1 00:00:00,400 --> 00:00:03,840 Speaker 1: This is the business of sports. The International Olympic Committee 2 00:00:03,880 --> 00:00:07,320 Speaker 1: for spacing a crisis. Which sport would you point to 3 00:00:07,480 --> 00:00:10,280 Speaker 1: and say put your money here? Where the money is 4 00:00:10,280 --> 00:00:15,160 Speaker 1: flowing inside sports around the globe as NASCAR's business engine 5 00:00:15,200 --> 00:00:17,680 Speaker 1: lost to some horse problem. Now I'm paying five or 6 00:00:17,720 --> 00:00:19,040 Speaker 1: ten percent what I used to pay to buy the 7 00:00:19,079 --> 00:00:22,160 Speaker 1: whole team. Michael Barr. Nothing like a cheap cot dog, 8 00:00:22,400 --> 00:00:24,919 Speaker 1: which is what you should get. Scott SASNet. How do 9 00:00:25,000 --> 00:00:27,440 Speaker 1: you put your brand outside of the United States? How 10 00:00:27,440 --> 00:00:30,320 Speaker 1: do you capture fans around the world? Bloomberg Business of 11 00:00:30,400 --> 00:00:33,880 Speaker 1: Sports on Bloomberg Radio. Over the next hour, we will 12 00:00:33,920 --> 00:00:36,879 Speaker 1: explore the big money issues in the world of sports, 13 00:00:36,920 --> 00:00:38,560 Speaker 1: and we will talk to some of the biggest players 14 00:00:38,560 --> 00:00:41,440 Speaker 1: in the industry. He represented Tom Brady against the NFL 15 00:00:41,479 --> 00:00:43,920 Speaker 1: into flate Gate. We speak with attorney Jeff Kesler. So 16 00:00:44,040 --> 00:00:47,080 Speaker 1: the issue with Tom Brady, in the number of the 17 00:00:47,120 --> 00:00:52,240 Speaker 1: other discipline cases that the union is challenged in releasing 18 00:00:52,280 --> 00:00:55,840 Speaker 1: the years in the NFL is an abuse of power 19 00:00:55,920 --> 00:01:00,280 Speaker 1: where fair procedures are not applied, fair adults are not 20 00:01:01,480 --> 00:01:05,800 Speaker 1: and the existing rules are ignored. Plus, the first professional 21 00:01:05,880 --> 00:01:08,920 Speaker 1: sports team is coming to Vegas. We'll talk with one 22 00:01:08,959 --> 00:01:12,240 Speaker 1: of the owners of the NHL's Golden Knights, Gavin maloof 23 00:01:12,440 --> 00:01:16,720 Speaker 1: you can't sequest of customer. He's got to be able 24 00:01:16,760 --> 00:01:19,360 Speaker 1: to do other things. You can't be in the casino 25 00:01:20,120 --> 00:01:23,080 Speaker 1: gambling away for twenty four hours. That was kind of 26 00:01:23,120 --> 00:01:25,960 Speaker 1: the old way of thinking, to be honest, and now 27 00:01:26,040 --> 00:01:28,480 Speaker 1: you have to give people options. There has to be entertainment. 28 00:01:28,680 --> 00:01:30,319 Speaker 1: You have to give him a reason to come to 29 00:01:30,400 --> 00:01:32,880 Speaker 1: Las Vegas. But first we look at our top three 30 00:01:32,920 --> 00:01:36,600 Speaker 1: business stories of the week, the sale of baseball's Miami Marlins, 31 00:01:36,640 --> 00:01:39,720 Speaker 1: and there are some pretty familiar names on there. Michael Derek, Jeter, 32 00:01:39,880 --> 00:01:43,400 Speaker 1: and former Florida Governor Jeff Bush are among those bidding 33 00:01:43,440 --> 00:01:47,000 Speaker 1: for the club. The sale for a sports franchise was 34 00:01:47,040 --> 00:01:49,280 Speaker 1: the main topic that we discussed on the premiere of 35 00:01:49,280 --> 00:01:53,200 Speaker 1: Bloomberg Business of Sports with Sal Galatyoto, the founder of 36 00:01:53,240 --> 00:01:56,680 Speaker 1: Galatyoto Sports Partners. Let's face it, they're not making any 37 00:01:56,720 --> 00:01:59,040 Speaker 1: more of these, right, or they're making very few of these. 38 00:01:59,480 --> 00:02:02,240 Speaker 1: So if you can get into a premier brand and 39 00:02:02,320 --> 00:02:05,000 Speaker 1: you're viewing it as a long term investment, look at 40 00:02:05,040 --> 00:02:07,160 Speaker 1: the history of these investments and how well people have 41 00:02:07,200 --> 00:02:10,360 Speaker 1: done invested in these things. It always looked like they overpaid, 42 00:02:10,440 --> 00:02:13,359 Speaker 1: but within five years you notice, no, they didn't overpay. Now, 43 00:02:13,680 --> 00:02:16,560 Speaker 1: whether they overpay on this one depends on the final number. 44 00:02:16,760 --> 00:02:18,960 Speaker 1: The Kushner family was close on a deal for one 45 00:02:19,040 --> 00:02:22,160 Speaker 1: six the number came down. I'm talking to a lot 46 00:02:22,200 --> 00:02:25,480 Speaker 1: of bankers who would be surprised if this tops of 47 00:02:25,520 --> 00:02:28,880 Speaker 1: billion dollars because this franchise loses money. Yeah, but those 48 00:02:28,919 --> 00:02:32,440 Speaker 1: TV rights, you can't forget those those things. That sends 49 00:02:32,480 --> 00:02:35,760 Speaker 1: the whole thing sky high. And this was one of 50 00:02:35,800 --> 00:02:39,920 Speaker 1: the clubs according to a survey. According to Forbes magazine, 51 00:02:40,240 --> 00:02:43,800 Speaker 1: that was at the bottom end of value for a 52 00:02:43,840 --> 00:02:46,600 Speaker 1: baseball about nine hundred and seventy millions. So that's below 53 00:02:46,600 --> 00:02:49,400 Speaker 1: that billion dollar threshold. But there are bidders Quade Capitals, 54 00:02:49,600 --> 00:02:53,720 Speaker 1: Wayne Rothbaum is a bidder, Jeter and Jeb Bush. They 55 00:02:53,760 --> 00:02:56,880 Speaker 1: are in talks to combine their bid so do they 56 00:02:56,919 --> 00:02:59,720 Speaker 1: put their purchase power together. But still the question becomes, 57 00:03:00,120 --> 00:03:02,440 Speaker 1: who's cutting the big check? We don't know the money 58 00:03:02,520 --> 00:03:05,960 Speaker 1: behind them. Who is cutting that big check? There are 59 00:03:06,000 --> 00:03:09,000 Speaker 1: only thirty of these things. I have to say, it 60 00:03:09,000 --> 00:03:11,040 Speaker 1: wouldn't surprise me if I did see this in a 61 00:03:11,080 --> 00:03:14,079 Speaker 1: billion dollars. Well, even if it doesn't. Let's say it's close. 62 00:03:14,160 --> 00:03:16,120 Speaker 1: If it goes over, great for Jeff Luria, the New 63 00:03:16,160 --> 00:03:18,120 Speaker 1: York art dealer who owns the club. But he only 64 00:03:18,160 --> 00:03:20,600 Speaker 1: paid about two hundred million dollars for the franchise and 65 00:03:20,600 --> 00:03:24,440 Speaker 1: when he bought it either way as an asset valuation, 66 00:03:25,040 --> 00:03:28,880 Speaker 1: this is a pretty good return on investment for Jeff 67 00:03:28,919 --> 00:03:32,760 Speaker 1: Lauria effisting trades. As my thirteen year old son would say, 68 00:03:33,000 --> 00:03:35,200 Speaker 1: they're about to get paid. Well. That brings us to 69 00:03:35,360 --> 00:03:39,040 Speaker 1: the NFL and the White House. Earlier this week, President 70 00:03:39,080 --> 00:03:42,880 Speaker 1: Trump welcomed the world champion New England Patriots minus Tom 71 00:03:42,880 --> 00:03:45,880 Speaker 1: Brady to the White House. Here's Patriots owner Bob Kraft. 72 00:03:46,040 --> 00:03:49,440 Speaker 1: It's a distinct honor for us to celebrate what was 73 00:03:49,640 --> 00:03:55,320 Speaker 1: unequivocally our sweetest championship with a very good friend and 74 00:03:55,440 --> 00:04:00,880 Speaker 1: somebody whose mental toughness and strength I great and meyer. 75 00:04:00,920 --> 00:04:05,080 Speaker 1: There has been a really close relationship between Donald Trump 76 00:04:05,120 --> 00:04:08,160 Speaker 1: and the Patriots, and it starts with Kraft. He has 77 00:04:08,200 --> 00:04:11,240 Speaker 1: dined at Mara Lago with the President. And remember Brady 78 00:04:11,280 --> 00:04:13,400 Speaker 1: brought all the attention when he had to make America 79 00:04:13,440 --> 00:04:16,240 Speaker 1: Great hand hat in his locker, so people were asking 80 00:04:16,240 --> 00:04:19,200 Speaker 1: about him incessantly. Now he was one who didn't make 81 00:04:19,240 --> 00:04:22,760 Speaker 1: it to the White House, citing some family issue that 82 00:04:22,800 --> 00:04:25,440 Speaker 1: popped up. He didn't specify what it was, but Bratty 83 00:04:25,560 --> 00:04:28,039 Speaker 1: was not there. And by the way, a reminder, the 84 00:04:28,120 --> 00:04:32,159 Speaker 1: Craft Group, firm associated with the Patriots owner gave a 85 00:04:32,200 --> 00:04:35,720 Speaker 1: million dollars to the Trump campaign and Robert Kraft is 86 00:04:35,760 --> 00:04:38,839 Speaker 1: not alone among the NFL owners, for others also gave 87 00:04:38,880 --> 00:04:42,680 Speaker 1: a million bucks eats according to the figures that we have, 88 00:04:42,839 --> 00:04:46,960 Speaker 1: the Jets, Woody Johnson, the Red Skins, Daniel Snyder, Robert 89 00:04:47,000 --> 00:04:50,760 Speaker 1: McNair of the Houston Texans, and the Jaguars Shahid Khan, 90 00:04:51,120 --> 00:04:54,800 Speaker 1: they all made donations. In interesting Shad Khan the only 91 00:04:54,880 --> 00:04:58,640 Speaker 1: Muslim owner in major US pro sports. Now, he did 92 00:04:58,760 --> 00:05:01,240 Speaker 1: disagree with Trump on the track ravel band. So it's 93 00:05:01,279 --> 00:05:04,799 Speaker 1: not as if that makes the president immune from criticism 94 00:05:04,839 --> 00:05:07,560 Speaker 1: from those who are giving money to his campaign. I 95 00:05:07,600 --> 00:05:10,360 Speaker 1: wonder if jas L Bunsen had anything to do with 96 00:05:10,440 --> 00:05:14,360 Speaker 1: Tom Brady not going to the White House. Tom wasn't saying. 97 00:05:14,920 --> 00:05:19,520 Speaker 1: We know, he cited a family issue, but it was 98 00:05:19,640 --> 00:05:23,120 Speaker 1: interesting to see one by one the players that did 99 00:05:23,160 --> 00:05:25,880 Speaker 1: seem to object, who said I'm not going I'm not 100 00:05:25,920 --> 00:05:29,560 Speaker 1: going I think the Patriots said there were forty three 101 00:05:29,560 --> 00:05:33,599 Speaker 1: players this time, forty five the last time, but it 102 00:05:33,720 --> 00:05:36,000 Speaker 1: just seemed as if the players won by one. We're 103 00:05:36,040 --> 00:05:38,919 Speaker 1: saying we don't want to throw our support behind this 104 00:05:39,160 --> 00:05:42,159 Speaker 1: and our third story. North Carolina is back to doing 105 00:05:42,200 --> 00:05:44,480 Speaker 1: business with the n C Double A, sure is. And 106 00:05:44,560 --> 00:05:47,760 Speaker 1: that was a significant economic blow to North Carolina. It 107 00:05:47,880 --> 00:05:50,960 Speaker 1: wasn't just the collegiate championships. And let's not forget this 108 00:05:51,040 --> 00:05:54,720 Speaker 1: isn't just the A c C title games and basketball 109 00:05:55,080 --> 00:05:58,360 Speaker 1: and football. There's a myriad number of sports where they 110 00:05:58,400 --> 00:06:02,960 Speaker 1: have championships in Carolina as well as on the professional side. 111 00:06:03,400 --> 00:06:05,880 Speaker 1: The NBA pulled the All Star Game went back to 112 00:06:06,400 --> 00:06:09,360 Speaker 1: New Orleans instead. The NBA, like the n c A 113 00:06:09,360 --> 00:06:12,799 Speaker 1: A Adam Silver said okay, they're now back on the docket. 114 00:06:12,920 --> 00:06:16,440 Speaker 1: We may go back there in and by the way, 115 00:06:16,680 --> 00:06:18,880 Speaker 1: not everybody is happy. This is why they call it 116 00:06:18,920 --> 00:06:21,880 Speaker 1: a compromise with this agreement, but it was enough for 117 00:06:21,960 --> 00:06:24,200 Speaker 1: the n C Double A to say, okay, we'll come 118 00:06:24,240 --> 00:06:27,640 Speaker 1: back to North Carolina. This is the Business of Sports. 119 00:06:27,680 --> 00:06:31,800 Speaker 1: On Bloomberg Radio with Scott Sash and Michael Ball in 120 00:06:31,880 --> 00:06:34,039 Speaker 1: just a few minutes, we will speak with one of 121 00:06:34,040 --> 00:06:36,840 Speaker 1: the owners of an NHL team that's coming to Las Vegas, 122 00:06:36,880 --> 00:06:39,480 Speaker 1: Gavin Malouf. But first, he's one of the most powerful 123 00:06:39,520 --> 00:06:42,760 Speaker 1: sports attorneys in the world. Jeffrey Kessler has represented players 124 00:06:42,839 --> 00:06:46,680 Speaker 1: unions in almost every professional sports league. He also represented 125 00:06:46,760 --> 00:06:50,480 Speaker 1: Tom Brady against the NFL in the flight gate and 126 00:06:50,560 --> 00:06:53,080 Speaker 1: he is now taking on the n C double Ane. Jeff, 127 00:06:53,120 --> 00:06:55,320 Speaker 1: Welcome to the program. I appreciate you being here. Now. 128 00:06:55,360 --> 00:06:57,080 Speaker 1: You and I have known each other for a very 129 00:06:57,120 --> 00:07:01,080 Speaker 1: long time. It seems when it comes to the relationship 130 00:07:01,200 --> 00:07:04,920 Speaker 1: between owners and players, labor and management, nothing has changed. 131 00:07:05,200 --> 00:07:08,120 Speaker 1: Has it changed or do we keep seeing the same site? Oh? 132 00:07:08,160 --> 00:07:11,720 Speaker 1: I think it changes all the time. People involved change, 133 00:07:12,480 --> 00:07:18,640 Speaker 1: the economy changes, the mood of the country changes. I 134 00:07:18,680 --> 00:07:22,040 Speaker 1: think a lot of things change. The factors that influence 135 00:07:22,160 --> 00:07:26,200 Speaker 1: things stay the same. But the combination and what the 136 00:07:26,320 --> 00:07:30,160 Speaker 1: deels I think is often different. But what remains the 137 00:07:30,200 --> 00:07:31,960 Speaker 1: same and I'm guessing here, you tell me. But what 138 00:07:32,080 --> 00:07:35,880 Speaker 1: remains the same is both sides always seem to want 139 00:07:35,880 --> 00:07:40,320 Speaker 1: more money. Well, it's a business negotiation. Uh. You know, 140 00:07:40,400 --> 00:07:45,440 Speaker 1: let's be very clear. Uh, sports is a business, and 141 00:07:45,640 --> 00:07:50,240 Speaker 1: so like any type of labor management, dispute, which is 142 00:07:50,280 --> 00:07:53,720 Speaker 1: what this is. Uh, management would like to pay less 143 00:07:53,760 --> 00:07:56,920 Speaker 1: and labor would like to make more. Now, what's different 144 00:07:56,960 --> 00:08:01,640 Speaker 1: about sports is that are all sorts of other public 145 00:08:01,720 --> 00:08:07,560 Speaker 1: elements of the game that sometimes come into the negotiations, 146 00:08:07,680 --> 00:08:11,400 Speaker 1: but at its core, it's still a labor management dispute 147 00:08:11,440 --> 00:08:13,560 Speaker 1: no matter how you look at it. Jeff to put 148 00:08:13,600 --> 00:08:17,040 Speaker 1: it in perspective and coming from a layman's term, Yes, 149 00:08:17,480 --> 00:08:19,800 Speaker 1: I'm a fan of sports and I'll root for any 150 00:08:19,840 --> 00:08:22,440 Speaker 1: team this and that whatever, But you just said it. 151 00:08:22,440 --> 00:08:24,400 Speaker 1: It is a business, and once you put it in 152 00:08:24,480 --> 00:08:28,000 Speaker 1: that perspective, it takes on a different tone. Yes, And 153 00:08:28,080 --> 00:08:34,400 Speaker 1: you know, I think something that fans have come to appreciate, hope, 154 00:08:34,400 --> 00:08:36,840 Speaker 1: in the past twenty five years, is that it is 155 00:08:36,840 --> 00:08:39,280 Speaker 1: a business. Now, by the way, I don't think that 156 00:08:39,360 --> 00:08:43,800 Speaker 1: undermines the game. I don't think that undermines the tract 157 00:08:43,880 --> 00:08:47,800 Speaker 1: of this of the product that's produced. Entertainment is a 158 00:08:47,840 --> 00:08:51,280 Speaker 1: business too, Uh. You know, but people love the Disney 159 00:08:51,320 --> 00:08:55,160 Speaker 1: movies and Star Wars, but guess what they pay their actors. 160 00:08:55,400 --> 00:08:59,640 Speaker 1: And it's a business, unlike let's say, an airline or 161 00:09:00,080 --> 00:09:04,960 Speaker 1: a home depot. The difference, however, in sports is that 162 00:09:05,120 --> 00:09:08,520 Speaker 1: the customers seem to be addicted to the product. No 163 00:09:08,559 --> 00:09:10,880 Speaker 1: matter how badly you treat them, they keep coming back. 164 00:09:10,920 --> 00:09:15,000 Speaker 1: Do you see that. I wouldn't put it that way, 165 00:09:15,040 --> 00:09:17,640 Speaker 1: And I don't think fans are so badly treated either. 166 00:09:18,800 --> 00:09:23,319 Speaker 1: I think it is true that fans will love their 167 00:09:23,360 --> 00:09:27,200 Speaker 1: sports and root for their teams and come back even 168 00:09:27,559 --> 00:09:31,840 Speaker 1: when the business issues intrude on the sports pages. But 169 00:09:32,000 --> 00:09:35,680 Speaker 1: I don't know that that's any different. Uh. Then people 170 00:09:35,720 --> 00:09:39,720 Speaker 1: will come back, uh, and by their cause. If there's 171 00:09:39,760 --> 00:09:44,000 Speaker 1: a strike and an automobile factory. When you talk about negotiations, 172 00:09:44,040 --> 00:09:46,600 Speaker 1: can you put it in perspective for us, it's a 173 00:09:46,600 --> 00:09:48,960 Speaker 1: bit of a dance. What what is the toughest part 174 00:09:48,960 --> 00:09:52,960 Speaker 1: of the negotiations? The toughest part of a negotiation is 175 00:09:53,000 --> 00:09:56,920 Speaker 1: that it's multilateral. And by that I mean so I 176 00:09:57,000 --> 00:10:02,480 Speaker 1: am generally, uh, certainly always in collective boggaining in sports 177 00:10:02,600 --> 00:10:06,040 Speaker 1: on the player's side, looking across the table at the 178 00:10:06,120 --> 00:10:11,200 Speaker 1: owner's side. There is a multifaceted group of owners who 179 00:10:11,240 --> 00:10:14,240 Speaker 1: don't always agree with each other, who don't always have 180 00:10:14,440 --> 00:10:21,840 Speaker 1: identical economic interests uh. And the difficulty frequently negotiating is 181 00:10:21,960 --> 00:10:27,240 Speaker 1: trying to understand the dynamics on the other side, UH, 182 00:10:27,240 --> 00:10:31,040 Speaker 1: and what's affecting the responses that are coming back. How 183 00:10:31,080 --> 00:10:35,760 Speaker 1: skillful their commissioner is and they'll lead negotiators will affect 184 00:10:36,120 --> 00:10:41,520 Speaker 1: that dynamic. Knowing the player's side. There's a multilateral group 185 00:10:41,559 --> 00:10:45,800 Speaker 1: as well. Uh. There are star players, there are journeymen players, 186 00:10:45,880 --> 00:10:50,760 Speaker 1: there are players in between. UH. Sometimes they are retired 187 00:10:50,880 --> 00:10:54,240 Speaker 1: player interests that are being discussed. So there's a whole 188 00:10:54,320 --> 00:10:58,640 Speaker 1: group of constituencies that have to be balanced together on 189 00:10:58,679 --> 00:11:03,880 Speaker 1: the player side. So I think finding the core consensus 190 00:11:03,920 --> 00:11:07,679 Speaker 1: on each side and understanding where the other side has 191 00:11:07,720 --> 00:11:10,600 Speaker 1: the ability to move and not move is a lot 192 00:11:10,640 --> 00:11:14,040 Speaker 1: of what's most challenging in these negotiations. We are chatting 193 00:11:14,040 --> 00:11:16,720 Speaker 1: with attorney Jeff Kessler. It's a partner at Winston and Strawn. 194 00:11:16,800 --> 00:11:20,479 Speaker 1: And Jeff, do these negotiations get easier or more difficult 195 00:11:20,760 --> 00:11:23,240 Speaker 1: as the dollar figures go up. The more money there 196 00:11:23,320 --> 00:11:27,720 Speaker 1: is in the table, the easier to dealers. Any negotiator 197 00:11:27,760 --> 00:11:31,839 Speaker 1: will tell you that. Uh. In our last NBA negotiation, 198 00:11:32,280 --> 00:11:37,960 Speaker 1: which we just did an extension, UH just this past January. Uh, 199 00:11:37,960 --> 00:11:42,360 Speaker 1: it was completed. UH that was immensely helped by the 200 00:11:42,440 --> 00:11:45,960 Speaker 1: fact that the n b a UH is in a 201 00:11:46,040 --> 00:11:50,040 Speaker 1: boon period right now for its revenue and growth. That 202 00:11:50,080 --> 00:11:53,720 Speaker 1: makes it much easier for both sides to find common grounds. 203 00:11:53,720 --> 00:11:56,280 Speaker 1: You also talk about the n C double language. You 204 00:11:56,280 --> 00:12:01,920 Speaker 1: were participants involved in those negotiations. It comes down to simply, 205 00:12:02,320 --> 00:12:05,720 Speaker 1: are the collegiate athletes do they deserve a piece of 206 00:12:05,720 --> 00:12:08,960 Speaker 1: the pine like the universities are getting? Well, I certainly 207 00:12:08,960 --> 00:12:11,600 Speaker 1: think so. And and I want to be clear, what 208 00:12:11,640 --> 00:12:16,600 Speaker 1: we're talking about is not all collegiate athletes. We're not 209 00:12:16,640 --> 00:12:20,440 Speaker 1: talking about Division three rowers, you know what. We're not 210 00:12:20,559 --> 00:12:25,800 Speaker 1: talking about the volleyball team. We're talking about the teams 211 00:12:26,000 --> 00:12:30,439 Speaker 1: that generate hundreds of millions of dollars for their universities. 212 00:12:31,240 --> 00:12:34,120 Speaker 1: So if you're a UTI, you're gonna make two hundred 213 00:12:34,160 --> 00:12:37,720 Speaker 1: million dollars this year off of your football team and 214 00:12:37,720 --> 00:12:41,120 Speaker 1: your basketball team essentially, okay, maybe a little bit out 215 00:12:41,120 --> 00:12:44,680 Speaker 1: of the women's team as well. Those revenues right now 216 00:12:44,960 --> 00:12:48,319 Speaker 1: go to the coaches, They go to the athletic directors, 217 00:12:48,559 --> 00:12:53,920 Speaker 1: they go to everybody but the players. We in the 218 00:12:54,000 --> 00:12:57,160 Speaker 1: University of Alabama, we have a weak coach who makes 219 00:12:57,200 --> 00:13:00,240 Speaker 1: five hundred thousand dollars a year, which is what in 220 00:13:00,280 --> 00:13:04,760 Speaker 1: the university president makes and the players can't be allowed 221 00:13:04,800 --> 00:13:10,240 Speaker 1: to get even the smallest sums to compensate them for 222 00:13:10,320 --> 00:13:16,040 Speaker 1: generating these revenues beyond the very limited restrictions of the 223 00:13:16,200 --> 00:13:18,880 Speaker 1: n t A rules. And on top of that, there 224 00:13:19,080 --> 00:13:21,800 Speaker 1: was a time when you had the video games that 225 00:13:21,840 --> 00:13:24,640 Speaker 1: were out there with the likeness of some of these 226 00:13:24,800 --> 00:13:27,400 Speaker 1: n c double A athletes. Oh, of course, that's a 227 00:13:27,440 --> 00:13:32,200 Speaker 1: whole different issue, which is that third parties we're utilizing 228 00:13:32,200 --> 00:13:35,880 Speaker 1: their rights and they couldn't get compensated for that. All 229 00:13:35,960 --> 00:13:38,640 Speaker 1: that the players and are looking for in those sports, 230 00:13:38,720 --> 00:13:40,559 Speaker 1: and all we're looking for in the case and I'm 231 00:13:40,640 --> 00:13:45,360 Speaker 1: involved in, is to let the schools make choices. No 232 00:13:45,400 --> 00:13:49,800 Speaker 1: one wants to force any school to do anything. But 233 00:13:49,880 --> 00:13:52,640 Speaker 1: if a group of schools want to get together and 234 00:13:52,760 --> 00:13:55,600 Speaker 1: be fair to their athletes because of how much revenue 235 00:13:55,640 --> 00:13:59,839 Speaker 1: was generated, what's long with that? If another group one 236 00:14:00,160 --> 00:14:02,600 Speaker 1: to be like the IVY League and say we're not 237 00:14:02,679 --> 00:14:07,160 Speaker 1: even gonna grant athletic scholarships, that's okay to Jeff. The 238 00:14:07,280 --> 00:14:09,520 Speaker 1: n c A seems to be adopting some of the 239 00:14:09,640 --> 00:14:13,960 Speaker 1: changes you seek. Are we heading towards paying players? Yeah, 240 00:14:14,000 --> 00:14:19,240 Speaker 1: there's been some small progress and the significance of the 241 00:14:19,360 --> 00:14:23,520 Speaker 1: small progress is two things. One, Yes, the n c 242 00:14:23,680 --> 00:14:27,080 Speaker 1: A has started to recognize that maybe the power conferences 243 00:14:27,080 --> 00:14:30,200 Speaker 1: in those generating the revenues should and can be able 244 00:14:30,240 --> 00:14:33,600 Speaker 1: to do more. So they sort of crossed the rubicon 245 00:14:33,760 --> 00:14:38,560 Speaker 1: on that principle. Uh. The second important point is every 246 00:14:38,600 --> 00:14:42,760 Speaker 1: time the athletes get a little more, ratings go up 247 00:14:42,920 --> 00:14:47,000 Speaker 1: or stay the same, attendance goes up or taste to 248 00:14:47,120 --> 00:14:53,600 Speaker 1: save spot, this is sponsorships go up. Uh. All the 249 00:14:53,600 --> 00:14:59,200 Speaker 1: the measures of fan demand are completely unaffected by this 250 00:14:59,360 --> 00:15:03,240 Speaker 1: because there were reality is if you're a fan of 251 00:15:03,520 --> 00:15:07,960 Speaker 1: Duke basketball, because you could care less if the coaches 252 00:15:08,040 --> 00:15:11,640 Speaker 1: made one million dollars less and spread it to the team, 253 00:15:11,760 --> 00:15:15,560 Speaker 1: that doesn't affect your experience as a fan. People say, 254 00:15:15,680 --> 00:15:20,200 Speaker 1: in contrast to that, the athletes they're getting paid, so 255 00:15:20,280 --> 00:15:23,560 Speaker 1: to speak, because they're getting scholarships to go to the 256 00:15:23,560 --> 00:15:26,280 Speaker 1: school for free. Your thoughts, Yeah, that is something that 257 00:15:26,320 --> 00:15:30,840 Speaker 1: has always said. And the point is, Okay, The question 258 00:15:30,960 --> 00:15:35,720 Speaker 1: is let the schools decide that's enough, because as we 259 00:15:35,880 --> 00:15:40,560 Speaker 1: all know, many of these athletes don't graduate at some 260 00:15:40,720 --> 00:15:43,920 Speaker 1: of these schools. They're getting very little help to graduate, 261 00:15:44,440 --> 00:15:47,160 Speaker 1: you know, or they're actually put into classes that don't 262 00:15:47,240 --> 00:15:52,520 Speaker 1: advance their graduation says, and the course to the school 263 00:15:53,440 --> 00:15:55,760 Speaker 1: of a scholarship. You know, they like to say it's 264 00:15:55,800 --> 00:15:57,800 Speaker 1: the course that if you were paying your tuition, but 265 00:15:57,920 --> 00:15:59,720 Speaker 1: we know that's not the course to the school the 266 00:16:00,000 --> 00:16:03,320 Speaker 1: ollership what it is. It's first of all, it's another seat. 267 00:16:04,080 --> 00:16:06,160 Speaker 1: If they have an empty seat of their classroom, they 268 00:16:06,160 --> 00:16:08,880 Speaker 1: get to sit in the classroom. They're not hiring additional 269 00:16:08,960 --> 00:16:12,960 Speaker 1: faculty or building additional classrooms for these students. It's a 270 00:16:13,000 --> 00:16:17,440 Speaker 1: marginal course. Let the schools decide if that's fair or not. 271 00:16:18,120 --> 00:16:22,360 Speaker 1: You know. Paul Taybu, former commissioner of the NFL, was 272 00:16:22,400 --> 00:16:26,840 Speaker 1: now the chairman of Georgetown, was at a conference before 273 00:16:26,880 --> 00:16:30,560 Speaker 1: the Night Commission, which looks into college sports, and Paul 274 00:16:30,960 --> 00:16:33,840 Speaker 1: put out I thought a very interesting idea of what 275 00:16:33,960 --> 00:16:38,280 Speaker 1: would be wrong of letting a school like Georgetown decide 276 00:16:38,720 --> 00:16:41,640 Speaker 1: that they would get to set aside a sum of money, 277 00:16:41,760 --> 00:16:45,440 Speaker 1: let's say twenty five dollars each year that the student 278 00:16:45,560 --> 00:16:50,280 Speaker 1: advanced towards graduation, and if the school student then graduated 279 00:16:50,600 --> 00:16:53,840 Speaker 1: with him, let's say six years and got his degree, 280 00:16:54,160 --> 00:16:56,560 Speaker 1: he would get a bonus on top of that. What 281 00:16:56,640 --> 00:17:00,240 Speaker 1: would be bad about that? What value with out of 282 00:17:00,320 --> 00:17:02,880 Speaker 1: the COT What a difference will we make in the 283 00:17:02,960 --> 00:17:06,159 Speaker 1: life of that student? In the six degrees of separation 284 00:17:06,200 --> 00:17:09,639 Speaker 1: of Jeff Kessler, Georgetown hired Patrick Ewing as its basketball coach. 285 00:17:09,680 --> 00:17:12,359 Speaker 1: Patrick was the president of the union in the NBA. 286 00:17:12,480 --> 00:17:16,160 Speaker 1: When you represented them and you mentioned the NFL, let 287 00:17:16,160 --> 00:17:19,560 Speaker 1: me segue there. You also represented Tom Brady in his 288 00:17:19,640 --> 00:17:24,520 Speaker 1: fight against the NFL. This wasn't necessary necessarily money? Was 289 00:17:24,560 --> 00:17:27,159 Speaker 1: this about power? Is that? This the underlying current in 290 00:17:27,200 --> 00:17:30,080 Speaker 1: all this there's there's money and power and control. Well, 291 00:17:30,480 --> 00:17:34,600 Speaker 1: it's it's about fanis and due process. So the issue 292 00:17:34,840 --> 00:17:38,640 Speaker 1: with Tom Brady and in the number of the other 293 00:17:38,960 --> 00:17:44,000 Speaker 1: discipline cases that the unionists challenged in recent years in 294 00:17:44,040 --> 00:17:49,600 Speaker 1: the NFL, is an abuse of power where fair procedures 295 00:17:49,600 --> 00:17:54,000 Speaker 1: are not applied, fair results are not obtained, and the 296 00:17:54,080 --> 00:17:59,639 Speaker 1: existing rules are ignored. That's what the fight was for 297 00:17:59,720 --> 00:18:03,119 Speaker 1: the union about the flight gate. And if you don't 298 00:18:03,320 --> 00:18:06,600 Speaker 1: stand up for every one of your members, whether it's 299 00:18:06,680 --> 00:18:11,320 Speaker 1: Tom Brady or it's the last man on the practice squad, 300 00:18:11,680 --> 00:18:14,640 Speaker 1: then you do not have rights for any of your players. 301 00:18:14,960 --> 00:18:18,080 Speaker 1: That's what that fight was about. To play Devil's Advocate 302 00:18:18,119 --> 00:18:22,040 Speaker 1: though some people say the players brought this upon theirselves 303 00:18:22,160 --> 00:18:26,399 Speaker 1: because when they negotiated the last contract, this is what 304 00:18:26,520 --> 00:18:28,879 Speaker 1: they decided. They decided to have all of this go 305 00:18:29,240 --> 00:18:32,800 Speaker 1: through the NFL commissioner and not much of a trickle 306 00:18:32,880 --> 00:18:37,120 Speaker 1: down effect. Okay, so let's go through the history, all right. This, 307 00:18:37,119 --> 00:18:40,920 Speaker 1: this idea of the commissioner being the one to review 308 00:18:41,560 --> 00:18:46,320 Speaker 1: player discipline for things light off the field conduct in 309 00:18:46,400 --> 00:18:50,240 Speaker 1: these types of issues, goes back to the very beginning 310 00:18:50,280 --> 00:18:52,320 Speaker 1: of the NFL. Had nothing to do with the two 311 00:18:52,359 --> 00:18:55,960 Speaker 1: thousand and eleven CPA negotiations. The only thing you could 312 00:18:55,960 --> 00:18:59,119 Speaker 1: say about the two thousand and eleven CPA negotiations is 313 00:18:59,160 --> 00:19:01,960 Speaker 1: that it didn't change. So why does it become an 314 00:19:02,000 --> 00:19:04,600 Speaker 1: issue now? And the reason it's become an issue now 315 00:19:05,440 --> 00:19:09,440 Speaker 1: is that the current commissioner is the first one to 316 00:19:09,600 --> 00:19:13,680 Speaker 1: wield this power and use it in a way that 317 00:19:13,760 --> 00:19:18,520 Speaker 1: the players considered to be fundamentally abusive and unfair. Prior 318 00:19:18,600 --> 00:19:21,520 Speaker 1: to two thousand twelve, you never heard about this issue, 319 00:19:21,920 --> 00:19:24,479 Speaker 1: all right, Thanks Jeff. That's Jeff Kessler, a partner at 320 00:19:24,480 --> 00:19:27,639 Speaker 1: Winston and Strong. This is the Business of Sports on 321 00:19:27,800 --> 00:19:31,960 Speaker 1: Bloomberg Radio with Scott Sasha Aga and Michael Ball, thanks 322 00:19:32,000 --> 00:19:34,520 Speaker 1: for joining us. We are here each and every week 323 00:19:34,600 --> 00:19:37,400 Speaker 1: for you. At this time, you now turn our attention 324 00:19:37,480 --> 00:19:41,479 Speaker 1: to the Las Vegas getting their very first professional sports team. 325 00:19:41,480 --> 00:19:43,560 Speaker 1: Sure dooon, Michael. The Golden Knights will be skating in 326 00:19:43,600 --> 00:19:46,280 Speaker 1: the NHL next season. Gavin Malouf is one of the 327 00:19:46,280 --> 00:19:49,640 Speaker 1: team's owners. You may remember the name Malouf. They own 328 00:19:49,680 --> 00:19:52,919 Speaker 1: the Sacramento Kings. Gavin, thanks for joining us. Question I 329 00:19:52,920 --> 00:19:54,920 Speaker 1: have for you is are you excited to be back 330 00:19:55,040 --> 00:19:59,320 Speaker 1: in professional sports? We're excited. We worked on acquiring of 331 00:19:59,720 --> 00:20:02,879 Speaker 1: a chel team with Bill Foley for five years. We 332 00:20:02,920 --> 00:20:06,679 Speaker 1: actually brought the idea to the Commissioner's Batman. When we 333 00:20:06,720 --> 00:20:09,600 Speaker 1: first approached him, we actually were still owners of the 334 00:20:09,680 --> 00:20:11,880 Speaker 1: King's and we thought, God, would would be a great 335 00:20:11,880 --> 00:20:14,320 Speaker 1: idea to have a professional team in Las Vegas. And 336 00:20:14,640 --> 00:20:16,720 Speaker 1: we went and saw Gary, Joe and I and he 337 00:20:16,800 --> 00:20:19,439 Speaker 1: didn't say no the first meeting, so I thought, you know, 338 00:20:19,480 --> 00:20:22,119 Speaker 1: at least we had a chance. That sounds a little 339 00:20:22,119 --> 00:20:25,040 Speaker 1: different from what we used to hear five ten years ago. 340 00:20:25,160 --> 00:20:30,080 Speaker 1: It was Vegas no way. What changed the proliferation of 341 00:20:30,160 --> 00:20:34,480 Speaker 1: gambling throughout the country. Remember there's there's some board of 342 00:20:34,600 --> 00:20:37,600 Speaker 1: Gaming in probably every state in the Union, maybe, but 343 00:20:37,720 --> 00:20:41,080 Speaker 1: two and uh, I think that changed. I think people's 344 00:20:41,119 --> 00:20:43,520 Speaker 1: attitudes about Las Vegas change. I think it's a it's 345 00:20:43,520 --> 00:20:47,480 Speaker 1: a corporate environment now, where before most of the casinos 346 00:20:47,480 --> 00:20:50,760 Speaker 1: were owned by individuals, just kind of a just a 347 00:20:50,760 --> 00:20:55,680 Speaker 1: corporate community, and just the stigma of gaming and sports 348 00:20:55,800 --> 00:20:57,960 Speaker 1: really kind of went away, and that gambling has always 349 00:20:57,960 --> 00:21:00,200 Speaker 1: been there. Are you one of the believers in it's 350 00:21:00,200 --> 00:21:03,000 Speaker 1: better to put some sunshine on it. If it's happening anyway, 351 00:21:03,040 --> 00:21:05,159 Speaker 1: we might we might as well know about it, regulated, 352 00:21:05,280 --> 00:21:08,920 Speaker 1: tax it and perhaps learn what's going on. Well, people 353 00:21:08,920 --> 00:21:13,000 Speaker 1: are gambling illegally anyway on sports, so why not the 354 00:21:13,160 --> 00:21:15,840 Speaker 1: tax said to make it legal and and get the 355 00:21:15,840 --> 00:21:19,760 Speaker 1: benefit of everybody's bets. And I think it would help 356 00:21:20,160 --> 00:21:23,639 Speaker 1: every state in the Union actually if that was to occur. Now, 357 00:21:23,720 --> 00:21:25,880 Speaker 1: for those who might not know your background, your family's 358 00:21:25,880 --> 00:21:29,200 Speaker 1: background used to control the Palms hotel and casino. What's 359 00:21:29,200 --> 00:21:34,200 Speaker 1: the relationship between the players and sports. Do you see 360 00:21:34,200 --> 00:21:36,840 Speaker 1: their synergies that your best customers would want to go 361 00:21:37,560 --> 00:21:41,000 Speaker 1: and see these games? Definitely? What are the prerequisites of 362 00:21:41,000 --> 00:21:44,359 Speaker 1: of getting an NHL team? Was to sell ten thousand 363 00:21:44,480 --> 00:21:48,960 Speaker 1: season tickets and The requirement was that those season tickets 364 00:21:49,000 --> 00:21:51,720 Speaker 1: had to be sold to locals. The league didn't want 365 00:21:52,080 --> 00:21:55,439 Speaker 1: those tickets going to the big corporations and buying blocks 366 00:21:55,440 --> 00:21:57,639 Speaker 1: and then people not attending some of the games. So 367 00:21:57,720 --> 00:22:00,879 Speaker 1: we we knew that that that would be a local 368 00:22:01,280 --> 00:22:04,320 Speaker 1: interest in the team here. Remember that the number one 369 00:22:04,359 --> 00:22:08,119 Speaker 1: tourist destination for Las Vegas, Canada will fit right in. 370 00:22:08,280 --> 00:22:09,960 Speaker 1: We knew that there would be a lot of people 371 00:22:10,000 --> 00:22:12,199 Speaker 1: from Canada that when you want to see like the 372 00:22:12,280 --> 00:22:15,120 Speaker 1: Leaves play or the Canucks, I feel like you're giving 373 00:22:15,119 --> 00:22:17,600 Speaker 1: me a glimpse into your marketing campaign. I can see 374 00:22:17,600 --> 00:22:20,159 Speaker 1: the emails going out across the Canada right now. Come 375 00:22:20,240 --> 00:22:25,000 Speaker 1: in December, come in January, absolutely and seven team of 376 00:22:25,200 --> 00:22:29,120 Speaker 1: MGM's businesses from Canada, and it just it was just crazy. 377 00:22:29,119 --> 00:22:33,440 Speaker 1: I didn't believe that that was the biggest percentage of 378 00:22:33,680 --> 00:22:37,240 Speaker 1: any international market, but so that so we knew that 379 00:22:37,760 --> 00:22:39,240 Speaker 1: going in, and then we just knew there was a 380 00:22:39,280 --> 00:22:41,919 Speaker 1: market for it. I mean, people are people, and I 381 00:22:41,960 --> 00:22:45,119 Speaker 1: can never understand why Las Vegas could never have a 382 00:22:45,119 --> 00:22:49,240 Speaker 1: sports team. You know, we love sports just like Chicago does, 383 00:22:49,359 --> 00:22:51,760 Speaker 1: or New York or in La I mean, we're people 384 00:22:51,760 --> 00:22:54,439 Speaker 1: are people what do you say to those who say, however, 385 00:22:54,520 --> 00:22:57,760 Speaker 1: that Vegas is a three shift town that at any time, 386 00:22:58,160 --> 00:23:01,239 Speaker 1: one shift is working and one shift is sleeping. That 387 00:23:01,280 --> 00:23:03,400 Speaker 1: doesn't leave a whole lot of people to be going 388 00:23:03,440 --> 00:23:06,760 Speaker 1: to sporting events. That's true, but a lot of the workers, 389 00:23:07,000 --> 00:23:09,440 Speaker 1: and then the work of the casinos they get flex time, 390 00:23:10,119 --> 00:23:12,720 Speaker 1: they can take time whenever they want a lot of 391 00:23:12,720 --> 00:23:15,360 Speaker 1: them and bought season tickets, they'll give them to their friends. 392 00:23:15,640 --> 00:23:17,760 Speaker 1: I've heard that, but it didn't seem to hurt us. 393 00:23:18,280 --> 00:23:21,080 Speaker 1: I mean, we were right around fifteen thousand and season tickets, 394 00:23:21,119 --> 00:23:23,720 Speaker 1: so it did seem to affect us. You mentioned it's 395 00:23:23,720 --> 00:23:27,240 Speaker 1: a corporate atmosphere these days, and you're playing in timoml Arena. 396 00:23:27,680 --> 00:23:30,600 Speaker 1: It's a partnership between MGM and a e G. It 397 00:23:30,640 --> 00:23:34,040 Speaker 1: wasn't so long ago. Where again, you come from a 398 00:23:34,080 --> 00:23:38,119 Speaker 1: casino background where I thought anyway that the casinos didn't 399 00:23:38,160 --> 00:23:41,760 Speaker 1: want anything that would lure customers away from the gaming floor. 400 00:23:42,119 --> 00:23:44,280 Speaker 1: Has that changed? Is there is there a change in 401 00:23:44,359 --> 00:23:46,560 Speaker 1: revenue streams that has led to that thinking, Well, I 402 00:23:46,560 --> 00:23:49,920 Speaker 1: think there's a change in attitude, the attitude about you 403 00:23:49,960 --> 00:23:54,199 Speaker 1: can't sequester a customer, he's got to be able to 404 00:23:54,240 --> 00:23:57,920 Speaker 1: do other things. He can't be in the casino gambling 405 00:23:57,960 --> 00:24:00,600 Speaker 1: away for twenty four hours. Oh, you as have certainly 406 00:24:00,640 --> 00:24:03,639 Speaker 1: tried though, no clocks and pumping oxygen into the casino floor, right, 407 00:24:03,680 --> 00:24:08,080 Speaker 1: you've certainly tried. They tried. Yeah, absolutely, And that was 408 00:24:08,160 --> 00:24:10,040 Speaker 1: kind of the old way of thinking, to be honest, 409 00:24:10,240 --> 00:24:12,640 Speaker 1: and now you have to give people options. There has 410 00:24:12,680 --> 00:24:14,800 Speaker 1: to be entertainment. You have to give them a reason 411 00:24:14,840 --> 00:24:17,000 Speaker 1: to come to Las Vegas. And now you know a 412 00:24:17,000 --> 00:24:19,080 Speaker 1: lot of the games that that the Golden Nights will 413 00:24:19,119 --> 00:24:21,560 Speaker 1: play will be during the week, some on weekends, but 414 00:24:21,600 --> 00:24:23,920 Speaker 1: a lot of them during the week where the locals 415 00:24:23,920 --> 00:24:27,640 Speaker 1: are off, because the locals their days offered, like Monday, Tuesday, Wednesday, 416 00:24:27,640 --> 00:24:29,680 Speaker 1: so we'll have a bunch of games on those days. 417 00:24:29,840 --> 00:24:32,560 Speaker 1: Is that something you tell the NHL when they're considering 418 00:24:32,800 --> 00:24:35,159 Speaker 1: making the schedule, that perhaps this is better suited to 419 00:24:35,200 --> 00:24:38,280 Speaker 1: our market. Yes, absolutely, And that was one of the 420 00:24:38,320 --> 00:24:41,400 Speaker 1: considerations that MGM looked at. And one of the things 421 00:24:41,440 --> 00:24:44,880 Speaker 1: that they like because their weekends are full, MGM, they're full. 422 00:24:44,920 --> 00:24:46,719 Speaker 1: They don't need help on the weekends, they need help 423 00:24:46,840 --> 00:24:49,920 Speaker 1: during the week and so this was an idea and 424 00:24:50,280 --> 00:24:52,600 Speaker 1: it was great. It just worked out perfectly because we're 425 00:24:52,640 --> 00:24:57,000 Speaker 1: hitting the locals. And also, you know Sunday afternoon, Sunday, 426 00:24:57,000 --> 00:25:00,160 Speaker 1: Matt May, that's another great day. So some well out 427 00:25:00,160 --> 00:25:02,520 Speaker 1: of the guests that may leave on Sunday. Now, if 428 00:25:02,520 --> 00:25:04,760 Speaker 1: you're from Canada and you want you want to watch 429 00:25:04,800 --> 00:25:07,479 Speaker 1: the Leaves Player, you may stay Sunday night the leap Monday, 430 00:25:07,680 --> 00:25:10,679 Speaker 1: so you give an extra day times a lot of rooms. 431 00:25:11,160 --> 00:25:13,480 Speaker 1: We are chatting with Gavin Malouf. He's an investor in 432 00:25:13,480 --> 00:25:17,000 Speaker 1: the Vegas Golden Nights, the first professional sports franchise, major 433 00:25:17,040 --> 00:25:20,360 Speaker 1: pro franchise in Vegas. What about that first mover status? 434 00:25:20,359 --> 00:25:21,960 Speaker 1: What did that do for the franchise? What did that 435 00:25:22,160 --> 00:25:25,200 Speaker 1: enable you, Bill Foley and the other investors to do? 436 00:25:25,640 --> 00:25:28,080 Speaker 1: It just became a reality. You have to remember living 437 00:25:28,119 --> 00:25:31,440 Speaker 1: here in Las Vegas for thirty years. As long as 438 00:25:31,440 --> 00:25:35,200 Speaker 1: we've been here, everybody's talked about building an arena. You know, 439 00:25:35,240 --> 00:25:37,919 Speaker 1: we've had thirty arena projects that have come and gone. 440 00:25:38,320 --> 00:25:40,320 Speaker 1: Nobody seemed to get it done in it and we've 441 00:25:40,320 --> 00:25:43,440 Speaker 1: had publicly twenty teams that have wanted to relocate here 442 00:25:43,440 --> 00:25:47,200 Speaker 1: and nobody's gotten it done. And then finally this became 443 00:25:47,240 --> 00:25:50,480 Speaker 1: a reality and people say, wow, it really is going 444 00:25:50,520 --> 00:25:53,080 Speaker 1: to happen. But there were a lot of skeptics early 445 00:25:53,119 --> 00:25:56,199 Speaker 1: on because everybody was gunshine. They never thought that this 446 00:25:56,240 --> 00:25:58,120 Speaker 1: would happen. But then all of a sudden, not only 447 00:25:58,119 --> 00:26:02,320 Speaker 1: did it happen once boom, lightning strikes twice. Here come 448 00:26:02,400 --> 00:26:06,280 Speaker 1: the Raiders. Is the NFL in town good for the 449 00:26:06,359 --> 00:26:08,720 Speaker 1: Vegas Golden Knights? Bad for the Knights? And that you're 450 00:26:08,720 --> 00:26:12,160 Speaker 1: competing with another entity? Is only so much sponsorship, so 451 00:26:12,200 --> 00:26:16,320 Speaker 1: many disposable dollars? So is that good or would you 452 00:26:16,440 --> 00:26:18,560 Speaker 1: rather have the market all to yourself. We love the 453 00:26:18,640 --> 00:26:21,119 Speaker 1: Raiders and Mark Davis is a good friend of mine. 454 00:26:21,560 --> 00:26:25,320 Speaker 1: He's gonna bring another element here. I mean this, this, 455 00:26:25,320 --> 00:26:29,199 Speaker 1: this town is gonna explode. Las Vegas has everything, but 456 00:26:29,240 --> 00:26:32,119 Speaker 1: it really has nothing if it doesn't have sport. And 457 00:26:32,200 --> 00:26:34,800 Speaker 1: now with the Raiders coming here and the Golden Nights 458 00:26:35,160 --> 00:26:37,960 Speaker 1: manage that they can coexist. I mean you look at Buffalo. 459 00:26:38,080 --> 00:26:40,199 Speaker 1: You have the Bills and the Savers, they co exist. 460 00:26:40,240 --> 00:26:43,439 Speaker 1: They both sell out. You know, we play a different 461 00:26:43,440 --> 00:26:46,640 Speaker 1: time than the football does, and I think there's enough 462 00:26:46,680 --> 00:26:49,199 Speaker 1: for everybody. What sorts of things can you do together? 463 00:26:49,359 --> 00:26:51,639 Speaker 1: If anything, there's not a lot you can do, you know, 464 00:26:51,680 --> 00:26:55,840 Speaker 1: one sports team to another sports team, but maybe charitable 465 00:26:55,840 --> 00:26:58,600 Speaker 1: programs that are good for the community, for the youth. 466 00:26:58,920 --> 00:27:02,320 Speaker 1: The NHL wants to to focus on youth hockey and 467 00:27:02,359 --> 00:27:05,040 Speaker 1: building building more ice rinks in the in the in 468 00:27:05,040 --> 00:27:07,520 Speaker 1: the city, which is great for the youth. And then 469 00:27:07,560 --> 00:27:11,560 Speaker 1: I'm sure the NFL wants youth program So maybe there's 470 00:27:11,600 --> 00:27:14,240 Speaker 1: something that they can do together. Were you at all 471 00:27:14,280 --> 00:27:17,639 Speaker 1: taken aback by the price tag that Gary Bettman had 472 00:27:17,680 --> 00:27:21,520 Speaker 1: set for this franchise five hundred million dollars for an 473 00:27:21,600 --> 00:27:24,240 Speaker 1: NHL team, You chuckle, But at some point you have 474 00:27:24,320 --> 00:27:27,080 Speaker 1: to fork over some cash because Gary's world. We're just 475 00:27:27,119 --> 00:27:29,800 Speaker 1: living in it. Yeah, but the other owners shared. I 476 00:27:29,840 --> 00:27:31,639 Speaker 1: understand why the other owners, they probably loved it. It It 477 00:27:31,720 --> 00:27:34,199 Speaker 1: goes right in their pockets. Sports is what it is. 478 00:27:34,280 --> 00:27:36,520 Speaker 1: I mean, it's it's it's gone up so dramatically. We 479 00:27:36,600 --> 00:27:39,760 Speaker 1: sold the King's you know, for close to six hundred million, 480 00:27:40,440 --> 00:27:43,040 Speaker 1: and then the Bomber paid two billion for the Clippers. 481 00:27:43,119 --> 00:27:46,320 Speaker 1: I mean, the prices just went through the roof. It's 482 00:27:46,320 --> 00:27:49,479 Speaker 1: just sports, and they always seem to go up no 483 00:27:49,520 --> 00:27:52,080 Speaker 1: matter of economies and crisis of the economy. Is great. 484 00:27:52,240 --> 00:27:54,680 Speaker 1: The sports franchise always seemed to go up every time 485 00:27:54,680 --> 00:27:57,440 Speaker 1: we went looking for a franchise to buy. Every year 486 00:27:57,480 --> 00:27:59,760 Speaker 1: that we waited, the price went up. So it's just 487 00:28:00,040 --> 00:28:02,960 Speaker 1: it's crazy, but that's what it is. What do you 488 00:28:03,000 --> 00:28:05,320 Speaker 1: find is the demographic of your customers so far? What's 489 00:28:05,320 --> 00:28:07,960 Speaker 1: the age as it's skew younger or not. It's a 490 00:28:08,040 --> 00:28:11,760 Speaker 1: little younger, but not really something that's kind of funny. 491 00:28:11,800 --> 00:28:13,760 Speaker 1: I think. I think you have a big majority of 492 00:28:13,760 --> 00:28:16,320 Speaker 1: our season ticket holders I have never even seen a 493 00:28:16,359 --> 00:28:20,080 Speaker 1: hockey game. You remember where we're in Las Vegas. There's 494 00:28:20,160 --> 00:28:23,359 Speaker 1: been exhibition games here, but a lot of them have 495 00:28:23,480 --> 00:28:26,320 Speaker 1: really never seen a hockey game. They bought season tickets, 496 00:28:26,359 --> 00:28:28,320 Speaker 1: but they're they're just they want to be a part 497 00:28:28,359 --> 00:28:30,560 Speaker 1: of something, and they want to be a part of history, 498 00:28:30,560 --> 00:28:32,560 Speaker 1: and they want to be a part of what's happening here, 499 00:28:32,600 --> 00:28:35,879 Speaker 1: and it's really very exciting. One question for you on 500 00:28:36,000 --> 00:28:39,520 Speaker 1: Bill Foley, you're managing partner. He opened some eyebrows when 501 00:28:39,560 --> 00:28:42,080 Speaker 1: talking about the Raiders. He said he didn't think it 502 00:28:42,120 --> 00:28:45,000 Speaker 1: was a wise move to spend public money seven and 503 00:28:45,040 --> 00:28:48,080 Speaker 1: fifty million dollars of it on a sports team, on 504 00:28:48,240 --> 00:28:49,880 Speaker 1: a building He could have gone to other things like 505 00:28:49,920 --> 00:28:53,400 Speaker 1: teachers and firefighters. What are your thoughts on public money 506 00:28:53,760 --> 00:28:57,320 Speaker 1: being used for sports venues? Public money is is good 507 00:28:57,440 --> 00:28:59,840 Speaker 1: for stadiums and arenas. We've always been an advocate for 508 00:29:00,000 --> 00:29:03,520 Speaker 1: public public private partnership. I think the private sector has 509 00:29:03,560 --> 00:29:05,120 Speaker 1: to put in money, and I think the public has 510 00:29:05,240 --> 00:29:07,440 Speaker 1: to put in money. Remember when the team comes to 511 00:29:07,560 --> 00:29:10,880 Speaker 1: the city, it's really the community that takes ownership of 512 00:29:10,920 --> 00:29:14,000 Speaker 1: the team. So everybody's a part of it, and everybody 513 00:29:14,040 --> 00:29:17,000 Speaker 1: wants to share in it. And I that's where I disagree. 514 00:29:17,320 --> 00:29:19,880 Speaker 1: You stocked this team with what's called an expansion draft, 515 00:29:19,920 --> 00:29:22,200 Speaker 1: so all the current teams will leave a certain number 516 00:29:22,200 --> 00:29:26,400 Speaker 1: of players available to the Golden Knights. How good can 517 00:29:26,440 --> 00:29:29,720 Speaker 1: you be and how fast will that come about? Who knows? 518 00:29:29,920 --> 00:29:33,280 Speaker 1: But George McFee that the g M. He's he's really 519 00:29:33,480 --> 00:29:36,000 Speaker 1: very knowledgeable and he's got a lot of experience the 520 00:29:36,120 --> 00:29:40,160 Speaker 1: Capitals for many years. Who knows, but he should put 521 00:29:40,200 --> 00:29:42,720 Speaker 1: together a great team. I mean it'll take time, just 522 00:29:42,760 --> 00:29:45,960 Speaker 1: like anything else. Any expansion team takes time. You just 523 00:29:46,000 --> 00:29:48,920 Speaker 1: don't come start to win right right off the bat. 524 00:29:49,200 --> 00:29:51,120 Speaker 1: I mean, it'd be great if we won, but it's 525 00:29:51,480 --> 00:29:54,680 Speaker 1: probably not reality. And we know great team on the 526 00:29:54,800 --> 00:29:56,960 Speaker 1: on the ice requires a great team off the ice. 527 00:29:57,000 --> 00:29:58,840 Speaker 1: What does your ownership group look like? We know about 528 00:29:58,840 --> 00:30:01,880 Speaker 1: Bill follow we know about them. Loop's who else possible 529 00:30:01,880 --> 00:30:05,560 Speaker 1: investors in this franchise, because putting that team together matters 530 00:30:05,600 --> 00:30:09,680 Speaker 1: as well. Bill's put together really great organization. He's got 531 00:30:09,720 --> 00:30:12,760 Speaker 1: the experts, He's brought in the best people. Sports is 532 00:30:12,800 --> 00:30:15,240 Speaker 1: a different business. It's like not it's not like any 533 00:30:15,240 --> 00:30:18,240 Speaker 1: other regular business. So he's put together a heck of 534 00:30:18,240 --> 00:30:21,400 Speaker 1: a team with great experts and looking forward to it. 535 00:30:21,480 --> 00:30:23,360 Speaker 1: Thanks Gavin, I appreciate you taking the time. Thank you, 536 00:30:23,400 --> 00:30:25,960 Speaker 1: Scott Our. Thanks to Gavin Malouf, one of the owners 537 00:30:26,080 --> 00:30:29,480 Speaker 1: of the NHL's Vegas Golden Knights, and attorney Jeffrey Kessler 538 00:30:29,520 --> 00:30:32,080 Speaker 1: of Winston and Strong. And that wraps up this week's 539 00:30:32,160 --> 00:30:35,800 Speaker 1: edition of Bloomberg Business of Sports on Bloomberg Radio around 540 00:30:35,800 --> 00:30:38,480 Speaker 1: the world. We are here each and every week at 541 00:30:38,480 --> 00:30:42,000 Speaker 1: the same time, exploring the world of money and sports. 542 00:30:42,280 --> 00:30:44,719 Speaker 1: Michael Baum and I'm Scott Sashnik. Thanks for joining us. 543 00:30:44,720 --> 00:30:46,760 Speaker 1: Please tune in next week when we speak on the 544 00:30:46,800 --> 00:30:47,640 Speaker 1: Business of Sports.