WEBVTT - Derek Jeter and Chris Riccobono Talks Athletic Apparel Collaboration

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>All right, let me throw out one metric. I guess

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<v Speaker 2>I kind of got to do this. The global sportswear

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<v Speaker 2>market size valued at nearly four hundred and thirteen billion

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<v Speaker 2>dollars in twenty twenty two, estimated to reach nearly seven

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<v Speaker 2>hundred forty nine billion by twenty thirty one. And listen,

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<v Speaker 2>there's a lot of players in it and looking to

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<v Speaker 2>take a share of it. Is a partnership. Our next

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<v Speaker 2>two guests, both with brands that are very well known

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<v Speaker 2>now with a combined brand known as Greatness Wins.

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<v Speaker 3>So let's get to the interview with more joining us

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<v Speaker 3>here in the studio. The founder of Vuntucket, who came

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<v Speaker 3>up with the idea for his casual shirts while working

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<v Speaker 3>at GE Healthcare. Chris Ricobono back with us, Also with

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<v Speaker 3>US Hall of Fame shortstop and five time World Series

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<v Speaker 3>champion with the New York Yankees. Also an e commerce

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<v Speaker 3>investor to Derek Jeter, both here in the Bloomberg BusinessWeek studio. Okay, guys,

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<v Speaker 3>first up, we want to know how you guys got together.

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<v Speaker 3>How did this come together? Who called who? Who had

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<v Speaker 3>the idea for who to get involved. How did it

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<v Speaker 3>come out?

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<v Speaker 1>That's a good question, and you start, we'll see what

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<v Speaker 1>version comes out.

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<v Speaker 4>I was going to say Derek reached out to me,

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<v Speaker 4>but that's not how it worked. So I over the pandemic.

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<v Speaker 4>I was looking to solve another problem in the fashion industry,

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<v Speaker 4>and I thought about athletic apparel and it didn't exist

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<v Speaker 4>for me. Something that had a great fit but also

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<v Speaker 4>had performance first in mind. So I came up with

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<v Speaker 4>this concept in this idea, but now I wanted a

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<v Speaker 4>few athletes behind me. And at the time, I think

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<v Speaker 4>Derek might have still had a contract with Nike or

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<v Speaker 4>it was winding down, and I didn't think that I

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<v Speaker 4>could get to him or that he'd be interested. But

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<v Speaker 4>after a year of bothering him and his agents, he

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<v Speaker 4>actually called me and said, Chris, I'm just not that

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<v Speaker 4>interested and excited in this. But I said, he can't

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<v Speaker 4>get off say he can't get off the phone, Derek,

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<v Speaker 4>how can I get you excited? So we talked for

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<v Speaker 4>a while after that, and we kind of came together

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<v Speaker 4>with both of our visions. You know, I'm apparel guy.

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<v Speaker 4>That's the way I think about it. Derek's was a

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<v Speaker 4>successful entrepreneur but also very successful, as you know, a

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<v Speaker 4>Nike guy, So I knew that he had a lot

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<v Speaker 4>of insight that I didn't have, and he shared it

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<v Speaker 4>with me, and we launched a brand about a year

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<v Speaker 4>and a half ago and we're having great success.

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<v Speaker 2>Okay, you weren't excited and then you became excited. How

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<v Speaker 2>that happened? How did you make that turn?

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<v Speaker 1>Well? I think you know, first and foremost getting to

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<v Speaker 1>know Chris, we talked about the idea. I've had relationships

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<v Speaker 1>with athletic brands throughout my career and great relationships and

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<v Speaker 1>I still do today. And you know, when I was

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<v Speaker 1>first speaking to Chris, I was like, well, first of all,

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<v Speaker 1>you know, this is a crowded space. It's not as

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<v Speaker 1>easy to attack this space, and it's going to take

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<v Speaker 1>some time and it's going to take a lot of energy.

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<v Speaker 1>And I wouldn't say I wasn't excited, but I when

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<v Speaker 1>I do something, I'm all in and if I'm not

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<v Speaker 1>all in, I'm just not going to do it. And

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<v Speaker 1>at that point when we were having the discussion, I said,

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<v Speaker 1>you know, I don't think now is the time. And

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<v Speaker 1>then we actually got together. We had a chance to

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<v Speaker 1>look and feel and touch the product, and that started

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<v Speaker 1>getting me very very excited about it. So I guess

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<v Speaker 1>that's the best way to put it in our short

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<v Speaker 1>period of time.

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<v Speaker 3>You do, though, Derek, probably get a lot of investment pitches,

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<v Speaker 3>not just in the apparel world, but yeah, no question,

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<v Speaker 3>from lots of different entrepreneurs who want your involvement. What

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<v Speaker 3>was it specifically about this one with Chris with Untucket

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<v Speaker 3>that really caught your eye?

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<v Speaker 1>I think it's you got to get to know the

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<v Speaker 1>people any business that you're in, the same thing, when

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<v Speaker 1>you're on a team on the field, you have to

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<v Speaker 1>have the right people on the side. Yeah, exactly. I

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<v Speaker 1>was going to say that, but you didn't give me

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<v Speaker 1>enough time to say that. And you know, I just

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<v Speaker 1>found Chris to be very very passionate about it. You

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<v Speaker 1>can't fake passion. You either are you aren't. And you know,

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<v Speaker 1>even when I told him that I wasn't interested, he

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<v Speaker 1>kept calling and we kept having the conversation, and I

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<v Speaker 1>knew when you're if you're going to be successful, you

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<v Speaker 1>need those types of people on your side.

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<v Speaker 2>I always think about that. I remember talking to a

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<v Speaker 2>top m and a banker and he's like, the only

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<v Speaker 2>way you get deals done. Is this CEOs have to

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<v Speaker 2>like each other and that's how you get things come

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<v Speaker 2>to the table. Would you say no to a great

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<v Speaker 2>deal because you didn't like.

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<v Speaker 1>Somebody, Oh, without a doubt.

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<v Speaker 4>I mean you end up working a lot. It's funny

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<v Speaker 4>when Derek said that he wanted to be more involved

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<v Speaker 4>and he when he goes all in, I was thinking

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<v Speaker 4>he was just doing that as an equity, play some

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<v Speaker 4>more equity. Yeah, that you actually want it to be.

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<v Speaker 4>And Derek's liked. I mean, he wants to talk about everything,

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<v Speaker 4>every decision, and you want somebody who's I want something

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<v Speaker 4>that guess because I don't know everything and I definitely

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<v Speaker 4>don't know everything in the athletic apparel space. So it's

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<v Speaker 4>been a.

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<v Speaker 1>This is recorded, right, I'm gonna play We're gonna play

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<v Speaker 1>that back.

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<v Speaker 2>You can do that, you can love it, you can

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<v Speaker 2>loop it.

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<v Speaker 1>Yeah, exactly, Well the same thing for you.

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<v Speaker 2>I mean, Derek, when you get involved in something, how

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<v Speaker 2>you know? We asked about what made this interesting, but

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<v Speaker 2>in general, how involved do you want to be? I

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<v Speaker 2>mean how much do you have to love the brand

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<v Speaker 2>that you hook up with?

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<v Speaker 1>You have to be involved? I mean, otherwise you're just

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<v Speaker 1>given your money and you're hoping someone else runs with

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<v Speaker 1>it and makes you more. But when you're passionate about something,

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<v Speaker 1>when you put in the time, you put in the effort.

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<v Speaker 1>I think the best thing to say about us is

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<v Speaker 1>we disagree probably more than we agree, and I think

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<v Speaker 1>that's a good thing. I mean, you don't want people

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<v Speaker 1>that always think the same as you, Otherwise you're never

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<v Speaker 1>going to make improvements, You're never going to make progress.

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<v Speaker 2>Is it hard to say no to?

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<v Speaker 3>Derek?

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<v Speaker 1>Though?

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<v Speaker 2>We just talked with the leadership we are author of

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<v Speaker 2>a leadership book, talked about CEOs who once they get

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<v Speaker 2>to the top, they surround themselves with people who say

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<v Speaker 2>who don't say no.

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<v Speaker 4>Listen, I rolled the dice right from the beginning, and

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<v Speaker 4>we went after each other a little bit, But like

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<v Speaker 4>you said, it, uh, it's the best way to go

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<v Speaker 4>about it. Like you want to leave at the end

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<v Speaker 4>of the day and have people go against your views

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<v Speaker 4>because if they're agreeing with you, you're not going to

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<v Speaker 4>always do the right thing. So I thought that was

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<v Speaker 4>a great I wondered if he was one to because sorry,

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<v Speaker 4>if he was going to want to continue to relationship

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<v Speaker 4>a few times, but it really came together and now

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<v Speaker 4>now we're on the same page and things are going

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<v Speaker 4>really well for us.

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<v Speaker 2>Well, I do wonder when does it get a little tricky.

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<v Speaker 2>Like any partnership, whether it's a marriage, whether it's working relationships,

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<v Speaker 2>whether it's business relationships, there's always tough times. What are

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<v Speaker 2>some of those looking at me?

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<v Speaker 1>Yeah, I was about to say, you guys, just keep going.

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<v Speaker 1>You want to you answer that question?

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<v Speaker 2>No, But I really do feel like a little bit

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<v Speaker 2>of debate or a little bit of arguing, like gets

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<v Speaker 2>you to a better place.

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<v Speaker 1>I think it does. You have to have a difference

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<v Speaker 1>of opinion, like.

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<v Speaker 2>I said, I do like you Tim.

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<v Speaker 1>Otherwise, like I said, you're not going to make any

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<v Speaker 1>any progress moving forward. And we probably we disagree more

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<v Speaker 1>than we agree, but we do it respectfully. And you know,

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<v Speaker 1>there are some things that I know he's an expert.

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<v Speaker 1>It's impossible to be an expert everything, right, You surrounds

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<v Speaker 1>your people that are much more intelligent in different fields.

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<v Speaker 1>And you know, Chris obviously has a lot of experience

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<v Speaker 1>in the retail space, especially I have experience when it

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<v Speaker 1>comes to athletic brands. So it's okay for us to disagree.

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<v Speaker 3>So Chris let's go there, because this is a really

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<v Speaker 3>crowded space. You mentioned Nike, but I mean if you

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<v Speaker 3>think about upstarts like Viori Rhone, then there are the

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<v Speaker 3>big players like Nike, Adidas and the like. How do

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<v Speaker 3>you carve out a place for you specifically?

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<v Speaker 4>So my it's funny, just like with on Tucket, I

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<v Speaker 4>really needed this product. Then you might ask why. You

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<v Speaker 4>know there's plenty of athletic brands and athlesier brands. For me,

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<v Speaker 4>the athletic brands that existed, the quality wasn't there, the

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<v Speaker 4>consistency of fit wasn't there. They were designed for performance,

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<v Speaker 4>but they didn't have that modern fit. The athleisure brands

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<v Speaker 4>have an incredible fit, very high quality fabrics, but not

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<v Speaker 4>designed with performance first in mind. So I wanted a

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<v Speaker 4>really high end athletic brand that had a great fit

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<v Speaker 4>but also was meant to work out and would withstand

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<v Speaker 4>being washed, not pilling. Something that all athletes, not just

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<v Speaker 4>professional athletes, could use all the time, and it's not inexpensive,

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<v Speaker 4>so you want it to last for a long time.

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<v Speaker 4>And I think that that's where we are differentiate from

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<v Speaker 4>these other brands. We're not athleisure, We're not athletic. We're

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<v Speaker 4>kind of a blend of both, if that makes sense.

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<v Speaker 2>I've got yoga pants on that are pilling a little bit,

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<v Speaker 2>so I totally get you. What's the kind of what's

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<v Speaker 2>the growth trajectory? Tell me what we can tell we're Bloomberg.

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<v Speaker 2>We love numbers, you know that. What's the growth on this?

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<v Speaker 1>Well, we need you to go buy some pants, just

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<v Speaker 1>get right on it to help it's out. But I

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<v Speaker 1>think for us, I'll let Chris follow up on it.

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<v Speaker 1>I think what we want to show as a brand,

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<v Speaker 1>this is only our second year. We want to show progress.

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<v Speaker 1>You know sometimes when you when when you're building a company,

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<v Speaker 1>a startup company, you want success right away to understand

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<v Speaker 1>you're you're a startup company for I think they say

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<v Speaker 1>ten years. I mean that's a long long time. So

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<v Speaker 1>we want to show some steady progression. I'll let Chris

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<v Speaker 1>get in a number.

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<v Speaker 2>Yeah, will be ten years before you really feel like

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<v Speaker 2>it's there.

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<v Speaker 1>No ends on how much you buy, Okay, no, I.

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<v Speaker 4>Mean so much competition. You want to just stay relevant.

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<v Speaker 4>You want to make a great product. That's the first thing.

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<v Speaker 4>You got to make a great product. You need your

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<v Speaker 4>repeats to be there. Which they are for us. The

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<v Speaker 4>other thing that's really exciting with us is not just

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<v Speaker 4>you have the e comm then eventually stores, which is

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<v Speaker 4>what I did with on Tucket. We have a great

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<v Speaker 4>wholesale business we're building at Greatness Wins. We have a

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<v Speaker 4>golf business. We'll be in eighty clubs. We were in

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<v Speaker 4>eighty clubs this spring. We have a bookstore business. Derek

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<v Speaker 4>just wore a Michigan sweatshirt on his honore a captain

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<v Speaker 4>in Michigan this weekend. We have a new dance relationship

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<v Speaker 4>with Misty Copeland, who's our women.

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<v Speaker 2>This foundary women who do a little bit of shopping.

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<v Speaker 4>So we have something that will be announcing soon. That's exciting.

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<v Speaker 4>So I'm very happy with earlier are. People love the product,

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<v Speaker 4>they love the quality, and we're just getting going, but

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<v Speaker 4>very excited for the future.

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<v Speaker 2>All Right, We're going to just shift a little bit

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<v Speaker 2>because I am curious, Derek, are you looking for any

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<v Speaker 2>other investments, you know, in sports beyond baseball or maybe

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<v Speaker 2>an MLB team or anything.

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<v Speaker 1>No, I've been down that path. No, take a break

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<v Speaker 1>from that. I spend a lot of time with my

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<v Speaker 1>four kids who are seven and under, so it's a

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<v Speaker 1>full time job, especially when you're talking about Major League

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<v Speaker 1>Baseball ownership. So at this particular point, I think I

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<v Speaker 1>have my hands full.

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<v Speaker 2>So no other Yeah.

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<v Speaker 3>Well, when you say take a break, are you ruling

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<v Speaker 3>it out for the future or do you want to

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<v Speaker 3>get back in there.

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<v Speaker 1>I learned a long time ago never say never yeah,

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<v Speaker 1>because you never know. I just said it three times

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<v Speaker 1>in a row. But you don't know where the future

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<v Speaker 1>is going to lead you. But at this particular point now.

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<v Speaker 2>I do also wonder the two of you, like when

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<v Speaker 2>you think about either ath leisure or athletic appareled you know,

0:09:33.240 --> 0:09:35.400
<v Speaker 2>companies that you look at that you admire or leaders

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<v Speaker 2>you admire. Let me ask you, Chris first, like, is

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<v Speaker 2>there somebody that you look at and say that's who

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<v Speaker 2>I kind of get some cues from.

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<v Speaker 4>Or I mean we always talk about Nike and the

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<v Speaker 4>Jordan brand. Those are the greatest, you know, probably the

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<v Speaker 4>greatest brand maybe ever, so well, you know you want

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<v Speaker 4>to be them, but if you're half half of what

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<v Speaker 4>they become, you're very successful. And I think the ath

0:09:55.320 --> 0:09:57.760
<v Speaker 4>leisure brands are great too. I mean I won't name

0:09:57.800 --> 0:10:02.000
<v Speaker 4>them because you know, but I think there's a lot

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<v Speaker 4>of great brands these days. So we're just trying to differentiate,

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<v Speaker 4>give a reason, you know, why you might need our

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<v Speaker 4>product versus those products, and yeah, hopefully it works.

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<v Speaker 2>Leader you look at your smiling.

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<v Speaker 1>No, there's a lot, you know, it's one that comes

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<v Speaker 1>to mind, he said, Jordan Brand. You know, MJ's been

0:10:19.920 --> 0:10:21.920
<v Speaker 1>like a big brother than me. And I think you know,

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<v Speaker 1>I have young kids now, and you want them to

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<v Speaker 1>choose their career path and find someone that they can

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<v Speaker 1>look up to. You want them to see someone who's

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<v Speaker 1>been successful. And you know, you talk about Michael on

0:10:31.679 --> 0:10:34.320
<v Speaker 1>what he was able to accomplish on the basketball court,

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<v Speaker 1>but I think you look at athletes post playing career.

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<v Speaker 1>He's up there at the top what he's been able

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<v Speaker 1>to accomplish from a business standpoint. So he's someone that

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<v Speaker 1>I look to and go to for advice.

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<v Speaker 2>All Right, you're going to go there, you go, world serious,

0:10:47.920 --> 0:10:49.520
<v Speaker 2>I know I have to do this. I have to

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<v Speaker 2>do this, all right, So you're going to be in.

0:10:51.200 --> 0:10:53.120
<v Speaker 1>The booth, right I am? Yes? Yeah?

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<v Speaker 2>Who do you can you think about?

0:10:54.920 --> 0:10:57.040
<v Speaker 1>Who might be there? I don't know, it depends, you know.

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<v Speaker 1>I'm not trying to skirt the question I'm really not.

0:11:00.080 --> 0:11:02.520
<v Speaker 1>But a lot of it is matchups. We'll know in

0:11:02.559 --> 0:11:04.400
<v Speaker 1>a couple of weeks, because you know, some teams I

0:11:04.400 --> 0:11:06.920
<v Speaker 1>know during my careers to play Anaheim Angels all the time.

0:11:06.960 --> 0:11:09.480
<v Speaker 1>We just couldn't beat them, and you know, finally we

0:11:09.600 --> 0:11:10.920
<v Speaker 1>broke through and we were able to win in two

0:11:10.960 --> 0:11:13.360
<v Speaker 1>thousand and nine. But it all comes down to matchups.

0:11:13.400 --> 0:11:14.560
<v Speaker 1>So there's some good teams out there.

0:11:14.640 --> 0:11:16.679
<v Speaker 2>Chris, you talk baseball, and I'm curious what you might

0:11:16.679 --> 0:11:18.320
<v Speaker 2>think for the World Series.

0:11:18.640 --> 0:11:23.840
<v Speaker 1>It knows nothing about basic do know baseball?

0:11:24.520 --> 0:11:27.760
<v Speaker 4>I mean, I don't did a deal with I don't

0:11:27.760 --> 0:11:31.200
<v Speaker 4>bother Derek with it, but I'm a Yankees fan. We'll

0:11:31.240 --> 0:11:33.000
<v Speaker 4>see it's they don't seem to be able to perform

0:11:33.000 --> 0:11:36.400
<v Speaker 4>in the playoffs for the last what is it fifteen years.

0:11:36.200 --> 0:11:41.360
<v Speaker 1>Now, we'll discuss it on.

0:11:43.280 --> 0:11:45.520
<v Speaker 2>Hey listen, guys, got about forty seconds left here, real

0:11:45.600 --> 0:11:48.600
<v Speaker 2>quickly in I don't know, a year from now, what's

0:11:48.640 --> 0:11:50.120
<v Speaker 2>the conversation around your company.

0:11:50.679 --> 0:11:52.360
<v Speaker 4>I think we'll start to look at stores. I mean,

0:11:52.400 --> 0:11:55.080
<v Speaker 4>I love stores. Not many people do in retail. We

0:11:55.120 --> 0:11:57.040
<v Speaker 4>have nine of them on Tucket and we're opening more.

0:11:57.320 --> 0:11:59.400
<v Speaker 4>I think it's really important for the male shoppers. So

0:11:59.440 --> 0:12:01.000
<v Speaker 4>I think we'll look at that and we'll look at

0:12:01.400 --> 0:12:04.920
<v Speaker 4>continued growth in these different areas that we discuss, bookstores, golf,

0:12:05.000 --> 0:12:06.480
<v Speaker 4>e commerce. So it's very exciting.

0:12:06.600 --> 0:12:08.640
<v Speaker 2>Same thing for you, Derek, in terms of greatness, wins

0:12:08.679 --> 0:12:09.719
<v Speaker 2>and a year from now, what are we gonna be

0:12:09.720 --> 0:12:10.199
<v Speaker 2>talking about.

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<v Speaker 1>Oh, I think it's all awareness. You want people to

0:12:12.040 --> 0:12:13.720
<v Speaker 1>be aware. You want to walk around the streets and

0:12:13.720 --> 0:12:15.960
<v Speaker 1>see people wearing it. And I'm very confident in the

0:12:16.000 --> 0:12:18.600
<v Speaker 1>fact that someone buys our product and they wear it,

0:12:18.600 --> 0:12:20.239
<v Speaker 1>they'll be happy with it and they'll return.

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<v Speaker 2>As a customer and no pilling.

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<v Speaker 1>You promise, Well, you got to tell me.

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<v Speaker 2>Derek, Derek Jeter, of course, Chris Ricobono, you guys got me.

0:12:31.840 --> 0:12:32.360
<v Speaker 1>FLLL mixed