1 00:00:00,280 --> 00:00:03,360 Speaker 1: This is the business of sports. Let's talk Super Bowl 2 00:00:03,520 --> 00:00:06,600 Speaker 1: and Fox Sports, every single thing that occurs. I want 3 00:00:06,600 --> 00:00:08,880 Speaker 1: people to remember, this is a business. Guaranteed money isn't 4 00:00:08,920 --> 00:00:13,000 Speaker 1: necessarily guaranteed. Michael Ball, how high can these valuations go? 5 00:00:13,240 --> 00:00:16,919 Speaker 1: Scott Nan do everybody loves rooting against him? Right? Evan 6 00:00:17,280 --> 00:00:19,560 Speaker 1: Williams Off the field, the NBA has never been buzzier. 7 00:00:19,640 --> 00:00:22,320 Speaker 1: And the leaders in the sports industry Major League Baseball 8 00:00:22,360 --> 00:00:24,960 Speaker 1: Commissioner Rob Manfredd MIKEA. Riscoe is the commissioner of the 9 00:00:25,040 --> 00:00:28,120 Speaker 1: American Athletic Confest. Here In Smith, president of Ticketmasters, and 10 00:00:28,240 --> 00:00:31,760 Speaker 1: the race car driver Elio Castro and Evs Bloomberg Business 11 00:00:31,760 --> 00:00:35,760 Speaker 1: of Sports from Bloomberg Radio. Hello, I'm Scott, I'm Evan, 12 00:00:35,840 --> 00:00:37,839 Speaker 1: Novie Williams, and I'm Michael bar And this is the 13 00:00:37,840 --> 00:00:40,639 Speaker 1: Bloomberg Business of Sports podcast, where we explore the big 14 00:00:40,640 --> 00:00:42,400 Speaker 1: money issues in the world of sports and the day. 15 00:00:42,440 --> 00:00:45,559 Speaker 1: We begin with a serious topic, uh the impact of 16 00:00:45,600 --> 00:00:50,360 Speaker 1: the coronavirus on the sports world. Several events have already 17 00:00:50,479 --> 00:00:53,599 Speaker 1: been canceled because of this, and I should add right 18 00:00:53,600 --> 00:00:58,040 Speaker 1: now in mainland China, hundreds of people have died. In fact, 19 00:00:58,160 --> 00:01:01,520 Speaker 1: that number is starting to aproach one thousand of the 20 00:01:01,560 --> 00:01:05,279 Speaker 1: people that died in mainland China right now, it's about 21 00:01:05,280 --> 00:01:09,280 Speaker 1: a nine ten as we're talking right now, So you 22 00:01:09,319 --> 00:01:11,319 Speaker 1: can see why there is concerned about it. Yeah, and 23 00:01:11,360 --> 00:01:14,119 Speaker 1: as this as this affects the business world at large, 24 00:01:14,160 --> 00:01:17,040 Speaker 1: it obviously affects the sports business world. And you're seeing 25 00:01:17,080 --> 00:01:20,640 Speaker 1: that everything from Chinese consumers who a lot of them 26 00:01:20,640 --> 00:01:23,839 Speaker 1: are staying inside, are not chopping as much. Uh. And also, 27 00:01:24,040 --> 00:01:26,360 Speaker 1: you know, a large portion of the business world relies 28 00:01:26,400 --> 00:01:29,840 Speaker 1: on manufacturing and sourcing from China, and and factory output 29 00:01:29,840 --> 00:01:32,160 Speaker 1: has also gone down as a result of this. So 30 00:01:32,160 --> 00:01:34,320 Speaker 1: so on that side of things. You know, obviously there 31 00:01:34,400 --> 00:01:36,440 Speaker 1: is concern and a number of companies like Nike have 32 00:01:36,440 --> 00:01:38,440 Speaker 1: have been outspoken about the fact that you know, their 33 00:01:38,440 --> 00:01:40,000 Speaker 1: business is going to suffer as a result of this. 34 00:01:40,480 --> 00:01:42,919 Speaker 1: And the other you know, big thing and you mentioned it, Michael, 35 00:01:43,000 --> 00:01:45,680 Speaker 1: you know, events have been canceled and the big question 36 00:01:46,000 --> 00:01:50,200 Speaker 1: the Olympics in Tokyo, um country that has had you know, 37 00:01:50,280 --> 00:01:52,960 Speaker 1: I believe it has the second biggest number of confirmed 38 00:01:52,960 --> 00:01:56,080 Speaker 1: cases outside of China. Um that's the big one. An 39 00:01:56,080 --> 00:01:59,160 Speaker 1: Olympics CEO of the CEO of the Tokyo Olympics said 40 00:01:59,240 --> 00:02:02,520 Speaker 1: last week he seriously worried. Then he walked that back 41 00:02:02,560 --> 00:02:04,960 Speaker 1: a little bit. But the big question is what does 42 00:02:04,960 --> 00:02:06,720 Speaker 1: this look like over the next couple of months and 43 00:02:06,800 --> 00:02:08,560 Speaker 1: does it affect one of the biggest sporting events on 44 00:02:08,600 --> 00:02:10,760 Speaker 1: the planet. You have, guys, you have to wonder about 45 00:02:10,800 --> 00:02:14,959 Speaker 1: him walking back. I'm seriously worried. He should be seriously worried. 46 00:02:15,000 --> 00:02:17,200 Speaker 1: There's a cruise ship right now, you know, anchored off 47 00:02:17,240 --> 00:02:19,600 Speaker 1: of Japan where hundreds of people are already sick and 48 00:02:19,600 --> 00:02:22,720 Speaker 1: they're trying to contain it. You have the world, the 49 00:02:22,760 --> 00:02:25,520 Speaker 1: eyes of the world on your country, you have the 50 00:02:25,560 --> 00:02:31,480 Speaker 1: world coming to visit. I would be extremely concerned because, frankly, 51 00:02:31,880 --> 00:02:35,200 Speaker 1: what can he do? What can the organizing committee do? 52 00:02:35,680 --> 00:02:38,680 Speaker 1: It's incumbent upon others to solve the problem. Yeah, and 53 00:02:38,680 --> 00:02:40,840 Speaker 1: and there's you know, just for precedent. You know a 54 00:02:40,840 --> 00:02:43,960 Speaker 1: lot of people are comparing this year's coronavirus outbreak to 55 00:02:44,000 --> 00:02:46,600 Speaker 1: the outbreak of stars in two thousand three. If people 56 00:02:46,600 --> 00:02:49,600 Speaker 1: don't remember, China was supposed to host the Women's World 57 00:02:49,600 --> 00:02:52,560 Speaker 1: Cup that year, and because of that outbreak, it was 58 00:02:52,600 --> 00:02:55,040 Speaker 1: moved at the last minute here to the US, and 59 00:02:55,080 --> 00:02:57,480 Speaker 1: then the US hosted it because it had the infrastructure 60 00:02:57,480 --> 00:02:59,960 Speaker 1: in place already, So there is at least some press 61 00:03:00,040 --> 00:03:03,600 Speaker 1: sident for you know, when there is a massive pandemic 62 00:03:03,639 --> 00:03:06,440 Speaker 1: or an outbreak of disease, major sporting events having to 63 00:03:06,440 --> 00:03:10,080 Speaker 1: scramble at the last minute to move to relocate, to 64 00:03:10,120 --> 00:03:12,959 Speaker 1: get their events off the ground. Now, the coronavirus has 65 00:03:13,680 --> 00:03:17,760 Speaker 1: surpassed stars in terms of the people who have died 66 00:03:17,800 --> 00:03:21,160 Speaker 1: from it already. And I mean this is very serious. 67 00:03:21,160 --> 00:03:24,640 Speaker 1: The lb G A tour, they've canceled two more Asia 68 00:03:24,680 --> 00:03:28,359 Speaker 1: tournaments because of the virus. Let's say, for instance, not 69 00:03:29,080 --> 00:03:34,160 Speaker 1: what if they have to move the Olympics and and 70 00:03:34,360 --> 00:03:37,920 Speaker 1: that could happen. It's the impact that it would have 71 00:03:38,680 --> 00:03:41,680 Speaker 1: would be devastating. Yeah, and and again you know the 72 00:03:41,680 --> 00:03:43,840 Speaker 1: the example I gave about the World Cup. It is 73 00:03:44,640 --> 00:03:46,320 Speaker 1: easier to move a World Cup than it is to 74 00:03:46,320 --> 00:03:49,040 Speaker 1: move an Olympics. For sure, I don't know, I don't 75 00:03:49,080 --> 00:03:51,240 Speaker 1: I don't believe anyone has at least talked publicly about 76 00:03:51,640 --> 00:03:53,800 Speaker 1: if there is even a plan B for for how 77 00:03:53,840 --> 00:03:55,720 Speaker 1: to do that. And don't forget we're talking about the 78 00:03:55,720 --> 00:03:57,920 Speaker 1: Olympics and the Paralympics, right they they travel together, they 79 00:03:57,960 --> 00:04:00,320 Speaker 1: happen at the same time in the same city after 80 00:04:00,320 --> 00:04:03,200 Speaker 1: each other, So that would be a massive, massive undertaking. 81 00:04:03,200 --> 00:04:05,320 Speaker 1: And I don't think we're there yet. I think the 82 00:04:05,360 --> 00:04:07,880 Speaker 1: big issue is that and none of us are scignentists here, 83 00:04:07,920 --> 00:04:10,240 Speaker 1: but it sounds like the incubation period on this virus 84 00:04:10,240 --> 00:04:13,600 Speaker 1: is very large, which makes projecting the spread of it 85 00:04:13,680 --> 00:04:17,719 Speaker 1: extremely difficult. Uh So, you know, we don't know right now, obviously, 86 00:04:17,920 --> 00:04:20,080 Speaker 1: but you know it's gonna be a while I think 87 00:04:20,080 --> 00:04:23,360 Speaker 1: before we have an understanding exactly of whether this thing 88 00:04:23,440 --> 00:04:26,080 Speaker 1: is contained, where it's going, etcetera. And that that is 89 00:04:26,080 --> 00:04:27,880 Speaker 1: the thing. And I agree with you, Scott. That's the 90 00:04:27,880 --> 00:04:29,920 Speaker 1: thing that scares me if I'm Tokyo is the fact that, 91 00:04:30,080 --> 00:04:32,640 Speaker 1: you know, we may be months away from from having 92 00:04:32,640 --> 00:04:35,159 Speaker 1: concrete ansles already, and there has to be a line 93 00:04:35,200 --> 00:04:37,599 Speaker 1: of demarcation and we have a go date, we have 94 00:04:37,640 --> 00:04:39,440 Speaker 1: a stop date. I mean, you're gonna need to know 95 00:04:39,560 --> 00:04:41,760 Speaker 1: at some point and if you are going to try 96 00:04:41,839 --> 00:04:46,000 Speaker 1: to switch locals, preparations there have to begin. Do they 97 00:04:46,040 --> 00:04:48,440 Speaker 1: know that date? One? And it's a time to start 98 00:04:48,520 --> 00:04:51,839 Speaker 1: calling some insurance carriers and saying, what what is the 99 00:04:51,880 --> 00:04:53,760 Speaker 1: organizing committee? You know, how does the insurance on this 100 00:04:53,800 --> 00:04:57,120 Speaker 1: event work. Does it feel like every Olympic cycle there 101 00:04:57,240 --> 00:05:01,440 Speaker 1: is either a massive you know, glow do bowle outbreak 102 00:05:01,440 --> 00:05:05,480 Speaker 1: of some disease or geopolitical concern. It feels like every time, 103 00:05:05,880 --> 00:05:08,880 Speaker 1: whether it's Zico, whether it's what's happening in in Russia 104 00:05:08,960 --> 00:05:11,320 Speaker 1: and Ukraine, it just feels like every Olympic cycle there 105 00:05:11,360 --> 00:05:15,800 Speaker 1: is something that gives travelers pause on whether or not 106 00:05:15,839 --> 00:05:18,719 Speaker 1: they want to attend the games. Yes. Yeah, And and 107 00:05:18,760 --> 00:05:20,479 Speaker 1: the the funny thing I mean we talked about this 108 00:05:20,480 --> 00:05:22,640 Speaker 1: in the show recently, is that for a lot of people, 109 00:05:23,040 --> 00:05:26,560 Speaker 1: the Tokyo Games were viewed as the completely safe games. 110 00:05:27,040 --> 00:05:30,080 Speaker 1: You know that, after you know, two Olympic cycles of 111 00:05:30,440 --> 00:05:33,279 Speaker 1: concerns about Zico or concerns about the weather, or concerns 112 00:05:33,320 --> 00:05:36,360 Speaker 1: about Russia, this was the games that everybody was kind 113 00:05:36,360 --> 00:05:39,040 Speaker 1: of ramping up for from a commercial standpoint because they 114 00:05:39,040 --> 00:05:40,640 Speaker 1: felt like it was the one that that wasn't going 115 00:05:40,680 --> 00:05:43,360 Speaker 1: to have concerns like that. Let's talk about something happy 116 00:05:43,600 --> 00:05:47,440 Speaker 1: and thank goodness they are friends of the program, And 117 00:05:47,480 --> 00:05:51,720 Speaker 1: I'm very happy for Oliver Luck because the XFL Vince 118 00:05:51,800 --> 00:05:55,320 Speaker 1: McMahon's Pro Football League made its return to the spotlight 119 00:05:55,360 --> 00:05:59,320 Speaker 1: over the weekend and fellas it wasn't bad. It I 120 00:05:59,400 --> 00:06:03,719 Speaker 1: kind of like the gamest I watched the New York game, which, 121 00:06:03,760 --> 00:06:06,000 Speaker 1: by the way, that's the best New York team in 122 00:06:06,080 --> 00:06:11,919 Speaker 1: football going around. Stop don't take shots, but that's a 123 00:06:11,920 --> 00:06:14,479 Speaker 1: good product. Like what I was most impressed with, guys, 124 00:06:14,600 --> 00:06:17,400 Speaker 1: was the presentation on television. And you can say all 125 00:06:17,440 --> 00:06:20,560 Speaker 1: you want about tickets and I had about seventeen thousand 126 00:06:20,640 --> 00:06:23,960 Speaker 1: average in New York, and we all know the scale 127 00:06:23,960 --> 00:06:25,920 Speaker 1: of media is going to determine whether or not this 128 00:06:26,000 --> 00:06:28,440 Speaker 1: league succeeds. And it looks like they had about three 129 00:06:28,480 --> 00:06:31,400 Speaker 1: point three million viewers for the first game. And the 130 00:06:31,440 --> 00:06:34,600 Speaker 1: presentation is why you're having miked up coaches and players 131 00:06:34,640 --> 00:06:37,800 Speaker 1: answering questions right after plays, you have betting lines on screens. 132 00:06:38,320 --> 00:06:41,160 Speaker 1: This is the way people want their sports these days. 133 00:06:41,560 --> 00:06:45,400 Speaker 1: And if they can make a viable media play, and 134 00:06:45,480 --> 00:06:48,640 Speaker 1: they do have good partners ABC, ESPN, Fox, if they 135 00:06:48,680 --> 00:06:51,040 Speaker 1: can make these audiences stick around. It doesn't have to 136 00:06:51,080 --> 00:06:53,240 Speaker 1: be three point three million every week, but if they 137 00:06:53,279 --> 00:06:56,040 Speaker 1: can get a decent sized audience, then they have a 138 00:06:56,160 --> 00:06:58,480 Speaker 1: chance at long term success. So I agree, I agree 139 00:06:58,520 --> 00:07:00,599 Speaker 1: with a lot of that that interviews on on I 140 00:07:00,600 --> 00:07:02,440 Speaker 1: think Pat McAfee does a great job, but the interviews 141 00:07:02,440 --> 00:07:03,880 Speaker 1: in the middle of the game are are are great. 142 00:07:03,960 --> 00:07:07,359 Speaker 1: The micd Up situation room when there are reviews, I 143 00:07:07,400 --> 00:07:09,520 Speaker 1: think is something that the NFL should be doing next 144 00:07:09,520 --> 00:07:12,000 Speaker 1: season if they can. I think that's fantastic. Also, the 145 00:07:12,040 --> 00:07:14,040 Speaker 1: odds on the screen did not do much for him. 146 00:07:14,040 --> 00:07:18,520 Speaker 1: I mean, the they didn't change, they just showed that's it. 147 00:07:18,600 --> 00:07:20,360 Speaker 1: I mean to me, if you're going to do that, 148 00:07:20,400 --> 00:07:22,760 Speaker 1: you need to be showing, Oh, the the favorite, which 149 00:07:22,760 --> 00:07:24,880 Speaker 1: happened last night in the Dallas game. They were favored 150 00:07:24,880 --> 00:07:26,680 Speaker 1: by nine and a half points, they were losing, they 151 00:07:26,760 --> 00:07:29,120 Speaker 1: ended up losing the game, and the whole time minus 152 00:07:29,160 --> 00:07:30,680 Speaker 1: nine and a half is on the screen, and I 153 00:07:30,680 --> 00:07:32,880 Speaker 1: wish they would say, oh, you know, with that touchdown, 154 00:07:32,960 --> 00:07:35,040 Speaker 1: now suddenly St. Louis is the is the favorite to 155 00:07:35,080 --> 00:07:37,520 Speaker 1: win this game? Or so you want updated live betting 156 00:07:37,520 --> 00:07:39,640 Speaker 1: odds and everything's called Yeah. I think when you're in 157 00:07:39,720 --> 00:07:41,600 Speaker 1: the third quarter and the and the team that's favored 158 00:07:41,600 --> 00:07:44,000 Speaker 1: by ten points is losing and you just have them 159 00:07:44,040 --> 00:07:46,720 Speaker 1: up as favored by ten points, that seems kind of 160 00:07:46,720 --> 00:07:48,559 Speaker 1: pointless to me. In the end. I mean, when when Jeff. 161 00:07:48,560 --> 00:07:51,120 Speaker 1: When Jeff Pollock on our podcast, the president said last 162 00:07:51,120 --> 00:07:53,640 Speaker 1: week that they're embracing the spread, I was expecting a 163 00:07:53,680 --> 00:07:55,760 Speaker 1: little bit more on that end um. And then two 164 00:07:55,760 --> 00:07:58,280 Speaker 1: other things I'll say real quick. I think the the 165 00:07:58,280 --> 00:07:59,640 Speaker 1: fact that they don't have a union is going to 166 00:07:59,720 --> 00:08:01,440 Speaker 1: allow them to do a lot of these innovative things, 167 00:08:01,480 --> 00:08:04,480 Speaker 1: and I think you're seeing that. And then secondly, there 168 00:08:04,480 --> 00:08:06,920 Speaker 1: are subtle rule changes they've made that are going to 169 00:08:07,080 --> 00:08:10,680 Speaker 1: keep competitive balance really interesting that I think would drive 170 00:08:11,480 --> 00:08:14,560 Speaker 1: fans up the wall if this league it was ever 171 00:08:14,640 --> 00:08:16,880 Speaker 1: to take off and becomes super serious. Well, part of 172 00:08:16,880 --> 00:08:21,480 Speaker 1: the issue with that is because of the extra points system, 173 00:08:21,560 --> 00:08:24,040 Speaker 1: and for people not familiar whether you can score an 174 00:08:24,080 --> 00:08:27,880 Speaker 1: extra point from the two yard line, two from the five, 175 00:08:28,280 --> 00:08:30,560 Speaker 1: and three from the tin if I got it right, 176 00:08:31,280 --> 00:08:35,800 Speaker 1: What that does is it throws out you usual numbers 177 00:08:35,840 --> 00:08:38,480 Speaker 1: of three, six, and seven, which are you know you're 178 00:08:38,480 --> 00:08:42,280 Speaker 1: based when you're trying to handicap a game. Kind of 179 00:08:42,320 --> 00:08:44,720 Speaker 1: throws that out the window. Yeah, and couple that with 180 00:08:44,760 --> 00:08:47,559 Speaker 1: the way that the clock stops after plays and you 181 00:08:47,559 --> 00:08:51,400 Speaker 1: your team could be winning by nine points with the 182 00:08:51,440 --> 00:08:53,520 Speaker 1: ball and the other team has no time outs in 183 00:08:53,559 --> 00:08:55,360 Speaker 1: two minutes left and you can you can lose that 184 00:08:55,360 --> 00:08:58,080 Speaker 1: game and overtime. And that is something that that if 185 00:08:58,080 --> 00:09:00,520 Speaker 1: it happened at the NFL level, would would drive peop insane. 186 00:09:00,800 --> 00:09:02,920 Speaker 1: But it's gonna key. I think it's gonna keep fans 187 00:09:02,960 --> 00:09:06,080 Speaker 1: interested just because regardless of the score towards the end 188 00:09:06,080 --> 00:09:08,320 Speaker 1: of the game, the team that is losing is always 189 00:09:08,400 --> 00:09:10,599 Speaker 1: closer in it than you know what I compared it to. 190 00:09:11,080 --> 00:09:13,400 Speaker 1: This is gonna age me a little bit. But but 191 00:09:13,480 --> 00:09:16,000 Speaker 1: Mario Kart the video game. For folks out there, who 192 00:09:16,000 --> 00:09:18,960 Speaker 1: ever played Mario Kart and bar what is the ten 193 00:09:19,040 --> 00:09:21,800 Speaker 1: year old talking about the way that that game was 194 00:09:21,800 --> 00:09:24,560 Speaker 1: structured Mario Kart. If you played Mario Kart with someone 195 00:09:24,559 --> 00:09:27,240 Speaker 1: who was bad, the person who was bad was always 196 00:09:27,360 --> 00:09:29,200 Speaker 1: kind of in it, and you could easily lose to 197 00:09:29,200 --> 00:09:32,240 Speaker 1: that person because the game was a structured essentially so 198 00:09:32,320 --> 00:09:34,160 Speaker 1: that if you were playing poorly, you had a better 199 00:09:34,240 --> 00:09:36,160 Speaker 1: chance of moving forward. You know what, I like, I 200 00:09:36,320 --> 00:09:38,720 Speaker 1: know what he's talking about. I would play Jackson. I 201 00:09:38,760 --> 00:09:41,520 Speaker 1: was consistently ahead and the lapping Thank you very much. 202 00:09:41,559 --> 00:09:43,959 Speaker 1: I don't know what game you were playing. Oh I 203 00:09:44,000 --> 00:09:46,959 Speaker 1: love that. I'm gonna aige me a little bit. Mario Kart. 204 00:09:47,440 --> 00:09:50,000 Speaker 1: Mario Kart right, it wasn't Space Invaders, it wasn't sent 205 00:09:50,040 --> 00:09:52,920 Speaker 1: to pe Mario Kart. Back in my day, we're playing 206 00:09:53,040 --> 00:09:56,680 Speaker 1: shopping cart. I did feel that way about the XFL, 207 00:09:56,760 --> 00:09:59,560 Speaker 1: that that the team that is trailing is always more 208 00:09:59,600 --> 00:10:02,720 Speaker 1: in it than they are in other leagues, you know, 209 00:10:03,240 --> 00:10:05,160 Speaker 1: the NFL, and I think that that is great in 210 00:10:05,200 --> 00:10:07,600 Speaker 1: the beginning, but as this league matures, that may have 211 00:10:07,600 --> 00:10:11,160 Speaker 1: to change. Well, guys, I'll tell you this. After first 212 00:10:11,240 --> 00:10:14,880 Speaker 1: or second game, when it sort of seen the press 213 00:10:14,920 --> 00:10:16,839 Speaker 1: that was going on, the social that was going on, 214 00:10:17,160 --> 00:10:20,120 Speaker 1: I texted Jeffrey Pollock and I said, hey, congrats on 215 00:10:20,120 --> 00:10:25,479 Speaker 1: a successful launch. Something to build on. His response was yes, exactly, 216 00:10:25,800 --> 00:10:29,240 Speaker 1: So they have something. There's something here to build on. 217 00:10:29,480 --> 00:10:31,800 Speaker 1: Let's see where it goes. And let's not forget that 218 00:10:32,000 --> 00:10:35,240 Speaker 1: the Week one of the a F last year did 219 00:10:35,559 --> 00:10:38,360 Speaker 1: very good ratings and people were very impressed with the 220 00:10:38,400 --> 00:10:41,160 Speaker 1: on field product. And then you know, we we know 221 00:10:41,200 --> 00:10:43,000 Speaker 1: that league didn't see through its first season and then 222 00:10:43,000 --> 00:10:44,480 Speaker 1: they ran out of money. But we know this league 223 00:10:44,520 --> 00:10:46,520 Speaker 1: will not run out of money. Yes, at least not 224 00:10:46,600 --> 00:10:48,960 Speaker 1: in the first six weeks. Hopefully. Oh No is a 225 00:10:49,040 --> 00:10:52,880 Speaker 1: team named the Roughnecks, man. You gotta you gotta like that, man. 226 00:10:52,960 --> 00:10:55,760 Speaker 1: I you know the Houston Roughnecks. By the way, they won, 227 00:10:55,840 --> 00:10:58,040 Speaker 1: they beat the l A Wildcats. So I like that. 228 00:10:58,240 --> 00:11:01,880 Speaker 1: And this story and you're all over this. And this 229 00:11:01,920 --> 00:11:05,920 Speaker 1: involves the Mets. After Hedge Fund tight and Steve Cohen's 230 00:11:06,000 --> 00:11:09,640 Speaker 1: MLB record two point six billion dollar bid for the 231 00:11:09,679 --> 00:11:15,000 Speaker 1: Mets fell through, the team is back on sale again, Scott, 232 00:11:15,080 --> 00:11:17,600 Speaker 1: this is your story, man. Well, here's the important part. 233 00:11:17,679 --> 00:11:21,559 Speaker 1: Bar the deal with Steve Cohen had a precondition from 234 00:11:21,559 --> 00:11:26,000 Speaker 1: the Mets side. It was that Fred Willpon would remain 235 00:11:26,080 --> 00:11:28,720 Speaker 1: the managing partner for five years and his son Jeff 236 00:11:28,760 --> 00:11:32,040 Speaker 1: would remain the CEO of the team for five years. 237 00:11:32,080 --> 00:11:36,440 Speaker 1: And apparently Steve Cohen was okay with those terms. However, 238 00:11:36,559 --> 00:11:39,440 Speaker 1: late in the process it appears that Steve Cohen tried 239 00:11:39,440 --> 00:11:41,880 Speaker 1: to change some of those terms and it was unacceptable 240 00:11:41,880 --> 00:11:44,080 Speaker 1: to the Mets, and the deal fell apart. The important 241 00:11:44,120 --> 00:11:47,160 Speaker 1: part now is that, yes, the team is back on 242 00:11:47,200 --> 00:11:49,520 Speaker 1: the market beginning today, Alan and Company is taking this 243 00:11:49,600 --> 00:11:54,920 Speaker 1: far and wide. However, it is being presented to buyers 244 00:11:55,280 --> 00:12:01,600 Speaker 1: without preconditions. Again, without preconditions. That means that five year 245 00:12:01,679 --> 00:12:06,000 Speaker 1: path isn't necessarily a part of any deal. The Wilpons 246 00:12:06,200 --> 00:12:10,240 Speaker 1: seemingly are willing to sell the team and be done 247 00:12:10,320 --> 00:12:14,240 Speaker 1: with the team. That could, because of the immediacy, want 248 00:12:14,280 --> 00:12:16,959 Speaker 1: to attract a lot of wealthy folks who are interested 249 00:12:17,000 --> 00:12:20,000 Speaker 1: in New York sports team, but could also push that 250 00:12:20,080 --> 00:12:22,199 Speaker 1: price higher than two point six billion dollars. Yeah, I 251 00:12:22,440 --> 00:12:24,200 Speaker 1: was gonna ask you about the price. So the coin 252 00:12:24,280 --> 00:12:27,760 Speaker 1: deal would have valued the team at two point six billion, uh, 253 00:12:27,800 --> 00:12:29,400 Speaker 1: and that I think struck a lot of people as 254 00:12:29,480 --> 00:12:32,400 Speaker 1: as a fairly high number. Uh. And there was talk 255 00:12:32,480 --> 00:12:34,839 Speaker 1: about you know the what and I would love to 256 00:12:34,880 --> 00:12:37,120 Speaker 1: hear your thoughts here. How much does the fact that 257 00:12:37,320 --> 00:12:40,320 Speaker 1: you know that this coin deal fell apart? Does that 258 00:12:40,360 --> 00:12:43,000 Speaker 1: deter future potential buyers? Do they look at the Wilpons 259 00:12:43,040 --> 00:12:45,000 Speaker 1: and they say, look that you know, there's an evidence 260 00:12:45,000 --> 00:12:48,040 Speaker 1: here that these people, you know, are changing negotiation terms 261 00:12:48,200 --> 00:12:50,000 Speaker 1: or you know, for some reason they couldn't get this 262 00:12:50,040 --> 00:12:51,839 Speaker 1: across the line. I don't want to waste my time 263 00:12:52,240 --> 00:12:54,120 Speaker 1: looking at this. Or is there no kind of ill 264 00:12:54,120 --> 00:12:56,719 Speaker 1: effect of this thing falling apart for the Wilpons from 265 00:12:56,720 --> 00:13:00,120 Speaker 1: a price standpoint? Before you how did you mentioned Alan 266 00:13:00,000 --> 00:13:03,200 Speaker 1: the company Allen and Company. That's the investment bank retained 267 00:13:03,240 --> 00:13:05,240 Speaker 1: by the Mets. Just in case people don't know, I'm sorry, 268 00:13:05,240 --> 00:13:08,040 Speaker 1: go ahead, that's right. And Steve Greenberg has sold many 269 00:13:08,080 --> 00:13:11,160 Speaker 1: many sports franchises, so he's been this is not his 270 00:13:11,240 --> 00:13:16,280 Speaker 1: first rodeo. Um. But Evan, to your point, what do 271 00:13:16,320 --> 00:13:18,800 Speaker 1: we hear all the time from bankers as to what 272 00:13:18,880 --> 00:13:23,840 Speaker 1: really supports price and attracts these bidders. It's scarcity, right, Well, yeah, 273 00:13:23,880 --> 00:13:26,720 Speaker 1: this is scarcity. And what we've got here is the 274 00:13:26,800 --> 00:13:33,080 Speaker 1: ultimate trophy asset, a New York major sports franchise. These 275 00:13:33,120 --> 00:13:36,280 Speaker 1: do not pop up if you want to own a 276 00:13:36,320 --> 00:13:39,920 Speaker 1: professional sports team in the number one media market. They 277 00:13:39,960 --> 00:13:44,000 Speaker 1: do not come around very often. And the Nets just traded. Unlikely, 278 00:13:44,080 --> 00:13:47,839 Speaker 1: the Yankees will trade, Unlikely, the Knicks will trade. This 279 00:13:48,080 --> 00:13:51,520 Speaker 1: is your shot to get in, which is why my 280 00:13:51,640 --> 00:13:57,560 Speaker 1: guess is on a global scale you will have multiple bidders, which, 281 00:13:57,600 --> 00:14:00,440 Speaker 1: of course and in itself more bidders, higher price. Very 282 00:14:00,480 --> 00:14:03,800 Speaker 1: simple formula. But let's also note, as in the previous 283 00:14:03,840 --> 00:14:06,599 Speaker 1: sale to Steve Cohen, s n Y, the piece of 284 00:14:06,760 --> 00:14:09,720 Speaker 1: s n Y not for sale. That's the cash cow 285 00:14:10,120 --> 00:14:12,400 Speaker 1: the Mets lose. I understand anywhere from fifty to a 286 00:14:12,480 --> 00:14:15,480 Speaker 1: hundred million dollars a year. So you're gonna need somebody 287 00:14:15,559 --> 00:14:19,720 Speaker 1: who has the deep pockets to withstand those losses as 288 00:14:19,720 --> 00:14:22,000 Speaker 1: they try and turn things around a profitability. And you 289 00:14:22,040 --> 00:14:24,280 Speaker 1: have to sustain those losses without the media. I mean, 290 00:14:24,280 --> 00:14:26,000 Speaker 1: we we talk a lot on the show about how, 291 00:14:26,280 --> 00:14:29,000 Speaker 1: you know, owning the stadium, the network, and the team 292 00:14:29,160 --> 00:14:32,040 Speaker 1: is the best way to maximize profits when you only 293 00:14:32,040 --> 00:14:34,040 Speaker 1: own two of those things. Are one of those things 294 00:14:34,080 --> 00:14:36,800 Speaker 1: and not the media network? How else do you? I mean, 295 00:14:37,000 --> 00:14:39,400 Speaker 1: is it just from a ticket sales and and and 296 00:14:39,400 --> 00:14:42,520 Speaker 1: sponsorship standpoint? How are you? How are you maximizing that? Yeah? 297 00:14:42,520 --> 00:14:44,040 Speaker 1: That's it. I mean, you know the ten poles, Evan. 298 00:14:44,040 --> 00:14:45,760 Speaker 1: You've got to try to leverage it, whether and whether 299 00:14:45,800 --> 00:14:48,000 Speaker 1: it's a payroll, it's money and money out, and it's 300 00:14:48,000 --> 00:14:50,400 Speaker 1: strictly on the team basis because s n Y is 301 00:14:50,440 --> 00:14:51,960 Speaker 1: not part of it. City field not part of it. 302 00:14:52,080 --> 00:14:53,920 Speaker 1: So you've got to figure out what else can I do? 303 00:14:54,240 --> 00:14:57,080 Speaker 1: What have we seen? There's there is a play around 304 00:14:57,120 --> 00:15:00,760 Speaker 1: city Field for real estate, right, we see what's going 305 00:15:00,800 --> 00:15:05,280 Speaker 1: on around there there ISA and media, those local rights 306 00:15:05,280 --> 00:15:08,200 Speaker 1: are tied up. Unlike the Dodgers, who bought a team 307 00:15:08,240 --> 00:15:10,040 Speaker 1: and paid a record price at the time, but then 308 00:15:10,080 --> 00:15:13,320 Speaker 1: immediately flipped the local rights with Time Warner. There is 309 00:15:13,360 --> 00:15:15,440 Speaker 1: no such play for the Mets now. They're locked up 310 00:15:15,440 --> 00:15:18,880 Speaker 1: with s n Y for another decade. So if you're 311 00:15:18,880 --> 00:15:21,040 Speaker 1: going to do this, you have to fight either accept 312 00:15:21,080 --> 00:15:24,720 Speaker 1: losses until you can change something with the team or 313 00:15:24,840 --> 00:15:27,400 Speaker 1: figure out another temple as a way to drive revenue. 314 00:15:28,000 --> 00:15:30,640 Speaker 1: A challenge more than two point six billion dollars for 315 00:15:30,720 --> 00:15:33,760 Speaker 1: just the Mets and not the stadium or the piece 316 00:15:33,800 --> 00:15:35,960 Speaker 1: of the artist, and feels like a lot of money, 317 00:15:36,000 --> 00:15:38,360 Speaker 1: but you're right. Scarcity is driving the prices of these 318 00:15:38,400 --> 00:15:41,240 Speaker 1: things up. And you know, there's only two teams in 319 00:15:41,280 --> 00:15:44,040 Speaker 1: the in the world's big in the country's biggest media market, 320 00:15:44,080 --> 00:15:46,160 Speaker 1: and this is the one that's for sale, so you know, 321 00:15:46,160 --> 00:15:49,120 Speaker 1: we'll see This is the Bloomberg Business of Sports podcast 322 00:15:49,160 --> 00:15:51,440 Speaker 1: on Michael bar You can follow me on Twitter at 323 00:15:51,520 --> 00:15:54,840 Speaker 1: Big Bar Sports. I'm Scott. You can follow me on 324 00:15:54,880 --> 00:15:57,560 Speaker 1: Twitter at and I'm Evan Novi Williams. You can follow 325 00:15:57,560 --> 00:16:00,360 Speaker 1: me at no v Underscore Williams, where he each and 326 00:16:00,440 --> 00:16:03,440 Speaker 1: every Monday, Wednesday and Thursday exploring the world of money 327 00:16:03,440 --> 00:16:05,120 Speaker 1: in sports and you can join us again. At the 328 00:16:05,160 --> 00:16:08,000 Speaker 1: end of the week. We have NASCAR President Steve Phelps 329 00:16:08,280 --> 00:16:11,320 Speaker 1: joining us to talk all things NASCAR and Daytona five. 330 00:16:11,840 --> 00:16:14,400 Speaker 1: You can hear him squealing right now. Michael Barre very excited. 331 00:16:14,480 --> 00:16:16,960 Speaker 1: I'm excited. You're listening to Bloomberg Business of Sports on 332 00:16:16,960 --> 00:16:19,600 Speaker 1: Bloomberg Radio around the world and online wherever you get 333 00:16:19,640 --> 00:16:20,520 Speaker 1: your podcasts.