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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the business

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Speaker 1: of sports.

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Speaker 2: Our aim is always to leverage the global appeal of football.

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Speaker 2: Having representation in college sports is even more important than crow.

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Speaker 2: Ten percent of Americans now claimed sock up to be

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Speaker 2: the favorite sport.

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Speaker 1: We estimate the UTH sports audience has three trillion dollars

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Speaker 1: in spending power. The nature of baseball is it is worldwide,

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Speaker 1: it is exploring.

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Speaker 3: I'm very happy for the WNBA and how the NBA

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Speaker 3: has embraced them. Sports books are not going anywhere, and

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Speaker 3: sports betting is only growing.

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Speaker 4: We have a super team running this league, and this

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Speaker 4: league is here and it's here to stay.

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Speaker 1: Bloomberg Business of Sports from Bloomberg Radio.

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Speaker 3: This is the Bloomberg Business of Sports that we explore

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Speaker 3: the big money issues in the l of sports.

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Speaker 4: I'm Michael Barr, I'm gonna Prodoo Maglion, and.

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Speaker 5: I'm Randa Williams.

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Speaker 3: Coming up today, we are going to be talking about

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Speaker 3: Formula one with Racing Bulls Formula one team CEO Peter Bayer.

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Speaker 4: We are also going to speaking to one of the

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Speaker 4: co founders of Athletes Unlimited to discuss there recently wrapped

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Speaker 4: up second season of the Athletes Unlimited Softball League.

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Speaker 3: But before all that, Randall is actually joining us from

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Speaker 3: the Bloomberg DC Bureau, where he got a chance to

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Speaker 3: speak with Washington Commander's president Mark Klaus in a Bloomberg

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Speaker 3: Newsmaker's fireside conversation.

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Speaker 5: Yep, Mark and I chatted all things Commanders, including their

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Speaker 5: new stadium, which is estimated to be worth three point

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Speaker 5: eight billion dollars. If completed and they make that mark,

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Speaker 5: it'll be the second most expensive stadium ever built. But

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Speaker 5: of course they have four seasons to play or three

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Speaker 5: or four seasons left to play at Northwestfield. We talked,

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Speaker 5: of course about the team name. We talked the business

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Speaker 5: of the NFL's international aspirations and how Roger Goodell hopes

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Speaker 5: to build out a sixteen game international package. So it

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Speaker 5: was a wide ranging conversation. Mark was great.

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Speaker 4: Let's take a listen in to Andall's conversation with Mark Klaus,

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Speaker 4: President of the Washington Commanders.

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Speaker 5: Mark, thank you for doing this.

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Speaker 3: It's been to be here.

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Speaker 5: It's been about eighteen months since you took the job.

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Speaker 5: A little over that. We met right at the NFL

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Speaker 5: League meeting last year. Remember well, somewhere on the West coast.

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Speaker 5: But for those of you who don't know Mark, Mark Is,

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Speaker 5: before he was in the football business, had a very prevalent.

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Speaker 3: Past in the food industry.

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Speaker 5: Right, So when the commander's role team president opened up,

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Speaker 5: what peaud your interest about it? That seems like a

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Speaker 5: dramatic shift from food team president.

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Speaker 6: Well, other than being you know, probably every twelve or

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Speaker 6: thirteen year old boys dream to work on a sports team.

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Speaker 6: For me personally, there were a variety of things. And

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Speaker 6: first of all, I should say loved, you know, feel

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Speaker 6: very lucky to have been able to spend the time

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Speaker 6: I did with the Campbell's Company, and that journey was

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Speaker 6: an extraordinary guest. And you know, I was lucky enough

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Speaker 6: that I had a great successor there ready to go

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Speaker 6: and thinking about the next chapter. My life and so

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Speaker 6: many things in my life have revolved around sports, and

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Speaker 6: my you know, perspective was in this next chapter. I

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Speaker 6: wanted to try to go do something different, but I

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Speaker 6: wanted to be able to bring some of the things

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Speaker 6: that I had learned or that experienced and turning around

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Speaker 6: businesses or transforming brands. And you know, I couldn't have

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Speaker 6: found a better owner in Josh Harris and what Josh

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Speaker 6: has done consistently, what his vision was for the Commanders.

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Speaker 6: I don't think there's any mystery. We were a team

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Speaker 6: in transition on a lot of different levels, and that

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Speaker 6: opportunity to come into sports but also bring some things

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Speaker 6: to the table that are relevant from my past, I

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Speaker 6: thought was just this perfect mix. And so I went

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Speaker 6: through a very rigorous interview process, as Josh does most

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Speaker 6: things and his business life, but I think the combination

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Speaker 6: of those areas as well as the evolving world of sports,

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Speaker 6: and I'm sure we'll talk about that more made for

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Speaker 6: just really a match made in heaven and so be happier.

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Speaker 5: Based on your previous history. What is the biggest difference

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Speaker 5: that you find between corporate culture and team culture.

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Speaker 6: Well, it's you know, I tell people a lot of

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Speaker 6: times it's been kind of like fifty to fifty, right,

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Speaker 6: Fifty percent of this are things that I know very well.

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Speaker 6: Like you know, the business is kind of the business.

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Speaker 6: It's not a particularly complicated business model. Doesn't mean it's simple,

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Speaker 6: but it's not particularly complicated. A lot of the organizational

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Speaker 6: demands of what you're trying to do to set clarity

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Speaker 6: of direction and build culture very very consistent, but there

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Speaker 6: are some things that are quite different. I affectionately say

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Speaker 6: to people sometimes that there were many.

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Speaker 7: People that like soup.

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Speaker 6: These guys love football, right, and it's a different level

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Speaker 6: of passion, and that makes for this this kind of

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Speaker 6: added I think level of responsibility, I would say, or this,

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Speaker 6: you know, at least for me personally, feeling like, you know,

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Speaker 6: the things that we do, we've really got to get

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Speaker 6: done right. And you know, as it relates to culture,

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Speaker 6: I honestly think there's more like than there is difference.

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Speaker 6: You know, this was an organization that had gone through

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Speaker 6: some tough times, and I think in many ways we

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Speaker 6: started kind of at the beginning again re establishing what

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Speaker 6: the purpose and the values of the organization was going

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Speaker 6: to be. Would never have come if I didn't have

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Speaker 6: that alignment with Josh, who's got a very clear view

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Speaker 6: of how we want to do things and it's exactly

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Speaker 6: the way that that you know, I believe.

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Speaker 7: We should be doing it.

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Speaker 6: And so establishing that for an organization, and you know,

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Speaker 6: you evaluate the talent, do I've got the right piece?

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Speaker 6: People in the right shares a lot of really you know,

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Speaker 6: credit to Jason who had the job before me certainly

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Speaker 6: brought in some really talented folks, and so for me,

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Speaker 6: it felt very familiar. Most of my career on the

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Speaker 6: business side has been spent in businesses that were in turnarounds,

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Speaker 6: and you know, a lot of that playbook we applied here.

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Speaker 6: So probably from a cultural standpoint, I'd say more similarities

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Speaker 6: than differences.

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Speaker 5: Interesting a couple of years ago, when the Commanders, Jane

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Speaker 5: Daniels had been drafted and the Commanders are riding high,

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Speaker 5: I wrote this story that said the Commanders are the

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Speaker 5: most exciting team in the NFL, and I talked to

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Speaker 5: Josh about it, and I talked to some season ticket holders,

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Speaker 5: I talked to some fans, and one of the fans

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Speaker 5: that I spoke to said, you know, the previous ownership

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Speaker 5: was the previous ownership, but it feels like Josh owns

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Speaker 5: the team on behalf of the fans, and it feels

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Speaker 5: like he's one of us. Can you speak to that

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Speaker 5: side of him, maybe the passion that Josh has about

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Speaker 5: this team.

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Speaker 6: Yeah, I think you know, there's no mystery in how

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Speaker 6: Josh and the broader ownership group has approached the team.

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Speaker 6: I think they've been very very clear that this is

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Speaker 6: more than just about a business right. Obviously, putting a

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Speaker 6: product on the field. The hiring of Adam Peters and

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Speaker 6: Dan Quinn were great first steps in the right direction. Obviously,

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Speaker 6: drafting Jaden and the commitment to investment and ensuring that

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Speaker 6: winning and championship football is part of what we're bringing

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Speaker 6: to our fans is obviously paramount. But I would also

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Speaker 6: say that the things that also make fans proud of

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Speaker 6: their franchise is also very important to Josh. So you know,

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Speaker 6: how we reflect on the heritage of the team, how

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Speaker 6: we treat our legends, how we engage and interact with

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Speaker 6: the community, all of that has been elevated as a

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Speaker 6: very significant priority in the agenda. And you know, to

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Speaker 6: be perfectly honest, we had some work to do there

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Speaker 6: rebuilding trust in those relationships in some cases were very important.

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Speaker 6: But from you know, day one, the clarity that Josh

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Speaker 6: has had on this, and you know, I think it's

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Speaker 6: born from you know, who he is, but it's also

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Speaker 6: born from the fact that he grew up here. This

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Speaker 6: in many ways is his team. Like he grew up

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Speaker 6: as a fan. He you know, treasured moments where he

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Speaker 6: was going to the stadium and to the game, and

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Speaker 6: I think that responsibility shapes a lot of his thinking.

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Speaker 6: But I will tell you in watching him more broadly

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Speaker 6: across the business world, he he brings very similar values

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Speaker 6: to those businesses as well. And that's something that I

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Speaker 6: really admire and you know, as someone who's working for him,

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Speaker 6: and that ecosystem is really encouraging.

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Speaker 5: So let's stay on business and sponsorship, I think is

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Speaker 5: something that is really important to NFL teams in terms

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Speaker 5: of the revenue that they're able to bring in. There's

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Speaker 5: no secret that before for Josh Harris's time that commanders,

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Speaker 5: the value of the commanders had decreased over time due

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Speaker 5: to a multitude of situations. But since then, I believe

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Speaker 5: there was a report last year that came out from

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Speaker 5: the Athletic and ESPN that said the commander's sponsorship revenue

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Speaker 5: was in the top third of the league. What has

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Speaker 5: your conversations or what have your conversations been like with

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Speaker 5: these sponsors who are now once again excited and being

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Speaker 5: welcomed back into the stadium.

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Speaker 6: Well, not that we're competitive or anything, but we are

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Speaker 6: actually in the top ten.

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Speaker 5: Now, excuse me, give.

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Speaker 6: A long way from where we were. No, we're I

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Speaker 6: think you know again. I approached this through a couple

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Speaker 6: different lenses. The first is recognizing that building trust with

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Speaker 6: our partners was really important, and so spending time better understanding,

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Speaker 6: you know, what their concerns were, what their opportunities were,

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Speaker 6: was a big part of our outreach. There's no question

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Speaker 6: that improved performance on the football field helps.

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Speaker 7: Those things are.

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Speaker 6: Certainly part of the you know, kind of the algorithm,

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Speaker 6: but we want to also be able to control the

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Speaker 6: variables that we can control. And so, you know, part

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Speaker 6: of what's helped me a little bit as I sat

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Speaker 6: on the other side of that table for many, many

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Speaker 6: years in the food business as a client, and so

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Speaker 6: what we've tried to do is adapt our model on

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Speaker 6: sponsorship from what used to be.

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Speaker 7: And it drove me crazy.

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Speaker 6: Are these very pedestrian conversations on how many signs do I.

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Speaker 7: Get my name on or No.

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Speaker 6: What we want to understand is what a business's goals

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Speaker 6: and challenges are. We want to establish a strategy where

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Speaker 6: we're able to address those those goals or those KPIs,

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Speaker 6: and then we want to hold ourselves accountable. So I'll

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Speaker 6: sit down with our top sponsors and you know, we'll

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Speaker 6: reflect on the past year. What were the goals we

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Speaker 6: agreed upon? Did we deliver upon that?

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Speaker 7: Yes? Great?

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Speaker 6: Or know what did we need to do differently to adjust?

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Speaker 6: And so what we're trying to do is differentiate ourselves.

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Speaker 6: At the same time, we're recovering from a period where

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Speaker 6: we weren't performing at the levels that we want. And

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Speaker 6: you know, I fully anticipate being in the geography we're in,

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Speaker 6: the team we have and the vision that we've got

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Speaker 6: going forward that you know, being in the top ten

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Speaker 6: is a great you know, measuring stick. But you know,

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Speaker 6: we we want to we want to chase the that

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Speaker 6: number one. Those those guys down in Dallas, we want

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Speaker 6: to go after them, and uh, they've set a great

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Speaker 6: bar for us. But uh, but I think we have

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Speaker 6: the ability to compete in almost every aspect of the

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Speaker 6: business with uh, with the best in class teams.

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Speaker 5: What area of the business do you think has the

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Speaker 5: most room to grow based on your first eighteen months

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Speaker 5: of the job.

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Speaker 6: Yeah, I mean there's no question that you know, one

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Speaker 6: of the things that that great teams have is this

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Speaker 6: loyal season ticket member fan base, right and you have

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Speaker 6: to earn that, like you don't you don't just get

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Speaker 6: that like you've got to that's a combination of what

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Speaker 6: you're doing on the football field, but also the experience

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Speaker 6: for our fans when they come. And so when I

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Speaker 6: look at where we started from relative to other teams,

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Speaker 6: we were well behind. And so a lot of my

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Speaker 6: energy has been on trying to rebuild that season ticket

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Speaker 6: base because my feeling is, you know, those are our

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Speaker 6: most committed fans. Those are the folks that are investing

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Speaker 6: the most, you know, hard earned money on the experience,

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Speaker 6: and that's why we're doing You see a lot of

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Speaker 6: our marketing and what we're doing geared toward them.

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Speaker 5: That's a part of my conversation with Mark Klaus, president

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Speaker 5: of the Washington Commanders. You can hear more of it

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Speaker 5: now on the Bloomberg Business of Sports podcast. Get that

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Speaker 5: on Apple, Spotify, the Bloomberg Business app or wherever you

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Speaker 5: get your podcasts.

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Speaker 4: Coming up, we switched gears to talk about a true

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Speaker 4: summer sport, softball and how has the potential to be

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Speaker 4: the next big women's sport.

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Speaker 3: That is straight ahead on the Bloomberg Business of sportscour

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Speaker 3: But that's it Belmo magleone and Randall Williams. I'm Michael Barr.

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Speaker 3: You are listening to the Bloomberg Business of Sports Bloomberg

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Speaker 3: Radio around the world.

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Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio.

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Speaker 3: This is the Bloomberg Business of Sports. We explore the

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Speaker 3: big money issues in the world of sports.

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Speaker 4: I'm Michael Barr, I'm minn Si, Prodomo Maglione and Randa Williams.

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Speaker 3: He is on assignment in Washington. Now, let's dig into

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Speaker 3: a rising sport growing extremely popular at the college level

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Speaker 3: with a new path at the professional level. Softball.

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Speaker 4: This year, the College World Series was the most watch ever,

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Speaker 4: with Game two of the championship bringing in two point

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Speaker 4: two million viewers.

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Speaker 3: To talk more about how softball is growing at the

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Speaker 3: collegiate and professional level, we are joined by John Patrick Hoff,

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Speaker 3: CEO and co founder of Athletes Unlimited. John, Welcome to

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Speaker 3: the Bloomberg Business of Sports. I am always excited when

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Speaker 3: you talk about women's sports because it is growing like

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Speaker 3: a week.

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Speaker 2: Well, great to be here with you, and thanks so

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Speaker 2: much for making the time and it is Indeed, it's

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Speaker 2: still very early days and there's a lot to talk

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Speaker 2: about and a lot of opportunities still left to pursue.

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Speaker 2: And we couldn't be more excited at Athletes Unlimited for

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Speaker 2: what's happening in softball and beyond.

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Speaker 4: Yeah, I mean, we'll get into the whole thing, and

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Speaker 4: I do want to take a step back quickly. I'm

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Speaker 4: go want to talk about softball because you just wrapped

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Speaker 4: up the second season of Athletes in a softball league.

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Speaker 4: But taking a step back for people who don't know

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Speaker 4: what Athletes Unlimited is and where you started, I mean,

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Speaker 4: you started investing in women's sports before the industry really

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Speaker 4: took you know, took Heed and back in twenty twenty.

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Speaker 4: You saw something there and you started Athletes Ulimited, but

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Speaker 4: then you invested more into softball. So can you tell

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Speaker 4: us just about all of that and how the softball

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Speaker 4: league came to be as well?

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Speaker 6: Absolutely so.

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Speaker 2: We launched Athletes Unlimited on March third of twenty twenty,

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Speaker 2: great time, starting before COVID, great timing, and we kicked

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Speaker 2: off really with a huge belief in the opportunity around

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Speaker 2: around pro women's sports. We launched in softball and then

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Speaker 2: we added leagues over the coming years and other sports,

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Speaker 2: and in twenty twenty four we were then operating in

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Speaker 2: portfolio leagues. We really saw the sort of sport of

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Speaker 2: softball as the place where there was the biggest untapped opportunity.

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Speaker 2: We decided to double down in a very big way,

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Speaker 2: and we announced the launch of the Athletes Unlimited Softball League,

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Speaker 2: which ended up playing its first season last year twenty

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Speaker 2: twenty five, and we've just completed our second regular season

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Speaker 2: last weekend, and honestly, the growth has been meteoric. The

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Speaker 2: stakes in women's sports have grown, the required capital has grown,

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Speaker 2: the expectations of fans, sponsors, athletes have grown. And that's

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Speaker 2: all great, and you know, we're excited to have been

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Speaker 2: one of the first and earliest to kind of see

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Speaker 2: the opportunity. And this journey, I think has prepared us

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Speaker 2: really well for this moment. We've learned a lot, we've

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Speaker 2: made a lot of you know, we've done a lot.

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Speaker 3: Of great things.

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Speaker 2: We've also made some mistakes and you always learn from

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Speaker 2: those mistakes as well as from those good things, and

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Speaker 2: so that's prepared us incredibly well for this softball season

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Speaker 2: which just concluded, and really to record numbers on all fronts.

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Speaker 2: And ultimately it's about driving and building a huge business

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Speaker 2: and we couldn't be more excited for where we sit.

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Speaker 3: We're talking with John Patrick off CEO and co founder

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Speaker 3: of Athletes Unlimited, and I want to get your reaction.

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Speaker 3: We were talking about this off mic. But billionaire Larry Tannenbaum,

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Speaker 3: he owns the Toronto Temple. He's focusing on women's basketball

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Speaker 3: after selling his steak in Maple Leaf Sports and Entertainment

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Speaker 3: for the equivalent of about three point one billion dollars.

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Speaker 3: And a lot of it is because he is seeing

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Speaker 3: growth in revenue in the WNBA with the average franchise

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Speaker 3: and this is cool to say, is now worth four

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Speaker 3: hundred and twenty seven million dollars. John, you know, back

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Speaker 3: in the day, you wouldn't even see fifty. Absolutely.

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Speaker 2: I mean, back in twenty twenty, w NBA teams were

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Speaker 2: selling for ten million dollars. In WSL teams were selling

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Speaker 2: for two. It's been it's been dramatic. Franchise values have grown,

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Speaker 2: I think truthfully catching up with where you know, a

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Speaker 2: lot of the data pointed in that direction even back then.

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Speaker 2: I mean you could see big audiences tuning in when

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Speaker 2: when these games were on broadcast networks, when they were

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Speaker 2: getting the type of promotion and investment, and it's a

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Speaker 2: virtuous cycle and you know investors. Larry is a is

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Speaker 2: a usually ahead of the game. You know, he certainly

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Speaker 2: was with MLS and other sports investments he made. And

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Speaker 2: I think obviously you know him and many other investors

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Speaker 2: are also coming in now, and I think that just

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Speaker 2: shows that it's still very early days. I think in

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Speaker 2: the sport of softball, we have a unique situation with

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Speaker 2: athletes unlimited. We are a single entity. We own and

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Speaker 2: operate all of the teams. So there's six teams in

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Speaker 2: our league and we and Major League Baseball, who's our

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Speaker 2: co investor along with Mark Attanasio, Reed Nolan Ryan. We

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Speaker 2: have a great group and we are really set up

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Speaker 2: not just as owner of teams, but also the owners

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Speaker 2: of the league, and that gives us a lot of

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Speaker 2: opportunity and a lot of control over the future of

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Speaker 2: the sport. And we look at the w NBA and

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Speaker 2: the NWSL and you know, we think we're you know,

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Speaker 2: the next you know, great women's sports league that are

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Speaker 2: out there and great to be in great company with them.

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Speaker 4: I think that's such a great point and to what

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Speaker 4: Michael was saying kind of just about the growth of

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Speaker 4: the w n b A and seeing these franchise valuations

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Speaker 4: at the way that they are. But years ago, the

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Speaker 4: w NBA have this problem that I feel like is

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Speaker 4: kind of going on with softball right now, just in

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Speaker 4: the way that it's so popular at the collegiate level.

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Speaker 4: Right we used to see women's basketball so popular at

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Speaker 4: the collegiate level, but they weren't able to translate it

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Speaker 4: to the w n B A. So right now, women's

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Speaker 4: college softball is one of the fastest growing, you know,

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Speaker 4: college sports. It's so well watched. This year's College Championship

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Speaker 4: got two million viewers in game two, so it's continuously growing.

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Speaker 4: And that's obviously what you must have saw when you

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Speaker 4: decided to double down, like you said, and make the

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Speaker 4: athletes unlimited softball league. So tell me how you get

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Speaker 4: from the college viewership and translate that over to the

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Speaker 4: professional game, because I think that's that's that WNBA model,

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Speaker 4: right following in those sorts of footsteps.

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Speaker 2: Yeah, absolutely, So. Well, we have just concluded our second

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Speaker 2: regular season, and just to give you a sense of

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Speaker 2: kind of where we are, you know, our viewership on

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Speaker 2: ESPN increased over one hundred and eighty three percent over

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Speaker 2: last year.

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Speaker 3: So our final.

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Speaker 2: Game this season, we played our Championship. We had best

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Speaker 2: two out of three set. Our first game of that

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Speaker 2: series was on ABC, first time you had ever had

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Speaker 2: a pro softball game on broadcast television. We did seven

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Speaker 2: one hundred and thirty two thousand viewers. Game two then

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Speaker 2: was on ESPN, and we are just really crushing it

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Speaker 2: out all fronts. But you're absolutely right, a huge part

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Speaker 2: of the strategy is leaning into and working from the

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Speaker 2: momentum that exists in college softball. So our season started

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Speaker 2: June ninth, just a few days after the College World

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Speaker 2: Series finished. We had over fifty games on ESPN this

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Speaker 2: season and they are incredible partners. ESPN's an incredible partner.

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Speaker 2: Major League Baseball has been an incredible partner, and then

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Speaker 2: with college softball momentum as well. One of our most

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Speaker 2: successful promotions was our Golden Ticket Moments, where we actually

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Speaker 2: handed out golden tickets to players after a regular season

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Speaker 2: game and surprised them that they were going to be

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Speaker 2: drafted into the league and it went viral and these

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Speaker 2: amazing moments. So we really lean into the college audience,

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Speaker 2: but we also really have worked very closely with MLB

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Speaker 2: to work across all the MLB platforms and then ESPN,

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Speaker 2: who's been probably the biggest supporter of this board at

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Speaker 2: the college and pro level, and they've just been awesome

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Speaker 2: partners to us.

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Speaker 4: That you know number that you said, one hundred and

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Speaker 4: eighty three percent over you know, the year one for

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Speaker 4: you guys, what do you think that it was that

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Speaker 4: you've seen in that growth? Was it just the visibility?

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Speaker 4: Was it just awareness that now it's the second season,

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Speaker 4: people know about it a little bit more or what

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Speaker 4: did you do do you think to garner that type

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Speaker 4: of growth?

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Speaker 7: Yeah?

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Speaker 2: So, I mean I do think, you know, the momentum

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Speaker 2: builds and it does snowball, and that's that's certainly a

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Speaker 2: reality I think that we had, you know with twenty

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Speaker 2: twenty five, you know, we kicked off, we launched the

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Speaker 2: season in June. What really we had then, you know,

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Speaker 2: after we concluded season one was an entire off season

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Speaker 2: where we really didn't pick our foot off the pedal.

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Speaker 2: We had our college draft, we really leaned in with MLB,

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Speaker 2: We had a presence at spring training across the country,

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Speaker 2: and then we have also moved towards now a city

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Speaker 2: based format, so we went from four teams last year

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Speaker 2: in twenty twenty five. That were playing basically a touring model.

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Speaker 2: This year, we went to six teams and they were

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Speaker 2: all situated in home home markets and we played in

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Speaker 2: you know, we have six teams, one in Portland, one

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Speaker 2: in Austin, one in Salt Lake, Oklahoma City, Chicago, and

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Speaker 2: Rally Durham. And we saw the kind of feedback from

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Speaker 2: local fans really just off the chart, and and that

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Speaker 2: I think is another big push and as we look

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Speaker 2: ahead to the future, we clearly are thinking about, you know,

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Speaker 2: even further expansion. Softball really is a national sport. It

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Speaker 2: plays really well in certain geographies in the country, but

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Speaker 2: it has fans across the board. Portland's probably the biggest surprise.

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Speaker 2: People don't typically think of the Pacific Northwest for softball,

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Speaker 2: and we had sellouts across the board. Up importantly, had

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Speaker 2: twenty three sellouts across the country for for our games,

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Speaker 2: and we saw fans come out everywhere. So this is

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Speaker 2: a national sport with a lot of momentum. And you know,

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Speaker 2: I think for for any league, you know, you really

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Speaker 2: have to pull every lever here, and for us having

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Speaker 2: partnerships with MLB, having partnerships with ESPN, ridging college softball,

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Speaker 2: it all kind of feeds together to create that virtuous cycle.

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Speaker 3: We're talking with John Patrick, cooff, CEO and co founder

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Speaker 3: of Athletes Unlimited, and this is the just blunt cut

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Speaker 3: to the chase question. With the big growth now in

439
00:23:18,040 --> 00:23:21,520
Speaker 3: women's sports, what in the hell happened? Why it has

440
00:23:21,640 --> 00:23:24,119
Speaker 3: taken so long for that to take place?

441
00:23:27,000 --> 00:23:30,920
Speaker 2: You know, it's a reality. I feel like in business

442
00:23:31,240 --> 00:23:34,200
Speaker 2: across the board, where there is evidence, often out there

443
00:23:34,280 --> 00:23:37,960
Speaker 2: there's data, and honestly, it takes a few entrepreneurs. It

444
00:23:37,960 --> 00:23:40,240
Speaker 2: takes a few people to be ahead of the curve

445
00:23:40,320 --> 00:23:42,280
Speaker 2: and pay attention to it. I mean, I do want

446
00:23:42,320 --> 00:23:44,680
Speaker 2: to say that this has been a long time coming, right,

447
00:23:44,720 --> 00:23:48,119
Speaker 2: I mean Title nine is now over fifty years old.

448
00:23:48,960 --> 00:23:50,960
Speaker 2: You've got the w that's been out this now for

449
00:23:51,480 --> 00:23:55,000
Speaker 2: thirty years. I think we're the beneficiaries of all that

450
00:23:55,400 --> 00:23:57,240
Speaker 2: of that work that's been done. But I think live

451
00:23:57,280 --> 00:24:01,080
Speaker 2: sports is growing, This category is growing generally, and societal

452
00:24:01,240 --> 00:24:06,560
Speaker 2: kind of views of women in opportunity have all changed.

453
00:24:06,600 --> 00:24:09,000
Speaker 2: And then finally, I think from a business standpoint, the

454
00:24:09,080 --> 00:24:11,240
Speaker 2: rise of social media. I mean, what what is one

455
00:24:11,240 --> 00:24:13,960
Speaker 2: thing that does a huge tailwind for women's sports is

456
00:24:14,000 --> 00:24:19,359
Speaker 2: that we all know how important individual athletes are you know,

457
00:24:19,440 --> 00:24:22,439
Speaker 2: them connecting in their fan bases. And these women athletes

458
00:24:22,480 --> 00:24:26,119
Speaker 2: are absolutely incredible storytellers. They absolutely are incredible both on

459
00:24:26,200 --> 00:24:28,919
Speaker 2: the field and off the field, and that plays really

460
00:24:28,960 --> 00:24:32,240
Speaker 2: well and as a big part of the success for

461
00:24:32,240 --> 00:24:36,840
Speaker 2: for for women's sports generally. I say today, like if

462
00:24:36,880 --> 00:24:39,399
Speaker 2: you're a sports fan today, you know, if you go

463
00:24:39,480 --> 00:24:41,119
Speaker 2: back five years ago and you know you had to

464
00:24:41,119 --> 00:24:42,919
Speaker 2: be able to be fluent about the NBA or the

465
00:24:43,000 --> 00:24:46,119
Speaker 2: NFL or you know, Major League Baseball. Today you have

466
00:24:46,200 --> 00:24:48,720
Speaker 2: to be able to talk about and know about, you know,

467
00:24:48,800 --> 00:24:51,200
Speaker 2: your local women's sports team or to know what's going

468
00:24:51,240 --> 00:24:53,480
Speaker 2: on in women's sports. That's just now part of the culture,

469
00:24:53,560 --> 00:24:56,720
Speaker 2: and I think that bodes incredibly well for for what

470
00:24:56,800 --> 00:25:00,440
Speaker 2: the opportunity is going forward. You know, we we really

471
00:25:00,480 --> 00:25:03,600
Speaker 2: believe in that, and we think softball is incredibly well

472
00:25:03,640 --> 00:25:06,760
Speaker 2: positioned that it's a sport everybody loves, It's incredible to

473
00:25:06,800 --> 00:25:09,920
Speaker 2: watch on television. I've yet to run into somebody who,

474
00:25:10,280 --> 00:25:12,479
Speaker 2: you know, comes across one of our games and watches

475
00:25:12,480 --> 00:25:16,119
Speaker 2: it and doesn't isn't entertained and doesn't find it fascinating

476
00:25:16,160 --> 00:25:18,840
Speaker 2: and loved watching the players. So we got a great

477
00:25:18,880 --> 00:25:21,400
Speaker 2: product you know, and there's just a lot of continual

478
00:25:21,400 --> 00:25:23,960
Speaker 2: work to do to commercialize it and build that ecosystem,

479
00:25:24,040 --> 00:25:25,560
Speaker 2: and that's what we spend our day doing.

480
00:25:26,000 --> 00:25:29,600
Speaker 4: That was CEO and co founder of Athletes Unlimited, John Patchrikov.

481
00:25:30,040 --> 00:25:32,520
Speaker 4: Coming up next, we are talking F one Racing with

482
00:25:32,680 --> 00:25:35,040
Speaker 4: Racing Bulls CEO Peter Bayer.

483
00:25:35,560 --> 00:25:38,159
Speaker 3: That is straight ahead on the Bloomberg Business of Sports

484
00:25:38,200 --> 00:25:42,200
Speaker 3: for Vanessa Perdomo, Magleone and Randall Williams. I'm Michael Barr.

485
00:25:42,280 --> 00:25:45,280
Speaker 3: You are listening to the Bloomberg Business of Sports Bloomberg

486
00:25:45,400 --> 00:25:46,560
Speaker 3: Radio around the world.

487
00:25:51,119 --> 00:25:55,119
Speaker 1: This is Bloomberg Business of Sports from Bloomberg Radio.

488
00:25:56,600 --> 00:25:59,320
Speaker 3: Thank you for joining us on the Bloomberg Business of Sports,

489
00:25:59,320 --> 00:26:01,840
Speaker 3: where we exclude were the big money issues in the

490
00:26:01,840 --> 00:26:02,520
Speaker 3: world of sports.

491
00:26:02,560 --> 00:26:05,200
Speaker 4: I'm Michael Barr, I'm Vanessa Pronomo, Maglione.

492
00:26:04,920 --> 00:26:08,440
Speaker 3: Randon Williams. On assignment in Washington. A few weeks ago,

493
00:26:08,640 --> 00:26:11,240
Speaker 3: we were able to catch up with the CEO of

494
00:26:11,560 --> 00:26:14,960
Speaker 3: Racing Bulls Formula One team, Peter Bear, before the World

495
00:26:15,000 --> 00:26:17,520
Speaker 3: Cup took over our whole lives.

496
00:26:18,000 --> 00:26:20,480
Speaker 4: Peter gave us a good mid season breakdown how the

497
00:26:20,480 --> 00:26:22,639
Speaker 4: new regulations have been going for the team and what

498
00:26:22,800 --> 00:26:25,760
Speaker 4: goes into making all those adjustments and what they're looking

499
00:26:25,800 --> 00:26:27,360
Speaker 4: to achieve in the second half of the year.

500
00:26:27,560 --> 00:26:30,520
Speaker 3: Now, let's take a listen to our conversation with Peter Baer,

501
00:26:30,600 --> 00:26:34,960
Speaker 3: CEO of Racing Bolls Formula one team. I want to

502
00:26:35,000 --> 00:26:38,240
Speaker 3: talk to you about the fan base that continues to

503
00:26:38,320 --> 00:26:43,280
Speaker 3: grow in F one. Explain why this is happening. I'm glad,

504
00:26:43,320 --> 00:26:46,840
Speaker 3: by the way, because I'm a motorhead. Explain to the

505
00:26:46,880 --> 00:26:50,280
Speaker 3: audience the growth that we've been seeing for a little

506
00:26:50,320 --> 00:26:51,360
Speaker 3: bit now in F one.

507
00:26:52,800 --> 00:26:55,160
Speaker 8: Yeah, well, thank you for having me. First of all,

508
00:26:55,240 --> 00:26:59,359
Speaker 8: it's a great pleasure. Yeah, Formula one. Look, Formula one

509
00:26:59,359 --> 00:27:03,920
Speaker 8: has gone through an incredible transformation. It basically reinvented itself

510
00:27:04,000 --> 00:27:08,600
Speaker 8: over the last years. And you know, there's many different factors.

511
00:27:08,720 --> 00:27:09,119
Speaker 7: I guess.

512
00:27:09,920 --> 00:27:12,920
Speaker 8: You know, we have to go back to twenty seventeen

513
00:27:12,760 --> 00:27:17,120
Speaker 8: when Liberty took over and they took some very very

514
00:27:17,160 --> 00:27:19,320
Speaker 8: important steps to you know, first of all, make the

515
00:27:19,359 --> 00:27:21,520
Speaker 8: sport healthier but at the same time make it a

516
00:27:21,520 --> 00:27:22,720
Speaker 8: lot more accessible.

517
00:27:23,840 --> 00:27:24,800
Speaker 7: What do I mean by that?

518
00:27:25,320 --> 00:27:28,159
Speaker 8: They you know, they've been working on concepts with us

519
00:27:28,320 --> 00:27:30,760
Speaker 8: back then when I still was at the FIA, like

520
00:27:30,840 --> 00:27:34,879
Speaker 8: the cost cap. They've been introducing a franchise system for

521
00:27:34,960 --> 00:27:37,840
Speaker 8: the teams, you know, which allowed the team values to grow,

522
00:27:37,880 --> 00:27:41,840
Speaker 8: and obviously that also allows the team owners and management

523
00:27:42,240 --> 00:27:43,840
Speaker 8: to investigate into the sport.

524
00:27:44,960 --> 00:27:46,760
Speaker 7: They've been they've been amazing.

525
00:27:47,280 --> 00:27:51,959
Speaker 8: When COVID hits us and you know, it's it's twenty twenty,

526
00:27:52,440 --> 00:27:56,000
Speaker 8: Formula one was the first global live sport that would

527
00:27:56,040 --> 00:27:58,240
Speaker 8: come back on TV and so people were sitting at

528
00:27:58,240 --> 00:28:02,600
Speaker 8: home and everybody was discover ring Formula One. And the

529
00:28:02,680 --> 00:28:06,840
Speaker 8: amazing opportunity for us back then was actually to combine

530
00:28:06,880 --> 00:28:09,639
Speaker 8: that with the success of Netflix, which was which was

531
00:28:09,680 --> 00:28:12,359
Speaker 8: taken off back in those days as well, so people

532
00:28:12,400 --> 00:28:15,919
Speaker 8: could actually you know, get all the behind the scenes

533
00:28:15,960 --> 00:28:19,000
Speaker 8: and get to know the people, get to know the drivers,

534
00:28:19,040 --> 00:28:22,040
Speaker 8: get to know the people behind the scenes, and you know,

535
00:28:22,600 --> 00:28:25,840
Speaker 8: learned a bit about the you know, the pirates we are.

536
00:28:25,960 --> 00:28:27,919
Speaker 8: And so I think people fell in love with it

537
00:28:28,000 --> 00:28:29,600
Speaker 8: and at the same time they had it life on

538
00:28:29,640 --> 00:28:32,280
Speaker 8: television and from that moment on, it literally took off

539
00:28:32,400 --> 00:28:37,120
Speaker 8: and you know, we kept developing ever since. Obviously, Liberty

540
00:28:37,160 --> 00:28:39,920
Speaker 8: again going back to them, they have opened Formula One

541
00:28:39,960 --> 00:28:43,080
Speaker 8: to social media, which was something that you know, before

542
00:28:43,840 --> 00:28:46,400
Speaker 8: their ownership was not allowed you wouldn't be allowed to

543
00:28:46,440 --> 00:28:48,640
Speaker 8: take a photo in the paddock, you wouldn't be allowed

544
00:28:49,480 --> 00:28:52,160
Speaker 8: to film in the paddock, and that has obviously changed.

545
00:28:53,200 --> 00:28:57,400
Speaker 8: So it is suddenly becoming this accessible sport that has

546
00:28:57,440 --> 00:29:02,600
Speaker 8: also so many so much more you know, accessibility, it

547
00:29:02,640 --> 00:29:03,840
Speaker 8: has more dimensions.

548
00:29:03,880 --> 00:29:05,400
Speaker 7: It's not only the sport.

549
00:29:05,200 --> 00:29:09,160
Speaker 8: It's you know, it's a celebrity culture around it has developed.

550
00:29:09,280 --> 00:29:14,360
Speaker 8: Entertainment plays a huge role, and we've opened a new

551
00:29:14,440 --> 00:29:17,360
Speaker 8: market literally with the United States of America, which we've

552
00:29:17,440 --> 00:29:22,480
Speaker 8: you know, never managed to really enter at the right scale.

553
00:29:22,640 --> 00:29:25,480
Speaker 8: And you know, we had back then Austin and I

554
00:29:25,560 --> 00:29:28,800
Speaker 8: remember back in twenty seventeen when we were organizing the

555
00:29:28,880 --> 00:29:33,080
Speaker 8: races in Austin, we actually had to argue with Liberty

556
00:29:33,120 --> 00:29:36,240
Speaker 8: and others about the date because they people in Texas

557
00:29:36,280 --> 00:29:38,680
Speaker 8: would say, look, guys, there's a big basketball game of

558
00:29:38,720 --> 00:29:41,400
Speaker 8: that weekend, and then there's a NASCAR event the week

559
00:29:41,440 --> 00:29:45,160
Speaker 8: before and an Indy Car race the week after, and

560
00:29:46,480 --> 00:29:48,800
Speaker 8: we and we were struggling, honestly to find a date.

561
00:29:48,880 --> 00:29:52,360
Speaker 8: Whilst now Austin is one of the biggest races on

562
00:29:52,360 --> 00:29:55,360
Speaker 8: the calendar, half a million people attending the weekend, and

563
00:29:55,400 --> 00:29:58,920
Speaker 8: we've added Miami that within a short amount of time

564
00:29:58,960 --> 00:30:06,600
Speaker 8: became one of the hottest metaphoric racist on the calendar.

565
00:30:07,080 --> 00:30:09,920
Speaker 8: And Las Vegas, which is you know, which is offering

566
00:30:09,960 --> 00:30:14,600
Speaker 8: a whole different level of entertainment, fun and and and

567
00:30:14,800 --> 00:30:16,320
Speaker 8: you know program to everyone.

568
00:30:17,160 --> 00:30:18,760
Speaker 7: So yeah, Okay, I was a long answer.

569
00:30:18,840 --> 00:30:22,800
Speaker 8: Sorry, but it has the sport has reinvented itself, and

570
00:30:22,880 --> 00:30:24,880
Speaker 8: I wanted to give you a bit of depth really

571
00:30:24,920 --> 00:30:26,680
Speaker 8: in in you know, into what happened.

572
00:30:27,240 --> 00:30:29,680
Speaker 4: Yeah, it's great to get that context for all of

573
00:30:29,880 --> 00:30:33,400
Speaker 4: F one, but also for Racing Ball specifically. I mean,

574
00:30:33,440 --> 00:30:36,240
Speaker 4: you guys have grown your fan base year over year,

575
00:30:36,360 --> 00:30:39,000
Speaker 4: even thirty four percent, I believe it is. Can you

576
00:30:39,040 --> 00:30:42,080
Speaker 4: tell us a little bit about how you've done that specifically?

577
00:30:42,120 --> 00:30:43,720
Speaker 4: And I know you mentioned it a little bit about

578
00:30:43,760 --> 00:30:46,520
Speaker 4: unlocking social media for the first time, and was that

579
00:30:46,560 --> 00:30:48,400
Speaker 4: a big part of it? You know, what do your

580
00:30:48,400 --> 00:30:50,920
Speaker 4: new fans look like and how are you reaching them?

581
00:30:52,120 --> 00:30:52,360
Speaker 7: Yeah?

582
00:30:52,400 --> 00:30:55,080
Speaker 8: For us, you know, obviously, the new fans joining the

583
00:30:55,080 --> 00:30:59,440
Speaker 8: sport have presented a unique opportunity. We you know that

584
00:30:59,480 --> 00:31:01,959
Speaker 8: we be onto Red Bull, Red Bull runs two teams

585
00:31:02,000 --> 00:31:02,760
Speaker 8: red Bull Racing.

586
00:31:03,360 --> 00:31:04,160
Speaker 7: Those guys are.

587
00:31:04,000 --> 00:31:11,120
Speaker 8: Fighting for the world championship with Max Verstappen, Isaac Hadjar, we.

588
00:31:10,520 --> 00:31:12,760
Speaker 7: Wants the decision. You know, there was a bit of

589
00:31:12,800 --> 00:31:13,800
Speaker 7: a debate.

590
00:31:13,440 --> 00:31:17,880
Speaker 8: Around this team when unfortunately our founder, mister Mantischetz passed

591
00:31:17,920 --> 00:31:22,959
Speaker 8: away in twenty twenty two, whether this team you know,

592
00:31:23,040 --> 00:31:25,640
Speaker 8: should be sold, whether actually and you know, sort of

593
00:31:26,040 --> 00:31:29,000
Speaker 8: really trying to understand what is the purpose of this team.

594
00:31:29,160 --> 00:31:34,840
Speaker 8: And quickly the shareholders then decided that definitely they want

595
00:31:34,840 --> 00:31:36,880
Speaker 8: to keep the second team, but they want to give

596
00:31:36,880 --> 00:31:40,080
Speaker 8: it its own very strong identity. They want to make

597
00:31:40,080 --> 00:31:44,680
Speaker 8: sure that we keep continuing developing young talent. They want

598
00:31:44,680 --> 00:31:46,960
Speaker 8: to make sure and I'm coming to your question, and

599
00:31:46,960 --> 00:31:49,440
Speaker 8: they wanted to make sure that we address a different

600
00:31:49,520 --> 00:31:53,360
Speaker 8: target audience than Red Bull Racing, and that meant that.

601
00:31:53,320 --> 00:31:55,560
Speaker 7: We were moving towards all the.

602
00:31:55,600 --> 00:31:58,520
Speaker 8: Young fans joining the sport, which and that's what happened.

603
00:31:58,520 --> 00:32:02,000
Speaker 8: Through liberties change of the sport, there was suddenly, you know,

604
00:32:02,040 --> 00:32:05,000
Speaker 8: there was social media was a big thing. We have

605
00:32:05,120 --> 00:32:09,520
Speaker 8: seen the fan base rejuvenating itself literally and and we

606
00:32:09,520 --> 00:32:13,600
Speaker 8: we understood very quickly that that offers a unique opportunity.

607
00:32:14,560 --> 00:32:17,200
Speaker 8: Why because then I said, we develop young talent. Two

608
00:32:17,280 --> 00:32:21,560
Speaker 8: young drivers today are with Lindblad and Liam loss and

609
00:32:21,600 --> 00:32:24,479
Speaker 8: are with eighteen Liams twenty four and they allow us

610
00:32:24,480 --> 00:32:27,920
Speaker 8: to authentically connect with the young fan base at the

611
00:32:27,960 --> 00:32:31,080
Speaker 8: same time we have and I know I can see

612
00:32:31,120 --> 00:32:33,160
Speaker 8: that because it's black and white proven by now. We

613
00:32:33,200 --> 00:32:36,520
Speaker 8: have the best social media team in the paddock. We

614
00:32:36,720 --> 00:32:41,880
Speaker 8: had latest figures from Formula One where all Formula One

615
00:32:41,880 --> 00:32:46,000
Speaker 8: fans globally, when asked they would consider sixty percent would

616
00:32:46,040 --> 00:32:50,080
Speaker 8: consider our content excellent. And to give you an idea,

617
00:32:50,160 --> 00:32:52,920
Speaker 8: other teams like Mercedes probably come in at thirty four

618
00:32:53,000 --> 00:32:56,480
Speaker 8: to thirty five and other the other teams are even

619
00:32:56,520 --> 00:33:00,080
Speaker 8: below that. So so we've we've developed a very you know,

620
00:33:00,280 --> 00:33:04,240
Speaker 8: unique way of addressing the fan base and we see

621
00:33:04,240 --> 00:33:06,400
Speaker 8: as you know, as you said, we see that it's

622
00:33:06,400 --> 00:33:09,240
Speaker 8: paying out. We had We've been last year from from

623
00:33:09,480 --> 00:33:12,840
Speaker 8: twenty five to twenty six, the team with the biggest

624
00:33:12,840 --> 00:33:16,400
Speaker 8: growth in our fan base. We've added seventy eight million

625
00:33:16,440 --> 00:33:21,479
Speaker 8: fans in one year and we keep growing and we

626
00:33:21,560 --> 00:33:23,840
Speaker 8: keep you know, we keep engaging with our fans and

627
00:33:24,120 --> 00:33:27,120
Speaker 8: that really makes it makes it, you know, honestly, I

628
00:33:27,120 --> 00:33:30,000
Speaker 8: think is a unique proposition in the paddock. We obviously

629
00:33:30,080 --> 00:33:30,840
Speaker 8: therefore all.

630
00:33:30,960 --> 00:33:33,120
Speaker 7: Now speaking about the success of these campaigns.

631
00:33:33,160 --> 00:33:36,160
Speaker 8: We also have the youngest fan base in Formula one

632
00:33:36,200 --> 00:33:39,680
Speaker 8: and we are the team with a real gender balance

633
00:33:39,720 --> 00:33:42,320
Speaker 8: in our fan base. We're almost running fifty to fifty

634
00:33:42,680 --> 00:33:45,320
Speaker 8: male and female fans in our team.

635
00:33:45,720 --> 00:33:50,640
Speaker 3: We're talking with Peter Bear, the CEO Visa Cash app

636
00:33:50,720 --> 00:33:54,280
Speaker 3: Racing Bulls Formula one team, and I want to go

637
00:33:54,360 --> 00:33:59,880
Speaker 3: back to the popularity exploding with F one. I got

638
00:33:59,920 --> 00:34:04,080
Speaker 3: to talk about former Liberty Media president Greg mfay because

639
00:34:04,080 --> 00:34:07,480
Speaker 3: he was instrumental in raising F one's profile. Now he

640
00:34:07,680 --> 00:34:13,280
Speaker 3: is starting a whole brand new a horse racing league.

641
00:34:13,320 --> 00:34:15,520
Speaker 3: I want to see how that goes. But anyway, can

642
00:34:15,560 --> 00:34:18,520
Speaker 3: you talk about Greg mffay's impact on F one.

643
00:34:20,360 --> 00:34:24,239
Speaker 8: Yes, Look, Greg, you know, was a visionary who came

644
00:34:24,280 --> 00:34:28,200
Speaker 8: into the sport and he opened our eyes in you know,

645
00:34:28,280 --> 00:34:31,080
Speaker 8: what is actually possible with the sport, how.

646
00:34:30,960 --> 00:34:32,120
Speaker 7: You can transform a sport.

647
00:34:32,200 --> 00:34:37,040
Speaker 8: I'll tell you an inside story of how Greg approached this,

648
00:34:37,200 --> 00:34:39,080
Speaker 8: you know, he and and also I have to mention

649
00:34:39,239 --> 00:34:42,640
Speaker 8: Chase Carrey, who was running the show on a day

650
00:34:42,680 --> 00:34:45,600
Speaker 8: to day basis. They have opened our eyes into you know,

651
00:34:45,640 --> 00:34:50,160
Speaker 8: how global businesses, how global sport promotion actually works, and

652
00:34:50,680 --> 00:34:54,560
Speaker 8: what we're missing And my favorite example is when they

653
00:34:54,560 --> 00:34:58,920
Speaker 8: came and visited the teams in Bahrain before the season started.

654
00:34:59,120 --> 00:35:01,560
Speaker 7: This must have been twenty eighteen in.

655
00:35:02,160 --> 00:35:08,239
Speaker 8: March, and they presented a concept around the company called Netflix.

656
00:35:08,880 --> 00:35:11,040
Speaker 7: Now in that room, nobody.

657
00:35:10,680 --> 00:35:16,840
Speaker 8: Has ever heard of Netflix, and Jason and Greg were like, look, guys,

658
00:35:16,920 --> 00:35:20,640
Speaker 8: will will we have something unique? These guys want to come,

659
00:35:21,560 --> 00:35:24,400
Speaker 8: they want to invest money into telling the story.

660
00:35:24,480 --> 00:35:27,000
Speaker 7: They want to they want to try and you know, explain.

661
00:35:26,800 --> 00:35:29,480
Speaker 8: The sport to people, because no, it's too complex, it's

662
00:35:29,480 --> 00:35:32,040
Speaker 8: too European. At the same time, we have to do

663
00:35:32,080 --> 00:35:35,200
Speaker 8: something about that, and these guys will help us. Two

664
00:35:35,239 --> 00:35:38,359
Speaker 8: big teams then back then Ferrari and Mercedes I can

665
00:35:38,480 --> 00:35:43,520
Speaker 8: name them today, I guess after a couple of years

666
00:35:43,600 --> 00:35:46,440
Speaker 8: down the river they said, and they were asking you

667
00:35:46,440 --> 00:35:50,120
Speaker 8: about how much money are they paying us and and

668
00:35:50,160 --> 00:35:53,040
Speaker 8: Greg said, look that they're not paying anything to the teams.

669
00:35:53,080 --> 00:35:55,840
Speaker 8: They will just you know, invest into the production and

670
00:35:55,880 --> 00:35:58,239
Speaker 8: then we'll take it from there. And that is the

671
00:35:58,320 --> 00:36:01,160
Speaker 8: reason why if you remember where cities in Ferrari have

672
00:36:01,239 --> 00:36:04,120
Speaker 8: not been part of that very first Netflix season, because

673
00:36:04,160 --> 00:36:05,600
Speaker 8: they said, like, why why.

674
00:36:05,440 --> 00:36:06,160
Speaker 7: Would we do that?

675
00:36:06,680 --> 00:36:09,279
Speaker 8: And that's for me that you know that this is

676
00:36:09,360 --> 00:36:12,040
Speaker 8: you know, where they have taught the teams how to

677
00:36:12,080 --> 00:36:15,080
Speaker 8: actually open themselves up, how to how to live with

678
00:36:15,239 --> 00:36:18,000
Speaker 8: you know, in this new world of of you know,

679
00:36:18,120 --> 00:36:22,319
Speaker 8: accepting cameras, microphones all day on yourself, cameras around you,

680
00:36:23,040 --> 00:36:25,799
Speaker 8: allowing social media to grow at the pace that we

681
00:36:25,880 --> 00:36:26,440
Speaker 8: have seen it.

682
00:36:26,480 --> 00:36:29,880
Speaker 7: And and yeah, so so I mean and Greg and.

683
00:36:31,440 --> 00:36:34,839
Speaker 8: They, you know, Chase, they moved on with with establishing

684
00:36:34,880 --> 00:36:39,239
Speaker 8: the cost cap, which was, you know, a crucial instrument

685
00:36:39,480 --> 00:36:42,480
Speaker 8: to make sure that the teams remain healthy because you know,

686
00:36:42,520 --> 00:36:45,400
Speaker 8: it was a bit of time an era in Formula

687
00:36:45,440 --> 00:36:50,040
Speaker 8: one where you could outspend your competitors and and they said,

688
00:36:50,080 --> 00:36:52,600
Speaker 8: you know, and and again Formula one teams wouldn't believe them.

689
00:36:52,680 --> 00:36:55,000
Speaker 8: They said, look, this has been tried many times, and

690
00:36:55,040 --> 00:36:57,960
Speaker 8: you know, everybody was explaining us that a cost cap,

691
00:36:58,080 --> 00:36:59,560
Speaker 8: you know, is something that we should.

692
00:36:59,239 --> 00:36:59,680
Speaker 7: Try and do.

693
00:37:00,920 --> 00:37:03,880
Speaker 8: And then I remember Chase saying in that case, saying, guys,

694
00:37:03,960 --> 00:37:07,520
Speaker 8: you know, you know you're all engineers. Engineering is very

695
00:37:08,400 --> 00:37:10,920
Speaker 8: very precise business. You know, an engine is either owner

696
00:37:10,960 --> 00:37:13,880
Speaker 8: of it's a zero one business. And the same is

697
00:37:13,920 --> 00:37:18,080
Speaker 8: accounting to numbers. In today's world, if you spend money,

698
00:37:18,480 --> 00:37:20,799
Speaker 8: you have to account for it. And that's actually that

699
00:37:20,920 --> 00:37:23,319
Speaker 8: was the breakthrough moment where teams will be like, yeah, okay,

700
00:37:23,360 --> 00:37:26,759
Speaker 8: well let's give it a try. And that's that's how

701
00:37:26,760 --> 00:37:30,359
Speaker 8: we started developing the cost cap, which has led, you know,

702
00:37:30,440 --> 00:37:34,480
Speaker 8: to this incredible increase of team's equity value, which I'm

703
00:37:34,480 --> 00:37:36,600
Speaker 8: sure you've heard of. You know, you could you could

704
00:37:36,600 --> 00:37:39,040
Speaker 8: buy a team in twenty eighteen, twenty nineteen maybe for

705
00:37:39,160 --> 00:37:43,000
Speaker 8: one hundred or hundred and twenty million dollars. Today even

706
00:37:43,200 --> 00:37:47,160
Speaker 8: the smaller and midfield teams run around perhaps between two

707
00:37:47,280 --> 00:37:51,879
Speaker 8: and three billion dollars in market evaluations.

708
00:37:52,440 --> 00:37:54,960
Speaker 4: That was CEO of Raising Balls of Formula One team,

709
00:37:54,960 --> 00:37:57,040
Speaker 4: Peter Bayer and what happened to the time.

710
00:37:57,120 --> 00:37:59,640
Speaker 3: That's it for today. Thanks for joining us student again

711
00:37:59,680 --> 00:38:02,600
Speaker 3: next week for the latest on the stories moving big

712
00:38:02,640 --> 00:38:04,799
Speaker 3: old money in the world of sports, and.

713
00:38:04,760 --> 00:38:07,800
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714
00:38:07,840 --> 00:38:10,000
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715
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716
00:38:13,120 --> 00:38:14,520
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717
00:38:14,640 --> 00:38:18,560
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718
00:38:18,640 --> 00:38:19,920
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719
00:38:20,360 --> 00:38:23,320
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720
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