1 00:00:00,600 --> 00:00:04,359 Speaker 1: Hello, Welcome to the Bloomberg Business of Sports podcast blow 2 00:00:04,440 --> 00:00:06,560 Speaker 1: some of the big money issues in the world of sports. 3 00:00:06,840 --> 00:00:10,920 Speaker 1: Michael Barne, I'm Scarlett and Damien Sassur oh my and 4 00:00:11,119 --> 00:00:15,680 Speaker 1: another big wig in sports with Galato those sports partners. 5 00:00:16,000 --> 00:00:21,479 Speaker 1: Also he is Business of Sports professor at Columbia Business School. 6 00:00:21,920 --> 00:00:26,720 Speaker 1: Sal Galatyo too, Welcome to the Bloomberg Business of Sports. Yeah, thanks, Michael. 7 00:00:26,760 --> 00:00:31,840 Speaker 1: I that's a great build up. But I'm actually nobody 8 00:00:32,479 --> 00:00:35,200 Speaker 1: we left so much on the practice field. You guys 9 00:00:35,200 --> 00:00:37,280 Speaker 1: should have heard the stuff that we're gonna talk about, 10 00:00:37,320 --> 00:00:39,559 Speaker 1: all the stuff that we were off the air on 11 00:00:39,680 --> 00:00:41,479 Speaker 1: We we got to talk about some of this stuff. 12 00:00:41,880 --> 00:00:46,160 Speaker 1: But first, uh, welcome back because you were on the show, 13 00:00:46,760 --> 00:00:50,199 Speaker 1: uh several years ago. Yes, I was. And by the way, 14 00:00:50,240 --> 00:00:53,640 Speaker 1: you have the greatest voice I've ever heard radio it 15 00:00:53,800 --> 00:00:56,040 Speaker 1: is and a face for radio too. You can see 16 00:00:56,120 --> 00:01:02,600 Speaker 1: you kid. There are a lot of teams out there 17 00:01:02,640 --> 00:01:06,640 Speaker 1: for sale, and the future is I don't know what's 18 00:01:06,640 --> 00:01:08,319 Speaker 1: gonna happen to the future some of these. I think 19 00:01:08,319 --> 00:01:11,760 Speaker 1: the latest one is the news about the Phoenix Suns 20 00:01:12,160 --> 00:01:15,360 Speaker 1: and the and the Mercury. Tell us about that and 21 00:01:15,440 --> 00:01:18,920 Speaker 1: what's going on because man matt ishbia is is this 22 00:01:19,000 --> 00:01:21,840 Speaker 1: is looking good? Look, I have never seen more demand 23 00:01:21,959 --> 00:01:25,640 Speaker 1: for professional sports franchises than I've seen now. It's me 24 00:01:25,800 --> 00:01:27,399 Speaker 1: and I've been doing this for thirty years, so it's 25 00:01:27,400 --> 00:01:31,360 Speaker 1: not like I just started. Okay, why, okay, all right, 26 00:01:32,080 --> 00:01:35,840 Speaker 1: think about this. When I started in this business thirty 27 00:01:35,880 --> 00:01:38,600 Speaker 1: years ago, my first client was the San Antonio Spurs. 28 00:01:38,840 --> 00:01:41,120 Speaker 1: They were playing in the Alamo Dome. They had the 29 00:01:41,160 --> 00:01:46,200 Speaker 1: big curtain that went across the Yeah, all right, you 30 00:01:46,240 --> 00:01:49,840 Speaker 1: could have bought the San Antonio Spurs for eighty million dollars, 31 00:01:49,920 --> 00:01:52,960 Speaker 1: no joke, okay, eighty million dollars. What is that with 32 00:01:53,040 --> 00:01:56,200 Speaker 1: the sixth man's contracts? Maybe not maybe not even the 33 00:01:56,240 --> 00:02:00,280 Speaker 1: sixth man? Okay, but why have values gone up? Right? 34 00:02:00,400 --> 00:02:02,400 Speaker 1: It's not like you have a whole bunch of dope 35 00:02:02,400 --> 00:02:05,440 Speaker 1: people have decided gm just start over paying for this stuff. 36 00:02:06,040 --> 00:02:10,040 Speaker 1: There were a bunch of reasons, okay. So look, one 37 00:02:10,320 --> 00:02:13,720 Speaker 1: and the most important is media content value. Right. You 38 00:02:13,760 --> 00:02:16,240 Speaker 1: guys know that you're in the media, all right, There's 39 00:02:16,280 --> 00:02:20,000 Speaker 1: no content like this. As technology continues to improve and 40 00:02:20,040 --> 00:02:23,600 Speaker 1: people can record their favorite shows and edit out the commercials, 41 00:02:24,000 --> 00:02:27,040 Speaker 1: there's no content like this. Ni or Cent of people 42 00:02:27,080 --> 00:02:30,200 Speaker 1: that watched sports watch it live. I mean, if your 43 00:02:30,240 --> 00:02:33,480 Speaker 1: favorite team has already played, you're not recording it unless 44 00:02:33,480 --> 00:02:36,160 Speaker 1: you got off a plane from Tokyo or something and 45 00:02:36,240 --> 00:02:39,280 Speaker 1: watching it. You're watching it live. What are the content? 46 00:02:39,360 --> 00:02:41,600 Speaker 1: Can you say that about? So that's the first thing. 47 00:02:42,040 --> 00:02:48,800 Speaker 1: The second thing is, this is an unbelievable alternative asset class. Unbelievable. 48 00:02:48,919 --> 00:02:52,960 Speaker 1: It is so resistant to recession. Okay, and I'll give 49 00:02:53,000 --> 00:02:55,960 Speaker 1: you an example, okay, because I'm good at giving example. 50 00:02:59,240 --> 00:03:02,280 Speaker 1: Three weeks for Bear Sterns blew up. I was gonna 51 00:03:02,280 --> 00:03:04,840 Speaker 1: say went bankrupt, but somebody out there is gonna say 52 00:03:04,840 --> 00:03:07,240 Speaker 1: they never really went bankrupt. Okay, yeah they did, but 53 00:03:07,320 --> 00:03:10,679 Speaker 1: the government saved them. Very weeks I got hired by 54 00:03:10,720 --> 00:03:15,120 Speaker 1: the Ricketts family to represent them to buy the cups. Okay, well, 55 00:03:15,160 --> 00:03:19,720 Speaker 1: so keep going. During the process, the world banking system collapsed. 56 00:03:19,880 --> 00:03:24,240 Speaker 1: Lehman Brothers went bankrupt. A I g should have gone bankrupt. Uh. 57 00:03:24,360 --> 00:03:28,359 Speaker 1: The Tribune companies, which owned the freaking cops went bankrupt. 58 00:03:28,880 --> 00:03:32,760 Speaker 1: They had thirteen and a half billion billion dollars of liabilities. 59 00:03:32,760 --> 00:03:35,400 Speaker 1: So we had to take the cubs through a bankruptcy sale, 60 00:03:35,720 --> 00:03:40,480 Speaker 1: taking three years, right, three or four years. Yeah, took 61 00:03:40,520 --> 00:03:43,000 Speaker 1: three years from the day they signed they signed me 62 00:03:43,080 --> 00:03:45,680 Speaker 1: up to their day we closed. Wait, we still wound 63 00:03:45,720 --> 00:03:49,880 Speaker 1: up paying eight hundred million dollars, which at that time 64 00:03:50,240 --> 00:03:53,160 Speaker 1: was the highest price ever paid for a baseball team 65 00:03:53,320 --> 00:03:56,200 Speaker 1: in the worst recession I've ever seen. Now, you could 66 00:03:56,200 --> 00:03:59,520 Speaker 1: say it's the coups. Okay, there were seven control sales 67 00:04:00,000 --> 00:04:03,640 Speaker 1: Evan during the Great Recession. This is the auction when 68 00:04:03,720 --> 00:04:06,240 Speaker 1: majorly deseball didn't want you to do the auction, right, No, No, 69 00:04:06,280 --> 00:04:11,040 Speaker 1: that's the Texas range. Okay, so wait, so wait, seven sales, 70 00:04:11,560 --> 00:04:14,880 Speaker 1: Six of them set record prices. The only one that 71 00:04:14,960 --> 00:04:17,640 Speaker 1: didn't was the Pittsburgh Steelers sale. And that's because one 72 00:04:17,680 --> 00:04:20,080 Speaker 1: of the brothers bought in the other brothers at a 73 00:04:20,120 --> 00:04:22,880 Speaker 1: below market price. Because in that auction, I had a 74 00:04:22,880 --> 00:04:27,120 Speaker 1: bidder all cash, all cash, that would have made it 75 00:04:27,160 --> 00:04:29,120 Speaker 1: the highest price of it paid for an NFL team. 76 00:04:29,400 --> 00:04:31,440 Speaker 1: What other asset class can you say that about in 77 00:04:31,480 --> 00:04:35,080 Speaker 1: the Great in the Great Recession? Right? None? Okay, so 78 00:04:35,120 --> 00:04:39,000 Speaker 1: you got that. Okay, you have scarcity value. Now, I'm 79 00:04:39,040 --> 00:04:41,440 Speaker 1: not that bright, so I don't remember a lot from 80 00:04:41,480 --> 00:04:45,000 Speaker 1: my economics classes, but I remember this. They don't make 81 00:04:45,000 --> 00:04:47,720 Speaker 1: any more of these things. I mean once once every 82 00:04:47,720 --> 00:04:50,280 Speaker 1: twenty years, thirty years, they have an expansion. But basically 83 00:04:50,920 --> 00:04:54,760 Speaker 1: supply is fixed. If supply is fixed and demand goes up, 84 00:04:55,040 --> 00:04:57,920 Speaker 1: price goes up. That's the only thing I remember from economics. 85 00:04:57,960 --> 00:05:01,120 Speaker 1: The rest of the time I schoozed through it. Okay, 86 00:05:01,279 --> 00:05:04,160 Speaker 1: so that's what's happening here. The last thing that you 87 00:05:04,240 --> 00:05:09,600 Speaker 1: can't quantify, nobody can quantify is if you're a bazillionaire, 88 00:05:10,480 --> 00:05:14,960 Speaker 1: you get tremendous ego gratification value. I can build you 89 00:05:15,000 --> 00:05:17,640 Speaker 1: a financial model to show you what a team is worth, 90 00:05:18,120 --> 00:05:21,640 Speaker 1: except that it will self for higher because that ego 91 00:05:21,720 --> 00:05:25,600 Speaker 1: gratification number is impossible to quantify. If you have sixty 92 00:05:25,600 --> 00:05:28,720 Speaker 1: billion dollars and you're seventy years old, I don't know. 93 00:05:29,080 --> 00:05:31,560 Speaker 1: Your favorite team comes on the market, you're not going 94 00:05:31,600 --> 00:05:35,360 Speaker 1: to be outbid, and so the price gets driven up. 95 00:05:36,080 --> 00:05:39,480 Speaker 1: It is Look, this is a very simple business. If 96 00:05:39,480 --> 00:05:43,120 Speaker 1: it was complicated, I couldn't do it. I'm not that smart. Okay, 97 00:05:43,240 --> 00:05:45,440 Speaker 1: let's be honest. I mean, and you can talk to 98 00:05:45,440 --> 00:05:47,520 Speaker 1: a lot of people, you know. I once said that 99 00:05:47,600 --> 00:05:51,560 Speaker 1: I always hire people smarter than me, and somebody else said, well, 100 00:05:51,600 --> 00:05:56,080 Speaker 1: in your case, it would be impossible not to one 101 00:05:56,080 --> 00:05:59,560 Speaker 1: of my competitors. Now, and now, I keep that line 102 00:05:59,560 --> 00:06:02,320 Speaker 1: because I love it. But but I'm not just about 103 00:06:02,400 --> 00:06:04,560 Speaker 1: It's not just about buying and selling franchises. Right, You've 104 00:06:04,560 --> 00:06:06,520 Speaker 1: had experience, you know. I think you did a creditficilee 105 00:06:06,600 --> 00:06:09,080 Speaker 1: for the Yankees. Some of these kind of more structured deals, 106 00:06:09,200 --> 00:06:11,080 Speaker 1: especially some of these kind of banking deals, you need 107 00:06:11,160 --> 00:06:14,320 Speaker 1: to back it by something, right, something tangible. But I 108 00:06:14,480 --> 00:06:17,599 Speaker 1: know what the thing is worth. If I'm lending money 109 00:06:17,600 --> 00:06:20,840 Speaker 1: to Team Max and I land what I think is 110 00:06:20,920 --> 00:06:23,720 Speaker 1: fifty cents on the dollar against that asset, I am 111 00:06:23,760 --> 00:06:27,320 Speaker 1: well protected. I know the value that asset. Now, sometimes 112 00:06:27,360 --> 00:06:31,760 Speaker 1: things get screwed up and you make a mistake, okay, 113 00:06:31,800 --> 00:06:34,480 Speaker 1: but you try to rectify that mistake. Now, there are 114 00:06:34,600 --> 00:06:38,359 Speaker 1: very few bankruptcies in major league sports. Look at the 115 00:06:38,440 --> 00:06:41,760 Speaker 1: worst scenario for sports was COVID. Right, you couldn't get 116 00:06:41,760 --> 00:06:44,320 Speaker 1: any people to go. I mean, you lost the whole thing, 117 00:06:44,480 --> 00:06:47,560 Speaker 1: revenue stream. It was a mess. You couldn't even play. 118 00:06:47,640 --> 00:06:50,760 Speaker 1: And yet how many teams went bankrupt during that period. None? 119 00:06:51,160 --> 00:06:53,719 Speaker 1: And what happened during that period The Mets sold for 120 00:06:53,800 --> 00:06:57,320 Speaker 1: the highest price ever for a major League baseball team 121 00:06:57,440 --> 00:07:01,600 Speaker 1: so this is a very resilient asset class, and it's special, 122 00:07:01,760 --> 00:07:04,240 Speaker 1: it's different. So if if you can, I'm sorry, just 123 00:07:04,279 --> 00:07:05,720 Speaker 1: if you if you got to, if you look at 124 00:07:05,720 --> 00:07:08,760 Speaker 1: a capital stack for a major NFL franchise or majorly 125 00:07:08,800 --> 00:07:10,120 Speaker 1: but whatever it is, I'm sure it's different as you 126 00:07:10,160 --> 00:07:12,720 Speaker 1: go through the Big three. But would you say the 127 00:07:12,760 --> 00:07:16,720 Speaker 1: percentage of you know, tangibles versus non tangibles. What do 128 00:07:16,720 --> 00:07:19,520 Speaker 1: you see that you talk about? You know that trophy factor, 129 00:07:19,600 --> 00:07:21,560 Speaker 1: you know that risk premium that's edit over and above 130 00:07:21,600 --> 00:07:23,520 Speaker 1: the asset the liquidation. But call it what you will 131 00:07:23,560 --> 00:07:25,280 Speaker 1: for the franchise. You know, we've talked about stadium in 132 00:07:25,320 --> 00:07:27,080 Speaker 1: real estate. We can talk about data and content all 133 00:07:27,080 --> 00:07:30,520 Speaker 1: we want media rights. But my question is what percentage 134 00:07:30,520 --> 00:07:33,640 Speaker 1: of that four billion dollars or five billion dollar purchase 135 00:07:33,720 --> 00:07:36,320 Speaker 1: price is ego gratification? I mean, what would you do? 136 00:07:36,480 --> 00:07:41,600 Speaker 1: It's it's probably the last fifteen or think about think 137 00:07:41,640 --> 00:07:45,200 Speaker 1: about this. My golden Retriever could run an NFL franchise 138 00:07:45,200 --> 00:07:51,040 Speaker 1: and make my goal retriever died for you. Okay, it 139 00:07:51,160 --> 00:07:54,320 Speaker 1: is almost impossible to lose money in the NFL. You 140 00:07:54,440 --> 00:07:57,720 Speaker 1: got a hard cat, right, you have all the leverage 141 00:07:57,720 --> 00:07:59,960 Speaker 1: in the world over the players because they have limit 142 00:08:00,040 --> 00:08:05,400 Speaker 1: it playing right, you get perfect revenue sharing. Everybody gets 143 00:08:05,400 --> 00:08:08,200 Speaker 1: the same amount from the National whether we're in Buffalo 144 00:08:08,360 --> 00:08:12,480 Speaker 1: or in Dallas, you get The only difference is is 145 00:08:12,480 --> 00:08:15,080 Speaker 1: the is what you can generate from your venue from 146 00:08:15,080 --> 00:08:17,200 Speaker 1: your building. So in Dallas you can have a million 147 00:08:17,280 --> 00:08:21,280 Speaker 1: luxury suites. In Buffalo you can, okay, but everybody will 148 00:08:21,280 --> 00:08:24,560 Speaker 1: make money just from the national media contract. It is 149 00:08:24,600 --> 00:08:28,240 Speaker 1: a perfect business model for the owner. It's I guess 150 00:08:28,240 --> 00:08:33,600 Speaker 1: you would call it socialism for billionaires. And that's what 151 00:08:33,640 --> 00:08:36,840 Speaker 1: a lot of the soccer team owners are thinking, the 152 00:08:36,840 --> 00:08:38,800 Speaker 1: ones in Europe who wanted to create their own super 153 00:08:38,880 --> 00:08:42,200 Speaker 1: league because they their business model is different. So I 154 00:08:42,280 --> 00:08:45,800 Speaker 1: want to the way you describe everything is so accessible. 155 00:08:46,120 --> 00:08:48,760 Speaker 1: Don Kissy are superstar producer who booked you was a 156 00:08:48,760 --> 00:08:53,840 Speaker 1: student of yours at Columbia Business School. Um, she and 157 00:08:53,840 --> 00:08:56,120 Speaker 1: I are women. We are not from the sports world, 158 00:08:56,120 --> 00:08:58,160 Speaker 1: but we're intrigued by it. If we wanted to get 159 00:08:58,200 --> 00:09:00,920 Speaker 1: in on this business. How it sounds like it's a 160 00:09:01,040 --> 00:09:03,520 Speaker 1: it's an old boys club, and you know, I think 161 00:09:03,559 --> 00:09:05,520 Speaker 1: every day that when we talk about this, it feels 162 00:09:05,600 --> 00:09:07,240 Speaker 1: very much like it. And you're you're you're looking at 163 00:09:07,280 --> 00:09:11,640 Speaker 1: me like, yep, I'm telling you that the world has changed. Um, 164 00:09:11,880 --> 00:09:13,560 Speaker 1: how would we get in? How would we be part 165 00:09:13,559 --> 00:09:15,720 Speaker 1: of this? First of all, you gotta have a kazillion 166 00:09:15,800 --> 00:09:19,240 Speaker 1: dollar Okay, let's be honest. Nobody's getting in on this 167 00:09:19,440 --> 00:09:23,200 Speaker 1: if they don't, all right, because asset values is so high. 168 00:09:23,240 --> 00:09:27,440 Speaker 1: But we're selling a franchise right now, hockey franchise where 169 00:09:27,480 --> 00:09:31,199 Speaker 1: there's an old women's group that's looking at it. Um. 170 00:09:31,360 --> 00:09:35,200 Speaker 1: We were getting bids and interest from all over the world. 171 00:09:35,520 --> 00:09:38,160 Speaker 1: We had a baseball team on the market where I 172 00:09:38,200 --> 00:09:42,640 Speaker 1: had a very very serious Asian bidder, um, very serious 173 00:09:42,800 --> 00:09:45,560 Speaker 1: who had a ton of money. But that goes without saying, right, 174 00:09:47,000 --> 00:09:51,040 Speaker 1: the beauty of this business is the leagues want diversity. 175 00:09:51,120 --> 00:09:54,520 Speaker 1: They want minority owners, they want women owners, they want 176 00:09:54,800 --> 00:09:58,600 Speaker 1: But the problem is that the capitalist structure is such 177 00:09:58,679 --> 00:10:02,960 Speaker 1: that certain p control the wealth. But that's changing, and 178 00:10:03,000 --> 00:10:05,240 Speaker 1: if you look at the wealth tables around the world, 179 00:10:05,720 --> 00:10:08,720 Speaker 1: a lot more billionaires are being created outside North America 180 00:10:08,960 --> 00:10:12,480 Speaker 1: than inside North America. And when that happens, I went 181 00:10:12,520 --> 00:10:17,160 Speaker 1: to a conference. I met a guy from Africa and 182 00:10:17,440 --> 00:10:20,520 Speaker 1: at some conference in Washington, d C. A few weeks 183 00:10:20,559 --> 00:10:23,680 Speaker 1: ago was interested in potentially buying an NBA team. You 184 00:10:23,720 --> 00:10:26,240 Speaker 1: know what, he goes into my database. You don't think 185 00:10:26,240 --> 00:10:29,440 Speaker 1: the NBA would love to have your database. Well, it's 186 00:10:29,480 --> 00:10:32,400 Speaker 1: thirty years old, so it's pretty big. Has it gotten 187 00:10:32,559 --> 00:10:35,199 Speaker 1: hasn't multiplied just in the last ten years? I mean, 188 00:10:35,240 --> 00:10:38,440 Speaker 1: what's the growth rate of that database. I spend tons 189 00:10:38,440 --> 00:10:43,359 Speaker 1: of time getting to know people, meeting people. My business 190 00:10:44,080 --> 00:10:46,720 Speaker 1: is as much you know who business as you know 191 00:10:46,800 --> 00:10:50,200 Speaker 1: how business people have to trust you. People have to 192 00:10:50,240 --> 00:10:54,120 Speaker 1: believe in you if they don't. Look, it's not a 193 00:10:54,120 --> 00:10:59,240 Speaker 1: complicated business model here. I mean your expenses of the players, right, 194 00:10:59,720 --> 00:11:05,640 Speaker 1: and yours cash streams are what media attendance, march, yeah, merch, 195 00:11:06,080 --> 00:11:09,000 Speaker 1: I mean selling hot dogs. It's not that complicated. Like 196 00:11:09,040 --> 00:11:11,520 Speaker 1: I said, I mean even I can do it. So 197 00:11:11,600 --> 00:11:13,200 Speaker 1: I have to ask this. I have to just jump 198 00:11:13,200 --> 00:11:15,360 Speaker 1: in here. You talk about the international money. You're asking 199 00:11:15,360 --> 00:11:17,679 Speaker 1: about the list of clients, and so we all know 200 00:11:17,760 --> 00:11:19,360 Speaker 1: what's going on in E p L right now. We 201 00:11:19,360 --> 00:11:21,840 Speaker 1: know about the Qataris, the consortiums out of Saudi Arabia, 202 00:11:21,920 --> 00:11:24,000 Speaker 1: we know all this. I have to ask this question. 203 00:11:24,000 --> 00:11:26,600 Speaker 1: You've been structuring these deals your whole time. What type 204 00:11:26,640 --> 00:11:31,040 Speaker 1: of disclosure do the leagues require from owners who are 205 00:11:31,040 --> 00:11:35,679 Speaker 1: bidding on these franchises? And when I say disclosure, financial disclosure, 206 00:11:35,679 --> 00:11:37,880 Speaker 1: how much wealth do you have? Because the ambiguity, I mean, 207 00:11:37,880 --> 00:11:39,760 Speaker 1: we see this every day in my business. You know, 208 00:11:39,800 --> 00:11:42,160 Speaker 1: I cover emerging markets here from Bloomberg. You know, how 209 00:11:42,200 --> 00:11:44,360 Speaker 1: do you know that they are what they say they are, 210 00:11:44,400 --> 00:11:46,360 Speaker 1: that they have what they say they have, especially when 211 00:11:46,360 --> 00:11:48,199 Speaker 1: they're not domiciled here in the U S. And then 212 00:11:48,200 --> 00:11:51,400 Speaker 1: my second question is do we see when these ownership 213 00:11:51,400 --> 00:11:53,400 Speaker 1: groups are formed and they actually do take ownership of 214 00:11:53,440 --> 00:11:56,120 Speaker 1: the teams From a tax perspective, and I'm sure you 215 00:11:56,160 --> 00:11:58,880 Speaker 1: deal with tax all the time. Are they like Delaware 216 00:11:59,000 --> 00:12:01,959 Speaker 1: llc s? Are they some sure came in Like I'm 217 00:12:01,960 --> 00:12:04,880 Speaker 1: just I'm just curious what the league expects and it 218 00:12:04,920 --> 00:12:07,959 Speaker 1: is entitled to in North America, the league's do an 219 00:12:07,960 --> 00:12:12,720 Speaker 1: incredibly thorough job of vetting every applicant. For instance, in 220 00:12:12,720 --> 00:12:15,719 Speaker 1: a baseball process, I can't I can set up a 221 00:12:15,760 --> 00:12:18,679 Speaker 1: data route, you can't get into it until you filled 222 00:12:18,679 --> 00:12:21,480 Speaker 1: out a full Major League Baseball application and have been 223 00:12:21,520 --> 00:12:24,280 Speaker 1: been vetted by the league. Before you're vetted by the league, 224 00:12:24,320 --> 00:12:27,480 Speaker 1: and before I take you to the league. I'm vetting you, 225 00:12:27,920 --> 00:12:32,160 Speaker 1: we're doing a ton of research. Nobody's gonna slip by. Okay. 226 00:12:32,200 --> 00:12:34,600 Speaker 1: The last thing I ever want is for the winning 227 00:12:34,640 --> 00:12:37,280 Speaker 1: bidder to be turned down by base Rent or by 228 00:12:37,400 --> 00:12:41,560 Speaker 1: the NFL, or by the NBA or the NHL. But 229 00:12:41,640 --> 00:12:45,960 Speaker 1: in Europe it's different. It depends on the league. I mean, 230 00:12:46,679 --> 00:12:48,959 Speaker 1: if you want to buy a team in Syria, if 231 00:12:48,960 --> 00:12:52,280 Speaker 1: you're on your way to prison, you might not get approved. 232 00:12:52,320 --> 00:12:54,640 Speaker 1: If you're in prison, you probably won't get a prison. 233 00:12:55,520 --> 00:12:57,960 Speaker 1: They don't ask where the money's coming. They don't ask anything. 234 00:12:58,280 --> 00:13:00,679 Speaker 1: All right. I think we're gonna get Chanathan. So there's 235 00:13:00,679 --> 00:13:04,120 Speaker 1: a there's a big music. There's a big difference depending 236 00:13:04,160 --> 00:13:07,160 Speaker 1: on where you are. But here you would never get by. 237 00:13:07,240 --> 00:13:10,680 Speaker 1: I mean, my worst nightmare is something like that happening. 238 00:13:11,000 --> 00:13:15,360 Speaker 1: That's why I do transactions in Europe. We were financial 239 00:13:15,360 --> 00:13:17,520 Speaker 1: advisors to Red Bird in their acquisition of a c 240 00:13:18,240 --> 00:13:22,080 Speaker 1: last year. But I don't do a lot between promotion 241 00:13:22,120 --> 00:13:25,400 Speaker 1: and relegation, where your risk profile goes through the roof. 242 00:13:25,920 --> 00:13:28,559 Speaker 1: Right here, you could lose every game in the NFL. 243 00:13:28,720 --> 00:13:31,400 Speaker 1: You buy some team, you go one one six team, 244 00:13:31,480 --> 00:13:33,800 Speaker 1: and you're still an NFL team. I know, a team 245 00:13:33,840 --> 00:13:38,480 Speaker 1: that did that a few years from Detroit. So I'm 246 00:13:38,520 --> 00:13:41,400 Speaker 1: not gonna say anything, but you're still an NFL team. 247 00:13:41,640 --> 00:13:43,960 Speaker 1: You still have the value of being an NFL team. 248 00:13:43,960 --> 00:13:45,800 Speaker 1: You can turn you do that. In Europe, you start 249 00:13:45,800 --> 00:13:49,960 Speaker 1: getting relegated, you're going down, down, down, down. You may 250 00:13:50,000 --> 00:13:52,640 Speaker 1: go away in value. So you have to be If 251 00:13:52,640 --> 00:13:55,200 Speaker 1: I were a lender in Europe, which I'm not, boy, 252 00:13:55,240 --> 00:13:58,560 Speaker 1: you better be a lot more careful. That's right now. 253 00:13:58,600 --> 00:14:02,319 Speaker 1: In fact, they hoping that they don't get demoted, and 254 00:14:02,320 --> 00:14:04,400 Speaker 1: and that's why it's like, Okay, we we gotta get 255 00:14:04,440 --> 00:14:06,240 Speaker 1: some money now, and they're trying to build a news 256 00:14:06,440 --> 00:14:08,320 Speaker 1: Think about your focus as an owner, right, I mean, like, 257 00:14:08,360 --> 00:14:09,760 Speaker 1: think about I mean, what we're talking about here in 258 00:14:09,760 --> 00:14:12,640 Speaker 1: the U s As ticket sales and stadium and meteor 259 00:14:12,720 --> 00:14:14,840 Speaker 1: rights and content. How important that is when you're running 260 00:14:14,840 --> 00:14:17,520 Speaker 1: a for profit. But in Europe, you know, they've got 261 00:14:17,559 --> 00:14:19,720 Speaker 1: to spend so much time focused on team performance, right, 262 00:14:19,760 --> 00:14:22,680 Speaker 1: because if you get relegated, you're done, right, You're done. 263 00:14:22,800 --> 00:14:26,360 Speaker 1: You're done. A different business different, completely different business model, 264 00:14:26,440 --> 00:14:30,760 Speaker 1: and no matter how insane the fans are here there, 265 00:14:31,040 --> 00:14:34,600 Speaker 1: multiply that by your hunt. I mean, if you're not winning, 266 00:14:34,880 --> 00:14:37,200 Speaker 1: good luck shown up to the building. It's a religion, 267 00:14:37,280 --> 00:14:40,240 Speaker 1: it's it's it's a religion. Yeah, it's a religion and 268 00:14:40,800 --> 00:14:43,960 Speaker 1: not the best if you're a known or not winning. 269 00:14:44,120 --> 00:14:46,640 Speaker 1: So so again, so from a tax perspective here in 270 00:14:46,680 --> 00:14:48,920 Speaker 1: the US, I mean, are you seeing for example, you know, 271 00:14:48,960 --> 00:14:51,280 Speaker 1: we know, um what's going on in Phoenix, we we 272 00:14:51,320 --> 00:14:53,560 Speaker 1: know what's going on in Washington. I mean, do these 273 00:14:53,600 --> 00:14:56,680 Speaker 1: bidders need to have a US you know, entity that's 274 00:14:56,680 --> 00:14:59,480 Speaker 1: taking ownership must remain domiciled in the U s If 275 00:14:59,520 --> 00:15:01,760 Speaker 1: you're bidding an NFL or an NBA franchise, it has 276 00:15:01,800 --> 00:15:04,360 Speaker 1: to be up to now, yes, and and you know, look, 277 00:15:04,880 --> 00:15:08,680 Speaker 1: every every perspective buyer is a different tax situation. So 278 00:15:08,880 --> 00:15:11,920 Speaker 1: that's their problem, that my problem. They take that into 279 00:15:12,000 --> 00:15:14,920 Speaker 1: account when they're formulating their bid. Right, but the op 280 00:15:15,000 --> 00:15:16,960 Speaker 1: co or the or the ownership co is a US 281 00:15:17,000 --> 00:15:19,880 Speaker 1: based entity, and then however their ownership is structured within that, 282 00:15:19,960 --> 00:15:22,560 Speaker 1: then they can play with the But but in most 283 00:15:22,600 --> 00:15:25,560 Speaker 1: bids you'll see it's an individual that's buying the thing. 284 00:15:25,880 --> 00:15:28,440 Speaker 1: I mean, that's what we focus in on. Is that 285 00:15:28,520 --> 00:15:33,760 Speaker 1: person able to support this team even in really tough times, right, 286 00:15:33,840 --> 00:15:36,960 Speaker 1: because a lot of these teams don't make money, so 287 00:15:37,200 --> 00:15:38,800 Speaker 1: you have to be able to write a check to 288 00:15:38,880 --> 00:15:43,120 Speaker 1: subsidize the team. So when people ask me what sport 289 00:15:43,200 --> 00:15:46,280 Speaker 1: do you like the best with, it depends on the franchise, 290 00:15:46,560 --> 00:15:49,520 Speaker 1: not the sport. NFL team is great, but if I 291 00:15:49,520 --> 00:15:53,360 Speaker 1: could buy the Toronto Maple leafs, oh my god, I mean, 292 00:15:53,360 --> 00:15:55,760 Speaker 1: whence the last time they won the Stanley Cup? I 293 00:15:55,800 --> 00:15:59,800 Speaker 1: mean nineteen seven, I think. Yet every game is sold out, 294 00:16:00,080 --> 00:16:02,600 Speaker 1: have the highest ticket prices in the league, no matter 295 00:16:02,680 --> 00:16:06,360 Speaker 1: what the foreign exchange rate is. It's religion in Canada. 296 00:16:06,720 --> 00:16:11,360 Speaker 1: Hockey is incredible, right, But if you're talking about some 297 00:16:11,400 --> 00:16:14,200 Speaker 1: other sport, you know, the NBA is great, except that 298 00:16:14,240 --> 00:16:17,080 Speaker 1: if you're in a tough market, you had a problem 299 00:16:17,360 --> 00:16:19,760 Speaker 1: the eat And it's the same in baseball. Right. There 300 00:16:19,760 --> 00:16:22,800 Speaker 1: are some great markets, there are some not so great markets. 301 00:16:22,960 --> 00:16:26,040 Speaker 1: The NFL doesn't matter. Good luck with that. Well, that's 302 00:16:26,080 --> 00:16:28,200 Speaker 1: like the old saying. And you ask an owner, it's like, well, 303 00:16:28,200 --> 00:16:30,120 Speaker 1: when do you make money on the team when you 304 00:16:30,160 --> 00:16:33,200 Speaker 1: sell it? Can you make money on exit? You do? 305 00:16:33,480 --> 00:16:38,960 Speaker 1: And in thirty years, thirty years, I have never ever 306 00:16:39,280 --> 00:16:44,160 Speaker 1: represent anybody that lost money on ever, even in the 307 00:16:44,160 --> 00:16:47,080 Speaker 1: most adverse circumstances and the worst franchise you can think of. 308 00:16:47,840 --> 00:16:51,000 Speaker 1: Pick a team, you pick a number, I'll tell you 309 00:16:51,040 --> 00:16:54,480 Speaker 1: I'll get hiring me. I will. I mean, it's it's 310 00:16:54,520 --> 00:16:58,000 Speaker 1: hard work, it's a lot of marketing. It's going into 311 00:16:58,080 --> 00:17:01,400 Speaker 1: my database of fiving out. Seven years ago, some guys 312 00:17:01,440 --> 00:17:04,400 Speaker 1: said to me it was worth the pazillion dollars that 313 00:17:04,880 --> 00:17:07,280 Speaker 1: his favorite team is whatever that team is, and when 314 00:17:07,320 --> 00:17:09,720 Speaker 1: it comes on the market to call like he gets 315 00:17:09,760 --> 00:17:12,440 Speaker 1: one poke at that pig. Because once that team is sold, 316 00:17:12,440 --> 00:17:14,720 Speaker 1: they may not be sold again for twenty or thirty years. 317 00:17:14,840 --> 00:17:16,920 Speaker 1: So you're making a case that for these pro pro 318 00:17:17,040 --> 00:17:21,639 Speaker 1: sports teams, uh fixed supply, they're not. They're not bubble 319 00:17:21,680 --> 00:17:24,440 Speaker 1: assets because there's always going to be value in them. 320 00:17:24,640 --> 00:17:28,080 Speaker 1: So I'm intrigued by the explosion of these other leagues, 321 00:17:28,160 --> 00:17:31,240 Speaker 1: like pickleball, for instance. When you look at how much 322 00:17:31,359 --> 00:17:34,560 Speaker 1: people are spending to invest in a pickleball league or 323 00:17:34,640 --> 00:17:36,520 Speaker 1: team or buy something like that, do you think, oh, 324 00:17:36,600 --> 00:17:38,760 Speaker 1: that's bubble territory or this is a sign of the times, 325 00:17:38,920 --> 00:17:42,840 Speaker 1: or do you see like a real grounding in those valuations, 326 00:17:42,840 --> 00:17:45,440 Speaker 1: a business case for those teams, for those leagues. Do 327 00:17:45,480 --> 00:17:47,520 Speaker 1: you want me to be honest. Please, I don't think 328 00:17:47,520 --> 00:17:54,160 Speaker 1: about pickleball. I don't think about indoor looking him you know, Yeah, 329 00:17:54,200 --> 00:17:58,640 Speaker 1: it's like trading potato. Yeah, it's baseball, football, basketball, hockey, 330 00:17:58,920 --> 00:18:04,120 Speaker 1: European soccer period. I have eight people and they work 331 00:18:04,240 --> 00:18:08,680 Speaker 1: like animals. They do. They they're wonderful, but we work, right. 332 00:18:08,880 --> 00:18:11,200 Speaker 1: You know what My first job was. I shined shoes 333 00:18:11,240 --> 00:18:13,280 Speaker 1: when I was ten years old. You know what shining 334 00:18:13,320 --> 00:18:18,159 Speaker 1: shoes is work. It's hot, it's yicky got What I 335 00:18:18,240 --> 00:18:21,560 Speaker 1: do is not work. I mean it's indoors, it's a 336 00:18:21,680 --> 00:18:25,320 Speaker 1: climate controlled. I deal with billion Everybody I talked to 337 00:18:25,359 --> 00:18:28,240 Speaker 1: almost every day is a billionaire. I mean, well you 338 00:18:28,280 --> 00:18:30,280 Speaker 1: think you think of some of these billionaires and what 339 00:18:30,359 --> 00:18:32,600 Speaker 1: happens is, let's say, haven't forbid? Somebody passes away, and 340 00:18:32,640 --> 00:18:34,280 Speaker 1: then it's the children in the family. I mean, how 341 00:18:34,359 --> 00:18:37,280 Speaker 1: much do you deal with the little spats that go 342 00:18:37,359 --> 00:18:42,480 Speaker 1: on inside? You have to be right? I do, and 343 00:18:42,480 --> 00:18:44,880 Speaker 1: and you know what, that's a divorce. That's the way 344 00:18:45,000 --> 00:18:46,840 Speaker 1: team gets old. Right. But you gotta remember a lot 345 00:18:46,880 --> 00:18:49,640 Speaker 1: of these people. I know their families, right, I've known 346 00:18:49,680 --> 00:18:51,560 Speaker 1: them for many many years. It's not like I meet 347 00:18:51,640 --> 00:18:54,160 Speaker 1: somebody who's gonna sell his team next year. It could 348 00:18:54,200 --> 00:18:56,680 Speaker 1: be ten years, could be twenty years. I mean, macl 349 00:18:58,600 --> 00:19:02,159 Speaker 1: meet the kids, you eat the family, You develop a 350 00:19:02,240 --> 00:19:05,679 Speaker 1: rapport with them, and hopefully when it's time for the 351 00:19:06,040 --> 00:19:08,280 Speaker 1: either they get old enough that they want to sell it, 352 00:19:08,520 --> 00:19:11,280 Speaker 1: or there is state you get a chance to bid 353 00:19:11,280 --> 00:19:14,920 Speaker 1: on the business. Because remember we're a tiny firm, were 354 00:19:14,960 --> 00:19:18,240 Speaker 1: eight people. And you know, our competition are firms that 355 00:19:18,320 --> 00:19:22,560 Speaker 1: have offices all over the world. They have thousands of employees, 356 00:19:22,600 --> 00:19:28,360 Speaker 1: they have a bazillion dollars in capital. But we get 357 00:19:28,440 --> 00:19:32,400 Speaker 1: more than our shared business because people trust us and 358 00:19:32,440 --> 00:19:34,720 Speaker 1: we know we will take care of them. I mean 359 00:19:34,760 --> 00:19:38,080 Speaker 1: that you know everyone and there and their friends. I 360 00:19:38,119 --> 00:19:40,480 Speaker 1: mean it's funny. I mean I will sit there and 361 00:19:40,560 --> 00:19:42,920 Speaker 1: listen to some guy tell me his point guard twisted 362 00:19:43,000 --> 00:19:46,240 Speaker 1: his ankle, and and I'm thinking this guy's were ten 363 00:19:46,280 --> 00:19:49,320 Speaker 1: billion dollars in his point guard twisted his I don't 364 00:19:49,359 --> 00:19:51,760 Speaker 1: talk to him for an hour about it. But don't 365 00:19:51,760 --> 00:19:54,199 Speaker 1: you find that amazing that owners tend to focus so 366 00:19:54,280 --> 00:19:56,680 Speaker 1: much on the team and team performance when they own 367 00:19:56,800 --> 00:20:01,240 Speaker 1: this massive business, all stadium and media content, And yet 368 00:20:01,320 --> 00:20:04,320 Speaker 1: and yet is that really still the owners forget that 369 00:20:04,400 --> 00:20:06,480 Speaker 1: are you referring to Steve. I'm just saying in general, 370 00:20:06,720 --> 00:20:10,880 Speaker 1: forget forget that, and I won't tell you the guy's name. 371 00:20:10,920 --> 00:20:14,720 Speaker 1: But I had a a very good friend client owns 372 00:20:15,040 --> 00:20:20,280 Speaker 1: several teams, probably networth was probably forty billion dollars and 373 00:20:20,359 --> 00:20:22,040 Speaker 1: the only thing you wanted to talk about was his 374 00:20:22,119 --> 00:20:25,159 Speaker 1: sports assets, which were about two percent of what he 375 00:20:26,240 --> 00:20:28,040 Speaker 1: would talk about that for he would call me and 376 00:20:28,080 --> 00:20:29,960 Speaker 1: we talked for an hour and a half. If you 377 00:20:30,000 --> 00:20:32,440 Speaker 1: wanted to talk to about his base business like, he 378 00:20:32,480 --> 00:20:35,440 Speaker 1: wouldn't even talk to you about it because he loves 379 00:20:35,480 --> 00:20:38,920 Speaker 1: the He loved the asset. I mean, it's fun, right, 380 00:20:39,640 --> 00:20:54,680 Speaker 1: microchips aren't fun. We can summarize the post because it's fun. Look, 381 00:20:55,280 --> 00:20:59,280 Speaker 1: I went. I was given a speech at this hoity 382 00:20:59,320 --> 00:21:02,560 Speaker 1: toity ivy League university about sports, and the guy before 383 00:21:02,640 --> 00:21:05,960 Speaker 1: me I was talking about marginal utility and the reason 384 00:21:06,000 --> 00:21:09,800 Speaker 1: people buy things is marginal utility. And I'm sitting there saying, 385 00:21:09,880 --> 00:21:13,200 Speaker 1: shut up, don't raise your hand. You're an idiot. You're 386 00:21:13,200 --> 00:21:16,159 Speaker 1: gonna go on next. This guy's like got more degrees 387 00:21:16,160 --> 00:21:20,520 Speaker 1: in the thermometer, Do not leave him alone. But no, 388 00:21:21,119 --> 00:21:23,439 Speaker 1: I can't do what. I raise my hand, and I'm like, okay, 389 00:21:23,480 --> 00:21:27,320 Speaker 1: margin utility. Let's say every Ferrari export in the United 390 00:21:27,359 --> 00:21:30,520 Speaker 1: States are sold, every single one. Now, let's think about 391 00:21:30,520 --> 00:21:35,040 Speaker 1: the marginal utility. They're reliable. No, they're cheap to maintain. No, 392 00:21:35,400 --> 00:21:39,720 Speaker 1: they're cheap, they're ensure. No they wait a why wait? 393 00:21:40,480 --> 00:21:43,400 Speaker 1: They easy to fix when they break down. No. Why 394 00:21:43,440 --> 00:21:47,400 Speaker 1: do people buy Ferrars because they weren't there? Because they 395 00:21:47,400 --> 00:21:49,879 Speaker 1: get pleasure out of driving the car. It's like, why 396 00:21:49,960 --> 00:21:53,760 Speaker 1: does somebody buy a dollar watch that tells time when 397 00:21:53,760 --> 00:21:55,960 Speaker 1: they can buy a fifty dollar watch that tells time. 398 00:21:56,160 --> 00:21:59,879 Speaker 1: It's not marginal utility. It's because they have enough money 399 00:21:59,880 --> 00:22:03,520 Speaker 1: to buy it. There are all kinds of luxury. And 400 00:22:03,560 --> 00:22:06,520 Speaker 1: of course I destroyed this poor guy's argument. He was 401 00:22:06,560 --> 00:22:11,880 Speaker 1: all mad, but it's true. And this is just look. 402 00:22:12,040 --> 00:22:15,320 Speaker 1: People buy fine art, they buy expensive automobiles, they buy 403 00:22:15,320 --> 00:22:18,440 Speaker 1: incredible realist Okay, I take what you're saying. But sometimes 404 00:22:18,640 --> 00:22:22,480 Speaker 1: it's fun. Sometimes some bidders might just want to own 405 00:22:22,520 --> 00:22:25,200 Speaker 1: a professional sports team, and it's almost like they don't 406 00:22:25,240 --> 00:22:27,679 Speaker 1: care which league gets in or what team it. I 407 00:22:27,720 --> 00:22:30,560 Speaker 1: never found that some people people tell you they have 408 00:22:30,560 --> 00:22:35,400 Speaker 1: a favorite sport. Some people say I won't do whatever. 409 00:22:36,080 --> 00:22:38,720 Speaker 1: Some people like, all I want is an NBA team. 410 00:22:38,760 --> 00:22:40,960 Speaker 1: I've always worked. It doesn't matter what it is, it 411 00:22:41,000 --> 00:22:43,560 Speaker 1: doesn't matter, it doesn't even matter what city it is. 412 00:22:44,280 --> 00:22:47,800 Speaker 1: Some people are very specific if their favorite team comes 413 00:22:47,880 --> 00:22:52,040 Speaker 1: up on the market. That's why I can't. You asked 414 00:22:52,040 --> 00:22:53,960 Speaker 1: me what the New York Yankees are worth. They're my 415 00:22:54,000 --> 00:22:57,359 Speaker 1: biggest client, one of my biggest clients. I have no 416 00:22:57,480 --> 00:22:59,560 Speaker 1: idea because if you had an auction for the New 417 00:22:59,600 --> 00:23:02,000 Speaker 1: York guy, we have people lined up from here to 418 00:23:02,119 --> 00:23:05,040 Speaker 1: the Empire State Building with open checkbooks. Who could write 419 00:23:05,080 --> 00:23:12,560 Speaker 1: a check? I don't know. Somebody will pay a crazy price, yes, 420 00:23:12,720 --> 00:23:17,840 Speaker 1: And that's the key. Something's worth what the market and 421 00:23:17,920 --> 00:23:21,000 Speaker 1: the free auction is willing to pay for it. All 422 00:23:21,440 --> 00:23:23,680 Speaker 1: I love. I love like people ask me, and we 423 00:23:23,800 --> 00:23:26,720 Speaker 1: do a lot of valuation work. We value this value 424 00:23:26,760 --> 00:23:30,920 Speaker 1: that what I say the things worth doesn't matter. It's 425 00:23:30,960 --> 00:23:35,080 Speaker 1: what the market tells you something's worth. And there is 426 00:23:36,160 --> 00:23:39,560 Speaker 1: the great thing about capitalism is it creates billionaires all 427 00:23:39,640 --> 00:23:42,520 Speaker 1: the time all over the world. So you're gonna see 428 00:23:42,880 --> 00:23:46,960 Speaker 1: values of you know, the two biggest international sports of 429 00:23:47,040 --> 00:23:51,840 Speaker 1: soccer and basketball, and as wealth as created in places 430 00:23:51,960 --> 00:23:55,960 Speaker 1: like Africa and more wealth is created in Asia, those 431 00:23:56,040 --> 00:23:59,080 Speaker 1: two sports are going to benefit. They are going to benefit, 432 00:23:59,119 --> 00:24:01,320 Speaker 1: and they're gonna continue you to benefit. But that's not 433 00:24:01,440 --> 00:24:06,960 Speaker 1: to say the other sports won't benefit too, because let's 434 00:24:07,000 --> 00:24:09,280 Speaker 1: just got a lot longer. It's hard for me to 435 00:24:09,480 --> 00:24:13,480 Speaker 1: express the level of interest. I mean, there are people 436 00:24:13,520 --> 00:24:17,800 Speaker 1: in Asia that love baseball. They love baseball, and they're 437 00:24:17,880 --> 00:24:20,800 Speaker 1: billionaires being created in those economies. And if a baseball 438 00:24:20,840 --> 00:24:23,880 Speaker 1: team comes up on the market, especially a West Coast team, 439 00:24:24,520 --> 00:24:26,840 Speaker 1: they're gonna be all over it like ugly on a 440 00:24:27,000 --> 00:24:30,840 Speaker 1: you know, like a Doberman on a personager. They're just 441 00:24:31,000 --> 00:24:35,280 Speaker 1: not gonna stop and they want to win. So so 442 00:24:35,440 --> 00:24:37,439 Speaker 1: talk to me about in some of these being process right, 443 00:24:37,480 --> 00:24:40,479 Speaker 1: you have big banks that involved in me. I may 444 00:24:40,520 --> 00:24:43,480 Speaker 1: be wrong here. I happen to remember you representing with 445 00:24:43,720 --> 00:24:46,359 Speaker 1: Mark Cuban. May have been Mark Cuban and there was 446 00:24:46,440 --> 00:24:49,040 Speaker 1: an auction and was not in JP Morgan's best. Can 447 00:24:49,080 --> 00:24:51,440 Speaker 1: you just like, how do you deal with the situation 448 00:24:51,560 --> 00:24:56,080 Speaker 1: like that? Right? Where? Right? Yeah? Where it's you and 449 00:24:56,200 --> 00:24:58,760 Speaker 1: like you said, your four partners against G. P. Morrigan. 450 00:24:59,000 --> 00:25:01,280 Speaker 1: You know, how do you how does the to happen? Uh? 451 00:25:02,720 --> 00:25:06,320 Speaker 1: You have to be insane like me. Um, you have 452 00:25:06,600 --> 00:25:10,320 Speaker 1: to standard ground. You have to really believe that you 453 00:25:10,440 --> 00:25:13,359 Speaker 1: know the market better than they do. You have to 454 00:25:13,440 --> 00:25:16,280 Speaker 1: believe that you know the asset values better than they do. 455 00:25:17,160 --> 00:25:19,840 Speaker 1: And you know, I hate to say it, but I 456 00:25:19,960 --> 00:25:25,200 Speaker 1: do and they don't. And to them, you know, move 457 00:25:25,280 --> 00:25:28,680 Speaker 1: on to the next deal. Look, if a giant institution 458 00:25:28,880 --> 00:25:32,520 Speaker 1: screws up, so what they move on to the next deal, 459 00:25:32,560 --> 00:25:34,399 Speaker 1: nobody's then they're not going to go out of business. 460 00:25:34,560 --> 00:25:37,400 Speaker 1: I screw up, I'm out of business. I'm done. If 461 00:25:37,440 --> 00:25:40,200 Speaker 1: I tell somebody I can get you this price for 462 00:25:40,359 --> 00:25:43,960 Speaker 1: something and I don't deliver, I'm pretty much done if 463 00:25:44,000 --> 00:25:48,280 Speaker 1: they do it. Okay, next, And you think that all 464 00:25:48,320 --> 00:25:50,119 Speaker 1: these auctions, for all these teams, the way that the 465 00:25:50,200 --> 00:25:53,880 Speaker 1: leads themselves are handling them, it is because he said 466 00:25:53,880 --> 00:25:55,600 Speaker 1: it was socialistic amongst the owners before. So I just 467 00:25:55,680 --> 00:25:59,919 Speaker 1: want to be clear the process itself is is purely capitalistic. 468 00:26:00,000 --> 00:26:01,840 Speaker 1: A will take the highest bid on the table, or 469 00:26:02,320 --> 00:26:05,639 Speaker 1: are there times where they won't. We vet the people 470 00:26:05,720 --> 00:26:08,040 Speaker 1: with the league, so we will never be in a 471 00:26:08,080 --> 00:26:11,200 Speaker 1: position where the high bidder it's not somebody approval. So 472 00:26:11,320 --> 00:26:13,880 Speaker 1: we've got to be I don't I know, like I said, 473 00:26:13,920 --> 00:26:15,320 Speaker 1: I never want to be in a position where the 474 00:26:15,400 --> 00:26:19,480 Speaker 1: high bidder is somebody who has approval issues. That's fair, 475 00:26:19,600 --> 00:26:21,919 Speaker 1: But does the highest bider always win? Or is there 476 00:26:21,920 --> 00:26:24,200 Speaker 1: a case where the league and the other owners would 477 00:26:24,280 --> 00:26:27,800 Speaker 1: prefer a different kind of owner. Um, it's the seller, 478 00:26:28,320 --> 00:26:32,280 Speaker 1: not the league. Okay. The seller may just especially if 479 00:26:32,320 --> 00:26:34,199 Speaker 1: he wants to stay in for the city. Right, if 480 00:26:34,200 --> 00:26:36,239 Speaker 1: you want to stipulate, right like in Ottawa, I think 481 00:26:36,240 --> 00:26:38,919 Speaker 1: they're doing that right. They don't want the team to leave, right. Um. 482 00:26:39,560 --> 00:26:41,480 Speaker 1: If if you want to stay in for a peace, 483 00:26:41,600 --> 00:26:44,200 Speaker 1: you want a good partner or you may have Yeah, 484 00:26:44,320 --> 00:26:45,920 Speaker 1: you may not want team to leave. You want to 485 00:26:45,960 --> 00:26:48,560 Speaker 1: make sure somebody will take care of the asset. You know, 486 00:26:48,760 --> 00:26:52,399 Speaker 1: it's your legacy. It's it's all over the place. But 487 00:26:52,520 --> 00:26:55,119 Speaker 1: the person that determines it, especially if you have no 488 00:26:55,240 --> 00:26:57,080 Speaker 1: limited partners. If you want a hundred percent, you can 489 00:26:57,119 --> 00:26:58,800 Speaker 1: do anything you want. If you have a bunch of 490 00:26:58,880 --> 00:27:00,680 Speaker 1: limited partners and you don't take the high bid, you 491 00:27:00,760 --> 00:27:06,160 Speaker 1: may have a problem. But um, generally, in my experience, 492 00:27:06,600 --> 00:27:09,440 Speaker 1: it's the owner that the terms the league. Look, the 493 00:27:09,480 --> 00:27:11,199 Speaker 1: league wants you to get the highest spid, but they 494 00:27:11,240 --> 00:27:13,440 Speaker 1: also want you to get the best owner. They don't. 495 00:27:13,600 --> 00:27:15,679 Speaker 1: They don't want to have issues after you buy the thing. 496 00:27:16,040 --> 00:27:19,159 Speaker 1: I don't want to have issues. Look, it's important to 497 00:27:19,240 --> 00:27:21,800 Speaker 1: me that the league's view me positively right, because if 498 00:27:21,840 --> 00:27:24,760 Speaker 1: I'm bringing people that are going to be a pain 499 00:27:25,480 --> 00:27:27,440 Speaker 1: into the league's I'm not gonna make a lot of 500 00:27:27,520 --> 00:27:31,359 Speaker 1: friends and influenced people. And so I'm very careful. I 501 00:27:31,480 --> 00:27:33,600 Speaker 1: have to ask about you run up a good point. 502 00:27:33,640 --> 00:27:38,040 Speaker 1: The Buffalo Bills. They're building a new stadium and the 503 00:27:38,160 --> 00:27:43,359 Speaker 1: state is kicking in hundreds of millions of dollars. New 504 00:27:43,440 --> 00:27:48,919 Speaker 1: Yorkers long fanning New York jetpan by the way, I mean, 505 00:27:49,480 --> 00:27:53,480 Speaker 1: you couldn't if you're a Buffalo Bills in management, you 506 00:27:53,520 --> 00:27:58,320 Speaker 1: couldn't go wrong with that deal. No comment. I am 507 00:27:58,440 --> 00:28:01,000 Speaker 1: not as a citizen's in New York. I am not 508 00:28:01,160 --> 00:28:03,000 Speaker 1: going off against you. Stay in New York. You guys 509 00:28:03,040 --> 00:28:06,080 Speaker 1: are out of your mind. That's it. I'm gone. You 510 00:28:06,119 --> 00:28:07,800 Speaker 1: don't even bring up the Governor of New York was 511 00:28:07,840 --> 00:28:13,280 Speaker 1: from I'm talking about this very much for playing right. 512 00:28:13,640 --> 00:28:16,760 Speaker 1: But I do have one last question before you lose 513 00:28:16,800 --> 00:28:18,320 Speaker 1: you right, I mean, and and I just have to say, 514 00:28:18,400 --> 00:28:21,200 Speaker 1: because I'm a new Yorker born and bred, but I 515 00:28:21,280 --> 00:28:23,800 Speaker 1: can't help respect with John Henry's built up in Boston. 516 00:28:23,840 --> 00:28:26,679 Speaker 1: You know what I mean? In Fenway Sports an absolute monster. 517 00:28:27,280 --> 00:28:30,359 Speaker 1: And yet you see, if I'm not mistaken, Fenway Sports 518 00:28:30,480 --> 00:28:32,359 Speaker 1: taken a bit of a step back and some of 519 00:28:32,400 --> 00:28:34,920 Speaker 1: their whole things lately, right, I mean, is that sort 520 00:28:34,960 --> 00:28:37,640 Speaker 1: of I know, you know you're you're talking your book here, 521 00:28:37,680 --> 00:28:39,640 Speaker 1: but to me, you know, just look at an outsider 522 00:28:39,720 --> 00:28:41,480 Speaker 1: looking in. It seems like maybe he said, you know, 523 00:28:41,640 --> 00:28:44,040 Speaker 1: we're getting close to FULIVI like, how many more billions 524 00:28:44,080 --> 00:28:46,360 Speaker 1: can you possibly make in Liverpool? I just I'm trying 525 00:28:46,400 --> 00:28:52,080 Speaker 1: to Or maybe he is selling some assets to redeploy 526 00:28:52,200 --> 00:28:56,720 Speaker 1: that money into other Yeah yeah, yeah that I would. 527 00:28:56,760 --> 00:28:58,880 Speaker 1: I would not be suprised. I'm not going to comment. 528 00:29:01,440 --> 00:29:04,160 Speaker 1: I knew this was gonna happen because okay, we got 529 00:29:04,240 --> 00:29:07,440 Speaker 1: them for a little window here. Can you come back everything, 530 00:29:07,640 --> 00:29:10,880 Speaker 1: Just come on back. I love you guys. This is fun. 531 00:29:11,600 --> 00:29:14,520 Speaker 1: Every month I gotta go back and negotiate with people. 532 00:29:14,680 --> 00:29:17,560 Speaker 1: I'm have a tax call on this. It's better than 533 00:29:17,640 --> 00:29:22,479 Speaker 1: Shining Way. Well yeah, or I used to unload, uh. 534 00:29:22,800 --> 00:29:25,600 Speaker 1: I used to load trucks at the Canada's dry bottling 535 00:29:25,680 --> 00:29:30,080 Speaker 1: plant and mess with queens. That was fun. Yeah, sal 536 00:29:30,200 --> 00:29:35,280 Speaker 1: Galathyoto with Galatyoto Sports Partners also Business of Sports professor 537 00:29:35,400 --> 00:29:39,280 Speaker 1: at Columbia Business School. Thank you so much so it 538 00:29:39,400 --> 00:29:43,680 Speaker 1: was great anytime, guys, and you are always here at 539 00:29:43,800 --> 00:29:47,360 Speaker 1: your home for the Bloomberg Business of Sports. By the way, 540 00:29:47,480 --> 00:29:49,800 Speaker 1: our podcast, and if you download this, I hope you've 541 00:29:49,800 --> 00:29:51,800 Speaker 1: got a lot of room when you download this because 542 00:29:51,800 --> 00:29:54,480 Speaker 1: this is a long one. You can get our show 543 00:29:54,640 --> 00:29:58,880 Speaker 1: every Monday, Wednesday and Thursday. And by the way, download 544 00:29:58,960 --> 00:30:01,600 Speaker 1: that show wherever you get your podcast. I'm Michael Barr. 545 00:30:01,640 --> 00:30:03,920 Speaker 1: You can follow me on Twitter at Big Bar Sports. 546 00:30:04,120 --> 00:30:06,120 Speaker 1: And I'm Scarlett Fu And shout out to Don Kissy 547 00:30:06,200 --> 00:30:10,120 Speaker 1: for booking the wonderful seller. Shout out to Don Kissie Times. 548 00:30:10,360 --> 00:30:13,560 Speaker 1: I'm Damien Sass at Deep Sur. You're listening to Bloomberg 549 00:30:13,640 --> 00:30:16,600 Speaker 1: Business of Sports Bloomberg Radio around the world.