonna have sports back on after

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Speaker 1: months or not having anything. Now the NBA they're hopeful

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Speaker 1: that they're going to restart this season by mid July,

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Speaker 1: and fat the Knicks and Nets, they're hoping to see

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Speaker 1: their players return to train in New York as early

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Speaker 1: as next month. So let's cross out our fingers. If

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Speaker 1: that happens, it will be great. I am interested to

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Speaker 1: see if they can pull this off. And you know, Mike,

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Speaker 1: as you point out, part of the debate is going

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Speaker 1: to be you know who comes back. You know, if

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Speaker 1: you are completely out of the hunt. Do you want

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Speaker 1: to commit to all of this? I mean, what's here top,

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Speaker 1: What do you think is the best scenario. I'd say

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Speaker 1: we come back with the sixteen teams that are in

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Speaker 1: the playoffs right now and just make it exciting. The

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Speaker 1: other teams could care less. They're building for next year,

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Speaker 1: they're looking toward the draft, and and I just think

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Speaker 1: right now, it's it's in the NBA playoffs. There's a

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Speaker 1: long season. It's two months anyway, if you really did

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Speaker 1: it normally, So you've got to You've got to condense

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Speaker 1: this thing a little bit. I'd like, I'd like bringing

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Speaker 1: back the sixteen teams in the playoffs and then just

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Speaker 1: go with a regular full playoffs slate exactly. Well, and

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Speaker 1: if you have the sixteen teams and there's not a plan,

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Speaker 1: then all the you know, the guys like us will

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Speaker 1: have something to debate about. It's like wow, so and

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Speaker 1: you know Nicks could have made a run. Just you know,

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Speaker 1: that's sad. It's a sad state of affairs that you

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Speaker 1: know we're subject to, you know, because I don't know

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Speaker 1: if you were if you realize this, Mike, but here

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Speaker 1: in New York, we don't have sort of this raft

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Speaker 1: of championships over the last few years that you may

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Speaker 1: not remember that we can lend a few out. Yeah,

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Speaker 1: I'm a Detroit guy. Anyway, I'm moving running. Let's bring

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Speaker 1: up something happy. That's right, NASCAR is back. They had

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Speaker 1: the first Darlington race on Sunday last Sunday, and then

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Speaker 1: they racing in Wednesday night was kind of rained short

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Speaker 1: and Denny Hamlin was the winner, and they had a

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Speaker 1: lot and all is controversy. It's always something Jason Lee.

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Speaker 1: It got spun out by Kyle Busch waited in the

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Speaker 1: pits and Chase Elliott told Kyle Bush your number one baby,

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Speaker 1: and it just went on from there. This is why

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Speaker 1: I love NASCAR. Guys. Well, I have to say, and

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Speaker 1: I'm sitting here in front of my computer and looking

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Speaker 1: at ESPN dot com and just seeing an actual sport

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Speaker 1: that I recognize on that top bar of results from

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Speaker 1: last night because we're taking this on Thursday. It's so

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Speaker 1: nice to see, but a reminder of how um odd

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Speaker 1: the world is. So we have NASCAR and then right

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Speaker 1: next to it is the results from last night in

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Speaker 1: the Costa Rican Premieri League, Like that's the that's the

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Speaker 1: next closest sport that we have to look at. But

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Speaker 1: but you're right, I mean, Mike, this notion of a

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Speaker 1: sport getting back is really important. And I mean it

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Speaker 1: goes back to what we were talking about with baseball too.

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Speaker 1: Some of this is about candidly the national psyche it is.

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Speaker 1: And I was out doing errands yesterday and I rent

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Speaker 1: into a lot of people who knew him a sportscaster,

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Speaker 1: and they said, hey, it wasn't it great to have

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Speaker 1: NASCAR racing back. And I'm looking at some of these people,

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Speaker 1: and I know they don't know the difference between NASCAR

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Speaker 1: or CarMax, but they were just so I'm telling you

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Speaker 1: they don't, but they had something to put on and

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Speaker 1: and and root for, as you know that they and

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Speaker 1: they didn't know Denny Hamlin from from Kyle Busch or

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Speaker 1: Chase Elliott, but they they just loved having something to

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Speaker 1: look forward to and and to watch. And of course

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Speaker 1: this thing, the crash that was caused by Kyle Busch allegedly,

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Speaker 1: you know, has Vince McMahon written all over it. There's villains,

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Speaker 1: there's heroes totally, and so it was perfect. It was

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Speaker 1: perfect theater. You said, Denny Hamlin. They were like, he

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Speaker 1: was so good in l A Law back in the

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Speaker 1: death Yeah, I should add to that. Kyle Busch after

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Speaker 1: the race at Darlington, he owned up. He said, Man,

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Speaker 1: it was my fault. I'm there's no question I made

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Speaker 1: a mistake. They're mad. We're gonna have to have ice

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Speaker 1: cream tomorrow. It's that's pretty much how this wound up.

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Speaker 1: But oh my goodness, it was nice to have racing

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Speaker 1: some sport, some major sport back on TV. By the way,

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Speaker 1: I think I had Denny Hamlon in my NASCAR league too,

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Speaker 1: So that's good. There you go, happy for you. One

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Speaker 1: thing that always bothered me about NASCAR, and I love

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Speaker 1: watching NASCAR, is that all these consortiums own a bunch

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Speaker 1: of different races, so you can actually lose but be

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Speaker 1: happy because your car is like the Gibska to Joe

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Speaker 1: Gibbs uh cars finished second. That's been like the Yankees

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Speaker 1: and Tigers playing for the American League Championship Series, and

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Speaker 1: you're gonna love this, Michael bar The Tigers win the

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Speaker 1: American League Championship over the Yankees, but both teams are

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Speaker 1: owned by the same owner, so the Yanche is the

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Speaker 1: saying I'm really happy for the Tigers, you know, because

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Speaker 1: we're owned by this we have the same owner, and

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Speaker 1: that's it's just the only thing that's that's hard for

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Speaker 1: me to wrap myself around all these years watching that car.

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Speaker 1: I'm Jason Kelly. You're listening to Bloomberg Business of Sports.

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Speaker 1: My guest today is Chris Rondo. He is the CEO

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Speaker 1: of Planet Fitness. Chris, we were joking before we came

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Speaker 1: on that, Uh, you and I talked to maybe five

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Speaker 1: six weeks ago, and and while not much has changed

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Speaker 1: in the sense that we're probably talking to each other

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Speaker 1: from the exact same spots, it does feel like the

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Speaker 1: world has changed. And certainly you've been busy sort of

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Speaker 1: planning for you know what many are are referring to

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Speaker 1: as sort of the great reopening. Uh. Here, give us

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Speaker 1: a state of play for Planet Fitness. Yeah, sure, thanks

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Speaker 1: for having me on again. Yeah, it's been quite quite

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Speaker 1: quite the change to shore. We have two thousand, little

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Speaker 1: two thousand stores here here today. UM. Today we've reopened

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Speaker 1: about fifty UM so far. Really intrigued what we're seeing,

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Speaker 1: carried by what we're seeing with the finitial fifty stores.

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Speaker 1: UM we have slated to open upwards of about three

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Speaker 1: hundred between now and uh in mid May and then

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Speaker 1: on the deck to open by June one, hopefully five stores,

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Speaker 1: so about at five percent of our system by June one. UM,

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Speaker 1: so long as everything, um, you know comes touition here

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Speaker 1: and we uh, you know, all the training done and

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Speaker 1: climbing this protocol set up in opening stores. So how

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Speaker 1: did you get there? And walked me through the process briefly. Sure,

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Speaker 1: So we closed all stories about mid March. Um, I'll said,

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Speaker 1: we have a nine nine corporate stories as well as

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Speaker 1: the franchisees. So we shut down our stores. Um, and

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Speaker 1: then you know, immediately then it's at the beginning the

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Speaker 1: process of like what is this gonna look like? You know,

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Speaker 1: in each week with a learning experience, and then as

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Speaker 1: you saw more of the government protocols what they recommended

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Speaker 1: for you know, leach retails in general, what what you

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Speaker 1: need to do for social distancing and stuff. So then

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Speaker 1: we decided how do we how do we operate our

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Speaker 1: stores going forward? Um? You know, one thing that's been

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Speaker 1: great with our stores is we've always had disinfected solution

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Speaker 1: and paper towels, you know, scattered throughout the facilities. You know,

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Speaker 1: but then probably thirty feet of anybody's you know, surrounding,

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Speaker 1: so that you can clean before and afternoon even members

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Speaker 1: as well as staff. And happen to be a disinfectant

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Speaker 1: that's approved by for the COVID virus. Uh we already

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Speaker 1: ahead of that, just you know, by by accident actually

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Speaker 1: sou so a lot of that and it just put

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Speaker 1: you know, how do members check in self check in?

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Speaker 1: Now not grabbing some of these keys and checking them

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Speaker 1: in for them and their self check in. UM reinfersting

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Speaker 1: the etiquette for members to wash their cleaning equipment when

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Speaker 1: you before they use an afterno use it for the

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Speaker 1: next patron to use. So UM a lot of that

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Speaker 1: have the training and then now let's just relaunched, you know,

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Speaker 1: so UM getting the stores ready with all the signage,

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Speaker 1: you know, just to reinforce our etiquet and to cleaning protocols.

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Speaker 1: Bring employees back a lot more for a load from

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Speaker 1: the from the gym staff. So bringing them back and

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Speaker 1: retraining them and getting them ready for a customer service

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Speaker 1: and callinis UM and and bring them on board. And

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Speaker 1: so far of the fifty stores have been well received

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Speaker 1: by the by the members. UM pleased with our actions

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Speaker 1: that were taken, and staff has been really excited to

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Speaker 1: come back to work, which has been great to see.

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Speaker 1: So what's the traffic like? The traffic the member traffic

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Speaker 1: usage workouts is probably the one that's the most different.

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Speaker 1: Right now. We're about fifty percent usage of what we

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Speaker 1: would normally see this time in year. UM. Joints and

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Speaker 1: cancels they'll believe in our cancels are are a little

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Speaker 1: bit high the first day and then after that come

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Speaker 1: right back down to the level of what we would

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Speaker 1: normally see in the month of May. And the joints

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Speaker 1: we would not have been really on polic last year

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Speaker 1: this time of year, so UM and that's really with

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Speaker 1: not any kind of big promotions running our sales right now,

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Speaker 1: so just a normal May joining cadence. So it's been

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Speaker 1: really good and when really interesting fact it is interesting,

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Speaker 1: but I think says a lot about people eagerness to

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Speaker 1: get back to real life. Is that, you know what

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Speaker 1: we came to casual first timers and open our gym

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Speaker 1: members every day that are joining are never longer gym

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Speaker 1: in their lives. We're truly getting people off the couch.

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Speaker 1: Even today with all you see in the news you

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Speaker 1: would say maybe that would pull back them, and we're

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Speaker 1: still seeing today that forty percent of our new joints

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Speaker 1: are people have never been on good gym in their

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Speaker 1: life and they're looking to get started. What worries you

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Speaker 1: the most at this point in terms of reopening. You're

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Speaker 1: sort of on the vanguard at this point. Obviously it

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Speaker 1: feels like things are going well so far, but you

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Speaker 1: read the same news that that I'm reading and and

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Speaker 1: talking about every day. You know, what's your worry and

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Speaker 1: is it a regional sort of focus, Like what's kind

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Speaker 1: of on your mind right now since we're all sort

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Speaker 1: of unpens and needles here? Yeah, I think, I mean,

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Speaker 1: I think my biggest worry is probably know any CEO's

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Speaker 1: worry of any any retailer out there today is you know,

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Speaker 1: does this thing raicalyhead? And in six months you know, um,

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Speaker 1: there's no way to necessarily you know, plants to that

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Speaker 1: or or get ahead of that. You're just gonna hopefully

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Speaker 1: use what you've learned this time to to prepare or

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Speaker 1: use the next time that happens to go up to bed.

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Speaker 1: But um, that'd be thought my own. It's only fair,

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Speaker 1: you know. I think right now and really encourages what

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Speaker 1: I'm seeing. I think people are, are you going to

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Speaker 1: get back to back to normal, back to some some

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Speaker 1: regular regularity. And I think they're they're ready, you know

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Speaker 1: from what I've seen from the people joining without even promotions,

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Speaker 1: They're coming in and ready to get started. So it's

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Speaker 1: it's been, it's been really intriguing to watching and a

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Speaker 1: lot of good positive consumer sentiment coming through um from

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Speaker 1: social media, force that that we had you across the

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Speaker 1: teas and daughter Rise to make sure everybody felt safe

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Speaker 1: in our store. But UM, I think longer term, you know,

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Speaker 1: I think it's you know, I think one thing's gonna

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Speaker 1: be changed from this. I really believe honestly that this UM,

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Speaker 1: this you know, COVID virus thing is definitely probably had

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Speaker 1: people realizing the importance of health and wellness going forward,

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Speaker 1: the appreciation and being sitness, you know, being into fitness

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Speaker 1: and being taken care of yourself when you see the

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Speaker 1: unfortunate thing is the ones that this is affecting most

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Speaker 1: of pre existing conditions. So I think, longer term, I

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Speaker 1: think it's good for our industry. Yeah, I do wonder

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Speaker 1: about that and and the industry it does feel like

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Speaker 1: is in a shift of some to some extent, and

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Speaker 1: you know, in speaking with with folks like you, it

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Speaker 1: does feel like they're maybe at least on the on

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Speaker 1: the smaller and the sort of mood boutique end as

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Speaker 1: it were, there may be a little bit of a

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Speaker 1: reckoning coming. What does that mean for your business? Do

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Speaker 1: you think? And first of all, do you agree with

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Speaker 1: that that that maybe this this will wash out maybe

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Speaker 1: some some smaller competitors. Not to be too glib about it,

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Speaker 1: but you know what, what's what's the net effect on

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Speaker 1: the broader fitness business here? Yeah, I mean I think

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Speaker 1: this will you know, you know, in in some ways,

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Speaker 1: especially the higher price boutiques, you know, with with people

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Speaker 1: either either out of work or warn't fur or an

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Speaker 1: unemployment that you know they're gonna appa they want to

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Speaker 1: stay fit and do something, but that you're gotta pay

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Speaker 1: a hundred fifty bucks a month or thirty bucks a

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Speaker 1: class for our studio. Right, So, I think a lot

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Speaker 1: of the boutiques are gonna feel this pain quite a bit,

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Speaker 1: especially with the especially with the social distancing when the

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Speaker 1: boutiques are usually pretty pretty cramped space. But you know,

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Speaker 1: a bunch of cycle studios or yoga. You know, we

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Speaker 1: really can't get that many people in romans there forced

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Speaker 1: to spread out. Um. I think on the flip side

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Speaker 1: of that too, I say the bigger boxes out there

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Speaker 1: that you you've seen by the goals, Gymstile, bankruptcy, Tony

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Speaker 1: Cross fitnesses having struggles right now too, that some of

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Speaker 1: their other business lawels and maybe weren't as either profitable

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Speaker 1: or or or heads miss cash, but probably gonna be

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Speaker 1: feeling some of this pain as well. So I think,

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Speaker 1: you know, longer term, I think Planet is in a

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Speaker 1: really good spot. You know, it wasn't util mine with

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Speaker 1: real estate. I think this would even make it better.

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Speaker 1: Between Gym's closing as well as other retailers probably not

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Speaker 1: opening with as many stores as they close with, so

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Speaker 1: I think there was landlords retailing retail space availability will

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Speaker 1: be in our favor even more so coming out of

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Speaker 1: this for future growth. Chris, thank you so much for

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Speaker 1: spending some time with me today. I know it's incredibly busy,

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Speaker 1: especially as you try to get to what we keep

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Speaker 1: calling sort did this next normal? Interesting to see where

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Speaker 1: it goes from here. Really appreciate your time, so I'm

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Speaker 1: delighted to have with me, Harvey Spevak, Chairman of Equinox.

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Speaker 1: I've known this guy for a long time, so I'm

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Speaker 1: excited to get some time with you, Harvey. It's a

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Speaker 1: big moment right now, it feels like because we are

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Speaker 1: talking about moving toward what you know, many would describe

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Speaker 1: as sort of the great reopening, or at least taking

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Speaker 1: steps to do that. Help us understand where Equinox is

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Speaker 1: as we speak right now, UM, we don't have anything

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Speaker 1: that's open across our portfolio, whether it be Equinox Fitness

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Speaker 1: Clubs or Equinox Hotel in New York, Soul Cycle or

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Speaker 1: or or a blank fitness UM. We are evaluating opening

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Speaker 1: in Texas because we are permitted to open in Texas

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Speaker 1: in the coming days, UM, and so it's possible that

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Speaker 1: will be our first opening, UM, hopefully soon. So what

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Speaker 1: does it look like? I mean, you've had a task

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Speaker 1: force working on this. I understand you know, doctors, health experts,

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Speaker 1: obviously folks from across the company. How do you go

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Speaker 1: about putting together a plan? So we we've you know,

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Speaker 1: when when this first happened and we closed back in

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Speaker 1: in mid March, you know, we first focused on UH,

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Speaker 1: protecting our employees and preserving a cash as you would

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Speaker 1: expect with a company UM with no revenue. You know,

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Speaker 1: you know, we're amongst those are the hardest hit, not

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Speaker 1: just in in the fitness category, but you know, broadly

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Speaker 1: to be hospitality, f and B, retail, et cetera. And

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Speaker 1: you know, I'm proud that we've been able to UM

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Speaker 1: continue to employ the majority of our workforce, which is

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Speaker 1: highly unusual UM. And and the feedback we you know,

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Speaker 1: continue to get from employees is obviously one one of

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Speaker 1: great appreciation. And how we've allowed them to continue to

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Speaker 1: pay their rent and put food on the table has

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Speaker 1: been critical, and I think that it's something important that

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Speaker 1: we all need to do and try to do more

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Speaker 1: of UM as we all face the challenges of of

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Speaker 1: the recession or or you know, economic pressure that that

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Speaker 1: that the US is facing. UM As we moved past that,

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Speaker 1: we we focused on quickly addressing you know, and engaging

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Speaker 1: with with our members and our employees UM and I

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Speaker 1: would like to spend a moment talking about how we're

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Speaker 1: doing that virtually, but more specifically to opening our locations again.

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00:21:56,359 --> 00:22:00,760
Speaker 1: We created a task force which includes UM some of

430
00:22:00,800 --> 00:22:05,280
Speaker 1: the leading medical experts in infectious disease UM. Some of

431
00:22:05,280 --> 00:22:07,639
Speaker 1: these are external consultants to the c d C and

432
00:22:07,720 --> 00:22:13,240
Speaker 1: epidemiologists to help inform how we should UM open our

433
00:22:13,280 --> 00:22:16,840
Speaker 1: clubs and our studios in a safe and thoughtful way

434
00:22:17,040 --> 00:22:20,280
Speaker 1: for our members and our employees as well as our

435
00:22:20,280 --> 00:22:23,679
Speaker 1: writers at Soul Cycle UM, because that that is and

436
00:22:23,840 --> 00:22:26,040
Speaker 1: has always been and continues to be a priority. What's

437
00:22:26,080 --> 00:22:29,440
Speaker 1: interesting as as we embarked on this journey, and it's

438
00:22:29,440 --> 00:22:32,240
Speaker 1: been a tyler's effort from our team, and I'm very

439
00:22:32,240 --> 00:22:34,520
Speaker 1: proud of their efforts, but as we embarked on this

440
00:22:34,760 --> 00:22:39,359
Speaker 1: on this journey UM to figure out what's UM the

441
00:22:39,480 --> 00:22:41,760
Speaker 1: right standard, what we kept hearing back from our members

442
00:22:41,800 --> 00:22:45,320
Speaker 1: and writers that they have tremendous confidence and trust in

443
00:22:45,520 --> 00:22:48,480
Speaker 1: us and our ability to create that safe environment for them.

444
00:22:49,000 --> 00:22:53,159
Speaker 1: Which we take that as a very serious responsibility. And

445
00:22:53,200 --> 00:22:55,240
Speaker 1: so as we create the task force, and the task

446
00:22:55,280 --> 00:22:57,320
Speaker 1: force started doing a lot of research and talking to

447
00:22:57,359 --> 00:23:00,600
Speaker 1: the medical experts, we we decided we did such a

448
00:23:00,640 --> 00:23:04,680
Speaker 1: comprehensive plan that we we we we labeled it and

449
00:23:05,160 --> 00:23:09,240
Speaker 1: named at the Equinox Standard, and the Equinox Standard takes

450
00:23:09,240 --> 00:23:12,760
Speaker 1: our already high standards to a whole another level, and

451
00:23:12,800 --> 00:23:17,920
Speaker 1: there is multiple elements UM to it that include mandatory

452
00:23:17,920 --> 00:23:22,360
Speaker 1: health decorations. But both our members and employees before they

453
00:23:22,480 --> 00:23:25,760
Speaker 1: come each day, UH, they will be scheduled visits so

454
00:23:25,880 --> 00:23:31,320
Speaker 1: we can control the density and usage at the club

455
00:23:32,040 --> 00:23:35,600
Speaker 1: UM at any given time. Of course, there'll be scheduled classes,

456
00:23:35,680 --> 00:23:38,560
Speaker 1: whether it be at Equinox or soul Cycle, but we

457
00:23:38,640 --> 00:23:40,359
Speaker 1: believe that all of our members will be able to

458
00:23:40,400 --> 00:23:42,720
Speaker 1: get as many workouts as they typically get in over

459
00:23:42,720 --> 00:23:45,119
Speaker 1: the course of seven days, but they will need them

460
00:23:45,200 --> 00:23:48,560
Speaker 1: to be more scheduled, and we do need cooperation from them,

461
00:23:48,600 --> 00:23:51,720
Speaker 1: not just in continuing to support the community, but also

462
00:23:51,760 --> 00:23:55,200
Speaker 1: being thoughtful around the community and take some responsibility themselves.

463
00:23:55,680 --> 00:23:59,160
Speaker 1: We'll have contact list check in UM throughout the club,

464
00:23:59,240 --> 00:24:02,560
Speaker 1: including trans actions and of course, you know, when you

465
00:24:02,600 --> 00:24:06,080
Speaker 1: start thinking about not just the health and safety, obviously,

466
00:24:06,080 --> 00:24:09,440
Speaker 1: cleaning is paramount here and and one thing that's been

467
00:24:09,480 --> 00:24:14,000
Speaker 1: a standard and widely recognized a high standard Equinox since

468
00:24:14,040 --> 00:24:17,920
Speaker 1: you know, we started back in but we've worked hard

469
00:24:18,000 --> 00:24:22,200
Speaker 1: to find different cleaning materials that are both e p

470
00:24:22,280 --> 00:24:25,600
Speaker 1: A and CDC approved m to make sure that we

471
00:24:25,680 --> 00:24:28,320
Speaker 1: are not just doing ongoing cleaning, but deep cleaning with

472
00:24:28,400 --> 00:24:33,160
Speaker 1: the best UM materials that also provide m a safe

473
00:24:33,240 --> 00:24:36,240
Speaker 1: environment for our employees as well as our members. Will

474
00:24:36,280 --> 00:24:40,720
Speaker 1: also be using electric static sprays UM which also are

475
00:24:40,760 --> 00:24:44,480
Speaker 1: proven in and in killing viruses UM and reach a

476
00:24:44,520 --> 00:24:47,760
Speaker 1: lot more coverage, and so you'll see some of the

477
00:24:47,760 --> 00:24:51,640
Speaker 1: employees with backpacks spraying throughout the day. Once again say

478
00:24:51,800 --> 00:24:55,080
Speaker 1: safe for our members. So are we I gotta ask you,

479
00:24:55,119 --> 00:24:57,399
Speaker 1: I mean, you know, even in this business for a while,

480
00:24:57,760 --> 00:24:59,879
Speaker 1: and as you say, I mean, this has always been

481
00:25:00,040 --> 00:25:03,160
Speaker 1: something that's been front of mine for you, and clearly

482
00:25:03,160 --> 00:25:05,280
Speaker 1: it resonates with with your members. I do wonder as

483
00:25:05,320 --> 00:25:08,720
Speaker 1: you went through this process personally, like what were the

484
00:25:08,800 --> 00:25:11,640
Speaker 1: things that that sort of either surprised you or sort

485
00:25:11,640 --> 00:25:14,760
Speaker 1: of jumped out at you maybe a new innovation or

486
00:25:14,880 --> 00:25:18,479
Speaker 1: or a new type of product, or what was it

487
00:25:18,520 --> 00:25:20,560
Speaker 1: that as you look back on sort of this process

488
00:25:20,600 --> 00:25:23,240
Speaker 1: of putting this plan together that that sort of jumps

489
00:25:23,240 --> 00:25:27,959
Speaker 1: out at you. Must you know, there's there's clearly a

490
00:25:28,000 --> 00:25:33,040
Speaker 1: lot of lesson learned. Lessons learned I would say relative

491
00:25:33,359 --> 00:25:36,880
Speaker 1: or relevant to us is some of those things were

492
00:25:36,880 --> 00:25:42,200
Speaker 1: more reinforcement UM, but there were some surprises. So on

493
00:25:42,280 --> 00:25:48,680
Speaker 1: the reinforcement side, UM, how much love and passion there

494
00:25:48,680 --> 00:25:52,600
Speaker 1: are from our members and employees for our brands. UM

495
00:25:52,800 --> 00:25:56,400
Speaker 1: was really nice to feel and experience. But how much

496
00:25:56,480 --> 00:26:00,720
Speaker 1: they desire community. We knew that we've always been our community,

497
00:26:00,760 --> 00:26:05,360
Speaker 1: but that desire is stronger than ever, and the desire

498
00:26:05,480 --> 00:26:09,120
Speaker 1: to come back and come back quickly. We've surveyed our

499
00:26:09,119 --> 00:26:11,719
Speaker 1: members and our writers and se say they would come

500
00:26:11,720 --> 00:26:14,160
Speaker 1: back as soon as we open UM. In my mind,

501
00:26:14,200 --> 00:26:18,680
Speaker 1: that's remark will be high despite all the unknowns ahead. UM.

502
00:26:18,720 --> 00:26:21,359
Speaker 1: That's also I think very symbolic of the trust and

503
00:26:21,400 --> 00:26:25,160
Speaker 1: confidence they have in us. So, you know, in addition

504
00:26:25,680 --> 00:26:30,040
Speaker 1: to community, I think what we've all learned is, you know,

505
00:26:30,080 --> 00:26:33,920
Speaker 1: there's no replacement for and I know you are a

506
00:26:34,119 --> 00:26:37,119
Speaker 1: active participant in this regard, there's no replacement for for

507
00:26:37,200 --> 00:26:41,320
Speaker 1: maintaining a healthy lifestyle because that helps your immune system.

508
00:26:41,359 --> 00:26:46,320
Speaker 1: And so there has been an explosion of virtual fitness

509
00:26:46,359 --> 00:26:49,119
Speaker 1: offerings UM, some of them good, a lot of them

510
00:26:49,160 --> 00:26:52,639
Speaker 1: not so good, but no regardless, it just demonstrates the

511
00:26:52,760 --> 00:26:56,080
Speaker 1: huge demand. And we were already on this journey to

512
00:26:56,400 --> 00:27:00,240
Speaker 1: marry the online and offline. We had embarked over a

513
00:27:00,320 --> 00:27:03,840
Speaker 1: year ago on this vision of being able to serve

514
00:27:03,880 --> 00:27:07,159
Speaker 1: our community in a way that nobody else can do.

515
00:27:07,400 --> 00:27:12,040
Speaker 1: So what we believe is our our member, our writer

516
00:27:12,920 --> 00:27:16,880
Speaker 1: is basically mindset has moved to a no days off

517
00:27:16,960 --> 00:27:21,200
Speaker 1: mindset and wants the highest quality brands, but they want

518
00:27:21,240 --> 00:27:23,080
Speaker 1: to be able to move across brands. They want to

519
00:27:23,080 --> 00:27:25,159
Speaker 1: be able to move across modalities, and they want to

520
00:27:25,160 --> 00:27:28,840
Speaker 1: do it physically and digitally. And so despite the explosion

521
00:27:28,920 --> 00:27:32,359
Speaker 1: for digital which shows the increasing and accelerating demand for

522
00:27:32,440 --> 00:27:35,840
Speaker 1: living a healthy lifestyle, it also shows that people want

523
00:27:35,880 --> 00:27:40,160
Speaker 1: the online offline experience and we're uniquely qualified to do that.

524
00:27:40,240 --> 00:27:45,600
Speaker 1: And so that's why we accelerated the launch of virus Um,

525
00:27:45,640 --> 00:27:48,800
Speaker 1: you know, the first of its kind, multi brand, multimodality

526
00:27:48,840 --> 00:27:53,760
Speaker 1: digital platform. We've launched that uh complementary to our members

527
00:27:53,840 --> 00:27:57,520
Speaker 1: during the closure period despite us not charging them even

528
00:27:57,560 --> 00:28:01,240
Speaker 1: their dues um, we've had tremendous feedback. We've also accelerated

529
00:28:01,240 --> 00:28:04,720
Speaker 1: the launch as part of that digital offering UM the

530
00:28:05,520 --> 00:28:08,720
Speaker 1: at home Soul Bike, which is also we started delivering

531
00:28:08,720 --> 00:28:11,760
Speaker 1: and people are very excited about and getting great feedback

532
00:28:11,840 --> 00:28:15,600
Speaker 1: and accelerating demand there. But the biggest surprise was with

533
00:28:15,640 --> 00:28:18,399
Speaker 1: the respect to virtual personal training, and so we did

534
00:28:18,440 --> 00:28:22,840
Speaker 1: not have a virtual personal training business before um COVID

535
00:28:22,920 --> 00:28:26,120
Speaker 1: nineteen and before we closed, and within sixty days we

536
00:28:26,520 --> 00:28:30,200
Speaker 1: established a virtual personal training program which now has sevent

537
00:28:30,800 --> 00:28:34,879
Speaker 1: of our trainers engaging on that platform. UM we clearly

538
00:28:35,000 --> 00:28:37,160
Speaker 1: how many people is that roughly give or take Harvey,

539
00:28:37,200 --> 00:28:41,560
Speaker 1: how many people is that? Oh, it's it's it's it's thousands,

540
00:28:41,560 --> 00:28:45,280
Speaker 1: thousands of people. Yes, I mean it's remarkable and and

541
00:28:45,320 --> 00:28:48,320
Speaker 1: people love it. And so you know, if you think

542
00:28:48,360 --> 00:28:51,840
Speaker 1: about what does that mean for the future, Well, Jason

543
00:28:52,120 --> 00:28:55,239
Speaker 1: who typically might come to the club and work with

544
00:28:55,360 --> 00:28:59,120
Speaker 1: his or her trainer two times a week in the club,

545
00:28:59,280 --> 00:29:01,560
Speaker 1: which is the norm, and the reason why is on

546
00:29:01,680 --> 00:29:05,520
Speaker 1: weekends he might be you know, not as close to

547
00:29:05,520 --> 00:29:07,960
Speaker 1: the club because he comes close to where he works,

548
00:29:08,080 --> 00:29:11,320
Speaker 1: or because family plays a role. Now virtually he can

549
00:29:11,320 --> 00:29:13,560
Speaker 1: get a third session and so that's going to help

550
00:29:13,600 --> 00:29:18,400
Speaker 1: him optimize his results. And so we so this explosion.

551
00:29:18,440 --> 00:29:21,160
Speaker 1: We've set up this business literally overnight. But what it

552
00:29:21,160 --> 00:29:24,640
Speaker 1: says to us is and reinforces the vision that we

553
00:29:24,640 --> 00:29:28,840
Speaker 1: were already UM on the path, which is, hey, there

554
00:29:28,920 --> 00:29:31,360
Speaker 1: is a world here where, and you always got to anticipate.

555
00:29:31,400 --> 00:29:33,080
Speaker 1: And we've done a great job of anticipating with the

556
00:29:33,080 --> 00:29:36,760
Speaker 1: consumer wants. There is a world here where the future is.

557
00:29:36,960 --> 00:29:38,840
Speaker 1: I want to be able to do it physically and digitally.

558
00:29:39,400 --> 00:29:41,360
Speaker 1: I want to do it across my favorite brands. I

559
00:29:41,400 --> 00:29:42,959
Speaker 1: want to be to do it across I want to

560
00:29:43,000 --> 00:29:46,200
Speaker 1: do it across modalities. I want to do it how

561
00:29:46,240 --> 00:29:48,000
Speaker 1: I want it, when I want it, where I want it.

562
00:29:48,280 --> 00:29:50,880
Speaker 1: But I want it to be seamless. And we're uniquely

563
00:29:50,960 --> 00:29:54,680
Speaker 1: qualified to do that. And so that is something we

564
00:29:54,680 --> 00:29:58,160
Speaker 1: were already on the path, but based on what we've experienced,

565
00:29:58,160 --> 00:30:00,320
Speaker 1: we know that we are more confident and it than

566
00:30:00,400 --> 00:30:03,120
Speaker 1: ever um that that's going to be a big winning

567
00:30:03,120 --> 00:30:05,080
Speaker 1: strategy for us in New Year's to come. And so

568
00:30:05,120 --> 00:30:07,600
Speaker 1: what are you learning from VARUS so far in terms

569
00:30:07,680 --> 00:30:10,240
Speaker 1: of what people are using, how often they are using it.

570
00:30:10,320 --> 00:30:13,160
Speaker 1: As you say, you've got a bunch of different modalities

571
00:30:13,200 --> 00:30:15,720
Speaker 1: on there. I've been fortunate enough to play around with

572
00:30:15,760 --> 00:30:18,080
Speaker 1: it a little bit and it's interesting, you know, to

573
00:30:18,120 --> 00:30:20,760
Speaker 1: sort of go down these various sort of rabbit holes,

574
00:30:20,760 --> 00:30:23,240
Speaker 1: whether it's meditation or yoga or you know, some of

575
00:30:23,280 --> 00:30:27,600
Speaker 1: the cycling and running stuff. What what's sort of coming back? Initially,

576
00:30:27,640 --> 00:30:31,640
Speaker 1: I know it's early days and this is an unusual time.

577
00:30:31,720 --> 00:30:33,640
Speaker 1: But what are you hearing from the team, what are

578
00:30:33,680 --> 00:30:39,200
Speaker 1: you observing? So what we're clearly hearing is, you know,

579
00:30:40,000 --> 00:30:45,960
Speaker 1: we we love the offering, give us more UM, more classes,

580
00:30:47,280 --> 00:30:53,120
Speaker 1: UM more UM modalities. But what's and and and the

581
00:30:53,160 --> 00:30:57,640
Speaker 1: average user is using it almost three times a week,

582
00:30:58,120 --> 00:31:02,040
Speaker 1: which is very high. So there's a high level of

583
00:31:02,080 --> 00:31:05,800
Speaker 1: engagement UM, as there is with you know, our daily

584
00:31:05,880 --> 00:31:07,960
Speaker 1: check in, which is this curated content where we got

585
00:31:08,000 --> 00:31:11,200
Speaker 1: two and a fifty people checking in daily, So there's

586
00:31:11,760 --> 00:31:16,960
Speaker 1: there's high engagement with what we're doing. I would say

587
00:31:17,120 --> 00:31:21,880
Speaker 1: one of the things that it is it's probably aggressive

588
00:31:21,920 --> 00:31:23,840
Speaker 1: to say a surprise, but it is a surprise. And

589
00:31:23,880 --> 00:31:26,400
Speaker 1: we all know that there is a growing issue around

590
00:31:26,440 --> 00:31:31,240
Speaker 1: mental mental health and mental wellness, and so our meditation

591
00:31:31,960 --> 00:31:37,120
Speaker 1: UM through a headstrong brand has been extremely popular UM.

592
00:31:37,240 --> 00:31:40,560
Speaker 1: And you know, while a lot of participants finish all

593
00:31:40,760 --> 00:31:44,080
Speaker 1: the entire class, some people don't finish entire class, but

594
00:31:44,160 --> 00:31:46,880
Speaker 1: what they're finishing with great frequency now they're short duration,

595
00:31:47,000 --> 00:31:52,080
Speaker 1: is meditation. We actually also feature now live Meditation UM

596
00:31:52,200 --> 00:31:55,640
Speaker 1: a couple of times a day and it's extremely popular. UM.

597
00:31:55,720 --> 00:31:58,920
Speaker 1: We went as far as trying to help the frontline

598
00:31:58,960 --> 00:32:01,720
Speaker 1: workers and offering it through Robin Hood in partnership with

599
00:32:01,800 --> 00:32:04,880
Speaker 1: Robin Hood UM directly to frontline workers, whether whether they

600
00:32:04,920 --> 00:32:07,480
Speaker 1: remember or not UM just to help them get through

601
00:32:07,480 --> 00:32:11,800
Speaker 1: the challenges they were facing. And so how does this

602
00:32:11,880 --> 00:32:16,640
Speaker 1: experience sort of change what you do as you do

603
00:32:16,840 --> 00:32:19,800
Speaker 1: reopen and you get back to some sense of you

604
00:32:19,800 --> 00:32:22,560
Speaker 1: know what some folks are calling sort of the next normal.

605
00:32:22,840 --> 00:32:27,200
Speaker 1: Learning what you've learned about how your members deal in

606
00:32:27,280 --> 00:32:31,080
Speaker 1: an online environment, knowing a lot about what they do

607
00:32:31,360 --> 00:32:36,280
Speaker 1: in a real world or offline environment. Do you invest

608
00:32:36,320 --> 00:32:41,440
Speaker 1: in in different modalities more? Do you look at new

609
00:32:41,480 --> 00:32:44,280
Speaker 1: opportunities like what are what are the learnings that are

610
00:32:44,280 --> 00:32:48,560
Speaker 1: sort of kicking around your head right now? So a great,

611
00:32:48,560 --> 00:32:53,880
Speaker 1: great question. I talked about the Equinox standard and how

612
00:32:54,200 --> 00:32:57,240
Speaker 1: other companies are coming to us and actually asking us

613
00:32:57,240 --> 00:32:59,200
Speaker 1: to partner with them, not not in the industry, just

614
00:32:59,440 --> 00:33:04,080
Speaker 1: broadly to mind, you know, other lifestyle service providers because

615
00:33:04,120 --> 00:33:06,240
Speaker 1: they know our standards are so high and they're looking

616
00:33:06,320 --> 00:33:09,840
Speaker 1: for our health, our help and also to tap into

617
00:33:09,920 --> 00:33:12,880
Speaker 1: our brand equity as the standard. But the other thing,

618
00:33:12,960 --> 00:33:16,080
Speaker 1: the other big initiative that we that we've announced this

619
00:33:16,160 --> 00:33:22,120
Speaker 1: Equinox Plus, which is this integrated membership which serves the

620
00:33:22,200 --> 00:33:25,959
Speaker 1: online and offline and and so look, there there's a

621
00:33:25,960 --> 00:33:28,920
Speaker 1: lot of fear out there, and we don't know how

622
00:33:29,000 --> 00:33:31,760
Speaker 1: fast people are going to come back. Hopefully, the research

623
00:33:31,800 --> 00:33:34,480
Speaker 1: says they're going to come back to our physical locations

624
00:33:34,960 --> 00:33:38,800
Speaker 1: um faster than we would have anticipated. But I do

625
00:33:38,920 --> 00:33:41,760
Speaker 1: see a world where we're going to be more engaged

626
00:33:42,600 --> 00:33:47,520
Speaker 1: with our community, more frequently on a daily basis to

627
00:33:47,560 --> 00:33:50,720
Speaker 1: help serve their needs, whatever that may be. So Jason

628
00:33:51,560 --> 00:33:56,440
Speaker 1: might on Tuesday be working out in an Equinox fitness

629
00:33:56,520 --> 00:34:02,160
Speaker 1: club with his trainer. On Wednesday, his trainer might suggest

630
00:34:02,720 --> 00:34:07,760
Speaker 1: he do something a precision one class um outdoors virtually,

631
00:34:08,719 --> 00:34:11,640
Speaker 1: and on Thursday, based on us seeing that activity, we

632
00:34:11,719 --> 00:34:14,440
Speaker 1: might suggest you should take a day off and you

633
00:34:14,520 --> 00:34:19,799
Speaker 1: should do some region work, stretching, rolling and these things

634
00:34:19,840 --> 00:34:24,799
Speaker 1: of that nature, and or meditation. And so I see

635
00:34:24,840 --> 00:34:27,640
Speaker 1: a future world that has got me, you know, very

636
00:34:27,719 --> 00:34:32,640
Speaker 1: energized and very excited, where we are more engaged with

637
00:34:32,680 --> 00:34:38,560
Speaker 1: our community than ever before. And I think ultimately that

638
00:34:38,680 --> 00:34:42,240
Speaker 1: is obviously great for the community, UM, great for our

639
00:34:42,280 --> 00:34:46,840
Speaker 1: talent um our members want more and more from our talent,

640
00:34:47,239 --> 00:34:49,719
Speaker 1: and and and good business at the same time, So

641
00:34:49,800 --> 00:34:52,160
Speaker 1: does the customer change going forward? And I do wonder

642
00:34:52,200 --> 00:34:54,680
Speaker 1: about this. And I think back to a conversation you

643
00:34:54,719 --> 00:34:57,240
Speaker 1: and I had from my book where we talked about,

644
00:34:57,840 --> 00:35:02,320
Speaker 1: you know, the Great Recession and and the resiliency candidly

645
00:35:02,400 --> 00:35:04,480
Speaker 1: that your business had that I think surprised you at

646
00:35:04,480 --> 00:35:07,279
Speaker 1: the time in terms of even you know, in very

647
00:35:07,360 --> 00:35:11,520
Speaker 1: dire economic times, you know, people holding onto their Equinox membership,

648
00:35:11,600 --> 00:35:15,600
Speaker 1: maybe over vacations or things like that. Uh. And and

649
00:35:15,760 --> 00:35:17,640
Speaker 1: keep me honest that I don't want to misquote you

650
00:35:17,880 --> 00:35:20,799
Speaker 1: on that, but but I do wonder we are going

651
00:35:20,840 --> 00:35:23,160
Speaker 1: to go into a tough economic time. We're already in

652
00:35:23,160 --> 00:35:25,960
Speaker 1: a in a tough economic time, and I wonder how

653
00:35:26,000 --> 00:35:28,759
Speaker 1: the composition of of your membership changes or if you

654
00:35:28,800 --> 00:35:33,760
Speaker 1: anticipate that at all. So no, you good, good memory,

655
00:35:33,800 --> 00:35:37,360
Speaker 1: because that was a long time ago. Uh. We demonstrated

656
00:35:37,840 --> 00:35:41,399
Speaker 1: through multiple recessions, but most you know, significantly through two

657
00:35:41,440 --> 00:35:45,120
Speaker 1: thousand and eight that um, we are what I would

658
00:35:45,160 --> 00:35:49,680
Speaker 1: say is recession recession resilient. UM that are members at

659
00:35:49,719 --> 00:35:53,959
Speaker 1: the time started prioritizing you more more so UM their

660
00:35:54,040 --> 00:35:56,439
Speaker 1: health and well being than they had historically. And that

661
00:35:57,000 --> 00:35:59,919
Speaker 1: um and that they wanted a high quality of frame

662
00:36:00,120 --> 00:36:04,200
Speaker 1: with the with the best talent, and that was Equinox,

663
00:36:04,320 --> 00:36:07,840
Speaker 1: and so we actually performed, you know, very well during

664
00:36:08,400 --> 00:36:13,040
Speaker 1: the two thousand eight two nine recession, which led us

665
00:36:13,080 --> 00:36:18,080
Speaker 1: to um then go about and say, well, how can

666
00:36:18,120 --> 00:36:21,360
Speaker 1: we benefit from what's emerging in terms of the trend,

667
00:36:22,040 --> 00:36:24,759
Speaker 1: And we went out and what Soul Cycle. It was

668
00:36:24,760 --> 00:36:26,840
Speaker 1: a very small business of the time, and obviously the

669
00:36:26,880 --> 00:36:30,240
Speaker 1: success there speaks for itself, and we also launched Blink.

670
00:36:31,640 --> 00:36:35,319
Speaker 1: I see that they'll definitely will be some you know,

671
00:36:35,360 --> 00:36:38,520
Speaker 1: pressure and some people that regardless of how great the

672
00:36:38,560 --> 00:36:42,839
Speaker 1: Equinox standard is or how um integrate Equinox plus is,

673
00:36:43,320 --> 00:36:46,680
Speaker 1: that they will still be concerned about going into a

674
00:36:46,719 --> 00:36:50,520
Speaker 1: physical location, whether it because they have an underlying condition

675
00:36:50,800 --> 00:36:52,880
Speaker 1: or because of their age or whatever it may be.

676
00:36:53,480 --> 00:36:56,600
Speaker 1: I think that percentage will not be very big over time,

677
00:36:56,640 --> 00:36:59,200
Speaker 1: but I think there's still be a percentage there. But

678
00:36:59,280 --> 00:37:02,280
Speaker 1: I also think we're gonna have an influx of demand

679
00:37:02,320 --> 00:37:05,200
Speaker 1: for two reasons. One is health is the new wealth.

680
00:37:05,280 --> 00:37:07,800
Speaker 1: I've talked about that repeatedly over the last couple of years.

681
00:37:07,840 --> 00:37:09,960
Speaker 1: But there's going to be a big flight to quality

682
00:37:10,160 --> 00:37:12,800
Speaker 1: the consumer. In my mind, even if they have to stretch,

683
00:37:13,320 --> 00:37:16,239
Speaker 1: is going to look to a brand like Equinox as

684
00:37:16,320 --> 00:37:18,920
Speaker 1: the place where they want to be. And if it

685
00:37:19,000 --> 00:37:21,399
Speaker 1: means one less meal out or they've got to save

686
00:37:21,480 --> 00:37:24,120
Speaker 1: somewhere else, they're going to do it because they're gonna

687
00:37:24,120 --> 00:37:27,319
Speaker 1: want Equinox, and Equinox is in a category of one.

688
00:37:28,239 --> 00:37:31,279
Speaker 1: The other aspect, I will say, is an unfortunate one.

689
00:37:31,760 --> 00:37:34,200
Speaker 1: But I do think the landscape is gonna change and

690
00:37:34,280 --> 00:37:37,080
Speaker 1: change dramatically. There will be just like there will be

691
00:37:37,120 --> 00:37:40,160
Speaker 1: in retail and f and B. Unfortunately, and as a

692
00:37:40,200 --> 00:37:43,279
Speaker 1: lifelong New Yorker, it breaks my heart to even even

693
00:37:43,320 --> 00:37:47,000
Speaker 1: acknowledge that there's going to be in the fitness category,

694
00:37:47,080 --> 00:37:50,160
Speaker 1: there's going to be a lot of um places that

695
00:37:50,200 --> 00:37:53,719
Speaker 1: don't open or don't open well, and and so there's

696
00:37:53,760 --> 00:37:57,960
Speaker 1: going to be an opportunity for some to emerge as

697
00:37:58,000 --> 00:38:00,600
Speaker 1: big winners. I think we will be one of the companies.

698
00:38:00,880 --> 00:38:04,640
Speaker 1: Will be lots of uncertainty and lots of challenges between

699
00:38:04,640 --> 00:38:07,160
Speaker 1: now and then, but I do think will be one

700
00:38:07,200 --> 00:38:09,920
Speaker 1: of those big winners for that reason as well. And

701
00:38:10,000 --> 00:38:12,399
Speaker 1: so let's talk a little bit more about that. I mean,

702
00:38:12,480 --> 00:38:16,000
Speaker 1: what what does that sort of reckoning look like in

703
00:38:16,040 --> 00:38:20,360
Speaker 1: your estimation. Do you anticipate maybe some M and A opportunities?

704
00:38:20,400 --> 00:38:25,040
Speaker 1: Do you anticipate maybe picking up some talent selectively? How

705
00:38:25,080 --> 00:38:27,239
Speaker 1: does this how does this shake out it? And how

706
00:38:27,280 --> 00:38:30,239
Speaker 1: do you operate in a world where there is so

707
00:38:30,320 --> 00:38:36,000
Speaker 1: much uncertainty, especially amid this sort of scattered landscape. Well,

708
00:38:36,040 --> 00:38:41,239
Speaker 1: the entrepreneurimy, you know, loves you know kind of you know,

709
00:38:41,280 --> 00:38:43,960
Speaker 1: anytime there's some adversity, and I don't love that. You know,

710
00:38:44,040 --> 00:38:45,759
Speaker 1: we're going through this as a country or as a

711
00:38:45,800 --> 00:38:49,120
Speaker 1: world from a pandemic perspective, but from a pure business perspective,

712
00:38:49,640 --> 00:38:53,359
Speaker 1: you know, adversity brings opportunity, and so there's gonna be opportunities.

713
00:38:53,480 --> 00:38:57,040
Speaker 1: I don't necessarily for us see it so quickly as

714
00:38:57,120 --> 00:39:01,000
Speaker 1: anything significant From an M and A perspective, maybe there's some, um,

715
00:39:01,120 --> 00:39:05,480
Speaker 1: small things, but I don't see anything significant there um.

716
00:39:05,520 --> 00:39:07,680
Speaker 1: But but what I do see, and we're already seeing

717
00:39:07,719 --> 00:39:11,160
Speaker 1: it is is the talent um side. I mean, the

718
00:39:11,200 --> 00:39:15,239
Speaker 1: talent um which is such a heart, the heart of

719
00:39:15,239 --> 00:39:18,279
Speaker 1: our brands um. You know, we once again, you know,

720
00:39:18,360 --> 00:39:22,120
Speaker 1: continue to pay the majority of our people, which is

721
00:39:22,200 --> 00:39:25,000
Speaker 1: so on precedented, not just the pandemic, but just how

722
00:39:25,040 --> 00:39:28,960
Speaker 1: we're handling that, and you know, other talent is noticing that,

723
00:39:29,280 --> 00:39:32,120
Speaker 1: and I think that we're in for a macro shift

724
00:39:32,239 --> 00:39:34,080
Speaker 1: where you know, it was kind of fun to do

725
00:39:34,160 --> 00:39:36,799
Speaker 1: the startup thing or the entrepreneurial thing, but I think

726
00:39:36,800 --> 00:39:38,839
Speaker 1: there's going to be one of the trends that will

727
00:39:38,840 --> 00:39:42,800
Speaker 1: shift from the workforce perspective is greater desire for working

728
00:39:42,840 --> 00:39:45,560
Speaker 1: for a company that is stable, that's going to that

729
00:39:45,880 --> 00:39:48,319
Speaker 1: has been and will continue to be around for a

730
00:39:48,360 --> 00:39:50,640
Speaker 1: long time, that takes care of its people, that has

731
00:39:50,760 --> 00:39:54,160
Speaker 1: strong values, and and so we're we're we're one of

732
00:39:54,200 --> 00:39:57,560
Speaker 1: those companies. And so we we've already have a lot

733
00:39:57,600 --> 00:40:00,920
Speaker 1: of that income in in terms of the talent wanting

734
00:40:00,960 --> 00:40:03,360
Speaker 1: to to work for us, and so we're gonna be

735
00:40:03,440 --> 00:40:06,640
Speaker 1: highly selective, but they will definitely be opportunities in that regard,

736
00:40:06,719 --> 00:40:09,279
Speaker 1: whether it be you know, the talent that you know

737
00:40:09,320 --> 00:40:12,360
Speaker 1: teaches the classes or the personal trainers, but also you

738
00:40:12,400 --> 00:40:15,600
Speaker 1: know executive talent as well. So I know you're a

739
00:40:15,680 --> 00:40:19,279
Speaker 1: voracious consumer of all things related to this, and you

740
00:40:19,360 --> 00:40:23,160
Speaker 1: keep a close eye on everybody who's doing everything. It

741
00:40:23,200 --> 00:40:26,759
Speaker 1: would be um journalistic malpractice if I didn't ask you

742
00:40:26,880 --> 00:40:29,399
Speaker 1: about Peloton and what's been going on over the past

743
00:40:29,440 --> 00:40:32,080
Speaker 1: couple of years with their I p O and what

744
00:40:32,160 --> 00:40:35,759
Speaker 1: they've been able to do. From a public market perspective here,

745
00:40:35,840 --> 00:40:38,319
Speaker 1: what do you take from that in terms of the

746
00:40:38,320 --> 00:40:44,200
Speaker 1: broader market and the broader opportunity. I think it suggests

747
00:40:44,239 --> 00:40:54,279
Speaker 1: that there's uh growing demand for fitness UM and and

748
00:40:54,280 --> 00:40:56,520
Speaker 1: and some of that. And obviously the case of Peloton

749
00:40:56,640 --> 00:41:00,080
Speaker 1: is the virtual or digital offering, but I also so

750
00:41:00,200 --> 00:41:04,560
Speaker 1: believe it's important to anticipate the needs of the consumer,

751
00:41:04,640 --> 00:41:08,880
Speaker 1: and I think the long term play is marrying the

752
00:41:09,440 --> 00:41:13,319
Speaker 1: physical and the digital and integrated and seamless way for

753
00:41:13,360 --> 00:41:17,719
Speaker 1: the consumer. And so I like that there's not just

754
00:41:17,840 --> 00:41:21,320
Speaker 1: Peloton that all these virtual offers in showing this amazing

755
00:41:21,800 --> 00:41:26,439
Speaker 1: demand for living a healthy lifestyle, engaging in fitness, which

756
00:41:26,480 --> 00:41:29,759
Speaker 1: is important to people's once again immune system. But I

757
00:41:29,800 --> 00:41:34,240
Speaker 1: also think it speaks volumes to the opportunity ahead for

758
00:41:34,239 --> 00:41:39,040
Speaker 1: for ourselves UM and the unique way we're positioned to

759
00:41:39,120 --> 00:41:44,400
Speaker 1: be able to provide our members with UM a physical

760
00:41:44,840 --> 00:41:50,160
Speaker 1: and virtual, integrated offering, whether that's personalized through virtual coaching,

761
00:41:50,920 --> 00:41:54,400
Speaker 1: or that's just being able to seamlessly move back and

762
00:41:54,400 --> 00:41:57,000
Speaker 1: forth physically and digitally, whether it be within one brand

763
00:41:57,120 --> 00:41:59,359
Speaker 1: or cross brand. So one of the things you asked

764
00:41:59,360 --> 00:42:01,160
Speaker 1: about what to the sum of the surprises on the

765
00:42:01,239 --> 00:42:03,960
Speaker 1: virus side, is it's really interesting to see an Equinox

766
00:42:04,000 --> 00:42:08,200
Speaker 1: member now having access to pure yoga content or content

767
00:42:08,239 --> 00:42:10,960
Speaker 1: from soul Cycle. I mean that that's that's big added

768
00:42:11,040 --> 00:42:13,800
Speaker 1: value to the membership, and I think we're uniquely positioned

769
00:42:13,800 --> 00:42:16,239
Speaker 1: to do that, and I think that that is a

770
00:42:16,280 --> 00:42:19,080
Speaker 1: big part of the opportunity ahead for us. So, Harvey,

771
00:42:19,120 --> 00:42:21,719
Speaker 1: before I let you go, I just have one last question. Uh.

772
00:42:21,760 --> 00:42:24,400
Speaker 1: You know you mentioned your lifelong New York or you

773
00:42:24,440 --> 00:42:27,440
Speaker 1: know you're watching the city sort of cope with this,

774
00:42:27,520 --> 00:42:31,440
Speaker 1: You're watching your industry, uh cope with with all of this, Like,

775
00:42:31,600 --> 00:42:34,040
Speaker 1: how do you think it's changed you as a leader,

776
00:42:34,320 --> 00:42:37,759
Speaker 1: as as an executive, as an entrepreneur as you as

777
00:42:37,760 --> 00:42:40,040
Speaker 1: you mentioned earlier, how are you different on the other

778
00:42:40,080 --> 00:42:43,480
Speaker 1: side of this, you think? So you know that that

779
00:42:43,480 --> 00:42:48,720
Speaker 1: that's a great question, Jason, and um I challenge myself

780
00:42:48,800 --> 00:42:51,400
Speaker 1: to find time to to think about. Unfortunately, you know,

781
00:42:51,480 --> 00:42:54,080
Speaker 1: every day is like groundhog Day, and and you know

782
00:42:54,440 --> 00:42:58,279
Speaker 1: we all jump from zoom to zoom. But I would say,

783
00:42:58,360 --> 00:43:00,960
Speaker 1: you know, first and foremost, since a whole started I've

784
00:43:01,000 --> 00:43:04,720
Speaker 1: always been an active participant in and are offering UM

785
00:43:04,760 --> 00:43:08,319
Speaker 1: as you know, but I fully have embraced no days off.

786
00:43:08,440 --> 00:43:13,440
Speaker 1: I mean I am training seven days a week, UM,

787
00:43:13,480 --> 00:43:16,239
Speaker 1: three times a week virtually with my coach of many

788
00:43:16,320 --> 00:43:19,239
Speaker 1: years UM who does a great job for me. And

789
00:43:19,280 --> 00:43:22,879
Speaker 1: the other days on my own weather through Varius UM,

790
00:43:22,920 --> 00:43:26,240
Speaker 1: taking a precision run class or taking a seul Pycho

791
00:43:26,239 --> 00:43:29,840
Speaker 1: class on on the soul at home bike. UM. But

792
00:43:29,960 --> 00:43:32,080
Speaker 1: I am engaging seven days. And what that's doing for

793
00:43:32,200 --> 00:43:37,160
Speaker 1: me is giving me even more clarity UM than ever

794
00:43:37,239 --> 00:43:40,879
Speaker 1: before of of of how to think about things, UM,

795
00:43:41,080 --> 00:43:44,239
Speaker 1: how to emotionally engage. And it's also allowing me to

796
00:43:44,239 --> 00:43:47,320
Speaker 1: show up well for as a result, for my family,

797
00:43:47,400 --> 00:43:51,160
Speaker 1: my friends, UM, and and the employees that that I

798
00:43:51,200 --> 00:43:55,399
Speaker 1: love love so much. And and so when you start that,

799
00:43:55,400 --> 00:43:59,919
Speaker 1: that's a big help to me. And then I start saying, well,

800
00:44:00,160 --> 00:44:01,440
Speaker 1: how do I need to show up for I've got

801
00:44:01,480 --> 00:44:04,080
Speaker 1: a young workforce? And you know, one of the things

802
00:44:04,160 --> 00:44:06,239
Speaker 1: that you realize over the years and and and it

803
00:44:06,320 --> 00:44:08,840
Speaker 1: just has been reinforced in recent times for me. But

804
00:44:08,880 --> 00:44:11,120
Speaker 1: I go back to even two thousand eight, and I

805
00:44:11,160 --> 00:44:13,320
Speaker 1: remember in two thousand eight, I was standing in front

806
00:44:13,320 --> 00:44:16,360
Speaker 1: of unplanned. I was standing in front of our I

807
00:44:16,400 --> 00:44:18,640
Speaker 1: should say planned, but not for the reasons of what

808
00:44:18,760 --> 00:44:20,760
Speaker 1: was to happen. I was standing in front of our

809
00:44:21,320 --> 00:44:24,120
Speaker 1: leadership team, you know, top hundred people in the company

810
00:44:24,120 --> 00:44:26,439
Speaker 1: at the time. So it's just fall of two thousand eight,

811
00:44:26,880 --> 00:44:31,640
Speaker 1: the day the morning after bear sterns Um imploded, and

812
00:44:31,920 --> 00:44:34,600
Speaker 1: I looked at and everybody, you know, this young workforce

813
00:44:34,800 --> 00:44:39,279
Speaker 1: was kind of white, and they were looking for guidance,

814
00:44:40,120 --> 00:44:43,239
Speaker 1: and you know, I kind of threw my script out

815
00:44:43,320 --> 00:44:44,600
Speaker 1: the window of what I was going to talk. It

816
00:44:44,640 --> 00:44:47,200
Speaker 1: was supposed to be a planning session, and I shared

817
00:44:47,239 --> 00:44:50,120
Speaker 1: with them how I was thinking about it, and you

818
00:44:50,160 --> 00:44:54,439
Speaker 1: could just see the shoulders come down, the faces lightened up.

819
00:44:54,920 --> 00:44:56,960
Speaker 1: And So one of the things that I've done with

820
00:44:57,080 --> 00:45:00,480
Speaker 1: great frequency with our teams is one is is communicate

821
00:45:00,520 --> 00:45:04,200
Speaker 1: more than ever um. That's always we know it's important,

822
00:45:04,239 --> 00:45:06,480
Speaker 1: but you realize in times like that this it's more

823
00:45:06,520 --> 00:45:09,040
Speaker 1: important than ever um. And it's part of that. That's

824
00:45:09,080 --> 00:45:12,320
Speaker 1: town halls, that's informal, that's formal, that's lots of different ways,

825
00:45:12,360 --> 00:45:16,160
Speaker 1: that's through memos, but it's also helping them how to

826
00:45:16,239 --> 00:45:19,960
Speaker 1: think about this both personally and professionally, and that also

827
00:45:20,200 --> 00:45:23,360
Speaker 1: giving them permission to know that it's okay to find

828
00:45:23,440 --> 00:45:27,640
Speaker 1: some opportunity to laugh and and and enjoy and and

829
00:45:27,640 --> 00:45:30,560
Speaker 1: and as well as to giving them permission to say

830
00:45:30,600 --> 00:45:35,239
Speaker 1: it's gonna be okay. Unfortunately, it's tragic that we've had

831
00:45:35,280 --> 00:45:38,400
Speaker 1: the deaths that we've had. UM breaks my heart to

832
00:45:38,480 --> 00:45:41,000
Speaker 1: know that as a New Yorker that so many of

833
00:45:41,080 --> 00:45:44,319
Speaker 1: the one off restaurants won't reopen UM and how that

834
00:45:44,360 --> 00:45:47,680
Speaker 1: affects our culture and those who work at those restaurants

835
00:45:47,719 --> 00:45:52,400
Speaker 1: and retail and what have you. But we're resilient country.

836
00:45:52,440 --> 00:45:57,440
Speaker 1: We're resilient UM city as New York. Every time we

837
00:45:57,520 --> 00:46:01,400
Speaker 1: have a major crisis, and everybody says, you know, New

838
00:46:01,480 --> 00:46:04,560
Speaker 1: York's going to be different. Yeah, it's different, but we

839
00:46:04,600 --> 00:46:07,120
Speaker 1: always come back stronger and better than ever. And I

840
00:46:07,200 --> 00:46:09,600
Speaker 1: think that that's what will happen to New York. It's

841
00:46:09,640 --> 00:46:11,800
Speaker 1: going to take time. We've got some tough times ahead

842
00:46:12,280 --> 00:46:14,480
Speaker 1: UM and we need some you know, strong hands in

843
00:46:14,520 --> 00:46:17,160
Speaker 1: the wheel in terms of the economy and how to

844
00:46:17,239 --> 00:46:20,440
Speaker 1: recover from it. UM Corporate New York has to participate

845
00:46:20,480 --> 00:46:23,440
Speaker 1: in that. UM Corporate New York and and and the

846
00:46:23,560 --> 00:46:26,200
Speaker 1: USS have tried to do the best under the circumstances

847
00:46:26,200 --> 00:46:28,640
Speaker 1: to take care of their employees. UM. And I think

848
00:46:28,680 --> 00:46:31,839
Speaker 1: if we collaborate, just like farmers collaborating right now when

849
00:46:31,840 --> 00:46:34,359
Speaker 1: finding a vaccination. UM, we got a lot of smart

850
00:46:34,360 --> 00:46:37,040
Speaker 1: people out there, and we'll um a lot of us

851
00:46:37,040 --> 00:46:39,080
Speaker 1: will come out much better than when we started this

852
00:46:39,120 --> 00:46:42,080
Speaker 1: whole process. Harveys feedback. Really good to talk with you,

853
00:46:42,120 --> 00:46:43,720
Speaker 1: good to catch up. Do you look forward to seeing

854
00:46:43,719 --> 00:46:47,000
Speaker 1: you in person before too long? Very generous with your time.

855
00:46:47,000 --> 00:46:49,279
Speaker 1: You know you've got a lot going on, and UH

856
00:46:49,480 --> 00:46:53,160
Speaker 1: continue to catch up and check in with you throughout

857
00:46:53,280 --> 00:46:56,360
Speaker 1: this brave new world. Really appreciate it. Thank you, Thanks Jason,

858
00:46:56,400 --> 00:46:59,439
Speaker 1: appreciate the time as well. So guys, you know, two

859
00:46:59,560 --> 00:47:02,400
Speaker 1: very different perspectives in some ways the same business, but

860
00:47:02,520 --> 00:47:06,319
Speaker 1: on opposite ends of the spectrum to some extent. What

861
00:47:06,400 --> 00:47:09,719
Speaker 1: do you make of the fitness world these days? You know,

862
00:47:09,760 --> 00:47:12,640
Speaker 1: we've talked a lot about professional sports, but we also

863
00:47:12,680 --> 00:47:15,480
Speaker 1: know that there's a huge, huge business around, you know,

864
00:47:15,560 --> 00:47:18,040
Speaker 1: keeping ourselves in shape. Mike, what did you think? Well,

865
00:47:18,160 --> 00:47:20,719
Speaker 1: my my takeaway first from Chris Rondo was that he

866
00:47:20,840 --> 00:47:23,879
Speaker 1: was ahead of the game with his uh antibacterial low

867
00:47:24,760 --> 00:47:29,440
Speaker 1: hand cleanser that's uh prevents COVID nineteen and he simply

868
00:47:29,560 --> 00:47:32,120
Speaker 1: admitted that we had it by accident. But I think

869
00:47:32,120 --> 00:47:34,920
Speaker 1: that uh, you know, I think Jim's like especially like

870
00:47:34,960 --> 00:47:38,080
Speaker 1: Planet Fitness, have been practicing social distancing for a long

871
00:47:38,120 --> 00:47:41,279
Speaker 1: long time. Um, you know, people are intimidated. You don't.

872
00:47:41,320 --> 00:47:43,400
Speaker 1: You don't want to sit down next to a weightlifting

873
00:47:43,440 --> 00:47:45,520
Speaker 1: machine next to lou Ferrigno. You want to get eight

874
00:47:45,520 --> 00:47:48,960
Speaker 1: benches away from him, right And and and and the

875
00:47:49,000 --> 00:47:51,319
Speaker 1: women that come in there don't want to stand next

876
00:47:51,360 --> 00:47:53,640
Speaker 1: to work out on the treadmill next to Miss America.

877
00:47:53,719 --> 00:47:55,800
Speaker 1: So they're going to go in the in the far corner.

878
00:47:55,880 --> 00:47:58,560
Speaker 1: So I think that's already built in there right now.

879
00:47:58,560 --> 00:48:01,440
Speaker 1: And I think they've got an edge people or uh,

880
00:48:01,480 --> 00:48:03,960
Speaker 1: I want to feel good about themselves. And and and

881
00:48:04,080 --> 00:48:07,839
Speaker 1: something that Harvey Speedback talked about was the mental well

882
00:48:07,880 --> 00:48:10,560
Speaker 1: being of people as well that are going through such

883
00:48:10,560 --> 00:48:14,240
Speaker 1: a hard time between jobs and first responders and hanging

884
00:48:14,280 --> 00:48:17,960
Speaker 1: around the house and that meditation. Um, he's noticed that

885
00:48:18,000 --> 00:48:21,120
Speaker 1: people are checking in and staying with their meditation part

886
00:48:21,200 --> 00:48:24,160
Speaker 1: of their well being as much as their physical well

887
00:48:24,200 --> 00:48:26,800
Speaker 1: being as well. Those are my two takeaways. Yeah, Michael

888
00:48:26,800 --> 00:48:29,239
Speaker 1: barb Wogie think. First of all, let me start that's

889
00:48:29,239 --> 00:48:31,880
Speaker 1: why Planet Fitness has the lunk alarm. That's why you

890
00:48:31,880 --> 00:48:33,360
Speaker 1: don't want to be next to a louver for IGNA.

891
00:48:33,600 --> 00:48:35,880
Speaker 1: I've heard that thing go off over and over again

892
00:48:35,920 --> 00:48:37,960
Speaker 1: when I'm in the gym. By the way, the people

893
00:48:38,000 --> 00:48:41,120
Speaker 1: who don't know the lunk alarm is, he's got some

894
00:48:41,200 --> 00:48:46,680
Speaker 1: guy in there and he's grunting, and it's like and

895
00:48:46,680 --> 00:48:50,000
Speaker 1: then the weights are crashing down and and finally someone

896
00:48:50,080 --> 00:48:53,240
Speaker 1: hits it as like shut up and then hit that button,

897
00:48:53,280 --> 00:48:57,200
Speaker 1: alarm button, and that's the lunk alarm is like all right,

898
00:48:57,880 --> 00:49:00,880
Speaker 1: Just the casual people here are at the um trying

899
00:49:00,920 --> 00:49:03,640
Speaker 1: to stay in shape. But on a more personal note,

900
00:49:04,600 --> 00:49:09,040
Speaker 1: and I have to admit it's like listen, I'm and

901
00:49:09,120 --> 00:49:12,920
Speaker 1: it's not because of you know, the gentleman that running

902
00:49:12,960 --> 00:49:16,319
Speaker 1: the gyms are are great. They are. It's just that

903
00:49:16,400 --> 00:49:19,000
Speaker 1: I have an apprehension of going to a gym right now.

904
00:49:20,440 --> 00:49:22,880
Speaker 1: You know it's yes, you can wipe it down as

905
00:49:22,920 --> 00:49:26,160
Speaker 1: much as you can, uh but you know that the

906
00:49:26,239 --> 00:49:30,480
Speaker 1: COVID nine team uh pandemic out there has made me

907
00:49:30,520 --> 00:49:34,719
Speaker 1: realize how this virus can spread and very easy and

908
00:49:34,800 --> 00:49:37,799
Speaker 1: I hope one day we get the vaccine for it

909
00:49:37,840 --> 00:49:41,320
Speaker 1: and maybe that's when I'll go back to the gym. Um.

910
00:49:41,360 --> 00:49:44,719
Speaker 1: But that's just my personal view. Yeah, it's a niterest. Look,

911
00:49:44,719 --> 00:49:46,480
Speaker 1: I think it's gonna be a huge debate. And when

912
00:49:46,480 --> 00:49:49,080
Speaker 1: we were talking about it around our dinner table after

913
00:49:49,120 --> 00:49:51,279
Speaker 1: I did these interviews, and you know, my wife is like,

914
00:49:51,360 --> 00:49:53,400
Speaker 1: I'm not in any hurry to go back. I'm just

915
00:49:53,520 --> 00:49:56,160
Speaker 1: not sure that and you know, and she, you know,

916
00:49:56,239 --> 00:49:58,680
Speaker 1: goes to the gym a fair amount in normal times,

917
00:49:58,880 --> 00:50:02,919
Speaker 1: whereas my seventeen year year old who's basically created what

918
00:50:03,000 --> 00:50:06,640
Speaker 1: we lovingly refer to now as his prison Jim in

919
00:50:06,719 --> 00:50:10,279
Speaker 1: our garage with just like some borrowed dumbbells and not

920
00:50:10,400 --> 00:50:13,640
Speaker 1: even a real bench, and he's literally like chalking his

921
00:50:13,760 --> 00:50:18,399
Speaker 1: reps using his little sister's sidewalk chalk. Uh. He's ready

922
00:50:18,440 --> 00:50:20,319
Speaker 1: to go back as soon as it like, as soon

923
00:50:20,360 --> 00:50:23,520
Speaker 1: as our local gym opens, he's back there. So you know,

924
00:50:23,640 --> 00:50:26,359
Speaker 1: this is a it's almost a microcosm of what we're

925
00:50:26,400 --> 00:50:29,280
Speaker 1: seeing across the country in terms of how different people

926
00:50:29,280 --> 00:50:31,359
Speaker 1: in different parts of the country and I think of

927
00:50:31,400 --> 00:50:35,200
Speaker 1: different ages and all of those things tend to feel Yeah,

928
00:50:35,239 --> 00:50:39,320
Speaker 1: I really was interested in the sort of compare and contrast.

929
00:50:39,440 --> 00:50:43,440
Speaker 1: And I was also fascinated by Harvey Spevak talking about,

930
00:50:43,520 --> 00:50:46,160
Speaker 1: you know, this equinox standard that they're going to try

931
00:50:46,160 --> 00:50:49,000
Speaker 1: and set, and you do wonder, you know, if what

932
00:50:49,160 --> 00:50:52,440
Speaker 1: it takes to get people like you back in the gym, Michael,

933
00:50:52,800 --> 00:50:56,359
Speaker 1: is you know this sort of gold standard of cleanliness

934
00:50:56,600 --> 00:50:59,000
Speaker 1: um or if as you say, it's got to be

935
00:50:59,080 --> 00:51:02,760
Speaker 1: much further down the lawn line when you get to uh,

936
00:51:02,800 --> 00:51:05,040
Speaker 1: you know something where people feel safe because of a

937
00:51:05,120 --> 00:51:11,759
Speaker 1: vaccine or some sort of medical breakthrough. It feels better

938
00:51:11,800 --> 00:51:13,520
Speaker 1: to be number one than number five. I'll wear a

939
00:51:13,600 --> 00:51:15,279
Speaker 1: number because of Mike. We have a chance to go

940
00:51:15,360 --> 00:51:17,160
Speaker 1: for three in a row, good numbers in a good time.

941
00:51:17,200 --> 00:51:19,319
Speaker 1: And let's first started wearing the number. I would just

942
00:51:19,320 --> 00:51:23,360
Speaker 1: have you floomberg business of sports, the number of the week.

943
00:51:24,600 --> 00:51:27,279
Speaker 1: Time Now for the number of the week. Yeah, this

944
00:51:27,320 --> 00:51:32,080
Speaker 1: isn't gonna be easy there we go here, Well, everybody

945
00:51:32,160 --> 00:51:36,000
Speaker 1: play along at home and watch Jason and Mike say,

946
00:51:36,960 --> 00:51:43,040
Speaker 1: bubble around. Here's the number. Eighteen point four million dollars

947
00:51:43,640 --> 00:51:49,640
Speaker 1: or fifteen million pounds. Now, that's a reason why I

948
00:51:49,680 --> 00:51:53,840
Speaker 1: gave that translation alright, so it has something to do

949
00:51:53,840 --> 00:51:56,480
Speaker 1: Does it have something to do with Premier League soccer?

950
00:51:57,400 --> 00:52:01,880
Speaker 1: Are you're on the right track? Soccer on the acid?

951
00:52:02,000 --> 00:52:08,840
Speaker 1: It's right you right? Is it? How much? Is it

952
00:52:08,920 --> 00:52:12,279
Speaker 1: like the transfer price for a player? No, but but

953
00:52:12,320 --> 00:52:14,880
Speaker 1: you're on the right track. Yeah, Mike Clinch helped me

954
00:52:14,920 --> 00:52:18,520
Speaker 1: out here. It's gonna be it's gonna be a a

955
00:52:18,520 --> 00:52:21,640
Speaker 1: total amount of losses for the league. Really on the

956
00:52:21,719 --> 00:52:26,200
Speaker 1: right track. You're burning hot here. I might have to

957
00:52:26,200 --> 00:52:28,719
Speaker 1: give that to you, man. That's that's that's a win

958
00:52:28,800 --> 00:52:30,680
Speaker 1: for Mike there. It's like, well both you guys want

959
00:52:31,560 --> 00:52:34,960
Speaker 1: so Manchester United the revenue dropped in the third quarter,

960
00:52:35,000 --> 00:52:38,080
Speaker 1: as the club estimated it will have to pay a

961
00:52:38,160 --> 00:52:41,400
Speaker 1: fifteen million pounds or eighteen point four million dollar rebate

962
00:52:41,440 --> 00:52:45,760
Speaker 1: to broadcasters after the coronavirus pandemic put off to soccer.

963
00:52:45,960 --> 00:52:49,080
Speaker 1: That's that's a big chunk of change. So, first of all,

964
00:52:49,120 --> 00:52:52,360
Speaker 1: big win for Mike Clinch, well done. Um. The second

965
00:52:52,440 --> 00:52:55,160
Speaker 1: is I mean, I think that speaks to a really

966
00:52:55,239 --> 00:52:57,359
Speaker 1: important point though. I mean it goes all the way

967
00:52:57,360 --> 00:52:59,120
Speaker 1: back to what we were talking about at the top

968
00:52:59,160 --> 00:53:01,960
Speaker 1: of the show with Major League Baseball sort of how

969
00:53:02,719 --> 00:53:06,600
Speaker 1: these leagues make their money becomes so important. You obviously

970
00:53:06,600 --> 00:53:10,360
Speaker 1: have Baseball really worried about the gate, but if the

971
00:53:10,480 --> 00:53:14,160
Speaker 1: revenue from the broadcast partners isn't there, I mean, that

972
00:53:14,360 --> 00:53:17,400
Speaker 1: is one of the reasons why so many people have

973
00:53:17,520 --> 00:53:21,040
Speaker 1: a literal vested interest in sports. Getting bad, Guys, you've

974
00:53:21,040 --> 00:53:23,759
Speaker 1: been listening to Bloomberg Business of Sports where here each

975
00:53:23,840 --> 00:53:25,960
Speaker 1: and every week at the same time, plus online wherever

976
00:53:26,040 --> 00:53:29,120
Speaker 1: you get your podcast you can catch those Mondays, Wednesdays

977
00:53:29,120 --> 00:53:31,200
Speaker 1: and Thursdays. I'm Michael Barr on Twitter at Big Bar

978
00:53:31,320 --> 00:53:35,040
Speaker 1: Sports Long Lived, Ricky Bobby, and I'm Mike Lynch Lynch

979
00:53:35,640 --> 00:53:40,320
Speaker 1: w CDV. And I'm Jason Kelly at Jason Kelly News,

980
00:53:40,520 --> 00:53:42,560
Speaker 1: Shake and big Thanks for joining us. Please do it

981
00:53:42,600 --> 00:53:44,480
Speaker 1: in next week when we speak with some of the

982
00:53:44,480 --> 00:53:47,520
Speaker 1: biggest names in the world of money and sports. If

983
00:53:47,520 --> 00:53:50,880
Speaker 1: you hain't first your last, you're listening the Bloomberg Business

984
00:53:50,920 --> 00:53:53,840
Speaker 1: of Sports on Bloomberg Radio around the world.