1 00:00:02,360 --> 00:00:05,600 Speaker 1: Hello, I'm Scotts and I'm Evan Nobi Williams. Every week 2 00:00:05,600 --> 00:00:09,040 Speaker 1: at this time, plus Monday's, Wednesdays and Thursdays, we explore 3 00:00:09,080 --> 00:00:11,560 Speaker 1: the big money issues in the world of sports. Michael 4 00:00:11,560 --> 00:00:14,320 Speaker 1: Barr is off, but joining me this week is Bloomberg 5 00:00:14,360 --> 00:00:17,720 Speaker 1: Sports business reporter Eben Novie Williams. On this week's show, 6 00:00:17,800 --> 00:00:21,160 Speaker 1: we have Atlanta Bras President Derek Schiller. But first, let's 7 00:00:21,160 --> 00:00:23,000 Speaker 1: look at some of the topics for the week. Evan, 8 00:00:23,079 --> 00:00:26,239 Speaker 1: Let's start off in the NFL A couple of disciplinary matters. 9 00:00:26,680 --> 00:00:32,440 Speaker 1: Michael Kendricks admits to Insider trading suspended right away. A 10 00:00:32,479 --> 00:00:34,120 Speaker 1: team is like, wait, we don't we don't get this. 11 00:00:34,479 --> 00:00:35,800 Speaker 1: And then we have a funny one with the Jets 12 00:00:35,840 --> 00:00:38,879 Speaker 1: running back is a Krowel. Who what do we say, 13 00:00:38,920 --> 00:00:43,479 Speaker 1: had I had a crude celebratory thing want and I'm 14 00:00:43,560 --> 00:00:47,199 Speaker 1: interested where it falls in the actual fine playbook, right, 15 00:00:47,240 --> 00:00:49,159 Speaker 1: but we will we don't have to say specifically what 16 00:00:49,320 --> 00:00:51,240 Speaker 1: I think it was, like thirteen thousand dollars he got fine? 17 00:00:51,320 --> 00:00:57,800 Speaker 1: But yeah, So let's start with Kendricks. So the NFL 18 00:00:57,920 --> 00:01:01,480 Speaker 1: boom done, he's admitted it. Seattle signs them, and now 19 00:01:01,480 --> 00:01:05,319 Speaker 1: we suspected. This seemed to be the easiest uh suspension 20 00:01:05,319 --> 00:01:07,720 Speaker 1: that Roger Goodell or the League office has ever handed 21 00:01:07,760 --> 00:01:11,640 Speaker 1: down in terms of speed. At which had you admitted guilt? Yeah? Um, 22 00:01:12,040 --> 00:01:14,600 Speaker 1: and a new kind of suspension. I can't think of 23 00:01:14,640 --> 00:01:18,360 Speaker 1: the last professional athlete who insider trading for insider trading. Yeah, 24 00:01:18,480 --> 00:01:22,680 Speaker 1: me and my Goldman sex buddy, we're we're scheming a 25 00:01:22,800 --> 00:01:26,560 Speaker 1: ticket scam for insider tips. That just didn't seem to 26 00:01:26,600 --> 00:01:28,679 Speaker 1: be a hard one for listeners out there who are curious. 27 00:01:28,680 --> 00:01:30,679 Speaker 1: Bloomberg business Week just did a story kind of on 28 00:01:30,720 --> 00:01:34,360 Speaker 1: the inside dealings of Michael Kendricks unlikely pair of an 29 00:01:34,360 --> 00:01:37,520 Speaker 1: insider trading banker buddy of his, you know, and how 30 00:01:37,600 --> 00:01:40,319 Speaker 1: they kind of hatched the scheme, which doesn't seem like 31 00:01:40,360 --> 00:01:45,080 Speaker 1: it was all that all that professional in terms of criminality. Yeah, 32 00:01:45,080 --> 00:01:49,960 Speaker 1: exactly professionally when it organized all that sophisticated. Yeah, I 33 00:01:50,000 --> 00:01:52,720 Speaker 1: didn't seem that way. But Isaiica? Well, how about him 34 00:01:52,840 --> 00:01:56,040 Speaker 1: gets fined thirteen thousand? But lance a deal with dude wipes. 35 00:01:56,080 --> 00:01:57,680 Speaker 1: By the way, I didn't even know dude whites with 36 00:01:57,760 --> 00:02:01,160 Speaker 1: the thing. I had not heard of dude wipe, So 37 00:02:01,640 --> 00:02:04,760 Speaker 1: I understand why but I do not under I did 38 00:02:04,760 --> 00:02:06,720 Speaker 1: not know that dude wipes was a thing. But the 39 00:02:06,800 --> 00:02:10,560 Speaker 1: thing about this that I I don't understand the NFL's 40 00:02:10,600 --> 00:02:13,440 Speaker 1: fine structure at all. You know, Isaiah crow Will scores 41 00:02:13,440 --> 00:02:16,440 Speaker 1: a touchdown against his own old team, uses the ball 42 00:02:16,480 --> 00:02:19,840 Speaker 1: as a piece of toilet paper. That's a thirteen dollar finn. 43 00:02:20,280 --> 00:02:24,040 Speaker 1: We have Philip Lindsay running back for the Broncos, who 44 00:02:24,160 --> 00:02:29,000 Speaker 1: repeatedly punched somebody in a scrum, and a Chem Hicks, 45 00:02:29,000 --> 00:02:31,960 Speaker 1: who's a defensive tackle on the Bears, ripped an opposing 46 00:02:31,960 --> 00:02:35,280 Speaker 1: player's helmet off and hit somebody with it. Both of 47 00:02:35,280 --> 00:02:38,600 Speaker 1: those are ten tho dollar fins. Isaiah crow Will gets 48 00:02:38,600 --> 00:02:43,080 Speaker 1: fined a third more because the celebration was a little lude. 49 00:02:43,160 --> 00:02:45,200 Speaker 1: It seems like, at a time when the NFL is 50 00:02:45,200 --> 00:02:48,799 Speaker 1: cracking down so much on the dangers, two players trying 51 00:02:48,840 --> 00:02:52,080 Speaker 1: to make the game safer, things like punching each other 52 00:02:52,200 --> 00:02:55,200 Speaker 1: or ripping somebody's helmet off should be a bigger offense 53 00:02:55,600 --> 00:02:58,000 Speaker 1: than celebrating a touchdown in a manner that is not 54 00:02:58,919 --> 00:03:03,040 Speaker 1: is not entirely easy. Alright, well, speaking speaking of some violence, 55 00:03:03,320 --> 00:03:05,680 Speaker 1: uh m m, A back right, we got we got 56 00:03:05,720 --> 00:03:09,080 Speaker 1: a big, big event big, big fight coming. Yeah, can 57 00:03:09,080 --> 00:03:12,440 Speaker 1: you pronounce the name of the gregor? That's all all 58 00:03:12,480 --> 00:03:14,160 Speaker 1: you need to know is Connor McGregor. Is you know 59 00:03:14,240 --> 00:03:17,560 Speaker 1: that's that's the guy. How many really, realistically, how many 60 00:03:17,639 --> 00:03:20,440 Speaker 1: stars exist in the m m This is the big 61 00:03:20,560 --> 00:03:22,720 Speaker 1: This is the big question. Connor is is fighting an 62 00:03:22,800 --> 00:03:29,480 Speaker 1: undefeated fighter. I'm gonna butcher his name, Kabiba Norma gomadov Um. 63 00:03:29,639 --> 00:03:31,760 Speaker 1: Connor is obviously the star. He's been out of m 64 00:03:31,840 --> 00:03:36,920 Speaker 1: m A for a few years. Uh there, does you 65 00:03:36,960 --> 00:03:38,680 Speaker 1: know it doesn't matter these days? I mean, he doesn't 66 00:03:38,720 --> 00:03:40,600 Speaker 1: have to even be in the octagon. He's in the 67 00:03:40,600 --> 00:03:42,520 Speaker 1: news all the time. Sure, and it and it helps 68 00:03:42,640 --> 00:03:45,120 Speaker 1: promote his fights. Dana White says that this fight is 69 00:03:45,120 --> 00:03:47,480 Speaker 1: gonna sell three million pay per view, which would make 70 00:03:47,520 --> 00:03:49,360 Speaker 1: it the third highest selling pay per view event in 71 00:03:49,400 --> 00:03:52,600 Speaker 1: combat sport history, you know, but behind three fights that 72 00:03:52,640 --> 00:03:56,320 Speaker 1: featured Floyd Mayweather. So it'll set a UFC record for 73 00:03:56,360 --> 00:03:58,440 Speaker 1: pay per view buys. The gate is going to be 74 00:03:58,480 --> 00:04:01,000 Speaker 1: second in UFC history to the first time they fought 75 00:04:01,000 --> 00:04:04,200 Speaker 1: here in New York after it was re legalized. This 76 00:04:04,240 --> 00:04:07,120 Speaker 1: is gonna be a monster, monster business night this weekend 77 00:04:07,120 --> 00:04:11,200 Speaker 1: for UFC However, as you said, uh, it's this, they're 78 00:04:11,200 --> 00:04:13,400 Speaker 1: in the same place they were seemingly four or five 79 00:04:13,480 --> 00:04:16,679 Speaker 1: years ago, where it was Connor mcgreg and Rhonda Rowsy 80 00:04:16,720 --> 00:04:20,280 Speaker 1: who's gone now, and then a huge step down to 81 00:04:20,400 --> 00:04:23,240 Speaker 1: get to the other people that are big draws, those 82 00:04:23,279 --> 00:04:25,760 Speaker 1: folks who are in the know of m m ay. 83 00:04:25,880 --> 00:04:27,680 Speaker 1: They rattle off a few more names to me when 84 00:04:27,680 --> 00:04:31,400 Speaker 1: we're talking about stars, and I just respond, I don't 85 00:04:31,400 --> 00:04:33,720 Speaker 1: know what kind of crossover peel. You as an insider 86 00:04:33,760 --> 00:04:36,640 Speaker 1: think that person has man or woman, but I don't 87 00:04:36,640 --> 00:04:40,440 Speaker 1: know who that person is. So you got Connor McGregor 88 00:04:41,160 --> 00:04:44,680 Speaker 1: and everybody else. Right. So, by the way, you see, 89 00:04:44,680 --> 00:04:48,479 Speaker 1: barstool did a cool deal with the News and yeah, 90 00:04:48,520 --> 00:04:51,640 Speaker 1: and it was like a ridiculous amount of retweets and impressions. 91 00:04:51,640 --> 00:04:53,760 Speaker 1: How I don't know how Twitter measures all that. But 92 00:04:53,839 --> 00:04:57,039 Speaker 1: the little Barstool logo is on the New Zealand Breakers, 93 00:04:57,200 --> 00:05:00,680 Speaker 1: by the part owned by Barstool big Cat. Yeah, yeah, 94 00:05:00,760 --> 00:05:03,719 Speaker 1: one of their persons, one of their personalities. I happened 95 00:05:03,720 --> 00:05:06,400 Speaker 1: not to be one of the listeners. But no moral 96 00:05:06,440 --> 00:05:08,440 Speaker 1: objections to anything they do. It's just don't have time. 97 00:05:08,440 --> 00:05:11,760 Speaker 1: It's very very simple. But they played the Phoenix Suns 98 00:05:11,880 --> 00:05:14,200 Speaker 1: played very well. That's right, this is they're part of 99 00:05:14,200 --> 00:05:17,640 Speaker 1: the preseason. Part of the preseason, they played Phoenix. Um, yeah, 100 00:05:17,720 --> 00:05:20,520 Speaker 1: I mean Barstool putting that brand out there globally interesting 101 00:05:20,600 --> 00:05:22,440 Speaker 1: for folks out there. When you see Scott tweeting more 102 00:05:22,440 --> 00:05:24,600 Speaker 1: and more about Barstool, he's just now realizing that he 103 00:05:24,640 --> 00:05:28,200 Speaker 1: can tap into that. Stueley Army come after me, I've heard. 104 00:05:28,360 --> 00:05:30,960 Speaker 1: It's just I'm giving you all the promotion you want. 105 00:05:30,960 --> 00:05:32,800 Speaker 1: I don't know whatever, but we do, like you know, 106 00:05:32,920 --> 00:05:36,800 Speaker 1: Eric and Ardini was on the show. Yeah, yeah, I'm fan. 107 00:05:36,880 --> 00:05:40,680 Speaker 1: From a business perspective, I'm a fan anytime you take 108 00:05:40,760 --> 00:05:45,440 Speaker 1: a brand and figure out how to draw customers and 109 00:05:45,839 --> 00:05:49,680 Speaker 1: diversify from just sort of a media content to a 110 00:05:49,720 --> 00:05:54,039 Speaker 1: brick and mortar store, to fight merchandise to a fight league. Yeah, 111 00:05:54,279 --> 00:05:57,680 Speaker 1: it's it's an interesting it's an interesting proposition there. So 112 00:05:58,839 --> 00:06:00,080 Speaker 1: you can see him now in the New zeal And 113 00:06:00,160 --> 00:06:03,880 Speaker 1: Breakers uniform, which I find interesting. And those were some 114 00:06:03,920 --> 00:06:05,839 Speaker 1: of the topics for this week. And now, Evan, let's 115 00:06:05,880 --> 00:06:09,080 Speaker 1: get into our interview with Atlanta Braves president Derek Schiller. 116 00:06:09,480 --> 00:06:12,799 Speaker 1: He manages all the business of the front office overseas, 117 00:06:12,839 --> 00:06:16,000 Speaker 1: revenue driving departments, you know what those are, corporate partnerships, 118 00:06:16,000 --> 00:06:19,680 Speaker 1: ticket sales, licensing, merchandizing, everything under the sun. He also 119 00:06:19,720 --> 00:06:23,400 Speaker 1: does community relations, public relations, and since the team's announcement 120 00:06:23,080 --> 00:06:25,719 Speaker 1: in SunTrust Park, and of course you know the mixed 121 00:06:25,800 --> 00:06:28,840 Speaker 1: use development next door the battery Atlanta, Schiller's role has 122 00:06:28,880 --> 00:06:32,800 Speaker 1: expanded to include the oversight of revenue design, partnerships and 123 00:06:32,800 --> 00:06:36,120 Speaker 1: the overall strategy of both venues. Derek, you are here 124 00:06:36,120 --> 00:06:38,039 Speaker 1: in New York. Thanks so much for joining us in 125 00:06:38,080 --> 00:06:41,039 Speaker 1: the studio. Thank you. Why don't we start broadly, how's 126 00:06:41,120 --> 00:06:44,760 Speaker 1: the business of baseball? Because I hear the demo for 127 00:06:44,800 --> 00:06:49,520 Speaker 1: baseball's old attendance is hurting a little bit overarching thirty 128 00:06:49,520 --> 00:06:52,200 Speaker 1: thousand foot view. How's the business of baseball? Well, I 129 00:06:52,240 --> 00:06:55,080 Speaker 1: can speak obviously from an Atlanta Brace perspective, and from 130 00:06:55,080 --> 00:06:57,880 Speaker 1: our perspective, it's really good. I don't see the types 131 00:06:57,920 --> 00:07:00,240 Speaker 1: of trends that I sometimes hear about. You know, I 132 00:07:00,279 --> 00:07:02,960 Speaker 1: think those are things that maybe take place in other 133 00:07:03,080 --> 00:07:07,160 Speaker 1: markets and for other situations. In our particular marketplace, we're 134 00:07:07,160 --> 00:07:09,120 Speaker 1: doing quite well. Obviously, we have a new ballpark, which 135 00:07:09,160 --> 00:07:10,720 Speaker 1: I know we'll we'll talk about at some point in 136 00:07:10,760 --> 00:07:12,640 Speaker 1: time here today. But you guys have a new ball place. 137 00:07:12,720 --> 00:07:15,320 Speaker 1: I know, right, surprising as it might seem, um, but 138 00:07:15,400 --> 00:07:18,400 Speaker 1: I think that's that's created a an excitement in our 139 00:07:18,520 --> 00:07:20,680 Speaker 1: city and even in the region. You know, we're a 140 00:07:20,960 --> 00:07:24,480 Speaker 1: we're a really strong region, uh for for the Braves. 141 00:07:24,560 --> 00:07:28,000 Speaker 1: We have about six states that we draw from, and 142 00:07:28,240 --> 00:07:30,920 Speaker 1: as a result of that, we get a pretty diverse 143 00:07:31,120 --> 00:07:33,680 Speaker 1: fan base, people that were avid fans from a long, 144 00:07:33,720 --> 00:07:36,280 Speaker 1: long time ago, as well as fans that are relatively 145 00:07:36,280 --> 00:07:39,160 Speaker 1: new to the game. Um. And in fact, because of 146 00:07:39,200 --> 00:07:41,120 Speaker 1: the way that the ballpark was built with all this 147 00:07:41,280 --> 00:07:44,560 Speaker 1: entertainment other things, we're really attracting that younger demo who's 148 00:07:44,600 --> 00:07:47,440 Speaker 1: coming down there not just for a baseball experience, but 149 00:07:47,520 --> 00:07:51,080 Speaker 1: really for uh an entertainment experience, something that you know 150 00:07:51,240 --> 00:07:54,680 Speaker 1: is social in nature, entertainment districts, and that's what that's 151 00:07:54,680 --> 00:07:56,680 Speaker 1: what you know. Obviously l a live tim like we 152 00:07:56,800 --> 00:08:00,000 Speaker 1: he talks about it in Seattle and some other places. Um, 153 00:08:00,000 --> 00:08:02,400 Speaker 1: then it talks about it in Tampa. Is it enough? 154 00:08:02,560 --> 00:08:05,440 Speaker 1: Can you live these days? If you just have a 155 00:08:05,480 --> 00:08:07,520 Speaker 1: sports team or the other ten poles, whether it's media 156 00:08:07,560 --> 00:08:09,640 Speaker 1: or real estate, there has to be more I would 157 00:08:09,680 --> 00:08:14,200 Speaker 1: say you could probably do it. I don't think though necessarily, uh, 158 00:08:14,240 --> 00:08:16,320 Speaker 1: you know, and obviously come from a place of bias, 159 00:08:16,360 --> 00:08:18,320 Speaker 1: I don't think it's the right thing to do long term. 160 00:08:18,440 --> 00:08:21,000 Speaker 1: I think, um, you really have to think about the 161 00:08:21,040 --> 00:08:25,240 Speaker 1: overall experience of your fans, and I think the the 162 00:08:25,320 --> 00:08:28,280 Speaker 1: conventional wisdom, traditional type of approach is really to think 163 00:08:28,280 --> 00:08:30,000 Speaker 1: about the fan from the point in time that they 164 00:08:30,120 --> 00:08:33,560 Speaker 1: enter the gate and go into the ballpark or venue, 165 00:08:33,600 --> 00:08:36,120 Speaker 1: sports venue, whatever it might be, two when they leave. 166 00:08:36,520 --> 00:08:39,920 Speaker 1: And our case, we change that paradigm and really thought 167 00:08:39,960 --> 00:08:43,040 Speaker 1: about how do we create the experience from the very 168 00:08:43,080 --> 00:08:45,720 Speaker 1: point in time that they enter the campus, even parking 169 00:08:45,760 --> 00:08:47,600 Speaker 1: the car, from the moment in time that they parked 170 00:08:47,600 --> 00:08:49,720 Speaker 1: the car. Get out of the hassle nobody wants to 171 00:08:49,760 --> 00:08:51,800 Speaker 1: deal with. Yeah, you know, I would say parking is 172 00:08:51,840 --> 00:08:56,600 Speaker 1: a hassle in almost any venue where you have people 173 00:08:56,600 --> 00:08:59,480 Speaker 1: coming at any one time. Uh. To do it right, 174 00:09:00,000 --> 00:09:02,959 Speaker 1: I would encourage people to think about it holistically, meaning 175 00:09:03,600 --> 00:09:05,960 Speaker 1: thinking about parking almost on the very front edge of 176 00:09:06,080 --> 00:09:09,120 Speaker 1: their overall experience. Right. So in our particular case, just 177 00:09:09,160 --> 00:09:11,800 Speaker 1: take our our example, you have a ballpark, we have 178 00:09:11,800 --> 00:09:16,240 Speaker 1: an entertainment district, I'll call it a whole development, and 179 00:09:16,280 --> 00:09:19,360 Speaker 1: we distributed parking all the way around the ballpark, so 180 00:09:19,400 --> 00:09:22,560 Speaker 1: as opposed to the old days where you think about 181 00:09:22,559 --> 00:09:25,160 Speaker 1: those old multi purpose facilities where they'd come in, you'd 182 00:09:25,200 --> 00:09:28,640 Speaker 1: have these gigantic surface parking lots right and everybody would 183 00:09:28,640 --> 00:09:31,920 Speaker 1: go park in those gigantic surface parking lots outside, and 184 00:09:31,960 --> 00:09:34,880 Speaker 1: again you your experience would begin right at the point 185 00:09:34,920 --> 00:09:38,000 Speaker 1: in time that you enter here. The parking is distributed 186 00:09:38,040 --> 00:09:40,320 Speaker 1: all the way around, so if you're coming from one 187 00:09:40,360 --> 00:09:42,600 Speaker 1: side of town or the other, you can in effect 188 00:09:42,640 --> 00:09:45,880 Speaker 1: customize and choose the parking spot, the parking location that 189 00:09:46,000 --> 00:09:50,360 Speaker 1: best meets what your specific travel pattern is, where you're 190 00:09:50,400 --> 00:09:52,200 Speaker 1: coming from, and where you want to go to after 191 00:09:52,240 --> 00:09:55,240 Speaker 1: the game. That, unto itself, kind of changes how you 192 00:09:55,280 --> 00:09:57,680 Speaker 1: look at things, and then also not looking at things 193 00:09:57,720 --> 00:10:00,480 Speaker 1: from a Let's create parking fields and media the outside 194 00:10:00,520 --> 00:10:03,960 Speaker 1: of the ballpark and focus everything on the inside. Let's 195 00:10:04,040 --> 00:10:06,079 Speaker 1: think about how you can have the parking and then 196 00:10:06,360 --> 00:10:09,040 Speaker 1: ultimately create a whole experience that takes place well before 197 00:10:09,040 --> 00:10:10,400 Speaker 1: you get to the ball You know what efact round 198 00:10:10,400 --> 00:10:13,360 Speaker 1: of DVA is talking about in Sacramento, drone aided Parking 199 00:10:13,920 --> 00:10:16,440 Speaker 1: on your on your smartphone, your way to the ballpark. 200 00:10:16,920 --> 00:10:19,200 Speaker 1: It can tell you what's available from the sky and 201 00:10:19,200 --> 00:10:21,559 Speaker 1: how to get there. Well there's you know what in 202 00:10:21,600 --> 00:10:24,080 Speaker 1: all serious is there are a lot of advancements in parking. 203 00:10:24,160 --> 00:10:26,480 Speaker 1: Parking is not one of those things that that has happened, 204 00:10:26,480 --> 00:10:28,560 Speaker 1: you know, the same way and in fact, just take 205 00:10:28,559 --> 00:10:30,800 Speaker 1: our case, right, so we were the very first team 206 00:10:30,880 --> 00:10:33,920 Speaker 1: to partner with Ways. So in the old days, right 207 00:10:33,960 --> 00:10:36,439 Speaker 1: you would even even when I say old days five 208 00:10:36,520 --> 00:10:39,319 Speaker 1: years ago, you'd say when you entered Ways, you'd hit 209 00:10:39,360 --> 00:10:42,000 Speaker 1: the address of the sports venue itself. So in our case, 210 00:10:42,000 --> 00:10:44,360 Speaker 1: sun Trust Park, you'd hit that venue. Well, now what 211 00:10:44,440 --> 00:10:46,920 Speaker 1: we've done with Ways is you customize it so that 212 00:10:46,960 --> 00:10:49,360 Speaker 1: there's a dropdown menu and it takes you point to 213 00:10:49,440 --> 00:10:53,960 Speaker 1: point travel directions to your parking space, not just the venue. 214 00:10:54,240 --> 00:10:56,440 Speaker 1: And so as opposed to just getting you close to 215 00:10:56,480 --> 00:10:59,200 Speaker 1: the venue, you're going point to point to that that 216 00:10:59,240 --> 00:11:01,480 Speaker 1: parking space, and now Ways is actually taken that a 217 00:11:01,520 --> 00:11:03,560 Speaker 1: step further and is doing that all across the country. 218 00:11:03,760 --> 00:11:05,120 Speaker 1: It's all gonna be for not in a couple of 219 00:11:05,200 --> 00:11:10,480 Speaker 1: years when you're self driving car drops you off, then 220 00:11:10,559 --> 00:11:14,559 Speaker 1: will drop exactly for our listeners, who haven't been to 221 00:11:14,600 --> 00:11:16,760 Speaker 1: sun Trust Park give us a sense of of how 222 00:11:16,840 --> 00:11:23,199 Speaker 1: all encompassing the experiences besides just stadium. You know, the 223 00:11:23,320 --> 00:11:25,120 Speaker 1: very first thing that I would say is if you're 224 00:11:25,120 --> 00:11:27,360 Speaker 1: not familiar with Atlanta, you have to kind of understand 225 00:11:27,400 --> 00:11:31,480 Speaker 1: where we are in Atlanta itself. So what that means is, um, 226 00:11:31,559 --> 00:11:34,319 Speaker 1: in Atlanta. UM, it's a big place, right, there's almost 227 00:11:34,360 --> 00:11:37,640 Speaker 1: six million people in metro Atlanta. Um. We're in the 228 00:11:37,679 --> 00:11:41,560 Speaker 1: northeast excuse me, northwest side of town. So, uh, you've 229 00:11:41,600 --> 00:11:44,920 Speaker 1: got two major highways that are intersecting right near US 230 00:11:45,000 --> 00:11:48,160 Speaker 1: I seventy five and eighty five, and that little area 231 00:11:48,160 --> 00:11:51,280 Speaker 1: of town, that pocket of town was previously known as Cumberland. 232 00:11:51,520 --> 00:11:53,960 Speaker 1: Sometimes people still refer to it as that that's the 233 00:11:54,000 --> 00:11:56,920 Speaker 1: sub market. Um. That submarket just kind of give you 234 00:11:56,920 --> 00:11:59,760 Speaker 1: a little frame of reference is larger or as large 235 00:12:00,080 --> 00:12:03,720 Speaker 1: is downtown Charlotte. So the sub market alone is really 236 00:12:03,720 --> 00:12:07,640 Speaker 1: significant in his urban in nature. Where we were, which 237 00:12:07,880 --> 00:12:11,640 Speaker 1: was Turner Field, was close to downtown Atlanta, but it 238 00:12:11,800 --> 00:12:15,600 Speaker 1: was uh separated by twelve sixteen lanes of highway, so 239 00:12:15,640 --> 00:12:19,360 Speaker 1: you'd never necessarily walk from downtown Atlanta to turner Field. 240 00:12:19,720 --> 00:12:22,199 Speaker 1: So we're in this great little submarket with all these 241 00:12:22,200 --> 00:12:24,920 Speaker 1: different activities, were close to a lot of bedroom communities, 242 00:12:24,960 --> 00:12:27,840 Speaker 1: but also close to a lot of offices and developed 243 00:12:27,880 --> 00:12:30,720 Speaker 1: real estate that's around there and easy to get in 244 00:12:30,760 --> 00:12:32,960 Speaker 1: and out of because of the highway system that's there. 245 00:12:33,040 --> 00:12:35,240 Speaker 1: That's a little bit about frame of reference where we are, 246 00:12:35,400 --> 00:12:38,000 Speaker 1: and what we also have in our project is is 247 00:12:38,000 --> 00:12:41,120 Speaker 1: a pretty big swath of real estate. So UM, when 248 00:12:41,160 --> 00:12:44,040 Speaker 1: we started this project some five years or so ago, 249 00:12:44,600 --> 00:12:46,200 Speaker 1: one of the very first things that we did was 250 00:12:46,240 --> 00:12:48,599 Speaker 1: try to buy as much real estate as possible. We 251 00:12:48,679 --> 00:12:52,680 Speaker 1: ultimately settled on about ninety acres UM. The primary project 252 00:12:53,240 --> 00:12:57,160 Speaker 1: is about sixty acres, of which UM the ballpark takes 253 00:12:57,200 --> 00:13:01,160 Speaker 1: about fifteen of those sixty acres. Uh. So the rest 254 00:13:01,240 --> 00:13:04,280 Speaker 1: of that is the development, and you've got all sorts 255 00:13:04,280 --> 00:13:07,000 Speaker 1: of things in and around there. The really interesting thing 256 00:13:07,000 --> 00:13:09,400 Speaker 1: about that, though, is it was, despite the fact that 257 00:13:09,440 --> 00:13:13,480 Speaker 1: it's really close to this urban location within Atlanta, this 258 00:13:13,520 --> 00:13:17,560 Speaker 1: Cumberland submarket, it was undeveloped lan and the reason for 259 00:13:17,600 --> 00:13:21,199 Speaker 1: that is it had pipelines running through, a colonial pipeline 260 00:13:21,240 --> 00:13:24,440 Speaker 1: being one of those that ran through that property. And 261 00:13:24,480 --> 00:13:26,079 Speaker 1: so one of the first things that we had to 262 00:13:26,120 --> 00:13:28,880 Speaker 1: do when we started this was actually get with Colonial 263 00:13:28,920 --> 00:13:32,400 Speaker 1: pipeline and have them relocate their pipeline, which is a 264 00:13:32,440 --> 00:13:35,880 Speaker 1: really that doesn't sound easy. It's not necessarily easy, except 265 00:13:35,920 --> 00:13:37,679 Speaker 1: if you have a checkbook that's willing to pay for it. 266 00:13:38,000 --> 00:13:40,520 Speaker 1: And obviously that's what what we did was we said 267 00:13:40,600 --> 00:13:42,719 Speaker 1: can we do this? And they said, oh yeah. Ironically, 268 00:13:42,760 --> 00:13:44,400 Speaker 1: we didn't know this at the time. They do it 269 00:13:44,440 --> 00:13:46,680 Speaker 1: all the time, you know, they had with developments occurring 270 00:13:46,679 --> 00:13:49,120 Speaker 1: all across the country and this pipeline running from New 271 00:13:49,240 --> 00:13:51,840 Speaker 1: Orleans all the way up to Maine. Um, you know, 272 00:13:51,920 --> 00:13:55,120 Speaker 1: they occasionally have to do these these pipeline relocations and 273 00:13:55,280 --> 00:13:58,080 Speaker 1: this was one such area. So it wasn't completely out 274 00:13:58,080 --> 00:14:01,000 Speaker 1: of the norm um, but it wasn't necessarily a task 275 00:14:01,040 --> 00:14:03,400 Speaker 1: that most developers would have set out to do. There 276 00:14:03,440 --> 00:14:05,400 Speaker 1: was also a lot of public money that went into 277 00:14:05,440 --> 00:14:08,440 Speaker 1: the into the park, something that is you know, very controversial. 278 00:14:08,559 --> 00:14:10,280 Speaker 1: Give us an update on how that is working. Have 279 00:14:10,280 --> 00:14:15,600 Speaker 1: you heard from the tea party? So so this is 280 00:14:15,640 --> 00:14:18,840 Speaker 1: actually where I think our project kind of breaks that 281 00:14:18,840 --> 00:14:23,000 Speaker 1: that whole mold of where uh professional sports facilities have 282 00:14:23,120 --> 00:14:26,120 Speaker 1: been and what I think is going to hopefully be 283 00:14:26,200 --> 00:14:28,880 Speaker 1: the new paradigm for sports facilities moving forward, which is 284 00:14:29,400 --> 00:14:33,720 Speaker 1: traditionally again the team's only looked at the sports facility 285 00:14:33,840 --> 00:14:37,600 Speaker 1: as as what they were developing, what they were investing in. 286 00:14:38,080 --> 00:14:40,240 Speaker 1: And so in our case, we did do a public 287 00:14:40,280 --> 00:14:44,320 Speaker 1: private partnership with in fact um a municipality happened to 288 00:14:44,320 --> 00:14:46,120 Speaker 1: be Cobb County, which is the area of town that 289 00:14:46,200 --> 00:14:49,280 Speaker 1: this falls into, been great partners but they they in 290 00:14:49,440 --> 00:14:54,160 Speaker 1: essence UM helped fund just the ballpark itself. But what 291 00:14:54,200 --> 00:14:57,520 Speaker 1: we also then did was had a promise to them 292 00:14:57,600 --> 00:15:00,440 Speaker 1: that we were going to do a significant development in 293 00:15:00,480 --> 00:15:03,960 Speaker 1: association with the ballpark at the same time, in the 294 00:15:04,000 --> 00:15:06,360 Speaker 1: rest of that acreage that we just talked was their 295 00:15:06,360 --> 00:15:09,800 Speaker 1: money incumbent upon that investment in the surrounding area. So 296 00:15:09,880 --> 00:15:13,760 Speaker 1: contractually it wasn't because the contract was only tied specifically 297 00:15:13,840 --> 00:15:17,200 Speaker 1: to the venue itself, but it was our agreement. And 298 00:15:17,240 --> 00:15:19,040 Speaker 1: what I mean by that is we were going to 299 00:15:19,080 --> 00:15:21,440 Speaker 1: do it, and we set out the very first shovels 300 00:15:21,440 --> 00:15:25,920 Speaker 1: in the dirt contemplated us building both being the centrast 301 00:15:25,960 --> 00:15:29,280 Speaker 1: park as well as the development, which ultimately represents about 302 00:15:29,320 --> 00:15:32,400 Speaker 1: one point five million square feet of space. We're chatting 303 00:15:32,400 --> 00:15:34,760 Speaker 1: with Derrick Schilett, President of the Atlanta Braves. Now, did 304 00:15:34,800 --> 00:15:38,680 Speaker 1: the traditional bond market force that to happen or were 305 00:15:38,680 --> 00:15:42,160 Speaker 1: you looking at different ways at financing the project? You know, 306 00:15:42,200 --> 00:15:43,960 Speaker 1: we looked at all sorts of different ways. We've been 307 00:15:43,960 --> 00:15:46,440 Speaker 1: studying this, this concept of what we do for the 308 00:15:46,440 --> 00:15:48,200 Speaker 1: future of the Braves for a long time. You know, 309 00:15:48,280 --> 00:15:51,480 Speaker 1: our venue, just just for background, UM, where we came from. 310 00:15:51,520 --> 00:15:54,320 Speaker 1: Turner Field was built for the Olympic Games. So it 311 00:15:54,440 --> 00:15:57,480 Speaker 1: was built primarily without public money, UM, and it was 312 00:15:57,520 --> 00:16:02,600 Speaker 1: retrofitted with UM a baseball stadium ultimately in mind, but 313 00:16:02,680 --> 00:16:05,200 Speaker 1: it was at first an Olympic stadium, and so it 314 00:16:05,320 --> 00:16:08,000 Speaker 1: had a number of things that I'll call value engineered 315 00:16:08,000 --> 00:16:10,600 Speaker 1: into the facility that made sure that it wasn't necessarily 316 00:16:10,960 --> 00:16:13,960 Speaker 1: a long term look at the facility, right. UM. They're 317 00:16:14,000 --> 00:16:17,000 Speaker 1: all things that were done for those two weeks, three 318 00:16:17,040 --> 00:16:19,880 Speaker 1: weeks during the Olympic Games. UM. One of the things 319 00:16:19,880 --> 00:16:23,280 Speaker 1: that we really struggled with, right is if we were 320 00:16:23,320 --> 00:16:26,000 Speaker 1: to stay there, what would we be able to do, 321 00:16:26,080 --> 00:16:28,880 Speaker 1: What would we have to do to the facility to 322 00:16:29,000 --> 00:16:30,520 Speaker 1: make sure that it worked for us for the next 323 00:16:30,520 --> 00:16:33,800 Speaker 1: twenty years, thirty years? And the problem when you get 324 00:16:33,840 --> 00:16:37,520 Speaker 1: into it is the model of how you kind of 325 00:16:37,560 --> 00:16:40,840 Speaker 1: fund That means that you have to look alternative ways, 326 00:16:40,880 --> 00:16:43,120 Speaker 1: and and what we ultimately looked at was what could 327 00:16:43,160 --> 00:16:45,520 Speaker 1: we do in a development in association with that that 328 00:16:45,560 --> 00:16:48,520 Speaker 1: got us thinking about this whole project to begin with. Ultimately, 329 00:16:48,520 --> 00:16:51,200 Speaker 1: we weren't able to reach an agreement with the City 330 00:16:51,240 --> 00:16:53,880 Speaker 1: of Atlanta and and and the municipality right there, and 331 00:16:53,920 --> 00:16:56,600 Speaker 1: so we started looking at other places. Right. That ultimately 332 00:16:56,600 --> 00:16:59,800 Speaker 1: brought us to Cobb County Triple A bond rated uh 333 00:17:00,000 --> 00:17:04,080 Speaker 1: Awnly UM, a very affluent part of Atlanta, but also 334 00:17:04,240 --> 00:17:07,200 Speaker 1: very diverse. In fact, our specific submarket is one of 335 00:17:07,240 --> 00:17:10,840 Speaker 1: the most diverse sub markets in all of Metro Atlanta. 336 00:17:10,960 --> 00:17:14,280 Speaker 1: And UM and looked at kind of creative financing ways, 337 00:17:14,320 --> 00:17:16,840 Speaker 1: But ultimately it's a it's a pretty simple formula, right, 338 00:17:16,880 --> 00:17:19,520 Speaker 1: It's a public private partnership. We fronted a bunch of 339 00:17:19,520 --> 00:17:22,639 Speaker 1: the money, They then put bonds UM that securitized the 340 00:17:22,680 --> 00:17:24,800 Speaker 1: rest of that, and we have least payments that that 341 00:17:24,920 --> 00:17:27,159 Speaker 1: helped pay that down over time. Talking about revenue, have 342 00:17:27,200 --> 00:17:29,840 Speaker 1: the braves and you specifically played any role in trying 343 00:17:29,840 --> 00:17:33,960 Speaker 1: to lure Amazon. So I don't know much about the 344 00:17:34,000 --> 00:17:36,560 Speaker 1: Amazon situation other than what I read and hear from 345 00:17:36,600 --> 00:17:38,800 Speaker 1: you all. But um, you know, I think there's there's 346 00:17:38,840 --> 00:17:41,040 Speaker 1: Certainly Atlanta is one of those things that that are 347 00:17:41,080 --> 00:17:42,800 Speaker 1: one of those cities that is is getting a lot 348 00:17:42,800 --> 00:17:45,960 Speaker 1: of play. I would argue where we kind of come 349 00:17:46,000 --> 00:17:48,920 Speaker 1: in to play on that is that. Uh. If I'm 350 00:17:48,960 --> 00:17:51,359 Speaker 1: a company, whether it be Amazon or anybody else, and 351 00:17:51,400 --> 00:17:54,480 Speaker 1: I'm thinking about where I'm going to relocate, I want 352 00:17:54,480 --> 00:17:56,200 Speaker 1: to make sure that the culture is good. I want 353 00:17:56,200 --> 00:17:58,000 Speaker 1: to make sure that you know, it's a it's a 354 00:17:58,080 --> 00:17:59,919 Speaker 1: vibrant city. I want to make sure that there's thing 355 00:18:00,240 --> 00:18:03,720 Speaker 1: for my my my staff, my employee group to work 356 00:18:03,880 --> 00:18:06,560 Speaker 1: on and to play in and you know, have quality 357 00:18:06,560 --> 00:18:09,840 Speaker 1: of life. And I think that the Atlanta Braves create 358 00:18:09,920 --> 00:18:14,280 Speaker 1: a tremendous cultural impact for Metro Atlanta, for the Southeast. 359 00:18:14,400 --> 00:18:17,280 Speaker 1: And you know, again it's might sound a little quaint, 360 00:18:17,320 --> 00:18:20,560 Speaker 1: but we we create a quality of life opportunity, We 361 00:18:20,640 --> 00:18:24,320 Speaker 1: create fun for for people and for people to cheer 362 00:18:24,320 --> 00:18:27,560 Speaker 1: about and rally around with their city. We had Arthur 363 00:18:27,600 --> 00:18:31,200 Speaker 1: Blank on the podcast recently, is Atlanta the best stadium 364 00:18:31,280 --> 00:18:33,320 Speaker 1: city in the in the country. Well, I don't think 365 00:18:33,359 --> 00:18:36,800 Speaker 1: there's any Certainly, there's no other city of recent era 366 00:18:37,040 --> 00:18:40,880 Speaker 1: that's gone through the transformation and facilities that Atlanta has 367 00:18:40,920 --> 00:18:43,359 Speaker 1: not only with what Arthur Blank and the Falcons have 368 00:18:43,440 --> 00:18:46,359 Speaker 1: done now Atlanta United and Falcons in in merced has 369 00:18:46,359 --> 00:18:48,280 Speaker 1: been stadium. But did you think there'd be seventy thousand 370 00:18:48,320 --> 00:18:50,720 Speaker 1: for soccer? I did not, And and actually I was 371 00:18:50,760 --> 00:18:53,920 Speaker 1: involved in the launch of of the Atlanta Thrashers, so 372 00:18:54,040 --> 00:18:56,680 Speaker 1: I kind of understand how to launch a franchise in Atlanta. 373 00:18:57,200 --> 00:19:00,600 Speaker 1: Um we actually set attendance records at that point in time. 374 00:19:01,040 --> 00:19:03,200 Speaker 1: UM we ultimately weren't very good on the ice for 375 00:19:03,240 --> 00:19:05,240 Speaker 1: a long period of time, and you know that that 376 00:19:05,320 --> 00:19:08,600 Speaker 1: probably created fans to have a little bit of um 377 00:19:08,720 --> 00:19:12,360 Speaker 1: um going away from us. But but um, in addition 378 00:19:12,400 --> 00:19:16,400 Speaker 1: to Mercedes Bends, you also have the Atlanta Hawks, who 379 00:19:16,600 --> 00:19:20,000 Speaker 1: have have just completed a pretty big portion of their 380 00:19:20,080 --> 00:19:23,879 Speaker 1: transformation of Philips Arena what is now State Farms, changing 381 00:19:23,880 --> 00:19:25,960 Speaker 1: that model. They have that bar down on the first 382 00:19:26,200 --> 00:19:28,240 Speaker 1: like those premium seats are gonna be a bar, and 383 00:19:28,280 --> 00:19:30,520 Speaker 1: Tony Wrestler owns the land where Amazon's looking. But if 384 00:19:30,520 --> 00:19:33,120 Speaker 1: it comes back to the sports and the development real 385 00:19:33,240 --> 00:19:36,640 Speaker 1: estate media, yeah, yeah, it's you know again, I think 386 00:19:36,640 --> 00:19:39,399 Speaker 1: the paradigm is now starting to get closely studied around 387 00:19:39,400 --> 00:19:42,160 Speaker 1: the country. You know, in our case, we've had about 388 00:19:42,200 --> 00:19:45,480 Speaker 1: a hundred teams of all ILKs, whether it be pro 389 00:19:46,080 --> 00:19:49,960 Speaker 1: even college, around the world. We've had Australian rugby teams, 390 00:19:50,000 --> 00:19:53,120 Speaker 1: We've had Japanese baseball teams that come and have studied 391 00:19:53,200 --> 00:19:56,399 Speaker 1: our model, looked at how we've done things. And so 392 00:19:56,640 --> 00:19:59,679 Speaker 1: I do think that there is a significant shift, and 393 00:19:59,720 --> 00:20:01,280 Speaker 1: I like to believe that the way we put our 394 00:20:01,320 --> 00:20:03,640 Speaker 1: business model together as part of that reason, I'm looking 395 00:20:03,640 --> 00:20:07,879 Speaker 1: forward to the peach Cobbler in Tokyo. Why is this? 396 00:20:08,359 --> 00:20:10,920 Speaker 1: Is it zero sum? As you know, as a as 397 00:20:10,920 --> 00:20:14,000 Speaker 1: a soccer team arrives that's suddenly getting seventy thou people 398 00:20:14,040 --> 00:20:17,040 Speaker 1: for its home games, as you know, the Falcon suddenly 399 00:20:17,080 --> 00:20:19,239 Speaker 1: have you know, cheaper food and more people are coming in. 400 00:20:20,080 --> 00:20:22,560 Speaker 1: Is it better for you if there's more teams in 401 00:20:22,600 --> 00:20:25,280 Speaker 1: Atlanta that people are excited about? You know, I am 402 00:20:25,320 --> 00:20:27,600 Speaker 1: one of those people to believe in the tide rises 403 00:20:27,640 --> 00:20:30,560 Speaker 1: all ships. So yes, I believe when one sports team, 404 00:20:30,600 --> 00:20:34,480 Speaker 1: one sports facility does well in a particular region city, 405 00:20:34,760 --> 00:20:37,360 Speaker 1: I do think that it helps everybody because it creates 406 00:20:37,359 --> 00:20:39,760 Speaker 1: that whole focus on sports as a whole and what 407 00:20:39,840 --> 00:20:42,040 Speaker 1: sports as a whole can do for the community. Going 408 00:20:42,040 --> 00:20:44,560 Speaker 1: back to that whole cultural impact, tell me about that 409 00:20:44,600 --> 00:20:47,960 Speaker 1: community pricing. With Arthur Blank in the stadium, does that 410 00:20:48,000 --> 00:20:51,480 Speaker 1: put pressure on you to at least look at the 411 00:20:51,520 --> 00:20:53,480 Speaker 1: same what what's a hot dog go for its suntra? 412 00:20:54,080 --> 00:20:56,000 Speaker 1: You know, a hot dog is not that much more 413 00:20:56,080 --> 00:20:58,920 Speaker 1: expensive than and in fact, in some cases our food 414 00:20:58,920 --> 00:21:02,680 Speaker 1: prices are very sim are I think the the approaches, um, 415 00:21:03,359 --> 00:21:05,720 Speaker 1: there's just two different models that play here, right, you 416 00:21:05,760 --> 00:21:08,920 Speaker 1: have to almost as opposed to just narrowly focusing on 417 00:21:09,240 --> 00:21:11,720 Speaker 1: the food prices, you have to look at the entirety 418 00:21:11,800 --> 00:21:14,639 Speaker 1: of the fan experience and what it costs for that 419 00:21:14,720 --> 00:21:18,000 Speaker 1: fan to experience that game. So you have to weigh 420 00:21:18,000 --> 00:21:22,680 Speaker 1: in parking costs, the ticket costs, the um certainly food 421 00:21:22,680 --> 00:21:25,239 Speaker 1: and beverage being part of that, maybe even merchandise if 422 00:21:25,280 --> 00:21:27,600 Speaker 1: you throw that all in, right, So the overall cost 423 00:21:27,680 --> 00:21:29,840 Speaker 1: of attending a game, and one of the things that 424 00:21:29,880 --> 00:21:32,800 Speaker 1: we we are proud of is that baseball tickets and 425 00:21:32,840 --> 00:21:35,719 Speaker 1: certainly the Braves are part of this, represents still the 426 00:21:35,760 --> 00:21:40,879 Speaker 1: most value conscious, the most u uh inexpensive way to attend. 427 00:21:40,880 --> 00:21:42,600 Speaker 1: A professor, if I want to go to a Braves 428 00:21:42,640 --> 00:21:46,600 Speaker 1: game family, Afore, what's what's the cheapest you You can 429 00:21:46,600 --> 00:21:49,080 Speaker 1: get a ticket for his lows eight dollars at Sancho's 430 00:21:49,119 --> 00:21:53,320 Speaker 1: Park and that's good exactly. UM. And you can even 431 00:21:53,359 --> 00:21:55,440 Speaker 1: and you can even package some of those tickets those 432 00:21:55,600 --> 00:21:58,480 Speaker 1: if you're a very very value conscious family, UM, you 433 00:21:58,480 --> 00:22:00,919 Speaker 1: can even package those tickets with So we've got that 434 00:22:01,000 --> 00:22:03,760 Speaker 1: whole all inclusive kind of mentality where you can get 435 00:22:03,760 --> 00:22:06,879 Speaker 1: a really really low set price, uh for a family 436 00:22:06,920 --> 00:22:08,639 Speaker 1: of four, and you can get that under you know, 437 00:22:08,680 --> 00:22:11,200 Speaker 1: call it fifty bucks. So it's it's you know that 438 00:22:11,200 --> 00:22:14,200 Speaker 1: that's a that's a very value uh, family friendly offering. 439 00:22:14,480 --> 00:22:16,280 Speaker 1: And then you know, if you really want to experience 440 00:22:16,280 --> 00:22:19,320 Speaker 1: a game and in a in a great uh amenity 441 00:22:19,400 --> 00:22:21,200 Speaker 1: driven way, we have all the way up to what 442 00:22:21,240 --> 00:22:23,480 Speaker 1: we call our our sun trast Club, which is a 443 00:22:23,800 --> 00:22:28,480 Speaker 1: valet parking has food and beverage inclusive including um beer, wine, 444 00:22:28,520 --> 00:22:31,360 Speaker 1: spirits uh and also the best seats in the house 445 00:22:31,960 --> 00:22:34,960 Speaker 1: literally right behind home plate and those you know, those 446 00:22:35,000 --> 00:22:38,679 Speaker 1: are approximately five Well, Pinky's came out with their Legend 447 00:22:38,720 --> 00:22:40,639 Speaker 1: seats and after one year they had to cut the 448 00:22:40,680 --> 00:22:44,160 Speaker 1: price right away. The demand just wasn't there. How did Drew, 449 00:22:44,240 --> 00:22:45,560 Speaker 1: how did you come up with the pricing? And has 450 00:22:45,560 --> 00:22:48,520 Speaker 1: it worked out? So? You know, one of the things 451 00:22:48,520 --> 00:22:51,520 Speaker 1: that separates us from UM where we were versus where 452 00:22:51,560 --> 00:22:55,080 Speaker 1: we are today is UM we previously had about four 453 00:22:55,160 --> 00:22:57,560 Speaker 1: hundred what I'll call premium seats, and that means that 454 00:22:57,720 --> 00:23:00,560 Speaker 1: something that has an amenity associated with them at a club, 455 00:23:00,880 --> 00:23:03,960 Speaker 1: something that's you know, got something extra beyond just the 456 00:23:04,000 --> 00:23:07,520 Speaker 1: seat itself. UM four hundred. Now we have at Centrast 457 00:23:07,520 --> 00:23:11,320 Speaker 1: Park about four thousand, and So the the real way 458 00:23:11,359 --> 00:23:13,439 Speaker 1: that we made our economic model work right is we 459 00:23:13,520 --> 00:23:17,040 Speaker 1: left for the most part, all the non premium seats 460 00:23:17,200 --> 00:23:20,879 Speaker 1: the same, even in some cases lowered those prices, and 461 00:23:21,640 --> 00:23:26,000 Speaker 1: drove a bunch of amenities into those premium tickets so 462 00:23:26,080 --> 00:23:29,160 Speaker 1: that those people, those four thousand seats worth that are 463 00:23:29,160 --> 00:23:32,320 Speaker 1: looking for some really unique way to uh participate and 464 00:23:32,359 --> 00:23:34,720 Speaker 1: watch the game. They want a club experience, they want 465 00:23:34,720 --> 00:23:37,680 Speaker 1: to entertain friends or family or or business colleagues or whatever, 466 00:23:37,880 --> 00:23:40,639 Speaker 1: they can do that UM. And there's all sorts of 467 00:23:40,640 --> 00:23:42,600 Speaker 1: different clubs that we have and all sorts of different 468 00:23:42,640 --> 00:23:45,680 Speaker 1: hospitality spaces to do that. So that's that's really how 469 00:23:45,720 --> 00:23:49,160 Speaker 1: we drove how the economic model works. But I'll even 470 00:23:49,160 --> 00:23:52,160 Speaker 1: go back to you know that that that that family 471 00:23:52,240 --> 00:23:56,000 Speaker 1: friendly model, you know, being very value conscious in mind, 472 00:23:56,520 --> 00:23:58,480 Speaker 1: and and and again, I think this is where baseball 473 00:23:58,520 --> 00:24:00,800 Speaker 1: as a whole, not just the brace, but but everybody 474 00:24:00,840 --> 00:24:03,080 Speaker 1: does really well with pricing their tickets that make it 475 00:24:03,240 --> 00:24:05,800 Speaker 1: very family friendly. You know, our particular case, just give 476 00:24:05,800 --> 00:24:07,959 Speaker 1: you some some stats on that. We have over fifty 477 00:24:08,000 --> 00:24:11,280 Speaker 1: percent of our fans over fift are coming with a 478 00:24:11,760 --> 00:24:15,560 Speaker 1: family member, coming with a child inte. So we have 479 00:24:15,680 --> 00:24:18,639 Speaker 1: that that unique situation where about half of our crowd 480 00:24:18,680 --> 00:24:22,320 Speaker 1: on any given night is a family crowd coming with 481 00:24:22,480 --> 00:24:25,080 Speaker 1: kids and enjoying that. And there's there's all sorts of 482 00:24:25,119 --> 00:24:27,960 Speaker 1: different environment that that we create for those there's you know, 483 00:24:28,040 --> 00:24:31,240 Speaker 1: family friendly spaces and that. And even if you're really 484 00:24:31,280 --> 00:24:34,400 Speaker 1: really value conscious um in our particular case, you can 485 00:24:34,440 --> 00:24:36,840 Speaker 1: bring in your own food with you, So forget low 486 00:24:36,920 --> 00:24:39,800 Speaker 1: food prices. You can actually bring in you know, your 487 00:24:40,040 --> 00:24:44,320 Speaker 1: pimento cheese sandwich or your you know whatever it, thank you, 488 00:24:44,760 --> 00:24:47,320 Speaker 1: whatever whatever it is that you're you're interested in, right 489 00:24:47,640 --> 00:24:49,639 Speaker 1: and and bring that with you, so you can create 490 00:24:50,080 --> 00:24:52,600 Speaker 1: a very inexpensive out at a game. We're talking with 491 00:24:52,600 --> 00:24:55,160 Speaker 1: Derek Schiller, president of the Atlanta Braves, who are back 492 00:24:55,200 --> 00:24:57,720 Speaker 1: in the playoffs the first time in five years, I 493 00:24:57,760 --> 00:25:01,679 Speaker 1: believe outside of a few extra home games, ideally a 494 00:25:01,680 --> 00:25:04,280 Speaker 1: lot of extra home games, what kind of impact does 495 00:25:04,320 --> 00:25:07,240 Speaker 1: getting back into the playoffs have on your bottom line? Well, 496 00:25:07,280 --> 00:25:10,199 Speaker 1: in in baseball, as you know, there's there's uh, it's 497 00:25:10,520 --> 00:25:14,439 Speaker 1: very competitive. Um, making the postseason takes a hundred and 498 00:25:14,480 --> 00:25:17,640 Speaker 1: sixty two games worth and in fact, maybe in some 499 00:25:17,680 --> 00:25:19,880 Speaker 1: cases a hundred and sixty three games worth to try 500 00:25:19,920 --> 00:25:23,720 Speaker 1: to figure that out. But um, it's it's not where 501 00:25:23,800 --> 00:25:26,520 Speaker 1: every team makes the postseason, you know, it's not where 502 00:25:26,560 --> 00:25:29,800 Speaker 1: half of the league makes the postseason. So this is 503 00:25:29,960 --> 00:25:33,280 Speaker 1: this is highly competitive and very difficult to do. And 504 00:25:33,320 --> 00:25:35,760 Speaker 1: then you have all of this attention that starts to 505 00:25:35,800 --> 00:25:38,920 Speaker 1: get beamed on you once you make that postseason, once 506 00:25:38,960 --> 00:25:42,080 Speaker 1: you've gone through those hundred and sixty two games. So, uh, 507 00:25:42,119 --> 00:25:44,800 Speaker 1: as as we get into postseason, there's a lot of 508 00:25:44,800 --> 00:25:47,800 Speaker 1: eyes on us. Um, there's a lot of attention across 509 00:25:47,880 --> 00:25:51,239 Speaker 1: the league. And even that started well before because you know, 510 00:25:51,320 --> 00:25:53,280 Speaker 1: for the for the most part, during the course of 511 00:25:53,280 --> 00:25:56,879 Speaker 1: the season, we had a lot of unique stories that 512 00:25:56,920 --> 00:26:00,320 Speaker 1: are going on with us the Atlanta Braves specifically, you know, 513 00:26:00,560 --> 00:26:04,160 Speaker 1: you know, a really young team. We're breaking out arguably 514 00:26:04,160 --> 00:26:08,240 Speaker 1: a little bit earlier than most of the prognosticators had predicted. Uh, 515 00:26:08,280 --> 00:26:10,840 Speaker 1: so we're doing better earlier. They don't know anything, They 516 00:26:10,840 --> 00:26:15,160 Speaker 1: don't know anything. And also you have these great, these 517 00:26:15,200 --> 00:26:18,280 Speaker 1: great storylines of individual athletes doing exceptionally well. I mean, 518 00:26:18,320 --> 00:26:20,520 Speaker 1: the one that's probably getting the most attention for US 519 00:26:20,640 --> 00:26:24,159 Speaker 1: is is Ronald Acuna, who's a really young phenom talent 520 00:26:24,640 --> 00:26:28,359 Speaker 1: um playing left field for US right now, and I 521 00:26:28,720 --> 00:26:32,040 Speaker 1: think he deserves a regular year twenty years old. Um 522 00:26:32,160 --> 00:26:35,200 Speaker 1: is really a five tool player and maybe most exciting 523 00:26:35,200 --> 00:26:36,920 Speaker 1: player right now playing the game. I don't see how 524 00:26:36,920 --> 00:26:40,840 Speaker 1: this wasn't expected. When you have a staff of Maddox, Avery, 525 00:26:40,920 --> 00:26:44,360 Speaker 1: Glavin and Smult, you should do what if we could 526 00:26:44,359 --> 00:26:48,000 Speaker 1: bring those guys back. Every part of a public company, 527 00:26:48,040 --> 00:26:50,919 Speaker 1: the NFL bars corporate ownership. You're part of liberty. They 528 00:26:50,960 --> 00:26:52,919 Speaker 1: don't want what's going on with the parent company to 529 00:26:53,000 --> 00:26:55,640 Speaker 1: impact what's going on the field. Do you ever hear 530 00:26:55,720 --> 00:26:59,160 Speaker 1: from the boardroom and how how's that communication? So first 531 00:26:59,160 --> 00:27:01,440 Speaker 1: of all, I think I think corporate ownership gets maligned, 532 00:27:01,720 --> 00:27:04,560 Speaker 1: um uh too much corporate ownership in our case. And 533 00:27:04,600 --> 00:27:06,520 Speaker 1: remember not only do we have the history of corporate 534 00:27:06,560 --> 00:27:09,520 Speaker 1: ownership with with Liberty Media, but also it dates back 535 00:27:09,560 --> 00:27:14,280 Speaker 1: to when Turner Turner broadcast. You notice, right, so I 536 00:27:14,359 --> 00:27:18,720 Speaker 1: used to work so uh no, no comment. Uh he was. 537 00:27:18,840 --> 00:27:21,000 Speaker 1: He was a great boss in all seriousness. But but 538 00:27:21,480 --> 00:27:25,560 Speaker 1: the concept of corporate owned teams, I think is is 539 00:27:25,600 --> 00:27:28,919 Speaker 1: maligned because there's there's misnomers. You don't people think that 540 00:27:28,960 --> 00:27:31,040 Speaker 1: there has to be this one central figurehead for this 541 00:27:31,119 --> 00:27:34,000 Speaker 1: to be all things going right with the team, we 542 00:27:34,080 --> 00:27:38,000 Speaker 1: have great funding, we're left alone. Liberty Media likes the 543 00:27:38,040 --> 00:27:40,720 Speaker 1: way that we're operated. We have a great management team 544 00:27:40,720 --> 00:27:43,800 Speaker 1: in place, led by Terry McGurk, our chairman, and and 545 00:27:43,800 --> 00:27:46,560 Speaker 1: and Liberty basically talks to us and says what do 546 00:27:46,600 --> 00:27:50,080 Speaker 1: you need, what resources do you need? Money? And and 547 00:27:50,080 --> 00:27:52,520 Speaker 1: and sometimes is that I mean. The good news though 548 00:27:52,560 --> 00:27:54,840 Speaker 1: for us, again going back to our our history of 549 00:27:54,840 --> 00:27:56,760 Speaker 1: of corporate owned teams, is we know we have to 550 00:27:56,800 --> 00:27:58,639 Speaker 1: balance a budget. We know we have to kind of 551 00:27:58,960 --> 00:28:01,160 Speaker 1: you know, be disciplined with that. And so that means 552 00:28:01,240 --> 00:28:05,080 Speaker 1: that there's a focus on doing the right thing, making 553 00:28:05,119 --> 00:28:07,840 Speaker 1: the right decisions. They include as big as what we 554 00:28:07,840 --> 00:28:10,280 Speaker 1: were just talking about with centrast Park in the Battery Atlanta, 555 00:28:10,600 --> 00:28:13,040 Speaker 1: and they mean that we have to think about creating 556 00:28:13,040 --> 00:28:15,159 Speaker 1: new revenue streams for the future to make sure that 557 00:28:15,160 --> 00:28:17,840 Speaker 1: we're going to be viable for a long period of time. 558 00:28:17,920 --> 00:28:20,800 Speaker 1: Your father's Harvey Shiller fifteen seconds. And if people don't 559 00:28:20,840 --> 00:28:23,960 Speaker 1: know who that is, Google, very simple. What's the one 560 00:28:23,960 --> 00:28:26,359 Speaker 1: piece of advice that you kept but your father gave you? 561 00:28:26,800 --> 00:28:30,840 Speaker 1: I mean, you saw a lot growing up, so uh real. Briefly, so, 562 00:28:30,880 --> 00:28:33,920 Speaker 1: he is um he's an educator by background. So he 563 00:28:34,000 --> 00:28:36,240 Speaker 1: got a pH d in chemistry and taught chemistry at 564 00:28:36,240 --> 00:28:38,280 Speaker 1: the Air Force Academy before he did all sorts of 565 00:28:38,280 --> 00:28:42,000 Speaker 1: other great things. My dad taught me more than anything 566 00:28:42,520 --> 00:28:46,920 Speaker 1: to always be open to learning, to make sure that 567 00:28:47,000 --> 00:28:50,680 Speaker 1: every single day you're learning something. And I've applied that 568 00:28:50,760 --> 00:28:54,000 Speaker 1: principle throughout my life. You know, every day I want 569 00:28:54,040 --> 00:28:55,960 Speaker 1: to try to learn something new, whether it's from you know, 570 00:28:56,000 --> 00:28:59,160 Speaker 1: something like you or from a book or from whatever 571 00:28:59,200 --> 00:29:02,680 Speaker 1: it might be, just being open to learn. All right, Derek, 572 00:29:02,960 --> 00:29:05,040 Speaker 1: thank you so much for joining us. That is the 573 00:29:05,040 --> 00:29:08,160 Speaker 1: Bridge President. Derek Schiller, thank you, it's been great. Appreciate 574 00:29:09,000 --> 00:29:11,080 Speaker 1: time for takeaways and then you want to go first? 575 00:29:11,160 --> 00:29:14,160 Speaker 1: Or should I go ahead? It was always nice. Barrow 576 00:29:14,200 --> 00:29:16,280 Speaker 1: was always there. Bar usually handles this part of the show. 577 00:29:16,680 --> 00:29:20,600 Speaker 1: Takeaway number one what we say all along that these 578 00:29:20,640 --> 00:29:22,840 Speaker 1: teams can no longer exist in a vacuum. If you're 579 00:29:22,840 --> 00:29:25,280 Speaker 1: an owner looking to buy a sports team and just 580 00:29:25,480 --> 00:29:28,800 Speaker 1: have a sports team, it ain't gonna work these days. 581 00:29:29,120 --> 00:29:31,120 Speaker 1: As we see from Derek and to do in Atlanta, 582 00:29:31,360 --> 00:29:34,920 Speaker 1: it's media, yes, but mostly it's real estate. They have 583 00:29:35,000 --> 00:29:37,800 Speaker 1: that mixed use development. It's part of the reason why 584 00:29:37,880 --> 00:29:40,360 Speaker 1: they get great bond rating, why they were able to 585 00:29:40,400 --> 00:29:42,320 Speaker 1: borrow the money, because they were pledging to do this 586 00:29:42,360 --> 00:29:45,640 Speaker 1: other thing. You just can't have a team these days. Yeah, 587 00:29:45,640 --> 00:29:47,840 Speaker 1: And and Atlanta is a perfect place to look at 588 00:29:47,840 --> 00:29:49,960 Speaker 1: that because you know, it's not just the Braves and 589 00:29:50,000 --> 00:29:53,200 Speaker 1: Cob County. Uh. The Atlanta Falcons. We talked with Arthur 590 00:29:53,240 --> 00:29:55,160 Speaker 1: Blank a couple of weeks ago. You know, they have 591 00:29:55,240 --> 00:29:57,440 Speaker 1: a brand new stadium that incorporates a lot of this 592 00:29:57,520 --> 00:30:00,960 Speaker 1: mixed use stuff. Uh. The Atlanta Hawks and Arena downtown 593 00:30:01,000 --> 00:30:04,600 Speaker 1: State Farm Arena also incorporating some of this. Uh. This 594 00:30:04,680 --> 00:30:07,160 Speaker 1: is the new This is the new world, and Atlanta 595 00:30:07,200 --> 00:30:09,400 Speaker 1: seems to be kind of ground zero for for the 596 00:30:09,400 --> 00:30:11,600 Speaker 1: new future stadium. And it's fun when you see who 597 00:30:11,600 --> 00:30:13,840 Speaker 1: they take on as limited partnerships on these teams. If 598 00:30:13,840 --> 00:30:16,200 Speaker 1: if they bring investors, everybody can. Of course you can 599 00:30:16,200 --> 00:30:18,920 Speaker 1: write a check. Now, it's all about what strategic advantage 600 00:30:18,920 --> 00:30:20,640 Speaker 1: do you bring us? Are you an expert in real estate? 601 00:30:20,640 --> 00:30:22,480 Speaker 1: Are you an expert in media? Are you in finance? 602 00:30:22,600 --> 00:30:24,720 Speaker 1: You're better bring something else to the table than just cash. 603 00:30:27,840 --> 00:30:29,800 Speaker 1: It feels better to be a number one than number five. 604 00:30:29,800 --> 00:30:31,440 Speaker 1: I'll wear a number because of Mike. We have a 605 00:30:31,520 --> 00:30:33,320 Speaker 1: chance to go for three in a row, good numbers 606 00:30:33,320 --> 00:30:35,480 Speaker 1: at a good time. When I first started wearing the number, 607 00:30:35,560 --> 00:30:39,080 Speaker 1: how would just have the Bloomberg business of sports? The 608 00:30:39,200 --> 00:30:42,840 Speaker 1: number of the week. All right, I've been time now 609 00:30:43,040 --> 00:30:46,280 Speaker 1: for the number of the week, and in full transparency 610 00:30:46,320 --> 00:30:48,560 Speaker 1: to our audience, this is one we did discuss ahead 611 00:30:48,560 --> 00:30:54,920 Speaker 1: of time. One billion, No, pinky up, one billion is 612 00:30:54,960 --> 00:30:57,600 Speaker 1: this week's number? You tell them what it is. FC 613 00:30:57,760 --> 00:31:04,960 Speaker 1: Barcelona becomes data. Chime in on that beautiful, beautiful did it? 614 00:31:05,200 --> 00:31:07,800 Speaker 1: He did it wonderfully? I love it. Thank you. Now 615 00:31:07,840 --> 00:31:09,400 Speaker 1: give me give me another word, give me a little, 616 00:31:10,600 --> 00:31:13,320 Speaker 1: a little Catalan where you can give me where you 617 00:31:13,360 --> 00:31:16,680 Speaker 1: can give me a give me a word, nothing, I'm 618 00:31:16,680 --> 00:31:28,080 Speaker 1: not asking you MESSI. Yes, they make it. Barcelona says 619 00:31:28,120 --> 00:31:31,640 Speaker 1: they are the first global sports brand to hit one 620 00:31:31,680 --> 00:31:34,440 Speaker 1: billion dollars sports team to hit one billion dollars in 621 00:31:34,520 --> 00:31:38,440 Speaker 1: annual revenue. A nice testament and a reminder just how 622 00:31:38,480 --> 00:31:43,000 Speaker 1: big the business is for you know, these big, big 623 00:31:43,680 --> 00:31:46,600 Speaker 1: tier one global soccer brands. Yeah, and you have to 624 00:31:46,760 --> 00:31:50,320 Speaker 1: think about Man United, the Yankees, the Cowboys, that's the 625 00:31:50,400 --> 00:31:54,800 Speaker 1: company they keep not surprised at soccer, not not at all. Yeah, 626 00:31:54,800 --> 00:31:57,600 Speaker 1: but then the Yankees they're not close, right, What are 627 00:31:57,600 --> 00:32:00,000 Speaker 1: the Yankees? Maybe seven million, six hundred millions, something in 628 00:32:00,040 --> 00:32:01,920 Speaker 1: that in that range. You know, they're not even close 629 00:32:02,000 --> 00:32:05,120 Speaker 1: to one billion. I'm always amazed though with this. I 630 00:32:05,160 --> 00:32:09,520 Speaker 1: wonder moving forward, is it enough just to win or 631 00:32:10,120 --> 00:32:12,560 Speaker 1: do And I'm in this camp, do you need to 632 00:32:12,600 --> 00:32:18,440 Speaker 1: win with stars on your roster? Do you need leonel MESSI? 633 00:32:18,720 --> 00:32:22,560 Speaker 1: Do you need and do you need the stars of 634 00:32:22,600 --> 00:32:26,560 Speaker 1: the game to win? Or is winning itself enough? All 635 00:32:26,560 --> 00:32:29,760 Speaker 1: those things are inextricably linked, right, I Mean if you don't, 636 00:32:29,800 --> 00:32:33,280 Speaker 1: if you don't have any est mess you're probably not winning. 637 00:32:33,520 --> 00:32:36,320 Speaker 1: Their NFL teams they're NFL teams that don't have the 638 00:32:36,320 --> 00:32:40,239 Speaker 1: biggest names that will win, but they're also there are 639 00:32:40,240 --> 00:32:44,320 Speaker 1: basketball teams that also win without the mega stars, but 640 00:32:45,720 --> 00:32:49,160 Speaker 1: just having those mega stars drives the value. And for 641 00:32:49,160 --> 00:32:51,720 Speaker 1: those who are curious, on that one billion dollars in revenue, 642 00:32:51,720 --> 00:32:53,760 Speaker 1: there was a net profit of about twenty three million, 643 00:32:54,200 --> 00:32:56,080 Speaker 1: which you know is not It's not a huge number 644 00:32:56,160 --> 00:32:58,480 Speaker 1: if you compare it to big companies like on the 645 00:32:58,560 --> 00:33:02,080 Speaker 1: right side of or Bowl, but yes, very still profitable 646 00:33:02,080 --> 00:33:04,960 Speaker 1: at a huge revenue number. You've been listening to Bloomberg 647 00:33:04,960 --> 00:33:07,280 Speaker 1: Business of Sports. We are here each and every week 648 00:33:07,280 --> 00:33:10,080 Speaker 1: at the same time, plus online as a podcast wherever 649 00:33:10,120 --> 00:33:13,400 Speaker 1: they're available. You can catch us Mondays, Wednesdays and Thursdays. 650 00:33:13,600 --> 00:33:16,479 Speaker 1: I'm Scott Sashnik on Twitter at Sashnik, and I've been 651 00:33:16,560 --> 00:33:19,920 Speaker 1: Novie Williams at NOVI Underscore Williams. Thanks for joining us. 652 00:33:19,920 --> 00:33:22,120 Speaker 1: Please tune in next week when Scott and Michael speak 653 00:33:22,160 --> 00:33:25,880 Speaker 1: with Indiecar champions Scott Dixon. You're listening to Bloomberg Business 654 00:33:25,880 --> 00:33:28,840 Speaker 1: of Sports from Bloomberg Radio around the world and wherever 655 00:33:28,920 --> 00:33:30,200 Speaker 1: podcasts are available.