1 00:00:00,320 --> 00:00:03,800 Speaker 1: This is the business of sports. Should Major League Baseball 2 00:00:04,040 --> 00:00:06,880 Speaker 1: short enough the season? How do we present football to 3 00:00:06,920 --> 00:00:08,920 Speaker 1: the audience of the future. I don't think that most 4 00:00:08,920 --> 00:00:12,160 Speaker 1: players understand the power that they have. The future of 5 00:00:12,200 --> 00:00:15,920 Speaker 1: Indy car racing is looking bright, Scott Snick very basic 6 00:00:16,000 --> 00:00:18,799 Speaker 1: math here, more bidders means more money, Evan Nobody Williams. 7 00:00:19,000 --> 00:00:22,119 Speaker 1: The team value has essentially quadruples. And the leaders in 8 00:00:22,160 --> 00:00:24,880 Speaker 1: the sports industry time to bring in our guest, Hal's 9 00:00:24,920 --> 00:00:28,200 Speaker 1: fland Runner, National Hockey League Commissioner Gary Bettman, Atlanta Braves 10 00:00:28,240 --> 00:00:32,360 Speaker 1: president Derek Schiller, Patriots President Jonathan Kraft. Bloomberg Business of 11 00:00:32,400 --> 00:00:36,200 Speaker 1: Sports from Bloomberg Radio. Hello, I'm Michael barn I'm Evan 12 00:00:36,280 --> 00:00:39,159 Speaker 1: Noby Williams, and I'm Scott Every week at this time 13 00:00:39,240 --> 00:00:42,400 Speaker 1: plus Monday's, Wednesdays and Thursdays, we explore the big money 14 00:00:42,400 --> 00:00:44,920 Speaker 1: issues in the world of sports. On this week's show, 15 00:00:45,080 --> 00:00:49,160 Speaker 1: we speak with Golden State Warrior CEO and president Rick Welkes. 16 00:00:49,240 --> 00:00:52,360 Speaker 1: But first let's get to some of the topics and 17 00:00:52,560 --> 00:00:55,920 Speaker 1: the big one. I think, well, yes, there's several of them. 18 00:00:55,920 --> 00:00:58,040 Speaker 1: I shouldn't say just one, but let's talk about Arthur 19 00:00:58,040 --> 00:00:59,840 Speaker 1: blink Well there's a reason it's number one in your mind. 20 00:01:00,080 --> 00:01:02,520 Speaker 1: Yes and hard Yes, because you know, I think the 21 00:01:02,560 --> 00:01:06,240 Speaker 1: Falcons are cool. But so we're talking about evaluation of 22 00:01:06,240 --> 00:01:08,880 Speaker 1: what about three thirty million dollars for that ten percent, Well, 23 00:01:08,880 --> 00:01:10,800 Speaker 1: it's about right for an NFL team, you know, three 24 00:01:10,800 --> 00:01:13,520 Speaker 1: billion dollars for NFL sounds about right, especially that team 25 00:01:13,520 --> 00:01:16,760 Speaker 1: and operating rights to the stadiums soccer team. It's not 26 00:01:16,840 --> 00:01:19,480 Speaker 1: just the Falcons. Yeah, he's He's built quite quite a 27 00:01:19,520 --> 00:01:22,120 Speaker 1: thing there, and interesting to me, one of the purchasers 28 00:01:22,200 --> 00:01:25,480 Speaker 1: is Alan keston Baum, who was in the running finished 29 00:01:25,480 --> 00:01:28,800 Speaker 1: second I believe, for the Carolina Panthers to David Tepper. 30 00:01:29,360 --> 00:01:32,600 Speaker 1: So oftentimes, as you know, UH, folks will take a 31 00:01:32,640 --> 00:01:34,640 Speaker 1: minority stake in the team as a training ground to see, 32 00:01:34,640 --> 00:01:36,360 Speaker 1: all right, is this really something I'd like to do? 33 00:01:36,480 --> 00:01:40,319 Speaker 1: Let me learn more about the business. So look looking 34 00:01:40,360 --> 00:01:42,800 Speaker 1: down the road, whether it be the Falcons or some 35 00:01:42,880 --> 00:01:46,920 Speaker 1: other franchise, I would guess that Alan Kestonbaum has some 36 00:01:47,000 --> 00:01:50,240 Speaker 1: designs on being the majority Owner's also funny that, you know, 37 00:01:50,240 --> 00:01:52,320 Speaker 1: a couple of days ago on this exact podcast, we 38 00:01:52,320 --> 00:01:55,040 Speaker 1: were talking about you know, LP discounts. How you know, 39 00:01:55,080 --> 00:01:57,440 Speaker 1: oftentimes you see the Limited Partners sale, maybe not the 40 00:01:57,520 --> 00:01:59,800 Speaker 1: evaluation not as high as it would be if the 41 00:01:59,800 --> 00:02:02,880 Speaker 1: full team was sold. You know, Arthur Blank said publicly, 42 00:02:02,920 --> 00:02:08,760 Speaker 1: you know there is no no also in the Limited Partners, 43 00:02:08,919 --> 00:02:11,720 Speaker 1: including Alan Kestonbaum, other people who bought in, Doug Hurts 44 00:02:11,720 --> 00:02:15,040 Speaker 1: and Ron kind of Carus who were already invested, and 45 00:02:15,080 --> 00:02:17,200 Speaker 1: then Work Done. You know a name the Falcons fans 46 00:02:17,240 --> 00:02:20,320 Speaker 1: certainly know. He's another one of the Minority Partners. I 47 00:02:20,320 --> 00:02:23,360 Speaker 1: still think of the Florida State Interesting, Yeah, I wouldn't 48 00:02:24,200 --> 00:02:26,280 Speaker 1: people would think maybe camp. I still think Florida State 49 00:02:26,280 --> 00:02:28,600 Speaker 1: when I Worked Done. I don't know. Charlie Ward was 50 00:02:28,600 --> 00:02:30,200 Speaker 1: a quarterback during Work Done day. I don't know that. 51 00:02:30,440 --> 00:02:33,520 Speaker 1: I don't know why that maybe anyway, do you even 52 00:02:33,520 --> 00:02:35,639 Speaker 1: know Charlie Ward? Yeah, yeah, I know he played basketball 53 00:02:35,919 --> 00:02:38,280 Speaker 1: and one trophy. That's all I know. That's That's pretty 54 00:02:38,360 --> 00:02:42,280 Speaker 1: much what his next story is Evans story, and it 55 00:02:42,400 --> 00:02:45,920 Speaker 1: involves US Senator Chris Murphy. He's had enough after he 56 00:02:46,000 --> 00:02:48,639 Speaker 1: saw Zion Williamson shoe blow out. Yeah. I mean, I 57 00:02:48,720 --> 00:02:51,280 Speaker 1: feel like every every time we talk on the podcast, 58 00:02:51,320 --> 00:02:53,960 Speaker 1: we're talking about another reason why the n c AS 59 00:02:54,240 --> 00:02:57,399 Speaker 1: business model. You know that this this, you know, amateurism 60 00:02:57,440 --> 00:03:02,200 Speaker 1: model is being challenged, and theist is Chris Murphy, Senator 61 00:03:02,320 --> 00:03:05,080 Speaker 1: from from Connecticut, who is published the first of what 62 00:03:05,120 --> 00:03:07,520 Speaker 1: will be a handful of papers this year kind of 63 00:03:07,520 --> 00:03:10,320 Speaker 1: outlining all the ways in which, you know, everyone within 64 00:03:10,360 --> 00:03:13,840 Speaker 1: the college sports ecosystem is making money often millions or 65 00:03:13,880 --> 00:03:16,880 Speaker 1: billions of dollars, except for the players themselves. Um. And 66 00:03:16,880 --> 00:03:19,960 Speaker 1: I talked to him earlier this week and he essentially said, look, 67 00:03:19,960 --> 00:03:21,480 Speaker 1: I've been covering this for a while. I've been I've 68 00:03:21,520 --> 00:03:25,359 Speaker 1: been watching college sports get commercialized. Um. But when Zion 69 00:03:25,400 --> 00:03:27,799 Speaker 1: Williamson got hurt, you know, and a billion dollars came 70 00:03:27,800 --> 00:03:30,760 Speaker 1: off of Nike stock price, and you know, he ran 71 00:03:30,800 --> 00:03:33,640 Speaker 1: the risk of potentially, if it was catastrophic, never playing 72 00:03:33,639 --> 00:03:35,760 Speaker 1: in the NBA, never realizing that the money that he 73 00:03:35,840 --> 00:03:38,200 Speaker 1: probably should have been earning as a college student. You know, 74 00:03:38,240 --> 00:03:40,080 Speaker 1: that was the final straw for him. So, you know, 75 00:03:40,800 --> 00:03:43,440 Speaker 1: there and finally got there. I made fun of him this. 76 00:03:43,560 --> 00:03:45,440 Speaker 1: I was like, oh, so that was the final stro 77 00:03:45,600 --> 00:03:47,000 Speaker 1: he finally got there. Like, we didn't know all of 78 00:03:47,000 --> 00:03:50,480 Speaker 1: this ahead of time, that they had to Seezion Williamson 79 00:03:50,480 --> 00:03:52,440 Speaker 1: blow of his shoe. There is so much right now, 80 00:03:52,520 --> 00:03:56,240 Speaker 1: from you know, scandals to legal challenges to other you know, 81 00:03:56,840 --> 00:03:59,760 Speaker 1: the congressmen who are proposing other legislation. That there's so 82 00:03:59,840 --> 00:04:02,000 Speaker 1: much what's going on right now. Give a shout out, 83 00:04:02,000 --> 00:04:03,440 Speaker 1: by the way, because you when I were talking about 84 00:04:03,480 --> 00:04:06,480 Speaker 1: this is Steve berkowoos at USA today. Like anytime a 85 00:04:06,560 --> 00:04:08,720 Speaker 1: game ends in the n c A tournament, he'll tell 86 00:04:08,760 --> 00:04:10,800 Speaker 1: you what the coach just got or you know, the 87 00:04:10,840 --> 00:04:13,120 Speaker 1: bonus for winning or for winning a game or for whatever. 88 00:04:13,440 --> 00:04:15,720 Speaker 1: So good job, Steve Berkowitz. He's like, I think he's 89 00:04:15,760 --> 00:04:19,120 Speaker 1: the man in this love it genre. Keep it up 90 00:04:19,160 --> 00:04:23,120 Speaker 1: because I just laugh every time. And finally, guess what started? 91 00:04:32,640 --> 00:04:35,960 Speaker 1: I know what that is? Sound. I don't think they 92 00:04:35,960 --> 00:04:38,760 Speaker 1: played that in Japan when when they opened, but we 93 00:04:38,920 --> 00:04:42,080 Speaker 1: will consider to be opening day just a bit outside. 94 00:04:42,440 --> 00:04:44,560 Speaker 1: The sun is shining at least here in New York. 95 00:04:44,920 --> 00:04:47,240 Speaker 1: This is the way it's supposed to be. The real. 96 00:04:47,440 --> 00:04:49,960 Speaker 1: Pictures and catchers get you in a good mood. But 97 00:04:50,200 --> 00:04:52,120 Speaker 1: this is the real all right, it must be spring. 98 00:04:52,880 --> 00:04:55,560 Speaker 1: See what I love about this is that I love 99 00:04:55,640 --> 00:04:59,239 Speaker 1: fantasy baseball because out of all the fantasy sports, that's 100 00:04:59,279 --> 00:05:01,840 Speaker 1: the most challenge, and that's where you really got to 101 00:05:01,920 --> 00:05:04,839 Speaker 1: use your mind and pay attention to what you gotta do. Yeah, well, 102 00:05:04,880 --> 00:05:07,560 Speaker 1: if you say so, I mean you so rarely used 103 00:05:07,600 --> 00:05:09,320 Speaker 1: the mind and pay attention to what you gotta do. 104 00:05:10,320 --> 00:05:12,600 Speaker 1: If that's what If that's what it takes, If that's 105 00:05:12,600 --> 00:05:15,640 Speaker 1: what it takes some high profile names in new places. 106 00:05:15,680 --> 00:05:23,159 Speaker 1: He always gets back to business on the Businesses Sports Show, 107 00:05:23,000 --> 00:05:25,200 Speaker 1: How dare I? How dare I get back to business? 108 00:05:25,200 --> 00:05:26,719 Speaker 1: We're going to get to Rice Harp right now. Where 109 00:05:26,720 --> 00:05:30,960 Speaker 1: you're going they get to it. Number one jersey seller, 110 00:05:31,080 --> 00:05:33,600 Speaker 1: Rice Harper, Big Star, change teams. But I haven't hold on. 111 00:05:33,640 --> 00:05:35,360 Speaker 1: I think a picture of the of the top sellers 112 00:05:35,400 --> 00:05:36,760 Speaker 1: on my phone I don't have. I don't have it 113 00:05:37,160 --> 00:05:39,360 Speaker 1: by heart. Here I would imagine Mr Aaron Judges is 114 00:05:39,440 --> 00:05:43,560 Speaker 1: up there. He yeah, he pushed Aaron Judge aside. So 115 00:05:43,640 --> 00:05:46,760 Speaker 1: it's Harper Judge. You want to guess three four five 116 00:05:47,000 --> 00:05:50,279 Speaker 1: Machado got to be there. He's not. He's like he's 117 00:05:50,360 --> 00:05:54,720 Speaker 1: number twelve little shirts in in uh San Diego. It's 118 00:05:54,720 --> 00:05:58,719 Speaker 1: too hot. Just no, no, no, that's that's your guess. 119 00:05:58,760 --> 00:06:05,720 Speaker 1: Really No, we're going bets trout moa score one Molina. 120 00:06:06,120 --> 00:06:09,280 Speaker 1: See that's cool now let's get into our interview one 121 00:06:09,279 --> 00:06:13,080 Speaker 1: of the most respected business executives in the NBA where 122 00:06:13,080 --> 00:06:18,360 Speaker 1: over forty years of experience, Hall of Famer, Hall of Fame. 123 00:06:18,560 --> 00:06:23,120 Speaker 1: He's wearing the ring as big as a man. Yes, 124 00:06:23,240 --> 00:06:26,159 Speaker 1: it looks like a championship ring, but which they have. 125 00:06:26,360 --> 00:06:29,359 Speaker 1: But it's the Hall of Fame ring. Nice. Nothing like 126 00:06:29,440 --> 00:06:34,120 Speaker 1: what I'm wearing. Ricks is currently in his fifth season 127 00:06:34,160 --> 00:06:37,600 Speaker 1: as president and Chief Operating Officer of the Golden State Warriors. 128 00:06:37,920 --> 00:06:42,160 Speaker 1: In his rollie overseas all business related operations for the Warriors, 129 00:06:42,200 --> 00:06:46,560 Speaker 1: including the team's proposed development of a privately financed sports 130 00:06:46,560 --> 00:06:50,520 Speaker 1: and entertainment center in San Francio. It's a reality. The 131 00:06:50,640 --> 00:06:55,680 Speaker 1: reality is happening. Well, it's not built yet completely built. 132 00:06:55,680 --> 00:06:57,920 Speaker 1: I mean we're opening in September. Better be ready. I 133 00:06:58,000 --> 00:07:02,400 Speaker 1: like Metallica and the same for Cisco Symphony opening. That's 134 00:07:02,400 --> 00:07:05,320 Speaker 1: gonna be some cool stuff. I'm bringing soda machines uh 135 00:07:06,960 --> 00:07:12,360 Speaker 1: San Francisco's Mission Bay. Reporting to the organization's co managing partners, 136 00:07:12,480 --> 00:07:15,520 Speaker 1: Joe lacop and Peter Grubert, Mr Rick, thank you very 137 00:07:15,600 --> 00:07:18,239 Speaker 1: much for joining us in studio. Thrilled to be here, guys. 138 00:07:18,280 --> 00:07:20,600 Speaker 1: This is actually my first time being in the Bloomberg 139 00:07:20,600 --> 00:07:24,280 Speaker 1: building and you're impressed. I'm incredibly impressed. Yeah, we walked 140 00:07:24,280 --> 00:07:25,800 Speaker 1: you through the maze, but we got here down to 141 00:07:25,840 --> 00:07:28,600 Speaker 1: the studio. Can give me a favor though. The light 142 00:07:28,880 --> 00:07:30,760 Speaker 1: is right above you and I know this is radio, 143 00:07:30,840 --> 00:07:34,280 Speaker 1: not TV, but the glare off your ring it's like 144 00:07:34,360 --> 00:07:38,680 Speaker 1: one of those superhero things. How many diamonds in that 145 00:07:38,760 --> 00:07:40,320 Speaker 1: ring that are hitting me in the in the face, 146 00:07:40,440 --> 00:07:42,720 Speaker 1: I don't know, I don't know. This actually is not 147 00:07:42,800 --> 00:07:45,360 Speaker 1: one of the worst championship rings, which was the Hall 148 00:07:45,400 --> 00:07:47,800 Speaker 1: of Fame ring. Oh, I was gonna say that we 149 00:07:47,840 --> 00:07:51,400 Speaker 1: have to Is it in your contract that the qualifier 150 00:07:51,480 --> 00:07:55,840 Speaker 1: Hall of Famers? Please? Please please? No, it was. This 151 00:07:55,920 --> 00:07:58,560 Speaker 1: is the one I wear because one it's size appropriate. 152 00:07:58,680 --> 00:08:03,880 Speaker 1: The championship rings I list about three inches to the right. 153 00:08:05,880 --> 00:08:09,040 Speaker 1: Uh so this one, you know, the the championship ring 154 00:08:09,080 --> 00:08:11,720 Speaker 1: is the one that everybody in sports dreams of. This 155 00:08:11,800 --> 00:08:14,400 Speaker 1: is the one I never could have dreamed of. So, uh, 156 00:08:14,560 --> 00:08:17,000 Speaker 1: that's the one I wear. Now you're here talking about 157 00:08:17,040 --> 00:08:19,800 Speaker 1: the new arena, the Chase Center in San franz and 158 00:08:20,040 --> 00:08:22,400 Speaker 1: I gotta say, the last time we spoke about it, 159 00:08:22,520 --> 00:08:24,680 Speaker 1: you were saying it's never been done before because it's 160 00:08:24,680 --> 00:08:27,720 Speaker 1: so darn hard. I don't really understand all the cavetching. 161 00:08:27,880 --> 00:08:29,240 Speaker 1: I mean, here we are in New York. We got 162 00:08:29,240 --> 00:08:31,240 Speaker 1: more arenas and we know what to do with So 163 00:08:31,400 --> 00:08:33,560 Speaker 1: I mean, is this just you complaining or was it 164 00:08:33,600 --> 00:08:37,200 Speaker 1: really all that hard? Uh? I complain a lot, but 165 00:08:37,280 --> 00:08:39,040 Speaker 1: I do think it was that hard. You know, there's 166 00:08:39,040 --> 00:08:42,560 Speaker 1: a reason that San Francisco in its history has never 167 00:08:42,600 --> 00:08:45,439 Speaker 1: had a world class sports and entertainment arena. And uh, 168 00:08:46,000 --> 00:08:50,000 Speaker 1: doing big projects in San Francisco, big complicated projects is 169 00:08:50,520 --> 00:08:54,480 Speaker 1: really complicated. And now that we can see the finish line, uh, 170 00:08:54,520 --> 00:08:56,280 Speaker 1: it feels a lot better. But there were there were 171 00:08:56,360 --> 00:08:58,439 Speaker 1: days that were pretty dark in the in the process. 172 00:08:58,440 --> 00:09:01,480 Speaker 1: What was the darkest what point? I'm curious what you say, Man, 173 00:09:01,480 --> 00:09:03,559 Speaker 1: this might not have been worth it. Well, we if 174 00:09:03,559 --> 00:09:06,640 Speaker 1: you'll remember the history. Seven years ago, we announced we're 175 00:09:06,679 --> 00:09:08,760 Speaker 1: moving to San Francisco, but we were going to build 176 00:09:08,800 --> 00:09:11,600 Speaker 1: an arena on Piers thirty thirty two over the water 177 00:09:11,880 --> 00:09:14,920 Speaker 1: in San Francisco Bay, and we got caught up in 178 00:09:15,400 --> 00:09:19,040 Speaker 1: uh a real political back backlash, not on our project 179 00:09:19,080 --> 00:09:22,000 Speaker 1: as much as other waterfront development. There was a big 180 00:09:22,000 --> 00:09:25,360 Speaker 1: condominium project on the Embarcadero that was being proposed. We're 181 00:09:25,360 --> 00:09:28,160 Speaker 1: about ready to go to the ballot, and uh, out 182 00:09:28,200 --> 00:09:31,760 Speaker 1: of the sky fell Mark Bennyoff and ten and a 183 00:09:31,760 --> 00:09:34,280 Speaker 1: half acres of land he owned in the Mission Bay 184 00:09:34,280 --> 00:09:37,840 Speaker 1: neighborhood of San Francisco. And Mark just said, look, if 185 00:09:37,840 --> 00:09:41,120 Speaker 1: you guys want to buy this land for a tidy profit, 186 00:09:42,360 --> 00:09:44,199 Speaker 1: I think it will solve all your problems in terms 187 00:09:44,240 --> 00:09:46,959 Speaker 1: of the waterfront development. So we did that, but at 188 00:09:47,040 --> 00:09:51,280 Speaker 1: that point we encountered even more opposition from a lot 189 00:09:51,320 --> 00:09:56,280 Speaker 1: of donors to UCSF, which is the big institution literally 190 00:09:56,320 --> 00:10:00,360 Speaker 1: across the street from US, big research UH organiz sization, 191 00:10:00,400 --> 00:10:03,800 Speaker 1: And we really had some moments where we didn't know 192 00:10:04,120 --> 00:10:06,240 Speaker 1: if we were going to survive the lawsuits that that 193 00:10:06,400 --> 00:10:10,079 Speaker 1: came thereafter, but we did. We're gonna open in September. 194 00:10:10,360 --> 00:10:13,199 Speaker 1: How different has this process been given that the team 195 00:10:13,240 --> 00:10:16,040 Speaker 1: is performing so well? You know, obviously seven years ago, 196 00:10:16,040 --> 00:10:17,640 Speaker 1: who would have thought that that that that you guys 197 00:10:17,679 --> 00:10:20,160 Speaker 1: would have a run like this? Is Is it easier 198 00:10:20,200 --> 00:10:22,360 Speaker 1: or is it harder? Being the best team in the 199 00:10:22,400 --> 00:10:24,079 Speaker 1: NBA and going through this process at the same time. 200 00:10:24,160 --> 00:10:26,199 Speaker 1: Come on, I wrote this business plan when I took 201 00:10:26,200 --> 00:10:28,680 Speaker 1: the job, right We're gonna go to the finals four 202 00:10:28,720 --> 00:10:36,360 Speaker 1: consecutive years, win three championships. Uh. It's a perfect storm, right, 203 00:10:36,480 --> 00:10:39,920 Speaker 1: It's every possible success factor intersecting at the same time. 204 00:10:40,400 --> 00:10:43,000 Speaker 1: That's where luck comes in, right, and we were We've 205 00:10:43,040 --> 00:10:46,040 Speaker 1: been incredibly lucky, but we needed to be because from 206 00:10:46,120 --> 00:10:49,760 Speaker 1: financial perspective, the real difference between this project and every 207 00:10:49,760 --> 00:10:52,840 Speaker 1: other project is that this is a d percent privately financed. 208 00:10:52,840 --> 00:10:56,440 Speaker 1: There's not a dollar of taxpayer money that UH is 209 00:10:56,480 --> 00:10:59,360 Speaker 1: going to build this project, and that hasn't been done 210 00:10:59,480 --> 00:11:02,079 Speaker 1: in decade. Was that largess or a realization that it 211 00:11:02,160 --> 00:11:05,760 Speaker 1: just simply wouldn't fly it was never gonna happen. I 212 00:11:05,760 --> 00:11:08,880 Speaker 1: have to ask does it ever get old? You guys 213 00:11:09,040 --> 00:11:12,400 Speaker 1: win everything. Even Cleveland is like, Okay, we're done, we'll 214 00:11:12,400 --> 00:11:15,720 Speaker 1: see you later. By does it get old? No, there's 215 00:11:15,760 --> 00:11:17,360 Speaker 1: not a day that you come into work and say, 216 00:11:17,400 --> 00:11:20,520 Speaker 1: I wish it wasn't this good. UH. And seriously, we 217 00:11:20,679 --> 00:11:22,880 Speaker 1: talk a lot. You know, there's criticism out there like 218 00:11:22,920 --> 00:11:25,439 Speaker 1: are the Warriors really good for the NBA with all 219 00:11:25,440 --> 00:11:28,200 Speaker 1: this winning? And you know, does it make the game boring? 220 00:11:28,400 --> 00:11:31,040 Speaker 1: And you know, I, I don't know about you, but 221 00:11:31,080 --> 00:11:33,560 Speaker 1: I've never looked back and said, God, I wish those 222 00:11:33,880 --> 00:11:36,720 Speaker 1: Magic Johnson showtime Lakers had ended sooner, or I wish 223 00:11:36,760 --> 00:11:38,880 Speaker 1: that Michael Jordan hadn't played for so long, or I 224 00:11:38,920 --> 00:11:41,480 Speaker 1: wish that Larry Bird hadn't been so good for so long. 225 00:11:41,520 --> 00:11:45,319 Speaker 1: I don't our sport, I think, at least as much 226 00:11:45,360 --> 00:11:49,520 Speaker 1: as any other, is defined by its dynasties and and 227 00:11:49,559 --> 00:11:51,840 Speaker 1: by those teams that have been able to have, you know, 228 00:11:52,000 --> 00:11:56,000 Speaker 1: championship success over a long period of time. That's that's 229 00:11:56,160 --> 00:11:59,360 Speaker 1: really how new fans come to the game. That's how 230 00:11:59,520 --> 00:12:02,319 Speaker 1: over time the history of the game has written. And 231 00:12:02,600 --> 00:12:04,080 Speaker 1: we just happened to be that team right now, and 232 00:12:04,080 --> 00:12:06,000 Speaker 1: I hope it lasts for a long time. We're speaking 233 00:12:06,000 --> 00:12:08,280 Speaker 1: with Rick Wilts, the president and CEO of the Golden 234 00:12:08,280 --> 00:12:10,360 Speaker 1: State Warriors, and Rick, I want to get into us 235 00:12:10,440 --> 00:12:12,200 Speaker 1: a little bit of jargon real quick, if you don't 236 00:12:12,200 --> 00:12:17,040 Speaker 1: mind contractually obligated income. Looking at the new stadium, the 237 00:12:17,240 --> 00:12:20,200 Speaker 1: revenue streams that you have be at v I P experiences, 238 00:12:20,240 --> 00:12:26,240 Speaker 1: ticket sales, UH, sponsorships. Where do you guys stand right now? Uh? 239 00:12:26,280 --> 00:12:31,040 Speaker 1: In a really good place? So uh we'll be We'll 240 00:12:31,040 --> 00:12:34,640 Speaker 1: be opening the building with something like two billion dollars 241 00:12:34,679 --> 00:12:38,640 Speaker 1: in contractually obligated income, which I think for an arena stadium, 242 00:12:38,640 --> 00:12:41,080 Speaker 1: at least up to this point, UH will be will 243 00:12:41,120 --> 00:12:43,600 Speaker 1: be a record the maybe what the Rams are doing 244 00:12:43,640 --> 00:12:47,600 Speaker 1: in Inglewood may may take a shot at that. But again, 245 00:12:47,679 --> 00:12:51,640 Speaker 1: perfect storm, um, perfect market, perfect time. I mean the 246 00:12:51,640 --> 00:12:55,079 Speaker 1: Bay Areas on fire. Uh. That couldn't be a better 247 00:12:55,120 --> 00:12:57,560 Speaker 1: economic time, couldn't be a better basketball team, and couldn't 248 00:12:57,559 --> 00:12:59,600 Speaker 1: be a better city to be building an arena. What 249 00:12:59,640 --> 00:13:05,680 Speaker 1: were the original projections? Less than half that? I mean no, no, 250 00:13:06,559 --> 00:13:08,719 Speaker 1: to my knowledge, I think the record, prior record was 251 00:13:08,760 --> 00:13:11,160 Speaker 1: a little under a billion dollars in terms of, uh, 252 00:13:11,280 --> 00:13:13,800 Speaker 1: you know what what was in the bank before the 253 00:13:14,600 --> 00:13:16,720 Speaker 1: before the project started. And if there's a rough way 254 00:13:16,720 --> 00:13:20,080 Speaker 1: to break that out by you know, sponsors, by you know, 255 00:13:20,280 --> 00:13:22,760 Speaker 1: v i P. Suites, by season ticket sales kind of 256 00:13:22,760 --> 00:13:25,440 Speaker 1: what does that pie look like? Yeah, it's it's really 257 00:13:25,440 --> 00:13:28,800 Speaker 1: a divided about half and half between UH, tickets and 258 00:13:29,320 --> 00:13:33,400 Speaker 1: suites and sponsorship. The corporate sponsorship side has really uh 259 00:13:33,679 --> 00:13:36,559 Speaker 1: this has found a real sweet spot with what's going 260 00:13:36,600 --> 00:13:38,640 Speaker 1: on in our industry right now, and the companies are 261 00:13:38,679 --> 00:13:41,600 Speaker 1: looking to invest in sports and that's Chase obviously but 262 00:13:41,679 --> 00:13:45,120 Speaker 1: also United Uh, accenturare right, there's a few others we had. 263 00:13:45,120 --> 00:13:47,320 Speaker 1: Google Cloud was a really big one for us. No 264 00:13:47,400 --> 00:13:49,760 Speaker 1: one had, no team had successfully made a deal with 265 00:13:49,800 --> 00:13:52,480 Speaker 1: Google prior to this one. We hope. It's really kind 266 00:13:52,480 --> 00:13:55,000 Speaker 1: of crazy, right, we're in the Silicon Valley. All these companies, 267 00:13:55,040 --> 00:13:57,559 Speaker 1: if you really think about their sports associations, they haven't 268 00:13:57,559 --> 00:14:00,800 Speaker 1: done it, uh historically. So we're really hoping Google Cloud 269 00:14:01,720 --> 00:14:05,040 Speaker 1: partnership grows into something special and they're more and they're 270 00:14:05,040 --> 00:14:08,120 Speaker 1: more to come and uh, they represent I think what 271 00:14:08,200 --> 00:14:10,240 Speaker 1: you hope it would represent the best in brands and 272 00:14:10,360 --> 00:14:13,000 Speaker 1: all the way, all the way through. You mentioned the Rams. 273 00:14:13,000 --> 00:14:14,960 Speaker 1: We had Kevin dem Off on the show not long ago. 274 00:14:15,160 --> 00:14:17,880 Speaker 1: And the fact is you still exist in this geopolitical 275 00:14:18,000 --> 00:14:21,320 Speaker 1: world and the price of construction steal in particular for 276 00:14:21,360 --> 00:14:24,840 Speaker 1: that stadium went up because of the global situation. How 277 00:14:24,840 --> 00:14:26,600 Speaker 1: are you on time on budget time? I think we 278 00:14:26,640 --> 00:14:30,800 Speaker 1: know about great news. We're on time, which you don't 279 00:14:30,840 --> 00:14:33,840 Speaker 1: always know. You don't always know that there's no other 280 00:14:33,840 --> 00:14:37,400 Speaker 1: good news. Uh uh, you know, we actually had an 281 00:14:37,400 --> 00:14:39,360 Speaker 1: owner's committee. This is great about the NBA. You'll love 282 00:14:39,360 --> 00:14:42,160 Speaker 1: this about the NBA. Right, So there's an owners committee 283 00:14:42,240 --> 00:14:46,080 Speaker 1: that has to make a report on relocation. So Genie 284 00:14:46,120 --> 00:14:48,760 Speaker 1: Buss and Robert Sarver were on our site, the Lakers, 285 00:14:48,800 --> 00:14:51,320 Speaker 1: and the Lakers and the Sun's owners were on site 286 00:14:51,440 --> 00:14:54,480 Speaker 1: last week representing the owner's committee that now will make 287 00:14:54,480 --> 00:14:57,440 Speaker 1: a recommendation that next month in April, at the Board 288 00:14:57,440 --> 00:14:59,880 Speaker 1: of Governor's meeting, the owners will decide whether or not 289 00:15:00,160 --> 00:15:03,160 Speaker 1: we can move into that new would be something else, 290 00:15:03,320 --> 00:15:07,080 Speaker 1: really would be a problem, really would be a problem. Okay, 291 00:15:07,160 --> 00:15:09,920 Speaker 1: But I was server builds, builds, a lot of banks, 292 00:15:09,920 --> 00:15:12,520 Speaker 1: builds a lot of real estate, other types of real estate, 293 00:15:12,560 --> 00:15:15,040 Speaker 1: and he was he was saying, really, his model right 294 00:15:15,080 --> 00:15:20,560 Speaker 1: now is building on either coast over budget every single project, 295 00:15:20,680 --> 00:15:25,280 Speaker 1: just because the cost of labor, the the robust building 296 00:15:25,320 --> 00:15:28,120 Speaker 1: that's going on, certainly in San Francisco, chasing resources is 297 00:15:28,160 --> 00:15:31,640 Speaker 1: incredibly difficult, trying to just find the construction resources you 298 00:15:31,680 --> 00:15:34,640 Speaker 1: need when there's a crane on every corner. So, um, 299 00:15:34,720 --> 00:15:36,920 Speaker 1: it's not for the faint of heart. Fortunately, the team's 300 00:15:36,920 --> 00:15:39,880 Speaker 1: helped us a lot, and we're going to get to 301 00:15:39,920 --> 00:15:42,880 Speaker 1: the finish line and privately financed ran. So when Joe 302 00:15:42,880 --> 00:15:45,720 Speaker 1: Lincolb says, all right, get my final tally and it 303 00:15:45,720 --> 00:15:47,960 Speaker 1: looks at it. He says, this cost You said it 304 00:15:48,000 --> 00:15:50,800 Speaker 1: was gonna cost X, and it wound up costing what 305 00:15:52,000 --> 00:15:57,120 Speaker 1: uh X plus probably thirty p m. And then we say, Joe, 306 00:15:57,160 --> 00:15:59,240 Speaker 1: just go back and look at those championship rings in 307 00:15:59,320 --> 00:16:02,080 Speaker 1: your us in the film. That's better about the whole thing. 308 00:16:02,680 --> 00:16:05,000 Speaker 1: I have to ask, uh, And I think about the 309 00:16:05,120 --> 00:16:07,760 Speaker 1: and I've always said this, We've had a number of 310 00:16:07,800 --> 00:16:10,000 Speaker 1: people on the show. Out of the four major food 311 00:16:10,000 --> 00:16:14,400 Speaker 1: groups for sports, the NBA is the perfect one in 312 00:16:14,440 --> 00:16:19,000 Speaker 1: my mind because of the uh duration of the game. 313 00:16:19,800 --> 00:16:22,200 Speaker 1: It's a fast paced game. I mean, it's like the 314 00:16:22,240 --> 00:16:25,160 Speaker 1: old gag with George Carlin about baseball you don't know 315 00:16:25,160 --> 00:16:27,600 Speaker 1: when it's going to end, and and the other ones 316 00:16:27,640 --> 00:16:29,680 Speaker 1: as well, but the NBA seems to be the one 317 00:16:29,720 --> 00:16:33,920 Speaker 1: that's geared towards the younger audience today. Can you comment 318 00:16:33,960 --> 00:16:36,240 Speaker 1: more about that? Well, I mean you have to go 319 00:16:36,320 --> 00:16:39,080 Speaker 1: way way back to start to think about how we developed, 320 00:16:39,200 --> 00:16:42,400 Speaker 1: right and and one, our our success came much later 321 00:16:42,520 --> 00:16:45,160 Speaker 1: than baseball success or football success, and I think that 322 00:16:45,320 --> 00:16:47,360 Speaker 1: has been a contributing factor in a lot of ways 323 00:16:47,400 --> 00:16:50,760 Speaker 1: where the organization as it evolved kind of reflected a 324 00:16:50,800 --> 00:16:54,800 Speaker 1: different generation than had been reflected in other sports organizations, 325 00:16:54,800 --> 00:16:58,320 Speaker 1: and David Stern had a mindset about that that he 326 00:16:58,360 --> 00:17:00,320 Speaker 1: wanted to continue to look forward. And I'd us think 327 00:17:00,320 --> 00:17:02,080 Speaker 1: the league has done an amazing job. If you look 328 00:17:02,120 --> 00:17:07,240 Speaker 1: at any social media metric, it's just startling, frankly, what 329 00:17:07,240 --> 00:17:10,400 Speaker 1: what the difference in consumption is of social media across 330 00:17:11,119 --> 00:17:13,760 Speaker 1: the various sports. Some of that is just the nature 331 00:17:13,760 --> 00:17:15,600 Speaker 1: of the game. I think, as you said, I think 332 00:17:15,600 --> 00:17:19,399 Speaker 1: our players become cultural personalities in a in a bigger 333 00:17:19,400 --> 00:17:21,960 Speaker 1: way the way our sports covered on television and because 334 00:17:21,960 --> 00:17:24,200 Speaker 1: of what the players have done themselves on their own. 335 00:17:25,119 --> 00:17:27,359 Speaker 1: But the league too has also made a real push 336 00:17:27,359 --> 00:17:30,439 Speaker 1: in trying a lot of new things as different you know, 337 00:17:30,520 --> 00:17:32,640 Speaker 1: social media have come along. I think the NBA has 338 00:17:32,680 --> 00:17:35,800 Speaker 1: been tremendous in being willing to experiment and being willing 339 00:17:35,840 --> 00:17:37,880 Speaker 1: to see what could work and what might not work, 340 00:17:37,880 --> 00:17:40,159 Speaker 1: and learning from that and going on from there. So 341 00:17:40,240 --> 00:17:43,280 Speaker 1: I think it's it's very thoughtful and it's very much 342 00:17:43,320 --> 00:17:45,760 Speaker 1: a part of what we're trying to be Along those lines. 343 00:17:45,800 --> 00:17:47,520 Speaker 1: In two thousand eleven, you joined a team that was 344 00:17:47,560 --> 00:17:51,879 Speaker 1: worth by estimates, three and sixty million dollars Flash forward 345 00:17:51,920 --> 00:17:54,080 Speaker 1: eight years. You know, it's three point four billion if you, 346 00:17:54,119 --> 00:17:57,399 Speaker 1: if you believe the Forbes numbers. Um, how much of 347 00:17:57,440 --> 00:18:00,240 Speaker 1: that do you kind of attribute to and be at 348 00:18:00,359 --> 00:18:02,480 Speaker 1: large becoming a bigger part of the kind of the 349 00:18:02,520 --> 00:18:04,560 Speaker 1: social fabric of of the US. And how much of 350 00:18:04,600 --> 00:18:08,520 Speaker 1: that is the Golden State Warriors specifically going on this 351 00:18:08,600 --> 00:18:12,320 Speaker 1: kind of incredible dynastic run. You know, I think every 352 00:18:12,400 --> 00:18:15,280 Speaker 1: owner of every professional sports should get up every morning 353 00:18:15,280 --> 00:18:19,840 Speaker 1: and write Steve Balmer note and say thank you, because seriously, 354 00:18:19,840 --> 00:18:22,920 Speaker 1: the valuation of every team in professional sports changed the 355 00:18:23,000 --> 00:18:26,320 Speaker 1: day he paid two billion dollars for the Clippers, and 356 00:18:27,920 --> 00:18:29,919 Speaker 1: everyone thought it was a one off. Everyone thought that 357 00:18:30,000 --> 00:18:32,600 Speaker 1: was not a sustainable type. And of course we've had 358 00:18:32,600 --> 00:18:35,960 Speaker 1: two teams now trade since then at higher valuations than that. 359 00:18:36,119 --> 00:18:38,640 Speaker 1: So I guess it's really for real. And the really 360 00:18:38,640 --> 00:18:40,840 Speaker 1: for real part of it, as you do your analysis, 361 00:18:40,880 --> 00:18:43,280 Speaker 1: which I'm sure you do in figuring out the value 362 00:18:43,280 --> 00:18:46,960 Speaker 1: of teams, it has nothing to do really with the business. 363 00:18:46,960 --> 00:18:50,680 Speaker 1: It has to do with having thirty teams and more 364 00:18:50,680 --> 00:18:53,239 Speaker 1: people than that or more organizations than that who are 365 00:18:53,280 --> 00:18:55,480 Speaker 1: interested in buying one, and that's what drives the price. 366 00:18:55,560 --> 00:18:58,440 Speaker 1: It's just what somebody is willing to pay because Balmer 367 00:18:58,560 --> 00:19:01,240 Speaker 1: was scarcity, as you just said, and beach front property 368 00:19:01,320 --> 00:19:05,560 Speaker 1: literally and figuratively. I was more surprised than Milwaukee Bucks 369 00:19:06,160 --> 00:19:10,160 Speaker 1: at five and a half. Then Bamber plunking down two 370 00:19:10,160 --> 00:19:12,879 Speaker 1: billion dollars for the Clippers. Was that an indicator to 371 00:19:12,920 --> 00:19:15,800 Speaker 1: you that we've reached something new here? I think that's 372 00:19:15,880 --> 00:19:18,560 Speaker 1: a I think that's a great point because it does 373 00:19:18,720 --> 00:19:21,879 Speaker 1: it says that it isn't just about the biggest markets. Uh, 374 00:19:22,040 --> 00:19:24,879 Speaker 1: it's about the strength of the league and every franchise. 375 00:19:24,960 --> 00:19:27,000 Speaker 1: And I think I think that's the best one to 376 00:19:27,040 --> 00:19:29,480 Speaker 1: point to in terms of the overall value of NBA 377 00:19:29,520 --> 00:19:32,159 Speaker 1: teams right now. Well, something has to be baked in 378 00:19:32,160 --> 00:19:35,159 Speaker 1: the cake for the value to be that high. What 379 00:19:35,160 --> 00:19:37,680 Speaker 1: what is it as a media rights what is it? Well? 380 00:19:37,720 --> 00:19:40,720 Speaker 1: I think you look at across sports and say, over 381 00:19:40,720 --> 00:19:43,000 Speaker 1: the next thirty years, you know who has the best 382 00:19:43,000 --> 00:19:46,680 Speaker 1: opportunity to build their business, right, and you start with 383 00:19:46,760 --> 00:19:49,240 Speaker 1: the international appeal of the game. Right there are only 384 00:19:49,400 --> 00:19:51,560 Speaker 1: two sports in the world that are played in everywhere 385 00:19:51,600 --> 00:19:53,680 Speaker 1: in the world. So what we call soccer whe the 386 00:19:53,720 --> 00:19:57,119 Speaker 1: rest of the world calls football and basketball. Now, you 387 00:19:57,160 --> 00:20:01,320 Speaker 1: know soccers up here. Basketball's well below, but there's nothing 388 00:20:01,320 --> 00:20:04,119 Speaker 1: in between. And I think I always talk about the 389 00:20:04,160 --> 00:20:06,760 Speaker 1: difference between the soccer and the basketball models, to which 390 00:20:06,800 --> 00:20:09,720 Speaker 1: I think is really significant as we look to the future. 391 00:20:09,720 --> 00:20:12,240 Speaker 1: And that's that every kid growing up in Buenos Aires 392 00:20:12,960 --> 00:20:16,120 Speaker 1: wants to UH play for his club team and soccer 393 00:20:16,880 --> 00:20:19,920 Speaker 1: maybe someday get to play in the World Cup. When 394 00:20:19,960 --> 00:20:22,840 Speaker 1: managed Genobli is growing up in Buenos Aires, he only 395 00:20:22,920 --> 00:20:24,600 Speaker 1: wants to play one place in the world, and every 396 00:20:24,640 --> 00:20:26,600 Speaker 1: kid like my new only wants to play one place 397 00:20:26,600 --> 00:20:30,640 Speaker 1: in the world. That's the NBA. There's no different organization 398 00:20:30,840 --> 00:20:33,960 Speaker 1: for competition that anybody would rather be too. So we 399 00:20:34,240 --> 00:20:36,240 Speaker 1: can draw from worldwide talent base. And then when my 400 00:20:36,320 --> 00:20:41,560 Speaker 1: new comes to the San Antonio Spurs UH, the value 401 00:20:41,640 --> 00:20:44,880 Speaker 1: of the media properties associated with the NBA in Buenos 402 00:20:44,880 --> 00:20:48,199 Speaker 1: Aires increases. Right, we have a great We have a 403 00:20:48,240 --> 00:20:52,399 Speaker 1: thousand new episodes of our game every year. Um, we 404 00:20:52,480 --> 00:20:55,919 Speaker 1: have no additional cost of distribution virtually by taking that 405 00:20:56,000 --> 00:20:58,399 Speaker 1: game out of the United States and putting it anywhere 406 00:20:58,440 --> 00:21:00,400 Speaker 1: in the world where a basketball fan wants to watch. 407 00:21:00,400 --> 00:21:03,840 Speaker 1: So I think long term, the NBA's opportunity internationally compared 408 00:21:03,880 --> 00:21:06,760 Speaker 1: to football or baseball is extraordinary, and I think some 409 00:21:06,800 --> 00:21:08,400 Speaker 1: of the other things you said to think the length 410 00:21:08,440 --> 00:21:11,920 Speaker 1: of the game is perfect um and I think that that. 411 00:21:12,160 --> 00:21:15,080 Speaker 1: You know, the people managing this, starting with Adam Silver, 412 00:21:16,040 --> 00:21:18,560 Speaker 1: have a view of a thirty year horizon right there. 413 00:21:18,600 --> 00:21:20,960 Speaker 1: We're looking way out and trying to see, you know, 414 00:21:21,040 --> 00:21:23,320 Speaker 1: what will put us in a position to continue to 415 00:21:23,359 --> 00:21:24,960 Speaker 1: grow the game the way it has grown now. But 416 00:21:25,320 --> 00:21:27,720 Speaker 1: this is this is a rare time, and I think 417 00:21:27,760 --> 00:21:29,679 Speaker 1: it's the whole league. I think it's the Warriors have 418 00:21:29,760 --> 00:21:32,240 Speaker 1: contributed to it. But I hate to say this, but 419 00:21:32,320 --> 00:21:34,520 Speaker 1: after the Warriors, there'll be somebody else one day, the 420 00:21:34,600 --> 00:21:37,399 Speaker 1: NBA will be the w b A as the World 421 00:21:37,480 --> 00:21:41,960 Speaker 1: Basketball Association. Well, we just announced starting league in Africa 422 00:21:42,640 --> 00:21:45,040 Speaker 1: at All Star, which is you know, I think a 423 00:21:45,040 --> 00:21:48,200 Speaker 1: lot of people by surprise, and uh, it really makes 424 00:21:48,200 --> 00:21:51,280 Speaker 1: a statement about where Adam and the league see the 425 00:21:51,520 --> 00:21:53,480 Speaker 1: this all going. We're chatting with Rick Well, it's the 426 00:21:53,480 --> 00:21:55,199 Speaker 1: president of the Golden State Warriors. And I stayed on 427 00:21:55,200 --> 00:21:58,560 Speaker 1: this show all the time. It's about scale. It's finite 428 00:21:58,600 --> 00:22:00,359 Speaker 1: number of seats. Even if you have the most beautiful 429 00:22:00,359 --> 00:22:03,400 Speaker 1: arena in the world, which you say you will, it's 430 00:22:03,400 --> 00:22:05,280 Speaker 1: still a finite number of seats and a finite number 431 00:22:05,320 --> 00:22:07,840 Speaker 1: of dates. But with media you can scale. You can 432 00:22:08,040 --> 00:22:11,080 Speaker 1: micro transactions all over the odd games. You have the 433 00:22:11,119 --> 00:22:14,760 Speaker 1: ability to send whatever it is you want anywhere in 434 00:22:14,800 --> 00:22:17,840 Speaker 1: the world. How do the Warriors capitalize on the new 435 00:22:17,840 --> 00:22:21,400 Speaker 1: ability of technology to scale? Uh, you know, we are 436 00:22:21,440 --> 00:22:24,160 Speaker 1: in the process as a league of reevaluating how we've 437 00:22:24,320 --> 00:22:27,320 Speaker 1: thought about teams and territories and what leagues can do. 438 00:22:27,760 --> 00:22:30,680 Speaker 1: Um In about half an hour, there's a team president's 439 00:22:30,720 --> 00:22:32,199 Speaker 1: call where we're going to go through some of this, 440 00:22:32,720 --> 00:22:36,080 Speaker 1: where we're going to actually talk about the league has 441 00:22:36,080 --> 00:22:38,600 Speaker 1: been thinking about are there ways that they can unleash 442 00:22:38,600 --> 00:22:41,600 Speaker 1: the creativity of the thirty teams in addition to the 443 00:22:41,680 --> 00:22:46,200 Speaker 1: central office and and as a result get great, better, 444 00:22:46,440 --> 00:22:49,679 Speaker 1: more compelling content that then maybe the teams can have 445 00:22:49,720 --> 00:22:53,080 Speaker 1: more opportunity to distribute. Because all of this is talking 446 00:22:53,080 --> 00:22:55,399 Speaker 1: about non game programming. We're not you know, we're not 447 00:22:55,440 --> 00:22:58,480 Speaker 1: talking about actually live distribution of the games by the teams, 448 00:22:58,520 --> 00:23:01,080 Speaker 1: But we're talking about all the shoulder programming that we 449 00:23:01,080 --> 00:23:03,359 Speaker 1: we could create to feed the appetite for interest in 450 00:23:03,400 --> 00:23:06,720 Speaker 1: the NBA and the team's getting more of an opportunity 451 00:23:06,760 --> 00:23:08,800 Speaker 1: to create and distribute that. So I think that's gonna 452 00:23:08,840 --> 00:23:11,720 Speaker 1: be that's going to be a really big change in 453 00:23:11,760 --> 00:23:13,640 Speaker 1: the way we do business in the NBA. What people 454 00:23:13,720 --> 00:23:16,120 Speaker 1: might not know about the NBA, and you have, of course, 455 00:23:16,440 --> 00:23:18,840 Speaker 1: had been at the league office, is the department called TEAMBO, 456 00:23:18,960 --> 00:23:21,920 Speaker 1: team of Business Operations. People might not know that you 457 00:23:22,080 --> 00:23:25,560 Speaker 1: literally have access to all the data, all the financial 458 00:23:25,640 --> 00:23:28,720 Speaker 1: data from around the league. I'm not so sure that 459 00:23:28,760 --> 00:23:33,280 Speaker 1: the basketball operations folks would trust anybody to warehouse the data, 460 00:23:33,840 --> 00:23:36,080 Speaker 1: but the teams, at least from a business perspective in 461 00:23:36,080 --> 00:23:39,560 Speaker 1: the NBA, acting concert, act in unison, in the best 462 00:23:39,600 --> 00:23:42,560 Speaker 1: practice is sort of what you I think you're onto. 463 00:23:42,640 --> 00:23:46,480 Speaker 1: The most important difference between the NBA and the way 464 00:23:46,520 --> 00:23:49,639 Speaker 1: other businesses run. Frankly, it's it's very different than the 465 00:23:49,680 --> 00:23:51,720 Speaker 1: way the other leagues run. So you're right, I have 466 00:23:52,080 --> 00:23:54,720 Speaker 1: I can. I can go in the morning and look 467 00:23:54,720 --> 00:23:57,600 Speaker 1: at my computer and see every dollar that name the 468 00:23:57,640 --> 00:24:00,679 Speaker 1: team the New York Knicks have sold, into terms of tickets, 469 00:24:00,680 --> 00:24:03,040 Speaker 1: in terms of suits, in terms of sponsorships. I know 470 00:24:03,920 --> 00:24:07,399 Speaker 1: everything about their business and it's it's compelling because I 471 00:24:07,440 --> 00:24:10,760 Speaker 1: get ranked one to thirty on every business category. So 472 00:24:11,320 --> 00:24:13,359 Speaker 1: you know, the ownership of the team sees that there's 473 00:24:13,400 --> 00:24:18,280 Speaker 1: complete visibility between your number four in this, number three 474 00:24:18,280 --> 00:24:20,520 Speaker 1: in that, and you better know where you rank as well. 475 00:24:20,720 --> 00:24:23,200 Speaker 1: And he still called he's not commissioned anymore as last 476 00:24:23,240 --> 00:24:24,560 Speaker 1: I could tell, but he still calls me to yell 477 00:24:24,600 --> 00:24:27,520 Speaker 1: at me when he doesn't do it. Yeah. Yeah, so 478 00:24:27,640 --> 00:24:31,000 Speaker 1: that's the old habits die hard. But think about that. 479 00:24:31,200 --> 00:24:34,000 Speaker 1: You're right, we probably lie, cheat and steal on the 480 00:24:34,000 --> 00:24:37,479 Speaker 1: basketball side, not to give any you know, a credit 481 00:24:37,640 --> 00:24:40,600 Speaker 1: or ideas to any other team. On the business side, 482 00:24:40,720 --> 00:24:43,880 Speaker 1: we believe we're thirty partners who if we all do well, 483 00:24:44,040 --> 00:24:46,760 Speaker 1: we all do better. And and so the you know, 484 00:24:46,800 --> 00:24:48,400 Speaker 1: there isn't a day that goes by that I don't 485 00:24:48,440 --> 00:24:50,960 Speaker 1: talk to one of my counterparts and another team and say, hey, 486 00:24:51,000 --> 00:24:53,439 Speaker 1: we're trying to figure this out. You guys have had 487 00:24:53,480 --> 00:24:56,479 Speaker 1: the same issue, and that there isn't a willing answer 488 00:24:56,560 --> 00:24:58,480 Speaker 1: on the other end of the Frontdom Silver once told me, 489 00:24:58,800 --> 00:25:01,639 Speaker 1: specifically when there's new bill things coming on, that he 490 00:25:01,760 --> 00:25:03,680 Speaker 1: wanted to get to a world where the league group 491 00:25:03,760 --> 00:25:07,040 Speaker 1: ordered toilet paper because you could reduce the unit cost. 492 00:25:07,680 --> 00:25:10,600 Speaker 1: Do you really drill down to that level that if 493 00:25:10,600 --> 00:25:13,400 Speaker 1: all the arenas could group order the unit cost goes down. 494 00:25:13,560 --> 00:25:16,080 Speaker 1: I think it's more at this point. Maybe that's you know, 495 00:25:16,119 --> 00:25:18,520 Speaker 1: Adam as a visionary, So I hadn't focused on the 496 00:25:18,520 --> 00:25:22,159 Speaker 1: toilet paper issue, I will admit um. But I do 497 00:25:22,280 --> 00:25:25,359 Speaker 1: know that we do compare notes on every aspect of 498 00:25:25,400 --> 00:25:28,520 Speaker 1: our business and what's coming, what's next. When we try 499 00:25:28,560 --> 00:25:31,639 Speaker 1: one thing at one team, it populates the league immediately 500 00:25:31,680 --> 00:25:34,880 Speaker 1: if it works. Uh so it's you know that. But 501 00:25:34,880 --> 00:25:38,440 Speaker 1: but this whole team business team, marketing and business Operations 502 00:25:38,480 --> 00:25:41,480 Speaker 1: department is really the secret sauce as far as I'm 503 00:25:41,520 --> 00:25:43,640 Speaker 1: concerned in terms of why the NBA has been so 504 00:25:43,920 --> 00:25:47,280 Speaker 1: successful in building team businesses. One of those trials you're 505 00:25:47,280 --> 00:25:50,880 Speaker 1: talking about the the one month pass for for fans 506 00:25:50,920 --> 00:25:52,560 Speaker 1: who don't get a seat specifically, but get to be 507 00:25:52,600 --> 00:25:54,960 Speaker 1: in the building any game they want. Oh my god, 508 00:25:55,000 --> 00:25:58,840 Speaker 1: did that get so much more attention and deserved. It's 509 00:25:58,880 --> 00:26:01,040 Speaker 1: kind of a little idea a staff meeting one day, 510 00:26:01,040 --> 00:26:03,520 Speaker 1: and we did have a pass where you wouldn't have 511 00:26:03,520 --> 00:26:06,080 Speaker 1: a seat, we have an opportunity to be around and 512 00:26:06,160 --> 00:26:09,880 Speaker 1: in the building and enjoy the atmosphere of a Warriors game. Uh, 513 00:26:10,080 --> 00:26:12,600 Speaker 1: we're talking about something like a hundred people per games, 514 00:26:12,600 --> 00:26:15,720 Speaker 1: so it really wasn't a very big initiative. But yeah, 515 00:26:15,800 --> 00:26:18,040 Speaker 1: it's kind of thinking that, like, how do we what 516 00:26:18,080 --> 00:26:19,800 Speaker 1: are we gonna do next? What do we what's gonna 517 00:26:19,800 --> 00:26:22,359 Speaker 1: be the best thing? Where's the consumer going? Like the 518 00:26:22,400 --> 00:26:25,600 Speaker 1: thing that would drive me the craziest about business people 519 00:26:25,680 --> 00:26:28,200 Speaker 1: in any any industry, but certainly in the NBA, is 520 00:26:28,240 --> 00:26:31,800 Speaker 1: when they would think that we could just will consumer behavior. Right, 521 00:26:32,720 --> 00:26:35,600 Speaker 1: So we're technology intersex with our sport. It's like, you know, 522 00:26:35,720 --> 00:26:38,359 Speaker 1: we may not want people to be able to buy 523 00:26:38,440 --> 00:26:41,000 Speaker 1: tickets in the secondary market while we have season tickets. 524 00:26:41,000 --> 00:26:43,000 Speaker 1: But you know what, if we don't do it, somebody 525 00:26:43,000 --> 00:26:46,000 Speaker 1: like StubHub is going to invent this, and maybe we'd 526 00:26:46,000 --> 00:26:47,520 Speaker 1: be better off to figure out how to embrace it 527 00:26:47,560 --> 00:26:49,600 Speaker 1: in our core business than we would be pretending that 528 00:26:49,640 --> 00:26:52,280 Speaker 1: we can fight consumer behavior and how they're going to 529 00:26:52,280 --> 00:26:55,359 Speaker 1: act when presented with a new technology. See how about 530 00:26:55,359 --> 00:27:03,280 Speaker 1: the toilet paper thing was a charming idea? Have you 531 00:27:03,320 --> 00:27:08,080 Speaker 1: got to explain the joke? I would like to ask 532 00:27:08,119 --> 00:27:11,800 Speaker 1: one thing though about about the team because you guys 533 00:27:11,800 --> 00:27:17,120 Speaker 1: obviously are heading towards the playoffs. Um, does it make 534 00:27:17,160 --> 00:27:20,680 Speaker 1: a difference? You know this year with the Los Angeles Lakers. 535 00:27:20,720 --> 00:27:24,240 Speaker 1: Unfortunately they Lebron James is not going to be in 536 00:27:24,280 --> 00:27:27,680 Speaker 1: this year, but he will open the Chase Center. But yeah, 537 00:27:27,760 --> 00:27:30,200 Speaker 1: I was going to say, give me some secondary prices. Yeah, 538 00:27:30,240 --> 00:27:32,840 Speaker 1: I mean, does that make a difference when you when 539 00:27:32,880 --> 00:27:36,000 Speaker 1: you don't have a big name like that in the playoffs. 540 00:27:36,400 --> 00:27:39,320 Speaker 1: I'm just saying that in general, maybe for the TV 541 00:27:39,440 --> 00:27:43,240 Speaker 1: audience or whatever. We'll see, right, we don't. We don't 542 00:27:43,240 --> 00:27:44,600 Speaker 1: know the answer that question. He has would be the 543 00:27:44,640 --> 00:27:46,639 Speaker 1: first time in five years that Lebron hasn't been the 544 00:27:46,640 --> 00:27:50,400 Speaker 1: headliner of the playoffs. So I would guess, yes, there's 545 00:27:50,400 --> 00:27:54,280 Speaker 1: gonna be some you know, some effect somewhere. But that's 546 00:27:54,280 --> 00:27:56,000 Speaker 1: how new teams coming to the fold. We may be 547 00:27:56,040 --> 00:27:58,320 Speaker 1: talking about the Milwaukee Bucks the way we're talking about 548 00:27:58,320 --> 00:28:00,560 Speaker 1: the Cleveland Cavaliers right now to our three years down 549 00:28:00,600 --> 00:28:01,879 Speaker 1: the road, and they might be the ones that are 550 00:28:01,960 --> 00:28:06,360 Speaker 1: driving TV revenue. So it's you know, it's a constant 551 00:28:06,359 --> 00:28:08,200 Speaker 1: evolution of which team is the one that has the 552 00:28:08,240 --> 00:28:11,560 Speaker 1: spotlight right now? And and Lebron seemed didn't have as 553 00:28:11,600 --> 00:28:14,040 Speaker 1: big a spotlight this year, but Lebron still brought a 554 00:28:14,080 --> 00:28:16,520 Speaker 1: lot of people to to the TV sets based on, 555 00:28:16,800 --> 00:28:20,160 Speaker 1: you know, just his presence and the Lakers speaking of headliners, 556 00:28:21,080 --> 00:28:23,439 Speaker 1: and I'd really love you not to just talk around 557 00:28:23,440 --> 00:28:26,080 Speaker 1: this one if possible, like I have the other ones. 558 00:28:27,760 --> 00:28:31,440 Speaker 1: I know how people like you offer if possible. I've 559 00:28:31,440 --> 00:28:33,080 Speaker 1: done this too long. We've known each other to know 560 00:28:33,119 --> 00:28:36,399 Speaker 1: each other too long. In an uncapped world. What is 561 00:28:36,400 --> 00:28:39,920 Speaker 1: Steph worth to the Golden State Warriors? He's worth everything. 562 00:28:40,000 --> 00:28:45,160 Speaker 1: You know. He's the heart, soul, identity of our franchise. UM. 563 00:28:45,200 --> 00:28:47,960 Speaker 1: You know, there was a Steph Curry before this ownership 564 00:28:48,000 --> 00:28:52,120 Speaker 1: group that represented uh, you know, the futility of the 565 00:28:52,120 --> 00:28:56,440 Speaker 1: basketball uh product that the Warriors consistently put on the court. Uh. 566 00:28:56,520 --> 00:28:59,920 Speaker 1: And it translates into this new era of of championship 567 00:29:00,040 --> 00:29:03,120 Speaker 1: com petition that he's been the face he's he's the 568 00:29:03,120 --> 00:29:06,360 Speaker 1: one our our oldest fans associate with because he was 569 00:29:06,400 --> 00:29:08,880 Speaker 1: there before all it started. And he's the one all 570 00:29:08,920 --> 00:29:11,120 Speaker 1: of our new fans associate with because he's the face 571 00:29:11,120 --> 00:29:14,280 Speaker 1: of those three exit for exit. We nobody gets paid 572 00:29:14,320 --> 00:29:17,640 Speaker 1: because that's all public. But what X is he really worth? 573 00:29:17,760 --> 00:29:20,080 Speaker 1: I can't you know, I'm not talking around it because 574 00:29:20,080 --> 00:29:23,280 Speaker 1: I We've never had a system like that to know 575 00:29:23,480 --> 00:29:26,840 Speaker 1: what that would yield, but he it's hard to imagine anybody. 576 00:29:26,920 --> 00:29:31,400 Speaker 1: There is no one who combines the athletic talent, the 577 00:29:31,480 --> 00:29:35,480 Speaker 1: personal uh way he presents himself, how he conducts his life, 578 00:29:35,480 --> 00:29:39,160 Speaker 1: what's important to him, and what he means to generations 579 00:29:39,160 --> 00:29:43,280 Speaker 1: of basketball fans from little kids to grandma's. Right, Um, 580 00:29:43,320 --> 00:29:45,440 Speaker 1: it would it would be what whatever the biggest X 581 00:29:45,520 --> 00:29:48,240 Speaker 1: is that he would be the biggest X. And lastly, 582 00:29:48,320 --> 00:29:52,560 Speaker 1: for you, the composition of your ownership group. Could another 583 00:29:52,600 --> 00:29:56,120 Speaker 1: group have done this? Arena all in house or they've 584 00:29:56,160 --> 00:29:59,160 Speaker 1: had a farm out finance, farm out real estate so 585 00:29:59,280 --> 00:30:01,320 Speaker 1: much these days of ownership ownership groups. You take on 586 00:30:01,400 --> 00:30:03,959 Speaker 1: LPs because they have money, but I'm hearing more and 587 00:30:04,000 --> 00:30:06,600 Speaker 1: more it's about what else do they bring to the table. 588 00:30:06,640 --> 00:30:09,960 Speaker 1: They have to bring some other skill set, some other 589 00:30:10,040 --> 00:30:13,640 Speaker 1: connection because the money is just there for everybody. Yeah, 590 00:30:13,640 --> 00:30:16,160 Speaker 1: I think another team certainly could have done it from 591 00:30:16,200 --> 00:30:20,080 Speaker 1: a financial perspective, But again, you you really have to 592 00:30:20,160 --> 00:30:22,560 Speaker 1: understand the san what San Francisco is like, and how 593 00:30:22,560 --> 00:30:24,560 Speaker 1: hard it is to get this done. It really the 594 00:30:25,000 --> 00:30:27,920 Speaker 1: lack of well fearlessness is what I would say is 595 00:30:27,920 --> 00:30:32,080 Speaker 1: the biggest contributing factor that this ownership group has that there. 596 00:30:32,360 --> 00:30:34,120 Speaker 1: There were a hundred times when they could have changed 597 00:30:34,120 --> 00:30:36,040 Speaker 1: your mind, said you know, we can go do something 598 00:30:36,080 --> 00:30:38,760 Speaker 1: somewhere else will be a lot easierness, And every time 599 00:30:38,840 --> 00:30:41,160 Speaker 1: it came back to now, this is we're going for it. 600 00:30:41,200 --> 00:30:43,680 Speaker 1: We're going for the most amazing thing we can imagine, 601 00:30:43,680 --> 00:30:46,320 Speaker 1: and we're gonna do everything possible to make that happen. 602 00:30:46,400 --> 00:30:48,920 Speaker 1: So I don't think that's what's missing. I think in 603 00:30:49,000 --> 00:30:52,320 Speaker 1: most ownership groups that fearlessness to to go for something 604 00:30:52,320 --> 00:30:55,360 Speaker 1: that seems impossible or bigger than you can imagine. Alright, 605 00:30:55,520 --> 00:30:57,280 Speaker 1: very good, Thank you, Rick, Well, it's appreciate it. Thanks 606 00:30:57,880 --> 00:31:03,080 Speaker 1: takeaways Rick welts my goodness, this man, it must be 607 00:31:03,120 --> 00:31:05,680 Speaker 1: easy when you have a team that wins all the time. 608 00:31:06,200 --> 00:31:09,360 Speaker 1: And I just wonder, you know, what would happen to 609 00:31:09,400 --> 00:31:12,480 Speaker 1: that business model if you had a team well let's 610 00:31:12,480 --> 00:31:16,840 Speaker 1: say that they were sorry, Yeah, it's certainly hard a 611 00:31:16,880 --> 00:31:18,920 Speaker 1: winning cures o els. We know that might take away though, 612 00:31:18,960 --> 00:31:22,080 Speaker 1: is the team bow operation at the NBA. Scott O'Neill, 613 00:31:22,120 --> 00:31:23,680 Speaker 1: who has been on the show, he was a part 614 00:31:23,680 --> 00:31:27,440 Speaker 1: of it. Amy Brooks now runs it um the way 615 00:31:27,480 --> 00:31:31,000 Speaker 1: they share best practices, do not discount as one of 616 00:31:31,000 --> 00:31:34,120 Speaker 1: the reasons the NBA works as well as it does. 617 00:31:34,360 --> 00:31:37,880 Speaker 1: My takeaway that two billion dollar number right the stadium 618 00:31:37,880 --> 00:31:40,600 Speaker 1: hasn't even opened yet, and if you count the V 619 00:31:40,680 --> 00:31:44,719 Speaker 1: I P sales suites commitments from from corporate partners, they 620 00:31:44,760 --> 00:31:48,400 Speaker 1: already have two billion dollars of revenue coming in double. 621 00:31:48,440 --> 00:31:50,400 Speaker 1: The estimate the salary cap in the NBA right now 622 00:31:50,440 --> 00:31:52,520 Speaker 1: is right around a hundred million. The Warriors are spending 623 00:31:52,520 --> 00:31:54,680 Speaker 1: over that. They're at a hundred forty million right here, 624 00:31:54,960 --> 00:31:57,400 Speaker 1: right now. That two billion is is thirteen more than 625 00:31:57,440 --> 00:32:00,440 Speaker 1: thirteen years of salaries if they stay where they are 626 00:32:00,520 --> 00:32:03,200 Speaker 1: right now. Um, just a really impressive number and gives 627 00:32:03,240 --> 00:32:05,560 Speaker 1: you a sense of how set they are, how they've 628 00:32:05,600 --> 00:32:08,640 Speaker 1: capitalized on this winning, this winning spree, uh to set 629 00:32:08,680 --> 00:32:13,840 Speaker 1: themselves up for the future. It feels better to be 630 00:32:13,960 --> 00:32:16,000 Speaker 1: number one than number five. I'll wear a number because 631 00:32:16,000 --> 00:32:17,520 Speaker 1: of Mike. We have a chance to go for three 632 00:32:17,560 --> 00:32:19,160 Speaker 1: in a row. Good numbers in a good time, And 633 00:32:19,240 --> 00:32:21,560 Speaker 1: let's first started wearing the number. I would just happy 634 00:32:21,560 --> 00:32:25,280 Speaker 1: in Bloomberg Business of Sports the number of the week 635 00:32:26,440 --> 00:32:30,800 Speaker 1: time now for the number of the week seven, Well, 636 00:32:30,880 --> 00:32:32,760 Speaker 1: you and I suggested it. Now Evan, do you remember 637 00:32:32,760 --> 00:32:36,120 Speaker 1: why I do remember? After this is Rob Gronkowski's jersey 638 00:32:36,160 --> 00:32:38,880 Speaker 1: number right right now is retirement this week. This is 639 00:32:38,880 --> 00:32:40,640 Speaker 1: not going to be the same. The Patriots won't be 640 00:32:40,680 --> 00:32:42,880 Speaker 1: the same without Gronk. But I'll tell you what though, 641 00:32:42,960 --> 00:32:46,200 Speaker 1: after nine seasons, the body took a lot of punishment. 642 00:32:46,320 --> 00:32:48,760 Speaker 1: But but just think about the social media fund we're 643 00:32:48,800 --> 00:32:51,440 Speaker 1: going to have with a gron two point oh that 644 00:32:51,520 --> 00:32:53,880 Speaker 1: doesn't have to worry and spend so much time training 645 00:32:53,920 --> 00:32:57,800 Speaker 1: and practicing Gronk. Yeah, Gronk goes wild that that's some 646 00:32:57,880 --> 00:33:00,280 Speaker 1: social media channel. I may follow. One thing I've always 647 00:33:00,280 --> 00:33:02,880 Speaker 1: loved about Kronkowski when we've talked to former athletes on 648 00:33:02,920 --> 00:33:05,040 Speaker 1: the show, you know, about the way they manage their money. 649 00:33:05,240 --> 00:33:07,320 Speaker 1: You know, I don't think he's touched. If I might 650 00:33:07,320 --> 00:33:10,480 Speaker 1: be wrong, he says he's never endorsement. He's never touched 651 00:33:10,480 --> 00:33:12,520 Speaker 1: a dime of what he made from the Patriots itself. 652 00:33:12,600 --> 00:33:15,560 Speaker 1: It's always been the endorsement. Endorsement money that's going to 653 00:33:15,640 --> 00:33:17,960 Speaker 1: set him up real nicely financially for for the rest 654 00:33:18,000 --> 00:33:20,400 Speaker 1: of his life. You have been listening to Bloomberg Business 655 00:33:20,440 --> 00:33:22,320 Speaker 1: of Sports. We are here each and every week for 656 00:33:22,360 --> 00:33:25,480 Speaker 1: you at the same time, plus online as an Apple podcast. 657 00:33:25,800 --> 00:33:29,080 Speaker 1: You can catch that Mondays, Wednesdays and Thursdays. I'm Michael 658 00:33:29,080 --> 00:33:34,000 Speaker 1: Barr on Twitter now at like about followers and nice. 659 00:33:34,400 --> 00:33:38,000 Speaker 1: I've been Novie Williams at nov Underscore, Willie understores, costing 660 00:33:38,080 --> 00:33:40,479 Speaker 1: him followers. I'm Scott Sashnik. You can follow me on 661 00:33:40,520 --> 00:33:43,000 Speaker 1: Twitter at snick. Thank you very much for joining us. 662 00:33:43,000 --> 00:33:45,040 Speaker 1: Please tune in next week when we speak with the 663 00:33:45,040 --> 00:33:47,680 Speaker 1: biggest and brightest in the sports business industry. You're listening 664 00:33:47,680 --> 00:34:03,840 Speaker 1: to Bloomberg Business of Sports from Bloomberg Radio around the world.