Speaker 1: This is Bloomberg Business Week with Carol Masser and Jason
Speaker 1: Kelly on Bloomberg Radio. So excited about our next guest.
Speaker 1: He's an old pal of mind known well to you
Speaker 1: as well, Alex Steele, talking about George Pine, founder and
Speaker 1: CEO Bruin Sports Capital, joining us on the phone from Connecticut.
Speaker 1: And what a week, What a time to be talking
Speaker 1: about sports and business. First of all, g P, how
Speaker 1: are you do great? Jason, Thanks for having me all.
Speaker 1: It's good to good to connect. Thank you so much
Speaker 1: for the opportunity. It's really nice to hear your voice.
Speaker 1: So what a time that we're living in when it
Speaker 1: comes to sports, as I said, and especially good to
Speaker 1: talk to you after last week where I feel like
Speaker 1: we have thrown around the word unprecedented a lot in
Speaker 1: these pandemic times, but I've never seen anything like last week.
Speaker 1: I don't think you have either when it comes to sports.
Speaker 1: Just stopping, what did you make of it? Well, you know,
Speaker 1: I think it's positive as you have players and people
Speaker 1: that I really want to see positive change, better things
Speaker 1: for the country, and believe strongly in social justice. And
Speaker 1: I think people you know, stood up for what they
Speaker 1: believe and so I think fundamentally it's a really good thing.
Speaker 1: It's kind of refreshing, and you know, you're seeing in
Speaker 1: the case of these athletes really taking a stand on
Speaker 1: something they believe is a real moral issue. Um, they
Speaker 1: don't have to, that's there, that's not their responsibility, but
Speaker 1: they as as citizens really standing up for something they
Speaker 1: really believe in. So I I think it's fundamentally a
Speaker 1: good thing. Why hasn't it something like this happened before? Well,
Speaker 1: I think it's an evilution. I think it's an evolution.
Speaker 1: I think also to watching what's happened, you know, on
Speaker 1: on TV through social media, it's just so disturbing that
Speaker 1: I think it's brought a real more emphasis to an
Speaker 1: issue that we all know. It's been there a long time,
Speaker 1: but you's key, it's just to watch you to say,
Speaker 1: is visceral for so many people. So I think I
Speaker 1: think it's a a good thing. And of course you've
Speaker 1: had if you think back, I mean, I think these
Speaker 1: moments also make you think about people like Bill Russell,
Speaker 1: or Muhammad Ali or Jesse o Ands or Jackie Robinson,
Speaker 1: and just the things that they did and the challenges
Speaker 1: they must have faced. It just really makes you appreciate them,
Speaker 1: I think a little bit more today as well. So
Speaker 1: I guess sports has always been a platform for some change,
Speaker 1: but I think now you're seeing it being used in
Speaker 1: a more universal way, and I think a very constructive way. Well.
Speaker 1: And it's interesting, George, to think about how sports are
Speaker 1: being played right now. And I was speaking with somebody
Speaker 1: earlier in the sports world today and they were saying
Speaker 1: that the power is in part owing to the concentration
Speaker 1: of athletes and the focus to some extent, I mean
Speaker 1: this notion that just taking the NBA for a second,
Speaker 1: that all of these players, all of these teams, you know,
Speaker 1: the majority, not every team and not every player, but
Speaker 1: the majority were in one place and able to get
Speaker 1: together in one room and and make decisions. So the
Speaker 1: moment in some ways has met them. And all of
Speaker 1: this is sort of coming together, this nexus of the
Speaker 1: of the pandemic, as well as facing down structural racism,
Speaker 1: some of it in it in an almost perverse way,
Speaker 1: has been made possible by the pandemic. Well, the fact
Speaker 1: that the players were together it probably did make it
Speaker 1: that much easier for them to act. I think the
Speaker 1: other kind of inspiring moment and all this is all
Speaker 1: the other sports that that joined in that weren't that
Speaker 1: weren't in one location, and and you know, almost universally
Speaker 1: professional sports and college sports, you know, stood together and
Speaker 1: made it made a statement. So I think, you know,
Speaker 1: it's inspiring. I think it's a good thing. And uh,
Speaker 1: you know, hopefully, you know, better things will come. I mean,
Speaker 1: sports is not the panacy and to solve all problem,
Speaker 1: but it is a platform. And uh, and people can't
Speaker 1: make a positive contribution to hopefully moving things forward in
Speaker 1: a constructive fashion. Um broughting it out a little bit
Speaker 1: just to talk about playing sports? Um, what kind of
Speaker 1: sports are we gonna keep playing? Like? Are we gonna
Speaker 1: get used to? Oh, a bunch of these players got
Speaker 1: to got tested and therefore we're gonna stop games for
Speaker 1: about a week and then we'll pick it back up.
Speaker 1: Like is that going to be the new normal for
Speaker 1: sports now? Too? Well? I think so. I mean, as
Speaker 1: long as you're living in the pandemic, you know, anything's possible.
Speaker 1: I think when you look at it on balance, it's
Speaker 1: been amazingly done well. I mean the NHL has had
Speaker 1: zero positive tests, hasn't canceled a contest. I mean NBA
Speaker 1: hasn't canceled a contest and has had very few positive tests.
Speaker 1: You know, NASCAR's gone off well, PGA Tour, you know,
Speaker 1: the National Women's Soccer League did really well and had
Speaker 1: a really good TV ratings. The only sports it's had
Speaker 1: a real, a real challenge has been baseball, where they
Speaker 1: don't haven't played in the bubble, but even there they've
Speaker 1: played the most games they've had a canceled, you know,
Speaker 1: thirty five or forty games. But still I think I've
Speaker 1: executed it safely and done really well. And you know,
Speaker 1: the other other areas that have to get a lot
Speaker 1: of coverage. You know, there's about seventy five college football
Speaker 1: teams that have gone through a preseason and prior to
Speaker 1: that train for eight or nine weeks and have done that,
Speaker 1: you know, pretty safely. And that's consistent with what we're
Speaker 1: seeing around the world. People are playing rugby, they're playing soccer,
Speaker 1: and it's being played safely, and so, you know, so far,
Speaker 1: so good. But in this world, in this day and age,
Speaker 1: you know, I suppose anything is possible well, and economics
Speaker 1: have driven some of that, whether we like it or not. George,
Speaker 1: and this is something you and I caught up on
Speaker 1: earlier this summer, right as we were getting into it,
Speaker 1: and you were giving me some statistics then about the
Speaker 1: economic impact taking college football specifically that those teams and
Speaker 1: those programs have on their local markets. So part of
Speaker 1: this is an economic recovery story, as much as people
Speaker 1: wanting sports to come back because they like them. Yeah,
Speaker 1: well it's a I think it's gonna be devastating what
Speaker 1: happens here. I mean to take Tuscalosk, Alabama, whether Alabama
Speaker 1: plays are not this year, the economic impact for one
Speaker 1: games about twenty million dollars of games six animal million.
Speaker 1: And but you put that out to Madison, Wisconsin, Columbus, Ohio,
Speaker 1: and Knoxville, Tennessee, Autons, Georgia, and you know, communities are
Speaker 1: really depending on these games take place. They're not gonna
Speaker 1: if they take place, there's not gonna be anywhere near
Speaker 1: the fans. And not to mention, you know, the game
Speaker 1: day revenue, uh, you know includes people that sell tickets, security,
Speaker 1: people that provide concessions, service industries. All those industries are
Speaker 1: getting people losing jobs, are being furloughed. You know, it's
Speaker 1: really gonna be very quite challenging and it's gonna be challenging,
Speaker 1: not just this year. I mean, best I can tell,
Speaker 1: I think about it every day. I think the first
Speaker 1: half of next year for a lot anything live events
Speaker 1: is going to be very difficult. And I think all
Speaker 1: of a sudden, when you say let's go back to
Speaker 1: live events, I don't think everyone's running back is going
Speaker 1: to be very challenged and probably two and you hope
Speaker 1: that you come out of it. Also, at a time
Speaker 1: when your revenues are going down. I remember sweet sales, sponsorship, hospitality,
Speaker 1: taking these consumer products. When those are all going down,
Speaker 1: your costs to run these events are going to go
Speaker 1: up because you have to create a safer environment. So, George,
Speaker 1: you know, one of the interesting things since you and
Speaker 1: I last talked is sports are back, and they're being
Speaker 1: played in a very different way as we were discussing
Speaker 1: at the top of the conversation. But people are watching it.
Speaker 1: I think many people agree, especially when it comes to
Speaker 1: the NBA, it's a pretty good product. What have we
Speaker 1: learned about consumption and media and how does that become
Speaker 1: investable for someone like you, Well, I think what you're
Speaker 1: learning is that, you know, boy, it's a strong television product.
Speaker 1: I think, you know, going into the pandemic, sports was
Speaker 1: eight eight or eighty nine of the top hundred programs
Speaker 1: on television and you know that hasn't changed here and
Speaker 1: and and on top of it, I mean you have
Speaker 1: sports on top of sports, on top of sports, and
Speaker 1: they're all their ratings are up, so they're getting strong ratings.
Speaker 1: So I think, you know, long term, it's a great sector.
Speaker 1: And for us, the things that we see that you know,
Speaker 1: we have a number of we operating thirty countries and
Speaker 1: you know what we're seeing is that you're streaming data, design,
Speaker 1: things around digital are really accelerating and doing well. So
Speaker 1: you know, and that's not surprising. And you know, again,
Speaker 1: I think even the live event space will I mentioned
Speaker 1: it's gonna be very difficult. I think there'll be reinvenged opportunities.
Speaker 1: You know, one interesting thing I think is what ted
Speaker 1: Leces is doing and DC. I think, you know, gambling
Speaker 1: and arenas are gonna be places where you're gonna go
Speaker 1: with your friends to place bets and probably gamble on game,
Speaker 1: not just one game, but a number of games. I mean,
Speaker 1: you say, Yankee Stadium, you'll go take your buddies and
Speaker 1: go to watch a game. I'm one place bets maybe
Speaker 1: when the game's not playing, and maybe even when there's
Speaker 1: not a baseball season. So I think I think you're
Speaker 1: gonna see growth in all of those areas in the future,
Speaker 1: but the next a couple of years and be a
Speaker 1: little chopped in terms of just financially, to be a
Speaker 1: lot of pressure on teams and leagues and federations and
Speaker 1: in the companies around them. So there's sort of two
Speaker 1: parts of that, and one is like the ancillery businesses
Speaker 1: that exist now that are going to be struggling versus
Speaker 1: the new ancillary businesses that are up and coming. UM,
Speaker 1: talk to me about the former and what kind of
Speaker 1: opportunities you see there. Well for us, so we we've
Speaker 1: we've invested in data, so we're at data analytics. I
Speaker 1: think the way sponsorship is going to change UM streaming
Speaker 1: and technology are areas. And one of the companies we
Speaker 1: have a design company. While I was like, why is
Speaker 1: design doing so well? But in the digital world, design
Speaker 1: is more important. So I think all things did jell,
Speaker 1: all things gaming. I think those are really going to
Speaker 1: be strong irrespective of the pandemic and are really unaffected
Speaker 1: by the pandemic. And then, like you said, Alex, there
Speaker 1: will be new companies coming along that will be able
Speaker 1: to take advantage of live events or established companies that
Speaker 1: are as part of their return, they're going to have
Speaker 1: to adjust to new opportunities in the world. So George
Speaker 1: talked to us about the racing world, because it's when
Speaker 1: you're very familiar with having helped run NASCAR, and you
Speaker 1: have gotten involved on a founding level with the Superstar
Speaker 1: Racing experience that's gonna launch next year, I believe. But
Speaker 1: you just announced it in the last couple of months
Speaker 1: and last month or so. Tell us what that is
Speaker 1: and what the idea underneath it is. Well, the we're
Speaker 1: launching next summer on National TV on CBS on the
Speaker 1: major network, prime times in the summertime. We're doing in
Speaker 1: partnership with Tony Stewart was a Hall of Fame race
Speaker 1: car driver, and Aberdeen was a Hall of Fame crew
Speaker 1: chief and really the smartest guy when it comes to
Speaker 1: cars I've ever met. He was Jeff Gordon street chief
Speaker 1: when he won all the championships. And another gentleman, Sandy
Speaker 1: montagu who was a partner of mine, and uh, you
Speaker 1: know what we're trying to do is bring racing back
Speaker 1: to where the fans are kind of in the heartland.
Speaker 1: So we're going to short tracks, seats will sell them out,
Speaker 1: and gonna have a new form of racing meaning what
Speaker 1: we're we're bringing the car so the no car owners,
Speaker 1: it's gonna be close, it's going to be on the driver,
Speaker 1: and it's gonna be with recognizable guys champions that have
Speaker 1: won championship before competing. So it'll be kind of fun.
Speaker 1: It'll be new and innovative. It'll be short an hour
Speaker 1: racing now and fifteen minutes close competitive with deeply you
Speaker 1: recognized on national TV. Will be a lot of fun. Um.
Speaker 1: It's been well received by the racing fans who want
Speaker 1: to watch races on the driver's skill and not technology.
Speaker 1: And again we're bringing it, you know, really to the
Speaker 1: C and D counties, you know where the fans are.
Speaker 1: So we had a lot of fun with it. It's
Speaker 1: fun for me, you know, to go back and work
Speaker 1: with Ray Abraham and Tony Stewart who I cut my
Speaker 1: cheek with over over twenty years ago. And in terms
Speaker 1: of then how you so is it just live like
Speaker 1: is it streaming? Like what's the relationship between giving those
Speaker 1: events to the fans versus the streaming capabilities. Well, well
Speaker 1: you can do you know, with this, you can do
Speaker 1: so much. So this will be live on CBS, will
Speaker 1: also streaming outside the US on Facebook. But also there's
Speaker 1: so many stories you can tell um digitally through just
Speaker 1: you know, non live content, building a car, talking to
Speaker 1: old race car drivers, and you can do that really
Speaker 1: in any sports. So I think, you know, the future
Speaker 1: of the world there is going to be you know,
Speaker 1: streaming people consuming content on other devices and also different
Speaker 1: short format content in addition to the live games. Yeah,
Speaker 1: it's so interesting to to think about that. I feel
Speaker 1: like we've learned so much about content in this pandemic
Speaker 1: and Alex you and I joke about like we'll go
Speaker 1: down a rabbit hole, you know, both like learn think
Speaker 1: about something. And there's so much out there that people
Speaker 1: want to get smarter, like the Olympic packages when they're like,
Speaker 1: let me tell you about this art, this athlete that
Speaker 1: then it makes you want to cry. Yeah, exactly, exactly.
Speaker 1: All right, great to catch up with George Pine, founder
Speaker 1: and CEO of Bruin Sports Capital Jonius on the phone
Speaker 1: from Connecticut,