WEBVTT - Explain It To The Five-Year-Olds with Eben Novy-Williams

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<v Speaker 1>Welcome to Good Game with Sarah Spain, where we're practicing

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<v Speaker 1>our moves before the big audition tomorrow. Valkyries are hiring

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<v Speaker 1>a mascot, and our patented combination of the Elaine into

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<v Speaker 1>the Splits is a show stopper. It's Thursday, May twenty second,

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<v Speaker 1>and on today's show, we'll be chatting with Eben Noby Williams,

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<v Speaker 1>Sportco's deputy editor and co host of the Sportacast podcast.

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<v Speaker 1>We talk about the Connecticut Suns potential sale and relocation,

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<v Speaker 1>the relationship between sports team valuations and revenue, and how

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<v Speaker 1>the complicated WNBA ownership structure affects investment and expansion. Plus,

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<v Speaker 1>Game two of the PWHL Finals is on deck, and

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<v Speaker 1>our show Soccer Side plays its first home match. It's

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<v Speaker 1>all coming up right after this welcome back slices. Here's

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<v Speaker 1>what you need to know today. Let's start with the

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<v Speaker 1>PWHL Finals, where Emily Clark scored two minutes and forty

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<v Speaker 1>seven seconds into overtime to lead the Ottawa Charge to

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<v Speaker 1>a two to one win over the defending champion Minnesota

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<v Speaker 1>Frost on Tuesday night in Game one. Minnesota has yet

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<v Speaker 1>to win a season opener across four series in their

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<v Speaker 1>two seasons of playoff action. Meantime, Ottawa is a perfect

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<v Speaker 1>three to zero on home ice in this year's playoffs.

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<v Speaker 1>They host again tonight Game two, a seven pm Eastern

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<v Speaker 1>puck drop at TD Place. More Hockey Team USA legend

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<v Speaker 1>Hillary Knight says the twenty twenty six Milan Courtina Olympics

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<v Speaker 1>will be her final games. Knight, who turns thirty six

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<v Speaker 1>in July, is currently tied for the most Olympic medals

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<v Speaker 1>of any American hockey player. A fifth medal in Milan

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<v Speaker 1>would make her the sole record holder, a ten time

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<v Speaker 1>world champ and the career leader in points, goals, and

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<v Speaker 1>assists at the World Championships. Knight has been one of

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<v Speaker 1>the most influential women in hockey for over a decade.

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<v Speaker 1>She talked a friend of the show, Nancy Armor at

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<v Speaker 1>USA Today Sports about the decision to make Milan her

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<v Speaker 1>last games, saying, quote, it's time. I have grown up

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<v Speaker 1>in this program and it's just given me so much.

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<v Speaker 1>I'm at peace. I just have this feeling that it's time,

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<v Speaker 1>and I'm grateful that hopefully I can stay healthy and everything,

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<v Speaker 1>I can go out when i'd like to be done

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<v Speaker 1>that is such a privilege that only a handful of

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<v Speaker 1>competitors get end quote. Night isn't retiring just yet, though

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<v Speaker 1>she does plan to play in the PWHL after Milan

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<v Speaker 1>to Soccer. The US women's national team officially announced the

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<v Speaker 1>twenty four player training camp roster for its upcoming friendlies

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<v Speaker 1>against China and Jamaica. Defender Naomi Germa is back in

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<v Speaker 1>the fold after missing every contest this calendar year due

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<v Speaker 1>to injuries. She returns after winning the Women's Super League

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<v Speaker 1>title and FA Cup with Chelsea FC, the side that

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<v Speaker 1>made her the first ever player in women's soccer with

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<v Speaker 1>a million dollar transfer fee. Seattle Rain forward lynd Biandolo

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<v Speaker 1>also makes an appearance after missing. The squad's April games.

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<v Speaker 1>Also had coach Emma Hayeses granted a few players their

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<v Speaker 1>first ever senior national team call ups, including Orlando Pride

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<v Speaker 1>defender Carriabello and Kansas City current midfielder she of the

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<v Speaker 1>iconic twerk celebration Low Labanta. If thirty two year old

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<v Speaker 1>Leabonta plays in either of the matches, she'll become the

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<v Speaker 1>oldest player to debut for the US women's national team

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<v Speaker 1>program ever. In its forty year history. I heard friends

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<v Speaker 1>of the show sam Us and Becky Sowerbrun on the

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<v Speaker 1>women's game advocating for a Grandma seally if Lebonta scores,

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<v Speaker 1>so here for it, fake Caine limping walk the whole thing,

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<v Speaker 1>Let's see it. We'll link to the full training camp

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<v Speaker 1>roster in our show notes. The US women's national team

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<v Speaker 1>will face China on May thirty first at Alion's Field

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<v Speaker 1>in Saint Paul, Minnesota, and then Jamaica June third at

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<v Speaker 1>Energizer Park in Saint Louis. That second match, we'll also

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<v Speaker 1>see a pregame retirement celebration, including bobbleheads for Soerbrun, Saint

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<v Speaker 1>Louis Native and US Women's national team legend. More soccer slices.

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<v Speaker 1>We want to let you know that our show side,

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<v Speaker 1>Minnesota Aurora FC, plays its home opener tonight, facing off

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<v Speaker 1>against Rochester FC. Kickoff is at eight pm Eastern, and

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<v Speaker 1>we are so excited to cheer them on as they

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<v Speaker 1>try to dominate the USLW league. Thanks again to everybody

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<v Speaker 1>who bought a slice of this community owned team, and

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<v Speaker 1>we hope you're taking as much pride in them as

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<v Speaker 1>we do. Also, some more details to come on my

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<v Speaker 1>visit to Aurora FC, but it's almost certainly going to

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<v Speaker 1>be the June twelfth game against the Chicago City Dutch Lions.

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<v Speaker 1>There also might be some cool Aurora good game merch

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<v Speaker 1>to look forward to, so we'll keep you updated on

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<v Speaker 1>that as well. Moving on to a different pitch, we're

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<v Speaker 1>approaching the tenth weekend of women's Elite rugby action. The

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<v Speaker 1>Denver Onyx are leading the league with a perfect six

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<v Speaker 1>and zero record, followed closely by the Boston Banshee's at

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<v Speaker 1>five and two and the New York Exiles at four

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<v Speaker 1>and three. My Chicago Tempest are, how shall we say,

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<v Speaker 1>suffering from a bit of a drought, oh and seven,

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<v Speaker 1>y'all zero wins. To quote Billy Shakespeare's The Tempest, Hell

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<v Speaker 1>is empty and all the devils are here. We'll keep

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<v Speaker 1>an eye on the standings as the league championship, the

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<v Speaker 1>Legacy Cup is just a little over a month away,

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<v Speaker 1>and we'll link to the full league schedule and to

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<v Speaker 1>where you can purchase tickets in our show notes to hoops.

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<v Speaker 1>The wa NBA's opening weekend was a smashing success, and

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<v Speaker 1>one game in particular had incredible viewership. The Indiana Fever's

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<v Speaker 1>home opener against the Chicago Sky on Saturday averaged two

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<v Speaker 1>point seven million viewers, making it the most watched WNBA

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<v Speaker 1>regular season game since two thousand. Per Sports Media Watch,

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<v Speaker 1>the game peaked at three point one million viewers, good

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<v Speaker 1>for the second biggest average audience for any league event,

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<v Speaker 1>behind only last year's WNBA All Star Game. No official

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<v Speaker 1>numbers on how many dumbass talking heads who don't say

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<v Speaker 1>shit about the w until there's some sort of Fracice

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<v Speaker 1>just had to chime in on Angel versus Caitlin all week,

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<v Speaker 1>but it feels like three point one million. The Fever

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<v Speaker 1>looked like world beaters in that game against the Sky,

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<v Speaker 1>but they came down to Earth pretty quickly. On Tuesday night,

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<v Speaker 1>the Atlanta Dream got the best of them in Indy,

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<v Speaker 1>winning a nail bier ninety one to ninety. Britney Grinder

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<v Speaker 1>led Atlanta with twenty one points and eight rebounds before

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<v Speaker 1>she fouled out. Ryan Howard put up twenty points and

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<v Speaker 1>three assists, and Brianna Jones posted a dominant nineteen point

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<v Speaker 1>thirteen rebound double double. Indiana had some bright spots two

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<v Speaker 1>in the loss in the form of some more broken

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<v Speaker 1>records for Kaitlin Clark and Dewana Bonner. Clark notched her

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<v Speaker 1>tenth career game with more than twenty points in tennisis,

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<v Speaker 1>tying Courtney Vandersloot for the most such games in WNBA history.

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<v Speaker 1>And get this, Clark did it in forty two games.

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<v Speaker 1>Slute achieved the milestone in three hundred and ninety four.

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<v Speaker 1>Caitlyn also recorded her sixth career twenty five plus point

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<v Speaker 1>tennisist game, passing Sabrina and Nascue for the most in

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<v Speaker 1>WNBA history, and she became the first player in WNBA

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<v Speaker 1>history to open a season with back to back twenty

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<v Speaker 1>plus point ten plus assist games. Last, but not least,

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<v Speaker 1>Clark is now the first player in WNBA history with

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<v Speaker 1>multiple games of twenty five plus points, ten plus assists,

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<v Speaker 1>five plus rebounds, and five plus three pointers made. Who

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<v Speaker 1>She is off to a hot start. Meanwhile, de Wana

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<v Speaker 1>Bonner moved up a spot on the league's career rebounds list,

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<v Speaker 1>leaprogging Tina Thompson to secure sole possession of eighth most

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<v Speaker 1>boards all time. She's now got three thousand and seventy

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<v Speaker 1>one eighth and rebounds third in points. Bonner is leaving

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<v Speaker 1>her mark more basketball news On Monday, Minnesota Linkstar and

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<v Speaker 1>if He Sikalier appeared on ESPN's NBA Today alongside Boniever

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<v Speaker 1>frontman Justin Vernon, who announced that he's collabing with the

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<v Speaker 1>Links franchise on a first of its kind partnership focused

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<v Speaker 1>on gender equity and community impact. The team offered more

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<v Speaker 1>details in a release, noting that the multi year collaboration

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<v Speaker 1>starting this season, will quote focus on addressing gender inequities

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<v Speaker 1>as a result of domestic and sexual violence, sex trafficking,

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<v Speaker 1>health care disparities, and barriers within education and leadership end quote. Vernon,

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<v Speaker 1>a longtime Links fan with family ties to both Minnesota

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<v Speaker 1>and Wisconsin, has been a big advocate for gender equity.

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<v Speaker 1>He assisted in creating Boniver's two a Billion campaign, which

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<v Speaker 1>raises support and awareness and creates interpersonal connections in an

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<v Speaker 1>effort to end gender inequity, domestic violence, and sexual abuse. Now,

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<v Speaker 1>Boniyver's two AB and the Links will collaborate on a

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<v Speaker 1>variety of things, including shining a spotlight on local nonprofits

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<v Speaker 1>and activations throughout the season. The two AB campaign will

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<v Speaker 1>also donate two hundred and fifty thousand dollars in total

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<v Speaker 1>grant money to ten Minnesotan and Western Wisconsin nonprofits and shelters.

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<v Speaker 1>This partnership packs even more of a punch than what

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<v Speaker 1>we've said, so we'll link to the Lynx's full release

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<v Speaker 1>explaining all the details in our show notes. Also a

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<v Speaker 1>link to Fee and Vernon's five minute segment on NBA Today.

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<v Speaker 1>In that links release, Vernon summed up why he's so

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<v Speaker 1>excited to get involved. He said, quote, basketball is exactly

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<v Speaker 1>like music. It's a group and individual improvising to create

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<v Speaker 1>moments of vision, excitement, and joy. Simply said, the Minnesota

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<v Speaker 1>Lynks team is my favorite band in the world right now.

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<v Speaker 1>As Boney Verra, we also saw an unprecedented opportunity to

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<v Speaker 1>not only support this band of incredible women on the court,

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<v Speaker 1>but by combining forces to more urgently support the communities

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<v Speaker 1>of women in the Upper Midwest end quote. As if

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<v Speaker 1>I didn't already love him enough, What a mention. Finally,

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<v Speaker 1>in hoops, Seattle Storm players Dominique Maloga and Gabby Williams

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<v Speaker 1>have announced that they'll skip this summer's EuroBasket competition, which

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<v Speaker 1>is slated to begin June eighteenth. Both players were part

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<v Speaker 1>of the French national team that earned a silver medal

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<v Speaker 1>at the Paris Olympics, but they'll stick around in the

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<v Speaker 1>States to help build with Seattle. Williams hasn't play. I

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<v Speaker 1>had a full WNBA season since twenty twenty two, and

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<v Speaker 1>staying in the US offers her a chance to do so.

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<v Speaker 1>Malonga spoke about her own choice on Monday, saying, quote,

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<v Speaker 1>it was a difficult decision because the French jersey is

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<v Speaker 1>very important for me. I decided to stay here because

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<v Speaker 1>I think my rookie season is really important and I

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<v Speaker 1>wanted to leave it all with the team end quote.

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<v Speaker 1>This is great news for Seattle, who started the year

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<v Speaker 1>a little shorthanded because of the league's hard salary cap

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<v Speaker 1>and because of unfortunate knee injuries to Nica Mule, Jordan

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<v Speaker 1>Horsten and Katie lu Samuelson, who suffered hers just weeks

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<v Speaker 1>before the regular season tipped off. The French team will

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<v Speaker 1>also be without Marin Johannes, who shared that she'll skip

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<v Speaker 1>euro Basket as well to focus on her time with

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<v Speaker 1>the New York Liberty. We got to take a quick

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<v Speaker 1>break slices when we come back. Evan Novie Williams explains

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<v Speaker 1>a bunch of stuff to me like I'm five, stick

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<v Speaker 1>around joining us now. He's sport of Ghost, deputy editor

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<v Speaker 1>and co host of sport a Cast podcast. Prior to

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<v Speaker 1>joining Sportico, he was at Bloomberg News for almost a decade,

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<v Speaker 1>covering everything from media deals and team sales to e

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<v Speaker 1>sports and the Olympics. He played sprint football for the

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<v Speaker 1>Princeton Tigers, and when we wrote this bio was the

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<v Speaker 1>first time Alex ever heard that there is a sport

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<v Speaker 1>called sprint football. It's Evan Noby Williams.

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<v Speaker 2>Hi, Evan, Hey, Sarah, how are you good.

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<v Speaker 1>I'm quite familiar with sprint football because was the sprint

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<v Speaker 1>football team at Cornell, But for those who don't understand,

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<v Speaker 1>give us a brief synopsis.

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<v Speaker 2>Sprint football is varsity football. Had a few institutions in

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<v Speaker 2>the Northeast, Cornell being one of them with a weight limit,

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<v Speaker 2>so everybody on the field when I played was weighing

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<v Speaker 2>in at one hundred and seventy two pounds. It feels

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<v Speaker 2>like the vestiges of a very privileged people who could

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<v Speaker 2>not play full weight football but got to college and

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<v Speaker 2>were likey, I want to keep doing this. How do

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<v Speaker 2>we structure something so that my one hundred and sixty

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<v Speaker 2>five pound body can still be competitive. And they built it.

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<v Speaker 2>And I will say I played on I played on

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<v Speaker 2>a Princeton team that was went twenty years without winning

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<v Speaker 2>a game and was losing games by very, very large sums.

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<v Speaker 2>Cornell Army and Navy are in the Sprint League, and

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<v Speaker 2>you can imagine they've got one hundred guys that are

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<v Speaker 2>one hundred and seventy two pounds exactly and are quite athletic,

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<v Speaker 2>and we were losing games like seventy to nothing or

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<v Speaker 2>like eight to five and things like that. So it

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<v Speaker 2>was amazing. The guys were great. It was very fun

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<v Speaker 2>for me, and it was a good learning life lesson

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<v Speaker 2>that sometimes you know you're gonna lose before you take

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<v Speaker 2>the field.

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<v Speaker 1>You know. We were pretty nice about it. I don't

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<v Speaker 1>remember there being and maybe there was between the football

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<v Speaker 1>guys and the sprint football guys. Maybe there was like

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<v Speaker 1>beef about, like you're not real football, but we never

0:11:40.600 --> 0:11:43.400
<v Speaker 1>we never like heard that. We definitely knew who was

0:11:43.440 --> 0:11:45.959
<v Speaker 1>on the football team and who was on sprint football,

0:11:46.280 --> 0:11:48.920
<v Speaker 1>but we accepted everyone. We loved everyone. I also love

0:11:48.920 --> 0:11:51.880
<v Speaker 1>how men always come up with the best names like

0:11:51.960 --> 0:11:55.160
<v Speaker 1>euphemisms for their sizes, Like you know, if you're in

0:11:55.400 --> 0:11:59.440
<v Speaker 1>a heavy set man, your suit is called executive. Did

0:11:59.440 --> 0:12:02.760
<v Speaker 1>you know that that that's the name of the size, Like, oh,

0:12:02.800 --> 0:12:06.240
<v Speaker 1>you must be very important because you're larger. And then

0:12:06.400 --> 0:12:09.240
<v Speaker 1>like sprint football, like you're not sprinting the whole time, Like,

0:12:09.360 --> 0:12:11.640
<v Speaker 1>but you didn't want to call it like small ball

0:12:12.880 --> 0:12:15.840
<v Speaker 1>or like tiny man football, so they had to go

0:12:15.880 --> 0:12:17.719
<v Speaker 1>with something that sounded impressive.

0:12:18.480 --> 0:12:20.840
<v Speaker 2>The I do. I do triathlon sometimes, and there's a

0:12:20.840 --> 0:12:23.960
<v Speaker 2>triathlon category for larger people. And I think it is

0:12:24.000 --> 0:12:26.360
<v Speaker 2>like Clyde Gale and Athena. I think to your point

0:12:26.400 --> 0:12:29.360
<v Speaker 2>of money, like choose. I love that choose terms that

0:12:30.280 --> 0:12:33.880
<v Speaker 2>we call the main Princeton team the heavies. The heav

0:12:34.559 --> 0:12:37.040
<v Speaker 2>differentiate them from the sprint folks.

0:12:37.640 --> 0:12:39.640
<v Speaker 1>Well, you were not here to talk football, though it

0:12:39.679 --> 0:12:42.400
<v Speaker 1>seems we could. We're going to talk a whole bunch

0:12:42.440 --> 0:12:43.920
<v Speaker 1>of stuff, and I want to start with the news

0:12:43.920 --> 0:12:47.160
<v Speaker 1>you recently broke about the Connecticut Sun. What is the latest,

0:12:47.200 --> 0:12:50.800
<v Speaker 1>if anything after the report you released about the team

0:12:50.840 --> 0:12:53.200
<v Speaker 1>being engaged in talks about potentially selling Yeah.

0:12:53.200 --> 0:12:55.040
<v Speaker 2>I think this is a fascinating one because it comes

0:12:55.040 --> 0:12:58.200
<v Speaker 2>in the middle of the WNBA's expansion talks also, and

0:12:59.040 --> 0:13:00.800
<v Speaker 2>there's very few people that I have talked to that

0:13:00.920 --> 0:13:02.960
<v Speaker 2>think that that team is going to stay in Connecticut

0:13:03.280 --> 0:13:06.520
<v Speaker 2>if it is sold. It's certainly possible, but you can

0:13:06.559 --> 0:13:09.840
<v Speaker 2>see a world where someone who pays hundreds of millions

0:13:09.840 --> 0:13:13.679
<v Speaker 2>of dollars to buy this asset decides that, hey, maybe Uncasville,

0:13:13.720 --> 0:13:15.800
<v Speaker 2>Connecticut is not the market that I want this team

0:13:15.800 --> 0:13:17.960
<v Speaker 2>to play in, and maybe playing in a venue owned

0:13:17.960 --> 0:13:21.160
<v Speaker 2>by the former owner is not the situation that I

0:13:21.200 --> 0:13:24.560
<v Speaker 2>really want. So if this team is indeed sold, then

0:13:24.600 --> 0:13:28.160
<v Speaker 2>the person who buys it is looking to potentially move it.

0:13:28.600 --> 0:13:31.360
<v Speaker 2>What does that mean for the already ongoing expansion talks?

0:13:31.679 --> 0:13:33.640
<v Speaker 2>And there were dozens of I'm sure you know this Thereah,

0:13:33.679 --> 0:13:36.040
<v Speaker 2>there was more than a dozen different groups and different

0:13:36.080 --> 0:13:39.679
<v Speaker 2>cities that really wanted and put together bids and offers

0:13:39.720 --> 0:13:43.280
<v Speaker 2>for WNBA expansion. My understanding is that a lot of

0:13:43.320 --> 0:13:45.640
<v Speaker 2>those groups that learned they were not getting expansion are

0:13:45.640 --> 0:13:48.400
<v Speaker 2>now in talks with the Sun as well. So I

0:13:48.440 --> 0:13:50.600
<v Speaker 2>think it all kind of comes together at a critical

0:13:50.640 --> 0:13:53.640
<v Speaker 2>time for the WNBA where they're deciding how many new

0:13:53.640 --> 0:13:56.000
<v Speaker 2>teams they want to add. How many is too many

0:13:56.120 --> 0:13:59.480
<v Speaker 2>because there's only so much talent, right, and you can

0:13:59.520 --> 0:14:03.600
<v Speaker 2>expand to quickly. It's certainly a possibility. And then they've

0:14:03.600 --> 0:14:07.080
<v Speaker 2>done it before exactly. So in the middle of all that,

0:14:07.200 --> 0:14:09.120
<v Speaker 2>also this team that's on the market that could move

0:14:09.160 --> 0:14:11.000
<v Speaker 2>to any one of these other cities as well, So

0:14:11.440 --> 0:14:13.680
<v Speaker 2>a lot going on behind the scenes from a team

0:14:13.800 --> 0:14:15.320
<v Speaker 2>sales and expansion standpoint.

0:14:15.360 --> 0:14:17.719
<v Speaker 1>For the W couple things there. I assume that the

0:14:17.800 --> 0:14:20.680
<v Speaker 1>league still has to approve a sale. So these expansion

0:14:20.680 --> 0:14:23.240
<v Speaker 1>groups that are looking to buy both have to convince

0:14:23.280 --> 0:14:26.240
<v Speaker 1>the Connecticut Sun ownership group that they have the best

0:14:26.360 --> 0:14:30.240
<v Speaker 1>offer and have the Mohegan suntribe want to take their offer.

0:14:30.280 --> 0:14:32.640
<v Speaker 1>But then the W also has to approve. Will they

0:14:32.720 --> 0:14:35.680
<v Speaker 1>have to approve where the buyers take the team.

0:14:36.120 --> 0:14:38.440
<v Speaker 2>I'm sure that's all part of the conversation. The other

0:14:38.680 --> 0:14:41.880
<v Speaker 2>interesting aspect here is price, and from what I understand,

0:14:41.880 --> 0:14:44.960
<v Speaker 2>the conversation around expansion got up to, at least in

0:14:44.960 --> 0:14:47.760
<v Speaker 2>Cleveland's case with Dan Gilbert, two hundred and fifty million

0:14:47.800 --> 0:14:51.760
<v Speaker 2>dollars cash for expansion. It seems inconceivable to me that

0:14:51.800 --> 0:14:54.080
<v Speaker 2>the Sun would sell for two hundred and fifty million dollars.

0:14:54.720 --> 0:14:57.239
<v Speaker 2>So in some ways you now also have an expansion

0:14:57.440 --> 0:14:59.760
<v Speaker 2>opportunity on the market that costs less than the actual

0:14:59.760 --> 0:15:04.040
<v Speaker 2>ex expansion that the league is selling, which again creates

0:15:04.040 --> 0:15:05.640
<v Speaker 2>a kind of interesting dynamic there.

0:15:05.920 --> 0:15:08.760
<v Speaker 1>But we'll probably benefit the Sun and it will go

0:15:08.840 --> 0:15:10.520
<v Speaker 1>for more than it's worth because it will be the

0:15:10.560 --> 0:15:13.240
<v Speaker 1>only way for someone who wasn't awarded a team to

0:15:13.320 --> 0:15:15.240
<v Speaker 1>get the team that they want in the place that they.

0:15:15.080 --> 0:15:18.680
<v Speaker 2>Want totally, and just to go one step further. Perhaps

0:15:18.720 --> 0:15:21.600
<v Speaker 2>even let's say that w decided on three expansion teams,

0:15:21.880 --> 0:15:24.640
<v Speaker 2>maybe the league tries to push and I should say

0:15:24.680 --> 0:15:27.040
<v Speaker 2>Allen and Company, the bank is doing both these transactions,

0:15:28.160 --> 0:15:29.720
<v Speaker 2>Maybe they push one of the ones they wanted for

0:15:29.760 --> 0:15:32.240
<v Speaker 2>expansion just towards the Sun. Right. There's a whole bunch

0:15:32.320 --> 0:15:36.000
<v Speaker 2>I think possible iterations. But this process has been going

0:15:36.000 --> 0:15:37.800
<v Speaker 2>on for a very long time in the W As

0:15:37.800 --> 0:15:40.320
<v Speaker 2>you know, there are new teams that have been announced,

0:15:40.360 --> 0:15:42.080
<v Speaker 2>new teams that have joined, new teams that are going

0:15:42.120 --> 0:15:44.200
<v Speaker 2>to join. I think a lot of people in the

0:15:44.280 --> 0:15:46.560
<v Speaker 2>league are looking forward to this being in the rearview mirror,

0:15:47.080 --> 0:15:50.000
<v Speaker 2>having set the expansion conversation and then trying to figure

0:15:50.040 --> 0:15:52.840
<v Speaker 2>out the fun stuff about how these teams join. What

0:15:52.880 --> 0:15:55.960
<v Speaker 2>the player situation looks like. There's a labor deal looming

0:15:55.960 --> 0:15:58.120
<v Speaker 2>in the background as well, which is obviously a big

0:15:58.160 --> 0:16:01.280
<v Speaker 2>piece of the business puzzle for the double. So there's

0:16:01.280 --> 0:16:03.840
<v Speaker 2>a lot going on and a mid rapid change. This

0:16:03.920 --> 0:16:05.760
<v Speaker 2>league is going to look very different in a few years.

0:16:06.040 --> 0:16:08.280
<v Speaker 1>How does the fact that there's expected to be a

0:16:08.320 --> 0:16:11.520
<v Speaker 1>new CBA and eighty percent of the league's contracts and

0:16:11.720 --> 0:16:15.240
<v Speaker 1>in twenty twenty five affect the conversations around expansion or

0:16:15.280 --> 0:16:18.800
<v Speaker 1>even buying, because what exactly are you buying? What players,

0:16:19.840 --> 0:16:22.640
<v Speaker 1>who plays for whom right? All of those things are

0:16:22.720 --> 0:16:24.080
<v Speaker 1>kind of going to be tossed in the air at

0:16:24.120 --> 0:16:24.680
<v Speaker 1>the same time.

0:16:24.960 --> 0:16:26.520
<v Speaker 2>I think this is such a good question, and it's

0:16:26.560 --> 0:16:29.000
<v Speaker 2>something that I am also kind of confused about. The

0:16:29.640 --> 0:16:33.200
<v Speaker 2>traditional way that most leagues have looked at expansion is

0:16:34.160 --> 0:16:36.760
<v Speaker 2>you do your media deals, you get your labor piece,

0:16:36.920 --> 0:16:38.880
<v Speaker 2>and then you hit the market with expansion. When you

0:16:38.960 --> 0:16:40.960
<v Speaker 2>know that there's a certain amount of you know the

0:16:41.040 --> 0:16:44.200
<v Speaker 2>rules of the game for player contracts and the relationship

0:16:44.240 --> 0:16:47.440
<v Speaker 2>with the union, you know what the basically contracted revenue

0:16:47.480 --> 0:16:49.800
<v Speaker 2>is coming in from media, that's the time to strike.

0:16:49.840 --> 0:16:52.000
<v Speaker 2>And if you listen to Adam Silver, over the past

0:16:52.000 --> 0:16:55.080
<v Speaker 2>few years, every time he was asked about NBA expansion,

0:16:55.440 --> 0:16:57.160
<v Speaker 2>he was like, we're going to get our media deals done,

0:16:57.160 --> 0:16:59.000
<v Speaker 2>We're going to get our labor piece locked in, and

0:16:59.040 --> 0:17:01.600
<v Speaker 2>then sometime around literally right now, we're going to start

0:17:01.600 --> 0:17:04.560
<v Speaker 2>talking about expansion. Formally, you would think that that is

0:17:04.600 --> 0:17:07.280
<v Speaker 2>when your teams are most valuable, when there's that kind

0:17:07.280 --> 0:17:10.800
<v Speaker 2>of comfort in the marketplace about long term revenue. But

0:17:11.000 --> 0:17:13.239
<v Speaker 2>the W has done something differently right that W has

0:17:13.240 --> 0:17:16.520
<v Speaker 2>had the expansion talks. The media deals are done, but

0:17:16.600 --> 0:17:20.560
<v Speaker 2>the W had expansion talks before before the labor deal

0:17:20.840 --> 0:17:24.560
<v Speaker 2>at least was signed and executed. And this is a

0:17:24.920 --> 0:17:28.359
<v Speaker 2>potentially thornier labor deal than most other men's leagues at

0:17:28.440 --> 0:17:31.600
<v Speaker 2>least have seen in the past few years. I can't

0:17:31.600 --> 0:17:34.199
<v Speaker 2>tell if that says something about the way both the

0:17:34.280 --> 0:17:36.680
<v Speaker 2>NBA and the WNBA think this labor deal is going

0:17:36.720 --> 0:17:38.480
<v Speaker 2>to pan out, that they think that maybe selling a

0:17:38.560 --> 0:17:42.000
<v Speaker 2>team teams now and expansion now is better. But I

0:17:42.000 --> 0:17:45.160
<v Speaker 2>do think it's definitely interesting that the kind of traditional

0:17:45.240 --> 0:17:47.439
<v Speaker 2>way you think about maximizing your value as to do

0:17:47.560 --> 0:17:50.560
<v Speaker 2>labor first, and instead in the W we see teams

0:17:50.600 --> 0:17:54.439
<v Speaker 2>hitting the market and expansion conversations happening before that labor

0:17:54.440 --> 0:17:55.160
<v Speaker 2>deal gets signed.

0:17:55.440 --> 0:17:57.879
<v Speaker 1>A couple more quick things about this Sun team. We

0:17:57.960 --> 0:18:00.080
<v Speaker 1>did see them play a sellout game in Boston at

0:18:00.119 --> 0:18:02.679
<v Speaker 1>the Garden last summer. It was a huge success. It

0:18:02.720 --> 0:18:05.400
<v Speaker 1>had a lot of Sun fans nervous about the potential

0:18:05.480 --> 0:18:08.120
<v Speaker 1>of them taking the team elsewhere, and of course den

0:18:08.160 --> 0:18:10.480
<v Speaker 1>Risotti said no, no, we're very committed, and the Mohiget

0:18:10.480 --> 0:18:13.359
<v Speaker 1>suntribe is very committed. And then here we are today

0:18:13.440 --> 0:18:16.440
<v Speaker 1>talking about how they're taking calls about potentially leaving. Does

0:18:16.480 --> 0:18:20.159
<v Speaker 1>it seem like Boston would have any priority or that

0:18:20.200 --> 0:18:23.520
<v Speaker 1>there'd be any feeling about the existing fan base and

0:18:23.600 --> 0:18:26.880
<v Speaker 1>not taking the team so far away that current Connecticut

0:18:26.920 --> 0:18:29.879
<v Speaker 1>Sun fans couldn't root for whatever team it becomes in

0:18:29.920 --> 0:18:31.080
<v Speaker 1>the same general area.

0:18:31.800 --> 0:18:34.960
<v Speaker 2>I think it's certainly it's a great question, and I'm

0:18:34.960 --> 0:18:38.480
<v Speaker 2>sure it's something that will come up. My understanding is

0:18:38.520 --> 0:18:41.520
<v Speaker 2>that of the let's just call them twelve expansion groups

0:18:41.520 --> 0:18:44.840
<v Speaker 2>that were really interested in this process, Boston was not

0:18:44.840 --> 0:18:48.320
<v Speaker 2>a name I heard very often, and my understanding of

0:18:48.359 --> 0:18:52.080
<v Speaker 2>the three kind of leading horse finalists right now, Boston

0:18:52.160 --> 0:18:55.560
<v Speaker 2>was certainly not one of them. So not to say never,

0:18:55.640 --> 0:18:58.200
<v Speaker 2>and who knows, the W could announce it's three expansion

0:18:58.200 --> 0:18:59.840
<v Speaker 2>teams and then the Sun are not part of that.

0:19:00.000 --> 0:19:02.000
<v Speaker 2>The Sun gets sold to a group in Boston. There's

0:19:02.040 --> 0:19:05.480
<v Speaker 2>an NBA transaction obviously that is in the works potentially

0:19:05.520 --> 0:19:07.920
<v Speaker 2>and in Boston at the same time, which either makes

0:19:07.960 --> 0:19:10.480
<v Speaker 2>that more complicated or makes that potentially easier, depending on

0:19:10.520 --> 0:19:13.840
<v Speaker 2>who the group is. But it would not be the

0:19:13.880 --> 0:19:16.080
<v Speaker 2>first place that I would have thought, even given the

0:19:16.080 --> 0:19:18.800
<v Speaker 2>proximity and obviously the fact that, as you said, they've

0:19:18.840 --> 0:19:21.840
<v Speaker 2>played games there and have had good, good crowds. The

0:19:22.520 --> 0:19:24.720
<v Speaker 2>interesting thing about the W to me is that the

0:19:24.800 --> 0:19:26.920
<v Speaker 2>league is so small that there's so many good markets

0:19:26.960 --> 0:19:29.879
<v Speaker 2>that don't have teams. And when you think about like

0:19:29.960 --> 0:19:34.600
<v Speaker 2>baseball expansion, they're talking about like Portland, Oregon and maybe Nashville,

0:19:34.760 --> 0:19:36.920
<v Speaker 2>and not to say those are bad markets, but there's

0:19:36.960 --> 0:19:39.880
<v Speaker 2>just so many massive markets that don't have WNBA teams

0:19:39.960 --> 0:19:43.840
<v Speaker 2>right now, right Philadelphia. So yeah, in some ways the

0:19:43.880 --> 0:19:47.159
<v Speaker 2>competition is way fiercer because the options for the W

0:19:47.400 --> 0:19:50.040
<v Speaker 2>in terms of huge markets, big sports cities that they

0:19:50.040 --> 0:19:52.240
<v Speaker 2>can go to. It's just way wider than we see

0:19:52.240 --> 0:19:54.399
<v Speaker 2>in these thirty or thirty two team men's leagues.

0:19:54.760 --> 0:19:56.719
<v Speaker 1>You mentioned that there are three front runners.

0:19:56.760 --> 0:19:59.879
<v Speaker 2>Give them to us, Yeah, I mean the three that

0:20:00.080 --> 0:20:02.960
<v Speaker 2>I think are in the best place right now. Cleveland's

0:20:02.960 --> 0:20:07.240
<v Speaker 2>been written about. Philadelphia seems very likely as well, particularly

0:20:07.280 --> 0:20:10.879
<v Speaker 2>given that Adam Silver basically broke he to an agreement

0:20:10.920 --> 0:20:13.399
<v Speaker 2>between the hockey and basketball teams there for their for

0:20:13.440 --> 0:20:16.800
<v Speaker 2>their stadiums, and when they announced that agreement, they made

0:20:16.840 --> 0:20:19.919
<v Speaker 2>it very clear that W was their priority. Wanda Sykes

0:20:19.920 --> 0:20:22.000
<v Speaker 2>and her wife were on the stage when they announced it.

0:20:22.040 --> 0:20:25.919
<v Speaker 2>She has been a very very vocal proponent of bringing

0:20:26.040 --> 0:20:28.679
<v Speaker 2>w to Philadelphia, and then Detroit, I think is an

0:20:28.680 --> 0:20:32.160
<v Speaker 2>interesting one as well, backed by both Tom Gores, who

0:20:32.160 --> 0:20:35.240
<v Speaker 2>owns the Pistons, and then a whole host of local

0:20:36.040 --> 0:20:41.399
<v Speaker 2>business women, businessmen, celebrities, athletes in the Detroit area. Detroit

0:20:41.440 --> 0:20:45.080
<v Speaker 2>had a WNBA team at one point. Obviously, Adam Silver

0:20:45.119 --> 0:20:47.159
<v Speaker 2>has set on the record before that he could totally

0:20:47.200 --> 0:20:50.239
<v Speaker 2>see that team getting revived at some point. So if

0:20:50.280 --> 0:20:52.320
<v Speaker 2>I was a betting person, those would be those would

0:20:52.320 --> 0:20:54.479
<v Speaker 2>be the three that I would I would expect. But

0:20:55.160 --> 0:20:57.879
<v Speaker 2>what everyone keeps telling me is that nothing is final, final, final,

0:20:57.920 --> 0:20:59.959
<v Speaker 2>and everyone's kind of still waiting for the final decision.

0:21:00.160 --> 0:21:02.040
<v Speaker 2>So I guess take that with a little bit of

0:21:02.040 --> 0:21:02.720
<v Speaker 2>a grain of salt.

0:21:03.480 --> 0:21:05.760
<v Speaker 1>You mentioned that Adam Silver is very clear in the

0:21:05.760 --> 0:21:08.480
<v Speaker 1>way he's doing business on the NBA side, what needs

0:21:08.520 --> 0:21:10.679
<v Speaker 1>to be in order before expansion, etc. That the W

0:21:10.880 --> 0:21:12.960
<v Speaker 1>does things a little differently. Now this might be in

0:21:12.960 --> 0:21:16.480
<v Speaker 1>part because the W has a very unique ownership structure.

0:21:16.840 --> 0:21:19.200
<v Speaker 1>And as we get into this next topic, I want

0:21:19.240 --> 0:21:21.760
<v Speaker 1>to get into it and do like an almost comically

0:21:21.800 --> 0:21:25.040
<v Speaker 1>accessible way. Some real explain it to me like I'm

0:21:25.080 --> 0:21:27.840
<v Speaker 1>five years old. Shit, because not just for me, I

0:21:27.840 --> 0:21:30.399
<v Speaker 1>think I am someone who definitely loves to skip the

0:21:30.440 --> 0:21:34.480
<v Speaker 1>math portion of assignments and isn't particularly interested in the

0:21:34.480 --> 0:21:36.320
<v Speaker 1>business side, which is why it's great that I got

0:21:36.359 --> 0:21:38.679
<v Speaker 1>into ownership and didn't know much about the place I

0:21:38.760 --> 0:21:41.240
<v Speaker 1>was investing in, which explains why a lot of things

0:21:41.280 --> 0:21:43.800
<v Speaker 1>went the way they did. But also just for listeners

0:21:43.800 --> 0:21:45.600
<v Speaker 1>who are maybe learning this stuff for the first time.

0:21:45.680 --> 0:21:49.240
<v Speaker 1>So when we talk about the WNBA and its ownership,

0:21:49.520 --> 0:21:55.240
<v Speaker 1>we've got the WNBA, the NBA, and an independent investor

0:21:55.240 --> 0:21:59.400
<v Speaker 1>group that are all three a part of this larger ownership.

0:21:59.560 --> 0:22:01.720
<v Speaker 1>So can you tell us, and you just recently wrote

0:22:01.720 --> 0:22:04.240
<v Speaker 1>a story about this, can you explain the three ownership

0:22:04.240 --> 0:22:08.320
<v Speaker 1>groups and how expansion and decision making affects them differently.

0:22:08.720 --> 0:22:11.960
<v Speaker 2>Yeah, you nailed it. Essentially. When the WNBA launched, it

0:22:12.040 --> 0:22:15.680
<v Speaker 2>was essentially fifty percent owned by the NBA, which put

0:22:15.760 --> 0:22:17.959
<v Speaker 2>up a lot of the money in the working capital

0:22:18.000 --> 0:22:20.119
<v Speaker 2>to get the league off the ground, and then the

0:22:20.160 --> 0:22:22.840
<v Speaker 2>other fifty percent of that equity pool was divvied up

0:22:22.840 --> 0:22:25.600
<v Speaker 2>among the owners. Some of them are NBA owners, some

0:22:25.640 --> 0:22:29.120
<v Speaker 2>of them are independent owners. And then three years ago,

0:22:29.200 --> 0:22:32.119
<v Speaker 2>I think twenty twenty two, they did a capital raise

0:22:32.200 --> 0:22:35.359
<v Speaker 2>from a group of and it's a who's who of

0:22:35.440 --> 0:22:37.840
<v Speaker 2>important people in sports. A lot of them are also

0:22:38.240 --> 0:22:42.200
<v Speaker 2>NBA owners, some of them are investors in sports. Nike

0:22:42.400 --> 0:22:44.080
<v Speaker 2>is one of them, right, So there's companies in there

0:22:44.119 --> 0:22:47.119
<v Speaker 2>as well. They raised a bunch of money. They sold

0:22:47.160 --> 0:22:50.520
<v Speaker 2>sixteen percent of the equity in the league, diluting both

0:22:50.520 --> 0:22:53.320
<v Speaker 2>the NBA portion and the owner's portion equally. So right now,

0:22:53.359 --> 0:22:56.000
<v Speaker 2>from my understanding, the NBA owns forty two percent of

0:22:56.000 --> 0:22:58.960
<v Speaker 2>the league. This investment group owned sixteen percent of the league,

0:22:59.320 --> 0:23:03.639
<v Speaker 2>and then the WNBA owners as a collective, own the

0:23:03.680 --> 0:23:06.720
<v Speaker 2>other forty two percent of the league. And interestingly, and

0:23:06.760 --> 0:23:11.119
<v Speaker 2>this surprised me when I heard it. When the W expands,

0:23:11.640 --> 0:23:14.719
<v Speaker 2>they are only diluting that forty two percent piece that

0:23:14.760 --> 0:23:17.240
<v Speaker 2>are owned by the owners. The NBA will continue to

0:23:17.280 --> 0:23:20.520
<v Speaker 2>own forty two percent, these investors will continue to own

0:23:20.600 --> 0:23:23.880
<v Speaker 2>sixteen percent, which is obviously different when the NFL. If

0:23:23.880 --> 0:23:26.720
<v Speaker 2>the NFL were ever to expand, owners would go from

0:23:26.720 --> 0:23:28.800
<v Speaker 2>having a thirty second of the slice to a thirty

0:23:28.800 --> 0:23:30.480
<v Speaker 2>third of the slice. Right, that's how most of the

0:23:30.560 --> 0:23:34.239
<v Speaker 2>leagues work. But because the equity structure in the W

0:23:34.760 --> 0:23:37.879
<v Speaker 2>is so different, and because of the way they raise money,

0:23:38.200 --> 0:23:41.639
<v Speaker 2>which was essentially to protect these people that gave the

0:23:41.720 --> 0:23:44.960
<v Speaker 2>money and and to protect them from dilution, yeah, you

0:23:45.080 --> 0:23:48.080
<v Speaker 2>end up with a world where the W going from

0:23:48.280 --> 0:23:51.280
<v Speaker 2>fourteen to sixteen or if it's ever a twenty, you're

0:23:51.280 --> 0:23:53.640
<v Speaker 2>not an owner owning one to twentieth of the league.

0:23:53.680 --> 0:23:56.120
<v Speaker 2>You're an owner owning way, way, way way less than that.

0:23:57.160 --> 0:24:00.719
<v Speaker 2>So when money comes into the league, for it's not

0:24:00.760 --> 0:24:02.879
<v Speaker 2>split thirty two ways like it is in other leagues.

0:24:02.880 --> 0:24:06.560
<v Speaker 2>The revenue sharing obviously is different because you have the

0:24:06.640 --> 0:24:08.760
<v Speaker 2>NBA sitting there, you have these other owners sitting there,

0:24:09.200 --> 0:24:13.280
<v Speaker 2>So it's definitely a more complex structure. I would imagine

0:24:13.280 --> 0:24:15.960
<v Speaker 2>some people of the WNBA would maybe have done things

0:24:15.960 --> 0:24:19.640
<v Speaker 2>a little bit differently in retrospect. But this was a league,

0:24:19.680 --> 0:24:21.600
<v Speaker 2>as you know, that spent twenty years kind of trying

0:24:21.600 --> 0:24:24.160
<v Speaker 2>to get a foothold and trying to kind of break

0:24:24.200 --> 0:24:26.800
<v Speaker 2>into both the thing that fans wanted to talk about

0:24:26.800 --> 0:24:29.600
<v Speaker 2>and fans wanted to pay to see. And the glow

0:24:29.680 --> 0:24:32.960
<v Speaker 2>up has happened very quickly, right, and some people in

0:24:33.000 --> 0:24:35.000
<v Speaker 2>the league would say, yeah, we knew this was happening

0:24:35.000 --> 0:24:36.800
<v Speaker 2>all along. I think some people were surprised by how

0:24:36.840 --> 0:24:37.400
<v Speaker 2>fast it took.

0:24:37.680 --> 0:24:40.239
<v Speaker 1>Well, it started out really strong, and then there was

0:24:40.280 --> 0:24:43.240
<v Speaker 1>some intention from some folks to vary it in ways

0:24:43.240 --> 0:24:45.679
<v Speaker 1>that really affected the numbers that it started out with.

0:24:45.760 --> 0:24:47.520
<v Speaker 1>I mean, it was huge when it started.

0:24:47.480 --> 0:24:49.520
<v Speaker 2>The first two years. The numbers are bonkers. You're right,

0:24:49.560 --> 0:24:53.160
<v Speaker 2>the attendance and viewership numbers are. We kind of always

0:24:53.160 --> 0:24:56.080
<v Speaker 2>have to remind ourselves here that when you see a

0:24:56.160 --> 0:24:58.920
<v Speaker 2>huge number from an attendance or a TV ratings, which

0:24:58.920 --> 0:25:02.359
<v Speaker 2>we just saw for the the opening game of the

0:25:02.400 --> 0:25:05.560
<v Speaker 2>Fever versus the Sky, Yeah, it's probably not a record

0:25:05.640 --> 0:25:08.080
<v Speaker 2>because there's probably a record from two thousand or nineteen

0:25:08.119 --> 0:25:10.760
<v Speaker 2>ninety seven or what right or a I did exactly? Yeah,

0:25:10.880 --> 0:25:13.760
<v Speaker 2>that that that that broke it. So, yeah, the first

0:25:13.840 --> 0:25:16.320
<v Speaker 2>couple of years, and I would say that despite the

0:25:16.359 --> 0:25:18.359
<v Speaker 2>fact that numbers may have been higher back then, the

0:25:18.440 --> 0:25:21.040
<v Speaker 2>league isn't a way healthier right business place right now? Yeah,

0:25:21.080 --> 0:25:23.359
<v Speaker 2>it's not a new novelty, it's a It is a

0:25:23.359 --> 0:25:25.400
<v Speaker 2>real thing that people really want to see and want

0:25:25.440 --> 0:25:28.680
<v Speaker 2>to watch, and that companies are finally coming around to.

0:25:28.840 --> 0:25:32.040
<v Speaker 1>Yeah, you mentioned that investment group. I was not a

0:25:32.080 --> 0:25:34.160
<v Speaker 1>part of that. I got invited and now I'm thinking,

0:25:34.240 --> 0:25:36.480
<v Speaker 1>what a bit a good time to get involved, but

0:25:36.920 --> 0:25:39.239
<v Speaker 1>a good investment I was. I was otherwise engaged with

0:25:39.280 --> 0:25:41.840
<v Speaker 1>the with the red Stars now color neutral Stars, and

0:25:42.800 --> 0:25:45.280
<v Speaker 1>you know you mentioned that group though coming in. One

0:25:45.280 --> 0:25:48.159
<v Speaker 1>of the things that's interesting about the Connecticut Sun ownership

0:25:48.200 --> 0:25:51.120
<v Speaker 1>is that there are teams that it feels like are

0:25:51.160 --> 0:25:54.159
<v Speaker 1>not capable of continuing on the pace that the league

0:25:54.200 --> 0:25:56.199
<v Speaker 1>is growing at. And that's one of them, right. The

0:25:56.240 --> 0:25:59.680
<v Speaker 1>size of the venue, the investment required, the practice facility

0:25:59.680 --> 0:26:01.120
<v Speaker 1>that we meet make fun of where kids are having

0:26:01.119 --> 0:26:04.560
<v Speaker 1>birthday parties while they're trying to practice for a playoff game, Like,

0:26:04.600 --> 0:26:07.920
<v Speaker 1>there's an inevitable growth that some people won't be able

0:26:07.920 --> 0:26:10.359
<v Speaker 1>to keep up with So that investment group was partly

0:26:10.440 --> 0:26:13.359
<v Speaker 1>to help shoulder the load and to carry things and

0:26:13.400 --> 0:26:17.840
<v Speaker 1>growth things while the original owners had invested years earlier

0:26:17.840 --> 0:26:19.440
<v Speaker 1>and were continuing to put a ton of money in.

0:26:19.720 --> 0:26:21.920
<v Speaker 1>Do you see that happening more across the league where

0:26:21.920 --> 0:26:24.240
<v Speaker 1>there will be old owners that either have to do

0:26:24.280 --> 0:26:26.160
<v Speaker 1>a capital race to bring in new folks to help,

0:26:26.320 --> 0:26:28.639
<v Speaker 1>or will choose to sell at this moment while the

0:26:28.720 --> 0:26:29.760
<v Speaker 1>league is blowing up.

0:26:30.560 --> 0:26:33.080
<v Speaker 2>Yes, I think it's a great question and a great point.

0:26:33.160 --> 0:26:36.600
<v Speaker 2>And this is the and the NWSL is going through

0:26:36.600 --> 0:26:38.480
<v Speaker 2>this in the same way, and it's just way more

0:26:38.840 --> 0:26:41.880
<v Speaker 2>further along because they have essentially turned over their entire

0:26:41.960 --> 0:26:44.960
<v Speaker 2>league from an ownership structure in the past five years.

0:26:45.400 --> 0:26:49.760
<v Speaker 2>But there's no question, as valuations sore, it's great for

0:26:49.960 --> 0:26:51.800
<v Speaker 2>all the older owners, but a lot of the older

0:26:51.800 --> 0:26:54.320
<v Speaker 2>owners bought into a league that was not this, didn't

0:26:54.359 --> 0:26:58.159
<v Speaker 2>have a forty million dollar practice facility requirement right, and

0:26:57.760 --> 0:27:02.440
<v Speaker 2>didn't whatever the new CB says, wasn't expecting suddenly salaries

0:27:02.480 --> 0:27:05.040
<v Speaker 2>to be at this point, And there's often a lot

0:27:05.080 --> 0:27:06.720
<v Speaker 2>of ten You see it in men's leagues too. MLS

0:27:06.720 --> 0:27:08.720
<v Speaker 2>has dealt with us for the last twenty years. There's

0:27:08.720 --> 0:27:11.360
<v Speaker 2>often a lot of tension between older owners who got

0:27:11.400 --> 0:27:13.359
<v Speaker 2>in at a very small price and have just have

0:27:13.640 --> 0:27:17.520
<v Speaker 2>gravy on their valuations glow up and no matter what,

0:27:17.520 --> 0:27:19.080
<v Speaker 2>they're making money and they don't feel they need to

0:27:19.080 --> 0:27:21.520
<v Speaker 2>spend a ton. And you have young owners who came

0:27:21.560 --> 0:27:25.520
<v Speaker 2>in recently paid the recent sticker price and they're like, look,

0:27:25.520 --> 0:27:28.240
<v Speaker 2>if I bought this team for an NWOSLF, I bought

0:27:28.240 --> 0:27:29.960
<v Speaker 2>this team for eighty million dollars or one hundred and

0:27:30.000 --> 0:27:32.640
<v Speaker 2>ten million dollars in San Diego, I want to make

0:27:32.720 --> 0:27:35.160
<v Speaker 2>that money back, right I. I Am not going from

0:27:35.160 --> 0:27:36.720
<v Speaker 2>one million to a hundred million. I'm going from one

0:27:36.760 --> 0:27:39.080
<v Speaker 2>hundred million to whatever it looks like next. So there's

0:27:39.080 --> 0:27:42.080
<v Speaker 2>definitely tension in ownership groups. And yeah, I think both

0:27:42.119 --> 0:27:45.360
<v Speaker 2>these leagues are are looking to turn over. The owners

0:27:45.400 --> 0:27:48.280
<v Speaker 2>that look at a forty million dollar practice facility and

0:27:48.320 --> 0:27:50.760
<v Speaker 2>don't say, heck, yeah, I want to do that right now,

0:27:50.920 --> 0:27:53.320
<v Speaker 2>say I'm not sure if that's in the budget or

0:27:53.800 --> 0:27:55.439
<v Speaker 2>that's yeah, I'm not sure if we want to do that.

0:27:56.240 --> 0:28:02.880
<v Speaker 2>So the WNWSL, very of the situation players have been

0:28:02.880 --> 0:28:05.640
<v Speaker 2>in the past, they're very aware that the fans care

0:28:05.720 --> 0:28:09.600
<v Speaker 2>about it, because that's not true in every league WNBA

0:28:09.640 --> 0:28:12.560
<v Speaker 2>and really care about the way players are treated. And

0:28:12.600 --> 0:28:15.680
<v Speaker 2>it's going to impact the w labor talks for sure,

0:28:15.920 --> 0:28:19.560
<v Speaker 2>just like it impacted the NWSL ones last year. But

0:28:19.680 --> 0:28:24.720
<v Speaker 2>all of that comes together to say, yeah, absolutely WNBA owners,

0:28:24.720 --> 0:28:27.280
<v Speaker 2>some of them would like nothing more than to have

0:28:27.359 --> 0:28:29.520
<v Speaker 2>a whole bunch of deep pocketed owners who bought it

0:28:29.600 --> 0:28:33.080
<v Speaker 2>at high prices and really want to make that league

0:28:33.320 --> 0:28:36.119
<v Speaker 2>soar in all the ways, as opposed to having this

0:28:36.200 --> 0:28:38.360
<v Speaker 2>mix of people who came in at high prices, or

0:28:38.360 --> 0:28:41.280
<v Speaker 2>people who bought these teams for thirty years ago for

0:28:41.320 --> 0:28:44.160
<v Speaker 2>five hundred thousand dollars and they've lost a lot of

0:28:44.160 --> 0:28:45.719
<v Speaker 2>money in the past twenty years and are just kind

0:28:45.720 --> 0:28:47.360
<v Speaker 2>of trying to get their money back out of that

0:28:47.480 --> 0:28:50.640
<v Speaker 2>and capture the appreciation as it happens. So there's a

0:28:50.680 --> 0:28:54.640
<v Speaker 2>really interesting dynamic there, which again exists in MLS less

0:28:54.640 --> 0:28:57.240
<v Speaker 2>so I think in other leagues, just because valuations have

0:28:57.280 --> 0:28:59.680
<v Speaker 2>been so high for a while. But certainly something that's

0:28:59.680 --> 0:29:02.360
<v Speaker 2>happening at the w level and certainly something that happened

0:29:02.400 --> 0:29:05.160
<v Speaker 2>at the NWSL level for the past five years.

0:29:05.440 --> 0:29:09.760
<v Speaker 1>You mentioned valuations. Let's talk about it pro sports team valuations.

0:29:10.040 --> 0:29:12.920
<v Speaker 1>Let's start with the basics of like what goes into

0:29:13.400 --> 0:29:16.000
<v Speaker 1>when you see that team is worth X million dollars?

0:29:16.200 --> 0:29:17.920
<v Speaker 1>What are they using to calculate that?

0:29:18.440 --> 0:29:22.080
<v Speaker 2>Yeah, it's it's part of it is science, right, and

0:29:22.240 --> 0:29:24.000
<v Speaker 2>is like looking at a P and L sheet and

0:29:24.040 --> 0:29:26.240
<v Speaker 2>seeing how many season ticket holders do they have, how

0:29:26.280 --> 0:29:28.840
<v Speaker 2>long are those contracts, what does their local media deal

0:29:28.920 --> 0:29:31.360
<v Speaker 2>look like, what does the national media deal look like

0:29:31.400 --> 0:29:33.440
<v Speaker 2>for the league? And what shared does the team get.

0:29:33.520 --> 0:29:36.280
<v Speaker 2>Some of it is that, and then some of it

0:29:36.360 --> 0:29:40.760
<v Speaker 2>is kind of this more ephemeral idea of how many

0:29:40.760 --> 0:29:43.480
<v Speaker 2>people want to own these teams and when one hits

0:29:43.480 --> 0:29:45.560
<v Speaker 2>the market, how rare is it and how much kind

0:29:45.600 --> 0:29:48.840
<v Speaker 2>of how much ego is involved in it, and and

0:29:49.800 --> 0:29:52.440
<v Speaker 2>how many teams are their period because they're scarcity value

0:29:52.480 --> 0:29:56.160
<v Speaker 2>involved in all these leagues. So at Sportco we do

0:29:56.240 --> 0:29:59.440
<v Speaker 2>these valuations and we like to say it's like part art,

0:29:59.520 --> 0:30:02.400
<v Speaker 2>part science, and the science part in some ways is

0:30:02.400 --> 0:30:04.400
<v Speaker 2>the easier part because you do have a sense of

0:30:04.400 --> 0:30:07.800
<v Speaker 2>what these teams are making and what the economics look like.

0:30:08.200 --> 0:30:10.080
<v Speaker 2>Kind of the harder part is is that is that

0:30:10.160 --> 0:30:14.240
<v Speaker 2>other stuff? It's that it's the the w and NWS

0:30:14.280 --> 0:30:16.200
<v Speaker 2>are hot right now right, and when one one team

0:30:16.200 --> 0:30:18.400
<v Speaker 2>goes for sales, it's okay, great there, I may not

0:30:18.480 --> 0:30:20.880
<v Speaker 2>have an opportunity to get into this league for another

0:30:20.920 --> 0:30:23.080
<v Speaker 2>three years, or when I do have an opportunity again,

0:30:23.160 --> 0:30:25.719
<v Speaker 2>the price may be five x now because they've ten

0:30:25.880 --> 0:30:27.800
<v Speaker 2>x in the past, uh in the in the past

0:30:27.840 --> 0:30:31.040
<v Speaker 2>two years. That stuff is is a little bit harder.

0:30:31.880 --> 0:30:34.080
<v Speaker 2>But the biggest thing that helps us in our valuations

0:30:34.120 --> 0:30:35.640
<v Speaker 2>is that every time a team sells and we know

0:30:35.680 --> 0:30:38.480
<v Speaker 2>the price, we have a new data point. So every

0:30:38.480 --> 0:30:40.160
<v Speaker 2>time there's a new sale, you now have like an

0:30:40.200 --> 0:30:43.120
<v Speaker 2>anchor price with which to kind of hinge every team

0:30:43.160 --> 0:30:46.000
<v Speaker 2>above and below it on in some kind of way.

0:30:46.480 --> 0:30:48.600
<v Speaker 2>So yeah, all of that, I guess to say that

0:30:48.840 --> 0:30:51.840
<v Speaker 2>leagues like the NWSL actually quite easy to value because

0:30:51.840 --> 0:30:55.000
<v Speaker 2>every team sells. So again, every team is sold in

0:30:55.040 --> 0:30:57.760
<v Speaker 2>the past, in the past five years, so so every

0:30:57.760 --> 0:30:59.760
<v Speaker 2>time that happens, it's like, okay, great, we can now it.

0:30:59.840 --> 0:31:00.840
<v Speaker 2>Just all these numbers.

0:31:00.640 --> 0:31:05.280
<v Speaker 1>Accordingly, so evaluation. You mentioned most of these, but revenue streams,

0:31:05.320 --> 0:31:10.120
<v Speaker 1>so that's media rights, licensing, merchandise, tickets, corporate sponsorships, market

0:31:10.160 --> 0:31:12.600
<v Speaker 1>size comes into play. How much growth could they have

0:31:12.680 --> 0:31:15.000
<v Speaker 1>based on where they are? Brand value, how do people

0:31:15.080 --> 0:31:20.480
<v Speaker 1>know their logo, their stuff, whatever, assets, stadium facilities, intellectual property.

0:31:20.480 --> 0:31:22.080
<v Speaker 1>That comes into play to what do they own? What

0:31:22.120 --> 0:31:24.840
<v Speaker 1>do they already have built? So we kind of get that.

0:31:24.840 --> 0:31:27.920
<v Speaker 1>That makes sense to me. Where I get lost sometimes

0:31:27.920 --> 0:31:30.080
<v Speaker 1>and you kind of articulated a little bit you started

0:31:30.240 --> 0:31:34.960
<v Speaker 1>is the relationship between valuation and revenue and how we

0:31:35.040 --> 0:31:39.280
<v Speaker 1>can have leagues and teams losing money valued in the

0:31:39.400 --> 0:31:42.960
<v Speaker 1>hundreds of millions of dollars. And I think the scarcity,

0:31:43.280 --> 0:31:45.080
<v Speaker 1>the vibes, all of that is part of it. But

0:31:45.120 --> 0:31:47.680
<v Speaker 1>can you walk us through that because it is sort

0:31:47.720 --> 0:31:52.000
<v Speaker 1>of fascinating to me, And the lack of transparency, especially

0:31:52.000 --> 0:31:55.160
<v Speaker 1>in the WNBA in terms of financials, makes it very

0:31:55.160 --> 0:31:57.160
<v Speaker 1>hard to argue with people who are like, look at

0:31:57.160 --> 0:31:59.400
<v Speaker 1>how much money they lose every year, and you want

0:31:59.440 --> 0:32:02.240
<v Speaker 1>to be like, look at how valuable they are, and

0:32:02.280 --> 0:32:05.000
<v Speaker 1>you're like, how do those go together? And how do

0:32:05.040 --> 0:32:08.840
<v Speaker 1>you have a thoughtful and smart conversation about why you

0:32:08.840 --> 0:32:10.840
<v Speaker 1>could lose money and still be very valuable.

0:32:11.240 --> 0:32:15.240
<v Speaker 2>You're totally right, and American business, business worldwide is littered

0:32:15.320 --> 0:32:18.160
<v Speaker 2>with companies like this, right, Uber lost money forever, right,

0:32:18.320 --> 0:32:22.200
<v Speaker 2>Draft Cacks, Netflix. Right, there's a very and a lot

0:32:22.240 --> 0:32:24.200
<v Speaker 2>of people who give you that argument that, oh, we

0:32:24.280 --> 0:32:27.320
<v Speaker 2>lose money are doing that knowing that they're kind of

0:32:27.440 --> 0:32:31.000
<v Speaker 2>it's smoking mirrors to a degree, right, because yeah, if

0:32:31.040 --> 0:32:33.640
<v Speaker 2>your team pick an NWSLF team goes from two million

0:32:33.680 --> 0:32:37.240
<v Speaker 2>dollars to one hundred million dollars of net worth in

0:32:37.240 --> 0:32:41.400
<v Speaker 2>in in five years, right of valuation. Yeah, that's ten

0:32:41.480 --> 0:32:44.400
<v Speaker 2>years of ten million dollar losses operating losses every year, right,

0:32:44.520 --> 0:32:46.880
<v Speaker 2>just captured in that appreciation. So a lot of people

0:32:46.880 --> 0:32:50.200
<v Speaker 2>who make that argument, I think are know what they're doing, right,

0:32:50.240 --> 0:32:52.640
<v Speaker 2>and are trying to kind of rhetorically shift the conversation.

0:32:53.240 --> 0:32:54.880
<v Speaker 2>I think the other side of that is that the

0:32:55.280 --> 0:32:58.040
<v Speaker 2>NBA has lost a lot of money on the w

0:32:58.280 --> 0:33:01.240
<v Speaker 2>in the past thirty twenty five thirty years, Right, It's

0:33:01.600 --> 0:33:04.800
<v Speaker 2>hundreds of millions of dollars. But yeah, I think the

0:33:04.840 --> 0:33:07.480
<v Speaker 2>easy answer is, like some of this is just sports economics.

0:33:07.760 --> 0:33:11.320
<v Speaker 2>Manchester United loses money. It's one of the most valuable

0:33:11.320 --> 0:33:14.760
<v Speaker 2>sports teams in the world. It's worth four or five,

0:33:14.920 --> 0:33:16.720
<v Speaker 2>six billion, whatever you want to call it. It's worth

0:33:16.720 --> 0:33:21.720
<v Speaker 2>billions of dollars. Yeah, that team loses money. Angel City,

0:33:21.920 --> 0:33:24.480
<v Speaker 2>the most valuable NWSEL team, loses a lot of money

0:33:24.520 --> 0:33:26.280
<v Speaker 2>a year. This is the thing that maybe scares me

0:33:26.360 --> 0:33:30.040
<v Speaker 2>about Nwoslifi was an investor, is like, this team is

0:33:30.120 --> 0:33:32.720
<v Speaker 2>like the paragon business wise. Everybody points to them. They're

0:33:32.720 --> 0:33:35.960
<v Speaker 2>super valuable, even they're not making money, right, They're making

0:33:36.120 --> 0:33:38.320
<v Speaker 2>so much in revenue, but they're also spending so much.

0:33:39.360 --> 0:33:41.440
<v Speaker 1>But you just said that about Manchester United. Are you

0:33:41.440 --> 0:33:42.120
<v Speaker 1>worried about them?

0:33:42.840 --> 0:33:46.800
<v Speaker 2>Honestly? Yeah, I think the economics of European soccer for

0:33:46.840 --> 0:33:49.840
<v Speaker 2>an investor terrifying. There's no cap on pay right right?

0:33:49.880 --> 0:33:51.960
<v Speaker 1>So do you think there could be a bubble burst?

0:33:52.200 --> 0:33:54.480
<v Speaker 1>Because it feels to me and this is something I

0:33:54.520 --> 0:33:56.880
<v Speaker 1>said ten years ago. I think at ESPN they did

0:33:56.880 --> 0:33:59.200
<v Speaker 1>a survey of like would what's a good idea you

0:33:59.240 --> 0:34:00.840
<v Speaker 1>think someone should do it? Deep dive on? And I

0:34:00.920 --> 0:34:03.160
<v Speaker 1>was like, will the bubble ever burst? Like how is

0:34:03.200 --> 0:34:05.800
<v Speaker 1>it possible that it's the only market that seems to

0:34:06.040 --> 0:34:08.879
<v Speaker 1>grow exponentially every single year?

0:34:09.239 --> 0:34:11.480
<v Speaker 2>Yeah, I think there's I've been saying a resets coming

0:34:11.520 --> 0:34:13.120
<v Speaker 2>for a while. I wrote a column last year called

0:34:13.160 --> 0:34:16.040
<v Speaker 2>Divest from Sports that a lot of people criticize me

0:34:16.080 --> 0:34:19.880
<v Speaker 2>for yeah, the changes in media are the big thing

0:34:19.920 --> 0:34:22.120
<v Speaker 2>that I would point to, right, that's so much of

0:34:22.280 --> 0:34:25.719
<v Speaker 2>and in a way kind of the w and NWSL

0:34:25.920 --> 0:34:29.080
<v Speaker 2>are not. They're valued on something that's more than just

0:34:29.120 --> 0:34:31.279
<v Speaker 2>the media, whereas, like you look at the NFL, like

0:34:31.480 --> 0:34:35.120
<v Speaker 2>the media deals are are the central thing. But the

0:34:35.120 --> 0:34:37.799
<v Speaker 2>way that local media is changing, and a lot of

0:34:37.840 --> 0:34:41.520
<v Speaker 2>teams in baseball and in the NBA and the NHL

0:34:41.600 --> 0:34:44.319
<v Speaker 2>are cashing a much smaller local media check than they were,

0:34:44.400 --> 0:34:46.840
<v Speaker 2>and who knows what that looks like. And then the

0:34:46.960 --> 0:34:49.399
<v Speaker 2>layer on top of that the fact that every league

0:34:49.480 --> 0:34:53.440
<v Speaker 2>now is talking increasingly with Amazon and Netflix and Apple,

0:34:54.080 --> 0:34:57.640
<v Speaker 2>and in ten years when they are the bidders and

0:34:58.280 --> 0:35:02.400
<v Speaker 2>the local traditional broadcast cable networks are doing less of

0:35:02.440 --> 0:35:05.320
<v Speaker 2>the bidding. That would really scare me if I'm a league,

0:35:05.360 --> 0:35:08.839
<v Speaker 2>because Amazon doesn't need the NFL and Netflix doesn't need

0:35:08.840 --> 0:35:12.520
<v Speaker 2>the NFL, Fox needs the NFL, CBS needs the NFL.

0:35:13.719 --> 0:35:15.799
<v Speaker 2>The companies that used to bid for sports rights the

0:35:15.840 --> 0:35:19.560
<v Speaker 2>big deals were companies that they're essentially livelihood depended on

0:35:19.600 --> 0:35:23.040
<v Speaker 2>them getting these deals. We wrote something a number of

0:35:23.120 --> 0:35:26.440
<v Speaker 2>years ago, right after the previous NFL deals were signed,

0:35:26.560 --> 0:35:29.279
<v Speaker 2>someone at Fox told us my priority the day after

0:35:29.320 --> 0:35:31.759
<v Speaker 2>these deals are signed, are extending my NFL deal in

0:35:31.960 --> 0:35:36.600
<v Speaker 2>eight years, right, Like, that's still my priority. There's no rest. Yeah,

0:35:36.800 --> 0:35:39.960
<v Speaker 2>but when you're talking to Apple and Amazon, these companies

0:35:39.960 --> 0:35:42.160
<v Speaker 2>don't need you, right, and that gives them a leverage

0:35:42.160 --> 0:35:45.520
<v Speaker 2>at the negotiating table that kind of flips the dynamic

0:35:45.560 --> 0:35:48.759
<v Speaker 2>a bit. So Yeah, I am I bullish on sports

0:35:48.760 --> 0:35:52.240
<v Speaker 2>team valuations long term. I honestly I'm not again because

0:35:52.280 --> 0:35:54.600
<v Speaker 2>I think that there's a root awakening coming for one

0:35:54.600 --> 0:35:55.920
<v Speaker 2>of the biggest revenue streams.

0:35:56.280 --> 0:35:59.120
<v Speaker 1>It's complicated because everything you just said is accurate, and

0:35:59.239 --> 0:36:02.160
<v Speaker 1>also when we have a divided attention where almost nothing

0:36:02.200 --> 0:36:06.000
<v Speaker 1>has brand recognition anymore because there's eight thousand pieces of content.

0:36:06.440 --> 0:36:09.240
<v Speaker 1>The few things we do rally around watch live care about,

0:36:09.680 --> 0:36:12.759
<v Speaker 1>sit through the commercials for our sportsndred percent and so

0:36:12.800 --> 0:36:16.200
<v Speaker 1>it has this elevated presence in a much more bifurcated landscape.

0:36:16.200 --> 0:36:19.480
<v Speaker 1>But it also is, you know, still affected by all

0:36:19.520 --> 0:36:21.080
<v Speaker 1>the changes that you just mentioned.

0:36:20.800 --> 0:36:24.320
<v Speaker 2>And there's scarcity, just real quick, They're scarcity. So there

0:36:24.360 --> 0:36:27.400
<v Speaker 2>may be thirty four NFL teams in twenty years, but

0:36:27.480 --> 0:36:30.040
<v Speaker 2>there's probably going to be thirty two maximum there's going

0:36:30.080 --> 0:36:31.799
<v Speaker 2>to be thirty six, right, Like, we're not going to

0:36:31.840 --> 0:36:35.080
<v Speaker 2>create a ton more of these things and for the

0:36:35.120 --> 0:36:38.120
<v Speaker 2>men's side, and that really that drives it, right that

0:36:38.120 --> 0:36:39.839
<v Speaker 2>that is one of the things the NFL has going

0:36:39.880 --> 0:36:41.800
<v Speaker 2>for it is that there's you can't just create a

0:36:41.800 --> 0:36:44.280
<v Speaker 2>football team and eventually hope to be the Dallas Cowboys.

0:36:45.960 --> 0:36:48.040
<v Speaker 2>We know what they are and they only sell once

0:36:48.040 --> 0:36:50.239
<v Speaker 2>every five years. And that's the thing.

0:36:50.640 --> 0:36:54.440
<v Speaker 1>Yeah, Okay, so couple follow ups for you. And this

0:36:54.520 --> 0:36:56.160
<v Speaker 1>might be a dumb question, but I did tell you

0:36:56.200 --> 0:36:58.680
<v Speaker 1>I prefer to skip the math portion of the assignment

0:36:58.719 --> 0:37:02.120
<v Speaker 1>as often as possible. So, if the teams are losing

0:37:02.160 --> 0:37:04.799
<v Speaker 1>millions of dollars every year, and they have been for

0:37:04.880 --> 0:37:07.879
<v Speaker 1>some time, how are they operating? How do you pay

0:37:07.880 --> 0:37:09.759
<v Speaker 1>your bills? How do you pay your employees? How do

0:37:09.800 --> 0:37:12.239
<v Speaker 1>you So they're just it's like the US government, We're

0:37:12.280 --> 0:37:14.640
<v Speaker 1>just incurring debt until we like, do we have a

0:37:14.640 --> 0:37:15.280
<v Speaker 1>clock somewhere?

0:37:15.280 --> 0:37:19.560
<v Speaker 2>For women's sports, most teams are not just like occruing

0:37:19.560 --> 0:37:22.839
<v Speaker 2>this in debt. Most teams are just paying the losses, right.

0:37:22.880 --> 0:37:24.560
<v Speaker 2>I think I think if you were to ask anyone

0:37:24.600 --> 0:37:29.520
<v Speaker 2>who's buying into an NWSL team now, yeah, they're thinking about, yeah,

0:37:29.719 --> 0:37:31.880
<v Speaker 2>I know, I'm going to lose X million dollars a

0:37:32.000 --> 0:37:34.440
<v Speaker 2>year hopefully for the next five years and not the

0:37:34.440 --> 0:37:37.200
<v Speaker 2>next thirty five years. But they understand that there are

0:37:37.280 --> 0:37:39.160
<v Speaker 2>losses associated.

0:37:39.400 --> 0:37:42.399
<v Speaker 1>So it's essentially another investment, but not an investment because

0:37:42.440 --> 0:37:44.200
<v Speaker 1>it's gone immediately to pay off.

0:37:44.320 --> 0:37:46.720
<v Speaker 2>Yes, and as we said, if things continue to grow

0:37:47.040 --> 0:37:49.279
<v Speaker 2>valuation wise for these women's leagues, these owners are going

0:37:49.320 --> 0:37:51.440
<v Speaker 2>to get their money back. Right. The five million or

0:37:51.440 --> 0:37:53.480
<v Speaker 2>ten million dollar annual loss is going to kind of

0:37:53.640 --> 0:37:57.600
<v Speaker 2>wash out in the the LP stake that you can

0:37:57.640 --> 0:37:59.680
<v Speaker 2>sell or when you sell the team in the future.

0:38:01.360 --> 0:38:03.480
<v Speaker 1>And this is why it's so important and perhaps why

0:38:03.520 --> 0:38:06.320
<v Speaker 1>the NWSL and it was criticized at the time and

0:38:06.360 --> 0:38:08.560
<v Speaker 1>part because it pushed out a lot of women that

0:38:08.600 --> 0:38:11.279
<v Speaker 1>were interested in ownership. But they changed their policy and

0:38:11.520 --> 0:38:13.960
<v Speaker 1>required that the majority owner be able to shoulder all

0:38:14.000 --> 0:38:17.440
<v Speaker 1>of the financial load buying a new team, and that

0:38:17.440 --> 0:38:20.279
<v Speaker 1>they had to be a billionaire, which is like, we're

0:38:20.320 --> 0:38:23.280
<v Speaker 1>down to like Oprah, whichever jen or is currently selling

0:38:23.280 --> 0:38:26.719
<v Speaker 1>a lip kit from then life on, that's really it, right,

0:38:27.440 --> 0:38:29.399
<v Speaker 1>And so that sucked when there were groups of women

0:38:29.400 --> 0:38:32.160
<v Speaker 1>who wanted to come into ownership and operate the way

0:38:32.200 --> 0:38:36.080
<v Speaker 1>that women's sports have promised and want to instead of

0:38:36.120 --> 0:38:39.120
<v Speaker 1>it always being dependent on one super rich dude and

0:38:39.160 --> 0:38:42.239
<v Speaker 1>the culture and toxicity that sometimes follows. But you also

0:38:42.320 --> 0:38:44.880
<v Speaker 1>understand why they do that because essentially, not only do

0:38:44.880 --> 0:38:46.080
<v Speaker 1>you have to have enough to buy it, but you

0:38:46.120 --> 0:38:49.120
<v Speaker 1>have to have enough to keep pouring in when you're

0:38:49.120 --> 0:38:52.400
<v Speaker 1>not making anything back year after year for the foreseeable future.

0:38:52.680 --> 0:38:55.360
<v Speaker 2>We had an interesting conversation with Jess Berman, the NWSL

0:38:55.360 --> 0:38:59.160
<v Speaker 2>commissioner after Sixth Street bought the essentially was the control

0:38:59.200 --> 0:39:03.440
<v Speaker 2>owner of the the Bay Area expansion team, and asking

0:39:03.440 --> 0:39:06.279
<v Speaker 2>some of these questions about why are you comfortable with

0:39:06.320 --> 0:39:09.640
<v Speaker 2>a kind of nameless, faceless institutional fund as the person

0:39:10.840 --> 0:39:13.239
<v Speaker 2>and her What she said is that they basically put

0:39:13.239 --> 0:39:15.800
<v Speaker 2>in guardrails to make six Street more like a person,

0:39:16.360 --> 0:39:18.799
<v Speaker 2>and they wanted Alan Waxman, who runs Sixth Street, they

0:39:18.840 --> 0:39:21.040
<v Speaker 2>wanted him sitting on the board, and they wanted him

0:39:21.239 --> 0:39:24.759
<v Speaker 2>personally tied to the money decisions so that instead of

0:39:24.960 --> 0:39:27.000
<v Speaker 2>if something were to if COVID were to happen again

0:39:27.120 --> 0:39:29.239
<v Speaker 2>and suddenly like the league shuts down for a year

0:39:29.760 --> 0:39:32.319
<v Speaker 2>and now every owner has to there's capital calls and

0:39:32.400 --> 0:39:34.640
<v Speaker 2>every owner has to put in twenty million of their

0:39:34.680 --> 0:39:36.480
<v Speaker 2>own money just to float the league to the next year.

0:39:37.440 --> 0:39:40.000
<v Speaker 2>That that's a one person's decision. That's Allen's decision. That's

0:39:40.000 --> 0:39:42.759
<v Speaker 2>not the cow fund that at Sixth Street kind of

0:39:42.760 --> 0:39:45.200
<v Speaker 2>deciding as a board to make those decisions. So in

0:39:45.200 --> 0:39:47.880
<v Speaker 2>some ways, yeah, they are treating some of these institutional

0:39:47.920 --> 0:39:50.840
<v Speaker 2>funds like individuals for a lot of the reasons that

0:39:50.840 --> 0:39:52.200
<v Speaker 2>that that that you're talking about.

0:39:53.120 --> 0:39:56.640
<v Speaker 1>It's like the corporate personhood argument totally. And that is

0:39:57.200 --> 0:40:03.360
<v Speaker 1>super PA.

0:40:00.760 --> 0:40:03.879
<v Speaker 2>And you mentioned earlier the kind of the rhetoric around

0:40:03.920 --> 0:40:05.719
<v Speaker 2>losing money. It's one of the main things that a

0:40:05.719 --> 0:40:08.200
<v Speaker 2>lot of these groups use in their labor talks, right

0:40:08.239 --> 0:40:11.120
<v Speaker 2>and it's central in the NBA labor talks right now.

0:40:11.960 --> 0:40:13.960
<v Speaker 1>But right so, I want that was one of my

0:40:14.000 --> 0:40:17.320
<v Speaker 1>other follow ups is when Adam Silver talks about losing

0:40:17.360 --> 0:40:20.279
<v Speaker 1>money publicly in a way that most other leagues, like

0:40:20.320 --> 0:40:23.680
<v Speaker 1>the MLS otherwise won't offer up. Is he doing that

0:40:24.800 --> 0:40:28.680
<v Speaker 1>to be intentional about lowering their costs and getting leverage,

0:40:28.680 --> 0:40:31.279
<v Speaker 1>but also doesn't it hurt the product he's ultimately trying

0:40:31.320 --> 0:40:31.719
<v Speaker 1>to sell.

0:40:32.120 --> 0:40:35.200
<v Speaker 2>I think it's maybe a little bit of both. The

0:40:35.360 --> 0:40:37.520
<v Speaker 2>w is slightly. As I said, it's kind of a

0:40:37.560 --> 0:40:40.399
<v Speaker 2>different situation that the NBA has like really lost money, right,

0:40:40.440 --> 0:40:43.080
<v Speaker 2>They've really lost money, and their owners, the ones who

0:40:43.160 --> 0:40:45.400
<v Speaker 2>owned teams, have really made money from at least from

0:40:45.440 --> 0:40:48.600
<v Speaker 2>evaluation standpoint, in the last few years, right. And I

0:40:48.640 --> 0:40:51.480
<v Speaker 2>think the W is in this place where things are

0:40:51.520 --> 0:40:53.680
<v Speaker 2>really strong right now. I think a lot of fans

0:40:54.320 --> 0:40:57.280
<v Speaker 2>think it stronger than it is financially. And the opposite

0:40:57.320 --> 0:40:59.759
<v Speaker 2>is also true that like the rhetoric around the way

0:41:00.400 --> 0:41:02.879
<v Speaker 2>some NBA owners talk about what they've lost, et cetera,

0:41:03.000 --> 0:41:05.760
<v Speaker 2>is maybe underselling just how strong things are right now.

0:41:06.080 --> 0:41:08.360
<v Speaker 2>And this is what all labor negotiations are. It's like

0:41:08.360 --> 0:41:09.960
<v Speaker 2>trying to meet in the middle, right and trying to

0:41:09.960 --> 0:41:12.600
<v Speaker 2>figure out And someone told me once that that basically

0:41:12.680 --> 0:41:14.600
<v Speaker 2>all of these labor talks you basically know where they're

0:41:14.600 --> 0:41:17.400
<v Speaker 2>gonna end the minute you start, and sometimes they take years,

0:41:17.480 --> 0:41:20.520
<v Speaker 2>and sometimes you lose preseason games or you lose parts

0:41:20.520 --> 0:41:23.040
<v Speaker 2>of seasons, and it like kind of ends up roughly

0:41:23.040 --> 0:41:26.040
<v Speaker 2>in the middle. So I yeah, my feeling on the

0:41:26.200 --> 0:41:29.160
<v Speaker 2>W labor is that like they're gonna get players are

0:41:29.160 --> 0:41:31.480
<v Speaker 2>gonna get a great deal, everyone's gonna get paid a lot,

0:41:31.520 --> 0:41:34.640
<v Speaker 2>a lot more, which they very much deserve. It's going

0:41:34.719 --> 0:41:36.399
<v Speaker 2>to be less than what players I think probably think

0:41:36.400 --> 0:41:38.279
<v Speaker 2>they want or what they deserve right now. It's going

0:41:38.320 --> 0:41:40.640
<v Speaker 2>to be more than what the league right now wants

0:41:40.680 --> 0:41:42.719
<v Speaker 2>to give them, I think. But they're gonna meet in

0:41:42.800 --> 0:41:45.880
<v Speaker 2>the middle, and I think they're gonna do so because

0:41:45.880 --> 0:41:48.279
<v Speaker 2>this is just such a moment, right and it would

0:41:48.320 --> 0:41:52.440
<v Speaker 2>be such a catastrophic shame and also business mailpractice, I think,

0:41:52.760 --> 0:41:56.799
<v Speaker 2>to lose games at this moment when nobody is there's

0:41:56.840 --> 0:41:59.719
<v Speaker 2>never been more talk and more conversation about the league.

0:42:00.040 --> 0:42:02.960
<v Speaker 2>I will say that within that context, WNBA players have

0:42:03.000 --> 0:42:06.600
<v Speaker 2>more leverage and more power than any modern men's union.

0:42:07.040 --> 0:42:09.680
<v Speaker 1>Why are the valuations in the NWSL so much higher

0:42:09.719 --> 0:42:12.640
<v Speaker 1>than the WNBA Angel cities at two hundred and fifty million,

0:42:12.920 --> 0:42:14.920
<v Speaker 1>the aces I think are the current highest at one

0:42:15.000 --> 0:42:17.759
<v Speaker 1>hundred and forty million. What contributes to that?

0:42:18.120 --> 0:42:19.719
<v Speaker 2>I think there's a few things. I think we've talked

0:42:19.760 --> 0:42:21.920
<v Speaker 2>about some of them. One, the equity structure of the

0:42:22.000 --> 0:42:25.719
<v Speaker 2>WNBA is different than it is in NWSL, so I

0:42:26.080 --> 0:42:29.280
<v Speaker 2>think that's one. I think, in some kind of long

0:42:29.440 --> 0:42:33.600
<v Speaker 2>term tail, if both these leagues become insanely popular. Let's

0:42:33.600 --> 0:42:36.200
<v Speaker 2>say the fan base doubles in the next five years.

0:42:37.280 --> 0:42:40.120
<v Speaker 2>The WNBA teams are going to be playing in fifteen

0:42:40.160 --> 0:42:43.120
<v Speaker 2>thousand seed venues, right. NWSL teams can play in way

0:42:43.120 --> 0:42:45.920
<v Speaker 2>bigger venues, Right, So there's upside economics. I think they're

0:42:46.880 --> 0:42:50.879
<v Speaker 2>to a degree. I think the NWSL's getting through its

0:42:51.160 --> 0:42:55.560
<v Speaker 2>its labor talks and also a totally different structure than

0:42:55.600 --> 0:42:58.760
<v Speaker 2>we've seen in any other major American sport at all,

0:42:58.880 --> 0:43:01.560
<v Speaker 2>but of hewing its way more towards the way that

0:43:01.560 --> 0:43:04.840
<v Speaker 2>that labor exists in European soccer, both men's and women's.

0:43:05.719 --> 0:43:07.480
<v Speaker 2>I think that's a big opportunity.

0:43:07.000 --> 0:43:08.759
<v Speaker 1>Getting rid of the draft, putting themselves on.

0:43:10.080 --> 0:43:12.480
<v Speaker 2>Yeah, I think all that stuff I think gives gives

0:43:12.480 --> 0:43:15.239
<v Speaker 2>a lot of upside. I wouldn't be shocked to see

0:43:15.239 --> 0:43:17.839
<v Speaker 2>the w NBA numbers continue to tick up. And who

0:43:17.840 --> 0:43:19.719
<v Speaker 2>knows it is? It is funny to me. I've talked

0:43:19.760 --> 0:43:21.680
<v Speaker 2>to it Kurt, who does our valuations about this that

0:43:22.120 --> 0:43:24.320
<v Speaker 2>for a while they were like basically the same numbers.

0:43:24.760 --> 0:43:27.640
<v Speaker 2>You could like interlace the NWSL and the w NBA

0:43:27.840 --> 0:43:29.359
<v Speaker 2>like this, And I was like, that doesn't like all

0:43:29.360 --> 0:43:31.239
<v Speaker 2>they have in common is that they're just women's leagues, like,

0:43:31.320 --> 0:43:34.000
<v Speaker 2>doesn't doesn't make sense that they're basically all worth the same.

0:43:34.239 --> 0:43:38.279
<v Speaker 2>And you're right that the NWSL has has ticked upwards. Yeah, again,

0:43:38.320 --> 0:43:40.759
<v Speaker 2>I also think that if in a world where like

0:43:40.840 --> 0:43:44.719
<v Speaker 2>the NWSL, the W NBA ownership turns over and it

0:43:45.120 --> 0:43:47.280
<v Speaker 2>can't happen in the full way because there's NBA owners

0:43:47.280 --> 0:43:47.920
<v Speaker 2>involved here.

0:43:47.960 --> 0:43:50.880
<v Speaker 1>But right, that's part of it too, is it gets

0:43:50.920 --> 0:43:53.360
<v Speaker 1>bigger by virtue of just the resale.

0:43:52.880 --> 0:43:56.480
<v Speaker 2>Of exactly and and the and the NWSL ownership meetings

0:43:56.560 --> 0:44:00.359
<v Speaker 2>right now have very impressive, powerful people like Willow and

0:44:00.360 --> 0:44:03.440
<v Speaker 2>Michelle Kang and Alan Waxman, and people who have made

0:44:03.480 --> 0:44:05.520
<v Speaker 2>a lot of money both in other sports and also

0:44:05.520 --> 0:44:09.760
<v Speaker 2>in other parts of business, and that's really valuable. Yeah.

0:44:09.800 --> 0:44:12.000
<v Speaker 2>So yeah, I think there's a there's a few things

0:44:12.040 --> 0:44:14.960
<v Speaker 2>that at play there. But again I wouldn't I wouldn't

0:44:14.960 --> 0:44:18.160
<v Speaker 2>be shocked to see w numbers continue to tick up.

0:44:18.600 --> 0:44:22.080
<v Speaker 2>The power of Caitlin Clark and and Angel Rees and

0:44:22.200 --> 0:44:25.520
<v Speaker 2>others as well. There's nothing like that in in the NWSL,

0:44:25.960 --> 0:44:27.240
<v Speaker 2>right the name.

0:44:27.160 --> 0:44:29.960
<v Speaker 1>Recognition the individual players yep.

0:44:31.120 --> 0:44:34.400
<v Speaker 2>So and more people watch on TV the W than

0:44:34.440 --> 0:44:37.320
<v Speaker 2>watch NWSL at least right now. So there's definitely some

0:44:37.360 --> 0:44:39.840
<v Speaker 2>business levers that are interesting. But if you're looking to

0:44:39.840 --> 0:44:42.399
<v Speaker 2>buy a w NBA team, again, the fact that that

0:44:42.400 --> 0:44:44.840
<v Speaker 2>that you're only buying into a forty two percent pool

0:44:44.880 --> 0:44:46.960
<v Speaker 2>of the league and not one hundred percent pool of

0:44:46.960 --> 0:44:50.080
<v Speaker 2>the league which you are in NWSL, Yeah, I think

0:44:50.080 --> 0:44:53.320
<v Speaker 2>that also serves as kind of a not a cap,

0:44:53.360 --> 0:44:57.280
<v Speaker 2>but it's definitely pressuring down valuations to a degree.

0:44:58.280 --> 0:45:02.080
<v Speaker 1>I learned a billion trillion, Evan. Thank you for saying

0:45:02.120 --> 0:45:04.040
<v Speaker 1>it in a way that even I could understand, and

0:45:04.040 --> 0:45:06.479
<v Speaker 1>hopefully our listeners to thank you so much for the time.

0:45:06.560 --> 0:45:09.600
<v Speaker 2>We'll do the Lightweight Football Pod next time, right, Okay.

0:45:09.440 --> 0:45:16.719
<v Speaker 1>Yes, yes, we got to take another break. When we

0:45:16.760 --> 0:45:19.359
<v Speaker 1>come back, I bid farewell to the show that gave

0:45:19.400 --> 0:45:31.959
<v Speaker 1>me my favorite job ever. Welcome back, slices. We always

0:45:32.000 --> 0:45:33.360
<v Speaker 1>love to hear from you, so hit us up on

0:45:33.440 --> 0:45:36.440
<v Speaker 1>email good game at wondermedianetwork dot com or leave us

0:45:36.440 --> 0:45:39.240
<v Speaker 1>a voicemail at eight seven two two four fifty seventy

0:45:39.640 --> 0:45:42.640
<v Speaker 1>and don't forget to subscribe, rate and review. It's real easy.

0:45:42.760 --> 0:45:46.759
<v Speaker 1>Watch the final episode of Around the Horn, airing tomorrow,

0:45:47.280 --> 0:45:50.759
<v Speaker 1>rating zero out of zero stars to whoever canceled this

0:45:50.960 --> 0:45:55.120
<v Speaker 1>legendary show review The Show that Changed My life will

0:45:55.120 --> 0:45:59.400
<v Speaker 1>air one final time tomorrow after twenty three years on ESPN.

0:46:00.120 --> 0:46:02.840
<v Speaker 1>Some of you may be around the horn, diehards watching

0:46:02.880 --> 0:46:06.080
<v Speaker 1>since the early days of Woody Page, and others may

0:46:06.080 --> 0:46:09.720
<v Speaker 1>be newer fans just catching the recent days of still

0:46:09.960 --> 0:46:12.680
<v Speaker 1>somehow Woody Page. And maybe a few of you have

0:46:12.800 --> 0:46:14.520
<v Speaker 1>just caught a glimpse of the show, maybe at the gym,

0:46:14.560 --> 0:46:18.120
<v Speaker 1>the airport, at the bar, the now instantly recognizable snapshot

0:46:18.160 --> 0:46:21.840
<v Speaker 1>of four panelists in boxes surrounding a handsome, smiley Italian

0:46:21.840 --> 0:46:25.239
<v Speaker 1>host wearing all black. Well, the show is ending, and

0:46:25.280 --> 0:46:28.040
<v Speaker 1>not because of ratings. They're still great. In fact, no

0:46:28.040 --> 0:46:29.680
<v Speaker 1>one seems to have a good answer as to why

0:46:29.680 --> 0:46:32.840
<v Speaker 1>the show won't continue past tomorrow. And while we're all

0:46:32.960 --> 0:46:36.640
<v Speaker 1>very sad that host, the incredible Tony Reality and everyone

0:46:36.640 --> 0:46:39.480
<v Speaker 1>else involved, from producers to panelists to fans, have at

0:46:39.600 --> 0:46:42.680
<v Speaker 1>least been given time to mourn and to celebrate. The

0:46:42.719 --> 0:46:45.160
<v Speaker 1>last several weeks have seen the return of old panelists

0:46:45.200 --> 0:46:48.480
<v Speaker 1>like yours truly, and the opportunity to remember the funniest

0:46:48.520 --> 0:46:51.759
<v Speaker 1>and most ridiculous moments as well as the times Tony

0:46:51.840 --> 0:46:55.359
<v Speaker 1>shared his humanity and heartbreak and made everyone watching feel

0:46:55.440 --> 0:46:58.960
<v Speaker 1>seen and less alone. We all everyone involved with the

0:46:58.960 --> 0:47:02.040
<v Speaker 1>show call it a family, and really it was a

0:47:02.160 --> 0:47:06.320
<v Speaker 1>rare space in this business that felt supportive, empathetic, nuanced, clever,

0:47:06.760 --> 0:47:10.640
<v Speaker 1>and also always in search of diverse, thoughtful opinions. It

0:47:10.680 --> 0:47:13.719
<v Speaker 1>was somehow a game show with a winner, and yet

0:47:13.760 --> 0:47:17.840
<v Speaker 1>still the least competitive space in sports. Everyone wanted everyone

0:47:17.840 --> 0:47:20.799
<v Speaker 1>else to shine, mostly thanks to Tony, who knew not

0:47:20.880 --> 0:47:24.480
<v Speaker 1>only every sports stat, score and reference, but also every

0:47:24.480 --> 0:47:26.759
<v Speaker 1>pop culture joke or reference we would drop on him,

0:47:26.920 --> 0:47:30.440
<v Speaker 1>from Whitesnake to Animal House, West Side Story to Austin Powers.

0:47:31.040 --> 0:47:33.480
<v Speaker 1>The show was the best. It changed my career and

0:47:33.520 --> 0:47:35.640
<v Speaker 1>it changed my life. And no matter what mood I

0:47:35.680 --> 0:47:38.080
<v Speaker 1>was in when I went to sit down, I always

0:47:38.280 --> 0:47:40.799
<v Speaker 1>left happy. So I'm really going to miss it. Go

0:47:40.840 --> 0:47:43.839
<v Speaker 1>watch tomorrow five pm Eastern on ESPN. There are some

0:47:43.960 --> 0:47:48.239
<v Speaker 1>pretty awesome surprises planned. At least one of them is

0:47:48.239 --> 0:47:51.399
<v Speaker 1>someone you're gonna really really like. Now it's your turn,

0:47:51.560 --> 0:47:55.480
<v Speaker 1>rate and review. Thanks for listening, See you tomorrow. Good game, Eban,

0:47:55.920 --> 0:47:59.720
<v Speaker 1>good game around the Horn, you whoever decided to cancel

0:47:59.719 --> 0:48:04.400
<v Speaker 1>Around on the Horn. Good game with Sarah. Spain is

0:48:04.440 --> 0:48:07.319
<v Speaker 1>an iHeart women's sports production in partnership with Deep Blue

0:48:07.320 --> 0:48:10.479
<v Speaker 1>Sports and Entertainment. You could find us on the iHeartRadio app,

0:48:10.520 --> 0:48:13.960
<v Speaker 1>Apple Podcasts, or wherever you get your podcasts. Production by

0:48:14.000 --> 0:48:17.840
<v Speaker 1>Wonder Media Network, our producers are Alex Azzie and Misha Jones.

0:48:18.080 --> 0:48:21.880
<v Speaker 1>Our executive producers are Christina Everett, Jesse Katz, Jenny Kaplan

0:48:21.920 --> 0:48:25.560
<v Speaker 1>and Emily Rudder. Our editors are Emily Rutter, Britney Martinez,

0:48:25.600 --> 0:48:28.960
<v Speaker 1>Grace Lynch, and Gianna Palmer. Our associate producer is Lucy

0:48:29.040 --> 0:48:31.360
<v Speaker 1>Jones and I'm Your Host Sarah Spain