1 00:00:00,480 --> 00:00:04,240 Speaker 1: This is Bloomberg Business of Sports. The cold heart truth 2 00:00:04,280 --> 00:00:08,000 Speaker 1: about the Olympic journey is not really been financially incentivized 3 00:00:08,039 --> 00:00:10,480 Speaker 1: in the same way that many of the professional sports are. 4 00:00:10,560 --> 00:00:13,880 Speaker 1: But this is a basketball involved nb A, Lilivills are 5 00:00:14,000 --> 00:00:17,079 Speaker 1: licensing arm things for fifty All of those things will 6 00:00:17,160 --> 00:00:19,840 Speaker 1: make up what that looks like money in sports. It's 7 00:00:19,880 --> 00:00:22,160 Speaker 1: one of the reasons why I enjoy doing on Money 8 00:00:22,200 --> 00:00:24,320 Speaker 1: Night Countdown. Let's talk about some of the more interesting 9 00:00:24,360 --> 00:00:28,000 Speaker 1: aspects of business of sports. When you're talking sports, discipline 10 00:00:28,120 --> 00:00:31,320 Speaker 1: is the bridge from being good to ultimately being great 11 00:00:31,360 --> 00:00:33,440 Speaker 1: at whatever it is that you're trying to be your 12 00:00:33,440 --> 00:00:37,840 Speaker 1: accomplished as your profession. Bloomberg Business of Sports from Bloomberg Radio. 13 00:00:39,120 --> 00:00:41,559 Speaker 1: This is the Bloomberg Business of Sports show where we 14 00:00:41,640 --> 00:00:44,520 Speaker 1: explore the big old money issues in the world of sports. 15 00:00:44,560 --> 00:00:48,279 Speaker 1: I'm like, I'm Scarlett Poo and I'm Demien Sasser. That's right, 16 00:00:48,680 --> 00:00:52,919 Speaker 1: that's our special guest host from Bloomberg Intelligence. And if 17 00:00:52,960 --> 00:00:55,640 Speaker 1: we had an applause button, we'd play it right now. 18 00:00:56,040 --> 00:01:00,360 Speaker 1: I'll do it. Thank you, Damien. Coming up today chat 19 00:01:00,400 --> 00:01:02,960 Speaker 1: with Bill mulvill Hill, Senior Vice president of US Bank 20 00:01:03,000 --> 00:01:06,360 Speaker 1: Sports and entertainment group that is straight ahead on the 21 00:01:06,360 --> 00:01:09,240 Speaker 1: Bloomberg Business of Sports show. But first let's look at 22 00:01:09,280 --> 00:01:12,200 Speaker 1: some of the top sports stories making headlines this week. 23 00:01:12,880 --> 00:01:17,800 Speaker 1: This one is emotional to me. Gang Ukraine. They are 24 00:01:17,880 --> 00:01:22,040 Speaker 1: a win away from going to World Cup Cup competition 25 00:01:22,480 --> 00:01:25,839 Speaker 1: because they beat Scotland and now I think they're playing 26 00:01:25,880 --> 00:01:28,959 Speaker 1: Whales now. And this is emotional if you've seen the 27 00:01:29,000 --> 00:01:33,240 Speaker 1: clips of them winning, just to see the fans say, hey, 28 00:01:33,280 --> 00:01:36,600 Speaker 1: we got a little joy here. Going through all the 29 00:01:36,600 --> 00:01:39,600 Speaker 1: stuff that they're going through, scar it really is amazing. 30 00:01:39,880 --> 00:01:42,560 Speaker 1: I mean, the world is rooting for Ukraine to advance 31 00:01:42,600 --> 00:01:45,480 Speaker 1: to the World Cup. Of course, what I find fascinating 32 00:01:45,520 --> 00:01:48,200 Speaker 1: with all of this is everyone's lives was disrupted. They 33 00:01:48,200 --> 00:01:50,920 Speaker 1: had not kicked up ball since December because of Russia's 34 00:01:50,920 --> 00:01:54,480 Speaker 1: invasion of Ukraine, and that halted the resumption of league 35 00:01:54,480 --> 00:01:57,840 Speaker 1: football following you know, the regular winter shutdown. Um, the 36 00:01:57,920 --> 00:02:01,160 Speaker 1: players went from training at their clubs to sheltering in 37 00:02:01,240 --> 00:02:05,120 Speaker 1: basements with their families. So you know, they've gone through 38 00:02:06,240 --> 00:02:08,640 Speaker 1: having in hell to get to this point, and it 39 00:02:08,760 --> 00:02:11,520 Speaker 1: is incredible that they're on the cusp of of making 40 00:02:11,520 --> 00:02:13,959 Speaker 1: the World Cup. Yeah, Scarlett, I think they had to 41 00:02:13,960 --> 00:02:16,480 Speaker 1: spend a month training in Slovenia, you know, and now 42 00:02:16,560 --> 00:02:19,200 Speaker 1: they're ninety minutes away from you know, from from qualifying 43 00:02:19,200 --> 00:02:20,960 Speaker 1: for the World Cup. And look, I mean, if they 44 00:02:21,040 --> 00:02:22,920 Speaker 1: do make it, here's the interesting thing. They'll be in 45 00:02:22,960 --> 00:02:26,680 Speaker 1: Group B, alongside England, Iran and of course the United States. 46 00:02:26,760 --> 00:02:30,079 Speaker 1: So we'll see who we're rooting for World Cup time. 47 00:02:30,400 --> 00:02:34,400 Speaker 1: What's amazing about sports? And this is something that yes, 48 00:02:35,280 --> 00:02:38,440 Speaker 1: sports is a business, but there's a reason why. You 49 00:02:39,080 --> 00:02:41,880 Speaker 1: you hear the fans cheering at a baseball game, you 50 00:02:41,919 --> 00:02:44,480 Speaker 1: hear the fans cheering at a football game, you hear 51 00:02:44,520 --> 00:02:49,360 Speaker 1: the fans cheering wherever your favorite what your favorite sport is, 52 00:02:49,400 --> 00:02:53,000 Speaker 1: whatever is because it is a release you. You're you're 53 00:02:53,080 --> 00:02:56,280 Speaker 1: rooting for your city, You're rooting for your home team. 54 00:02:56,360 --> 00:03:00,720 Speaker 1: And if you are Ukraine, the fans there you just 55 00:03:00,800 --> 00:03:03,720 Speaker 1: want to escape, just for a moment of all the 56 00:03:03,919 --> 00:03:08,640 Speaker 1: terror that's going through there. So salute to to Ukraine, 57 00:03:09,040 --> 00:03:12,359 Speaker 1: tip my hat to you. I hope you guys advance 58 00:03:12,480 --> 00:03:16,240 Speaker 1: at no offense to Whales, but I just that's a 59 00:03:16,280 --> 00:03:21,880 Speaker 1: team that deserves Moving right along, let's talk about Lamarn James. 60 00:03:22,440 --> 00:03:30,240 Speaker 1: Lamarn James reaches a significant net Worth milestone Lebron James. Yes, 61 00:03:30,320 --> 00:03:33,840 Speaker 1: he is at a successful career. James net Worth comes 62 00:03:33,840 --> 00:03:37,800 Speaker 1: in a variety of investments. And uh, if this wasn't 63 00:03:37,800 --> 00:03:41,120 Speaker 1: a topic, I'd used this as the number of the 64 00:03:41,160 --> 00:03:48,080 Speaker 1: week by Reports, three hundred million dollars in the spring 65 00:03:48,200 --> 00:03:52,680 Speaker 1: Hill Company, which holds three of james companies into one. 66 00:03:52,760 --> 00:03:55,920 Speaker 1: Scar Yeah, and the milestone you're talking about here is 67 00:03:55,960 --> 00:03:59,600 Speaker 1: that he's officially become the first ever billionaire NBA player. 68 00:04:00,440 --> 00:04:02,400 Speaker 1: I was kind of surprised because I thought he already 69 00:04:02,560 --> 00:04:06,040 Speaker 1: was a billionaire. You know, I have to agree with you, Scarlett. 70 00:04:06,080 --> 00:04:07,440 Speaker 1: I mean I'm kind of surprised. I mean that's a 71 00:04:07,440 --> 00:04:09,320 Speaker 1: little number for me. I mean, the man has his 72 00:04:09,400 --> 00:04:13,120 Speaker 1: fingers into everything, and he's still relatively young in his career. 73 00:04:13,160 --> 00:04:15,200 Speaker 1: I think he's got a number of years left, so 74 00:04:15,640 --> 00:04:18,120 Speaker 1: you know, I wouldn't count Mr James out. I think 75 00:04:18,160 --> 00:04:19,920 Speaker 1: we're going to be seeing him on the Forbes for 76 00:04:20,000 --> 00:04:21,960 Speaker 1: quite some time. Yeah, he's in the three Commic club. 77 00:04:22,000 --> 00:04:23,680 Speaker 1: He could very well be in the four Comma club. 78 00:04:23,720 --> 00:04:26,599 Speaker 1: If any of you has seen Silicon Valley in the 79 00:04:26,600 --> 00:04:30,400 Speaker 1: obsession with commas and zeros, well, keep in mind he's 80 00:04:30,440 --> 00:04:33,360 Speaker 1: been in place since eighteen years old, and he has 81 00:04:33,440 --> 00:04:38,640 Speaker 1: been managing his money well and I'm sure friendly yeah, 82 00:04:38,720 --> 00:04:41,560 Speaker 1: oh yeah, and that's that has played a role. And 83 00:04:42,240 --> 00:04:45,880 Speaker 1: he is I'm sure he's schooling his son. Well, it's like, alright, son, 84 00:04:45,960 --> 00:04:47,800 Speaker 1: this is how you do it when you want to 85 00:04:47,960 --> 00:04:50,320 Speaker 1: do your NBA career or wherever, which way you want 86 00:04:50,320 --> 00:04:55,240 Speaker 1: to go. I mean the Maron James, it has become 87 00:04:55,320 --> 00:04:59,800 Speaker 1: more now than just talent on the court. I mean, yes, 88 00:05:00,080 --> 00:05:02,640 Speaker 1: as a fan, we like we see the player this, 89 00:05:02,760 --> 00:05:07,800 Speaker 1: that whatever, But I love hearing the stories, the afterwards stories, Okay, 90 00:05:07,800 --> 00:05:11,719 Speaker 1: what is this athlete done to keep this going? And 91 00:05:11,720 --> 00:05:15,520 Speaker 1: and I'm I'm appreciative to hear stories like that. And 92 00:05:15,800 --> 00:05:20,880 Speaker 1: like Lebron, James more and Dominican Sue, they they financed 93 00:05:20,920 --> 00:05:24,359 Speaker 1: their money, well, they have the sports, that's their job. 94 00:05:24,880 --> 00:05:27,960 Speaker 1: And then they they show you how to invest there. 95 00:05:28,160 --> 00:05:31,440 Speaker 1: He was very strategic. He invested in Blaze um, a 96 00:05:31,480 --> 00:05:34,919 Speaker 1: pizza company, rather than McDonald's, which everyone knows. Uh. He 97 00:05:35,000 --> 00:05:37,640 Speaker 1: turned down deals with Reebok and Adidas UM as an 98 00:05:37,640 --> 00:05:41,039 Speaker 1: eighteen year old, and later on signed a lifetime deal 99 00:05:41,080 --> 00:05:43,640 Speaker 1: with Nike, and so he was very thoughtful about how 100 00:05:43,680 --> 00:05:47,120 Speaker 1: he moved forward with this incredibly so and I would 101 00:05:47,160 --> 00:05:48,880 Speaker 1: I'd really like to know, um, you know, if he 102 00:05:48,920 --> 00:05:51,600 Speaker 1: supports Joe Biden's tax plan, that's a big question for me. 103 00:05:51,760 --> 00:05:54,200 Speaker 1: I'm kidding now, He's look, I mean, Lebron James is 104 00:05:54,240 --> 00:05:56,520 Speaker 1: really I mean outstanding player. And again I think he's 105 00:05:56,520 --> 00:05:58,360 Speaker 1: got a number of years left and I mean he's 106 00:05:58,400 --> 00:06:00,720 Speaker 1: just now entering, you know, that phase in his career 107 00:06:00,720 --> 00:06:02,280 Speaker 1: where he's got all this money and he's got to 108 00:06:02,600 --> 00:06:04,040 Speaker 1: find a place to put it to work. And so 109 00:06:04,360 --> 00:06:06,440 Speaker 1: similar to other athletes like a ride, you know, I 110 00:06:06,480 --> 00:06:09,200 Speaker 1: expect to see good things in the future. Okay, I'm 111 00:06:09,200 --> 00:06:11,839 Speaker 1: gonna move the chair now over to the other side 112 00:06:11,839 --> 00:06:14,760 Speaker 1: of the room because this next topic, someone's gonna be 113 00:06:14,800 --> 00:06:17,560 Speaker 1: screaming at the top of the loans and probably just 114 00:06:17,680 --> 00:06:21,640 Speaker 1: throwing computers all over the place in celebration. Yes, the 115 00:06:21,839 --> 00:06:27,200 Speaker 1: Rangers there in the East Finals. Uh, they they looked 116 00:06:27,279 --> 00:06:30,080 Speaker 1: great against They looked great against the Lightning Woo, which 117 00:06:30,120 --> 00:06:33,120 Speaker 1: are the defending Stanley Cup champions, back to back champions, 118 00:06:33,120 --> 00:06:36,119 Speaker 1: no less. But the Lightning had nine days of rest 119 00:06:36,160 --> 00:06:39,400 Speaker 1: because they swept the floor to Panthers, and the Rangers 120 00:06:39,440 --> 00:06:44,200 Speaker 1: were coming off a seven game series against uh, the hurricane, 121 00:06:44,360 --> 00:06:47,480 Speaker 1: the Carolina Hurricane. So they had some momentum and they 122 00:06:47,560 --> 00:06:52,479 Speaker 1: definitely showed it beating the Tampa Bay Lightning resoundingly beating 123 00:06:52,480 --> 00:06:55,640 Speaker 1: them six to two. And of course they had home 124 00:06:55,880 --> 00:06:57,840 Speaker 1: ice advantage. I almost at home field, but they had 125 00:06:57,839 --> 00:06:59,760 Speaker 1: home ice advantage, so it is played at the Garden 126 00:06:59,800 --> 00:07:02,200 Speaker 1: to So I don't know if either of you watched 127 00:07:02,200 --> 00:07:06,479 Speaker 1: the game, but the garden crowd was getting kind of cocky. 128 00:07:06,680 --> 00:07:08,600 Speaker 1: Yeah no, I mean, look, you know, the reality is 129 00:07:08,640 --> 00:07:10,800 Speaker 1: they were sleepwalking, and they did have nine days off, 130 00:07:10,840 --> 00:07:13,000 Speaker 1: and you know you're gonna expect the better outing I 131 00:07:13,000 --> 00:07:15,400 Speaker 1: think next time around. But oh my god, twenty two 132 00:07:15,480 --> 00:07:17,720 Speaker 1: years old shit Will scored this pair of second period 133 00:07:17,720 --> 00:07:20,120 Speaker 1: of goals. I mean he was awesome. I mean, what 134 00:07:20,200 --> 00:07:22,080 Speaker 1: a young team. They played so well. I mean they 135 00:07:22,120 --> 00:07:24,760 Speaker 1: just looked quicker. I mean they moved to open space 136 00:07:24,840 --> 00:07:27,040 Speaker 1: so much better. And yeah, you know, I mean the 137 00:07:27,080 --> 00:07:29,960 Speaker 1: back the first matchup of those two goalies. I mean, 138 00:07:30,000 --> 00:07:33,080 Speaker 1: it was a deciding victory for for the range. Yes, 139 00:07:33,120 --> 00:07:35,800 Speaker 1: it was meant to be this goaltender duel, a goalie duel, 140 00:07:35,880 --> 00:07:37,560 Speaker 1: and it wasn't right. It turned out to be a 141 00:07:37,560 --> 00:07:40,520 Speaker 1: shootout with the score of six to two, which is incredible. Um. 142 00:07:40,640 --> 00:07:43,520 Speaker 1: I actually was curious about the financial impact of the 143 00:07:43,600 --> 00:07:46,680 Speaker 1: Rangers advancing to this point in the playoffs, and I 144 00:07:46,720 --> 00:07:49,600 Speaker 1: talked with an analyst at Jeffreys and they had put 145 00:07:49,600 --> 00:07:51,880 Speaker 1: out a note in early May saying that the management 146 00:07:51,960 --> 00:07:54,400 Speaker 1: of MSG Sports, which owns the New York Rangers and 147 00:07:54,440 --> 00:07:57,440 Speaker 1: the Knicks, noted that the economics of playoff games provide 148 00:07:57,480 --> 00:08:00,600 Speaker 1: a meaningful premium to regular games. The Knicks are not 149 00:08:00,640 --> 00:08:02,360 Speaker 1: in the playoffs, so we're really only talking about the 150 00:08:02,440 --> 00:08:05,080 Speaker 1: Rangers this year. And anyone who's gone to see a 151 00:08:05,120 --> 00:08:08,320 Speaker 1: playoff game knows that ticket prices go up with every 152 00:08:08,400 --> 00:08:11,680 Speaker 1: round that the team advances to. So using numbers from 153 00:08:11,720 --> 00:08:14,080 Speaker 1: the last time that the Rangers made the playoffs back in, 154 00:08:15,720 --> 00:08:19,880 Speaker 1: each home game at MSG should contribute an additional five 155 00:08:19,920 --> 00:08:22,760 Speaker 1: million dollars of revenue. This is not inflation adjusted, so 156 00:08:22,840 --> 00:08:26,120 Speaker 1: it's at least five million. So Damian and Michael Barr, 157 00:08:26,120 --> 00:08:28,480 Speaker 1: there have already been seven home games thus far, that's 158 00:08:28,520 --> 00:08:32,080 Speaker 1: thirty five million. Uh. Two games for sure in this 159 00:08:32,120 --> 00:08:35,120 Speaker 1: Eastern Conference round that's forty five million. That brings it 160 00:08:35,200 --> 00:08:37,720 Speaker 1: up to forty five if the Rangers end up playing 161 00:08:38,000 --> 00:08:42,800 Speaker 1: seven games against the Lightning. We're talking fifty million in revenue. 162 00:08:43,320 --> 00:08:46,800 Speaker 1: Most of that of course in ticket prices, but you 163 00:08:46,840 --> 00:08:49,720 Speaker 1: know there's also concession stand, sales and all that. And 164 00:08:49,760 --> 00:08:53,040 Speaker 1: those are the folks that I'm proud of because those 165 00:08:53,040 --> 00:08:57,679 Speaker 1: are the people that are they need that sports team 166 00:08:57,760 --> 00:08:59,960 Speaker 1: to be there to make the money, so they make 167 00:09:00,200 --> 00:09:03,800 Speaker 1: the concessions, the souvenirs. I mean, I can go on 168 00:09:03,880 --> 00:09:07,000 Speaker 1: and everyone is happy when you're seeing hockey in late 169 00:09:07,080 --> 00:09:12,800 Speaker 1: June's happy. I would say true that as my sons 170 00:09:12,840 --> 00:09:16,200 Speaker 1: would say, this program, it's all about the big money 171 00:09:16,200 --> 00:09:18,760 Speaker 1: issues and sports. And boy do we have a guest 172 00:09:18,840 --> 00:09:22,360 Speaker 1: that knows all the sports entertainment and finance. He is 173 00:09:22,480 --> 00:09:26,280 Speaker 1: Bill moubi Hill, the head of us Banks Sports and 174 00:09:26,440 --> 00:09:29,320 Speaker 1: Entertainment Group, and he's going to talk to us about 175 00:09:29,600 --> 00:09:31,800 Speaker 1: what he's keeping an eye on in the world of 176 00:09:31,840 --> 00:09:34,520 Speaker 1: sports finance. Bill, thank you for joining us on the 177 00:09:34,559 --> 00:09:37,240 Speaker 1: Bloomberg Business of Sports Show. Well, it's great to be 178 00:09:37,360 --> 00:09:40,480 Speaker 1: here and and I'm excited to speak to all three 179 00:09:40,520 --> 00:09:42,160 Speaker 1: of you this time. So it's great to be back 180 00:09:42,200 --> 00:09:44,720 Speaker 1: and looking forward to the conversation. Well, Bill, thank you, 181 00:09:44,800 --> 00:09:49,080 Speaker 1: and I guess the first question everybody's building build build, build, build, 182 00:09:49,080 --> 00:09:52,880 Speaker 1: built construction all over the place. Take us through that 183 00:09:52,960 --> 00:09:56,640 Speaker 1: about the high demand for new construction. Yeah, I think absolutely. 184 00:09:56,679 --> 00:10:00,600 Speaker 1: I think as sports team have really lives how to 185 00:10:00,679 --> 00:10:04,559 Speaker 1: maximize revenue from new construction and some of the major 186 00:10:04,600 --> 00:10:08,080 Speaker 1: renovations we've seen on stadiums and arenas, you're just seeing 187 00:10:08,080 --> 00:10:11,760 Speaker 1: pretty much every team contemplate that. And then certainly, I 188 00:10:11,800 --> 00:10:14,040 Speaker 1: think too, as we come out of COVID and seems 189 00:10:14,440 --> 00:10:17,760 Speaker 1: had to rethink how they present their product in person, 190 00:10:17,920 --> 00:10:20,839 Speaker 1: how their fans are going to want to experience the game. 191 00:10:21,440 --> 00:10:24,800 Speaker 1: It's just having It's just teams are are more focused 192 00:10:24,800 --> 00:10:29,160 Speaker 1: than ever in delivering that really unique live experience to 193 00:10:29,280 --> 00:10:31,600 Speaker 1: get the person to say, I'm going to get off 194 00:10:31,600 --> 00:10:33,920 Speaker 1: my couch to await from my big screen TV and 195 00:10:34,000 --> 00:10:36,640 Speaker 1: buy a ticket and go to this game. And so 196 00:10:36,679 --> 00:10:39,880 Speaker 1: it's certainly top of mind and and and all of 197 00:10:39,920 --> 00:10:44,000 Speaker 1: our clients. Can you talk us through how franchises make 198 00:10:44,080 --> 00:10:50,640 Speaker 1: the determination between renovating existing venues versus new construction. What 199 00:10:50,679 --> 00:10:52,880 Speaker 1: do you take them through in terms of thinking through 200 00:10:53,040 --> 00:10:56,760 Speaker 1: the different steps and the pros and cons. Yeah, sure, absolutely, 201 00:10:56,800 --> 00:11:00,520 Speaker 1: And I think those are those are the archetypes of 202 00:11:00,600 --> 00:11:03,240 Speaker 1: conversations that teams are having. I think one one thing 203 00:11:03,240 --> 00:11:06,280 Speaker 1: I note on on that topic is why we all 204 00:11:06,280 --> 00:11:09,520 Speaker 1: see the price of new constructions has really gone through 205 00:11:09,559 --> 00:11:13,360 Speaker 1: the roof, even certainly recently with some of inflation issues, 206 00:11:13,400 --> 00:11:16,280 Speaker 1: but even on a long term trend, that's been the 207 00:11:16,320 --> 00:11:18,800 Speaker 1: case over the last ten years. But also the cost 208 00:11:18,840 --> 00:11:21,480 Speaker 1: of renovations have gone through the roof, and so no 209 00:11:21,600 --> 00:11:25,320 Speaker 1: longer can you do the fifty million dollar redo to 210 00:11:25,320 --> 00:11:27,640 Speaker 1: to really change this the feel of your stadium. Those 211 00:11:27,640 --> 00:11:30,480 Speaker 1: costs are now six seven, eight hundred million dollars. And 212 00:11:30,520 --> 00:11:33,880 Speaker 1: so I think building a new stadium, I would say, 213 00:11:34,000 --> 00:11:38,360 Speaker 1: is more of a generational decision and um and really 214 00:11:38,400 --> 00:11:42,280 Speaker 1: franchise changing decision. And so I would say oftentimes when 215 00:11:42,320 --> 00:11:44,960 Speaker 1: we're talking to our clients that it's, hey, do we 216 00:11:45,000 --> 00:11:47,200 Speaker 1: want to do a renovation that maybe keeps us in 217 00:11:47,240 --> 00:11:50,960 Speaker 1: this building for five, six, ten, ten type years, or 218 00:11:51,000 --> 00:11:53,640 Speaker 1: do we want to really change the direction of our 219 00:11:53,679 --> 00:11:57,720 Speaker 1: franchise with an entirely new facility, maybe even in a 220 00:11:57,800 --> 00:12:02,400 Speaker 1: totally new location, which oftentimes brings up some um i'll 221 00:12:02,440 --> 00:12:07,200 Speaker 1: call political challenges of getting certain approvals for that. And 222 00:12:07,240 --> 00:12:10,839 Speaker 1: so obviously it goes without saying a these stadium is 223 00:12:10,840 --> 00:12:14,560 Speaker 1: is a much bigger and franchise altering conversation, and so 224 00:12:14,640 --> 00:12:17,640 Speaker 1: ofttimes we're just talking through with our clients. Is that 225 00:12:17,679 --> 00:12:19,600 Speaker 1: where they're at? Is that the decision they want to 226 00:12:19,600 --> 00:12:22,640 Speaker 1: make at this time or are there some choices that 227 00:12:22,800 --> 00:12:26,120 Speaker 1: just just change the field of their current stadium in 228 00:12:26,160 --> 00:12:28,640 Speaker 1: a way that still brings on some of the new 229 00:12:28,679 --> 00:12:32,560 Speaker 1: amenities that are fans really demand now but not have 230 00:12:32,720 --> 00:12:35,960 Speaker 1: to go through the franchimes altering process of building brand 231 00:12:35,960 --> 00:12:38,160 Speaker 1: new Let me just ask a quick follow up to that, 232 00:12:38,320 --> 00:12:41,520 Speaker 1: when there is a renovation, how long is that good for? 233 00:12:41,640 --> 00:12:44,720 Speaker 1: I mean, does that kind of settle things for ten years, 234 00:12:44,760 --> 00:12:48,200 Speaker 1: fifteen years, twenty years? Yeah, you know, I would say 235 00:12:48,240 --> 00:12:51,199 Speaker 1: maybe I think closer to maps of maybe ten years. 236 00:12:51,240 --> 00:12:55,400 Speaker 1: And with the caveat there Scarlett that, um, as we 237 00:12:55,440 --> 00:12:59,400 Speaker 1: all know, technology is changing so rapidly, and so I 238 00:12:59,440 --> 00:13:01,640 Speaker 1: certainly think one of the things people think about when 239 00:13:02,080 --> 00:13:05,360 Speaker 1: when they're asking them that theirselves, this question of how 240 00:13:05,400 --> 00:13:07,880 Speaker 1: long is this going to get us? Is really how 241 00:13:07,960 --> 00:13:10,880 Speaker 1: much do we trust what technology is going to be? 242 00:13:11,360 --> 00:13:14,120 Speaker 1: Certainly ten years for now, but even one year, three 243 00:13:14,200 --> 00:13:16,760 Speaker 1: years from now, um. And there's a lot of talk 244 00:13:16,840 --> 00:13:19,960 Speaker 1: with things like virtual reality and augmented reality that there's 245 00:13:20,000 --> 00:13:22,680 Speaker 1: going to do this new wave of technologies that come 246 00:13:22,720 --> 00:13:25,880 Speaker 1: to the game experience. And and so I think teams 247 00:13:25,880 --> 00:13:29,800 Speaker 1: are trying to think through as they think about these renovations, truly, 248 00:13:29,840 --> 00:13:32,120 Speaker 1: how long am I going to be getting or do 249 00:13:32,200 --> 00:13:35,120 Speaker 1: I need to build in some kind of refreshed concepts 250 00:13:35,120 --> 00:13:37,680 Speaker 1: where maybe it's not I do this and we do 251 00:13:37,760 --> 00:13:39,880 Speaker 1: another big one ten years from now. Maybe we need 252 00:13:39,920 --> 00:13:42,720 Speaker 1: to start thinking about every year a couple of years, 253 00:13:42,720 --> 00:13:45,480 Speaker 1: we're doing a refresh to really keep this this facility 254 00:13:45,520 --> 00:13:49,319 Speaker 1: state of the article. Now, Bill, you mentioned the word inflation, 255 00:13:49,559 --> 00:13:51,720 Speaker 1: you know, and the impact of inflation on your business 256 00:13:51,760 --> 00:13:54,720 Speaker 1: and what you're seeing on supply chain snarls on you know, 257 00:13:54,760 --> 00:13:57,599 Speaker 1: the impact of refinancing as interest rates go higher in 258 00:13:57,760 --> 00:14:00,280 Speaker 1: here in the US. How are pro sports for tries, 259 00:14:00,400 --> 00:14:06,200 Speaker 1: is how our stadium builds impacted by inflation? Yeah, what 260 00:14:06,200 --> 00:14:08,000 Speaker 1: I would say on that phone is we don't. I 261 00:14:08,040 --> 00:14:12,000 Speaker 1: wouldn't say we've seen them alter decisions, especially on the 262 00:14:12,320 --> 00:14:14,800 Speaker 1: very big decisions of are we build a new stadium 263 00:14:14,880 --> 00:14:17,319 Speaker 1: or a major renovation, because as I mentioned before, I 264 00:14:17,320 --> 00:14:20,320 Speaker 1: think those are really long term decisions and we don't 265 00:14:20,360 --> 00:14:24,359 Speaker 1: see they go no, go decision being impacted by inflation 266 00:14:24,480 --> 00:14:27,320 Speaker 1: or supply chain issues. But I think once that once 267 00:14:27,360 --> 00:14:30,280 Speaker 1: that decision has been made or were in the active 268 00:14:30,280 --> 00:14:34,960 Speaker 1: stage of construction, absolutely, especially some of the supply chain issues, 269 00:14:35,000 --> 00:14:38,320 Speaker 1: I would say almost more than inflation. Um I think 270 00:14:38,360 --> 00:14:41,320 Speaker 1: there's been a real challenge for certain facilities and they've 271 00:14:41,320 --> 00:14:43,120 Speaker 1: had to spend a lot of time making sure they 272 00:14:43,120 --> 00:14:45,040 Speaker 1: can get the steel and they need or whatever the 273 00:14:45,080 --> 00:14:49,200 Speaker 1: components they need, and have been very focused on on that, 274 00:14:49,280 --> 00:14:51,840 Speaker 1: and in some cases I think it could delay the 275 00:14:51,920 --> 00:14:55,600 Speaker 1: completion of projects um, given given some of the supply 276 00:14:55,680 --> 00:14:59,160 Speaker 1: chain issues on the inflation front, you know, obviously it 277 00:14:59,280 --> 00:15:03,120 Speaker 1: just raises the cost of of the project. And so 278 00:15:03,520 --> 00:15:06,200 Speaker 1: as we think about from our vantage from point of 279 00:15:06,280 --> 00:15:09,880 Speaker 1: view lending and providing capital inet of those facilities, oftentimes 280 00:15:09,960 --> 00:15:11,920 Speaker 1: it's we have to go back to the table and 281 00:15:11,960 --> 00:15:15,080 Speaker 1: maybe increase our facilities, or maybe there's more equity needed, 282 00:15:15,680 --> 00:15:18,800 Speaker 1: um whatever it might be your combination of But yeah, 283 00:15:19,200 --> 00:15:21,360 Speaker 1: I would say it's certainly an impact, but it's not 284 00:15:21,960 --> 00:15:25,480 Speaker 1: changing whether teams decide or just to do it or 285 00:15:25,520 --> 00:15:29,760 Speaker 1: to not do it, a rebuild or refresh. Got about 286 00:15:29,800 --> 00:15:32,680 Speaker 1: a few seconds here in this first segment, but I 287 00:15:32,720 --> 00:15:34,800 Speaker 1: just want to talk about your resume right quick. This 288 00:15:34,840 --> 00:15:38,160 Speaker 1: isn't like you've been financing Clancy's bar and grill. I 289 00:15:38,200 --> 00:15:40,640 Speaker 1: mean this is you know, this is the US Bank 290 00:15:40,760 --> 00:15:45,119 Speaker 1: Stadium in a sort of Vikings home, uh Levi Stadium 291 00:15:45,200 --> 00:15:47,640 Speaker 1: for the forty niners. What is it like you have 292 00:15:47,800 --> 00:15:53,840 Speaker 1: this big resume of big time stadium Sir, Well, thank 293 00:15:53,880 --> 00:15:56,880 Speaker 1: you for that. Yeah. My son, who's nine, he always 294 00:15:57,040 --> 00:15:59,640 Speaker 1: just dead you build these stadiums. I think in his mind, 295 00:15:59,640 --> 00:16:02,560 Speaker 1: I have a amber and a nail out there, uh together, 296 00:16:02,720 --> 00:16:05,960 Speaker 1: But no, that's trying to tell him that's not the case. 297 00:16:06,040 --> 00:16:08,680 Speaker 1: But yeah, it's it's been terrific, and it's it's been 298 00:16:08,680 --> 00:16:11,440 Speaker 1: really fun to see the growth of these these stadiums 299 00:16:11,440 --> 00:16:15,080 Speaker 1: and the evolution of the stadiums over the last twenty years, 300 00:16:15,080 --> 00:16:18,520 Speaker 1: and they've really become these unique special venues. And I'd 301 00:16:18,520 --> 00:16:21,480 Speaker 1: say from a personal level, it's certainly great to drive 302 00:16:21,560 --> 00:16:25,160 Speaker 1: by and see see the construction of the facility and 303 00:16:25,160 --> 00:16:27,160 Speaker 1: all the work that our teams put into it. So 304 00:16:27,200 --> 00:16:30,440 Speaker 1: it's it's definitely a definitely a rewarding space to be 305 00:16:30,560 --> 00:16:32,960 Speaker 1: in and and we're very much looking toward to kind 306 00:16:33,000 --> 00:16:36,560 Speaker 1: of this next generation of facilities uh, in the years ahead, 307 00:16:37,080 --> 00:16:42,880 Speaker 1: what's your personal favorite? Oh, it's like asking which one 308 00:16:42,880 --> 00:16:49,600 Speaker 1: of my kids is my favorite? Yes, that's what we're asking. Uh, 309 00:16:49,680 --> 00:16:53,800 Speaker 1: you know, I maybe I'll give the corporate answer. It's 310 00:16:53,840 --> 00:16:56,880 Speaker 1: the US Banks Stadium. Given given our name is on 311 00:16:56,960 --> 00:17:00,480 Speaker 1: the facility that that certain stands out. There's a there's 312 00:17:00,520 --> 00:17:03,120 Speaker 1: so many, but yeah, that that was a special one. 313 00:17:03,200 --> 00:17:07,399 Speaker 1: We spent a lot of time on that, on that facility, 314 00:17:07,440 --> 00:17:10,080 Speaker 1: and a lot of great memories from that one scar 315 00:17:10,280 --> 00:17:13,360 Speaker 1: all up in the Man's Business League, which did say anyway, 316 00:17:13,400 --> 00:17:16,800 Speaker 1: so Bill, here's the thing. We have our stadium. It 317 00:17:16,960 --> 00:17:21,040 Speaker 1: is food sas bar, and the fans love marble racing 318 00:17:21,080 --> 00:17:23,800 Speaker 1: and our stadium. Man, we we pack them in. So 319 00:17:23,840 --> 00:17:28,520 Speaker 1: we're coming to you and we want to have private financing. 320 00:17:29,119 --> 00:17:32,320 Speaker 1: What take us through the process of what we have 321 00:17:32,480 --> 00:17:35,000 Speaker 1: to do outside of me putting on a suit to 322 00:17:35,119 --> 00:17:39,840 Speaker 1: come to you for private financing? Well, in this day 323 00:17:39,840 --> 00:17:43,160 Speaker 1: and age, I would probably even make you worse storm now, 324 00:17:43,240 --> 00:17:48,119 Speaker 1: but uh so, yeah, I would say these are year 325 00:17:48,200 --> 00:17:51,760 Speaker 1: long processes, three or four or five years in the 326 00:17:51,840 --> 00:17:54,320 Speaker 1: may tinging where and I would say, we first start 327 00:17:54,359 --> 00:17:58,400 Speaker 1: with our clients where it's um, they're thinking about a stadium, 328 00:17:58,440 --> 00:18:00,800 Speaker 1: maybe a new one, maybe refresh seeing their current one, 329 00:18:00,840 --> 00:18:04,320 Speaker 1: and we're sharing what we see other clubs do other 330 00:18:04,400 --> 00:18:07,880 Speaker 1: considerations UH that that they should think about, and then 331 00:18:07,880 --> 00:18:10,479 Speaker 1: it kind of morphs into they know they're going to 332 00:18:10,520 --> 00:18:12,359 Speaker 1: do it, and we're really trying to lock in, Okay, 333 00:18:12,440 --> 00:18:15,960 Speaker 1: the financing, how we're gonna pay for this. UH. Usually 334 00:18:15,960 --> 00:18:19,240 Speaker 1: there's a mix of public dollars, private dollars and then 335 00:18:19,840 --> 00:18:23,520 Speaker 1: UM some debts financing and which were very much focused on, 336 00:18:24,040 --> 00:18:26,280 Speaker 1: and so we really kind of lock in a financing 337 00:18:26,320 --> 00:18:31,360 Speaker 1: structure UM and then shovels in the ground before shovels 338 00:18:31,359 --> 00:18:33,000 Speaker 1: can go in the ground, and we all want to 339 00:18:33,000 --> 00:18:34,800 Speaker 1: make sure we know how it's going to get paid for. 340 00:18:34,960 --> 00:18:39,040 Speaker 1: And then throughout the construction UM, there's certainly some monitoring 341 00:18:39,080 --> 00:18:42,919 Speaker 1: that happens, and we're very focused making sure the building 342 00:18:42,960 --> 00:18:45,720 Speaker 1: is built on time and on budget and helping our 343 00:18:45,760 --> 00:18:48,720 Speaker 1: clients focus on that. And then the fun part when 344 00:18:48,760 --> 00:18:52,040 Speaker 1: the ribbon cutting and the doors are open and the 345 00:18:52,040 --> 00:18:55,399 Speaker 1: the actual operations of the facility begin, and we very 346 00:18:55,480 --> 00:18:58,639 Speaker 1: much stay involved UH, and that as well to to 347 00:18:58,760 --> 00:19:01,560 Speaker 1: help the clubs or the team teams as they move 348 00:19:01,640 --> 00:19:04,960 Speaker 1: from a construction phase to an operation phase, and you know, 349 00:19:05,000 --> 00:19:08,280 Speaker 1: so I would stay from start to finish. As I mentioned, 350 00:19:08,320 --> 00:19:11,080 Speaker 1: that's probably I think could be anywhere to a five 351 00:19:11,160 --> 00:19:13,919 Speaker 1: year process from where we first start until we actually 352 00:19:13,960 --> 00:19:18,399 Speaker 1: see games in the facility. So that's really interesting because, um, 353 00:19:18,480 --> 00:19:20,159 Speaker 1: right now we know that teams have a lot of 354 00:19:20,200 --> 00:19:24,600 Speaker 1: access to liquidity. Uh so private financing certainly is an option. 355 00:19:24,760 --> 00:19:27,120 Speaker 1: But you also have a lot of states that now 356 00:19:27,200 --> 00:19:29,679 Speaker 1: have budget surpluses. I think of California and how it 357 00:19:29,720 --> 00:19:33,000 Speaker 1: expects a record budget surplus of nearly a hundred billion dollars, 358 00:19:33,160 --> 00:19:34,919 Speaker 1: and of course this changes year by year, but I 359 00:19:34,960 --> 00:19:39,359 Speaker 1: wonder how that affects how that influences the decision making 360 00:19:39,560 --> 00:19:42,480 Speaker 1: and the lobbying I guess, on both the state's part 361 00:19:42,640 --> 00:19:46,680 Speaker 1: and on the franchises part to get public funding. Yeah, 362 00:19:47,119 --> 00:19:50,680 Speaker 1: really interesting time because I think for so long it's 363 00:19:50,680 --> 00:19:53,199 Speaker 1: been harder and harder. The trend has been for it 364 00:19:53,240 --> 00:19:55,800 Speaker 1: to be harder and harder to get public dollars. And 365 00:19:55,880 --> 00:19:58,960 Speaker 1: certainly I would say the hardest are the places on 366 00:19:59,000 --> 00:20:02,200 Speaker 1: the coast um and so that's that's been a trend 367 00:20:02,240 --> 00:20:04,800 Speaker 1: over the last ten years. But you just mentioned sort 368 00:20:04,800 --> 00:20:09,159 Speaker 1: of the recent phenomenon of budget surpluses, and so I 369 00:20:09,200 --> 00:20:11,440 Speaker 1: think that's something I guess I would say we're all 370 00:20:11,480 --> 00:20:14,040 Speaker 1: focused on to see if that reverses the trend. We 371 00:20:14,160 --> 00:20:18,240 Speaker 1: really hadn't seen, uh do that yet, but I think 372 00:20:18,240 --> 00:20:21,080 Speaker 1: it's something that we're watching closely and see if there's 373 00:20:21,119 --> 00:20:25,439 Speaker 1: more appetite um than there was certainly during COVID but 374 00:20:25,480 --> 00:20:29,400 Speaker 1: even pre COVID to put public dollars in these stadiums. Uh. 375 00:20:29,880 --> 00:20:32,719 Speaker 1: We spoke before about how the costs have risen dramatically 376 00:20:32,760 --> 00:20:35,600 Speaker 1: and so as we just think about the capital stack, 377 00:20:36,160 --> 00:20:40,840 Speaker 1: the more support um from the public, obviously, the easier 378 00:20:40,840 --> 00:20:44,880 Speaker 1: it is to justify the construction. And so very very 379 00:20:44,960 --> 00:20:49,480 Speaker 1: much a focus and a hot topic currently that that 380 00:20:49,480 --> 00:20:51,840 Speaker 1: that we're watching. You know, Bill, you know, I know 381 00:20:51,960 --> 00:20:55,560 Speaker 1: you're you and US Bank are both obviously focused here 382 00:20:55,600 --> 00:20:57,240 Speaker 1: in the US. But I want to take you to 383 00:20:57,320 --> 00:20:58,959 Speaker 1: China for a minute here and I want to, you know, 384 00:20:59,040 --> 00:21:01,080 Speaker 1: ask you about what some of the things we're seeing there, 385 00:21:01,119 --> 00:21:03,280 Speaker 1: like Kuangzo Everground Stadium. It is supposed to have a 386 00:21:03,320 --> 00:21:05,879 Speaker 1: capacity of a hundred thousand. It's not even going to 387 00:21:05,960 --> 00:21:08,400 Speaker 1: be built now due to the COVID zero policy there 388 00:21:08,400 --> 00:21:11,040 Speaker 1: in the pandemic. You know how do you get your clients, 389 00:21:11,080 --> 00:21:13,160 Speaker 1: how do you get your bank for that matter, comfortable 390 00:21:13,600 --> 00:21:16,239 Speaker 1: that we can have issues or other events in the 391 00:21:16,240 --> 00:21:19,199 Speaker 1: future that can so materially impact the way things are 392 00:21:19,200 --> 00:21:21,640 Speaker 1: going in China. I mean, these white elephants, these stadiums 393 00:21:21,680 --> 00:21:23,920 Speaker 1: that were booked for the Asian Cup. I mean, the 394 00:21:23,920 --> 00:21:25,840 Speaker 1: country is not even hosting the Asian Cup anymore. I'm 395 00:21:25,840 --> 00:21:28,040 Speaker 1: wondering if you could just kind of share with us, 396 00:21:28,080 --> 00:21:30,439 Speaker 1: how do you get clients comfortable that you're not going 397 00:21:30,480 --> 00:21:33,240 Speaker 1: to have some sort of epic event that's going to 398 00:21:33,320 --> 00:21:36,239 Speaker 1: derail their local economy and prevent them from you know, 399 00:21:36,480 --> 00:21:40,640 Speaker 1: getting people into the stadiums. Yeah, yeah, I mean it's 400 00:21:40,680 --> 00:21:44,160 Speaker 1: certainly tough, and I would say in some localities cover 401 00:21:44,840 --> 00:21:47,800 Speaker 1: than others, just given um, maybe some of the local 402 00:21:47,880 --> 00:21:52,160 Speaker 1: dynamics and and um and some of the political challenges 403 00:21:52,240 --> 00:21:54,080 Speaker 1: and so, you know, I think as we as we 404 00:21:54,160 --> 00:21:58,560 Speaker 1: do outside the US, I would say, it's just gets 405 00:21:58,560 --> 00:22:02,320 Speaker 1: more more of a challenge, but maybe specifically to these 406 00:22:02,680 --> 00:22:05,600 Speaker 1: you know, unique once in a lifetime events like like 407 00:22:05,640 --> 00:22:10,200 Speaker 1: the experience with COVID, I would say, our conversations internally 408 00:22:10,280 --> 00:22:12,959 Speaker 1: and as we as we think about this clients, in 409 00:22:13,000 --> 00:22:16,520 Speaker 1: many cases it almost gives us more comfort with the 410 00:22:16,560 --> 00:22:20,720 Speaker 1: overall business model of stadiums and arenas and in the 411 00:22:20,840 --> 00:22:23,960 Speaker 1: way that, hey, these all lived through and I know 412 00:22:24,040 --> 00:22:27,480 Speaker 1: you just gave some examples that didn't, but um, certainly, 413 00:22:27,480 --> 00:22:31,200 Speaker 1: and most of the places are the facilities that we've 414 00:22:31,240 --> 00:22:33,880 Speaker 1: been a part of. They all lived through this sort 415 00:22:33,880 --> 00:22:37,400 Speaker 1: of once in a lifetime event which directly impacted their 416 00:22:37,400 --> 00:22:40,359 Speaker 1: businesses where they couldn't play games or couldn't play games 417 00:22:40,359 --> 00:22:42,439 Speaker 1: with one their fans, and they made it to the 418 00:22:42,480 --> 00:22:45,280 Speaker 1: other side. And so as we think about the risk 419 00:22:45,359 --> 00:22:49,200 Speaker 1: of these facilities, that's always the number one concerned of 420 00:22:49,600 --> 00:22:52,959 Speaker 1: some reason games weren't able to be played there and uh, 421 00:22:53,560 --> 00:22:56,040 Speaker 1: and they survived, and so I guess you know, there 422 00:22:56,040 --> 00:22:58,639 Speaker 1: there are some one all cases that that that painted 423 00:22:59,320 --> 00:23:01,440 Speaker 1: a worst story than that. But overall, as we think 424 00:23:01,440 --> 00:23:04,800 Speaker 1: about the industry, I'd say we're more bullish coming out 425 00:23:04,800 --> 00:23:07,480 Speaker 1: of COVID and seeing how resilient the industry was than 426 00:23:07,840 --> 00:23:11,000 Speaker 1: than even before. The coastal cities and I'm talking about 427 00:23:11,040 --> 00:23:14,720 Speaker 1: cities like New York, California, Florida. They're shifting away from 428 00:23:14,800 --> 00:23:18,480 Speaker 1: publicly financed stadiums in arenas and they're going more for 429 00:23:18,600 --> 00:23:23,400 Speaker 1: private financing. Why is that? Well, I think as as 430 00:23:23,440 --> 00:23:25,879 Speaker 1: we've got into a little bit before, I think the 431 00:23:25,960 --> 00:23:30,440 Speaker 1: politics of getting support for public financing became very difficult 432 00:23:30,480 --> 00:23:34,280 Speaker 1: in these coastal areas. And I think the the idea, 433 00:23:34,600 --> 00:23:37,879 Speaker 1: with so many other needs for those government dollars to 434 00:23:38,359 --> 00:23:42,919 Speaker 1: put what was perceived to be beyond a sports facility, 435 00:23:43,040 --> 00:23:47,280 Speaker 1: could no longer garner enough political support. Um. And it 436 00:23:47,359 --> 00:23:50,199 Speaker 1: really has been the most challenging in those coastal cities 437 00:23:50,280 --> 00:23:53,720 Speaker 1: you mentioned. Because we we're speaking before, many of those 438 00:23:53,720 --> 00:23:56,720 Speaker 1: cities now have their municipalities, now have served pluses, so 439 00:23:56,800 --> 00:24:00,600 Speaker 1: maybe those conversations will be easier. But I will share 440 00:24:00,640 --> 00:24:04,800 Speaker 1: that in the last um, you know, the last five years, 441 00:24:04,840 --> 00:24:08,560 Speaker 1: maybe when we're financing facilities in those locations we start 442 00:24:08,600 --> 00:24:10,720 Speaker 1: from a point of just assuming they will be euro 443 00:24:10,800 --> 00:24:15,359 Speaker 1: public dollars because it has been so difficult to to 444 00:24:15,440 --> 00:24:18,159 Speaker 1: get support for that. Yeah. And one reason why is 445 00:24:18,200 --> 00:24:22,159 Speaker 1: because the value of those franchises have just skyrocketed in 446 00:24:22,200 --> 00:24:26,480 Speaker 1: places like California, New York, Florida. Uh, their big market cities, 447 00:24:26,560 --> 00:24:31,119 Speaker 1: and the league's obviously are very healthy financially. I wonder 448 00:24:31,320 --> 00:24:34,640 Speaker 1: if you look across the different professional leagues, the NBA, 449 00:24:34,840 --> 00:24:40,240 Speaker 1: the MLB, NFL, NHL, MLS. I know that the NBA 450 00:24:40,640 --> 00:24:43,640 Speaker 1: is sitting pretty when it comes to the financial health. 451 00:24:43,920 --> 00:24:45,880 Speaker 1: Tell us a little bit about what you see there 452 00:24:45,880 --> 00:24:48,960 Speaker 1: and what it does better in terms of the media deals, 453 00:24:48,960 --> 00:24:52,879 Speaker 1: it's struck, the expansion plans, it's um pursued, how it 454 00:24:53,280 --> 00:24:57,359 Speaker 1: how it sets itself apart from the other leagues. Well, 455 00:24:57,359 --> 00:24:59,800 Speaker 1: I think the NBA has done a terrific job and 456 00:25:00,040 --> 00:25:04,240 Speaker 1: embracing two things. One technology. I think they've um really 457 00:25:04,480 --> 00:25:08,520 Speaker 1: been at the forefront of thinking about how especially technology 458 00:25:08,600 --> 00:25:12,080 Speaker 1: is it relates to delivering their content um and really 459 00:25:12,800 --> 00:25:16,480 Speaker 1: doing a terrific job of trying to try trying to 460 00:25:16,560 --> 00:25:21,159 Speaker 1: explore ways that they can meet what their viewers want. 461 00:25:21,680 --> 00:25:24,240 Speaker 1: And what I mean by that is in the past, 462 00:25:24,280 --> 00:25:26,920 Speaker 1: how we all grew up and and it's still somewhat 463 00:25:26,960 --> 00:25:29,399 Speaker 1: this way. When you watch sports, you sit down and 464 00:25:29,440 --> 00:25:32,160 Speaker 1: you watch the beginning to the end, you watch the game, 465 00:25:32,200 --> 00:25:35,400 Speaker 1: and then that's how you consume it. But and some 466 00:25:35,400 --> 00:25:38,040 Speaker 1: people like to watch that, but other people they just 467 00:25:38,160 --> 00:25:40,480 Speaker 1: might want to watch the last two minutes of a player. 468 00:25:40,640 --> 00:25:42,520 Speaker 1: They just might want to watch all the highlights of 469 00:25:42,560 --> 00:25:44,560 Speaker 1: the dunks from the night or they you know, I 470 00:25:44,560 --> 00:25:46,640 Speaker 1: know you asked about NBA, but think about red zone 471 00:25:46,640 --> 00:25:49,359 Speaker 1: in the NFL. So, um, I think the NBA has 472 00:25:49,400 --> 00:25:51,560 Speaker 1: done a terrific job of figuring out how to be 473 00:25:52,119 --> 00:25:55,520 Speaker 1: used technology to meet the viewing demands of their of 474 00:25:55,600 --> 00:25:59,240 Speaker 1: their clients or excuse me, of their viewers. Um. And 475 00:25:59,240 --> 00:26:00,879 Speaker 1: then the other thing at the NBA, it's done a 476 00:26:00,920 --> 00:26:04,679 Speaker 1: terrific job with as international Uh, they're hot on the 477 00:26:04,720 --> 00:26:07,360 Speaker 1: heels of soccer I would say to be the most 478 00:26:07,440 --> 00:26:10,760 Speaker 1: popular sport in the world. And um and so they've 479 00:26:10,800 --> 00:26:15,200 Speaker 1: had they've realized tremendous growth because of that. So yeah, 480 00:26:15,320 --> 00:26:17,840 Speaker 1: I think that the NBA is in a terrific spot 481 00:26:18,520 --> 00:26:22,640 Speaker 1: um and and really remained very bullish on their long 482 00:26:22,760 --> 00:26:26,560 Speaker 1: term prospects. You know, bull I know deep down you 483 00:26:26,600 --> 00:26:29,720 Speaker 1: are a Cincinnati Bear, capit. Let me just ask you this. 484 00:26:29,840 --> 00:26:31,960 Speaker 1: I mean, you know, you've got this experience having worked 485 00:26:31,960 --> 00:26:34,560 Speaker 1: as economist for First Trust, you know, prior to working 486 00:26:34,560 --> 00:26:36,880 Speaker 1: for US Bank in your current role. But somewhere along 487 00:26:36,880 --> 00:26:38,560 Speaker 1: the way you're on the staff of the U S 488 00:26:38,600 --> 00:26:41,000 Speaker 1: Houseways and Means Committee, And so for me, you know, 489 00:26:41,040 --> 00:26:44,240 Speaker 1: you mentioned the politics, uh that go hand in hand 490 00:26:44,280 --> 00:26:46,760 Speaker 1: with developing a new stadium and you know, how did 491 00:26:46,800 --> 00:26:49,560 Speaker 1: that experience prepare you for your current role? I mean, 492 00:26:49,600 --> 00:26:53,600 Speaker 1: are you dealing with politicians with tax policy, with municipal governments? 493 00:26:53,640 --> 00:26:54,840 Speaker 1: I mean, is that a big part of what you 494 00:26:54,840 --> 00:26:59,240 Speaker 1: do every day? Yeah? I think I say it's a 495 00:26:59,240 --> 00:27:00,760 Speaker 1: big part of what we do when we get in 496 00:27:00,800 --> 00:27:04,320 Speaker 1: the in the weeds, helping the team construct the capital 497 00:27:04,359 --> 00:27:07,000 Speaker 1: staff for a stadium. And I would say that that 498 00:27:07,119 --> 00:27:11,840 Speaker 1: experiences has helped me UM have a perspective on what 499 00:27:12,080 --> 00:27:15,840 Speaker 1: might be important from a political standpoint, which is can 500 00:27:15,880 --> 00:27:19,359 Speaker 1: be very much different of what's important from a financial standpoint, 501 00:27:19,400 --> 00:27:22,040 Speaker 1: which is bankers were sort of trained to think through 502 00:27:22,080 --> 00:27:24,639 Speaker 1: that through that lens. So yes, I think it's it 503 00:27:24,760 --> 00:27:27,159 Speaker 1: certainly has helped, and we certainly try to work with 504 00:27:27,160 --> 00:27:29,760 Speaker 1: our clients on you there's the financial side of this, 505 00:27:29,880 --> 00:27:31,800 Speaker 1: but there's the political side of this, and we need 506 00:27:31,840 --> 00:27:35,240 Speaker 1: to make sure we have the justification in the backing 507 00:27:35,280 --> 00:27:38,879 Speaker 1: and the raft now strong on both sides to justify 508 00:27:39,040 --> 00:27:42,600 Speaker 1: this and to get support UM and so, and that's 509 00:27:42,600 --> 00:27:45,640 Speaker 1: been very important and certain deals that we've been able 510 00:27:45,680 --> 00:27:49,240 Speaker 1: to do that. Can you imagine what would happen if 511 00:27:49,440 --> 00:27:53,959 Speaker 1: the Cincinnati region is picked as the host city for 512 00:27:54,080 --> 00:27:58,280 Speaker 1: the World Cup and bring it up because you are 513 00:27:58,359 --> 00:28:01,200 Speaker 1: working on West End State in the future home of 514 00:28:01,320 --> 00:28:05,520 Speaker 1: FC Cincinnati and m L S. Man if if the 515 00:28:05,600 --> 00:28:09,359 Speaker 1: Cincinnati area gets that that stadium is off the hook, 516 00:28:09,600 --> 00:28:13,960 Speaker 1: can you comment on that? Well, absolutely, we've been We've 517 00:28:14,000 --> 00:28:16,879 Speaker 1: been working very closely with FC Cincinnati in the city 518 00:28:16,920 --> 00:28:20,280 Speaker 1: here to help help win that that did. I can 519 00:28:20,280 --> 00:28:23,480 Speaker 1: tell you there's a lot of excitement around the city, 520 00:28:23,760 --> 00:28:28,080 Speaker 1: both for soccer in Cincinnati but also for this potential 521 00:28:28,080 --> 00:28:32,359 Speaker 1: World Cup. So I think we're waiting, uh, waiting with 522 00:28:32,520 --> 00:28:34,880 Speaker 1: the edge of our c to see, uh if we're 523 00:28:34,880 --> 00:28:37,480 Speaker 1: going to be successful there. How much time do you 524 00:28:37,520 --> 00:28:40,600 Speaker 1: watch do you spend watching live sports? Bill? I'm just curious. 525 00:28:40,720 --> 00:28:42,360 Speaker 1: And when you're watching it, can you enjoy it? Are 526 00:28:42,400 --> 00:28:46,600 Speaker 1: you thinking through the finances part of it, um, the 527 00:28:46,600 --> 00:28:52,920 Speaker 1: the infrastructure, the stadiums, and then the needs of the team. Yeah, 528 00:28:52,960 --> 00:28:55,080 Speaker 1: well I spent a lot of time watching sports, and 529 00:28:55,320 --> 00:28:57,280 Speaker 1: your first question, I'd like to tell my wife that 530 00:28:57,480 --> 00:29:03,800 Speaker 1: I'm just doing my job, so oh yeah, right, yeah, right, 531 00:29:03,960 --> 00:29:06,440 Speaker 1: But no, it definitely gives you a different perspective to 532 00:29:06,560 --> 00:29:09,880 Speaker 1: think through the business side of it, and I would say, um, 533 00:29:09,920 --> 00:29:12,480 Speaker 1: you know, the other thing is certain clients that you 534 00:29:12,520 --> 00:29:15,680 Speaker 1: get to know very well over time and really care 535 00:29:15,760 --> 00:29:18,160 Speaker 1: for them and want them to be successful. It's it's 536 00:29:18,160 --> 00:29:21,240 Speaker 1: sort of creating a more personal dynamic that you're really 537 00:29:21,760 --> 00:29:24,080 Speaker 1: rooting for their success because you know how much it 538 00:29:24,120 --> 00:29:26,959 Speaker 1: would mean to them. So yeah, it's definitely a different perspective. 539 00:29:27,000 --> 00:29:30,520 Speaker 1: But I'm certainly going to be watching, uh, you know, 540 00:29:30,800 --> 00:29:34,560 Speaker 1: we'll watch the NBA Finals and Stanley Cup and all that, 541 00:29:34,680 --> 00:29:38,640 Speaker 1: and so I do enjoy not only the business side 542 00:29:38,640 --> 00:29:41,080 Speaker 1: of Force, but I really enjoy watching it as well. 543 00:29:41,320 --> 00:29:43,960 Speaker 1: Just one last question, Bill, Cincinnati Bengals Joe Burrow, you 544 00:29:43,960 --> 00:29:45,440 Speaker 1: think they have a chance of returning to the Super 545 00:29:45,480 --> 00:29:48,680 Speaker 1: Bowl this year. I certainly hope. So I think I 546 00:29:48,760 --> 00:29:50,720 Speaker 1: was at the Super Bowl last year and it was 547 00:29:51,680 --> 00:29:55,160 Speaker 1: it was a tough one, um, and they just give 548 00:29:55,200 --> 00:29:58,640 Speaker 1: my my personal opinion. They had some offensive line issues 549 00:29:58,680 --> 00:30:01,520 Speaker 1: that they've addressed. U. I think they're toys to make 550 00:30:01,560 --> 00:30:04,400 Speaker 1: another deep run and it would be great to get 551 00:30:04,400 --> 00:30:07,880 Speaker 1: back and have another shot. Bill. I like your excuse 552 00:30:07,920 --> 00:30:11,000 Speaker 1: when you tell your wife, I gotta watch the sports, honey, 553 00:30:11,040 --> 00:30:13,720 Speaker 1: It's it's part of the job. And my wife said 554 00:30:13,760 --> 00:30:16,200 Speaker 1: he said, I said that to my wife, and she says, Well, 555 00:30:16,240 --> 00:30:17,760 Speaker 1: she says, why are you holding a beer? Well, I 556 00:30:17,800 --> 00:30:20,880 Speaker 1: need the fan experience. I need that when I'm watching 557 00:30:20,880 --> 00:30:24,560 Speaker 1: the INDI. It helps me get into the mindset when 558 00:30:24,560 --> 00:30:27,840 Speaker 1: I'm writing. She didn't buy any of that stuff, but 559 00:30:28,160 --> 00:30:32,720 Speaker 1: I like I like his style Bill, Bill Mulvey, I 560 00:30:32,720 --> 00:30:39,240 Speaker 1: didn't think about that idea two of you. Yeah, why 561 00:30:39,240 --> 00:30:41,840 Speaker 1: am I holding a Budweiser as I'm trying to get 562 00:30:41,880 --> 00:30:45,960 Speaker 1: into the sports experience. Bill mulvey Hill ahead of the U. 563 00:30:46,160 --> 00:30:49,720 Speaker 1: S Bank Sports and Entertainment Group, providing us his insights 564 00:30:49,960 --> 00:30:52,840 Speaker 1: on the major money issues affecting the sports industry. Bill, 565 00:30:52,920 --> 00:30:55,680 Speaker 1: thank you so much for your time and joining us 566 00:30:55,720 --> 00:30:58,080 Speaker 1: on the show today. Yeah, thanks for the three of you. 567 00:30:58,240 --> 00:30:59,920 Speaker 1: That was it was great. I look forward to catching up. 568 00:31:00,200 --> 00:31:02,120 Speaker 1: Thanks Bill, that was a lot of fun. Thank you, sir. 569 00:31:02,600 --> 00:31:05,920 Speaker 1: As always, our guests drop a lot of knowledge on us. 570 00:31:05,960 --> 00:31:11,400 Speaker 1: Bill move Hill, I was half joking about the food 571 00:31:11,440 --> 00:31:14,840 Speaker 1: sass bar stadium, but I'm into it. Yeah, I'm telling 572 00:31:14,880 --> 00:31:17,239 Speaker 1: you the marble racing that a lot of people they 573 00:31:17,320 --> 00:31:20,280 Speaker 1: bought a lot of marbles at the souvenirs stand. We 574 00:31:20,360 --> 00:31:23,920 Speaker 1: could do this and I like the way Bill explain. Okay, 575 00:31:24,000 --> 00:31:25,800 Speaker 1: this is how you're you're going to break it down 576 00:31:25,840 --> 00:31:29,120 Speaker 1: to try to get the financing for it, because I 577 00:31:29,160 --> 00:31:32,240 Speaker 1: think there's some people out there. I mean, yeah, we're 578 00:31:32,280 --> 00:31:34,200 Speaker 1: in the business world, mis and that whatever, but I 579 00:31:34,200 --> 00:31:37,080 Speaker 1: don't think a lot of people out there know it yet. 580 00:31:37,120 --> 00:31:40,440 Speaker 1: So that's why we try to combine sports and business together. 581 00:31:40,480 --> 00:31:42,160 Speaker 1: That was this show is all about. Yeah, and I 582 00:31:42,160 --> 00:31:44,440 Speaker 1: think on the strength of our brand, our names, we 583 00:31:44,480 --> 00:31:48,080 Speaker 1: could get private financing. We don't need to ask taxpayers 584 00:31:48,080 --> 00:31:50,200 Speaker 1: to pony up money for it. I think that I 585 00:31:50,240 --> 00:31:53,640 Speaker 1: love that question Michael Barr about the idea that coastal 586 00:31:53,720 --> 00:31:56,800 Speaker 1: states have shied away, moved away from public finance sadiums 587 00:31:56,800 --> 00:31:59,800 Speaker 1: and arenas, and his answer that they just start from 588 00:31:59,800 --> 00:32:02,640 Speaker 1: the base where they assume they're not going to get 589 00:32:02,680 --> 00:32:06,160 Speaker 1: any public money because voters tend to get outraged by 590 00:32:06,240 --> 00:32:11,920 Speaker 1: having to subsidize new stadiums for franchises that are worth billions, 591 00:32:12,000 --> 00:32:16,000 Speaker 1: tens of billions of dollars um. You know, Scarlett, you know, 592 00:32:16,040 --> 00:32:17,920 Speaker 1: I agree, But I think it's it's more about, you know, 593 00:32:18,000 --> 00:32:20,200 Speaker 1: not not so much the actual public funding. It's also 594 00:32:20,240 --> 00:32:22,640 Speaker 1: about what's the economic impact of building stadium? How many 595 00:32:22,720 --> 00:32:24,680 Speaker 1: jobs are you creating, how much money are you generating 596 00:32:24,680 --> 00:32:27,160 Speaker 1: for the for the for the municipality, right, And I 597 00:32:27,160 --> 00:32:28,880 Speaker 1: think that's where the rubber meets the road. It's that 598 00:32:28,920 --> 00:32:30,920 Speaker 1: revenue share at that level. And I think you know, 599 00:32:31,320 --> 00:32:32,920 Speaker 1: you know again he touched on it, but there's a 600 00:32:32,920 --> 00:32:34,360 Speaker 1: lot more there. I mean, certainly we need to get 601 00:32:34,400 --> 00:32:36,360 Speaker 1: built up here to Manhattan. Maybe you can help New 602 00:32:36,440 --> 00:32:39,400 Speaker 1: York FC get a stadium. I know that's been tied 603 00:32:39,480 --> 00:32:42,320 Speaker 1: up for quite a while. You don't want to pick, 604 00:32:42,600 --> 00:32:45,040 Speaker 1: I'm not kids. Feels better to be than the one 605 00:32:45,080 --> 00:32:46,920 Speaker 1: than number five. I'll wear a number because of my 606 00:32:47,080 --> 00:32:48,640 Speaker 1: We have a chance to go for three in a row. 607 00:32:48,680 --> 00:32:50,600 Speaker 1: Good numbers is a good time. When I first started 608 00:32:50,600 --> 00:32:53,200 Speaker 1: wearing the number, how we just have the proud Bloomberg 609 00:32:53,360 --> 00:32:59,560 Speaker 1: business of sports. The number of the week. Hey, hey 610 00:33:00,040 --> 00:33:04,800 Speaker 1: know you might have a shot at this. You know what, 611 00:33:04,840 --> 00:33:07,480 Speaker 1: it's times has nothing to do with you. It's more 612 00:33:07,560 --> 00:33:10,200 Speaker 1: just that and she's not right here. No, it's got 613 00:33:10,280 --> 00:33:12,840 Speaker 1: everything to do with you, Damien. That's what this is 614 00:33:12,880 --> 00:33:17,600 Speaker 1: all about. This time for the number of the week. Uh, folks, 615 00:33:18,200 --> 00:33:23,520 Speaker 1: huddle around your set and I'm just blatantly plugging this 616 00:33:23,600 --> 00:33:27,080 Speaker 1: because I think this is really neat there is a 617 00:33:27,640 --> 00:33:31,720 Speaker 1: Boston Celtics in honor of them being in the NBA 618 00:33:31,880 --> 00:33:37,480 Speaker 1: Finals seventy anniversary commemorative book, and it's the official illustrated 619 00:33:37,560 --> 00:33:42,880 Speaker 1: history of it. UH. It's forwarded by Jayson Tatum UH 620 00:33:42,920 --> 00:33:48,160 Speaker 1: and UH also has UH interviews with Bob Couzy and 621 00:33:48,520 --> 00:33:53,720 Speaker 1: it really is nice and and and it's yours for 622 00:33:53,760 --> 00:34:00,160 Speaker 1: the price of Blinks seventy anniversary, seventy anniversary seventy No 623 00:34:00,280 --> 00:34:07,120 Speaker 1: seventy four cents, Damien, is that what we're guessing that 624 00:34:07,200 --> 00:34:14,799 Speaker 1: the cost of the buck, cost of the retail price fifty? Oh? No, 625 00:34:17,239 --> 00:34:26,040 Speaker 1: actual retail price? Is this price is right? Rules there 626 00:34:26,080 --> 00:34:31,600 Speaker 1: were is like you know, it's like I would have 627 00:34:31,640 --> 00:34:36,120 Speaker 1: said Overben at fifty. But the closest to Damien said, 628 00:34:36,160 --> 00:34:38,480 Speaker 1: you know what was funny because you would you would 629 00:34:38,520 --> 00:34:42,880 Speaker 1: talk in trash to see what happens. See what happens? 630 00:34:42,280 --> 00:34:48,040 Speaker 1: She said, nothing scaring a play on numbers seventy five 631 00:34:48,080 --> 00:34:52,839 Speaker 1: anniversary seventy five. There's inflation here. I mean I only 632 00:34:52,920 --> 00:34:55,840 Speaker 1: charged nine from my autobiography. So I'm actually kind of 633 00:34:55,880 --> 00:35:02,360 Speaker 1: the sign me up man. That wraps up this edition 634 00:35:02,760 --> 00:35:05,080 Speaker 1: of The Bloomberg Business of Sports Show. By the way, 635 00:35:05,120 --> 00:35:10,720 Speaker 1: you want Damien congratulations, Thank you, sir. I try, I try. 636 00:35:11,320 --> 00:35:13,720 Speaker 1: We here each and every week at the same time, 637 00:35:13,960 --> 00:35:16,840 Speaker 1: and you can hear Scarlet lose every week plus online 638 00:35:16,840 --> 00:35:23,040 Speaker 1: where you can catch those Mondays, Wednesdays and Thursdays. I'm 639 00:35:23,080 --> 00:35:26,240 Speaker 1: Michael Bar on Twitter at Big Bar Sports. I'm Scarlet 640 00:35:26,239 --> 00:35:28,120 Speaker 1: Fud on Twitter at Scarlett Food. And if you have 641 00:35:28,160 --> 00:35:31,440 Speaker 1: suggestions for numbers of the week, feel free to tweet 642 00:35:31,520 --> 00:35:35,040 Speaker 1: Michael bar directly d m him at Big Bar Sports 643 00:35:35,680 --> 00:35:37,840 Speaker 1: so that I might get a shot at winning this 644 00:35:38,000 --> 00:35:41,279 Speaker 1: one of these weeks. Yeah, and I'm Damian sas Our 645 00:35:41,360 --> 00:35:43,000 Speaker 1: at t sas Hour. You don't need to go there, 646 00:35:43,040 --> 00:35:46,880 Speaker 1: you can just listen to me on Bloomberg Business of Sports. Oh, 647 00:35:46,920 --> 00:35:49,239 Speaker 1: thank you for joining us, Folks, tune in again next week. 648 00:35:49,239 --> 00:35:50,239 Speaker 1: We do. We have a lot of fun on the 649 00:35:50,239 --> 00:35:52,520 Speaker 1: show for the latest on the stories moving big money 650 00:35:52,520 --> 00:35:54,720 Speaker 1: in the world of sports. You're listening to Bloomberg Business 651 00:35:54,760 --> 00:35:57,000 Speaker 1: of Sports from Bloomberg Radio around the world.