1
00:00:02,480 --> 00:00:06,840
Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

2
00:00:07,760 --> 00:00:10,320
Speaker 2: This is Bloomberg Business of Sports.

3
00:00:10,480 --> 00:00:13,280
Speaker 3: Business of Sports can be intimidating for hard for a

4
00:00:13,360 --> 00:00:16,000
Speaker 3: starting to break into. We really appreciate when our owners

5
00:00:16,040 --> 00:00:18,520
Speaker 3: are actually there, you know, with us through the journey.

6
00:00:18,560 --> 00:00:22,080
Speaker 1: Teams ours especially have been very intentional to diversify at

7
00:00:22,120 --> 00:00:23,960
Speaker 1: all levels of the company. Maybe we're in the golden

8
00:00:24,079 --> 00:00:26,400
Speaker 1: years for the NFL and college football.

9
00:00:26,480 --> 00:00:30,040
Speaker 3: Our demographic reach has continued to explain this is going

10
00:00:30,120 --> 00:00:34,240
Speaker 3: to be really unlocking the streaming platform for sports fans.

11
00:00:34,320 --> 00:00:36,800
Speaker 2: Sports evaluations arising. We'll see when they peak.

12
00:00:36,880 --> 00:00:39,400
Speaker 3: You don't have to be the best in your sport

13
00:00:39,520 --> 00:00:42,400
Speaker 3: to make a whole ton of money.

14
00:00:42,440 --> 00:00:45,360
Speaker 2: Bloomberg Business of Sports from Bloomberg Radio.

15
00:00:47,880 --> 00:00:50,440
Speaker 4: This is the Bloomberg Business of Sports Show. Will we

16
00:00:50,560 --> 00:00:52,839
Speaker 4: explore the big money issues in the world of sports.

17
00:00:52,880 --> 00:00:55,760
Speaker 4: I'm Michael Barr Scarlett Fuo. We'll join us a little

18
00:00:55,840 --> 00:00:59,080
Speaker 4: later on the program. Damian Sasaur is off this week.

19
00:00:59,480 --> 00:01:02,000
Speaker 4: Coming up on the show, we talked with Goldman Sachs

20
00:01:02,000 --> 00:01:06,000
Speaker 4: executive Dave Dasi. He's co head of the Wall Street

21
00:01:06,160 --> 00:01:10,800
Speaker 4: Giants Sports franchise division. We'll get his thoughts on why

22
00:01:11,000 --> 00:01:14,560
Speaker 4: we're seeing so many big money investors diving into sports

23
00:01:14,920 --> 00:01:17,920
Speaker 4: and where we are in key sports industry.

24
00:01:18,240 --> 00:01:20,560
Speaker 3: When you make the fan experience great and fans want

25
00:01:20,600 --> 00:01:25,200
Speaker 3: to be there, and you start having premium experiences, differentiated experiences,

26
00:01:25,200 --> 00:01:29,119
Speaker 3: different ability for individuals families to come in off cycle

27
00:01:29,240 --> 00:01:31,520
Speaker 3: kind of touch and feel right the team, the product,

28
00:01:31,560 --> 00:01:34,200
Speaker 3: the players, the stadium and feel like they're part of

29
00:01:34,240 --> 00:01:38,600
Speaker 3: the collective ownership of that team in that community. That's

30
00:01:38,640 --> 00:01:42,480
Speaker 3: what really drives, right, the value, the psychic value of

31
00:01:42,520 --> 00:01:43,559
Speaker 3: these All that.

32
00:01:43,640 --> 00:01:46,160
Speaker 4: Is on the way on the Bloomberg Business of Sports.

33
00:01:46,280 --> 00:01:49,280
Speaker 4: But first we dive into a couple of big stories

34
00:01:49,320 --> 00:01:52,880
Speaker 4: we've been tackling lately, starting with a big development in Boston.

35
00:01:53,040 --> 00:01:57,320
Speaker 4: Fresh off of winning the NBA Championship, the Celtics could

36
00:01:57,400 --> 00:01:59,920
Speaker 4: be up for grabs. To dive into that and more,

37
00:02:00,160 --> 00:02:04,840
Speaker 4: we welcome Bloomberg News Sports editor Matthew Townsend. Matt, welcome

38
00:02:04,880 --> 00:02:08,400
Speaker 4: to the Bloomberg Business of Sports. Sure, happy to be here. Well,

39
00:02:08,480 --> 00:02:10,760
Speaker 4: let's start with the Celtics. I guess this is the

40
00:02:10,800 --> 00:02:16,560
Speaker 4: epitome of sell high. It really looks like that. Yeah,

41
00:02:16,720 --> 00:02:20,000
Speaker 4: the Boston Celtics had the best regular season, they cruise

42
00:02:20,040 --> 00:02:22,840
Speaker 4: to a title, they have young stars and guys like

43
00:02:22,919 --> 00:02:26,960
Speaker 4: Jason Tatum and Jaln Brown. Basically it looks, you know,

44
00:02:27,040 --> 00:02:29,079
Speaker 4: like they're going to be really good for the next

45
00:02:29,080 --> 00:02:31,800
Speaker 4: few years, and all of a sudden, this announce comes

46
00:02:31,800 --> 00:02:33,920
Speaker 4: out that they are going to seek a sale of

47
00:02:33,960 --> 00:02:38,760
Speaker 4: the team. Like you said, it is a good time

48
00:02:38,760 --> 00:02:41,400
Speaker 4: to sell an NBA franchise or really any sports franchise,

49
00:02:41,440 --> 00:02:44,680
Speaker 4: because the evaluations for teams have gone up so much.

50
00:02:45,639 --> 00:02:49,320
Speaker 4: I did some calculations. So this ownership group bought the

51
00:02:49,360 --> 00:02:51,639
Speaker 4: Celtics in two thousand and two for three hundred and

52
00:02:51,639 --> 00:02:54,200
Speaker 4: sixty million dollars. People are saying they could go for

53
00:02:54,280 --> 00:02:55,919
Speaker 4: five and a half or six billion. I mean, that's

54
00:02:55,960 --> 00:02:58,440
Speaker 4: a return of like thirteen to fifteen percent a year.

55
00:02:59,080 --> 00:03:04,120
Speaker 4: My goodness. Well, and remember now, teams like the Phoenix Suns,

56
00:03:04,240 --> 00:03:07,600
Speaker 4: the Charlotte Hornets, Dallas Mavericks, they all went for three

57
00:03:07,919 --> 00:03:11,239
Speaker 4: billion dollars or more. So it's not going to be

58
00:03:11,280 --> 00:03:15,400
Speaker 4: unheard of, obviously for the Celtics to sell for that much.

59
00:03:15,440 --> 00:03:18,760
Speaker 4: I mean, my goodness. I mean, there's the old saying

60
00:03:18,800 --> 00:03:22,280
Speaker 4: when do you make money on a team is when

61
00:03:22,360 --> 00:03:24,600
Speaker 4: you sell it. They're going to make a fistload.

62
00:03:24,919 --> 00:03:31,080
Speaker 5: Yeah, they're looking at a big payday. Like I said,

63
00:03:31,120 --> 00:03:33,520
Speaker 5: they bought this team, you know, over twenty years ago.

64
00:03:34,320 --> 00:03:36,640
Speaker 5: But one of the really interesting things that came out

65
00:03:36,680 --> 00:03:39,600
Speaker 5: in some of the coverage of this is that the

66
00:03:39,600 --> 00:03:43,520
Speaker 5: Celtics ownership group actually said recently that they were going

67
00:03:43,520 --> 00:03:47,400
Speaker 5: to lose money this year, and that's because they've spent

68
00:03:47,440 --> 00:03:49,200
Speaker 5: so much on the payroll. Now, the NBA does have

69
00:03:49,240 --> 00:03:50,960
Speaker 5: a salary cap, but what teams do is they can

70
00:03:51,000 --> 00:03:53,360
Speaker 5: go over the cap and just pay more in taxes.

71
00:03:53,400 --> 00:03:56,040
Speaker 5: It's called a luxury tax. And they do have this

72
00:03:56,120 --> 00:03:58,840
Speaker 5: great team. But to get this great team, they've won

73
00:03:58,920 --> 00:04:00,680
Speaker 5: spent a lot of money on pay They've gone over

74
00:04:00,720 --> 00:04:03,840
Speaker 5: into the luxury text. And not only that, their future

75
00:04:03,920 --> 00:04:06,520
Speaker 5: years after this year. I think they're on the hook

76
00:04:06,560 --> 00:04:09,720
Speaker 5: for almost a billion dollars in contracts. So you look

77
00:04:09,720 --> 00:04:12,240
Speaker 5: at the moment the Celtics are in, they're looking at

78
00:04:12,280 --> 00:04:16,160
Speaker 5: a potentially a sort of rough patch going forward. I mean,

79
00:04:16,160 --> 00:04:18,599
Speaker 5: they might win another title or two, which would be great,

80
00:04:18,680 --> 00:04:21,960
Speaker 5: but they're going to have to really deal with this

81
00:04:22,120 --> 00:04:24,560
Speaker 5: debt load they have, or this liabilities though they have

82
00:04:24,640 --> 00:04:28,640
Speaker 5: with all these contracts. So if you're the franchise owners,

83
00:04:28,640 --> 00:04:31,400
Speaker 5: now this looks like a great time to sell because one,

84
00:04:31,640 --> 00:04:34,400
Speaker 5: vouations are up, until you're facing a lot more sort

85
00:04:34,400 --> 00:04:35,960
Speaker 5: of financial risk going forward.

86
00:04:36,200 --> 00:04:39,080
Speaker 4: Now you should explain how this is structured. According to

87
00:04:39,120 --> 00:04:43,080
Speaker 4: the owners, Boston Basketball Partners, they expect to sell a

88
00:04:43,160 --> 00:04:47,120
Speaker 4: majority interest this year or early next year, and then

89
00:04:47,160 --> 00:04:50,559
Speaker 4: the remainder closing in twenty twenty eight. Now that brings

90
00:04:50,640 --> 00:04:55,120
Speaker 4: up two possibilities. One who's going to come in, but

91
00:04:55,680 --> 00:04:59,719
Speaker 4: also there's the chance of foreign money coming in this, Matt, Yeah,

92
00:04:59,760 --> 00:05:00,280
Speaker 4: that's sure.

93
00:05:00,320 --> 00:05:03,920
Speaker 5: The the NBA does allow foreign investment. You know, we've

94
00:05:03,960 --> 00:05:08,320
Speaker 5: reported a lot about the push into pro sports ownership

95
00:05:08,880 --> 00:05:15,960
Speaker 5: by institutions, private equity, taking stakes, other investors, you know,

96
00:05:16,600 --> 00:05:19,320
Speaker 5: like you pointed out some other teams have recently sold.

97
00:05:20,440 --> 00:05:21,960
Speaker 5: So I don't think, you know, this should get a

98
00:05:22,000 --> 00:05:25,960
Speaker 5: ton of interest even with sort of what we laid

99
00:05:25,960 --> 00:05:30,039
Speaker 5: out is our sort of financial headaches going forward. But

100
00:05:30,120 --> 00:05:31,880
Speaker 5: you know, you look at the brand. I mean, they've

101
00:05:31,880 --> 00:05:34,279
Speaker 5: won the most titles. I mean it's it's basically the

102
00:05:34,279 --> 00:05:36,599
Speaker 5: Celtics and the Lakers and the Knicks or you know,

103
00:05:36,640 --> 00:05:41,080
Speaker 5: the most highly valued franchises and the Warriors. So yeah,

104
00:05:41,120 --> 00:05:42,880
Speaker 5: this this, this is going to be a very interesting

105
00:05:42,920 --> 00:05:47,479
Speaker 5: sale and you know, it's not often that like a

106
00:05:47,520 --> 00:05:51,080
Speaker 5: perennial sort of storied franchise comes up for sale in

107
00:05:51,160 --> 00:05:52,160
Speaker 5: pro sports.

108
00:05:52,080 --> 00:05:54,440
Speaker 4: And this is one of those deals and we always

109
00:05:54,520 --> 00:05:58,760
Speaker 4: talk about it the broadcast rights, and part of this

110
00:05:59,520 --> 00:06:03,760
Speaker 4: is baked into the equation of selling this team. I

111
00:06:03,760 --> 00:06:05,960
Speaker 4: think what they're they're trying to work out a deal

112
00:06:06,040 --> 00:06:11,560
Speaker 4: now to with several partners, including a seventy six billion

113
00:06:11,600 --> 00:06:14,440
Speaker 4: dollar deal with ESPN. With the NBA.

114
00:06:14,680 --> 00:06:18,280
Speaker 5: Yeah, the NBA has their media rights deal currently being negotiated,

115
00:06:19,680 --> 00:06:22,240
Speaker 5: so yeah, the speculation is it could be as much

116
00:06:22,240 --> 00:06:26,200
Speaker 5: as seventy six billion dollars. So this would this is

117
00:06:26,240 --> 00:06:28,640
Speaker 5: you know, how fans will watch the games going forward

118
00:06:28,680 --> 00:06:34,120
Speaker 5: on which which networks get the games. The NBA is

119
00:06:34,160 --> 00:06:39,280
Speaker 5: still very popular, it's so you would assume that, you know,

120
00:06:39,320 --> 00:06:42,479
Speaker 5: that's going to lift the financial resources of each team.

121
00:06:42,560 --> 00:06:44,720
Speaker 5: So that's definitely part of the play here. If you're

122
00:06:44,720 --> 00:06:46,400
Speaker 5: going to buy this team, you're looking at a new deal.

123
00:06:46,480 --> 00:06:49,240
Speaker 4: And I should add at Comcast, at Amazon also involved

124
00:06:49,279 --> 00:06:52,159
Speaker 4: in this big old deal with this big old money. Yeah.

125
00:06:52,279 --> 00:06:54,960
Speaker 5: Live Sports, you know, we've reported on this like NonStop

126
00:06:55,040 --> 00:07:01,719
Speaker 5: is a very valuable asset. All the streaming networks are

127
00:07:01,920 --> 00:07:04,600
Speaker 5: looking at get or have gotten into live sports and

128
00:07:04,680 --> 00:07:08,400
Speaker 5: will become bidders on live sports going forward. Amazon probably

129
00:07:08,400 --> 00:07:10,880
Speaker 5: being the most prominent with you know, they've gotten NFL games,

130
00:07:10,920 --> 00:07:14,040
Speaker 5: they have MLB, so NBA looks like they'll be going

131
00:07:14,160 --> 00:07:17,160
Speaker 5: that route as well. So yeah, that's that's one pro

132
00:07:17,240 --> 00:07:20,120
Speaker 5: for buying the Celtics is that they are going to

133
00:07:20,160 --> 00:07:22,200
Speaker 5: be part of an NBA with a new media deal

134
00:07:22,240 --> 00:07:24,240
Speaker 5: where there'll be more money coming into each team.

135
00:07:24,520 --> 00:07:27,440
Speaker 4: Now an the NBA commissioner Adam Silver, he's talking about,

136
00:07:27,480 --> 00:07:31,360
Speaker 4: you know, we could add two more teams to this

137
00:07:31,520 --> 00:07:37,000
Speaker 4: league at you only have so many teams in the association,

138
00:07:37,680 --> 00:07:40,240
Speaker 4: and yes, it would be nice to add two more,

139
00:07:40,280 --> 00:07:43,280
Speaker 4: but whoever comes in, they're still going to pay billions

140
00:07:43,320 --> 00:07:44,080
Speaker 4: of dollars.

141
00:07:44,560 --> 00:07:47,600
Speaker 5: Yeah, the there's been reporting that they're going to look

142
00:07:47,600 --> 00:07:51,840
Speaker 5: at two teams. The leading candidates are Seattle, I believe,

143
00:07:52,280 --> 00:07:57,120
Speaker 5: and Las Vegas. Some people have been saying that those

144
00:07:57,200 --> 00:08:00,000
Speaker 5: franchises will probably sell for four to five billion dollars.

145
00:08:02,000 --> 00:08:06,400
Speaker 5: So yeah, the league also is looking potentially at overseas

146
00:08:08,480 --> 00:08:11,200
Speaker 5: expansion as well. At some point there's been reporting on that.

147
00:08:11,720 --> 00:08:14,000
Speaker 5: So yeah, the league has a bright future for sure,

148
00:08:14,120 --> 00:08:16,920
Speaker 5: and if you consider an expansion team maybe going for

149
00:08:16,960 --> 00:08:20,040
Speaker 5: four or five billion, then the Celtics obviously would potentially

150
00:08:20,040 --> 00:08:20,720
Speaker 5: go for more than that.

151
00:08:21,160 --> 00:08:23,280
Speaker 4: We were talking about this earlier before we went on

152
00:08:23,320 --> 00:08:26,560
Speaker 4: the air, and this is now about what happened in

153
00:08:26,640 --> 00:08:32,120
Speaker 4: the NFL and the legal loss that has taken place

154
00:08:32,240 --> 00:08:37,680
Speaker 4: because the Sunday Sports ticket, the class action lawsuits and

155
00:08:37,720 --> 00:08:41,000
Speaker 4: fans said you know what, I'm not digging this, and

156
00:08:41,080 --> 00:08:45,120
Speaker 4: they filed a lawsuit. They said that the league was

157
00:08:45,840 --> 00:08:50,680
Speaker 4: monopolizing what was going down. The prices were shooting up,

158
00:08:51,000 --> 00:08:55,600
Speaker 4: and then they weren't getting games of their teams. Even

159
00:08:55,640 --> 00:08:58,200
Speaker 4: when the team was not playing, they were still paying

160
00:08:58,400 --> 00:09:03,520
Speaker 4: for this Sunday NFL ticket. Yeah, this was a surprise.

161
00:09:03,600 --> 00:09:05,480
Speaker 4: I mean, I mean some people have called it a shock.

162
00:09:06,240 --> 00:09:10,079
Speaker 4: Class action lawsuit that was filed years ago finally went

163
00:09:10,120 --> 00:09:14,959
Speaker 4: to trial. The NFL didn't settle, They decided not to settle.

164
00:09:15,000 --> 00:09:17,320
Speaker 4: The owners pushed the league not to settle, so they

165
00:09:17,360 --> 00:09:21,440
Speaker 4: went to trial and they have this damages against them now.

166
00:09:21,520 --> 00:09:23,800
Speaker 4: Granted though will be appeals and more of a legal

167
00:09:23,800 --> 00:09:25,599
Speaker 4: process to play out, but they the end of the

168
00:09:25,720 --> 00:09:27,360
Speaker 4: NFL could be on the hook for as much as

169
00:09:27,360 --> 00:09:30,680
Speaker 4: like fourteen or fifteen billion dollars damages. And what this

170
00:09:30,880 --> 00:09:33,840
Speaker 4: is is, for example, I'm an Eagles fan, a philadelph

171
00:09:33,880 --> 00:09:34,280
Speaker 4: Eagles fan.

172
00:09:34,280 --> 00:09:37,079
Speaker 5: I live in New York. The Eagles aren't on local

173
00:09:37,120 --> 00:09:39,000
Speaker 5: television all that much, so if I want to watch

174
00:09:39,000 --> 00:09:40,520
Speaker 5: the games, I got to pay for the NFL ticket,

175
00:09:40,720 --> 00:09:43,839
Speaker 5: the Sunday ticket. And what the lawsuit was saying is

176
00:09:43,880 --> 00:09:45,880
Speaker 5: it's not fair that I have to basically pay this

177
00:09:46,240 --> 00:09:49,600
Speaker 5: price four hundred dollars a year basically for all the games.

178
00:09:49,720 --> 00:09:51,600
Speaker 5: Why can't I just buy the games that I want

179
00:09:51,640 --> 00:09:56,720
Speaker 5: to watch? And that's sort of what this could evolve into,

180
00:09:56,920 --> 00:10:00,960
Speaker 5: is like some change and how fans can can buy

181
00:10:01,280 --> 00:10:06,520
Speaker 5: or get the right to view games of teams not

182
00:10:06,720 --> 00:10:09,840
Speaker 5: where they are, so I could actually maybe buy just

183
00:10:10,280 --> 00:10:12,240
Speaker 5: Eagles games at a lot of price.

184
00:10:12,720 --> 00:10:15,439
Speaker 4: We're talking with Matt Townsend, sports editor here at Bloomberg,

185
00:10:15,600 --> 00:10:19,480
Speaker 4: And initially it started out for four point seven billion

186
00:10:19,520 --> 00:10:22,320
Speaker 4: dollars in damages, and you're right, it could go to

187
00:10:22,360 --> 00:10:24,920
Speaker 4: fifteen billion dollars and that's because of federal law.

188
00:10:25,480 --> 00:10:27,840
Speaker 5: That's right. And there's been a lot of questions about

189
00:10:27,840 --> 00:10:31,520
Speaker 5: how the NFL would deal with that sort of payout

190
00:10:31,559 --> 00:10:34,880
Speaker 5: if it had to, If that came to that. You know,

191
00:10:35,040 --> 00:10:37,760
Speaker 5: they would probably have to do an assessment against all

192
00:10:37,800 --> 00:10:41,360
Speaker 5: the teams in the league. And granted, the NFL does

193
00:10:41,440 --> 00:10:43,400
Speaker 5: make a lot of money, but they don't have this

194
00:10:43,520 --> 00:10:46,199
Speaker 5: much money, so there's a lot of questions about where

195
00:10:46,240 --> 00:10:49,360
Speaker 5: they have to take on debt, you know, where would

196
00:10:49,400 --> 00:10:52,440
Speaker 5: the money come from. There's also I mean, a lot

197
00:10:52,480 --> 00:10:55,480
Speaker 5: of people think this could be a settlement. Before when

198
00:10:55,520 --> 00:10:57,400
Speaker 5: hour we were talking about, there was a similar case

199
00:10:57,440 --> 00:11:00,439
Speaker 5: with Major League Baseball Class Section lawsuit and that actually

200
00:11:00,480 --> 00:11:03,360
Speaker 5: pushed Major League Baseball to change how it sells out

201
00:11:03,360 --> 00:11:05,959
Speaker 5: of market games so you can just buy your team's

202
00:11:06,040 --> 00:11:08,480
Speaker 5: games a package just for your team, and some of

203
00:11:08,520 --> 00:11:10,560
Speaker 5: the leagues have done even gone even farther. We can

204
00:11:10,600 --> 00:11:12,360
Speaker 5: just buy single games and things like that.

205
00:11:12,880 --> 00:11:15,000
Speaker 4: Well, that brings me to a two part of question.

206
00:11:15,000 --> 00:11:19,360
Speaker 4: I only ask part one. First, is that the NBA

207
00:11:19,679 --> 00:11:22,679
Speaker 4: has done something like that. In fact, they've broken it

208
00:11:22,720 --> 00:11:26,120
Speaker 4: down to where you can get it for if you

209
00:11:26,160 --> 00:11:30,000
Speaker 4: want the fourth quarter, you could get that. I'm wondering

210
00:11:30,080 --> 00:11:34,480
Speaker 4: now if all of the major food groups in sports

211
00:11:34,520 --> 00:11:35,960
Speaker 4: are going to look at something like that.

212
00:11:37,880 --> 00:11:39,800
Speaker 5: To me, it makes sense. I mean, the way people

213
00:11:40,360 --> 00:11:45,640
Speaker 5: view media now, it's in bits and snippets and being

214
00:11:45,679 --> 00:11:48,400
Speaker 5: able just to especially with the way the sports betting

215
00:11:48,400 --> 00:11:52,000
Speaker 5: culture is now too. That's another thing for this. It's look,

216
00:11:52,000 --> 00:11:54,000
Speaker 5: if I can just watch in the last few minutes

217
00:11:54,000 --> 00:11:56,959
Speaker 5: of a close game and pay three dollars four dollars

218
00:11:57,000 --> 00:12:00,520
Speaker 5: like that doesn't seem like that big of an expense Versus, oh,

219
00:12:00,520 --> 00:12:02,319
Speaker 5: I got to put four dollars my credit card to

220
00:12:02,360 --> 00:12:04,160
Speaker 5: watch to get the Sunday ticket.

221
00:12:05,000 --> 00:12:05,480
Speaker 4: So it is.

222
00:12:05,559 --> 00:12:09,080
Speaker 5: You know, it's a business decision. We potentially grow your

223
00:12:09,120 --> 00:12:12,920
Speaker 5: revenue by offering all these little games and snippets on

224
00:12:13,000 --> 00:12:16,000
Speaker 5: a piecemeal basis or sticking to just this one size

225
00:12:16,000 --> 00:12:18,560
Speaker 5: fits all. If you want to watch anything out of market,

226
00:12:18,920 --> 00:12:20,559
Speaker 5: you got to pit us this one fee.

227
00:12:21,040 --> 00:12:24,839
Speaker 4: Matt Townsend, he is the sports editor right here at Bloomberg. Matt,

228
00:12:25,120 --> 00:12:27,880
Speaker 4: thank you so much. You are gold as usual, and

229
00:12:28,000 --> 00:12:30,920
Speaker 4: thank you for dropping your knowledge here. We appreciate it.

230
00:12:30,960 --> 00:12:33,240
Speaker 4: On the Bloomberg Business of Sports. Thank you, sir, Thank you.

231
00:12:33,320 --> 00:12:34,520
Speaker 6: This is fun. Up.

232
00:12:34,559 --> 00:12:37,280
Speaker 4: Next, we turn to how Wall Street is leaning into

233
00:12:37,320 --> 00:12:41,040
Speaker 4: the world of sports with Golden Sachs executive Dave Doci.

234
00:12:41,400 --> 00:12:45,000
Speaker 4: You're listening to the Bloomberg Business of Sports from Bloomberg

235
00:12:45,240 --> 00:12:47,120
Speaker 4: Radio around the world.

236
00:12:58,040 --> 00:13:02,199
Speaker 2: You're listening to Bloomberg Business of Sports from Bloomberg Radio.

237
00:13:04,000 --> 00:13:06,360
Speaker 4: This is the Bloomberg Business of Sports Show, where we

238
00:13:06,440 --> 00:13:08,640
Speaker 4: explore the big money issues in the world of sports.

239
00:13:08,679 --> 00:13:12,720
Speaker 4: I'm Michael Barr, along with Scarlet fou and special guest

240
00:13:12,760 --> 00:13:18,120
Speaker 4: host Bloomberg US Sports business reporter Randall Williams Damian Sasaur.

241
00:13:18,360 --> 00:13:21,520
Speaker 4: We'll be back next week. Wall Street is investing big

242
00:13:21,559 --> 00:13:24,920
Speaker 4: into sports, and we have just the guest to talk

243
00:13:24,960 --> 00:13:29,080
Speaker 4: it through. Dave Nasi is head of the Southeast Region

244
00:13:29,320 --> 00:13:33,600
Speaker 4: and global cohead of the sports franchise in Investment banking

245
00:13:33,840 --> 00:13:38,559
Speaker 4: at Goldman Sachs. Hey, Dave, welcome to the Bloomberg Business Sports.

246
00:13:38,679 --> 00:13:40,080
Speaker 3: Thank you great to be here today.

247
00:13:40,240 --> 00:13:42,679
Speaker 1: Let's talk a little bit about the business of sports,

248
00:13:42,720 --> 00:13:46,360
Speaker 1: because right now it's all about billionaire investors targeting sports

249
00:13:46,440 --> 00:13:50,080
Speaker 1: franchises and driving up valuations in the process, sometimes on

250
00:13:50,120 --> 00:13:53,040
Speaker 1: their own, sometimes on behalf of a fund, depending on

251
00:13:53,080 --> 00:13:55,839
Speaker 1: what lead we're talking about. I'm curious, Dave, if you

252
00:13:56,000 --> 00:13:58,640
Speaker 1: had to pick, is this trend driven more by the

253
00:13:58,800 --> 00:14:02,439
Speaker 1: old guard wanting to to cash out or buy institutional

254
00:14:02,480 --> 00:14:04,880
Speaker 1: money wanting to get in, which is a bigger impetus.

255
00:14:05,840 --> 00:14:07,400
Speaker 3: Look it's a good question. I mean, I think it's

256
00:14:07,400 --> 00:14:10,160
Speaker 3: definitely both. I would say the core of it is

257
00:14:10,160 --> 00:14:13,000
Speaker 3: the fundamentals of the business and what sports is, and

258
00:14:12,720 --> 00:14:15,720
Speaker 3: we can certainly get to that, but just the uniqueness

259
00:14:15,720 --> 00:14:19,080
Speaker 3: of the content, the ability to aggregate audience, the ability

260
00:14:19,120 --> 00:14:21,920
Speaker 3: to distribute that in a more point to point method

261
00:14:21,920 --> 00:14:25,600
Speaker 3: now through direct consumer and others have really shown this

262
00:14:25,680 --> 00:14:28,520
Speaker 3: to be. When you come in, you put in professional management,

263
00:14:28,560 --> 00:14:31,840
Speaker 3: and you really run the sports franchises as a true

264
00:14:31,880 --> 00:14:34,840
Speaker 3: operating business, it's shown to be there's a lot there,

265
00:14:35,080 --> 00:14:39,600
Speaker 3: and there's been significant improvement in terms of how owners

266
00:14:40,200 --> 00:14:42,920
Speaker 3: are able to engage fans, get more engagement with the team,

267
00:14:43,120 --> 00:14:45,240
Speaker 3: and ultimately that's been very very helpful in terms of

268
00:14:45,280 --> 00:14:46,160
Speaker 3: driving value.

269
00:14:47,040 --> 00:14:50,480
Speaker 1: Now eventually at some point they'll want to realize that

270
00:14:50,560 --> 00:14:52,760
Speaker 1: value as well. And the drawback here when it comes

271
00:14:52,800 --> 00:14:55,320
Speaker 1: to these professional sports teams is there's a lack of liquidity.

272
00:14:55,920 --> 00:14:58,240
Speaker 1: In what specific way could that become a meaningful risk

273
00:14:58,320 --> 00:14:59,520
Speaker 1: for this group of investors?

274
00:15:00,320 --> 00:15:02,160
Speaker 3: Yeah, I think, I mean, we talk about lack of liquidity,

275
00:15:02,200 --> 00:15:05,280
Speaker 3: and certainly there is, but every other ill liquid private

276
00:15:05,320 --> 00:15:09,760
Speaker 3: asset class has ill liquid characteristics associated with it, and

277
00:15:09,760 --> 00:15:11,680
Speaker 3: that's certainly something they have to work through as well.

278
00:15:12,000 --> 00:15:14,440
Speaker 3: But you look at team sales and where valuations have

279
00:15:14,480 --> 00:15:17,360
Speaker 3: gone over the last decade or two, and each one

280
00:15:17,400 --> 00:15:19,640
Speaker 3: of these team sales has gone up in value, and

281
00:15:19,720 --> 00:15:21,960
Speaker 3: so we can talk about lack of liquidity for sure,

282
00:15:22,000 --> 00:15:24,320
Speaker 3: and it's a critical component, and I think it's part

283
00:15:24,360 --> 00:15:26,960
Speaker 3: of the future, the evolution and the innovation which is

284
00:15:27,200 --> 00:15:29,840
Speaker 3: taking place and is going to take more place as

285
00:15:29,880 --> 00:15:32,360
Speaker 3: we go forward. But so far, at least on the

286
00:15:32,440 --> 00:15:34,760
Speaker 3: change of control transactions, there's been enough liquidity out there.

287
00:15:34,800 --> 00:15:37,960
Speaker 3: And remember the scarcity value of these teams. We have

288
00:15:38,040 --> 00:15:41,160
Speaker 3: expansion periodically, but there are a lot more billionaires and

289
00:15:41,200 --> 00:15:44,040
Speaker 3: deca billionaires being created on a global basis than there

290
00:15:44,040 --> 00:15:47,120
Speaker 3: are actual teams and franchises, and so there's enormous scarcity

291
00:15:47,200 --> 00:15:49,880
Speaker 3: value and that's been a part of driving up the

292
00:15:49,960 --> 00:15:53,680
Speaker 3: valuations here as well. I think going forward, having this

293
00:15:53,760 --> 00:15:56,760
Speaker 3: institutional capital come in, having the leagues open up take

294
00:15:56,840 --> 00:15:59,280
Speaker 3: steps in terms of bringing it in. It's brought in

295
00:15:59,320 --> 00:16:02,880
Speaker 3: a whole different form of capital and opportunity, and I

296
00:16:02,920 --> 00:16:05,080
Speaker 3: wouldn't say it's completely to the masses yet, but you

297
00:16:05,240 --> 00:16:07,920
Speaker 3: referenced ARC Toasts and other funds which have been able

298
00:16:07,920 --> 00:16:11,360
Speaker 3: to raise capital invest in minority stakes, which has been very,

299
00:16:11,480 --> 00:16:14,400
Speaker 3: very additive and helpful because one of the issues on

300
00:16:14,440 --> 00:16:16,480
Speaker 3: the liquidity, it's been less from a GP perspective or

301
00:16:16,480 --> 00:16:20,040
Speaker 3: a control person perspective. It's been more on the LP perspective.

302
00:16:20,040 --> 00:16:22,320
Speaker 3: And so having the ability to provide some form of

303
00:16:22,400 --> 00:16:25,840
Speaker 3: liquidity into these teams start to trade a little bit more,

304
00:16:25,960 --> 00:16:29,840
Speaker 3: establish more valuations has really opened eyes in terms of

305
00:16:29,880 --> 00:16:32,280
Speaker 3: what the returns can look like in this business is

306
00:16:32,320 --> 00:16:34,360
Speaker 3: attracted more capital, and so there is more and more

307
00:16:34,400 --> 00:16:35,720
Speaker 3: capital which is trying to come in.

308
00:16:36,320 --> 00:16:38,080
Speaker 7: How often do you think some of these leagues are

309
00:16:38,080 --> 00:16:41,120
Speaker 7: going to have to evolve their ownership rules because you know,

310
00:16:41,200 --> 00:16:45,200
Speaker 7: the NFL has shifted its debt holdings or the specific

311
00:16:45,200 --> 00:16:46,880
Speaker 7: amount of debt that a team can have. I think

312
00:16:46,920 --> 00:16:48,560
Speaker 7: over it like three times or four times over the

313
00:16:48,640 --> 00:16:52,480
Speaker 7: last year. NBA might do something similar after this Timberwool situation.

314
00:16:52,720 --> 00:16:54,200
Speaker 7: How often do you think this is going to happen

315
00:16:54,240 --> 00:16:57,600
Speaker 7: because of rising valuations, because of ownership issues, Sometimes things

316
00:16:57,640 --> 00:16:58,680
Speaker 7: like that that happen.

317
00:16:58,880 --> 00:17:00,640
Speaker 3: Yeah, it's a great question, and I think it's still

318
00:17:00,640 --> 00:17:03,080
Speaker 3: early days right in terms of the institutional capital coming

319
00:17:03,120 --> 00:17:05,879
Speaker 3: in and we need there's definitely proof of concept with

320
00:17:05,920 --> 00:17:08,359
Speaker 3: it coming in. There's been a handful of episodes where

321
00:17:08,359 --> 00:17:10,400
Speaker 3: the capital has been able to get liquidity and Phoenix

322
00:17:10,920 --> 00:17:13,879
Speaker 3: uh with terrific you know, terrific returns, and so I

323
00:17:13,880 --> 00:17:15,639
Speaker 3: think it's I think it's definitely going to evolve. But

324
00:17:15,720 --> 00:17:19,080
Speaker 3: as we've seen with other asset classes across the economy,

325
00:17:19,320 --> 00:17:22,959
Speaker 3: once you start to move towards a path to more liquidity, uh,

326
00:17:23,080 --> 00:17:25,639
Speaker 3: it generates more interest, more capital wants to come in,

327
00:17:25,680 --> 00:17:28,320
Speaker 3: which ultimately ends up driving driving more liquidity. So I

328
00:17:28,320 --> 00:17:31,120
Speaker 3: think we're going to definitely see that. Look, I think

329
00:17:31,119 --> 00:17:33,960
Speaker 3: it'll be episodic. In terms of the leagues. You can look,

330
00:17:34,000 --> 00:17:36,440
Speaker 3: you know, look at the leverage levels on these teams

331
00:17:36,480 --> 00:17:39,600
Speaker 3: and you could say, gosh, as an operating business, what

332
00:17:39,640 --> 00:17:41,920
Speaker 3: do those leverage levels look like. You could also look

333
00:17:41,920 --> 00:17:43,560
Speaker 3: at on a loan to value basis, and I think

334
00:17:43,600 --> 00:17:45,400
Speaker 3: if you go across all the leagues and look at

335
00:17:45,560 --> 00:17:47,680
Speaker 3: what the true underlying asset value is that the change

336
00:17:47,680 --> 00:17:50,760
Speaker 3: and control values of these franchises relative to how much

337
00:17:50,880 --> 00:17:53,399
Speaker 3: debt is able to go on it, that's a relatively

338
00:17:53,880 --> 00:17:56,560
Speaker 3: you know, it'd say, conservative judgment relative to what you

339
00:17:56,560 --> 00:17:59,160
Speaker 3: may see in other other asset classes across the economy.

340
00:17:59,240 --> 00:18:02,640
Speaker 7: Now, these minority stakes that some of these teams are selling,

341
00:18:03,520 --> 00:18:06,160
Speaker 7: whether they be institutional investors or a super billionaire who

342
00:18:06,200 --> 00:18:08,200
Speaker 7: just wants ten to fifteen to twenty percent of a team,

343
00:18:08,400 --> 00:18:09,880
Speaker 7: where do you think some of this money is going

344
00:18:09,880 --> 00:18:11,800
Speaker 7: to go? Because when I spoke into someone like Clark Hunt,

345
00:18:11,840 --> 00:18:13,840
Speaker 7: who is leading these some of these efforts, he's always

346
00:18:13,960 --> 00:18:17,000
Speaker 7: spoken about stadiums and how it can help renovations and

347
00:18:17,040 --> 00:18:18,560
Speaker 7: build a stadium. But one of the other things he

348
00:18:18,600 --> 00:18:21,439
Speaker 7: said is capital intensive projects. I don't know what a

349
00:18:21,480 --> 00:18:24,000
Speaker 7: capital intensive project might look like for an NFL or

350
00:18:24,000 --> 00:18:26,560
Speaker 7: an NBA, But in your mind, outside of stadiums, where

351
00:18:26,560 --> 00:18:28,480
Speaker 7: could some of this money go for a team?

352
00:18:29,080 --> 00:18:30,800
Speaker 3: Well, I mean you touched on the biggest one, which

353
00:18:30,840 --> 00:18:33,919
Speaker 3: is definitely in the stadiums, right. And the Chiefs are

354
00:18:33,960 --> 00:18:37,200
Speaker 3: certainly going through their process now to think about where

355
00:18:37,200 --> 00:18:39,199
Speaker 3: they're we're a best suited to play and what's going

356
00:18:39,240 --> 00:18:41,720
Speaker 3: to be the best way to optimize the fan engagement

357
00:18:41,760 --> 00:18:45,600
Speaker 3: experience for their franchise. And you think about stadiums and

358
00:18:45,640 --> 00:18:47,240
Speaker 3: I think we may go here a little bit later,

359
00:18:47,280 --> 00:18:49,160
Speaker 3: but you think about stadiums and the ability to pencil

360
00:18:49,160 --> 00:18:51,480
Speaker 3: out a stadium where you only have nine ten dates,

361
00:18:51,640 --> 00:18:54,200
Speaker 3: or if it's the NBA in hockey, right, you've got

362
00:18:54,400 --> 00:18:56,320
Speaker 3: maybe you can fill it one hundred dates, one hundred

363
00:18:56,320 --> 00:18:59,160
Speaker 3: and twenty, one hundred and forty dates with concerts, et cetera.

364
00:18:59,280 --> 00:19:01,040
Speaker 3: It's really hard to make the pencil, just given where

365
00:19:01,040 --> 00:19:03,680
Speaker 3: we are in the economic cycle of increased interest rates, inflation,

366
00:19:03,800 --> 00:19:06,439
Speaker 3: construction costs, all these types of things. And so what

367
00:19:06,480 --> 00:19:08,840
Speaker 3: you're seeing now is much more interest in terms of

368
00:19:08,880 --> 00:19:12,439
Speaker 3: in essence, building a city or building a community around

369
00:19:12,440 --> 00:19:15,520
Speaker 3: these stadiums, which is mixed use development, its office at restaurants,

370
00:19:15,520 --> 00:19:18,480
Speaker 3: it's other forms of engagement. And so I think that's

371
00:19:18,520 --> 00:19:21,720
Speaker 3: definitely an area where some of that capital capital can go.

372
00:19:22,119 --> 00:19:24,600
Speaker 4: And that you went back to about you know, there

373
00:19:24,600 --> 00:19:27,480
Speaker 4: are only so many NFL teams out there. There's only

374
00:19:27,520 --> 00:19:29,480
Speaker 4: thirty two of them, which is why it's hard and

375
00:19:29,480 --> 00:19:32,280
Speaker 4: why it costs a lot. I also think this is why,

376
00:19:32,440 --> 00:19:34,679
Speaker 4: and this is just my theory, and please you know,

377
00:19:34,920 --> 00:19:37,200
Speaker 4: let me know if I'm right or wrong. Like the WNBA,

378
00:19:37,520 --> 00:19:40,639
Speaker 4: you can add more teams there. It's much easier to

379
00:19:40,680 --> 00:19:44,119
Speaker 4: add more teams there. Hence you're getting more interest in

380
00:19:44,160 --> 00:19:48,120
Speaker 4: the WNBA. Put aside. Caitlin Clark. Also even with pickaball,

381
00:19:48,200 --> 00:19:50,600
Speaker 4: I mean, pickleball is picking up because you can put

382
00:19:50,600 --> 00:19:52,879
Speaker 4: a pick a ball team together. So I want to

383
00:19:53,000 --> 00:19:57,720
Speaker 4: start the hungry Hungry Hippos pickleball team. How do I

384
00:19:57,920 --> 00:20:01,840
Speaker 4: get about doing this? And and what are the advantages?

385
00:20:02,160 --> 00:20:05,960
Speaker 4: Can I make money just starting up in a younger league?

386
00:20:06,800 --> 00:20:08,800
Speaker 3: I think when you look at leagues, and you can

387
00:20:08,800 --> 00:20:11,040
Speaker 3: look at the big leagues the younger leagues, to me,

388
00:20:11,119 --> 00:20:12,760
Speaker 3: a lot of it comes back to governance. And so

389
00:20:12,800 --> 00:20:14,440
Speaker 3: you look at the NFL, you look at the NBA,

390
00:20:14,520 --> 00:20:17,359
Speaker 3: you look at Major League Baseball, hockey, et cetera. The

391
00:20:17,400 --> 00:20:20,119
Speaker 3: major North American sports. One of the great strengths they

392
00:20:20,119 --> 00:20:22,520
Speaker 3: have is governance, such that there are a set of rules.

393
00:20:22,640 --> 00:20:25,800
Speaker 3: There are in many instances a salary cap. There is

394
00:20:26,240 --> 00:20:29,479
Speaker 3: an essence baked in some level of profitability to what

395
00:20:29,520 --> 00:20:32,639
Speaker 3: these teams can do. There are ownership requirements and votes

396
00:20:32,680 --> 00:20:36,040
Speaker 3: in terms of changing rules, et cetera. And that's been

397
00:20:36,040 --> 00:20:38,720
Speaker 3: a huge, huge advantage for North American franchises. And there's

398
00:20:38,840 --> 00:20:42,280
Speaker 3: really help drive valuation because it de risks some of

399
00:20:42,280 --> 00:20:44,439
Speaker 3: the operating risks or what could happen right when you

400
00:20:44,480 --> 00:20:46,840
Speaker 3: invest in a sports franchise or you sports invest in

401
00:20:46,880 --> 00:20:48,880
Speaker 3: a business, And so I think one of the key

402
00:20:48,920 --> 00:20:51,000
Speaker 3: things for some of these startup leagues is understanding what

403
00:20:51,040 --> 00:20:53,720
Speaker 3: the governance structure is. Many of these leagues are starting

404
00:20:53,800 --> 00:20:55,959
Speaker 3: up to in essence, where the league will own and

405
00:20:55,960 --> 00:20:58,840
Speaker 3: control the teams out of the box and then grow

406
00:20:58,960 --> 00:21:02,040
Speaker 3: and then ultimately we'll end up selling equity stakes or

407
00:21:02,040 --> 00:21:04,720
Speaker 3: control stakes and some of those teams. And so to me,

408
00:21:04,800 --> 00:21:07,239
Speaker 3: it comes back a lot to addressable audience. Who's going

409
00:21:07,280 --> 00:21:10,679
Speaker 3: to watch? How do you monetize those people who are watching?

410
00:21:11,000 --> 00:21:13,200
Speaker 3: But do you have that governance? And then ultimately what's

411
00:21:13,240 --> 00:21:15,240
Speaker 3: sort of the timing of when do they sell those

412
00:21:15,280 --> 00:21:17,359
Speaker 3: individual interests in those teams.

413
00:21:18,800 --> 00:21:21,080
Speaker 7: I want to get back to the stadium thing. One

414
00:21:21,080 --> 00:21:23,000
Speaker 7: of the things we're seeing specifically in the NFL right

415
00:21:23,040 --> 00:21:25,040
Speaker 7: now is everybody has a stadium project. I mean we're

416
00:21:25,040 --> 00:21:27,760
Speaker 7: talking we just mentioned the Chiefs, but the Panthers, the Jaguars,

417
00:21:27,880 --> 00:21:30,600
Speaker 7: the Bears. I'm sure there's a couple of other teams

418
00:21:30,600 --> 00:21:33,280
Speaker 7: out there that are thinking about doing things too. My

419
00:21:33,440 --> 00:21:37,040
Speaker 7: question for you is what works with some of these deals,

420
00:21:37,040 --> 00:21:39,199
Speaker 7: because if you look at so far and some other

421
00:21:39,240 --> 00:21:40,919
Speaker 7: stadiums out there, there are some billionaires are going to come

422
00:21:40,960 --> 00:21:42,400
Speaker 7: in and to be like, look, I'll pay for everything,

423
00:21:42,480 --> 00:21:44,159
Speaker 7: and you know, they have to go through legislation a

424
00:21:44,200 --> 00:21:46,879
Speaker 7: couple different times, but other than that, they bankrolled the

425
00:21:47,000 --> 00:21:50,480
Speaker 7: entire thing. But the public private split hasn't always been

426
00:21:50,560 --> 00:21:54,240
Speaker 7: as popular. Sometimes these things pass depending on the identity

427
00:21:54,280 --> 00:21:54,800
Speaker 7: of the city.

428
00:21:55,200 --> 00:21:55,640
Speaker 2: Is there a.

429
00:21:55,600 --> 00:21:58,080
Speaker 7: Specific type of deal that you've seen that works, or

430
00:21:58,119 --> 00:21:59,560
Speaker 7: is it based on the identity of a city.

431
00:21:59,600 --> 00:22:01,160
Speaker 3: Yeah, I think like I think it's a very local,

432
00:22:01,560 --> 00:22:03,439
Speaker 3: local or regional business in terms of what state are

433
00:22:03,480 --> 00:22:06,320
Speaker 3: you in, what city are you in, you know, what

434
00:22:06,480 --> 00:22:10,719
Speaker 3: sort of brand ownership capital It's it's it's very difficult.

435
00:22:10,720 --> 00:22:11,960
Speaker 3: I mean, you got to you've got to just bring

436
00:22:11,960 --> 00:22:14,320
Speaker 3: it all together and be very very creative. I think

437
00:22:14,359 --> 00:22:16,800
Speaker 3: that the thing that absolutely is shown to work though,

438
00:22:17,480 --> 00:22:20,560
Speaker 3: is when you make the fan experience great and fans

439
00:22:20,600 --> 00:22:24,000
Speaker 3: want to be there, and you start having premium experiences,

440
00:22:24,040 --> 00:22:28,800
Speaker 3: differentiated experiences, different ability for individuals families to come in

441
00:22:28,840 --> 00:22:31,240
Speaker 3: off cycle kind of touch and feel right the team,

442
00:22:31,320 --> 00:22:34,040
Speaker 3: the product, the players, the stadium and feel like they're

443
00:22:34,080 --> 00:22:36,720
Speaker 3: part of the you know, collective ownership of that team

444
00:22:37,160 --> 00:22:41,120
Speaker 3: in that community. That's what really drives right, the value

445
00:22:41,880 --> 00:22:44,520
Speaker 3: the psychic value of these and look, I think it's

446
00:22:44,520 --> 00:22:50,639
Speaker 3: shown having well functioning, strong sports franchises and cities. It

447
00:22:50,800 --> 00:22:52,960
Speaker 3: is a very strong thing from a civic perspective. But

448
00:22:53,119 --> 00:22:55,880
Speaker 3: it's very very complicated, and we're obviously in a more

449
00:22:55,880 --> 00:22:59,679
Speaker 3: difficult economic environment today, certainly in many states where the

450
00:22:59,680 --> 00:23:01,960
Speaker 3: public private there's just not that much public money and

451
00:23:02,000 --> 00:23:03,800
Speaker 3: so you got to get you got to get more creative.

452
00:23:03,880 --> 00:23:05,600
Speaker 3: And so that's some of the tension again running up

453
00:23:05,600 --> 00:23:08,000
Speaker 3: against some of the economic the economic environment.

454
00:23:08,000 --> 00:23:10,600
Speaker 1: We're what's the advice you would give to owners that

455
00:23:10,680 --> 00:23:14,880
Speaker 1: have struggled to get their proposals accepted by voters.

456
00:23:15,480 --> 00:23:17,480
Speaker 3: Again, Look, I think it's I think it's very very

457
00:23:17,760 --> 00:23:22,400
Speaker 3: fact specific. I think continuing to make the best economic

458
00:23:22,440 --> 00:23:24,080
Speaker 3: case in terms of why it makes sense, why it's

459
00:23:24,119 --> 00:23:27,840
Speaker 3: good for the community, why it's good for economically good

460
00:23:27,840 --> 00:23:28,480
Speaker 3: for the community.

461
00:23:28,640 --> 00:23:30,960
Speaker 1: So people are fed up with that argument that, you know,

462
00:23:31,040 --> 00:23:34,040
Speaker 1: the benefits in clear jobs and commercial residential development. They've

463
00:23:34,040 --> 00:23:36,040
Speaker 1: heard that before and they've seen that it doesn't always

464
00:23:36,080 --> 00:23:39,080
Speaker 1: pan out. I mean, yes, it may, but it's been

465
00:23:39,080 --> 00:23:40,840
Speaker 1: proven that it hasn't in many instances.

466
00:23:41,840 --> 00:23:44,520
Speaker 3: Yeah, No, I mean I think that's a fair point

467
00:23:44,560 --> 00:23:47,040
Speaker 3: of view. You've obviously seen that on some some recent votes.

468
00:23:48,320 --> 00:23:50,560
Speaker 3: I think teams have repackaged, tried to go back in

469
00:23:50,600 --> 00:23:54,440
Speaker 3: different ways. There's always the threat of moving, so they

470
00:23:54,480 --> 00:23:55,720
Speaker 3: just need to, Like I think, you just got to

471
00:23:55,760 --> 00:23:57,440
Speaker 3: keep grinding it and figure out is there a way

472
00:23:57,480 --> 00:23:59,080
Speaker 3: to is there a way to get it done. Many

473
00:23:59,080 --> 00:24:01,560
Speaker 3: projects need to get scaled back a little bit from

474
00:24:01,600 --> 00:24:05,160
Speaker 3: the true SOULFI right, aspirations, which was you know, which

475
00:24:05,200 --> 00:24:07,359
Speaker 3: was very very spac specific. But I mean to so

476
00:24:07,440 --> 00:24:09,719
Speaker 3: far they've been creative in terms of getting more content

477
00:24:09,760 --> 00:24:11,680
Speaker 3: in there. Right the Olympics are the swimming in the

478
00:24:11,720 --> 00:24:13,560
Speaker 3: Olympics is now going to be there in four years,

479
00:24:13,560 --> 00:24:15,760
Speaker 3: which is right, And so they've shown an ability to

480
00:24:16,080 --> 00:24:19,160
Speaker 3: i think, expand out or develop different sort of use cases.

481
00:24:19,200 --> 00:24:20,200
Speaker 7: One of the things that I want to ask you

482
00:24:20,200 --> 00:24:22,280
Speaker 7: about a stadium trend, or one of the things that

483
00:24:22,280 --> 00:24:25,320
Speaker 7: I've talked to people about is the stadiums when they

484
00:24:25,320 --> 00:24:27,600
Speaker 7: build domes. I think it's interesting when you're talking about

485
00:24:27,600 --> 00:24:29,959
Speaker 7: the Barris For example, I lived outside of Chicago for

486
00:24:30,000 --> 00:24:32,720
Speaker 7: twelve years and it was always the frozen tundra asque

487
00:24:32,760 --> 00:24:33,359
Speaker 7: type of feel.

488
00:24:33,720 --> 00:24:34,480
Speaker 4: But now it.

489
00:24:34,400 --> 00:24:36,159
Speaker 7: Seems like teams are going away from that because of

490
00:24:36,200 --> 00:24:37,720
Speaker 7: the fact that, you know, if you have a stadium

491
00:24:37,720 --> 00:24:39,199
Speaker 7: and it can only has eight or nine games in

492
00:24:39,200 --> 00:24:41,240
Speaker 7: the fall, then what are you going to do outside

493
00:24:41,240 --> 00:24:44,040
Speaker 7: of the you know, in the winter and in the

494
00:24:44,080 --> 00:24:46,720
Speaker 7: early months of the year where the stadium just sits empty.

495
00:24:47,080 --> 00:24:49,159
Speaker 7: Is that something that owners are considering in terms of

496
00:24:49,200 --> 00:24:51,560
Speaker 7: maximizing the value of the stadium.

497
00:24:51,720 --> 00:24:53,159
Speaker 3: I think they definitely are. I mean, I think they

498
00:24:53,200 --> 00:24:55,240
Speaker 3: have to. I'm an old school guy. I love football,

499
00:24:55,320 --> 00:24:59,639
Speaker 3: right the NFC North should be My dad grew up

500
00:24:59,640 --> 00:25:04,639
Speaker 3: outside Detroit. They should they should all be playing they

501
00:25:04,640 --> 00:25:07,520
Speaker 3: should all be played outside from a pure football perspective.

502
00:25:07,520 --> 00:25:09,240
Speaker 3: From the economic perspective, I totally get it.

503
00:25:09,600 --> 00:25:13,000
Speaker 4: We're talking with Dave Dasi and executive at Wall Street

504
00:25:13,040 --> 00:25:16,440
Speaker 4: Giant Goldman Sachs about the world of big money investing

505
00:25:16,560 --> 00:25:19,760
Speaker 4: into sports now, Sit tight. We have more with Dave

506
00:25:19,840 --> 00:25:22,960
Speaker 4: coming up next. If you like what you're hearing, get

507
00:25:23,040 --> 00:25:26,080
Speaker 4: more of it now on the Bloomberg Business of Sports podcast.

508
00:25:26,400 --> 00:25:30,640
Speaker 4: Subscribe now on Apple, Spotify, and anywhere else you get

509
00:25:30,640 --> 00:25:34,640
Speaker 4: your podcasts. You're listening to The Bloomberg Business of Sports

510
00:25:34,640 --> 00:25:37,800
Speaker 4: from Bloomberger Radio around the world.

511
00:25:42,400 --> 00:25:46,560
Speaker 2: You're listening to Bloomberg Business of Sports from Bloomberg Radio.

512
00:25:47,760 --> 00:25:50,520
Speaker 4: Thanks for joining us on the Bloomberg Business of Sports show.

513
00:25:50,760 --> 00:25:52,800
Speaker 4: But we explore the big money issues in the world

514
00:25:52,880 --> 00:25:56,119
Speaker 4: of sports. I'm Michael Barr, along with Scarlett Fu and

515
00:25:56,359 --> 00:26:01,800
Speaker 4: special guest host Bloomberg US sports business reporter Randall Williams.

516
00:26:02,040 --> 00:26:05,920
Speaker 4: We're talking with Dave Nasi, he's head of the Southeast

517
00:26:06,080 --> 00:26:10,520
Speaker 4: Region and global co head of the sports franchise in

518
00:26:10,520 --> 00:26:13,960
Speaker 4: investment banking at Wall Street, Giant Gold and Sachs about

519
00:26:13,960 --> 00:26:17,760
Speaker 4: the world a big money investing in sports. Let's dive

520
00:26:17,800 --> 00:26:19,919
Speaker 4: back into that conversation. I want to get back to

521
00:26:19,960 --> 00:26:22,440
Speaker 4: something that you said and and we were talking about.

522
00:26:22,480 --> 00:26:25,800
Speaker 4: The fan experience is extremely important.

523
00:26:26,080 --> 00:26:29,080
Speaker 3: I think it's critically important. It's well like, it's it's

524
00:26:29,119 --> 00:26:31,040
Speaker 3: multiple dimensions. We talked about the NFL a lot we

525
00:26:31,200 --> 00:26:33,560
Speaker 3: touched on right, touched on women's sports. I mean, I

526
00:26:33,560 --> 00:26:36,480
Speaker 3: think part of this boom and women's sports is clearly

527
00:26:36,800 --> 00:26:39,240
Speaker 3: around the fan experience. You can get close. They're starting

528
00:26:39,280 --> 00:26:43,080
Speaker 3: to develop personalities and stars. There's more investment. ESPN's made

529
00:26:43,119 --> 00:26:46,760
Speaker 3: significant investments. We're actually seeing these games developing personalities. We

530
00:26:46,800 --> 00:26:49,080
Speaker 3: certainly saw this through the tournament. We're certainly seeing it

531
00:26:49,119 --> 00:26:52,359
Speaker 3: in the WNBA today in terms of developing some of

532
00:26:52,440 --> 00:26:55,639
Speaker 3: these personalities and everything. And so I think the I

533
00:26:55,640 --> 00:26:57,879
Speaker 3: think this the fan experience is critical. I think the

534
00:26:57,920 --> 00:27:01,080
Speaker 3: aspirational element, especially in some of the women's sports for

535
00:27:01,160 --> 00:27:04,680
Speaker 3: so many girls and families and being able to come see, touch,

536
00:27:04,800 --> 00:27:08,600
Speaker 3: get close understand it, it's incredibly incredibly powerful. I think

537
00:27:08,600 --> 00:27:10,439
Speaker 3: we're even seeing it at the Olympics now right. I mean,

538
00:27:10,560 --> 00:27:14,040
Speaker 3: NBC is a lot of their promos are on many

539
00:27:14,080 --> 00:27:18,200
Speaker 3: of the women athletes, and I think it's incredibly incredibly powerful.

540
00:27:18,280 --> 00:27:19,920
Speaker 3: And so I think we're going to We're going to

541
00:27:19,960 --> 00:27:20,800
Speaker 3: continue to see more of this.

542
00:27:21,040 --> 00:27:23,280
Speaker 1: What about the fan experience at home? When it comes

543
00:27:23,320 --> 00:27:26,520
Speaker 1: to media rights, the NBA obviously still negotiating it's deal.

544
00:27:26,560 --> 00:27:29,160
Speaker 1: You've got familiar names like Disney and Warner Brothers, Discovery,

545
00:27:29,200 --> 00:27:32,480
Speaker 1: new names like Amazon and Comcasts. The NFL recently signed

546
00:27:32,480 --> 00:27:35,359
Speaker 1: a deal with Netflix Era to Christmas Day games. And

547
00:27:35,400 --> 00:27:37,520
Speaker 1: then there's this joint venture that's going to be called

548
00:27:37,640 --> 00:27:42,359
Speaker 1: Venue with Disney, Warner Brothers and Fox. It's mainly to

549
00:27:42,560 --> 00:27:45,720
Speaker 1: keep chord cutters or to attract chord cutters, but it

550
00:27:45,720 --> 00:27:47,560
Speaker 1: doesn't solve the problem of figuring out how to watch

551
00:27:47,600 --> 00:27:49,720
Speaker 1: specific games, especially if you're looking for an out of

552
00:27:49,760 --> 00:27:52,320
Speaker 1: town game for consumers. What it means is that the

553
00:27:52,359 --> 00:27:56,040
Speaker 1: media distribution landscape is getting more complicated, not less complicated.

554
00:27:56,320 --> 00:27:59,280
Speaker 1: What needs to happen for the sports leagues and for

555
00:27:59,400 --> 00:28:01,800
Speaker 1: media company to reduce the friction to make it easier

556
00:28:01,800 --> 00:28:04,080
Speaker 1: for Michael Barr to watch his lines whenever he wants.

557
00:28:04,520 --> 00:28:08,520
Speaker 2: We buy a NFL Sunday ticket, he has.

558
00:28:08,400 --> 00:28:10,080
Speaker 1: To pay, But what if he wants to watch the

559
00:28:10,080 --> 00:28:12,600
Speaker 1: Detroit Red Wings as well or the Detroit Tigers.

560
00:28:13,480 --> 00:28:15,359
Speaker 3: Now it's completely I mean, we're in a period of

561
00:28:15,440 --> 00:28:18,440
Speaker 3: transition for sure. I think when you look back at

562
00:28:18,560 --> 00:28:21,439
Speaker 3: the disruption that's taking place in the broad media ecosystem today,

563
00:28:21,720 --> 00:28:24,920
Speaker 3: sports has been the differentiated glue that's held this all

564
00:28:24,960 --> 00:28:28,320
Speaker 3: together for a long, long period of time. The broadcasting

565
00:28:28,760 --> 00:28:32,640
Speaker 3: traditional broadcast traditional media is under enormous pressure. The streaming

566
00:28:32,640 --> 00:28:34,879
Speaker 3: companies are coming in, But I think the core tenet

567
00:28:34,880 --> 00:28:37,760
Speaker 3: still holds, which is this is scarce content, unique content,

568
00:28:37,800 --> 00:28:42,440
Speaker 3: differentiated content. Content that aggregates audience draws audience, and because

569
00:28:42,440 --> 00:28:44,640
Speaker 3: of that, it will draw advertisers, it will draw money,

570
00:28:44,720 --> 00:28:46,959
Speaker 3: and as we move into more of a direct consumer phase,

571
00:28:47,280 --> 00:28:49,440
Speaker 3: the ability to engage with consumers on a one to

572
00:28:49,480 --> 00:28:51,840
Speaker 3: win basis. Many of these teams, and this goes back

573
00:28:51,840 --> 00:28:53,600
Speaker 3: to the valuation point. Many of these teams will have

574
00:28:53,680 --> 00:28:57,040
Speaker 3: multi millions of people in their database, many of them

575
00:28:57,120 --> 00:28:59,600
Speaker 3: have not been able to engage with them on a

576
00:28:59,640 --> 00:29:03,080
Speaker 3: point the point basis that is coming the professional management

577
00:29:03,320 --> 00:29:04,840
Speaker 3: as to class, how do you do that? How do

578
00:29:04,880 --> 00:29:06,920
Speaker 3: you make the fan experience better? But how do you

579
00:29:06,920 --> 00:29:10,040
Speaker 3: commercialize right? That is coming as well, and so I

580
00:29:10,080 --> 00:29:12,800
Speaker 3: think over time you're going to start to see operations.

581
00:29:12,840 --> 00:29:15,280
Speaker 3: People talk about metrics, we talk about revenue multiples, but

582
00:29:15,360 --> 00:29:18,080
Speaker 3: I think there'll be different fan engagement. Cohorts, the ability

583
00:29:18,080 --> 00:29:21,400
Speaker 3: to move somebody from cohort to to cohort one, cohort

584
00:29:21,400 --> 00:29:24,200
Speaker 3: three to cohort two. And we spend a lot of

585
00:29:24,200 --> 00:29:27,800
Speaker 3: time in software businesses talking about right moving customers through cohorts.

586
00:29:27,840 --> 00:29:29,640
Speaker 3: We spend a lot of time in consumer businesses moving

587
00:29:29,720 --> 00:29:32,000
Speaker 3: customers through cohorts. And so I think the ability to

588
00:29:32,000 --> 00:29:34,920
Speaker 3: think about valuation in different ways or having more metrics,

589
00:29:35,040 --> 00:29:37,440
Speaker 3: and I think again it's rumored on the NBA deal,

590
00:29:37,440 --> 00:29:39,320
Speaker 3: but you look at where the NBA deal is coming,

591
00:29:39,360 --> 00:29:41,160
Speaker 3: and you certainly look where the NFL deal is done.

592
00:29:41,240 --> 00:29:45,280
Speaker 3: We've talked about revenue multiples forever. If that deal gets

593
00:29:45,280 --> 00:29:48,000
Speaker 3: done close to where it's rumored to get done, these

594
00:29:48,040 --> 00:29:50,400
Speaker 3: franchises are going to be enormously profitable, and so you're

595
00:29:50,440 --> 00:29:52,360
Speaker 3: going to really start to talk more about I think

596
00:29:52,400 --> 00:29:55,040
Speaker 3: cash flow metrics and free cash flow metrics which are

597
00:29:55,040 --> 00:29:57,120
Speaker 3: coming out of them and given where the new NFL

598
00:29:57,200 --> 00:29:59,440
Speaker 3: rights deal is are not so new anymore, but given

599
00:29:59,440 --> 00:30:02,720
Speaker 3: where it is, these teams, these teams, you know, they

600
00:30:02,760 --> 00:30:04,880
Speaker 3: make money, right, and so the ability to trade on

601
00:30:04,920 --> 00:30:07,400
Speaker 3: more traditional metrics, I think it's definitely there. I think

602
00:30:07,440 --> 00:30:11,080
Speaker 3: on the consumer side and the ability to find it.

603
00:30:11,160 --> 00:30:13,240
Speaker 3: Look for in a point of transition, for sure, I

604
00:30:13,240 --> 00:30:14,200
Speaker 3: think there'll be innovation.

605
00:30:14,280 --> 00:30:15,160
Speaker 4: I think everybody.

606
00:30:14,920 --> 00:30:19,040
Speaker 3: Understands it's a massive frustration for the consumer, you know,

607
00:30:19,160 --> 00:30:21,520
Speaker 3: me included, And look, it's just going to have to.

608
00:30:21,680 --> 00:30:23,480
Speaker 3: It's ultimately gonna have to. It's going to have to

609
00:30:23,520 --> 00:30:25,560
Speaker 3: get better, and I think it'll be it'll be digital,

610
00:30:25,600 --> 00:30:27,760
Speaker 3: it'll be easy. But you got to get a whole

611
00:30:27,760 --> 00:30:31,600
Speaker 3: bunch of different parties with different perspectives and desires to

612
00:30:32,720 --> 00:30:34,960
Speaker 3: come together and and really try to figure it out.

613
00:30:35,400 --> 00:30:38,000
Speaker 1: I have another question for you. I mentioned Detroit Red Wings.

614
00:30:38,000 --> 00:30:40,560
Speaker 1: I'm a big hockey fan, and when you look at

615
00:30:40,600 --> 00:30:44,080
Speaker 1: the big leagues, the NFL, the MLB, the NBA, they're

616
00:30:44,080 --> 00:30:47,480
Speaker 1: always the top three, and then the MLS is almost

617
00:30:47,560 --> 00:30:51,320
Speaker 1: leapfrogging the NHL in terms of size, in terms of valuations,

618
00:30:51,880 --> 00:30:54,600
Speaker 1: in terms of even interest. What is the NHL doing

619
00:30:54,640 --> 00:30:57,120
Speaker 1: wrong or what could it do better? From where you sit,

620
00:30:58,040 --> 00:31:00,800
Speaker 1: what do the franchises need to do better, What what

621
00:31:00,840 --> 00:31:02,200
Speaker 1: innovations they need to add?

622
00:31:02,560 --> 00:31:04,520
Speaker 3: Well, I think it's a lot of what we talked about, right,

623
00:31:04,560 --> 00:31:06,360
Speaker 3: just in terms of the fan engagement and the fan experience.

624
00:31:06,400 --> 00:31:08,680
Speaker 3: I mean, it's fantastic in those markets where you have

625
00:31:08,760 --> 00:31:11,680
Speaker 3: passion and the teams are doing really, really well. Let

626
00:31:11,680 --> 00:31:13,400
Speaker 3: me look at the Stanley Cup finals, right, I mean

627
00:31:13,400 --> 00:31:16,120
Speaker 3: that was that was terrific, right in terms of what

628
00:31:16,160 --> 00:31:18,240
Speaker 3: that brought. Some of the NHL teams tend to be

629
00:31:18,240 --> 00:31:20,160
Speaker 3: in a little bit smaller markets than the big major

630
00:31:20,200 --> 00:31:23,280
Speaker 3: metro markets, and so I think that's fundamentally for sure

631
00:31:23,400 --> 00:31:25,960
Speaker 3: an issue. But I think NHL is on a on

632
00:31:26,000 --> 00:31:28,080
Speaker 3: a great, great rise. You look at the relative valuations

633
00:31:28,080 --> 00:31:31,120
Speaker 3: of where where values are today versus where they've been historically,

634
00:31:31,800 --> 00:31:34,560
Speaker 3: and they're they're driving up. Certainly, the new team's coming to,

635
00:31:34,760 --> 00:31:36,800
Speaker 3: you know, to Salt Lake City, which I think is

636
00:31:36,880 --> 00:31:39,240
Speaker 3: being terrific. There are whole bunch of other markets that

637
00:31:39,280 --> 00:31:41,680
Speaker 3: are trying to attract the NHL, and so I think

638
00:31:41,680 --> 00:31:44,080
Speaker 3: it's I think it's on a good trajectory. There may

639
00:31:44,200 --> 00:31:47,680
Speaker 3: just be a smaller aggregate number of addressable right fans

640
00:31:47,720 --> 00:31:50,120
Speaker 3: who have a passion for hockey than there may be

641
00:31:50,160 --> 00:31:52,760
Speaker 3: for say, global soccer at this point in time.

642
00:31:52,800 --> 00:31:55,560
Speaker 1: Although at this point hockey is a more global team, sorry,

643
00:31:55,600 --> 00:31:57,120
Speaker 1: a more global sport than I think a lot of

644
00:31:57,120 --> 00:31:59,520
Speaker 1: people give it credit for, given the players and what

645
00:31:59,520 --> 00:32:00,760
Speaker 1: countries come from.

646
00:32:00,640 --> 00:32:03,080
Speaker 3: No doubt geographically. Yeah, it absolutely is.

647
00:32:03,240 --> 00:32:06,000
Speaker 1: All right, Dave Dassi really appreciate your joining us today.

648
00:32:06,160 --> 00:32:08,400
Speaker 1: Fantastic to get your insights. We'd love to have you back.

649
00:32:08,600 --> 00:32:09,520
Speaker 3: Thank you, it's been great.

650
00:32:09,640 --> 00:32:12,280
Speaker 1: Dave Dassi is head of the Southeast Region and global

651
00:32:12,280 --> 00:32:14,920
Speaker 1: cohead of the Sports franchise and Investment banking at Goldman

652
00:32:15,000 --> 00:32:15,880
Speaker 1: Sachs Now.

653
00:32:15,920 --> 00:32:19,040
Speaker 4: If you missed any of that conversation, find it online

654
00:32:19,080 --> 00:32:22,360
Speaker 4: now on the Bloomberg Business of Sports podcast. Get it

655
00:32:22,360 --> 00:32:26,720
Speaker 4: on Apple, Spotify, The Bloomberg Business app and anywhere else

656
00:32:26,760 --> 00:32:30,160
Speaker 4: you get your podcasts. Now, we turn to another executive

657
00:32:30,200 --> 00:32:33,520
Speaker 4: with a big stake in the world of sports, Eldridge

658
00:32:33,560 --> 00:32:38,080
Speaker 4: Industries Chairman and CEO Todd Bowley. He is owner of

659
00:32:38,200 --> 00:32:41,680
Speaker 4: Chelsea FC and is on the ownership team for the

660
00:32:41,800 --> 00:32:45,440
Speaker 4: LA Lakers, Sparks, and the Dodgers. He spoke with our

661
00:32:45,600 --> 00:32:49,360
Speaker 4: own Sonali Massik during Bloomberg invest in New York late

662
00:32:49,440 --> 00:32:52,400
Speaker 4: last month. Here's a bit of that conversation, starting with

663
00:32:52,640 --> 00:32:55,560
Speaker 4: what he sees in the future of the Dodgers after

664
00:32:55,640 --> 00:32:56,640
Speaker 4: bringing in show.

665
00:32:56,760 --> 00:32:59,440
Speaker 8: Hey, oh, Tony, I think we're scratching the surface some

666
00:32:59,560 --> 00:33:02,520
Speaker 8: of to dot can be. I think, if I had

667
00:33:02,520 --> 00:33:05,240
Speaker 8: to bet, the Dodgers will be the you know, the

668
00:33:05,240 --> 00:33:07,600
Speaker 8: first team to hit a billion dollars of revenue. I mean,

669
00:33:07,640 --> 00:33:11,920
Speaker 8: I think we've got a global franchise, We've got some

670
00:33:12,240 --> 00:33:18,239
Speaker 8: superstars that have amazing appeal. We've got a team that

671
00:33:19,080 --> 00:33:21,840
Speaker 8: is competitive year in and year out. Right every year

672
00:33:21,840 --> 00:33:23,760
Speaker 8: we look at it and we roughly believe that we

673
00:33:23,840 --> 00:33:27,720
Speaker 8: have somewhere between eighteen and twenty two percent chance to

674
00:33:27,760 --> 00:33:30,239
Speaker 8: win the World Series, Right, So everything we can do,

675
00:33:30,320 --> 00:33:32,520
Speaker 8: we're trying to figure out how do we improve the

676
00:33:32,520 --> 00:33:35,920
Speaker 8: odds of winning the World Series. And you know, I

677
00:33:36,000 --> 00:33:39,320
Speaker 8: think you know, unfortunately, if it weren't for injuries, you

678
00:33:39,320 --> 00:33:42,120
Speaker 8: would be able to have a much more easy way

679
00:33:42,160 --> 00:33:45,400
Speaker 8: to predict that. Injuries are just part of the game now, right,

680
00:33:45,440 --> 00:33:47,560
Speaker 8: and you have to be able to handle How do

681
00:33:47,600 --> 00:33:49,960
Speaker 8: you think about depth, how you think about the quality

682
00:33:49,960 --> 00:33:51,200
Speaker 8: of the players.

683
00:33:51,400 --> 00:33:52,280
Speaker 6: And what they can do.

684
00:33:52,800 --> 00:33:55,400
Speaker 8: Obviously, one of the things that Andrew Friedman, who runs

685
00:33:55,400 --> 00:33:56,440
Speaker 8: the Dodgers.

686
00:33:56,000 --> 00:33:58,360
Speaker 6: For us on the business on the business, on the.

687
00:33:58,280 --> 00:34:03,600
Speaker 8: Sports side, he really focuses on how do we find

688
00:34:03,680 --> 00:34:07,480
Speaker 8: players that have the ability to play multiple different roles?

689
00:34:07,920 --> 00:34:08,080
Speaker 4: Right?

690
00:34:08,080 --> 00:34:10,840
Speaker 8: We want utility guys who can play infield and outfield.

691
00:34:10,880 --> 00:34:13,719
Speaker 8: We want guys who you know, can hit lefties and

692
00:34:13,760 --> 00:34:14,520
Speaker 8: can hit right e's.

693
00:34:14,600 --> 00:34:15,960
Speaker 6: And you know, you're trying.

694
00:34:15,800 --> 00:34:18,799
Speaker 8: To figure out how do you build a portfolio of

695
00:34:19,040 --> 00:34:21,920
Speaker 8: twenty five players. And of course, one of the things

696
00:34:21,920 --> 00:34:24,920
Speaker 8: that we love about of Tani, you know, is he

697
00:34:25,000 --> 00:34:28,040
Speaker 8: gives us a twenty six player right when he's pitching

698
00:34:28,160 --> 00:34:31,960
Speaker 8: and he's hitting. We actually have a twenty six man roster,

699
00:34:32,560 --> 00:34:35,200
Speaker 8: so which is such a unique thing, right, I Mean,

700
00:34:35,600 --> 00:34:37,359
Speaker 8: no one's been able to do that since bebe Rut.

701
00:34:37,800 --> 00:34:41,080
Speaker 8: You know, so I think our global appeal with our

702
00:34:41,760 --> 00:34:45,440
Speaker 8: global superstars is really going to be driving the demand.

703
00:34:45,520 --> 00:34:47,240
Speaker 8: I mean, we were in Korea this year, we opened

704
00:34:47,280 --> 00:34:50,360
Speaker 8: up this year in Korea, and the amount of people

705
00:34:50,440 --> 00:34:54,879
Speaker 8: who were hanging around trying to just see Otani It's

706
00:34:54,920 --> 00:34:56,160
Speaker 8: unlike anything I've ever seen.

707
00:34:57,160 --> 00:34:59,759
Speaker 9: What about Chelsea, speaking of going global, when you got

708
00:34:59,800 --> 00:35:02,279
Speaker 9: into the Chelsea Football Club, obviously that was a very

709
00:35:02,280 --> 00:35:05,319
Speaker 9: big moment for an American private equity titan to be

710
00:35:05,400 --> 00:35:09,359
Speaker 9: getting into European Sports League, certainly European Football. Yet now

711
00:35:09,440 --> 00:35:12,120
Speaker 9: Chelsea is being watched across America as well.

712
00:35:12,200 --> 00:35:13,160
Speaker 6: What's the strategy?

713
00:35:14,600 --> 00:35:20,280
Speaker 8: You know, there's very few brands that have the reach

714
00:35:20,760 --> 00:35:25,480
Speaker 8: that Chelsea has, you know, and Chelsea is is you know,

715
00:35:25,520 --> 00:35:30,160
Speaker 8: you can you see it and you feel it differently because.

716
00:35:30,000 --> 00:35:31,640
Speaker 6: It means so much to so many people.

717
00:35:32,280 --> 00:35:34,840
Speaker 8: And you know, as I tell everyone, the good news

718
00:35:34,880 --> 00:35:35,680
Speaker 8: is the bad news.

719
00:35:36,080 --> 00:35:37,720
Speaker 6: It means so much to so many people.

720
00:35:38,400 --> 00:35:42,520
Speaker 8: So when things are going well, you know, everything is great,

721
00:35:42,640 --> 00:35:45,480
Speaker 8: and when things aren't going as well, things aren't as great.

722
00:35:46,160 --> 00:35:48,640
Speaker 8: But obviously our commitment is to win, right, We're here

723
00:35:48,680 --> 00:35:51,759
Speaker 8: to win, and you know, I think you know, our

724
00:35:51,840 --> 00:35:54,839
Speaker 8: perspective is you know, how do we build something that

725
00:35:54,960 --> 00:35:58,240
Speaker 8: has real staying power like we've done with the Dodgers

726
00:35:58,719 --> 00:36:02,560
Speaker 8: and putting together you know, the again that team that

727
00:36:02,800 --> 00:36:05,440
Speaker 8: you know is very fluid and comes together. You know,

728
00:36:05,480 --> 00:36:08,040
Speaker 8: I think that's the first step. And you know, I

729
00:36:08,080 --> 00:36:11,680
Speaker 8: think putting together any team, whenever I put together any team, right,

730
00:36:11,719 --> 00:36:12,600
Speaker 8: it just takes time.

731
00:36:12,680 --> 00:36:15,799
Speaker 6: That's the only That's the only way to phrase it.

732
00:36:15,880 --> 00:36:18,280
Speaker 8: And you know, I think we feel very good about

733
00:36:18,600 --> 00:36:21,840
Speaker 8: the pieces that we have together, the camaraderie that the

734
00:36:22,160 --> 00:36:24,799
Speaker 8: players have, and what the future looks like.

735
00:36:25,840 --> 00:36:28,560
Speaker 9: Where is your next big bet in sports?

736
00:36:29,880 --> 00:36:33,879
Speaker 8: So I think there's a lot of things going on globally, right,

737
00:36:33,960 --> 00:36:36,560
Speaker 8: And what's the world has done as distribution costs have

738
00:36:36,640 --> 00:36:38,080
Speaker 8: gone to zero. I mean, if you go back and

739
00:36:38,120 --> 00:36:41,680
Speaker 8: you talk to Fox or Rupert Murdoch and you think

740
00:36:41,719 --> 00:36:44,880
Speaker 8: about what he did to build Fox right at that

741
00:36:44,920 --> 00:36:48,120
Speaker 8: time before you could buy the content, right before you

742
00:36:48,120 --> 00:36:51,839
Speaker 8: could buy the intellectual property to broadcast on Fox, the

743
00:36:51,880 --> 00:36:55,799
Speaker 8: infrastructure that he had to pay for was so massive, right,

744
00:36:55,840 --> 00:36:58,120
Speaker 8: So just putting together the nodes that would allow for

745
00:36:58,160 --> 00:37:01,040
Speaker 8: the broadcasting was hundreds and hundreds of millions of dollars.

746
00:37:01,680 --> 00:37:05,959
Speaker 8: As technology has evolved, those costs have come down, which

747
00:37:06,000 --> 00:37:09,440
Speaker 8: is why the IP costs have gone up because of course,

748
00:37:09,480 --> 00:37:12,880
Speaker 8: as the hardware costs go down, the soft costs continue

749
00:37:12,920 --> 00:37:15,040
Speaker 8: to go up because the soft costs you can't replace.

750
00:37:15,400 --> 00:37:20,240
Speaker 6: The intellectual property is irreplaceable.

751
00:37:21,080 --> 00:37:24,880
Speaker 8: Obviously, the technology costs going down, there's lots of ways

752
00:37:24,920 --> 00:37:28,960
Speaker 8: to drive technology costs down and distribution costs down, but

753
00:37:29,000 --> 00:37:31,880
Speaker 8: there's only one place to go for the intellectual property.

754
00:37:32,480 --> 00:37:35,200
Speaker 8: So I think that we're going to start to see

755
00:37:36,080 --> 00:37:38,640
Speaker 8: ongoing global expansion of these brands.

756
00:37:38,760 --> 00:37:42,120
Speaker 4: That's DoD Bowley speaking recently at Bloomberg invest with our

757
00:37:42,160 --> 00:37:46,640
Speaker 4: own Sonali bask Bowley as chairman and CEO of Eldridge Industries,

758
00:37:46,719 --> 00:37:50,040
Speaker 4: owner of Chelsea FC, and on the ownership team for

759
00:37:50,160 --> 00:37:54,480
Speaker 4: the Los Angeles Lakers, Sparks and Los Angeles Dodgers. And

760
00:37:54,480 --> 00:37:57,480
Speaker 4: that does it for this edition of The Bloomberg Business

761
00:37:57,480 --> 00:38:01,280
Speaker 4: of Sports for my colleague Scarlet Food and guest hosts

762
00:38:01,320 --> 00:38:06,440
Speaker 4: Bloomberg US Sports Business reporter Randa Williams. I'm Michael Barr.

763
00:38:06,560 --> 00:38:08,759
Speaker 4: Tune in again next week for the latest on the

764
00:38:08,800 --> 00:38:11,680
Speaker 4: stories moving big old money in the world of sports.

765
00:38:11,920 --> 00:38:15,719
Speaker 4: You're listening to The Bloomberg Business of Sports from Bloomberg

766
00:38:15,920 --> 00:38:17,440
Speaker 4: Radio around the world,