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Speaker 1: This is the Business of Sports on Bloomberg Radio with

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Speaker 1: Scott and Michael Ball. Over the next hour, we will

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

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Speaker 1: and we will talk to some of the biggest players

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Speaker 1: in the industry today. He is the president of arguably

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Speaker 1: the most famous brand and all of sports. Brandy Levine

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Speaker 1: of the New York Yankees will join us and Scott.

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Speaker 1: The Dodgers, not the Yankees, have the biggest pay roll

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Speaker 1: in baseball? How can you get a slice of the team?

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Speaker 1: Will speak with the man trying to find a buyer

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Speaker 1: for a piece of the club, sal galatiote. But first,

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Speaker 1: the biggest golf tournament of the year is underway at Augusta,

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Speaker 1: the Masters. Now you'd think you need stacks of money

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Speaker 1: while attending, but think again, Scott. A week long badge

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Speaker 1: cost three dollars. Now that's not bad. That's about the

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Speaker 1: same price you would pay for decent seats to watch

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Speaker 1: one NBA game. And if you're hungry, the pimento cheese

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Speaker 1: sandwiches go for a buck fifty supersized with chips and

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Speaker 1: a beer, and you're still at only four dollars. Yeah,

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Speaker 1: but Michael I would encourage you to go to Bloomberg

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Speaker 1: dot com. There there's a story on how you can

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Speaker 1: go in style for about a hundred grand. That's your

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Speaker 1: price range. You'll get tips on where to stay, how

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Speaker 1: to get there, how to get around, where to shop,

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Speaker 1: and where the party. Now, if you want a party

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Speaker 1: in football these days and you don't bring a lot

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Speaker 1: of cash, Atlanta as the spot to be. Yes, Atlanta

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Speaker 1: is the hot spot. But the big thing too about

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Speaker 1: Atlanta is that you've got a brand new stadium coming

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Speaker 1: up man in the fall. That's gonna be a hot

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Speaker 1: spot to play in and enjoy your time as a fan,

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Speaker 1: and you don't have to spend big bucks. Arthur Blank

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Speaker 1: is changing the paradigm in Atlanta. What he was finding

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Speaker 1: is that fans were not showing up early, and they

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Speaker 1: weren't buying all that much of the concession stands the

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Speaker 1: reason the stuff costs too much, so he listened to

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Speaker 1: the customer. He's changing things around a bit. Nothing like

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Speaker 1: a cheap hot dog, which is what you should get like,

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Speaker 1: or a cheap beer if you're at the stadium. Whatever

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Speaker 1: it costs too much at Some people complained about it.

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Speaker 1: When you're trying to go see not just a football game,

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Speaker 1: but a baseball game, even a hockey game. Yeah, but

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Speaker 1: this is in charity. I mean think about it. Two

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Speaker 1: dollar hot dogs, three dollar pretzels for five bucks, you

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Speaker 1: get an unlimited soda. Now I have son I bring

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Speaker 1: in the game. I can spend seventy five bucks on food. Easy.

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Speaker 1: But this is not about charity. What they're thinking is

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Speaker 1: that this will draw people to the stadium early, those

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Speaker 1: who went out to lunch before coming because they didn't

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Speaker 1: want to spend big money, and they'll have more while

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Speaker 1: they're there because they can afford it. So they see

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Speaker 1: this as a revenue generator, not is something just a

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Speaker 1: nice things for the fan. Of course, there's something in

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Speaker 1: it for the team as well. Now I know the

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Speaker 1: Falcons that'll have their new stadium, but many stadiums in

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Speaker 1: baseball and football, they have those specialty dishes where you

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Speaker 1: have the hot dogs and the nachos and then the

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Speaker 1: cheese on the nachos, and then you call it a

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Speaker 1: special name, and wham, you've got this special dish that

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Speaker 1: people love. And they had to change it up a

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Speaker 1: little bit here. The way it usually works is that

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Speaker 1: the company you hire to manage your food in this

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Speaker 1: in this case in the stadium is leavies. You have

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Speaker 1: to pay them a portion of the revenue. But what

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Speaker 1: the Falcons are doing is guaranteeing leave a number, so

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Speaker 1: there is no reason for them to charge a high

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Speaker 1: dollar amount. They will take the risk, meaning the team

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Speaker 1: will take the risk after making that payment that they

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Speaker 1: will make that money back. All the risk rests with

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Speaker 1: the team, which is why they're able to do this. Now.

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Speaker 1: The team is almost acting like a subsidy, acting like

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Speaker 1: a subside for the fans, but they really think they'll

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Speaker 1: make their money back. Another big story. We are following

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Speaker 1: the Olympics on ice for the NHL. Still on time.

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Speaker 1: Still it can change. But in my mind, uh, like

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Speaker 1: I said, already, I'm going and doesn't know what that

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Speaker 1: was Washington Capital star Alex Ovechkin reacting to the NHL's

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Speaker 1: decision to not participate in next year's Olympics in South

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Speaker 1: Korea because NHL commissioner Gary Bettman said so, and he

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Speaker 1: just put his foot down about that. And I'm wondering

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Speaker 1: how this is going to play out. This is going

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Speaker 1: to play out in an ugly manner, and you know why,

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Speaker 1: this is something that players really care about. They want

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Speaker 1: to go play in the Olympics. They are not concerned

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Speaker 1: about things like insurance and shutting down the NHL season

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Speaker 1: and competitive balance. They don't care. What they want to

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Speaker 1: do is pull on the sweater that says either C, C,

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Speaker 1: C P USA. They want to represent their countries. They

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Speaker 1: feel strongly about it, and right now it's out of

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Speaker 1: their hands. And from what I'm hearing from Bettman, this

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Speaker 1: isn't like you said, not about all. We care about

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Speaker 1: the safety. And I'm not trying to slam Batman or

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Speaker 1: the NHL, but this sounds more like, hey, we want

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Speaker 1: to get in on some of the piece of the

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Speaker 1: pie when it comes to the Olympics and some of

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Speaker 1: the marketing involved. I have spent a career in this

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Speaker 1: business shattering the myth that these teams are civic trusts. Somehow.

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Speaker 1: I know people care passionately about them. I know cities

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Speaker 1: are involved. I get it. But they are businesses and

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Speaker 1: these owners look at them as businesses. If I'm going

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Speaker 1: to shut down my season for any reason, the owners

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Speaker 1: are saying, we need to be compensated. You need to

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Speaker 1: pay travel, you need to pay insurance, and what's in

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Speaker 1: it for us? This is our brand, the NHL players,

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Speaker 1: our contracts, more than three billion dollars worth of contracts.

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Speaker 1: You want us to give that to you to the

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Speaker 1: I o C for free? Things don't work that way.

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Speaker 1: They want some of that scratch. Sounds like the old

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Speaker 1: Minnesota north Stars when they moved over those last few games.

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Speaker 1: You couldn't find anybody in the stands. Yeah, and just

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Speaker 1: be careful now next time they're at the negotiating table.

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Speaker 1: Players have long memories that this does not work out.

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Speaker 1: This could get ugly. Another big story of the week

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Speaker 1: Amazon dot Com paying fifty million dollars to stream NFL

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Speaker 1: games on Thursday nights. The bidders were Twitter, which had

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Speaker 1: it already. Facebook was involved, but going to Amazon, which

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Speaker 1: does a very good job at separating people from their money.

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Speaker 1: This is about as much selling merch as it is

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Speaker 1: broadcasting game on some other platform. This is huge for

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Speaker 1: Amazon obviously, because they've been trying to get into something

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Speaker 1: like this for a long time. You can get ten games,

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Speaker 1: and weeve it's ten games that you can get. This

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Speaker 1: is about experimentation for the NFL. They went to Twitter,

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Speaker 1: now they're trying Amazon. This will really heat up in

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Speaker 1: that's when the traditional broadcast contracts of the NFL begin

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Speaker 1: to expire. Now I'm talking brands like ESPN, Fox, CBS, NFL.

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Speaker 1: What the NFL wants is alternate companies, Facebook's Twitters becoming

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Speaker 1: real bidders for sports TV rights, whether it's to sell

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Speaker 1: merch or whether it's to really draw people in as

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Speaker 1: a rating. The NFL wants more bidders because we all

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Speaker 1: know more bidders equals more money. This is the business

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Speaker 1: of sports. On Bloomberg Radio, Scott again Michael Ball. In

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Speaker 1: just a few minutes will speak with the president of

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Speaker 1: perhaps the most famous team in the world, the New

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Speaker 1: York Thankies. That's coming up, but first we chat with

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Speaker 1: Sal Galaxyoto, the founder of Galaxyoto Sports Partners. The man

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Speaker 1: charged was selling a piece of the Los Angeles Dodgers.

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Speaker 1: That seems like an easy test, So oh, nothing is easy.

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Speaker 1: Come on, you're killing me here. You know they're not

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Speaker 1: gonna pay me if if it's easy. But let's let's

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Speaker 1: be real. Of all the brands and sports, the Dodgers

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Speaker 1: are one of those blue chip marquee brands that will

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Speaker 1: attract more attention than let's say, hey, Sal, I need

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Speaker 1: you to sell a piece of the Ottawa Senators. No

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Speaker 1: offense to Autama. Yes, snow offense to Ottawa. But yes,

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Speaker 1: the Dodgers are a great iconic brand. They have a

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Speaker 1: national fan base. Um. As you know, they used to

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Speaker 1: be in Brooklyn. Uh and for some reason they moved

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Speaker 1: out to the West coast. They still haven't been able

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Speaker 1: to fully ascertain. Um. But yeah, it's a great brand. Uh.

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Speaker 1: They high stependence of major League Baseball for a number

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Speaker 1: of years in a row Southern California. I mean, come on,

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Speaker 1: it's it is a great brand. It really isn't and

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Speaker 1: there is a lot of interest around it, as there

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Speaker 1: should be. I have to ask if you're trying to

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Speaker 1: package it as Joe blow bloke and you can't tell

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Speaker 1: me it's like, hey, I'm selling the Dodgers. You want

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Speaker 1: to buy it? And sure, here's my five dollars. So

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Speaker 1: how do you package something like this? Well, I mean, look,

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Speaker 1: do you you tell the story, you talk about the

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Speaker 1: future of Major League Baseball, you talk about the demographics

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Speaker 1: in the Los Angeles area. Uh, the team's really strong

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Speaker 1: local media contract and really the future of baseball. I

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Speaker 1: mean it's tremendous media content, has more media content than

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Speaker 1: any of the sport by far Um. So there are

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Speaker 1: so many positives to talk about. What are the Dodgers

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Speaker 1: looking for south Because when you bring on a limited

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Speaker 1: partner in the old days, it was who's going to

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Speaker 1: pay me the most money? That's the way it used

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Speaker 1: to work. Now the controlling shareholder wants to know personality

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Speaker 1: and so does the LP. Do we work well together?

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Speaker 1: What else did they bring to the table, all things

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Speaker 1: being equal, dollars being equal, what does this group, this person,

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Speaker 1: this entity bring to the table. What do the Dodgers want? Look,

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Speaker 1: you want partners. You can work with people who share uh,

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Speaker 1: you know, common interest to come and go for the team. Um.

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Speaker 1: You know when they purchase the team, they didn't go

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Speaker 1: out with limited. You know a lot of people have

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Speaker 1: inquired about the team over the years. Um. And so

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Speaker 1: we're looking for the right people, the people who whose

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Speaker 1: personality fit and whoever real affinity for the team. I mean,

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Speaker 1: clearly that's very important here. I think one of the things,

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Speaker 1: and some people disagree with me, but one of the

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Speaker 1: things and packaging a team and trying to sell it

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Speaker 1: is a combination between any team and fantasy sports. Because

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Speaker 1: fantasy sports has brought not just baseball, but football, basketball, hockey.

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Speaker 1: It has brought it to the forefront. So I guess

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Speaker 1: I ask, can the Dodgers find a way to help

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Speaker 1: incorporate fantasy sports to help package selling this team? Yeah, look,

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Speaker 1: the Dodgers is such a great name. They they go

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Speaker 1: into things beyond just playing baseball, right, I mean, yes,

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Speaker 1: fantasy sports is something people think about. They think about

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Speaker 1: the future revenue streams that might be generated from there. Um.

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Speaker 1: So there are a whole bunch of variables, but but

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Speaker 1: generally it's what Scott said. I mean, they're just a

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Speaker 1: tremendous brand. So when you say to someone, look, you

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Speaker 1: have the opportunity to invest in the Dodgers. The Dodgers

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Speaker 1: present a certain really first class image and you don't

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Speaker 1: have to explain a lot about the Dodgers. People know

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Speaker 1: who they are. We are chatting with Sal Galaxyoto, the

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Speaker 1: founder of Galaxyoto Sports Partners and sell. You mentioned the

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Speaker 1: media contract earlier, and that all came about when Googenheim

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Speaker 1: Partners and that includes Magic Johnson, Peter Goober. This is

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Speaker 1: a big entertainment play that all came about with time

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Speaker 1: one er and two billion dollars eight billion dollars rather guaranteed.

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Speaker 1: But what the Dodgers don't have his carriage agreements with

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Speaker 1: a lot of the cable operators in southern California. Our

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Speaker 1: potential buyers concerned about when this standoff might end or

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Speaker 1: if it will end. I haven't anybody really asked me

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Speaker 1: about that. I mean, the contract is contracts, and the

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Speaker 1: team gets the revenues that they're they are obligated to them.

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Speaker 1: I mean, certainly, you know, look, it's got to be resolved.

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Speaker 1: Everybody knows that you want to reach the majority of

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Speaker 1: of your fan base. But no, haven't anybody really asked

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Speaker 1: a lot of questions about that? And and I guess

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Speaker 1: again everybody assumes that it's going to be resolved favorably.

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Speaker 1: I have to ask, too, because the Dodgers they're still

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Speaker 1: in in terms of today the old stadium compared to

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Speaker 1: some of the brand new, fancy fan stadiums that are

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Speaker 1: out there now. So so I guess to ask the

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Speaker 1: question is is that something down the road one day

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Speaker 1: maybe the Dodgers will think about maybe building a brand

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Speaker 1: new stadium. I don't know, it's a good question. I mean,

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Speaker 1: they've spent a lot of money renovating Dodger Stadium. It

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Speaker 1: it really looks good. I mean I was there about

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Speaker 1: a month ago. Uh. Their attendance is just tremendous. Uh,

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Speaker 1: you know, people seem to really enjoy going there. So

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Speaker 1: look at anything is possible in the future. But I think,

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Speaker 1: you know, in in the short run, I think Dodger

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Speaker 1: Stadium's Dodger Stadium. It's it's kind of iconic. Sally. Remember

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Speaker 1: what everybody thought Guggenheim was crazy? Two billion billion That

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Speaker 1: didn't last very long, did it? No, it didn't. But

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Speaker 1: but you know, look, I want to give them credit

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Speaker 1: because they did. They did have vision to see what

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Speaker 1: the Dodgers could be. Um. But look, asset values going

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Speaker 1: up across the board and in all of the major

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Speaker 1: league sports in North America. I mean, they just they

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Speaker 1: have been media content value is is still on the rise.

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Speaker 1: And look, they they're not the only ones that people

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Speaker 1: criticized when they paid a price for for a team

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Speaker 1: and then found out that whoops, you know, we were wrong.

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Speaker 1: Prices kept going up. So but but to their credit,

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Speaker 1: they they recognize that. Do you smile when you see

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Speaker 1: a story like the NFL signs a deal with Amazon

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Speaker 1: paying fifty million dollars to sample the product, because you

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Speaker 1: know that this will filter out to every sport, more bidders,

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Speaker 1: more money, more people interested, whether it's content merchandise. This

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Speaker 1: is good for the owners of pro sports teams, no doubt,

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Speaker 1: no doubt it is. And and look, as as as

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Speaker 1: technology continues to improve, right, and people can edit out

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Speaker 1: all the commercials and watch a television program three days later,

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Speaker 1: guess what the value of live sports gets goes up

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Speaker 1: and up to advertisers because it's the one thing that

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Speaker 1: people watch as it's occurring. Right. Nobody's gonna watch a

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Speaker 1: game three days later and edit out the commercials that

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Speaker 1: watching while the game's going on, right, and that value

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Speaker 1: is gonna be there. It's gonna be the bedrock. And

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Speaker 1: in a lot of other media content doesn't have that. Yeah,

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Speaker 1: that's what everybody wants. Live DVR proved advertisers are still

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Speaker 1: turning to sports, absolutely, absolutely, And and it doesn't matter

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Speaker 1: how much distributed, right, as long as you own the content,

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Speaker 1: you don't care if it's distributed, you know, streaming or

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Speaker 1: on cable or over the top, It doesn't make any

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Speaker 1: difference to you. As long as you control the content

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Speaker 1: and get paid for that content, you are receiving offers,

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Speaker 1: you put out teasers, Dodgers are available. I assume that

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Speaker 1: causes some sort of frothy interest around the world. What

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Speaker 1: was it like in the first days weeks of the

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Speaker 1: announcement that the Dodgers were looking for partners. Well, I mean,

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Speaker 1: you know, people approach us, they did, they discuss the

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Speaker 1: possibility of investing. Look, we have a pretty deep rollo

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Speaker 1: dex if you will, database of prospective investors. We go

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Speaker 1: to those people, but you know, they have to be

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Speaker 1: people that in the past have said to us, we're

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Speaker 1: interested in Major League Baseball. Some have said we're interested

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Speaker 1: in major League Baseball, but it's got to be on

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Speaker 1: the West coast. Uh. But as I said, the Dodges

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Speaker 1: are a national and international brand. So we've gotten in

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Speaker 1: is from a number of people, and um, we're still

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Speaker 1: talking to people right now. You know, we want to

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Speaker 1: find the right partners. Very important to us. I just

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Speaker 1: wonder how much ego is involved. Also, let's be honest,

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Speaker 1: you have to be someone with a little bit of

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Speaker 1: an ego to say, hey, I own part of the Dodgers,

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Speaker 1: kind of like a Mark Cuban. I think there's ego

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Speaker 1: always involved in buying any sports asset, right, Um, I

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Speaker 1: think there's an ego premier involved in buying sports assets,

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Speaker 1: the big name sports assets. Yes, there are more people

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Speaker 1: who want to hit their names associated with them, because,

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Speaker 1: let's face it, you get more name recognition when you're

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Speaker 1: with the Dodgers or with any really you know, top

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Speaker 1: tier franchise. So yes, I think that does spur people

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Speaker 1: on to a certain extent. What are some of the

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Speaker 1: reasons you're hearing why people want to invest I did

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Speaker 1: a story years ago on who these people are who

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Speaker 1: own one or two or three percent. This will be

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Speaker 1: a little bit more than that obviously, but some say,

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Speaker 1: well who else can close a deal on the fifty

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Speaker 1: yard line or in the clubhouse. It's an advantage in

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Speaker 1: my core business. What sorts of reasons do people invest

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Speaker 1: in these these clubs as limited partners? Yes, Scott, that's

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Speaker 1: part of it. I think. I think part of it

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Speaker 1: as people view it as a non correlated asset to

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Speaker 1: the stock market. I think people are more and more

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Speaker 1: viewing it as media content value and premier media content value,

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Speaker 1: you know, rather than having the traditional investors when prices

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Speaker 1: were lower, where people were you know, where ego was

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Speaker 1: was the driver. It's not. I think it's less. I

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Speaker 1: think people viewing it as a way to diversify their

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Speaker 1: investments um into a very unique asset class. And let's

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Speaker 1: face it, they're not making any more of these, right

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Speaker 1: or they're making very few of these. So if you

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Speaker 1: can get into a premier brand and you're viewing it

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Speaker 1: as a long term investment, you know, look at the

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Speaker 1: history of these investments and how well people have done

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Speaker 1: invested in these things. It always looked like they overpaid,

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Speaker 1: but you know, within five years you notice, no, they

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Speaker 1: didn't overpay. I always wonder which one is the better owner,

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Speaker 1: the guy who used to be a sports at leader

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Speaker 1: or a guy who's like thirst and hell the third

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Speaker 1: You know, it depends on the person's personality. I mean,

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Speaker 1: if there are people who are former athletes who were

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Speaker 1: just tremendous people, and there are people who aren't so much,

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Speaker 1: you know, you kind of gave. You have to gauge

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Speaker 1: the person. Uh. And you know a lot of the

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Speaker 1: people that we're talking to are people we've known for

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Speaker 1: a long time, and that makes it a lot easier.

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Speaker 1: So let me ask you this. If I came to

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Speaker 1: you and said, I am interested first and foremost in

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Speaker 1: return on investment. I must have good return. Which sport

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Speaker 1: would you point to and say put your money here?

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Speaker 1: We know the NFL's the Beheamoth. We know Major League

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Speaker 1: Baseball has things like bam Tech and answer every revenue.

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Speaker 1: But where would you say, I would look here if

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Speaker 1: you want return on investment? That's interesting. I don't know

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Speaker 1: if I do it by sport, I do it more

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Speaker 1: by franchise, right, because each sport has a few franchises

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Speaker 1: in them that are just head and shoulders above the rest. Now,

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Speaker 1: the NFL not so much because such a large percentage

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Speaker 1: of your revenues come from national sources. So whether you're

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Speaker 1: in Buffalo or you're in New York City, you're gonna

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Speaker 1: get the same share of the national media contract, right,

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Speaker 1: And there aren't that many games, so you're gonna have

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Speaker 1: eight games. So the venue revenues are variable, but not

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Speaker 1: as much. But you know, baseball has those elite teams.

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Speaker 1: Hockey as those elite teams. The NBA has those elite teams,

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Speaker 1: and there is a bifurcation in in appreciation. The elite

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Speaker 1: teams appreciate faster than some of the teams that are

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Speaker 1: at elite team. So you know, and I also tell

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Speaker 1: you something else. If you're gonna invest in a sport,

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Speaker 1: invest in a sport you love. Don't invest in whatever

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Speaker 1: sport it is because you think you're gonna get the

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Speaker 1: highest return. Because part of the return you're gonna get

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Speaker 1: here is a psychic return. And if you really love

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Speaker 1: the investment you've made, there's nothing better than that, because

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Speaker 1: you're gonna make money, but you're also going to enjoy

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Speaker 1: owning it. Why buy into a sport that you're not

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Speaker 1: really interested in? What about a soccer team? Because there

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Speaker 1: are a lot of soccer teams around the world. Uh, yeah,

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Speaker 1: there are a lot of soccer teams around the world.

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Speaker 1: If you love soccer. Uh, there are some soccer teams,

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Speaker 1: uh that I think there's significant upside in. Some you know,

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Speaker 1: haven't been marketed effectively, some haven't been managed very effectively.

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Speaker 1: So yeah, there's upside. I mean, you you got to

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Speaker 1: dig a little bit. The risk you have there is

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Speaker 1: promotion and relegation, which you don't have here. Right, If

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Speaker 1: you own the worst NFL team and you lose every game,

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Speaker 1: you still own an NFL team. If you go and

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Speaker 1: buy a team in the English Premier League and you

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Speaker 1: lose a lot, you could get relegated and you drop

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Speaker 1: out the bottom and that has a significant impact on

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Speaker 1: the value of the franchise. You don't get that in

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Speaker 1: North American sports. Sure it would be fun watching Jimmy

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Speaker 1: Dulan sweat out relegation. No thanks to Sally Galaxy Oo,

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Speaker 1: the founder of Galaxy Otto Sports Partners, and the man

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Speaker 1: charge with selling a piece in the Los Angeles Dodgers.

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Speaker 1: Is the business of sports. On Bloomberg Radio, Scott and

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Speaker 1: Michael Ball guest. Our guest does need an in reduction,

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Speaker 1: even though he doesn't need an introduction. There are sports

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Speaker 1: brands and then there are sports brands. Randy Levine, President

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Speaker 1: of the New York Yankees, Randy, thank you for joining us.

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Speaker 1: Always good to be with you. Scott and you Michael.

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Speaker 1: It's a pleasure. Season is underway. Looking forward. How do

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Speaker 1: the business metrics of the New York Yankees look at

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Speaker 1: the start of this season. I think they're looking very good.

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Speaker 1: Uh uh you know, we just completed some uh pretty

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Speaker 1: substantial renovations to Yankee Stadium to try and meet some

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Speaker 1: of the needs of our younger millennial fan base and

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Speaker 1: they seem to be responding. We spent a lot of

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Speaker 1: time over the past couple of years researching how to

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Speaker 1: get more fans into the building. On the sponsorship side

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Speaker 1: where and the media side, you know, where we continue

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Speaker 1: to be very very strong. And you know, most important

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Speaker 1: is the product on the field. And uh, you know,

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Speaker 1: we have a lot of really good players who are

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Speaker 1: getting an opportunity to play and uh, fans love to

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Speaker 1: see homegrown young players and it seems to be very

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Speaker 1: appealing so far. And Randy, you and I have talked

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Speaker 1: about millennials and how difficult it is to reach that audience.

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Speaker 1: They don't buy season tickets, they don't make plans to

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Speaker 1: show up at the stadium. They just do show up

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Speaker 1: when they want. But when they're they do spend a

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Speaker 1: lot of bucks, don't they. Yes, I mean they're they're

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Speaker 1: they're very different from my generation. Some of the uh,

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Speaker 1: you know, I hate to say the older people, they're

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Speaker 1: they're late deciders. They come a lot of times in groups,

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Speaker 1: and uh, they like to participate in the game for

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Speaker 1: some of them, not all of them. For some of them,

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Speaker 1: you know, taking a selfie in a in a cool

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Speaker 1: spot is as important as you know, watching the team

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Speaker 1: score runs or win. So we try and accommodate all

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Speaker 1: fans and and always it's it's very, very unique. It

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Speaker 1: took a long time to really try and understand the

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Speaker 1: uh what they seek, what they like, and we're trying

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Speaker 1: hard to accommodate them. I'm a native Detroiter, so when

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Speaker 1: I would see the Yankees come into Tiger Stadium, I

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Speaker 1: knew these are the Yankees. So then I moved out

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Speaker 1: here to New York and you realize how extremely popular

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Speaker 1: the Yankees are. In fact, I tried to go to

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Speaker 1: a day game several years ago when the Royals are

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Speaker 1: playing in the Royals weren't that good? To be honest

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Speaker 1: with you, I just thought it would be easy to

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Speaker 1: go in and get some tickets and go in and

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Speaker 1: see the day game. No, it wasn't even close. The

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Speaker 1: Yankees are quite the drug. I mean, you know that, Randy.

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Speaker 1: That's part of the revenue sharing argument. The Yankees generate

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Speaker 1: more than anybody else. Yeah, we we do. We've been

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Speaker 1: forever the largest revenue generating team in Major League Baseball,

429
00:22:52,280 --> 00:22:55,280
Speaker 1: and uh, you know we we honestly, over the last

430
00:22:55,280 --> 00:22:58,520
Speaker 1: couple of years, have had a little downturn and attendance

431
00:22:58,600 --> 00:23:02,040
Speaker 1: that it looks like we've turned it and around, and uh,

432
00:23:02,080 --> 00:23:04,040
Speaker 1: you know for all the reasons I I just spoke

433
00:23:04,040 --> 00:23:08,800
Speaker 1: to you guys. But you know, baseball is is intrinsic

434
00:23:08,880 --> 00:23:12,600
Speaker 1: into the American spirit. You know, it's a it's a

435
00:23:12,720 --> 00:23:18,239
Speaker 1: six month situation. I'm always surprised how passionate you know

436
00:23:18,320 --> 00:23:20,560
Speaker 1: people are. Some people have good days a bit. He's

437
00:23:20,640 --> 00:23:24,200
Speaker 1: depending whether we want to lose. Uh. I hear when

438
00:23:24,200 --> 00:23:26,840
Speaker 1: I walk the streets. And that's the great part. And

439
00:23:26,880 --> 00:23:29,239
Speaker 1: the great part about the Yankees I always say is

440
00:23:29,400 --> 00:23:30,919
Speaker 1: you know a lot of people who love us and

441
00:23:30,960 --> 00:23:33,360
Speaker 1: a lot of people who hate us, but a lot

442
00:23:33,359 --> 00:23:35,720
Speaker 1: of people are thinking about us all the time. What

443
00:23:35,880 --> 00:23:39,240
Speaker 1: challenges the baseball industry? What are they facing right now?

444
00:23:39,560 --> 00:23:42,720
Speaker 1: The biggest challenges the commissioner Manford has said over and

445
00:23:42,760 --> 00:23:45,920
Speaker 1: over again is what we were talking about. It's to

446
00:23:46,119 --> 00:23:52,880
Speaker 1: try and get more young fans, young people, uh, involved

447
00:23:52,880 --> 00:23:55,479
Speaker 1: in the game. That's why there's a lot a lot

448
00:23:55,560 --> 00:23:59,920
Speaker 1: of effort being gone going into you know, find ways

449
00:24:00,119 --> 00:24:03,360
Speaker 1: to move the game along, make the game more exciting. Here.

450
00:24:03,400 --> 00:24:05,960
Speaker 1: All the discussion on you know, some of these rule changes,

451
00:24:06,080 --> 00:24:09,679
Speaker 1: the recent one obviously uh, you know, you don't have

452
00:24:09,720 --> 00:24:12,560
Speaker 1: to throw four balls for an intentional walk, you know,

453
00:24:12,640 --> 00:24:17,959
Speaker 1: trying to uh uh limit the amount of picture visits

454
00:24:18,000 --> 00:24:19,720
Speaker 1: to the mound. You know, the game has become a

455
00:24:19,760 --> 00:24:22,080
Speaker 1: bullpen game, so there's a lot a lot of you

456
00:24:22,119 --> 00:24:25,480
Speaker 1: know breaks in the action. And and also you know,

457
00:24:25,560 --> 00:24:29,040
Speaker 1: to reach out you know, to diverse communities to make

458
00:24:29,040 --> 00:24:32,560
Speaker 1: sure that you know, they're baseball fans and and all

459
00:24:32,640 --> 00:24:36,119
Speaker 1: communities both in this country and all over the world.

460
00:24:36,560 --> 00:24:38,800
Speaker 1: So that's where the commissioner, with all the backing of

461
00:24:38,840 --> 00:24:41,800
Speaker 1: the club's is spending a lot of time. And I

462
00:24:41,840 --> 00:24:45,320
Speaker 1: think you have to be able to you know, secure

463
00:24:45,359 --> 00:24:48,159
Speaker 1: the next generation the both of the Yankees and and

464
00:24:48,280 --> 00:24:51,560
Speaker 1: al and uh and all teams. And I also think,

465
00:24:51,840 --> 00:24:56,040
Speaker 1: you know, in in this time of technology, is a growing,

466
00:24:56,840 --> 00:25:01,320
Speaker 1: uh constant transition to how people you know, get the games,

467
00:25:01,480 --> 00:25:04,720
Speaker 1: get news of the games. You know, they want it quick,

468
00:25:04,840 --> 00:25:07,560
Speaker 1: they want to fist. Some people are you know, want

469
00:25:07,560 --> 00:25:10,160
Speaker 1: to see highlights. They can't watch a full three hour game.

470
00:25:10,720 --> 00:25:12,879
Speaker 1: You know, more people you know get the game stream

471
00:25:12,960 --> 00:25:16,240
Speaker 1: now than just watching TV. So it's it's an effort

472
00:25:16,280 --> 00:25:18,720
Speaker 1: not only for baseball but for all sports to try

473
00:25:18,720 --> 00:25:21,800
Speaker 1: and you know, stay current. We are chatting with Yankees

474
00:25:21,800 --> 00:25:24,399
Speaker 1: president Randy Levine and Rindy. I'm glad you brought up technology.

475
00:25:24,480 --> 00:25:27,520
Speaker 1: Baseball recently announced a deal with Twitter where Friday night

476
00:25:27,560 --> 00:25:29,639
Speaker 1: games will be shown on Twitter. That's one way to

477
00:25:29,680 --> 00:25:33,160
Speaker 1: possibly reach the younger demographic. But what about that argument

478
00:25:33,440 --> 00:25:36,920
Speaker 1: that particularly millennials like to make is I'm more comfortable

479
00:25:36,960 --> 00:25:41,399
Speaker 1: at home. Does that scare you as someone who runs

480
00:25:41,440 --> 00:25:44,160
Speaker 1: a team that people would opt for the at home

481
00:25:44,240 --> 00:25:47,399
Speaker 1: on my couch experience over the in arena slash in

482
00:25:47,520 --> 00:25:51,119
Speaker 1: stadium experience. You know, the goal is not only you know,

483
00:25:51,160 --> 00:25:53,920
Speaker 1: to watch the great team and great teams who they're

484
00:25:53,920 --> 00:25:56,159
Speaker 1: playing in the great sports, but to give them a

485
00:25:56,200 --> 00:26:01,200
Speaker 1: reason to basically say, it's a better experience. Go experience that.

486
00:26:01,320 --> 00:26:04,240
Speaker 1: It's cooler, it's better, it's more fun, it's more enjoyable

487
00:26:04,720 --> 00:26:07,960
Speaker 1: with your friends, your family, come watch it at the stadium.

488
00:26:07,960 --> 00:26:10,439
Speaker 1: And that's why we did these renovations that we did

489
00:26:10,480 --> 00:26:13,520
Speaker 1: a lot of renovations at uh stormburn the field in Tampa.

490
00:26:13,680 --> 00:26:15,440
Speaker 1: You know, in spring training, what did you do with

491
00:26:15,520 --> 00:26:17,600
Speaker 1: the stadium? For folks don't know what exactly did you do.

492
00:26:17,840 --> 00:26:21,119
Speaker 1: The main thing we did is out in the bleachers

493
00:26:21,160 --> 00:26:26,159
Speaker 1: there is you know about remember the exact number of

494
00:26:26,240 --> 00:26:30,399
Speaker 1: obstructive bleacher seats. We took those seats out and we

495
00:26:30,440 --> 00:26:34,120
Speaker 1: put in terraces, you know with UH food, a bar

496
00:26:34,440 --> 00:26:39,480
Speaker 1: where anybody in the stadium can come, you know, enjoy themselves.

497
00:26:39,520 --> 00:26:42,600
Speaker 1: You're you're you know looking right over the outfield. You

498
00:26:42,600 --> 00:26:45,760
Speaker 1: can see into the bullpens and it's a great experience

499
00:26:45,760 --> 00:26:49,040
Speaker 1: and gathering place for millennials. We put some fan friendly

500
00:26:49,200 --> 00:26:53,040
Speaker 1: kids clubs in. In other words, we try to structure

501
00:26:53,520 --> 00:26:57,720
Speaker 1: areas in the stadium that would provide a lot, a

502
00:26:57,720 --> 00:27:00,159
Speaker 1: lot of activities for people to come to the game

503
00:27:00,200 --> 00:27:02,560
Speaker 1: and joy, spend time with their friends, their family of

504
00:27:02,600 --> 00:27:07,040
Speaker 1: their kids while watching the game, and experience something different

505
00:27:07,119 --> 00:27:10,120
Speaker 1: than you know, just the traditional sitting in the ballpark

506
00:27:10,200 --> 00:27:14,119
Speaker 1: and watching the game. What about internet connections? Many people

507
00:27:14,240 --> 00:27:16,800
Speaker 1: they come to the ballpark because they want to follow

508
00:27:16,880 --> 00:27:21,200
Speaker 1: fantasy sports. With that matter, just follow other teams as well.

509
00:27:21,240 --> 00:27:24,239
Speaker 1: What about the necame oh Yankee stadium. You know, UH

510
00:27:24,760 --> 00:27:30,480
Speaker 1: is completely wired. You know, we're we're probably as good

511
00:27:30,520 --> 00:27:33,480
Speaker 1: as anybody. I don't think there's anybody as UH as

512
00:27:33,760 --> 00:27:37,960
Speaker 1: UH technology friendly in the ballpark is us. You know,

513
00:27:38,000 --> 00:27:41,040
Speaker 1: whether you're toring food, whether you're following around, you know,

514
00:27:41,520 --> 00:27:44,280
Speaker 1: with stats of each batter and how it goes, whether

515
00:27:45,800 --> 00:27:49,000
Speaker 1: you want to communicate with a friend, communicate with us.

516
00:27:49,480 --> 00:27:52,280
Speaker 1: You know, we have all of that available. That's important.

517
00:27:52,680 --> 00:27:55,560
Speaker 1: Every owner is always looking for the next great revenue stream, Randy,

518
00:27:55,640 --> 00:27:58,840
Speaker 1: and one that might be on the horizon is legalized

519
00:27:58,920 --> 00:28:03,440
Speaker 1: federally regular a did Sports betting Commissioner Manfred has loosened

520
00:28:03,440 --> 00:28:05,360
Speaker 1: his stance. He said it's time for us to take

521
00:28:05,359 --> 00:28:07,879
Speaker 1: a fresh look. Do you also bang that drum that

522
00:28:07,920 --> 00:28:10,879
Speaker 1: it's time to take a fresh look at legalized sports betting.

523
00:28:11,600 --> 00:28:15,920
Speaker 1: I think I'm a total support of a commissioner. I think,

524
00:28:15,960 --> 00:28:18,360
Speaker 1: you know, it's always the devils are in the details.

525
00:28:18,400 --> 00:28:22,200
Speaker 1: But obviously there's a lot of betting going on right now,

526
00:28:22,800 --> 00:28:26,280
Speaker 1: and uh, if it can be you know, harnered, if

527
00:28:26,320 --> 00:28:30,520
Speaker 1: it can be made secure, safe and a revenue stream, yes,

528
00:28:30,640 --> 00:28:33,720
Speaker 1: I think it's absolutely a something to think a look at.

529
00:28:34,000 --> 00:28:37,360
Speaker 1: In football, we're seeing the Raiders, they're moving to Las Vegas.

530
00:28:37,440 --> 00:28:39,680
Speaker 1: There is an NHL team now that's setting up in

531
00:28:39,760 --> 00:28:42,720
Speaker 1: Las Vegas. Will we one day see a baseball team

532
00:28:42,720 --> 00:28:45,880
Speaker 1: in Las Vegas? I just don't know as of now.

533
00:28:45,960 --> 00:28:49,760
Speaker 1: I'm not aware of any expansion plans for baseball, and

534
00:28:49,760 --> 00:28:53,240
Speaker 1: I'm not aware of any teams who are seeking to relocate,

535
00:28:54,040 --> 00:28:56,440
Speaker 1: So I just don't know. I think baseball is different

536
00:28:56,480 --> 00:28:59,800
Speaker 1: than events football. For for town like Las Vegas with

537
00:29:00,080 --> 00:29:04,760
Speaker 1: as you know, a great city, but um, the population wise,

538
00:29:05,240 --> 00:29:08,280
Speaker 1: I think it's the you probably no better, forty forty

539
00:29:08,480 --> 00:29:12,320
Speaker 1: second biggest media market, and you know, I think it's

540
00:29:12,360 --> 00:29:14,320
Speaker 1: just a different measure when you're playing a hundred and

541
00:29:14,360 --> 00:29:17,840
Speaker 1: sixty two games rather than playing six. Ready, you're not

542
00:29:17,880 --> 00:29:20,520
Speaker 1: a verse from clemingling brands. You're in on the soccer

543
00:29:20,560 --> 00:29:23,080
Speaker 1: game as well. It's not just Pinstripe and baseball. Part

544
00:29:23,120 --> 00:29:26,960
Speaker 1: owner of NYCFC along with Manchester City. A while back

545
00:29:26,960 --> 00:29:30,360
Speaker 1: you had an affiliation with Manchester United. What about the

546
00:29:30,520 --> 00:29:34,960
Speaker 1: power of these global brands? What can you accomplish together

547
00:29:35,560 --> 00:29:38,840
Speaker 1: with all these great global brands. We have a a

548
00:29:38,880 --> 00:29:43,120
Speaker 1: company called Legends Hospitality where our partner is the Dallas Cowboys.

549
00:29:43,160 --> 00:29:45,720
Speaker 1: I've heard of them, and we have of course a

550
00:29:45,880 --> 00:29:49,640
Speaker 1: partnership with the Manchester City and New York City football club.

551
00:29:50,160 --> 00:29:53,800
Speaker 1: I think the best way to describe it is, you know,

552
00:29:53,880 --> 00:29:57,600
Speaker 1: these unique brands, they have very successful people running them

553
00:29:58,120 --> 00:30:01,840
Speaker 1: uh similar ideas on you know, had had a win,

554
00:30:02,120 --> 00:30:05,960
Speaker 1: which is very important how to create value, and you

555
00:30:06,000 --> 00:30:10,280
Speaker 1: know had a cross market with each other to try

556
00:30:10,320 --> 00:30:15,080
Speaker 1: and you know, reach fans that you may not not

557
00:30:15,200 --> 00:30:19,320
Speaker 1: have been able to reach before. So I mean, you know,

558
00:30:19,360 --> 00:30:22,600
Speaker 1: there's a great appeal when you have two great brands together.

559
00:30:23,400 --> 00:30:25,800
Speaker 1: When you do business with people, you know, it gets

560
00:30:25,840 --> 00:30:28,600
Speaker 1: their attention. They know that you know, the people there,

561
00:30:28,920 --> 00:30:31,600
Speaker 1: you know, have a long history of success in this business.

562
00:30:32,440 --> 00:30:35,280
Speaker 1: People here, you know, know what they're doing and have

563
00:30:35,440 --> 00:30:39,560
Speaker 1: great reach to the marketplace, so it helps. Thank you, Randy,

564
00:30:39,560 --> 00:30:42,040
Speaker 1: thanks for joining us. All the best guys are thanks

565
00:30:42,080 --> 00:30:44,360
Speaker 1: to our guest. This our New York Yankees President Randy

566
00:30:44,440 --> 00:30:48,160
Speaker 1: Levin and Sal Galaxyoto, the founder of Galaxyoto Sports Partners.

567
00:30:48,200 --> 00:30:51,240
Speaker 1: You've been listening to Bloomberg Business of Sports on Bloomberg

568
00:30:51,320 --> 00:30:54,600
Speaker 1: Radio around the world. We're here every week at the

569
00:30:54,640 --> 00:30:58,440
Speaker 1: same time exploring the world money and sports. Michael and

570
00:30:58,520 --> 00:31:01,000
Speaker 1: I'm Scott. Thanks for joy to us, and please tune

571
00:31:01,000 --> 00:31:03,960
Speaker 1: in next week when we follow the money in schools.

572
00:31:04,600 --> 00:31:04,640
Speaker 1: M